CFSB BANCORP, INC. ANNOUNCES FISCAL FIRST QUARTER 2024 FINANCIAL RESULTS
QUINCY, Mass., Oct. 25, 2023 /PRNewswire/ -- CFSB Bancorp, Inc. (the "Company") (NASDAQ Capital Market: CFSB), the holding company for Colonial Federal Savings Bank (the "Bank"), today announced net income of $123,000, or $0.02 per basic and diluted share, for the three months ended September 30, 2023 compared to net income of $105,000, or $0.02 per basic and diluted share, for the three months ended June 30, 2023 and net income of $645,000, or $0.10 per basic and diluted share for the three months ended September 30, 2022.
Michael E. McFarland, President and Chief Executive Officer, stated, "We continue to navigate the high interest rate environment by remaining disciplined with our pricing and expense management. We remain optimistic that the economy will avoid recession in the near term and we are positioned to benefit from a decline in interest rates."
First Quarter Operating Results
Net interest income, on a fully tax-equivalent basis decreased by $83,000, or 4.3%, to $1.8 million for the three months ended September 30, 2023 from $1.9 million for the three months ended June 30, 2023. This decrease was primarily due to a 41 basis point increase in the average rate paid on certificates of deposit and a 39 basis point increase in the average rate paid on FHLB advances, partially offset by a 9 basis point increase in the average yield earned on securities. The interest earned on loans increased $3,000, for the three months ended September 30, 2023 compared to the three months ended June 30, 2023. The interest earned on loans benefited from rising interest rates, partially offset by a $1.8 million decrease in the average balance of loans to $176.7 million during the three months ended September 30, 2023. The net interest margin decreased by 9 basis points to 2.22% for the three months ended September 30, 2023 from 2.31% for the three months ended June 30, 2023.
Net interest income, on a fully tax-equivalent basis decreased by $560,000, or 23.4%, to $1.8 million for the three months ended September 30, 2023, from $2.4 million for the three months ended September 30, 2022. The net interest margin decreased by 54 basis points to 2.22% for the three months ended September 30, 2023 from 2.76% for the three months ended September 30, 2022. The decline was primarily due to a 223 basis point increase in the average rate paid for certificates of deposit, partially offset by a $20.8 million decrease in the average balance of interest-bearing deposits and a 31 basis point increase in the average yield earned for interest-earning assets. The interest earned on loans increased $103,000, to $1.7 million for the three months ended September 30, 2023, from $1.6 million for the three months ended September 30, 2022. The interest earned on loans benefited from rising interest rates and a $30,000 increase in the average balance of loans during the three months ended September 30, 2023.
The Company recorded a reversal of credit losses of $166,000 for the three months ended September 30, 2023. The reversal for credit losses was recorded due to improved forecasted economic conditions. The Company did not record a provision for loan losses during the three months ended June 30, 2023 or September 30, 2022. The allowance for credit losses as a percentage of total loans was 0.94%, 0.98% and 0.99% at September 30, 2023, June 30, 2023 and September 30, 2022, respectively.
Non-interest income decreased $4,000, or 2.4%, to $160,000 for the quarter ended September 30, 2023 from $164,000 for the quarter ended June 30, 2023, due to a decrease of $7,000 in other income.
Non-interest income decreased $40,000, or 20.0%, to $160,000 for the three months ended September 30, 2023, from $200,000 for the three months ended September 30, 2022, principally due to a decrease of $45,000 in safe deposit box income.
Non-interest expenses decreased $17,000, or 0.9%, to $1.9 million for the quarter ended September 30, 2023 from $1.9 million for the quarter ended June 30, 2023. The decrease was due to a decrease in occupancy and equipment expense of $20,000, or 7.3%, primarily attributed to declines in service contract expenses.
Non-interest expenses increased $168,000, or 9.6%, to $1.9 million for the quarter ended September 30, 2023 from $1.7 million for the quarter ended September 30, 2022. The increase was principally due to an increase in salaries and employee benefits of $126,000, or 12.4%, attributed to an increase in headcount and stock-based compensation expense, due to increases in other general and administrative expenses of $25,000, or 7.5%, attributed to stock-based compensation for the board of directors, and due to increases in occupancy and equipment expenses of $11,000, or 4.5%, attributed to increases in service contract expenses.
Income tax expense was $93,000 for the three months ended September 30, 2023, compared to $19,000 for the three months ended June 30, 2023 and $170,000 for the three months ended September 30, 2022. The increase in income tax expense for the three months ended September 30, 2023, compared to the three months ended June 30, 2023 was due to increases in income before income taxes. The decrease in income tax expense for the three months ended September 30, 2023, compared to the three months ended September 30, 2022 was due to decreases in income before income taxes.
Balance Sheet
At September 30, 2023, total assets amounted to $346.2 million, compared to $349.0 million at June 30, 2023, a decrease of $2.8 million, or 0.8%, due to a $1.8 million decrease in net loans, a $743,000 decrease in cash and cash equivalents and a $365,000 decrease in securities held to maturity. The decrease in net loans was due to decreased loan demand in the higher interest rate environment and accelerated prepayment speeds during the quarter ended September 30, 2023. Deposits decreased by $2.7 million, or 1.0%, in the quarter, as the Bank experienced decreases of customer deposits with the absence of government stimulus and increases in inflation and competition. In addition, the Bank experienced mix-shift changes by depositors to higher-yielding term certificates due to the higher interest rate environment. Federal Home Loan Bank of Boston advances were $3.3 million at September 30, 2023 to add liquidity in light of the decreases in customer deposits.
Total stockholders' equity increased $8,000 to $75.9 million at September 30, 2023 compared to $75.9 million at June 30, 2023. This increase reflects net income of $123,000, earned ESOP compensation of $18,000, and stock-based award expense of $90,000, partially offset by the cumulative effect of the adoption of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), net of tax, of $223,000.
Total assets at September 30, 2023 decreased $14.7 million, or 4.1%, from $360.9 million at September 30, 2022. Contributing to the decrease in assets was a decrease of $9.6 million in cash and cash equivalents to $6.1 million at September 30, 2023 from $15.7 million at September 30, 2022, a decline of $4.6 million in securities held to maturity and a decline of $1.2 million in net loans. Total deposits decreased by $19.4 million, or 6.9%, to $260.7 million at September 30, 2023 from $280.1 million at September 30, 2022, principally due to decreases in customer deposits with the absence of government stimulus, increases in inflation and competition, in addition to mix-shift changes by depositors to higher-yielding term certificates in the higher interest rate environment. Federal Home Loan Bank of Boston advances were $3.3 million at September 30, 2023 to add liquidity in light of the decreases in customer deposits.
Total stockholders' equity was $75.9 million at September 30, 2023 compared to $74.9 million at September 30, 2022. The increase of $980,000 was due to net income earned during the previous twelve months of $924,000, earned ESOP compensation of $82,000 and stock-based award expense of $199,000, partially offset by the cumulative effect of the adoption of ASU 2016-13, net of tax, of $223,000.
On July 1, 2023, the Company adopted ASU 2016-13, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss methodology ("CECL"). 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, ASU 326 made changes to the accounting of 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 |
$ |
- |
$ |
(276) |
$ |
(276) |
||||||
Allowance for credit losses on loans |
(1,747) |
(1,759) |
(12) |
|||||||||
Deferred tax asset on allowance for |
466 |
378 |
(88) |
|||||||||
Liabilities |
||||||||||||
Allowance for credit losses on off- |
$ |
- |
$ |
23 |
$ |
23 |
||||||
Shareholders' Equity |
||||||||||||
Retained earnings |
$ |
50,416 |
$ |
50,193 |
$ |
(223) |
||||||
About CFSB Bancorp, Inc.
CFSB Bancorp, Inc. is a federal corporation organized as the 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 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) |
||||||||||||||||||||
% Change |
||||||||||||||||||||
September 30, |
June 30, |
September 30, |
Sep 2023 vs. |
Sep 2023 vs. |
||||||||||||||||
2023 |
2023 |
2022 |
Jun 2023 |
Sep 2022 |
||||||||||||||||
Assets: |
||||||||||||||||||||
Cash and due from banks |
$ |
1,394 |
$ |
1,486 |
$ |
1,481 |
(6.2) |
% |
(5.9) |
% |
||||||||||
Short-term investments |
4,724 |
5,375 |
14,260 |
(12.1) |
% |
(66.9) |
% |
|||||||||||||
Total cash and cash equivalents |
6,118 |
6,861 |
15,741 |
(10.8) |
% |
(61.1) |
% |
|||||||||||||
Securities available for sale, at fair value |
139 |
146 |
183 |
(4.8) |
% |
(24.0) |
% |
|||||||||||||
Securities held to maturity, at amortized cost, net of |
147,537 |
147,902 |
152,141 |
(0.2) |
% |
(3.0) |
% |
|||||||||||||
Loans: |
||||||||||||||||||||
1-4 family |
137,743 |
140,109 |
143,417 |
(1.7) |
% |
(4.0) |
% |
|||||||||||||
Multifamily |
12,883 |
12,638 |
13,055 |
1.9 |
% |
(1.3) |
% |
|||||||||||||
Second mortgages and home equity lines of credit |
3,129 |
2,699 |
2,514 |
15.9 |
% |
24.5 |
% |
|||||||||||||
Construction |
- |
- |
415 |
- |
% |
(100.0) |
% |
|||||||||||||
Commercial |
20,110 |
20,323 |
15,639 |
(1.0) |
% |
28.6 |
% |
|||||||||||||
Total mortgage loans on real estate |
173,865 |
175,769 |
175,040 |
(1.1) |
% |
(0.7) |
% |
|||||||||||||
Consumer |
65 |
49 |
71 |
32.7 |
% |
(8.5) |
% |
|||||||||||||
Home improvement |
2,180 |
2,191 |
2,231 |
(0.5) |
% |
(2.3) |
% |
|||||||||||||
Total loans |
176,110 |
178,009 |
177,342 |
(1.1) |
% |
(0.7) |
% |
|||||||||||||
Allowance for credit losses |
(1,649) |
(1,747) |
(1,747) |
(5.6) |
% |
(5.6) |
% |
|||||||||||||
Net deferred loan costs and fees, and purchase premiums |
(381) |
(351) |
(350) |
8.5 |
% |
8.9 |
% |
|||||||||||||
Loans, net |
174,080 |
175,911 |
175,245 |
(1.0) |
% |
(0.7) |
% |
|||||||||||||
Federal Home Loan Bank of Boston stock, at cost |
405 |
381 |
191 |
6.3 |
% |
112.0 |
% |
|||||||||||||
Premises and equipment, net |
3,354 |
3,413 |
3,310 |
(1.7) |
% |
1.3 |
% |
|||||||||||||
Accrued interest receivable |
1,395 |
1,363 |
1,306 |
2.3 |
% |
6.8 |
% |
|||||||||||||
Bank-owned life insurance |
10,468 |
10,402 |
10,208 |
0.6 |
% |
2.5 |
% |
|||||||||||||
Deferred tax asset |
1,132 |
1,079 |
1,139 |
4.9 |
% |
(0.6) |
% |
|||||||||||||
Operating lease right of use asset |
930 |
953 |
1,021 |
(2.4) |
% |
(8.9) |
% |
|||||||||||||
Other assets |
663 |
596 |
457 |
11.2 |
% |
45.1 |
% |
|||||||||||||
Total assets |
$ |
346,221 |
$ |
349,007 |
$ |
360,942 |
(0.8) |
% |
(4.1) |
% |
||||||||||
Liabilities and Stockholders' Equity: |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Non-interest bearing NOW and demand |
$ |
30,918 |
$ |
32,760 |
$ |
34,148 |
(5.6) |
% |
(9.5) |
% |
||||||||||
Interest bearing NOW and demand |
30,902 |
28,778 |
32,791 |
7.4 |
% |
(5.8) |
% |
|||||||||||||
Regular and other |
60,389 |
64,184 |
74,703 |
(5.9) |
% |
(19.2) |
% |
|||||||||||||
Money market accounts |
24,877 |
26,995 |
43,349 |
(7.8) |
% |
(42.6) |
% |
|||||||||||||
Term certificates |
113,587 |
110,659 |
95,061 |
2.6 |
% |
19.5 |
% |
|||||||||||||
Total deposits |
260,673 |
263,376 |
280,052 |
(1.0) |
% |
(6.9) |
% |
|||||||||||||
Federal Home Loan Bank of Boston advances |
3,250 |
3,675 |
- |
(11.6) |
% |
- |
% |
|||||||||||||
Mortgagors' escrow accounts |
1,626 |
1,596 |
1,618 |
1.9 |
% |
0.5 |
% |
|||||||||||||
Operating lease liability |
941 |
962 |
1,023 |
(2.2) |
% |
(8.0) |
% |
|||||||||||||
Accrued expenses and other liabilities |
3,834 |
3,509 |
3,332 |
9.3 |
% |
15.1 |
% |
|||||||||||||
Total liabilities |
270,324 |
273,118 |
286,025 |
(1.0) |
% |
(5.5) |
% |
|||||||||||||
Stockholders' Equity: |
||||||||||||||||||||
Common stock |
65 |
65 |
65 |
0.0 |
% |
0.0 |
% |
|||||||||||||
Additional paid-in capital |
27,896 |
27,814 |
27,718 |
0.3 |
% |
0.6 |
% |
|||||||||||||
Retained earnings |
50,316 |
50,416 |
49,615 |
(0.2) |
% |
1.4 |
% |
|||||||||||||
Accumulated other comprehensive loss, net of tax |
(3) |
(3) |
(1) |
0.0 |
% |
200.0 |
% |
|||||||||||||
Unearned compensation - ESOP |
(2,377) |
(2,403) |
(2,480) |
(1.1) |
% |
(4.2) |
% |
|||||||||||||
Total stockholders' equity |
75,897 |
75,889 |
74,917 |
0.0 |
% |
1.3 |
% |
|||||||||||||
Total liabilities and stockholders' equity |
$ |
346,221 |
$ |
349,007 |
$ |
360,942 |
(0.8) |
% |
(4.1) |
% |
||||||||||
CFSB Bancorp, Inc. and Subsidiary Consolidated Statements of Net Income (Unaudited) (In thousands, except per share data) |
||||||||||||
For the Three Months Ended |
||||||||||||
September 30, |
June 30, |
September 30, |
||||||||||
2023 |
2023 |
2022 |
||||||||||
Interest and dividend income: |
||||||||||||
Interest and fees on loans |
$ |
1,722 |
$ |
1,719 |
$ |
1,619 |
||||||
Interest and dividends on debt securities: |
||||||||||||
Taxable |
868 |
845 |
751 |
|||||||||
Tax-exempt |
97 |
99 |
108 |
|||||||||
Interest on short-term investments and certificates of deposit |
45 |
38 |
127 |
|||||||||
Total interest and dividend income |
2,732 |
2,701 |
2,605 |
|||||||||
Interest expense: |
||||||||||||
Deposits |
876 |
757 |
242 |
|||||||||
Borrowings |
50 |
51 |
- |
|||||||||
Total interest expense |
926 |
808 |
242 |
|||||||||
Net interest income |
1,806 |
1,893 |
2,363 |
|||||||||
Provision for (reversal of) credit losses |
(166) |
- |
- |
|||||||||
Net interest income after provision for (reversal of) credit losses |
1,972 |
1,893 |
2,363 |
|||||||||
Non-interest income: |
||||||||||||
Customer service fees |
40 |
36 |
37 |
|||||||||
Income on bank-owned life insurance |
66 |
67 |
64 |
|||||||||
Other income |
54 |
61 |
99 |
|||||||||
Total non-interest income |
160 |
164 |
200 |
|||||||||
Non-interest expenses: |
||||||||||||
Salaries and employee benefits |
1,144 |
1,146 |
1,018 |
|||||||||
Occupancy and equipment |
254 |
274 |
243 |
|||||||||
Advertising |
38 |
37 |
39 |
|||||||||
Data processing |
89 |
82 |
94 |
|||||||||
Deposit insurance |
33 |
43 |
21 |
|||||||||
Other general and administrative |
358 |
351 |
333 |
|||||||||
Total non-interest expenses |
1,916 |
1,933 |
1,748 |
|||||||||
Income before income taxes |
216 |
124 |
815 |
|||||||||
Provision for income taxes |
93 |
19 |
170 |
|||||||||
Net income |
$ |
123 |
$ |
105 |
$ |
645 |
||||||
Net income per share: |
||||||||||||
Basic |
$ |
0.02 |
$ |
0.02 |
$ |
0.10 |
||||||
Diluted |
$ |
0.02 |
$ |
0.02 |
$ |
0.10 |
||||||
Weighted average shares outstanding: |
||||||||||||
Basic |
6,282,203 |
6,279,656 |
6,271,977 |
|||||||||
Diluted |
6,282,203 |
6,279,790 |
6,271,977 |
|||||||||
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, 2023 |
June 30, 2023 |
September 30, 2022 |
|||||||||||||||||||||||||||||||||
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 |
$ |
176,668 |
$ |
1,722 |
3.90 |
% |
$ |
178,474 |
$ |
1,719 |
3.85 |
% |
$ |
176,638 |
$ |
1,619 |
3.67 |
% |
|||||||||||||||||
Securities (1) |
149,259 |
991 |
2.66 |
% |
150,383 |
968 |
2.57 |
% |
148,774 |
888 |
2.39 |
% |
|||||||||||||||||||||||
Cash and short-term investments |
3,852 |
45 |
4.67 |
% |
3,331 |
38 |
4.56 |
% |
21,717 |
127 |
2.34 |
% |
|||||||||||||||||||||||
Total interest-earning assets |
329,779 |
2,758 |
3.35 |
% |
332,188 |
2,725 |
3.28 |
% |
347,129 |
2,634 |
3.04 |
% |
|||||||||||||||||||||||
Noninterest-earning assets |
16,655 |
17,118 |
15,933 |
||||||||||||||||||||||||||||||||
Total assets |
$ |
346,434 |
$ |
349,306 |
$ |
363,062 |
|||||||||||||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits |
$ |
29,912 |
$ |
4 |
0.05 |
% |
$ |
30,051 |
$ |
4 |
0.05 |
% |
$ |
33,133 |
$ |
4 |
0.05 |
% |
|||||||||||||||||
Savings deposits |
62,446 |
16 |
0.10 |
% |
64,996 |
16 |
0.10 |
% |
75,444 |
19 |
0.10 |
% |
|||||||||||||||||||||||
Money market deposits |
26,271 |
17 |
0.26 |
% |
28,890 |
19 |
0.26 |
% |
45,493 |
31 |
0.27 |
% |
|||||||||||||||||||||||
Certificates of deposit |
111,812 |
839 |
3.00 |
% |
111,041 |
718 |
2.59 |
% |
97,153 |
188 |
0.77 |
% |
|||||||||||||||||||||||
Total interest-bearing deposits |
230,441 |
876 |
1.52 |
% |
234,978 |
757 |
1.29 |
% |
251,223 |
242 |
0.39 |
% |
|||||||||||||||||||||||
FHLB advances |
3,571 |
50 |
5.60 |
% |
3,916 |
51 |
5.21 |
% |
- |
- |
0.00 |
% |
|||||||||||||||||||||||
Total interest-bearing liabilities |
234,012 |
926 |
1.58 |
% |
238,894 |
808 |
1.35 |
% |
251,223 |
242 |
0.39 |
% |
|||||||||||||||||||||||
Noninterest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits |
30,971 |
28,881 |
32,522 |
||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities |
5,740 |
5,726 |
3,195 |
||||||||||||||||||||||||||||||||
Total liabilities |
270,723 |
273,501 |
286,940 |
||||||||||||||||||||||||||||||||
Total stockholders' equity |
75,711 |
75,805 |
76,122 |
||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity |
$ |
346,434 |
$ |
349,306 |
$ |
363,062 |
|||||||||||||||||||||||||||||
Net interest income |
$ |
1,832 |
$ |
1,917 |
$ |
2,392 |
|||||||||||||||||||||||||||||
Net interest rate spread(2) |
1.77 |
% |
1.93 |
% |
2.65 |
% |
|||||||||||||||||||||||||||||
Net interest-earning assets(3) |
$ |
95,767 |
$ |
93,294 |
$ |
95,906 |
|||||||||||||||||||||||||||||
Net interest margin(4) |
2.22 |
% |
2.31 |
% |
2.76 |
% |
|||||||||||||||||||||||||||||
Cost of deposits(5) |
1.34 |
% |
1.15 |
% |
0.34 |
% |
|||||||||||||||||||||||||||||
Cost of funds(6) |
1.40 |
% |
1.21 |
% |
0.34 |
% |
|||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities |
140.92 |
% |
139.05 |
% |
138.18 |
% |
|||||||||||||||||||||||||||||
(1) |
Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $24,000, $22,000, and $28,000 for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, 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 |
||||||||||||
September 30, |
June 30, |
September 30, |
||||||||||
2023 |
2023 |
2022 |
||||||||||
Securities interest income (no tax adjustment) |
$ |
965 |
$ |
944 |
$ |
859 |
||||||
Tax-equivalent adjustment |
26 |
22 |
29 |
|||||||||
Securities (tax-equivalent basis) |
$ |
991 |
$ |
966 |
$ |
888 |
||||||
Net interest income (no tax adjustment) |
$ |
1,806 |
$ |
1,893 |
$ |
2,363 |
||||||
Tax-equivalent adjustment |
26 |
22 |
29 |
|||||||||
Net interest income (tax-equivalent adjustment) |
$ |
1,832 |
$ |
1,915 |
$ |
2,392 |
||||||
CFSB Bancorp, Inc. and Subsidiary |
At or for the Three Months Ended |
|||||||||||
Selected Financial Highlights (Unaudited) |
September 30, |
June 30, |
September 30, |
|||||||||
(In thousands, except share and per share amounts) |
2023 |
2023 |
2022 |
|||||||||
Performance Ratios |
||||||||||||
Return on average assets (GAAP) (1, 4) |
0.14 |
% |
0.12 |
% |
0.71 |
% |
||||||
Return on average equity ("ROAE") (GAAP) (1, 5) |
0.65 |
% |
0.55 |
% |
3.39 |
% |
||||||
Noninterest expense to average assets (GAAP) (1) |
2.21 |
% |
2.21 |
% |
1.93 |
% |
||||||
Total loans to total deposits |
67.56 |
% |
67.59 |
% |
63.32 |
% |
||||||
Total loans to total assets |
50.87 |
% |
51.00 |
% |
49.13 |
% |
||||||
Efficiency ratio (GAAP) (6) |
97.46 |
% |
93.97 |
% |
68.20 |
% |
||||||
Capital Ratios |
||||||||||||
Total capital to risk-weighted assets |
33.28 |
% |
32.88 |
% |
34.28 |
% |
||||||
Common equity tier 1 capital to risk-weighted assets |
32.32 |
% |
32.00 |
% |
33.37 |
% |
||||||
Tier 1 capital to risk-weighted assets |
32.32 |
% |
32.00 |
% |
33.37 |
% |
||||||
Tier 1 capital to average assets (2) |
18.35 |
% |
18.18 |
% |
17.69 |
% |
||||||
Asset Quality Ratios |
||||||||||||
Allowance for credit losses on loans as a percentage of total loans (3) |
0.94 |
% |
0.98 |
% |
0.99 |
% |
||||||
Allowance for credit losses on loans as a percentage of non-performing loans |
NM |
NM |
NM |
|||||||||
Net (charge-offs) recoveries to average outstanding loans |
- |
% |
- |
% |
- |
% |
||||||
Non-performing loans as a percentage of total loans |
- |
% |
- |
% |
- |
% |
||||||
Non-performing loans as a percentage of total assets |
- |
% |
- |
% |
- |
% |
||||||
Total non-performing loans as a percentage of total assets |
- |
% |
- |
% |
- |
% |
||||||
Informational Items |
||||||||||||
Fair value of held to maturity securities |
$ |
128,959 |
$ |
132,273 |
$ |
133,775 |
||||||
Book value per share (7) |
$ |
11.44 |
$ |
11.44 |
$ |
11.49 |
||||||
Outstanding common shares |
6,632,642 |
6,632,642 |
6,521,642 |
|||||||||
(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. |
SOURCE CFSB Bancorp, Inc.
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