Consumers Bancorp Reports 28.8% Increase in Net Income for Fiscal Year Ending June 30, 2026

Consumers Bancorp, Inc. reported a significant increase in its financial performance for the fiscal year ending June 30, 2026, with net income rising by 28.8% to $11.2 million, compared to $8.7 million in the previous year. This growth was primarily driven by a 16.6% increase in net interest income, which reached $39.8 million, attributed to an $89.5 million rise in average interest-earning assets and a higher yield on these assets. The company's return on average equity improved to 13.11% from 12.05%, while return on average assets increased to 0.92% from 0.78%.

In terms of operational metrics, total assets grew by 9.9% to $1.28 billion, with total loans increasing by 15.3% to $937.5 million, funded largely by an 8.1% rise in total deposits, which reached $1.12 billion. The bank's loan portfolio saw notable growth in commercial and industrial loans, which increased by $37.3 million, and consumer loans, which rose by 28.5%. The number of full-time employees remained stable at 190, with no significant changes in staffing levels reported.

Strategically, Consumers Bancorp has focused on enhancing its product offerings and expanding its market presence. The company launched new interest rate swap products during the fiscal year, contributing to a $106,000 increase in related revenue. Additionally, the bank opened two new branch locations, further solidifying its footprint in the Ohio market. The company also established CNB Investment Co., a wholly-owned subsidiary aimed at investing in municipal securities, which is expected to enhance its investment portfolio.

The filing indicates that the bank's credit quality remains strong, with non-performing loans decreasing to $696,000, or 0.07% of total loans, down from $1.03 million, or 0.11%, in the previous year. The allowance for credit losses as a percentage of total loans was 0.99%, reflecting a slight decrease from 1.04% in the prior year. Management attributes the improved credit quality to stable economic conditions and effective monitoring of the loan portfolio.

Looking ahead, Consumers Bancorp anticipates continued growth driven by its strategic initiatives and favorable market conditions. The company plans to elect the community bank leverage ratio framework effective September 30, 2026, which is expected to simplify its capital requirements. Management remains optimistic about maintaining its well-capitalized status and continuing to provide value to shareholders through regular dividends, although future dividend payments will depend on the company's earnings and capital needs.