CFSB Bancorp(CFSB) - 2025 Q3 - Quarterly Report

Financial Position - Total assets increased by $2.8 million, or 0.8$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$2.8 million, or 1.6%, to $173.2 million at March 31, 2025, driven by a 33.9$3.0 million, or 1.1%, to $273.8 million at March 31, 2025, primarily due to a 4.4$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$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$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$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$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].