EX-99.1 2 cfsb-ex99_1.htm EX-99.1 EX-99.1

img262294579_0.jpg 

Exhibit 99.1

News Release -

For Immediate Release

April 29, 2024

For More Information, Contact:

Michael E. McFarland, President and Chief

Executive Officer (617-471-0750)

 

CFSB BANCORP, INC. ANNOUNCES FISCAL THIRD QUARTER AND YEAR-TO-DATE 2024 FINANCIAL RESULTS

 

QUINCY, Massachusetts, April 29, 2024 – 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.

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

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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.

 

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

2

 

 

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

)

 

 

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

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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.

 

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

4

 

 

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

 

 

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

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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

 

 

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

6

 

 

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.

 

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

7

 

 

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

 

 

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

8

 

 

 

 

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.

____________________________________________________________________________________________________________

15 Beach Street, Quincy, MA 02170 | 617.471.0750 | colonialfed.com

9