CFSB Bancorp, Inc. /MA/ [CFSB] Filings

10-Q 1 cfsb-20221231.htm 10-Q 10-Q

☐☐

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number: 001-41220

CFSB Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)


United States of America	87-4396534
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
15 Beach Street Quincy, Massachusetts	02170
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (617) 471-0750

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Stock, Par Value $0.01 Common Per Share CFSB The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of February 6, 2023, the registrant had 6,521,642 shares of common stock, $0.01 par value per share, outstanding.

Table of Contents


		Page

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets	3
	Consolidated Statements of Net Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Changes in Stockholders' Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to Unaudited Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	46

PART II.	OTHER INFORMATION	47

Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults Upon Senior Securities	47
Item 4.	Mine Safety Disclosures	47
Item 5.	Other Information	47
Item 6.	Exhibits	48
Signatures		49

Item 1. Financial Statements.

CFSB Bancorp, Inc. and Subsidiary

Consolidated Balance Sheets (Unaudited)

(In thousands, except per share data)


	December 31,			June 30,
	2022			2022
Assets:
Cash and due from banks	$	1,502		$	1,609
Short-term investments		9,072			30,058
Total cash and cash equivalents		10,574			31,667
Securities available for sale, at fair value		168			199
Securities held to maturity, at amortized cost, fair value of $132,624 at December 31, 2022 and $133,593 at June 30, 2022		149,473			145,239
Federal Home Loan Bank stock, at cost		191			191
Loans, net of allowance for loan losses of $1,747 at December 31, 2022 and $1,747 at June 30, 2022		178,569			172,593
Premises and equipment, net		3,272			3,334
Accrued interest receivable		1,303			1,265
Bank-owned life insurance		10,271			10,144
Deferred tax asset		1,001			1,079
Operating lease right of use asset		999			-
Other assets		1,012			472
Total assets	$	356,833		$	366,183

Liabilities and Stockholders' Equity:
Deposits
Non-interest bearing	$	32,618		$	31,168
Interest-bearing		242,844			255,907
Total deposits		275,462			287,075
Mortgagors' escrow accounts		1,680			1,555
Operating lease liability		1,003			-
Accrued expenses and other liabilities		3,409			3,303
Total liabilities		281,554			291,933
Stockholders' Equity
Preferred Stock, $.01 par value, 10,000,000 shares authorized as of December 31, 2022 and June 30, 2022, none issued and outstanding as of December 31, 2022 and June 30, 2022	$	-		$	-
Common Stock, $.01 par value, 90,000,000 shares authorized as of December 31, 2022 and June 30, 2022, 6,521,642 issued and outstanding as of December 31, 2022 and June 30, 2022		65			65
Additional paid-in capital		27,714			27,720
Retained earnings		49,956			48,970
Accumulated other comprehensive income		(2	)		-
Unearned compensation - ESOP, 245,422 and 250,536 shares unallocated at December 31, 2022 and June 30, 2022, respectively		(2,454	)		(2,505	)
Total stockholders' equity		75,279			74,250
Total liabilities and stockholders' equity	$	356,833		$	366,183

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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,		December 31,		December 31,		December 31,
	2022		2021		2022		2021
Interest and dividend income:
Interest and fees on loans	$	1,657	$	1,640	$	3,276	$	3,294
Interest and dividends on debt securities:
Taxable		795		492		1,546		959
Tax-exempt		106		120		214		243
Interest on short-term investments and certificates of deposit		123		16		250		33
Total interest and dividend income		2,681		2,268		5,286		4,529

Interest expense:
Deposits		340		255		582		529
Borrowings		-		2		-		6
Total interest expense		340		257		582		535

Net interest income		2,341		2,011		4,704		3,994
Provision for loan losses		-		10		-		25
Net interest income after provision for loan losses		2,341		2,001		4,704		3,969

Non-interest income:
Customer service fees		36		31		73		61
Income on bank-owned life insurance		63		75		127		123
Gain on sale of securities available for sale		-		-		-		48
Other income		53		55		152		159
Total non-interest income		152		161		352		391

Non-interest expenses:
Salaries and employee benefits		1,250		1,167		2,268		2,121
Occupancy and equipment		255		208		498		418
Advertising		71		37		110		78
Data processing		84		91		178		171
Deposit insurance		22		21		43		43
Other general and administrative		405		372		738		691
Total non-interest expenses		2,087		1,896		3,835		3,522
Income before income taxes		406		266		1,221		838
Provision for income taxes		65		32		235		132
Net income	$	341	$	234	$	986	$	706

Net income per share:
Basic and diluted	$	0.05	N/A		$	0.16	N/A

Weighted average shares outstanding:
Basic and diluted		6,274,542	N/A			6,273,260	N/A

Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

CFSB Bancorp, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands)


	For the Three Months Ended						For the Six Months Ended
	December 31,						December 31,
	2022			2021			2022			2021
Net income	$	341		$	234		$	986		$	706
Other comprehensive income:
Change in unrealized holding (losses) gains		(1	)		(1	)		(2	)		33
Reclassification adjustment for net realized gains		-			-			-			(48	)
Net change in unrealized losses		(1	)		(1	)		(2	)		(15	)
Tax effect		-			-			-			4
Net-of-tax amount		(1	)		(1	)		(2	)		(11	)
Comprehensive income	$	340		$	233		$	984		$	695

There were no sales of securities for the three and six months ended December 31, 2022. There were no sales of securities during the three months ended December 31, 2021. The tax effect related to the net realized gain on sale of securities available for sale was $14,000 for the six months ended December 31, 2021.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

CFSB Bancorp, Inc. and Subsidiary

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

(Dollars in thousands)


										Accumulated
					Additional					Other			Unearned
	Common Stock				Paid-in			Retained		Comprehensive			Compensation
	Shares		Amount		Capital			Earnings		Income (Loss)			ESOP			Total
Balance at September 30, 2022		6,521,642	$	65	$	27,718		$	49,615	$	(1	)	$	(2,480	)	$	74,917
Net income		-		-		-			341		-			-			341
Other comprehensive loss		-		-		-			-		(1	)		-			(1	)
ESOP shares committed to be released		-		-		(4	)		-		-			26			22
Balance at December 31, 2022		6,521,642	$	65	$	27,714		$	49,956	$	(2	)	$	(2,454	)	$	75,279

Balance at September 30, 2021		-	$	-	$	-		$	49,100	$	7		$	-		$	49,107
Net income		-		-		-			234		-			-			234
Other comprehensive loss		-		-		-			-		(1	)		-			(1	)
Balance at December 31, 2021		-	$	-	$	-		$	49,334	$	6		$	-		$	49,340

The accompanying notes are an integral part of these unaudited consolidated financial statements.

CFSB Bancorp, Inc. and Subsidiary

Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

(Dollars in thousands)


									Accumulated
					Additional				Other			Unearned
	Common Stock				Paid-in		Retained		Comprehensive			Compensation
	Shares		Amount		Capital		Earnings		Income (Loss)			ESOP			Total
Balance at June 30, 2022		6,521,642	$	65	$	27,720	$	48,970	$	-		$	(2,505	)	$	74,250
Net income		-		-		-		986		-			-			986
Other comprehensive loss		-		-		-		-		(2	)

CFSB Bancorp, Inc. /MA/ [CFSB] Filings
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10-Q	[2022-11-09]
10-K	[2022-09-22]
10-Q	[2022-05-11]
10-Q	[2022-02-09]
10-Q	[2021-12-22]
S-1	[2021-09-09]