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

October 29, 2024

For More Information, Contact:

Michael E. McFarland, President and Chief

Executive Officer (617-471-0750)

 

CFSB BANCORP, INC. ANNOUNCES FISCAL FIRST QUARTER 2025 FINANCIAL RESULTS

 

QUINCY, Massachusetts, October 29, 2024 – CFSB Bancorp, Inc. (the “Company”) (NASDAQ Capital Market: CFSB), the holding company for Colonial Federal Savings Bank (the “Bank”), announced a net loss of $6,000, or $0.00 per basic and diluted share, for the three months ended September 30, 2024 compared to net income of $123,000, or $0.02 per basic and diluted share, for the three months ended September 30, 2023 and net income of $160,000, or $0.03 per basic and diluted share, for the three months ended June 30, 2024.

Michael E. McFarland, President and Chief Executive Officer, states "Returns on equity and assets in the first quarter of 2025 were significantly lower than our long-term performance, reflecting the ongoing challenges from the increase in short-term interest rates over the last twenty-four months and a historically long and deep inversion of the yield curve. We have seen the beginning of rate reductions from the Federal Reserve and look forward to a flat yield curve. As assets continue to reprice the challenges on competitive deposit rates should start to diminish as the market adjusts.”

 

First Quarter Operating Results

Net interest income, on a fully tax-equivalent basis, decreased by $169,000, or 9.2%, to $1.7 million for the three months ended September 30, 2024, from $1.8 million for the three months ended September 30, 2023. The net interest margin decreased by 30 basis points to 1.92% for the three months ended September 30, 2024, from 2.22%, for the three months ended September 30, 2023. Interest income increased $481,000, or 17.4%, due to a $134,000 increase in interest and dividends on securities, a $285,000 increase in interest on cash and short-term investments and a $62,000 increase in interest and fees on loans. These changes reflect an overall increased yield on interest-earning assets of 39 basis points, due to the higher rate environment as well as an increase in the average balance of cash and short-term investments of $23.0 million, partially offset by a decrease in the average balance of loans of $5.2 million and a decrease in the average balance of securities of $1.7 million. Interest expense increased $650,000, or 70.2%, due to an increase of $581,000 in interest expense on interest-bearing deposits, and a $69,000 increase in interest expense on FHLB advances. The increase in interest expense on interest-bearing deposits reflected a 92 basis point increase in the average cost, primarily due to the higher interest rate environment and an increased percentage of higher costing certificates of deposit in the portfolio, and an $8.9 million increase in the average balance of interest-bearing deposits. The increase in interest expense on FHLB advances was due to a $6.8 million, or 189.8%, increase in the average balance of FHLB advances for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, offset by a 100 basis point decrease in the average cost of FHLB advances as newer advances were borrowed at lower rates.

 

Net interest income, on a fully tax-equivalent basis, increased by $20,000, or 1.2%, to $1.7 million for the three months ended September 30, 2024, from $1.6 million for the three months ended June 30, 2024. The net interest margin decreased by one basis point to 1.92% for the three months ended September 30, 2024, from 1.93% for the three months ended June 30, 2024. The decline was primarily due to an eight basis point increase in the average rate for certificates of deposit and a $3.8 million increase in the average balance of certificates of deposit, offset by a five basis point increase in the average yield on interest-earning assets and a $4.8 million increase in the average balance of interest-earning assets. The interest earned on loans increased $21,000 for the three months ended September 30, 2024, compared to the three months ended June 30, 2024, due to a six basis point increase in the yield offset by a $703,000 decrease in the average balance. The interest earned on securities increased $20,000 for the three months ended September 30, 2024, compared to the three months ended June 30, 2024, due to an eight basis point increase in the average yield offset by a $1.1 million decrease in the average balance. The interest earned on cash and short-term investments increased $48,000, to $330,000 for the three months ended September 30, 2024 from $282,000 for the three months ended June 30, 2024, due to a 66 basis point decrease in the average yield offset by a $6.6 million increase in the average balance. The increase in interest earned on interest-earning assets was also due to higher average cash balances as well as higher yields.

 

The Company recorded reversals of the provision for credit losses of $71,000, $166,000, and $32,000 for the three months ended September 30, 2024, September 30, 2023, and June 30, 2024, respectively. The $15,000 reversal for credit losses for securities held to maturity was primarily due to improvements in economic conditions and lower balances at September 30, 2024. The $8,000 reversal for credit losses for off-balance sheet exposures was primarily due to a decrease of $842,000 in unfunded commitments at September 30, 2024. The $48,000 reversal for credit

____________________________________________________________________________________________________________

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

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losses for loans was primarily due to improvements in economic conditions, lower loan balances and continued strong asset quality at September 30, 2024. The allowance for credit losses on loans as a percentage of total loans was 0.89%, 0.94%, and 0.90% at September 30, 2024, September 30, 2023, and June 30, 2024, respectively.

Non-interest income increased $10,000, or 6.3%, to $170,000 for the three months ended September 30, 2024, from $160,000 for the three months ended September 30, 2023, primarily due to an increase of $6,000 in other income and an increase of $3,000 in income on bank-owned life insurance.

 

Non-interest income increased $4,000, or 2.4%, to $170,000 for the three months ended September 30, 2024, from $166,000 for the three months ended June 30, 2024, due to an increase of $4,000 in customer service fees and an increase of $3,000 in income on bank-owned life insurance, offset by a decrease of $3,000 in other income.

 

Non-interest expense decreased $45,000, or 2.3%, to $1.9 million for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. The decrease was primarily due to a decrease in salaries and employee benefits of $48,000, offset by an increase in data processing costs of $5,000. The decrease in salaries and employee benefit expense was primarily due to a reduction in head count.

 

Non-interest expense increased $106,000, or 6.0%, to $1.9 million for the three months ended September 30, 2024, from $1.8 million for the three months ended June 30, 2024. The increase was due to an increase in salaries and employee benefits of $66,000, primarily due to the increased cost of the pension plan, an increase in occupancy and equipment expense of $26,000, due to an increase in service contracts expense, and an increase of $12,000 in data processing costs.

 

The Company recorded an income tax expense of $19,000 for the three months ended September 30, 2024, compared to income tax expense of $93,000 for the three months ended September 30, 2023 and an income tax benefit of $106,000 for the three months ended June 30, 2024. The decrease in income tax expense for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, was due to a decrease in income before income taxes. Income tax expense for the three months ended September 30, 2024 was greater than pre-tax income of $13,000 because of a $46,000 increase to the valuation allowance on the charitable contribution carryover. The increase in income tax expense for the three months ended September 30, 2024, compared to the three months ended June 30, 2024, was due to an income tax benefit related to the recognition of a post-retirement benefit and adjustments to the net deferred tax asset during the three months ended June 30, 2024.

 

Balance Sheet

Assets: At September 30, 2024, total assets increased $18.3 million, or 5.3%, to $364.5 million at September 30, 2024, from $346.2 million at September 30, 2023. The increase resulted primarily from increases in cash and cash equivalents of $24.5 million, offset by a decrease in total loans of $6.2 million. The increase in cash and cash equivalents was due to net paydowns of loans of $6.2 million, increases in deposits of $11.0 million and increases in FHLB advances of $7.1 million. At September 30, 2024, total assets amounted to $364.5 million, compared to $363.4 million at June 30, 2024, an increase of $1.1 million, or 0.3%. The increase resulted primarily from increases in cash and cash equivalents of $3.7 million, offset by a decrease in total loans of $2.5 million. The increase in cash and cash equivalents was due to the decrease in loans of $2.5 million, increases in deposits of $829,000 and increases in mortgagors' escrow accounts of $65,000.

 

Asset Quality: At September 30, 2024, there were four one- to four-family loans totaling $1.4 million rated substandard with a provision for credit loss of $10,000. There were no loans rated special mention, doubtful or loss and no non-performing or delinquent loans at September 30, 2024. There were $1,000 in charge-offs of deposit overdrafts for the three months ended September 30, 2024. At September 30, 2023, we had four one- to four-family loans totaling $1.4 million rated as special mention. There were no loans categorized as substandard, doubtful or loss and no non-performing loans at September 30, 2023. There were no charge-offs for the three months ended September 30, 2023. At June 30, 2024, there were four one- to four-family loans totaling $1.4 million rated substandard with a provision for credit loss of $10,000. There were no loans rated special mention, doubtful or loss and no non-performing or delinquent loans at June 30, 2024. There were no charge-offs for the three months ended June 30, 2024.

 

Liabilities: Deposits increased by $11.0 million, or 4.2%, to $271.7 million at September 30, 2024 compared to $260.7 million at September 30, 2023. The increase was due to an increase of $20.6 million in higher-yielding term certificates of deposit, offset by decreases of $5.7 million in regular accounts, $2.5 million in money market accounts, and $1.7 million in interest-bearing NOW and demand accounts. Deposits increased by $829,000, or 0.3%, to $271.7 million at September 30, 2024 compared to $270.8 million at June 30, 2024. The increase was due to increases of $1.9 million in higher-yielding term certificates, $938,000 interest-bearing NOW and demand accounts, $467,000 in regular accounts and $431,000 in money market accounts, offset by a decrease of $2.9 million in non-interest-bearing NOW and demand accounts. The change in composition and the increase in certificates of deposit was a result of the Bank offering certificate of deposit promotions as customers seek accounts with higher interest rates.

 

Stockholders' Equity. Total stockholders' equity increased $138,000, to $76.0 million at September 30, 2024, from $75.9 million at September 30, 2023. The increase was primarily due to the changes in unearned ESOP compensation of $102,000 and stock-based compensation of $324,000, offset by the purchase of company stock of $195,000 and the net loss for the twelve months ended September 30, 2024 of $96,000.

____________________________________________________________________________________________________________

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

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Total stockholders' equity decreased $15,000, to $76.0 million at September 30, 2024, compared to June 30, 2024. The decrease was primarily due to the changes in unearned ESOP compensation of $26,000 and stock-based compensation of $90,000, offset by the purchase of company stock of $117,000 and the net loss for the three months ended September 30, 2024 of $6,000.

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, 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, and 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.

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

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CFSB Bancorp, Inc. and Subsidiary

Consolidated Balance Sheets (Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

Sep 2024 vs.

 

 

Sep 2024 vs.

 

 

 

2024

 

 

2024

 

 

2023

 

 

Jun 2024

 

 

Sep 2023

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,157

 

 

$

1,339

 

 

$

1,394

 

 

 

(13.6

)%

 

 

(17.0

)%

Short-term investments

 

 

29,510

 

 

 

25,620

 

 

 

4,724

 

 

 

15.2

%

 

 

524.7

%

Total cash and cash equivalents

 

 

30,667

 

 

 

26,959

 

 

 

6,118

 

 

 

13.8

%

 

 

401.3

%

Securities available for sale, at fair value

 

 

108

 

 

 

113

 

 

 

139

 

 

 

(4.4

)%

 

 

(22.3

)%

Securities held to maturity, at amortized cost, net of allowance for credit losses

 

 

146,853

 

 

 

146,994

 

 

 

147,537

 

 

 

(0.1

)%

 

 

(0.5

)%

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family

 

 

135,834

 

 

 

138,005

 

 

 

137,743

 

 

 

(1.6

)%

 

 

(1.4

)%

Multifamily

 

 

11,961

 

 

 

12,066

 

 

 

12,883

 

 

 

(0.9

)%

 

 

(7.2

)%

Second mortgages and home equity lines of credit

 

 

3,232

 

 

 

3,372

 

 

 

3,129

 

 

 

(4.2

)%

 

 

3.3

%

Commercial

 

 

16,829

 

 

 

16,833

 

 

 

20,110

 

 

 

(0.0

)%

 

 

(16.3

)%

Total mortgage loans on real estate

 

 

167,856

 

 

 

170,276

 

 

 

173,865

 

 

 

(1.4

)%

 

 

(3.5

)%

Consumer

 

 

71

 

 

 

65

 

 

 

65

 

 

 

9.2

%

 

 

9.2

%

Home improvement

 

 

1,981

 

 

 

2,037

 

 

 

2,180

 

 

 

(2.7

)%

 

 

(9.1

)%

Total loans

 

 

169,908

 

 

 

172,378

 

 

 

176,110

 

 

 

(1.4

)%

 

 

(3.5

)%

Allowance for credit losses

 

 

(1,504

)

 

 

(1,553

)

 

 

(1,649

)

 

 

(3.2

)%

 

 

(8.8

)%

Net deferred loan costs and fees, and purchase premiums

 

 

(381

)

 

 

(387

)

 

 

(381

)

 

 

(1.6

)%

 

 

0.0

%

Loans, net

 

 

168,023

 

 

 

170,438

 

 

 

174,080

 

 

 

(1.4

)%

 

 

(3.5

)%

Federal Home Loan Bank of Boston stock, at cost

 

 

704

 

 

 

704

 

 

 

405

 

 

 

0.0

%

 

 

73.8

%

Premises and equipment, net

 

 

3,186

 

 

 

3,246

 

 

 

3,354

 

 

 

(1.8

)%

 

 

(5.0

)%

Accrued interest receivable

 

 

1,354

 

 

 

1,398

 

 

 

1,395

 

 

 

(3.1

)%

 

 

(2.9

)%

Bank-owned life insurance

 

 

10,739

 

 

 

10,670

 

 

 

10,468

 

 

 

0.6

%

 

 

2.6

%

Deferred tax asset

 

 

1,243

 

 

 

1,245

 

 

 

1,132

 

 

 

(0.2

)%

 

 

9.8

%

Operating lease right of use asset

 

 

836

 

 

 

860

 

 

 

930

 

 

 

(2.8

)%

 

 

(10.1

)%

Other assets

 

 

773

 

 

 

812

 

 

 

663

 

 

 

(4.8

)%

 

 

16.6

%

Total assets

 

$

364,486

 

 

$

363,439

 

 

$

346,221

 

 

 

0.3

%

 

 

5.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing NOW and demand

 

$

31,190

 

 

$

34,124

 

 

$

30,918

 

 

 

(8.6

)%

 

 

0.9

%

Interest-bearing NOW and demand

 

 

29,200

 

 

 

28,262

 

 

 

30,902

 

 

 

3.3

%

 

 

(5.5

)%

Regular and other

 

 

54,659

 

 

 

54,192

 

 

 

60,389

 

 

 

0.9

%

 

 

(9.5

)%

Money market accounts

 

 

22,387

 

 

 

21,956

 

 

 

24,877

 

 

 

2.0

%

 

 

(10.0

)%

Term certificates

 

 

134,234

 

 

 

132,307

 

 

 

113,587

 

 

 

1.5

%

 

 

18.2

%

Total deposits

 

 

271,670

 

 

 

270,841

 

 

 

260,673

 

 

 

0.3

%

 

 

4.2

%

Federal Home Loan Bank of Boston advances

 

 

10,350

 

 

 

10,350

 

 

 

3,250

 

 

 

0.0

%

 

 

218.5

%

Mortgagors' escrow accounts

 

 

1,590

 

 

 

1,525

 

 

 

1,626

 

 

 

4.3

%

 

 

(2.2

)%

Operating lease liability

 

 

855

 

 

 

877

 

 

 

941

 

 

 

(2.5

)%

 

 

(9.1

)%

Accrued expenses and other liabilities

 

 

3,986

 

 

 

3,796

 

 

 

3,834

 

 

 

5.0

%

 

 

4.0

%

Total liabilities

 

 

288,451

 

 

 

287,389

 

 

 

270,324

 

 

 

0.4

%

 

 

6.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

65

 

 

 

65

 

 

 

65

 

 

 

0.0

%

 

 

0.0

%

Additional paid-in capital

 

 

28,220

 

 

 

28,139

 

 

 

27,896

 

 

 

0.3

%

 

 

1.2

%

Treasury stock

 

 

(195

)

 

 

(78

)

 

 

-

 

 

 

150.0

%

 

 

100.0

%

Retained earnings

 

 

50,220

 

 

 

50,226

 

 

 

50,316

 

 

 

(0.0

)%

 

 

(0.2

)%

Accumulated other comprehensive loss, net of tax

 

 

-

 

 

 

(1

)

 

 

(3

)

 

 

(100.0

)%

 

 

(100.0

)%

Unearned compensation - ESOP

 

 

(2,275

)

 

 

(2,301

)

 

 

(2,377

)

 

 

(1.1

)%

 

 

(4.3

)%

Total stockholders' equity

 

 

76,035

 

 

 

76,050

 

 

 

75,897

 

 

 

(0.0

)%

 

 

0.2

%

Total liabilities and stockholders' equity

 

$

364,486

 

 

$

363,439

 

 

$

346,221

 

 

 

0.3

%

 

 

5.3

%

 

 

____________________________________________________________________________________________________________

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

4

 

 

CFSB Bancorp, Inc. and Subsidiary

Consolidated Statements of Net (Loss) Income (Unaudited)

(In thousands, except per share data)

 

 

For the Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2024

 

 

2024

 

 

2023

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

1,784

 

 

$

1,763

 

 

$

1,722

 

Interest and dividends on debt securities:

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,028

 

 

 

999

 

 

 

868

 

Tax-exempt

 

 

77

 

 

 

84

 

 

 

97

 

Interest on short-term investments and certificates of deposit

 

 

330

 

 

 

282

 

 

 

45

 

Total interest and dividend income

 

 

3,219

 

 

 

3,128

 

 

 

2,732

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,457

 

 

 

1,389

 

 

 

876

 

Borrowings

 

 

119

 

 

 

118

 

 

 

50

 

Total interest expense

 

 

1,576

 

 

 

1,507

 

 

 

926

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

1,643

 

 

 

1,621

 

 

 

1,806

 

Reversal of credit losses for securities held to maturity

 

 

(15

)

 

 

(29

)

 

 

(43

)

Reversal of credit losses for off-balance sheet exposures

 

 

(8

)

 

 

5

 

 

 

(13

)

Reversal of credit losses for loans

 

 

(48

)

 

 

(8

)

 

 

(110

)

Net interest income after reversal of credit losses

 

 

1,714

 

 

 

1,653

 

 

 

1,972

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

41

 

 

 

37

 

 

 

40

 

Income on bank-owned life insurance

 

 

69

 

 

 

66

 

 

 

66

 

Other income

 

 

60

 

 

 

63

 

 

 

54

 

Total non-interest income

 

 

170

 

 

 

166

 

 

 

160

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

1,096

 

 

 

1,030

 

 

 

1,144

 

Occupancy and equipment

 

 

251

 

 

 

225

 

 

 

254

 

Advertising

 

 

36

 

 

 

34

 

 

 

38

 

Data processing

 

 

94

 

 

 

82

 

 

 

89

 

Deposit insurance

 

 

34

 

 

 

34

 

 

 

33

 

Other general and administrative

 

 

360

 

 

 

360

 

 

 

358

 

Total non-interest expenses

 

 

1,871

 

 

 

1,765

 

 

 

1,916

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

13

 

 

 

54

 

 

 

216

 

Provision (benefit) for income taxes

 

 

19

 

 

 

(106

)

 

 

93

 

Net (loss) income

 

$

(6

)

 

$

160

 

 

$

123

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.00

 

 

$

0.03

 

 

$

0.02

 

Diluted

 

$

0.00

 

 

$

0.03

 

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

6,294,603

 

 

 

6,307,261

 

 

 

6,282,203

 

Diluted

 

 

6,294,603

 

 

 

6,307,261

 

 

 

6,282,203

 

 

 

 

____________________________________________________________________________________________________________

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

5

 

 

CFSB Bancorp, Inc. and Subsidiary

Average Balances and Yields, Fully Tax-Equivalent Basis (Unaudited)

(Dollars in thousands)

 

Average Balance and Yields

 

 

Three Months Ended

 

 

September 30, 2024

 

 

June 30, 2024

 

 

September 30, 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

$

171,488

 

 

$

1,784

 

 

 

4.16

%

 

$

172,191

 

 

$

1,763

 

 

 

4.10

%

 

$

176,668

 

 

$

1,722

 

 

 

3.90

%

Securities (1)

 

147,649

 

 

 

1,125

 

 

 

3.05

%

 

 

148,748

 

 

 

1,105

 

 

 

2.97

%

 

 

149,259

 

 

 

991

 

 

 

2.66

%

Cash and short-term investments

 

26,873

 

 

 

330

 

 

 

4.91

%

 

 

20,266

 

 

 

282

 

 

 

5.57

%

 

 

3,852

 

 

 

45

 

 

 

4.67

%

Total interest-earning assets

 

346,010

 

 

 

3,239

 

 

 

3.74

%

 

 

341,205

 

 

 

3,150

 

 

 

3.69

%

 

 

329,779

 

 

 

2,758

 

 

 

3.35

%

Non-interest-earning assets

 

17,170

 

 

 

 

 

 

 

 

 

17,059

 

 

 

 

 

 

 

 

 

16,655

 

 

 

 

 

 

 

Total assets

$

363,180

 

 

 

 

 

 

 

 

$

358,264

 

 

 

 

 

 

 

 

$

346,434

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

29,753

 

 

$

4

 

 

 

0.05

%

 

$

29,463

 

 

$

4

 

 

 

0.05

%

 

$

29,912

 

 

$

4

 

 

 

0.05

%

Savings deposits

 

54,004

 

 

 

14

 

 

 

0.10

%

 

 

55,173

 

 

 

14

 

 

 

0.10

%

 

 

62,446

 

 

 

16

 

 

 

0.10

%

Money market deposits

 

22,365

 

 

 

14

 

 

 

0.25

%

 

 

22,332

 

 

 

13

 

 

 

0.23

%

 

 

26,271

 

 

 

17

 

 

 

0.26

%

Certificates of deposit

 

133,142

 

 

 

1,425

 

 

 

4.28

%

 

 

129,340

 

 

 

1,358

 

 

 

4.20

%

 

 

111,812

 

 

 

839

 

 

 

3.00

%

Total interest-bearing deposits

 

239,264

 

 

 

1,457

 

 

 

2.44

%

 

 

236,308

 

 

 

1,389

 

 

 

2.35

%

 

 

230,441

 

 

 

876

 

 

 

1.52

%

FHLB advances

 

10,350

 

 

 

119

 

 

 

4.60

%

 

 

10,350

 

 

 

118

 

 

 

4.56

%

 

 

3,571

 

 

 

50

 

 

 

5.60

%

Total interest-bearing liabilities

 

249,614

 

 

 

1,576

 

 

 

2.53

%

 

 

246,658

 

 

 

1,507

 

 

 

2.44

%

 

 

234,012

 

 

 

926

 

 

 

1.58

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Non-interest-bearing demand deposits

 

31,748

 

 

 

 

 

 

 

 

 

29,790

 

 

 

 

 

 

 

 

 

30,971

 

 

 

 

 

 

 

  Other non-interest-bearing liabilities

 

5,809

 

 

 

 

 

 

 

 

 

6,011

 

 

 

 

 

 

 

 

 

5,740

 

 

 

 

 

 

 

Total liabilities

 

287,171

 

 

 

 

 

 

 

 

 

282,459

 

 

 

 

 

 

 

 

 

270,723

 

 

 

 

 

 

 

Total stockholders' equity

 

76,009

 

 

 

 

 

 

 

 

 

75,805

 

 

 

 

 

 

 

 

 

75,711

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

363,180

 

 

 

 

 

 

 

 

$

358,264

 

 

 

 

 

 

 

 

$

346,434

 

 

 

 

 

 

 

Net interest income

 

 

 

$

1,663

 

 

 

 

 

 

 

 

$

1,643

 

 

 

 

 

 

 

 

$

1,832

 

 

 

 

Net interest rate spread(2)

 

 

 

 

 

 

 

1.21

%

 

 

 

 

 

 

 

 

1.25

%

 

 

 

 

 

 

 

 

1.77

%

Net interest-earning assets(3)

$

96,396

 

 

 

 

 

 

 

 

$

94,547

 

 

 

 

 

 

 

 

$

95,767

 

 

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

1.92

%

 

 

 

 

 

 

 

 

1.93

%

 

 

 

 

 

 

 

 

2.22

%

Cost of deposits(5)

 

 

 

 

 

 

 

2.15

%

 

 

 

 

 

 

 

 

2.09

%

 

 

 

 

 

 

 

 

1.34

%

Cost of funds(6)

 

 

 

 

 

 

 

2.24

%

 

 

 

 

 

 

 

 

2.18

%

 

 

 

 

 

 

 

 

1.40

%

Ratio of interest-earning assets to interest-bearing liabilities

 

138.62

%

 

 

 

 

 

 

 

 

138.33

%

 

 

 

 

 

 

 

 

140.92

%

 

 

 

 

 

 

(1) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $20,000, $22,000, and $26,000 for the three months ended September 30, 2024, June 30, 2024, and September 30, 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 non-interest-bearing deposits.

(6) Cost of funds represents the total interest paid on liabilities, divided by total interest-bearing liabilities plus total non-interest-bearing deposits.

CFSB Bancorp, Inc. and Subsidiary

Reconciliation of Fully Tax-Equivalent Income

(Unaudited) (In thousands)

 

 

 

For the Three Months Ended

 

 

 

September 30, 2024

 

 

June 30, 2024

 

 

September 30, 2023

 

Securities interest income (no tax adjustment)

 

$

1,105

 

 

$

1,083

 

 

$

965

 

Tax-equivalent adjustment

 

 

20

 

 

 

22

 

 

 

26

 

Securities (tax-equivalent basis)

 

$

1,125

 

 

$

1,105

 

 

$

991

 

Net interest income (no tax adjustment)

 

$

1,643

 

 

$

1,621

 

 

$

1,806

 

Tax-equivalent adjustment

 

 

20

 

 

 

22

 

 

 

26

 

Net interest income (tax-equivalent adjustment)

 

$

1,663

 

 

$

1,643

 

 

$

1,832

 

 

____________________________________________________________________________________________________________

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

6