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CFSB Nasdaq· CFSB Bancorp Inc
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CFSB Nasdaq· CFSB Bancorp Inc
Earnings report Q4 2023

CFSB Bancorp, Inc. Reports Decrease in Revenue for the Latest Quarter

Segments of Revenue

CFSB Bancorp, Inc. reported a total interest and dividend income of $2.80 billion for the three months ended December 31, 2023. This represents a decrease compared to the same period last year when the company reported $2.68 billion in revenue. The breakdown of the revenue sources is as follows:

  • Interest and fees on loans: $1.76 billion
  • Interest and dividends on taxable debt securities: $904 million
  • Interest and dividends on tax-exempt debt securities: $93 million
  • Interest on short-term investments and certificates of deposit: $49 million

Strengths

Despite the decrease in revenue, CFSB Bancorp, Inc. remains strong in several areas. The company's interest and fees on loans increased by $101 million compared to the same period last year, indicating growth in their loan portfolio. This growth can be attributed to the company's effective lending strategies and the overall strength of the economy. Additionally, the management comments highlight the company's focus on managing credit risk, which is crucial for maintaining a healthy loan portfolio.

Challenges

One of the challenges faced by CFSB Bancorp, Inc. in the latest quarter is the decrease in overall revenue. The company reported a net interest income of $1.64 billion, which is significantly lower than the $2.34 billion reported in the same period last year. This decrease can be attributed to the decline in interest income from loans and debt securities. The company also experienced an increase in interest expense, primarily due to higher deposit costs. Managing these challenges will be crucial for the company to improve its financial performance in the future.

Noteworthy

It is worth noting that CFSB Bancorp, Inc. reported a net loss of $210 million for the latest quarter, compared to a net income of $341 million in the same period last year. This loss can be attributed to the provision for credit losses, which amounted to $104 million. The company also reported a comprehensive loss of $208 million, primarily driven by unrealized holding losses on certain investments.

Summary

CFSB Bancorp, Inc. faced a challenging quarter with a decrease in revenue and a net loss. However, the company's strengths lie in its growth in interest and fees on loans, indicating a strong loan portfolio. The management's focus on credit risk management is commendable and will help mitigate potential challenges in the future. It is important for the company to address the decline in overall revenue and manage interest expenses effectively to improve its financial performance.

Source documents

Form 10-Q  filed on Feb 07, 2024
51 pages scanned

Reference data

Company financials Q4 revenue 1.9M
Analyst estimates Q4 EPS missed by NaN%
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