CCSB Financial : Financial Statement of CCSB Financial Corp (June 30, 2022)

CCSB

FINANCIAL CORP.

FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

1178 West Kansas Street

Liberty, Missouri 64068

[phone]

CCSB FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

June 30, 2022 and September 30, 2021

			June 30,						September 30,
			2022							2021
ASSETS:		(Unaudited)
Cash and due from banks	$	1,116,682	$	6,772,921
Interest-bearing deposits in banks		20,589,593							31,953,796
Total cash and cash equivalents		21,706,275							38,726,717
Interest-bearing time deposits		4,675,821							7,176,013
Available-for-sale securities		31,660,409							7,615,258
Held-to-maturity securities		4,493,247							750,000
Federal Home Loan Bank stock		167,600							170,800
Loans, net of allowance for loan losses of $1,247,102 and $1,226,949
at June 30, 2022, and September 30, 2021, respectively		88,203,336							87,883,868
Premises and equipment, net		3,678,364							3,724,248
Accrued interest receivable		452,569							298,052
Bank-owned life insurance - cash surrender value		4,405,021							4,338,893
Deferred tax asset, net		1,012,188							544,887
Other assets		286,822							327,117
TOTAL ASSETS	$	160,741,652				$	151,555,853
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Demand	$	22,992,737	$	28,488,427
Public unit funds		22,447,792							16,473,983
Interest-bearing checking, savings and money market		89,826,820							79,273,555
Time deposits		13,164,886							13,454,615
Total deposits		148,432,235							137,690,580
Federal Home Loan Bank advances		-							-
Other borrowings		738,000							743,000
Advances from borrowers for taxes and insurance		727,202							1,084,495
Interest payable and other liabilities		1,132,221							484,914
TOTAL LIABILITIES			151,029,658							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 230,179 and 232,679 shares
at June 30, 2022, and September 30, 2021, respectively		(3,278,132)							(3,322,158)
Retained earnings - substantially restricted		5,570,505							5,478,318
Accumulated other comprehensive income (loss)		(1,974,344)							2,739
TOTAL STOCKHOLDERS' EQUITY		9,711,994							11,552,864
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$	160,741,652			$	151,555,853

See notes to consolidated financial statements.

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CCSB FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

For the Three- and Nine-Months Ended June 30, 2022 and 2021 (Unaudited)

		Three Months Ended				Nine Months Ended
		June 30,					June 30,
INTEREST AND DIVIDEND INCOME:		2022					2021				2022					2021
Loans	$	944,258	$	927,544	$	2,801,503	$	2,838,308
Investment and mortgage-backed securities		125,227					19,046				248,735					57,568
Federal Home Loan Bank stock		1,286					229				4,034					2,903
Other interest-earning assets		71,754					43,206				148,662					130,033
TOTAL INTEREST AND DIVIDEND INCOME		1,142,525					990,025				3,202,934					3,028,812
INTEREST EXPENSE:
Deposits		96,199					52,197				189,481					168,625
Borrowings		7,091					13,159				24,752					35,661
TOTAL INTEREST EXPENSE		103,290					65,356				214,233					204,286
NET INTEREST INCOME		1,039,235					924,669				2,988,701					2,824,526
Provision for loan losses		-					-				-					-
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
	1,039,235					924,669				2,988,701					2,824,526
NONINTEREST INCOME:
Charges and other fees on loans		28,989					29,374				92,489					90,845
Amortization of mortgage servicing rights		(18,260)					(21,169)				(56,851)					(65,606)
Charges and other fees on deposit accounts		67,872					67,955				206,148					188,185
Increase in cash surrender value of bank-owned life insurance		21,992					22,276				66,128					68,211
Net gain on the sale of loans		15,237					50,262				67,578					244,634
Other		8,416					4,977				132,132					15,237
TOTAL NONINTEREST INCOME		124,246					153,675				507,624					541,506
NONINTEREST EXPENSE:
Compensation and benefits		642,143					636,643				1,842,816					1,838,358
Occupancy and equipment		115,598					108,872				326,393					317,075
Data processing		118,561					110,611				337,372					329,923
Federal Deposit Insurance Corporation insurance premium		21,000					11,038				64,717					29,637
Audit, legal and other professional services		34,679					48,540				126,430					128,828
Advertising and marketing		17,751					14,840				50,861					41,718
Correspondent banking service charges		4,582					4,224				13,689					12,372
Other		118,220					104,749				359,816					325,571
TOTAL NONINTEREST EXPENSE		1,072,534					1,039,517				3,122,094					3,023,482
NET INCOME BEFORE INCOME TAXES		90,947					38,827				374,231					342,550
PROVISION FOR INCOME TAXES		6,145					5,123				58,252					70,471
NET INCOME	$	84,802				$	33,704			$	315,979		$	272,079
BASIC AND DILUTED EARNINGS PER SHARE	$	0.11	$	0.05	$	0.42	$	0.37

See notes to consolidated financial statements.

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CCSB FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended June 30, 2022 and 2021 (Unaudited)

			Nine Months Ended
			June 30,
			2022			2021
CASH FLOW FROM OPERATING ACTIVITIES:
Net income	$	315,979	$	272,079
Items not requiring (providing) cash:
Depreciation and amortization		135,278			126,169
Amortization of premiums and discounts on securities		126,535			(7,150)
Amortization of mortgage-servicing rights		56,851			36,890
Deferred loan fees, net		(9,905)			118,623
Originations of mortgage loans held for sale		(2,716,675)			(7,087,835)
Proceeds from the sale of mortgage loans		2,784,253			7,179,904
Net gain on sale of loans		(67,578)			(157,569)
Changes in:
Deferred income tax liability		58,252			(254,591)
Accrued interest receivable		(154,517)			(113,647)
Cash surrender value of bank-owned life insurance		(66,128)			(72,709)
Other assets		(16,829)			(30,380)
Interest payable and other liabilities		647,307			(498,076)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		1,092,823			(488,292)
CASH FLOW FROM INVESTING ACTIVITIES:
Net change in loans		(309,563)			(6,594,901)
Proceeds from sales, maturity or call of available-for-sale securities		-			2,256,829
Purchases of available-for-sale securities		(26,762,691)			(500,000)
Principal collections on available-for-sale securities		91,162			23,048
Reinvestment of interest on interest-bearing time deposits		(1,091)			(5,042)
Purchases of held-to-maturity securities		(3,745,767)			-
Purchases of interest-bearing time deposits		(250,000)			(2,981,092)
Proceeds from maturity of interest-bearing time deposits		2,751,283			1,485,000
Redemption (purchase) of FHLB stock, net		3,200			20,000
Purchases of premises and equipment		(89,394)			(196,005)
NET CASH USED IN INVESTING ACTIVITIES			(28,312,861)			(6,492,163)
CASH FLOW FROM FINANCING ACTIVITIES:
Net change in deposits		10,741,655			23,048,419
Repayment of Federal Home Loan Bank fixed-maturity advances		-			(500,000)
Increase in other borrowings		(5,000)			25,000
Cash dividends		(223,792)			(222,737)
Proceeds from (acquisiton of) treasury stock		44,026			(23,337)
Net decrease in advances from borrowers for taxes and insurance		(357,293)			(396,146)
NET CASH PROVIDED BY FINANCING ACTIVITIES			10,199,596			21,931,199
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(17,020,442)			14,950,744
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		38,726,717			17,388,534
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	21,706,275		$	32,339,278

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- and nine-month period ended June 30, 2022, 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 June 30, 2022 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 June 30, 2022, 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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