CCSB
FINANCIAL CORP.
FINANCIAL STATEMENTS (UNAUDITED)
December 31, 2021
1178 West Kansas Street
Liberty, Missouri 64068
(816) 781-4500
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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CCSB Financial Corp. published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2022 17:12:10 UTC.