QUINCY,
Mass., April 29, 2024 /PRNewswire/ -- CFSB
Bancorp, Inc. (the "Company") (NASDAQ Capital Market: CFSB), the
holding company for Colonial Federal Savings Bank (the "Bank"),
today announced a net loss of $40,000, or $0.01
per basic and diluted share, for the three months ended
March 31, 2024 compared to a net loss
of $210,000, or $0.03 per basic and diluted share, for the three
months ended December 31, 2023 and
net income of $355,000, or
$0.06 per basic and diluted share,
for the three months ended March 31,
2023.
For the nine months ended March 31,
2024, the net loss was $127,000, or $0.02
per basic and diluted share, compared to net income of $1.3 million, or $0.21 per basic and diluted share, for the nine
months ended March 31, 2023.
Michael E. McFarland, President
and Chief Executive Officer, stated, "Liabilities continue to
reprice at a faster rate than assets. These short- term rates over
the last twenty-four months have continued to challenge our
residential and commercial lending. A slight realignment of the
yield curve will assist us moving forward."
Third Quarter Operating Results
Net interest income,
on a fully tax-equivalent basis, remained unchanged at $1.7 million for the three months ended
March 31, 2024, and December 31, 2023. The net interest margin
decreased by six basis points to 1.96% for the three months ended
March 31, 2024, from 2.02% for the
three months ended December 31, 2023.
Net interest income reflected a $19,000 increase in interest and fees on loans, a
$56,000 increase in interest and
dividends on debt securities and a $127,000 increase in interest on short-term
investments, offset by an increase of $146,000 in interest expense on interest-bearing
deposits and a $57,000 increase in
interest expense on FHLB advances. These increases were primarily
due to the rising rate environment as well as increases in the
average balance of cash and short-term investments of $10.4 million, or 232.51%, interest-bearing
deposits of $4.1 million, or 1.8%,
and FHLB advances of $5.9 million, or
70.4%, for the three months ending March 31,
2024 compared to the three months ended December 31, 2023.
Net interest income, on a fully tax-equivalent basis, decreased
by $514,000, or 23.6%, to
$1.7 million for the three months
ended March 31, 2024, from
$2.2 million for the three months
ended March 31, 2023. The net
interest margin decreased by 63 basis points to 1.96% for the three
months ended March 31, 2024, from
2.59% for the three months ended March 31,
2023. The decline was primarily due to a 200 basis point
increase in the average rate for certificates of deposit, partially
offset by an $8.9 million decrease in
the average balance of interest-bearing deposits and a 34 basis
point increase in the average yield on interest-earning assets. The
interest earned on loans increased $77,000, to $1.8
million for the three months ended March 31, 2024, from $1.7
million for the three months ended March 31, 2023. The interest earned on securities
increased $116,000, to $1.1 million for the three months ended
March 31, 2024, from $938,000 for the three months ended March 31, 2023. The interest earned on cash and
short-term investments increased $123,000, to $176,000 for the three months ended March 31, 2024, from $53,000 for the three months ended March 31, 2023. The interest earned on
interest-earning assets was due to higher average cash balances as
well as rising interest rates.
The Company recorded reversals of the provision for credit
losses of $20,000 and $104,000 for the three months ended March 31, 2024 and December 31, 2023, respectively. The reversals of
the provision for credit losses were recorded due to improved
forecasted economic conditions, lower loan balances and continued
strong asset quality. The Company did not record a provision for
loan losses during the three months ended March 31, 2023. The allowance for credit losses
as a percentage of total loans was 0.90%, 0.93% and 0.98% at
March 31, 2024, December 31, 2023 and March 31, 2023, respectively.
Non-interest income decreased $5,000, or 2.9%, to $167,000 for the three months ended March 31, 2024, from $172,000 for the three months ended December 31, 2023, primarily due to a decrease of
$8,000 in other income, offset by an
increase of $4,000 in customer
service fees.
Non-interest income increased $19,000, or 12.8%, to $167,000 for the three months ended March 31, 2024, from $148,000 for the three months ended March 31, 2023, primarily due to an increase in
customer service fees of $4,000, or
10.8%, and an increase in other income of $12,000, or 25.5%.
Non-interest expense decreased $201,000, or 9.5%, to $1.9
million for the three months ended March 31, 2024, from $2.1
million for the three months ended December 31, 2023. The decrease was due to a
decrease in salaries and employee benefits of $150,000, or 11.8%, due to a reduced headcount
and a decrease in other general and administrative expenses of
$59,000, or 13.7%, primarily due to
decreases in printing, legal and annual meeting expenses.
Non-interest expense increased $7,000, or 0.4%, to $1.9
million for the three months ended March 31, 2024, from the three months ended
March 31, 2023. The increase was
primarily due to an increase in salaries and employee benefits of
$14,000, or 1.3%, an increase in data
processing expense of $13,000, or
15.5%, and an increase in deposit insurance of $13,000, or 65.0%, offset by decreases in
advertising expense of $6,000, or
15.8%, and other general and administrative expenses of
$27,000, or 6.8%, primarily due to
decreases in printing, legal and annual meeting expenses, offset by
costs associated with director's stock-based compensation.
The Company recorded an income tax benefit of $42,000 for the three months ended March 31, 2024, compared to a provision for
income taxes of $16,000 for the three
months ended December 31, 2023 and
$47,000 for the three months ended
March 31, 2023. The decrease in
income tax expense for the three months ended March 31, 2024, compared to the three months
ended December 31, 2023 was due to
the absence of adjustments to deferred taxes and the valuation
allowance of deferred taxes. The decrease in income tax
expense for the three months ended March 31,
2024, compared to the three months ended March 31, 2023, was due to a decrease in income
before income taxes.
Year-to-Date Operating Results
Net interest income
decreased, on a fully tax-equivalent basis, by $1.8 million, or 25.7%, to $5.2 million for the nine months ended
March 31, 2024, from $6.9 million for the nine months ended
March 31, 2023, due to a $2.3 million increase in interest expense due to
an increase in the interest on certificates of deposit of
$2.1 million and the increase in
interest on FHLB Advances of $332,000
from the prior year. The Company recognized a 132 basis point
increase in the cost of interest-bearing liabilities, due to higher
interest rates and a greater percentage of interest-bearing
liabilities in higher-costing certificates of deposit and
borrowings. The increase in interest expense was offset by an
increase in interest income of $556,000 due to higher average yields on loans,
securities and cash and short-term investments. A 25 basis point
increase in the average yield on loans, offset by a decrease in the
average balance of loans of $1.9
million, or 1.09%, contributed to a $281,000 increase in loan income. A 29 basis
point increase in the average yield on securities, offset by a
decrease in the average balance of securities of $1.0 million, or 0.7%, contributed to a
$308,000 increase in securities
income. The interest earned on cash and short-term investments
decreased $33,000 from the prior
year, due to a $5.7 million decrease
in the average balance of cash and short-term investments offset by
a 166 basis point increase in the average yield. The net interest
margin decreased 65 basis points for the nine months ended
March 31, 2024, to 2.06%, from 2.71%
in the prior year period.
The Company recognized a reversal of the provision for credit
losses of $290,000 for the nine
months ended March 31, 2024, compared
to no provision for loan losses in the prior year period. The
reversal of the provision for credit losses for the nine months
ended March 31, 2024 was
recorded due to improved forecasted economic conditions, lower loan
balances and continued strong asset quality.
Non-interest income decreased $1,000, or 0.2%, to $499,000 for the nine months ended March 31, 2024, from $500,000 for the nine months ended March 31, 2023. The decrease was primarily due to
a decrease of $19,000 in safe deposit
box fees as we now recognize fees over the rental period, offset by
increases in customer service fees of $8,000 and income on bank-owned life insurance of
$10,000.
Non-interest expenses increased $197,000, or 3.4%, to $5.9
million for the nine months ended March 31, 2024, from $5.7
million for the nine months ended March 31, 2023. Salaries and benefits increased
$157,000, or 4.7%, to $3.5 million, due to annual increases to salaries
and health insurance of employees and employee stock-based
compensation expense, deposit insurance increased $36,000, data processing costs increased
$25,000 and other general and
administrative expenses increased $25,000, offset by a $42,000 decrease in advertising costs.
Income tax expense decreased $215,000 to $67,000
for the nine months ended March 31,
2024, compared to income tax expense of $282,000 for the nine months ended March 31, 2023, due to the decrease in income
before income taxes, partially offset by an increase in the
deferred tax valuation allowance.
Balance Sheet
Assets: At
March 31, 2024, total assets amounted
to $358.1 million, compared to
$349.0 million at June 30, 2023, an increase of $9.1 million, or 2.6%, due to a $14.8 million increase in cash and cash
equivalents, a $346,000 increase in
prepaid items and a $323,000 increase
in FHLB of Boston (FHLBB) stock,
offset by a $5.0 million decrease in
net loans and a $1.4 million decrease
in securities. The increase in cash and cash equivalents was due to
increases in deposits and FHLBB advances, and decreases in loans
was a result of borrower principal payments exceeding new
origination, due to the higher interest rate environment.
Asset Quality: At March 31,
2024, there were four current loans rated substandard with a
provision for credit loss of $1,000
and no loans rated special mention, doubtful or loss. The reversal
of the provision for credit losses for the three and nine months
ended March 31, 2024 reflected
continued strong asset quality
Liabilities: Deposits increased by
$2.3 million, or 0.9%, during the
nine months ended March 31, 2024, due
to increases in higher-yielding term certificates. FHLBB advances
were $10.4 million at March 31, 2024 compared to $3.7 million at June 30,
2023, as we implemented a leverage strategy that increased
liquidity and interest income.
Stockholders' Equity. Total stockholders'
equity decreased $27,000, to
$75.9 million at March 31, 2024, from June
30, 2023. The decrease was primarily due to the net loss of
$127,000 and the effect of the
adoption of ASU 2016-13, net of taxes, of $223,000, offset by the change in unearned ESOP
compensation of $77,000, and
stock-based compensation of $269,000,
for the nine months ended March 31,
2024.
On July 1, 2023, the Company
adopted ASU 2016-13, which replaced the incurred loss methodology
with an expected loss methodology that is referred to as the
current expected credit loss ("CECL") methodology. The measurement
of expected credit losses under the CECL methodology is applicable
to financial assets measured at amortized cost, including loans
receivable and securities held to maturity. In addition, ASC 326
made changes to the accounting for securities available for sale.
It also applies to off-balance sheet credit exposures not accounted
for as insurance, such as loan commitments, standby letters of
credit, financial guarantees, and other similar instruments. The
following table illustrates the impact of ASC 326:
|
|
Pre-ASC
Adoption
|
|
|
As Reported Under
ASC 326
|
|
|
|
|
(In
thousands)
|
|
June 30,
2023
|
|
|
July 1,
2023
|
|
|
Impact of ASC 326
Adoption
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on
securities held to maturity
|
|
$
|
-
|
|
|
$
|
(276)
|
|
|
$
|
(276)
|
|
Allowance for credit
losses on loans
|
|
|
(1,747)
|
|
|
|
(1,759)
|
|
|
|
(12)
|
|
Deferred tax asset on
allowance for
credit losses
|
|
|
466
|
|
|
|
378
|
|
|
|
(88)
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on off-
balance sheet exposures
|
|
$
|
-
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
Retained
earnings
|
|
$
|
50,416
|
|
|
$
|
50,193
|
|
|
$
|
(223)
|
|
About CFSB Bancorp, Inc.
CFSB Bancorp, Inc. is the
federal mid-tier holding company of Colonial Federal Savings Bank
and is the majority-owned subsidiary of 15 Beach, MHC. Colonial
Federal Savings Bank is a federally chartered stock savings bank
that has served the banking needs of its customers on the south
shore of Massachusetts since 1889.
It operates from three full-service offices and one limited-service
office in Quincy, Holbrook and Weymouth, Massachusetts.
Forward Looking Statements
This press release
contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, which can be identified
by the use of words such as "estimate," "project," "believe,"
"intend," "anticipate," "assume," "plan," "seek," "expect," "will,"
"may," "should," "indicate," "would," "contemplate," "continue,"
"target" and words of similar meaning. These forward-looking
statements are based on our current beliefs and expectations and
are inherently subject to significant business, economic and
competitive uncertainties and contingencies, many of which are
beyond our control. In addition, these forward-looking statements
are subject to assumptions with respect to future business
strategies and decisions that are subject to change. Certain
factors that could cause actual results to differ materially from
expected results include increased competitive pressures, demand
for loan products, deposit flows, changes in the interest rate
environment, the effects of inflation, potential recessionary
conditions, general economic conditions or conditions within the
securities markets, monetary and fiscal policies of the U.S.
Government, including policies of the U.S. Treasury and the Board
of Governors of the FRB, changes in the quality, size and
composition of our loan and securities portfolios, changes in
liquidity, including the size and composition of our deposit
portfolio, including the percentage of uninsured deposits in the
portfolio; changes in asset quality, prepayment speeds, charge-offs
and/or credit loss provisions, our ability to access cost-effective
funding; changes in demand for our products and services,
legislative, accounting, tax and regulatory changes, the current or
anticipated impact of military conflict, terrorism or other
geopolitical events, a failure in or breach of our operational or
security systems or infrastructure, including cyberattacks that
could adversely affect the Company's financial condition and
results of operations and the business in which the Company and the
Bank are engaged, the failure to maintain current technologies and
the failure to retain or attract employees.
You should not place undue reliance on forward-looking
statements. CFSB Bancorp, Inc. undertakes no obligation to revise
these forward-looking statements or to reflect events or
circumstances after the date of this press release.
CFSB Bancorp, Inc.
and Subsidiary
Consolidated Balance
Sheets (Unaudited)
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
|
2024
|
|
|
2023
|
|
Assets:
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
1,182
|
|
|
$
|
1,486
|
|
Short-term
investments
|
|
|
20,482
|
|
|
|
5,375
|
|
Total cash and cash
equivalents
|
|
|
21,664
|
|
|
|
6,861
|
|
Securities available
for sale, at fair value
|
|
|
119
|
|
|
|
146
|
|
Securities held to
maturity, at amortized cost, net of allowance for credit
losses
|
|
|
146,463
|
|
|
|
147,902
|
|
Loans:
|
|
|
|
|
|
|
1-4 family
|
|
|
136,430
|
|
|
|
140,109
|
|
Multifamily
|
|
|
11,854
|
|
|
|
12,638
|
|
Second mortgages and
home equity lines of credit
|
|
|
3,495
|
|
|
|
2,699
|
|
Construction
|
|
|
-
|
|
|
|
-
|
|
Commercial
|
|
|
18,852
|
|
|
|
20,323
|
|
Total mortgage loans
on real estate
|
|
|
170,631
|
|
|
|
175,769
|
|
Consumer
|
|
|
89
|
|
|
|
49
|
|
Home
improvement
|
|
|
2,128
|
|
|
|
2,191
|
|
Total loans
|
|
|
172,848
|
|
|
|
178,009
|
|
Allowance for credit
losses
|
|
|
(1,561)
|
|
|
|
(1,747)
|
|
Net deferred loan costs
and fees, and purchase premiums
|
|
|
(399)
|
|
|
|
(351)
|
|
Loans, net
|
|
|
170,888
|
|
|
|
175,911
|
|
Federal Home Loan Bank
of Boston stock, at cost
|
|
|
704
|
|
|
|
381
|
|
Premises and equipment,
net
|
|
|
3,267
|
|
|
|
3,413
|
|
Accrued interest
receivable
|
|
|
1,400
|
|
|
|
1,363
|
|
Bank-owned life
insurance
|
|
|
10,603
|
|
|
|
10,402
|
|
Deferred tax
asset
|
|
|
1,129
|
|
|
|
1,079
|
|
Operating lease right
of use asset
|
|
|
884
|
|
|
|
953
|
|
Other assets
|
|
|
943
|
|
|
|
596
|
|
Total
assets
|
|
$
|
358,064
|
|
|
$
|
349,007
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest bearing
NOW and demand
|
|
$
|
30,789
|
|
|
$
|
32,760
|
|
Interest bearing NOW
and demand
|
|
|
28,859
|
|
|
|
28,778
|
|
Regular and
other
|
|
|
56,118
|
|
|
|
64,184
|
|
Money market
accounts
|
|
|
22,872
|
|
|
|
26,995
|
|
Term
certificates
|
|
|
127,000
|
|
|
|
110,659
|
|
Total
deposits
|
|
|
265,638
|
|
|
|
263,376
|
|
Federal Home Loan Bank
of Boston advances
|
|
|
10,350
|
|
|
|
3,675
|
|
Mortgagors' escrow
accounts
|
|
|
1,526
|
|
|
|
1,596
|
|
Operating lease
liability
|
|
|
898
|
|
|
|
962
|
|
Accrued expenses and
other liabilities
|
|
|
3,790
|
|
|
|
3,509
|
|
Total
liabilities
|
|
|
282,202
|
|
|
|
273,118
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Common stock
|
|
|
65
|
|
|
|
65
|
|
Additional paid-in
capital
|
|
|
28,058
|
|
|
|
27,814
|
|
Retained
earnings
|
|
|
50,066
|
|
|
|
50,416
|
|
Accumulated other
comprehensive loss, net of tax
|
|
|
(1)
|
|
|
|
(3)
|
|
Unearned compensation -
ESOP
|
|
|
(2,326)
|
|
|
|
(2,403)
|
|
Total stockholders'
equity
|
|
|
75,862
|
|
|
|
75,889
|
|
Total liabilities and
stockholders' equity
|
|
$
|
358,064
|
|
|
$
|
349,007
|
|
CFSB Bancorp, Inc.
and Subsidiary
Consolidated
Statements of Net Income (Loss) (Unaudited)
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
For the Nine Months
Ended
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
March
31,
|
|
|
March
31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
1,777
|
|
|
$
|
1,758
|
|
|
$
|
1,700
|
|
|
$
|
5,257
|
|
|
$
|
4,976
|
|
Interest and dividends
on debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
965
|
|
|
|
904
|
|
|
|
837
|
|
|
|
2,737
|
|
|
|
2,383
|
|
Tax-exempt
|
|
|
89
|
|
|
|
93
|
|
|
|
101
|
|
|
|
279
|
|
|
|
315
|
|
Interest on short-term
investments
|
|
|
176
|
|
|
|
49
|
|
|
|
53
|
|
|
|
270
|
|
|
|
303
|
|
Total interest and
dividend income
|
|
|
3,007
|
|
|
|
2,804
|
|
|
|
2,691
|
|
|
|
8,543
|
|
|
|
7,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,197
|
|
|
|
1,051
|
|
|
|
533
|
|
|
|
3,124
|
|
|
|
1,115
|
|
Borrowings
|
|
|
171
|
|
|
|
114
|
|
|
|
3
|
|
|
|
335
|
|
|
|
3
|
|
Total interest
expense
|
|
|
1,368
|
|
|
|
1,165
|
|
|
|
536
|
|
|
|
3,459
|
|
|
|
1,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
1,639
|
|
|
|
1,639
|
|
|
|
2,155
|
|
|
|
5,084
|
|
|
|
6,859
|
|
Provision for (reversal
of) credit losses
|
|
|
(20)
|
|
|
|
(104)
|
|
|
|
-
|
|
|
|
(290)
|
|
|
|
-
|
|
Net interest income
after provision for (reversal of) credit losses
|
|
|
1,659
|
|
|
|
1,743
|
|
|
|
2,155
|
|
|
|
5,374
|
|
|
|
6,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service
fees
|
|
|
41
|
|
|
|
37
|
|
|
|
37
|
|
|
|
118
|
|
|
|
110
|
|
Income on bank-owned
life insurance
|
|
|
67
|
|
|
|
68
|
|
|
|
64
|
|
|
|
201
|
|
|
|
191
|
|
Other
income
|
|
|
59
|
|
|
|
67
|
|
|
|
47
|
|
|
|
180
|
|
|
|
199
|
|
Total non-interest
income
|
|
|
167
|
|
|
|
172
|
|
|
|
148
|
|
|
|
499
|
|
|
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
1,117
|
|
|
|
1,267
|
|
|
|
1,103
|
|
|
|
3,528
|
|
|
|
3,371
|
|
Occupancy and
equipment
|
|
|
256
|
|
|
|
240
|
|
|
|
256
|
|
|
|
750
|
|
|
|
754
|
|
Advertising
|
|
|
32
|
|
|
|
36
|
|
|
|
38
|
|
|
|
106
|
|
|
|
148
|
|
Data
processing
|
|
|
97
|
|
|
|
101
|
|
|
|
84
|
|
|
|
287
|
|
|
|
262
|
|
Deposit
insurance
|
|
|
33
|
|
|
|
33
|
|
|
|
20
|
|
|
|
99
|
|
|
|
63
|
|
Other general and
administrative
|
|
|
373
|
|
|
|
432
|
|
|
|
400
|
|
|
|
1,163
|
|
|
|
1,138
|
|
Total non-interest
expenses
|
|
|
1,908
|
|
|
|
2,109
|
|
|
|
1,901
|
|
|
|
5,933
|
|
|
|
5,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
|
(82)
|
|
|
|
(194)
|
|
|
|
402
|
|
|
|
(60)
|
|
|
|
1,623
|
|
Provision (benefit) for
income taxes
|
|
|
(42)
|
|
|
|
16
|
|
|
|
47
|
|
|
|
67
|
|
|
|
282
|
|
Net income
(loss)
|
|
$
|
(40)
|
|
|
$
|
(210)
|
|
|
$
|
355
|
|
|
$
|
(127)
|
|
|
$
|
1,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
|
$
|
(0.03)
|
|
|
$
|
0.06
|
|
|
$
|
(0.02)
|
|
|
$
|
0.21
|
|
Diluted
|
|
$
|
(0.01)
|
|
|
$
|
(0.03)
|
|
|
$
|
0.06
|
|
|
$
|
(0.02)
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
6,292,060
|
|
|
|
6,284,768
|
|
|
|
6,300,633
|
|
|
|
6,286,323
|
|
|
|
6,282,384
|
|
Diluted
|
|
|
6,292,060
|
|
|
|
6,284,768
|
|
|
|
6,300,721
|
|
|
|
6,286,323
|
|
|
|
6,282,413
|
|
CFSB Bancorp, Inc.
and Subsidiary
Average Balances and
Yields, Fully Tax-Equivalent Basis (Unaudited)
(Dollars in
thousands)
|
|
|
|
|
Average Balance and
Yields
|
|
|
Three Months
Ended
|
|
|
March 31,
2024
|
|
|
December 31,
2023
|
|
|
March 31,
2023
|
|
|
Average
|
|
|
Interest
|
|
|
Average
|
|
|
Average
|
|
|
Interest
|
|
|
Average
|
|
|
Average
|
|
|
Interest
|
|
|
Average
|
|
|
Outstanding
|
|
|
Earned/
|
|
|
Yield/
|
|
|
Outstanding
|
|
|
Earned/
|
|
|
Yield/
|
|
|
Outstanding
|
|
|
Earned/
|
|
|
Yield/
|
|
(Dollars in
thousands)
|
Balance
|
|
|
Paid
|
|
|
Rate
|
|
|
Balance
|
|
|
Paid
|
|
|
Rate
|
|
|
Balance
|
|
|
Paid
|
|
|
Rate
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
175,072
|
|
|
$
|
1,777
|
|
|
|
4.06
|
%
|
|
$
|
176,149
|
|
|
$
|
1,758
|
|
|
|
3.99
|
%
|
|
$
|
179,452
|
|
|
$
|
1,700
|
|
|
|
3.79
|
%
|
Securities
(1)
|
|
149,442
|
|
|
|
1,078
|
|
|
|
2.89
|
%
|
|
|
149,187
|
|
|
|
1,022
|
|
|
|
2.74
|
%
|
|
|
150,945
|
|
|
|
960
|
|
|
|
2.54
|
%
|
Cash and short-term
investments
|
|
14,933
|
|
|
|
176
|
|
|
|
4.71
|
%
|
|
|
4,491
|
|
|
|
49
|
|
|
|
4.36
|
%
|
|
|
5,287
|
|
|
|
53
|
|
|
|
4.01
|
%
|
Total interest-earning
assets
|
|
339,447
|
|
|
|
3,031
|
|
|
|
3.57
|
%
|
|
|
329,827
|
|
|
|
2,829
|
|
|
|
3.43
|
%
|
|
|
335,684
|
|
|
|
2,713
|
|
|
|
3.23
|
%
|
Noninterest-earning
assets
|
|
17,082
|
|
|
|
|
|
|
|
|
|
16,875
|
|
|
|
|
|
|
|
|
|
17,207
|
|
|
|
|
|
|
|
Total
assets
|
$
|
356,529
|
|
|
|
|
|
|
|
|
$
|
346,702
|
|
|
|
|
|
|
|
|
$
|
352,891
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
|
30,261
|
|
|
$
|
4
|
|
|
|
0.05
|
%
|
|
$
|
29,746
|
|
|
$
|
4
|
|
|
|
0.05
|
%
|
|
$
|
32,245
|
|
|
$
|
4
|
|
|
|
0.05
|
%
|
Savings
deposits
|
|
57,619
|
|
|
|
14
|
|
|
|
0.10
|
%
|
|
|
58,992
|
|
|
|
15
|
|
|
|
0.10
|
%
|
|
|
68,097
|
|
|
|
17
|
|
|
|
0.10
|
%
|
Money market
deposits
|
|
23,396
|
|
|
|
15
|
|
|
|
0.26
|
%
|
|
|
24,153
|
|
|
|
15
|
|
|
|
0.25
|
%
|
|
|
34,377
|
|
|
|
22
|
|
|
|
0.26
|
%
|
Certificates of
deposit
|
|
121,108
|
|
|
|
1,164
|
|
|
|
3.84
|
%
|
|
|
115,397
|
|
|
|
1,017
|
|
|
|
3.53
|
%
|
|
|
106,555
|
|
|
|
490
|
|
|
|
1.84
|
%
|
Total interest-bearing
deposits
|
|
232,384
|
|
|
|
1,197
|
|
|
|
2.06
|
%
|
|
|
228,288
|
|
|
|
1,051
|
|
|
|
1.84
|
%
|
|
|
241,274
|
|
|
|
533
|
|
|
|
0.88
|
%
|
FHLB
advances
|
|
14,186
|
|
|
|
171
|
|
|
|
4.82
|
%
|
|
|
8,323
|
|
|
|
114
|
|
|
|
5.48
|
%
|
|
|
244
|
|
|
|
3
|
|
|
|
4.92
|
%
|
Total interest-bearing
liabilities
|
|
246,570
|
|
|
|
1,368
|
|
|
|
2.22
|
%
|
|
|
236,611
|
|
|
|
1,165
|
|
|
|
1.97
|
%
|
|
|
241,518
|
|
|
|
536
|
|
|
|
0.89
|
%
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
28,530
|
|
|
|
|
|
|
|
|
|
28,223
|
|
|
|
|
|
|
|
|
|
30,352
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
5,650
|
|
|
|
|
|
|
|
|
|
5,968
|
|
|
|
|
|
|
|
|
|
5,554
|
|
|
|
|
|
|
|
Total
liabilities
|
|
280,750
|
|
|
|
|
|
|
|
|
|
270,802
|
|
|
|
|
|
|
|
|
|
277,424
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
75,779
|
|
|
|
|
|
|
|
|
|
75,900
|
|
|
|
|
|
|
|
|
|
75,467
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
356,529
|
|
|
|
|
|
|
|
|
$
|
346,702
|
|
|
|
|
|
|
|
|
$
|
352,891
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
1,663
|
|
|
|
|
|
|
|
|
$
|
1,664
|
|
|
|
|
|
|
|
|
$
|
2,177
|
|
|
|
|
Net interest rate
spread(2)
|
|
|
|
|
|
|
|
1.35
|
%
|
|
|
|
|
|
|
|
|
1.46
|
%
|
|
|
|
|
|
|
|
|
2.34
|
%
|
Net interest-earning
assets(3)
|
$
|
92,877
|
|
|
|
|
|
|
|
|
$
|
93,216
|
|
|
|
|
|
|
|
|
$
|
94,166
|
|
|
|
|
|
|
|
Net interest
margin(4)
|
|
|
|
|
|
|
|
1.96
|
%
|
|
|
|
|
|
|
|
|
2.02
|
%
|
|
|
|
|
|
|
|
|
2.59
|
%
|
Cost of
deposits(5)
|
|
|
|
|
|
|
|
1.84
|
%
|
|
|
|
|
|
|
|
|
1.64
|
%
|
|
|
|
|
|
|
|
|
0.78
|
%
|
Cost of
funds(6)
|
|
|
|
|
|
|
|
1.99
|
%
|
|
|
|
|
|
|
|
|
1.76
|
%
|
|
|
|
|
|
|
|
|
0.79
|
%
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
|
137.67
|
%
|
|
|
|
|
|
|
|
|
139.40
|
%
|
|
|
|
|
|
|
|
|
138.99
|
%
|
|
|
|
|
|
|
(1) Includes tax
equivalent adjustments for municipal securities, based on a
statutory tax rate of 21%, of $24,000, $25,000, and $22,000 for the
three months ended March 31, 2024, December 31, 2023 and March 31,
2023, respectively.
|
(2) Net interest rate
spread represents the difference between the weighted average yield
earned on interest-earning assets and the weighted average rate
paid on interest-bearing liabilities.
|
(3) Net
interest-earning assets represent total interest-earning assets
less total interest-bearing liabilities.
|
(4) Net interest margin
represents net interest income divided by average total
interest-earning assets.
|
(5) Cost of deposits
represents the total interest paid on deposits, divided by total
interest-bearing deposits plus total noninterest-bearing
deposits.
|
(6) Cost of funds
represents the total interest paid on liabilities, divided by total
interest-bearing liabilities plus total noninterest-bearing
deposits.
|
CFSB Bancorp, Inc.
and Subsidiary
Average Balances and
Yields, Fully Tax-Equivalent Basis (Unaudited)
(Dollars in
thousands)
|
|
|
|
|
Average Balance and
Yields
|
|
|
Nine Months
Ended
|
|
|
March 31,
2024
|
|
|
March 31,
2023
|
|
|
Average
|
|
|
Interest
|
|
|
Average
|
|
|
Average
|
|
|
Interest
|
|
|
Average
|
|
|
Outstanding
|
|
|
Earned/
|
|
|
Yield/
|
|
|
Outstanding
|
|
|
Earned/
|
|
|
Yield/
|
|
(Dollars in
thousands)
|
Balance
|
|
|
Paid
|
|
|
Rate
|
|
|
Balance
|
|
|
Paid
|
|
|
Rate
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
175,966
|
|
|
$
|
5,257
|
|
|
|
3.98
|
%
|
|
$
|
177,898
|
|
|
$
|
4,976
|
|
|
|
3.73
|
%
|
Securities
(1)
|
|
149,296
|
|
|
|
3,090
|
|
|
|
2.76
|
%
|
|
|
150,318
|
|
|
|
2,782
|
|
|
|
2.47
|
%
|
Cash and short-term
investments
|
|
7,733
|
|
|
|
270
|
|
|
|
4.66
|
%
|
|
|
13,445
|
|
|
|
303
|
|
|
|
3.00
|
%
|
Total interest-earning
assets
|
|
332,995
|
|
|
|
8,617
|
|
|
|
3.45
|
%
|
|
|
341,661
|
|
|
|
8,061
|
|
|
|
3.15
|
%
|
Noninterest-earning
assets
|
|
16,765
|
|
|
|
|
|
|
|
|
|
16,401
|
|
|
|
|
|
|
|
Total
assets
|
$
|
349,760
|
|
|
|
|
|
|
|
|
$
|
358,062
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
|
29,972
|
|
|
$
|
11
|
|
|
|
0.05
|
%
|
|
$
|
32,982
|
|
|
$
|
12
|
|
|
|
0.05
|
%
|
Savings
deposits
|
|
59,693
|
|
|
|
47
|
|
|
|
0.10
|
%
|
|
|
72,112
|
|
|
|
54
|
|
|
|
0.10
|
%
|
Money market
deposits
|
|
24,611
|
|
|
|
45
|
|
|
|
0.24
|
%
|
|
|
39,956
|
|
|
|
80
|
|
|
|
0.27
|
%
|
Certificates of
deposit
|
|
116,087
|
|
|
|
3,021
|
|
|
|
3.47
|
%
|
|
|
100,875
|
|
|
|
969
|
|
|
|
1.28
|
%
|
Total interest-bearing
deposits
|
|
230,363
|
|
|
|
3,124
|
|
|
|
1.81
|
%
|
|
|
245,925
|
|
|
|
1,115
|
|
|
|
0.60
|
%
|
FHLB
advances
|
|
8,673
|
|
|
|
335
|
|
|
|
5.15
|
%
|
|
|
80
|
|
|
|
3
|
|
|
|
5.00
|
%
|
Total interest-bearing
liabilities
|
|
239,036
|
|
|
|
3,459
|
|
|
|
1.93
|
%
|
|
|
246,005
|
|
|
|
1,118
|
|
|
|
0.61
|
%
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
29,244
|
|
|
|
|
|
|
|
|
|
31,928
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
5,683
|
|
|
|
|
|
|
|
|
|
5,044
|
|
|
|
|
|
|
|
Total
liabilities
|
|
273,963
|
|
|
|
|
|
|
|
|
|
282,977
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
75,797
|
|
|
|
|
|
|
|
|
|
75,085
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
349,760
|
|
|
|
|
|
|
|
|
$
|
358,062
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
5,158
|
|
|
|
|
|
|
|
|
$
|
6,943
|
|
|
|
|
Net interest rate
spread(2)
|
|
|
|
|
|
|
|
1.52
|
%
|
|
|
|
|
|
|
|
|
2.54
|
%
|
Net interest-earning
assets(3)
|
$
|
93,959
|
|
|
|
|
|
|
|
|
$
|
95,656
|
|
|
|
|
|
|
|
Net interest
margin(4)
|
|
|
|
|
|
|
|
2.07
|
%
|
|
|
|
|
|
|
|
|
2.71
|
%
|
Cost of
deposits(5)
|
|
|
|
|
|
|
|
1.60
|
%
|
|
|
|
|
|
|
|
|
0.54
|
%
|
Cost of
funds(6)
|
|
|
|
|
|
|
|
1.72
|
%
|
|
|
|
|
|
|
|
|
0.54
|
%
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
|
139.31
|
%
|
|
|
|
|
|
|
|
|
138.88
|
%
|
|
|
|
|
|
|
(1) Includes tax
equivalent adjustments for municipal securities, based on a
statutory tax rate of 21%, of $74,000 and $84,000 for the nine
months ended March 31, 2024 and March 31, 2023,
respectively.
|
(2) Net interest rate
spread represents the difference between the weighted average yield
earned on interest-earning assets and the weighted average rate
paid on interest-bearing liabilities.
|
(3) Net
interest-earning assets represent total interest-earning assets
less total interest-bearing liabilities.
|
(4) Net interest margin
represents net interest income divided by average total
interest-earning assets.
|
(5) Cost of deposits
represents the total interest paid on deposits, divided by total
interest-bearing deposits plus total noninterest-bearing
deposits.
|
(6) Cost of funds
represents the total interest paid on liabilities, divided by total
interest-bearing liabilities plus total noninterest-bearing
deposits.
|
|
CFSB Bancorp, Inc.
and Subsidiary
Reconciliation of
Fully Tax-Equivalent Income (Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
For the Nine Months
Ended
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
March
31,
|
|
|
March
31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Securities interest
income (no tax adjustment)
|
|
$
|
1,054
|
|
|
$
|
997
|
|
|
$
|
938
|
|
|
$
|
3,016
|
|
|
$
|
2,698
|
|
Tax-equivalent
adjustment
|
|
|
24
|
|
|
|
25
|
|
|
|
22
|
|
|
|
74
|
|
|
|
84
|
|
Securities
(tax-equivalent basis)
|
|
$
|
1,078
|
|
|
$
|
1,022
|
|
|
$
|
960
|
|
|
$
|
3,090
|
|
|
$
|
2,782
|
|
Net interest income (no
tax adjustment)
|
|
$
|
1,639
|
|
|
$
|
1,639
|
|
|
$
|
2,155
|
|
|
$
|
5,084
|
|
|
|
6,859
|
|
Tax-equivalent
adjustment
|
|
|
24
|
|
|
|
25
|
|
|
|
22
|
|
|
|
74
|
|
|
|
84
|
|
Net interest income
(tax-equivalent adjustment)
|
|
$
|
1,663
|
|
|
$
|
1,664
|
|
|
$
|
2,177
|
|
|
$
|
5,158
|
|
|
$
|
6,943
|
|
CFSB Bancorp, Inc.
and Subsidiary
|
|
At or for the Three
Months Ended
|
|
|
At or for the Nine
Months Ended
|
|
Selected Financial
Highlights (Unaudited)
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
|
March
31,
|
|
|
March
31,
|
|
(In thousands,
except share and per share amounts)
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Performance
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return (loss) on
average assets (GAAP) (1, 4)
|
|
|
(0.04)
|
%
|
|
|
(0.24)
|
%
|
|
|
0.40
|
%
|
|
|
(0.05)
|
%
|
|
|
0.50
|
%
|
Return (loss) on
average equity ("ROAE") (GAAP) (1, 5)
|
|
|
(0.21)
|
%
|
|
|
(1.11)
|
%
|
|
|
1.88
|
%
|
|
|
(0.22)
|
%
|
|
|
2.38
|
%
|
Noninterest expense to
average assets (GAAP) (1)
|
|
|
2.14
|
%
|
|
|
2.43
|
%
|
|
|
2.15
|
%
|
|
|
2.43
|
%
|
|
|
2.14
|
%
|
Total loans to total
deposits
|
|
|
65.07
|
%
|
|
|
68.62
|
%
|
|
|
66.32
|
%
|
|
|
65.07
|
%
|
|
|
66.32
|
%
|
Total loans to total
assets
|
|
|
48.27
|
%
|
|
|
49.30
|
%
|
|
|
50.92
|
%
|
|
|
48.27
|
%
|
|
|
50.92
|
%
|
Efficiency ratio (GAAP)
(6)
|
|
|
105.65
|
%
|
|
|
116.45
|
%
|
|
|
82.54
|
%
|
|
|
106.27
|
%
|
|
|
77.95
|
%
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to
risk-weighted assets
|
|
|
34.07
|
%
|
|
|
33.32
|
%
|
|
|
32.60
|
%
|
|
|
34.07
|
%
|
|
|
32.60
|
%
|
Common equity tier 1
capital to risk-weighted assets
|
|
|
33.15
|
%
|
|
|
32.41
|
%
|
|
|
31.70
|
%
|
|
|
33.15
|
%
|
|
|
31.70
|
%
|
Tier 1 capital to
risk-weighted assets
|
|
|
33.15
|
%
|
|
|
32.41
|
%
|
|
|
31.70
|
%
|
|
|
33.15
|
%
|
|
|
31.70
|
%
|
Tier 1 capital to
average assets (2)
|
|
|
17.83
|
%
|
|
|
18.32
|
%
|
|
|
17.90
|
%
|
|
|
17.83
|
%
|
|
|
17.90
|
%
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses on loans as a percentage of total loans
(3)
|
|
|
0.90
|
%
|
|
|
0.93
|
%
|
|
|
0.98
|
%
|
|
|
0.90
|
%
|
|
|
0.98
|
%
|
Allowance for credit
losses on loans as a percentage of non-performing loans
|
|
NM
|
|
|
|
1740.46
|
%
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
Net (charge-offs)
recoveries to average outstanding loans
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
Non-performing loans as
a percentage of total loans
|
|
|
-
|
%
|
|
|
0.05
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
Non-performing loans as
a percentage of total assets
|
|
|
-
|
%
|
|
|
0.03
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
Informational
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of held to
maturity securities
|
|
$
|
132,946
|
|
|
$
|
136,427
|
|
|
$
|
136,774
|
|
|
$
|
132,946
|
|
|
$
|
136,774
|
|
Book value per share
(7)
|
|
$
|
11.44
|
|
|
$
|
11.43
|
|
|
$
|
11.41
|
|
|
$
|
11.44
|
|
|
$
|
11.41
|
|
Outstanding common
shares
|
|
|
6,632,642
|
|
|
|
6,632,642
|
|
|
|
6,632,642
|
|
|
|
6,632,642
|
|
|
|
6,632,642
|
|
(1)
Annualized.
|
(2) Average assets
calculated on a quarterly basis.
|
(3) Total loans exclude
net deferred loan costs and fees.
|
(4) Represents net
income divided by average assets.
|
(5) Represents net
income divided by average stockholders' equity
|
(6) Represents total
non-interest expenses divided by net interest income and
non-interest income.
|
(7) Represents total
stockholders' equity divided by outstanding shares at period
end.
|
View original
content:https://www.prnewswire.com/news-releases/cfsb-bancorp-inc-announces-fiscal-third-quarter-and-year-to-date-2024-financial-results-302130415.html
SOURCE CFSB Bancorp, Inc.