What the changes say
- New risks emphasize rate-sensitive margins, capital constraints, compliance scrutiny, inflation, and concentrated local real-estate lending.
- Regulatory capital buffers and Home Federal’s dividend dependence are now explicit.
- Commercial-and-industrial lending rose to 10.79% from 7.96%, while mortgage banking and competition discussions broadened.
What changed since the prior 10-K
New
- NewRisks Related to Market Interest Rates
Net interest income comprises a significant portion of our earnings and represents the difference between interest income earned on interest-earning assets, such as loans and securities, and interest expense paid on interest-bearing liabilities, such as deposits and borrowings
Deposits and borrowings may reprice faster than fixed-rate assets, squeezing margins in rising rates; falling rates may accelerate prepayments and reinvestment risk.
- NewRisks Related to Market Interest Rates
In addition, an inverted yield curve—where short-term interest rates exceed long-term interest rates—may compress our net interest margin and adversely affect profitability, particularly on longer-term fixed-rate assets
- NewRisks Related to Laws and Regulations
The financial services industry is subject to heightened regulatory scrutiny and enforcement, particularly with respect to consumer protection, mortgage lending practices, anti-money laundering compliance, and adherence to Office of Foreign Assets Control (“OFAC”) regulations and economic sanctions
Heightened scrutiny of consumer protection, mortgage lending, AML, OFAC, and sanctions compliance could produce penalties, restrictions, litigation, or reputational damage.
- NewRisks Related to Laws and Regulations
Capital requirements may limit our operations and adversely affect our return on equity
Minimum capital ratios and a 2.5% conservation buffer may constrain operations, growth, and return on equity.
- NewRisks Related to Laws and Regulations
Failure to maintain required capital levels, including the buffer, may result in restrictions on capital distributions, including dividends and share repurchases, as well as limitations on discretionary bonus payments. In addition, higher capital requirements may reduce our return on equity and constrain growth
Falling below capital requirements could restrict dividends, repurchases, and bonuses; Home Federal’s capital position affects dividends to Central Plains shareholders.
- NewRisks Related to Laws and Regulations
Our status as an emerging growth company may make our common stock less attractive to investors
Reduced emerging-growth-company disclosures and private-company accounting transition choices may reduce comparability, transparency, and stock marketability.
- NewRisks Related to Laws and Regulations
Our status as a smaller reporting company may also reduce disclosure comparability
Smaller-reporting-company disclosure accommodations may limit investor information, reducing stock liquidity and increasing price volatility.
- NewRisks Related to Laws and Regulations
The Federal Reserve Board may require us to provide financial support to our bank subsidiary
The Federal Reserve may require Central Plains to support Home Federal with capital or management resources, potentially requiring costly financing.
- NewRisks Related to Economic Conditions
Inflation could adversely affect our financial performance and our customers' ability to repay loans
Inflation may reduce investment-security values, raise technology and personnel costs, and weaken customers’ repayment capacity.
- NewRisks Related to Economic Conditions
Our concentration in real estate lending and our limited geographic diversification increase our exposure to adverse economic conditions
Concentrated local real-estate lending and limited geographic diversification expose collateral values, credit quality, and capital to regional downturns.
- NewRisks Related to Economic Conditions
A deterioration in economic conditions could reduce demand for our products and services and increase credit-related risks
Local economic deterioration from inflation, recession, trade disruptions, geopolitical events, or unemployment could reduce demand and increase delinquencies, foreclosures, and collateral losses.
- NewRisks Related to Economic Conditions
deterioration in the financial condition of guarantors, impairing their ability to fulfill their obligations
Guarantors’ finances may deteriorate, while deflation can lower asset values and revenues, weakening debt service and recoveries.
- NewRisks Related to Economic Conditions
Significant changes to the size, structure, powers and operations of the federal government, changes to U.S. economic policies, and uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition
- NewRisks Related to our Business Strategy
Our growth strategy may not be successful and may adversely affect our financial condition and results of operations
- NewRisks Related to our Business Strategy
Our growth may require additional capital, which may not be available on acceptable terms, if at all
- NewRisks Related to Competitive Matters
As a smaller financial institution, we have fewer financial and operational resources than many of our competitors. This may limit our ability to invest in marketing, technology, and new products and services at the same level as larger institutions
- NewRisks Related to Operational Matters
We are subject to operational and cybersecurity risks, including risks related to technology failures and data security breaches
- NewRisks Related to Operational Matters
Our board relies on management and external advisors for oversight of cybersecurity risk
- NewRisks Related to Operational Matters
The loss of key personnel could adversely affect our business
- NewRisks Related to Operational Matters
We must maintain adequate liquidity to meet deposit withdrawals and borrower funding needs. While we rely primarily on core deposits, we also utilize alternative funding sources such as Federal Home Loan Bank advances, Federal Reserve Discount Window, federal funds purchased, and brokered deposits
- NewRisks Related to Operational Matters
Liquidity constraints may also result in increased regulatory scrutiny or restrictions, including limitations on growth, dividend payments, and the use of brokered deposits
- NewRisks Related to Operational Matters
The enhanced use of AI and ML by financial institutions can lead to a variety of risks
- NewRisks Related to Operational Matters
Data Security & Privacy: AI systems process sensitive customer data. Security breaches or unauthorized access to these systems could result in data theft, loss of intellectual property, and significant penalties, damaging customer trust
- NewRisks Related to Operational Matters
Reputational & Ethical Risk: Misuse of AI, biased outcomes, or privacy violations can harm a financial institution’s brand, erode customer confidence, and attract negative public attention, potentially affecting demand for services
- NewRisks Related to Operational Matters
We have exposure to other financial institutions through various transactions and relationships, including funding, clearing, and investments. The financial instability or failure of one or more institutions could lead to market-wide liquidity disruptions and increased credit risk
- NewRisks Related to Operational Matters
Our inability to tailor our retail delivery model to respond to consumer preferences in banking may negatively affect earnings
- NewRisks Related to Acquisitions
Acquisitions may not achieve expected benefits and may adversely affect our financial condition
- NewRisks Related to Accounting Matters
Our reputation is critical to our success
- NewRisks Related to Accounting Matters
Climate-related risks may adversely affect our business and customers
- NewRisks Related to Accounting Matters
Government shutdowns, natural disasters, and other external events could adversely affect our operations
- NewRisks Related to Accounting Matters
Anti-takeover provisions may limit changes in control
Dropped
- DroppedRisks Related to Market Interest Rates
the interest expense we pay on interest-bearing liabilities, such as deposits and borrowings
- DroppedRisks Related to Market Interest Rates
our adjustable-rate loans reprice immediately, such that changes in market interest rates take a period of time to affect our portfolio yields
Fixed-rate assets and shorter-maturity liabilities could create earnings volatility as interest rates change.
- DroppedRisks Related to Laws and Regulations
We may become subject to enforcement actions even though non-compliance was inadvertent or unintentional
Adjustable-rate loan repricing and rate changes could affect originations, asset values, asset-sale gains, and interest-rate modeling.
- DroppedRisks Related to Laws and Regulations
We are subject to stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or limit our ability to pay dividends or repurchase shares
- DroppedRisks Related to Laws and Regulations
We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to emerging growth companies could make our common stock less attractive to investors
- DroppedRisks Related to Laws and Regulations
We are also a smaller reporting company, and even if we no longer qualify as an emerging growth company, any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors
- DroppedRisks Related to Laws and Regulations
The Federal Reserve Board may require us to commit capital resources to support Home Federal Savings
- DroppedRisks Related to Economic Conditions
Inflation can have an adverse impact on our business and on our customers
- DroppedRisks Related to Economic Conditions
We have a high concentration of loans secured by real estate in our market area. Adverse economic conditions, both generally and in our market area, could adversely affect our financial condition and results of operations
- DroppedRisks Related to Economic Conditions
A worsening of economic conditions could reduce demand for our products and services and/or increase our level of non-performing loans, which could adversely affect our financial condition and results of operations
- DroppedRisks Related to Economic Conditions
the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us
- DroppedRisks Related to our Business Strategy
Our business strategy includes growth, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. Growing our operations could also cause our expenses to increase faster than our revenues
- DroppedRisks Related to our Business Strategy
Our continued pace of growth may require us to raise additional capital in the future, but that capital may not be available when it is needed
- DroppedRisks Related to Competitive Matters
Our smaller size may make it more difficult for us to compete
- DroppedRisks Related to Operational Matters
We face significant operational risks because of our reliance on technology. Our information technology systems may be subject to failure, interruption or security breaches
Regulatory enforcement could occur despite inadvertent noncompliance amid scrutiny of mortgage, consumer, AML, BSA, OFAC, and sanctions rules.
- DroppedRisks Related to Operational Matters
Our board of directors relies to a large degree on management and outside consultants in overseeing cybersecurity risk management
- DroppedRisks Related to Operational Matters
We depend on our management team to implement our business strategy and execute successful operations and we could be harmed by the loss of their services
Capital requirements could reduce return on equity, require additional capital, or restrict dividends and share repurchases.
- DroppedRisks Related to Operational Matters
Our funding sources may prove insufficient to replace deposits at maturity and support our future growth. A lack of liquidity could adversely affect our financial condition and results of operations and result in regulatory limits being placed on us
Using emerging-growth-company disclosure exemptions could make the company’s stock less attractive to investors.
- DroppedRisks Related to Operational Matters
adversely affected. Alternatively, we may need to sell a portion of our investment and/or loan portfolio to raise funds, which, depending upon market conditions, could result in us realizing a loss on the sale of such assets
Smaller-reporting-company disclosure exemptions could reduce stock attractiveness even after emerging-growth-company status ends.
- DroppedRisks Related to Operational Matters
The soundness of other financial institutions could adversely affect us
The Federal Reserve could require capital injections or other support for a troubled Home Federal Savings.
- DroppedRisks Related to Acquisitions
Acquisitions may disrupt our business and dilute stockholder value
- DroppedRisks Related to Accounting Matters
We are a community bank and our ability to maintain our reputation is critical to the success of our business. The failure to do so may materially adversely affect our performance
Inflation could reduce the value of longer-maturity investment securities and adversely affect the business.
- DroppedRisks Related to Accounting Matters
Societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers
Real-estate loan concentration and limited geographic diversification increased exposure to local economic downturns and borrower defaults.
- DroppedRisks Related to Accounting Matters
A protracted government shutdown may result in reduced loan originations and related gains on sale and could negatively affect our financial condition and results of operations
Worsening primary-market conditions could reduce product demand and increase nonperforming loans.
- DroppedRisks Related to Accounting Matters
Severe weather, natural disasters and other external events could significantly affect our operations and results
Declining guarantor net worth and liquidity could impair their ability to honor commitments.
- DroppedRisks Related to Accounting Matters
Various factors may make takeover attempts more difficult to achieve
Failure to grow or manage growth could increase expenses faster than revenues and weaken results.
Reworded
- 100% rewrittenRisks Related to Market Interest Rates
Future changes in interest rates could reduce our profits and asset values
The supplied this-year text is blank, so the prior explanation of net interest income and rate exposure is absent.
- 100% rewrittenRisks Related to Our Lending Activities
The foreclosure process may adversely impact our recoveries on non-performing loans
The discussion is shorter and focuses on evolving regulations, judicial scrutiny, borrower protections, and loan-modification programs delaying foreclosure recoveries.
- 99% rewrittenRisks Related to Laws and Regulations
Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or related regulations could result in significant penalties
The update names FinCEN reporting, customer due diligence, internal controls, acquisition or expansion restrictions, and reputational harm.
Was: Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions
- 99% rewrittenRisks Related to Accounting Matters
Changes in estimates and assumptions could materially affect our financial statements
The wording is simplified; pension liabilities become pension obligations, investment-security fair values become financial instruments, and annual-report framing is removed.
Was: Changes in management’s estimates and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results
- 97% rewrittenRisks Related to Our Lending Activities
Our mortgage banking revenue and the value of our mortgage servicing rights can be volatile
The update adds declining-rate effects on originations and mortgage-servicing-right values, plus mortgage-banking costs that may not fall with demand.
- 97% rewrittenRisks Related to Competitive Matters
Strong competition may limit our growth and profitability
The update adds higher deposit rates, digital capabilities, consolidation, legislative and technological change, and the competitive limits of small size.
Was: Strong competition within our market area may limit our growth and profitability
- 97% rewrittenRisks Related to Our Lending Activities
Our commercial and industrial loans involve credit risks that could adversely affect our financial condition and results of operations
Commercial-and-industrial loans increased from 7.96% to approximately 10.79% of the portfolio, with added emphasis on collateral liquidation difficulty.
- 97% rewrittenRisks Related to Accounting Matters
Changes in accounting standards could impact reported results
The update emphasizes recognition and measurement changes by accounting standard-setters and regulators, while retaining possible retrospective application and reporting impacts.
Was: Changes in accounting standards could affect reported earnings
- 96% rewrittenRisks Related to Our Lending Activities
We are subject to environmental liability risk associated with our lending activities and owned properties
Was: We are subject to environmental liability risk associated with lending activities or properties we own
- 95% rewrittenRisks Related to Laws and Regulations
Monetary policies of the Federal Reserve may adversely affect our business and results of operations
Was: Monetary policies and regulations of the Federal Reserve Board could adversely affect our business, financial condition and results of operations
- 95% rewrittenRisks Related to Our Lending Activities
Our real estate construction loans involve credit risks that could adversely affect our financial condition and results of operations
- 91% rewrittenRisks Related to Our Lending Activities
If our allowance for credit losses is not sufficient to cover actual loan losses, our earnings could decrease
- 91% rewrittenRisks Related to Our Lending Activities
Our historical emphasis on real estate residential loans exposes us to lending risks
- 89% rewrittenRisks Related to Our Lending Activities
Our agricultural loans involve credit risks that could adversely affect our financial condition and results of operations
- 89% rewrittenRisks Related to Laws and Regulations
Changes in laws and regulations and the cost of regulatory compliance may adversely affect our operations and increase our expenses
Was: Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations
- 85% rewrittenRisks Related to Economic Conditions
Changes in trade policies and tariffs could adversely affect our business, financial condition, and results of operations
Was: Changes to trade policies and tariffs can have an adverse impact on our business and our customers
- 74% rewrittenRisks Related to Our Lending Activities
Our real estate commercial loans involve credit risks that could adversely affect our financial condition and results of operations
All 48 risk factors
Headings as the filing states them, in filing order.
Risks Related to Market Interest Rates
- 01Future changes in interest rates could reduce our profits and asset values100% rewritten
- 02Net interest income comprises a significant portion of our earnings and represents the difference between interest income earned on interest-earning assets, such as loans and securities, and interest expense paid on interest-bearing liabilities, such as deposits and borrowingsNew
- 03In addition, an inverted yield curve—where short-term interest rates exceed long-term interest rates—may compress our net interest margin and adversely affect profitability, particularly on longer-term fixed-rate assetsNew
Risks Related to Our Lending Activities
- 04Our real estate commercial loans involve credit risks that could adversely affect our financial condition and results of operations74% rewritten
- 05Our agricultural loans involve credit risks that could adversely affect our financial condition and results of operations89% rewritten
- 06Our commercial and industrial loans involve credit risks that could adversely affect our financial condition and results of operations97% rewritten
- 07Our real estate construction loans involve credit risks that could adversely affect our financial condition and results of operations95% rewritten
- 08Our historical emphasis on real estate residential loans exposes us to lending risks91% rewritten
- 09If our allowance for credit losses is not sufficient to cover actual loan losses, our earnings could decrease91% rewritten
- 10We are subject to environmental liability risk associated with our lending activities and owned properties96% rewritten
- 11Our mortgage banking revenue and the value of our mortgage servicing rights can be volatile97% rewritten
- 12The foreclosure process may adversely impact our recoveries on non-performing loans100% rewritten
Risks Related to Laws and Regulations
- 13Changes in laws and regulations and the cost of regulatory compliance may adversely affect our operations and increase our expenses89% rewritten
- 14Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or related regulations could result in significant penalties99% rewritten
- 15The financial services industry is subject to heightened regulatory scrutiny and enforcement, particularly with respect to consumer protection, mortgage lending practices, anti-money laundering compliance, and adherence to Office of Foreign Assets Control (“OFAC”) regulations and economic sanctionsNew
- 16Monetary policies of the Federal Reserve may adversely affect our business and results of operations95% rewritten
- 17Capital requirements may limit our operations and adversely affect our return on equityNew
- 18Failure to maintain required capital levels, including the buffer, may result in restrictions on capital distributions, including dividends and share repurchases, as well as limitations on discretionary bonus payments. In addition, higher capital requirements may reduce our return on equity and constrain growthNew
- 19Our status as an emerging growth company may make our common stock less attractive to investorsNew
- 20Our status as a smaller reporting company may also reduce disclosure comparabilityNew
- 21The Federal Reserve Board may require us to provide financial support to our bank subsidiaryNew
Risks Related to Economic Conditions
- 22Changes in trade policies and tariffs could adversely affect our business, financial condition, and results of operations85% rewritten
- 23Inflation could adversely affect our financial performance and our customers' ability to repay loansNew
- 24Our concentration in real estate lending and our limited geographic diversification increase our exposure to adverse economic conditionsNew
- 25A deterioration in economic conditions could reduce demand for our products and services and increase credit-related risksNew
- 26deterioration in the financial condition of guarantors, impairing their ability to fulfill their obligationsNew
- 27Significant changes to the size, structure, powers and operations of the federal government, changes to U.S. economic policies, and uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial conditionNew
Risks Related to our Business Strategy
- 28Our growth strategy may not be successful and may adversely affect our financial condition and results of operationsNew
- 29Our growth may require additional capital, which may not be available on acceptable terms, if at allNew
Risks Related to Competitive Matters
- 30Strong competition may limit our growth and profitability97% rewritten
- 31As a smaller financial institution, we have fewer financial and operational resources than many of our competitors. This may limit our ability to invest in marketing, technology, and new products and services at the same level as larger institutionsNew
Risks Related to Operational Matters
- 32We are subject to operational and cybersecurity risks, including risks related to technology failures and data security breachesNew
- 33Our board relies on management and external advisors for oversight of cybersecurity riskNew
- 34The loss of key personnel could adversely affect our businessNew
- 35We must maintain adequate liquidity to meet deposit withdrawals and borrower funding needs. While we rely primarily on core deposits, we also utilize alternative funding sources such as Federal Home Loan Bank advances, Federal Reserve Discount Window, federal funds purchased, and brokered depositsNew
- 36Liquidity constraints may also result in increased regulatory scrutiny or restrictions, including limitations on growth, dividend payments, and the use of brokered depositsNew
- 37The enhanced use of AI and ML by financial institutions can lead to a variety of risksNew
- 38Data Security & Privacy: AI systems process sensitive customer data. Security breaches or unauthorized access to these systems could result in data theft, loss of intellectual property, and significant penalties, damaging customer trustNew
- 39Reputational & Ethical Risk: Misuse of AI, biased outcomes, or privacy violations can harm a financial institution’s brand, erode customer confidence, and attract negative public attention, potentially affecting demand for servicesNew
- 40We have exposure to other financial institutions through various transactions and relationships, including funding, clearing, and investments. The financial instability or failure of one or more institutions could lead to market-wide liquidity disruptions and increased credit riskNew
- 41Our inability to tailor our retail delivery model to respond to consumer preferences in banking may negatively affect earningsNew
Risks Related to Acquisitions
- 42Acquisitions may not achieve expected benefits and may adversely affect our financial conditionNew
Risks Related to Accounting Matters
- 43Changes in estimates and assumptions could materially affect our financial statements99% rewritten
- 44Changes in accounting standards could impact reported results97% rewritten
- 45Our reputation is critical to our successNew
- 46Climate-related risks may adversely affect our business and customersNew
- 47Government shutdowns, natural disasters, and other external events could adversely affect our operationsNew
- 48Anti-takeover provisions may limit changes in controlNew
Other Central Plains Bancshares 10-Ks
- FY2025 10-K risk factors43 risks
Central Plains Bancshares faces high exposure to real estate loan concentration and local economic downturns in its specific market area. Interest rate fluctuations, credit losses, and intense competition from larger institutions heavily threaten profitability and growth. Reliance on key management, technology systems, and external funding sources underpins operational stability.
Filed Jun 26, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.