CBB Bancorp, Inc. Reports First Quarter 2025 Financial Results
CBB Bancorp, Inc. Reports First Quarter 2025 Financial Results
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 first quarter 2025, or $0.42 per diluted share compared to $5.7 million in the fourth quarter 2024, or $0.54 per diluted share.
OVERALL RESULTS
Net income for the first quarter 2025 decreased from the previous quarter primarily on lower net interest income, higher provision expense, and higher noninterest expenses.
The return on average assets for the first quarter 2025 was 0.99% compared to 1.27% for the fourth quarter 2024 and 1.32% for the first quarter 2024. The return on average equity for the first quarter 2025 was 7.01% compared to 8.98% for the fourth quarter 2024 and 9.57% for the first quarter 2024.
The net interest margin for the first quarter 2025 was 3.38% compared to 3.55% for the fourth quarter 2024 and 3.77% for the first quarter 2024. The efficiency ratio for the first quarter 2025 was 60.41% compared to 56.66% for the fourth quarter 2024 and 54.68% for the first quarter 2024.
Richard Koh, President and CEO, said, "I am honored to be the new President and Chief Executive Officer of CBB Bank and the CBB Bancorp and share our first quarter 2025 earnings results. Since I joined the Bank, I witnessed firsthand the dedication and hard work of our team.” He continued, “Our continued solid performance reflects the trust and support of all our valued stakeholders. We are committed to driving sustainable growth and innovation, ensuring we continue to deliver exceptional value to our customers. Together, we will navigate the challenges ahead and achieve our strategic goals in a safe and sound manner.”
INCOME STATEMENT
Net Interest Income
Net interest income for the first quarter 2025 was $14.8 million, a decrease of $825 thousand or 5.3%, quarter over quarter and a decrease of $985 thousand or 6.2%, compared to the first quarter 2024 due to moderate decrease in average yield on loans.
Net Interest Margin
The net interest margin for the first quarter 2025 was 3.38% compared to 3.55% for the fourth quarter 2024 and 3.77% for the first quarter 2024. The cost of funds for the first quarter 2025 was 3.34% compared to 3.45% for the fourth quarter 2024 and 3.48% for the first quarter 2024.
Provision for Credit Losses
Total provision for credit losses of $500 thousand was recorded for the first quarter 2025. This amount was comprised of on-balance sheet provision of $430 thousand and off-balance sheet provision of $70 thousand.
No provision for credit loss was recorded for the fourth quarter 2024. Provision for credit loss of a net $400 thousand was recorded for the first quarter 2024. This amount was comprised of provision for credit loss of $743 thousand offset by a $343 thousand reduction in provision for off-balance-sheet financial instruments.
Noninterest Income
Noninterest income for the first quarter 2025 was $2.1 million, a decrease of $94 thousand compared to $2.2 million for the fourth quarter 2024 and decreased by $445 thousand compared to $2.6 million for the first quarter 2024. The Bank realized $92 thousand loss on sale of OREO in the first quarter 2025.
Noninterest Expenses
Noninterest expenses for the first quarter 2025 were $10.2 million compared to $9.9 million for the fourth quarter 2024 and $10.0 million for the first quarter 2024. Noninterest expenses increased $293 thousand quarter over quarter on higher personnel, insurance, and professional fee expenses, offset by lower marketing and other expenses.
Please refer to the financial tables in this press release for additional information and trends.
Income Taxes
The Company’s effective tax rate for the first quarter 2025 was 28.3% compared to 27.9% for the fourth quarter 2024 and 28.4% for the first quarter 2024.
BALANCE SHEET
Investment Securities
Investment securities were $61.5 million at March 31, 2025, a decrease of $675 thousand or 1.1% from December 31, 2024, and an increase of $2.4 million or 4.0% from March 31, 2024.
Loans Receivable
Loans receivable, including loans held-for-sale, at March 31, 2025, was $1.45 billion, an increase of $12.6 million or 0.9% from December 31, 2024, and an increase of $58.0 million or 4.2% from March 31, 2024.
Allowance for Credit Losses and Asset Quality
The Allowance for Credit Losses (“ACL”) at March 31, 2025 was $14.9 million which was 1.18% of loans held-for-investment compared to $16.0 million or 1.29% of loans held-for-investment at December 31, 2024. At March 31, 2024, ACL was $16.0 million, or 1.34% of total loans held-for-investment.
Total nonperforming assets at March 31, 2025, were $11.7 million compared to $12.1 million at December 31, 2024, and $4.4 million at March 31, 2024. The ACL coverage to nonperforming assets was over 127% at March 31, 2025.
SBA Loans Held-for-Sale
Total SBA loans held-for-sale at March 31, 2025 were $194.5 million compared to $ 198.4 million at December 31, 2024 and $198.2 million at March 31, 2024.
The Bank sold $19.8 million in SBA loans with an average premium of 8.1% in the first quarter 2025 compared to the sale of $17.2 million with an average premium of 9.2% in the fourth quarter 2024. The Bank sold $28.2 million of SBA loans with an average premium of 6.8% in the first quarter 2024.
Deposits
Total deposits were $1.48 billion at March 31, 2025, down $3.4 million or 0.2% from December 31, 2024, but up $116.3 million or 8.5% from March 31, 2024.
Borrowings
The Bank maintains $50.0 million in Federal Home Loan Bank advances, and there was no change from the previous quarter.
Capital
Stockholders’ equity was $258.5 million at March 31, 2025, which increased $3.5 million or 1.4%, quarter over quarter. Tangible book value per share at March 31, 2025, was $24.18, an increase of $0.33, or 1.4%, quarter over quarter.
The following are the Company’s and the Bank’s regulatory capital ratios at March 31, 2025.
The Common Equity Tier 1 Risk-Based Capital Ratios at March 31, 2025 were 19.10% and 19.05% for the Company and the Bank, respectively. Total Risk-Based Capital Ratios were 20.23% and 20.18% for the Company and the Bank, respectively. Bank’s Leverage Ratios were 14.04% and 14.00% for the Company and the Bank, respectively. The Bank is considered “Well Capitalized” under the applicable regulatory capital rules.
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 March 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 Fort Lee, 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 1Q 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 | ||||||||||||||||||||||||||
| March 31, | December 31, | $ | % | March 31, | $ | % | ||||||||||||||||||||
|
2024 |
|
|
2024 |
|
Change | Change |
|
2024 |
|
Change | Change | ||||||||||||||
| Interest income | $ |
27,467 |
|
$ |
28,769 |
|
$ |
(1,302 |
) |
(4.5 |
%) |
$ |
28,463 |
|
$ |
(996 |
) |
(3.5 |
%) |
|||||||
| Interest expense |
|
12,644 |
|
|
13,121 |
|
|
(477 |
) |
(3.6 |
%) |
|
12,655 |
|
|
(11 |
) |
(0.1 |
%) |
|||||||
| Net interest income |
|
14,823 |
|
|
15,648 |
|
|
(825 |
) |
(5.3 |
%) |
|
15,808 |
|
|
(985 |
) |
(6.2 |
%) |
|||||||
| Provision for credit losses |
|
500 |
|
|
- |
|
|
500 |
|
100.0 |
% |
|
400 |
|
|
100 |
|
25.0 |
% |
|||||||
| Net interest income after provision for credit losses |
|
14,323 |
|
|
15,648 |
|
|
(1,325 |
) |
(8.5 |
%) |
|
15,408 |
|
|
(1,085 |
) |
(7.0 |
%) |
|||||||
| Gain on sale of loans |
|
1,021 |
|
|
1,013 |
|
|
8 |
|
0.8 |
% |
|
1,489 |
|
|
(468 |
) |
418.2 |
% |
|||||||
| Gain (loss) on sale of OREO |
|
(92 |
) |
|
- |
|
|
(92 |
) |
(100.0 |
%) |
|
- |
|
|
(92 |
) |
(100.0 |
%) |
|||||||
| SBA servicing fee income, net |
|
691 |
|
|
654 |
|
|
37 |
|
5.7 |
% |
|
643 |
|
|
48 |
|
7.5 |
% |
|||||||
| Recovery on impaired servicing liability |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
|||||||
| Service charges and other income |
|
496 |
|
|
543 |
|
|
(47 |
) |
(8.7 |
%) |
|
429 |
|
|
67 |
|
15.6 |
% |
|||||||
| Noninterest income |
|
2,116 |
|
|
2,210 |
|
|
(94 |
) |
(4.3 |
%) |
|
2,561 |
|
|
(445 |
) |
(17.4 |
%) |
|||||||
| Salaries and employee benefits |
|
5,848 |
|
|
5,635 |
|
|
213 |
|
3.8 |
% |
|
6,024 |
|
|
(176 |
) |
(2.9 |
%) |
|||||||
| Occupancy and equipment |
|
1,314 |
|
|
1,280 |
|
|
34 |
|
2.7 |
% |
|
1,122 |
|
|
192 |
|
17.1 |
% |
|||||||
| Marketing expense |
|
215 |
|
|
285 |
|
|
(70 |
) |
(24.6 |
%) |
|
402 |
|
|
(187 |
) |
(46.5 |
%) |
|||||||
| Professional expense |
|
430 |
|
|
329 |
|
|
101 |
|
30.7 |
% |
|
412 |
|
|
18 |
|
4.4 |
% |
|||||||
| Other expenses |
|
2,426 |
|
|
2,411 |
|
|
15 |
|
0.6 |
% |
|
2,084 |
|
|
342 |
|
16.4 |
% |
|||||||
| Noninterest expense |
|
10,233 |
|
|
9,940 |
|
|
293 |
|
2.9 |
% |
|
10,044 |
|
|
189 |
|
1.9 |
% |
|||||||
| Income before income tax provision |
|
6,206 |
|
|
7,918 |
|
|
(1,712 |
) |
(21.6 |
%) |
|
7,925 |
|
|
(1,719 |
) |
(21.7 |
%) |
|||||||
| Income tax provision |
|
1,753 |
|
|
2,211 |
|
|
(458 |
) |
(20.7 |
%) |
|
2,253 |
|
|
(500 |
) |
(22.2 |
%) |
|||||||
| Net income | $ |
4,453 |
|
$ |
5,707 |
|
$ |
(1,254 |
) |
(22.0 |
%) |
$ |
5,672 |
|
$ |
(1,219 |
) |
(21.5 |
%) |
|||||||
| Effective tax rate |
|
28.25 |
% |
|
27.92 |
% |
|
0.32 |
% |
1.16 |
% |
|
28.43 |
% |
|
-0.18 |
% |
-0.64 |
% |
|||||||
| Outstanding number of shares |
|
10,588,136 |
|
|
10,588,136 |
|
|
- |
|
- |
|
|
10,588,136 |
|
|
- |
|
- |
|
|||||||
| Weighted average shares for basic EPS |
|
10,588,136 |
|
|
10,588,136 |
|
|
- |
|
- |
|
|
10,588,136 |
|
|
- |
|
- |
|
|||||||
| Weighted average shares for diluted EPS |
|
10,605,812 |
|
|
10,598,476 |
|
|
7,336 |
|
0.1 |
% |
|
10,588,688 |
|
|
17,124 |
|
0.2 |
% |
|||||||
| Basic EPS | $ |
0.42 |
|
$ |
0.54 |
|
$ |
(0.12 |
) |
(22.2 |
%) |
$ |
0.54 |
|
$ |
(0.12 |
) |
(22.2 |
%) |
|||||||
| Diluted EPS | $ |
0.42 |
|
$ |
0.54 |
|
$ |
(0.12 |
) |
(22.2 |
%) |
$ |
0.54 |
|
$ |
(0.12 |
) |
(22.2 |
%) |
|||||||
| Return on average assets |
|
0.99 |
% |
|
1.27 |
% |
|
(0.28 |
%) |
(22.1 |
%) |
|
1.32 |
% |
|
(0.33 |
%) |
(25.0 |
%) |
|||||||
| Return on average equity |
|
7.01 |
% |
|
8.98 |
% |
|
(1.97 |
%) |
(21.9 |
%) |
|
9.57 |
% |
|
(2.56 |
%) |
(26.8 |
%) |
|||||||
| Efficiency ratio¹ |
|
60.41 |
% |
|
55.66 |
% |
|
4.75 |
% |
8.5 |
% |
|
54.68 |
% |
|
5.73 |
% |
10.5 |
% |
|||||||
| Yield on interest-earning assets² |
|
6.25 |
% |
|
6.52 |
% |
|
(0.27 |
%) |
(4.1 |
%) |
|
6.77 |
% |
|
(0.52 |
%) |
(7.7 |
%) |
|||||||
| Cost of funds |
|
3.34 |
% |
|
3.45 |
% |
|
(0.11 |
%) |
(3.2 |
%) |
|
3.48 |
% |
|
(0.14 |
%) |
(4.0 |
%) |
|||||||
| Net interest margin² |
|
3.38 |
% |
|
3.55 |
% |
|
(0.17 |
%) |
(4.8 |
%) |
|
3.77 |
% |
|
(0.39 |
%) |
(10.3 |
%) |
|||||||
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) | ||||||||||||||||||||||||
| March 31, | December 31, | $ | % | March 31, | $ | % | ||||||||||||||||||
|
2025 |
|
|
2024 |
|
Change | Change |
|
2024 |
|
Change | Change | ||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Cash and due from banks | $ |
12,716 |
|
$ |
10,336 |
|
$ |
2,380 |
|
23.0 |
% |
$ |
11,612 |
|
$ |
1,104 |
|
9.5 |
% |
|||||
| Interest-earning deposits at the FRB and other banks |
|
249,535 |
|
|
266,826 |
|
|
(17,291 |
) |
(6.5 |
%) |
|
181,366 |
|
|
68,169 |
|
37.6 |
% |
|||||
| Investment securities¹ |
|
61,521 |
|
|
62,196 |
|
|
(675 |
) |
(1.1 |
%) |
|
59,143 |
|
|
2,378 |
|
4.0 |
% |
|||||
| Loans held-for-sale |
|
194,542 |
|
|
198,448 |
|
|
(3,906 |
) |
(2.0 |
%) |
|
198,167 |
|
|
(3,625 |
) |
(1.8 |
%) |
|||||
| Loans held-for-investment |
|
1,256,063 |
|
|
1,239,564 |
|
|
16,499 |
|
1.3 |
% |
|
1,194,439 |
|
|
61,624 |
|
5.2 |
% |
|||||
| Less: Allowance for credit losses ("ACL") |
|
(14,850 |
) |
|
(15,959 |
) |
|
1,109 |
|
6.9 |
% |
|
(16,048 |
) |
|
1,198 |
|
7.5 |
% |
|||||
Loans held-for-investment, net |
|
1,241,213 |
|
|
1,223,605 |
|
|
17,608 |
|
1.4 |
% |
|
1,178,391 |
|
|
62,822 |
|
5.3 |
% |
|||||
Other real estate owned ("OREO") |
|
3,130 |
|
|
521 |
|
|
2,609 |
|
NE |
|
- |
|
|
3,130 |
|
100.0 |
% |
||||||
| Restricted stock investments |
|
11,011 |
|
|
11,011 |
|
|
- |
|
- |
|
|
11,011 |
|
|
- |
|
- |
|
|||||
| Servicing assets |
|
6,708 |
|
|
6,909 |
|
|
(201 |
) |
(2.9 |
%) |
|
7,560 |
|
|
(852 |
) |
(11.3 |
%) |
|||||
| Goodwill |
|
2,185 |
|
|
2,185 |
|
|
- |
|
- |
|
|
2,185 |
|
|
- |
|
- |
|
|||||
| Intangible assets |
|
205 |
|
|
214 |
|
|
(9 |
) |
(4.2 |
%) |
|
245 |
|
|
(40 |
) |
(16.3 |
%) |
|||||
| Other assets |
|
31,304 |
|
|
33,384 |
|
|
(2,080 |
) |
(6.2 |
%) |
|
23,581 |
|
|
7,723 |
|
32.8 |
% |
|||||
| Total assets | $ |
1,814,070 |
|
$ |
1,815,635 |
|
$ |
(1,565 |
) |
(0.1 |
%) |
$ |
1,673,261 |
|
$ |
140,809 |
|
8.4 |
% |
|||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
| Noninterest-bearing | $ |
295,857 |
|
$ |
304,005 |
|
$ |
(8,148 |
) |
(2.7 |
%) |
$ |
286,766 |
|
$ |
9,091 |
|
3.2 |
% |
|||||
| Interest-bearing |
|
1,181,362 |
|
|
1,176,567 |
|
|
4,795 |
|
0.4 |
% |
|
1,074,198 |
|
|
107,164 |
|
10.0 |
% |
|||||
| Total deposits |
|
1,477,219 |
|
|
1,480,572 |
|
|
(3,353 |
) |
(0.2 |
%) |
|
1,360,964 |
|
|
116,255 |
|
8.5 |
% |
|||||
| FHLB advances and other borrowing |
|
50,000 |
|
|
50,000 |
|
|
- |
|
- |
|
|
50,000 |
|
|
- |
|
- |
|
|||||
| Other liabilities |
|
28,397 |
|
|
30,096 |
|
|
(1,699 |
) |
(5.6 |
%) |
|
21,727 |
|
|
6,670 |
|
30.7 |
% |
|||||
| Total liabilities |
|
1,555,616 |
|
|
1,560,668 |
|
|
(5,052 |
) |
(0.3 |
%) |
|
1,432,691 |
|
|
122,925 |
|
8.6 |
% |
|||||
| Stockholders' Equity |
|
258,454 |
|
|
254,967 |
|
|
3,487 |
|
1.4 |
% |
|
240,570 |
|
|
17,884 |
|
7.4 |
% |
|||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,814,070 |
|
$ |
1,815,635 |
|
$ |
(1,565 |
) |
(0.1 |
%) |
$ |
1,673,261 |
|
$ |
140,809 |
|
8.4 |
% |
|||||
| CAPITAL RATIOS | ||||||||||||||||||||||||
| Leverage ratio | ||||||||||||||||||||||||
| Company |
|
14.04 |
% |
|
14.12 |
% |
|
(0.07 |
%) |
(0.5 |
%) |
|
13.85 |
% |
|
0.19 |
% |
1.4 |
% |
|||||
| Bank |
|
14.00 |
% |
|
14.07 |
% |
|
(0.07 |
%) |
(0.5 |
%) |
|
13.84 |
% |
|
0.16 |
% |
1.2 |
% |
|||||
| Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||
| Company |
|
19.10 |
% |
|
19.02 |
% |
|
0.09 |
% |
0.5 |
% |
|
18.67 |
% |
|
0.43 |
% |
2.3 |
% |
|||||
| Bank |
|
19.05 |
% |
|
18.95 |
% |
|
- |
|
- |
|
|
18.65 |
% |
|
0.39 |
% |
2.1 |
% |
|||||
| Tier 1 risk-based capital ratio | ||||||||||||||||||||||||
| Company |
|
19.10 |
% |
|
19.02 |
% |
|
0.09 |
% |
0.5 |
% |
|
18.67 |
% |
|
0.43 |
% |
2.3 |
% |
|||||
| Bank |
|
19.05 |
% |
|
18.95 |
% |
|
- |
|
- |
|
|
18.65 |
% |
|
0.39 |
% |
2.1 |
% |
|||||
| Total risk-based capital ratio | ||||||||||||||||||||||||
| Company |
|
20.23 |
% |
|
20.23 |
% |
|
0.00 |
% |
0.0 |
% |
|
19.92 |
% |
|
0.31 |
% |
1.5 |
% |
|||||
| Bank |
|
20.18 |
% |
|
20.16 |
% |
|
0.01 |
% |
0.1 |
% |
|
19.91 |
% |
|
0.27 |
% |
1.4 |
% |
|||||
| Tangible book value per share | $ |
24.18 |
|
$ |
23.85 |
|
$ |
0.33 |
|
1.4 |
% |
$ |
22.49 |
|
$ |
1.69 |
|
7.5 |
% |
|||||
| Loans Held for Investments-to-Deposit ("LHFITD") ratio |
|
85.03 |
% |
|
83.72 |
% |
|
1.31 |
% |
1.6 |
% |
|
87.76 |
% |
|
(2.73 |
%) |
(3.1 |
%) |
|||||
| Net Loan-to-Deposit ("LTD") ratio |
|
97.19 |
% |
|
96.05 |
% |
|
1.14 |
% |
1.2 |
% |
|
101.15 |
% |
|
(3.96 |
%) |
(3.9 |
%) |
|||||
| Nonperforming assets | $ |
11,675 |
|
$ |
12,051 |
|
$ |
(376 |
) |
(3.1 |
%) |
$ |
4,447 |
|
$ |
7,228 |
|
162.5 |
% |
|||||
| Nonperforming assets as a % of loans held-for-investment |
|
0.93 |
% |
|
0.97 |
% |
|
(0.04 |
%) |
(4.1 |
%) |
|
0.37 |
% |
|
0.56 |
% |
151.4 |
% |
|||||
| ACL as a % of loans held-for-investment |
|
1.18 |
% |
|
1.29 |
% |
|
(0.11 |
%) |
(8.53 |
%) |
|
1.34 |
% |
|
(0.16 |
%) |
(11.9 |
%) |
|||||
| ¹ Includes AFS and HTM | ||||||||||||||||||||||||
FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3 |
||||||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
||||||
| Interest income | $ |
27,467 |
|
$ |
28,769 |
|
$ |
28,380 |
|
$ |
27,755 |
|
$ |
28,463 |
|
|||||
| Interest expense |
|
12,644 |
|
|
13,121 |
|
|
12,904 |
|
|
12,391 |
|
|
12,655 |
|
|||||
| Net interest income |
|
14,823 |
|
|
15,648 |
|
|
15,476 |
|
|
15,364 |
|
|
15,808 |
|
|||||
| Provision for credit losses |
|
500 |
|
|
- |
|
|
(100 |
) |
|
200 |
|
|
400 |
|
|||||
| Net interest income after provision for credit losses |
|
14,323 |
|
|
15,648 |
|
|
15,576 |
|
|
15,164 |
|
|
15,408 |
|
|||||
| Gain on sale of loans |
|
1,021 |
|
|
1,013 |
|
|
991 |
|
|
1,064 |
|
|
1,489 |
|
|||||
| Gain (loss) on sale of OREO |
|
(92 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(1 |
) |
|||||
| SBA servicing fee income, net |
|
691 |
|
|
654 |
|
|
760 |
|
|
768 |
|
|
633 |
|
|||||
| Recovery on impaired servicing liability |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
10 |
|
|||||
| Service charges and other income |
|
496 |
|
|
543 |
|
|
465 |
|
|
503 |
|
|
430 |
|
|||||
| Noninterest income |
|
2,116 |
|
|
2,210 |
|
|
2,216 |
|
|
2,335 |
|
|
2,561 |
|
|||||
| Salaries and employee benefits |
|
5,848 |
|
|
5,635 |
|
|
5,884 |
|
|
5,927 |
|
|
6,024 |
|
|||||
| Occupancy and equipment |
|
1,314 |
|
|
1,280 |
|
|
1,149 |
|
|
1,114 |
|
|
1,122 |
|
|||||
| Marketing expense |
|
215 |
|
|
285 |
|
|
423 |
|
|
403 |
|
|
402 |
|
|||||
| Professional expense |
|
430 |
|
|
329 |
|
|
456 |
|
|
440 |
|
|
412 |
|
|||||
| Other expenses |
|
2,426 |
|
|
2,411 |
|
|
2,104 |
|
|
1,972 |
|
|
2,084 |
|
|||||
| Noninterest expense |
|
10,233 |
|
|
9,940 |
|
|
10,016 |
|
|
9,856 |
|
|
10,044 |
|
|||||
| Income before income tax expense |
|
6,206 |
|
|
7,918 |
|
|
7,776 |
|
|
7,643 |
|
|
7,925 |
|
|||||
| Income tax expense |
|
1,753 |
|
|
2,211 |
|
|
2,207 |
|
|
2,163 |
|
|
2,253 |
|
|||||
| Net income | $ |
4,453 |
|
$ |
5,707 |
|
$ |
5,569 |
|
$ |
5,480 |
|
$ |
5,672 |
|
|||||
| Effective tax rate |
|
28.3 |
% |
|
27.9 |
% |
|
28.4 |
% |
|
28.3 |
% |
|
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 |
|
10,605,812 |
|
|
10,598,476 |
|
|
10,596,039 |
|
|
10,588,136 |
|
|
10,588,688 |
|
|||||
| Basic EPS | $ |
0.42 |
|
$ |
0.54 |
|
$ |
0.53 |
|
$ |
0.51 |
|
$ |
0.54 |
|
|||||
| Diluted EPS | $ |
0.42 |
|
$ |
0.54 |
|
$ |
0.53 |
|
$ |
0.51 |
|
$ |
0.54 |
|
|||||
| FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| At or for the Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
||||||
| Salaries and benefits | $ |
5,848 |
|
$ |
5,635 |
|
$ |
5,884 |
|
$ |
5,927 |
|
$ |
6,024 |
|
|||||
| FTE at the end of period |
|
166 |
|
|
168 |
|
|
178 |
|
|
172 |
|
|
168 |
|
|||||
| Average FTE during the period |
|
169 |
|
|
166 |
|
|
173 |
|
|
171 |
|
|
169 |
|
|||||
| Salaries and benefits/average FTE¹ | $ |
141 |
|
$ |
135 |
|
$ |
135 |
|
$ |
139 |
|
$ |
143 |
|
|||||
| Salaries and benefits/average assets¹ |
|
1.30 |
% |
|
1.25 |
% |
|
1.38 |
% |
|
1.42 |
% |
|
1.41 |
% |
|||||
| Noninterest expense/average assets¹ |
|
2.27 |
% |
|
2.21 |
% |
|
2.35 |
% |
|
2.36 |
% |
|
2.35 |
% |
|||||
| 1 Annualized | ||||||||||||||||||||
| FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ |
12,716 |
|
$ |
10,336 |
|
$ |
14,892 |
|
$ |
11,667 |
|
$ |
11,612 |
|
|||||
| Interest-earning deposits at the FRB and other banks |
|
249,535 |
|
|
266,826 |
|
|
241,094 |
|
|
101,415 |
|
|
181,366 |
|
|||||
| Investment securities |
|
61,521 |
|
|
62,196 |
|
|
63,208 |
|
|
73,051 |
|
|
59,143 |
|
|||||
| Loans held-for-sale |
|
194,542 |
|
|
198,448 |
|
|
198,021 |
|
|
209,144 |
|
|
198,167 |
|
|||||
| Loans held-for-investment |
|
1,256,063 |
|
|
1,239,564 |
|
|
1,222,865 |
|
|
1,228,496 |
|
|
1,194,439 |
|
|||||
| Less: Allowance for credit losses |
|
(14,850 |
) |
|
(15,959 |
) |
|
(15,948 |
) |
|
(16,042 |
) |
|
(16,048 |
) |
|||||
| Loans held-for-investment, net |
|
1,241,213 |
|
|
1,223,605 |
|
|
1,206,917 |
|
|
1,212,454 |
|
|
1,178,391 |
|
|||||
| Other real estate owned |
|
3,130 |
|
|
521 |
|
|
521 |
|
|
- |
|
|
- |
|
|||||
| Restricted stock investments |
|
11,011 |
|
|
11,011 |
|
|
11,011 |
|
|
11,011 |
|
|
11,011 |
|
|||||
| Servicing assets |
|
6,708 |
|
|
6,909 |
|
|
7,192 |
|
|
7,404 |
|
|
7,560 |
|
|||||
| Goodwill |
|
2,185 |
|
|
2,185 |
|
|
2,185 |
|
|
2,185 |
|
|
2,185 |
|
|||||
| Intangible assets |
|
205 |
|
|
214 |
|
|
224 |
|
|
235 |
|
|
245 |
|
|||||
| Other assets |
|
31,304 |
|
|
33,384 |
|
|
25,284 |
|
|
26,343 |
|
|
23,581 |
|
|||||
| Total assets | $ |
1,814,070 |
|
$ |
1,815,635 |
|
$ |
1,770,549 |
|
$ |
1,654,909 |
|
$ |
1,673,261 |
|
|||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Noninterest-bearing | $ |
295,857 |
|
$ |
304,005 |
|
$ |
318,807 |
|
$ |
281,243 |
|
$ |
286,766 |
|
|||||
| Interest-bearing |
|
1,181,362 |
|
|
1,176,567 |
|
|
1,128,784 |
|
|
1,059,146 |
|
|
1,074,198 |
|
|||||
| Total deposits |
|
1,477,219 |
|
|
1,480,572 |
|
|
1,447,591 |
|
|
1,340,389 |
|
|
1,360,964 |
|
|||||
| FHLB advances |
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|
50,000 |
|
|||||
| Other liabilities |
|
28,397 |
|
|
30,096 |
|
|
22,415 |
|
|
19,260 |
|
|
21,727 |
|
|||||
| Total liabilities |
|
1,555,616 |
|
|
1,560,668 |
|
|
1,520,006 |
|
|
1,409,649 |
|
|
1,432,691 |
|
|||||
| Stockholders' Equity |
|
258,454 |
|
|
254,967 |
|
|
250,543 |
|
|
245,260 |
|
|
240,570 |
|
|||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,814,070 |
|
$ |
1,815,635 |
|
$ |
1,770,549 |
|
$ |
1,654,909 |
|
$ |
1,673,261 |
|
|||||
| FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | ||||||||||||||||
| Construction | $ |
31,913 |
2.5% |
$ |
27,276 |
2.2% |
$ |
29,789 |
2.4% |
$ |
33,918 |
2.8% |
$ |
37,216 |
3.1% |
||||||||||
| Commercial real estate |
|
1,061,873 |
84.5% |
|
1,048,945 |
84.6% |
|
1,029,768 |
84.2% |
|
1,035,425 |
84.3% |
|
1,005,765 |
84.2% |
||||||||||
| Commercial and industrial |
|
112,369 |
9.0% |
|
114,435 |
9.2% |
|
112,588 |
9.2% |
|
108,742 |
8.9% |
|
101,784 |
8.5% |
||||||||||
| Home mortgage |
|
41,944 |
3.3% |
|
43,676 |
3.5% |
|
45,673 |
3.7% |
|
44,987 |
3.7% |
|
44,389 |
3.7% |
||||||||||
| Consumer |
|
3,477 |
0.3% |
|
552 |
0.0% |
|
537 |
0.0% |
|
782 |
0.1% |
|
668 |
0.1% |
||||||||||
| Gross loans held-for-investment |
|
1,251,576 |
99.6% |
|
1,234,884 |
99.6% |
|
1,218,355 |
99.6% |
|
1,223,854 |
99.6% |
|
1,189,822 |
99.6% |
||||||||||
| Deferred loan fees/costs, net |
|
4,487 |
0.4% |
|
4,680 |
0.4% |
|
4,510 |
0.4% |
|
4,642 |
0.4% |
|
4,617 |
0.4% |
||||||||||
| Loans held-for-investment | $ |
1,256,063 |
100.0% |
$ |
1,239,564 |
100.0% |
$ |
1,222,865 |
100.0% |
$ |
1,228,496 |
100.0% |
$ |
1,194,439 |
100.0% |
||||||||||
| Loans held-for-sale | $ |
194,542 |
$ |
198,448 |
$ |
198,021 |
$ |
209,144 |
$ |
198,167 |
|||||||||||||||
| Total loans receivable | $ |
1,450,605 |
$ |
1,438,012 |
$ |
1,420,886 |
$ |
1,437,640 |
$ |
1,392,606 |
|||||||||||||||
| FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
||||||
| SBA loans held-for-sale at beginning of the quarter/year | $ |
198,448 |
|
$ |
198,021 |
|
$ |
209,144 |
|
$ |
198,167 |
|
$ |
218,258 |
|
|||||
| SBA loans originated/transferred from/to held-for-investment during the quarter/year |
|
23,778 |
|
|
22,172 |
|
|
13,169 |
|
|
34,366 |
|
|
14,589 |
|
|||||
| SBA loans sold during the quarter/year |
|
(19,753 |
) |
|
(17,215 |
) |
|
(20,152 |
) |
|
(19,508 |
) |
|
(28,164 |
) |
|||||
| SBA loans principal paydown/payoff, net of advance |
|
(7,931 |
) |
|
(4,530 |
) |
|
(4,140 |
) |
|
(3,881 |
) |
|
(6,516 |
) |
|||||
| SBA loans held-for-sale at end of the quarter/year | $ |
194,542 |
|
$ |
198,448 |
|
$ |
198,021 |
|
$ |
209,144 |
|
$ |
198,167 |
|
|||||
| Gain on sale of SBA loans | $ |
1,021 |
|
$ |
1,013 |
|
$ |
991 |
|
$ |
1,064 |
|
$ |
1,489 |
|
|||||
| Premium on sale (weighted average) |
|
8.1 |
% |
|
9.2 |
% |
|
7.5 |
% |
|
8.3 |
% |
|
6.8 |
% |
|||||
| SBA loan production | $ |
32,034 |
|
$ |
39,741 |
|
$ |
23,227 |
|
$ |
45,126 |
|
$ |
18,089 |
|
|||||
| FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
||||||
| SBA servicing assets @ beginning of the quarter/year | $ |
6,909 |
|
$ |
7,192 |
|
$ |
7,404 |
|
$ |
7,560 |
|
$ |
7,673 |
|
|||||
| Newly added SBA servicing assets from SBA loans sold |
|
361 |
|
|
355 |
|
|
377 |
|
|
395 |
|
|
555 |
|
|||||
| Regular quarterly/annual servicing assets amortization |
|
(305 |
) |
|
(315 |
) |
|
(332 |
) |
|
(335 |
) |
|
(332 |
) |
|||||
| SBA servicing assets amortized from SBA loans paid off/charged off |
|
(257 |
) |
|
(323 |
) |
|
(257 |
) |
|
(216 |
) |
|
(336 |
) |
|||||
| Subtotal before impairment |
|
6,708 |
|
|
6,909 |
|
|
7,192 |
|
|
7,404 |
|
|
7,560 |
|
|||||
| Reversal of valuation allowance on servicing assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| SBA servicing assets @ the end of the quarter/year | $ |
6,708 |
|
$ |
6,909 |
|
$ |
7,192 |
|
$ |
7,404 |
|
$ |
7,560 |
|
|||||
| FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | ||||||||||||||||
| Noninterest-bearing demand | $ |
295,857 |
20.0% |
$ |
304,005 |
20.5% |
$ |
318,807 |
22.0% |
$ |
281,243 |
21.0% |
$ |
286,766 |
21.1% |
||||||||||
| Interest-bearing demand |
|
6,588 |
0.5% |
|
7,541 |
0.5% |
|
6,590 |
0.5% |
|
7,901 |
0.6% |
|
6,709 |
0.5% |
||||||||||
| NOW & MMDA |
|
257,474 |
17.4% |
|
269,475 |
18.2% |
|
246,157 |
17.0% |
|
240,951 |
18.0% |
|
229,642 |
16.9% |
||||||||||
| Savings |
|
81,425 |
5.5% |
|
84,727 |
5.7% |
|
78,356 |
5.4% |
|
80,360 |
6.0% |
|
84,999 |
6.2% |
||||||||||
| TCDs of $250K and under |
|
315,312 |
21.3% |
|
324,041 |
21.9% |
|
310,134 |
21.4% |
|
295,109 |
22.0% |
|
299,944 |
22.0% |
||||||||||
| TCDs of $250K over |
|
377,486 |
25.6% |
|
345,045 |
23.3% |
|
342,301 |
23.7% |
|
314,119 |
23.4% |
|
339,482 |
25.0% |
||||||||||
| Wholesale deposits |
|
143,077 |
9.7% |
|
145,738 |
9.9% |
|
145,246 |
10.0% |
|
120,706 |
9.0% |
|
113,422 |
8.3% |
||||||||||
| Total Deposits | $ |
1,477,219 |
100.0% |
$ |
1,480,572 |
100.0% |
$ |
1,447,591 |
100.0% |
$ |
1,340,389 |
100.0% |
$ |
1,360,964 |
100.0% |
||||||||||
| Recap: | |||||||||||||||||||||||||
| Noninterest-bearing demand | $ |
295,857 |
20.0% |
$ |
304,005 |
20.5% |
$ |
318,807 |
22.0% |
$ |
281,243 |
21.0% |
$ |
286,766 |
21.1% |
||||||||||
| Interest-bearing demand |
|
6,588 |
0.5% |
|
7,541 |
0.5% |
|
6,590 |
0.5% |
|
7,901 |
0.6% |
|
6,709 |
0.5% |
||||||||||
| NOW & MMDA |
|
257,474 |
17.4% |
|
269,475 |
18.2% |
|
246,157 |
17.0% |
|
240,951 |
18.0% |
|
229,642 |
16.9% |
||||||||||
| Savings |
|
81,425 |
5.5% |
|
84,727 |
5.7% |
|
78,356 |
5.4% |
|
80,360 |
6.0% |
|
84,999 |
6.2% |
||||||||||
| TCDs of $250K and under |
|
315,312 |
21.3% |
|
324,041 |
21.9% |
|
310,134 |
21.4% |
|
295,109 |
22.0% |
|
299,944 |
22.0% |
||||||||||
| Core Deposits |
|
956,656 |
64.7% |
|
989,789 |
66.8% |
|
960,044 |
66.3% |
|
881,952 |
67.6% |
|
908,060 |
66.7% |
||||||||||
| TCDs of $250K over |
|
377,486 |
25.6% |
|
345,045 |
23.3% |
|
342,301 |
23.7% |
|
314,119 |
23.4% |
|
339,482 |
25.0% |
||||||||||
| Nonreciprocal ICS MMDA |
|
- |
- |
|
- |
- |
|
- |
- |
|
- |
- |
|
- |
- |
||||||||||
| Wholesale deposits |
|
143,077 |
9.7% |
|
145,738 |
9.9% |
|
145,246 |
10.0% |
|
120,706 |
9.0% |
|
113,422 |
8.3% |
||||||||||
| Noncore Deposits |
|
520,563 |
35.3% |
|
490,783 |
33.1% |
|
487,547 |
33.7% |
|
434,825 |
32.4% |
|
452,904 |
33.3% |
||||||||||
| Total Deposits | $ |
1,477,219 |
100.0% |
$ |
1,480,572 |
100.0% |
$ |
1,447,591 |
100.0% |
$ |
1,340,389 |
100.0% |
$ |
1,360,964 |
100.0% |
||||||||||
| FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | ||||||||||||||||
|
2025 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
||||||
| Allowance for Credit Losses | ||||||||||||||||||||
| Balance at beginning of period | $ |
15,959 |
|
$ |
15,948 |
|
$ |
16,042 |
|
$ |
16,048 |
|
$ |
15,291 |
|
|||||
| CECL transition provision |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Provision for credit losses |
|
430 |
|
|
- |
|
|
- |
|
|
200 |
|
|
743 |
|
|||||
| Charge-offs |
|
(1,567 |
) |
|
- |
|
|
(108 |
) |
|
(257 |
) |
|
- |
|
|||||
| Recoveries |
|
28 |
|
|
11 |
|
|
14 |
|
|
51 |
|
|
14 |
|
|||||
| Balance at the end of period | $ |
14,850 |
|
$ |
15,959 |
|
$ |
15,948 |
|
$ |
16,042 |
|
$ |
16,048 |
|
|||||
| Nonperforming Assets:¹ | ||||||||||||||||||||
| Over 90 days still accruing | $ |
- |
|
$ |
1,819 |
|
$ |
994 |
|
$ |
- |
|
$ |
1,605 |
|
|||||
| Nonaccrual loans |
|
8,545 |
|
|
9,711 |
|
|
7,043 |
|
|
5,797 |
|
|
2,842 |
|
|||||
| Total nonperforming loans |
|
8,545 |
|
|
11,530 |
|
|
8,037 |
|
|
5,797 |
|
|
4,447 |
|
|||||
| Other real estate owned | $ |
3,130 |
|
|
521 |
|
|
521 |
|
|
- |
|
|
- |
|
|||||
| Total nonperforming assets | $ |
11,675 |
|
$ |
12,051 |
|
$ |
8,558 |
|
$ |
5,797 |
|
$ |
4,447 |
|
|||||
| Classified Assets:¹ | ||||||||||||||||||||
| Substandard | $ |
20,827 |
|
$ |
22,077 |
|
$ |
15,980 |
|
$ |
12,762 |
|
$ |
11,912 |
|
|||||
| Doubtful |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||||
| Loss | ||||||||||||||||||||
| Total classified loans | $ |
20,827 |
|
$ |
22,077 |
|
$ |
15,980 |
|
$ |
12,762 |
|
$ |
11,912 |
|
|||||
| Other real estate owned | $ |
3,130 |
|
|
521 |
|
|
521 |
|
|
- |
|
|
- |
|
|||||
| Total classified assets | $ |
23,957 |
|
$ |
22,598 |
|
$ |
16,501 |
|
$ |
12,762 |
|
$ |
11,912 |
|
|||||
| Performing modified loans:¹ | $ |
635 |
|
$ |
649 |
|
$ |
452 |
|
$ |
464 |
|
$ |
3,811 |
|
|||||
| Delinquent Loans:¹ | ||||||||||||||||||||
| Loans 30-89 days past due | $ |
19,010 |
|
$ |
7,614 |
|
$ |
4,308 |
|
$ |
8,613 |
|
$ |
16,907 |
|
|||||
| 90 days or more past due and still accruing |
|
- |
|
|
1,819 |
|
|
994 |
|
|
- |
|
|
1,605 |
|
|||||
| Nonaccrual |
|
8,545 |
|
|
9,711 |
|
|
7,043 |
|
|
5,797 |
|
|
2,842 |
|
|||||
| Total delinquent loans | $ |
27,555 |
|
$ |
19,144 |
|
$ |
12,345 |
|
$ |
14,410 |
|
$ |
21,354 |
|
|||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Net (recoveries) charge-offs to average loans² |
|
0.43 |
% |
|
0.00 |
% |
|
0.03 |
% |
|
0.06 |
% |
|
0.00 |
% |
|||||
| Nonaccrual loans to loans held-for-investment |
|
0.68 |
% |
|
0.78 |
% |
|
0.58 |
% |
|
0.47 |
% |
|
0.24 |
% |
|||||
| Nonperforming loans to loans held-for-investment |
|
0.68 |
% |
|
0.93 |
% |
|
0.66 |
% |
|
0.47 |
% |
|
0.37 |
% |
|||||
| Nonperforming assets to total assets |
|
0.64 |
% |
|
0.66 |
% |
|
0.48 |
% |
|
0.35 |
% |
|
0.27 |
% |
|||||
| Classified loans to loans held-for-investment |
|
1.66 |
% |
|
1.78 |
% |
|
1.31 |
% |
|
1.04 |
% |
|
1.00 |
% |
|||||
| Classified loans to Tier 1 and ACL |
|
7.69 |
% |
|
8.22 |
% |
|
6.05 |
% |
|
4.93 |
% |
|
4.69 |
% |
|||||
| Classified assets to total assets |
|
1.32 |
% |
|
1.24 |
% |
|
0.93 |
% |
|
0.77 |
% |
|
0.71 |
% |
|||||
| Classified assets to Tier 1 and ACL |
|
8.84 |
% |
|
8.42 |
% |
|
6.25 |
% |
|
4.93 |
% |
|
4.69 |
% |
|||||
| ACL to loans held-for-investment |
|
1.18 |
% |
|
1.29 |
% |
|
1.30 |
% |
|
1.31 |
% |
|
1.34 |
% |
|||||
| ACL to nonaccrual loans |
|
173.79 |
% |
|
164.34 |
% |
|
226.44 |
% |
|
276.73 |
% |
|
564.67 |
% |
|||||
| ACL to nonperforming loans |
|
173.79 |
% |
|
138.41 |
% |
|
198.43 |
% |
|
276.73 |
% |
|
360.87 |
% |
|||||
| ACL to nonperforming assets |
|
127.19 |
% |
|
132.43 |
% |
|
186.35 |
% |
|
276.73 |
% |
|
360.87 |
% |
|||||
| Texas ratio ³ |
|
4.31 |
% |
|
4.49 |
% |
|
3.24 |
% |
|
2.24 |
% |
|
1.75 |
% |
|||||
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 Regulatory |
Adequately Capitalized BASEL III |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||||||||||
| Requirement | Fully Phased In | 2025 |
2024 |
2024 |
2024 |
2024 |
|||||||||||||
| Leverage ratio | |||||||||||||||||||
| Company | N/A |
|
N/A |
|
14.04% |
|
14.12% |
|
14.64% |
|
14.51% |
|
13.85% |
||||||
| Bank | 5.00% |
|
4.00% |
|
14.00% |
|
14.07% |
|
14.58% |
|
14.45% |
|
13.84% |
||||||
| Common equity tier 1 risk-based capital ratio |
|
|
|
||||||||||||||||
| Company | N/A |
|
N/A |
|
19.10% |
|
19.02% |
|
19.03% |
|
18.36% |
|
18.67% |
||||||
| Bank | 6.50% |
|
7.00% |
|
19.05% |
|
18.95% |
|
18.95% |
|
18.28% |
|
18.65% |
||||||
| Tier 1 risk-based capital ratio |
|
|
|
||||||||||||||||
| Company | N/A |
|
N/A |
|
19.10% |
|
19.02% |
|
19.03% |
|
18.36% |
|
18.67% |
||||||
| Bank | 8.00% |
|
8.50% |
|
19.05% |
|
18.95% |
|
18.95% |
|
18.28% |
|
18.65% |
||||||
| Total risk-based capital ratio |
|
|
|
||||||||||||||||
| Company | N/A |
|
N/A |
|
20.23% |
|
20.23% |
|
20.26% |
|
19.59% |
|
19.92% |
||||||
| Bank | 10.00% |
|
10.50% |
|
20.18% |
|
20.16% |
|
20.18% |
|
19.50% |
|
19.91% |
||||||
| Tangible common equity/total assets |
|
14.13% |
|
13.93% |
|
14.03% |
|
14.70% |
|
14.25% |
|||||||||
| Tangible common equity per share | $ |
24.18 |
$ |
23.85 |
$ |
23.44 |
$ |
22.94 |
$ |
22.49 |
|||||||||
| FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 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 | $ |
1,437,846 |
|
$ |
23,618 |
6.66 |
% |
$ |
1,432,216 |
|
$ |
24,863 |
6.91 |
% |
$ |
1,427,123 |
|
$ |
25,357 |
7.07 |
% |
$ |
1,418,458 |
|
$ |
24,887 |
7.06 |
% |
$ |
1,415,924 |
|
$ |
24,906 |
7.07 |
% |
||||||||||||||
| Investment securities ² |
|
61,930 |
|
|
667 |
4.37 |
% |
|
62,714 |
|
|
696 |
4.42 |
% |
|
68,198 |
|
|
734 |
4.28 |
% |
|
70,052 |
|
|
723 |
4.15 |
% |
|
59,554 |
|
|
575 |
3.88 |
% |
||||||||||||||
| Interest-earning deposits at the FRB and other banks |
|
275,512 |
|
|
3,029 |
4.46 |
% |
|
253,524 |
|
|
3,048 |
4.78 |
% |
|
158,127 |
|
|
2,139 |
5.38 |
% |
|
146,956 |
|
|
1,995 |
5.46 |
% |
|
207,155 |
|
|
2,817 |
5.47 |
% |
||||||||||||||
| Other earning assets |
|
11,011 |
|
|
203 |
7.48 |
% |
|
11,011 |
|
|
211 |
7.62 |
% |
|
11,011 |
|
|
200 |
7.23 |
% |
|
11,011 |
|
|
200 |
7.31 |
% |
|
11,011 |
|
|
214 |
7.82 |
% |
||||||||||||||
| Total interest-earning assets ² |
|
1,786,299 |
|
|
27,517 |
6.25 |
% |
|
1,759,465 |
|
|
28,818 |
6.52 |
% |
|
1,664,459 |
|
|
28,430 |
6.80 |
% |
|
1,646,477 |
|
|
27,805 |
6.79 |
% |
|
1,693,644 |
|
|
28,512 |
6.77 |
% |
||||||||||||||
| NONINTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks |
|
12,060 |
|
|
12,349 |
|
|
12,527 |
|
|
12,907 |
|
|
12,172 |
|
||||||||||||||||||||||||||||||||||
| Other noninterest-earning assets |
|
41,549 |
|
|
35,479 |
|
|
34,395 |
|
|
33,263 |
|
|
31,967 |
|
||||||||||||||||||||||||||||||||||
| Total noninterest-earning assets |
|
53,609 |
|
|
47,828 |
|
|
46,922 |
|
|
46,170 |
|
|
44,139 |
|
||||||||||||||||||||||||||||||||||
| Less: Allowance for credit losses |
|
(15,569 |
) |
|
(15,953 |
) |
|
(16,024 |
) |
|
(16,058 |
) |
|
(15,322 |
) |
||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $ |
1,824,339 |
|
$ |
1,791,340 |
|
$ |
1,695,357 |
|
$ |
1,676,589 |
|
$ |
1,722,461 |
|
||||||||||||||||||||||||||||||||||
| INTEREST-BEARING DEPOSITS | |||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ |
9,622 |
|
$ |
5 |
0.21 |
% |
$ |
11,147 |
|
$ |
6 |
0.21 |
% |
$ |
11,007 |
|
$ |
6 |
0.22 |
% |
$ |
11,864 |
|
$ |
6 |
0.20 |
% |
$ |
12,680 |
|
$ |
6 |
0.19 |
% |
||||||||||||||
| Money market |
|
265,687 |
|
|
2,555 |
3.90 |
% |
|
244,258 |
|
|
2,508 |
4.08 |
% |
|
236,834 |
|
|
2,555 |
4.29 |
% |
|
230,261 |
|
|
2,272 |
3.97 |
% |
|
229,441 |
|
|
2,285 |
4.01 |
% |
||||||||||||||
| Savings |
|
83,978 |
|
|
638 |
3.08 |
% |
|
81,423 |
|
|
661 |
3.23 |
% |
|
79,289 |
|
|
689 |
3.46 |
% |
|
82,215 |
|
|
700 |
3.42 |
% |
|
84,854 |
|
|
724 |
3.43 |
% |
||||||||||||||
| Time deposits |
|
830,672 |
|
|
9,331 |
4.56 |
% |
|
815,866 |
|
|
9,828 |
4.79 |
% |
|
767,607 |
|
|
9,536 |
4.94 |
% |
|
759,954 |
|
|
9,296 |
4.92 |
% |
|
801,122 |
|
|
9,523 |
4.78 |
% |
||||||||||||||
| Total interest-bearing deposits |
|
1,189,959 |
|
|
12,529 |
4.27 |
% |
|
1,152,694 |
|
|
13,003 |
4.49 |
% |
|
1,094,737 |
|
|
12,786 |
4.65 |
% |
|
1,084,294 |
|
|
12,274 |
4.55 |
% |
|
1,128,097 |
|
|
12,538 |
4.47 |
% |
||||||||||||||
| Borrowings |
|
48,889 |
|
|
115 |
0.95 |
% |
|
50,001 |
|
|
118 |
0.94 |
% |
|
50,000 |
|
|
118 |
0.94 |
% |
|
50,013 |
|
|
117 |
0.94 |
% |
|
50,000 |
|
|
117 |
0.94 |
% |
||||||||||||||
| Total interest-bearing liabilities |
|
1,238,848 |
|
|
12,644 |
4.14 |
% |
|
1,202,695 |
|
|
13,121 |
4.34 |
% |
|
1,144,737 |
|
|
12,904 |
4.48 |
% |
|
1,134,307 |
|
|
12,391 |
4.39 |
% |
|
1,178,097 |
|
|
12,655 |
4.32 |
% |
||||||||||||||
| Noninterest-bearing deposits |
|
298,579 |
|
|
309,662 |
|
|
280,670 |
|
|
279,765 |
|
|
284,867 |
|
||||||||||||||||||||||||||||||||||
| Other liabilities |
|
29,428 |
|
|
26,090 |
|
|
21,376 |
|
|
19,287 |
|
|
21,112 |
|
||||||||||||||||||||||||||||||||||
| Stockholders' equity |
|
257,484 |
|
|
252,893 |
|
|
248,574 |
|
|
243,230 |
|
|
238,385 |
|
||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ |
1,824,339 |
|
$ |
1,791,340 |
|
$ |
1,695,357 |
|
$ |
1,676,589 |
|
$ |
1,722,461 |
|
||||||||||||||||||||||||||||||||||
| Net interest income² | $ |
14,873 |
$ |
15,697 |
$ |
15,526 |
$ |
15,414 |
$ |
15,857 |
|||||||||||||||||||||||||||||||||||||||
| Net interest spread | 2.11 |
% |
2.18 |
% |
2.32 |
% |
2.40 |
% |
2.45 |
% |
|||||||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 1.27 |
% |
1.37 |
% |
1.39 |
% |
1.37 |
% |
1.32 |
% |
|||||||||||||||||||||||||||||||||||||||
| Net interest margin² | 3.38 |
% |
3.55 |
% |
3.71 |
% |
3.77 |
% |
3.77 |
% |
|||||||||||||||||||||||||||||||||||||||
| Cost of deposits | $ |
1,488,538 |
|
$ |
12,529 |
3.41 |
% |
$ |
1,462,356 |
|
$ |
13,003 |
3.54 |
% |
$ |
1,375,407 |
|
$ |
12,786 |
3.70 |
% |
$ |
1,364,059 |
|
$ |
12,274 |
3.62 |
% |
$ |
1,412,964 |
|
$ |
12,538 |
3.57 |
% |
||||||||||||||
| Cost of funds | $ |
1,537,427 |
|
$ |
12,644 |
3.34 |
% |
$ |
1,512,357 |
|
$ |
13,121 |
3.45 |
% |
$ |
1,425,407 |
|
$ |
12,904 |
3.60 |
% |
$ |
1,414,072 |
|
$ |
12,391 |
3.52 |
% |
$ |
1,462,964 |
|
$ |
12,655 |
3.48 |
% |
||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
| March 31,2025 | December 31, 2024 | September 30, 2024 | June 30,2024 | March 31, 2024 | |||||||||||||||||||||||||||||||
| Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||
| Contractual yield | $ |
22,866 |
|
6.45 |
% |
$ |
24,036 |
|
6.68 |
% |
$ |
24,544 |
|
6.84 |
% |
$ |
24,271 |
|
6.88 |
% |
$ |
24,138 |
|
6.86 |
% |
||||||||||
| SBA discount accretion |
|
781 |
|
0.22 |
% |
|
818 |
|
0.23 |
% |
|
806 |
|
0.23 |
% |
|
736 |
|
0.21 |
% |
|
926 |
|
0.26 |
% |
||||||||||
| Prepayment penalties and late fees |
|
136 |
|
0.04 |
% |
|
64 |
|
0.02 |
% |
|
184 |
|
0.05 |
% |
|
36 |
|
0.01 |
% |
|
67 |
|
0.01 |
% |
||||||||||
| Amortization of net deferred costs |
|
(165 |
) |
-0.05 |
% |
|
(55 |
) |
-0.02 |
% |
|
(177 |
) |
-0.05 |
% |
|
(156 |
) |
-0.04 |
% |
|
(225 |
) |
-0.06 |
% |
||||||||||
| As reported yield on loans | $ |
23,618 |
|
6.66 |
% |
$ |
24,863 |
|
6.91 |
% |
$ |
25,357 |
|
7.07 |
% |
$ |
24,887 |
|
7.06 |
% |
$ |
24,906 |
|
7.07 |
% |
||||||||||
Contacts
Alex Ko, EVP & CFO
(213) 296-5737
AlexK@cbb-bank.com