Central Plains Bancshares, Inc.

Central Plains Bancshares, Inc. operates as the holding company for Home Federal Savings and Loan Association of Grand Island, a federally-chartered stock savings association headquartered in Grand Island, Nebraska. The company conducts its business from its main office in Grand Island, eight branch offices located in Grand Island, Hastings, Holdrege, Lexington, Lincoln and Superior, Nebraska, and a drive-up facility in Grand Island, Nebraska. Its primary market area for deposit gathering is the Nebraska counties of Adams, Dawson, Hall, Lancaster, Nuckolls and Phelps. The market area economy has a focus on manufacturing and agriculture with a cross-section of other economic sectors, including education, healthcare and services.

At June 30, 2025, the most recent date for which FDIC data is publicly available, Central Plains Bancshares was ranked third among the 18 FDIC-insured financial institutions with offices in Hall County, Nebraska, with a deposit market share of 10.65%. The company faces strong competition within its primary market area from large money centers and regional banks, community banks and savings institutions, credit unions, mortgage banking firms, consumer finance companies, fintech companies, money market funds, brokerage firms, mutual funds and insurance companies.

The company generates revenue primarily by accepting deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential mortgage loans secured by properties located in its primary market area, as well as commercial real estate loans. To a lesser extent, it also originates commercial non-real estate loans, multi-family residential real estate loans, construction and land development loans, agricultural real estate and non-real estate loans and consumer loans. The company offers a variety of deposit accounts including checking accounts, savings accounts and certificate of deposit accounts, and offers electronic banking services including mobile banking, on-line banking and bill pay, and electronic funds transfer via Zelle. The company has not needed to use significant levels of borrowings to fund its operations in recent years.

The company's lending activities historically centered on originating one- to four-family residential mortgage loans and commercial real estate loans, with additional originations of commercial non-real estate loans, multi-family residential real estate loans, construction and land development loans, agricultural real estate and non-real estate loans and consumer loans. In recent years, the company has expanded its focus on higher yielding commercial lending, including both commercial real estate and commercial non-real estate loans, while also continuing to grow its agricultural real estate and operating loan portfolios. At March 31, 2026, the loan portfolio consisted of Real Estate - Construction of $28.633 million ¹, Real Estate - Commercial of $129.235 million ², Real Estate - Residential of $162.041 million ³, Commercial Non-Real Estate of $48.378 million ⁴, Agricultural of $54.655 million ⁵, Other Consumer of $10.158 million ⁶, and Land Development and Sanitary & Improvement Districts of $15.306 million ⁷, for total loans of $448.406 million ⁸. Net deferred loan costs were negative $60,000 ⁹, the allowance for credit losses was $5.809 million ¹⁰, and total loans, net were $442.537 million ¹¹. At March 31, 2026, the largest multi-family loan had a balance of $5.5 million ¹², the largest commercial real estate loan had an outstanding balance of $7.6 million ¹³, the largest commercial non-real estate loan totaled $5.7 million ¹⁴, the largest real estate construction loan totaled $5.5 million ¹⁵, the largest agricultural loan totaled $6.0 million ¹⁶, the largest land development loan totaled $1.5 million ¹⁷, and the largest SID loan totaled $2.1 million ¹⁸. At March 31, 2026, the outstanding balances of loan participations where the company was not the lead lender totaled $73.8 million ¹⁹, or 16.68% ²⁰ of the loan portfolio, of which $38.8 million ²¹, or 52.57% ²², were commercial real estate loans. At March 31, 2026, the company had participated out portions of loans with an aggregate principal balance of $72.2 million ²³. Total loan sales for the fiscal years ended March 31, 2026 and 2025 were $25.8 million ²⁴ and $14.9 million ²⁵, respectively.

The company offers both adjustable-rate and fixed-rate residential mortgage loans, with adjustable-rate loans tied to the one-year Treasury Rate published by the Federal Reserve Board. For adjustable-rate loans, the interest rate is generally fixed for the initial term of up to five years, and then adjusts yearly thereafter with an annual rate cap of 2% and a lifetime rate cap of 5%. The company generally limits the loan-to-value ratios of its residential mortgage loans to 80%, and up to 90% with private mortgage insurance. The company does not offer loans that provide for negative amortization of principal, such as 'Option ARM' loans, and does not currently offer 'subprime loans' on one- to four-family residential real estate loans. At March 31, 2026, the company had $42.9 million ²⁶ in multi-family residential real estate loans, representing 9.69% ²⁷ of the total loan portfolio. Multi-family residential real estate loans are generally made in amounts of up to 75% of the lesser of the appraised value or the purchase price of the property. Commercial real estate loans generally have terms and amortization periods up to 20 years, with loan-to-value ratios generally limited to 75% of the purchase price or appraised value, and the debt service coverage ratio on these loans is generally at least 1.20x. Commercial non-real estate loan terms vary depending on the type of collateral, with a maximum loan-to-value ratio of up to 90% for loans secured by U.S. Government securities. Real estate construction loans generally can be made with a maximum loan-to-value ratio of 75% of the estimated appraised market value upon completion of the project. Agricultural loans include term loans and lines of credit, with terms of one year for financing of crop and livestock expenses or carrying crop and livestock inventory, to up to seven years for capital asset acquisition, and agricultural real estate loans generally amortize over a 25-year term with interest rates generally adjusting every five years, with loan-to-value ratios generally limited to 70% of the collateral value. Other consumer loans at March 31, 2026 were $10.2 million ²⁸, or 2.26% ²⁹ of total loans, and included unsecured loans to individuals for dental implants totaling $5.6 million ³⁰ at March 31, 2026, with an average underlying loan size of $17,000 ³¹. A reserve of between 7.5% and 11% of the outstanding balance of the funding line is maintained by the specialty finance company. Land development and SIDs loans at March 31, 2026 were $15.3 million ³², or 3.41% ³³ of total loans, with land development loans totaling $9.3 million ³⁴, or 2.10% ³⁵ of total loans, and SIDs loans totaling $6.0 million ³⁶, or 1.36% ³⁷ of total loans.

On October 19, 2023, the company completed its initial public offering of common stock in connection with the mutual-to-stock conversion of Home Federal Savings, selling 4,130,815 ³⁸ shares of common stock at $10.00 ³⁹ per share in its subscription offering for gross proceeds of approximately $41.3 million ⁴⁰. At March 31, 2026, the company had consolidated assets of $558.6 million ⁴¹, consolidated deposits of $460.4 million ⁴² and consolidated stockholders' equity of $89.0 million ⁴³. At March 31, 2026, the company had $74,260 ⁴⁴ in other real estate owned consisting of one single family residence. At March 31, 2025, the company had no real estate acquired as a result of foreclosure or by deed in lieu of foreclosure. At March 31, 2026, the loan to one borrower limitation was $11.8 million ⁴⁵ based on 15% of unimpaired capital and surplus, $23.6 million ⁴⁶ for residential development loans with regulatory approval and $39.3 million ⁴⁷ for a group of related borrowers where each separate borrower is financially independent. At March 31, 2026, the largest single loan to one borrower had an outstanding balance of $7.6 million ⁴⁸ and the largest credit relationship was a group of loans to related borrowers with total exposure of $16.3 million ⁴⁹.

The company's financial performance for the fiscal year ended March 31, 2026 reflects its operations as a community bank focused on lending and deposit-taking activities. The company reported consolidated assets of $558.6 million ⁵⁰, consolidated deposits of $460.4 million ⁵¹ and consolidated stockholders' equity of $89.0 million ⁵² at March 31, 2026. The company's loan portfolio totaled $448.406 million ⁵³ at March 31, 2026, with an allowance for credit losses of $5.809 million ⁵⁴. The company had total loan sales for the fiscal year ended March 31, 2026 of $25.8 million ⁵⁵.

The company has expanded its focus on higher yielding commercial lending, including both commercial real estate and commercial non-real estate loans, while also continuing to grow its agricultural real estate and operating loan portfolios. This strategic emphasis reflects the company's commitment to diversifying its loan mix and supporting the credit needs of businesses and agricultural producers within its market area. The company also continues to originate one- to four-family residential mortgage loans and offers both fixed-rate and adjustable-rate residential mortgage loans for terms up to 30 years.

The company offers electronic banking services including mobile banking, on-line banking and bill pay, and electronic funds transfer via Zelle, and continually plans to enhance its products and services to meet the changing needs of customers. Marketing strategies focus on the strength of the company's knowledge of local consumer and small business markets, as well as expanding relationships with current customers and reaching out to develop new, profitable business relationships.

The filing does not contain specific margin or cost outlook targets.

The company has not needed to use significant levels of borrowings to fund its operations in recent years. The company's traditional mortgage banking model follows selling loan production to Freddie Mac.

The filing does not contain specific R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy figures.

The company faces strong competition within its primary market area from large money centers and regional banks, community banks and savings institutions, credit unions, mortgage banking firms, consumer finance companies, fintech companies, money market funds, brokerage firms, mutual funds and insurance companies. The company's loan portfolio includes higher-risk categories such as commercial real estate loans, agricultural real estate loans, commercial and industrial loans, construction and land loans, and consumer loans, each of which involves specific risks including larger balances, dependence on borrower cash flows, and potential for substantial losses.

The company's market area economy has a focus on manufacturing and agriculture, and the company's lending activities are concentrated in southcentral Nebraska. The company's loan portfolio includes agricultural loans of $54.655 million ⁵⁶ at March 31, 2026, or 12.19% ⁵⁷ of total loans, which are subject to risks related to agricultural economic conditions. The company also has exposure to commercial real estate loans of $129.235 million ⁵⁸ at March 31, 2026, or 28.82% ⁵⁹ of total loans, which involve risks related to the real estate market and borrower cash flows.

The company's loan portfolio includes a significant concentration in commercial real estate loans, which totaled $129.235 million ⁶⁰ or 28.82% ⁶¹ of total loans at March 31, 2026, and agricultural loans of $54.655 million ⁶² or 12.19% ⁶³ of total loans, both of which involve greater risk than residential real estate loans due to larger balances and dependence on borrower cash flows and economic conditions. The company also has exposure to construction and land development loans of $28.633 million ⁶⁴ or 6.39% ⁶⁵ of total loans at March 31, 2026, which involve risks related to uncertain construction costs and project values. The company faces strong competition within its primary market area from a variety of financial institutions and fintech companies, which could impact its ability to grow loans and deposits. The company's loan participations where it is not the lead lender totaled $73.8 million ⁶⁶ or 16.68% ⁶⁷ of the loan portfolio at March 31, 2026, exposing the company to credit risk from loans originated by other lenders. The company's largest credit relationship had total exposure of $16.3 million ⁶⁸ at March 31, 2026, representing a concentration risk.

Management's message emphasizes the company's strategic focus on diversifying its loan mix and supporting the credit needs of businesses and agricultural producers within its market area, as well as the company's commitment to enhancing products and services to meet changing customer needs. The filing states that the company has expanded its focus on higher yielding commercial lending, including both commercial real estate and commercial non-real estate loans, while also continuing to grow its agricultural real estate and operating loan portfolios. Management also highlights the company's marketing strategies focusing on the strength of its knowledge of local consumer and small business markets, expanding relationships with current customers, and reaching out to develop new, profitable business relationships.