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

Rhea-AI Summary

CFSB Bancorp reported mixed financial results for Q3 2025, with a modest net income of $4,000 ($0.00 per share), improving from a net loss of $162,000 in Q4 2024. For the nine months ended March 31, 2025, the company recorded a net loss of $164,000 ($0.03 per share).

Key highlights:

• Net interest income increased 3.8% to $1.8 million in Q3 2025
• Net interest margin improved to 2.05%, up 7 basis points
• Total assets grew 0.8% to $366.2 million
• Deposits increased 1.1% to $273.8 million

The bank showed positive trends in loan growth and expense reduction, with non-interest expenses decreasing 9.6% to $1.8 million. Asset quality remained strong with only four substandard loans totaling $1.4 million. Management expressed optimism despite market volatility, noting improvements in interest-earning assets and declining deposit costs as certificates of deposits reprice downward.

Positive

• Net interest income increased 6.6% YoY to $1.8M in Q3 2025
• Net interest margin improved to 2.05% in Q3 2025, up from 1.96% YoY
• Interest income grew 8.4% YoY to $254,000 in Q3 2025
• Non-interest expense decreased by 3.2% YoY to $1.8M in Q3 2025
• Total assets increased by $2.8M (0.8%) to $366.2M since June 2024
• Deposits grew by $3.0M (1.1%) to $273.8M since June 2024

Negative

• Net loss of $164,000 for nine months ended March 31, 2025
• Year-to-date net interest income decreased 0.3% to $5.1M
• Net interest margin declined 8 basis points to 1.99% YTD
• Interest expense increased 34.8% YTD
• Four substandard one-to-four family loans totaling $1.4M
• Stockholders' equity decreased by $335,000 to $75.7M

Insights

Financial Analyst

CFSB returns to minimal profitability in Q3 with improving interest margins and reduced expenses, but year-to-date losses exceed prior year.

CFSB Bancorp's Q3 FY2025 results show a return to profitability with net income of $4,000 ($0.00 per share), improving from the prior quarter's loss of $162,000 and year-ago loss of $40,000. However, this minimal profit hasn't offset the year-to-date net loss of $164,000, which exceeds the $127,000 loss reported for the same period last year.

The bank's core operations show positive trends. Net interest income increased 3.8% quarter-over-quarter and 6.6% year-over-year to $1.8 million. Net interest margin improved to 2.05%, up from 1.98% last quarter and 1.96% a year ago, reflecting higher interest rate environment and asset repricing. Non-interest expenses decreased 9.6% quarter-over-quarter and 3.2% year-over-year to $1.8 million, primarily from reduced salary and benefit expenses.

On the balance sheet, total assets grew modestly by 0.8% to $366.2 million since June 2024. Loan growth of $2.8 million and a $1.3 million increase in cash partially offset a $1.1 million decrease in securities. Deposits increased by $3.0 million (1.1%) to $273.8 million, with a shift toward higher-yielding certificates of deposit ($5.8 million increase) as customers sought better rates.

Asset quality metrics show four one-to-four-family loans totaling $1.4 million rated as substandard with a $10,000 allowance for credit losses. The overall allowance for credit losses on loans stands at 0.86% of total loans, compared to 0.83% at year-end 2024.

The bank maintains a strong capital position with $75.7 million in stockholders' equity, though this decreased slightly by $335,000 since June 2024, primarily due to stock repurchases of $495,000 and the year-to-date net loss.

QUINCY, Mass., April 29, 2025 /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 $4,000, or $0.00 per basic and diluted share, for the three months ended March 31, 2025, a net loss of $162,000, or $0.03 per basic and diluted share, for the three months ended December 31, 2024, and a net loss of $40,000, or $0.01 per basic and diluted share, for the three months ended March 31, 2024.

For the nine months ended March 31, 2025, the Company recorded a net loss of $164,000, or $0.03 per basic and diluted share, compared to a net loss of $127,000, or $0.02 per basic and diluted share, for the nine months ended March 31, 2024.

Michael E. McFarland, President and Chief Executive Officer, states, "Returns on interest-earning assets continue to show improvement. The costs of deposit liabilities are showing a slight decline as certificates of deposits continue to reprice downward into shorter term products. Loan growth and expense reduction continue to trend in positive directions. With the volatility of both the financial markets and economic conditions, we continue to remain optimistic."

Third Quarter Operating Results
Net interest income, on a fully tax-equivalent basis, increased by $65,000, or 3.8%, to $1.8 million for the three months ended March 31, 2025, from $1.7 million for the three months ended December 31, 2024. The net interest margin increased by seven basis points to 2.05% for the three months ended March 31, 2025, from 1.98% for the three months ended December 31, 2024. Interest income increased $3,000, or 0.1%, due to a $10,000 increase in interest and dividends on securities, and a $73,000 increase in interest and fees on loans, offset by an $80,000 decrease in interest on cash and short-term investments. Interest expense decreased $62,000, or 3.9%, to $1.5 million for the three months ended March 31, 2025, from $1.6 million for the three months ended December 31, 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 and a decrease in the cost of deposits.

Net interest income, on a fully tax-equivalent basis, increased by $110,000, or 6.6%, to $1.8 million for the three months ended March 31, 2025, from $1.7 million for the three months ended March 31, 2024. The net interest margin increased by nine basis points to 2.05% for the three months ended March 31, 2025, from 1.96% for the three months ended March 31, 2024. Interest income increased $254,000, or 8.4%, due to a $107,000 increase in interest and dividends on securities, an $86,000 increase in interest on cash and short-term investments and a $61,000 increase in interest and fees on loans. Interest expense increased $144,000, or 10.5%, to $1.5 million for the three months ended March 31, 2025, from $1.4 million for the three months ended March 31, 2024. 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, offset by an increase in the average balance of and rate paid on certificates of deposit.

The Company recorded a provision for credit losses of $66,000 for the three months ended March 31, 2025 and reversals of the provision for $79,000 and $20,000, for the three months ended December 31, 2024 and March 31, 2024, respectively. The $5,000 reversal for credit losses for securities held to maturity was primarily due to improvements in economic conditions for the three months ended March 31, 2025. The $26,000 reversal of provision for credit losses for off-balance sheet exposures was primarily due to a decrease of $2.3 million in unfunded commitments at March 31, 2025. The $97,000 provision for credit losses for loans was primarily due to increases in loan originations during the three months ended March 31, 2025. The allowance for credit losses on loans as a percentage of total loans was 0.86%, 0.83%, and 0.91% at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Non-interest income decreased $5,000, or 3.0%, to $160,000 for the three months ended March 31, 2025, from $165,000 for the three months ended December 31, 2024, primarily due to a decrease of $3,000 in income on bank-owned life insurance and a decrease of $3,000 in other income.

Non-interest income decreased $7,000, or 4.2%, to $160,000 for the three months ended March 31, 2025, from $167,000 for the three months ended March 31, 2024, primarily due to a decrease of $4,000 in customer service fees and $3,000 in other income.

Non-interest expense decreased $197,000, or 9.6%, to $1.8 million for the three months ended March 31, 2025, from $2.0 million for the three months ended December 31, 2024. The decrease was primarily due to a $180,000 decrease in salaries and employee benefit expense due to prior quarter employee merit salary and benefit increases, and a decrease of $28,000 in other general and administrative expenses, offset by a $20,000 increase in occupancy and equipment expense.

Non-interest expense decreased $61,000, or 3.2%, to $1.8 million for the three months ended March 31, 2025, from $1.9 million for the three months ended March 31, 2024. The decrease was primarily due to a $79,000 decrease in salaries and employee benefit expense, primarily due to a reduction in pension costs, offset by a $7,000 increase in other general and administrative expenses and a $6,000 increase in data processing costs.

The Company recorded a benefit for income tax of $3,000 for the three months ended March 31, 2025, compared to a provision for income taxes of $51,000 for the three months ended December 31, 2024. The decrease in the provision for income taxes for the three months ended March 31, 2025 was due to the change in the deferred tax and the deferred tax valuation allowance on the charitable contribution carryover.

The Company recorded a benefit for income tax of $3,000 for the three months ended March 31, 2025, compared to a benefit for income taxes of $42,000 for the three months ended March 31, 2024. The increase in the provision for income taxes for the three months ended March 31, 2025 was due to the change in the deferred tax and 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 $13,000, or 0.3%, to $5.1 million for the nine months ended March 31, 2025, from $5.2 million for the nine months ended March 31, 2024. The net interest margin decreased by eight basis points to 1.99% for the nine months ended March 31, 2025, from 2.07% for the nine months ended March 31, 2024. Interest income increased $1.2 million, or 13.8%, due to a $664,000 increase in interest on cash and short-term investments, a $396,000 increase in interest and dividends on securities, and a $130,000 increase in interest and fees on loans. These changes reflect an increased yield on interest-earning assets of 33 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 $18.8 million, partially offset by a decrease in the average balance of loans of $5.2 million and a decrease in the average balance of securities of $1.1 million. Interest expense increased $1.2 million, or 34.8%, due to an increase of $1.2 million in interest expense on interest-bearing deposits, and a $20,000 increase in interest expense on Federal Home Loan Bank ("FHLB") advances. The increase in interest expense on interest-bearing deposits reflected a 56 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 $1.7 million, or 19.3%, increase in the average balance of FHLB advances for the nine months ended March 31, 2025, offset by a 58 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 $84,000 for the nine months ended March 31, 2025, compared to a reversal of the provision for credit losses of $290,000 for the nine months ended March 31, 2024. The $1,000 reversal of the provision of credit losses for off-balance sheet exposures was primarily due to a decrease of $315,000 in unfunded commitments at March 31, 2025. The $49,000 reversal of the provision for credit losses for loans recorded for the nine months ended March 31, 2025 reflected continued strong asset quality, improvements in forecasted economic conditions and lower loan balances. The $35,000 reversal of the provision for credit losses on securities held to maturity for the nine months ended March 31, 2025 was primarily due to improvements in economic conditions.

Non-interest income decreased $4,000, or 0.8%, to $495,000 for the nine months ended March 31, 2025 from $499,000 for the nine months ended March 31, 2024.

Non-interest expense decreased $171,000, or 2.9%, to $5.8 million for the nine months ended March 31, 2025 from $5.9 million for the nine months ended March 31, 2024. The decrease was due to a $176,000 decrease in salaries and employee benefit expense primarily due to a reduction in pension costs and a $15,000 decrease in other general and administrative expenses, partially offset by an $18,000 increase in data processing costs.

The Company recorded a provision for income taxes of $67,000 for the nine months ended March 31, 2025 and 2024, respectively. The provision for income taxes for the nine months ended March 31, 2025 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 March 31, 2025, total assets amounted to $366.2 million, compared to $363.4 million at June 30, 2024, an increase of $2.8 million, or 0.8%. The increase resulted primarily from an increase in cash and cash equivalents of $1.3 million, and an increase in total loans of $2.8 million, offset by a decrease in securities held to maturity of $1.1 million. The increase in cash and cash equivalents was primarily due to increases in deposits of $3.0 million and decreases in securities held to maturity of $1.1 million, offset by increases in loans of $2.8 million.

Asset Quality: At March 31, 2025, there were four one- to four-family loans totaling $1.4 million rated substandard with an allowance for credit loss of $10,000. These loans were rated substandard due to the borrowers' inability to show sufficient rent receipts to support the debt service coverage. There were no loans rated special mention, doubtful or loss at March 31, 2025. There were no charge-offs or recoveries during the nine months ended March 31, 2025.

Liabilities: At March 31, 2025, total liabilities amounted to $290.5 million, compared to $287.4 million at June 30, 2024, an increase of $3.1 million, or 1.1%. Deposits increased by $3.0 million, or 1.1%, to $273.8 million at March 31, 2025 compared to $270.8 million at June 30, 2024. The increase was primarily due to an increase of $5.8 million in higher-yielding term certificates of deposit, offset by a decrease of $1.4 million in non-interest-bearing and interest-bearing NOW and demand accounts and a decrease of $1.0 million in regular accounts. The change in composition and the increase in certificates of deposit was a result of the Bank offering certificate of deposit promotions as customers sought accounts with higher interest rates.

Stockholders' Equity. Total stockholders' equity decreased $335,000 to $75.7 million at March 31, 2025, from $76.1 million at June 30, 2024. The decrease was primarily due to the purchase of Company stock of $495,000 and the net loss for the nine months ended March 31, 2025 of $164,000, offset by the changes in unearned ESOP compensation of $77,000 and stock-based compensation expense of $269,000.

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 Federal Reserve Board; 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; 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; 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.

CFSB Bancorp, Inc. and Subsidiary Consolidated Balance Sheets (Unaudited) (In thousands, except per share data)
		March 31,				June 30,
		2025				2024
Assets:
Cash and due from banks		$	1,205			$	1,339
Short-term investments			27,045				25,620
Total cash and cash equivalents			28,250				26,959
Securities available for sale, at fair value			97				113
Securities held to maturity, at amortized cost, net of allowance for credit losses			145,869				146,994
Federal Home Loan Bank of Boston stock, at cost			704				704
Loans:
1-4 family			138,130				138,005
Multifamily			16,159				12,066
Second mortgages and home equity lines of credit			4,007				3,372
Commercial			14,736				16,833
Total mortgage loans on real estate			173,032				170,276
Consumer			85				65
Home improvement			1,904				2,037
Total loans			175,021				172,378
Allowance for credit losses			(1,504)				(1,553)
Net deferred loan costs and fees, and purchase premiums			(353)				(387)
Loans, net			173,164				170,438
Premises and equipment, net			3,078				3,246
Accrued interest receivable			1,382				1,398
Bank-owned life insurance			10,877				10,670
Deferred tax asset			1,226				1,245
Operating lease right of use asset			788				860
Other assets			765				812
Total assets		$	366,200			$	363,439
Liabilities and Stockholders' Equity:
Deposits:
Non-interest-bearing NOW and demand		$	29,430			$	34,124
Interest-bearing NOW and demand			31,593				28,262
Regular and other			53,178				54,192
Money market accounts			21,495				21,956
Term certificates			138,065				132,307
Total deposits			273,761				270,841
Federal Home Loan Bank of Boston advances			10,350				10,350
Mortgagors' escrow accounts			1,638				1,525
Operating lease liability			811				877
Accrued expenses and other liabilities			3,925				3,796
Total liabilities			290,485				287,389
Stockholders' Equity:
Common stock			65				65
Additional paid-in capital			28,385				28,139
Treasury stock			(573)				(78)
Retained earnings			50,062				50,226
Accumulated other comprehensive loss, net of tax			-				(1)
Unearned compensation - ESOP			(2,224)				(2,301)
Total stockholders' equity			75,715				76,050
Total liabilities and stockholders' equity		$	366,200			$	363,439

 

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 Nine Months Ended
		March 31,				December 31,				March 31,				March 31,				March 31,
		2025				2024				2024				2025				2024
Interest and dividend income:
Interest and fees on loans		$	1,838			$	1,765			$	1,777			$	5,387			$	5,257
Interest and dividends on debt securities:
Taxable			1,095				1,083				965				3,206				2,737
Tax-exempt			71				73				89				221				279
Interest on short-term investments and certificates of deposit			262				342				176				934				270
Total interest and dividend income			3,266				3,263				3,007				9,748				8,543
Interest expense:
Deposits			1,395				1,455				1,197				4,307				3,124
Borrowings			117				119				171				355				335
Total interest expense			1,512				1,574				1,368				4,662				3,459
Net interest income			1,754				1,689				1,639				5,086				5,084
(Reversal) provision of credit losses for securities held to maturity			(5)				(15)				44				(35)				(97)
(Reversal) provision of credit losses for off-balance sheet exposures			(26)				33				15				(1)				3
Provision (reversal) of credit losses for loans			97				(97)				(79)				(48)				(196)
Net interest income after (reversal) provision of credit losses			1,688				1,768				1,659				5,170				5,374
Non-interest income:
Customer service fees			37				36				41				114				118
Income on bank-owned life insurance			67				70				67				206				201
Other income			56				59				59				175				180
Total non-interest income			160				165				167				495				499
Non-interest expenses:
Salaries and employee benefits			1,038				1,218				1,117				3,352				3,528
Occupancy and equipment			257				237				256				745				750
Advertising			35				38				32				109				106
Data processing			103				108				97				305				287
Deposit insurance			34				35				33				103				99
Other general and administrative			380				408				373				1,148				1,163
Total non-interest expenses			1,847				2,044				1,908				5,762				5,933
Income (loss) before income taxes			1				(111)				(82)				(97)				(60)
(Benefit) provision for income taxes			(3)				51				(42)				67				67
Net income (loss)		$	4			$	(162)			$	(40)			$	(164)			$	(127)
Net loss per share:
Basic		$	0.00			$	(0.03)			$	(0.01)			$	(0.03)			$	(0.02)
Diluted		$	0.00			$	(0.03)			$	(0.01)			$	(0.03)			$	(0.02)
Weighted average shares outstanding:
Basic			6,241,324				6,271,579				6,292,060				6,269,372				6,286,323
Diluted			6,241,324				6,271,579				6,292,060				6,269,372				6,286,323

 

CFSB Bancorp, Inc. and Subsidiary Average Balances and Yields, Fully Tax-Equivalent Basis (Unaudited) (Dollars in thousands)
	Average Balance and Yields
	Three Months Ended
	March 31, 2025												December 31, 2024												March 31, 2024
	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	$	171,883			$	1,838				4.28	%		$	168,996			$	1,765				4.18	%		$	175,072			$	1,777				4.06	%
Securities (1)		148,261				1,185				3.20	%			148,673				1,175				3.16	%			149,442				1,078				2.89	%
Cash and short-term investments		25,704				262				4.08	%			26,945				342				5.08	%			14,933				176				4.71	%
Total interest-earning assets		345,848				3,285				3.80	%			344,614				3,282				3.81	%			339,447				3,031				3.57	%
Non-interest-earning assets		17,304												17,169												17,082
Total assets	$	363,152											$	361,783											$	356,529
Interest-bearing liabilities:
Interest-bearing demand deposits	$	29,874			$	4				0.05	%		$	30,034			$	4				0.05	%		$	30,261			$	4				0.05	%
Savings deposits		52,065				13				0.10	%			53,149				13				0.10	%			57,619				14				0.10	%
Money market deposits		21,830				13				0.24	%			22,216				13				0.23	%			23,396				14				0.24	%
Certificates of deposit		140,121				1,365				3.90	%			136,928				1,425				4.16	%			121,108				1,165				3.85	%
Total interest-bearing deposits		243,890				1,395				2.29	%			242,327				1,455				2.40	%			232,384				1,197				2.06	%
FHLB advances		10,350				117				4.52	%			10,350				119				4.60	%			14,186				171				4.82	%
Total interest-bearing liabilities		254,240				1,512				2.38	%			252,677				1,574				2.49	%			246,570				1,368				2.22	%
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits		27,602												27,226												28,530
Other non-interest-bearing liabilities		5,683												5,934												5,650
Total liabilities		287,525												285,837												280,750
Total stockholders' equity		75,627												75,946												75,779
Total liabilities and stockholders' equity	$	363,152											$	361,783											$	356,529
Net interest income					$	1,773											$	1,708											$	1,663
Net interest rate spread(2)										1.42	%											1.32	%											1.35	%
Net interest-earning assets(3)	$	91,608											$	91,937											$	92,877
Net interest margin(4)										2.05	%											1.98	%											1.96	%
Cost of deposits(5)										2.06	%											2.16	%											1.84	%
Cost of funds(6)										2.15	%											2.25	%											1.99	%
Ratio of interest-earning assets to interest-bearing liabilities		136.03	%											136.39	%											137.67	%

(1) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $19,000, $19,000, and $24,000 for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, 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.

 

CFSB Bancorp, Inc. and Subsidiary Reconciliation of Fully Tax-Equivalent Income  (Unaudited) (In thousands)
		For the Three Months Ended
		March 31, 2025				December 31, 2024				March 31, 2024
Securities interest income (no tax adjustment)		$	1,166			$	1,156			$	1,054
Tax-equivalent adjustment			19				19				24
Securities (tax-equivalent basis)		$	1,185			$	1,175			$	1,078
Net interest income (no tax adjustment)		$	1,754			$	1,689			$	1,639
Tax-equivalent adjustment			19				19				24
Net interest income (tax-equivalent adjustment)		$	1,773			$	1,708			$	1,663

 

CFSB Bancorp, Inc. and Subsidiary Average Balances and Yields, Fully Tax-Equivalent Basis (Unaudited) (Dollars in thousands)
	Average Balance and Yields
	Nine Months Ended
	March 31, 2025												March 31, 2024
	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	$	170,781			$	5,387				4.21	%		$	175,966			$	5,257				3.98	%
Securities (1)		148,194				3,486				3.14	%			149,296				3,090				2.76	%
Cash and short-term investments		26,513				934				4.70	%			7,733				270				4.66	%
Total interest-earning assets		345,488				9,807				3.78	%			332,995				8,617				3.45	%
Non-interest-earning assets		17,214												16,765
Total assets	$	362,702											$	349,760
Interest-bearing liabilities:
Interest-bearing demand deposits	$	29,887			$	11				0.05	%		$	29,972			$	11				0.05	%
Savings deposits		53,080				40				0.10	%			59,693				45				0.10	%
Money market deposits		22,140				42				0.25	%			24,611				47				0.25	%
Certificates of deposit		136,705				4,214				4.11	%			116,087				3,021				3.47	%
Total interest-bearing deposits		241,812				4,307				2.37	%			230,363				3,124				1.81	%
FHLB advances		10,350				355				4.57	%			8,673				335				5.15	%
Total interest-bearing liabilities		252,162				4,662				2.47	%			239,036				3,459				1.93	%
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits		28,868												29,244
Other non-interest-bearing liabilities		5,810												5,683
Total liabilities		286,840												273,963
Total stockholders' equity		75,862												75,797
Total liabilities and stockholders' equity	$	362,702											$	349,760
Net interest income					$	5,145											$	5,158
Net interest rate spread(2)										1.31	%											1.52	%
Net interest-earning assets(3)	$	93,326											$	93,959
Net interest margin(4)										1.99	%											2.07	%
Cost of deposits(5)										2.12	%											1.60	%
Cost of funds(6)										2.21	%											1.72	%
Ratio of interest-earning assets to interest-bearing liabilities		137.01	%											139.31	%

(1) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $59,000 and $74,000 for the nine months ended March 31, 2025 and March 31, 2024, 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

.

CFSB Bancorp, Inc. and Subsidiary Reconciliation of Fully Tax-Equivalent Income  (Unaudited) (In thousands)
		For the Nine Months Ended
		March 31,				March 31,
		2025				2024
Securities interest income (no tax adjustment)		$	3,427			$	3,016
Tax-equivalent adjustment			59				74
Securities (tax-equivalent basis)		$	3,486			$	3,090
Net interest income (no tax adjustment)			5,086				5,084
Tax-equivalent adjustment			59				74
Net interest income (tax-equivalent adjustment)		$	5,145			$	5,158

 

View original content:https://www.prnewswire.com/news-releases/cfsb-bancorp-inc-announces-fiscal-third-quarter-and-year-to-date-2025-financial-results-302441724.html

SOURCE CFSB Bancorp, Inc.

FAQ

What caused CFSB net income to improve from a $162,000 loss to $4,000 profit in Q3 2025?

CFSB's improvement was due to higher interest income yields, decreased deposit costs as CDs repriced downward, positive loan growth trends, and a significant $197,000 reduction in non-interest expenses, particularly in salaries and benefits.

How did CFSB's net interest margin perform in Q3 2025 compared to previous quarters?

CFSB's net interest margin increased to 2.05% in Q3 2025, up 7 basis points from 1.98% in Q4 2024 and 9 basis points from 1.96% in Q3 2024, driven by higher yields on interest-earning assets.

What is CFSB's loan quality status as of March 31, 2025?

CFSB reported only four one-to-four-family loans totaling $1.4 million rated as substandard with a $10,000 credit loss allowance. There were no loans rated special mention, doubtful or loss, and no charge-offs or recoveries during the period.

How much did CFSB spend on stock buybacks in the first 9 months of fiscal 2025?

CFSB spent $495,000 on stock buybacks during the nine months ended March 31, 2025, which contributed to the decrease in total stockholders' equity from $76.1 million to $75.7 million.

What is driving CFSB's deposit growth in Q3 2025?

CFSB's deposits increased by $3.0 million to $273.8 million, primarily driven by a $5.8 million increase in higher-yielding term certificates of deposit, as customers sought accounts with higher interest rates through promotional offerings.