NEW YORK, May 21, 2025 (GLOBE NEWSWIRE) -- Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating CFSB Bancorp, Inc. (NASDAQ: CFSB), relating to the proposed merger with Hometown Financial Group, Inc. Under the terms of the agreement, CFSB shareholders will receive $14.25 in c ...

Core Viewpoint - Hometown Financial Group has announced a definitive merger agreement to acquire CFSB Bancorp and its subsidiary Colonial Federal Savings Bank, enhancing its market presence in eastern Massachusetts and creating a larger banking entity with significant assets and branch locations [1][2][4]. Merger Details - The merger agreement has been unanimously approved by the boards of directors of both companies, with CFSB shareholders set to receive $14.25 in cash per share, valuing the transaction at approximately $44 million [2]. - The merger is expected to close in the fourth quarter of 2025, pending regulatory approvals and shareholder consent [2]. Post-Merger Structure - Following the merger, Colonial Federal Savings Bank will merge into North Shore Bank, resulting in a combined bank with $3.3 billion in assets and 29 retail locations across Massachusetts and southern New Hampshire [3]. - Hometown Financial Group will have consolidated assets nearing $6.9 billion and a total of 56 branch offices after the merger [4]. Strategic Goals - The merger aims to enhance customer service and expand market reach, with Hometown Financial Group emphasizing its commitment to local markets and personalized financial solutions [5][6]. - The transaction marks the eighth strategic merger for Hometown Financial Group in the last decade, indicating a consistent growth strategy [7]. Company Background - Hometown Financial Group is a multibank mutual holding company with $6.6 billion in assets, operating several banks including bankESB, bankHometown, and North Shore Bank [13]. - CFSB Bancorp, with total assets of $366 million as of March 31, 2025, has been serving the banking needs of its customers since 1889 [16].

Financial Position - Total assets increased by $2.8 million, or 0.8%, to $366.2 million at March 31, 2025, from $363.4 million at June 30, 2024[169]. - Total stockholders' equity decreased by $335,000, or 0.5%, to $75.7 million at March 31, 2025[177]. - Cash and cash equivalents increased by $1.3 million, or 4.8%, to $28.3 million at March 31, 2025[170]. - Securities held to maturity decreased by $1.1 million, or 0.7%, to $145.9 million at March 31, 2025[173]. - The allowance for credit losses for loans was $1.5 million, or 0.86% of total loans, at March 31, 2025, compared to $1.6 million, or 0.91% of total loans, at March 31, 2024[199]. Loan and Deposit Activity - Net loans increased by $2.8 million, or 1.6%, to $173.2 million at March 31, 2025, driven by a 33.9% increase in multi-family loans[171]. - Deposits increased by $3.0 million, or 1.1%, to $273.8 million at March 31, 2025, primarily due to a 4.4% increase in certificates of deposit[175]. - The average balance of certificates of deposit increased by $19.0 million to $140.1 million, influenced by a higher interest rate environment[181]. - The average balance of savings deposits decreased by $5.5 million, or 9.5%, to $52.1 million for the three months ended March 31, 2025[181]. - As of March 31, 2025, the company had $1.2 million of commitments to originate loans and $3.7 million of unadvanced funds under home equity lines of credit[231]. Income and Expenses - Interest and dividend income increased by $259,000, or 8.6%, to $3.3 million for the three months ended March 31, 2025[179]. - Net interest income increased by $115,000, or 7.0%, for the three months ended March 31, 2025[178]. - Non-interest income decreased by $7,000, or 4.2%, to $160,000, primarily due to a $4,000 decrease in customer service fees and other income[184]. - Total non-interest expense decreased by $61,000, or 3.2%, to $1.8 million, mainly due to a $79,000 reduction in salaries and employee benefits[185]. - Interest expense increased by $144,000, or 10.5%, to $1.5 million for the three months ended March 31, 2025, primarily due to a rise in the average rate on certificates of deposit to 3.90%[181]. Credit Losses and Provisions - The provision for credit losses increased by $86,000, or 430.0%, for the three months ended March 31, 2025[178]. - The provision for credit losses was recorded at $66,000, with a $97,000 provision for loans reflecting an increase in loan originations, while the allowance for credit losses for loans was $1.5 million, or 0.86% of total loans[183]. - The provision for credit losses recorded a reversal of $84,000 for the nine months ended March 31, 2025, reflecting strong asset quality[199]. Performance Metrics - The net interest rate spread increased by seven basis points to 1.42% for the three months ended March 31, 2025, compared to 1.35% for the same period in 2024[182]. - The net interest margin increased by nine basis points to 2.05% for the three months ended March 31, 2025, compared to 1.96% for the same period in 2024[182]. - The net interest margin for the nine months ended March 31, 2025, was 1.99%, compared to 2.07% for the same period in 2024, reflecting a decline of 8 basis points[206]. - The company reported a net interest rate spread of 1.31% for the nine months ended March 31, 2025, down from 1.52% in 2024, a decrease of 21 basis points[206]. Cash Flow and Financing Activities - Net cash provided by operating activities was $361,000 for the nine months ended March 31, 2025, compared to $96,000 for the same period in 2024, indicating a significant increase[227]. - Net cash used in investing activities was $1.6 million for the nine months ended March 31, 2025, compared to cash provided of $5.8 million for the same period in 2024, showing a decrease in cash inflow from investments[227]. - Net cash provided by financing activities was $2.5 million for the nine months ended March 31, 2025, down from $8.9 million for the same period in 2024, reflecting changes in deposit levels and treasury stock purchases[227]. Regulatory and Economic Considerations - The company exceeded all regulatory capital requirements as of March 31, 2025, indicating a strong capital position[229]. - The company is committed to maintaining a strong liquidity position and anticipates sufficient funds to meet current funding commitments[228]. - The primary impact of inflation on the company's operations is reflected in increased operating costs, with interest rates having a more significant impact on performance than inflation[235]. - The estimated economic value of equity (EVE) as of March 31, 2025, was $55,522,000, with a potential decrease of 20.5% if interest rates increased by 200 basis points[220][221].

Financial Performance - For the three months ended March 31, 2025, CFSB Bancorp, Inc. reported a net income of $4,000, compared to a net loss of $162,000 for the previous quarter and a net loss of $40,000 for the same period last year[1][2]. - The company reported a net income of $4 thousand for the three months ended March 31, 2025, compared to a net loss of $162 thousand in the previous quarter[30]. Income and Expenses - Net interest income increased by $65,000, or 3.8%, to $1.8 million for the three months ended March 31, 2025, with a net interest margin of 2.05%, up from 1.98% in the previous quarter[4]. - Non-interest income decreased by $5,000, or 3.0%, to $160,000 for the three months ended March 31, 2025, primarily due to a decrease in income on bank-owned life insurance[8]. - Non-interest expense decreased by $197,000, or 9.6%, to $1.8 million for the three months ended March 31, 2025, mainly due to a reduction in salaries and employee benefits[10]. - Salaries and employee benefits expenses were $1,038 thousand for the three months ended March 31, 2025, down from $1,218 thousand in the previous quarter, a reduction of approximately 14.8%[30]. Asset and Liability Management - Total assets increased by $2.8 million, or 0.8%, to $366.2 million at March 31, 2025, driven by a $1.3 million increase in cash and cash equivalents and a $2.8 million increase in total loans[19]. - Total liabilities rose by $3.1 million, or 1.1%, to $290.5 million at March 31, 2025, with deposits increasing by $3.0 million, or 1.1%[21]. - Total stockholders' equity decreased by $335,000 to $75.7 million at March 31, 2025, primarily due to stock repurchases and the net loss for the period[22]. - Total assets increased to $366,200 thousand as of March 31, 2025, compared to $363,439 thousand on June 30, 2024, reflecting a growth of approximately 0.5%[27]. - Total loans reached $175,021 thousand, up from $172,378 thousand, indicating an increase of about 1.5%[27]. - Total deposits increased to $273,761 thousand from $270,841 thousand, marking a growth of about 1.1%[27]. Credit Quality - The provision for credit losses was recorded at $66,000 for the three months ended March 31, 2025, with an allowance for credit losses on loans at 0.86% of total loans[6]. - The allowance for credit losses decreased to $1,504 thousand from $1,553 thousand, indicating improved asset quality[27]. Interest Income and Yield - Interest income rose by $3,000, or 0.1%, due to a $73,000 increase in interest and fees on loans, despite an $80,000 decrease in interest on cash and short-term investments[4]. - Total interest-earning assets increased to $345,848 thousand with an average yield of 3.80% for the three months ended March 31, 2025, compared to $339,447 thousand and 3.57% for the same period in 2024[31]. - The net interest margin improved to 2.05% for the three months ended March 31, 2025, compared to 1.96% for the same period in 2024[31]. - The cost of deposits decreased to 2.06% for the three months ended March 31, 2025, from 2.16% in the previous quarter[31]. - Loans outstanding were $171,883 thousand with an interest earned of $1,838 thousand, yielding 4.28% for the three months ended March 31, 2025[31]. - The net interest rate spread increased to 1.42% for the three months ended March 31, 2025, from 1.35% in the same period of 2024[31]. Future Outlook - The company remains optimistic about loan growth and expense reduction despite market volatility[3]. - The company anticipates continued focus on maintaining competitive pressures and adapting to economic conditions in future strategies[25].

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, 2024 OR 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 o ...

Financial Performance - CFSB Bancorp, Inc. reported a net loss of $162,000, or $0.03 per share, for Q2 2025, compared to a net loss of $210,000, or $0.03 per share, for Q2 2024[1][2]. - Net loss for the three months ended December 31, 2024, was $162,000, compared to a net loss of $6,000 in the previous quarter[29]. - Basic net loss per share was $(0.03), consistent with the previous quarter[29]. Income and Revenue - Net interest income increased by $45,000, or 2.7%, to $1.7 million for Q2 2025, while the net interest margin increased by six basis points to 1.98%[4]. - Interest income rose by $453,000, or 16.0%, for Q2 2025, driven by increases in interest and dividends on securities and cash[5]. - Non-interest income decreased by $5,000, or 2.9%, to $165,000 for Q2 2025, primarily due to a decrease in customer service fees[7]. - Net interest income after provisions for credit losses was $1,768,000, compared to $1,714,000 in the previous quarter, an increase of 3.15%[29]. - Interest and dividend income increased to $3,263,000 from $3,219,000, a rise of 1.37%[29]. - Net interest income (tax-equivalent adjustment) decreased slightly to $3,372,000 for the six months ended December 31, 2024, from $3,496,000 in 2023, a decline of 3.6%[41]. - The total net interest income (no tax adjustment) for the six months ended December 31, 2024, was $3,332,000, compared to $3,445,000 in 2023, reflecting a decrease of 3.3%[41]. Expenses - Non-interest expense increased by $173,000, or 9.2%, to $2.0 million for Q2 2025, mainly due to higher salaries and employee benefits[9]. - Non-interest expenses increased to $2,044,000 from $1,871,000, an increase of 9.21%[29]. Assets and Liabilities - Total assets amounted to $362.8 million at December 31, 2024, a decrease of $681,000, or 0.2%, from June 30, 2024[18]. - Total liabilities decreased by $302,000, or 0.5%, to $287.1 million at December 31, 2024, with deposits decreasing by $483,000, or 0.2%[20]. - Total stockholders' equity decreased by $379,000 to $75.7 million at December 31, 2024, primarily due to the net loss for the six months ended December 31, 2024[21]. - Total assets decreased slightly to $362,758,000 from $363,439,000, a decline of 0.19%[26]. - Total loans decreased to $168,935,000 from $172,378,000, a decline of 2.53%[26]. - Total deposits remained stable at $270,358,000, a slight decrease from $270,841,000, reflecting a 0.18% decline[26]. - Non-interest-bearing demand deposits decreased to $27,226 as of December 31, 2024, from $28,223 a year earlier[30]. Credit Quality - The Company recorded a provision for income tax of $51,000 for Q2 2025, an increase from $16,000 in Q2 2024[12]. - The Company recorded a reversal of the provision for credit losses of $150,000 for the six months ended December 31, 2024, reflecting continued strong asset quality[14]. - The allowance for credit losses decreased to $1,407,000 from $1,553,000, a reduction of 9.41%[26]. Securities and Investments - Securities interest income for the three months ended December 31, 2024, was $1,156, with a tax-equivalent adjustment of $19[35]. - Securities interest income increased to $2,261,000 for the six months ended December 31, 2024, compared to $1,962,000 for the same period in 2023, representing a growth of 15.2%[41]. - The tax-equivalent adjustment for securities interest income was $40,000 in 2024, down from $51,000 in 2023, indicating a decrease of 21.6%[41]. - Securities (tax-equivalent basis) increased to $2,301,000 in 2024 from $2,013,000 in 2023, marking an increase of 14.3%[41].

Core Points - CFSB Bancorp, Inc. reported a net loss of $162,000 for the three months ended December 31, 2024, compared to a net loss of $210,000 for the same period in 2023, indicating a slight improvement in financial performance [1][5][28] - The company experienced a net interest income increase of $45,000, or 2.7%, for the quarter ended December 31, 2024, driven by higher average yields on interest-earning assets [4][5] - The total assets of the company decreased by $681,000, or 0.2%, to $362.8 million as of December 31, 2024, primarily due to decreases in cash and total loans [18][20] Financial Performance - For the six months ended December 31, 2024, the company recorded a net loss of $168,000, compared to a net loss of $87,000 for the same period in 2023 [2][12] - The net interest margin decreased by 17 basis points to 1.95% for the six months ended December 31, 2024, from 2.12% for the same period in 2023 [12][17] - Interest income increased by $935,000, or 16.7%, for the six months ended December 31, 2024, due to higher yields on cash and short-term investments [12][36] Asset Quality - The allowance for credit losses on loans as a percentage of total loans was 0.83% as of December 31, 2024, down from 0.93% a year earlier, reflecting improved asset quality [6][19] - The company recorded reversals of the provision for credit losses of $79,000 for the three months ended December 31, 2024, indicating a positive trend in credit quality [6][13] Non-Interest Income and Expenses - Non-interest income decreased by $5,000, or 2.9%, to $165,000 for the three months ended December 31, 2024, primarily due to a decrease in customer service fees [7][15] - Non-interest expenses increased by $173,000, or 9.2%, to $2.0 million for the three months ended December 31, 2024, mainly due to higher salaries and employee benefits [8][16] Balance Sheet - Total liabilities decreased by $302,000, or 0.5%, to $287.1 million as of December 31, 2024, with deposits decreasing by $483,000 [20][21] - Total stockholders' equity decreased by $379,000 to $75.7 million at December 31, 2024, primarily due to the net loss for the period [21][22]

Financial Position - Total assets increased by $1.1 million, or 0.3%, to $364.5 million at September 30, 2024, from $363.4 million at June 30, 2024[109] - Total liabilities increased by $1.1 million, or 0.4%, to $288.5 million at September 30, 2024[109] - Deposits increased by $829,000, or 0.3%, to $271.7 million at September 30, 2024[109] - The company had $10.4 million in outstanding advances from the FHLB and the ability to borrow an additional $49.6 million as of September 30, 2024[125] - The company exceeded all regulatory capital requirements as of September 30, 2024[125] Loan and Credit Quality - Net loans decreased by $2.4 million, or 1.4%, to $168.0 million at September 30, 2024, primarily due to a decrease in one- to four-family residential real estate loans[109] - The allowance for credit losses for loans was $1.5 million, or 0.89% of total loans, at September 30, 2024, down from $1.6 million, or 0.94% of total loans, at September 30, 2023[111] - Provision for credit losses recorded a reversal of $71,000 for the three months ended September 30, 2024, reflecting strong asset quality and lower loan balances[111] - Commitments to originate loans amounted to $656,000, with $3.9 million in unadvanced funds under home equity lines of credit as of September 30, 2024[126] Income and Expenses - Interest and dividend income increased by $487,000, or 17.8%, to $3.2 million for the three months ended September 30, 2024, compared to $2.7 million for the same period in 2023[110] - Net interest income decreased by $163,000, or 9.0%, for the three months ended September 30, 2024[110] - Non-interest income increased by $10,000, or 6.3%, for the three months ended September 30, 2024[110] - Total non-interest expense decreased by $45,000, or 2.3%, to $1.9 million for the three months ended September 30, 2024, primarily due to a reduction in salaries and employee benefits[113] - The provision for income taxes decreased by $74,000 to $19,000 for the three months ended September 30, 2024, compared to $93,000 for the same period in 2023[114] Interest Rates and Yields - The average yield on loans increased by 26 basis points to 4.16% for the three months ended September 30, 2024[110] - Average yield on interest-earning assets increased to 4.91% for the three months ended September 30, 2024, up from 4.67% for the same period in 2023[111] - Interest expense rose by $650,000, or 70.2%, to $1.6 million for the three months ended September 30, 2024, compared to $926,000 for the same period in 2023[111] - The net interest rate spread decreased by 56 basis points to 1.21% for the three months ended September 30, 2024, from 1.77% for the same period in 2023[117] Cash Flow - Net cash provided by operating activities was $366,000 for the three months ended September 30, 2024, compared to $436,000 for the same period in 2023[125] - Net cash provided by investing activities was $2.6 million for the three months ended September 30, 2024, compared to $1.9 million in 2023[125] Economic Value - Estimated economic value of equity (EVE) decreased by 36.3% with a 400 basis point increase in interest rates, resulting in an EVE of $35,147,000[124] - The EVE ratio was 11.7% as of September 30, 2024, indicating the EVE as a percentage of the present value of assets[124] Risk Management - The company adopted the CECL methodology for estimating credit losses on July 1, 2023, impacting the allowance for credit losses[108] - The company does not engage in hedging activities such as futures or interest rate swaps, focusing instead on asset-liability management strategies[121]

Financial Performance - CFSB Bancorp, Inc. reported a net loss of $6,000, or $0.00 per share, for Q1 2025, compared to a net income of $123,000, or $0.02 per share, in Q1 2024[1]. - Non-interest income increased by $10,000, or 6.3%, to $170,000 for Q1 2025, primarily due to higher other income and bank-owned life insurance income[3]. - Total stockholders' equity increased by $138,000 to $76.0 million at September 30, 2024, despite a net loss for the twelve months ended September 30, 2024[5]. - Net loss income for the three months ended September 30, 2024, was $(6,000), a decrease from net income of $160,000 in the previous quarter[8]. - Basic and diluted net loss income per share was $0.00 for the three months ended September 30, 2024, compared to $0.03 for the previous quarter[8]. Interest Income and Expenses - Net interest income decreased by $169,000, or 9.2%, to $1.7 million for Q1 2025, with a net interest margin of 1.92%, down from 2.22% in Q1 2024[1]. - Interest income increased by $481,000, or 17.4%, driven by higher yields on interest-earning assets and an increase in cash and short-term investments[1]. - Total interest and dividend income for the three months ended September 30, 2024, was $3,239,000, an increase from $3,150,000 for the previous quarter[8]. - Net interest income after reversal of credit losses was $1,714,000 for the three months ended September 30, 2024, compared to $1,653,000 for the previous quarter[8]. - The net interest margin for the three months ended September 30, 2024, was 1.92%, slightly down from 1.93% in the previous quarter[9]. - The cost of deposits was 2.15% for the three months ended September 30, 2024, compared to 2.09% in the previous quarter[9]. Asset and Deposit Growth - Total assets increased by $18.3 million, or 5.3%, to $364.5 million at September 30, 2024, driven by increases in cash and cash equivalents[5]. - Deposits increased by $11.0 million, or 4.2%, to $271.7 million at September 30, 2024, primarily due to higher-yielding term certificates of deposit[5]. - Total assets increased by 0.3% to $364,486,000 compared to $363,439,000 in June 2024, and up 5.3% from $346,221,000 in September 2023[7]. - Total deposits rose by 0.3% to $271,670,000 compared to $270,841,000 in June 2024, and increased by 4.2% from $260,673,000 in September 2023[7]. - Cash and cash equivalents totaled $30,667,000, a 13.8% increase from $26,959,000 in June 2024, and a 401.3% increase from $6,118,000 in September 2023[7]. Credit Losses and Allowances - The provision for credit losses recorded a reversal of $71,000 for Q1 2025, reflecting improvements in economic conditions and asset quality[2]. - The allowance for credit losses on loans was 0.89% of total loans at September 30, 2024, compared to 0.94% at September 30, 2023[3]. - Allowance for credit losses decreased by 3.2% to $(1,504,000) from $(1,553,000) in June 2024, and down 8.8% from $(1,649,000) in September 2023[7]. - Non-interest-bearing NOW and demand deposits decreased by 8.6% to $31,190,000 from $34,124,000 in June 2024, and increased by 0.9% from $30,918,000 in September 2023[7]. Securities and Portfolio Management - The company continues to focus on optimizing its securities portfolio to improve interest income performance[10]. - Securities interest income for September 30, 2024, was $1,105,000, an increase from $965,000 for September 30, 2023, representing a 14.5% year-over-year growth[10]. - The total securities (tax-equivalent basis) for September 30, 2024, was $1,125,000, compared to $991,000 for September 30, 2023, showing a growth of 13.5% year-over-year[10]. - The overall trend in net interest income suggests a need for strategic adjustments to enhance revenue generation moving forward[10].

Economic Impact - As of June 30, 2024, a 100 basis point increase in interest rates is estimated to result in a 9.8% decrease in economic value of equity (EVE) and a 3.7% decrease in net interest income[103]. - The Federal Reserve Board's monetary policies could significantly impact the company's business and financial condition[112]. Competition and Market Position - The company faces significant competition in the banking sector, which may limit growth and profitability, as competitors may offer better terms or lower interest rates[106]. - The company’s asset size may hinder its ability to compete effectively, limiting its capacity to invest in marketing and technology[107]. Regulatory and Compliance Risks - Regulatory changes and compliance costs could adversely affect operations and increase operational costs[108]. - The company is classified as an emerging growth company, which allows it to take advantage of reduced reporting requirements, potentially making its stock less attractive to investors[113]. - The cost of additional finance and accounting systems to meet public company reporting requirements will increase expenses[121]. - Changes in accounting standards could materially impact reported earnings and financial condition[122]. - Legal and regulatory proceedings could have a materially adverse effect on the business and financial condition[124]. - Federal Reserve Board regulations may preclude the payment of dividends on common stock in the foreseeable future[129]. Operational Risks - The company relies on third-party vendors for key services, exposing it to additional cybersecurity risks and operational challenges[119]. - Fraudulent activities pose a risk to the company, potentially leading to financial losses and reputational damage[120]. - Management's estimates and assumptions may significantly affect consolidated financial statements and operating results[123]. Reputation and Market Perception - The company's reputation is critical for success, and any negative impact could adversely affect performance[126]. - Public stockholders own a minority of CFSB Bancorp's common stock, limiting their voting control[127]. - The common stock is not heavily traded, leading to potential price volatility[128]. - Various factors may complicate takeover attempts, including regulatory approval requirements and charter provisions[130]. Societal and Environmental Factors - Societal responses to climate change may lead to cost increases and demand drops for certain products and services[125].