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CB

CONSUMERS BANCORP INC /OH/ (CBKM)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 delivered stronger profitability: net income $2.63M and EPS $0.84, up 14.9% QoQ and 17.8% YoY, driven by higher net interest income and deposit/loan growth .
  • Net interest margin was resilient at 3.37% (down 2 bps QoQ, up 45 bps YoY) as earning-asset yields improved and time-deposit costs fell; management expects declining rates to be a net positive for margin through FY2026 .
  • Balance sheet expansion continued: loans +$21.4M (10.5% annualized) and deposits +$32.8M (12.7% annualized) in the quarter; book value/share rose $1.70 to $25.95 .
  • Operating expenses rose 13.9% YoY as the company invests in branch network and growth hires; Canton branch opened in September; Boardman full-service branch targeted for Summer 2026 .
  • No S&P Global consensus estimates were available for EPS or revenue this quarter; stock narrative catalysts are loan/deposit momentum and margin outlook tied to rate cuts .

What Went Well and What Went Wrong

What Went Well

  • Strong profit momentum: net income $2.63M and EPS $0.84, up QoQ and YoY; net interest income rose to $9.55M (+18.7% YoY) .
  • Broad-based production strength and loan growth: +$21.4M total loans (10.5% annualized); commercial production +141.9%, mortgage +82.3%, installment +49.4%, equity line commitments +178.6% YoY in Q1 .
  • Management expects rate backdrop to aid margins: “Given a constant balance sheet, we expect the net effect of declining rates to have a positive impact on the bank’s net interest margin through the end of the 2026 fiscal year.” — Ralph J. Lober II, President & CEO .

What Went Wrong

  • Expenses elevated: other expenses +13.9% YoY (salaries/benefits, occupancy/software, marketing) as branch network expands .
  • Provision normalized higher YoY: $285K vs $32K, with $81K net charge-offs vs $59K YoY; sequential provision declined from $480K in Q4 FY2025 but remains higher than prior-year run-rate .
  • NIM edged down sequentially (3.37% vs 3.39%) amid slightly higher QoQ cost of funds (2.29% vs 2.23%), despite YoY improvement .

Financial Results

Income Statement and Margins (Quarterly)

Metric (USD)Q3 FY2025 (Mar 31, 2025)Q4 FY2025 (Jun 30, 2025)Q1 FY2026 (Sep 30, 2025)
Net Interest Income ($000)$8,519 $9,226 $9,545
Other Income ($000)$1,278 $1,417 $1,469
Provision for Credit Losses ($000)$510 $480 $285
Other Expenses ($000)$7,162 $7,455 $7,618
Income Before Taxes ($000)$2,125 $2,708 $3,111
Income Tax Expense ($000)$274 $415 $477
Net Income ($000)$1,851 $2,293 $2,634
Diluted EPS ($)$0.59 $0.73 $0.84
Net Interest Margin (%)3.27% 3.39% 3.37%
Yield on Avg Interest-Earning Assets (%)4.93% 5.03% 5.06%
Cost of Funds (%)2.25% 2.23% 2.29%

Segment/Revenue Components

Component ($000)Q3 FY2025Q4 FY2025Q1 FY2026
Net Interest Income$8,519 $9,226 $9,545
Other Income$1,278 $1,417 $1,469
Total Revenue (NII + Other)$9,797 $10,643 $11,014

Balance Sheet and KPIs

KPIQ3 FY2025Q4 FY2025Q1 FY2026
Total Assets ($USD Billions)$1.134B $1.165B $1.188B
Total Loans ($USD Millions)$767.829M $813.458M $834.882M
Total Deposits ($USD Billions)$1.026B $1.037B $1.070B
Book Value/Share ($)$23.45 $24.25 $25.95
ROAA (Annualized) (%)—0.81% 0.89%
ROAE (Annualized) (%)—12.23% 13.42%
NPA/Total Assets (%)0.09% 0.09% 0.08%
ACL/Total Loans (%)1.05% 1.04% 1.04%
Net Charge-offs/Loans (Annualized) (%)—0.03% 0.04%
NPL/Total Loans (%)0.12% (as of period end) 0.13% 0.12%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest Margin trajectoryFY2026Not quantifiedManagement expects declining rates to have a positive net effect on NIM through FY2026 Maintained qualitative positive outlook
Loan GrowthFY2026Not quantified“Expect consistent loan growth through the remainder of the 2026 fiscal year” Maintained qualitative growth outlook
Branch ExpansionFY2026Canton opening planned Fall 2025; Boardman Summer 2026 Canton opened Sep 2025; Boardman full-service branch expected Summer 2026 Execution update; timeline maintained
DividendQuarterly$0.19 in prior quarter $0.21 QTD in Q1 FY2026 Raised sequentially

No formal quantitative guidance for revenue, operating expenses, OI&E, tax rate, or segment targets was provided in company materials .

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 FY2026; themes are drawn from Q3 and Q4 releases and Q1 release .

TopicPrevious Mentions (Q3 FY2025)Previous Mentions (Q4 FY2025)Current Period (Q1 FY2026)Trend
Rate environment & NIMNIM up 25 bps QoQ as cost of funds decreased; muni investment subsidiary helped yields NIM 3.39%; yield on AIEA 5.03%; cost of funds down to 2.23% NIM 3.37%; yield on AIEA 5.06%; cost of funds 2.29%; expect declining rates to be net positive Positive medium-term margin outlook
Loan productionFYTD production +13.7%; organic growth offset warehouse paydown Organic loan growth +$80.5M in FY2025; mix shift to core portfolios Q1 production up sharply YoY across categories; loans +$21.4M (10.5% annualized) Strengthening
Deposit growth+$52.5M (annualized 7.2%) through Q3 +$63.8M FY2025 (+6.6%) +$32.8M in Q1 (12.7% annualized) Accelerating
Branch networkMassillon opened Feb 2025; sales hires added Canton (Fall 2025) and Boardman (Summer 2026) targeted Canton opened Sep 2025; Boardman expected Summer 2026 Executing to plan
Credit qualityNPLs 0.12%; net charge-offs annualized 0.09% (nine months) NPLs 0.13%; net charge-offs 0.07% FY2025 NPLs 0.12% (0.08% unguaranteed); net charge-offs 0.04% annualized; ACL 1.04% Stable/strong

Management Commentary

  • “The strong first quarter…reflect deposit balance and organic loan growth…we expect consistent loan growth through the remainder of the 2026 fiscal year…Given a constant balance sheet, we expect the net effect of declining rates to have a positive impact on the bank’s net interest margin through the end of the 2026 fiscal year.” — Ralph J. Lober II, President & CEO .
  • “I am also pleased to report that the previously announced downtown Canton branch opened in September 2025…We continue to work towards the previously announced first full-service location in Mahoning County…expected to open in the summer of 2026.” — Ralph J. Lober II .
  • Prior quarter context: “Additions to our business banking, mortgage, indirect lending, and treasury management teams have contributed to significant balance sheet growth and very strong loan production results.” — Ralph J. Lober II .

Q&A Highlights

No earnings call transcript or Q&A was available for Q1 FY2026 filings; no call themes or analyst Q&A could be reviewed [ListDocuments returned none for earnings-call-transcript in the period].

Estimates Context

  • S&P Global consensus estimates for Q1 FY2026 EPS and revenue were unavailable for CBKM; no # of estimates reported. This limits beat/miss analysis versus Street [GetEstimates*].
  • Given the absence of consensus, focus should be on sequential and YoY trajectories and management guidance commentary .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Profitability inflected higher with EPS $0.84 and net income $2.63M; revenue drivers were net interest income and deposit/loan momentum .
  • Margin narrative constructive: YoY NIM expansion and management’s view that rate cuts should be net positive for NIM through FY2026; watch cost-of-funds trend and deposit mix in coming quarters .
  • Growth investments are elevating expenses near term, but the Canton opening and Boardman plan underpin medium-term franchise expansion and visibility in Stark/Mahoning counties .
  • Asset quality remains strong (NPLs 0.12%; unguaranteed NPLs 0.08%; NCOs 0.04% annualized), supporting continued loan growth without outsized credit costs .
  • Balance sheet growth is broad-based: loans +$21.4M and deposits +$32.8M in Q1; book value/share +$1.70 to $25.95; dividend per share increased to $0.21 .
  • Near-term trading implications: limited Street coverage and no consensus may constrain volatility; narrative catalysts are loan/deposit growth cadence and NIM trajectory tied to rate path and funding costs .
  • Medium-term thesis: continued branch-led expansion, disciplined underwriting, and margin tailwinds could sustain ROE improvement (13.42% annualized in Q1) if expense growth moderates as new branches mature .

Additional Notes

  • Prior two quarters confirm a steady improvement path: Q3 FY2025 net income $1.85M, NIM 3.27%; Q4 FY2025 net income $2.29M, NIM 3.39% .
  • No separate press release beyond the 8-K exhibit was identified for Q1 FY2026; the 8-K press release serves as the primary source .