Consumers Bancorp, Inc. reported its financial results for the quarter ending September 30, 2024, showing notable changes in key performance metrics compared to the same period in the previous fiscal year. Total assets increased to $1,123.9 million, up from $1,097.1 million as of June 30, 2024. This growth was driven by a rise in total deposits, which reached $998.9 million, reflecting an increase of $25.9 million or 10.7% from the prior quarter.

The company’s interest and dividend income for the quarter was $13.2 million, a rise from $11.7 million in the same quarter of 2023. However, net interest income slightly decreased to $8.0 million from $8.2 million year-over-year, attributed to a faster repricing of interest-bearing liabilities compared to interest-earning assets amid rising short-term market rates. The net interest margin also declined to 2.92% from 3.09% in the previous year.

Noninterest income saw a significant increase of 20.4%, totaling $1.4 million, driven by higher debit card interchange income, gains from mortgage banking activities, and service charges on deposit accounts. Conversely, total noninterest expenses rose to $6.7 million, up from $6.3 million, primarily due to increased salaries, benefits, and software expenses.

Net income for the quarter was reported at $2.2 million, down from $2.4 million in the same quarter of 2023, resulting in basic and diluted earnings per share of $0.72, compared to $0.78 in the prior year. The annualized return on average equity decreased to 13.08% from 17.31% year-over-year.

The company’s loan portfolio also experienced growth, with total loans increasing to $766.5 million, up from $759.1 million as of June 30, 2024. Notably, the total past due loans rose to $2.0 million, compared to $1.9 million in the previous quarter, indicating a slight increase in credit risk.

In terms of capital, total shareholders’ equity increased to $73.3 million from $63.7 million, bolstered by net income and a reduction in accumulated other comprehensive loss. The company maintained strong capital ratios, with a common equity tier 1 capital ratio of 11.13%, exceeding regulatory requirements.

Overall, Consumers Bancorp, Inc. demonstrated resilience in its financial performance, with strategic growth in deposits and noninterest income, despite challenges in net interest income and profitability metrics.