CFSB BANCORP, INC. ANNOUNCES FISCAL SECOND QUARTER 2023 FINANCIAL RESULTS

Rhea-AI Summary

CFSB Bancorp reported a net income of $341,000 ($0.05 per share) for the three months ended December 31, 2022, a decline from $645,000 ($0.10 per share) in the previous quarter, but an increase compared to $234,000 for the same quarter in 2021. For the six months, net income rose to $986,000 ($0.16 per share), up from $706,000 year-over-year. Net interest income decreased slightly by 1.0% to $2.4 million due to rising deposit costs. Non-interest income dropped 24.0% from the prior quarter. Total assets decreased by 1.1% to $356.8 million, with loans growing 34.8% in commercial real estate. Deposits fell 1.6%.

Positive

• Net income for six months increased by $280,000, or 39.6%, year-over-year.
• Commercial real estate loans grew by $5.4 million, or 34.8% in the quarter.

Negative

• Net income for the quarter decreased by $304,000, or 47.1%, from the prior quarter.
• Non-interest income dropped by $48,000, or 24.0%, compared to the previous quarter.
• Total deposits decreased by $4.6 million, or 1.6%, in the quarter.

QUINCY, Mass., Jan. 24, 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 $341,000, or $0.05 per basic and diluted share, for the three months ended December 31, 2022 compared to net income of $645,000, or $0.10 per basic and diluted share, for the three months ended September 30, 2022 and net income of $234,000 for the three months ended December 31, 2021.

For the six months ended December 31, 2022, net income was $986,000, or $0.16 per basic and diluted share, compared to net income of $706,000, for the six months ended December 31, 2021. Net income on a non-GAAP basis, excluding certain nonrecurring items, was $666,000, for the six months ended December 31, 2021. 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 are pleased to see loan growth during the quarter and continued improvement in interest-earning asset yields. We are proud of the Bank's accomplishments during calendar year 2022, and I want to thank our employees for their continued efforts and commitment. Looking forward, we are likely to see headwinds in deposit pricing in our highly competitive banking environment. We will continue to focus on pricing and expense discipline in the current rising interest rate and inflationary environment."

Second Quarter Operating Results
Net interest income, on a fully tax-equivalent basis decreased by $25,000, or 1.0%, to $2.4 million for the three months ended December 31, 2022 from $2.4 million for the three months ended September 30, 2022. This decrease was primarily due to a 41 basis point increase in the average rate paid for certificates of deposit, partially offset by a 13 basis point increase in the average yield earned for interest-earning assets. The interest earned on loans increased $38,000, to $1.7 million for the three months ended December 31, 2022, from $1.6 million for the three months ended September 30, 2022. The interest earned on loans benefitted from rising interest rates and from an increase in the average balance of loans of $1.0 million during the second fiscal quarter. The net interest margin increased by 1 basis point to 2.77% for the fiscal second quarter from 2.76% for the fiscal first quarter.

Net interest income, on a fully tax-equivalent basis increased by $324,000, or 15.9%, to $2.4 million for the three months ended December 31, 2022, from $2.0 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin increased by 27 basis points to 2.77% from 2.50%. The improvement reflects growth in the average balance of loans and securities of $5.1 million and $33.8 million, respectively, from the prior year quarter and a 357 basis point increase in the interest earned on cash and short-term investments due to the higher interest rate environment. Partially offsetting the improvement in interest and dividend income was a 15 basis point increase in the cost of interest-bearing liabilities from the prior year quarter due primarily to increased interest paid on certificates of deposit in the higher interest rate environment.

The Company did not record a provision for loan losses for the quarter ended December 31, 2022 or September 30, 2022, as loan growth was offset by decreases in the unallocated portion of the allowance for loan losses. A provision for loan losses of $10,000 was recorded during the three months ended December 31, 2021, driven by loan growth. The allowance for loan losses as a percentage of total loans was 0.97%, 0.99% and 1.00% at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

Non-interest income decreased $48,000, or 24.0%, to $152,000 for the quarter ended December 31, 2022 from $200,000 in the quarter ended September 30, 2022, due to a decrease of $46,000 in other income. The prior quarter included $50,000 for the annual collection of safe deposit box fees.

Non-interest income decreased $9,000, or 5.6%, to $152,000 for the quarter ended December 31, 2022, from $161,000 for the quarter ended December 31, 2021, principally due to a decrease of $12,000 in income on bank-owned life insurance.

Non-interest expenses increased $339,000, or 19.4%, to $2.1 million for the quarter ended December 31, 2022 from $1.7 million for the quarter ended September 30, 2022. The increase was due to an increase in salaries and employee benefits expense of $232,000, or 22.8%, primarily attributed to a discretionary year-end bonus awarded to employees in the quarter ended December 31, 2022. In addition, advertising expense increased $32,000 from the prior quarter due to employment agency fees, and other general and administrative expense increased by $72,000 from the prior quarter due to increases in expenses related to public filings, uncollectable check expense and directors' compensation expense.

Non-interest expenses increased $191,000, or 10.1%, to $2.1 million for the quarter ended December 31, 2022 from $1.9 million for the quarter ended December 31, 2021. The increase was principally due to an increase in salaries and employee benefits of $83,000, attributed to ESOP expenses incurred in the current year, an increase in headcount, and increases to employee salaries and health insurance benefits.

Income tax expense was $65,000 for the three months ended December 31, 2022, compared to $170,000 for the three months ended September 30, 2022 and $32,000 for the three months ended December 31, 2021. The decrease in the effective tax rate for the three months ended December 31, 2022, compared to the three months ended September 30, 2022 was due to increases in tax-exempt municipal securities income. The increase in the effective tax rate for the three months ended December 31, 2022, compared to the three months ended December 31, 2021 was due to decreases in tax-exempt municipal securities income and decreases in bank-owned life insurance income.

Year-to-Date Operating Results
Net interest income increased on a fully tax-equivalent basis by $702,000, or 17.3%, to $4.8 million for the six months ended December 31, 2022 from $4.1 million for the six months ended December 31, 2021. Total interest-earning assets income increased $702,000 from the prior year period due to an increase in the average balance of securities and higher average yields earned on securities and cash and short-term investments. An increase in the average balance of securities of $38.1 million, or 34.0%, and a 16 basis point increase in the average yield earned on securities contributed to a $550,000 increase in securities income. The interest earned on cash and short-term investments increased $217,000 from the prior year, due to a 270 basis point improvement in the average yield earned due to the higher interest rate environment, partially offset by a $21.7 million decrease in the average balance. Partially offsetting the increase in interest and dividend income was a $47,000 increase in the interest expense. The increase in the interest paid on certificates of deposit of $49,000 from the prior year period contributed to a 5 basis point increase in the cost of interest-bearing liabilities. The net interest margin improved 26 basis points for the six months ended December 31, 2022, to 2.76%, from 2.50% in the prior year.

The Company did not recognize a provision for loan losses for the six months ended December 31, 2022 compared to a provision for loan losses of $25,000 in the prior year period. For the six months ended December 31, 2021, loan growth was the primary contributor to the provision for loan losses.

Non-interest income decreased $65,000, or 15.6%, to $352,000 for the six months ended December 31, 2022 from $417,000 in the prior year period, principally due to a decrease of $48,000 in the gain on sale of securities available for sale and a $22,000 decrease in income on bank-owned life insurance. Excluding the gain on sale of securities available for sale, which management believes is a non-recurring operating activity, non-interest income would have decreased $17,000, or 4.6% from the prior year period.

Non-interest expenses increased $287,000, or 8.1%, to $3.8 million for the six months ended December 31, 2022 from $3.5 million for the six months ended December 31, 2021. Salaries and benefits increased $121,000, or 5.6%, to $2.3 million, due to annual increases to salaries and health insurance of employees, an increase in headcount, and the addition of ESOP expense in the current year. Occupancy and equipment expense increased $80,000, or 19.1%, to $498,000 for the six months ended December 31, 2022 from $418,000 for the six months ended December 31, 2021, due to the renewal of a branch lease in the current fiscal year and for increases to service maintenance contracts. Advertising expense increased $32,000 from the prior year period due to an employment agency fee incurred during the six months ended December 31, 2022. Other general and administrative expense increased $47,000, or 6.8% from the prior year period due to increases in professional fees.

Income tax expense was $235,000 for the six months ended December 31, 2022 compared to income tax expense of $132,000 for the six months ended December 31, 2021.

Balance Sheet
At December 31, 2022, total assets amounted to $356.8 million, compared to $360.9 million at September 30, 2022, a decrease of $4.1 million, or 1.1%, as a $5.2 million decrease in total cash and cash equivalents and a $2.7 million decrease in securities held to maturity were partially offset by a $3.4 million increase in total loans from the prior quarter. Commercial real estate loans were the main contributor to total loan growth, as commercial real estate loans grew $5.4 million, or 34.8%, to $21.1 million at December 31, 2022, from $15.6 million at September 30, 2022. Deposits decreased by $4.6 million, or 1.6%, in the quarter, as the Bank is experiencing decreases of customer deposits with the absence of government stimulus and increases in inflation, in addition to mix-shift changes by depositors to higher-yielding term certificates due to the higher interest rate environment.

Total stockholders' equity was $75.3 million at December 31, 2022 compared to $74.9 million at September 30, 2022. The increase of $362,000 reflects net income of $341,000 and earned ESOP compensation of $26,000, partially offset by other comprehensive losses of $1,000.

Total assets at December 31, 2022 decreased $5.0 million, or 1.4%, from $361.8 million at December 31, 2021. Contributing to the decrease in assets was a decrease of $37.3 million in cash and cash equivalents to $10.6 million at December 31, 2022 from $47.8 million at December 31, 2021, partially offset by a $26.5 million increase in securities held to maturity and $5.7 million in loan growth. Commercial real estate loans increased by $5.6 million, or 35.9%, as we focused on diversifying our loan mix. Total deposits decreased by $32.1 million, or 10.4%, to $275.5 million at December 31, 2022 from $307.6 million at December 31, 2021, principally due to the utilization of subscription funds held in escrow to purchase shares in the initial public offering.

Total stockholders' equity was $75.3 million at December 31, 2022 compared to $49.3 million at December 31, 2021. The increase of $25.9 million relates mainly to net proceeds from the initial public offering of $27.8 million and net income earned during the previous twelve months of $622,000, partially offset by the establishment of the Company's ESOP plan, net of earned compensation of $2.5 million.

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," "believe," "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 the impact of the COVID-19 pandemic or any other pandemic on our operations and financial results and those of our customers, 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 demand for our products and services, legislative, accounting, tax and regulatory changes, the current or anticipated impact of military conflict, terrorism or other geopolitical events, a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's financial condition and results of operations and the business in which the Company and the Bank are engaged, the failure to maintain current technologies and the failure to retain or attract employees.

You should not place undue reliance on forward-looking statements. CFSB Bancorp, Inc. undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

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
Consolidated Balance Sheets (Unaudited)
(In thousands, except per share data)
														% Change
		December 31,				September 30,				December 31,				Dec 2022 vs.				Dec 2022 vs.
		2022				2022				2021				Sep 2022				Dec 2021
Assets
Cash and due from banks		$	1,502			$	1,481			$	1,475				1.4	%			1.8	%
Short-term investments			9,072				14,260				46,358				(36.4)	%			(80.4)	%
Total cash and cash equivalents			10,574				15,741				47,833				(32.8)	%			(77.9)	%
Certificates of deposit			-				-				980			- %					(100.0)	%
Securities available for sale, at fair value			168				183				254				(8.2)	%			(33.9)	%
Securities held to maturity, at amortized cost			149,473				152,141				122,931				(1.8)	%			21.6	%
Loans:
1-4 family			140,898				143,417				139,079				(1.8)	%			1.3	%
Multifamily			13,239				13,055				16,173				1.4	%			(18.1)	%
Second mortgages and home equity lines of credit			2,590				2,514				2,162				3.0	%			19.8	%
Construction			600				415				-				44.6	%		- %
Commercial			21,077				15,639				15,508				34.8	%			35.9	%
Total mortgage loans on real estate			178,404				175,040				172,922				1.9	%			3.2	%
Consumer			63				71				111				(11.3)	%			(43.2)	%
Home improvement			2,232				2,231				1,999				0.0	%			11.7	%
Total loans			180,699				177,342				175,032				1.9	%			3.2	%
Allowance for loan losses			(1,747)				(1,747)				(1,747)				0.0	%			0.0	%
Net deferred loan costs and fees, and purchase premiums			(383)				(350)				(354)				9.4	%			8.2	%
Loans, net			178,569				175,245				172,931				1.9	%			3.3	%
Federal Home Loan Bank of Boston stock, at cost			191				191				453				0.0	%			(57.8)	%
Premises and equipment, net			3,272				3,310				3,337				(1.1)	%			(1.9)	%
Accrued interest receivable			1,303				1,306				1,112				(0.2)	%			17.2	%
Bank-owned life insurance			10,271				10,208				10,008				0.6	%			2.6	%
Deferred tax asset			1,001				1,139				592				(12.1)	%			69.1	%
Operating lease right of use asset			999				1,021				-				(2.2)	%		- %
Other assets			1,012				457				1,398				121.4	%			(27.6)	%
Total assets		$	356,833			$	360,942			$	361,829				(1.1)	%			(1.4)	%
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing NOW and demand		$	32,618			$	34,148			$	52,378				(4.5)	%			(37.7)	%
Interest bearing NOW and demand			32,241				32,791				33,082				(1.7)	%			(2.5)	%
Regular and other			69,924				74,703				71,975				(6.4)	%			(2.8)	%
Money market accounts			37,470				43,349				41,173				(13.6)	%			(9.0)	%
Term certificates			103,209				95,061				108,952				8.6	%			(5.3)	%
Total deposits			275,462				280,052				307,560				(1.6)	%			(10.4)	%
Federal Home Loan Bank of Boston advances			-				-				288			- %					(100.0)	%
Mortgagors' escrow accounts			1,680				1,618				1,650				3.8	%			1.8	%
Operating lease liability			1,003				1,023				-				(2.0)	%		- %
Accrued expenses and other liabilities			3,409				3,332				2,991				2.3	%			14.0	%
Total liabilities			281,554				286,025				312,489				(1.6)	%			(9.9)	%
Stockholders' Equity:
Common stock			65				65				-				0.0	%		- %
Additional paid-in capital			27,714				27,718				-				(0.0)	%		- %
Retained earnings			49,956				49,615				49,334				0.7	%			1.3	%
Accumulated other comprehensive income (loss), net of tax			(2)				(1)				6				100.0	%			(133.3)	%
Unearned compensation - ESOP			(2,454)				(2,480)				-				(1.0)	%		- %
Total stockholders' equity			75,279				74,917				49,340				0.5	%			52.6	%
Total liabilities and stockholders' equity		$	356,833			$	360,942			$	361,829				(1.1)	%			(1.4)	%

 

CFSB Bancorp, Inc. and Subsidiary
Consolidated Statements of Net 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,
		2022				2022				2021				2022				2021
Interest and dividend income:
Interest and fees on loans		$	1,657			$	1,619			$	1,640			$	3,276			$	3,294
Interest and dividends on debt securities:
Taxable			795				751				492				1,546				959
Tax-exempt			106				108				120				214				243
Interest on short-term investments and certificates of deposit			123				127				16				250				33
Total interest and dividend income			2,681				2,605				2,268				5,286				4,529
Interest expense:
Deposits			340				242				255				582				529
Borrowings			-				-				2				-				6
Total interest expense			340				242				257				582				535
Net interest income			2,341				2,363				2,011				4,704				3,994
Provision for loan losses			-				-				10				-				25
Net interest income after provision for loan losses			2,341				2,363				2,001				4,704				3,969
Non-interest income:
Customer service fees			36				37				31				73				61
Income on bank-owned life insurance			63				64				75				127				149
Gain on sale of securities available for sale			-				-				-				-				48
Other income			53				99				55				152				159
Total non-interest income			152				200				161				352				417
Non-interest expenses:
Salaries and employee benefits			1,250				1,018				1,167				2,268				2,147
Occupancy and equipment			255				243				208				498				418
Advertising			71				39				37				110				78
Data processing			84				94				91				178				171
Deposit insurance			22				21				21				43				43
Other general and administrative			405				333				372				738				691
Total non-interest expenses			2,087				1,748				1,896				3,835				3,548
Income before income taxes			406				815				266				1,221				838
Provision for income taxes			65				170				32				235				132
Net income		$	341			$	645			$	234			$	986			$	706
Net income per share:
Basic and diluted		$	0.05			$	0.10			N/A				$	0.16			N/A
Weighted average shares outstanding:
Basic and diluted			6,274,542				6,271,977			N/A					6,273,260			N/A

 

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, 2022												September 30, 2022												December 31, 2021
	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	$	177,648			$	1,657				3.73	%		$	176,638			$	1,619				3.67	%		$	172,505			$	1,640				3.80	%
Securities (1)		151,249				927				2.45	%			148,774				888				2.39	%			117,441				644				2.19	%
Cash and short-term investments		13,153				123				3.74	%			21,717				127				2.34	%			37,190				16				0.17	%
Total interest-earning assets		342,050				2,707				3.17	%			347,129				2,634				3.04	%			327,136				2,300				2.81	%
Noninterest-earning assets		16,747												15,933												14,340
Total assets	$	358,797											$	363,062											$	341,476
Interest-bearing liabilities:
Interest-bearing demand deposits	$	33,557			$	4				0.05	%		$	33,133			$	4				0.05	%		$	30,903			$	4				0.05	%
Savings deposits		72,708				18				0.10	%			75,444				19				0.10	%			72,233				18				0.10	%
Money market deposits		39,876				27				0.27	%			45,493				31				0.27	%			41,411				27				0.26	%
Certificates of deposit		99,041				291				1.18	%			97,153				188				0.77	%			109,563				206				0.75	%
Total interest-bearing deposits		245,182				340				0.55	%			251,223				242				0.39	%			254,110				255				0.40	%
FHLB advances		-				-				0.00	%			-				-				0.00	%			345				2				2.32	%
Total interest-bearing liabilities		245,182				340				0.55	%			251,223				242				0.39	%			254,455				257				0.40	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		32,887												32,522												34,168
Other noninterest-bearing liabilities		5,554												3,195												3,515
Total liabilities		283,623												286,940												292,138
Total stockholders' equity		75,174												76,122												49,338
Total liabilities and stockholders' equity	$	358,797											$	363,062											$	341,476
Net interest income					$	2,367											$	2,392											$	2,043
Net interest rate spread(2)										2.62	%											2.65	%											2.41	%
Net interest-earning assets(3)	$	96,868											$	95,906											$	72,681
Net interest margin(4)										2.77	%											2.76	%											2.50	%
Cost of deposits (5)										0.49	%											0.34	%											0.35	%
Cost of funds (6)										0.49	%											0.34	%											0.36	%
Ratio of interest-earning assets to interest-bearing liabilities		139.51	%											138.18	%											128.56	%

(1)  Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $26,000, $29,000, and $32,000 for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, 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 Balances and Yields, Fully Tax-Equivalent Basis (Unaudited)
(Dollars in thousands)
	Average Balance and Yields
	Year to Date
	December 31, 2022												December 31, 2021
	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	$	177,143			$	3,276				3.70	%		$	173,701			$	3,294				3.79	%
Securities (1)		150,011				1,817				2.42	%			111,952				1,267				2.26	%
Cash and short-term investments		17,435				250				2.87	%			39,107				33				0.17	%
Total interest-earning assets		344,589				5,343				3.10	%			324,760				4,594				2.83	%
Noninterest-earning assets		16,342												14,117
Total assets	$	360,931											$	338,877
Interest-bearing liabilities:
Interest-bearing demand deposits	$	33,346			$	8				0.05	%		$	30,786			$	8				0.05	%
Savings deposits		74,076				37				0.10	%			71,667				37				0.10	%
Money market deposits		42,685				58				0.27	%			41,266				54				0.26	%
Certificates of deposit		98,097				479				0.98	%			110,088				430				0.78	%
Total interest-bearing deposits		248,204				582				0.47	%			253,807				529				0.42	%
FHLB advances		-				-				0.00	%			456				6				2.63	%
Total interest-bearing liabilities		248,204				582				0.47	%			254,263				535				0.42	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		32,702												32,018
Other noninterest-bearing liabilities		5,127												3,474
Total liabilities		286,033												289,755
Total stockholders' equity		74,898												49,122
Total liabilities and stockholders' equity	$	360,931											$	338,877
Net interest income					$	4,761											$	4,059
Net interest rate spread(2)										2.63	%											2.41	%
Net interest-earning assets(3)	$	96,385											$	70,497
Net interest margin(4)										2.76	%											2.50	%
Cost of deposits (5)										0.41	%											0.37	%
Cost of funds (6)										0.41	%											0.37	%
Ratio of interest-earning assets to interest-bearing liabilities		138.83	%											127.73	%

(1)  Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $57,000 and $65,000 for the six months ended December 31, 2022 and December 31, 2021, respectively.

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

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

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

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

(6)  Cost of funds represents the total interest paid on liabilities, divided by total interest-bearing liabilities plus total noninterest-bearing deposits.

 

CFSB Bancorp, Inc. and Subsidiary
Reconciliation of Fully Tax-Equivalent Income (Unaudited)
(In thousands)
		For the Three Months Ended												For the Six Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2022				2022				2021				2022				2021
Securities interest income (no tax adjustment)		$	901			$	859			$	612			$	1,760			$	1,202
Tax-equivalent adjustment			26				29				32				57				65
Securities (tax-equivalent basis)		$	927			$	888			$	644			$	1,817			$	1,267
Net interest income (no tax adjustment)			2,341				2,363				2,011				4,704				3,994
Tax-equivalent adjustment			26				29				32				57				65
Net interest income (tax-equivalent adjustment)		$	2,367			$	2,392			$	2,043			$	4,761			$	4,059

 

CFSB Bancorp, Inc. and Subsidiary
Selected Financial Highlights (Unaudited)
		At or for the Three Months Ended												At or for the Six Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(In thousands, except share and per share amounts)		2022				2022				2021				2022				2021
Performance Ratios
Return on average assets: (1, 5)
GAAP			0.38	%			0.71	%			0.27	%			0.55	%			0.42	%
Non-GAAP (2)			0.38	%			0.71	%			0.26	%			0.55	%			0.39	%
Return on average equity: (1, 6)
GAAP			1.81	%			3.39	%			1.90	%			2.63	%			2.87	%
Non-GAAP (2)			1.81	%			3.39	%			1.90	%			2.63	%			2.71	%
Noninterest expense to average assets			2.33	%			1.93	%			2.22	%			2.13	%			2.09	%
Total loans to total deposits			65.6	%			63.3	%			56.9	%			65.6	%			56.9	%
Total loans to total assets			50.6	%			49.1	%			48.4	%			50.6	%			48.4	%
Efficiency ratio: (7)
GAAP			83.7	%			68.2	%			87.3	%			75.9	%			80.4	%
Non-GAAP (2)			83.7	%			68.2	%			87.3	%			75.9	%			81.3	%
Capital Ratios
Total capital to risk-weighted assets			32.6	%			34.3	%			29.3	%			32.6	%			29.3	%
Common equity tier 1 capital to risk-weighted assets			31.7	%			33.4	%			28.3	%			31.7	%			28.3	%
Tier 1 capital to risk-weighted assets			31.7	%			33.4	%			28.3	%			31.7	%			28.3	%
Tier 1 capital to average assets (3)			17.4	%			17.7	%			14.4	%			17.4	%			14.4	%
Asset Quality Ratios
Allowance for loan losses as a percentage of total loans (4)			0.97	%			0.99	%			1.00	%			0.97	%			1.00	%
Allowance for loan losses as a percentage of non-performing loans		NM				NM				NM				NM				NM
Net (charge-offs) recoveries to average outstanding loans			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 assets			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Informational Items
Fair value of held to maturity securities		$	132,625			$	133,775			$	133,593			$	132,625			$	133,593
Book value per share (8)		$	11.54			$	11.49			N/A				$	11.54			N/A
Outstanding shares			6,521,642				6,521,642			N/A					6,521,642			N/A

(1)	Annualized for the periods presented.
(2)	See page 8 - Reconciliation of GAAP to Non-GAAP Net Income.
(3)	Average assets calculated on a quarterly and year to date 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 income and non-interest income.
(8)	Represents total stockholders' equity divided by outstanding shares at period end.

 

CFSB Bancorp, Inc. and Subsidiary
Reconciliation of GAAP to Non-GAAP Net Income (Unaudited)
		For the Three Months Ended												For the Six Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(In thousands, except per share amounts)		2022				2022				2021				2022				2021
Net income, GAAP basis		$	341			$	645			$	234			$	986			$	706
Adjustments to GAAP Net Income:
Gain on sale of available for sale securities			-				-				-				-				(48)
Tax effect of adjustments to net income, GAAP basis			-				-				-				-				8
Adjusted net income, non-GAAP basis		$	341			$	645			$	234			$	986			$	666
Earnings per share, non-GAAP basis		$	0.05			$	0.10			N/A				$	0.16			N/A

 

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SOURCE Colonial Federal Savings Bank

FAQ

What was CFSB's net income for the quarter ended December 31, 2022?

CFSB's net income for the quarter ended December 31, 2022, was $341,000.

How does the Q2 2023 net income compare to previous quarters for CFSB?

Q2 2023 net income decreased from $645,000 in Q1 2023 but increased from $234,000 in Q2 2022.

What were the total assets for CFSB as of December 31, 2022?

Total assets for CFSB as of December 31, 2022, amounted to $356.8 million.

How much did CFSB's commercial real estate loans grow in the last quarter?

CFSB's commercial real estate loans grew by $5.4 million, or 34.8%, in the last quarter.

What was the net interest margin for CFSB for the quarter ended December 31, 2022?

The net interest margin for CFSB for the quarter ended December 31, 2022, was 2.77%.