Bank of San Francisco Reports Fourth Quarter and Year Ended December 31, 2025 Financial Results

Rhea-AI Summary

Bank of San Francisco (OTCQX: BSFO) reported unaudited net income of $2.2M and $1.03 diluted EPS for Q4 2025, and net income of $6.8M, or $3.17 diluted EPS for the year ended December 31, 2025.

Key trends: total deposits $637.6M (+20% YoY), total loans $623.0M (+23% YoY), NIM 4.32% for 2025, pre-tax pre-provision income up 17% YoY, and non-performing loans down to 0.09% of assets. The bank opened a new Laurel Village branch and noted higher non-interest expenses tied to hiring and the branch opening.

Positive

• Total loans +23% year-over-year to $623.0M at 12/31/2025
• Total deposits +20% year-over-year to $637.6M at 12/31/2025
• Pre-tax, pre-provision income +17% year-over-year to $10.7M for 2025
• Non-performing loans improved to 0.09% of total assets at 12/31/2025

Negative

• Non-interest expenses +17% year-over-year to $18.7M for 2025
• Quarter non-interest expenses rose ~10% driven by performance compensation, hiring, and branch opening

SAN FRANCISCO, CA / ACCESS Newswire / February 2, 2026 / Bank of San Francisco ("Bank") (OTCQX:BSFO) today reported unaudited net income of $2.2 million, or $1.03 per diluted share for the three months ended December 31, 2025, compared to $1.8 million, or $0.86 per diluted share for the three months ended September 30, 2025, and $1.6 million, or $0.77 per diluted share for the three months ended December 31, 2024. Net income for the year ended December 31, 2025, was $6.8 million, or $3.17 per diluted share compared to $6.5 million, or $3.10 per diluted share for the year ended December 31, 2024.

"Our fourth quarter and full-year results reflect the continued execution of our growth strategy and accelerating performance," said William Keller, Chief Executive Officer. "During 2025, the Bank delivered balanced growth, with loans and deposits increasing by 20% or more, while maintaining excellent credit quality and margin discipline. What truly differentiates Bank of San Francisco is a deeply personal client experience built on outstanding service and tailored financial solutions. We are gratified that our clients appreciate our approach and the commitment of our team, and we will continue to invest in people, systems, and community presence to ensure that experience remains exceptional as we grow."

"We are pleased to announce the opening of our Laurel Village office in the Pacific Heights area of San Francisco," said Bill Ward, President and Chief Operating Officer. "This new location is a tangible example of how we approach growth. We expand thoughtfully, where our clients live and work, and invest in teams and infrastructure that allow us to deliver the same high-touch, responsive service no matter our size. We look forward to celebrating the office's official grand opening with the community this spring."

Financial Highlights

• Total deposits were $637.6 million at December 31, 2025, an increase of $31.6 million, or 5% from September 30, 2025, and $106.8 million, or 20% from December 31, 2024.

• Non-interest-bearing demand deposits were $265.5 million at December 31, 2025, an increase of $27.2 million, or 11% from September 30, 2025, and $68.0 million, or 34% from December 31, 2024. Non-interest-bearing deposits accounted for 41.6% of total deposits at December 31, 2025, compared to 37.2% at December 31, 2024.

• Interest-bearing deposits were $372.1 million at December 31, 2025, an increase of $4.4 million, or 1% from September 30, 2025, and $38.9 million, or 12% from December 31, 2024. The total cost of funds for the quarter ended December 31, 2025, was 1.26%, a decrease of 0.01% from the quarter ended September 30, 2025, and a decrease of 0.12% from the quarter ended December 31, 2024.

• Total loans were $623.0 million at December 31, 2025, an increase of $41.6 million or 7% from September 30, 2025, and an increase of $115.1 million, or 23% from December 31, 2024. During the year, the portfolio mix shifted slightly toward commercial lending, as loans to finance commercial real estate, including multi-family loans increased to 38% of the total loan portfolio at December 31, 2025, compared to 30% at December 31, 2024.

• Credit quality remained strong and improved steadily throughout the year due to payments and the successful resolution of a previously non-performing loan. At December 31, 2025, non-performing loans represented 0.09% of total assets, compared to 0.12% at September 30, 2025, and 0.22% at December 31, 2024.

• The net interest margin (NIM) for the year ended December 31, 2025, was 4.32%, compared to 3.96% for the year ended December 31, 2024. For the quarter ended December 31, 2025, the NIM was 4.44%, compared to 4.33% for the quarter ended September 30, 2025.

• Non-interest expenses for the year ended December 31, 2025, totaled $18.7 million, an increase of $2.7 million, or 17% from the year ended December 31, 2024. Non-interest expenses for the quarter ended December 31, 2025, totaled $5.1 million, an increase of $452,000, or 10% from the quarter ended September 30, 2025, and an increase of $460,000, or 10% from the quarter ended December 31, 2024. The fourth quarter increase was largely driven by performance compensation, new hires, and costs associated with the coming branch opening.

• Pre-tax, pre-provision income for the year ended December 31, 2025, totaled $10.7 million; an increase of $1.6 million, or 17% from the year ended December 31, 2024. Pre-tax, pre-provision income for the quarter ended December 31, 2025, totaled $3.3 million, an increase of $357,000, or 12% from the quarter ended September 30, 2025, and an increase of $1.3 million, or 64% from the quarter ended December 31, 2024.

• Total shareholders' equity was $83.1 million at December 31, 2025, an increase of $2.4 million, or 3% from September 30, 2025, and an increase of $7.7 million, or 10% from December 31, 2024.

• Book value per share was $37.94 at December 31, 2025, an increase of $0.77, or 2% from September 30, 2025, and an increase of $2.69, or 8% from December 31, 2024.

• The Bank remained well-capitalized, with all capital ratios exceeding regulatory requirements, including a Tier 1 Leverage Ratio of 11.16%, Tier 1 Risk-Based Capital and Common Equity Tier 1 Ratios of 16.14%, and a Total Risk-Based Capital Ratio of 17.39%.

"The consistency of our results reflects the strength of our culture and our client relationships," Ward added. "Sustained loan and deposit growth, paired with strong credit performance, is the result of teams who know their clients well and serve them exceptionally well."

# # #

Non-GAAP Financial Measure

To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use pre-tax, pre-provision income as a non-GAAP financial measure. Our non-GAAP financial measure does have limitations as analytical tools, and you should not consider pre-tax, pre-provision income in isolation or as a substitute for an analysis of our results under GAAP.

We believe these non-GAAP financial measures provide management and investors with additional information about the financial performance of our business and enable comparison of financial results between periods where certain items may vary independently of business performance. We believe pre-tax, pre-provision income is an important measure because it reflects the financial performance of our business operations. Pre-tax, pre-provision income is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax expense from net income.

About Bank of San Francisco

Bank of San Francisco is a locally owned and operated commercial and private bank built on personal relationships and tailored solutions. Since 2005, the Bank has worked with business owners, real estate investors, nonprofits, and families that value direct access to experienced bankers who understand their business and personal needs.

Bank of San Francisco combines high-touch service with select conveniences, including a robust suite of treasury management services, and worldwide ATM fee reimbursement. Growth has been fueled by referrals from long-time loyal clients, colleagues, and community partners. Learn more at www.bankbsf.com.

Forward-Looking Statements

This press release contains certain forward-looking statements that involve risks and uncertainties, including statements relating to new products and anticipated growth. Forward-looking statements are those that are not statements of historical fact and may be identifiable by use of the words "believe," "expect," "intend," "anticipate," "plan," "estimate," "project," or similar expressions. These statements are based on current expectations, estimates and projections about Bank of San Francisco's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties may affect the operations, performance, development, growth, capital needs and results of operations of Bank of San Francisco, and include, but are not limited to, local and national economic conditions; interest rate changes; inflation and monetary policy; changes in the financial performance and/or condition of our loan and deposit clients; changes in the levels of performing and nonperforming assets and charge-offs; timely implementation by Bank of San Francisco of new products and technology enhancements; the impact of competitive products, services and pricing; acts of war, terrorism or civil unrest; the soundness or failure of other financial institutions that may directly or indirectly affect the Bank; potential deposit withdrawals triggered by client concerns following the failures of or risks at other depository institutions; the effect of the COVID-19 pandemic and other infectious illness outbreaks that may arise in the future; natural disasters, such as earthquakes; clients' requirements and preferences; federal, state and local legislation and regulatory developments; the ability to retain or increase market share, retain or grow client relationships and control expenses; changes in regulatory or generally accepted accounting principles and other similar matters. Readers are cautioned not to place undue reliance on forward-looking statements, which are subject to influence by the foregoing risk factors and unanticipated future events. Actual results, accordingly, may differ materially from management expectations. Bank of San Francisco undertakes no obligation to update such forward-looking statements except as required by law.

Bank of San Francisco
Balance Sheets (Unaudited)
($000, except share and per share amounts)
		For the Periods Ended																				Year Over Year Change
Assets		12/31/2025				9/30/2025				6/30/2025				3/31/2025				12/31/2024				$					%
Cash and due from banks		$	10,899			$	6,604			$	8,754			$	9,076			$	6,023			$	4,876				81	%
Interest bearing deposits in banks			60,827				74,188				78,541				69,116				69,200				(8,373	)			-12	%
Total cash and cash equivalents			71,726				80,792				87,295				78,192				75,223				(3,497	)			-5	%
Securities available-for-sale, at fair value			26,025				25,038				21,859				21,819				23,623				2,402				10	%
Loans, net of deferred costs/fees			623,030				581,443				550,910				530,817				507,970				115,060				23	%
Allowance for credit losses			(7,659	)			(7,518	)			(7,258	)			(6,968	)			(6,662	)			(997	)			15	%
Loans, net of allowance of credit losses			615,371				573,925				543,652				523,849				501,308				114,063				23	%
Premises and equipment, net			2,590				1,632				1,501				1,351				1,411				1,179				84	%
Accrued interest receivable & other assets			17,342				17,021				17,608				13,696				13,872				3,470				25	%
Total Assets		$	733,054			$	698,408			$	671,915			$	638,907			$	615,437			$	117,617				19	%
Liabilities
Non-interest bearing deposits		$	265,492			$	238,330			$	229,036			$	199,783			$	197,533			$	67,959				34	%
Interest bearing deposits			372,073				367,669				353,188				353,748				333,202				38,871				12	%
Total deposits			637,565				605,999				582,224				553,531				530,735				106,830				20	%
Accrued interest payable and other liabilities			12,432				11,795				11,171				8,634				9,381				3,051				33	%
Total Liabilities			649,997				617,794				593,395				562,165				540,116				109,881				20	%
Shareholders' equity
Common stock			29,490				29,261				29,075				28,944				28,757				733				3	%
Retained earnings			53,521				51,309				49,475				47,841				46,743				6,778				15	%
Accumulated other comprehensive income			46				44				(30	)			(43	)			(179	)			225				-126	%
Total shareholders' equity			83,057				80,614				78,520				76,742				75,321				7,736				10	%
Total Liabilities & Shareholders' Equity		$	733,054			$	698,408			$	671,915			$	638,907			$	615,437			$	117,617				19	%
Book Value per Common Share		$	37.94			$	37.17			$	36.33			$	35.35			$	35.25			$	2.69				8	%
Total Common Shares Outstanding			2,188,985				2,168,841				2,161,024				2,170,866				2,136,822				52,163				2	%
Capital Ratios
Tier 1 Leverage ratio			11.16	%			11.54	%			11.83	%			11.41	%			12.05	%			-0.89	%			-7	%
Tier 1 RBC ratio			16.14	%			17.08	%			17.68	%			18.16	%			18.69	%			-2.55	%			-14	%
Common Equity Tier 1 RBC ratio			16.14	%			17.08	%			17.68	%			18.16	%			18.69	%			-2.55	%			-14	%
Total Risk-Based Capital (RBC) ratio			17.39	%			18.34	%			18.93	%			19.41	%			19.95	%			-2.56	%			-13	%
Other Ratios
Non-interest bearing to Total Deposits			41.64	%			39.33	%			39.34	%			36.09	%			37.22	%			4.42	%			12	%
Loan to Deposit ratio			97.72	%			95.95	%			94.62	%			95.90	%			95.71	%			2.01	%			2	%
Allowance for Credit Losses to Total Loans			1.23	%			1.29	%			1.32	%			1.31	%			1.31	%			-0.08	%			-6	%
ACL to Nonperforming Loans			1099.23	%			868.68	%			642.31	%			593.21	%			490.61	%			608.62	%			124	%
Nonperforming Assets to Total Assets			0.09	%			0.12	%			0.17	%			0.18	%			0.22	%			-0.13	%			-58	%
n/m - Not Meaningful

Bank of San Francisco
Statement of Income (Unaudited)
($000, except share and per share amounts)
		Three Months Ended
		12/31/2025				9/30/2025				6/30/2025				3/31/2025				12/31/2024				$				%
Interest on loans, including fees		$	8,904			$	8,048			$	7,596			$	7,071			$	7,152			$	1,752				24	%
Interest on deposits in banks			968				1,021				928				677				881				87				10	%
Interest on investment securities			247				208				210				221				217				30				14	%
Other interest income			79				77				72				74				74				5				7	%
Total interest income			10,198				9,354				8,806				8,043				8,324				1,874				23	%
Deposits interest expense			2,054				1,936				1,868				1,719				1,878				176				9	%
Net interest income			8,144				7,418				6,938				6,324				6,446				1,698				26	%
Provision (reversal) for credit losses			300				330				290				300				(320	)			620				-194	%
Net interest income after provision			7,844				7,088				6,648				6,024				6,766				1,078				16	%
Service charges on deposits			129				111				108				102				112				17				15	%
Other non-interest income			80				15				(5	)			61				46				34				74	%
Total non-interest income			209				126				103				163				158				51				32	%
Salaries and employee benefits expense			3,258				2,720				2,885				3,033				3,144				114				4	%
Occupancy			372				366				336				291				303				69				23	%
Information Technology and Equipment			342				340				324				315				301				41				14	%
Other operating expense			1,087				1,181				880				984				851				236				28	%
Total non-interest expense			5,059				4,607				4,425				4,623				4,599				460				10	%
Income before income taxes			2,994				2,607				2,326				1,564				2,325				669				29	%
Income tax expense			783				772				692				466				697				86				12	%
Net income		$	2,211			$	1,835			$	1,634			$	1,098			$	1,628			$	583				36	%
Basic Earnings per Share		$	1.05			$	0.87			$	0.78			$	0.53			$	0.78			$	0.27				35	%
Average Shares Outstanding			2,109,522				2,108,663				2,097,194				2,090,394				2,089,978				19,544				1	%
Diluted Earnings per Share		$	1.03			$	0.86			$	0.77			$	0.52			$	0.77			$	0.26				34	%
Average Shares Outstanding			2,136,558				2,134,102				2,124,402				2,130,962				2,110,598				25,960				1	%
Annualized Performance Ratios
Return on Average Assets			1.19	%			1.05	%			0.98	%			0.70	%			1.06	%			0.13	%			12	%
Return on Average Common Equity			10.81	%			9.22	%			8.32	%			5.78	%			8.86	%			1.95	%			22	%
Net Interest Margin			4.44	%			4.33	%			4.28	%			4.19	%			4.18	%			0.26	%			6	%
Cost of Funds			1.26	%			1.27	%			1.30	%			1.30	%			1.38	%			-0.12	%			-9	%
Efficiency Ratio			60.57	%			61.07	%			62.85	%			71.27	%			69.64	%			-9.07	%			-13	%
n/m - Not Meaningful
Reconciliation of GAAP to Non-GAAP Financial Measures
Net income		$	2,211			$	1,835			$	1,634			$	1,098			$	1,628			$	583				36	%
Provision (reversal) for credit losses			300				330				290				300				(320	)			620				-194	%
Income tax expense			783				772				692				466				697				86				12	%
Pre-tax, pre-provision income		$	3,294			$	2,937			$	2,616			$	1,864			$	2,005			$	1,289				64	%

Bank of San Francisco
Statement of Income (Unaudited)
($000, except share and per share amounts)
		Twelve Months Ended								Year Over Year Change
		12/31/2025				12/31/2024				$				%
Interest on loans, including fees		$	31,619			$	27,679			$	3,940				14	%
Interest on deposits in banks			3,594				4,794				(1,200	)			-25	%
Interest on investment securities			886				283				603				213	%
Other interest income			302				294				8				3	%
Total interest income			36,401				33,050				3,351				10	%
Deposits interest expense			7,577				8,881				(1,304	)			-15	%
Net interest income			28,824				24,169				4,655				19	%
Provision (Reversal) for credit losses			1,220				(180	)			1,400				-778	%
Net interest income after provision			27,604				24,349				3,255				13	%
Service charges on deposits			450				395				55				14	%
Gains on sale of loans			-				306				(306	)			-100	%
Other non-interest income			151				229				(78	)			-34	%
Total non-interest income			601				930				(329	)			-35	%
Salaries and employee benefits expense			11,896				10,542				1,354				13	%
Occupancy			1,365				1,239				126				10	%
Information Technology and Equipment			1,321				1,208				113				9	%
Other operating expense			4,132				2,982				1,150				39	%
Total non-interest expense			18,714				15,971				2,743				17	%
Income before income taxes			9,491				9,308				183				2	%
Income tax expense			2,713				2,770				(57	)			-2	%
Net income		$	6,778			$	6,538			$	240				4	%
Basic Earnings per Share		$	3.22			$	3.14			$	0.08				3	%
Average Shares Outstanding			2,103,241				2,084,423				18,818				1	%
Diluted Earnings per Share		$	3.17			$	3.10			$	0.07				2	%
Average Shares Outstanding			2,140,169				2,107,815				32,354				2	%
Annualized Performance Ratios
Return on Average Assets			0.99	%			1.05	%			-0.06	%			-6	%
Return on Average Common Equity			8.56	%			9.10	%			-0.54	%			-6	%
Net Interest Margin			4.32	%			3.96	%			0.36	%			9	%
Cost of Funds			1.28	%			1.63	%			-0.35	%			-21	%
Efficiency Ratio			63.60	%			63.63	%			-0.03	%			0	%
n/m - Not Meaningful
Reconciliation of GAAP to Non-GAAP Financial Measures
Net income		$	6,778			$	6,538			$	240				4	%
Provision (reversal) for credit losses			1,220				(180	)			1,400				-778	%
Income tax expense			2,713				2,770				(57	)			-2	%
Pre-tax, pre-provision income		$	10,711			$	9,128			$	1,583				17	%

Media Contact
Leslie Katter
media@bankbsf.com

SOURCE: Bank of San Francisco

View the original press release on ACCESS Newswire

FAQ

What did Bank of San Francisco (BSFO) report for Q4 2025 net income and EPS?

The bank reported $2.2M net income and $1.03 diluted EPS for Q4 2025. According to the company, this compares to $1.8M and $0.86 EPS in Q3 2025 and $1.6M and $0.77 EPS in Q4 2024.

How much did Bank of San Francisco (BSFO) loans and deposits grow in 2025?

Total loans increased 23% YoY and total deposits increased 20% YoY in 2025. According to the company, loans reached $623.0M and deposits reached $637.6M at December 31, 2025.

What was Bank of San Francisco's (BSFO) net interest margin and credit quality in 2025?

The bank reported a 2025 NIM of 4.32% and non-performing loans of 0.09% of assets. According to the company, credit quality improved during the year with a successful resolution of a prior non-performing loan.

Why did Bank of San Francisco's (BSFO) non-interest expenses rise in 2025?

Non-interest expenses increased 17% YoY to $18.7M for 2025. According to the company, the increase was driven by performance compensation, new hires, and costs tied to opening a new branch.

What capital and book value metrics did Bank of San Francisco (BSFO) report at year-end 2025?

Total shareholders' equity was $83.1M and book value per share was $37.94 at December 31, 2025. According to the company, all capital ratios exceeded regulatory requirements, including a Tier 1 Leverage Ratio of 11.16%.