Executive Summary
CFSB Bancorp Inc, the holding company for Colonial Federal Savings Bank, reported QQ4 2024 results with revenue of $3.421 million, up 19.4% year over year and 9.3% quarter over quarter. Despite top-line growth, net income was modest at $0.160 million and earnings per share (EPS) stood at $0.03 due to a substantial interest expense of $1.507 million and a favorable tax line that produced a negative tax expense of $0.106 million. The quarter maintained an overall positive operating result (operating income of $0.054 million), but the bottom line remains highly sensitive to funding costs, given the structure of the balance sheet and the sizable interest burden relative to revenue.
From a balance-sheet perspective, total assets stood at $363.4 million with cash and cash equivalents of $26.96 million. The most striking feature is an unusually large goodwill/intangible asset base of $291.93 million, representing a substantial portion of non-current assets. This raises impairment risk considerations and places a focus on ongoing capital planning and asset quality over time. Liquidity metrics are tight by traditional banking standards, with current/quick/cash ratios around 0.33 and a current liability base that appears larger than current assets, underscoring liquidity sensitivity in a rising-rate environment.
On the cash-flow front, operating cash flow was modest at $0.308 million for QQ4 2024, with financing activities contributing meaningfully to the cash position (+$5.124 million) and free cash flow of $0.268 million reported. The financing activity pattern suggests one-off or episodic funding actions rather than ongoing organic balance-sheet expansion. Trading multiples imply modestly depressed valuation relative to book value (price-to-book about 0.54) and elevated price-to-earnings (around 64.6x), reflecting the small-bank niche and the high weight of intangible assets in the balance sheet.
Overall, the quarterly results point to a company with positive but constrained profitability, a balance-sheet profile dominated by intangibles, and liquidity characteristics that require close monitoring as interest rates and competitive dynamics evolve in the regional banking landscape.
Key Performance Indicators
QoQ: -0.38% | YoY:-11.57%
QoQ: 165.85% | YoY:-56.45%
QoQ: 500.00% | YoY:52.38%
QoQ: 400.00% | YoY:50.00%
Key Insights
Revenue: $3.421 million in QQ4 2024, up 19.41% YoY and 9.30% QoQ. Gross profit: $1.819 million; gross margin 53.17% (YoY margin down from prior period by 11.57%, QoQ down 0.38%). Operating income: $0.054 million; operating margin 1.58% (YoY -56.45%, QoQ +165.85%). Net income: $0.160 million; net margin 4.68% (YoY +52.38%, QoQ +500%). EPS: $0.03 (YoY +50%, QoQ +400%). Interest expense: $1.507 million, a substantial drag on profitability given revenue and gross profit levels. EBITDA: $0.116 millio...
Financial Highlights
Revenue: $3.421 million in QQ4 2024, up 19.41% YoY and 9.30% QoQ. Gross profit: $1.819 million; gross margin 53.17% (YoY margin down from prior period by 11.57%, QoQ down 0.38%). Operating income: $0.054 million; operating margin 1.58% (YoY -56.45%, QoQ +165.85%). Net income: $0.160 million; net margin 4.68% (YoY +52.38%, QoQ +500%). EPS: $0.03 (YoY +50%, QoQ +400%). Interest expense: $1.507 million, a substantial drag on profitability given revenue and gross profit levels. EBITDA: $0.116 million; EBITDA margin ~3.39%. Cash flow from operations: $0.308 million; free cash flow: $0.268 million. Cash at end of period: $26.96 million. Total assets: $363.44 million; total liabilities: $287.39 million; total stockholders’ equity: $76.05 million. Current ratio: 0.34; quick ratio: 0.34; cash ratio: 0.32, indicating liquidity constraints. Total debt: $11.23 million; net debt: -$15.73 million (net cash). Return on assets: 0.04%; return on equity: 0.21%; return on capital employed: 0.32%. Price-to-book: 0.54x; price-to-sales: 12.08x; price-to-earnings: 64.59x; enterprise value multiple: 474.14x. Dividend yield: 0%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.42M |
19.41% |
9.30% |
| Gross Profit |
1.82M |
-11.57% |
-0.38% |
| Operating Income |
54.00K |
-56.45% |
165.85% |
| Net Income |
160.00K |
52.38% |
500.00% |
| EPS |
0.03 |
50.00% |
400.00% |
Key Financial Ratios
operatingProfitMargin
2.57%
operatingCashFlowPerShare
$0.05
freeCashFlowPerShare
$0.04
Management Commentary
Note: No earnings call transcript was provided in the data. Consequently, there are no management quotes or thematic highlights to extract. An actionable synthesis will rely on the disclosed financials and public filings; readers should reference the QQ4 2024 press release and 10-Q/annual report for direct management commentary. Suggested areas management would likely address in a typical call given the results include: (1) monetization of the balance sheet structure and the impact of high interest expense on net income; (2) strategies to strengthen liquidity and deposit generation in a tight funding environment; (3) commentary on the large intangible asset base and any impairment risk considerations; (4) capital planning around loan portfolios and risk management in a regional banking context.
Forward Guidance
There is no explicit forward guidance provided in the data. Based on the QQ4 2024 results and the surrounding market environment for regional banks, the key forward-looking factors to monitor include: (i) net interest income trajectory as rates stabilize or rise, given the sizeable interest expense relative to revenue; (ii) deposit growth and funding costs to support liquidity and margin; (iii) ongoing assessment of the intangible asset base (goodwill/intangibles of $291.9m) and potential impairment risk; (iv) credit quality and loan mix in the Colonial Federal Savings Bank franchise; and (v) regulatory capital adequacy and profitability at a micro-cap bank level. Management commentary, if provided in subsequent filings or calls, should clarify any targets for revenue growth, expense control, NIM optimization, and capital deployment. Investors should monitor quarterly filings for any cadence of outlook updates, risk flags around liquidity, and potential one-off items related to financing activities.