Consumers Bancorp Reports Increased Net Income and Asset Growth in Q2 of Fiscal Year 2025

Consumers Bancorp, Inc. reported its financial results for the second quarter and first half of fiscal year 2025, revealing a net income of $2.287 million, or $0.73 per share, for the three months ended December 31, 2024. This marks an increase from $2.015 million, or $0.65 per share, in the same period last year. For the first six months of the fiscal year, net income was $4.523 million, compared to $4.425 million in the prior year. The company attributed the increase in net income primarily to a rise in net interest income, which increased by 4.5% to $8.319 million for the quarter, driven by a $35.9 million increase in average interest-earning assets.

In terms of operational performance, total assets rose to $1.111 billion as of December 31, 2024, up from $1.097 billion at the end of June 2024. Total loans increased by $3.681 million, or an annualized 1.0%, while total deposits grew by $24.678 million, or an annualized 5.1%. The company’s noninterest income also saw a notable increase of 9.7% for the quarter, primarily due to higher debit card interchange income and bank-owned life insurance income. However, noninterest expenses rose by 5.4%, largely due to increased salaries and marketing costs.

The company’s provision for credit losses on loans was $85,000 for the quarter, a decrease from $325,000 in the same period last year, reflecting a reduction in the outstanding balance of pooled loans. The allowance for credit losses as a percentage of loans was 1.03% as of December 31, 2024, slightly down from 1.04% at the end of June 2024. Non-performing loans totaled $830,000, a slight decrease from $858,000 at the end of June 2024, indicating stable asset quality.

Strategically, Consumers Bancorp has expanded its indirect dealer network, contributing to growth in its consumer loan portfolio. The company also launched a new subsidiary, CNB Investment Co., in November 2024, aimed at investing in municipal securities. Looking ahead, management anticipates that competitive pressures on deposit pricing may ease, potentially leading to a decrease in the cost of funds in future quarters. The company remains focused on maintaining its capital ratios, which are well above regulatory requirements, with a common equity tier 1 capital ratio of 11.34% as of December 31, 2024.