CBB Bancorp, Inc. Reports Second Quarter 2025 Financial Results

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Neutral)

Tags

earnings

07/25/2025 - 09:00 AM

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 $4.4 million for the second quarter 2025, or $0.41 per diluted share compared to $4.5 million in the first quarter 2025, or $0.42 per diluted share.

Second Quarter 2025 Highlights

Net income of $4.4 million, or $0.41 per diluted share
Net interest margin expanded to 3.46%, up from 3.38% in Q1
Efficiency ratio improved to 59.99%
SBA loan sales of $17.6 million with 8.1% average premium
Deposit growth of $47.7 million (3.2% quarter-over-quarter)

Net income for the second quarter 2025 declined slightly compared to the prior quarter, as increased net interest income was offset by a modest rise in noninterest expenses and a decline in noninterest income.

The net interest margin for the second quarter 2025 was 3.46% compared to 3.38% for the first quarter 2025 and 3.77% for the second quarter 2024. The efficiency ratio for the second quarter 2025 was 59.99% compared to 60.41% for the first quarter 2025 and 55.69% for the second quarter 2024.

Richard Koh, President and CEO, said, "Amid ongoing developments around tariffs, trade restrictions, and heightened volatility in capital markets, the near-term outlook remains increasingly uncertain. As a relationship-driven bank, we are well-equipped to navigate these challenges. We remain committed to executing our long-term strategies and delivering exceptional service to our customers."

INCOME STATEMENT

Net Interest Income

Net interest income for the second quarter 2025 was $15.0 million, an increase of $224 thousand or 1.5%, quarter over quarter and a decrease of $317 thousand or 2.1%, compared to the second quarter 2024 due to moderate decrease in average yield on loans.

Net Interest Margin

The net interest margin for the second quarter 2025 was 3.46% compared to 3.38% for the first quarter 2025 and 3.77% for the second quarter 2024. Net interest margin improved by 8 basis points compared to the prior quarter, mainly driven by a 3 basis point increase in the yield on interest-earning assets and a 11 basis point reduction in the cost of deposits. The cost of funds for the second quarter 2025 was 3.29% compared to 3.34% for the first quarter 2025 and 3.52% for the second quarter 2024.

Provision for Credit Losses

Total provision for credit losses of $590 thousand was recorded for the second quarter 2025 compared to $500 thousand in the first quarter 2025.

Provision for credit loss of $200 thousand was recorded for the second quarter 2024.

Noninterest Income

Noninterest income for the second quarter of 2025 was $2.1 million, unchanged from the first quarter of 2025, and $253 thousand lower than the $2.3 million reported in the second quarter of 2024. A loss of $67 thousand was recognized on the sale of other real estate owned (OREO) during the quarter.

Noninterest Expenses

Noninterest expenses totaled $10.3 million for the second quarter of 2025, compared to $10.2 million in the prior quarter and $9.9 million in the second quarter of 2024. The $43 thousand quarter-over-quarter increase was primarily driven by higher marketing and professional fees, partially offset by decreases in insurance and loan-related 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 second quarter 2025 was 29.8% compared to 28.3% for the first quarter 2025 and 28.3% for the second quarter 2024.

BALANCE SHEET

Investment Securities

Investment securities were $65.5 million at June 30, 2025, an increase of $4.0 million or 6.5% from March 31, 2025, and a decrease of $7.5 million or 10.3% from June 30, 2024.

Loans Receivable

Loans receivable, including loans held-for-sale, totaled $1.46 billion as of June 30, 2025, representing an increase of $11.5 million, or 0.8%, from March 31, 2025, and $24.5 million, or 1.7%, from June 30, 2024. The growth was primarily driven by increases in commercial real estate (CRE) loans.

Allowance for Credit Losses and Asset Quality

The Allowance for Credit Losses (“ACL”) was $15.5 million as of June 30, 2025, representing 1.21% of loans held-for-investment, compared to $14.9 million, or 1.18%, at March 31, 2025. At June 30, 2024, the ACL totaled $16.0 million, or 1.31% of loans held-for-investment.

Total nonperforming assets increased to $16.7 million at June 30, 2025, from $11.7 million at March 31, 2025, and $5.8 million a year earlier. ACL coverage of nonperforming assets was over 92% at quarter-end.

Substandard loans increased to $30.4 million as of June 30, 2025, up from $20.8 million in the prior quarter. Delinquent loans declined slightly to $25.2 million, compared to $27.6 million at March 31, 2025.

SBA Loans Held-for-Sale

As of June 30, 2025, total SBA loans held-for-sale were $184.0 million, compared to $194.5 million at March 31, 2025, and $209.1 million at June 30, 2024.

During the second quarter of 2025, the Bank sold $17.6 million in SBA loans at an average premium of 8.1%, compared to $19.8 million sold in the first quarter of 2025, also at an average premium of 8.1%. In the second quarter of 2024, the Bank sold $19.5 million in SBA loans with an average premium of 6.8%.

Deposits

Total deposits were $1.52 billion at June 30, 2025, up $47.7 million or 3.2% from March 31, 2025, and up $184.5 million or 13.8% from June 30, 2024.

Borrowings

As of June 30, 2025, the Bank had no outstanding borrowings, compared to $50.0 million in FHLB advances as of March 31, 2025.

Capital

Stockholders’ equity was $262.0 million at June 30, 2025, which increased $3.5 million or 1.3%, quarter over quarter. Tangible book value per share at June 30, 2025, was $24.51, 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 June 30, 2025.

The Common Equity Tier 1 Risk-Based Capital Ratios at June 30, 2025, were 18.98% and 18.94% for the Company and the Bank, respectively. Total Risk-Based Capital Ratios were 20.13% and 20.09% for the Company and the Bank, respectively. Leverage Ratios were 14.48% for the Company and 14.45% for the Bank. 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 June 30, 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 2Q 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																			Six Months Ended
	June 30,			March 31,			$			%		June 30,			$			%		June 30,			June 30,			$			%
	2025			2025			Change			Change		2024			Change			Change		2025			2024			Change			Change

Interest income	$	27,392		$	27,467		$	(75	)	(0.3	%)	$	27,755		$	(363	)	(1.3	%)	$	54,859		$	56,218		$	(1,359	)	(2.4	%)
Interest expense		12,345			12,644			(299	)	(2.4	%)		12,391			(46	)	(0.4	%)		24,989			25,046			(57	)	(0.2	%)
Net interest income		15,047			14,823			*224*		*1.5*	%		15,364			*(317*	)	*(2.1*	%)		29,870			31,172			*(1,302*	)	*(4.2*	%)

Provision for credit losses		590			500			90		18.0	%		200			390		195.0	%		1,090			600			490		81.7	%
Net interest income after provision for credit losses		14,457			14,323			*134*		*0.9*	%		15,164			*(707*	)	*(4.7*	%)		28,780			30,572			*(1,792*	)	*(5.9*	%)

Gain on sale of loans		900			1,021			(121	)	-11.9	%		1,064			(164	)	748.8	%		1,921			2,553			(632	)	(24.8	%)
Loss on sale of OREO		(67	)		(92	)		25		(27.2	%)		-			(67	)	(100.0	%)		(159	)		(1	)		(158	)	158.00
SBA servicing fee income, net		799			691			108		15.6	%		768			31		4.0	%		1,490			1,401			89		6.4	%
Recovery on impaired servicing liability		-			-			-		-			-			-		-			-			10			(10	)	(100.0	%)
Service charges and other income		450			496			(46	)	(9.3	%)		503			(53	)	(10.5	%)		946			933			13		1.4	%
Noninterest income		2,082			2,116			*(34*	)	*(1.6*	%)		2,335			*(253*	)	*(10.8*	%)		4,198			4,896			*(698*	)	*(14.3*	%)

Salaries and employee benefits		5,779			5,848			(69	)	(1.2	%)		5,927			(148	)	(2.5	%)		11,627			11,951			(324	)	(2.7	%)
Occupancy and equipment		1,293			1,314			(21	)	(1.6	%)		1,114			179		16.1	%		2,607			2,236			371		16.6	%
Marketing expense		404			215			189		87.9	%		403			1		0.2	%		619			805			(186	)	(23.1	%)
Professional expense		619			430			189		44.0	%		440			179		40.7	%		1,049			852			197		23.1	%
Other expenses		2,181			2,426			(245	)	(10.1	%)		1,972			209		10.6	%		4,607			4,056			551		13.6	%
Noninterest expense		10,276			10,233			43		*0.4*	%		9,856			*420*		*4.3*	%		20,509			19,900			*609*		*3.1*	%

Income before income tax provision		6,263			6,206			57		*0.9*	%		7,643			*(1,380*	)	*(18.1*	%)		12,469			15,568			*(3,099*	)	*(19.9*	%)

Income tax provision		1,868			1,753			115		6.6	%		2,163			(295	)	(13.6	%)		3,621			4,416			(795	)	(18.0	%)

Net income	$	4,395		$	4,453		$	*(58*	)	*(1.3*	%)	$	5,480		$	*(1,085*	)	*(19.8*	%)	$	8,848		$	11,152		$	*(2,304*	)	*(20.7*	%)

Effective tax rate		29.83	%		28.25	%		*1.58*	%	*5.59*	%		28.30	%		*1.53*	%	*5.39*	%		29.04	%		28.37	%		*0.67*	%	*2.38*	%

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		10,593,497			10,605,812			(12,315	)	(0.1	%)		10,588,136			5,361		0.1	%		10,599,146			10,558,688			40,458		0.4	%

Basic EPS	$	0.42		$	0.42		$	-		-		$	0.51		$	(0.09	)	(17.6	%)	$	0.84		$	1.05		$	(0.21	)	-20.0	%
Diluted EPS	$	0.41		$	0.42		$	(0.01	)	(2.4	%)	$	0.51		$	(0.10	)	(19.6	%)	$	0.83		$	1.05		$	(0.22	)	(21.0	%)

Return on average assets		0.98	%		0.99	%		(0.01	%)	(1.0	%)		1.31	%		(0.33	%)	(25.2	%)		0.99	%		1.32	%		(0.33	%)	(25.0	%)
Return on average equity		6.76	%		7.01	%		(0.25	%)	(3.6	%)		9.06	%		(2.30	%)	(25.4	%)		6.89	%		9.31	%		(2.42	%)	(26.0	%)

Efficiency ratio¹		59.99	%		60.41	%		(0.42	%)	(0.7	%)		55.69	%		4.30	%	7.7	%		60.20	%		55.17	%		5.03	%	9.1	%
Yield on interest-earning assets²		6.28	%		6.25	%		0.03	%	0.5	%		6.79	%		(0.51	%)	(7.5	%)		6.26	%		6.78	%		(0.52	%)	(7.7	%)
Cost of funds		3.29	%		3.34	%		(0.05	%)	(1.5	%)		3.52	%		(0.23	%)	(6.5	%)		3.31	%		3.50	%		(0.19	%)	(5.4	%)
Net interest margin²		3.46	%		3.38	%		0.08	%	2.4	%		3.77	%		(0.31	%)	(8.2	%)		3.42	%		3.77	%		(0.35	%)	(9.3	%)

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)

	June 30,			March 31,			$			%		June 30,			$			%
	2025			2025			Change			Change		2024			Change			Change
ASSETS
Cash and due from banks	$	11,873		$	12,716		$	(843	)	(6.6	%)	$	11,667		$	206		1.8	%
Interest-earning deposits at the FRB and other banks		235,436			249,535			(14,099	)	(5.7	%)		101,415			134,021		132.2	%
Investment securities¹		65,518			61,521			3,997		6.5	%		73,051			(7,533	)	(10.3	%)
Loans held-for-sale		183,996			194,542			(10,546	)	(5.4	%)		209,144			(25,148	)	(12.0	%)

Loans held-for-investment		1,278,106			1,256,063			22,043		1.8	%		1,228,496			49,610		4.0	%
Less: Allowance for credit losses ("ACL")		(15,461	)		(14,850	)		(611	)	(4.1	%)		(16,042	)		581		3.6	%
Loans held-for-investment, net		1,262,645			1,241,213			*21,432*		*1.7*	%		1,212,454			*50,191*		*4.1*	%

Other real estate owned ("OREO")		2,999			3,130			(131	)	-4.2	%		-			2,999		100.0	%
Restricted stock investments		11,011			11,011			-		-			11,011			-		-
Servicing assets		6,609			6,708			(99	)	(1.5	%)		7,404			(795	)	(10.7	%)
Goodwill		2,185			2,185			-		-			2,185			-		-
Intangible assets		195			205			(10	)	(4.9	%)		235			(40	)	(17.0	%)
Other assets		32,359			31,304			1,055		3.4	%		26,343			6,016		22.8	%
Total assets	$	1,814,826		$	1,814,070		$	*756*		*0.0*	%	$	1,654,909		$	*159,917*		*9.7*	%

LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing	$	309,160		$	295,857		$	13,303		4.5	%	$	281,243		$	27,917		9.9	%
Interest-bearing		1,215,760			1,181,362			34,398		2.9	%		1,059,146			156,614		14.8	%
Total deposits		1,524,920			1,477,219			*47,701*		*3.2*	%		1,340,389			*184,531*		*13.8*	%

FHLB advances and other borrowing		-			50,000			(50,000	)	-100.0	%		50,000			(50,000	)	-
Other liabilities		27,972			28,397			(425	)	(1.5	%)		19,260			8,712		45.2	%
Total liabilities		1,552,892			1,555,616			*(2,724*	)	*(0.2*	%)		1,409,649			*143,243*		*10.2*	%

Stockholders' Equity		261,934			258,454			*3,480*		*1.3*	%		245,260			*16,674*		*6.8*	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,814,826		$	1,814,070		$	*756*		*0.0*	%	$	1,654,909		$	*159,917*		*9.7*	%

CAPITAL RATIOS
Leverage ratio
Company		14.48	%		14.04	%		0.44	%	3.1	%		14.51	%		(0.03	%)	(0.2	%)
Bank		14.45	%		14.00	%		0.44	%	3.2	%		14.45	%		(0.00	%)	(0.0	%)
Common equity tier 1 risk-based capital ratio
Company		18.98	%		19.10	%		(0.12	%)	(0.6	%)		18.36	%		0.62	%	3.4	%
Bank		18.94	%		19.05	%		-		-			18.28	%		0.66	%	3.6	%
Tier 1 risk-based capital ratio
Company		18.98	%		19.10	%		(0.12	%)	(0.6	%)		18.36	%		0.62	%	3.4	%
Bank		18.94	%		19.05	%		-		-			18.28	%		0.66	%	3.6	%
Total risk-based capital ratio
Company		20.13	%		20.23	%		(0.10	%)	(0.5	%)		19.59	%		0.54	%	2.8	%
Bank		20.09	%		20.18	%		(0.09	%)	(0.4	%)		19.50	%		0.58	%	3.0	%
Tangible book value per share	$	24.51		$	24.18		$	0.33		1.4	%	$	22.94		$	1.57		6.8	%
Loans Held for Investments-to-Deposit ("LHFITD") ratio		83.81	%		85.03	%		(1.22	%)	(1.4	%)		91.65	%		(7.84	%)	(8.6	%)
Net Loan-to-Deposit ("LTD") ratio		94.87	%		97.19	%		(2.32	%)	(2.4	%)		106.06	%		(11.19	%)	(10.6	%)
Nonperforming assets	$	16,699		$	11,675		$	5,024		43.0	%	$	5,797		$	10,902		188.1	%
Nonperforming assets as a % of loans held-for-investment		1.31	%		0.93	%		0.38	%	40.9	%		0.47	%		0.84	%	178.7	%
ACL as a % of loans held-for-investment		1.21	%		1.18	%		0.03	%	2.54	%		1.31	%		(0.10	%)	(7.6	%)

Includes AFS and HTM

FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3
(Dollars in thousands, except per share amounts)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024

Interest income	$	27,392		$	27,467		$	28,769		$	28,380		$	27,755
Interest expense		12,345			12,644			13,121			12,904			12,391
Net interest income		15,047			14,823			15,648			15,476			15,364

Provision for credit losses		590			500			-			(100	)		200
Net interest income after provision for credit losses		14,457			14,323			15,648			15,576			15,164

Gain on sale of loans		900			1,021			1,013			991			1,064
Gain (loss) on sale of OREO		(67	)		(92	)		-			-			-
SBA servicing fee income, net		799			691			654			760			768
Recovery on impaired servicing liability		-			-			-			-			-
Service charges and other income		450			496			543			465			503
Noninterest income		2,082			2,116			2,210			2,216			2,335

Salaries and employee benefits		5,779			5,848			5,635			5,884			5,927
Occupancy and equipment		1,293			1,314			1,280			1,149			1,114
Marketing expense		404			215			285			423			403
Professional expense		619			430			329			456			440
Other expenses		2,181			2,426			2,411			2,104			1,972
Noninterest expense		10,276			10,233			9,940			10,016			9,856

Income before income tax expense		6,263			6,206			7,918			7,776			7,643

Income tax expense		1,868			1,753			2,211			2,207			2,163

Net income	$	4,395		$	4,453		$	5,707		$	5,569		$	5,480

Effective tax rate		29.8	%		28.3	%		27.9	%		28.4	%		28.3	%

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		10,593,497			10,605,812			10,598,476			10,596,039			10,588,136

Basic EPS	$	0.42		$	0.42		$	0.54		$	0.53		$	0.51
Diluted EPS	$	0.41		$	0.42		$	0.54		$	0.53		$	0.51


FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)

	At or for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024

Salaries and benefits	$	5,779		$	5,848		$	5,635		$	5,884		$	5,927
FTE at the end of period		163			166			168			178			172
Average FTE during the period		166			169			166			173			171
Salaries and benefits/average FTE¹	$	140		$	141		$	135		$	135		$	139
Salaries and benefits/average assets¹		1.29	%		1.30	%		1.25	%		1.38	%		1.42	%
Noninterest expense/average assets¹		2.30	%		2.27	%		2.21	%		2.35	%		2.36	%

Annualized

FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)

	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
ASSETS
Cash and due from banks	$	11,873		$	12,716		$	10,336		$	14,892		$	11,667
Interest-earning deposits at the FRB and other banks		235,436			249,535			266,826			241,094			101,415
Investment securities		65,518			61,521			62,196			63,208			73,051
Loans held-for-sale		183,996			194,542			198,448			198,021			209,144

Loans held-for-investment		1,278,106			1,256,063			1,239,564			1,222,865			1,228,496
Less: Allowance for credit losses		(15,461	)		(14,850	)		(15,959	)		(15,948	)		(16,042	)
Loans held-for-investment, net		1,262,645			1,241,213			1,223,605			1,206,917			1,212,454

Other real estate owned		2,999			3,130			521			521			-
Restricted stock investments		11,011			11,011			11,011			11,011			11,011
Servicing assets		6,609			6,708			6,909			7,192			7,404
Goodwill		2,185			2,185			2,185			2,185			2,185
Intangible assets		195			205			214			224			235
Other assets		32,359			31,304			33,384			25,284			26,343
Total assets	$	1,814,826		$	1,814,070		$	1,815,635		$	1,770,549		$	1,654,909

LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing	$	309,160		$	295,857		$	304,005		$	318,807		$	281,243
Interest-bearing		1,215,760			1,181,362			1,176,567			1,128,784			1,059,146
Total deposits		1,524,920			1,477,219			1,480,572			1,447,591			1,340,389

FHLB advances		-			50,000			50,000			50,000			50,000
Other liabilities		27,972			28,397			30,096			22,415			19,260
Total liabilities		1,552,892			1,555,616			1,560,668			1,520,006			1,409,649

Stockholders' Equity		261,934			258,454			254,967			250,543			245,260
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,814,826		$	1,814,070		$	1,815,635		$	1,770,549		$	1,654,909

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)

	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
	Balance		%		Balance		%		Balance		%		Balance		%		Balance		%

Construction	$	33,952	2.7	%	$	31,913	2.5	%	$	27,276	2.2	%	$	29,789	2.4	%	$	33,918	2.8	%
Commercial real estate		1,091,180	85.4	%		1,061,873	84.5	%		1,048,945	84.6	%		1,029,768	84.2	%		1,035,425	84.3	%
Commercial and industrial		108,461	8.5	%		112,369	9.0	%		114,435	9.2	%		112,588	9.2	%		108,742	8.9	%
Home mortgage		36,673	2.9	%		41,944	3.3	%		43,676	3.5	%		45,673	3.7	%		44,987	3.7	%
Consumer		3,527	0.3	%		3,477	0.3	%		552	0.0	%		537	0.0	%		782	0.1	%
Gross loans held-for-investment		1,273,793	99.7	%		1,251,576	99.6	%		1,234,884	99.6	%		1,218,355	99.6	%		1,223,854	99.6	%

Deferred loan fees/costs, net		4,313	0.3	%		4,487	0.4	%		4,680	0.4	%		4,510	0.4	%		4,642	0.4	%
Loans held-for-investment	$	1,278,106	100.0	%	$	1,256,063	100.0	%	$	1,239,564	100.0	%	$	1,222,865	100.0	%	$	1,228,496	100.0	%

Loans held-for-sale	$	183,996			$	194,542			$	198,448			$	198,021			$	209,144
Total loans receivable	$	1,462,102			$	1,450,605			$	1,438,012			$	1,420,886			$	1,437,640

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7
(Dollars in thousands)

	Three Months Ended															Six Months Ended
	June 30			March 31,			December 31,			September 30,			June 30,			June 30			June 30
	2025			2025			2024			2024			2024			2025			2024

SBA loans held-for-sale at beginning of the quarter/year	$	194,542		$	198,448		$	198,021		$	209,144		$	198,167		$	198,448		$	218,258
SBA loans originated/transferred from/to held-for-
investment during the quarter/year		20,135			23,778			22,172			13,169			34,366			43,913			48,955
SBA loans sold during the quarter/year		(17,580	)		(19,753	)		(17,215	)		(20,152	)		(19,508	)		(37,333	)		(47,672	)
SBA loans principal paydown/payoff, net of advance		(13,101	)		(7,931	)		(4,530	)		(4,140	)		(3,881	)		(21,032	)		(10,397	)
SBA loans held-for-sale at end of the quarter/year	$	183,996		$	194,542		$	198,448		$	198,021		$	209,144		$	183,996		$	209,144

Gain on sale of SBA loans	$	900		$	1,021		$	1,013		$	991		$	1,064		$	1,921		$	2,553
Premium on sale (weighted average)		8.1	%		8.1	%		9.2	%		7.5	%		6.8	%		8.1	%		8.4	%

SBA loan production	$	28,860		$	32,034		$	39,741		$	23,227		$	45,126		$	60,894		$	63,215

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8
(Dollars in thousands)

	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2025			2025			2024			2024			2024			2025			2024


SBA servicing assets @ beginning of the quarter/year	$	6,708		$	6,909		$	7,192		$	7,404		$	7,560		$	6,909		$	7,673

Newly added SBA servicing assets from SBA loans sold		355			361			355			377			395			716			950
Regular quarterly/annual servicing assets amortization		(299	)		(305	)		(315	)		(332	)		(335	)		(604	)		(667	)
SBA servicing assets amortized from SBA loans paid off/charged off		(155	)		(257	)		(323	)		(257	)		(216	)		(412	)		(552	)

Subtotal before impairment		6,609			6,708			6,909			7,192			7,404			6,609			7,404

Reversal of valuation allowance on servicing assets		-			-			-			-			-			-			-

SBA servicing assets @ the end of the quarter/year	$	6,609		$	6,708		$	6,909		$	7,192		$	7,404		$	6,609		$	7,404

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)

	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
	Balance		%	Balance		%	Balance		%	Balance		%	Balance		%

Noninterest-bearing demand	$	309,160	20.3%	$	295,857	20.0%	$	304,005	20.5%	$	318,807	22.0%	$	281,243	21.0%
Interest-bearing demand		10,698	0.7%		6,588	0.5%		7,541	0.5%		6,590	0.5%		7,901	0.6%
NOW & MMDA		274,578	18.0%		257,474	17.4%		269,475	18.2%		246,157	17.0%		240,951	18.0%
Savings		85,609	5.6%		81,425	5.5%		84,727	5.7%		78,356	5.4%		80,360	6.0%
TCDs of $250K and under		319,209	20.9%		315,312	21.3%		324,041	21.9%		310,134	21.4%		295,109	22.0%
TCDs of $250K over		403,676	26.5%		377,486	25.6%		345,045	23.3%		342,301	23.7%		314,119	23.4%
Wholesale deposits		121,990	8.0%		143,077	9.7%		145,738	9.9%		145,246	10.0%		120,706	9.0%
Total Deposits	$	1,524,920	100.0%	$	1,477,219	100.0%	$	1,480,572	100.0%	$	1,447,591	100.0%	$	1,340,389	100.0%

Recap:
Noninterest-bearing demand	$	309,160	20.3%	$	295,857	20.0%	$	304,005	20.5%	$	318,807	22.0%	$	281,243	21.0%
Interest-bearing demand		10,698	0.7%		6,588	0.5%		7,541	0.5%		6,590	0.5%		7,901	0.6%
NOW & MMDA		274,578	18.0%		257,474	17.4%		269,475	18.2%		246,157	17.0%		240,951	18.0%
Savings		85,609	5.6%		81,425	5.5%		84,727	5.7%		78,356	5.4%		80,360	6.0%
TCDs of $250K and under		319,209	20.9%		315,312	21.3%		324,041	21.9%		310,134	21.4%		295,109	22.0%
Core Deposits		999,254	65.5%		956,656	64.7%		989,789	66.8%		960,044	66.3%		881,952	67.6%

TCDs of $250K over		403,676	26.5%		377,486	25.6%		345,045	23.3%		342,301	23.7%		314,119	23.4%
Nonreciprocal ICS MMDA		-	-		-	-		-	-		-	-		-	-
Wholesale deposits		121,990	8.0%		143,077	9.7%		145,738	9.9%		145,246	10.0%		120,706	9.0%
Noncore Deposits		525,666	34.5%		520,563	35.3%		490,783	33.1%		487,547	33.7%		434,825	32.4%
Total Deposits	$	1,524,920	100.0%	$	1,477,219	100.0%	$	1,480,572	100.0%	$	1,447,591	100.0%	$	1,340,389	100.0%

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10
(Dollars in thousands)

	2nd Qtr.			1st Qtr.			4th Qtr.			3rd Qtr.			2nd Qtr.
	2025			2025			2024			2024			2024
Allowance for Credit Losses
Balance at beginning of period	$	14,850		$	15,959		$	15,948		$	16,042		$	16,048
Provision for credit losses		590			430			-			-			200
Charge-offs		(143	)		(1,567	)		-			(108	)		(257	)
Recoveries		164			28			11			14			51
Balance at the end of period	$	15,461		$	14,850		$	15,959		$	15,948		$	16,042

Nonperforming Assets:¹
Over 90 days still accruing	$	1,487		$	-		$	1,819		$	994		$	-
Nonaccrual loans		12,213			8,545			9,711			7,043			5,797
Total nonperforming loans		13,700			8,545			11,530			8,037			5,797

Other real estate owned	$	2,999			3,130			521			521			-
Total nonperforming assets	$	16,699		$	11,675		$	12,051		$	8,558		$	5,797

Classified Assets:¹
Substandard	$	30,442		$	20,827		$	22,077		$	15,980		$	12,762
Doubtful		-			-			-			-			-
Loss
Total classified loans	$	30,442		$	20,827		$	22,077		$	15,980		$	12,762

Other real estate owned	$	2,999			3,130			521			521			-
Total classified assets	$	33,441		$	23,957		$	22,598		$	16,501		$	12,762

Performing modified loans:¹	$	160		$	635		$	649		$	452		$	464

Delinquent Loans:¹
Loans 30-89 days past due	$	11,548		$	19,010		$	7,614		$	4,308		$	8,613
90 days or more past due and still accruing		1,487			-			1,819			994			-
Nonaccrual		12,213			8,545			9,711			7,043			5,797
Total delinquent loans	$	25,248		$	27,555		$	19,144		$	12,345		$	14,410

Asset Quality Ratios:
Net (recoveries) charge-offs to average loans²		(0.01	%)		0.43	%		0.00	%		0.03	%		0.06	%
Nonaccrual loans to loans held-for-investment		0.96	%		0.68	%		0.78	%		0.58	%		0.47	%
Nonperforming loans to loans held-for-investment		1.07	%		0.68	%		0.93	%		0.66	%		0.47	%
Nonperforming assets to total assets		0.92	%		0.64	%		0.66	%		0.48	%		0.35	%
Classified loans to loans held-for-investment		2.38	%		1.66	%		1.78	%		1.31	%		1.04	%
Classified loans to Tier 1 and ACL		11.07	%		7.69	%		8.22	%		6.05	%		4.93	%
Classified assets to total assets		1.84	%		1.32	%		1.24	%		0.93	%		0.77	%
Classified assets to Tier 1 and ACL		12.16	%		8.84	%		8.42	%		6.25	%		4.93	%
ACL to loans held-for-investment		1.21	%		1.18	%		1.29	%		1.30	%		1.31	%
ACL to nonaccrual loans		126.59	%		173.79	%		164.34	%		226.44	%		276.73	%
ACL to nonperforming loans		112.85	%		173.79	%		138.41	%		198.43	%		276.73	%
ACL to nonperforming assets		92.59	%		127.19	%		132.43	%		186.35	%		276.73	%
Texas ratio ³		6.07	%		4.31	%		4.49	%		3.24	%		2.24	%

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 Requirement	Adequately Capitalized BASEL III Fully Phased In	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

Leverage ratio
Company	N/A	N/A		14.48	%		14.04	%		14.12	%		14.64	%		14.51	%
Bank	5.00%	4.00%		14.45	%		14.00	%		14.07	%		14.58	%		14.45	%
Common equity tier 1 risk-based capital ratio
Company	N/A	N/A		18.98	%		19.10	%		19.02	%		19.03	%		18.36	%
Bank	6.50%	7.00%		18.94	%		19.05	%		18.95	%		18.95	%		18.28	%
Tier 1 risk-based capital ratio
Company	N/A	N/A		18.98	%		19.10	%		19.02	%		19.03	%		18.36	%
Bank	8.00%	8.50%		18.94	%		19.05	%		18.95	%		18.95	%		18.28	%
Total risk-based capital ratio
Company	N/A	N/A		20.13	%		20.23	%		20.23	%		20.26	%		19.59	%
Bank	10.00%	10.50%		20.09	%		20.18	%		20.16	%		20.18	%		19.50	%

Tangible common equity/total assets				14.32	%		14.13	%		13.93	%		14.03	%		14.70	%
Tangible common equity per share			$	24.51		$	24.18		$	23.85		$	23.44		$	22.94

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)

	Three Months Ended
	June 30, 2025							March 31, 2025							December 31, 2024							September 30, 2024							June 30, 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	$	1,461,584		$	24,171	6.63	%	$	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	%
Investment securities ²		64,990			686	4.23	%		61,930			667	4.37	%		62,714			696	4.42	%		68,198			734	4.28	%		70,052			723	4.15	%
Interest-earning deposits at the FRB and other banks		214,514			2,383	4.46	%		275,512			3,029	4.46	%		253,524			3,048	4.78	%		158,127			2,139	5.38	%		146,956			1,995	5.46	%
Other earning assets		11,011			200	7.29	%		11,011			203	7.48	%		11,011			211	7.62	%		11,011			200	7.23	%		11,011			200	7.31	%
Total interest-earning assets ²		1,752,099			27,440	6.28	%		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	%

NONINTEREST-EARNING ASSETS
Cash and due from banks		11,512							12,060							12,349							12,527							12,907
Other noninterest-earning assets		44,078							41,549							35,479							34,395							33,263
Total noninterest-earning assets		55,590							53,609							47,828							46,922							46,170

Less: Allowance for credit losses		(14,899	)						(15,569	)						(15,953	)						(16,024	)						(16,058	)

TOTAL ASSETS	$	1,792,790						$	1,824,339						$	1,791,340						$	1,695,357						$	1,676,589

INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,957		$	5	0.20	%	$	9,622		$	5	0.20	%	$	11,147		$	6	0.20	%	$	11,007		$	6	0.20	%	$	11,864		$	6	0.20	%
Money market		263,197			2,540	3.87	%		265,687			2,555	3.90	%		244,258			2,508	4.08	%		236,834			2,555	4.29	%		230,261			2,272	3.97	%
Savings		83,261			633	3.05	%		83,978			638	3.08	%		81,423			661	3.23	%		79,289			689	3.46	%		82,215			700	3.42	%
Time deposits		847,092			9,159	4.34	%		830,672			9,331	4.56	%		815,866			9,828	4.79	%		767,607			9,536	4.94	%		759,954			9,296	4.92	%
Total interest-bearing deposits		1,203,507			12,337	4.11	%		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	%

Borrowings		4,122			8	0.78	%		48,889			115	0.95	%		50,001			118	0.94	%		50,000			118	0.94	%		50,013			117	0.94	%
Total interest-bearing liabilities		1,207,629			12,345	4.10	%		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	%

Noninterest-bearing deposits		296,496							298,579							309,662							280,670							279,765
Other liabilities		28,026							29,428							26,090							21,376							19,287

Stockholders' equity		260,639							257,484							252,893							248,574							243,230
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,792,790						$	1,824,339						$	1,791,340						$	1,695,357						$	1,676,589

Net interest income²				$	15,095						$	14,873						$	15,697						$	15,526						$	15,414

Net interest spread						2.18	%						2.11	%						2.18	%						2.32	%						2.40	%

Effect of noninterest-bearing sources						1.28	%						1.27	%						1.37	%						1.39	%						1.37	%

Net interest margin²						3.46	%						3.38	%						3.55	%						3.71	%						3.77	%


Cost of deposits	$	1,500,003		$	12,337	3.30	%	$	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	%

Cost of funds	$	1,504,125		$	12,345	3.29	%	$	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		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
	June 30, 2025					March 31,2025					December 31, 2024					September 30, 2024					June 30,2024
	Amount			Yield		Amount			Yield		Amount			Yield		Amount			Yield		Amount			Yield

Contractual yield	$	23,731		6.51	%	$	22,866		6.45	%	$	24,036		6.68	%	$	24,544		6.84	%	$	24,271		6.88	%
SBA discount accretion		588		0.16	%		781		0.22	%		818		0.23	%		806		0.23	%		736		0.21	%
Prepayment penalties and late fees		53		0.01	%		136		0.04	%		64		0.02	%		184		0.05	%		36		0.01	%
Amortization of net deferred costs		(201	)	-0.05	%		(165	)	-0.05	%		(55	)	-0.02	%		(177	)	-0.05	%		(156	)	-0.04	%
As reported yield on loans	$	24,171		6.63	%	$	23,618		6.66	%	$	24,863		6.91	%	$	25,357		7.07	%	$	24,887		7.06	%

MARGIN ANALYSIS (Unaudited) - Table 14
(Dollars in thousands)

	Six Months Ended
	June 30, 2025							June 30,2024
	Avg Balance			Interest		Yield		Avg Balance			Interest		Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans Receivable ¹	$	1,449,780		$	47,789	6.65	%	$	1,417,191		$	49,793	7.07	%
Investment securities ²		63,469			1,353	4.30	%		64,803			1,298	4.03	%
Interest-earning deposits at the FRB and other banks		244,844			5,412	4.46	%		177,056			4,812	5.47	%
Other earning assets		11,011			403	7.38	%		11,011			414	7.56	%
Total interest-earning assets ²		1,769,104			54,957	6.26	%		1,670,061			56,317	6.78	%

NONINTEREST-EARNING ASSETS
Cash and due from banks		11,784							12,540
Other noninterest-earning assets		42,701							32,122
Total noninterest-earning assets		54,485							44,662

Less: Allowance for credit losses		(15,232	)						(15,690	)

TOTAL ASSETS	$	1,808,357						$	1,699,033

INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,790		$	10	0.20	%	$	12,271		$	12	0.20	%
Money market		264,435			5,095	3.89	%		229,851			4,557	3.99	%
Savings		83,618			1,271	3.07	%		83,534			1,424	3.43	%
Time deposits		838,927			18,490	4.44	%		780,539			18,819	4.85	%
Total interest-bearing deposits		1,196,770			24,866	4.19	%		1,106,195			24,812	4.51	%

Borrowings		26,382			123	0.94	%		50,007			234	0.94	%
Total interest-bearing liabilities		1,223,152			24,989	4.12	%		1,156,202			25,046	4.36	%

Noninterest-bearing deposits		297,532							282,316
Other liabilities		28,603							19,707

Stockholders' equity		259,070							240,808

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,808,357						$	1,699,033

Net interest income²				$	29,968						$	31,271

Net interest spread						2.14	%						2.42	%

Effect of noninterest-bearing sources						1.28	%						1.35	%

Net interest margin²						3.42	%						3.77	%


Cost of deposits	$	1,494,302		$	24,866	3.36	%	$	1,388,511		$	24,812	3.59	%

Cost of funds	$	1,520,684		$	24,989	3.31	%	$	1,438,518		$	25,046	3.50	%

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)

	Six Months Ended
	June 30, 2025					June 30, 2024
	Amount			Yield		Amount			Yield

Contractual yield	$	46,597		6.48	%	$	48,409		6.87	%
SBA discount accretion		1,369		0.19	%		1,662		0.24	%
Prepayment penalties and late fees		189		0.03	%		103		0.01	%
Amortization of net deferred costs		(366	)	-0.05	%		(381	)	-0.05	%
As reported yield on loans	$	47,789		6.65	%	$	49,793		7.07	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250724169089/en/

Alex Ko, EVP & CFO

(213) 296-5737

AlexK@cbb-bank.com

Source: CBB Bancorp, Inc.

CBB Bancorp, Inc. Reports Second Quarter 2025 Financial Results

OTC:CBBI

CBBI Rankings

CBBI Latest News

CBBI Stock Data

CBB Bancorp, Inc. Reports Second Quarter 2025 Financial Results

OTC:CBBI

CBBI Rankings

CBBI Latest News

CBBI Stock Data

Related Articles