CFSB Bancorp is the holding company for Colonial Federal Savings Bank, a small community savings bank based in Quincy, Massachusetts with three full-service branches in Norfolk County, just south of Boston. The Bank operates a traditional community bank model: it takes in deposits from local residents and businesses, then lends that money out primarily as residential mortgage loans. About 79% of the loan portfolio is 1-4 family residential mortgages, mostly fixed-rate, 30-year loans on owner-occupied properties. The Bank retains all loans it originates rather than selling them. The remaining loan book includes multi-family real estate (~9%), commercial real estate (~8%), and smaller amounts of home equity and consumer loans. The Bank also holds a significant investment portfolio of mortgage-backed securities, municipal bonds, and corporate bonds. Profitability is driven by the spread between deposit rates and loan yields. Deposits are split roughly half core deposits (checking, savings, money market) at very low rates, and half certificates of deposit at higher rates. The heavy weighting toward fixed-rate mortgages makes the Bank liability-sensitive — rising rates increase deposit costs faster than the loan book can reprice. The Bank is small, with 28 full-time employees and $366.6M in total assets. In May 2025, CFSB Bancorp entered into a merger agreement with Hometown Financial Group at $14.25 per share in cash. Shareholders approved the deal in September 2025, after which Colonial Federal will merge into Hometown Financial's subsidiary, North Shore Bank.