Executive Summary

Q3 FY25 EPS was $0.59 on net income of $1.85M, down year over year (Q3 FY24: $0.66, $2.05M) as provisioning rose on mix-driven organic loan growth; tax-equivalent NIM expanded 25 bps sequentially to 3.27% as cost of funds declined and security yields improved via a municipal investment subsidiary .
Organic loan production accelerated (up 40.9% QoQ across business banking, installment, and mortgage), driving $36.2M organic loan growth in the quarter despite a $31.1M mortgage warehouse paydown to zero; deposits grew strongly (+$52.5M YTD) and book value/share climbed to $23.45 .
Operating revenue drivers were healthy: net interest income rose YoY (+8.9%) and other income grew modestly (+4.8%) while opex was up on salaries/benefits and branch-growth marketing; net charge-offs rose but remained low ($292K) with NPLs at 0.12% (0.08% ex-SBA) .
No formal numerical guidance was issued; management noted continued downward pressure on cost of funds given rate cuts and expects loan growth to remain resilient with sales investments and new branches (Massillon opened in Feb-25) supporting future growth .

What Went Well and What Went Wrong

What Went Well

Margin expansion and funding costs: “cost of funds continues to decrease… earning asset yield continues to trend higher,” lifting tax-equivalent NIM by 25 bps vs linked quarter (3.27% vs 3.02%) as lower short-term rates and the municipal investment subsidiary helped asset yields .
Loan/deposit momentum: QTD organic loan growth of $36.2M led by consumer (+$18.8M) and CRE (+$14.6M); YTD deposits +$52.5M (annualized 7.2%), supporting balance sheet growth .
Capital/book value and asset quality: Book value/share rose to $23.45; NPLs low at 0.12% (0.08% ex-SBA guarantee) and ACL/loans steady at ~1.05% .

What Went Wrong

Earnings pressure from credit costs: Provision for credit losses increased to $510K (vs $38K YoY), with net charge-offs of $292K in the quarter as loan mix shifted from a paid-down warehouse facility to higher-reserve categories .
Expense growth: Other expenses rose 9.8% YoY on salaries/benefits, Massillon branch marketing, and debit card processing costs, dampening operating leverage .
Warehouse line headwind: A $31.1M third-party residential mortgage warehouse LOC balance went to zero as higher mortgage rates slowed volumes and the lead bank’s funding needs shifted; although expected to rebuild, it tempered reported loan balance growth vs strong organic production .

Financial Results

Metric	Q1 FY25 (Sep 30, 2024)	Q2 FY25 (Dec 31, 2024)	Q3 FY25 (Mar 31, 2025)
Net Interest Income ($M)	8.043	8.319	8.519
Other (Noninterest) Income ($M)	1.393	1.362	1.278
Provision for Credit Losses ($M)	0.032	0.125	0.510
Net Income ($M)	2.236	2.287	1.851
Diluted EPS ($)	0.72	0.73	0.59
NIM (FTE, %)	2.92%	3.02%	3.27%
Yield on Avg Earning Assets (%)	4.81%	4.81%	4.93%
Cost of Funds (%)	2.56%	2.45%	2.25%
Net Charge-offs ($K)	59	189	292

KPIs (period-end unless noted)

KPI	Q1 FY25	Q2 FY25	Q3 FY25
Total Loans ($M)	766.473	762.795	767.829
Total Deposits ($M)	998.892	997.658	1,025.509
NPLs / Total Loans (%)	0.12%	0.11%	0.12%
ACL / Total Loans (%)	1.04%	1.03%	1.05%
Book Value / Share ($)	23.44	22.21	23.45

Notes: Company reports a single operating segment (banking) under ASU 2023-07; no segment revenue/margin breakdown provided .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial guidance	FY25/Q4 and beyond	None issued	None issued	N/A
Qualitative commentary	2H FY25 / FY26	Expect easing deposit pricing and improving NIM as rate cuts flow through; continued loan growth from pipelines and new branches	Reiterated same themes; noted Massillon opening (Feb-25) and ongoing investments in bankers and originators	Maintained qualitative outlook

Earnings Call Themes & Trends

(Company did not furnish an earnings call transcript; themes below reflect press releases/10-Q commentary.)

Topic	Previous Mentions (Q1 & Q2 FY25)	Current Period (Q3 FY25)	Trend
Net interest margin and funding costs	Q1: Cost of funds elevated but easing after Sep-24 rate cut; NIM 2.92% . Q2: Cost of funds down 11 bps QoQ; NIM 3.02% .	NIM 3.27% (+25 bps QoQ) as cost of funds fell to 2.25% and asset yield rose with investment subsidiary .	Improving margin trajectory.
Loan growth and mix	Q1: Loans +$7.4M; pipelines strengthening . Q2: Loans +$3.7M YTD; strong business and consumer originations .	Q3 organic loan growth $36.2M despite $31.1M warehouse paydown; consumer and CRE led .	Accelerating organic production.
Credit quality	Q1: NPLs 0.12%, NCOs low . Q2: NPLs 0.11%; NCOs modest .	NPLs 0.12% (0.08% ex-SBA); provision higher on mix/growth; NCOs $292K .	Stable asset quality; higher provision.
Branch expansion and salesforce	Q1: Planned Massillon opening; sales hires underway . Q2: Massillon to open Feb-25; teams expanding .	Massillon opened (Feb-25); added bankers, originators, and dealer rep; continued investments .	Growth investments ongoing.
Securities/investment strategy	Q1–Q2: AOCI improved as rates fell; portfolio repositioning modest .	Municipal bonds transferred to investment subsidiary boosted tax-equivalent yields .	Yield optimization in place.
Macro/interest rates	Q1–Q2: Rate cuts aided deposit repricing, pressured mortgage volumes .	Lower short-term rates reducing funding costs; mortgage warehouse balance at zero given higher mortgage rates .	Mixed macro effects.

Management Commentary

“The bank’s cost of funds continues to decrease, and the earning asset yield continues to trend higher, resulting in a 25-basis point increase in the tax equivalent net interest margin in the third quarter… Organic loan production improved for the second straight quarter… We opened the… Massillon, Ohio [branch] and over the last two quarters… added three business bankers, two mortgage originators, and an indirect dealer representative to the sales team.” — Ralph J. Lober II, President & CEO .
“Net interest margin was 3.27%… yield on average interest-earning assets [rose] to 4.93%… cost of funds [fell] to 2.25%… [positively impacted] by the transfer of municipal bonds to an investment subsidiary… [and] declines in short-term market interest rates.” .
“Provision for credit losses was $510 thousand… higher… because of a change in the loan mix caused by significant organic loan growth during the quarter and net charge-offs of $292 thousand.” .

Q&A Highlights

No public earnings call transcript or prepared Q&A was available for Q3 FY25; the company furnished results via 8-K press release and 10-Q. As such, no additional guidance clarifications or tone shifts beyond the press release/10-Q commentary could be assessed .

Estimates Context

S&P Global consensus coverage for CBKM appears limited: no published consensus for EPS or revenue for Q3 FY25 (and none for Q1–Q2 FY25 in our query), so beat/miss vs Street cannot be determined.* Values retrieved from S&P Global.
Where S&P reports “actual revenue,” it reflects a vendor-defined operating revenue construct and may differ from sum of GAAP net interest income and noninterest income; we anchor actuals to company filings above.* Values retrieved from S&P Global.

Key Takeaways for Investors

Margin inflection is underway: sequential NIM +25 bps to 3.27% with further cost-of-funds tailwinds expected as lower rates reset deposits; this is a key near-term earnings lever .
Organic production is robust and broad-based (consumer and CRE), positioning for balance sheet and revenue growth as warehouse volumes potentially normalize; deposits are growing to fund it .
Credit remains benign (NPLs 0.12%, unguaranteed 0.08%) but provision rose with mix and growth; monitor criticized/special mention levels and consumer charge-off trends as origination scales .
Expense discipline vs growth: opex rising from strategic hires and branch openings; sustained revenue momentum will be important to preserve positive operating leverage .
Capital/AOCI improving with rates and retained earnings; book value/share up to $23.45 offers valuation support if margins keep expanding .
Trading setup: Near-term catalysts include continued NIM expansion, sustained loan/deposit growth, and any rebuild of warehouse balances; risks center on higher-than-expected provisioning or slower deposit repricing .

Citations:

Q3 FY25 press release (8-K 2.02, April 17, 2025):
Q3 FY25 10-Q (May 8, 2025):
Q2 FY25 press release (8-K 2.02, Jan 23, 2025):
Q1 FY25 press release (8-K 2.02, Oct 21, 2024):

Estimate note:

Values retrieved from S&P Global.

CONSUMERS BANCORP INC /OH/ (CBKM)·Q3 2025 Earnings Summary