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

1. CFSB reported a net loss of $162,000 for Q2 2024. 2. Net interest income rose 2.7% to $1.7 million this quarter. 3. Asset quality remained strong, with no significant charge-offs reported. 4. Total assets decreased slightly to $362.8 million for Q2 2024. 5. CEO expressed optimism about future loan growth and expense management.

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Why Bearish?

Continuous net losses indicate financial instability, adversely affecting investor sentiment. Previous similar losses have led to decreased stock prices.

How important is it?

Earnings releases are crucial indicators impacting stock value and investor sentiment. The consistent losses and management's outlook will significantly influence market perception.

Why Short Term?

Negative financial results may affect CFSB's immediate stock performance. Historical trends show quick stock reactions to earnings loss announcements.

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CFSB
, /PRNewswire/ -- CFSB Bancorp, Inc. (the "Company") (NASDAQ Capital Market: CFSB), the holding company for Colonial Federal Savings Bank (the "Bank"), today announced a net loss of $162,000, or $0.03 per basic and diluted share, for the three months ended December 31, 2024, a net loss of $6,000, or $0.00 per basic and diluted share, for the three months ended September 30, 2024, and a net loss of $210,000, or $0.03 per basic and diluted share, for the three months ended December 31, 2023. For the six months ended December 31, 2024, the Company recorded a net loss of $168,000, or $0.03 per basic and diluted share, compared to a net loss of $87,000, or $0.01 per basic and diluted share, for the six months ended December 31, 2023. Michael E. McFarland, President and Chief Executive Officer, states "Returns on interest-earning assets continue to show improvement while the cost of deposits have peaked and short-term instruments should continue to decline. We continue to focus on loan growth and expense reductions. As our assets continue to reprice higher and our liabilities, including both deposits and wholesale funding, reprice lower, conditions have become more favorable. While this market environment has been extraordinarily challenging we continue to be optimistic."  Second Quarter Operating ResultsNet interest income, on a fully tax-equivalent basis, increased by $45,000, or 2.7%, to $1.7 million for the three months ended December 31, 2024, from $1.7 million for the three months ended September 30, 2024. The net interest margin increased by six basis points to 1.98% for the three months ended December 31, 2024, from 1.92%, for the three months ended September 30, 2024. Interest income increased $43,000, or 1.3%, due to a $50,000 increase in interest and dividends on securities, a $12,000 increase in interest on cash and short-term investments, offset by a decrease of $19,000 in interest and fees on loans. Interest expense decreased $2,000, or 0.1%, to $1.6 million for the three months ended December 31, 2024, from $1.6 million for the three months ended September 30, 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. Net interest income, on a fully tax-equivalent basis, increased by $44,000, or 2.6%, to $1.7 million for the three months ended December 31, 2024, from $1.7 million for the three months ended December 31, 2023. The net interest margin decreased by four basis points to 1.98% for the three months ended December 31, 2024, from 2.02%, for the three months ended December 31, 2023. Interest income increased $453,000, or 16.0%, due to a $153,000 increase in interest and dividends on securities, a $293,000 increase in interest on cash and short-term investments and a $7,000 increase in interest and fees on loans. Interest expense increased $409,000, or 35.1%, to $1.6 million for the three months ended December 31, 2024, from $1.2 million for the three months ended December 31, 2023.  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. The Company recorded reversals of the provision for credit losses of $79,000, $71,000 and $104,000, for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The $15,000 reversal for credit losses for securities held to maturity was primarily due to improvements in economic conditions for the three months ended December 31, 2024. The $33,000 provision for credit losses for off-balance sheet exposures was primarily due to an increase of $2.9 million in unfunded commitments at December 31, 2024. The $97,000 reversal for credit losses for loans was primarily due to improvements in economic conditions, lower loan balances and continued strong asset quality for the three months ended December 31, 2024. The allowance for credit losses on loans as a percentage of total loans was 0.83%, 0.89%, and 0.93%, at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Non-interest income decreased $5,000, or 2.9%, to $165,000 for the three months ended December 31, 2024, from $170,000 for the three months ended September 30, 2024, due to a decrease of $5,000 in customer service fees. Non-interest income decreased $7,000, or 4.1%, to $165,000 for the three months ended December 31, 2024, from $172,000 for the three months ended December 31, 2023, primarily due to a decrease of $8,000 in other income. Non-interest expense increased $173,000, or 9.2%, to $2.0 million for the three months ended December 31, 2024, from $1.9 million for the three months ended September 30, 2024. The increase was primarily due to a $177,000 increase in salaries and employee benefit expense due to normal employee merit salary and benefit increases, offset by a reduction in pension costs of $60,000 and a $48,000 increase in other general and administrative expenses due to an increase in annual meeting expense of $29,000, an increase in directors compensation of $7,000 and an increase in legal expense of $5,000. Non-interest expense decreased $65,000, or 3.0%, to $2.0 million for the three months ended December 31, 2024, from $2.1 million for the three months ended December 31, 2023. The decrease was primarily due to a $49,000 decrease in salaries and employee benefit expense, primarily due to a reduction in pension costs of $68,000, offset by an increase in health insurance expense of $8,000 and an increase in salaries expense of $10,000, and a $24,000 decrease in other general and administrative expenses, primarily due to a decrease in printing expense of $7,000, a decrease in audit expense of $6,000 and a decrease in insurance expense of $8,000. The Company recorded a provision for income tax of $51,000 for the three months ended December 31, 2024, compared to a provision for income taxes of $19,000 for the three months ended September 30, 2024. The increase of $32,000 in the provision for income taxes for the three months ended December 31, 2024 was due to the increase in the deferred tax valuation allowance on the charitable contribution carryover. The Company recorded a provision for income tax of $51,000 for the three months ended December 31, 2024, compared to a provision for income taxes of $16,000 for the three months ended December 31, 2023. The increase of $35,000 in the provision for income taxes for the three months ended December 31, 2024 was due to the increase in the deferred tax valuation allowance on the charitable contribution carryover. Year-to-Date Operating ResultsNet interest income, on a fully tax-equivalent basis, decreased by $124,000, or 3.5%, to $3.4 million for the six months ended December 31, 2024, from $3.5 million for the six months ended December 31, 2023. 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 six months ended December 31, 2023. Interest income increased $935,000, or 16.7%, due to a $578,000 increase in interest on cash and short-term investments, a $288,000 increase in interest and dividends on securities, and a $69,000 increase in interest and fees on loans. These changes reflect an overall increased yield on interest-earning assets of 39 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 $22.7 million, partially offset by a decrease in the average balance of loans of $6.2 million and a decrease in the average balance of securities of $1.1 million. Interest expense increased $1.1 million, or 50.6%, due to an increase of $984,000 in interest expense on interest-bearing deposits, and a $75,000 increase in interest expense on Federal Home Loan Bank ("FHLB") advances. The increase in interest expense on interest-bearing deposits reflected a 74 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 $4.4 million, or 74.0%, increase in the average balance of FHLB advances for the six months ended December 31, 2024, offset by a 90 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 $150,000 for the six months ended December 31, 2024, compared to a reversal of the provision for credit losses of $270,000 for the six months ended December 31, 2023. The $25,000 provision of credit losses for off-balance sheet exposures was primarily due to an increase of $2.0 million in unfunded commitments at December 31, 2024. The $145,000 reversal of the provision for credit losses for loans recorded for the six months ended December 31, 2024, reflected continued strong asset quality, improvements in forecasted economic conditions and lower loan balances. The $30,000 reversal of the provision for credit losses on securities held to maturity for the six months ended December 31, 2024 was primarily due to improvements in economic conditions. Non-interest income increased $3,000, or 0.9%, to $335,000 for the six months ended December 31, 2024 from $332,000 for the six months ended December 31, 2023. Non-interest expense decreased $110,000, or 2.7%, to $3.9 million for the six months ended December 31, 2024 from $4.0 million for the six months ended December 31, 2023. The decrease was due to a $97,000 decrease in salaries and employee benefit expense primarily due to a reduction in pension costs and a $22,000 decrease in other general and administrative expense, partially offset by a $12,000 increase to data processing fees. The Company recorded a provision for income taxes of $70,000 for the six months ended December 31, 2024, a $39,000, or 35.8%, decrease from the provision for income taxes of $109,000 for the six months ended December 31, 2023. The decrease in the provision for income taxes for the six months ended December 31, 2024 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 SheetAssets: At December 31, 2024, total assets amounted to $362.8 million, compared to $363.4 million at June 30, 2024, a decrease of $681,000, or 0.2%. The decrease resulted primarily from decreases in cash and cash equivalents of $1.8 million, a decrease in total loans of $3.2 million, offset by an increase in securities held to maturity of $923,000. The decrease in cash and cash equivalents was primarily due to increases in securities held to maturity of $923,000, decreases in deposits of $483,000, offset by decreases in loans of $3.2 million. Asset Quality: At December 31, 2024, there were five one- to four-family loans totaling $1.6 million rated substandard with a provision for credit loss of $11,000. Four of these loans were rated substandard due to the borrowers' inability to show sufficient rent receipts to support the debt service coverage and one loan rated substandard and on non-accrual due to non-payment. There were no loans rated special mention, doubtful or loss at December 31, 2024. There were no charge-offs or recoveries during the six months ending December 31, 2024. Liabilities: At December 31, 2024, total liabilities amounted to $287.1 million, compared to $287.4 million at June 30, 2024, a decrease of $302,000 or 0.5%. Deposits decreased by $483,000, or 0.2%, to $270.4 million at December 31, 2024 compared to $270.8 million at June 30, 2024. The decrease was primarily due to a a decrease of $5.3 million in non-interest-bearing NOW and demand accounts and a decrease of $2.1 million in regular accounts, offset by an increase of $6.8 million in higher-yielding term certificates of deposit. The change in composition and the increase in certificates of deposit was a result of the Bank offering certificate of deposit promotions as customers seek accounts with higher interest rates. Stockholders' Equity. Total stockholders' equity decreased $379,000, to $75.7 million at December 31, 2024, from $76.1 million at June 30, 2024. The decrease was primarily due to the changes in unearned ESOP compensation of $51,000 and stock-based compensation of $180,000, offset by the purchase of Company stock of $426,000 and the net loss for the six months ended December 31, 2024 of $168,000. 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 StatementsThis 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 FRB, 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 impacting the value of the products of our borrowers,  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 SubsidiaryConsolidated Balance Sheets (Unaudited)(In thousands, except per share data) December 31, June 30, 2024 2024 Assets: Cash and due from banks $ 1,506 $ 1,339 Short-term investments 27,323 25,620 Total cash and cash equivalents 28,829 26,959 Securities available for sale, at fair value 103 113 Securities held to maturity, at amortized cost, net of allowance for credit losses 147,917 146,994 Federal Home Loan Bank of Boston stock, at cost 704 704 Loans: 1-4 family 136,195 138,005 Multifamily 11,720 12,066 Second mortgages and home equity lines of credit 4,004 3,372 Commercial 15,056 16,833 Total mortgage loans on real estate 166,975 170,276 Consumer 92 65 Home improvement 1,868 2,037 Total loans 168,935 172,378 Allowance for credit losses (1,407) (1,553) Net deferred loan costs and fees, and purchase premiums (376) (387) Loans, net 167,152 170,438 Premises and equipment, net 3,130 3,246 Accrued interest receivable 1,355 1,398 Bank-owned life insurance 10,809 10,670 Deferred tax asset 1,193 1,245 Operating lease right of use asset 812 860 Other assets 754 812 Total assets $ 362,758 $ 363,439 Liabilities and Stockholders' Equity: Deposits: Non-interest-bearing NOW and demand $ 27,991 $ 34,124 Interest-bearing NOW and demand 29,126 28,262 Regular and other 52,103 54,192 Money market accounts 22,047 21,956 Term certificates 139,091 132,307 Total deposits 270,358 270,841 Federal Home Loan Bank of Boston advances 10,350 10,350 Mortgagors' escrow accounts 1,684 1,525 Operating lease liability 833 877 Accrued expenses and other liabilities 3,862 3,796 Total liabilities 287,087 287,389 Stockholders' Equity: Common stock 65 65 Additional paid-in capital 28,302 28,139 Treasury stock (504) (78) Retained earnings 50,058 50,226 Accumulated other comprehensive loss, net of tax - (1) Unearned compensation - ESOP (2,250) (2,301) Total stockholders' equity 75,671 76,050 Total liabilities and stockholders' equity $ 362,758 $ 363,439 CFSB Bancorp, Inc. and SubsidiaryConsolidated Statements of Net (Loss) Income (Unaudited) (In thousands, except per share data) For the Three Months Ended For the Six Months Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Interest and dividend income: Interest and fees on loans $ 1,765 $ 1,784 $ 1,758 $ 3,549 $ 3,480 Interest and dividends on debt securities: Taxable 1,083 1,028 904 2,111 1,772 Tax-exempt 73 77 93 150 190 Interest on short-term investments and certificates of deposit 342 330 49 672 94 Total interest and dividend income 3,263 3,219 2,804 6,482 5,536 Interest expense: Deposits 1,455 1,457 1,051 2,912 1,927 Borrowings 119 119 114 238 164 Total interest expense 1,574 1,576 1,165 3,150 2,091 Net interest income 1,689 1,643 1,639 3,332 3,445 Reversal of credit losses for securities held to maturity (15) (15) (99) (30) (141) Provision (reversal) of credit losses for off-balance sheet exposures 33 (8) 3 25 (12) Reversal of credit losses for loans (97) (48) (8) (145) (117) Net interest income after (reversal) provsion of credit losses 1,768 1,714 1,743 3,482 3,715 Non-interest income: Customer service fees 36 41 37 77 77 Income on bank-owned life insurance 70 69 68 139 134 Other income 59 60 67 119 121 Total non-interest income 165 170 172 335 332 Non-interest expenses: Salaries and employee benefits 1,218 1,096 1,267 2,314 2,411 Occupancy and equipment 237 251 240 488 494 Advertising 38 36 36 74 74 Data processing 108 94 101 202 190 Deposit insurance 35 34 33 69 66 Other general and administrative 408 360 432 768 790 Total non-interest expenses 2,044 1,871 2,109 3,915 4,025 Income (loss) before income taxes (111) 13 (194) (98) 22 Provision for income taxes 51 19 16 70 109 Net loss $ (162) $ (6) $ (210) $ (168) $ (87) Net loss per share: Basic $ (0.03) $ (0.00) $ (0.03) $ (0.03) $ (0.01) Diluted $ (0.03) $ (0.00) $ (0.03) $ (0.03) $ (0.01) Weighted average shares outstanding: Basic 6,271,579 6,294,603 6,284,768 6,283,091 6,283,485 Diluted 6,271,579 6,294,603 6,284,768 6,283,091 6,283,485 CFSB Bancorp, Inc. and SubsidiaryAverage Balances and Yields, Fully Tax-Equivalent Basis (Unaudited) (Dollars in thousands) Average Balance and Yields Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 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 $ 168,996 $ 1,765 4.18 % $ 171,488 $ 1,784 4.16 % $ 176,149 $ 1,758 3.99 % Securities (1) 148,673 1,175 3.16 % 147,649 1,125 3.05 % 149,187 1,022 2.74 % Cash and short-term investments 26,945 342 5.08 % 26,873 330 4.91 % 4,491 49 4.36 % Total interest-earning assets 344,614 3,282 3.81 % 346,010 3,239 3.74 % 329,827 2,829 3.43 % Non-interest-earning assets 17,169 17,170 16,875 Total assets $ 361,783 $ 363,180 $ 346,702 Interest-bearing liabilities: Interest-bearing demand deposits $ 30,034 $ 4 0.05 % $ 29,753 $ 4 0.05 % $ 29,746 $ 4 0.05 % Savings deposits 53,149 13 0.10 % 54,004 14 0.10 % 58,992 15 0.10 % Money market deposits 22,216 13 0.23 % 22,365 14 0.25 % 24,153 15 0.25 % Certificates of deposit 136,928 1,425 4.16 % 133,142 1,425 4.28 % 115,397 1,017 3.53 % Total interest-bearing deposits 242,327 1,455 2.40 % 239,264 1,457 2.44 % 228,288 1,051 1.84 % FHLB advances 10,350 119 4.60 % 10,350 119 4.60 % 8,323 114 5.48 % Total interest-bearing liabilities 252,677 1,574 2.49 % 249,614 1,576 2.53 % 236,611 1,165 1.97 % Non-interest-bearing liabilities:   Non-interest-bearing demand deposits 27,226 31,748 28,223   Other non-interest-bearing liabilities 5,934 5,809 5,968 Total liabilities 285,837 287,171 270,802 Total stockholders' equity 75,946 76,009 75,900 Total liabilities and stockholders' equity $ 361,783 $ 363,180 $ 346,702 Net interest income $ 1,708 $ 1,663 $ 1,664 Net interest rate spread(2) 1.32 % 1.21 % 1.46 % Net interest-earning assets(3) $ 91,937 $ 96,396 $ 93,216 Net interest margin(4) 1.98 % 1.92 % 2.02 % Cost of deposits(5) 2.16 % 2.15 % 1.64 % Cost of funds(6) 2.25 % 2.24 % 1.76 % Ratio of interest-earning assets to interest-bearing liabilities 136.39 % 138.62 % 139.40 % (1) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $19,000, $20,000, and $25,000 for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, 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 SubsidiaryReconciliation of Fully Tax-Equivalent Income(Unaudited) (In thousands) For the Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Securities interest income (no tax adjustment) $ 1,156 $ 1,105 $ 997 Tax-equivalent adjustment 19 20 25 Securities (tax-equivalent basis) $ 1,175 $ 1,125 $ 1,022 Net interest income (no tax adjustment) $ 1,689 $ 1,643 $ 1,639 Tax-equivalent adjustment 19 20 25 Net interest income (tax-equivalent adjustment) $ 1,708 $ 1,663 $ 1,664 CFSB Bancorp, Inc. and SubsidiaryAverage Balances and Yields, Fully Tax-Equivalent Basis (Unaudited) (Dollars in thousands) Average Balance and Yields Six Months Ended December 31, 2024 December 31, 2023 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 $ 170,242 $ 3,549 4.17 % $ 176,408 $ 3,480 3.95 % Securities (1) 148,161 2,301 3.11 % 149,223 2,013 2.70 % Cash and short-term investments 26,909 672 4.99 % 4,172 94 4.51 % Total interest-earning assets 345,312 6,522 3.78 % 329,803 5,587 3.39 % Non-interest-earning assets 17,170 16,608 Total assets $ 362,482 $ 346,411 Interest-bearing liabilities: Interest-bearing demand deposits $ 29,893 $ 7 0.05 % $ 29,829 $ 7 0.05 % Savings deposits 53,577 27 0.10 % 60,719 30 0.10 % Money market deposits 22,291 27 0.24 % 25,212 32 0.25 % Certificates of deposit 135,035 2,850 4.22 % 113,604 1,858 3.27 % Total interest-bearing deposits 240,796 2,911 2.42 % 229,364 1,927 1.68 % FHLB advances 10,350 239 4.62 % 5,947 164 5.52 % Total interest-bearing liabilities 251,146 3,150 2.51 % 235,311 2,091 1.78 % Non-interest-bearing liabilities:   Non-interest-bearing demand deposits 29,487 29,597   Other non-interest-bearing liabilities 5,871 5,697 Total liabilities 286,504 270,605 Total stockholders' equity 75,978 75,806 Total liabilities and stockholders' equity $ 362,482 $ 346,411 Net interest income $ 3,372 $ 3,496 Net interest rate spread(2) 1.27 % 1.61 % Net interest-earning assets(3) $ 94,166 $ 94,492 Net interest margin(4) 1.95 % 2.12 % Cost of deposits(5) 2.15 % 1.49 % Cost of funds(6) 2.24 % 1.58 % Ratio of interest-earning assets to interest-bearing liabilities 137.49 % 140.16 % (1) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $40,000 and $51,000 for the six months ended December 31, 2024 and December 31, 2023, 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 SubsidiaryReconciliation of Fully Tax-Equivalent Income(Unaudited) (In thousands) For the Six Months Ended December 31, December 31, 2024 2023 Securities interest income (no tax adjustment) $ 2,261 $ 1,962 Tax-equivalent adjustment 40 51 Securities (tax-equivalent basis) $ 2,301 $ 2,013 Net interest income (no tax adjustment) 3,332 3,445 Tax-equivalent adjustment 40 51 Net interest income (tax-equivalent adjustment) $ 3,372 $ 3,496 SOURCE CFSB Bancorp, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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