Consumers Bancorp Inc (CBKM) Q4 2024 Earnings Report

CBKM reported Q4 2024 revenue of $14.172 million, marking a 47.64% year-over-year increase and a 4.01% quarterly uptick. Gross profit was essentially flat on margins at near 1.00, with operating income of $2.561 million and net income of $2.103 million, equating to an 18.07% operating margin and a net margin of 14.84%. Diluted EPS stood at $0.67, down 22.99% year over year but up 1.52% quarter over quarter, reflecting a shift in earnings mix and cost dynamics. Key drivers include a large non-operating income contribution (Total Other Income/Expenses Net = $6.079 million) that supported pre-tax results, offset by interest expense and ongoing operating costs.

From a cash flow perspective, CBKM generated $1.441 million from operating activities and delivered $1.269 million in free cash flow, while net cash used in investing activities was $14.552 million largely reflecting acquisitions and investment activity, with financing activities contributing $3.985 million. The balance sheet shows robust liquidity with cash and short-term investments around $282.5 million and a total asset base near $1.10 billion. However, the company carries a relatively modest equity base ($63.7 million) against elevated total liabilities (~$1.033 billion), and a sizable deferred tax asset position (~$1.022 billion) that may influence future tax benefits.

Valuation remains attractive on a relative basis, with CBKM trading around a price-to-book near 0.80 and a price-to-earnings around 6.1, positioning the stock as a potential to outperform if non-interest income remains durable and if operating expense discipline is sustained. Given the limited management-forward guidance in the provided data, the outlook hinges on how CBKM scales deposit franchises, manages credit risk in a regional market, and navigates interest-rate volatility. Overall, the QQ4 2024 results suggest a company with solid top-line growth and meaningful cash generation, but with earnings mix and balance-sheet composition that warrant close monitoring for sustainability.