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 fourth quarter 2025, or $0.42 per diluted share compared to $4.5 million in the third quarter 2025, or $0.43 per diluted share.

Fourth Quarter 2025 Highlights

• Net income: $4.5 million, or $0.42 per diluted share
• Net interest margin: 3.16%, compared to 3.49% in the prior quarter
• SBA loan sales: $19.7 million sold at an average premium of 6.8%
• Deposits: Increased $41.1 million, or 2.5% quarter-over-quarter

Net income for the fourth quarter of 2025 remained relatively consistent with the prior quarter, reflecting a lower net interest margin and higher noninterest expenses, partially offset by a lower provision for credit losses and higher loan sale gains.

The net interest margin for the fourth quarter of 2025 was 3.16%, compared with 3.49% in the third quarter of 2025 and 3.55% in the fourth quarter of 2024. The efficiency ratio was 63.13%, compared with 61.48% in the prior quarter and 55.66% in the same period last year.

Seungho Park, President and CEO, said, “During the fourth quarter of 2025, we reached a significant milestone, with total assets exceeding $2 billion for the first time in its history, reflecting continued balance sheet growth and disciplined execution. The Bank’s loan pipeline remains active and strong. Under the new leadership of our experienced management team, we remain focused on sustainable growth, prudent risk management, and operational efficiency, as we navigate an evolving economic environment.”

INCOME STATEMENT

Net Interest Income

Net interest income for the fourth quarter 2025 was $15.7 million, a decrease of $72 thousand or 0.5% from the prior quarter and generally consistent with the fourth quarter of 2024. The quarter-over-quarter decrease was primarily attributable to margin compression driven by higher funding costs and lower yields on interest-earning assets.

Net Interest Margin

The net interest margin for the fourth quarter 2025 was 3.16% compared to 3.49% for the third quarter 2025 and 3.55% for the fourth quarter 2024. The decline from the prior quarter was mainly due to a decrease in the yield on interest-earning assets and an increase in the overall cost of funds, which increased to 3.30% from 3.25% in the prior quarter.

Provision for Credit Losses

The Company recorded a total provision for credit losses of $300 thousand for the fourth quarter of 2025, compared to $470 thousand in the third quarter of 2025 and no provision in the fourth quarter of 2024.

Noninterest Income

Noninterest income for the fourth quarter of 2025 was $1.8 million, compared to $1.9 million in the prior quarter and $2.2 million in the same quarter of 2024. The quarter included $802 thousand in gains on the sale of SBA loans and no gain on the sale of other real estate owned (OREO), compared to a $29 thousand OREO loss in the prior quarter.

Noninterest Expenses

Noninterest expenses totaled $11.0 million for the fourth quarter of 2025, compared to $10.8 million in the prior quarter and $9.9 million in the fourth quarter of 2024. The $224 thousand quarter-over-quarter increase was primarily driven by higher personnel costs and occupancy, partially offset by lower professional and other operating expenses.

Income Taxes

The Company’s effective tax rate for the fourth quarter of 2025 was 26.7%, compared to 27.9% for the third quarter of 2025 and 27.9% for the fourth quarter of 2024. The reduction in the effective tax rate is primarily due to the impact of changes in deferred tax balances associated with loan classification, which resulted in a modest reduction in the Company’s overall tax expense for the quarter.

BALANCE SHEET

Investment Securities

Investment securities were $65.7 million at December 31, 2025, a decrease of $1.7 million, or 2.6%, from September 30, 2025, and an increase of $3.5 million, or 5.7%, from December 31, 2024.

Loans Receivable

Loans receivable, including loans held-for-sale, totaled $1.46 billion at December 31, 2025, an increase of $15.2 million, or 1.1%, from the prior quarter and $24.8 million, or 1.7%, from a year earlier.

Allowance for Credit Losses and Asset Quality

The Allowance for Credit Losses (“ACL”) was $16.3 million at December 31, 2025, representing 1.17% of loans held-for-investment, compared to $16.2 million, or 1.27%, at September 30, 2025, and $16.0 million, or 1.29%, at December 31, 2024.

Total nonperforming assets increased to $21.6 million at quarter-end from $16.4 million at September 30, 2025, primarily due to an increase in OREO balances.

Substandard loans declined to $29.7 million from $31.5 million in the prior quarter, while total delinquent loans decreased slightly to $23.5 million, compared to $23.6 million at September 30, 2025.

SBA Loans Held-for-Sale

Total SBA loans held-for-sale were $65.4 million as of December 31, 2025, compared to $175.2 million at September 30, 2025, and $198.4 million at December 31, 2024. The quarter-over-quarter decrease was primarily attributable to the reclassification of $88.2 million of SBA loans to loans held for investment.

During the quarter, the Bank sold $19.7 million in SBA loans at an average premium of 6.8%, compared to $14.5 million sold at an average premium of 7.1% in the prior quarter and $17.2 million sold at a 9.2% average premium in the same quarter of 2024.

Deposits

Total deposits were $1.71 billion at December 31, 2025, an increase of $41.1 million, or 2.5%, from the prior quarter and $226.8 million, or 15.3%, from a year earlier, reflecting continued strong deposit inflows.

Borrowings

The Bank had no outstanding borrowings as of December 31, 2025, consistent with the position since the second quarter of 2025.

Capital

Stockholders’ equity was $268.7 million at December 31, 2025, up $3.2 million, or 1.2%, from the prior quarter. Tangible book value per share was $25.16, an increase of $0.31, or 1.2%, quarter-over-quarter.

At quarter-end, Common Equity Tier 1 Risk-Based Capital Ratios were 19.03% for the Company and 19.01% for the Bank. Total Risk-Based Capital Ratios were 20.22% and 20.20%, respectively, and Leverage Ratios were 13.25% for the Company and 13.23% 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 December 31, 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, Texas, Virginia, 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 4Q 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.