Central Plains Bancshares, Inc.

Previous wording

Management’s discussion and analysis of financial condition and results of operations at December 31, 2025 and March 31, 2025 and for the three and nine months ended December 31, 2025 and 2024 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Current wording

Management’s discussion and analysis of financial condition and results of operations at June 30, 2026 and March 31, 2026 and for the three months ended June 30, 2026 and 2025 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Previous wording

Total Assets. Total assets increased by $27.0 million, or 5.3%, to $535.7 million at December 31, 2025, compared to $508.7 million at March 31, 2025. The increase primarily reflects a $28.0 million, or 7.0%, increase in gross loans.

Current wording

Total Assets. Total assets increased by $3.8 million, or 0.7%, to $562.4 million at June 30, 2026, compared to $558.6 million at March 31, 2026. The increase primarily reflects a $4.5 million, or 15.1%, increase in total cash and cash equivalents.

Previous wording

Investment Securities Available for Sale. Securities available-for-sale decreased $480,000, or 0.8%, to $58.9 million at December 31, 2025, from $59.4 million at March 31, 2025. During the nine-month period, we purchased $4.4 million in securities and received $6.4 million in principal payments. Additionally, net unrealized losses on the securities portfolio decreased by $1.5 million.

Current wording

Investment Securities Available for Sale. Securities available-for-sale increased $931,000, or 1.5%, to $63.5 million at June 30, 2026, from $62.5 million at March 31, 2026. During the three-month period, we purchased $3.4 million in securities and received $2.3 million in principal payments. Additionally, net unrealized losses on the securities portfolio increased by $205,000.

Previous wording

Gross Loans. Loans increased $28.0 million, or 7.0%, to $430.2 million at December 31, 2025, from $402.2 million at March 31, 2025. Growth was driven by increases across all loan categories except land development and SIDs, and other consumer loans. The largest increase occurred in commercial non-real estate loans, which rose $12.8 million, or 40.1%, to $44.8 million from $32.0 million, primarily due to additional commercial business sought by the Association. Management continues to look for high-quality loans to add to its portfolio and will continue to emphasize loan originations to the extent that it is profitable, prudent and consistent with our interest rate risk strategies.

Current wording

Gross Loans. Loans decreased $910,000, or 0.2%, to $447.4 million at June 30, 2026, from $448.3 million at March 31, 2026. We saw growth in two categories, real estate commercial and agriculture, but declines in the remainder. The largest increase occurred in commercial real estate loans, which rose $11.6 million, or 9.0%, to $140.8 million from $129.2 million. We have expanded our focus on higher yielding commercial lending, including both commercial real estate and commercial non-real estate loans, while also continuing to grow our agricultural real estate and operating loan portfolios. This strategic emphasis reflects our commitment to diversifying our loan mix and supporting the credit needs of businesses and agricultural producers within our market area. Management continues to look for high-quality loans to add to its portfolio and will continue to emphasize loan originations to the extent that it is profitable, prudent and consistent with our interest rate risk strategies.

Previous wording

Premises and Equipment, Net. Premises and equipment increased $235,000, or 1.8%, to $13.2 million at December 31, 2025, from $12.9 million at March 31, 2025. The increase reflects additional upgrades for technology across the Association.

Current wording

Premises and Equipment, Net. Premises and equipment decreased $223,000, or 1.7%, to $12.5 million at June 30, 2026, from $12.7 million at March 31, 2026. The decrease reflects depreciation of premises and equipment.

Previous wording

Total Deposits. Total deposits increased $23.8 million, or 5.7%, to $440.0 million at December 31, 2025, from $416.2 million at March 31, 2025. Management believes this demonstrates customer confidence as well as the strength and loyalty of the Association's core deposit base. Additionally, the Association acquired $10.2 million in brokered time deposits, with a balance of $27.6 million at December 31, 2025, and $7.3 million at March 31, 2025. Management continues to actively monitor deposit balances and interest rates to maintain adequate liquidity.

Current wording

Total Deposits. Total deposits increased $5.4 million, or 1.2%, to $465.8 million at June 30, 2026, from $460.4 million at March 31, 2026. Management believes this demonstrates customer confidence as well as the strength and loyalty of the Association's core deposit base. Additionally, the Association maintained $27.6 million in brokered time deposits, at June 30, 2026, and March 31, 2026. Management continues to actively monitor deposit balances and interest rates to maintain adequate liquidity.

Previous wording

Noninterest-bearing deposits decreased $2.5 million, or 3.9%, to $62.0 million, while certificates of deposit increased $25.8 million, or 21.1%, to $148.6 million, including brokered deposits. Savings, demand, NOW, and money market accounts combined increased $404,000, or 0.2%, to $229.4 million at December 31, 2025.

Current wording

Noninterest-bearing deposits increased $3.3 million, or 5.1%, to $67.8 million, while time deposits increased $1.5 million, or 0.9%, to $164.5 million, including brokered deposits. Savings, demand, NOW, and money market accounts combined increased $763,000, or 0.3%, to $233.6 million at June 30, 2026.

Previous wording

Borrowings. The Company had no outstanding borrowings at December 31, 2025, and March 31, 2025. While borrowings have been limited in recent periods, the Association has generally utilized deposit growth to fund operations. Management remains prepared to access FHLB and FRB advances if necessary to support additional loan funding.

Current wording

Borrowings. The Company had no outstanding borrowings at June 30, 2026, and March 31, 2026. Borrowings have been limited in recent periods, as the Association has generally utilized deposits to fund operations and loan growth. Management remains prepared to access FHLB and FRB advances if necessary to support additional loan funding.

Previous wording

Stockholders' Equity. Stockholders' equity increased $4.4 million, or 5.3% to $87.7 million at December 31, 2025, from $83.3 million at March 31, 2025. The increase was primarily driven by net income of $3.0 million and a $1.2 million decrease in unrealized losses on securities valuations, net of tax, partially offset by share repurchases under the Company's stock repurchase program. The decrease in the unrealized losses reflects changes in market interest rates during the nine-month period ended December 31, 2025.

Current wording

Stockholders' Equity. Stockholders' equity increased $1.3 million, or 1.5% to $90.3 million at June 30, 2026, from $89.0 million at March 31, 2026. The increase was primarily driven by net income of $1.5 million, offset by $163,000 increase in unrealized losses on securities valuations, net of tax, and by share repurchases under the Company's stock repurchase program. The increase in the unrealized losses reflects changes in market interest rates during the three-month period ended June 30, 2026.

Previous wording

On October 22, 2024, the Company adopted a program to repurchase up to 200,000 shares, or 5%, of its then outstanding common stock. The program may be suspended, terminated or modified at any time based on market conditions, repurchase costs, alternative investment opportunities, liquidity, and other factors. Repurchases will be made at management’s discretion at prices deemed attractive and in the best interests of the Company and its stockholders, subject to availability, market conditions, trading price, alternative uses of capital, and financial performance. Open market purchases will comply with Rule 10b-18 of the Securities and Exchange Commission and other applicable requirements. As of December 31, 2025, 136,374 shares remained available for repurchase.

Current wording

On October 22, 2024, the Company adopted a program to repurchase up to 200,000 shares, or 5%, of its then outstanding common stock. The program may be suspended, terminated or modified at any time based on market conditions, repurchase costs, alternative investment opportunities, liquidity, and other factors. Repurchases will be made at management’s discretion at prices deemed attractive and in the best interests of the Company and its stockholders, subject to availability, market conditions, trading price, alternative uses of capital, and financial performance. Open market purchases will comply with Rule 10b-18 of the Securities and Exchange Commission and other applicable requirements. As of June 30, 2026, 112,330 shares remained available for repurchase.

Previous wording

During the nine months ended December 31, 2025, the Company repurchased 35,487 shares at a weighted average price of $15.36, for a total of $544,000.

Current wording

During the three months ended June 30, 2026, the Company repurchased 16,348 shares at a weighted average price of $18.11, for a total of $296,000.

Previous wording

Comparison of Operating Results for the Three and Nine Months Ended December 31, 2025 and 2024

Current wording

Comparison of Operating Results for the Three Months Ended June 30, 2026 and 2025

Previous wording

Interest and Dividend Income. Interest and dividend income increased $924,000, or 14.8%, to $7.2 million for the three months ended December 31, 2025, compared to $6.2 million for the same period in 2024. The increase was primarily driven by higher yields on interest-earning assets and loan growth. These increases were partially offset by lower income on interest‑earning cash balances, including Federal funds sold, due to both lower average balances and lower short‑term market rates.

Current wording

Interest and Dividend Income. Interest and dividend income increased $1.1 million, or 16.8%, to $7.7 million for the three months ended June 30, 2026, compared to $6.6 million for the same period in 2025. The increase was primarily driven by higher yields on interest-earning assets, loan growth, and larger average balance of federal funds sold.

Previous wording

Interest income on loans increased $926,000, or 16.4%, to $6.6 million for the three months ended December 31, 2025 from $5.6 million for the same period in 2024. The average balance of loans rose $26.0 million, or 6.5%, to $422.6 million from $396.6 million. Yield on loans increased 52 basis points to 6.22% from 5.70%, reflecting loan growth and the repricing of existing loans.

Current wording

Interest income on loans increased $963,000, or 16.3%, to $6.9 million for the three months ended June 30, 2026 from $5.9 million for the same period in 2025. The average balance of loans rose $39.3 million, or 9.7%, to $442.9 million from $403.6 million. Yield on loans increased 35 basis points to 6.20% from 5.85%, reflecting new loan pricing and the repricing of existing loans.

Previous wording

Interest Expense. Interest expense increased $201,000, or 9.5%, to $2.3 million for the three months ended December 31, 2025, compared to $2.1 million for the same period in 2024. While average yields on certificates of deposit, IRAs and money market accounts decreased, rates on savings and NOW accounts were higher.

Current wording

Interest Expense. Interest expense increased $365,000, or 17.5%, to $2.5 million for the three months ended June 30, 2026, compared to $2.1 million for the same period in 2025. The increase was primarily driven by higher average balances on interest bearing deposits.

Previous wording

Interest expense on deposits increased $179,000, or 8.5%, to $2.3 million for the three months ended December 31, 2025, compared to $2.1 million for the same period in 2024. The increase was driven by higher average balances across all interest-bearing accounts, except NOW accounts and increased yields on savings and NOW accounts, partially offset by lower yields on certificates of deposit, IRAs and money market accounts.

Current wording

Interest expense on deposits increased $367,000, or 17.6%, to $2.5 million for the three months ended June 30, 2026, compared to $2.1 million for the same period in 2025. The increase was driven by higher average balances and higher costs of funds across all interest-bearing accounts.

Previous wording

Net Interest Income. Net interest income before provision for credit losses increased $723,000, or 17.5%, to $4.9 million for the three months ended December 31, 2025 compared to $4.1 million for the same period in 2024.

Current wording

Net Interest Income. Net interest income before provision for credit losses increased $740,000, or 16.5%, to $5.2 million for the three months ended June 30, 2026 compared to $4.5 million for the same period in 2025.

Previous wording

Our interest rate spread increased 46 basis points to 3.24% for the three months ended December 31, 2025, compared to 2.78% for the same period in 2024. Our net interest margin increased 43 basis points to 3.98% for the three months ended December 31, 2025 compared to 3.55% for the same period in 2024.

Current wording

Our interest rate spread increased 17 basis points to 3.22% for the three months ended June 30, 2026, compared to 3.05% for the same period in 2025. Our net interest margin increased 20 basis points to 3.95% for the three months ended June 30, 2026 compared to 3.75% for the same period in 2025.

Previous wording

Provision for Credit Losses. During the three months ended December 31, 2025, no provision for credit losses was recorded. During the three months ended December 31, 2024, we recorded a provision for credit losses of $57,000.

Current wording

Provision for Credit Losses. During the three months ended June 30, 2026, we recorded a provision for credit losses of $51,000. During the three months ended June 30, 2025, we recorded a reversal of provision for credit losses of $3,000.

Previous wording

Non-interest expense increased $544,000, or 15.4% to $4.1 million for the three months ended December 31, 2025, compared to $3.5 million for the same period in 2024. The largest increase in non-interest expense during the three months ended December 31, 2025 was in salaries and employee benefits, which rose $295,000, or 15.1%, to $2.2 million, compared to $1.9 million for the same period in 2024. These increases were primarily due to higher staffing levels and costs associated with the 2024 Equity Incentive Plan. Occupancy and equipment expense increased $154,000, or 57.9%, to $420,000 for the three months ended December 31, 2025, compared to $266,000 for the same period in 2024. This increase is due to maintenance, utilities, and depreciation related to new branches in Hastings and Lincoln.

Current wording

Non-interest expense increased $55,000, or 1.4% to $4.0 million for the three months ended June 30, 2026, compared to $3.9 million for the same period in 2025. The largest increase in non-interest expense during the three months ended June 30, 2026 was in salaries and employee benefits, which rose $141,000, or 6.7%, to $2.2 million, compared to $2.1 million for the same period in 2025. This increase was primarily due to higher staffing levels and costs associated with the 2024 Equity Incentive Plan. Occupancy and equipment expense increased $49,000, or 15.4%, to $367,000 for the three months ended June 30, 2026, compared to $318,000 for the same period in 2025. This increase is due to maintenance, utilities, and depreciation related to new branches in Hastings and Lincoln.

Previous wording

Income Tax Expense. Income tax expense was $300,000 for the three months ended December 31, 2025, compared to $240,000 for the same period in 2024, resulting in effective tax rates of 20.3% and 20.2%, respectively.

Current wording

Income Tax Expense. Income tax expense was $357,000 for the three months ended June 30, 2026, compared to $241,000 for the same period in 2025, resulting in effective tax rates of 19.3% and 19.6%, respectively.

Previous wording

The table above indicates that at December 31, 2025, we would have experienced a 1.11% increase in NII in the event of a gradual, one-year 200 basis point increase in market interest rates, and a 1.37% decrease in NII in the event of a gradual, one-year 200 basis point decrease in market interest rates.

Current wording

The table above indicates that at June 30, 2026, we would have experienced a 0.98% increase in NII in the event of a gradual, one-year 200 basis point increase in market interest rates, and a 0.73% decrease in NII in the event of a gradual, one-year 200 basis point decrease in market interest rates.

Previous wording

The table above indicates that at December 31, 2025, we would have experienced a 7.38% increase in MVE in the event of an instantaneous parallel 200 basis point increase in the market interest rates and a 12.79% decrease in MVE in the event of an instantaneous 200 basis point decrease in market interest rates.

Current wording

The table above indicates that at June 30, 2026, we would have experienced a 3.57% increase in MVE in the event of an instantaneous parallel 200 basis point increase in the market interest rates and a 11.39% decrease in MVE in the event of an instantaneous 200 basis point decrease in market interest rates.

Previous wording

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments. The levels of these assets are dependent on our operating, financing, lending and investing activities during any period.

Current wording

While contractual maturities and scheduled amortization of loans and investment securities are relatively predictable sources of liquidity, deposit flows and loan prepayments are influenced by market interest rates, general economic conditions, and competitive factors. Our most liquid assets consist of cash and short-term investments, the levels of which are dependent on our operating, financing, lending, and investing activities during any given period.

Previous wording

For the nine months ended December 31, 2025, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $574,000, reflecting cash provided by operating activities of $3.3 million and cash provided in financing activities of $23.0 million, offset by cash used in investing activities of $27.0 million.

Current wording

For the three months ended June 30, 2026, cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of $4.5 million, reflecting cash provided by financing activities of $4.9 million, offset by cash used in operating activities of $198,000, and cash used in investing activities of $152,000.

Previous wording

Net cash provided by operating activities amounted to $3.3 million, primarily due to net income of $3.0 million, depreciation of $737,000 and stock based compensation of $569,000, partially offset by changes in accrued expenses and other liabilities of $1.4 million and accrued interest receivable of $217,000. Net cash used in investing activities amounted to $27.0 million, primarily due to a net increase in loans of $28.0 million and the purchase of available-for-sale investment securities of $4.4 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $6.4 million. Net cash provided in financing activities amounted to $23.0 million, primarily due to an increase in deposits of $23.8 million.

Current wording

Net cash used in investing activities amounted to $152,000, primarily due to the purchase of available-for-sale investment securities of $3.4 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $2.3 million and net change in loans of $940,000.

Previous wording

Net cash provided by operating activities amounted to $2.4 million, primarily due to net income of $2.8 million, depreciation of $389,000, and changes in other assets of $381,000, partially offset by changes in accrued interest payable of $227,000, changes in accrued interest receivable of $610,000 and changes in accrued expenses and other liabilities of $646,000. Net cash used in investing activities amounted to $26.0 million, primarily due to a net increase in loans of $24.7 million and the purchase of available-for-sale investment securities of $3.0 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $6.5 million. Net cash provided by financing activities amounted to $18.8 million, primarily due to an increase in deposits of $19.2 million.

Current wording

Net cash provided by financing activities amounted to $4.9 million, primarily due to an increase in deposits of $5.5 million.

Previous wording

For the nine months ended December 31, 2024, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $4.8 million, reflecting cash provided in operating activities of $2.4 million and cash provided in financing activities of $18.8 million, partially offset by cash used in investing activities of $26.0 million.

Current wording

For the three months ended June 30, 2025, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $20.8 million, reflecting cash used in operating activities of $96,000, cash used in financing activities of $7.7 million, and cash used in investing activities of $13.0 million.