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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 鈥淐BB Bank鈥� (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.鈥� He continued, 鈥淥ur 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.鈥�

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鈥檚 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 (鈥淎CL鈥�) 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鈥� 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鈥檚 and the Bank鈥檚 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鈥檚 Leverage Ratios were 14.04% and 14.00% for the Company and the Bank, respectively. The Bank is considered 鈥淲ell Capitalized鈥� 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 鈥淐BB Bank.鈥� 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 under the tab 鈥淎bout Us鈥� and select 鈥淚nvestor Relations鈥� 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 鈥淐ompany鈥�) 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 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渆stimate,鈥� or words of similar meaning, or future or conditional verbs such as 鈥渨ill,鈥� 鈥渨ould,鈥� 鈥渟hould,鈥� 鈥渃ould,鈥� or 鈥渕ay.鈥� These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management鈥檚 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鈥檚 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鈥檚 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.