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LOS ANGELES, January 31, 2025--(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 $5.7 million for the fourth quarter 2024, or $0.54 per diluted share compared to $5.6 million in the third quarter 2024, or $0.53 per diluted share.
Additionally, CBB reported net income for the year ended December 31, 2024 of $22.4 million, or $2.12 per diluted share compared to $28.9 million, or $2.72 per diluted share of net income for the year ended December 31, 2023.
OVERALL RESULTS
Net income for the fourth quarter 2024 increased from the previous quarter primarily on higher net interest income and lower noninterest expenses. The return on average assets for the fourth quarter 2024 was 1.27% compared to 1.31% for the third quarter 2024 and 1.54% for the fourth quarter 2023. The return on average equity for the fourth quarter 2024 was 8.98% compared to 8.91% for the third quarter 2024 and 11.94% for the fourth quarter 2023. The net interest margin for the fourth quarter 2024 was 3.55% compared to 3.71% for the third quarter 2024 and 3.86% for the fourth quarter 2023. The efficiency ratio for the fourth quarter 2024 was 55.66% compared to 56.61% for the third quarter 2024 and 49.45% for the fourth quarter 2023.
James Hong, President and CEO, said, "We are pleased to announce a solid performance in 2024, despite facing challenges with net interest margin due to rising costs on interest-bearing accounts. Our fourth-quarter results highlight the bank’s resilience, with notable increases in both deposits and loan originations. Throughout the year, we saw a significant boost in noninterest income from loan sales, driven by improved market premiums." He added, "We are excited to announce the appointment of Alex Ko as our new Chief Operating Officer. With his extensive experience and proven track record in the banking industry, Alex is poised to drive significant growth and innovation at our bank. We are confident that his leadership will enhance our operational efficiency and contribute to our long-term success."
INCOME STATEMENT
Net Interest Income
Net interest income for the fourth quarter 2024 was $15.6 million, an increase of $172 thousand or 1.1%, quarter over quarter, but a decrease of $1.5 million or 8.8%, compared to the fourth quarter 2023.
Net interest income for the twelve months ended on December 31, 2024 was $62.3 million, a decrease of $10.7 million, or 14.6%, compared to the same period last year. The decrease in net interest income was due, in part, to increase in the cost of interest-bearing deposits as maturing time deposits were rolled over into higher interest rate CDs during 2024. Also, the yield on variable rate loans and short-term investments decreased as the Fed cut policy rate by one percent starting in September of 2024.
Net Interest Margin
The net interest margin for the fourth quarter 2024 was 3.55% compared to 3.71% for the third quarter 2024 and 3.86% for the fourth quarter 2023. The cost of funds for the fourth quarter 2024 was 3.45% compared to 3.60% in the third quarter and 3.20% for the fourth quarter of 2023.
Provision for Credit Losses
No provision for credit losses was recorded for the fourth quarter 2024 compared to a negative $100 thousand in the third quarter 2024. No provision for credit losses was recorded in the fourth quarter 2023.
Noninterest Income
Noninterest income for the fourth quarter 2024 was $2.2 million compared to $2.2 million for the third quarter 2024 and increased by $246 thousand compared to $2.0 million for the fourth quarter 2023.
Noninterest income for the twelve months ended December 31, 2024 was $9.3 million, an increase of $2.0 million compared to the same period last year. The increase was due to a combination of a higher gain on sale of loans, higher SBA servicing fee income, and other banking service fees.
Noninterest Expenses
Noninterest expenses for the fourth quarter 2024 were $9.9 million compared to $10.0 million for the third quarter 2024 and $9.5 million for the fourth quarter 2023. Noninterest expenses decreased $76 thousand quarter over quarter on lower salaries and benefits, marketing, and professional fee expenses offset by higher occupancy and fixed asset expenses.
Noninterest expenses for the twelve months ended on December 31, 2024 were $39.9 million, a decrease of $228 thousand or 0.6%, compared to the same period last year.
Please refer to financial tables in this press release for additional information and trends.
Income Taxes
The Company’s effective tax rate for the fourth quarter 2024 was 27.9% compared to 28.4% for third quarter 2024 and 27.6% for fourth quarter 2023.
BALANCE SHEET
Investment Securities
Investment securities were $62.2 million at December 31, 2024, a decrease of $1.0 million or 1.6% from September 30, 2024, and an increase of $2.3 million or 3.9% from December 31 2023.
Loans Receivable
Loans receivable, including loans held-for-sale, at December 31, 2024 was $1.44 billion, an increase of $17.1 million or 1.2% from September 30, 2024, and increased $15.7 million or 1.1% from December 31, 2023.
Allowance for Credit Losses and Asset Quality
The Allowance for Credit Losses ("ACL") at December 31, 2024 was $16.0 million which was 1.29% of loans held-for-investment compared to $15.9 million or 1.30% of loans held-for-investment at September 30, 2024. At December 31, 2023, ACL was $15.3 million, or 1.27% of total loans held-for-investment.
Total nonperforming assets at December 31, 2024 were $12.1 million compared to $8.6 million at September 30, 2024 and $2.5 million at December 31, 2023. The ACL coverage to nonperforming assets was over 132% at December 31, 2024.
SBA Loans Held-for-Sale
Total SBA loans held-for-sale at December 31, 2024 were $198.4 million compared to $ 198.0 million September 30, 2024, and $218.3 million at December 31, 2023.
The Bank sold $17.2 million in SBA loans with an average premium of 9.2% in the fourth quarter 2024 compared to the sale of $20.2 million with an average premium of 7.5% in the third quarter 2024. The Bank sold $21.7 million of SBA loans with an average premium of 6.7% in the fourth quarter 2023.
Deposits
Total deposits were $1.48 billion at December 31, 2024, up $33.0 million or 2.3% from September 2024, and up $27.0 million or 1.9% from December 2023.
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 $255.0 million at December 31, 2024, which increased $4.4 million or 1.8%, quarter over quarter. Tangible book value per share at December 31, 2024 was $23.85, an increase of $0.41, or 1.8%, quarter over quarter.
The following are the Company’s and the Bank’s regulatory capital ratios at December 31, 2024.
The Common Equity Tier1 Risk-Based Capital Ratios at December 31, 2024 were 19.02% and 18.95% for the Company and the Bank, respectively. Total Risk-Based Capital Ratios were 20.23% and 20.16% for the Company and the Bank, respectively. Bank’s Leverage Ratios were 14.12% and 14.07% 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 December 31, 2024, the Bank had eleven full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas and Honolulu, Hawaii. Two SBA regional offices in Los Angeles and Dallas Counties; and loan production offices in Georgia and Washington. For additional information, please go to www.cbb-bank.com under the tab "About Us" and select "Investor Relations" to see the 4Q 2024 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 | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | $ | % | December 31, | $ | % | December 31, | December 31, | $ | % | |||||||||||||||||||||||||||||||
| 2024 | 2024 | Change | Change | 2023 | Change | Change | 2024 | 2023 | Change | Change | |||||||||||||||||||||||||||||||
| Interest income | $ | 28,769 | $ | 28,380 | $ | 389 | 1.4 | % | $ | 29,624 | $ | (855 | ) | (2.9 | %) | $ | 113,367 | $ | 114,986 | $ | (1,619 | ) | (1.4 | %) | |||||||||||||||||
| Interest expense | 13,121 | 12,904 | 217 | 1.7 | % | 12,462 | 659 | 5.3 | % | 51,071 | 42,002 | 9,069 | 21.6 | % | |||||||||||||||||||||||||||
| Net interest income | 15,648 | 15,476 | 172 | 1.1 | % | 17,162 | (1,514 | ) | (8.8 | %) | 62,296 | 72,984 | (10,688 | ) | (14.6 | %) | |||||||||||||||||||||||||
| Provision for credit losses | (100 | ) | 100 | (100.0 | %) | - | - | 100.0 | % | 500 | - | 500 | 100.0 | % | |||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 15,648 | 15,576 | 72 | 0.5 | % | 17,162 | (1,514 | ) | (8.8 | %) | 61,796 | 72,984 | (11,188 | ) | (15.3 | %) | |||||||||||||||||||||||||
| Gain on sale of loans | 1,013 | 991 | 22 | 2.2 | % | 838 | 175 | (378.9 | %) | 4,557 | 3,209 | 1,348 | 42.0 | % | |||||||||||||||||||||||||||
| Gain (loss) on sale of OREO | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
| SBA servicing fee income, net | 654 | 760 | (106 | ) | (13.9 | %) | 690 | (36 | ) | (5.2 | %) | 2,815 | 2,423 | 392 | 16.2 | % | |||||||||||||||||||||||||
| Recovery on impaired servicing liability | - | - | - | - | - | - | - | 10 | - | 10 | 100.0 | % | |||||||||||||||||||||||||||||
| Service charges and other income | 543 | 465 | 78 | 16.8 | % | 436 | 107 | 24.5 | % | 1,940 | 1,643 | 297 | 18.1 | % | |||||||||||||||||||||||||||
| Noninterest income | 2,210 | 2,216 | (6 | ) | (0.3 | %) | 1,964 | 246 | 12.5 | % | 9,322 | 7,275 | 2,047 | 28.1 | % | ||||||||||||||||||||||||||
| Salaries and employee benefits | 5,635 | 5,884 | (249 | ) | (4.2 | %) | 5,356 | 279 | 5.2 | % | 23,470 | 22,585 | 885 | 3.9 | % | ||||||||||||||||||||||||||
| Occupancy and equipment | 1,280 | 1,149 | 131 | 11.4 | % | 1,128 | 152 | 13.5 | % | 4,665 | 4,477 | 188 | 4.2 | % | |||||||||||||||||||||||||||
| Marketing expense | 285 | 423 | (138 | ) | (32.6 | %) | 250 | 35 | 14.0 | % | 1,513 | 1,508 | 5 | 0.3 | % | ||||||||||||||||||||||||||
| Professional expense | 329 | 456 | (127 | ) | (27.9 | %) | 360 | (31 | ) | (8.6 | %) | 1,637 | 1,693 | (56 | ) | (3.3 | %) | ||||||||||||||||||||||||
| Other expenses | 2,411 | 2,104 | 307 | 14.6 | % | 2,363 | 48 | 2.0 | % | 8,571 | 9,821 | (1,250 | ) | (12.7 | %) | ||||||||||||||||||||||||||
| Noninterest expense | 9,940 | 10,016 | (76 | ) | (0.8 | %) | 9,457 | 483 | 5.1 | % | 39,856 | 40,084 | (228 | ) | (0.6 | %) | |||||||||||||||||||||||||
| Income before income tax provision | 7,918 | 7,776 | 142 | 1.8 | % | 9,669 | (1,751 | ) | (18.1 | %) | 31,262 | 40,175 | (8,913 | ) | (22.2 | %) | |||||||||||||||||||||||||
| Income tax provision | 2,211 | 2,207 | 4 | 0.2 | % | 2,670 | (459 | ) | (17.2 | %) | 8,834 | 11,315 | (2,481 | ) | (21.9 | %) | |||||||||||||||||||||||||
| Net income | $ | 5,707 | $ | 5,569 | $ | 138 | 2.5 | % | $ | 6,999 | $ | (1,292 | ) | (18.5 | %) | $ | 22,428 | $ | 28,860 | $ | (6,432 | ) | (22.3 | %) | |||||||||||||||||
| Effective tax rate | 27.92 | % | 28.38 | % | -0.46 | % | -1.62 | % | 27.61 | % | 0.31 | % | 1.12 | % | 28.26 | % | 28.16 | % | 0.09 | % | 0.33 | % | |||||||||||||||||||
| 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 | 10,585,191 | 2,945 | 0.0 | % | |||||||||||||||||||||||||||||
| Weighted average shares for diluted EPS | 10,598,476 | 10,596,039 | 2,437 | 0.0 | % | 10,588,937 | 9,539 | 0.1 | % | 10,594,400 | 10,594,055 | 345 | 0.0 | % | |||||||||||||||||||||||||||
| Basic EPS | $ | 0.54 | $ | 0.53 | $ | 0.01 | 1.9 | % | $ | 0.66 | $ | (0.12 | ) | (18.2 | %) | $ | 2.12 | $ | 2.73 | $ | (0.61 | ) | -22.3 | % | |||||||||||||||||
| Diluted EPS | $ | 0.54 | $ | 0.53 | $ | 0.01 | 1.9 | % | $ | 0.66 | $ | (0.12 | ) | (18.2 | %) | $ | 2.12 | $ | 2.72 | $ | (0.60 | ) | (22.1 | %) | |||||||||||||||||
| Return on average assets | 1.27 | % | 1.31 | % | (0.04 | %) | (3.1 | %) | 1.54 | % | (0.27 | %) | (17.5 | %) | 1.30 | % | 1.59 | % | (0.29 | %) | (18.2 | %) | |||||||||||||||||||
| Return on average equity | 8.98 | % | 8.91 | % | 0.07 | % | 0.8 | % | 11.94 | % | (2.96 | %) | (24.8 | %) | 9.12 | % | 12.92 | % | (3.80 | %) | (29.4 | %) | |||||||||||||||||||
| Efficiency ratio¹ | 55.66 | % | 56.61 | % | (0.95 | %) | (1.7 | %) | 49.45 | % | 6.21 | % | 12.6 | % | 55.65 | % | 49.94 | % | 5.71 | % | 11.4 | % | |||||||||||||||||||
| Yield on interest-earning assets² | 6.52 | % | 6.80 | % | (0.28 | %) | (4.1 | %) | 6.65 | % | (0.13 | %) | (2.0 | %) | 6.72 | % | 6.48 | % | 0.24 | % | 3.7 | % | |||||||||||||||||||
| Cost of funds | 3.45 | % | 3.60 | % | (0.15 | %) | (4.2 | %) | 3.20 | % | 0.25 | % | 7.8 | % | 3.51 | % | 2.69 | % | 0.82 | % | 30.5 | % | |||||||||||||||||||
| Net interest margin² | 3.55 | % | 3.71 | % | (0.16 | %) | (4.3 | %) | 3.86 | % | (0.31 | %) | (8.0 | %) | 3.70 | % | 4.12 | % | (0.42 | %) | (10.2 | %) | |||||||||||||||||||
| 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) | ||||||||||||||||||||||||
| December 31, | September 30, | $ | % | December 31, | $ | % | ||||||||||||||||||
| 2024 | 2024 | Change | Change | 2023 | Change | Change | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Cash and due from banks | $ | 10,336 | $ | 14,892 | $ | (4,556 | ) | (30.6 | %) | $ | 14,282 | $ | (3,946 | ) | (27.6 | %) | ||||||||
| Interest-earning deposits at the FRB and other banks | 266,826 | 241,094 | 25,732 | 10.7 | % | 233,255 | 33,571 | 14.4 | % | |||||||||||||||
| Investment securities¹ | 62,196 | 63,208 | (1,012 | ) | (1.6 | %) | 59,883 | 2,313 | 3.9 | % | ||||||||||||||
| Loans held-for-sale | 198,448 | 198,021 | 427 | 0.2 | % | 218,258 | (19,810 | ) | (9.1 | %) | ||||||||||||||
| Loans held-for-investment | 1,239,564 | 1,222,865 | 16,699 | 1.4 | % | 1,204,009 | 35,555 | 3.0 | % | |||||||||||||||
| Less: Allowance for credit losses ("ACL") | (15,959 | ) | (15,948 | ) | (11 | ) | (0.1 | %) | (15,291 | ) | (668 | ) | (4.4 | %) | ||||||||||
| Loans held-for-investment, net | 1,223,605 | 1,206,917 | 16,688 | 1.4 | % | 1,188,718 | 34,887 | 2.9 | % | |||||||||||||||
| Other real estate owned ("OREO") | 521 | 521 | - | - | 55 | 466 | 847.3 | % | ||||||||||||||||
| Restricted stock investments | 11,011 | 11,011 | - | - | 11,011 | - | - | |||||||||||||||||
| Servicing assets | 6,909 | 7,192 | (283 | ) | (3.9 | %) | 7,673 | (764 | ) | (10.0 | %) | |||||||||||||
| Goodwill | 2,185 | 2,185 | - | - | 2,185 | - | - | |||||||||||||||||
| Intangible assets | 214 | 224 | (10 | ) | (4.5 | %) | 255 | (41 | ) | (16.1 | %) | |||||||||||||
| Other assets | 33,384 | 25,284 | 8,100 | 32.0 | % | 24,838 | 8,546 | 34.4 | % | |||||||||||||||
| Total assets | $ | 1,815,635 | $ | 1,770,549 | $ | 45,086 | 2.5 | % | $ | 1,760,413 | $ | 55,222 | 3.1 | % | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
| Noninterest-bearing | $ | 304,005 | $ | 318,807 | $ | (14,802 | ) | (4.6 | %) | $ | 305,923 | $ | (1,918 | ) | (0.6 | %) | ||||||||
| Interest-bearing | 1,176,567 | 1,128,784 | 47,783 | 4.2 | % | 1,147,662 | 28,905 | 2.5 | % | |||||||||||||||
| Total deposits | 1,480,572 | 1,447,591 | 32,981 | 2.3 | % | 1,453,585 | 26,987 | 1.9 | % | |||||||||||||||
| FHLB advances and other borrowing | 50,000 | 50,000 | - | - | 50,000 | - | - | |||||||||||||||||
| Other liabilities | 30,096 | 22,415 | 7,681 | 34.3 | % | 21,114 | 8,982 | 42.5 | % | |||||||||||||||
| Total liabilities | 1,560,668 | 1,520,006 | 40,662 | 2.7 | % | 1,524,699 | 35,969 | 2.4 | % | |||||||||||||||
| Stockholders' Equity | 254,967 | 250,543 | 4,424 | 1.8 | % | 235,714 | 19,253 | 8.2 | % | |||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 1,815,635 | $ | 1,770,549 | $ | 45,086 | 2.5 | % | $ | 1,760,413 | $ | 55,222 | 3.1 | % | ||||||||||
| CAPITAL RATIOS | ||||||||||||||||||||||||
| Leverage ratio | ||||||||||||||||||||||||
| Company | 14.12 | % | 14.64 | % | (0.52 | %) | (3.6 | %) | 12.98 | % | 1.14 | % | 8.8 | % | ||||||||||
| Bank | 14.07 | % | 14.58 | % | (0.51 | %) | (3.5 | %) | 12.96 | % | 1.11 | % | 8.6 | % | ||||||||||
| Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||
| Company | 19.02 | % | 19.03 | % | (0.01 | %) | (0.0 | %) | 18.08 | % | 0.94 | % | 5.2 | % | ||||||||||
| Bank | 18.95 | % | 18.95 | % | - | - | 18.05 | % | 0.90 | % | 5.0 | % | ||||||||||||
| Tier 1 risk-based capital ratio | ||||||||||||||||||||||||
| Company | 19.02 | % | 19.03 | % | (0.01 | %) | (0.0 | %) | 18.08 | % | 0.94 | % | 5.2 | % | ||||||||||
| Bank | 18.95 | % | 18.95 | % | - | - | 18.05 | % | 0.90 | % | 5.0 | % | ||||||||||||
| Total risk-based capital ratio | ||||||||||||||||||||||||
| Company | 20.23 | % | 20.26 | % | (0.03 | %) | (0.2 | %) | 19.30 | % | 0.93 | % | 4.8 | % | ||||||||||
| Bank | 20.16 | % | 20.18 | % | (0.02 | %) | (0.1 | %) | 19.27 | % | 0.89 | % | 4.6 | % | ||||||||||
| Tangible book value per share | $ | 23.85 | $ | 23.44 | $ | 0.41 | 1.8 | % | $ | 22.03 | $ | 1.82 | 8.3 | % | ||||||||||
| Loans Held for Investments-to-Deposit ("LHFITD") ratio | 83.72 | % | 84.48 | % | (0.76 | %) | (0.9 | %) | 82.83 | % | 0.89 | % | 1.1 | % | ||||||||||
| Net Loan-to-Deposit ("LTD") ratio | 96.05 | % | 97.05 | % | (1.00 | %) | (1.0 | %) | 96.79 | % | (0.74 | %) | (0.8 | %) | ||||||||||
| Nonperforming assets | $ | 12,051 | $ | 8,558 | $ | 3,493 | 40.8 | % | $ | 2,484 | $ | 9,567 | 385.1 | % | ||||||||||
| Nonperforming assets as a % of loans held-for-investment | 0.97 | % | 0.70 | % | 0.27 | % | 38.6 | % | 0.21 | % | 0.76 | % | 361.9 | % | ||||||||||
| ACL as a % of loans held-for-investment | 1.29 | % | 1.30 | % | (0.01 | %) | (0.77 | %) | 1.27 | % | 0.02 | % | 1.6 | % | ||||||||||
| ¹ Includes AFS and HTM | ||||||||||||||||||||||||
| FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3 | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||
| Interest income | $ | 28,769 | $ | 28,380 | $ | 27,755 | $ | 28,463 | $ | 29,624 | |||||||||||
| Interest expense | 13,121 | 12,904 | 12,391 | 12,655 | 12,462 | ||||||||||||||||
| Net interest income | 15,648 | 15,476 | 15,364 | 15,808 | 17,162 | ||||||||||||||||
| Provision for credit losses | - | (100 | ) | 200 | 400 | - | |||||||||||||||
| Net interest income after provision for credit losses | 15,648 | 15,576 | 15,164 | 15,408 | 17,162 | ||||||||||||||||
| Gain on sale of loans | 1,013 | 991 | 1,064 | 1,489 | 838 | ||||||||||||||||
| Gain (loss) on sale of OREO | - | - | - | (1 | ) | - | |||||||||||||||
| SBA servicing fee income, net | 654 | 760 | 768 | 633 | 690 | ||||||||||||||||
| Recovery on impaired servicing liability | - | - | - | 10 | - | ||||||||||||||||
| Service charges and other income | 543 | 465 | 503 | 430 | 436 | ||||||||||||||||
| Noninterest income | 2,210 | 2,216 | 2,335 | 2,561 | 1,964 | ||||||||||||||||
| Salaries and employee benefits | 5,635 | 5,884 | 5,927 | 6,024 | 5,356 | ||||||||||||||||
| Occupancy and equipment | 1,280 | 1,149 | 1,114 | 1,122 | 1,128 | ||||||||||||||||
| Marketing expense | 285 | 423 | 403 | 402 | 250 | ||||||||||||||||
| Professional expense | 329 | 456 | 440 | 412 | 360 | ||||||||||||||||
| Other expenses | 2,411 | 2,104 | 1,972 | 2,084 | 2,363 | ||||||||||||||||
| Noninterest expense | 9,940 | 10,016 | 9,856 | 10,044 | 9,457 | ||||||||||||||||
| Income before income tax expense | 7,918 | 7,776 | 7,643 | 7,925 | 9,669 | ||||||||||||||||
| Income tax expense | 2,211 | 2,207 | 2,163 | 2,253 | 2,670 | ||||||||||||||||
| Net income | $ | 5,707 | $ | 5,569 | $ | 5,480 | $ | 5,672 | $ | 6,999 | |||||||||||
| Effective tax rate | 27.9 | % | 28.4 | % | 28.3 | % | 28.4 | % | 27.6 | % | |||||||||||
| 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 | 10,598,476 | 10,596,039 | 10,588,136 | 10,588,688 | 10,588,937 | ||||||||||||||||
| Basic EPS | $ | 0.54 | $ | 0.53 | $ | 0.51 | $ | 0.54 | $ | 0.66 | |||||||||||
| Diluted EPS | $ | 0.54 | $ | 0.53 | $ | 0.51 | $ | 0.54 | $ | 0.66 | |||||||||||
| FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4 | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| At or for the Three Months Ended | ||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||||
| Salaries and benefits | $ | 5,635 | $ | 5,884 | $ | 5,927 | $ | 6,024 | $ | 5,356 | ||||||||||||
| FTE at the end of period | 168 | 178 | 172 | 168 | 169 | |||||||||||||||||
| Average FTE during the period | 166 | 173 | 171 | 169 | 169 | |||||||||||||||||
| Salaries and benefits/average FTE¹ | $ | 135 | $ | 135 | $ | 139 | $ | 143 | $ | 126 | ||||||||||||
| Salaries and benefits/average assets¹ | 1.25 | % | 1.38 | % | 1.42 | % | 1.41 | % | 1.18 | % | ||||||||||||
| Noninterest expense/average assets¹ | 2.21 | % | 2.35 | % | 2.36 | % | 2.35 | % | 2.08 | % | ||||||||||||
| 1 Annualized | ||||||||||||||||||||||
| FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 10,336 | $ | 14,892 | $ | 11,667 | $ | 11,612 | $ | 14,282 | ||||||||||
| Interest-earning deposits at the FRB and other banks | 266,826 | 241,094 | 101,415 | 181,366 | 233,255 | |||||||||||||||
| Investment securities | 62,196 | 63,208 | 73,051 | 59,143 | 59,883 | |||||||||||||||
| Loans held-for-sale | 198,448 | 198,021 | 209,144 | 198,167 | 218,258 | |||||||||||||||
| Loans held-for-investment | 1,239,564 | 1,222,865 | 1,228,496 | 1,194,439 | 1,204,009 | |||||||||||||||
| Less: Allowance for credit losses | (15,959 | ) | (15,948 | ) | (16,042 | ) | (16,048 | ) | (15,291 | ) | ||||||||||
| Loans held-for-investment, net | 1,223,605 | 1,206,917 | 1,212,454 | 1,178,391 | 1,188,718 | |||||||||||||||
| Other real estate owned | 521 | 521 | - | - | 55 | |||||||||||||||
| Restricted stock investments | 11,011 | 11,011 | 11,011 | 11,011 | 11,011 | |||||||||||||||
| Servicing assets | 6,909 | 7,192 | 7,404 | 7,560 | 7,673 | |||||||||||||||
| Goodwill | 2,185 | 2,185 | 2,185 | 2,185 | 2,185 | |||||||||||||||
| Intangible assets | 214 | 224 | 235 | 245 | 255 | |||||||||||||||
| Other assets | 33,384 | 25,284 | 26,343 | 23,581 | 24,838 | |||||||||||||||
| Total assets | $ | 1,815,635 | $ | 1,770,549 | $ | 1,654,909 | $ | 1,673,261 | $ | 1,760,413 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Noninterest-bearing | $ | 304,005 | $ | 318,807 | $ | 281,243 | $ | 286,766 | $ | 305,923 | ||||||||||
| Interest-bearing | 1,176,567 | 1,128,784 | 1,059,146 | 1,074,198 | 1,147,662 | |||||||||||||||
| Total deposits | 1,480,572 | 1,447,591 | 1,340,389 | 1,360,964 | 1,453,585 | |||||||||||||||
| FHLB advances | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | |||||||||||||||
| Other liabilities | 30,096 | 22,415 | 19,260 | 21,727 | 21,114 | |||||||||||||||
| Total liabilities | 1,560,668 | 1,520,006 | 1,409,649 | 1,432,691 | 1,524,699 | |||||||||||||||
| Stockholders' Equity | 254,967 | 250,543 | 245,260 | 240,570 | 235,714 | |||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 1,815,635 | $ | 1,770,549 | $ | 1,654,909 | $ | 1,673,261 | $ | 1,760,413 | ||||||||||
| FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6 | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | |||||||||||||||||||||
| Construction | $ | 27,276 | 2.2 | % | $ | 29,789 | 2.4 | % | $ | 33,918 | 2.8 | % | $ | 37,216 | 3.1 | % | $ | 34,886 | 2.9 | % | ||||||||||
| Commercial real estate | 1,048,945 | 84.6 | % | 1,029,768 | 84.2 | % | 1,035,425 | 84.3 | % | 1,005,765 | 84.2 | % | 1,010,495 | 83.9 | % | |||||||||||||||
| Commercial and industrial | 114,435 | 9.2 | % | 112,588 | 9.2 | % | 108,742 | 8.9 | % | 101,784 | 8.5 | % | 108,123 | 9.0 | % | |||||||||||||||
| Home mortgage | 43,676 | 3.5 | % | 45,673 | 3.7 | % | 44,987 | 3.7 | % | 44,389 | 3.7 | % | 44,920 | 3.7 | % | |||||||||||||||
| Consumer | 552 | 0.0 | % | 537 | 0.0 | % | 782 | 0.1 | % | 668 | 0.1 | % | 630 | 0.1 | % | |||||||||||||||
| Gross loans held-for-investment | 1,234,884 | 99.6 | % | 1,218,355 | 99.6 | % | 1,223,854 | 99.6 | % | 1,189,822 | 99.6 | % | 1,199,054 | 99.6 | % | |||||||||||||||
| Deferred loan fees/costs, net | 4,680 | 0.4 | % | 4,510 | 0.4 | % | 4,642 | 0.4 | % | 4,617 | 0.4 | % | 4,955 | 0.4 | % | |||||||||||||||
| Loans held-for-investment | $ | 1,239,564 | 100.0 | % | $ | 1,222,865 | 100.0 | % | $ | 1,228,496 | 100.0 | % | $ | 1,194,439 | 100.0 | % | $ | 1,204,009 | 100.0 | % | ||||||||||
| Loans held-for-sale | $ | 198,448 | $ | 198,021 | $ | 209,144 | $ | 198,167 | $ | 218,258 | ||||||||||||||||||||
| Total loans receivable | $ | 1,438,012 | $ | 1,420,886 | $ | 1,437,640 | $ | 1,392,606 | $ | 1,422,267 | ||||||||||||||||||||
| FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7 | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| SBA loans held-for-sale at beginning of the quarter/year | $ | 198,021 | $ | 209,144 | $ | 198,167 | $ | 218,258 | $ | 219,355 | $ | 218,258 | $ | 230,431 | |||||||||||||||
| SBA loans originated/transferred from/to held-for-investment during the quarter/year | 27,557 | 13,169 | 34,366 | 14,589 | 27,022 | 89,681 | 78,445 | ||||||||||||||||||||||
| SBA loans sold during the quarter/year | (17,215 | ) | (20,152 | ) | (19,508 | ) | (28,164 | ) | (21,749 | ) | (85,039 | ) | (73,431 | ) | |||||||||||||||
| SBA loans principal paydown/payoff, net of advance | (9,915 | ) | (4,140 | ) | (3,881 | ) | (6,516 | ) | (6,370 | ) | (24,452 | ) | (17,187 | ) | |||||||||||||||
| SBA loans held-for-sale at end of the quarter/year | $ | 198,448 | $ | 198,021 | $ | 209,144 | $ | 198,167 | $ | 218,258 | $ | 198,448 | $ | 218,258 | |||||||||||||||
| Gain on sale of SBA loans | $ | 1,013 | $ | 991 | $ | 1,064 | $ | 1,489 | $ | 838 | $ | 4,557 | $ | 3,209 | |||||||||||||||
| Premium on sale (weighted average) | 9.2 | % | 7.5 | % | 8.3 | % | 6.8 | % | 6.7 | % | 8.3 | % | 7.0 | % | |||||||||||||||
| SBA loan production | $ | 39,741 | $ | 23,227 | $ | 45,126 | $ | 18,089 | $ | 37,821 | $ | 126,183 | $ | 107,823 | |||||||||||||||
| Net Premium Received | 1,585 | 1,508 | 1,609 | 2,378 | 1,449 | 7,080 | 5,109 | ||||||||||||||||||||||
| 63.9 | % | 65.7 | % | 66.1 | % | 62.6 | % | 57.8 | % | 64.4 | % | 62.8 | % | ||||||||||||||||
| SBA Loan Production | |||||||||||||||||||||||||||||
| Oct-24 | 11,364,133 | 9,058,000 | 18,289,000 | 3,701,000 | 8,428,000 | 42,412,133 | 23,602,000 | ||||||||||||||||||||||
| Nov-24 | 13,438,531 | 5,525,000 | 5,273,324 | 5,724,000 | 12,573,000 | 29,960,854 | 50,225,500 | ||||||||||||||||||||||
| Dec-24 | 14,938,000 | 8,644,000 | 21,564,000 | 8,664,000 | 16,820,000 | 53,810,000 | 33,995,000 | ||||||||||||||||||||||
| 39,740,664 | 23,227,000 | 45,126,324 | 18,089,000 | 37,821,000 | 126,182,987 | 107,822,500 | |||||||||||||||||||||||
| Total Loan Production | |||||||||||||||||||||||||||||
| Oct-24 | 33,655,902 | 19,440,000 | 56,216,000 | 15,651,000 | 36,328,000 | ||||||||||||||||||||||||
| Nov-24 | 52,773,531 | 27,102,209 | 26,623,324 | 12,559,000 | 22,588,000 | ||||||||||||||||||||||||
| Dec-24 | 29,003,000 | 15,034,000 | 43,214,670 | 17,689,000 | 26,390,000 | ||||||||||||||||||||||||
| 115,432,432 | 61,576,209 | 126,053,994 | 45,899,000 | 85,306,000 | |||||||||||||||||||||||||
| SBA Loan Paid-off | |||||||||||||||||||||||||||||
| Oct-24 | 1,197,726 | 1,482,467 | 2,709,182 | 9,292,801 | 3,384,549 | ||||||||||||||||||||||||
| Nov-24 | 2,093,830 | 2,830,972 | 1,796,192 | 2,426,785 | 2,385,378 | ||||||||||||||||||||||||
| Dec-24 | 5,863,430 | 5,121,340 | 3,438,700 | 2,016,293 | 4,344,318 | ||||||||||||||||||||||||
| 9,154,987 | 9,434,780 | 7,944,073 | 13,735,879 | 10,114,246 | |||||||||||||||||||||||||
| SBA PPP Loan Production | |||||||||||||||||||||||||||||
| Oct-24 | - | - | - | - | - | ||||||||||||||||||||||||
| Nov-24 | - | - | - | - | - | ||||||||||||||||||||||||
| Dec-24 | - | - | - | - | - | ||||||||||||||||||||||||
| - | - | - | - | - | |||||||||||||||||||||||||
| SBA PPP Loan Paid-off | |||||||||||||||||||||||||||||
| Oct-24 | 73,290 | ||||||||||||||||||||||||||||
| Nov-24 | 34,671 | - | |||||||||||||||||||||||||||
| Dec-24 | - | ||||||||||||||||||||||||||||
| - | - | - | 34,671 | 73,290 | |||||||||||||||||||||||||
| FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8 | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| SBA servicing assets @ beginning of the quarter/year | $ | 7,192 | $ | 7,404 | $ | 7,560 | $ | 7,673 | $ | 7,873 | $ | 7,673 | $ | 9,232 | |||||||||||||||
| Newly added SBA servicing assets from SBA loans sold | 355 | 377 | 395 | 555 | 430 | 1,682 | 1,418 | ||||||||||||||||||||||
| Regular quarterly/annual servicing assets amortization | (315 | ) | (332 | ) | (335 | ) | (332 | ) | (356 | ) | (1,314 | ) | (1,509 | ) | |||||||||||||||
| SBA servicing assets amortized from SBA loans paid off/charged off | (323 | ) | (257 | ) | (216 | ) | (336 | ) | (274 | ) | (1,132 | ) | (1,468 | ) | |||||||||||||||
| Subtotal before impairment | 6,909 | 7,192 | 7,404 | 7,560 | 7,673 | 6,909 | 7,673 | ||||||||||||||||||||||
| Reversal of valuation allowance on servicing assets | - | - | - | - | - | - | - | ||||||||||||||||||||||
| SBA servicing assets @ the end of the quarter/year | $ | 6,909 | $ | 7,192 | $ | 7,404 | $ | 7,560 | $ | 7,673 | $ | 6,909 | $ | 7,673 | |||||||||||||||
| FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9 | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||
| Balance | % | Balance | % | Balance | % | Balance | % | Balance | % | ||||||||||||||||||||||
| Noninterest-bearing demand | $ | 304,005 | 20.5 | % | $ | 318,807 | 22.0 | % | $ | 281,243 | 21.0 | % | $ | 286,766 | 21.1 | % | $ | 305,923 | 21.1 | % | |||||||||||
| Interest-bearing demand | 7,541 | 0.5 | % | 6,590 | 0.5 | % | 7,901 | 0.6 | % | 6,709 | 0.5 | % | 7,504 | 0.5 | % | ||||||||||||||||
| NOW & MMDA | 269,475 | 18.2 | % | 246,157 | 17.0 | % | 240,951 | 18.0 | % | 229,642 | 16.9 | % | 237,548 | 16.3 | % | ||||||||||||||||
| Savings | 84,727 | 5.7 | % | 78,356 | 5.4 | % | 80,360 | 6.0 | % | 84,999 | 6.2 | % | 88,689 | 6.1 | % | ||||||||||||||||
| TCDs of $250K and under | 324,041 | 21.9 | % | 310,134 | 21.4 | % | 295,109 | 22.0 | % | 299,944 | 22.0 | % | 315,920 | 21.7 | % | ||||||||||||||||
| TCDs of $250K over | 345,045 | 23.3 | % | 342,301 | 23.7 | % | 314,119 | 23.4 | % | 339,482 | 25.0 | % | 353,866 | 24.4 | % | ||||||||||||||||
| Wholesale deposits | 145,738 | 9.9 | % | 145,246 | 10.0 | % | 120,706 | 9.0 | % | 113,422 | 8.3 | % | 144,135 | 9.9 | % | ||||||||||||||||
| Total Deposits | $ | 1,480,572 | 100.0 | % | $ | 1,447,591 | 100.0 | % | $ | 1,340,389 | 100.0 | % | $ | 1,360,964 | 100.0 | % | $ | 1,453,585 | 100.0 | % | |||||||||||
| Recap: | |||||||||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 304,005 | 20.5 | % | $ | 318,807 | 22.0 | % | $ | 281,243 | 21.0 | % | $ | 286,766 | 21.1 | % | $ | 305,923 | 21.0 | % | |||||||||||
| Interest-bearing demand | 7,541 | 0.5 | % | 6,590 | 0.5 | % | 7,901 | 0.6 | % | 6,709 | 0.5 | % | 7,504 | 0.5 | % | ||||||||||||||||
| NOW & MMDA | 269,475 | 18.2 | % | 246,157 | 17.0 | % | 240,951 | 18.0 | % | 229,642 | 16.9 | % | 237,548 | 16.3 | % | ||||||||||||||||
| Savings | 84,727 | 5.7 | % | 78,356 | 5.4 | % | 80,360 | 6.0 | % | 84,999 | 6.2 | % | 88,689 | 6.1 | % | ||||||||||||||||
| TCDs of $250K and under | 324,041 | 21.9 | % | 310,134 | 21.4 | % | 295,109 | 22.0 | % | 299,944 | 22.0 | % | 315,920 | 21.7 | % | ||||||||||||||||
| Core Deposits | 989,789 | 66.9 | % | 960,044 | 66.3 | % | 881,952 | 67.6 | % | 908,060 | 66.7 | % | 955,584 | 65.7 | % | ||||||||||||||||
| TCDs of $250K over | 345,045 | 23.3 | % | 342,301 | 23.6 | % | 314,119 | 23.4 | % | 339,482 | 24.9 | % | 353,866 | 24.3 | % | ||||||||||||||||
| Nonreciprocal ICS MMDA | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||
| Wholesale deposits | 145,738 | 9.8 | % | 145,246 | 10.0 | % | 120,706 | 9.0 | % | 113,422 | 8.3 | % | 144,135 | 9.9 | % | ||||||||||||||||
| Noncore Deposits | 490,783 | 33.1 | % | 487,547 | 33.7 | % | 434,825 | 32.4 | % | 452,904 | 33.3 | % | 498,001 | 34.3 | % | ||||||||||||||||
| Total Deposits | $ | 1,480,572 | 100.0 | % | $ | 1,447,591 | 100.0 | % | $ | 1,340,389 | 100.0 | % | $ | 1,360,964 | 100.0 | % | $ | 1,453,585 | 100.0 | % | |||||||||||
| FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10 | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||
| 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | ||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||||
| Allowance for Credit Losses | ||||||||||||||||||||||
| Balance at beginning of period | $ | 15,948 | $ | 16,042 | $ | 16,048 | $ | 15,291 | $ | 15,284 | ||||||||||||
| CECL transition provision | - | - | - | - | - | |||||||||||||||||
| Provision for credit losses | - | - | 200 | 743 | - | |||||||||||||||||
| Charge-offs | - | (108 | ) | (257 | ) | - | (2 | ) | ||||||||||||||
| Recoveries | 11 | 14 | 51 | 14 | 9 | |||||||||||||||||
| Balance at the end of period | $ | 15,959 | $ | 15,948 | $ | 16,042 | $ | 16,048 | $ | 15,291 | ||||||||||||
| Nonperforming Assets:¹ | ||||||||||||||||||||||
| Over 90 days still accruing | $ | 1,819 | $ | 994 | $ | - | $ | 1,605 | $ | 399 | ||||||||||||
| Nonaccrual loans | 9,711 | 7,043 | 5,797 | 2,842 | 2,030 | |||||||||||||||||
| Total nonperforming loans | 11,530 | 8,037 | 5,797 | 4,447 | 2,429 | |||||||||||||||||
| Other real estate owned | $ | 521 | 521 | - | - | 55 | ||||||||||||||||
| Total nonperforming assets | $ | 12,051 | $ | 8,558 | $ | 5,797 | $ | 4,447 | $ | 2,484 | ||||||||||||
| Classified Assets:¹ | ||||||||||||||||||||||
| Substandard | $ | 22,077 | $ | 15,980 | $ | 12,762 | $ | 11,912 | $ | 11,063 | ||||||||||||
| Doubtful | - | - | - | - | - | |||||||||||||||||
| Loss | ||||||||||||||||||||||
| Total classified loans | $ | 22,077 | $ | 15,980 | $ | 12,762 | $ | 11,912 | $ | 11,063 | ||||||||||||
| Other real estate owned | $ | 521 | 521 | - | - | 55 | ||||||||||||||||
| Total classified assets | $ | 22,598 | $ | 16,501 | $ | 12,762 | $ | 11,912 | $ | 11,118 | ||||||||||||
| Performing modified loans:¹ | $ | 649 | $ | 452 | $ | 464 | $ | 3,811 | $ | 3,336 | ||||||||||||
| Delinquent Loans:¹ | ||||||||||||||||||||||
| Loans 30-89 days past due | $ | 7,614 | $ | 4,308 | $ | 8,613 | $ | 16,907 | $ | 5,981 | ||||||||||||
| 90 days or more past due and still accruing | 1,819 | 994 | - | 1,605 | 399 | |||||||||||||||||
| Nonaccrual | 9,711 | 7,043 | 5,797 | 2,842 | 2,030 | |||||||||||||||||
| Total delinquent loans | $ | 19,144 | $ | 12,345 | $ | 14,410 | $ | 21,354 | $ | 8,410 | ||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||
| Net (recoveries) charge-offs to average loans² | 0.00 | % | 0.03 | % | 0.06 | % | 0.00 | % | 0.00 | % | ||||||||||||
| Nonaccrual loans to loans held-for-investment | 0.78 | % | 0.58 | % | 0.47 | % | 0.24 | % | 0.17 | % | ||||||||||||
| Nonperforming loans to loans held-for-investment | 0.93 | % | 0.66 | % | 0.47 | % | 0.37 | % | 0.20 | % | ||||||||||||
| Nonperforming assets to total assets | 0.66 | % | 0.48 | % | 0.35 | % | 0.27 | % | 0.14 | % | ||||||||||||
| Classified loans to loans held-for-investment | 1.78 | % | 1.31 | % | 1.04 | % | 1.00 | % | 0.92 | % | ||||||||||||
| Classified loans to Tier 1 and ACL | 8.22 | % | 6.05 | % | 4.93 | % | 4.69 | % | 4.45 | % | ||||||||||||
| Classified assets to total assets | 1.24 | % | 0.93 | % | 0.77 | % | 0.71 | % | 0.63 | % | ||||||||||||
| Classified assets to Tier 1 and ACL | 8.42 | % | 6.25 | % | 4.93 | % | 4.69 | % | 4.47 | % | ||||||||||||
| ACL to loans held-for-investment | 1.29 | % | 1.30 | % | 1.31 | % | 1.34 | % | 1.27 | % | ||||||||||||
| ACL to nonaccrual loans | 164.34 | % | 226.44 | % | 276.73 | % | 564.67 | % | 753.25 | % | ||||||||||||
| ACL to nonperforming loans | 138.41 | % | 198.43 | % | 276.73 | % | 360.87 | % | 629.52 | % | ||||||||||||
| ACL to nonperforming assets | 132.43 | % | 186.35 | % | 276.73 | % | 360.87 | % | 615.58 | % | ||||||||||||
| Texas ratio ³ | 4.49 | % | 3.24 | % | 2.24 | % | 1.75 | % | 1.00 | % | ||||||||||||
| 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 | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||
| Regulatory | BASEL III | |||||||||||||||||||||||||||
| Requirement | Fully Phased In | 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||||||||
| Leverage ratio | ||||||||||||||||||||||||||||
| Company | N/A | N/A | 14.12 | % | 14.64 | % | 14.51 | % | 13.85 | % | 12.98 | % | ||||||||||||||||
| Bank | 5.00 | % | 4.00 | % | 14.07 | % | 14.58 | % | 14.45 | % | 13.84 | % | 12.96 | % | ||||||||||||||
| Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||||||||||
| Company | N/A | N/A | 19.02 | % | 19.03 | % | 18.36 | % | 18.67 | % | 18.08 | % | ||||||||||||||||
| Bank | 6.50 | % | 7.00 | % | 18.95 | % | 18.95 | % | 18.28 | % | 18.65 | % | 18.05 | % | ||||||||||||||
| Tier 1 risk-based capital ratio | ||||||||||||||||||||||||||||
| Company | N/A | N/A | 19.02 | % | 19.03 | % | 18.36 | % | 18.67 | % | 18.08 | % | ||||||||||||||||
| Bank | 8.00 | % | 8.50 | % | 18.95 | % | 18.95 | % | 18.28 | % | 18.65 | % | 18.05 | % | ||||||||||||||
| Total risk-based capital ratio | ||||||||||||||||||||||||||||
| Company | N/A | N/A | 20.23 | % | 20.26 | % | 19.59 | % | 19.92 | % | 19.30 | % | ||||||||||||||||
| Bank | 10.00 | % | 10.50 | % | 20.16 | % | 20.18 | % | 19.50 | % | 19.91 | % | 19.27 | % | ||||||||||||||
| Tangible common equity/total assets | 13.93 | % | 14.03 | % | 14.70 | % | 14.25 | % | 13.27 | % | ||||||||||||||||||
| Tangible common equity per share | $ | 23.85 | $ | 23.44 | $ | 22.94 | $ | 22.49 | $ | 22.03 | ||||||||||||||||||
| FIVE-QUARTER MARGIN ANALYSIS (Unaudited) - Table 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| 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 | Checked | |||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Receivable¹ | $ | 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 | % | $ | 1,410,971 | $ | 24,926 | 7.01 | % | ||||||||||||||||||||
| Investment securities ² | 62,714 | 696 | 4.42 | % | 68,198 | 734 | 4.28 | % | 70,052 | 723 | 4.15 | % | 59,554 | 575 | 3.88 | % | 60,094 | 563 | 3.72 | % | ||||||||||||||||||||||||||||||
| Interest-earning deposits at the FRB and other banks | 253,524 | 3,048 | 4.78 | % | 158,127 | 2,139 | 5.38 | % | 146,956 | 1,995 | 5.46 | % | 207,155 | 2,817 | 5.47 | % | 288,769 | 3,973 | 5.46 | % | ||||||||||||||||||||||||||||||
| Other earning assets | 11,011 | 211 | 7.62 | % | 11,011 | 200 | 7.23 | % | 11,011 | 200 | 7.31 | % | 11,011 | 214 | 7.82 | % | 11,011 | 212 | 7.64 | % | ||||||||||||||||||||||||||||||
| Total interest-earning assets ² | 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 | % | 1,770,845 | 29,674 | 6.65 | % | ||||||||||||||||||||||||||||||
| NONINTEREST-EARNING ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 12,349 | 12,527 | 12,907 | 12,172 | 12,567 | |||||||||||||||||||||||||||||||||||||||||||||
| Other noninterest-earning assets | 35,479 | 34,395 | 33,263 | 31,967 | 32,985 | |||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest-earning assets | 47,828 | 46,922 | 46,170 | 44,139 | 45,552 | |||||||||||||||||||||||||||||||||||||||||||||
| Less: Allowance for credit losses | (15,953 | ) | (16,024 | ) | (16,058 | ) | (15,322 | ) | (15,291 | ) | ||||||||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $ | 1,791,340 | $ | 1,695,357 | $ | 1,676,589 | $ | 1,722,461 | $ | 1,801,106 | ||||||||||||||||||||||||||||||||||||||||
| INTEREST-BEARING DEPOSITS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 11,147 | $ | 6 | 0.21 | % | $ | 11,007 | $ | 6 | 0.22 | % | $ | 11,864 | $ | 6 | 0.20 | % | $ | 12,680 | $ | 6 | 0.19 | % | $ | 12,657 | $ | 7 | 0.22 | % | ||||||||||||||||||||
| Money market | 244,258 | 2,508 | 4.08 | % | 236,834 | 2,555 | 4.29 | % | 230,261 | 2,272 | 3.97 | % | 229,441 | 2,285 | 4.01 | % | 222,289 | 2,158 | 3.85 | % | ||||||||||||||||||||||||||||||
| Savings | 81,423 | 661 | 3.23 | % | 79,289 | 689 | 3.46 | % | 82,215 | 700 | 3.42 | % | 84,854 | 724 | 3.43 | % | 82,403 | 664 | 3.20 | % | ||||||||||||||||||||||||||||||
| Time deposits | 815,866 | 9,828 | 4.79 | % | 767,607 | 9,536 | 4.94 | % | 759,954 | 9,296 | 4.92 | % | 801,122 | 9,523 | 4.78 | % | 824,900 | 9,515 | 4.58 | % | ||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 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 | % | 1,142,249 | 12,344 | 4.29 | % | ||||||||||||||||||||||||||||||
| Borrowings | 50,001 | 118 | 0.94 | % | 50,000 | 118 | 0.94 | % | 50,013 | 117 | 0.94 | % | 50,000 | 117 | 0.94 | % | 50,001 | 118 | 0.94 | % | ||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 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 | % | 1,192,250 | 12,462 | 4.15 | % | ||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 309,662 | 280,670 | 279,765 | 284,867 | 350,656 | |||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 26,090 | 21,376 | 19,287 | 21,112 | 25,602 | |||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' equity | 252,893 | 248,574 | 243,230 | 238,385 | 232,598 | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 1,791,340 | $ | 1,695,357 | $ | 1,676,589 | $ | 1,722,461 | $ | 1,801,106 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income² | $ | 15,697 | $ | 15,526 | $ | 15,414 | $ | 15,857 | $ | 17,212 | ||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 2.18 | % | 2.32 | % | 2.40 | % | 2.45 | % | 2.50 | % | ||||||||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 1.37 | % | 1.39 | % | 1.37 | % | 1.32 | % | 1.36 | % | ||||||||||||||||||||||||||||||||||||||||
| Net interest margin² | 3.55 | % | 3.71 | % | 3.77 | % | 3.77 | % | 3.86 | % | ||||||||||||||||||||||||||||||||||||||||
| Cost of deposits | $ | 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 | % | $ | 1,492,905 | $ | 12,344 | 3.28 | % | ||||||||||||||||||||
| Cost of funds | $ | 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 | % | $ | 1,542,906 | $ | 12,462 | 3.20 | % | ||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30,2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
| Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||||||
| Contractual yield | $ | 24,036 | 6.68 | % | $ | 24,544 | 6.84 | % | $ | 24,271 | 6.88 | % | $ | 24,138 | 6.86 | % | $ | 24,235 | 6.81 | % | ||||||||||||||||||
| SBA discount accretion | 818 | 0.23 | % | 806 | 0.23 | % | 736 | 0.21 | % | 926 | 0.26 | % | 845 | 0.24 | % | |||||||||||||||||||||||
| Prepayment penalties and late fees | 64 | 0.02 | % | 184 | 0.05 | % | 36 | 0.01 | % | 67 | 0.01 | % | 40 | 0.01 | % | |||||||||||||||||||||||
| Amortization of net deferred costs | (55 | ) | -0.02 | % | (177 | ) | -0.05 | % | (156 | ) | -0.04 | % | (225 | ) | -0.06 | % | (194 | ) | -0.05 | % | ||||||||||||||||||
| As reported yield on loans | $ | 24,863 | 6.91 | % | $ | 25,357 | 7.07 | % | $ | 24,887 | 7.06 | % | $ | 24,906 | 7.07 | % | $ | 24,926 | 7.01 | % | ||||||||||||||||||
| MARGIN ANALYSIS (Unaudited) - Table 14 | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Twelve Months Ended | |||||||||||||||||||
| December 31, 2024 | December 31, 2023 | ||||||||||||||||||
| Avg Balance | Interest | Yield | Avg Balance | Interest | Yield | ||||||||||||||
| Number of Days in the Period | |||||||||||||||||||
| INTEREST-EARNING ASSETS | |||||||||||||||||||
| Loans Receivable ¹ | $ | 1,423,464 | $ | 100,013 | 7.03 | % | $ | 1,443,379 | $ | 98,700 | 6.84 | % | |||||||
| Investment securities ² | 65,131 | 2,728 | 4.19 | % | 65,666 | 2,312 | 3.52 | % | |||||||||||
| Interest-earning deposits at the FRB and other banks | 191,519 | 9,999 | 5.22 | % | 258,060 | 13,441 | 5.21 | % | |||||||||||
| Other earning assets | 11,011 | 825 | 7.49 | % | 10,745 | 735 | 6.84 | % | |||||||||||
| Total interest-earning assets ² | 1,691,125 | 113,565 | 6.72 | % | 1,777,850 | 115,188 | 6.48 | % | |||||||||||
| NONINTEREST-EARNING ASSETS | |||||||||||||||||||
| Cash and due from banks | 12,489 | 13,161 | |||||||||||||||||
| Other noninterest-earning assets | 33,538 | 34,218 | |||||||||||||||||
| Total noninterest-earning assets | 46,027 | 47,379 | |||||||||||||||||
| Less: Allowance for credit losses | (15,840 | ) | (15,522 | ) | |||||||||||||||
| TOTAL ASSETS | $ | 1,721,312 | $ | 1,809,707 | |||||||||||||||
| INTEREST-BEARING DEPOSITS | |||||||||||||||||||
| Interest-bearing demand | $ | 11,671 | $ | 24 | 0.21 | % | $ | 14,367 | $ | 29 | 0.20 | % | |||||||
| Money market | 235,228 | 9,620 | 4.09 | % | 214,509 | 6,948 | 3.24 | % | |||||||||||
| Savings | 81,936 | 2,774 | 3.39 | % | 68,166 | 1,646 | 2.41 | % | |||||||||||
| Time deposits | 786,168 | 38,183 | 4.86 | % | 820,452 | 32,909 | 4.01 | % | |||||||||||
| Total interest-bearing deposits | 1,115,003 | 50,601 | 4.54 | % | 1,117,494 | 41,532 | 3.72 | % | |||||||||||
| Borrowings | 50,004 | 470 | 0.94 | % | 50,001 | 470 | 0.94 | % | |||||||||||
| Total interest-bearing liabilities | 1,165,007 | 51,071 | 4.38 | % | 1,167,495 | 42,002 | 3.60 | % | |||||||||||
| Noninterest-bearing deposits | 288,776 | 396,067 | |||||||||||||||||
| Other liabilities | 21,731 | 22,763 | |||||||||||||||||
| Stockholders' equity | 245,798 | 223,382 | |||||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 1,721,312 | $ | 1,809,707 | |||||||||||||||
| Net interest income² | $ | 62,494 | $ | 73,186 | |||||||||||||||
| Net interest spread | 2.34 | % | 2.88 | % | |||||||||||||||
| Effect of noninterest-bearing sources | 1.36 | % | 1.24 | % | |||||||||||||||
| Net interest margin² | 3.70 | % | 4.12 | % | |||||||||||||||
| Cost of deposits | $ | 1,403,779 | $ | 50,601 | 3.60 | % | $ | 1,513,561 | $ | 41,532 | 2.74 | % | |||||||
| Cost of funds | $ | 1,453,783 | $ | 51,071 | 3.51 | % | $ | 1,563,562 | $ | 42,002 | 2.69 | % | |||||||
| 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) | ||||||||||||||||
| Twelve Months Ended | ||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||
| Amount | Yield | Amount | Yield | |||||||||||||
| Contractual yield | $ | 96,989 | 6.81 | % | $ | 95,577 | 6.62 | % | ||||||||
| SBA discount accretion | 3,286 | 0.24 | % | 3,827 | 0.27 | % | ||||||||||
| Prepayment penalties and late fees | 351 | 0.02 | % | 148 | 0.01 | % | ||||||||||
| Amortization of net deferred costs | (613 | ) | -0.04 | % | (852 | ) | -0.06 | % | ||||||||
| As reported yield on loans | $ | 100,013 | 7.03 | % | $ | 98,700 | 6.84 | % | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130070963/en/
Contacts
Richard Koh, EVP & CFO
(323) 988-3037
RichardK@cbb-bank.com