CFSB Bancorp Reports Decreased Net Loss and Increased Interest Income for December 2024

CFSB Bancorp, Inc. reported a net loss of $162,000 for the three months ended December 31, 2024, a decrease from a net loss of $210,000 in the same period last year. For the six months ended December 31, 2024, the net loss was $168,000, compared to a loss of $87,000 for the same period in 2023. The company's total interest and dividend income increased by 16.4% to $3.3 million for the quarter, driven by higher yields on loans and securities, while interest expense rose by 35.1% to $1.6 million, primarily due to increased rates on certificates of deposit. Consequently, net interest income for the quarter increased by 3.1% to $1.7 million.

In terms of asset management, CFSB Bancorp's total assets decreased slightly by $681,000, or 0.2%, to $362.8 million as of December 31, 2024. This decline was primarily attributed to a $3.2 million decrease in net loans, which fell to $167.2 million, driven by reduced balances in one- to four-family residential loans and commercial loans. However, cash and cash equivalents increased by $1.8 million, reflecting a strategic shift in asset allocation. The company also reported a decrease in total deposits of $483,000, or 0.2%, to $270.4 million, influenced by a drop in non-interest-bearing accounts.

CFSB Bancorp has made significant operational adjustments, including a focus on increasing its certificate of deposit offerings in response to customer demand for higher interest rates. The company’s total stockholders' equity decreased by $379,000 to $75.7 million, primarily due to the net loss and the repurchase of treasury stock. The allowance for credit losses on loans was reported at $1.4 million, or 0.83% of total loans, reflecting a decrease from the previous period, indicating improved asset quality and economic conditions.

Looking ahead, CFSB Bancorp anticipates continued challenges in the current economic environment, including potential fluctuations in interest rates and competition for deposits. The company remains committed to maintaining a strong liquidity position, with available lines of credit and a focus on managing interest rate risk through its asset-liability management strategies. The management's outlook suggests a cautious approach as they navigate the evolving market conditions while aiming to enhance profitability and operational efficiency.