Consumers Bancorp Inc (CBKM) SEC Filing 10-K Annual Report for the fiscal year ending Friday, June 30, 2023

Exhibit 99.1

Consumers Bancorp, Inc. Reports:

Minerva, Ohio — August 10, 2023 (OTCQX: CBKM) Consumers Bancorp, Inc. (Consumers) today reported net income of $2.7 million for the fourth quarter of fiscal year 2023, a decrease of $86 thousand, or 3.1%, from the same period last year. Earnings per share for the fourth quarter of fiscal year 2023 were $0.87 compared to $0.91 for the same period last year.

Net income was $10.7 million, or $3.45 per share, for the twelve months ended June 30, 2023 compared to $11.2 million, or $3.68 per share, for the twelve months ended June 30, 2022. The return on average equity was 20.27% and the return on average assets was 1.05% for the twelve-month period ended June 30, 2023.

“The quarter and annual results reported today were achieved in a volatile banking environment and during a period of unprecedented market rate increases. Increasing pretax core earnings, net of Paycheck Protection Program (PPP) interest and fee income, by 18.3% in this environment is an accomplishment. Total loan balances increased by $98.5 million in the 12 months ending June 30, 2023, contributing to a 29.8% increase in interest income (net of the $2.6 million PPP interest and fees earned in fiscal year 2022) in fiscal year 2023. The FOMC Federal Funds target rate increases slowed economic activity and loan production. Loans originated for the portfolio totaled $234.6 million in fiscal year 2023, a 15% decrease from fiscal year 2022 originations, however, slower runoff and higher rates on new originations and existing variable rate loans offset the decrease in new loan production. While new loan rates and portfolio yields continue to increase, a sustained increase in competition for deposits that accelerated in the third fiscal quarter of 2023 is negatively impacting the bank’s margin,” said Ralph J. Lober II, President & Chief Executive Officer. “We believe the increase in the cost of funds will slow in the first half of fiscal year 2024 and the margin will begin to improve during fiscal year 2024. Increasing $66.0 million in the 12-month period ended June 30, 2023, total deposit and customer repurchase agreements have remained consistent through the third and fourth fiscal quarters of 2023 as the industry absorbed the fall-out from the March 2023 banking crisis, and the uninsured deposit ratio, excluding collateralized public fund deposits, has decreased to approximately 18% as of June 30, 2023,” he continued.

Quarterly Operating Results Overview

Net income was $2.7 million, or $0.87 per share, for the three months ended June 30, 2023, compared to $2.8 million, or $0.91 per share, for the same period in 2022.