CFSB Bancorp, Inc. (CFSB): BCG Matrix [Dec-2025 Updated]

You're digging into CFSB Bancorp, Inc.'s portfolio right after the late 2025 acquisition by Hometown Financial Group, and honestly, the BCG map shows a bank caught between a rock and a hard place: while the core deposit base is a reliable Cash Cow, the company posted a -1.04% revenue decline for the last fiscal year and even saw a $6$ thousand net loss in Q1 2025, classifying the whole entity as a major Question Mark. We need to see which new initiatives qualify as Stars needing investment and which legacy areas are firmly stuck in the Dog quadrant before the new parent company makes its big moves.

Background of CFSB Bancorp, Inc. (CFSB)

CFSB Bancorp, Inc. operates as the holding company for Community First State Bank, a federally chartered community bank. You should know that this institution is primarily focused on serving individuals, businesses, and agricultural customers within north-central Arkansas. Its leadership structure emphasizes local decision-making, aiming to foster deep, relationship-driven banking partnerships across its regional footprint.

The core business involves traditional deposit-taking and lending activities. On the funding side, CFSB Bancorp offers checking accounts, savings accounts, money market accounts, and certificates of deposit. For lending, the company extends commercial and agricultural loans, consumer installment loans, residential mortgage financing, and various lines of credit to support its client base.

To support these core functions, CFSB Bancorp also provides complementary services. These include treasury management, merchant services, and digital access through online and mobile banking platforms, as well as remote deposit capture. This mix of services is designed to help clients manage their day-to-day financial operations.

Looking at the financial picture as of late 2025, the company reported a net loss of $6,000 for the first quarter of fiscal 2025, a shift from the net income of $123,000 seen in the first quarter of 2024. This indicates a deterioration in near-term profitability, which analysts tied to ongoing challenges from increased short-term interest rates and the yield curve inversion. The net interest margin contracted by 30 basis points to 1.92% in that quarter.

For the fiscal year ending June 30, 2025, CFSB Bancorp reported total annual revenue of $7.61M, representing a slight decrease of 1.04% year-over-year. As of the first quarter of 2025, total assets stood at $364.5 million, with deposits growing to $271.7 million. The trailing twelve months (TTM) Earnings Per Share (EPS) was negative at ($0.04), and the Price-to-Book Value per Share Ratio was 1.23.

A significant event near the end of this period was the announcement that Hometown Financial Group, Inc. was set to acquire CFSB Bancorp, Inc., leading to the stock being delisted on November 3, 2025. This acquisition marks the end of CFSB Bancorp, Inc.'s run as an independent entity on the public markets.

CFSB Bancorp, Inc. (CFSB) - BCG Matrix: Stars

You're looking at the units that are showing significant top-line momentum, even if the bottom line is still catching up. For CFSB Bancorp, Inc. (CFSB), the Star quadrant is defined by that recent, sharp revenue spike, which signals high market activity but also high cash consumption to maintain that pace.

The most concrete evidence of this high-growth characteristic came in the first quarter of fiscal 2025. CFSB Bancorp, Inc. (CFSB) reported revenue of $3.389 million for QQ1 2025. That figure represents a year-over-year increase of 17.19%. That's a serious burst of growth, but honestly, it didn't translate to the bottom line that quarter, as the result was a net loss of $6 thousand. This dynamic-high revenue growth coupled with thin or negative profitability-is classic Star behavior; you're spending heavily to capture market share.

This high-growth phase is set to conclude with a major structural change. The definitive merger agreement to be acquired by Hometown Financial Group, Inc. for $14.25 per share, valuing the transaction at approximately $44 million, is expected to close in the fourth quarter of 2025. This acquisition is the ultimate investment in a high-potential area, aiming to transition these growth engines into stable Cash Cows under a larger umbrella.

Here's a quick look at the financial context surrounding this growth period:

We map the specific business units against the Star criteria as follows:

• Digital banking and mobile wallet services, a high-growth industry segment, but CFSB's market share is low.
• Commercial lending initiatives, which often drive higher growth than residential, but CFSB's specific portfolio size is not a market leader.
• The 17.2% year-over-year revenue increase in Q1 2025, showing a burst of growth that was not sustained for the full fiscal year.
• Expansion of branch services into new, high-density areas within Norfolk County, Massachusetts; the Colonial Federal branches in Quincy, Holbrook, and Weymouth are part of this footprint being absorbed by North Shore Bank post-merger.

The pressure on profitability is clear when you see the Net Interest Margin contracted by 30 basis points to 1.92% in Q1 2025, while interest expense jumped 70.2% year-over-year. That's the cash burn required to keep the growth engine running.

CFSB Bancorp, Inc. (CFSB) - BCG Matrix: Cash Cows

Cash Cows for CFSB Bancorp, Inc. (CFSB) are characterized by their high market share in mature segments, which translates into reliable cash generation, even if the overall growth prospects for those segments are limited. These business lines require minimal investment to maintain their position, allowing them to fund other areas of the bank.

The core deposit base represents a classic Cash Cow characteristic for CFSB Bancorp, Inc. This base is built upon a long-standing community presence, which historically secures low-cost funding. While the specific breakdown of checking, savings, and Certificates of Deposit (CDs) is not fully detailed in the Q1 2025 filings, the cost structure reveals the pressure on this base. The cost of deposits rose to 2.15% year-over-year, up from 1.34% YoY, indicating increased competition for core funding, though the total deposit base remained substantial at $271.7 million as of the Q1 2025 period ending September 30, 2024. The increase in interest-bearing deposit expense alone rose by $581,000 year-over-year, driven by a mix shift toward higher-cost CDs.

The large, stable investment portfolio is the most dominant asset feature, acting as a significant reservoir of liquidity and a source of stable, albeit interest-rate-sensitive, income. This portfolio stood at $314.876 million in long-term investments as of Q1 2025. This figure represents a significant portion of the bank's $364.486 million in total assets for the same period. The income derived from this portfolio, including interest and dividends on securities, contributed to the $481,000 year-over-year increase in total interest and dividend income for the quarter.

Traditional residential mortgage lending, a mature product line, is supported by a strong local market share, which is implied by the bank's community focus. While specific mortgage volume is not isolated, the quality of the loan book, which underpins this segment, is a key indicator of stability. The allowance for credit losses on loans was maintained at a conservative 0.89% of total loans at the end of the Q1 2025 reporting period, and the quarter even saw credit loss reversals supporting the results, suggesting low immediate risk exposure in the existing portfolio.

Fee income from established services, such as treasury management for small businesses within its regional footprint, contributes to the non-interest income stream. Total Non-interest Income for the three months ended September 30, 2024, was $170,000. This figure reflects income from services like treasury management, alongside other sources such as income on bank-owned life insurance. The Net Interest Margin (NIM) for the same quarter compressed to 1.92% year-over-year, reflecting the pressure on core earning assets despite higher yields on cash and securities.

The financial profile of these Cash Cow segments can be summarized:

• Total Deposits (Q1 2025): $271.7 million
• Long-Term Investments (Q1 2025): $314.876 million
• Total Assets (Q1 2025): $364.486 million
• Total Non-interest Income (Q1 2025): $170,000
• Net Interest Margin (Q1 2025): 1.92%

The stability of the asset base is further evidenced by the balance sheet structure, which shows the investment portfolio dominating the asset mix relative to the loan portfolio, a typical trait for a mature, cash-generating unit that prioritizes stability over aggressive loan growth in a low-growth environment. The bank reported a net loss of $6,000 for Q1 2025, yet the underlying asset quality and the size of the investment portfolio confirm the Cash Cow status of its core funding and investment operations.

CFSB Bancorp, Inc. (CFSB) - BCG Matrix: Dogs

You're looking at the portfolio of CFSB Bancorp, Inc. (CFSB) and seeing a clear candidate for the Dogs quadrant. Honestly, the numbers here suggest a business unit that's struggling to generate meaningful returns in a mature, low-growth space. Dogs are units with low market share and low growth, and they often just consume management time without delivering cash back. Expensive turn-around plans rarely work here, so divestiture is usually the cleaner path.

The overall financial trend for CFSB Bancorp, Inc. leading up to the acquisition confirms this low-momentum profile. For the fiscal year ending June 30, 2025, the company saw its annual revenue decline by -1.04%, landing at $7.61M in revenue for the trailing twelve months (TTM). That top-line contraction, even before accounting for the merger that closed November 1, 2025, shows a lack of organic traction in its market.

The competitive standing is weak, which is a hallmark of a Dog. CFSB Bancorp, Inc. registered a MarketRank™ score that placed it in the 13th Percentile when compared against its finance sector peers. That low percentile ranking reflects a limited competitive position, suggesting that even if the market grew, CFSB Bancorp, Inc. wasn't capturing significant share.

Here's a quick look at some key metrics that paint the picture of low performance leading into the final quarter before the acquisition:

Profitability is definitely a struggle, as evidenced by the immediate results from the start of the fiscal year. The first quarter of 2025 (Q1 2025) resulted in a net loss amounting to $6 thousand ($0.00 EPS). This loss occurred despite a year-over-year revenue increase of 17.19% in that specific quarter, showing that revenue growth wasn't translating to the bottom line due to margin pressure, like the Net Interest Margin (NIM) compression to 1.92%.

The physical footprint also speaks to a limited scope, characteristic of a unit that hasn't scaled effectively. The business operated with a small, limited branch network consisting of just three locations:

• Quincy
• Holbrook
• Weymouth

These three locations served a competitive eastern Massachusetts market. The limited physical presence suggests low market penetration, which aligns perfectly with the low market share component of the Dog classification.

The financial reality is that even with asset growth to $364.5 million in Q1 2025, the core earnings power was negative, leading to a trailing twelve-month Return on Equity (ROE) of -0.35%. This unit frequently breaks even or consumes cash, which is why these business units are prime candidates for divestiture; the money tied up here brings back almost nothing in return.

CFSB Bancorp, Inc. (CFSB) - BCG Matrix: Question Marks

The Question Marks quadrant represents business units or entities within CFSB Bancorp, Inc. that operate in high-growth markets but currently possess a low relative market share. These units typically consume significant cash while generating low returns, but they hold the potential to become Stars with heavy investment.

The entire independent entity of CFSB Bancorp, Inc., which was acquired for approximately $44 million by Hometown Financial Group in 2025, fits the profile of a Question Mark that is now facing a critical strategic decision-either be heavily invested by the acquirer or be divested/integrated. The deal, announced in May 2025, valued CFSB shareholders at $14.25 in cash per share. This acquisition will ultimately see Colonial Federal Savings Bank merge into North Shore Bank, creating a larger entity with projected consolidated assets of nearly $6.9 billion for the parent group.

The underlying financial performance of CFSB Bancorp, Inc. as of the first quarter of 2025 highlights the cash-consuming nature associated with this quadrant. The company reported an operating income of only $13 thousand, representing a year-over-year decline of 93.98%. This low return, juxtaposed against the need for capital to compete in evolving banking markets, positions the pre-acquisition entity squarely in this category.

You are looking at a business that, despite strong asset quality-reporting no non-performing or delinquent loans at quarter-end-struggled with profitability, posting a net loss of $6,000 in Q1 2025. The Net Interest Margin (NIM) compressed to 1.92%, down from 2.22% year-over-year, driven by rising deposit costs. Here's the quick math on the Q1 2025 balance sheet context:

New, unproven product lines requiring significant capital investment, such as advanced fintech integration, are classic Question Marks. While specific 2025 investment figures for CFSB Bancorp, Inc. in this area are not detailed, the overall modest operating income of only $13 thousand in Q1 2025 suggests that any substantial, high-growth technology initiative would be a heavy cash drain, aligning perfectly with the Question Mark profile. These investments are necessary to keep pace with larger regional banks, but they currently yield little return.

Segments like consumer installment loans represent an area that can be high-growth but carries higher risk and, for a smaller institution like the pre-acquisition CFSB Bancorp, Inc., likely a low market share compared to larger regional banks. The company did offer consumer installment loans, alongside commercial and agricultural loans. To grow this segment quickly requires capital for marketing, underwriting infrastructure, and absorbing initial credit losses, which consumes cash. Still, if the local market adoption is high, this could transition into a Star.

Wealth management and financial planning services also fit this description. These services are high-potential, offering recurring fee income, but they require substantial investment to scale beyond the local community footprint of the former Colonial Federal Savings Bank branches in Quincy, Holbrook, and Weymouth. Building out the necessary technology, compliance, and specialized personnel to compete effectively demands cash outlay before market share gains materialize. The low profitability metrics from Q1 2025 indicate that CFSB Bancorp, Inc. lacked the internal cash generation to fund this scaling effectively, making it a prime candidate for the acquirer to either fund aggressively or divest.

The strategic imperative for these Question Marks is clear:

• Invest heavily to quickly gain market share, aiming for Star status.
• Divest or integrate into a larger, more capable unit if growth potential is deemed insufficient.

The merger with Hometown Financial Group effectively forces this decision for all CFSB Bancorp, Inc. operations. Finance: draft 13-week cash view by Friday.