CFSB CFSB Bancorp Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 29, 2025

CFSB Bancorp, Inc.

(Exact name of Registrant as Specified in Its Charter)

United States of America	001-41220	87-4396534
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
15 Beach Street, Quincy, Massachusetts		02170
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 471-0750

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		CFSB		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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Item 2.02 Results of Operation and Financial Condition

 

On January 29, 2025, CFSB Bancorp, Inc., the holding company for Colonial Federal Savings Bank, issued a press release reporting its financial results for the three and six months ended December 31, 2024.

 

A copy of the press release announcing the results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

 

Item 9.01 Financial Statements and Exhibits

 

 

Exhibit No. Description

 

99.1 Earnings Release dated January 29, 2025

 

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

		CFSB BANCORP, INC.
Date: January 29, 2025		By:	/s/ Susan Shea
			Susan Shea
			Treasurer & Chief Operating Officer

 

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+Exhibit 99.1

News Release - For Immediate Release January 29, 2025	For More Information, Contact: Michael E. McFarland, President and Chief Executive Officer (617-471-0750)

 

CFSB BANCORP, INC. ANNOUNCES FISCAL SECOND QUARTER AND YEAR-TO-DATE 2025 FINANCIAL RESULTS

 

QUINCY, Massachusetts, January 29, 2025 – CFSB Bancorp, Inc. (the “Company”) (NASDAQ Capital Market: CFSB), the holding company for Colonial Federal Savings Bank (the “Bank”), today announced a net loss of $162,000, or $0.03 per basic and diluted share, for the three months ended December 31, 2024, a net loss of $6,000, or $0.00 per basic and diluted share, for the three months ended September 30, 2024, and a net loss of $210,000, or $0.03 per basic and diluted share, for the three months ended December 31, 2023.

For the six months ended December 31, 2024, the Company recorded a net loss of $168,000, or $0.03 per basic and diluted share, compared to a net loss of $87,000, or $0.01 per basic and diluted share, for the six months ended December 31, 2023.

 

Michael E. McFarland, President and Chief Executive Officer, states “Returns on interest-earning assets continue to show improvement while the cost of deposits have peaked and short-term instruments should continue to decline. We continue to focus on loan growth and expense reductions. As our assets continue to reprice higher and our liabilities, including both deposits and wholesale funding, reprice lower, conditions have become more favorable. While this market environment has been extraordinarily challenging we continue to be optimistic.”

 

Second Quarter Operating Results

Net interest income, on a fully tax-equivalent basis, increased by $45,000, or 2.7%, to $1.7 million for the three months ended December 31, 2024, from $1.7 million for the three months ended September 30, 2024. The net interest margin increased by six basis points to 1.98% for the three months ended December 31, 2024, from 1.92%, for the three months ended September 30, 2024. Interest income increased $43,000, or 1.3%, due to a $50,000 increase in interest and dividends on securities, a $12,000 increase in interest on cash and short-term investments, offset by a decrease of $19,000 in interest and fees on loans. Interest expense decreased $2,000, or 0.1%, to $1.6 million for the three months ended December 31, 2024, from $1.6 million for the three months ended September 30, 2024. The increase in net interest income was due to higher average yields on interest-earning assets as assets with lower rates are replaced with interest-earning assets with higher rates.

 

Net interest income, on a fully tax-equivalent basis, increased by $44,000, or 2.6%, to $1.7 million for the three months ended December 31, 2024, from $1.7 million for the three months ended December 31, 2023. The net interest margin decreased by four basis points to 1.98% for the three months ended December 31, 2024, from 2.02%, for the three months ended December 31, 2023. Interest income increased $453,000, or 16.0%, due to a $153,000 increase in interest and dividends on securities, a $293,000 increase in interest on cash and short-term investments and a $7,000 increase in interest and fees on loans. Interest expense increased $409,000, or 35.1%, to $1.6 million for the three months ended December 31, 2024, from $1.2 million for the three months ended December 31, 2023. The increase in net interest income was due to higher average yields on interest-earning assets as assets earning lower yields are replaced with interest-earning assets earning higher yields.

 

The Company recorded reversals of the provision for credit losses of $79,000, $71,000 and $104,000, for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The $15,000 reversal for credit losses for securities held to maturity was primarily due to improvements in economic conditions for the three months ended December 31, 2024. The $33,000 provision for credit losses for off-balance sheet exposures was primarily due to an increase of $2.9 million in unfunded commitments at December 31, 2024. The $97,000 reversal for credit losses for loans was primarily due to improvements in economic conditions, lower loan balances and continued strong asset quality for the three months ended December 31, 2024. The allowance for credit losses on

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loans as a percentage of total loans was 0.83%, 0.89%, and 0.93%, at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.

Non-interest income decreased $5,000, or 2.9%, to $165,000 for the three months ended December 31, 2024, from $170,000 for the three months ended September 30, 2024, due to a decrease of $5,000 in customer service fees.

 

Non-interest income decreased $7,000, or 4.1%, to $165,000 for the three months ended December 31, 2024, from $172,000 for the three months ended December 31, 2023, primarily due to a decrease of $8,000 in other income.

 

Non-interest expense increased $173,000, or 9.2%, to $2.0 million for the three months ended December 31, 2024, from $1.9 million for the three months ended September 30, 2024. The increase was primarily due to a $177,000 increase in salaries and employee benefit expense due to normal employee merit salary and benefit increases, offset by a reduction in pension costs of $60,000 and a $48,000 increase in other general and administrative expenses due to an increase in annual meeting expense of $29,000, an increase in directors compensation of $7,000 and an increase in legal expense of $5,000.

 

Non-interest expense decreased $65,000, or 3.0%, to $2.0 million for the three months ended December 31, 2024, from $2.1 million for the three months ended December 31, 2023. The decrease was primarily due to a $49,000 decrease in salaries and employee benefit expense, primarily due to a reduction in pension costs of $68,000, offset by an increase in health insurance expense of $8,000 and an increase in salaries expense of $10,000, and a $24,000 decrease in other general and administrative expenses, primarily due to a decrease in printing expense of $7,000, a decrease in audit expense of $6,000 and a decrease in insurance expense of $8,000.

 

The Company recorded a provision for income tax of $51,000 for the three months ended December 31, 2024, compared to a provision for income taxes of $19,000 for the three months ended September 30, 2024. The increase of $32,000 in the provision for income taxes for the three months ended December 31, 2024 was due to the increase in the deferred tax valuation allowance on the charitable contribution carryover.

 

The Company recorded a provision for income tax of $51,000 for the three months ended December 31, 2024, compared to a provision for income taxes of $16,000 for the three months ended December 31, 2023. The increase of $35,000 in the provision for income taxes for the three months ended December 31, 2024 was due to the increase in the deferred tax valuation allowance on the charitable contribution carryover.

 

Year-to-Date Operating Results

Net interest income, on a fully tax-equivalent basis, decreased by $124,000, or 3.5%, to $3.4 million for the six months ended December 31, 2024, from $3.5 million for the six months ended December 31, 2023. The net interest margin decreased by 17 basis points to 1.95% for the six months ended December 31, 2024, from 2.12% for the six months ended December 31, 2023. Interest income increased $935,000, or 16.7%, due to a $578,000 increase in interest on cash and short-term investments, a $288,000 increase in interest and dividends on securities, and a $69,000 increase in interest and fees on loans. These changes reflect an overall increased yield on interest-earning assets of 39 basis points as interest-earning assets earning lower yields are replaced with interest-earning assets earning higher yields. The increase in interest income benefited from an increase in the average balance of cash and short-term investments of $22.7 million, partially offset by a decrease in the average balance of loans of $6.2 million and a decrease in the average balance of securities of $1.1 million. Interest expense increased $1.1 million, or 50.6%, due to an increase of $984,000 in interest expense on interest-bearing deposits, and a $75,000 increase in interest expense on Federal Home Loan Bank ("FHLB") advances. The increase in interest expense on interest-bearing deposits reflected a 74 basis point increase in the average cost, primarily due to the higher interest rate environment and an increased percentage of higher cost certificates of deposit in the portfolio. The increase in interest expense on FHLB advances was due to a $4.4 million, or 74.0%, increase in the average balance of FHLB advances for the six months ended December 31, 2024, offset by a 90 basis point decrease in the average cost of FHLB advances as newer advances were borrowed at lower rates.

 

The Company recorded a reversal of the provision for credit losses of $150,000 for the six months ended December 31, 2024, compared to a reversal of the provision for credit losses of $270,000 for the six months ended December 31, 2023. The $25,000 provision of credit losses for off-balance sheet exposures was primarily due to an increase of $2.0 million in unfunded commitments at December 31, 2024. The $145,000 reversal of the provision for credit losses for loans recorded for the six months ended December 31, 2024, reflected continued strong asset quality, improvements in forecasted economic conditions and lower loan balances. The $30,000 reversal of the provision for credit losses on securities held to maturity for the six months ended December 31, 2024 was primarily due to improvements in economic conditions.

 

Non-interest income increased $3,000, or 0.9%, to $335,000 for the six months ended December 31, 2024 from $332,000 for the six months ended December 31, 2023.

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Non-interest expense decreased $110,000, or 2.7%, to $3.9 million for the six months ended December 31, 2024 from $4.0 million for the six months ended December 31, 2023. The decrease was due to a $97,000 decrease in salaries and employee benefit expense primarily due to a reduction in pension costs and a $22,000 decrease in other general and administrative expense, partially offset by a $12,000 increase to data processing fees.

The Company recorded a provision for income taxes of $70,000 for the six months ended December 31, 2024, a $39,000, or 35.8%, decrease from the provision for income taxes of $109,000 for the six months ended December 31, 2023. The decrease in the provision for income taxes for the six months ended December 31, 2024 was due to the decrease in income before income taxes, offset by an increase in the deferred tax valuation allowance on the charitable contribution carryover. The deferred tax related to the charitable contribution carryover was reduced by a 100% valuation allowance because management believes that it is more likely than not that the benefit of these deferred tax assets will not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of future taxable income. The valuation allowance for these net deferred tax assets may be adjusted in the future if estimates of taxable income during the carryforward period are increased.

 

Balance Sheet

Assets: At December 31, 2024, total assets amounted to $362.8 million, compared to $363.4 million at June 30, 2024, a decrease of $681,000, or 0.2%. The decrease resulted primarily from decreases in cash and cash equivalents of $1.8 million, a decrease in total loans of $3.2 million, offset by an increase in securities held to maturity of $923,000. The decrease in cash and cash equivalents was primarily due to increases in securities held to maturity of $923,000, decreases in deposits of $483,000, offset by decreases in loans of $3.2 million.

 

Asset Quality: At December 31, 2024, there were five one- to four-family loans totaling $1.6 million rated substandard with a provision for credit loss of $11,000. Four of these loans were rated substandard due to the borrowers' inability to show sufficient rent receipts to support the debt service coverage and one loan rated substandard and on non-accrual due to non-payment. There were no loans rated special mention, doubtful or loss at December 31, 2024. There were no charge-offs or recoveries during the six months ending December 31, 2024.

 

Liabilities: At December 31, 2024, total liabilities amounted to $287.1 million, compared to $287.4 million at June 30, 2024, a decrease of $302,000 or 0.5%. Deposits decreased by $483,000, or 0.2%, to $270.4 million at December 31, 2024 compared to $270.8 million at June 30, 2024. The decrease was primarily due to a a decrease of $5.3 million in non-interest-bearing NOW and demand accounts and a decrease of $2.1 million in regular accounts, offset by an increase of $6.8 million in higher-yielding term certificates of deposit. 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 decreased $379,000, to $75.7 million at December 31, 2024, from $76.1 million at June 30, 2024. The decrease was primarily due to the changes in unearned ESOP compensation of $51,000 and stock-based compensation of $180,000, offset by the purchase of Company stock of $426,000 and the net loss for the six months ended December 31, 2024 of $168,000.

 

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 (including potential recessionary 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;

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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 imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers, 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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CFSB Bancorp, Inc. and Subsidiary

Consolidated Balance Sheets (Unaudited)

(In thousands, except per share data)

 

		December 31,				June 30,
		2024				2024
Assets:
Cash and due from banks		$	1,506			$	1,339
Short-term investments			27,323				25,620
Total cash and cash equivalents			28,829				26,959
Securities available for sale, at fair value			103				113
Securities held to maturity, at amortized cost, net of allowance for credit losses			147,917				146,994
Federal Home Loan Bank of Boston stock, at cost			704				704
Loans:
1-4 family			136,195				138,005
Multifamily			11,720				12,066
Second mortgages and home equity lines of credit			4,004				3,372
Commercial			15,056				16,833
Total mortgage loans on real estate			166,975				170,276
Consumer			92				65
Home improvement			1,868				2,037
Total loans			168,935				172,378
Allowance for credit losses			(1,407	)			(1,553	)
Net deferred loan costs and fees, and purchase premiums			(376	)			(387	)
Loans, net			167,152				170,438
Premises and equipment, net			3,130				3,246
Accrued interest receivable			1,355				1,398
Bank-owned life insurance			10,809				10,670
Deferred tax asset			1,193				1,245
Operating lease right of use asset			812				860
Other assets			754				812
Total assets		$	362,758			$	363,439
Liabilities and Stockholders' Equity:
Deposits:
Non-interest-bearing NOW and demand		$	27,991			$	34,124
Interest-bearing NOW and demand			29,126				28,262
Regular and other			52,103				54,192
Money market accounts			22,047				21,956
Term certificates			139,091				132,307
Total deposits			270,358				270,841
Federal Home Loan Bank of Boston advances			10,350				10,350
Mortgagors' escrow accounts			1,684				1,525
Operating lease liability			833				877
Accrued expenses and other liabilities			3,862				3,796
Total liabilities			287,087				287,389
Stockholders' Equity:
Common stock			65				65
Additional paid-in capital			28,302				28,139
Treasury stock			(504	)			(78	)
Retained earnings			50,058				50,226
Accumulated other comprehensive loss, net of tax			-				(1	)
Unearned compensation - ESOP			(2,250	)			(2,301	)
Total stockholders' equity			75,671				76,050
Total liabilities and stockholders' equity		$	362,758			$	363,439

 

 

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CFSB Bancorp, Inc. and Subsidiary

Consolidated Statements of Net (Loss) Income (Unaudited)

(In thousands, except per share data)

		For the Three Months Ended												For the Six Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2024				2024				2023				2024				2023
Interest and dividend income:
Interest and fees on loans		$	1,765			$	1,784			$	1,758			$	3,549			$	3,480
Interest and dividends on debt securities:
Taxable			1,083				1,028				904				2,111				1,772
Tax-exempt			73				77				93				150				190
Interest on short-term investments and certificates of deposit			342				330				49				672				94
Total interest and dividend income			3,263				3,219				2,804				6,482				5,536
Interest expense:
Deposits			1,455				1,457				1,051				2,912				1,927
Borrowings			119				119				114				238				164
Total interest expense			1,574				1,576				1,165				3,150				2,091
Net interest income			1,689				1,643				1,639				3,332				3,445
Reversal of credit losses for securities held to maturity			(15	)			(15	)			(99	)			(30	)			(141	)
Provision (reversal) of credit losses for off-balance sheet exposures			33				(8	)			3				25				(12	)
Reversal of credit losses for loans			(97	)			(48	)			(8	)			(145	)			(117	)
Net interest income after (reversal) provsion of credit losses			1,768				1,714				1,743				3,482				3,715
Non-interest income:
Customer service fees			36				41				37				77				77
Income on bank-owned life insurance			70				69				68				139				134
Other income			59				60				67				119				121
Total non-interest income			165				170				172				335				332
Non-interest expenses:
Salaries and employee benefits			1,218				1,096				1,267				2,314				2,411
Occupancy and equipment			237				251				240				488				494
Advertising			38				36				36				74				74
Data processing			108				94				101				202				190
Deposit insurance			35				34				33				69				66
Other general and administrative			408				360				432				768				790
Total non-interest expenses			2,044				1,871				2,109				3,915				4,025
Income (loss) before income taxes			(111	)			13				(194	)			(98	)			22
Provision for income taxes			51				19				16				70				109
Net loss		$	(162	)		$	(6	)		$	(210	)		$	(168	)		$	(87	)
Net loss per share:
Basic		$	(0.03	)		$	(0.00	)		$	(0.03	)		$	(0.03	)		$	(0.01	)
Diluted		$	(0.03	)		$	(0.00	)		$	(0.03	)		$	(0.03	)		$	(0.01	)
Weighted average shares outstanding:
Basic			6,271,579				6,294,603				6,284,768				6,283,091				6,283,485
Diluted			6,271,579				6,294,603				6,284,768				6,283,091				6,283,485

 

 

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CFSB Bancorp, Inc. and Subsidiary

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

(Dollars in thousands)

	Average Balance and Yields
	Three Months Ended
	December 31, 2024												September 30, 2024												December 31, 2023
	Average				Interest				Average				Average				Interest				Average				Average				Interest				Average
	Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/
(Dollars in thousands)	Balance				Paid				Rate				Balance				Paid				Rate				Balance				Paid				Rate
Interest-earning assets:
Loans	$	168,996			$	1,765				4.18	%		$	171,488			$	1,784				4.16	%		$	176,149			$	1,758				3.99	%
Securities (1)		148,673				1,175				3.16	%			147,649				1,125				3.05	%			149,187				1,022				2.74	%
Cash and short-term investments		26,945				342				5.08	%			26,873				330				4.91	%			4,491				49				4.36	%
Total interest-earning assets		344,614				3,282				3.81	%			346,010				3,239				3.74	%			329,827				2,829				3.43	%
Non-interest-earning assets		17,169												17,170												16,875
Total assets	$	361,783											$	363,180											$	346,702
Interest-bearing liabilities:
Interest-bearing demand deposits	$	30,034			$	4				0.05	%		$	29,753			$	4				0.05	%		$	29,746			$	4				0.05	%
Savings deposits		53,149				13				0.10	%			54,004				14				0.10	%			58,992				15				0.10	%
Money market deposits		22,216				13				0.23	%			22,365				14				0.25	%			24,153				15				0.25	%
Certificates of deposit		136,928				1,425				4.16	%			133,142				1,425				4.28	%			115,397				1,017				3.53	%
Total interest-bearing deposits		242,327				1,455				2.40	%			239,264				1,457				2.44	%			228,288				1,051				1.84	%
FHLB advances		10,350				119				4.60	%			10,350				119				4.60	%			8,323				114				5.48	%
Total interest-bearing liabilities		252,677				1,574				2.49	%			249,614				1,576				2.53	%			236,611				1,165				1.97	%
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits		27,226												31,748												28,223
Other non-interest-bearing liabilities		5,934												5,809												5,968
Total liabilities		285,837												287,171												270,802
Total stockholders' equity		75,946												76,009												75,900
Total liabilities and stockholders' equity	$	361,783											$	363,180											$	346,702
Net interest income					$	1,708											$	1,663											$	1,664
Net interest rate spread(2)										1.32	%											1.21	%											1.46	%
Net interest-earning assets(3)	$	91,937											$	96,396											$	93,216
Net interest margin(4)										1.98	%											1.92	%											2.02	%
Cost of deposits(5)										2.16	%											2.15	%											1.64	%
Cost of funds(6)										2.25	%											2.24	%											1.76	%
Ratio of interest-earning assets to interest-bearing liabilities		136.39	%											138.62	%											139.40	%

 

(1) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $19,000, $20,000, and $25,000 for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

(2) Net interest rate spread represents the difference between the weighted average yield earned on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

(5) Cost of deposits represents the total interest paid on deposits, divided by total interest-bearing deposits plus total 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.

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CFSB Bancorp, Inc. and Subsidiary

Reconciliation of Fully Tax-Equivalent Income

(Unaudited) (In thousands)

		For the Three Months Ended
		December 31, 2024				September 30, 2024				December 31, 2023
Securities interest income (no tax adjustment)		$	1,156			$	1,105			$	997
Tax-equivalent adjustment			19				20				25
Securities (tax-equivalent basis)		$	1,175			$	1,125			$	1,022
Net interest income (no tax adjustment)		$	1,689			$	1,643			$	1,639
Tax-equivalent adjustment			19				20				25
Net interest income (tax-equivalent adjustment)		$	1,708			$	1,663			$	1,664

 

 

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CFSB Bancorp, Inc. and Subsidiary

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

(Dollars in thousands)

	Average Balance and Yields
	Six Months Ended
	December 31, 2024												December 31, 2023
	Average				Interest				Average				Average				Interest				Average
	Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/
(Dollars in thousands)	Balance				Paid				Rate				Balance				Paid				Rate
Interest-earning assets:
Loans	$	170,242			$	3,549				4.17	%		$	176,408			$	3,480				3.95	%
Securities (1)		148,161				2,301				3.11	%			149,223				2,013				2.70	%
Cash and short-term investments		26,909				672				4.99	%			4,172				94				4.51	%
Total interest-earning assets		345,312				6,522				3.78	%			329,803				5,587				3.39	%
Non-interest-earning assets		17,170												16,608
Total assets	$	362,482											$	346,411
Interest-bearing liabilities:
Interest-bearing demand deposits	$	29,893			$	7				0.05	%		$	29,829			$	7				0.05	%
Savings deposits		53,577				27				0.10	%			60,719				30				0.10	%
Money market deposits		22,291				27				0.24	%			25,212				32				0.25	%
Certificates of deposit		135,035				2,850				4.22	%			113,604				1,858				3.27	%
Total interest-bearing deposits		240,796				2,911				2.42	%			229,364				1,927				1.68	%
FHLB advances		10,350				239				4.62	%			5,947				164				5.52	%
Total interest-bearing liabilities		251,146				3,150				2.51	%			235,311				2,091				1.78	%
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits		29,487												29,597
Other non-interest-bearing liabilities		5,871												5,697
Total liabilities		286,504												270,605
Total stockholders' equity		75,978												75,806
Total liabilities and stockholders' equity	$	362,482											$	346,411
Net interest income					$	3,372											$	3,496
Net interest rate spread(2)										1.27	%											1.61	%
Net interest-earning assets(3)	$	94,166											$	94,492
Net interest margin(4)										1.95	%											2.12	%
Cost of deposits(5)										2.15	%											1.49	%
Cost of funds(6)										2.24	%											1.58	%
Ratio of interest-earning assets to interest-bearing liabilities		137.49	%											140.16	%

(1) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $40,000 and $51,000 for the six months ended December 31, 2024 and December 31, 2023, respectively.

(2) Net interest rate spread represents the difference between the weighted average yield earned on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

(5) Cost of deposits represents the total interest paid on deposits, divided by total interest-bearing deposits plus total 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.

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CFSB Bancorp, Inc. and Subsidiary

Reconciliation of Fully Tax-Equivalent Income

(Unaudited) (In thousands)

 

		For the Six Months Ended
		December 31,				December 31,
		2024				2023
Securities interest income (no tax adjustment)		$	2,261			$	1,962
Tax-equivalent adjustment			40				51
Securities (tax-equivalent basis)		$	2,301			$	2,013
Net interest income (no tax adjustment)			3,332				3,445
Tax-equivalent adjustment			40				51
Net interest income (tax-equivalent adjustment)		$	3,372			$	3,496

 

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v3.24.4

Document and Entity Information	Jan. 29, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 29, 2025
Entity Registrant Name	CFSB Bancorp, Inc. /MA/
Entity Incorporation, State or Country Code	X1
Securities Act File Number	001-41220
Entity Tax Identification Number	87-4396534
Entity Address, Address Line One	15 Beach Street
Entity Address, City or Town	Quincy
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02170
City Area Code	617
Local Phone Number	471-0750
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001879103
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CFSB
Security Exchange Name	NASDAQ

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