Central Plains Bancshares Reports Q4 Net Income Increase and Asset Growth

Central Plains Bancshares, Inc. reported its financial results for the three and nine months ended December 31, 2024, revealing a net income of $951,000 for the quarter, a slight increase from $937,000 in the same period last year. For the nine-month period, net income totaled $2.8 million, down from $2.9 million in the prior year. The company's total assets increased by $21 million, or 4.5%, to $484.3 million, primarily driven by a $24.7 million increase in net loans, which rose to $404.9 million, reflecting a 6.5% growth compared to the previous fiscal period.

The increase in loans was largely attributed to a significant rise in agricultural loans, which surged by 123.9% to $44.1 million, following the hiring of additional agriculture lenders. Total deposits also saw a rise of $19.2 million, or 5.1%, reaching $394.3 million, with notable increases in time deposits and money market accounts. The company’s non-interest-bearing deposits increased slightly, while it also began holding $7.3 million in brokered deposits, a new development since March 2024.

In terms of operational metrics, Central Plains Bancshares experienced a 14.8% increase in interest and dividend income for the quarter, totaling $6.2 million, driven by higher interest income from loans. The average yield on loans increased to 5.70%, up from 5.32% a year earlier. However, non-interest income decreased by 26.3% to $656,000, primarily due to a significant drop in servicing fees and other income. The company’s non-interest expenses rose by 7.5% to $3.5 million, influenced by higher salaries and employee benefits as well as increased general and administrative costs.

Strategically, the company is in the process of constructing two new branch locations in Lincoln and Hastings, Nebraska, which are expected to enhance service coverage and customer engagement. The construction of these branches is on track for completion in the second quarter of 2025. Additionally, Central Plains Bancshares initiated a stock repurchase program in October 2024, allowing for the repurchase of up to 200,000 shares, with 190,614 shares remaining available for repurchase as of December 31, 2024.

Looking ahead, the company remains focused on managing its interest rate risk and maintaining adequate liquidity. Central Plains Bancshares has the capacity to borrow from the Federal Home Loan Bank and is prepared to access these funds if necessary to support additional loan funding. The management continues to monitor market conditions and is optimistic about future growth opportunities, particularly in the agricultural lending sector, while also being cautious of potential economic fluctuations that could impact its operations.