CFSB BANCORP, INC. ANNOUNCES FISCAL FOURTH QUARTER 2023 FINANCIAL RESULTS
QUINCY, Mass., July 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 $105,000, or $0.02 per basic and diluted share, for the three months ended June 30, 2023 compared to net income of $355,000, or $0.06 per basic and diluted share, for the three months ended March 31, 2023 and net income of $564,000, or $0.09 per basic and diluted share for the three months ended June 30, 2022. Net income on a non-GAAP basis, excluding the gain on sale of securities available for sale, was $558,000, or $0.09 per basic and diluted share for the three months ended June 30, 2022. Please see the tables attached hereto for a reconciliation of these and other non-GAAP financial measures.
For the year ended June 30, 2023, net income was $1.4 million, or $0.23 per basic and diluted share, compared to net income of $442,000, or $0.08 per basic and diluted share, for the year ended June 30, 2022. Net income on a non-GAAP basis, excluding the contribution to the charitable foundation established in connection with the Bank's mutual holding company reorganization and gain on the sale of securities, was $1.5 million, or $0.25 per basic and diluted share, for the year ended June 30, 2022. Please see the tables attached hereto for a reconciliation of these and other non-GAAP financial measures.
Michael E. McFarland, President and Chief Executive Officer, stated, "We continued to experience significant headwinds from the higher interest rate environment and the corresponding decline in loan demand. Looking ahead, we are cautiously optimistic that the worst impacts of inflation have subsided and we are encouraged by a resilient residential real estate market."
Fourth Quarter Operating Results
Net interest income, on a fully tax-equivalent basis decreased by $260,000, or 11.9%, to $1.9 million for the three months ended June 30, 2023 from $2.2 million for the three months ended March 31, 2023. This decrease was primarily due to a 75 basis point increase in the average rate paid for certificates of deposit, partially offset by a $6.3 million decrease in the average balance of interest-bearing deposits and a five basis point increase in the average yield earned for interest-earning assets. The interest earned on loans increased $19,000, for the three months ended June 30, 2023 compared to the three months ended March 31, 2023. The interest earned on loans benefited from rising interest rates, partially offset by a $978,000 decrease in the average balance of loans to $178.5 million during the three months ended June 30, 2023. The net interest margin decreased by 28 basis points to 2.31% for the three months ended June 30, 2023 from 2.59% for the three months ended March 31, 2023.
Net interest income, on a fully tax-equivalent basis decreased by $270,000, or 12.3%, to $1.9 million for the three months ended June 30, 2023, from $2.2 million for the three months ended June 30, 2022. The net interest margin decreased by 20 basis points to 2.31% for the three months ended June 30, 2023 from 2.51% for the three months ended June 30, 2022. The decline was primarily due to a 187 basis point increase in the average rate paid for certificates of deposit, partially offset by an $8.6 million decrease in the average balance of interest-bearing deposits and a 50 basis point increase in the average yield earned for interest-earning assets. The interest earned on loans increased $126,000, to $1.7 million for the three months ended June 30, 2023, from $1.6 million for the three months ended June 30, 2022. The interest earned on loans benefited from rising interest rates and a $4.6 million increase in the average balance of loans during the three months ended June 30, 2023.
The Company did not record a provision for loan losses for the three months ended June 30, 2023, March 31, 2023 or June 30, 2022. The allowance for loan losses as a percentage of total loans was 0.98%, 0.98% and 1.00% at June 30, 2023, March 31, 2023 and June 30, 2022, respectively.
Non-interest income increased $16,000, or 10.8%, to $164,000 for the quarter ended June 30, 2023 from $148,000 for the quarter ended March 31, 2023, due to an increase of $14,000 in other income.
Non-interest income decreased $2,000, or 1.2%, to $164,000 for the three months ended June 30, 2023, from $166,000 for the three months ended June 30, 2022, principally due to a decrease of $9,000 in income on bank-owned life insurance.
Non-interest expenses increased $32,000, or 1.7%, to $1.9 million for the quarter ended June 30, 2023 from $1.9 million for the quarter ended March 31, 2023. The increase was due to an increase in salaries and employee benefits expense of $43,000, or 3.9%, primarily attributed to stock-based compensation expense. In addition, FDIC insurance expense increased $23,000 from the prior quarter due to increases to insurance premiums. Partially offsetting the increase in non-interest expenses was a $49,000 decrease in other general and administrative expenses, primarily related to declines in printing expenses for tax forms and expenses related to the annual meeting expense held in the prior quarter.
Non-interest expenses increased $184,000, or 10.5%, to $1.9 million for the quarter ended June 30, 2023 from $1.7 million for the quarter ended June 30, 2022. The increase was principally due to an increase in salaries and employee benefits of $110,000, or 10.6%, attributed to an increase in headcount and stock-based compensation expense and due to increases in occupancy and equipment expenses of $47,000, or 20.7%, attributed to increases in service contracts.
Income tax expense was $19,000 for the three months ended June 30, 2023, compared to $47,000 for the three months ended March 31, 2023 and $12,000 for the three months ended June 30, 2022. The decrease in income tax expense for the three months ended June 30, 2023, compared to the three months ended March 31, 2023 was due to decreases in income before income taxes. The increase in the effective tax rate for the three months ended June 30, 2023, compared to the three months ended June 30, 2022 was due to the impact of the charitable foundation contribution made during the prior year.
Annual Operating Results
Net interest income increased on a fully tax-equivalent basis by $534,000, or 6.4%, to $8.9 million for the year ended June 30, 2023 from $8.3 million for the year ended June 30, 2022. Interest and dividend income increased $1.4 million, or 15.4%, to $10.8 million for the year ended June 30, 2023, from $9.3 million for the year ended June 30, 2022 due to the increase in interest-earning assets of $6.6 million from the prior year due to an increase in the average balance of securities and loans, and due to higher average yields earned on securities and cash and short-term investments. An increase in the average balance of loans of $7.1 million, or 4.1%, contributed to a $193,000 increase in loan income, partially offset by a four basis point decline in the average yield earned. An increase in the average balance of securities of $27.5 million, or 22.4%, and a 27 basis point increase in the average yield earned on securities contributed to a $1.0 million increase in securities income. Partially offsetting the increase in interest and dividend income was a $906,000 increase in interest expense. The increase was primarily due to an increase in the interest paid on certificates of deposit of $880,000 from the prior year due to an 88 basis point increase in the cost of such deposits, partially offset by a $4.1 million decrease in the average balance of certificates of deposit. The net interest margin improved 11 basis points for the year ended June 30, 2023, to 2.61%, from 2.50% in the prior year.
The Company did not recognize a provision for loan losses for the year ended June 30, 2023, compared to a provision for loan losses for the year ended June 30, 2022 of $26,000.
Non-interest income decreased $31,000, or 4.5%, to $664,000 for the year ended June 30, 2023 from $695,000 in the prior year, principally due to a $56,000 gain on sale of securities available for sale during the year ended June 30, 2022. There were no sales of securities during the year ended June 30, 2023. Excluding the gain on sale of securities available for sale, which management believes was a non-recurring operating activity, non-interest income would have increased $25,000, or 3.9% from the prior year, due to increases in customer service fees.
Non-interest expenses decreased $814,000, or 9.6%, to $7.7 million for the year ended June 30, 2023 from $8.5 million for the year ended June 30, 2022. A $1.6 million charitable foundation contribution made during the year ended June 30, 2022 was the primary reason for the decline in non-interest expense from the prior year. Excluding this item, which management considers to be a non-recurring item, non-interest expense would have increased $740,000, or 10.7%, for the year ended June 30, 2023. Salaries and benefits increased $420,000, or 10.3%, to $4.5 million, due to annual increases to salaries and health insurance of employees, an increase in headcount and the addition of stock-based compensation and ESOP expense in the current year. Occupancy and equipment expense increased $145,000, or 16.4%, to $1.0 million for the year ended June 30, 2023 from $883,000 for the year ended June 30, 2022, due to the renewal of a branch lease in the current fiscal year and for increases to service maintenance contracts. Other general and administrative expense increased $119,000, or 8.7% from the prior year due to increases in professional fees.
Income tax expense was $301,000 for the year ended June 30, 2023 compared to an income tax benefit of $52,000 for the year ended June 30, 2022. The income tax benefit during the year ended June 30, 2022 was primarily due to the charitable foundation established in connection with the Bank's mutual holding company reorganization.
Balance Sheet
At June 30, 2023, total assets amounted to $349.0 million, compared to $351.7 million at March 31, 2023, a decrease of $2.7 million, or 0.8%, as a $3.1 million decrease in securities held to maturity and a $1.0 million decrease in net loans were partially offset by a $1.5 million increase in cash and cash equivalents. The decrease in net loans was due to decreased loan demand in the higher interest rate environment. Deposits decreased by $6.6 million, or 2.5%, in the quarter, as the Bank is experiencing decreases of 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 due to the higher interest rate environment. Federal Home Loan Bank of Boston advances were $3.7 million at June 30, 2023 to add liquidity in light of the decreases in customer deposits.
Total stockholders' equity was $75.9 million at June 30, 2023 compared to $75.7 million at March 31, 2023. The increase of $215,000 reflects net income of $105,000, earned ESOP compensation of $19,000, and stock-based award expense of $90,000.
Total assets at June 30, 2023 decreased $17.2 million, or 4.7%, from $366.2 million at June 30, 2022. Contributing to the decrease in assets was a decrease of $24.8 million in cash and cash equivalents to $6.9 million at June 30, 2023 from $31.7 million at June 30, 2022, partially offset by a $2.7 million increase in securities held to maturity and $3.3 million in loan growth. Commercial real estate loans increased by $5.6 million, or 37.7%, as we focused on diversifying our loan mix. Total deposits decreased by $23.7 million, or 8.3%, to $263.4 million at June 30, 2023 from $287.1 million at June 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 $3.7 million at June 30, 2023 to add liquidity in light of the decreases in customer deposits.
Total stockholders' equity was $75.9 million at June 30, 2023 compared to $74.3 million at June 30, 2022. The increase of $1.6 million was due to net income earned during the previous year of $1.4 million, earned ESOP compensation of $86,000 and stock-based award expense of $109,000.
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 the impact of the COVID-19 pandemic or any other pandemic on our operations and financial results and those of our customers, .
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.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as return on average assets, return on average equity, the efficiency ratio, profit percentage, tangible book value per share, non-interest income to total income and, where applicable, as adjusted for non-recurring items. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of on-going business activities, and to enhance comparability with peers across the financial services sector.
CFSB Bancorp, Inc. and Subsidiary |
||||||||||||||||||||
% Change |
||||||||||||||||||||
June 30, |
March 31, |
June 30, |
Jun 2023 vs. |
Jun 2023 vs. |
||||||||||||||||
2023 |
2023 |
2022 |
Mar 2023 |
Jun 2022 |
||||||||||||||||
Assets: |
||||||||||||||||||||
Cash and due from banks |
$ |
1,486 |
$ |
1,518 |
$ |
1,609 |
(2.1) |
% |
(7.6) |
% |
||||||||||
Short-term investments |
5,375 |
3,824 |
30,058 |
40.6 |
% |
(82.1) |
% |
|||||||||||||
Total cash and cash equivalents |
6,861 |
5,342 |
31,667 |
28.4 |
% |
(78.3) |
% |
|||||||||||||
Securities available for sale, at fair value |
146 |
158 |
199 |
(7.6) |
% |
(26.6) |
% |
|||||||||||||
Securities held to maturity, at amortized cost |
147,902 |
150,981 |
145,239 |
(2.0) |
% |
1.8 |
% |
|||||||||||||
Loans: |
||||||||||||||||||||
1-4 family |
140,109 |
140,164 |
141,073 |
(0.0) |
% |
(0.7) |
% |
|||||||||||||
Multifamily |
12,638 |
12,638 |
14,310 |
0.0 |
% |
(11.7) |
% |
|||||||||||||
Second mortgages and home equity lines of credit |
2,699 |
2,687 |
1,970 |
0.4 |
% |
37.0 |
% |
|||||||||||||
Construction |
- |
807 |
375 |
(100.0) |
% |
(100.0) |
% |
|||||||||||||
Commercial |
20,323 |
20,576 |
14,761 |
(1.2) |
% |
37.7 |
% |
|||||||||||||
Total mortgage loans on real estate |
175,769 |
176,872 |
172,489 |
(0.6) |
% |
1.9 |
% |
|||||||||||||
Consumer |
49 |
54 |
84 |
(9.3) |
% |
(41.7) |
% |
|||||||||||||
Home improvement |
2,191 |
2,130 |
2,116 |
2.9 |
% |
3.5 |
% |
|||||||||||||
Total loans |
178,009 |
179,056 |
174,689 |
(0.6) |
% |
1.9 |
% |
|||||||||||||
Allowance for loan losses |
(1,747) |
(1,747) |
(1,747) |
0.0 |
% |
0.0 |
% |
|||||||||||||
Net deferred loan costs and fees, and purchase premiums |
(351) |
(366) |
(349) |
(4.1) |
% |
0.6 |
% |
|||||||||||||
Loans, net |
175,911 |
176,943 |
172,593 |
(0.6) |
% |
1.9 |
% |
|||||||||||||
Federal Home Loan Bank of Boston stock, at cost |
381 |
241 |
191 |
58.1 |
% |
99.5 |
% |
|||||||||||||
Premises and equipment, net |
3,413 |
3,411 |
3,334 |
0.1 |
% |
2.4 |
% |
|||||||||||||
Accrued interest receivable |
1,363 |
1,356 |
1,265 |
0.5 |
% |
7.7 |
% |
|||||||||||||
Bank-owned life insurance |
10,402 |
10,335 |
10,144 |
0.6 |
% |
2.5 |
% |
|||||||||||||
Deferred tax asset |
1,079 |
1,003 |
1,079 |
7.6 |
% |
0.0 |
% |
|||||||||||||
Operating lease right of use asset |
953 |
976 |
- |
(2.4) |
% |
- |
% |
|||||||||||||
Other assets |
596 |
930 |
472 |
(35.9) |
% |
26.3 |
% |
|||||||||||||
Total assets |
$ |
349,007 |
$ |
351,676 |
$ |
366,183 |
(0.8) |
% |
(4.7) |
% |
||||||||||
Liabilities and Stockholders' Equity: |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Non-interest bearing NOW and demand |
$ |
32,760 |
$ |
30,054 |
$ |
31,168 |
9.0 |
% |
5.1 |
% |
||||||||||
Interest bearing NOW and demand |
28,778 |
30,660 |
32,995 |
(6.1) |
% |
(12.8) |
% |
|||||||||||||
Regular and other |
64,184 |
66,849 |
75,774 |
(4.0) |
% |
(15.3) |
% |
|||||||||||||
Money market accounts |
26,995 |
31,326 |
47,010 |
(13.8) |
% |
(42.6) |
% |
|||||||||||||
Term certificates |
110,659 |
111,117 |
100,128 |
(0.4) |
% |
10.5 |
% |
|||||||||||||
Total deposits |
263,376 |
270,006 |
287,075 |
(2.5) |
% |
(8.3) |
% |
|||||||||||||
Federal Home Loan Bank of Boston advances |
3,675 |
- |
- |
- |
% |
- |
% |
|||||||||||||
Mortgagors' escrow accounts |
1,596 |
1,566 |
1,555 |
1.9 |
% |
2.6 |
% |
|||||||||||||
Operating lease liability |
962 |
983 |
- |
(2.1) |
% |
- |
% |
|||||||||||||
Accrued expenses and other liabilities |
3,509 |
3,447 |
3,303 |
1.8 |
% |
6.2 |
% |
|||||||||||||
Total liabilities |
273,118 |
276,002 |
291,933 |
(1.0) |
% |
(6.4) |
% |
|||||||||||||
Stockholders' Equity: |
||||||||||||||||||||
Common stock |
65 |
65 |
65 |
0.0 |
% |
0.0 |
% |
|||||||||||||
Additional paid-in capital |
27,814 |
27,729 |
27,720 |
0.3 |
% |
0.3 |
% |
|||||||||||||
Retained earnings |
50,416 |
50,311 |
48,970 |
0.2 |
% |
3.0 |
% |
|||||||||||||
Accumulated other comprehensive (loss) income, net of |
(3) |
(2) |
- |
50.0 |
% |
- |
% |
|||||||||||||
Unearned compensation - ESOP |
(2,403) |
(2,429) |
(2,505) |
(1.1) |
% |
(4.1) |
% |
|||||||||||||
Total stockholders' equity |
75,889 |
75,674 |
74,250 |
0.3 |
% |
2.2 |
% |
|||||||||||||
Total liabilities and stockholders' equity |
$ |
349,007 |
$ |
351,676 |
$ |
366,183 |
(0.8) |
% |
(4.7) |
% |
||||||||||
CFSB Bancorp, Inc. and Subsidiary |
||||||||||||||||||||
For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
Interest and dividend income: |
||||||||||||||||||||
Interest and fees on loans |
$ |
1,719 |
$ |
1,700 |
$ |
1,593 |
$ |
6,695 |
$ |
6,502 |
||||||||||
Interest and dividends on debt securities: |
||||||||||||||||||||
Taxable |
845 |
837 |
646 |
3,228 |
2,153 |
|||||||||||||||
Tax-exempt |
99 |
101 |
106 |
414 |
466 |
|||||||||||||||
Interest on short-term investments and certificates of |
38 |
53 |
53 |
341 |
103 |
|||||||||||||||
Total interest and dividend income |
2,701 |
2,691 |
2,398 |
10,678 |
9,224 |
|||||||||||||||
Interest expense: |
||||||||||||||||||||
Deposits |
757 |
533 |
238 |
1,872 |
1,012 |
|||||||||||||||
Borrowings |
51 |
3 |
1 |
54 |
8 |
|||||||||||||||
Total interest expense |
808 |
536 |
239 |
1,926 |
1,020 |
|||||||||||||||
Net interest income |
1,893 |
2,155 |
2,159 |
8,752 |
8,204 |
|||||||||||||||
Provision for loan losses |
- |
- |
- |
- |
26 |
|||||||||||||||
Net interest income after provision for loan losses |
1,893 |
2,155 |
2,159 |
8,752 |
8,178 |
|||||||||||||||
Non-interest income: |
||||||||||||||||||||
Customer service fees |
36 |
37 |
34 |
146 |
127 |
|||||||||||||||
Income on bank-owned life insurance |
67 |
64 |
76 |
258 |
259 |
|||||||||||||||
Gain on sale of securities available for sale |
- |
- |
8 |
- |
56 |
|||||||||||||||
Other income |
61 |
47 |
48 |
260 |
253 |
|||||||||||||||
Total non-interest income |
164 |
148 |
166 |
664 |
695 |
|||||||||||||||
Non-interest expenses: |
||||||||||||||||||||
Salaries and employee benefits |
1,146 |
1,103 |
1,036 |
4,517 |
4,097 |
|||||||||||||||
Occupancy and equipment |
274 |
256 |
227 |
1,028 |
883 |
|||||||||||||||
Advertising |
37 |
38 |
29 |
185 |
139 |
|||||||||||||||
Data processing |
82 |
84 |
90 |
344 |
350 |
|||||||||||||||
Deposit insurance |
43 |
20 |
23 |
106 |
90 |
|||||||||||||||
Charitable Foundation contribution |
- |
- |
- |
- |
1,554 |
|||||||||||||||
Other general and administrative |
351 |
400 |
344 |
1,489 |
1,370 |
|||||||||||||||
Total non-interest expenses |
1,933 |
1,901 |
1,749 |
7,669 |
8,483 |
|||||||||||||||
Income before income taxes |
124 |
402 |
576 |
1,747 |
390 |
|||||||||||||||
Provision (benefit) for income taxes |
19 |
47 |
12 |
301 |
(52) |
|||||||||||||||
Net income |
$ |
105 |
$ |
355 |
$ |
564 |
$ |
1,446 |
$ |
442 |
||||||||||
Net income per share: |
||||||||||||||||||||
Basic |
$ |
0.02 |
$ |
0.06 |
$ |
0.09 |
$ |
0.23 |
$ |
0.08 |
||||||||||
Diluted |
$ |
0.02 |
$ |
0.06 |
$ |
0.09 |
$ |
0.23 |
$ |
0.08 |
||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||
Basic |
6,279,656 |
6,300,633 |
6,273,685 |
6,275,819 |
5,886,929 |
|||||||||||||||
Diluted |
6,279,790 |
6,300,721 |
6,273,685 |
6,275,874 |
5,886,929 |
|||||||||||||||
CFSB Bancorp, Inc. and Subsidiary |
|||||||||||||||||||||||||||||||||||
Average Balance and Yields |
|||||||||||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||||||||
June 30, 2023 |
March 31, 2023 |
June 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 |
$ |
178,474 |
$ |
1,719 |
3.85 |
% |
$ |
179,452 |
$ |
1,700 |
3.79 |
% |
$ |
173,827 |
$ |
1,593 |
3.67 |
% |
|||||||||||||||||
Securities (1) |
150,383 |
968 |
2.57 |
% |
150,945 |
960 |
2.54 |
% |
139,820 |
780 |
2.23 |
% |
|||||||||||||||||||||||
Cash and short-term investments |
3,331 |
38 |
4.56 |
% |
5,287 |
53 |
4.01 |
% |
35,196 |
53 |
0.60 |
% |
|||||||||||||||||||||||
Total interest-earning assets |
332,188 |
2,725 |
3.28 |
% |
335,684 |
2,713 |
3.23 |
% |
348,843 |
2,426 |
2.78 |
% |
|||||||||||||||||||||||
Noninterest-earning assets |
17,118 |
17,207 |
15,932 |
||||||||||||||||||||||||||||||||
Total assets |
$ |
349,306 |
$ |
352,891 |
$ |
364,775 |
|||||||||||||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits |
$ |
30,051 |
$ |
4 |
0.05 |
% |
$ |
32,245 |
$ |
4 |
0.05 |
% |
$ |
33,582 |
$ |
4 |
0.05 |
% |
|||||||||||||||||
Savings deposits |
64,996 |
16 |
0.10 |
% |
68,097 |
17 |
0.10 |
% |
74,626 |
19 |
0.10 |
% |
|||||||||||||||||||||||
Money market deposits |
28,890 |
19 |
0.26 |
% |
34,377 |
22 |
0.26 |
% |
46,290 |
31 |
0.27 |
% |
|||||||||||||||||||||||
Certificates of deposit |
111,041 |
718 |
2.59 |
% |
106,555 |
490 |
1.84 |
% |
102,398 |
184 |
0.72 |
% |
|||||||||||||||||||||||
Total interest-bearing deposits |
234,978 |
757 |
1.29 |
% |
241,274 |
533 |
0.88 |
% |
256,896 |
238 |
0.37 |
% |
|||||||||||||||||||||||
FHLB advances |
3,916 |
51 |
5.21 |
% |
244 |
3 |
4.92 |
% |
20 |
1 |
20.00 |
% |
|||||||||||||||||||||||
Total interest-bearing liabilities |
238,894 |
808 |
1.35 |
% |
241,518 |
536 |
0.89 |
% |
256,916 |
239 |
0.37 |
% |
|||||||||||||||||||||||
Noninterest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits |
28,881 |
30,352 |
29,673 |
||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities |
5,726 |
5,554 |
4,256 |
||||||||||||||||||||||||||||||||
Total liabilities |
273,501 |
277,424 |
290,845 |
||||||||||||||||||||||||||||||||
Total stockholders' equity |
75,805 |
75,467 |
73,930 |
||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity |
$ |
349,306 |
$ |
352,891 |
$ |
364,775 |
|||||||||||||||||||||||||||||
Net interest income |
$ |
1,917 |
$ |
2,177 |
$ |
2,187 |
|||||||||||||||||||||||||||||
Net interest rate spread(2) |
1.93 |
% |
2.34 |
% |
2.41 |
% |
|||||||||||||||||||||||||||||
Net interest-earning assets(3) |
$ |
93,294 |
$ |
94,166 |
$ |
91,927 |
|||||||||||||||||||||||||||||
Net interest margin(4) |
2.31 |
% |
2.59 |
% |
2.51 |
% |
|||||||||||||||||||||||||||||
Cost of deposits (5) |
1.15 |
% |
0.78 |
% |
0.33 |
% |
|||||||||||||||||||||||||||||
Cost of funds (6) |
1.21 |
% |
0.79 |
% |
0.33 |
% |
|||||||||||||||||||||||||||||
Ratio of interest-earning assets to |
139.05 |
% |
138.99 |
% |
135.78 |
% |
|||||||||||||||||||||||||||||
(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 June 30, 2023, March 31, 2023 and June 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 |
|||||||||||||||||||||||
Average Balance and Yields |
|||||||||||||||||||||||
Year Ended |
|||||||||||||||||||||||
June 30, 2023 |
June 30, 2022 |
||||||||||||||||||||||
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 |
$ |
178,044 |
$ |
6,695 |
3.76 |
% |
$ |
170,991 |
$ |
6,502 |
3.80 |
% |
|||||||||||
Securities (1) |
150,334 |
3,752 |
2.50 |
% |
122,816 |
2,743 |
2.23 |
% |
|||||||||||||||
Cash and short-term investments |
10,923 |
341 |
3.12 |
% |
38,877 |
103 |
0.26 |
% |
|||||||||||||||
Total interest-earning assets |
339,301 |
10,788 |
3.18 |
% |
332,684 |
9,348 |
2.81 |
% |
|||||||||||||||
Noninterest-earning assets |
16,701 |
20,530 |
|||||||||||||||||||||
Total assets |
$ |
356,002 |
$ |
353,214 |
|||||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||
Interest-bearing demand deposits |
$ |
32,252 |
$ |
16 |
0.05 |
% |
$ |
31,258 |
$ |
18 |
0.06 |
% |
|||||||||||
Savings deposits |
70,338 |
70 |
0.10 |
% |
73,139 |
74 |
0.10 |
% |
|||||||||||||||
Money market deposits |
37,197 |
98 |
0.26 |
% |
42,719 |
112 |
0.26 |
% |
|||||||||||||||
Certificates of deposit |
103,410 |
1,688 |
1.63 |
% |
107,524 |
808 |
0.75 |
% |
|||||||||||||||
Total interest-bearing deposits |
243,197 |
1,872 |
0.77 |
% |
254,640 |
1,012 |
0.40 |
% |
|||||||||||||||
FHLB advances |
1,037 |
54 |
5.21 |
% |
278 |
8 |
2.88 |
% |
|||||||||||||||
Total interest-bearing liabilities |
244,234 |
1,926 |
0.79 |
% |
254,918 |
1,020 |
0.40 |
% |
|||||||||||||||
Noninterest-bearing liabilities: |
|||||||||||||||||||||||
Noninterest-bearing demand deposits |
31,170 |
34,909 |
|||||||||||||||||||||
Other noninterest-bearing liabilities |
5,334 |
5,907 |
|||||||||||||||||||||
Total liabilities |
280,738 |
295,734 |
|||||||||||||||||||||
Total stockholders' equity |
75,264 |
57,480 |
|||||||||||||||||||||
Total liabilities and stockholders' equity |
$ |
356,002 |
$ |
353,214 |
|||||||||||||||||||
Net interest income |
$ |
8,862 |
$ |
8,328 |
|||||||||||||||||||
Net interest rate spread(2) |
2.39 |
% |
2.41 |
% |
|||||||||||||||||||
Net interest-earning assets(3) |
$ |
95,067 |
$ |
77,766 |
|||||||||||||||||||
Net interest margin(4) |
2.61 |
% |
2.50 |
% |
|||||||||||||||||||
Cost of deposits (5) |
0.68 |
% |
0.35 |
% |
|||||||||||||||||||
Cost of funds (6) |
0.70 |
% |
0.35 |
% |
|||||||||||||||||||
Ratio of interest-earning assets to interest-bearing |
138.92 |
% |
130.51 |
% |
|||||||||||||||||||
(1) |
Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $110,000 and $124,000 for the year ended June 30, 2023 and June 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 |
||||||||||||||||||||
For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
Securities interest income (no tax adjustment) |
$ |
944 |
$ |
938 |
$ |
752 |
$ |
3,642 |
$ |
2,619 |
||||||||||
Tax-equivalent adjustment |
24 |
22 |
28 |
110 |
124 |
|||||||||||||||
Securities (tax-equivalent basis) |
$ |
968 |
$ |
960 |
$ |
780 |
$ |
3,752 |
$ |
2,743 |
||||||||||
Net interest income (no tax adjustment) |
$ |
1,893 |
$ |
2,155 |
$ |
2,159 |
$ |
8,752 |
$ |
8,204 |
||||||||||
Tax-equivalent adjustment |
24 |
22 |
28 |
110 |
124 |
|||||||||||||||
Net interest income (tax-equivalent adjustment) |
$ |
1,917 |
$ |
2,177 |
$ |
2,187 |
$ |
8,862 |
$ |
8,328 |
||||||||||
CFSB Bancorp, Inc. and Subsidiary |
At or for the Three Months Ended |
At or for the Year Ended |
||||||||||||||||||
Selected Financial Highlights (Unaudited) |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
(In thousands, except share and per share amounts) |
2023 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||
Performance Ratios |
||||||||||||||||||||
Return on average assets (GAAP) (1, 5) |
0.12 |
% |
0.40 |
% |
0.62 |
% |
0.41 |
% |
0.13 |
% |
||||||||||
Return on average assets, as adjusted (Non-GAAP) (1, 2, 5) |
0.12 |
% |
0.40 |
% |
0.63 |
% |
0.41 |
% |
0.42 |
% |
||||||||||
Return on average equity ("ROAE") (GAAP) (1, 6) |
0.55 |
% |
1.88 |
% |
3.05 |
% |
1.92 |
% |
0.77 |
% |
||||||||||
ROAE, as adjusted (Non-GAAP) (1, 2, 6) |
0.55 |
% |
1.88 |
% |
3.02 |
% |
1.92 |
% |
2.58 |
% |
||||||||||
Noninterest expense to average assets (GAAP) (1) |
2.21 |
% |
2.15 |
% |
1.92 |
% |
2.15 |
% |
2.40 |
% |
||||||||||
Noninterest expense to average assets, as adjusted (Non- |
2.21 |
% |
2.15 |
% |
1.92 |
% |
2.15 |
% |
1.96 |
% |
||||||||||
Total loans to total deposits |
67.6 |
% |
66.3 |
% |
60.9 |
% |
67.6 |
% |
60.9 |
% |
||||||||||
Total loans to total assets |
51.0 |
% |
50.9 |
% |
47.7 |
% |
51.0 |
% |
47.7 |
% |
||||||||||
Efficiency ratio (GAAP) (7) |
94.0 |
% |
82.5 |
% |
75.2 |
% |
81.4 |
% |
95.3 |
% |
||||||||||
Efficiency ratio, as adjusted (Non-GAAP) (2, 7) |
94.0 |
% |
82.5 |
% |
75.6 |
% |
81.4 |
% |
78.5 |
% |
||||||||||
Capital Ratios |
||||||||||||||||||||
Total capital to risk-weighted assets |
32.9 |
% |
32.6 |
% |
34.9 |
% |
32.9 |
% |
34.9 |
% |
||||||||||
Common equity tier 1 capital to risk-weighted assets |
32.0 |
% |
31.7 |
% |
34.0 |
% |
32.0 |
% |
34.0 |
% |
||||||||||
Tier 1 capital to risk-weighted assets |
32.0 |
% |
31.7 |
% |
34.0 |
% |
32.0 |
% |
34.0 |
% |
||||||||||
Tier 1 capital to average assets (3) |
18.2 |
% |
17.9 |
% |
17.4 |
% |
18.2 |
% |
17.4 |
% |
||||||||||
Asset Quality Ratios |
||||||||||||||||||||
Allowance for loan losses as a percentage of total loans |
0.98 |
% |
0.98 |
% |
1.00 |
% |
0.98 |
% |
1.00 |
% |
||||||||||
Allowance for loan losses as a percentage of non- |
NM |
NM |
NM |
NM |
NM |
|||||||||||||||
Net (charge-offs) recoveries to average outstanding |
0.00 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
||||||||||
Non-performing loans as a percentage of total loans |
0.00 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
||||||||||
Non-performing loans as a percentage of total assets |
0.00 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
||||||||||
Total non-performing loans as a percentage of total |
0.00 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
||||||||||
Informational Items |
||||||||||||||||||||
Fair value of held to maturity securities |
$ |
132,273 |
$ |
136,774 |
$ |
133,593 |
$ |
132,273 |
$ |
133,593 |
||||||||||
Book value per share (8) |
$ |
11.44 |
$ |
11.41 |
$ |
11.39 |
$ |
11.44 |
$ |
11.39 |
||||||||||
Outstanding common shares |
6,632,642 |
6,632,642 |
6,521,642 |
6,632,642 |
6,521,642 |
|||||||||||||||
(1) |
Annualized for the three-month periods. |
(2) |
See Reconciliation of GAAP to Non-GAAP Earnings Metrics below. |
(3) |
Average assets calculated on a quarterly and annual basis for the periods presented. |
(4) |
Total loans exclude net deferred loan costs and fees. |
(5) |
Represents net income divided by average assets. |
(6) |
Represents net income divided by average stockholders' equity |
(7) |
Represents total non-interest expenses divided by net interest income and non-interest income. |
(8) |
Represents total stockholders' equity divided by outstanding shares at period end. |
CFSB Bancorp, Inc. and Subsidiary |
For the Three Months Ended |
For the Year Ended |
||||||||||||||||||
Reconciliation of Non-GAAP Earnings |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
(In thousands, except per share amounts) |
2023 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||
Net income (loss), GAAP basis |
$ |
105 |
$ |
355 |
$ |
564 |
$ |
1,446 |
$ |
442 |
||||||||||
Adjustments to GAAP Net Income: |
||||||||||||||||||||
Charitable Foundation contribution |
- |
- |
- |
- |
1,554 |
|||||||||||||||
Gain on sale of available for sale securities |
- |
- |
(8) |
- |
(56) |
|||||||||||||||
Tax effect of adjustments to net income, |
- |
- |
2 |
- |
(457) |
|||||||||||||||
Adjusted net income, non-GAAP basis |
$ |
105 |
$ |
355 |
$ |
558 |
$ |
1,446 |
$ |
1,483 |
||||||||||
Earnings per share, non-GAAP basis |
$ |
0.02 |
$ |
0.06 |
$ |
0.09 |
$ |
0.23 |
$ |
0.25 |
||||||||||
Non-interest expenses |
$ |
1,933 |
$ |
1,901 |
$ |
1,749 |
$ |
7,669 |
$ |
8,483 |
||||||||||
Charitable Foundation contribution |
- |
- |
- |
- |
(1,554) |
|||||||||||||||
Adjusted non-interest expenses, non-GAAP |
$ |
1,933 |
$ |
1,901 |
$ |
1,749 |
$ |
7,669 |
$ |
6,929 |
||||||||||
Non-interest income |
$ |
164 |
$ |
148 |
$ |
166 |
$ |
664 |
$ |
695 |
||||||||||
Gain on sale of available for sale securities |
- |
- |
(8) |
- |
(56) |
|||||||||||||||
Adjusted non-interest income, non-GAAP |
$ |
164 |
$ |
148 |
$ |
158 |
$ |
664 |
$ |
639 |
||||||||||
SOURCE Colonial Federal Savings Bank
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