CBB Bancorp, Inc. Reports Second Quarter 2026 Financial Results

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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 $4.9 million for the second quarter 2026, or $0.46 per diluted share down from $5.7 million in the first quarter 2026, or $0.53 per diluted share. The decrease in net income for the current quarter was primarily due to higher noninterest expense and lower noninterest income, partially offset by higher net interest income.

Second Quarter 2026 Highlights

• Return on Assets of 1.00%

• Net income of $4.9 million, or $0.46 per diluted share

• Loan originations of $152.0 million

• SBA loan sales of $37.1 million at an average premium of 8.2%

Seungho Park, President and CEO, said, “We delivered solid second quarter results while continuing to execute on our strategic growth initiatives. The opening of our new branch in Flushing, New York, represents another important step in expanding CBB’s presence in attractive markets and strengthening our ability to serve existing and new customers, especially customers in non-Korean ethnic markets. During the quarter, our team generated the highest level of loan originations in four years and continued to produce meaningful gains from the sale of the guaranteed portions of SBA loans. At the same time, we remain focused on disciplined balance sheet management, including reducing deposit costs, which contributed to an improvement in our net interest margin. We believe these results reflect the strength of our franchise, the dedication of our employees, and our continued focus on profitable and relationship-driven growth.”

INCOME STATEMENT

Net Interest Income

Net interest income for the second quarter 2026 was $15.4 million, an increase of $538 thousand, or 3.6% from the prior quarter and $323 thousand, or 2.1% from the second quarter 2025. The net interest margin for the second quarter 2026 was 3.22%, up from 3.13% for the first quarter of 2026, but down from 3.46% for the second quarter of 2025. The increase in net interest margin from the prior quarter was primarily attributable to the decrease in costs on interest-bearing deposits outpacing the decrease in yields on interest earning assets and having one more day in the quarter.

The overall cost of funds for the second quarter of 2026 was 3.16%, down from 3.25% for the first quarter of 2026 and 3.29% for the second quarter of 2025.

Provision for Credit Losses

The Company recorded a total provision for credit losses of $500 thousand for the second quarter of 2026, essentially equal to the first quarter of 2026 and slightly lower than the $590 thousand in the second quarter of 2025. The provision to increase the allowance for credit losses (“ACL”) was primarily attributable to one specific credit, while improved asset quality metrics offset the impact of portfolio growth during the current quarter. The ACL to total loans ratio decreased one basis point to 1.19% from the prior quarter.

Noninterest Income

Noninterest income for the second quarter of 2026 was $3.1 million, down from $3.6 million in the prior quarter, but up from $2.1 million in the same quarter of 2025. The quarter-over-quarter decrease in noninterest income was primarily the result of a lower gain on sales of loans of $521 thousand.

Noninterest Expenses

Noninterest expenses totaled $11.2 million for the second quarter of 2026, up from $10.1 million in the prior quarter and $10.3 million in the second quarter of 2025. Noninterest expense increased by $1.0 million quarter-over-quarter primarily due to higher salaries and employee benefits costs of $793 thousand and other operating expenses of $215 thousand.

The efficiency ratio was 60.55%, up from 54.85% in the prior quarter and 59.99% in the year-ago quarter. The efficiency ratio increase from the prior quarter was primarily due to a higher noninterest expense within the salaries and employee benefits category and lower noninterest income from lower gains on SBA loan sales.

Income Taxes

The Company’s effective tax rate for the second quarter of 2026 was 27.8%, compared to 27.7% for the first quarter of 2026 and 29.8% for the second quarter of 2025.

BALANCE SHEET

Investment Securities

Investment securities were $63.5 million at June 30, 2026, a decrease of $1.2 million, or 1.9%, from March 31, 2026, and a decrease of $2.1 million, or 3.1%, from June 30, 2025. The quarterly decline was mainly driven by scheduled principal paydowns and a strategic decision to limit reinvestment during the period.

Loans Receivable

Loans receivable, including loans held-for-sale, totaled $1.52 billion at June 30, 2026, an increase of $57.3 million, or 3.9%, from the prior quarter and $61.9 million, or 4.2%, from a year earlier. The growth from the previous quarter reflected continued strong loan production, partially offset by loan sales.

The Company’s loan originations remained robust, totaling $152.0 million for the quarter, up from $107.9 million in the prior quarter.

Allowance for Credit Losses and Asset Quality

The ACL was $17.4 million at June 30, 2026, representing 1.19% of loans held-for-investment, compared to $16.9 million, or 1.20%, at March 31, 2026, and $15.5 million, or 1.21%, at June 30, 2025.

Total nonperforming assets at June 30, 2026, were $21.6 million down from $22.7 million at March 31, 2026, but up from $ 17.0 million at June 30, 2025, primarily driven by an increase in nonaccrual loans.

The ACL coverage to nonperforming assets was 80.51% at June 30, 2026, up from 74.19% in the previous quarter, but down from 92.59% in the year-ago quarter.

SBA Loans Held-for-Sale

Total SBA loans held-for-sale were $66.5 million as of June 30, 2026, up from $62.2 million at March 31, 2026, but down from $184.0 million at June 30, 2025.

During the quarter, the Bank sold $37.1 million in SBA loans at an average premium of 8.2%, down from $48.2 million sold at an average premium of 8.0% in the prior quarter, but up from $17.6 million sold at 8.1% average premium in the same quarter of 2025.

Deposits

Total deposits were $1.66 billion at June 30, 2026, a decrease of $23.1 million, or 1.4%, from the prior quarter, but up $138.4 million, or 9.1%, from a year earlier. The decrease was primarily in the MMDA and wholesale deposits.

Borrowings

The Bank had no outstanding borrowings as of June 30, 2026, consistent with the position since the second quarter of 2025.

Capital

Stockholders’ equity was $276.6 million at June 30, 2026, up $3.6 million, or 1.3%, from the prior quarter. Tangible book value per share was $25.91, an increase of $0.34, or 1.3%, quarter-over-quarter.

At quarter-end, Common Equity Tier 1 Risk-Based Capital Ratios were 18.73% for the Company and 18.65% for the Bank. Total Risk-Based Capital Ratios were 19.94% and 19.87%, respectively, and Leverage Ratios were 13.99% for the Company and 13.93% for the Bank. The Bank continues to be classified as “Well Capitalized” under applicable regulatory standards.

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, 2026, the Bank had twelve full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas, Honolulu, Hawaii, Bergen County in New Jersey, and Queens County in New York. Three SBA regional offices in Los Angeles, Dallas, and Bergen Counties, and loan production offices in California, Georgia, Texas, and Virginia. For additional information, please go to www.cbb-bank.com under the tab “About Us” and select “Investor Relations” to see the 2Q 2026 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,				$			%
			2026				2026				Change			Change			2025				Change			Change			2026				2025				Change			Change
Interest income			$	28,406			$	28,164			$	242		0.9	%		$	27,392			$	1,014		3.7	%		$	56,570			$	54,859			$	1,711		3.1	%
Interest expense				13,036				13,332				(296	)	(2.2	%)			12,345				691		5.6	%			26,368				24,989				1,379		5.5	%
Net interest income				15,370				14,832				538		3.6	%			15,047				323		2.1	%			30,202				29,870				332		1.1	%
Provision for credit losses				500				500				-		-				590				(90	)	(15.3	%)			1,000				1,090				(90	)	(8.3	%)
Net interest income after provision for credit losses				14,870				14,332				538		3.8	%			14,457				413		2.9	%			29,202				28,780				422		1.5	%
Gain on sale of loans				1,938				2,459				(521	)	(21.2	%)			900				1,038		115.3	%			4,397				1,921				2,476		128.9	%
Loss on sale of OREO				(96	)			-				(96	)	(100.0	%)			(67	)			(29	)	(43.3	%)			(96	)			(159	)			63		(39.6	%)
SBA servicing fee income, net				774				702				72		10.3	%			799				(25	)	(3.1	%)			1,476				1,490				(14	)	(0.9	%)
Recovery on impaired servicing liability				-				-				-		-				-				-		-				-				-				-		-
Service charges and other income				469				481				(12	)	(2.5	%)			450				19		4.2	%			950				946				4		0.4	%
Noninterest income				3,085				3,642				(557	)	(15.3	%)			2,082				1,003		48.2	%			6,727				4,198				2,529		60.2	%
Salaries and employee benefits				6,655				5,862				793		13.5	%			5,779				876		15.2	%			12,517				11,627				890		7.7	%
Occupancy and equipment				1,326				1,432				(106	)	(7.4	%)			1,293				33		2.6	%			2,758				2,607				151		5.8	%
Marketing expense				418				396				22		5.6	%			404				14		3.5	%			814				619				195		31.5	%
Professional expense				517				399				118		29.6	%			619				(102	)	(16.5	%)			916				1,049				(133	)	(12.7	%)
Other expenses				2,259				2,044				215		10.5	%			2,181				78		3.6	%			4,303				4,607				(304	)	(6.6	%)
Noninterest expense				11,175				10,133				1,042		10.3	%			10,276				899		8.7	%			21,308				20,509				799		3.9	%
Income before income tax provision				6,780				7,841				(1,061	)	(13.5	%)			6,263				517		8.3	%			14,621				12,469				2,152		17.3	%
Income tax provision				1,883				2,171				(288	)	(13.3	%)			1,868				15		0.8	%			4,054				3,621				433		12.0	%
Net income			$	4,897			$	5,670			$	(773	)	(13.6	%)		$	4,395			$	502		11.4	%		$	10,567			$	8,848			$	1,719		19.4	%
Effective tax rate				27.77	%			27.69	%			0.09	%	0.31	%			29.83	%			(2.05	%)	(6.9	%)			27.73	%			29.04	%			(1.31	%)	(4.52	%)
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				10,617,843				10,613,980				3,863		0.0	%			10,593,497				24,346		0.2	%			10,615,911				10,599,146				16,765		0.2	%
Basic EPS			$	0.46			$	0.54			$	(0.08	)	(14.8	%)		$	0.42			$	0.04		9.5	%		$	1.00			$	0.84			$	0.16		19.0	%
Diluted EPS			$	0.46			$	0.53			$	(0.07	)	(13.2	%)		$	0.41			$	0.05		12.2	%		$	0.99			$	0.84			$	0.15		17.9	%
Return on average assets				1.00	%			1.17	%			(0.17	%)	(14.5	%)			0.98	%			0.02	%	2.0	%			1.09	%			0.99	%			0.10	%	10.1	%
Return on average equity				7.16	%			8.49	%			(1.33	%)	(15.7	%)			6.76	%			0.40	%	5.9	%			7.82	%			6.89	%			0.93	%	13.5	%
Efficiency ratio				60.55	%			54.85	%			5.70	%	10.4	%			59.99	%			0.56	%	0.9	%			57.70	%			60.20	%			(2.50	%)	(4.2	%)
Yield on interest-earning assets¹				5.94	%			5.94	%			-		-				6.28	%			(0.34	%)	(5.4	%)			5.94	%			6.26	%			(0.32	%)	(5.1	%)
Cost of funds				3.16	%			3.25	%			(0.09	%)	(2.8	%)			3.29	%			(0.13	%)	(4.0	%)			3.21	%			3.31	%			(0.10	%)	(3.0	%)
Net interest margin¹				3.22	%			3.13	%			0.08	%	2.6	%			3.46	%			(0.24	%)	(7.0	%)			3.18	%			3.42	%			(0.24	%)	(7.0	%)
¹ 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,				$				%
		2026				2026				Change			Change			2025				Change				Change
ASSETS
Cash and due from banks		$	12,089			$	13,776			$	(1,687	)	(12.2	%)		$	11,873			$	216			1.8	%
Interest-earning deposits at the FRB and other banks			335,457				405,896				(70,439	)	(17.4	%)			235,436				100,021			42.5	%
Investment securities¹			63,455				64,674				(1,219	)	(1.9	%)			65,518				(2,063	)		(3.1	%)
Loans held-for-sale			66,477				62,173				4,304		6.9	%			183,996				(117,519	)		(63.9	%)
Loans held-for-investment			1,457,550				1,404,573				52,977		3.8	%			1,278,106				179,444			14.0	%
Less: Allowance for credit losses ("ACL")			(17,357	)			(16,854	)			(503	)	(3.0	%)			(15,461	)			(1,896	)		(12.3	%)
Loans held-for-investment, net			1,440,193				1,387,719				52,474		3.8	%			1,262,645				177,548			14.1	%
Other real estate owned ("OREO")			1,192				5,651				(4,459	)	(78.9	%)			2,999				(1,807	)		(60.3	%)
Restricted stock investments			11,086				11,021				65		0.6	%			11,011				75			0.7	%
Servicing assets			6,935				6,671				264		4.0	%			6,609				326			4.9	%
Goodwill			2,185				2,185				-		-				2,185				-			-
Intangible assets			159				168				(9	)	(5.4	%)			195				(36	)		(18.5	%)
Other assets			27,075				30,964				(3,889	)	(12.6	%)			32,359				(5,284	)		(16.3	%)
Total assets		$	1,966,303			$	1,990,898			$	(24,595	)	(1.2	%)		$	1,814,826			$	151,477			8.3	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing		$	301,491			$	309,194			$	(7,703	)	(2.5	%)		$	309,160			$	(7,669	)		(2.5	%)
Interest-bearing			1,361,866				1,377,261				(15,395	)	(1.1	%)			1,215,760				146,106			12.0	%
Total deposits			1,663,357				1,686,455				(23,098	)	(1.4	%)			1,524,920				138,437			9.1	%
FHLB advances and other borrowing			-				-				-		-				-				-			-
Other liabilities			26,316				31,380				(5,064	)	(16.1	%)			27,972				(1,656	)		(5.9	%)
Total liabilities			1,689,673				1,717,835				(28,162	)	(1.6	%)			1,552,892				136,781			8.8	%
Stockholders' Equity			276,630				273,063				3,567		1.3	%			261,934				14,696			5.6	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,966,303			$	1,990,898			$	(24,595	)	(1.2	%)		$	1,814,826			$	151,477			8.3	%
CAPITAL RATIOS
Leverage ratio
Company			13.99	%			13.78	%			0.21	%	1.5	%			14.48	%			(0.49	%)		(3.4	%)
Bank			13.93	%			13.76	%			0.17	%	1.2	%			14.45	%			(0.51	%)		(3.6	%)
Common equity tier 1 risk-based capital ratio
Company			18.73	%			19.24	%			(0.51	%)	(2.7	%)			18.98	%			(0.25	%)		(1.3	%)
Bank			18.65	%			19.22	%			(0.57	%)	(3.0	%)			18.94	%			(0.28	%)		(1.5	%)
Tier 1 risk-based capital ratio
Company			18.73	%			19.24	%			(0.51	%)	(2.7	%)			18.98	%			(0.25	%)		(1.3	%)
Bank			18.65	%			19.22	%			(0.57	%)	(3.0	%)			18.94	%			(0.28	%)		(1.5	%)
Total risk-based capital ratio
Company			19.94	%			20.47	%			(0.53	%)	(2.6	%)			20.13	%			(0.19	%)		(0.9	%)
Bank			19.87	%			20.45	%			(0.58	%)	(2.9	%)			20.09	%			(0.22	%)		(1.1	%)
Tangible book value per share		$	25.91			$	25.57			$	0.34		1.3	%		$	24.51			$	1.40			5.7	%
Loans Held for Investments-to-Deposit ("LHFITD") ratio			87.63	%			83.29	%			4.34	%	5.2	%			83.81	%			3.82	%		4.6	%
Net Loan-to-Deposit ("LTD") ratio			90.58	%			85.97	%			4.61	%	5.4	%			94.87	%			(4.29	%)		(4.5	%)
Nonperforming assets		$	21,559			$	22,717			$	(1,158	)	(5.1	%)		$	16,699			$	4,860			29.1	%
Nonperforming assets as a % of loans held-for-investment			1.48	%			1.62	%			(0.14	%)	(8.6	%)			1.31	%			0.17	%		13.0	%
ACL as a % of loans held-for-investment			1.19	%			1.20	%			(0.01	%)	(0.8	%)			1.21	%			(0.02	%)		(1.7	%)
¹ 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,
		2026				2026				2025				2025				2025
Interest income		$	28,406			$	28,164			$	29,869			$	28,338			$	27,392
Interest expense			13,036				13,332				14,211				12,608				12,345
Net interest income			15,370				14,832				15,658				15,730				15,047
Provision for credit losses			500				500				300				470				590
Net interest income after provision for credit losses			14,870				14,332				15,358				15,260				14,457
Gain on sale of loans			1,938				2,459				802				648				900
Gain (loss) on sale of OREO			(96	)			-				-				29				(67	)
SBA servicing fee income, net			774				702				587				705				799
Recovery on impaired servicing liability			-				-				-				-				-
Service charges and other income			469				481				428				469				450
Noninterest income			3,085				3,642				1,817				1,851				2,082
Salaries and employee benefits			6,655				5,862				6,478				5,849				5,779
Occupancy and equipment			1,326				1,432				1,400				1,378				1,293
Marketing expense			418				396				380				397				404
Professional expense			517				399				519				699				619
Other expenses			2,259				2,044				2,255				2,485				2,181
Noninterest expense			11,175				10,133				11,032				10,808				10,276
Income before income tax expense			6,780				7,841				6,143				6,303				6,263
Income tax expense			1,883				2,171				1,641				1,758				1,868
Net income		$	4,897			$	5,670			$	4,502			$	4,545			$	4,395
Effective tax rate			27.8	%			27.7	%			26.7	%			27.9	%			29.8	%
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			10,617,843				10,613,980				10,602,538				10,600,724				10,593,497
Basic EPS		$	0.46			$	0.54			$	0.42			$	0.43			$	0.42
Diluted EPS		$	0.46			$	0.53			$	0.42			$	0.43			$	0.42

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,
		2026				2026				2025				2025				2025
Salaries and benefits		$	6,655			$	5,862			$	6,478			$	5,849			$	5,779
FTE at the end of period			178				172				174				171				163
Average FTE during the period			175				174				170				168				166
Salaries and benefits/average FTE¹		$	152			$	137			$	151			$	138			$	140
Salaries and benefits/average assets¹			1.36	%			1.18	%			1.28	%			1.27	%			1.29	%
Noninterest expense/average assets¹			2.29	%			2.05	%			2.18	%			2.34	%			2.30	%
1 Annualized

FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)
		June 30,				March 31,				December 31,				September 30,				June 30,
		2026				2026				2025				2025				2025
ASSETS
	Cash and due from banks	$	12,089			$	13,776			$	10,265			$	25,597			$	11,873
	Interest-earning deposits at the FRB and other banks		335,457				405,896				426,000				385,282				235,436
	Investment securities		63,455				64,674				65,730				67,459				65,518
	Loans held-for-sale		66,477				62,173				65,419				175,158				183,996
	Loans held-for-investment		1,457,550				1,404,573				1,397,420				1,272,474				1,278,106
	Less: Allowance for credit losses		(17,357	)			(16,854	)			(16,345	)			(16,151	)			(15,461	)
	Loans held-for-investment, net		1,440,193				1,387,719				1,381,075				1,256,323				1,262,645
	Other real estate owned		1,192				5,651				5,651				297				2,999
	Restricted stock investments		11,086				11,021				11,011				11,011				11,011
	Servicing assets		6,935				6,671				6,141				6,342				6,609
	Goodwill		2,185				2,185				2,185				2,185				2,185
	Intangible assets		159				168				176				186				195
	Other assets		27,075				30,964				33,373				32,602				32,359
	Total assets	$	1,966,303			$	1,990,898			$	2,007,026			$	1,962,442			$	1,814,826
LIABILITIES AND STOCKHOLDERS' EQUITY
	Noninterest-bearing	$	301,491			$	309,194			$	301,775			$	280,351			$	309,160
	Interest-bearing		1,361,866				1,377,261				1,405,552				1,385,920				1,215,760
	Total deposits		1,663,357				1,686,455				1,707,327				1,666,271				1,524,920
	FHLB advances		-				-				-				-				-
	Other liabilities		26,316				31,380				30,950				30,649				27,972
	Total liabilities		1,689,673				1,717,835				1,738,277				1,696,920				1,552,892
	Stockholders' Equity		276,630				273,063				268,749				265,522				261,934
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,966,303			$	1,990,898			$	2,007,026			$	1,962,442			$	1,814,826

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)
	June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025						June 30, 2025
	Balance			%			Balance			%			Balance			%			Balance			%			Balance			%
Construction	$	19,396		1.3	%		$	21,063		1.5	%		$	18,566		1.3	%		$	36,480		2.9	%		$	33,952		2.7	%
Commercial real estate		1,265,931		86.9	%			1,209,647		86.1	%			1,204,652		86.2	%			1,088,603		85.6	%			1,091,180		85.4	%
Commercial and industrial		135,376		9.3	%			135,286		9.6	%			134,306		9.6	%			103,276		8.1	%			108,461		8.5	%
Home mortgage		29,606		2.0	%			31,247		2.2	%			32,188		2.3	%			36,522		2.9	%			36,673		2.9	%
Consumer		3,893		0.3	%			3,803		0.3	%			4,174		0.3	%			3,548		0.3	%			3,527		0.3	%
Gross loans held-for-investment		1,454,202		99.8	%			1,401,046		99.7	%			1,393,886		99.7	%			1,268,429		99.7	%			1,273,793		99.7	%
Deferred loan fees/costs, net		3,348		0.2	%			3,527		0.3	%			3,534		0.3	%			4,045		0.3	%			4,313		0.3	%
Loans held-for-investment	$	1,457,550		100.0	%		$	1,404,573		100.0	%		$	1,397,420		100.0	%		$	1,272,474		100.0	%		$	1,278,106		100.0	%
Loans held-for-sale	$	66,477					$	62,173					$	65,419					$	175,158					$	183,996
Total loans receivable	$	1,524,027					$	1,466,746					$	1,462,839					$	1,447,632					$	1,462,102

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,
	2026				2026				2025				2025				2025					2026				2025
SBA loans held-for-sale at beginning of the quarter/year	$	62,173			$	65,419			$	175,158			$	183,996			$	194,542				$	65,419			$	198,448
SBA loans originated/transferred from/to held-for-investment during the quarter/year		42,126				46,078				(77,847	)			19,835				20,135					88,204				43,913
SBA loans sold during the quarter/year		(37,131	)			(48,199	)			(19,702	)			(14,539	)			(17,580	)				(85,330	)			(37,333	)
SBA loans principal paydown/payoff, net of advance		(691	)			(1,125	)			(12,190	)			(14,134	)			(13,101	)				(1,816	)			(21,032	)
SBA loans held-for-sale at end of the quarter/year	$	66,477			$	62,173			$	65,419			$	175,158			$	183,996				$	66,477			$	183,996
Gain on sale of SBA loans	$	1,938			$	2,459			$	802			$	648			$	900				$	4,397			$	1,921
Premium on sale (weighted average)		8.2	%			8.0	%			6.8	%			7.1	%			8.1	%				8.1	%			8.1	%
SBA loan production	$	53,013			$	63,226			$	12,952			$	22,228			$	28,860				$	116,239			$	60,894

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,
	2026				2026				2025				2025				2025						2026				2025
SBA servicing assets @ beginning of the quarter/year	$	6,671			$	6,141			$	6,342			$	6,609			$	6,708					$	6,141			$	6,909
Newly added SBA servicing assets from SBA loans sold		754				1019				405				268				355						1,773				716
Regular quarterly/annual servicing assets amortization		(290	)			(270	)			(279	)			(288	)			(299	)					(560	)			(604	)
SBA servicing assets amortized from SBA loans paid off/charged off		(200	)			(219	)			(327	)			(247	)			(155	)					(419	)			(412	)
Subtotal before impairment		6,935				6,671				6,141				6,342				6,609						6,935				6,609
Reversal of valuation allowance on servicing assets		-				-				-				-				-						-				-
SBA servicing assets @ the end of the quarter/year	$	6,935			$	6,671			$	6,141			$	6,342			$	6,609					$	6,935			$	6,609

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)
	June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025						June 30, 2025
	Balance			%			Balance			%			Balance			%			Balance			%			Balance			%
Noninterest-bearing demand	$	301,491		18.1	%		$	309,194		18.3	%		$	301,775		17.7	%		$	280,351		16.8	%		$	309,160		20.3	%
Interest-bearing demand		7,537		0.5	%			6,362		0.4	%			5,813		0.3	%			5,745		0.3	%			10,698		0.7	%
NOW & MMDA		280,223		16.8	%			291,265		17.3	%			310,147		18.2	%			305,649		18.4	%			274,578		18.0	%
Savings		92,440		5.6	%			92,238		5.5	%			87,036		5.1	%			83,368		5.0	%			85,609		5.6	%
TCDs of $250K and under		436,083		26.2	%			435,372		25.8	%			433,873		25.4	%			419,821		25.2	%			319,209		20.9	%
TCDs of $250K over		485,582		29.2	%			467,016		27.7	%			473,025		27.7	%			471,048		28.3	%			403,676		26.5	%
Wholesale deposits		60,001		3.6	%			85,008		5.0	%			95,658		5.6	%			100,289		6.0	%			121,990		8.0	%
Total Deposits	$	1,663,357		100.0	%		$	1,686,455		100.0	%		$	1,707,327		100.0	%		$	1,666,271		100.0	%		$	1,524,920		100.0	%
Recap:
Noninterest-bearing demand	$	301,491		18.1	%		$	309,194		18.3	%		$	301,775		17.7	%		$	280,351		16.8	%		$	309,160		20.3	%
Interest-bearing demand		7,537		0.5	%			6,362		0.4	%			5,813		0.3	%			5,745		0.3	%			10,698		0.7	%
NOW & MMDA		280,223		16.8	%			291,265		17.3	%			310,147		18.2	%			305,649		18.4	%			274,578		18.0	%
Savings		92,440		5.6	%			92,238		5.5	%			87,036		5.1	%			83,368		5.0	%			85,609		5.6	%
TCDs of $250K and under		436,083		26.2	%			435,372		25.8	%			433,873		25.4	%			419,821		25.2	%			319,209		20.9	%
Core Deposits		1,117,774		67.2	%			1,134,431		67.3	%			1,138,644		66.7	%			1,094,934		65.7	%			999,254		65.5	%
TCDs of $250K over		485,582		29.2	%			467,016		27.7	%			473,025		27.7	%			471,048		28.3	%			403,676		26.5	%
Nonreciprocal ICS MMDA		-		-				-		-				-		-				-		-				-		-
Wholesale deposits		60,001		3.6	%			85,008		5.0	%			95,658		5.6	%			100,289		6.0	%			121,990		8.0	%
Noncore Deposits		545,583		32.8	%			552,024		32.7	%			568,683		33.3	%			571,337		34.3	%			525,666		34.5	%
Total Deposits	$	1,663,357		100.0	%		$	1,686,455		100.0	%		$	1,707,327		100.0	%		$	1,666,271		100.0	%		$	1,524,920		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.
	2026				2026				2025				2025				2025
Allowance for Credit Losses
Balance at beginning of period	$	16,854			$	16,345			$	16,151			$	15,461			$	14,850
Provision for credit losses		500				500				210				500				590
Charge-offs		-				(1	)			(27	)			-				(143	)
Recoveries		3				10				11				190				164
Balance at the end of period	$	17,357			$	16,854			$	16,345			$	16,151			$	15,461
Nonperforming Assets:¹
Over 90 days still accruing	$	-			$	-			$	-			$	1,237			$	1,487
Nonaccrual loans		20,367				17,066				15,960				14,865				12,213
Total nonperforming loans		20,367				17,066				15,960				16,102				13,700
Other real estate owned	$	1,192				5,651				5,651				297				2,999
Total nonperforming assets	$	21,559			$	22,717			$	21,611			$	16,399			$	16,699
Classified Assets:¹
Substandard	$	29,868			$	23,147			$	29,666			$	31,465			$	30,442
Doubtful		-				-				-				-				-
Loss		-				-				-				-				-
Total classified loans	$	29,868			$	23,147			$	29,666			$	31,465			$	30,442
Other real estate owned	$	1,192				5,651				5,651				297				2,999
Total classified assets	$	31,060			$	28,798			$	35,317			$	31,762			$	33,441
Performing modified loans:¹	$	-			$	-			$	1,176			$	160			$	160
Delinquent Loans:¹
Loans 30-89 days past due	$	8,056			$	11,078			$	7,563			$	7,478			$	11,548
90 days or more past due and still accruing		-				-				-				1,237				1,487
Nonaccrual		20,367				17,066				15,960				14,865				12,213
Total delinquent loans	$	28,423			$	28,144			$	23,523			$	23,580			$	25,248
Asset Quality Ratios:
Net (recoveries) charge-offs to average loans²		0.00	%			0.00	%			0.00	%			(0.05	%)			(0.01	%)
Nonaccrual loans to loans held-for-investment		1.40	%			1.22	%			1.14	%			1.17	%			0.96	%
Nonperforming loans to loans held-for-investment		1.40	%			1.22	%			1.14	%			1.27	%			1.07	%
Nonperforming assets to total assets		1.10	%			1.14	%			1.08	%			0.84	%			0.92	%
Classified loans to loans held-for-investment		2.05	%			1.65	%			2.12	%			2.47	%			2.38	%
Classified loans to Tier 1 and ACL		10.24	%			8.05	%			10.49	%			11.27	%			11.07	%
Classified assets to total assets		1.58	%			1.45	%			1.76	%			1.62	%			1.84	%
Classified assets to Tier 1 and ACL		10.65	%			10.01	%			12.49	%			11.37	%			12.16	%
ACL to loans held-for-investment		1.19	%			1.20	%			1.17	%			1.27	%			1.21	%
ACL to nonaccrual loans		85.22	%			98.76	%			102.41	%			108.65	%			126.59	%
ACL to nonperforming loans		85.22	%			98.76	%			102.41	%			100.30	%			112.85	%
ACL to nonperforming assets		80.51	%			74.19	%			75.63	%			98.49	%			92.59	%
Texas ratio ³		7.39	%			7.90	%			7.64	%			5.87	%			6.07	%
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		June 30,				March 31,				December 31,				September 30,				June 30,
		Regulatory		BASEL III
		Requirement		Fully Phased In		2026				2026				2025				2025				2025
Leverage ratio
Company		N/A		N/A			13.99	%			13.78	%			13.25	%			14.34	%			14.48	%
Bank		5.00%		4.00%			13.93	%			13.76	%			13.23	%			14.32	%			14.45	%
Common equity tier 1 risk-based capital ratio
Company		N/A		N/A			18.73	%			19.24	%			19.03	%			19.26	%			18.98	%
Bank		6.50%		7.00%			18.65	%			19.22	%			19.01	%			19.22	%			18.94	%
Tier 1 risk-based capital ratio
Company		N/A		N/A			18.73	%			19.24	%			19.03	%			19.26	%			18.98	%
Bank		8.00%		8.50%			18.65	%			19.22	%			19.01	%			19.22	%			18.94	%
Total risk-based capital ratio
Company		N/A		N/A			19.94	%			20.47	%			20.22	%			20.46	%			20.13	%
Bank		10.00%		10.50%			19.87	%			20.45	%			20.20	%			20.42	%			20.09	%
Tangible common equity/total assets							13.97	%			13.61	%			13.29	%			13.43	%			14.32	%
Tangible common equity per share						$	25.91			$	25.57			$	25.16			$	24.85			$	24.51

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)
	Three Months Ended
	June 30, 2026										March 31, 2026											December 31, 2025											September 30, 2025											June 30, 2025
	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	$	1,501,200			$	24,318		6.50	%		$	1,482,057			$	23,778		6.51	%			$	1,475,995			$	24,828		6.67	%			$	1,463,183			$	24,653		6.68	%			$	1,461,584			$	24,171		6.63	%
Investment securities ²		64,176				653		4.08	%			65,507				657		4.07	%				65,279				676		4.10	%				66,623				707		4.21	%				64,990				686		4.23	%
Interest-earning deposits at the FRB and other banks		346,082				3,193		3.70	%			366,481				3,343		3.70	%				420,854				4,213		3.97	%				254,301				2,826		4.41	%				214,514				2,383		4.46	%
Other earning assets		11,075				293		10.61	%			11,016				434		15.98	%				11,011				202		7.28	%				11,011				201		7.24	%				11,011				200		7.29	%
Total interest-earning assets ²		1,922,533				28,457		5.94	%			1,925,061				28,212		5.94	%				1,973,139				29,919		6.02	%				1,795,118				28,387		6.27	%				1,752,099				27,440		6.28	%
NONINTEREST-EARNING ASSETS
Cash and due from banks		11,796										10,909											11,799											14,221											11,512
Other noninterest-earning assets		42,660										44,918											40,927											40,578											44,078
Total noninterest-earning assets		54,456										55,827											52,726											54,799											55,590
Less: Allowance for credit losses		(16,938	)									(16,355	)										(16,152	)										(15,577	)										(14,899	)
TOTAL ASSETS	$	1,960,051									$	1,964,533										$	2,009,713										$	1,834,340										$	1,792,790
INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,636			$	5		0.20	%		$	9,415			$	5		0.20	%			$	9,432			$	4		0.20	%			$	9,682			$	5		0.20	%			$	9,957			$	5		0.20	%
Money market		280,759				2,460		3.51	%			286,298				2,451		3.47	%				324,316				2,990		3.66	%				282,010				2,699		3.80	%				263,197				2,540		3.87	%
Savings		90,272				686		3.05	%			87,429				653		3.03	%				83,166				644		3.07	%				84,339				653		3.07	%				83,261				633		3.05	%
Time deposits		971,648				9,885		4.08	%			998,868				10,223		4.15	%				998,575				10,573		4.20	%				863,224				9,251		4.25	%				847,092				9,159		4.34	%
Total interest-bearing deposits		1,352,315				13,036		3.87	%			1,382,010				13,332		3.91	%				1,415,489				14,211		3.98	%				1,239,255				12,608		4.04	%				1,203,507				12,337		4.11	%
Borrowings		1				-		0.0	%			-				-		-					2				-		0.0	%				-				-		-					4,122				8		0.78	%
Total interest-bearing liabilities		1,352,316				13,036		3.87	%			1,382,010				13,332		3.91	%				1,415,491				14,211		3.98	%				1,239,255				12,608		4.04	%				1,207,629				12,345		4.10	%
Noninterest-bearing deposits		301,938										279,851											294,726											301,776											296,496
Other liabilities		31,484										31,922											32,412											29,249											28,026
Stockholders' equity		274,313										270,750											267,084											264,060											260,639
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,960,051									$	1,964,533										$	2,009,713										$	1,834,340										$	1,792,790
Net interest income²					$	15,421									$	14,880										$	15,708										$	15,779										$	15,095
Net interest spread								2.07	%									2.03	%										2.04	%										2.23	%										2.18	%
Effect of noninterest-bearing sources								1.15	%									1.10	%										1.12	%										1.26	%										1.28	%
Net interest margin²								3.22	%									3.13	%										3.16	%										3.49	%										3.46	%
Cost of deposits	$	1,654,253			$	13,036		3.16	%		$	1,661,861			$	13,332		3.25	%			$	1,710,215			$	14,211		3.30	%			$	1,541,031			$	12,608		3.25	%			$	1,500,003			$	12,337		3.30	%
Cost of funds	$	1,654,254			$	13,036		3.16	%		$	1,661,861			$	13,332		3.25	%			$	1,710,217			$	14,211		3.30	%			$	1,541,031			$	12,608		3.25	%			$	1,504,125			$	12,345		3.29	%
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, 2026							March 31,2026							December 31, 2025							September 30, 2025							June 30, 2025
		Amount				Yield			Amount				Yield			Amount				Yield			Amount				Yield			Amount				Yield
Contractual yield		$	23,678			6.33	%		$	23,193			6.35	%		$	24,154			6.49	%		$	24,171			6.55	%		$	23,731			6.51	%
SBA discount accretion			697			0.19	%			636			0.17	%			883			0.24	%			728			0.20	%			588			0.16	%
Prepayment penalties and late fees			33			0.01	%			96			0.03	%			50			0.01	%			51			0.01	%			53			0.01	%
Amortization of net deferred costs			(90	)		(0.03	%)			(147	)		(0.04	%)			(259	)		(0.07	%)			(297	)		(0.08	%)			(201	)		(0.05	%)
As reported yield on loans		$	24,318			6.50	%		$	23,778			6.51	%		$	24,828			6.67	%		$	24,653			6.68	%		$	24,171			6.63	%

MARGIN ANALYSIS (Unaudited) - Table 14
(Dollars in thousands)
	Six Months Ended
	June 30, 2026												June 30, 2025
	Avg Balance				Interest			Yield					Avg Balance				Interest			Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans Receivable ¹	$	1,491,681			$	48,096		6.50	%				$	1,449,780			$	47,789		6.65	%
Investment securities ²		64,838				1,310		4.07	%					63,469				1,353		4.30	%
Interest-earning deposits at the FRB and other banks		356,225				6,536		3.70	%					244,844				5,412		4.46	%
Other earning assets		11,046				727		13.27	%					11,011				403		7.38	%
Total interest-earning assets ²		1,923,790				56,669		5.94	%					1,769,104				54,957		6.26	%
NONINTEREST-EARNING ASSETS
Cash and due from banks		11,355												11,784
Other noninterest-earning assets		43,783												42,701
Total noninterest-earning assets		55,138												54,485
Less: Allowance for credit losses		(16,648	)											(15,232	)
TOTAL ASSETS	$	1,962,280											$	1,808,357
INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,527			$	10		0.20	%				$	9,790			$	10		0.20	%
Money market		283,513				4,911		3.49	%					264,435				5,095		3.89	%
Savings		88,859				1,339		3.04	%					83,618				1,271		3.07	%
Time deposits		985,182				20,108		4.12	%					838,927				18,490		4.44	%
Total interest-bearing deposits		1,367,081				26,368		3.89	%					1,196,770				24,866		4.19	%
Borrowings		1				-		0.00	%					26,382				123		0.94	%
Total interest-bearing liabilities		1,367,082				26,368		3.89	%					1,223,152				24,989		4.12	%
Noninterest-bearing deposits		290,955												297,532
Other liabilities		31,701												28,603
Stockholders' equity		272,542												259,070
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,962,280											$	1,808,357
Net interest income²					$	30,301											$	29,968
Net interest spread								2.05	%											2.14	%
Effect of noninterest-bearing sources								1.13	%											1.28	%
Net interest margin²								3.18	%											3.42	%
Cost of deposits	$	1,658,036			$	26,368		3.21	%				$	1,494,302			$	24,866		3.36	%
Cost of funds	$	1,658,037			$	26,368		3.21	%				$	1,520,684			$	24,989		3.31	%
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, 2026							June 30, 2025
		Amount				Yield			Amount				Yield
Contractual yield		$	46,871			6.34	%		$	46,597			6.48	%
SBA discount accretion			1,333			0.18	%			1,369			0.19	%
Prepayment penalties and late fees			129			0.02	%			189			0.03	%
Amortization of net deferred costs			(237	)		(0.04	%)			(366	)		(0.05	%)
As reported yield on loans		$	48,096			6.50	%		$	47,789			6.65	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260723540469/en/

Kent Smith, EVP & CFO
(213) 296-5737
kent.smith@cbb-bank.com

Source: CBB Bancorp, Inc.