<div id="readability-page-1"><div>CFSB Bancorp, Inc., a federal corporation formed in January 2022 to serve as the savings and loan holding company for Colonial Federal Savings Bank, has released its annual 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges and risks it faces. Financial Highlights <ul><li>Total Interest and Dividend Income: $13.1 million, reflecting a 12.2% increase from the previous year due to higher interest and dividends on taxable debt securities and short-term investments.</li><li>Net Interest Income: $7.0 million, an increase of 4.1% from the prior year, driven by an increase in the average balance of interest-earning assets and a higher average rate earned on these assets.</li><li>Net (Loss) Income: $(265,000), compared to a net income of $33,000 in the previous year, primarily due to an increase in the provision for credit losses and higher non-interest expenses.</li><li>Net (Loss) Income Per Share - Basic: $(0.04), compared to $0.01 in the previous year, reflecting the net loss incurred during the year.</li><li>Net (Loss) Income Per Share - Diluted: $(0.04), consistent with the basic earnings per share, as there were no dilutive effects.</li></ul> Business Highlights <ul><li>Company Overview: CFSB Bancorp, Inc. primarily engages in holding the common stock of Colonial Federal Savings Bank and supporting its operations.</li><li>Market Area: The company operates primarily in Norfolk and Plymouth Counties, Massachusetts, focusing on residential suburbs of Boston. Norfolk County is noted for its high median household income and educational attainment.</li><li>Lending Activities: The primary lending activity is one- to four-family residential real estate loans, which constitute 79.4% of the total loan portfolio. The company also engages in multi-family and commercial real estate lending, with a focus on diversifying its loan portfolio.</li><li>Loan Portfolio Composition: As of June 30, 2025, the loan portfolio includes $142.3 million in one- to four-family residential loans, $16.4 million in multi-family loans, and $14.3 million in commercial real estate loans.</li><li>Geographical Performance: The company’s operations are concentrated in Norfolk County, Massachusetts, characterized by a high concentration of white-collar professionals and a low unemployment rate compared to the national average.</li><li>Competition: The company faces significant competition from various financial institutions, including large banks, community banks, and credit unions, particularly in the areas of loan origination and deposit attraction.</li><li>Regulatory Environment: CFSB Bancorp and its bank are subject to comprehensive regulation by federal agencies, including the OCC and the Federal Reserve Board, impacting their operational activities and strategic decisions.</li><li>Future Outlook: The company plans to continue focusing on growing its balance sheet and improving profitability by emphasizing the origination of multi-family and commercial real estate loans, subject to market conditions.</li></ul> Strategic Initiatives <ul><li>Merger Agreement: The company entered into a Merger Agreement with Hometown Financial Group, MHC, which includes a series of mergers culminating in the Bank merging with North Shore Bank. This strategic initiative aims to enhance the company's market position and operational scale.</li><li>Capital Management: The company repurchased $495,000 of its own stock during the year ended June 30, 2025. Additionally, the company maintained a strong liquidity position with a net increase in deposits of $3.3 million and had $10.4 million in Federal Home Loan Bank advances. The company also had the ability to borrow an additional $53.0 million from the Federal Home Loan Bank of Boston.</li><li>Future Outlook: The company anticipates having sufficient funds to meet its current funding commitments, with plans to increase loans supported by an increase in core deposits and supplemented by Federal Home Loan Bank advances as needed. The merger with Hometown Financial Group is expected to provide further strategic growth opportunities.</li></ul> Challenges and Risks <ul><li>Merger-Related Risks: The pending merger with Hometown Financial Group presents uncertainties that could impair CFSB Bancorp's ability to attract and retain key personnel and maintain customer relationships. The merger agreement restricts certain business actions, potentially limiting business opportunities. Significant costs related to the merger are expected, and there is no assurance that the anticipated benefits will offset these costs.</li><li>Regulatory Risks: The merger requires approvals from various regulatory authorities, which may impose conditions that could delay completion or increase costs. Failure to complete the merger by March 31, 2026, allows either party to terminate the agreement, potentially impacting CFSB Bancorp's future business and financial results.</li><li>Lending Risks: A downturn in the local real estate market could negatively impact profitability, as almost all loans are secured by real estate. The company also faces risks related to its allowance for credit losses, which may not be sufficient to cover actual loan losses, especially as it increases its portfolio of multi-family and commercial real estate loans.</li><li>Economic Risks: Inflation and adverse economic conditions in the primary market area could adversely affect financial performance. The company is particularly vulnerable to local economic downturns due to its high concentration of real estate-secured loans in Norfolk and Plymouth Counties, Massachusetts.</li><li>Operational Risks: The company relies heavily on technology, exposing it to risks of system failures, security breaches, and cyber-attacks. Additionally, reliance on third-party vendors introduces further cybersecurity risks.</li><li>Regulatory Compliance Risks: Non-compliance with laws such as the USA PATRIOT Act and Bank Secrecy Act could result in fines or sanctions. Changes in laws and regulations could also increase operational costs.</li><li>Market Risks: The company faces intense competition in its market area, which may limit growth and profitability. Its smaller asset size compared to competitors may hinder its ability to compete effectively.</li></ul>SEC Filing: CFSB Bancorp, Inc. /MA/ [ CFSB ] - 10-K - Sep. 18, 2025</div></div>

CFSB

CFSB Bancorp, Inc. has released its annual 10-K report, highlighting a total interest and dividend income of $13.1 million, a 12.2% increase from the previous year. However, the company reported a net loss of $265,000, compared to a net income of $33,000 last year. The report outlines the company's focus on residential real estate loans, its merger agreement with Hometown Financial Group, and the challenges posed by regulatory and economic risks. The company aims to enhance profitability through strategic growth initiatives while navigating potential merger-related uncertainties.

CFSB Bancorp, Inc. /MA/ SEC 10-K Report