LOS ANGELES--(BUSINESS WIRE)--
CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank, doing business as “CBB Bank” (the "Bank"), announced today net income of $4.5 million for the third quarter 2025, or $0.43 per diluted share compared to $4.4 million in the second quarter 2025, or $0.41 per diluted share.
Third Quarter 2025 Highlights
- Net income: $4.5 million, or $0.43 per diluted share
- Net interest margin: Expanded to 3.49%, compared to 3.46% in the prior quarter
- SBA loan sales: $14.5 million sold at an average premium of 7.1%
- Deposit: Increased $141.4 million, or 9.3% quarter-over-quarter
Net income for the third quarter of 2025 increased modestly from the prior quarter, as higher net interest income was partially offset by increased noninterest expenses and lower noninterest income.
The net interest margin for the third quarter 2025 was 3.49%, up slightly from 3.46% in the second quarter of 2025 but down from 3.71% in the third quarter of 2024. The efficiency ratio was 61.48%, compared with 59.99% in the prior quarter and 56.61% in the same period last year.
Richard Koh, President and CEO, said, “Despite the uncertain macroeconomic environment influenced by ongoing tariff and trade developments, we achieved improved earnings and solid balance sheet growth during the third quarter. Our strong deposit growth and higher net interest margin reflect the continued trust of our customers and disciplined execution by our team. We remain focused on sustaining prudent risk management, enhancing operational efficiency, and positioning CBB for long-term, profitable growth.”
INCOME STATEMENT
Net Interest Income
Net interest income for the third quarter 2025 was $15.7 million, an increase of $683 thousand or 4.5%, quarter over quarter and an increase of $254 thousand or 1.6%, higher than the third quarter of 2024. The quarter-over-quarter improvement was primarily driven by lower interest expense.
Net Interest Margin
The net interest margin for the third quarter 2025 was 3.49% compared 3.46% for the second quarter 2025 and 3.71% for the third quarter 2024. The 3-basis-point improvement from the prior quarter was mainly attributable to a 5-basis-point reduction in the cost of deposits, partially offset by a 1-basis-point decline in the yield on interest-earning assets. Total cost of funds decreased to 3.25% in the third quarter of 2025 from 3.29% in the second quarter and 3.60% a year earlier.
Provision for Credit Losses
The Company recorded a total provision for credit losses of $470 thousand for the third quarter of 2025, consisting of an on-balance sheet provision of $500 thousand and an off-balance sheet release of $30 thousand. This compares to a provision of $590 thousand in the second quarter of 2025 and a release of $100 thousand in the third quarter of 2024.
Noninterest Income
Noninterest income for the third quarter 2025 was $1.9 million, compared to $2.1 million in the prior quarter and $2.2 million in the same quarter of 2024, representing decreases of $231 thousand and $365 thousand, respectively. The quarter included a $29 thousand gain on the sale of other real estate owned (OREO).
Noninterest Expenses
Noninterest expenses totaled $10.8 million for the third quarter of 2025, compared to $10.3 million in the prior quarter and $10.0 million in the third quarter of 2024. The $532 thousand quarter-over-quarter increase was primarily driven by higher OREO-related expenses, third-party processing expenses, professional fees, insurance, personnel, and occupancy and equipment expenses.
Income Taxes
The Company’s effective tax rate for the third quarter 2025 was 27.9% compared to 29.8% for the second quarter 2025 and 28.4% for the third quarter 2024.
BALANCE SHEET
Investment Securities
Investment securities were $67.5 million at September 30, 2025, an increase of $1.9 million or 3.0% from June 30, 2025, and an increase of $4.3 million or 6.7% from September 30, 2024.
Loans Receivable
Loans receivable, including loans held-for-sale, totaled $1.45 billion as of September 30, 2025, representing a decrease of $14.5 million, or 1.0%, from June 30, 2025, and an increase of $26.7 million, or 1.9%, from a year earlier.
Allowance for Credit Losses and Asset Quality
The Allowance for Credit Losses (“ACL”) was $16.2 million at September 30, 2025, representing 1.27% of loans held-for-investment, compared to $15.5 million, or 1.21%, at June 30, 2025, and $15.9 million, or 1.30%, at September 30, 2024.
Total nonperforming assets decreased to $16.4 million at quarter-end from $16.7 million at June 30, 2025. They increased from $8.6 million a year earlier.
Substandard loans increased to $31.5 million from $30.4 million in the prior quarter, while delinquent loans declined to $23.6 million, compared to $25.2 million at June 30, 2025.
SBA Loans Held-for-Sale
Total SBA loans held-for-sale were $175.2 million as of September 30, 2025, compared to $184.0 million at June 30, 2025, and $198.0 million at September 30, 2024.
During the quarter, the Bank sold $14.5 million in SBA loans at an average premium of 7.1%, compared to $17.6 million sold at an 8.1% premium in the prior quarter and $20.2 million sold at a 6.8% premium in the same quarter of 2024.
Deposits
Total deposits were $1.67 billion at September 30, 2025, an increase of $141.4 million, or 9.3%, from the prior quarter and $218.7 million, or 15.1%, from a year earlier, reflecting continued strong deposit inflows.
Borrowings
The Bank had no outstanding borrowings as of September 30, 2025, consistent with the position since the second quarter of 2025.
Capital
Stockholders’ equity was $265.5 million at September 30, 2025, up $3.6 million, or 1.4%, from June 30, 2025. Tangible book value per share was $24.85, a decrease of $0.34, or 1.4%, quarter over quarter.
At quarter-end, Common Equity Tier 1 Risk-Based Capital Ratios were 19.26% for the Company and 19.22% for the Bank. Total Risk-Based Capital Ratios were 20.46% and 20.42%, respectively, and Leverage Ratios were 14.34% for the Company and 14.32% for the Bank. The Bank continues to be classified as “Well Capitalized” under applicable regulatory standards.
About CBB Bancorp, Inc.:
CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to-medium-sized businesses and does business as “CBB Bank.” As of September 30, 2025, the Bank had twelve full-service banking offices in Los Angeles and Orange Counties in California; Dallas County in Texas; Honolulu, Hawaii; and Bergen County, New Jersey. Three SBA regional offices in Los Angeles, Dallas, and Bergen Counties, and loan production offices in Georgia, Washington, and New York. For additional information, please go to www.cbb-bank.com under the tab “About Us” and select “Investor Relations” to see the 3Q 2025 Overview.
FORWARD-LOOKING STATEMENTS:
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CBB Bancorp, Inc. (the “Company”) intends that such forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described herein are necessarily subject to risks and uncertainties that may cause actual results to differ materially and adversely from those described herein. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause actual results to differ materially from those presented, either expressed or implied, in this news release include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.
The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances, except to the extent required by law.
| STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1 |
(Dollars in thousands, except per share amounts) |
| | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | June 30, | | $ | % | | September 30, | | $ | % | | September 30, | | September 30, | | $ | % |
| | 2025 | | | | 2025 | | | Change | Change | | | 2024 | | | Change | Change | | | 2025 | | | | 2024 | | | Change | Change |
| | | | | | | | | | | | | | | | | | |
| Interest income | $ | 28,338 | | | $ | 27,392 | | | $ | 946 | | 3.5 | % | | $ | 28,380 | | | $ | (42 | ) | (0.1 | %) | | $ | 83,197 | | | $ | 84,598 | | | $ | (1,401 | ) | (1.7 | %) |
| Interest expense | | 12,608 | | | | 12,345 | | | | 263 | | 2.1 | % | | | 12,904 | | | | (296 | ) | (2.3 | %) | | | 37,597 | | | | 37,950 | | | | (353 | ) | (0.9 | %) |
| Net interest income | | 15,730 | | | | 15,047 | | | | 683 | | 4.5 | % | | | 15,476 | | | | 254 | | 1.6 | % | | | 45,600 | | | | 46,648 | | | | (1,048 | ) | (2.2 | %) |
| | | | | | | | | | | | | | | | | | |
| Provision for credit losses | | 470 | | | | 590 | | | | (120 | ) | (20.3 | %) | | | (100 | ) | | | 570 | | (570.0 | %) | | | 1,560 | | | | 500 | | | | 1,060 | | 212.0 | % |
| Net interest income after provision for credit losses | | 15,260 | | | | 14,457 | | | | 803 | | 5.6 | % | | | 15,576 | | | | (316 | ) | (2.0 | %) | | | 44,040 | | | | 46,148 | | | | (2,108 | ) | (4.6 | %) |
| | | | | | | | | | | | | | | | | | |
| Gain on sale of loans | | 648 | | | | 900 | | | | (252 | ) | -28.0 | % | | | 991 | | | | (343 | ) | 388.9 | % | | | 2,569 | | | | 3,544 | | | | (975 | ) | (27.5 | %) |
| Loss on sale of OREO | | 29 | | | | (67 | ) | | | 96 | | (143.3 | %) | | | - | | | | 29 | | (100.0 | %) | | | (130 | ) | | | - | | | | (130 | ) | (100.0 | %) |
| SBA servicing fee income, net | | 705 | | | | 799 | | | | (94 | ) | (11.8 | %) | | | 760 | | | | (55 | ) | (7.2 | %) | | | 2,195 | | | | 2,161 | | | | 34 | | 1.6 | % |
| Recovery on impaired servicing liability | | - | | | | - | | | | - | | - | | | | - | | | | - | | - | | | | - | | | | 10 | | | | (10 | ) | (100.0 | %) |
| Service charges and other income | | 469 | | | | 450 | | | | 19 | | 4.2 | % | | | 465 | | | | 4 | | 0.9 | % | | | 1,415 | | | | 1,397 | | | | 18 | | 1.3 | % |
| Noninterest income | | 1,851 | | | | 2,082 | | | | (231 | ) | (11.1 | %) | | | 2,216 | | | | (365 | ) | (16.5 | %) | | | 6,049 | | | | 7,112 | | | | (1,063 | ) | (14.9 | %) |
| | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | 5,849 | | | | 5,779 | | | | 70 | | 1.2 | % | | | 5,884 | | | | (35 | ) | (0.6 | %) | | | 17,476 | | | | 17,835 | | | | (359 | ) | (2.0 | %) |
| Occupancy and equipment | | 1,378 | | | | 1,293 | | | | 85 | | 6.6 | % | | | 1,149 | | | | 229 | | 19.9 | % | | | 3,985 | | | | 3,385 | | | | 600 | | 17.7 | % |
| Marketing expense | | 397 | | | | 404 | | | | (7 | ) | (1.7 | %) | | | 423 | | | | (26 | ) | (6.1 | %) | | | 1,016 | | | | 1,228 | | | | (212 | ) | (17.3 | %) |
| Professional expense | | 699 | | | | 619 | | | | 80 | | 12.9 | % | | | 456 | | | | 243 | | 53.3 | % | | | 1,748 | | | | 1,308 | | | | 440 | | 33.6 | % |
| Other expenses | | 2,485 | | | | 2,181 | | | | 304 | | 13.9 | % | | | 2,104 | | | | 381 | | 18.1 | % | | | 7,092 | | | | 6,160 | | | | 932 | | 15.1 | % |
| Noninterest expense | | 10,808 | | | | 10,276 | | | | 532 | | 5.2 | % | | | 10,016 | | | | 792 | | 7.9 | % | | | 31,317 | | | | 29,916 | | | | 1,401 | | 4.7 | % |
| | | | | | | | | | | | | | | | | | |
| Income before income tax provision | | 6,303 | | | | 6,263 | | | | 40 | | 0.6 | % | | | 7,776 | | | | (1,473 | ) | (18.9 | %) | | | 18,772 | | | | 23,344 | | | | (4,572 | ) | (19.6 | %) |
| | | | | | | | | | | | | | | | | | |
| Income tax provision | | 1,758 | | | | 1,868 | | | | (110 | ) | (5.9 | %) | | | 2,207 | | | | (449 | ) | (20.3 | %) | | | 5,379 | | | | 6,623 | | | | (1,244 | ) | (18.8 | %) |
| | | | | | | | | | | | | | | | | | |
| Net income | $ | 4,545 | | | $ | 4,395 | | | $ | 150 | | 3.4 | % | | $ | 5,569 | | | $ | (1,024 | ) | (18.4 | %) | | $ | 13,393 | | | $ | 16,721 | | | $ | (3,328 | ) | (19.9 | %) |
| | | | | | | | | | | | | | | | | | |
| Effective tax rate | | 27.89 | % | | | 29.83 | % | | | -1.93 | % | -6.49 | % | | | 28.38 | % | | | -0.49 | % | -1.73 | % | | | 28.65 | % | | | 28.37 | % | | | 0.28 | % | 1.00 | % |
| | | | | | | | | | | | | | | | | | |
| Outstanding number of shares | | 10,588,136 | | | | 10,588,136 | | | | - | | - | | | | 10,588,136 | | | | - | | - | | | | 10,588,136 | | | | 10,588,136 | | | | - | | - | |
| | | | | | | | | | | | | | | | | | |
| Weighted average shares for basic EPS | | 10,588,136 | | | | 10,588,136 | | | | - | | - | | | | 10,588,136 | | | | - | | - | | | | 10,588,136 | | | | 10,588,136 | | | | - | | - | |
| Weighted average shares for diluted EPS | | 10,600,724 | | | | 10,593,497 | | | | 7,227 | | 0.1 | % | | | 10,596,039 | | | | 4,685 | | 0.0 | % | | | 10,599,692 | | | | 10,592,363 | | | | 7,329 | | 0.1 | % |
| | | | | | | | | | | | | | | | | | |
| Basic EPS | $ | 0.43 | | | $ | 0.42 | | | $ | 0.01 | | 2.4 | % | | $ | 0.53 | | | $ | (0.10 | ) | (18.9 | %) | | $ | 1.27 | | | $ | 1.58 | | | $ | (0.31 | ) | -19.6 | % |
| Diluted EPS | $ | 0.43 | | | $ | 0.41 | | | $ | 0.02 | | 4.9 | % | | $ | 0.53 | | | $ | (0.10 | ) | (18.9 | %) | | $ | 1.26 | | | $ | 1.58 | | | $ | (0.32 | ) | (20.3 | %) |
| | | | | | | | | | | | | | | | | | |
| Return on average assets | | 0.98 | % | | | 0.98 | % | | | 0.00 | % | 0.0 | % | | | 1.31 | % | | | (0.33 | %) | (25.2 | %) | | | 0.99 | % | | | 1.32 | % | | | (0.33 | %) | (25.0 | %) |
| Return on average equity | | 6.83 | % | | | 6.76 | % | | | 0.07 | % | 1.0 | % | | | 8.91 | % | | | (2.08 | %) | (23.3 | %) | | | 6.87 | % | | | 9.18 | % | | | (2.31 | %) | (25.2 | %) |
| | | | | | | | | | | | | | | | | | |
| Efficiency ratio¹ | | 61.48 | % | | | 59.99 | % | | | 1.49 | % | 2.5 | % | | | 56.61 | % | | | 4.87 | % | 8.6 | % | | | 60.63 | % | | | 55.65 | % | | | 4.98 | % | 8.9 | % |
| Yield on interest-earning assets² | | 6.27 | % | | | 6.28 | % | | | (0.01 | %) | (0.2 | %) | | | 6.80 | % | | | (0.53 | %) | (7.8 | %) | | | 6.27 | % | | | 6.79 | % | | | (0.52 | %) | (7.7 | %) |
| Cost of funds | | 3.25 | % | | | 3.29 | % | | | (0.04 | %) | (1.2 | %) | | | 3.60 | % | | | (0.35 | %) | (9.7 | %) | | | 3.29 | % | | | 3.53 | % | | | (0.24 | %) | (6.8 | %) |
| Net interest margin² | | 3.49 | % | | | 3.46 | % | | | 0.03 | % | 0.9 | % | | | 3.71 | % | | | (0.22 | %) | (5.9 | %) | | | 3.44 | % | | | 3.75 | % | | | (0.31 | %) | (8.3 | %) |
¹ | | Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income. |
² | | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
| BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2 |
| (Dollars in thousands) |
| | | | | | | | | | | |
| September 30, | | June 30, | | $ | % | | September 30, | | $ | % |
| | 2025 | | | | 2025 | | | Change | Change | | | 2024 | | | Change | Change |
| ASSETS | | | | | | | | | | | |
| Cash and due from banks | $ | 25,597 | | | $ | 11,873 | | | $ | 13,724 | | 115.6 | % | | $ | 14,892 | | | $ | 10,705 | | 71.9 | % |
| Interest-earning deposits at the FRB and other banks | | 385,282 | | | | 235,436 | | | | 149,846 | | 63.6 | % | | | 241,094 | | | | 144,188 | | 59.8 | % |
| Investment securities¹ | | 67,459 | | | | 65,518 | | | | 1,941 | | 3.0 | % | | | 63,208 | | | | 4,251 | | 6.7 | % |
| Loans held-for-sale | | 175,158 | | | | 183,996 | | | | (8,838 | ) | (4.8 | %) | | | 198,021 | | | | (22,863 | ) | (11.5 | %) |
| | | | | | | | | | | |
| Loans held-for-investment | | 1,272,474 | | | | 1,278,106 | | | | (5,632 | ) | (0.4 | %) | | | 1,222,865 | | | | 49,609 | | 4.1 | % |
| Less: Allowance for credit losses ("ACL") | | (16,151 | ) | | | (15,461 | ) | | | (690 | ) | (4.5 | %) | | | (15,948 | ) | | | (203 | ) | (1.3 | %) |
Loans held-for-investment, net | | 1,256,323 | | | | 1,262,645 | | | | (6,322 | ) | (0.5 | %) | | | 1,206,917 | | | | 49,406 | | 4.1 | % |
| | | | | | | | | | | |
Other real estate owned ("OREO") | | 297 | | | | 2,999 | | | | (2,702 | ) | -90.1 | % | | | 521 | | | | (224 | ) | NE |
| Restricted stock investments | | 11,011 | | | | 11,011 | | | | - | | - | | | | 11,011 | | | | - | | - | |
| Servicing assets | | 6,342 | | | | 6,609 | | | | (267 | ) | (4.0 | %) | | | 7,192 | | | | (850 | ) | (11.8 | %) |
| Goodwill | | 2,185 | | | | 2,185 | | | | - | | - | | | | 2,185 | | | | - | | - | |
| Intangible assets | | 186 | | | | 195 | | | | (9 | ) | (4.6 | %) | | | 224 | | | | (38 | ) | (17.0 | %) |
| Other assets | | 32,602 | | | | 32,359 | | | | 243 | | 0.8 | % | | | 25,284 | | | | 7,318 | | 28.9 | % |
| Total assets | $ | 1,962,442 | | | $ | 1,814,826 | | | $ | 147,616 | | 8.1 | % | | $ | 1,770,549 | | | $ | 191,893 | | 10.8 | % |
| | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | |
| Noninterest-bearing | $ | 280,351 | | | $ | 309,160 | | | $ | (28,809 | ) | (9.3 | %) | | $ | 318,807 | | | $ | (38,456 | ) | (12.1 | %) |
| Interest-bearing | | 1,385,920 | | | | 1,215,760 | | | | 170,160 | | 14.0 | % | | | 1,128,784 | | | | 257,136 | | 22.8 | % |
| Total deposits | | 1,666,271 | | | | 1,524,920 | | | | 141,351 | | 9.3 | % | | | 1,447,591 | | | | 218,680 | | 15.1 | % |
| | | | | | | | | | | |
| FHLB advances and other borrowing | | - | | | | - | | | | - | | - | | | | 50,000 | | | | (50,000 | ) | - | |
| Other liabilities | | 30,649 | | | | 27,972 | | | | 2,677 | | 9.6 | % | | | 22,415 | | | | 8,234 | | 36.7 | % |
| Total liabilities | | 1,696,920 | | | | 1,552,892 | | | | 144,028 | | 9.3 | % | | | 1,520,006 | | | | 176,914 | | 11.6 | % |
| | | | | | | | | | | |
| Stockholders' Equity | | 265,522 | | | | 261,934 | | | | 3,588 | | 1.4 | % | | | 250,543 | | | | 14,979 | | 6.0 | % |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 1,962,442 | | | $ | 1,814,826 | | | $ | 147,616 | | 8.1 | % | | $ | 1,770,549 | | | $ | 191,893 | | 10.8 | % |
| | | | | | | | | | | |
| CAPITAL RATIOS | | | | | | | | | | | |
| Leverage ratio | | | | | | | | | | | |
| Company | | 14.34 | % | | | 14.48 | % | | | (0.14 | %) | (0.9 | %) | | | 14.64 | % | | | (0.29 | %) | (2.0 | %) |
| Bank | | 14.32 | % | | | 14.45 | % | | | (0.13 | %) | (0.9 | %) | | | 14.58 | % | | | (0.26 | %) | (1.8 | %) |
| Common equity tier 1 risk-based capital ratio | | | | | | | | | | | |
| Company | | 19.26 | % | | | 18.98 | % | | | 0.28 | % | 1.5 | % | | | 19.03 | % | | | 0.23 | % | 1.2 | % |
| Bank | | 19.22 | % | | | 18.94 | % | | | - | | - | | | | 18.95 | % | | | 0.27 | % | 1.4 | % |
| Tier 1 risk-based capital ratio | | | | | | | | | | | |
| Company | | 19.26 | % | | | 18.98 | % | | | 0.28 | % | 1.5 | % | | | 19.03 | % | | | 0.23 | % | 1.2 | % |
| Bank | | 19.22 | % | | | 18.94 | % | | | - | | - | | | | 18.95 | % | | | 0.27 | % | 1.4 | % |
| Total risk-based capital ratio | | | | | | | | | | | |
| Company | | 20.46 | % | | | 20.13 | % | | | 0.33 | % | 1.6 | % | | | 20.26 | % | | | 0.20 | % | 1.0 | % |
| Bank | | 20.42 | % | | | 20.09 | % | | | 0.34 | % | 1.7 | % | | | 20.18 | % | | | 0.24 | % | 1.2 | % |
| Tangible book value per share | $ | 24.85 | | | $ | 24.51 | | | $ | 0.34 | | 1.4 | % | | $ | 23.44 | | | $ | 1.41 | | 6.0 | % |
| Loans Held for Investments-to-Deposit ("LHFITD") ratio | | 76.37 | % | | | 83.81 | % | | | (7.44 | %) | (8.9 | %) | | | 84.48 | % | | | (8.11 | %) | (9.6 | %) |
| Net Loan-to-Deposit ("LTD") ratio | | 85.91 | % | | | 94.87 | % | | | (8.96 | %) | (9.4 | %) | | | 97.05 | % | | | (11.14 | %) | (11.5 | %) |
| Nonperforming assets | $ | 16,399 | | | $ | 16,699 | | | $ | (300 | ) | (1.8 | %) | | $ | 8,558 | | | $ | 7,841 | | 91.6 | % |
| Nonperforming assets as a % of loans held-for-investment | | 1.29 | % | | | 1.31 | % | | | (0.02 | %) | (1.5 | %) | | | 0.70 | % | | | 0.59 | % | 84.3 | % |
| ACL as a % of loans held-for-investment | | 1.27 | % | | | 1.21 | % | | | 0.06 | % | 4.96 | % | | | 1.30 | % | | | (0.03 | %) | (2.3 | %) |
FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3 |
(Dollars in thousands, except per share amounts) |
|
| Three Months Ended |
| September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | 2025 | | | | 2025 | | | | 2025 | | | | 2024 | | | | 2024 | |
| | | | | | | | | |
| Interest income | $ | 28,338 | | | $ | 27,392 | | | $ | 27,467 | | | $ | 28,769 | | | $ | 28,380 | |
| Interest expense | | 12,608 | | | | 12,345 | | | | 12,644 | | | | 13,121 | | | | 12,904 | |
| Net interest income | | 15,730 | | | | 15,047 | | | | 14,823 | | | | 15,648 | | | | 15,476 | |
| | | | | | | | | |
| Provision for credit losses | | 470 | | | | 590 | | | | 500 | | | | - | | | | (100 | ) |
| Net interest income after provision for credit losses | | 15,260 | | | | 14,457 | | | | 14,323 | | | | 15,648 | | | | 15,576 | |
| | | | | | | | | |
| Gain on sale of loans | | 648 | | | | 900 | | | | 1,021 | | | | 1,013 | | | | 991 | |
| Gain (loss) on sale of OREO | | 29 | | | | (67 | ) | | | (92 | ) | | | - | | | | - | |
| SBA servicing fee income, net | | 705 | | | | 799 | | | | 691 | | | | 654 | | | | 760 | |
| Recovery on impaired servicing liability | | - | | | | - | | | | - | | | | - | | | | - | |
| Service charges and other income | | 469 | | | | 450 | | | | 496 | | | | 543 | | | | 465 | |
| Noninterest income | | 1,851 | | | | 2,082 | | | | 2,116 | | | | 2,210 | | | | 2,216 | |
| | | | | | | | | |
| Salaries and employee benefits | | 5,849 | | | | 5,779 | | | | 5,848 | | | | 5,635 | | | | 5,884 | |
| Occupancy and equipment | | 1,378 | | | | 1,293 | | | | 1,314 | | | | 1,280 | | | | 1,149 | |
| Marketing expense | | 397 | | | | 404 | | | | 215 | | | | 285 | | | | 423 | |
| Professional expense | | 699 | | | | 619 | | | | 430 | | | | 329 | | | | 456 | |
| Other expenses | | 2,485 | | | | 2,181 | | | | 2,426 | | | | 2,411 | | | | 2,104 | |
| Noninterest expense | | 10,808 | | | | 10,276 | | | | 10,233 | | | | 9,940 | | | | 10,016 | |
| | | | | | | | | |
| Income before income tax expense | | 6,303 | | | | 6,263 | | | | 6,206 | | | | 7,918 | | | | 7,776 | |
| | | | | | | | | |
| Income tax expense | | 1,758 | | | | 1,868 | | | | 1,753 | | | | 2,211 | | | | 2,207 | |
| | | | | | | | | |
| Net income | $ | 4,545 | | | $ | 4,395 | | | $ | 4,453 | | | $ | 5,707 | | | $ | 5,569 | |
| | | | | | | | | |
| Effective tax rate | | 27.9 | % | | | 29.8 | % | | | 28.3 | % | | | 27.9 | % | | | 28.4 | % |
| | | | | | | | | |
| Outstanding number of shares | | 10,588,136 | | | | 10,588,136 | | | | 10,588,136 | | | | 10,588,136 | | | | 10,588,136 | |
| | | | | | | | | |
| Weighted average shares for basic EPS | | 10,588,136 | | | | 10,588,136 | | | | 10,588,136 | | | | 10,588,136 | | | | 10,588,136 | |
| Weighted average shares for diluted EPS | | 10,600,724 | | | | 10,593,497 | | | | 10,605,812 | | | | 10,598,476 | | | | 10,596,039 | |
| | | | | | | | | |
| Basic EPS | $ | 0.43 | | | $ | 0.42 | | | $ | 0.42 | | | $ | 0.54 | | | $ | 0.53 | |
| Diluted EPS | $ | 0.43 | | | $ | 0.41 | | | $ | 0.42 | | | $ | 0.54 | | | $ | 0.53 | |
FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4 |
(Dollars in thousands) |
| | | | | | | | | | |
| | At or for the Three Months Ended |
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2025 | | | | 2025 | | | | 2025 | | | | 2024 | | | | 2024 | |
| | | | | | | | | | |
| Salaries and benefits | | $ | 5,849 | | | $ | 5,779 | | | $ | 5,848 | | | $ | 5,635 | | | $ | 5,884 | |
| FTE at the end of period | | | 171 | | | | 163 | | | | 166 | | | | 168 | | | | 178 | |
| Average FTE during the period | | | 168 | | | | 166 | | | | 169 | | | | 166 | | | | 173 | |
| Salaries and benefits/average FTE¹ | | $ | 138 | | | $ | 140 | | | $ | 141 | | | $ | 135 | | | $ | 135 | |
| Salaries and benefits/average assets¹ | | | 1.27 | % | | | 1.29 | % | | | 1.30 | % | | | 1.25 | % | | | 1.38 | % |
Noninterest expense/average assets¹ | | | 2.34 | % | | | 2.30 | % | | | 2.27 | % | | | 2.21 | % | | | 2.35 | % |
| FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 |
| (Dollars in thousands) |
| | | | | | | | | |
| September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | 2025 | | | | 2025 | | | | 2025 | | | | 2024 | | | | 2024 | |
| ASSETS | | | | | | | | | |
| Cash and due from banks | $ | 25,597 | | | $ | 11,873 | | | $ | 12,716 | | | $ | 10,336 | | | $ | 14,892 | |
| Interest-earning deposits at the FRB and other banks | | 385,282 | | | | 235,436 | | | | 249,535 | | | | 266,826 | | | | 241,094 | |
| Investment securities | | 67,459 | | | | 65,518 | | | | 61,521 | | | | 62,196 | | | | 63,208 | |
| Loans held-for-sale | | 175,158 | | | | 183,996 | | | | 194,542 | | | | 198,448 | | | | 198,021 | |
| | | | | | | | | |
| Loans held-for-investment | | 1,272,474 | | | | 1,278,106 | | | | 1,256,063 | | | | 1,239,564 | | | | 1,222,865 | |
| Less: Allowance for credit losses | | (16,151 | ) | | | (15,461 | ) | | | (14,850 | ) | | | (15,959 | ) | | | (15,948 | ) |
Loans held-for-investment, net | | 1,256,323 | | | | 1,262,645 | | | | 1,241,213 | | | | 1,223,605 | | | | 1,206,917 | |
| | | | | | | | | |
Other real estate owned | | 297 | | | | 2,999 | | | | 3,130 | | | | 521 | | | | 521 | |
| Restricted stock investments | | 11,011 | | | | 11,011 | | | | 11,011 | | | | 11,011 | | | | 11,011 | |
| Servicing assets | | 6,342 | | | | 6,609 | | | | 6,708 | | | | 6,909 | | | | 7,192 | |
| Goodwill | | 2,185 | | | | 2,185 | | | | 2,185 | | | | 2,185 | | | | 2,185 | |
| Intangible assets | | 186 | | | | 195 | | | | 205 | | | | 214 | | | | 224 | |
| Other assets | | 32,602 | | | | 32,359 | | | | 31,304 | | | | 33,384 | | | | 25,284 | |
| Total assets | $ | 1,962,442 | | | $ | 1,814,826 | | | $ | 1,814,070 | | | $ | 1,815,635 | | | $ | 1,770,549 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | |
| Noninterest-bearing | $ | 280,351 | | | $ | 309,160 | | | $ | 295,857 | | | $ | 304,005 | | | $ | 318,807 | |
| Interest-bearing | | 1,385,920 | | | | 1,215,760 | | | | 1,181,362 | | | | 1,176,567 | | | | 1,128,784 | |
| Total deposits | | 1,666,271 | | | | 1,524,920 | | | | 1,477,219 | | | | 1,480,572 | | | | 1,447,591 | |
| | | | | | | | | |
| FHLB advances | | - | | | | - | | | | 50,000 | | | | 50,000 | | | | 50,000 | |
| Other liabilities | | 30,649 | | | | 27,972 | | | | 28,397 | | | | 30,096 | | | | 22,415 | |
| Total liabilities | | 1,696,920 | | | | 1,552,892 | | | | 1,555,616 | | | | 1,560,668 | | | | 1,520,006 | |
| | | | | | | | | |
| Stockholders' Equity | | 265,522 | | | | 261,934 | | | | 258,454 | | | | 254,967 | | | | 250,543 | |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 1,962,442 | | | $ | 1,814,826 | | | $ | 1,814,070 | | | $ | 1,815,635 | | | $ | 1,770,549 | |
| FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 |
| (Dollars in thousands) |
| | | | | | | | | | | | | | | | | | | |
| September 30, 2025 | | June 30, 2025 | | March 31, 2025 | | December 31, 2024 | | September 30, 2024 |
| Balance | | % | | Balance | | % | | Balance | | % | | Balance | | % | | Balance | | % |
| | | | | | | | | | | | | | | | | | | |
| Construction | $ | 36,480 | | 2.9 | % | | $ | 33,952 | | 2.7 | % | | $ | 31,913 | | 2.5 | % | | $ | 27,276 | | 2.2 | % | | $ | 29,789 | | 2.4 | % |
| Commercial real estate | | 1,088,603 | | 85.6 | % | | | 1,091,180 | | 85.4 | % | | | 1,061,873 | | 84.5 | % | | | 1,048,945 | | 84.6 | % | | | 1,029,768 | | 84.2 | % |
| Commercial and industrial | | 103,276 | | 8.1 | % | | | 108,461 | | 8.5 | % | | | 112,369 | | 9.0 | % | | | 114,435 | | 9.2 | % | | | 112,588 | | 9.2 | % |
| Home mortgage | | 36,522 | | 2.9 | % | | | 36,673 | | 2.9 | % | | | 41,944 | | 3.3 | % | | | 43,676 | | 3.5 | % | | | 45,673 | | 3.7 | % |
| Consumer | | 3,548 | | 0.3 | % | | | 3,527 | | 0.3 | % | | | 3,477 | | 0.3 | % | | | 552 | | 0.0 | % | | | 537 | | 0.0 | % |
| Gross loans held-for-investment | | 1,268,429 | | 99.7 | % | | | 1,273,793 | | 99.7 | % | | | 1,251,576 | | 99.6 | % | | | 1,234,884 | | 99.6 | % | | | 1,218,355 | | 99.6 | % |
| | | | | | | | | | | | | | | | | | | |
| Deferred loan fees/costs, net | | 4,045 | | 0.3 | % | | | 4,313 | | 0.3 | % | | | 4,487 | | 0.4 | % | | | 4,680 | | 0.4 | % | | | 4,510 | | 0.4 | % |
| Loans held-for-investment | $ | 1,272,474 | | 100.0 | % | | $ | 1,278,106 | | 100.0 | % | | $ | 1,256,063 | | 100.0 | % | | $ | 1,239,564 | | 100.0 | % | | $ | 1,222,865 | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | |
| Loans held-for-sale | $ | 175,158 | | | | $ | 183,996 | | | | $ | 194,542 | | | | $ | 198,448 | | | | $ | 198,021 | | |
| Total loans receivable | $ | 1,447,632 | | | | $ | 1,462,102 | | | | $ | 1,450,605 | | | | $ | 1,438,012 | | | | $ | 1,420,886 | | |
| FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7 |
| (Dollars in thousands) |
| | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30, | | June 30 | | March 31, | | December 31, | | September 30, | | | September 30, | | September 30, |
| 2025 | | | | 2025 | | | | 2024 | | | | 2024 | | | | 2024 | | | | | 2025 | | | | 2024 | |
| | | | | | | | | | | | | | |
| SBA loans held-for-sale at beginning of the quarter/year | $ | 183,996 | | | $ | 194,542 | | | $ | 198,448 | | | $ | 198,021 | | | $ | 209,144 | | | | $ | 198,448 | | | $ | 218,258 | |
| SBA loans originated/transferred from/to held-for-investment during the quarter/year | | 19,835 | | | | 20,135 | | | | 23,778 | | | | 22,172 | | | | 13,169 | | | | | 63,748 | | | | 62,124 | |
| SBA loans sold during the quarter/year | | (14,539 | ) | | | (17,580 | ) | | | (19,753 | ) | | | (17,215 | ) | | | (20,152 | ) | | | | (51,872 | ) | | | (67,824 | ) |
| SBA loans principal paydown/payoff, net of advance | | (14,134 | ) | | | (13,101 | ) | | | (7,931 | ) | | | (4,530 | ) | | | (4,140 | ) | | | | (35,166 | ) | | | (14,537 | ) |
| SBA loans held-for-sale at end of the quarter/year | $ | 175,158 | | | $ | 183,996 | | | $ | 194,542 | | | $ | 198,448 | | | $ | 198,021 | | | | $ | 175,158 | | | $ | 198,021 | |
| | | | | | | | | | | | | | |
| Gain on sale of SBA loans | $ | 648 | | | $ | 900 | | | $ | 1,021 | | | $ | 1,013 | | | $ | 991 | | | | $ | 2,569 | | | $ | 3,544 | |
| Premium on sale (weighted average) | | 7.1 | % | | | 8.1 | % | | | 8.1 | % | | | 9.2 | % | | | 6.8 | % | | | | 7.8 | % | | | 8.1 | % |
| | | | | | | | | | | | | | |
| SBA loan production | $ | 22,228 | | | $ | 28,860 | | | $ | 32,034 | | | $ | 39,741 | | | $ | 23,227 | | | | $ | 83,122 | | | $ | 86,442 | |
| FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8 |
| (Dollars in thousands) |
| | | | | | | | | |
| Three Months Ended |
| September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| 2025 | | | | 2025 | | | | 2025 | | | | 2024 | | | | 2024 | |
| | | | | | | | | |
| | | | | | | | | |
| SBA servicing assets @ beginning of the quarter/year | $ | 6,609 | | | $ | 6,708 | | | $ | 6,909 | | | $ | 7,192 | | | $ | 7,404 | |
| | | | | | | | | |
| Newly added SBA servicing assets from SBA loans sold | | 268 | | | | 355 | | | | 361 | | | | 355 | | | | 377 | |
| Regular quarterly/annual servicing assets amortization | | (288 | ) | | | (299 | ) | | | (305 | ) | | | (315 | ) | | | (332 | ) |
| SBA servicing assets amortized from SBA loans paid off/charged off | | (247 | ) | | | (155 | ) | | | (257 | ) | | | (323 | ) | | | (257 | ) |
| | | | | | | | | |
| Subtotal before impairment | | 6,342 | | | | 6,609 | | | | 6,708 | | | | 6,909 | | | | 7,192 | |
| | | | | | | | | |
| Reversal of valuation allowance on servicing assets | | - | | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | |
| SBA servicing assets @ the end of the quarter/year | $ | 6,342 | | | $ | 6,609 | | | $ | 6,708 | | | $ | 6,909 | | | $ | 7,192 | |
FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 |
(Dollars in thousands) |
|
| September 30, 2025 | | June 30, 2025 | | March 31, 2025 | | December 31, 2024 | | September 30, 2024 |
| Balance | | % | | Balance | | % | | Balance | | % | | Balance | | % | | Balance | | % |
| | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand | $ | 280,351 | | 16.8 | % | | $ | 309,160 | | 20.3 | % | | $ | 295,857 | | 20.0 | % | | $ | 304,005 | | 20.5 | % | | $ | 318,807 | | 22.0 | % |
| Interest-bearing demand | | 5,745 | | 0.3 | % | | | 10,698 | | 0.7 | % | | | 6,588 | | 0.5 | % | | | 7,541 | | 0.5 | % | | | 6,590 | | 0.5 | % |
| NOW & MMDA | | 305,649 | | 18.4 | % | | | 274,578 | | 18.0 | % | | | 257,474 | | 17.4 | % | | | 269,475 | | 18.2 | % | | | 246,157 | | 17.0 | % |
| Savings | | 83,368 | | 5.0 | % | | | 85,609 | | 5.6 | % | | | 81,425 | | 5.5 | % | | | 84,727 | | 5.7 | % | | | 78,356 | | 5.4 | % |
| TCDs of $250K and under | | 419,821 | | 25.2 | % | | | 319,209 | | 20.9 | % | | | 315,312 | | 21.3 | % | | | 324,041 | | 21.9 | % | | | 310,134 | | 21.4 | % |
| TCDs of $250K over | | 471,048 | | 28.3 | % | | | 403,676 | | 26.5 | % | | | 377,486 | | 25.6 | % | | | 345,045 | | 23.3 | % | | | 342,301 | | 23.7 | % |
| Wholesale deposits | | 100,289 | | 6.0 | % | | | 121,990 | | 8.0 | % | | | 143,077 | | 9.7 | % | | | 145,738 | | 9.9 | % | | | 145,246 | | 10.0 | % |
| Total Deposits | $ | 1,666,271 | | 100.0 | % | | $ | 1,524,920 | | 100.0 | % | | $ | 1,477,219 | | 100.0 | % | | $ | 1,480,572 | | 100.0 | % | | $ | 1,447,591 | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | |
| Recap: | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand | $ | 280,351 | | 16.8 | % | | $ | 309,160 | | 20.3 | % | | $ | 295,857 | | 20.0 | % | | $ | 304,005 | | 20.5 | % | | $ | 318,807 | | 22.0 | % |
| Interest-bearing demand | | 5,745 | | 0.3 | % | | | 10,698 | | 0.7 | % | | | 6,588 | | 0.5 | % | | | 7,541 | | 0.5 | % | | | 6,590 | | 0.5 | % |
| NOW & MMDA | | 305,649 | | 18.4 | % | | | 274,578 | | 18.0 | % | | | 257,474 | | 17.4 | % | | | 269,475 | | 18.2 | % | | | 246,157 | | 17.0 | % |
| Savings | | 83,368 | | 5.0 | % | | | 85,609 | | 5.6 | % | | | 81,425 | | 5.5 | % | | | 84,727 | | 5.7 | % | | | 78,356 | | 5.4 | % |
| TCDs of $250K and under | | 419,821 | | 25.2 | % | | | 319,209 | | 20.9 | % | | | 315,312 | | 21.3 | % | | | 324,041 | | 21.9 | % | | | 310,134 | | 21.4 | % |
| Core Deposits | | 1,094,934 | | 65.7 | % | | | 999,254 | | 65.5 | % | | | 956,656 | | 64.7 | % | | | 989,789 | | 66.8 | % | | | 960,044 | | 66.3 | % |
| | | | | | | | | | | | | | | | | | | |
| TCDs of $250K over | | 471,048 | | 28.3 | % | | | 403,676 | | 26.5 | % | | | 377,486 | | 25.6 | % | | | 345,045 | | 23.3 | % | | | 342,301 | | 23.7 | % |
| Nonreciprocal ICS MMDA | | - | | - | | | | - | | - | | | | - | | - | | | | - | | - | | | | - | | - | |
| Wholesale deposits | | 100,289 | | 6.0 | % | | | 121,990 | | 8.0 | % | | | 143,077 | | 9.7 | % | | | 145,738 | | 9.9 | % | | | 145,246 | | 10.0 | % |
| Noncore Deposits | | 571,337 | | 34.3 | % | | | 525,666 | | 34.5 | % | | | 520,563 | | 35.3 | % | | | 490,783 | | 33.1 | % | | | 487,547 | | 33.7 | % |
| Total Deposits | $ | 1,666,271 | | 100.0 | % | | $ | 1,524,920 | | 100.0 | % | | $ | 1,477,219 | | 100.0 | % | | $ | 1,480,572 | | 100.0 | % | | $ | 1,447,591 | | 100.0 | % |
| FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10 |
| (Dollars in thousands) |
| | | | | | | | | | |
| | 3rd Qtr. | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. |
| | | 2025 | | | | 2025 | | | | 2025 | | | | 2024 | | | | 2024 | |
| Allowance for Credit Losses | | | | | | | | | | |
| Balance at beginning of period | | $ | 15,461 | | | $ | 14,850 | | | $ | 15,959 | | | $ | 15,948 | | | $ | 16,042 | |
| Provision for credit losses | | | 500 | | | | 590 | | | | 430 | | | | - | | | | - | |
| Charge-offs | | | - | | | | (143 | ) | | | (1,567 | ) | | | - | | | | (108 | ) |
| Recoveries | | | 190 | | | | 164 | | | | 28 | | | | 11 | | | | 14 | |
| Balance at the end of period | | $ | 16,151 | | | $ | 15,461 | | | $ | 14,850 | | | $ | 15,959 | | | $ | 15,948 | |
| | | | | | | | | | |
| Nonperforming Assets:¹ | | | | | | | | | | |
| Over 90 days still accruing | | $ | 1,237 | | | $ | 1,487 | | | $ | - | | | $ | 1,819 | | | $ | 994 | |
| Nonaccrual loans | | | 14,865 | | | | 12,213 | | | | 8,545 | | | | 9,711 | | | | 7,043 | |
| Total nonperforming loans | | | 16,102 | | | | 13,700 | | | | 8,545 | | | | 11,530 | | | | 8,037 | |
| | | | | | | | | | |
| Other real estate owned | | $ | 297 | | | | 2,999 | | | | 3,130 | | | | 521 | | | | 521 | |
| Total nonperforming assets | | $ | 16,399 | | | $ | 16,699 | | | $ | 11,675 | | | $ | 12,051 | | | $ | 8,558 | |
| | | | | | | | | | |
| Classified Assets:¹ | | | | | | | | | | |
| Substandard | | $ | 31,465 | | | $ | 30,442 | | | $ | 20,827 | | | $ | 22,077 | | | $ | 15,980 | |
| Doubtful | | | - | | | | - | | | | - | | | | - | | | | - | |
| Loss | | | | | | | | | | |
| Total classified loans | | $ | 31,465 | | | $ | 30,442 | | | $ | 20,827 | | | $ | 22,077 | | | $ | 15,980 | |
| | | | | | | | | | |
| Other real estate owned | | $ | 297 | | | | 2,999 | | | | 3,130 | | | | 521 | | | | 521 | |
| Total classified assets | | $ | 31,762 | | | $ | 33,441 | | | $ | 23,957 | | | $ | 22,598 | | | $ | 16,501 | |
| | | | | | | | | | |
| Performing modified loans:¹ | | $ | 160 | | | $ | 160 | | | $ | 635 | | | $ | 649 | | | $ | 452 | |
| | | | | | | | | | |
| Delinquent Loans:¹ | | | | | | | | | | |
| Loans 30-89 days past due | | $ | 7,478 | | | $ | 11,548 | | | $ | 19,010 | | | $ | 7,614 | | | $ | 4,308 | |
| 90 days or more past due and still accruing | | | 1,237 | | | | 1,487 | | | | - | | | | 1,819 | | | | 994 | |
| Nonaccrual | | | 14,865 | | | | 12,213 | | | | 8,545 | | | | 9,711 | | | | 7,043 | |
| Total delinquent loans | | $ | 23,580 | | | $ | 25,248 | | | $ | 27,555 | | | $ | 19,144 | | | $ | 12,345 | |
| | | | | | | | | | |
| Asset Quality Ratios: | | | | | | | | | | |
| Net (recoveries) charge-offs to average loans² | | | (0.05 | %) | | | (0.01 | %) | | | 0.43 | % | | | 0.00 | % | | | 0.03 | % |
| Nonaccrual loans to loans held-for-investment | | | 1.17 | % | | | 0.96 | % | | | 0.68 | % | | | 0.78 | % | | | 0.58 | % |
| Nonperforming loans to loans held-for-investment | | | 1.27 | % | | | 1.07 | % | | | 0.68 | % | | | 0.93 | % | | | 0.66 | % |
| Nonperforming assets to total assets | | | 0.84 | % | | | 0.92 | % | | | 0.64 | % | | | 0.66 | % | | | 0.48 | % |
| Classified loans to loans held-for-investment | | | 2.47 | % | | | 2.38 | % | | | 1.66 | % | | | 1.78 | % | | | 1.31 | % |
| Classified loans to Tier 1 and ACL | | | 11.27 | % | | | 11.07 | % | | | 7.69 | % | | | 8.22 | % | | | 6.05 | % |
| Classified assets to total assets | | | 1.62 | % | | | 1.84 | % | | | 1.32 | % | | | 1.24 | % | | | 0.93 | % |
| Classified assets to Tier 1 and ACL | | | 11.37 | % | | | 12.16 | % | | | 8.84 | % | | | 8.42 | % | | | 6.25 | % |
| ACL to loans held-for-investment | | | 1.27 | % | | | 1.21 | % | | | 1.18 | % | | | 1.29 | % | | | 1.30 | % |
| ACL to nonaccrual loans | | | 108.65 | % | | | 126.59 | % | | | 173.79 | % | | | 164.34 | % | | | 226.44 | % |
| ACL to nonperforming loans | | | 100.30 | % | | | 112.85 | % | | | 173.79 | % | | | 138.41 | % | | | 198.43 | % |
| ACL to nonperforming assets | | | 98.49 | % | | | 92.59 | % | | | 127.19 | % | | | 132.43 | % | | | 186.35 | % |
| Texas ratio ³ | | | 5.87 | % | | | 6.07 | % | | | 4.31 | % | | | 4.49 | % | | | 3.24 | % |
¹ | | Net of SBA guaranteed balance |
² | | Includes loans held-for-sale |
³ | | Nonperforming assets divided by tangible common equity and ACL |
| FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11 |
| | | | | | |
| | Well Capitalized | | Adequately Capitalized | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | Regulatory | | BASEL III | | | | | | | | | | |
| | Requirement | | Fully Phased In | | | 2025 | | | | 2025 | | | | 2025 | | | | 2024 | | | | 2024 | |
| | | | | | | | | | | | | | |
| Leverage ratio | | | | | | | | | | | | | | |
| Company | | N/A | | | N/A | | | | 14.34 | % | | | 14.48 | % | | | 14.04 | % | | | 14.12 | % | | | 14.64 | % |
| Bank | | 5.00 | % | | 4.00 | % | | | 14.32 | % | | | 14.45 | % | | | 14.00 | % | | | 14.07 | % | | | 14.58 | % |
| Common equity tier 1 risk-based capital ratio | | | | | | | | | | | | | | |
| Company | | N/A | | | N/A | | | | 19.26 | % | | | 18.98 | % | | | 19.10 | % | | | 19.02 | % | | | 19.03 | % |
| Bank | | 6.50 | % | | 7.00 | % | | | 19.22 | % | | | 18.94 | % | | | 19.05 | % | | | 18.95 | % | | | 18.95 | % |
| Tier 1 risk-based capital ratio | | | | | | | | | | | | | | |
| Company | | N/A | | | N/A | | | | 19.26 | % | | | 18.98 | % | | | 19.10 | % | | | 19.02 | % | | | 19.03 | % |
| Bank | | 8.00 | % | | 8.50 | % | | | 19.22 | % | | | 18.94 | % | | | 19.05 | % | | | 18.95 | % | | | 18.95 | % |
| Total risk-based capital ratio | | | | | | | | | | | | | | |
| Company | | N/A | | | N/A | | | | 20.46 | % | | | 20.13 | % | | | 20.23 | % | | | 20.23 | % | | | 20.26 | % |
| Bank | | 10.00 | % | | 10.50 | % | | | 20.42 | % | | | 20.09 | % | | | 20.18 | % | | | 20.16 | % | | | 20.18 | % |
| | | | | | | | | | | | | | |
| Tangible common equity/total assets | | | | | | | 13.43 | % | | | 14.32 | % | | | 14.13 | % | | | 13.93 | % | | | 14.03 | % |
| Tangible common equity per share | | | | | | $ | 24.85 | | | $ | 24.51 | | | $ | 24.18 | | | $ | 23.85 | | | $ | 23.44 | |
| FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12 |
| (Dollars in thousands) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| September 30, 2025 | | June 30, 2025 | | March 31, 2025 | | December 31, 2024 | | September 30, 2024 |
| Avg Balance | Interest | | Yield | | Avg Balance | Interest | | Yield | | Avg Balance | Interest | | Yield | | Avg Balance | Interest | | Yield | | Avg Balance | Interest | | Yield |
| Number of Days in the Period | | | | | | | | | | | | | | | | | | | | | | | | |
| INTEREST-EARNING ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans Receivable¹ | $ | 1,463,183 | | $ | 24,653 | | 6.68 | % | | $ | 1,461,584 | | $ | 24,171 | | 6.63 | % | | $ | 1,437,846 | | $ | 23,618 | | 6.66 | % | | $ | 1,432,216 | | $ | 24,863 | | 6.91 | % | | $ | 1,427,123 | | $ | 25,357 | | 7.07 | % |
| Investment securities ² | | 66,623 | | | 707 | | 4.21 | % | | | 64,990 | | | 686 | | 4.23 | % | | | 61,930 | | | 667 | | 4.37 | % | | | 62,714 | | | 696 | | 4.42 | % | | | 68,198 | | | 734 | | 4.28 | % |
| Interest-earning deposits at the FRB and other banks | | 254,301 | | | 2,826 | | 4.41 | % | | | 214,514 | | | 2,383 | | 4.46 | % | | | 275,512 | | | 3,029 | | 4.46 | % | | | 253,524 | | | 3,048 | | 4.78 | % | | | 158,127 | | | 2,139 | | 5.38 | % |
| Other earning assets | | 11,011 | | | 201 | | 7.24 | % | | | 11,011 | | | 200 | | 7.29 | % | | | 11,011 | | | 203 | | 7.48 | % | | | 11,011 | | | 211 | | 7.62 | % | | | 11,011 | | | 200 | | 7.23 | % |
| Total interest-earning assets ² | | 1,795,118 | | | 28,387 | | 6.27 | % | | | 1,752,099 | | | 27,440 | | 6.28 | % | | | 1,786,299 | | | 27,517 | | 6.25 | % | | | 1,759,465 | | | 28,818 | | 6.52 | % | | | 1,664,459 | | | 28,430 | | 6.80 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| NONINTEREST-EARNING ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | 14,221 | | | | | | | 11,512 | | | | | | | 12,060 | | | | | | | 12,349 | | | | | | | 12,527 | | | | |
| Other noninterest-earning assets | | 40,578 | | | | | | | 44,078 | | | | | | | 41,549 | | | | | | | 35,479 | | | | | | | 34,395 | | | | |
| Total noninterest-earning assets | | 54,799 | | | | | | | 55,590 | | | | | | | 53,609 | | | | | | | 47,828 | | | | | | | 46,922 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Less: Allowance for credit losses | | (15,577 | ) | | | | | | (14,899 | ) | | | | | | (15,569 | ) | | | | | | (15,953 | ) | | | | | | (16,024 | ) | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| TOTAL ASSETS | $ | 1,834,340 | | | | | | $ | 1,792,790 | | | | | | $ | 1,824,339 | | | | | | $ | 1,791,340 | | | | | | $ | 1,695,357 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| INTEREST-BEARING DEPOSITS | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand | $ | 9,682 | | $ | 5 | | 0.20 | % | | $ | 9,957 | | $ | 5 | | 0.20 | % | | $ | 9,622 | | $ | 5 | | 0.20 | % | | $ | 11,147 | | $ | 6 | | 0.20 | % | | $ | 11,007 | | $ | 6 | | 0.20 | % |
| Money market | | 282,010 | | | 2,699 | | 3.80 | % | | | 263,197 | | | 2,540 | | 3.87 | % | | | 265,687 | | | 2,555 | | 3.90 | % | | | 244,258 | | | 2,508 | | 4.08 | % | | | 236,834 | | | 2,555 | | 4.29 | % |
| Savings | | 84,339 | | | 653 | | 3.07 | % | | | 83,261 | | | 633 | | 3.05 | % | | | 83,978 | | | 638 | | 3.08 | % | | | 81,423 | | | 661 | | 3.23 | % | | | 79,289 | | | 689 | | 3.46 | % |
| Time deposits | | 863,224 | | | 9,251 | | 4.25 | % | | | 847,092 | | | 9,159 | | 4.34 | % | | | 830,672 | | | 9,331 | | 4.56 | % | | | 815,866 | | | 9,828 | | 4.79 | % | | | 767,607 | | | 9,536 | | 4.94 | % |
| Total interest-bearing deposits | | 1,239,255 | | | 12,608 | | 4.04 | % | | | 1,203,507 | | | 12,337 | | 4.11 | % | | | 1,189,959 | | | 12,529 | | 4.27 | % | | | 1,152,694 | | | 13,003 | | 4.49 | % | | | 1,094,737 | | | 12,786 | | 4.65 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings | | - | | | - | | - | | | | 4,122 | | | 8 | | 0.78 | % | | | 48,889 | | | 115 | | 0.95 | % | | | 50,001 | | | 118 | | 0.94 | % | | | 50,000 | | | 118 | | 0.94 | % |
| Total interest-bearing liabilities | | 1,239,255 | | | 12,608 | | 4.04 | % | | | 1,207,629 | | | 12,345 | | 4.10 | % | | | 1,238,848 | | | 12,644 | | 4.14 | % | | | 1,202,695 | | | 13,121 | | 4.34 | % | | | 1,144,737 | | | 12,904 | | 4.48 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing deposits | | 301,776 | | | | | | | 296,496 | | | | | | | 298,579 | | | | | | | 309,662 | | | | | | | 280,670 | | | | |
| Other liabilities | | 29,249 | | | | | | | 28,026 | | | | | | | 29,428 | | | | | | | 26,090 | | | | | | | 21,376 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Stockholders' equity | | 264,060 | | | | | | | 260,639 | | | | | | | 257,484 | | | | | | | 252,893 | | | | | | | 248,574 | | | | |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 1,834,340 | | | | | | $ | 1,792,790 | | | | | | $ | 1,824,339 | | | | | | $ | 1,791,340 | | | | | | $ | 1,695,357 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income² | | $ | 15,779 | | | | | $ | 15,095 | | | | | $ | 14,873 | | | | | $ | 15,697 | | | | | $ | 15,526 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | 2.23 | % | | | | | 2.18 | % | | | | | 2.11 | % | | | | | 2.18 | % | | | | | 2.32 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Effect of noninterest-bearing sources | | | | 1.26 | % | | | | | 1.28 | % | | | | | 1.27 | % | | | | | 1.37 | % | | | | | 1.39 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin² | | | | 3.49 | % | | | | | 3.46 | % | | | | | 3.38 | % | | | | | 3.55 | % | | | | | 3.71 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of deposits | $ | 1,541,031 | | $ | 12,608 | | 3.25 | % | | $ | 1,500,003 | | $ | 12,337 | | 3.30 | % | | $ | 1,488,538 | | $ | 12,529 | | 3.41 | % | | $ | 1,462,356 | | $ | 13,003 | | 3.54 | % | | $ | 1,375,407 | | $ | 12,786 | | 3.70 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of funds | $ | 1,541,031 | | $ | 12,608 | | 3.25 | % | | $ | 1,504,125 | | $ | 12,345 | | 3.29 | % | | $ | 1,537,427 | | $ | 12,644 | | 3.34 | % | | $ | 1,512,357 | | $ | 13,121 | | 3.45 | % | | $ | 1,425,407 | | $ | 12,904 | | 3.60 | % |
¹ | | Loan held-for-investment, plus loans held-for-sale |
² | | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
| FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13 |
| (Dollars in thousands) |
| | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | September 30, 2025 | | June 30, 2025 | | March 31,2025 | | December 31, 2024 | | September 30, 2024 |
| | Amount | | Yield | | Amount | | Yield | | Amount | | Yield | | Amount | | Yield | | Amount | | Yield |
| | | | | | | | | | | | | | | | | | | | |
| Contractual yield | | $ | 24,171 | | | 6.55 | % | | $ | 23,731 | | | 6.51 | % | | $ | 22,866 | | | 6.45 | % | | $ | 24,036 | | | 6.68 | % | | $ | 24,544 | | | 6.84 | % |
| SBA discount accretion | | | 728 | | | 0.20 | % | | | 588 | | | 0.16 | % | | | 781 | | | 0.22 | % | | | 818 | | | 0.23 | % | | | 806 | | | 0.23 | % |
| Prepayment penalties and late fees | | | 51 | | | 0.01 | % | | | 53 | | | 0.01 | % | | | 136 | | | 0.04 | % | | | 64 | | | 0.02 | % | | | 184 | | | 0.05 | % |
| Amortization of net deferred costs | | | (297 | ) | | -0.08 | % | | | (201 | ) | | -0.05 | % | | | (165 | ) | | -0.05 | % | | | (55 | ) | | -0.02 | % | | | (177 | ) | | -0.05 | % |
| As reported yield on loans | | $ | 24,653 | | | 6.68 | % | | $ | 24,171 | | | 6.63 | % | | $ | 23,618 | | | 6.66 | % | | $ | 24,863 | | | 6.91 | % | | $ | 25,357 | | | 7.07 | % |
| MARGIN ANALYSIS (Unaudited) - Table 14 |
| (Dollars in thousands) |
| | | | | | | | | | | |
| Nine Months Ended |
| September 30, 2025 | | September 30, 2024 |
| Avg Balance | | Interest | | Yield | | Avg Balance | | Interest | | Yield |
| Number of Days in the Period | | | | | | | | | | | |
| INTEREST-EARNING ASSETS | | | | | | | | | | | |
| Loans Receivable ¹ | $ | 1,454,297 | | | $ | 72,442 | | 6.66 | % | | $ | 1,420,526 | | | $ | 75,150 | | 7.07 | % |
| Investment securities ² | | 64,532 | | | | 2,060 | | 4.27 | % | | | 65,943 | | | | 2,032 | | 4.12 | % |
| Interest-earning deposits at the FRB and other banks | | 248,031 | | | | 8,238 | | 4.44 | % | | | 170,700 | | | | 6,951 | | 5.44 | % |
| Other earning assets | | 11,011 | | | | 604 | | 7.33 | % | | | 11,011 | | | | 614 | | 7.45 | % |
| Total interest-earning assets ² | | 1,777,871 | | | | 83,344 | | 6.27 | % | | | 1,668,180 | | | | 84,747 | | 6.79 | % |
| | | | | | | | | | | |
| NONINTEREST-EARNING ASSETS | | | | | | | | | | | |
| Cash and due from banks | | 12,606 | | | | | | | | 12,535 | | | | | |
| Other noninterest-earning assets | | 41,986 | | | | | | | | 32,885 | | | | | |
| Total noninterest-earning assets | | 54,592 | | | | | | | | 45,420 | | | | | |
| | | | | | | | | | | |
| Less: Allowance for credit losses | | (15,349 | ) | | | | | | | (15,802 | ) | | | | |
| | | | | | | | | | | |
| TOTAL ASSETS | $ | 1,817,114 | | | | | | | $ | 1,697,798 | | | | | |
| | | | | | | | | | | |
| INTEREST-BEARING DEPOSITS | | | | | | | | | | | |
| Interest-bearing demand | $ | 9,753 | | | $ | 15 | | 0.21 | % | | $ | 11,848 | | | $ | 18 | | 0.20 | % |
| Money market | | 270,358 | | | | 7,794 | | 3.85 | % | | | 232,195 | | | | 7,112 | | 4.09 | % |
| Savings | | 83,861 | | | | 1,924 | | 3.07 | % | | | 82,109 | | | | 2,113 | | 3.44 | % |
| Time deposits | | 847,115 | | | | 27,741 | | 4.38 | % | | | 776,196 | | | | 28,355 | | 4.88 | % |
| Total interest-bearing deposits | | 1,211,087 | | | | 37,474 | | 4.14 | % | | | 1,102,348 | | | | 37,598 | | 4.56 | % |
| | | | | | | | | | | |
| Borrowings | | 17,492 | | | | 123 | | 0.94 | % | | | 50,004 | | | | 352 | | 0.94 | % |
| Total interest-bearing liabilities | | 1,228,579 | | | | 37,597 | | 4.09 | % | | | 1,152,352 | | | | 37,950 | | 4.40 | % |
| | | | | | | | | | | |
| Noninterest-bearing deposits | | 298,962 | | | | | | | | 281,763 | | | | | |
| Other liabilities | | 28,821 | | | | | | | | 20,268 | | | | | |
| | | | | | | | | | | |
| Stockholders' equity | | 260,752 | | | | | | | | 243,415 | | | | | |
| | | | | | | | | | | |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 1,817,114 | | | | | | | $ | 1,697,798 | | | | | |
| | | | | | | | | | | |
| Net interest income² | | | $ | 45,747 | | | | | | $ | 46,797 | | |
| | | | | | | | | | | |
| Net interest spread | | | | | 2.18 | % | | | | | | 2.39 | % |
| | | | | | | | | | | |
| Effect of noninterest-bearing sources | | | | | 1.26 | % | | | | | | 1.36 | % |
| | | | | | | | | | | |
| Net interest margin² | | | | | 3.44 | % | | | | | | 3.75 | % |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Cost of deposits | $ | 1,510,049 | | | $ | 37,474 | | 3.32 | % | | $ | 1,384,111 | | | $ | 37,598 | | 3.63 | % |
| | | | | | | | | | | |
| Cost of funds | $ | 1,527,541 | | | $ | 37,597 | | 3.29 | % | | $ | 1,434,115 | | | $ | 37,950 | | 3.53 | % |
¹ | | Loan held-for-investment, plus loans held-for-sale |
² | | Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate |
| COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15 |
| (Dollars in thousands) |
| | | | | | | | |
| | Nine Months Ended |
| | September 30, 2025 | | September 30, 2024 |
| | Amount | | Yield | | Amount | | Yield |
| | | | | | | | |
| Contractual yield | | $ | 70,768 | | | 6.51 | % | | $ | 72,953 | | | 6.86 | % |
| SBA discount accretion | | | 2,097 | | | 0.19 | % | | | 2,468 | | | 0.23 | % |
| Prepayment penalties and late fees | | | 240 | | | 0.02 | % | | | 287 | | | 0.03 | % |
| Amortization of net deferred costs | | | (663 | ) | | -0.06 | % | | | (558 | ) | | -0.05 | % |
| As reported yield on loans | | $ | 72,442 | | | 6.66 | % | | $ | 75,150 | | | 7.07 | % |
Source: CBB Bancorp, Inc.