CFSB Bancorp, Inc. Announces 2023 First Quarter Financial Results
QUINCY, Mass., Oct. 21, 2022 /PRNewswire/ -- CFSB Bancorp, Inc. (NASDAQ: CFSB) (the "Company"), the holding company for Colonial Federal Savings Bank (the "Bank"), reported net income of
President and Chief Executive Officer Michael E. McFarland said "In the quarter ended September 30, 2022 we saw both income and loan volume increase. We also saw improvements in both net interest-earning assets and net interest margin. Interest-earning assets were
Income Statement Analysis
Interest and dividend income increased
Interest expense decreased
Net interest income increased
No provision for loan losses for the three months ended September 30, 2022 was required to be recorded. A provision for loan losses of
Non-interest income decreased
Non-interest expense increased
The Company recorded a provision for income taxes of
Balance Sheet Analysis
Total assets decreased
The Company adopted Accounting Standards Update ("ASU") 2016-02-Leases (Topic 842) on July 1, 2022 and began recognizing operating leases on its consolidated balance sheet by recording a Right-Of-Use asset, representing the Company's legal right to use the leased assets and a net lease liability, representing the Company's legal obligation to make these lease payments.
Cash and cash equivalents decreased
Net loans increased
Securities held to maturity increased
Total liabilities decreased
Deposits decreased
Total stockholders' equity increased
Asset Quality
The allowance for loan losses was
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 increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, the continuing impact of the COVID-19 pandemic on our business and results of operation; the current or anticipated impact of military conflict, terrorism or other geopolitical events; 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 and 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.
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.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release also contains certain supplemental Non-GAAP information that the Company's management uses in its analysis of the Company's financial results. Management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company's financial results for the periods presented.
The Company provides efficiency ratios in the table of selected data. These measures are utilized by regulators and market analysts to evaluate a company's financial condition and, therefore, management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see "Reconciliation of GAAP to Non-GAAP Financial Measures" below.
CFSB Bancorp, Inc. and Subsidiary | ||||||||
September 30, | June 30, | |||||||
Assets | ||||||||
Cash and due from banks | $ | 1,481 | $ | 1,609 | ||||
Short-term investments | 14,260 | 30,058 | ||||||
Total cash and cash equivalents | 15,741 | 31,667 | ||||||
Securities available for sale, at fair value | 183 | 199 | ||||||
Securities held to maturity, at amortized cost, fair value of | 152,141 | 145,239 | ||||||
Federal Home Loan Bank stock, at cost | 191 | 191 | ||||||
Loans, net of allowance for loan losses of | 175,245 | 172,593 | ||||||
Premises and equipment, net | 3,310 | 3,334 | ||||||
Accrued interest receivable | 1,306 | 1,265 | ||||||
Bank-owned life insurance | 10,208 | 10,144 | ||||||
Deferred tax asset | 1,139 | 1,079 | ||||||
Operating lease right of use asset | 1,021 | - | ||||||
Other assets | 457 | 472 | ||||||
Total assets | $ | 360,942 | $ | 366,183 | ||||
Liabilities and Stockholders' Equity | ||||||||
Deposits | ||||||||
Non-interest bearing | $ | 34,148 | $ | 31,168 | ||||
Interest-bearing | 245,904 | 255,907 | ||||||
Total deposits | 280,052 | 287,075 | ||||||
Mortgagors' escrow accounts | 1,618 | 1,555 | ||||||
Operating lease liability | 1,023 | - | ||||||
Accrued expenses and other liabilities | 3,332 | 3,303 | ||||||
Total liabilities | 286,025 | 291,933 | ||||||
Stockholders' Equity | ||||||||
Preferred Stock, $.01 par value, 10,000,000 shares authorized as | ||||||||
of September 30, 2022 and June 30, 2022, none issued and | ||||||||
outstanding as of September 30, 2022 and June 30, 2022 | - | - | ||||||
Common Stock, $.01 par value, 90,000,000 shares authorized as | ||||||||
of September 30, 2022 and June 30, 2022, 6,521,642 issued | ||||||||
and outstanding as of September 30, 2022 and June 30, 2022 | 65 | 65 | ||||||
Additional paid-in capital | 27,718 | 27,720 | ||||||
Retained earnings | 49,615 | 48,970 | ||||||
Accumulated other comprehensive income (loss) | (1) | - | ||||||
Unearned compensation - ESOP | (2,480) | (2,505) | ||||||
Total stockholders' equity | 74,917 | 74,250 | ||||||
Total liabilities and stockholders' equity | $ | 360,942 | $ | 366,183 |
CFSB Bancorp, Inc. and Subsidiary | |||||||
Three Months Ended | |||||||
2022 | 2021 | ||||||
Interest and dividend income: | |||||||
Interest and fees on loans | $ | 1,619 | $ | 1,654 | |||
Interest and dividends on debt securities: | |||||||
Taxable | 751 | 467 | |||||
Tax exempt | 108 | 123 | |||||
Interest on short-term investments and certificates of deposit | 127 | 17 | |||||
Total interest and dividend income | 2,605 | 2,261 | |||||
Interest expense: | |||||||
Deposits | 242 | 274 | |||||
Short-term borrowings | - | 4 | |||||
Total interest expense | 242 | 278 | |||||
Net interest income | 2,363 | 1,983 | |||||
Provision for loan losses | - | 15 | |||||
Net interest income, after provision for loan losses | 2,363 | 1,968 | |||||
Non-interest income: | |||||||
Customer service fees | 37 | 30 | |||||
Income on bank-owned life insurance | 64 | 60 | |||||
Gain on sale of securities available for sale | - | 48 | |||||
Other income | 99 | 104 | |||||
Total non-interest income | 200 | 242 | |||||
Non-interest expense: | |||||||
Salaries and employee benefits | 1,018 | 967 | |||||
Occupancy and equipment | 243 | 210 | |||||
Advertising | 39 | 41 | |||||
Data processing | 94 | 80 | |||||
Deposit insurance | 21 | 22 | |||||
Other general and administrative | 333 | 318 | |||||
Total non-interest expense | 1,748 | 1,638 | |||||
Income before income taxes | 815 | 572 | |||||
Provision for income taxes | 170 | 100 | |||||
Net income | $ | 645 | $ | 472 | |||
Earnings per share: | |||||||
Basic and diluted | $ | 0.10 | N/A | ||||
Weighted average shares: | |||||||
Basic and diluted | 6,272,838 | N/A |
CFSB Bancorp, Inc. and Subsidiary | |||||
At or for the years ended | |||||
September 30, | |||||
2022 | 2021 | ||||
Performance Ratios: | |||||
Return on average assets | 0.71 % | 0.56 % | |||
Return on average equity | 3.39 % | 3.86 % | |||
Interest rate spread (1) | 2.62 % | 2.37 % | |||
Net interest margin (2) | 2.72 % | 2.46 % | |||
Non-interest expense to average assets | 1.93 % | 1.95 % | |||
Efficiency ratio (3) | 68.20 % | 73.62 % | |||
Average interest-earning assets to average interest-bearing liabilities | 138.18 % | 126.99 % | |||
Average equity to average assets | 20.97 % | 14.53 % | |||
Capital Ratios: | |||||
Total capital to risk-weighted assets | 34.28 % | 30.12 % | |||
Tier 1 capital to risk-weighted assets | 33.37 % | 29.09 % | |||
Common equity tier 1 capital to risk-weighted assets | 33.37 % | 29.09 % | |||
Tier 1 capital to average assets | 17.69 % | 14.55 % | |||
Asset Quality Ratios: | |||||
Allowance for loan losses as a percentage of total loans | 0.99 % | 1.00 % | |||
Allowance for loan losses as a percentage of non-performing loans | NM | NM | |||
Net (charge-offs) recoveries to average outstanding loans during the year | - | % | - | % | |
Non-performing loans as a percentage of total loans | - | % | - | % | |
Non-performing loans as a percentage of total assets | - | % | - | % | |
Total non-performing assets as a percentage of total assets | - | % | - | % | |
(1) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | |||||
(2) Represents net interest income as a percentage of average interest-earning assets. | |||||
(3) Represents non-interest expenses divided by the sum of net interest income and non-interest income. |
Reconciliation of GAAP to Non-GAAP Measures by Quarter | |||||||||
For the quarters ended | |||||||||
September 30, | |||||||||
2022 | 2021 | ||||||||
Net interest income | $ | 2,363 | $ | 1,983 | |||||
Non-interest income | 200 | 242 | |||||||
Total Income | 2,563 | 2,225 | |||||||
Non-interest income | 1,748 | 1,638 | |||||||
Efficiency ratio | 68.20 | % | 73.62 | % |
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SOURCE Colonial Federal Savings Bank