CFSB Bancorp, Inc. reported its financial results for the three months ended September 30, 2024, revealing a net loss of $6,000, a significant decline from a net income of $123,000 in the same period of 2023. This represents a decrease of $129,000, or 104.9%. The company's total interest and dividend income increased by $487,000, or 17.8%, to $3,219,000, while total interest expense surged by $650,000, or 70.2%, to $1,576,000, leading to a net interest income of $1,714,000 after the reversal of credit losses, down from $1,972,000 in the prior year.

Total assets rose slightly by $1.1 million, or 0.3%, to $364.5 million as of September 30, 2024, compared to $363.4 million at June 30, 2024. Cash and cash equivalents increased by $3.7 million, or 13.8%, to $30.7 million. Total deposits also saw a modest increase of $829,000, or 0.3%, reaching $271.7 million. However, net loans decreased by $2.4 million, or 1.4%, to $168.0 million, reflecting a broader trend of reduced lending activity.

The company adopted the Current Expected Credit Loss (CECL) methodology on July 1, 2023, which impacted its allowance for credit losses. As of September 30, 2024, the allowance for credit losses for loans was $1.5 million, or 0.89% of total loans, compared to $1.6 million, or 0.94% of total loans, a year earlier. A credit loss reversal of $71,000 was recorded for the period, attributed to favorable economic conditions and strong asset quality.

Non-interest income increased by $10,000, or 6.3%, to $170,000, while non-interest expenses decreased by $45,000, or 2.3%, to $1.9 million, primarily due to a reduction in salaries and employee benefits. The provision for income taxes also decreased significantly to $19,000 from $93,000 in the previous year.

CFSB Bancorp's capital ratios remained robust, with total capital at $65.6 million, representing a ratio of 34.4% to risk-weighted assets, well above the minimum requirements. The company continues to manage its interest rate risk through various strategies, including diversifying its loan mix and maintaining a strong capital position.

In strategic developments, the company announced a stock repurchase plan on April 5, 2024, to buy back up to 152,287 shares of its common stock, representing approximately 5% of its outstanding shares. The plan does not have a scheduled expiration date and can be suspended or discontinued by the Board of Directors at any time.