CFSB BANCORP, INC. ANNOUNCES ADOPTION OF REPURCHASE PROGRAM

Rhea-AI Summary

CFSB Bancorp, Inc. announces a stock repurchase program to buy back 152,287 shares, approximately 5% of outstanding common stock. The repurchase plan follows the mutual holding company reorganization in January 2022 and will commence after releasing March 31, 2024, results.

Insights

Financial Analyst

The announcement by CFSB Bancorp, Inc. regarding its stock repurchase program reflects a strategic corporate finance decision. Repurchasing shares can be an indicator of management's belief that the stock is undervalued and it often leads to an increase in the earnings per share (EPS) figure, as there are fewer shares outstanding. This can be positive for investors, as it may lead to a higher stock price due to the reduced supply and improved financial ratios.

However, the impact on the stock market will largely depend on the execution of this program. Factors such as market conditions, the company's financial performance and the availability of stock will play important roles. Investors should monitor the company's capital allocation efficiency, as alternative uses of capital could potentially offer higher returns. The repurchase plan also signals confidence in the company's liquidity and financial stability post-reorganization.

Market Research Analyst

From a market perspective, CFSB Bancorp's stock repurchase plan may be interpreted as a positive signal, potentially attracting investor interest. It's important to consider the context; the company completed a mutual holding company reorganization over a year ago. This repurchase initiative could be part of a broader strategy to optimize capital structure and shareholder value post-reorganization.

Investors should evaluate the timing of the repurchases, as it coincides with the release of the company's financial results. If the results are favorable, the repurchase activity could compound the positive market reaction. Conversely, if results are below expectations, the repurchase program may provide some support to the stock price. Nonetheless, the long-term value of the repurchase program will be contingent upon the company's ongoing financial health and market performance.

Legal Expert

In terms of legal compliance, the repurchase program's adherence to Rule 10b5-1 and Rule 10b-18 of the Securities and Exchange Commission is significant. Rule 10b5-1 allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. This rule is important because it provides a defense against charges of insider trading, should the individuals make trades during a time when they have access to non-public information. Rule 10b-18 provides a safe harbor for companies to repurchase their shares without being deemed to manipulate the market.

For stakeholders, the legal framework ensures that the repurchase process is conducted transparently and fairly, minimizing legal risks. It is important for investors to be aware that while the company is not obligated to repurchase any specific number of shares, the announcement itself can influence investor sentiment and the company's stock price.

QUINCY, Mass., April 5, 2024 /PRNewswire/ -- CFSB Bancorp, Inc. (the "Company") (Nasdaq: CFSB), the holding company for Colonial Federal Savings Bank, announced it has adopted a program to repurchase up to 152,287 shares of its common stock, which is approximately 5% of its outstanding common stock (excluding shares held by 15 Beach, MHC). This is the Company's first stock repurchase program since completing its mutual holding company reorganization and related stock offering in January 2022.

Repurchases are expected to commence after the Company publicly releases its results of operations for the period ended March 31, 2024. Shares may be repurchased in open market or private transactions or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission.

The timing and amount of any repurchases will depend on a number of factors, including the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company's financial performance. Open market purchases will be made in accordance with Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements. The Company is not obligated to repurchase any particular number of shares or any shares in any specific time period.

About CFSB Bancorp, Inc. and Colonial Federal Savings Bank

CFSB Bancorp, Inc. is the stock holding company for Colonial Federal Savings Bank as a result of the completion of the reorganization of Colonial Federal Savings Bank into the mutual holding company structure and related stock offering. Colonial Federal Savings Bank was founded in 1889 and currently operates three full-service banking offices and one limited-service banking office in Norfolk County, Massachusetts.

Forward-Looking Statements

This press release contains certain forward-looking statements about the Company and Colonial Federal Savings Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. The following factors, among others, could cause actual results to differ materially from the anticipated results expressed in the forward-looking statements: increased competitive pressures; changes in the interest rate environment; general economic conditions or conditions within the securities markets; changes in demand for our products and services; the effects of the COVID-19 pandemic or the government actions taken in response thereto; and legislative, accounting and regulatory changes 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. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission (the "SEC") and available at the SEC's Internet website (www.sec.gov).

Accordingly, 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.

View original content:https://www.prnewswire.com/news-releases/cfsb-bancorp-inc-announces-adoption-of-repurchase-program-302109493.html

SOURCE CFSB Bancorp, Inc.

FAQ

What is CFSB Bancorp, Inc.'s stock repurchase program details?

CFSB Bancorp, Inc. plans to repurchase up to 152,287 shares of its common stock, around 5% of the outstanding common stock.

When will the stock repurchase program begin?

The repurchase program is expected to start after the Company publicly releases its results of operations for the period ended March 31, 2024.

How will the shares be repurchased?

Shares may be repurchased in open market or private transactions or pursuant to any trading plan adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission.

What factors will determine the timing and amount of repurchases?

Factors include the availability of stock, general market conditions, trading price of the stock, alternative uses for capital, and the Company's financial performance.

Is the Company obligated to repurchase a specific number of shares?

The Company is not obligated to repurchase any particular number of shares or any shares in any specific time period.