Fri, Sep 6, 5:37 PM (105 days ago)
Consumers Bancorp, Inc. reported a net income of $8,580,000 for FY 2024, down from $10,674,000 in FY 2023. Key factors included a 5.1% decline in net interest income due to rising short-term rates and a $556,000 provision for credit losses. Noninterest income increased by 3.1% primarily from debit card interchange fees. Total operating expenses rose by 4.7% due to higher salaries and technology costs. The company's return on average equity and assets decreased to 14.95% and 0.80%, respectively. Total assets grew by 3.5% to $1,097,089, driven by a 6.9% increase in loans. Total deposits increased by 2.1%, reflecting a shift towards higher-yielding certificates of deposit. The allowance for credit losses decreased to 1.04% of loans, with non-performing loans rising to 0.11%. The company adopted the CECL model for credit losses, impacting retained earnings. Regulatory capital ratios indicate that the bank remains well-capitalized. Future risks include economic downturns and rising interest rates. Overall, Consumers Bancorp's financial condition remains stable, but profitability has been pressured by external rate changes.