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 $5.1 million for the third quarter 2026, or $0.48 per diluted share, up from $4.9 million in the second quarter 2026, or $0.46 per diluted share. For the nine months ending September 30, 2026, net income was $15.7 million, or $1.47 per diluted share, up from $13.4 million, or $1.27 per diluted share, for the same period in 2025.
Third Quarter 2026 Highlights
- Return on Assets of 1.03%
- Net income of $5.1 million, or $0.48 per diluted share
- Total loan growth accelerated to a 16.1% annualized rate
Seungho Park, President and CEO, said, “The quarter was marked by higher earnings and continued net interest margin expansion as our team successfully executed strategies to enhance asset yields, optimize funding costs, and deepen customer relationships. Combined with our robust capital ratios and strong liquidity profile, these results underscore the resilience of our business model and our ability to generate consistent value across varying market conditions. Supported by robust capital levels, sound credit quality, and a disciplined approach to growth, we remain well positioned to capitalize on market opportunities while preserving the financial flexibility needed to support our customers and create long-term shareholder value.”
INCOME STATEMENT
Net Interest Income
Net interest income for the third quarter 2026 was $16.5 million, an increase of $1.2 million or 7.6% from the prior quarter and $813 thousand, or 5.2% from the third quarter 2025. The increase in net interest income from the prior quarter was primarily attributable to the increase in margin and to a lesser extent having one more day in the quarter and higher average interest-earning assets. The net interest margin for the third quarter 2026 was 3.40%, up from 3.22% for the second quarter of 2026, but down from 3.49% for the third quarter of 2025. The margin included higher interest earning asset yields by ten basis points and lower interest-bearing liabilities costs by five basis points.
The overall cost of funds for the third quarter of 2026 was 3.08%, down from 3.16% for the second quarter of 2026 and 3.25% for the third quarter of 2025.
Provision for Credit Losses
The Company recorded no provision for credit losses for the third quarter of 2026, compared to $500 thousand in the second quarter of 2026 and $470 thousand in the third quarter of 2025. During the current quarter, a significant improvement in the reserve requirement for one loan offset additional reserves otherwise warranted by changes in the remainder of the loan portfolio. The allowance credit loss (“ACL”) to loans held-for-investment ratio decreased five basis points to 1.14% from the prior quarter.
Noninterest Income
Noninterest income for the third quarter of 2026 was $2.3 million, down from $3.1 million in the prior quarter, but up from $1.9 million in the third quarter of 2025. The current quarter-over-quarter decrease in noninterest income was primarily the result of a lower gain on sales of loans of $888 thousand as a lower balance of loans were sold.
Noninterest Expenses
Noninterest expenses totaled $11.7 million for the third quarter of 2026, up from $11.2 million in the prior quarter and $10.8 million in the third quarter of 2025. Noninterest expense increased by $551 thousand in the current quarter over the prior quarter primarily due to higher occupancy and equipment costs of $218 thousand, other operating expenses of $155 thousand and professional expense of $105 thousand.
The efficiency ratio was 62.20%, up from 60.55% in the prior quarter and 61.48% in the year-ago quarter. The efficiency ratio increase from the prior quarter was primarily due to the increase in non-interest expense outpacing total revenue, primarily due to lower gains on sales of loans.
Income Taxes
The Company’s effective tax rate for the third quarter of 2026 was 28.6%, compared to 27.8% for the second quarter of 2026 and 27.9% for the third quarter of 2025.
BALANCE SHEET
Investment Securities
Investment securities were $54.1 million at September 30, 2026, a decrease of $9.4 million, or 14.8%, from June 30, 2026, and a decrease of $13.4 million, or 19.8%, from September 30, 2025. The quarterly decline was mainly driven by called and matured securities of $7.8 million.
Loans Receivable
Loans receivable, including loans held-for-sale, totaled $1.59 billion at September 30, 2026, an increase of $62.0 million, or 4.1%, from the prior quarter and $138.4 million, or 9.6%, from a year earlier.
Allowance for Credit Losses and Asset Quality
The ACL was $17.1 million at September 30, 2026, representing 1.14% of loans held-for-investment, compared to $17.4 million, or 1.19%, at June 30, 2026, and $16.2 million, or 1.27%, at September 30, 2025.
Total nonperforming assets at September 30, 2026, were $25.5 million up from $21.6 million at June 30, 2026, and up from $16.4 million at September 30, 2025, primarily driven by an increase in nonaccrual loans.
The ACL coverage to nonperforming assets was 66.99% at September 30, 2026, down from 80.51% in the previous quarter, and down from 98.49% in the year-ago quarter.
Loans Held-for-Sale
Total SBA loans held-for-sale were $85.4 million as of September 30, 2026, up from $66.5 million at June 30, 2026, but down from $175.2 million at September 30, 2025.
During the current quarter, the Bank sold $18.4 million in SBA loans at an average premium of 8.9%, down from $37.1 million sold at an average premium of 8.2% in the prior quarter, but up from $14.5 million sold at 7.1% average premium in the third quarter of 2025.
Deposits
Total deposits were $1.62 billion at September 30, 2026, down $45.1 million, or 2.7%, from the prior quarter, and down $48.0 million, or 2.9%, from a year earlier. The quarter-over-quarter decrease was primarily driven by lower balances in the time deposits and wholesale deposits.
Borrowings
The Bank had no outstanding borrowings as of September 30, 2026, consistent with the position since the second quarter of 2025.
Capital
Stockholders’ equity was $280.4 million at September 30, 2026, up $3.8 million, or 1.4%, from the prior quarter. Tangible book value per share was $26.18, an increase of $0.27, or 1.0%, from the previous quarter.
At quarter-end, the Company and the Bank maintained strong capital positions, with Common Equity Tier 1 Risk-Based Capital Ratios of 18.39% and 18.30%, respectively. Total Risk-Based Capital Ratios were 19.55% for the Company and 19.46% for the Bank, while Leverage Ratios were 14.15% and 14.08%, respectively. The Bank remained classified as “Well Capitalized” under all applicable regulatory capital 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, 2026, the Bank had twelve full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas, Honolulu, Hawaii, Bergen County in New Jersey, and Queens County in New York. Three SBA regional offices in Los Angeles, Dallas, and Bergen Counties, and loan production offices in California, Georgia, Texas, and Virginia. For additional information, please go to www.cbb-bank.com under the tab “About Us” and select “Investor Relations” to see the 3Q 2026 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. Additional factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include deterioration in credit quality; changes in the level of nonperforming assets, charge-offs, and classified loans; changes in the adequacy of the allowance for credit losses; fluctuations in liquidity, deposits, funding sources, or funding costs; cybersecurity incidents, fraud events, and technology disruptions; inflationary pressures; geopolitical events; and other risks and uncertainties affecting the Company's business and operations. There can be no assurance that future developments affecting the Company will be those anticipated by management.
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, | $ | % | ||||||||||||||||||||||||||||
2026 |
2026 |
Change |
Change |
2025 |
Change |
Change |
2026 |
2025 |
Change |
Change |
||||||||||||||||||||||||||||
| Interest income | $ |
29,467 |
$ |
28,406 |
$ |
1,061 |
3.7 |
% |
$ |
28,338 |
$ |
1,129 |
4.0 |
% |
$ |
86,037 |
$ |
83,197 |
$ |
2,840 |
3.4 |
% |
||||||||||||||||
| Interest expense | 12,924 |
13,036 |
(112 |
) |
(0.9 |
%) |
12,608 |
316 |
2.5 |
% |
39,292 |
37,597 |
1,695 |
4.5 |
% |
|||||||||||||||||||||||
| Net interest income | 16,543 |
15,370 |
1,173 |
7.6 |
% |
15,730 |
813 |
5.2 |
% |
46,745 |
45,600 |
1,145 |
2.5 |
% |
||||||||||||||||||||||||
| Provision for credit losses | - |
500 |
(500 |
) |
(100.0 |
%) |
470 |
(470 |
) |
(100.0 |
%) |
1,000 |
1,560 |
(560 |
) |
(35.9 |
%) |
|||||||||||||||||||||
| Net interest income after provision for credit losses | 16,543 |
14,870 |
1,673 |
11.3 |
% |
15,260 |
1,283 |
8.4 |
% |
45,745 |
44,040 |
1,705 |
3.9 |
% |
||||||||||||||||||||||||
| Gain on sale of loans | 1,050 |
1,938 |
(888 |
) |
(45.8 |
%) |
648 |
402 |
62.0 |
% |
5,447 |
2,569 |
2,878 |
112.0 |
% |
|||||||||||||||||||||||
| Gain/(Loss) on sale of OREO | - |
(96 |
) |
96 |
100.0 |
% |
29 |
(29 |
) |
(100.0 |
%) |
(96 |
) |
(130 |
) |
34 |
26.2 |
% |
||||||||||||||||||||
| SBA servicing fee income, net | 750 |
774 |
(24 |
) |
(3.1 |
%) |
705 |
45 |
6.4 |
% |
2,226 |
2,195 |
31 |
1.4 |
% |
|||||||||||||||||||||||
| Recovery on impaired servicing liability | - |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||
| Service charges and other income | 510 |
469 |
41 |
8.7 |
% |
469 |
41 |
8.7 |
% |
1,460 |
1,415 |
45 |
3.2 |
% |
||||||||||||||||||||||||
| Noninterest income | 2,310 |
3,085 |
(775 |
) |
(25.1 |
%) |
1,851 |
459 |
24.8 |
% |
9,037 |
6,049 |
2,988 |
49.4 |
% |
|||||||||||||||||||||||
| Salaries and employee benefits | 6,674 |
6,655 |
19 |
0.3 |
% |
5,849 |
825 |
14.1 |
% |
19,191 |
17,476 |
1,715 |
9.8 |
% |
||||||||||||||||||||||||
| Occupancy and equipment | 1,544 |
1,326 |
218 |
16.4 |
% |
1,378 |
166 |
12.0 |
% |
4,302 |
3,985 |
317 |
8.0 |
% |
||||||||||||||||||||||||
| Marketing expense | 472 |
418 |
54 |
12.9 |
% |
397 |
75 |
18.9 |
% |
1,286 |
1,016 |
270 |
26.6 |
% |
||||||||||||||||||||||||
| Professional expense | 622 |
517 |
105 |
20.3 |
% |
699 |
(77 |
) |
(11.0 |
%) |
1,538 |
1,748 |
(210 |
) |
(12.0 |
%) |
||||||||||||||||||||||
| Other expenses | 2,414 |
2,259 |
155 |
6.9 |
% |
2,485 |
(71 |
) |
(2.9 |
%) |
6,717 |
7,092 |
(375 |
) |
(5.3 |
%) |
||||||||||||||||||||||
| Noninterest expense | 11,726 |
11,175 |
551 |
4.9 |
% |
10,808 |
918 |
8.5 |
% |
33,034 |
31,317 |
1,717 |
5.5 |
% |
||||||||||||||||||||||||
| Income before income tax expense | 7,127 |
6,780 |
347 |
5.1 |
% |
6,303 |
824 |
13.1 |
% |
21,748 |
18,772 |
2,976 |
15.9 |
% |
||||||||||||||||||||||||
| Income tax expense | 2,036 |
1,883 |
153 |
8.1 |
% |
1,758 |
278 |
15.8 |
% |
6,090 |
5,379 |
711 |
13.2 |
% |
||||||||||||||||||||||||
| Net income | $ |
5,091 |
$ |
4,897 |
$ |
194 |
4.0 |
% |
$ |
4,545 |
$ |
546 |
12.0 |
% |
$ |
15,658 |
$ |
13,393 |
$ |
2,265 |
16.9 |
% |
||||||||||||||||
| Effective tax rate | 28.57 |
% |
27.77 |
% |
0.79 |
% |
2.86 |
% |
27.89 |
% |
0.68 |
% |
2.4 |
% |
28.00 |
% |
28.65 |
% |
(0.65 |
%) |
(2.27 |
%) |
||||||||||||||||
| Outstanding number of shares | 10,621,136 |
10,588,136 |
33,000 |
0.3 |
% |
10,588,136 |
33,000 |
0.3 |
% |
10,621,136 |
10,588,136 |
33,000 |
0.3 |
% |
||||||||||||||||||||||||
| Weighted average shares for basic EPS | 10,610,375 |
10,588,136 |
22,239 |
0.2 |
% |
10,588,136 |
22,239 |
0.2 |
% |
10,595,631 |
10,588,136 |
7,495 |
0.1 |
% |
||||||||||||||||||||||||
| Weighted average shares for diluted EPS | 10,667,090 |
10,617,843 |
49,247 |
0.5 |
% |
10,600,724 |
66,366 |
0.6 |
% |
10,633,052 |
10,599,692 |
33,360 |
0.3 |
% |
||||||||||||||||||||||||
| Basic EPS | $ |
0.48 |
$ |
0.46 |
$ |
0.02 |
4.3 |
% |
$ |
0.43 |
$ |
0.05 |
11.6 |
% |
$ |
1.48 |
$ |
1.27 |
$ |
0.21 |
16.5 |
% |
||||||||||||||||
| Diluted EPS | $ |
0.48 |
$ |
0.46 |
$ |
0.02 |
4.3 |
% |
$ |
0.43 |
$ |
0.05 |
11.6 |
% |
$ |
1.47 |
$ |
1.27 |
$ |
0.20 |
15.7 |
% |
||||||||||||||||
| Return on average assets | 1.03 |
% |
1.00 |
% |
0.03 |
% |
3.0 |
% |
0.98 |
% |
0.05 |
% |
5.1 |
% |
1.07 |
% |
0.99 |
% |
0.08 |
% |
8.1 |
% |
||||||||||||||||
| Return on average equity | 7.25 |
% |
7.16 |
% |
0.09 |
% |
1.3 |
% |
6.83 |
% |
0.42 |
% |
6.2 |
% |
7.62 |
% |
6.87 |
% |
0.75 |
% |
10.9 |
% |
||||||||||||||||
| Efficiency ratio | 62.20 |
% |
60.55 |
% |
1.65 |
% |
2.7 |
% |
61.48 |
% |
0.72 |
% |
1.2 |
% |
59.22 |
% |
60.63 |
% |
(1.41 |
%) |
(2.3 |
%) |
||||||||||||||||
| Yield on interest-earning assets¹ | 6.04 |
% |
5.94 |
% |
0.10 |
% |
1.7 |
% |
6.27 |
% |
(0.23 |
%) |
(3.7 |
%) |
5.97 |
% |
6.27 |
% |
(0.30 |
%) |
(4.8 |
%) |
||||||||||||||||
| Cost of funds | 3.08 |
% |
3.16 |
% |
(0.08 |
%) |
(2.5 |
%) |
3.25 |
% |
(0.17 |
%) |
(5.2 |
%) |
3.17 |
% |
3.29 |
% |
(0.12 |
%) |
(3.6 |
%) |
||||||||||||||||
| Net interest margin¹ | 3.40 |
% |
3.22 |
% |
0.18 |
% |
5.6 |
% |
3.49 |
% |
(0.09 |
%) |
(2.7 |
%) |
3.25 |
% |
3.44 |
% |
(0.19 |
%) |
(5.5 |
%) |
||||||||||||||||
| ¹ 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, | $ | % | ||||||||||||||||||
2026 |
2026 |
Change |
Change |
2025 |
Change |
Change |
||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Cash and due from banks | $ |
11,370 |
$ |
12,089 |
$ |
(719 |
) |
(5.9 |
%) |
$ |
25,597 |
$ |
(14,227 |
) |
(55.6 |
%) |
||||||||
| Interest-earning deposits at the FRB and other banks | 237,374 |
335,457 |
(98,083 |
) |
(29.2 |
%) |
385,282 |
(147,908 |
) |
(38.4 |
%) |
|||||||||||||
| Investment securities¹ | 54,077 |
63,455 |
(9,378 |
) |
(14.8 |
%) |
67,459 |
(13,382 |
) |
(19.8 |
%) |
|||||||||||||
| Loans held-for-sale | 85,400 |
66,477 |
18,923 |
28.5 |
% |
175,158 |
(89,758 |
) |
(51.2 |
%) |
||||||||||||||
| Loans held-for-investment | 1,500,636 |
1,457,550 |
43,086 |
3.0 |
% |
1,272,474 |
228,162 |
17.9 |
% |
|||||||||||||||
| Less: Allowance for credit losses ("ACL") | (17,061 |
) |
(17,357 |
) |
296 |
1.7 |
% |
(16,151 |
) |
(910 |
) |
(5.6 |
%) |
|||||||||||
| Loans held-for-investment, net | 1,483,575 |
1,440,193 |
43,382 |
3.0 |
% |
1,256,323 |
227,252 |
18.1 |
% |
|||||||||||||||
| Other real estate owned ("OREO") | 1,600 |
1,192 |
408 |
34.2 |
% |
297 |
1,303 |
438.7 |
% |
|||||||||||||||
| Restricted stock investments | 11,086 |
11,086 |
- |
- |
11,011 |
75 |
0.7 |
% |
||||||||||||||||
| Servicing assets | 6,778 |
6,935 |
(157 |
) |
(2.3 |
%) |
6,342 |
436 |
6.9 |
% |
||||||||||||||
| Goodwill | 2,185 |
2,185 |
- |
- |
2,185 |
- |
- |
|||||||||||||||||
| Intangible assets | 150 |
159 |
(9 |
) |
(5.7 |
%) |
186 |
(36 |
) |
(19.4 |
%) |
|||||||||||||
| Other assets | 27,336 |
27,075 |
261 |
1.0 |
% |
32,602 |
(5,266 |
) |
(16.2 |
%) |
||||||||||||||
| Total assets | $ |
1,920,931 |
$ |
1,966,303 |
$ |
(45,372 |
) |
(2.3 |
%) |
$ |
1,962,442 |
$ |
(41,511 |
) |
(2.1 |
%) |
||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
| Noninterest-bearing | $ |
341,980 |
$ |
301,491 |
$ |
40,489 |
13.4 |
% |
$ |
280,351 |
$ |
61,629 |
22.0 |
% |
||||||||||
| Interest-bearing | 1,276,263 |
1,361,866 |
(85,603 |
) |
(6.3 |
%) |
1,385,920 |
(109,657 |
) |
(7.9 |
%) |
|||||||||||||
| Total deposits | 1,618,243 |
1,663,357 |
(45,114 |
) |
(2.7 |
%) |
1,666,271 |
(48,028 |
) |
(2.9 |
%) |
|||||||||||||
| FHLB advances and other borrowing | - |
- |
- |
- |
- |
- |
- |
|||||||||||||||||
| Other liabilities | 22,291 |
26,316 |
(4,025 |
) |
(15.3 |
%) |
30,649 |
(8,358 |
) |
(27.3 |
%) |
|||||||||||||
| Total liabilities | 1,640,534 |
1,689,673 |
(49,139 |
) |
(2.9 |
%) |
1,696,920 |
(56,386 |
) |
(3.3 |
%) |
|||||||||||||
| Stockholders' Equity | 280,397 |
276,630 |
3,767 |
1.4 |
% |
265,522 |
14,875 |
5.6 |
% |
|||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,920,931 |
$ |
1,966,303 |
$ |
(45,372 |
) |
(2.3 |
%) |
$ |
1,962,442 |
$ |
(41,511 |
) |
(2.1 |
%) |
||||||||
| CAPITAL RATIOS | ||||||||||||||||||||||||
| Leverage ratio | ||||||||||||||||||||||||
| Company | 14.15 |
% |
13.99 |
% |
0.15 |
% |
1.1 |
% |
14.34 |
% |
(0.20 |
%) |
(1.4 |
%) |
||||||||||
| Bank | 14.08 |
% |
13.93 |
% |
0.14 |
% |
1.0 |
% |
14.32 |
% |
(0.24 |
%) |
(1.7 |
%) |
||||||||||
| Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||
| Company | 18.39 |
% |
18.73 |
% |
(0.34 |
%) |
(1.8 |
%) |
19.26 |
% |
(0.86 |
%) |
(4.5 |
%) |
||||||||||
| Bank | 18.30 |
% |
18.65 |
% |
(0.35 |
%) |
(1.9 |
%) |
19.22 |
% |
(0.92 |
%) |
(4.8 |
%) |
||||||||||
| Tier 1 risk-based capital ratio | ||||||||||||||||||||||||
| Company | 18.39 |
% |
18.73 |
% |
(0.34 |
%) |
(1.8 |
%) |
19.26 |
% |
(0.86 |
%) |
(4.5 |
%) |
||||||||||
| Bank | 18.30 |
% |
18.65 |
% |
(0.35 |
%) |
(1.9 |
%) |
19.22 |
% |
(0.92 |
%) |
(4.8 |
%) |
||||||||||
| Total risk-based capital ratio | ||||||||||||||||||||||||
| Company | 19.55 |
% |
19.94 |
% |
(0.39 |
%) |
(2.0 |
%) |
20.46 |
% |
(0.91 |
%) |
(4.4 |
%) |
||||||||||
| Bank | 19.46 |
% |
19.87 |
% |
(0.41 |
%) |
(2.0 |
%) |
20.42 |
% |
(0.96 |
%) |
(4.7 |
%) |
||||||||||
| Tangible book value per share | $ |
26.18 |
$ |
25.91 |
$ |
0.27 |
1.0 |
% |
$ |
24.85 |
$ |
1.33 |
5.4 |
% |
||||||||||
| Common shares outstanding | 10,621,136 |
10,588,136 |
33,000 |
0.3 |
% |
10,588,136 |
33,000 |
0.3 |
% |
|||||||||||||||
| Loans Held for Investments-to-Deposit ("LHFITD") ratio | 92.73 |
% |
87.63 |
% |
5.10 |
% |
5.8 |
% |
76.37 |
% |
16.36 |
% |
21.4 |
% |
||||||||||
| Net Loan-to-Deposit ("LTD") ratio | 96.96 |
% |
90.58 |
% |
6.38 |
% |
7.0 |
% |
85.91 |
% |
11.05 |
% |
12.9 |
% |
||||||||||
| Nonperforming assets | $ |
25,469 |
$ |
21,559 |
$ |
3,910 |
18.1 |
% |
$ |
16,399 |
$ |
9,070 |
55.3 |
% |
||||||||||
| Nonperforming assets as a % of loans held-for-investment | 1.70 |
% |
1.48 |
% |
0.22 |
% |
14.9 |
% |
1.29 |
% |
0.41 |
% |
31.8 |
% |
||||||||||
| ACL as a % of loans held-for-investment | 1.14 |
% |
1.19 |
% |
(0.05 |
%) |
(4.2 |
%) |
1.27 |
% |
(0.13 |
%) |
(10.2 |
%) |
||||||||||
| ¹ Includes AFS and HTM | ||||||||||||||||||||||||
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, | |||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||||
| Interest income | $ |
29,467 |
$ |
28,406 |
$ |
28,164 |
$ |
29,869 |
$ |
28,338 |
|||||||||||
| Interest expense | 12,924 |
13,036 |
13,332 |
14,211 |
12,608 |
||||||||||||||||
| Net interest income | 16,543 |
15,370 |
14,832 |
15,658 |
15,730 |
||||||||||||||||
| Provision for credit losses | - |
500 |
500 |
300 |
470 |
||||||||||||||||
| Net interest income after provision for credit losses | 16,543 |
14,870 |
14,332 |
15,358 |
15,260 |
||||||||||||||||
| Gain on sale of loans | 1,050 |
1,938 |
2,459 |
802 |
648 |
||||||||||||||||
| Gain/(Loss) on sale of OREO | - |
(96 |
) |
- |
- |
29 |
|||||||||||||||
| SBA servicing fee income, net | 750 |
774 |
702 |
587 |
705 |
||||||||||||||||
| Recovery on impaired servicing liability | - |
- |
- |
- |
- |
||||||||||||||||
| Service charges and other income | 510 |
469 |
481 |
428 |
469 |
||||||||||||||||
| Noninterest income | 2,310 |
3,085 |
3,642 |
1,817 |
1,851 |
||||||||||||||||
| Salaries and employee benefits | 6,674 |
6,655 |
5,862 |
6,478 |
5,849 |
||||||||||||||||
| Occupancy and equipment | 1,544 |
1,326 |
1,432 |
1,400 |
1,378 |
||||||||||||||||
| Marketing expense | 472 |
418 |
396 |
380 |
397 |
||||||||||||||||
| Professional expense | 622 |
517 |
399 |
519 |
699 |
||||||||||||||||
| Other expenses | 2,414 |
2,259 |
2,044 |
2,255 |
2,485 |
||||||||||||||||
| Noninterest expense | 11,726 |
11,175 |
10,133 |
11,032 |
10,808 |
||||||||||||||||
| Income before income tax expense | 7,127 |
6,780 |
7,841 |
6,143 |
6,303 |
||||||||||||||||
| Income tax expense | 2,036 |
1,883 |
2,171 |
1,641 |
1,758 |
||||||||||||||||
| Net income | $ |
5,091 |
$ |
4,897 |
$ |
5,670 |
$ |
4,502 |
$ |
4,545 |
|||||||||||
| Effective tax rate | 28.57 |
% |
27.77 |
% |
27.69 |
% |
26.71 |
% |
27.89 |
% |
|||||||||||
| Outstanding number of shares | 10,621,136 |
10,588,136 |
10,588,136 |
10,588,136 |
10,588,136 |
||||||||||||||||
| Weighted average shares for basic EPS | 10,610,375 |
10,588,136 |
10,588,136 |
10,588,136 |
10,588,136 |
||||||||||||||||
| Weighted average shares for diluted EPS | 10,667,090 |
10,617,843 |
10,613,980 |
10,602,538 |
10,600,724 |
||||||||||||||||
| Basic EPS | $ |
0.48 |
$ |
0.46 |
$ |
0.54 |
$ |
0.42 |
$ |
0.43 |
|||||||||||
| Diluted EPS | $ |
0.48 |
$ |
0.46 |
$ |
0.53 |
$ |
0.42 |
$ |
0.43 |
|||||||||||
| 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, | |||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||||
| Salaries and benefits | $ |
6,674 |
$ |
6,655 |
$ |
5,862 |
$ |
6,478 |
$ |
5,849 |
|||||||||||
| FTE at the end of period | 180 |
178 |
172 |
174 |
171 |
||||||||||||||||
| Average FTE during the period | 178 |
175 |
174 |
170 |
168 |
||||||||||||||||
| Salaries and benefits/average FTE¹ | $ |
148 |
$ |
152 |
$ |
137 |
$ |
151 |
$ |
138 |
|||||||||||
| Salaries and benefits/average assets¹ | 1.35 |
% |
1.36 |
% |
1.21 |
% |
1.28 |
% |
1.27 |
% |
|||||||||||
| Noninterest expense/average assets¹ | 2.36 |
% |
2.29 |
% |
2.09 |
% |
2.18 |
% |
2.34 |
% |
|||||||||||
| 1 Annualized | |||||||||||||||||||||
| FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ |
11,370 |
$ |
12,089 |
$ |
13,776 |
$ |
10,265 |
$ |
25,597 |
||||||||||
| Interest-earning deposits at the FRB and other banks | 237,374 |
335,457 |
405,896 |
426,000 |
385,282 |
|||||||||||||||
| Investment securities | 54,077 |
63,455 |
64,674 |
65,730 |
67,459 |
|||||||||||||||
| Loans held-for-sale | 85,400 |
66,477 |
62,173 |
65,419 |
175,158 |
|||||||||||||||
| Loans held-for-investment | 1,500,636 |
1,457,550 |
1,404,573 |
1,397,420 |
1,272,474 |
|||||||||||||||
| Less: Allowance for credit losses | (17,061 |
) |
(17,357 |
) |
(16,854 |
) |
(16,345 |
) |
(16,151 |
) |
||||||||||
| Loans held-for-investment, net | 1,483,575 |
1,440,193 |
1,387,719 |
1,381,075 |
1,256,323 |
|||||||||||||||
| Other real estate owned | 1,600 |
1,192 |
5,651 |
5,651 |
297 |
|||||||||||||||
| Restricted stock investments | 11,086 |
11,086 |
11,021 |
11,011 |
11,011 |
|||||||||||||||
| Servicing assets | 6,778 |
6,935 |
6,671 |
6,141 |
6,342 |
|||||||||||||||
| Goodwill | 2,185 |
2,185 |
2,185 |
2,185 |
2,185 |
|||||||||||||||
| Intangible assets | 150 |
159 |
168 |
176 |
186 |
|||||||||||||||
| Other assets | 27,336 |
27,075 |
30,964 |
33,373 |
32,602 |
|||||||||||||||
| Total assets | $ |
1,920,931 |
$ |
1,966,303 |
$ |
1,990,898 |
$ |
2,007,026 |
$ |
1,962,442 |
||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Noninterest-bearing | $ |
341,980 |
$ |
301,491 |
$ |
309,194 |
$ |
301,775 |
$ |
280,351 |
||||||||||
| Interest-bearing | 1,276,263 |
1,361,866 |
1,377,261 |
1,405,552 |
1,385,920 |
|||||||||||||||
| Total deposits | 1,618,243 |
1,663,357 |
1,686,455 |
1,707,327 |
1,666,271 |
|||||||||||||||
| FHLB advances | - |
- |
- |
- |
- |
|||||||||||||||
| Other liabilities | 22,291 |
26,316 |
31,380 |
30,950 |
30,649 |
|||||||||||||||
| Total liabilities | 1,640,534 |
1,689,673 |
1,717,835 |
1,738,277 |
1,696,920 |
|||||||||||||||
| Stockholders' Equity | 280,397 |
276,630 |
273,063 |
268,749 |
265,522 |
|||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,920,931 |
$ |
1,966,303 |
$ |
1,990,898 |
$ |
2,007,026 |
$ |
1,962,442 |
||||||||||
| FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | |||||||||||||||||||||
| Construction | $ |
20,945 |
1.4 |
% |
$ |
19,396 |
1.3 |
% |
$ |
21,063 |
1.5 |
% |
$ |
18,566 |
1.3 |
% |
$ |
36,480 |
2.9 |
% |
||||||||||
| Commercial real estate | 1,304,848 |
87.0 |
% |
1,265,931 |
86.9 |
% |
1,209,647 |
86.1 |
% |
1,204,652 |
86.2 |
% |
1,088,603 |
85.6 |
% |
|||||||||||||||
| Commercial and industrial | 141,914 |
9.4 |
% |
135,376 |
9.3 |
% |
135,286 |
9.6 |
% |
134,306 |
9.6 |
% |
103,276 |
8.1 |
% |
|||||||||||||||
| Home mortgage | 25,390 |
1.7 |
% |
29,606 |
2.0 |
% |
31,247 |
2.2 |
% |
32,188 |
2.3 |
% |
36,522 |
2.9 |
% |
|||||||||||||||
| Consumer | 3,942 |
0.3 |
% |
3,893 |
0.3 |
% |
3,803 |
0.3 |
% |
4,174 |
0.3 |
% |
3,548 |
0.3 |
% |
|||||||||||||||
| Gross loans held-for-investment | 1,497,039 |
99.8 |
% |
1,454,202 |
99.8 |
% |
1,401,046 |
99.7 |
% |
1,393,886 |
99.7 |
% |
1,268,429 |
99.7 |
% |
|||||||||||||||
| Deferred loan fees/costs, net | 3,597 |
0.2 |
% |
3,348 |
0.2 |
% |
3,527 |
0.3 |
% |
3,534 |
0.3 |
% |
4,045 |
0.3 |
% |
|||||||||||||||
| Loans held-for-investment | $ |
1,500,636 |
100.0 |
% |
$ |
1,457,550 |
100.0 |
% |
$ |
1,404,573 |
100.0 |
% |
$ |
1,397,420 |
100.0 |
% |
$ |
1,272,474 |
100.0 |
% |
||||||||||
| Loans held-for-sale | $ |
85,400 |
$ |
66,477 |
$ |
62,173 |
$ |
65,419 |
$ |
175,158 |
||||||||||||||||||||
| Total loans receivable | $ |
1,586,036 |
$ |
1,524,027 |
$ |
1,466,746 |
$ |
1,462,839 |
$ |
1,447,632 |
||||||||||||||||||||
| 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, | ||||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
||||||||||||||||||||||
| SBA loans held-for-sale at beginning of the quarter/year | $ |
66,477 |
$ |
62,173 |
$ |
65,419 |
$ |
175,158 |
$ |
183,996 |
$ |
65,419 |
$ |
198,448 |
||||||||||||||
| SBA loans originated/transferred from/to held-for- | ||||||||||||||||||||||||||||
| investment during the quarter/year | 42,223 |
42,126 |
46,078 |
(77,847 |
) |
19,835 |
130,427 |
63,748 |
||||||||||||||||||||
| SBA loans sold during the quarter/year | (18,417 |
) |
(37,131 |
) |
(48,199 |
) |
(19,702 |
) |
(14,539 |
) |
(103,747 |
) |
(51,872 |
) |
||||||||||||||
| SBA loans principal paydown/payoff, net of advance | (4,883 |
) |
(691 |
) |
(1,125 |
) |
(12,190 |
) |
(14,134 |
) |
(6,699 |
) |
(35,166 |
) |
||||||||||||||
| SBA loans held-for-sale at end of the quarter/year | $ |
85,400 |
$ |
66,477 |
$ |
62,173 |
$ |
65,419 |
$ |
175,158 |
$ |
85,400 |
$ |
175,158 |
||||||||||||||
| Gain on sale of SBA loans | $ |
1,050 |
$ |
1,938 |
$ |
2,459 |
$ |
802 |
$ |
648 |
$ |
5,447 |
$ |
2,569 |
||||||||||||||
| Premium on sale (weighted average) | 8.9 |
% |
8.2 |
% |
8.0 |
% |
6.8 |
% |
7.1 |
% |
8.2 |
% |
7.8 |
% |
||||||||||||||
| SBA loan production | $ |
49,242 |
$ |
53,013 |
$ |
63,226 |
$ |
12,952 |
$ |
22,228 |
$ |
165,480 |
$ |
83,122 |
||||||||||||||
| FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8 | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| Three Months Ended | NIne Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September | September | |||||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
|||||||||||||||||||||||
| SBA servicing assets @ beginning of the quarter/year | $ |
6,935 |
$ |
6,671 |
$ |
6,141 |
$ |
6,342 |
$ |
6,609 |
$ |
6,141 |
$ |
6,909 |
|||||||||||||||
| Newly added SBA servicing assets from SBA loans sold | 380 |
754 |
1019 |
405 |
268 |
2,153 |
984 |
||||||||||||||||||||||
| Regular quarterly/annual servicing assets amortization | (302 |
) |
(290 |
) |
(270 |
) |
(279 |
) |
(288 |
) |
(862 |
) |
(892 |
) |
|||||||||||||||
| SBA servicing assets amortized from SBA loans paid off/charged off | (235 |
) |
(200 |
) |
(219 |
) |
(327 |
) |
(247 |
) |
(654 |
) |
(659 |
) |
|||||||||||||||
| Subtotal before impairment | 6,778 |
6,935 |
6,671 |
6,141 |
6,342 |
6,778 |
6,342 |
||||||||||||||||||||||
| Reversal of valuation allowance on servicing assets | - |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||
| SBA servicing assets @ the end of the quarter/year | $ |
6,778 |
$ |
6,935 |
$ |
6,671 |
$ |
6,141 |
$ |
6,342 |
$ |
6,778 |
$ |
6,342 |
|||||||||||||||
| FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | ||||||||||||||||||||||
| Noninterest-bearing demand | $ |
341,980 |
21.1 |
% |
$ |
301,491 |
18.1 |
% |
$ |
309,194 |
18.3 |
% |
$ |
301,775 |
17.7 |
% |
$ |
280,351 |
16.8 |
% |
|||||||||||
| Interest-bearing demand | 5,719 |
0.3 |
% |
7,537 |
0.5 |
% |
6,362 |
0.4 |
% |
5,813 |
0.3 |
% |
5,745 |
0.3 |
% |
||||||||||||||||
| NOW & MMDA | 302,081 |
18.7 |
% |
280,223 |
16.8 |
% |
291,265 |
17.3 |
% |
310,147 |
18.2 |
% |
305,649 |
18.4 |
% |
||||||||||||||||
| Savings | 101,413 |
6.3 |
% |
92,440 |
5.6 |
% |
92,238 |
5.5 |
% |
87,036 |
5.1 |
% |
83,368 |
5.0 |
% |
||||||||||||||||
| TCDs of $250K and under | 381,841 |
23.6 |
% |
436,083 |
26.2 |
% |
435,372 |
25.8 |
% |
433,873 |
25.4 |
% |
419,821 |
25.2 |
% |
||||||||||||||||
| TCDs of $250K over | 455,208 |
28.1 |
% |
485,582 |
29.2 |
% |
467,016 |
27.7 |
% |
473,025 |
27.7 |
% |
471,048 |
28.3 |
% |
||||||||||||||||
| Wholesale deposits | 30,001 |
1.9 |
% |
60,001 |
3.6 |
% |
85,008 |
5.0 |
% |
95,658 |
5.6 |
% |
100,289 |
6.0 |
% |
||||||||||||||||
| Total Deposits | $ |
1,618,243 |
100.0 |
% |
$ |
1,663,357 |
100.0 |
% |
$ |
1,686,455 |
100.0 |
% |
$ |
1,707,327 |
100.0 |
% |
$ |
1,666,271 |
100.0 |
% |
|||||||||||
| Recap: | |||||||||||||||||||||||||||||||
| Noninterest-bearing demand | $ |
341,980 |
21.1 |
% |
$ |
301,491 |
18.1 |
% |
$ |
309,194 |
18.3 |
% |
$ |
301,775 |
17.7 |
% |
$ |
280,351 |
16.8 |
% |
|||||||||||
| Interest-bearing demand | 5,719 |
0.4 |
% |
7,537 |
0.5 |
% |
6,362 |
0.4 |
% |
5,813 |
0.3 |
% |
5,745 |
0.3 |
% |
||||||||||||||||
| NOW & MMDA | 302,081 |
18.7 |
% |
280,223 |
16.8 |
% |
291,265 |
17.3 |
% |
310,147 |
18.2 |
% |
305,649 |
18.4 |
% |
||||||||||||||||
| Savings | 101,413 |
6.3 |
% |
92,440 |
5.6 |
% |
92,238 |
5.5 |
% |
87,036 |
5.1 |
% |
83,368 |
5.0 |
% |
||||||||||||||||
| TCDs of $250K and under | 381,841 |
23.6 |
% |
436,083 |
26.2 |
% |
435,372 |
25.8 |
% |
433,873 |
25.4 |
% |
419,821 |
25.2 |
% |
||||||||||||||||
| Core Deposits | 1,133,034 |
70.0 |
% |
1,117,774 |
67.2 |
% |
1,134,431 |
67.3 |
% |
1,138,644 |
66.7 |
% |
1,094,934 |
65.7 |
% |
||||||||||||||||
| TCDs of $250K over | 455,208 |
28.1 |
% |
485,582 |
29.2 |
% |
467,016 |
27.7 |
% |
473,025 |
27.7 |
% |
471,048 |
28.3 |
% |
||||||||||||||||
| Nonreciprocal ICS MMDA | - |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||
| Wholesale deposits | 30,001 |
1.9 |
% |
60,001 |
3.6 |
% |
85,008 |
5.0 |
% |
95,658 |
5.6 |
% |
100,289 |
6.0 |
% |
||||||||||||||||
| Noncore Deposits | 485,209 |
30.0 |
% |
545,583 |
32.8 |
% |
552,024 |
32.7 |
% |
568,683 |
33.3 |
% |
571,337 |
34.3 |
% |
||||||||||||||||
| Total Deposits | $ |
1,618,243 |
100.0 |
% |
$ |
1,663,357 |
100.0 |
% |
$ |
1,686,455 |
100.0 |
% |
$ |
1,707,327 |
100.0 |
% |
$ |
1,666,271 |
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. | ||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
||||||||||||||||||
| Allowance for Credit Losses | ||||||||||||||||||||||
| Balance at beginning of period | $ |
17,357 |
$ |
16,854 |
$ |
16,345 |
$ |
16,151 |
$ |
15,461 |
||||||||||||
| Provision for credit losses | (30 |
) |
500 |
500 |
210 |
500 |
||||||||||||||||
| Charge-offs | (271 |
) |
- |
(1 |
) |
(27 |
) |
- |
||||||||||||||
| Recoveries | 5 |
3 |
10 |
11 |
190 |
|||||||||||||||||
| Balance at the end of period | $ |
17,061 |
$ |
17,357 |
$ |
16,854 |
$ |
16,345 |
$ |
16,151 |
||||||||||||
| Nonperforming Assets:¹ | ||||||||||||||||||||||
| Over 90 days still accruing | $ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
1,237 |
||||||||||||
| Nonaccrual loans | 23,869 |
20,367 |
17,066 |
15,960 |
14,865 |
|||||||||||||||||
| Total nonperforming loans | 23,869 |
20,367 |
17,066 |
15,960 |
16,102 |
|||||||||||||||||
| Other real estate owned | $ |
1,600 |
1,192 |
5,651 |
5,651 |
297 |
||||||||||||||||
| Total nonperforming assets | $ |
25,469 |
$ |
21,559 |
$ |
22,717 |
$ |
21,611 |
$ |
16,399 |
||||||||||||
| Classified Assets:¹ | ||||||||||||||||||||||
| Substandard | $ |
31,880 |
$ |
29,868 |
$ |
23,147 |
$ |
29,666 |
$ |
31,465 |
||||||||||||
| Doubtful | - |
- |
- |
- |
- |
|||||||||||||||||
| Loss | - |
- |
- |
- |
- |
|||||||||||||||||
| Total classified loans | $ |
31,880 |
$ |
29,868 |
$ |
23,147 |
$ |
29,666 |
$ |
31,465 |
||||||||||||
| Other real estate owned | $ |
1,600 |
1,192 |
5,651 |
5,651 |
297 |
||||||||||||||||
| Total classified assets | $ |
33,480 |
$ |
31,060 |
$ |
28,798 |
$ |
35,317 |
$ |
31,762 |
||||||||||||
| Performing modified loans:¹ | $ |
- |
$ |
- |
$ |
- |
$ |
1,176 |
$ |
160 |
||||||||||||
| Delinquent Loans:¹ | ||||||||||||||||||||||
| Loans 30-89 days past due | $ |
12,868 |
$ |
8,056 |
$ |
11,078 |
$ |
7,563 |
$ |
7,478 |
||||||||||||
| 90 days or more past due and still accruing | - |
- |
- |
- |
1,237 |
|||||||||||||||||
| Nonaccrual | 23,869 |
20,367 |
17,066 |
15,960 |
14,865 |
|||||||||||||||||
| Total delinquent loans | $ |
36,737 |
$ |
28,423 |
$ |
28,144 |
$ |
23,523 |
$ |
23,580 |
||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||
| Net (recoveries) charge-offs to average loans² | 0.07 |
% |
0.00 |
% |
0.00 |
% |
0.00 |
% |
(0.05 |
%) |
||||||||||||
| Nonaccrual loans to loans held-for-investment | 1.59 |
% |
1.40 |
% |
1.22 |
% |
1.14 |
% |
1.17 |
% |
||||||||||||
| Nonperforming loans to loans held-for-investment | 1.59 |
% |
1.40 |
% |
1.22 |
% |
1.14 |
% |
1.27 |
% |
||||||||||||
| Nonperforming assets to total assets | 1.33 |
% |
1.10 |
% |
1.14 |
% |
1.08 |
% |
0.84 |
% |
||||||||||||
| Classified loans to loans held-for-investment | 2.12 |
% |
2.05 |
% |
1.65 |
% |
2.12 |
% |
2.47 |
% |
||||||||||||
| Classified loans to Tier 1 and ACL | 10.80 |
% |
10.24 |
% |
8.05 |
% |
10.49 |
% |
11.27 |
% |
||||||||||||
| Classified assets to total assets | 1.74 |
% |
1.58 |
% |
1.45 |
% |
1.76 |
% |
1.62 |
% |
||||||||||||
| Classified assets to Tier 1 and ACL | 11.34 |
% |
10.65 |
% |
10.01 |
% |
12.49 |
% |
11.37 |
% |
||||||||||||
| ACL to loans held-for-investment | 1.14 |
% |
1.19 |
% |
1.20 |
% |
1.17 |
% |
1.27 |
% |
||||||||||||
| ACL to nonaccrual loans | 71.48 |
% |
85.22 |
% |
98.76 |
% |
102.41 |
% |
108.65 |
% |
||||||||||||
| ACL to nonperforming loans | 71.48 |
% |
85.22 |
% |
98.76 |
% |
102.41 |
% |
100.30 |
% |
||||||||||||
| ACL to nonperforming assets | 66.99 |
% |
80.51 |
% |
74.19 |
% |
75.63 |
% |
98.49 |
% |
||||||||||||
| Texas ratio ³ | 8.63 |
% |
7.39 |
% |
7.90 |
% |
7.64 |
% |
5.87 |
% |
||||||||||||
| 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 | 2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||||||||
| Leverage ratio | |||||||||||||||||||||||||||
| Company | N/A |
N/A |
14.15 |
% |
13.99 |
% |
13.78 |
% |
13.25 |
% |
14.34 |
% |
|||||||||||||||
| Bank | 5.00 |
% |
4.00 |
% |
14.08 |
% |
13.93 |
% |
13.76 |
% |
13.23 |
% |
14.32 |
% |
|||||||||||||
| Common equity tier 1 risk-based capital ratio | |||||||||||||||||||||||||||
| Company | N/A |
N/A |
18.39 |
% |
18.73 |
% |
19.24 |
% |
19.03 |
% |
19.26 |
% |
|||||||||||||||
| Bank | 6.50 |
% |
7.00 |
% |
18.30 |
% |
18.65 |
% |
19.22 |
% |
19.01 |
% |
19.22 |
% |
|||||||||||||
| Tier 1 risk-based capital ratio | |||||||||||||||||||||||||||
| Company | N/A |
N/A |
18.39 |
% |
18.73 |
% |
19.24 |
% |
19.03 |
% |
19.26 |
% |
|||||||||||||||
| Bank | 8.00 |
% |
8.50 |
% |
18.30 |
% |
18.65 |
% |
19.22 |
% |
19.01 |
% |
19.22 |
% |
|||||||||||||
| Total risk-based capital ratio | |||||||||||||||||||||||||||
| Company | N/A |
N/A |
19.55 |
% |
19.94 |
% |
20.47 |
% |
20.22 |
% |
20.46 |
% |
|||||||||||||||
| Bank | 10.00 |
% |
10.50 |
% |
19.46 |
% |
19.87 |
% |
20.45 |
% |
20.20 |
% |
20.42 |
% |
|||||||||||||
| Tangible common equity ratio¹ | 14.49 |
% |
13.97 |
% |
13.61 |
% |
13.29 |
% |
13.43 |
% |
|||||||||||||||||
| Tangible common equity per share¹ | $ |
26.18 |
$ |
25.91 |
$ |
25.57 |
$ |
25.16 |
$ |
24.85 |
|||||||||||||||||
| Common shares outstanding | 10,621,136 |
10,588,136 |
10,588,136 |
10,588,136 |
10,588,136 |
||||||||||||||||||||||
| 1 Tangible Common Equity Ratio is defined as tangible common equity which is common equity less goodwill and other intangible assets divided by tangible assets which is defined as total assets less goodwill and other intangible assets. Tangible Common Equity Per Share is calculated by dividing tangible common equity by common shares outstanding. | |||||||||||||||||||||||||||
| FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12 | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | |||||||||||||||||||||||||||||||
| INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||||||||||||
| Loans Receivable¹ | $ |
1,559,686 |
$ |
25,786 |
6.56 |
% |
$ |
1,501,200 |
$ |
24,318 |
6.50 |
% |
$ |
1,482,057 |
$ |
23,778 |
6.51 |
% |
$ |
1,475,995 |
$ |
24,828 |
6.67 |
% |
$ |
1,463,183 |
$ |
24,653 |
6.68 |
% |
|||||||||||||||
| Investment securities ² | 58,803 |
647 |
4.37 |
% |
64,176 |
653 |
4.08 |
% |
65,507 |
657 |
4.07 |
% |
65,279 |
676 |
4.10 |
% |
66,623 |
707 |
4.21 |
% |
|||||||||||||||||||||||||
| Interest-earning deposits at the FRB and other banks | 308,634 |
2,902 |
3.73 |
% |
346,082 |
3,193 |
3.70 |
% |
366,481 |
3,343 |
3.70 |
% |
420,854 |
4,213 |
3.97 |
% |
254,301 |
2,826 |
4.41 |
% |
|||||||||||||||||||||||||
| Other earning assets | 11,086 |
182 |
6.51 |
% |
11,075 |
293 |
10.61 |
% |
11,016 |
434 |
15.98 |
% |
11,011 |
202 |
7.28 |
% |
11,011 |
201 |
7.24 |
% |
|||||||||||||||||||||||||
| Total interest-earning assets ² | 1,938,209 |
29,517 |
6.04 |
% |
1,922,533 |
28,457 |
5.94 |
% |
1,925,061 |
28,212 |
5.94 |
% |
1,973,139 |
29,919 |
6.02 |
% |
1,795,118 |
28,387 |
6.27 |
% |
|||||||||||||||||||||||||
| NONINTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 10,607 |
11,796 |
10,909 |
11,799 |
14,221 |
||||||||||||||||||||||||||||||||||||||||
| Other noninterest-earning assets | 36,051 |
42,660 |
44,918 |
40,927 |
40,578 |
||||||||||||||||||||||||||||||||||||||||
| Total noninterest-earning assets | 46,658 |
54,456 |
55,827 |
52,726 |
54,799 |
||||||||||||||||||||||||||||||||||||||||
| Less: Allowance for credit losses | (17,127 |
) |
(16,938 |
) |
(16,355 |
) |
(16,152 |
) |
(15,577 |
) |
|||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $ |
1,967,740 |
$ |
1,960,051 |
$ |
1,964,533 |
$ |
2,009,713 |
$ |
1,834,340 |
|||||||||||||||||||||||||||||||||||
| INTEREST-BEARING DEPOSITS | |||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ |
9,665 |
$ |
4 |
0.20 |
% |
$ |
9,636 |
$ |
5 |
0.20 |
% |
$ |
9,415 |
$ |
5 |
0.20 |
% |
$ |
9,432 |
$ |
4 |
0.20 |
% |
$ |
9,682 |
$ |
5 |
0.20 |
% |
|||||||||||||||
| Money market | 290,380 |
2,582 |
3.53 |
% |
280,759 |
2,460 |
3.51 |
% |
286,298 |
2,451 |
3.47 |
% |
324,316 |
2,990 |
3.66 |
% |
282,010 |
2,699 |
3.80 |
% |
|||||||||||||||||||||||||
| Savings | 99,391 |
771 |
3.08 |
% |
90,272 |
686 |
3.05 |
% |
87,429 |
653 |
3.03 |
% |
83,166 |
644 |
3.07 |
% |
84,339 |
653 |
3.07 |
% |
|||||||||||||||||||||||||
| Time deposits | 943,195 |
9,567 |
4.02 |
% |
971,648 |
9,885 |
4.08 |
% |
998,868 |
10,223 |
4.15 |
% |
998,575 |
10,573 |
4.20 |
% |
863,224 |
9,251 |
4.25 |
% |
|||||||||||||||||||||||||
| Total interest-bearing deposits | 1,342,631 |
12,924 |
3.82 |
% |
1,352,315 |
13,036 |
3.87 |
% |
1,382,010 |
13,332 |
3.91 |
% |
1,415,489 |
14,211 |
3.98 |
% |
1,239,255 |
12,608 |
4.04 |
% |
|||||||||||||||||||||||||
| Borrowings | 38 |
- |
- |
1 |
- |
- |
- |
- |
- |
2 |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,342,669 |
12,924 |
3.82 |
% |
1,352,316 |
13,036 |
3.87 |
% |
1,382,010 |
13,332 |
3.91 |
% |
1,415,491 |
14,211 |
3.98 |
% |
1,239,255 |
12,608 |
4.04 |
% |
|||||||||||||||||||||||||
| Noninterest-bearing deposits | 319,903 |
301,938 |
279,851 |
294,726 |
301,776 |
||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 26,386 |
31,484 |
31,922 |
32,412 |
29,249 |
||||||||||||||||||||||||||||||||||||||||
| Stockholders' equity | 278,782 |
274,313 |
270,750 |
267,084 |
264,060 |
||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,967,740 |
$ |
1,960,051 |
$ |
1,964,533 |
$ |
2,009,713 |
$ |
1,834,340 |
|||||||||||||||||||||||||||||||||||
| Net interest income² | $ |
16,593 |
$ |
15,421 |
$ |
14,880 |
$ |
15,708 |
$ |
15,779 |
|||||||||||||||||||||||||||||||||||
| Net interest spread | 2.22 |
% |
2.07 |
% |
2.03 |
% |
2.04 |
% |
2.23 |
% |
|||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 1.18 |
% |
1.15 |
% |
1.10 |
% |
1.12 |
% |
1.26 |
% |
|||||||||||||||||||||||||||||||||||
| Net interest margin² | 3.40 |
% |
3.22 |
% |
3.13 |
% |
3.16 |
% |
3.49 |
% |
|||||||||||||||||||||||||||||||||||
| Cost of deposits | $ |
1,662,534 |
$ |
12,924 |
3.08 |
% |
$ |
1,654,253 |
$ |
13,036 |
3.16 |
% |
$ |
1,661,861 |
$ |
13,332 |
3.25 |
% |
$ |
1,710,215 |
$ |
14,211 |
3.30 |
% |
$ |
1,541,031 |
$ |
12,608 |
3.25 |
% |
|||||||||||||||
| Cost of funds | $ |
1,662,572 |
$ |
12,924 |
3.08 |
% |
$ |
1,654,254 |
$ |
13,036 |
3.16 |
% |
$ |
1,661,861 |
$ |
13,332 |
3.25 |
% |
$ |
1,710,217 |
$ |
14,211 |
3.30 |
% |
$ |
1,541,031 |
$ |
12,608 |
3.25 |
% |
|||||||||||||||
| 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, 2026 | June 30, 2026 | March 31,2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||||||||||||
| Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||||||
| Contractual yield | $ |
25,018 |
6.36 |
% |
$ |
23,678 |
6.33 |
% |
$ |
23,193 |
6.35 |
% |
$ |
24,154 |
6.49 |
% |
$ |
24,171 |
6.55 |
% |
||||||||||||||||||
| SBA discount accretion | 821 |
0.21 |
% |
697 |
0.19 |
% |
636 |
0.17 |
% |
883 |
0.24 |
% |
728 |
0.20 |
% |
|||||||||||||||||||||||
| Prepayment penalties and late fees | 96 |
0.02 |
% |
33 |
0.01 |
% |
96 |
0.03 |
% |
50 |
0.01 |
% |
51 |
0.01 |
% |
|||||||||||||||||||||||
| Amortization of net deferred costs | (149 |
) |
(0.03 |
%) |
(90 |
) |
(0.03 |
%) |
(147 |
) |
(0.04 |
%) |
(259 |
) |
(0.07 |
%) |
(297 |
) |
(0.08 |
%) |
||||||||||||||||||
| As reported yield on loans | $ |
25,786 |
6.56 |
% |
$ |
24,318 |
6.50 |
% |
$ |
23,778 |
6.51 |
% |
$ |
24,828 |
6.67 |
% |
$ |
24,653 |
6.68 |
% |
||||||||||||||||||
| MARGIN ANALYSIS (Unaudited) - Table 14 | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Nine Months Ended | |||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||
| Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | ||||||||||||
| INTEREST-EARNING ASSETS | |||||||||||||||||
| Loans Receivable ¹ | $ |
1,514,599 |
$ |
73,882 |
6.52 |
% |
$ |
1,454,297 |
$ |
72,442 |
6.66 |
% |
|||||
| Investment securities ² | 62,804 |
1,957 |
4.17 |
% |
64,532 |
2,060 |
4.27 |
% |
|||||||||
| Interest-earning deposits at the FRB and other banks | 340,187 |
9,438 |
3.71 |
% |
248,031 |
8,238 |
4.44 |
% |
|||||||||
| Other earning assets | 11,060 |
909 |
10.99 |
% |
11,011 |
604 |
7.33 |
% |
|||||||||
| Total interest-earning assets ² | 1,928,650 |
86,186 |
5.97 |
% |
1,777,871 |
83,344 |
6.27 |
% |
|||||||||
| NONINTEREST-EARNING ASSETS | |||||||||||||||||
| Cash and due from banks | 11,103 |
12,606 |
|||||||||||||||
| Other noninterest-earning assets | 41,177 |
41,986 |
|||||||||||||||
| Total noninterest-earning assets | 52,280 |
54,592 |
|||||||||||||||
| Less: Allowance for credit losses | (16,810 |
) |
(15,349 |
) |
|||||||||||||
| TOTAL ASSETS | $ |
1,964,120 |
$ |
1,817,114 |
|||||||||||||
| INTEREST-BEARING DEPOSITS | |||||||||||||||||
| Interest-bearing demand | $ |
9,574 |
$ |
14 |
0.20 |
% |
$ |
9,753 |
$ |
15 |
0.20 |
% |
|||||
| Money market | 285,827 |
7,493 |
3.50 |
% |
270,358 |
7,794 |
3.85 |
% |
|||||||||
| Savings | 92,408 |
2,110 |
3.05 |
% |
83,861 |
1,924 |
3.07 |
% |
|||||||||
| Time deposits | 971,033 |
29,675 |
4.09 |
% |
847,115 |
27,741 |
4.38 |
% |
|||||||||
| Total interest-bearing deposits | 1,358,842 |
39,292 |
3.87 |
% |
1,211,087 |
37,474 |
4.14 |
% |
|||||||||
| Borrowings | 13 |
- |
0.00 |
% |
17,492 |
123 |
0.94 |
% |
|||||||||
| Total interest-bearing liabilities | 1,358,855 |
39,292 |
3.87 |
% |
1,228,579 |
37,597 |
4.09 |
% |
|||||||||
| Noninterest-bearing deposits | 300,710 |
298,962 |
|||||||||||||||
| Other liabilities | 29,910 |
28,821 |
|||||||||||||||
| Stockholders' equity | 274,645 |
260,752 |
|||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,964,120 |
$ |
1,817,114 |
|||||||||||||
| Net interest income² | $ |
46,894 |
$ |
45,747 |
|||||||||||||
| Net interest spread | 2.10 |
% |
2.18 |
% |
|||||||||||||
| Effect of noninterest-bearing sources | 1.15 |
% |
1.26 |
% |
|||||||||||||
| Net interest margin² | 3.25 |
% |
3.44 |
% |
|||||||||||||
| Cost of deposits | $ |
1,659,552 |
$ |
39,292 |
3.17 |
% |
$ |
1,510,049 |
$ |
37,474 |
3.32 |
% |
|||||
| Cost of funds | $ |
1,659,565 |
$ |
39,292 |
3.17 |
% |
$ |
1,527,541 |
$ |
37,597 |
3.29 |
% |
|||||
| 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, 2026 | September 30, 2025 | ||||||||||||||
| Amount | Yield | Amount | Yield | ||||||||||||
| Contractual yield | $ |
71,889 |
6.35 |
% |
$ |
70,768 |
6.51 |
% |
|||||||
| SBA discount accretion | 2,154 |
0.19 |
% |
2,097 |
0.19 |
% |
|||||||||
| Prepayment penalties and late fees | 225 |
0.02 |
% |
240 |
0.02 |
% |
|||||||||
| Amortization of net deferred costs | (386 |
) |
(0.04 |
%) |
(663 |
) |
(0.06 |
%) |
|||||||
| As reported yield on loans | $ |
73,882 |
6.52 |
% |
$ |
72,442 |
6.66 |
% |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20261022195703/en/
Kent Smith, EVP & CFO
(213) 296-5737
kent.smith@cbb-bank.com
Source: CBB Bancorp, Inc.
© Copyright Business Wire 2026