CCSB Financial : Financial Statement - CCSB Financial Corp

CCSB

FINANCIAL CORP.

FINANCIAL STATEMENTS (UNAUDITED)

December 31, 2021

1178 West Kansas Street

Liberty, Missouri 64068

[phone]

CCSB FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

December 31, 2021 and September 30, 2021

		December 31,		September 30,
		2021			2021
		(Unaudited)
ASSETS:
Cash and due from banks	$	1,697,661	$	6,772,921
Interest-bearing deposits in banks		14,923,546			31,953,796
Total cash and cash equivalents		16,621,207			38,726,717
Interest-bearing time deposits		5,654,729			7,176,013
Available-for-sale securities		20,172,892			7,615,258
Held-to-maturity securities		750,000			750,000
Federal Home Loan Bank stock		163,300			170,800
Loans, net of allowance for loan losses of $1,226,949
at December 31, 2021, and September 30, 2021		86,673,354			87,883,868
Mortgage loans held for sale		544,000			-
Premises and equipment, net		3,706,719			3,724,248
Accrued interest receivable		329,056			298,052
Bank-owned life insurance - cash surrender value		4,361,385			4,338,893
Deferred income taxes		569,521			544,887
Other assets		308,945			327,117
TOTAL ASSETS	$	139,855,108		$	151,555,853
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Demand	$	22,277,034	$	28,488,427
Public unit funds		10,387,525			16,473,983
Interest-bearing checking, savings and money market		81,378,565			79,273,555
Time deposits		13,297,047			13,454,615
Total deposits		127,340,171			137,690,580
Other borrowings		768,000			743,000
Advances from borrowers for taxes and insurance		218,303			1,084,495
Interest payable and other liabilities		129,876			484,914
TOTAL LIABILITIES		128,456,350			140,002,989
Commitments and contingencies:
Preferred stock, $0.01 par value; 500,000 shares authorized; none issued		-			-
Common stock, $0.01 par value; 2,500,000 shares
authorized; 978,650 shares issued		9,787			9,787
Additional paid-in capital		9,384,178			9,384,178
Treasury stock, at cost, of 232,679 shares at
December 31, 2021, and September 30, 2021		(3,322,158)			(3,322,158)
Retained earnings - substantially restricted		5,489,865			5,478,318
Accumulated other comprehensive income (loss)		(162,914)			2,739
TOTAL STOCKHOLDERS' EQUITY		11,398,758			11,552,864
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$	139,855,108		$	151,555,853

See notes to consolidated financial statements.

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CCSB FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

For the Three Months Ended December 31, 2021 and 2020 (Unaudited)

		Three Months Ended
		December 31,
		2021			2020
INTEREST AND DIVIDEND INCOME:
Loans	$	954,077	$	1,001,367
Investment and mortgage-backed securities		45,508			18,932
Federal Home Loan Bank stock		1,452			1,629
Other income		40,130			44,173
TOTAL INTEREST AND DIVIDEND INCOME		1,041,167			1,066,101
INTEREST EXPENSE:
Deposits		43,823			59,808
Borrowings		8,466			10,022
TOTAL INTEREST EXPENSE		52,289			69,830
NET INTEREST INCOME		988,878			996,271
Provision for loan losses		-			-
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		988,878			996,271
NONINTEREST INCOME:
Charges and other fees on loans		30,570			31,816
Amortization of mortgage servicing rights		(19,050)			(22,274)
Charges and other fees on deposit accounts		67,571			55,878
Increase in cash surrender value of bank-owned life insurance		22,493			24,022
Net gain on the sale of loans		14,539			122,373
Other		6,271			5,298
TOTAL NONINTEREST INCOME		122,394			217,113
NONINTEREST EXPENSE:
Compensation and benefits		584,305			598,750
Occupancy and equipment		105,305			97,314
Data processing		112,627			106,426
Federal Deposit Insurance Corporation insurance premium		22,717			9,599
Audit, legal and other professional services		47,747			40,477
Advertising & marketing		19,078			13,286
Correspondent banking service charges		4,347			4,065
Other		109,602			92,685
TOTAL NONINTEREST EXPENSE		1,005,728			962,602
NET INCOME BEFORE INCOME TAXES		105,544			250,782
PROVISION FOR INCOME TAXES		19,400			58,101
NET INCOME BEFORE INCOME TAXES	$	86,144		$	192,681
BASIC AND DILUTED EARNINGS PER SHARE
$	0.12	$	0.26

See notes to consolidated financial statements.

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CCSB FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended December 31, 2021 and 2020 (Unaudited)

		Three Months Ended
		December 31,
		2021			2020
CASH FLOW FROM OPERATING ACTIVITIES:
Net income	$	86,144	$	192,681
Items not requiring (providing) cash:
Depreciation and amortization		42,754			43,767
Amortization (accretion) of premiums and discounts on securities		43,133			(547)
Amortization of mortgage-servicing rights		19,050			22,274
Deferred loan fees, net		(7,310)			(91,578)
Increase in cash surrender value of bank-owned life insurance		(22,492)			(24,022)
Originations of mortgage loans held for sale		(1,316,600)			(3,629,910)
Proceeds from the sale of mortgage loans		787,139			3,606,933
Net gain on sale of loans		(14,539)			(122,373)
Changes in:
Accrued interest receivable		(31,004)			32,903
Other assets		(877)			(31,037)
Deferred income taxes		19,400			54,581
Interest payable and other liabilities		(355,038)			(476,665)
NET CASH USED IN OPERATING ACTIVITIES		(750,240)			(422,993)
CASH FLOW FROM INVESTING ACTIVITIES:
Net change in loans		1,217,824			(97,533)
Purchases of securities		(12,814,254)			(750,000)
Proceeds from call of securities		-			1,250,000
Principal collections on securities		3,799			-
Proceeds from maturity of interest-bearing deposits		1,521,829			-
Reinvestment of interest on interest-bearing time deposits		(545)			(5,704)
Redemption of FHLB stock, net		7,500			28,500
Purchases of premises and equipment		(25,225)			-
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(10,089,072)			425,263
CASH FLOW FROM FINANCING ACTIVITIES:
Net change in deposits		(10,350,409)			6,796,602
Repayments of Federal Home Loan Bank fixed-maturity advances		-			(750,000)
Increase in (repayment of) other borrowings		25,000			(10,000)
Cash dividends		(74,597)			(74,307)
Net decrease in advances from borrowers for taxes and insurance		(866,192)			(751,467)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(11,266,198)			5,210,828
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(22,105,510)			5,213,098
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		38,726,717			33,855,592
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	16,621,207	$	39,068,690

See notes to consolidated financial statements.

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CCSB FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1 - Basis of Presentation

The accompanying consolidated financial statements include the accounts of CCSB Financial Corp. (Company) and its wholly owned subsidiary, Clay County Savings Bank (Bank). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited interim consolidated financial statements have been prepared by management and have not been reviewed or audited by the Company's independent accountants. While management has intended to prepare the financial statements in accordance with generally accepted accounting principles, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated balance sheet of the Company, as of September 30, 2021, has been derived from the audited consolidated balance sheet for the Company as of that date. Operating results for the three-month period ended December 31, 2021, are not necessarily indicative of the results that may be expected for the entire fiscal year. These financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended September 30, 2021, contained in the Company's Annual Report.

Note 2 - Cash Equivalents

The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2021 and September 30, 2021, cash equivalents consisted of cash and accounts, noninterest-bearing and interest-bearing, with banks including the Federal Home Loan Bank and the Federal Reserve. The FDIC insurance limits are $250,000.

Note 3 - Securities

Securities classified as available for sale are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, net of tax. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on sales of securities are determined on the specific-identification method. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For available-for-sale securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. There was no other than temporary impairment recognized as of December 31, 2021, and September 30, 2021.

Note 4 - Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans.

For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan.

The accrual of interest on mortgage and commercial loans is discounted at the time the loan is 90 days past due unless the credit is well-secured and in collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal and interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Discounts and premiums on purchased residential real estate loans are amortized to income using the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments. Discounts and premiums on purchased consumer loans are recognized over the expected lives of the loans using methods that approximate the interest method.

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