CFSB BANCORP, INC. ANNOUNCES FISCAL FIRST QUARTER 2025 FINANCIAL RESULTS
CFSB Bancorp reported a net loss of $6,000 ($0.00 per share) for Q1 2025, compared to net income of $123,000 ($0.02 per share) in Q1 2024. Net interest income decreased by $169,000 (9.2%) to $1.7 million, with net interest margin declining 30 basis points to 1.92%. Total assets increased $18.3 million (5.3%) to $364.5 million, while deposits grew $11.0 million (4.2%) to $271.7 million. The company's performance was impacted by ongoing challenges from increased short-term interest rates and yield curve inversion.
CFSB Bancorp ha riportato una perdita netta di $6,000 ($0.00 per azione) per il primo trimestre del 2025, rispetto a un utile netto di $123,000 ($0.02 per azione) nel primo trimestre del 2024. Il reddito netto da interessi è diminuito di $169,000 (9.2%) a $1.7 milioni, con un margine di interesse netto in calo di 30 punti base, scendendo a 1.92%. Il totale degli attivi è aumentato di $18.3 milioni (5.3%) a $364.5 milioni, mentre i depositi sono cresciuti di $11.0 milioni (4.2%) a $271.7 milioni. Le performance dell'azienda sono state influenzate da sfide continue dovute all'aumento dei tassi d'interesse a breve termine e all'inversione della curva dei rendimenti.
CFSB Bancorp reportó una pérdida neta de $6,000 ($0.00 por acción) para el primer trimestre de 2025, en comparación con una ganancia neta de $123,000 ($0.02 por acción) en el primer trimestre de 2024. Los ingresos netos por intereses disminuyeron en $169,000 (9.2%) a $1.7 millones, con el margen de interés neto cayendo 30 puntos básicos a 1.92%. Los activos totales aumentaron en $18.3 millones (5.3%) a $364.5 millones, mientras que los depósitos crecieron en $11.0 millones (4.2%) a $271.7 millones. El rendimiento de la empresa se vio afectado por los desafíos continuos derivados del aumento de las tasas de interés a corto plazo y la inversión de la curva de rendimiento.
CFSB Bancorp는 2025년 1분기에 순손실 $6,000 ($0.00 주당)을 보고했으며, 이는 2024년 1분기에 순이익 $123,000 ($0.02 주당)과 비교됩니다. 순이자 수익은 $169,000 (9.2%) 감소하여 $170만에 이르렀으며, 순이자 마진은 30베이시스 포인트 하락하여 1.92%에 이릅니다. 총 자산은 $18.3백만 (5.3%) 증가하여 $364.5백만에 도달하였고, 예금은 $11.0백만 (4.2%) 증가하여 $271.7백만에 이릅니다. 회사의 성과는 단기 금리 상승 및 수익 곡선 역전으로 인한 지속적인 도전 과제에 의해 영향을 받았습니다.
CFSB Bancorp a enregistré une perte nette de 6 000 $ (0,00 $ par action) pour le premier trimestre de 2025, comparativement à un revenu net de 123 000 $ (0,02 $ par action) pour le premier trimestre de 2024. Le revenu net d'intérêts a diminué de 169 000 $ (9,2 %) pour atteindre 1,7 million de dollars, avec une marge d'intérêt nette en baisse de 30 points de base à 1,92 %. Les actifs totaux ont augmenté de 18,3 millions de dollars (5,3 %) pour atteindre 364,5 millions de dollars, tandis que les dépôts ont augmenté de 11,0 millions de dollars (4,2 %) pour atteindre 271,7 millions de dollars. La performance de l'entreprise a été impactée par des défis continus dus à l'augmentation des taux d'intérêt à court terme et à l'inversion de la courbe des rendements.
CFSB Bancorp berichtete im ersten Quartal 2025 einen Nettoverlust von $6.000 ($0,00 pro Aktie) im Vergleich zu einem Nettoergebnis von $123.000 ($0,02 pro Aktie) im ersten Quartal 2024. Die Nettozins-Einnahmen sanken um $169.000 (9,2%) auf $1,7 Millionen, wobei die Nettozinsmarge um 30 Basispunkte auf 1,92% fiel. Die Gesamtsumme der Vermögenswerte stieg um $18,3 Millionen (5,3%) auf $364,5 Millionen, während die Einlagen um $11,0 Millionen (4,2%) auf $271,7 Millionen zulegten. Die Leistung des Unternehmens wurde durch anhaltende Herausforderungen aufgrund steigender kurzfristiger Zinssätze und der Inversion der Zinsstrukturkurve beeinträchtigt.
- Total assets increased by $18.3 million (5.3%) YoY
- Deposits grew by $11.0 million (4.2%) YoY
- Interest income increased $481,000 (17.4%)
- Strong asset quality with no non-performing or delinquent loans
- Net loss of $6,000 in Q1 2025 vs net income of $123,000 in Q1 2024
- Net interest margin decreased 30 basis points to 1.92%
- Net interest income declined by $169,000 (9.2%)
- Interest expense increased $650,000 (70.2%)
Insights
This quarterly earnings report reveals concerning trends for CFSB Bancorp. The company reported a
Key challenges include rising funding costs, with interest expense jumping
Asset quality remains stable with minimal problem loans, but the shift in deposit mix toward higher-cost CDs and increased FHLB borrowings points to ongoing margin pressure. The efficiency ratio deterioration and minimal revenue growth indicate structural profitability challenges that may persist until interest rates normalize.
Michael E. McFarland, President and Chief Executive Officer, states "Returns on equity and assets in the first quarter of 2025 were significantly lower than our long-term performance, reflecting the ongoing challenges from the increase in short-term interest rates over the last twenty-four months and a historically long and deep inversion of the yield curve. We have seen the beginning of rate reductions from the Federal Reserve and look forward to a flat yield curve. As assets continue to reprice the challenges on competitive deposit rates should start to diminish as the market adjusts."
First Quarter Operating Results
Net interest income, on a fully tax-equivalent basis, decreased by
Net interest income, on a fully tax-equivalent basis, increased by
The Company recorded reversals of the provision for credit losses of
Non-interest income increased
Non-interest income increased
Non-interest expense decreased
Non-interest expense increased
The Company recorded an income tax expense of
Balance Sheet
Assets: At September 30, 2024, total assets increased
Asset Quality: At September 30, 2024, there were four one- to four-family loans totaling
Liabilities: Deposits increased by
Stockholders' Equity. Total stockholders' equity increased
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
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "assume," "plan," "seek," "expect," "will," "may," "should," "indicate," "would," "contemplate," "continue," "target" and words of similar meaning. These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, demand for loan products, deposit flows, changes in the interest rate environment, the effects of inflation, general economic conditions or conditions within the securities markets, monetary and fiscal policies of the
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 2024 vs. | Sep 2024 vs. | ||||||||||||||||
2024 | 2024 | 2023 | Jun 2024 | Sep 2023 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and due from banks | $ | 1,157 | $ | 1,339 | $ | 1,394 | (13.6) | % | (17.0) | % | ||||||||||
Short-term investments | 29,510 | 25,620 | 4,724 | 15.2 | % | 524.7 | % | |||||||||||||
Total cash and cash equivalents | 30,667 | 26,959 | 6,118 | 13.8 | % | 401.3 | % | |||||||||||||
Securities available for sale, at fair value | 108 | 113 | 139 | (4.4) | % | (22.3) | % | |||||||||||||
Securities held to maturity, at amortized cost, net of allowance for credit losses | 146,853 | 146,994 | 147,537 | (0.1) | % | (0.5) | % | |||||||||||||
Loans: | ||||||||||||||||||||
1-4 family | 135,834 | 138,005 | 137,743 | (1.6) | % | (1.4) | % | |||||||||||||
Multifamily | 11,961 | 12,066 | 12,883 | (0.9) | % | (7.2) | % | |||||||||||||
Second mortgages and home equity lines of credit | 3,232 | 3,372 | 3,129 | (4.2) | % | 3.3 | % | |||||||||||||
Commercial | 16,829 | 16,833 | 20,110 | (0.0) | % | (16.3) | % | |||||||||||||
Total mortgage loans on real estate | 167,856 | 170,276 | 173,865 | (1.4) | % | (3.5) | % | |||||||||||||
Consumer | 71 | 65 | 65 | 9.2 | % | 9.2 | % | |||||||||||||
Home improvement | 1,981 | 2,037 | 2,180 | (2.7) | % | (9.1) | % | |||||||||||||
Total loans | 169,908 | 172,378 | 176,110 | (1.4) | % | (3.5) | % | |||||||||||||
Allowance for credit losses | (1,504) | (1,553) | (1,649) | (3.2) | % | (8.8) | % | |||||||||||||
Net deferred loan costs and fees, and purchase premiums | (381) | (387) | (381) | (1.6) | % | 0.0 | % | |||||||||||||
Loans, net | 168,023 | 170,438 | 174,080 | (1.4) | % | (3.5) | % | |||||||||||||
Federal Home Loan Bank of | 704 | 704 | 405 | 0.0 | % | 73.8 | % | |||||||||||||
Premises and equipment, net | 3,186 | 3,246 | 3,354 | (1.8) | % | (5.0) | % | |||||||||||||
Accrued interest receivable | 1,354 | 1,398 | 1,395 | (3.1) | % | (2.9) | % | |||||||||||||
Bank-owned life insurance | 10,739 | 10,670 | 10,468 | 0.6 | % | 2.6 | % | |||||||||||||
Deferred tax asset | 1,243 | 1,245 | 1,132 | (0.2) | % | 9.8 | % | |||||||||||||
Operating lease right of use asset | 836 | 860 | 930 | (2.8) | % | (10.1) | % | |||||||||||||
Other assets | 773 | 812 | 663 | (4.8) | % | 16.6 | % | |||||||||||||
Total assets | $ | 364,486 | $ | 363,439 | $ | 346,221 | 0.3 | % | 5.3 | % | ||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest-bearing NOW and demand | $ | 31,190 | $ | 34,124 | $ | 30,918 | (8.6) | % | 0.9 | % | ||||||||||
Interest-bearing NOW and demand | 29,200 | 28,262 | 30,902 | 3.3 | % | (5.5) | % | |||||||||||||
Regular and other | 54,659 | 54,192 | 60,389 | 0.9 | % | (9.5) | % | |||||||||||||
Money market accounts | 22,387 | 21,956 | 24,877 | 2.0 | % | (10.0) | % | |||||||||||||
Term certificates | 134,234 | 132,307 | 113,587 | 1.5 | % | 18.2 | % | |||||||||||||
Total deposits | 271,670 | 270,841 | 260,673 | 0.3 | % | 4.2 | % | |||||||||||||
Federal Home Loan Bank of | 10,350 | 10,350 | 3,250 | 0.0 | % | 218.5 | % | |||||||||||||
Mortgagors' escrow accounts | 1,590 | 1,525 | 1,626 | 4.3 | % | (2.2) | % | |||||||||||||
Operating lease liability | 855 | 877 | 941 | (2.5) | % | (9.1) | % | |||||||||||||
Accrued expenses and other liabilities | 3,986 | 3,796 | 3,834 | 5.0 | % | 4.0 | % | |||||||||||||
Total liabilities | 288,451 | 287,389 | 270,324 | 0.4 | % | 6.7 | % | |||||||||||||
Stockholders' Equity: | ||||||||||||||||||||
Common stock | 65 | 65 | 65 | 0.0 | % | 0.0 | % | |||||||||||||
Additional paid-in capital | 28,220 | 28,139 | 27,896 | 0.3 | % | 1.2 | % | |||||||||||||
Treasury stock | (195) | (78) | - | 150.0 | % | 100.0 | % | |||||||||||||
Retained earnings | 50,220 | 50,226 | 50,316 | (0.0) | % | (0.2) | % | |||||||||||||
Accumulated other comprehensive loss, net of tax | - | (1) | (3) | (100.0) | % | (100.0) | % | |||||||||||||
Unearned compensation - ESOP | (2,275) | (2,301) | (2,377) | (1.1) | % | (4.3) | % | |||||||||||||
Total stockholders' equity | 76,035 | 76,050 | 75,897 | (0.0) | % | 0.2 | % | |||||||||||||
Total liabilities and stockholders' equity | $ | 364,486 | $ | 363,439 | $ | 346,221 | 0.3 | % | 5.3 | % | ||||||||||
CFSB Bancorp, Inc. and Subsidiary | ||||||||||||
Consolidated Statements of Net (Loss) Income (Unaudited) | ||||||||||||
(In thousands, except per share data) | ||||||||||||
For the Three Months Ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2024 | 2024 | 2023 | ||||||||||
Interest and dividend income: | ||||||||||||
Interest and fees on loans | $ | 1,784 | $ | 1,763 | $ | 1,722 | ||||||
Interest and dividends on debt securities: | ||||||||||||
Taxable | 1,028 | 999 | 868 | |||||||||
Tax-exempt | 77 | 84 | 97 | |||||||||
Interest on short-term investments and certificates of deposit | 330 | 282 | 45 | |||||||||
Total interest and dividend income | 3,219 | 3,128 | 2,732 | |||||||||
Interest expense: | ||||||||||||
Deposits | 1,457 | 1,389 | 876 | |||||||||
Borrowings | 119 | 118 | 50 | |||||||||
Total interest expense | 1,576 | 1,507 | 926 | |||||||||
Net interest income | 1,643 | 1,621 | 1,806 | |||||||||
Reversal of credit losses for securities held to maturity | (15) | (29) | (43) | |||||||||
Reversal of credit losses for off-balance sheet exposures | (8) | 5 | (13) | |||||||||
Reversal of credit losses for loans | (48) | (8) | (110) | |||||||||
Net interest income after reversal of credit losses | 1,714 | 1,653 | 1,972 | |||||||||
Non-interest income: | ||||||||||||
Customer service fees | 41 | 37 | 40 | |||||||||
Income on bank-owned life insurance | 69 | 66 | 66 | |||||||||
Other income | 60 | 63 | 54 | |||||||||
Total non-interest income | 170 | 166 | 160 | |||||||||
Non-interest expenses: | ||||||||||||
Salaries and employee benefits | 1,096 | 1,030 | 1,144 | |||||||||
Occupancy and equipment | 251 | 225 | 254 | |||||||||
Advertising | 36 | 34 | 38 | |||||||||
Data processing | 94 | 82 | 89 | |||||||||
Deposit insurance | 34 | 34 | 33 | |||||||||
Other general and administrative | 360 | 360 | 358 | |||||||||
Total non-interest expenses | 1,871 | 1,765 | 1,916 | |||||||||
Income before income taxes | 13 | 54 | 216 | |||||||||
Provision (benefit) for income taxes | 19 | (106) | 93 | |||||||||
Net (loss) income | $ | (6) | $ | 160 | $ | 123 | ||||||
Net (loss) income per share: | ||||||||||||
Basic | $ | 0.00 | $ | 0.03 | $ | 0.02 | ||||||
Diluted | $ | 0.00 | $ | 0.03 | $ | 0.02 | ||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 6,294,603 | 6,307,261 | 6,282,203 | |||||||||
Diluted | 6,294,603 | 6,307,261 | 6,282,203 | |||||||||
CFSB Bancorp, Inc. and Subsidiary | |||||||||||||||||||||||||||||||||||
Average Balances and Yields, Fully Tax-Equivalent Basis (Unaudited) | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Average Balance and Yields | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||||||||||
Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans | $ | 171,488 | $ | 1,784 | 4.16 | % | $ | 172,191 | $ | 1,763 | 4.10 | % | $ | 176,668 | $ | 1,722 | 3.90 | % | |||||||||||||||||
Securities (1) | 147,649 | 1,125 | 3.05 | % | 148,748 | 1,105 | 2.97 | % | 149,259 | 991 | 2.66 | % | |||||||||||||||||||||||
Cash and short-term investments | 26,873 | 330 | 4.91 | % | 20,266 | 282 | 5.57 | % | 3,852 | 45 | 4.67 | % | |||||||||||||||||||||||
Total interest-earning assets | 346,010 | 3,239 | 3.74 | % | 341,205 | 3,150 | 3.69 | % | 329,779 | 2,758 | 3.35 | % | |||||||||||||||||||||||
Non-interest-earning assets | 17,170 | 17,059 | 16,655 | ||||||||||||||||||||||||||||||||
Total assets | $ | 363,180 | $ | 358,264 | $ | 346,434 | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 29,753 | $ | 4 | 0.05 | % | $ | 29,463 | $ | 4 | 0.05 | % | $ | 29,912 | $ | 4 | 0.05 | % | |||||||||||||||||
Savings deposits | 54,004 | 14 | 0.10 | % | 55,173 | 14 | 0.10 | % | 62,446 | 16 | 0.10 | % | |||||||||||||||||||||||
Money market deposits | 22,365 | 14 | 0.25 | % | 22,332 | 13 | 0.23 | % | 26,271 | 17 | 0.26 | % | |||||||||||||||||||||||
Certificates of deposit | 133,142 | 1,425 | 4.28 | % | 129,340 | 1,358 | 4.20 | % | 111,812 | 839 | 3.00 | % | |||||||||||||||||||||||
Total interest-bearing deposits | 239,264 | 1,457 | 2.44 | % | 236,308 | 1,389 | 2.35 | % | 230,441 | 876 | 1.52 | % | |||||||||||||||||||||||
FHLB advances | 10,350 | 119 | 4.60 | % | 10,350 | 118 | 4.56 | % | 3,571 | 50 | 5.60 | % | |||||||||||||||||||||||
Total interest-bearing liabilities | 249,614 | 1,576 | 2.53 | % | 246,658 | 1,507 | 2.44 | % | 234,012 | 926 | 1.58 | % | |||||||||||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Non-interest-bearing demand deposits | 31,748 | 29,790 | 30,971 | ||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 5,809 | 6,011 | 5,740 | ||||||||||||||||||||||||||||||||
Total liabilities | 287,171 | 282,459 | 270,723 | ||||||||||||||||||||||||||||||||
Total stockholders' equity | 76,009 | 75,805 | 75,711 | ||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 363,180 | $ | 358,264 | $ | 346,434 | |||||||||||||||||||||||||||||
Net interest income | $ | 1,663 | $ | 1,643 | $ | 1,832 | |||||||||||||||||||||||||||||
Net interest rate spread(2) | 1.21 | % | 1.25 | % | 1.77 | % | |||||||||||||||||||||||||||||
Net interest-earning assets(3) | $ | 96,396 | $ | 94,547 | $ | 95,767 | |||||||||||||||||||||||||||||
Net interest margin(4) | 1.92 | % | 1.93 | % | 2.22 | % | |||||||||||||||||||||||||||||
Cost of deposits(5) | 2.15 | % | 2.09 | % | 1.34 | % | |||||||||||||||||||||||||||||
Cost of funds(6) | 2.24 | % | 2.18 | % | 1.40 | % | |||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 138.62 | % | 138.33 | % | 140.92 | % | |||||||||||||||||||||||||||||
(1) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of
(2) Net interest rate spread represents the difference between the weighted average yield earned on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.
(5) Cost of deposits represents the total interest paid on deposits, divided by total interest-bearing deposits plus total non-interest-bearing deposits.
(6) Cost of funds represents the total interest paid on liabilities, divided by total interest-bearing liabilities plus total non-interest-bearing deposits.
CFSB Bancorp, Inc. and Subsidiary | ||||||||||||
Reconciliation of Fully Tax-Equivalent Income | ||||||||||||
(Unaudited) (In thousands) | ||||||||||||
For the Three Months Ended | ||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||
Securities interest income (no tax adjustment) | $ | 1,105 | $ | 1,083 | $ | 965 | ||||||
Tax-equivalent adjustment | 20 | 22 | 26 | |||||||||
Securities (tax-equivalent basis) | $ | 1,125 | $ | 1,105 | $ | 991 | ||||||
Net interest income (no tax adjustment) | $ | 1,643 | $ | 1,621 | $ | 1,806 | ||||||
Tax-equivalent adjustment | 20 | 22 | 26 | |||||||||
Net interest income (tax-equivalent adjustment) | $ | 1,663 | $ | 1,643 | $ | 1,832 | ||||||
View original content:https://www.prnewswire.com/news-releases/cfsb-bancorp-inc-announces-fiscal-first-quarter-2025-financial-results-302290465.html
SOURCE CFSB Bancorp, Inc.
FAQ
What was CFSB's net income for Q1 2025?
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