CBB Bancorp, Inc. Reports Third Quarter 2026 Financial Results

Higher earnings accompanied rising nonperforming assets and lower deposits, while the Bank remained well capitalized.

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10/23/2026 - 09:00 AM EDT

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 $5.1 million for the third quarter 2026, or $0.48 per diluted share, up from $4.9 million in the second quarter 2026, or $0.46 per diluted share. For the nine months ending September 30, 2026, net income was $15.7 million, or $1.47 per diluted share, up from $13.4 million, or $1.27 per diluted share, for the same period in 2025.

Third Quarter 2026 Highlights

Return on Assets of 1.03%
Net income of $5.1 million, or $0.48 per diluted share
Total loan growth accelerated to a 16.1% annualized rate

Seungho Park, President and CEO, said, “The quarter was marked by higher earnings and continued net interest margin expansion as our team successfully executed strategies to enhance asset yields, optimize funding costs, and deepen customer relationships. Combined with our robust capital ratios and strong liquidity profile, these results underscore the resilience of our business model and our ability to generate consistent value across varying market conditions. Supported by robust capital levels, sound credit quality, and a disciplined approach to growth, we remain well positioned to capitalize on market opportunities while preserving the financial flexibility needed to support our customers and create long-term shareholder value.”

INCOME STATEMENT

Net Interest Income

Net interest income for the third quarter 2026 was $16.5 million, an increase of $1.2 million or 7.6% from the prior quarter and $813 thousand, or 5.2% from the third quarter 2025. The increase in net interest income from the prior quarter was primarily attributable to the increase in margin and to a lesser extent having one more day in the quarter and higher average interest-earning assets. The net interest margin for the third quarter 2026 was 3.40%, up from 3.22% for the second quarter of 2026, but down from 3.49% for the third quarter of 2025. The margin included higher interest earning asset yields by ten basis points and lower interest-bearing liabilities costs by five basis points.

The overall cost of funds for the third quarter of 2026 was 3.08%, down from 3.16% for the second quarter of 2026 and 3.25% for the third quarter of 2025.

Provision for Credit Losses

The Company recorded no provision for credit losses for the third quarter of 2026, compared to $500 thousand in the second quarter of 2026 and $470 thousand in the third quarter of 2025. During the current quarter, a significant improvement in the reserve requirement for one loan offset additional reserves otherwise warranted by changes in the remainder of the loan portfolio. The allowance credit loss (“ACL”) to loans held-for-investment ratio decreased five basis points to 1.14% from the prior quarter.

Noninterest Income

Noninterest income for the third quarter of 2026 was $2.3 million, down from $3.1 million in the prior quarter, but up from $1.9 million in the third quarter of 2025. The current quarter-over-quarter decrease in noninterest income was primarily the result of a lower gain on sales of loans of $888 thousand as a lower balance of loans were sold.

Noninterest Expenses

Noninterest expenses totaled $11.7 million for the third quarter of 2026, up from $11.2 million in the prior quarter and $10.8 million in the third quarter of 2025. Noninterest expense increased by $551 thousand in the current quarter over the prior quarter primarily due to higher occupancy and equipment costs of $218 thousand, other operating expenses of $155 thousand and professional expense of $105 thousand.

The efficiency ratio was 62.20%, up from 60.55% in the prior quarter and 61.48% in the year-ago quarter. The efficiency ratio increase from the prior quarter was primarily due to the increase in non-interest expense outpacing total revenue, primarily due to lower gains on sales of loans.

Income Taxes

The Company’s effective tax rate for the third quarter of 2026 was 28.6%, compared to 27.8% for the second quarter of 2026 and 27.9% for the third quarter of 2025.

BALANCE SHEET

Investment Securities

Investment securities were $54.1 million at September 30, 2026, a decrease of $9.4 million, or 14.8%, from June 30, 2026, and a decrease of $13.4 million, or 19.8%, from September 30, 2025. The quarterly decline was mainly driven by called and matured securities of $7.8 million.

Loans Receivable

Loans receivable, including loans held-for-sale, totaled $1.59 billion at September 30, 2026, an increase of $62.0 million, or 4.1%, from the prior quarter and $138.4 million, or 9.6%, from a year earlier.

Allowance for Credit Losses and Asset Quality

The ACL was $17.1 million at September 30, 2026, representing 1.14% of loans held-for-investment, compared to $17.4 million, or 1.19%, at June 30, 2026, and $16.2 million, or 1.27%, at September 30, 2025.

Total nonperforming assets at September 30, 2026, were $25.5 million up from $21.6 million at June 30, 2026, and up from $16.4 million at September 30, 2025, primarily driven by an increase in nonaccrual loans.

The ACL coverage to nonperforming assets was 66.99% at September 30, 2026, down from 80.51% in the previous quarter, and down from 98.49% in the year-ago quarter.

Loans Held-for-Sale

Total SBA loans held-for-sale were $85.4 million as of September 30, 2026, up from $66.5 million at June 30, 2026, but down from $175.2 million at September 30, 2025.

During the current quarter, the Bank sold $18.4 million in SBA loans at an average premium of 8.9%, down from $37.1 million sold at an average premium of 8.2% in the prior quarter, but up from $14.5 million sold at 7.1% average premium in the third quarter of 2025.

Deposits

Total deposits were $1.62 billion at September 30, 2026, down $45.1 million, or 2.7%, from the prior quarter, and down $48.0 million, or 2.9%, from a year earlier. The quarter-over-quarter decrease was primarily driven by lower balances in the time deposits and wholesale deposits.

Borrowings

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

Capital

Stockholders’ equity was $280.4 million at September 30, 2026, up $3.8 million, or 1.4%, from the prior quarter. Tangible book value per share was $26.18, an increase of $0.27, or 1.0%, from the previous quarter.

At quarter-end, the Company and the Bank maintained strong capital positions, with Common Equity Tier 1 Risk-Based Capital Ratios of 18.39% and 18.30%, respectively. Total Risk-Based Capital Ratios were 19.55% for the Company and 19.46% for the Bank, while Leverage Ratios were 14.15% and 14.08%, respectively. The Bank remained classified as “Well Capitalized” under all applicable regulatory capital 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 September 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 3Q 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. Additional factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include deterioration in credit quality; changes in the level of nonperforming assets, charge-offs, and classified loans; changes in the adequacy of the allowance for credit losses; fluctuations in liquidity, deposits, funding sources, or funding costs; cybersecurity incidents, fraud events, and technology disruptions; inflationary pressures; geopolitical events; and other risks and uncertainties affecting the Company's business and operations. There can be no assurance that future developments affecting the Company will be those anticipated by management.

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																			Nine Months Ended
		September 30,			June 30,			$			%		September 30,			$			%		September 30,			September 30,			$			%
			2026			2026		Change			Change			2025		Change			Change			2026			2025		Change			Change

Interest income		$	29,467		$	28,406		$	1,061		3.7	%	$	28,338		$	1,129		4.0	%	$	86,037		$	83,197		$	2,840		3.4	%
Interest expense			12,924			13,036			(112	)	(0.9	%)		12,608			316		2.5	%		39,292			37,597			1,695		4.5	%
Net interest income			16,543			15,370			1,173		7.6	%		15,730			813		5.2	%		46,745			45,600			1,145		2.5	%

Provision for credit losses			-			500			(500	)	(100.0	%)		470			(470	)	(100.0	%)		1,000			1,560			(560	)	(35.9	%)
Net interest income after provision for credit losses			16,543			14,870			1,673		11.3	%		15,260			1,283		8.4	%		45,745			44,040			1,705		3.9	%

Gain on sale of loans			1,050			1,938			(888	)	(45.8	%)		648			402		62.0	%		5,447			2,569			2,878		112.0	%
Gain/(Loss) on sale of OREO			-			(96	)		96		100.0	%		29			(29	)	(100.0	%)		(96	)		(130	)		34		26.2	%
SBA servicing fee income, net			750			774			(24	)	(3.1	%)		705			45		6.4	%		2,226			2,195			31		1.4	%
Recovery on impaired servicing liability			-			-			-		-			-			-		-			-			-			-		-
Service charges and other income			510			469			41		8.7	%		469			41		8.7	%		1,460			1,415			45		3.2	%
Noninterest income			2,310			3,085			(775	)	(25.1	%)		1,851			459		24.8	%		9,037			6,049			2,988		49.4	%

Salaries and employee benefits			6,674			6,655			19		0.3	%		5,849			825		14.1	%		19,191			17,476			1,715		9.8	%
Occupancy and equipment			1,544			1,326			218		16.4	%		1,378			166		12.0	%		4,302			3,985			317		8.0	%
Marketing expense			472			418			54		12.9	%		397			75		18.9	%		1,286			1,016			270		26.6	%
Professional expense			622			517			105		20.3	%		699			(77	)	(11.0	%)		1,538			1,748			(210	)	(12.0	%)
Other expenses			2,414			2,259			155		6.9	%		2,485			(71	)	(2.9	%)		6,717			7,092			(375	)	(5.3	%)
Noninterest expense			11,726			11,175			551		4.9	%		10,808			918		8.5	%		33,034			31,317			1,717		5.5	%

Income before income tax expense			7,127			6,780			347		5.1	%		6,303			824		13.1	%		21,748			18,772			2,976		15.9	%

Income tax expense			2,036			1,883			153		8.1	%		1,758			278		15.8	%		6,090			5,379			711		13.2	%

Net income		$	5,091		$	4,897		$	194		4.0	%	$	4,545		$	546		12.0	%	$	15,658		$	13,393		$	2,265		16.9	%

Effective tax rate			28.57	%		27.77	%		0.79	%	2.86	%		27.89	%		0.68	%	2.4	%		28.00	%		28.65	%		(0.65	%)	(2.27	%)

Outstanding number of shares			10,621,136			10,588,136			33,000		0.3	%		10,588,136			33,000		0.3	%		10,621,136			10,588,136			33,000		0.3	%

Weighted average shares for basic EPS			10,610,375			10,588,136			22,239		0.2	%		10,588,136			22,239		0.2	%		10,595,631			10,588,136			7,495		0.1	%
Weighted average shares for diluted EPS			10,667,090			10,617,843			49,247		0.5	%		10,600,724			66,366		0.6	%		10,633,052			10,599,692			33,360		0.3	%

Basic EPS		$	0.48		$	0.46		$	0.02		4.3	%	$	0.43		$	0.05		11.6	%	$	1.48		$	1.27		$	0.21		16.5	%
Diluted EPS		$	0.48		$	0.46		$	0.02		4.3	%	$	0.43		$	0.05		11.6	%	$	1.47		$	1.27		$	0.20		15.7	%

Return on average assets			1.03	%		1.00	%		0.03	%	3.0	%		0.98	%		0.05	%	5.1	%		1.07	%		0.99	%		0.08	%	8.1	%
Return on average equity			7.25	%		7.16	%		0.09	%	1.3	%		6.83	%		0.42	%	6.2	%		7.62	%		6.87	%		0.75	%	10.9	%

Efficiency ratio			62.20	%		60.55	%		1.65	%	2.7	%		61.48	%		0.72	%	1.2	%		59.22	%		60.63	%		(1.41	%)	(2.3	%)
Yield on interest-earning assets¹			6.04	%		5.94	%		0.10	%	1.7	%		6.27	%		(0.23	%)	(3.7	%)		5.97	%		6.27	%		(0.30	%)	(4.8	%)
Cost of funds			3.08	%		3.16	%		(0.08	%)	(2.5	%)		3.25	%		(0.17	%)	(5.2	%)		3.17	%		3.29	%		(0.12	%)	(3.6	%)
Net interest margin¹			3.40	%		3.22	%		0.18	%	5.6	%		3.49	%		(0.09	%)	(2.7	%)		3.25	%		3.44	%		(0.19	%)	(5.5	%)

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)

		September 30,			June 30,			$			%		September 30,			$			%
			2026			2026		Change			Change			2025		Change			Change
ASSETS
	Cash and due from banks	$	11,370		$	12,089		$	(719	)	(5.9	%)	$	25,597		$	(14,227	)	(55.6	%)
	Interest-earning deposits at the FRB and other banks		237,374			335,457			(98,083	)	(29.2	%)		385,282			(147,908	)	(38.4	%)
	Investment securities¹		54,077			63,455			(9,378	)	(14.8	%)		67,459			(13,382	)	(19.8	%)
	Loans held-for-sale		85,400			66,477			18,923		28.5	%		175,158			(89,758	)	(51.2	%)

	Loans held-for-investment		1,500,636			1,457,550			43,086		3.0	%		1,272,474			228,162		17.9	%
	Less: Allowance for credit losses ("ACL")		(17,061	)		(17,357	)		296		1.7	%		(16,151	)		(910	)	(5.6	%)
	Loans held-for-investment, net		1,483,575			1,440,193			43,382		3.0	%		1,256,323			227,252		18.1	%

	Other real estate owned ("OREO")		1,600			1,192			408		34.2	%		297			1,303		438.7	%
	Restricted stock investments		11,086			11,086			-		-			11,011			75		0.7	%
	Servicing assets		6,778			6,935			(157	)	(2.3	%)		6,342			436		6.9	%
	Goodwill		2,185			2,185			-		-			2,185			-		-
	Intangible assets		150			159			(9	)	(5.7	%)		186			(36	)	(19.4	%)
	Other assets		27,336			27,075			261		1.0	%		32,602			(5,266	)	(16.2	%)
	Total assets	$	1,920,931		$	1,966,303		$	(45,372	)	(2.3	%)	$	1,962,442		$	(41,511	)	(2.1	%)

LIABILITIES AND STOCKHOLDERS' EQUITY
	Noninterest-bearing	$	341,980		$	301,491		$	40,489		13.4	%	$	280,351		$	61,629		22.0	%
	Interest-bearing		1,276,263			1,361,866			(85,603	)	(6.3	%)		1,385,920			(109,657	)	(7.9	%)
	Total deposits		1,618,243			1,663,357			(45,114	)	(2.7	%)		1,666,271			(48,028	)	(2.9	%)

	FHLB advances and other borrowing		-			-			-		-			-			-		-
	Other liabilities		22,291			26,316			(4,025	)	(15.3	%)		30,649			(8,358	)	(27.3	%)
	Total liabilities		1,640,534			1,689,673			(49,139	)	(2.9	%)		1,696,920			(56,386	)	(3.3	%)

	Stockholders' Equity		280,397			276,630			3,767		1.4	%		265,522			14,875		5.6	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,920,931		$	1,966,303		$	(45,372	)	(2.3	%)	$	1,962,442		$	(41,511	)	(2.1	%)

CAPITAL RATIOS
	Leverage ratio
	Company		14.15	%		13.99	%		0.15	%	1.1	%		14.34	%		(0.20	%)	(1.4	%)
	Bank		14.08	%		13.93	%		0.14	%	1.0	%		14.32	%		(0.24	%)	(1.7	%)
	Common equity tier 1 risk-based capital ratio
	Company		18.39	%		18.73	%		(0.34	%)	(1.8	%)		19.26	%		(0.86	%)	(4.5	%)
	Bank		18.30	%		18.65	%		(0.35	%)	(1.9	%)		19.22	%		(0.92	%)	(4.8	%)
	Tier 1 risk-based capital ratio
	Company		18.39	%		18.73	%		(0.34	%)	(1.8	%)		19.26	%		(0.86	%)	(4.5	%)
	Bank		18.30	%		18.65	%		(0.35	%)	(1.9	%)		19.22	%		(0.92	%)	(4.8	%)
	Total risk-based capital ratio
	Company		19.55	%		19.94	%		(0.39	%)	(2.0	%)		20.46	%		(0.91	%)	(4.4	%)
	Bank		19.46	%		19.87	%		(0.41	%)	(2.0	%)		20.42	%		(0.96	%)	(4.7	%)

	Tangible book value per share	$	26.18		$	25.91		$	0.27		1.0	%	$	24.85		$	1.33		5.4	%
	Common shares outstanding		10,621,136			10,588,136			33,000		0.3	%		10,588,136			33,000		0.3	%
	Loans Held for Investments-to-Deposit ("LHFITD") ratio		92.73	%		87.63	%		5.10	%	5.8	%		76.37	%		16.36	%	21.4	%
	Net Loan-to-Deposit ("LTD") ratio		96.96	%		90.58	%		6.38	%	7.0	%		85.91	%		11.05	%	12.9	%
	Nonperforming assets	$	25,469		$	21,559		$	3,910		18.1	%	$	16,399		$	9,070		55.3	%
	Nonperforming assets as a % of loans held-for-investment		1.70	%		1.48	%		0.22	%	14.9	%		1.29	%		0.41	%	31.8	%
	ACL as a % of loans held-for-investment		1.14	%		1.19	%		(0.05	%)	(4.2	%)		1.27	%		(0.13	%)	(10.2	%)

¹ Includes AFS and HTM

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

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2026			2026			2026			2025			2025

Interest income	$	29,467		$	28,406		$	28,164		$	29,869		$	28,338
Interest expense		12,924			13,036			13,332			14,211			12,608
Net interest income		16,543			15,370			14,832			15,658			15,730

Provision for credit losses		-			500			500			300			470
Net interest income after provision for credit losses		16,543			14,870			14,332			15,358			15,260

Gain on sale of loans		1,050			1,938			2,459			802			648
Gain/(Loss) on sale of OREO		-			(96	)		-			-			29
SBA servicing fee income, net		750			774			702			587			705
Recovery on impaired servicing liability		-			-			-			-			-
Service charges and other income		510			469			481			428			469
Noninterest income		2,310			3,085			3,642			1,817			1,851

Salaries and employee benefits		6,674			6,655			5,862			6,478			5,849
Occupancy and equipment		1,544			1,326			1,432			1,400			1,378
Marketing expense		472			418			396			380			397
Professional expense		622			517			399			519			699
Other expenses		2,414			2,259			2,044			2,255			2,485
Noninterest expense		11,726			11,175			10,133			11,032			10,808

Income before income tax expense		7,127			6,780			7,841			6,143			6,303

Income tax expense		2,036			1,883			2,171			1,641			1,758

Net income	$	5,091		$	4,897		$	5,670		$	4,502		$	4,545

Effective tax rate		28.57	%		27.77	%		27.69	%		26.71	%		27.89	%

Outstanding number of shares		10,621,136			10,588,136			10,588,136			10,588,136			10,588,136

Weighted average shares for basic EPS		10,610,375			10,588,136			10,588,136			10,588,136			10,588,136
Weighted average shares for diluted EPS		10,667,090			10,617,843			10,613,980			10,602,538			10,600,724

Basic EPS	$	0.48		$	0.46		$	0.54		$	0.42		$	0.43
Diluted EPS	$	0.48		$	0.46		$	0.53		$	0.42		$	0.43

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

	At or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2026			2026			2026			2025			2025

Salaries and benefits	$	6,674		$	6,655		$	5,862		$	6,478		$	5,849
FTE at the end of period		180			178			172			174			171
Average FTE during the period		178			175			174			170			168
Salaries and benefits/average FTE¹	$	148		$	152		$	137		$	151		$	138
Salaries and benefits/average assets¹		1.35	%		1.36	%		1.21	%		1.28	%		1.27	%
Noninterest expense/average assets¹		2.36	%		2.29	%		2.09	%		2.18	%		2.34	%

¹ Annualized

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

		September 30,			June 30,			March 31,			December 31,			September 30,
			2026			2026			2026			2025			2025
ASSETS
	Cash and due from banks	$	11,370		$	12,089		$	13,776		$	10,265		$	25,597
	Interest-earning deposits at the FRB and other banks		237,374			335,457			405,896			426,000			385,282
	Investment securities		54,077			63,455			64,674			65,730			67,459
	Loans held-for-sale		85,400			66,477			62,173			65,419			175,158

	Loans held-for-investment		1,500,636			1,457,550			1,404,573			1,397,420			1,272,474
	Less: Allowance for credit losses		(17,061	)		(17,357	)		(16,854	)		(16,345	)		(16,151	)
	Loans held-for-investment, net		1,483,575			1,440,193			1,387,719			1,381,075			1,256,323

	Other real estate owned		1,600			1,192			5,651			5,651			297
	Restricted stock investments		11,086			11,086			11,021			11,011			11,011
	Servicing assets		6,778			6,935			6,671			6,141			6,342
	Goodwill		2,185			2,185			2,185			2,185			2,185
	Intangible assets		150			159			168			176			186
	Other assets		27,336			27,075			30,964			33,373			32,602
	Total assets	$	1,920,931		$	1,966,303		$	1,990,898		$	2,007,026		$	1,962,442

LIABILITIES AND STOCKHOLDERS' EQUITY
	Noninterest-bearing	$	341,980		$	301,491		$	309,194		$	301,775		$	280,351
	Interest-bearing		1,276,263			1,361,866			1,377,261			1,405,552			1,385,920
	Total deposits		1,618,243			1,663,357			1,686,455			1,707,327			1,666,271

	FHLB advances		-			-			-			-			-
	Other liabilities		22,291			26,316			31,380			30,950			30,649
	Total liabilities		1,640,534			1,689,673			1,717,835			1,738,277			1,696,920

	Stockholders' Equity		280,397			276,630			273,063			268,749			265,522
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,920,931		$	1,966,303		$	1,990,898		$	2,007,026		$	1,962,442

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

	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
	Balance		%		Balance		%		Balance		%		Balance		%		Balance		%

Construction	$	20,945	1.4	%	$	19,396	1.3	%	$	21,063	1.5	%	$	18,566	1.3	%	$	36,480	2.9	%
Commercial real estate		1,304,848	87.0	%		1,265,931	86.9	%		1,209,647	86.1	%		1,204,652	86.2	%		1,088,603	85.6	%
Commercial and industrial		141,914	9.4	%		135,376	9.3	%		135,286	9.6	%		134,306	9.6	%		103,276	8.1	%
Home mortgage		25,390	1.7	%		29,606	2.0	%		31,247	2.2	%		32,188	2.3	%		36,522	2.9	%
Consumer		3,942	0.3	%		3,893	0.3	%		3,803	0.3	%		4,174	0.3	%		3,548	0.3	%
Gross loans held-for-investment		1,497,039	99.8	%		1,454,202	99.8	%		1,401,046	99.7	%		1,393,886	99.7	%		1,268,429	99.7	%

Deferred loan fees/costs, net		3,597	0.2	%		3,348	0.2	%		3,527	0.3	%		3,534	0.3	%		4,045	0.3	%
Loans held-for-investment	$	1,500,636	100.0	%	$	1,457,550	100.0	%	$	1,404,573	100.0	%	$	1,397,420	100.0	%	$	1,272,474	100.0	%

Loans held-for-sale	$	85,400			$	66,477			$	62,173			$	65,419			$	175,158
Total loans receivable	$	1,586,036			$	1,524,027			$	1,466,746			$	1,462,839			$	1,447,632

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

	Three Months Ended															NIne Months Ended
	September 30,			June 30			March 31,			December 31,			September 30,			September 30,			September 30,
		2026			2026			2026			2025			2025			2026			2025

SBA loans held-for-sale at beginning of the quarter/year	$	66,477		$	62,173		$	65,419		$	175,158		$	183,996		$	65,419		$	198,448
SBA loans originated/transferred from/to held-for-
investment during the quarter/year		42,223			42,126			46,078			(77,847	)		19,835			130,427			63,748
SBA loans sold during the quarter/year		(18,417	)		(37,131	)		(48,199	)		(19,702	)		(14,539	)		(103,747	)		(51,872	)
SBA loans principal paydown/payoff, net of advance		(4,883	)		(691	)		(1,125	)		(12,190	)		(14,134	)		(6,699	)		(35,166	)
SBA loans held-for-sale at end of the quarter/year	$	85,400		$	66,477		$	62,173		$	65,419		$	175,158		$	85,400		$	175,158

Gain on sale of SBA loans	$	1,050		$	1,938		$	2,459		$	802		$	648		$	5,447		$	2,569
Premium on sale (weighted average)		8.9	%		8.2	%		8.0	%		6.8	%		7.1	%		8.2	%		7.8	%

SBA loan production	$	49,242		$	53,013		$	63,226		$	12,952		$	22,228		$	165,480		$	83,122

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

	Three Months Ended															NIne Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September			September
		2026			2026			2026			2025			2025			2026			2025


SBA servicing assets @ beginning of the quarter/year	$	6,935		$	6,671		$	6,141		$	6,342		$	6,609		$	6,141		$	6,909

Newly added SBA servicing assets from SBA loans sold		380			754			1019			405			268			2,153			984
Regular quarterly/annual servicing assets amortization		(302	)		(290	)		(270	)		(279	)		(288	)		(862	)		(892	)
SBA servicing assets amortized from SBA loans paid off/charged off		(235	)		(200	)		(219	)		(327	)		(247	)		(654	)		(659	)

Subtotal before impairment		6,778			6,935			6,671			6,141			6,342			6,778			6,342

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

SBA servicing assets @ the end of the quarter/year	$	6,778		$	6,935		$	6,671		$	6,141		$	6,342		$	6,778		$	6,342

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

	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
	Balance		%		Balance		%		Balance		%		Balance		%		Balance		%

Noninterest-bearing demand	$	341,980	21.1	%	$	301,491	18.1	%	$	309,194	18.3	%	$	301,775	17.7	%	$	280,351	16.8	%
Interest-bearing demand		5,719	0.3	%		7,537	0.5	%		6,362	0.4	%		5,813	0.3	%		5,745	0.3	%
NOW & MMDA		302,081	18.7	%		280,223	16.8	%		291,265	17.3	%		310,147	18.2	%		305,649	18.4	%
Savings		101,413	6.3	%		92,440	5.6	%		92,238	5.5	%		87,036	5.1	%		83,368	5.0	%
TCDs of $250K and under		381,841	23.6	%		436,083	26.2	%		435,372	25.8	%		433,873	25.4	%		419,821	25.2	%
TCDs of $250K over		455,208	28.1	%		485,582	29.2	%		467,016	27.7	%		473,025	27.7	%		471,048	28.3	%
Wholesale deposits		30,001	1.9	%		60,001	3.6	%		85,008	5.0	%		95,658	5.6	%		100,289	6.0	%
Total Deposits	$	1,618,243	100.0	%	$	1,663,357	100.0	%	$	1,686,455	100.0	%	$	1,707,327	100.0	%	$	1,666,271	100.0	%

Recap:
Noninterest-bearing demand	$	341,980	21.1	%	$	301,491	18.1	%	$	309,194	18.3	%	$	301,775	17.7	%	$	280,351	16.8	%
Interest-bearing demand		5,719	0.4	%		7,537	0.5	%		6,362	0.4	%		5,813	0.3	%		5,745	0.3	%
NOW & MMDA		302,081	18.7	%		280,223	16.8	%		291,265	17.3	%		310,147	18.2	%		305,649	18.4	%
Savings		101,413	6.3	%		92,440	5.6	%		92,238	5.5	%		87,036	5.1	%		83,368	5.0	%
TCDs of $250K and under		381,841	23.6	%		436,083	26.2	%		435,372	25.8	%		433,873	25.4	%		419,821	25.2	%
Core Deposits		1,133,034	70.0	%		1,117,774	67.2	%		1,134,431	67.3	%		1,138,644	66.7	%		1,094,934	65.7	%

TCDs of $250K over		455,208	28.1	%		485,582	29.2	%		467,016	27.7	%		473,025	27.7	%		471,048	28.3	%
Nonreciprocal ICS MMDA		-	-			-	-			-	-			-	-			-	-
Wholesale deposits		30,001	1.9	%		60,001	3.6	%		85,008	5.0	%		95,658	5.6	%		100,289	6.0	%
Noncore Deposits		485,209	30.0	%		545,583	32.8	%		552,024	32.7	%		568,683	33.3	%		571,337	34.3	%
Total Deposits	$	1,618,243	100.0	%	$	1,663,357	100.0	%	$	1,686,455	100.0	%	$	1,707,327	100.0	%	$	1,666,271	100.0	%

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

		3rd Qtr.			2nd Qtr.			1st Qtr.			4th Qtr.			3rd Qtr.
			2026			2026			2026			2025			2025
Allowance for Credit Losses
	Balance at beginning of period	$	17,357		$	16,854		$	16,345		$	16,151		$	15,461
	Provision for credit losses		(30	)		500			500			210			500
	Charge-offs		(271	)		-			(1	)		(27	)		-
	Recoveries		5			3			10			11			190
	Balance at the end of period	$	17,061		$	17,357		$	16,854		$	16,345		$	16,151

Nonperforming Assets:¹
	Over 90 days still accruing	$	-		$	-		$	-		$	-		$	1,237
	Nonaccrual loans		23,869			20,367			17,066			15,960			14,865
	Total nonperforming loans		23,869			20,367			17,066			15,960			16,102

	Other real estate owned	$	1,600			1,192			5,651			5,651			297
	Total nonperforming assets	$	25,469		$	21,559		$	22,717		$	21,611		$	16,399

Classified Assets:¹
	Substandard	$	31,880		$	29,868		$	23,147		$	29,666		$	31,465
	Doubtful		-			-			-			-			-
	Loss		-			-			-			-			-
	Total classified loans	$	31,880		$	29,868		$	23,147		$	29,666		$	31,465

	Other real estate owned	$	1,600			1,192			5,651			5,651			297
	Total classified assets	$	33,480		$	31,060		$	28,798		$	35,317		$	31,762

Performing modified loans:¹		$	-		$	-		$	-		$	1,176		$	160

Delinquent Loans:¹
	Loans 30-89 days past due	$	12,868		$	8,056		$	11,078		$	7,563		$	7,478
	90 days or more past due and still accruing		-			-			-			-			1,237
	Nonaccrual		23,869			20,367			17,066			15,960			14,865
	Total delinquent loans	$	36,737		$	28,423		$	28,144		$	23,523		$	23,580

Asset Quality Ratios:
	Net (recoveries) charge-offs to average loans²		0.07	%		0.00	%		0.00	%		0.00	%		(0.05	%)
	Nonaccrual loans to loans held-for-investment		1.59	%		1.40	%		1.22	%		1.14	%		1.17	%
	Nonperforming loans to loans held-for-investment		1.59	%		1.40	%		1.22	%		1.14	%		1.27	%
	Nonperforming assets to total assets		1.33	%		1.10	%		1.14	%		1.08	%		0.84	%
	Classified loans to loans held-for-investment		2.12	%		2.05	%		1.65	%		2.12	%		2.47	%
	Classified loans to Tier 1 and ACL		10.80	%		10.24	%		8.05	%		10.49	%		11.27	%
	Classified assets to total assets		1.74	%		1.58	%		1.45	%		1.76	%		1.62	%
	Classified assets to Tier 1 and ACL		11.34	%		10.65	%		10.01	%		12.49	%		11.37	%
	ACL to loans held-for-investment		1.14	%		1.19	%		1.20	%		1.17	%		1.27	%
	ACL to nonaccrual loans		71.48	%		85.22	%		98.76	%		102.41	%		108.65	%
	ACL to nonperforming loans		71.48	%		85.22	%		98.76	%		102.41	%		100.30	%
	ACL to nonperforming assets		66.99	%		80.51	%		74.19	%		75.63	%		98.49	%
	Texas ratio ³		8.63	%		7.39	%		7.90	%		7.64	%		5.87	%

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		September 30,			June 30,			March 31,			December 31,			September 30,
	Regulatory		BASEL III
	Requirement		Fully Phased In			2026			2026			2026			2025			2025

Leverage ratio
Company	N/A		N/A			14.15	%		13.99	%		13.78	%		13.25	%		14.34	%
Bank	5.00	%	4.00	%		14.08	%		13.93	%		13.76	%		13.23	%		14.32	%
Common equity tier 1 risk-based capital ratio
Company	N/A		N/A			18.39	%		18.73	%		19.24	%		19.03	%		19.26	%
Bank	6.50	%	7.00	%		18.30	%		18.65	%		19.22	%		19.01	%		19.22	%
Tier 1 risk-based capital ratio
Company	N/A		N/A			18.39	%		18.73	%		19.24	%		19.03	%		19.26	%
Bank	8.00	%	8.50	%		18.30	%		18.65	%		19.22	%		19.01	%		19.22	%
Total risk-based capital ratio
Company	N/A		N/A			19.55	%		19.94	%		20.47	%		20.22	%		20.46	%
Bank	10.00	%	10.50	%		19.46	%		19.87	%		20.45	%		20.20	%		20.42	%

Tangible common equity ratio¹						14.49	%		13.97	%		13.61	%		13.29	%		13.43	%
Tangible common equity per share¹					$	26.18		$	25.91		$	25.57		$	25.16		$	24.85
Common shares outstanding						10,621,136			10,588,136			10,588,136			10,588,136			10,588,136

¹ Tangible Common Equity Ratio is defined as tangible common equity which is common equity less goodwill and other intangible assets divided by tangible assets which is defined as total assets less goodwill and other intangible assets. Tangible Common Equity Per Share is calculated by dividing tangible common equity by common shares outstanding.

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

	Three Months Ended
	September 30, 2026							June 30, 2026							March 31, 2026							December 31, 2025							September 30, 2025
	Avg Balance			Interest		Yield		Avg Balance			Interest		Yield		Avg Balance			Interest		Yield		Avg Balance			Interest		Yield		Avg Balance			Interest		Yield

INTEREST-EARNING ASSETS
Loans Receivable¹	$	1,559,686		$	25,786	6.56	%	$	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	%
Investment securities ²		58,803			647	4.37	%		64,176			653	4.08	%		65,507			657	4.07	%		65,279			676	4.10	%		66,623			707	4.21	%
Interest-earning deposits at the FRB and other banks		308,634			2,902	3.73	%		346,082			3,193	3.70	%		366,481			3,343	3.70	%		420,854			4,213	3.97	%		254,301			2,826	4.41	%
Other earning assets		11,086			182	6.51	%		11,075			293	10.61	%		11,016			434	15.98	%		11,011			202	7.28	%		11,011			201	7.24	%
Total interest-earning assets ²		1,938,209			29,517	6.04	%		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	%

NONINTEREST-EARNING ASSETS
Cash and due from banks		10,607							11,796							10,909							11,799							14,221
Other noninterest-earning assets		36,051							42,660							44,918							40,927							40,578
Total noninterest-earning assets		46,658							54,456							55,827							52,726							54,799

Less: Allowance for credit losses		(17,127	)						(16,938	)						(16,355	)						(16,152	)						(15,577	)

TOTAL ASSETS	$	1,967,740						$	1,960,051						$	1,964,533						$	2,009,713						$	1,834,340

INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,665		$	4	0.20	%	$	9,636		$	5	0.20	%	$	9,415		$	5	0.20	%	$	9,432		$	4	0.20	%	$	9,682		$	5	0.20	%
Money market		290,380			2,582	3.53	%		280,759			2,460	3.51	%		286,298			2,451	3.47	%		324,316			2,990	3.66	%		282,010			2,699	3.80	%
Savings		99,391			771	3.08	%		90,272			686	3.05	%		87,429			653	3.03	%		83,166			644	3.07	%		84,339			653	3.07	%
Time deposits		943,195			9,567	4.02	%		971,648			9,885	4.08	%		998,868			10,223	4.15	%		998,575			10,573	4.20	%		863,224			9,251	4.25	%
Total interest-bearing deposits		1,342,631			12,924	3.82	%		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	%

Borrowings		38			-	-			1			-	-			-			-	-			2			-	-			-			-	-
Total interest-bearing liabilities		1,342,669			12,924	3.82	%		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	%

Noninterest-bearing deposits		319,903							301,938							279,851							294,726							301,776
Other liabilities		26,386							31,484							31,922							32,412							29,249

Stockholders' equity		278,782							274,313							270,750							267,084							264,060
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,967,740						$	1,960,051						$	1,964,533						$	2,009,713						$	1,834,340

Net interest income²				$	16,593						$	15,421						$	14,880						$	15,708						$	15,779

Net interest spread						2.22	%						2.07	%						2.03	%						2.04	%						2.23	%

Effect of noninterest-bearing sources						1.18	%						1.15	%						1.10	%						1.12	%						1.26	%

Net interest margin²						3.40	%						3.22	%						3.13	%						3.16	%						3.49	%


Cost of deposits	$	1,662,534		$	12,924	3.08	%	$	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	%

Cost of funds	$	1,662,572		$	12,924	3.08	%	$	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 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
	September 30, 2026					June 30, 2026					March 31,2026					December 31, 2025					September 30, 2025
	Amount			Yield		Amount			Yield		Amount			Yield		Amount			Yield		Amount			Yield

Contractual yield	$	25,018		6.36	%	$	23,678		6.33	%	$	23,193		6.35	%	$	24,154		6.49	%	$	24,171		6.55	%
SBA discount accretion		821		0.21	%		697		0.19	%		636		0.17	%		883		0.24	%		728		0.20	%
Prepayment penalties and late fees		96		0.02	%		33		0.01	%		96		0.03	%		50		0.01	%		51		0.01	%
Amortization of net deferred costs		(149	)	(0.03	%)		(90	)	(0.03	%)		(147	)	(0.04	%)		(259	)	(0.07	%)		(297	)	(0.08	%)
As reported yield on loans	$	25,786		6.56	%	$	24,318		6.50	%	$	23,778		6.51	%	$	24,828		6.67	%	$	24,653		6.68	%

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

	Nine Months Ended
	September 30, 2026							September 30, 2025
	Avg Balance			Interest		Yield		Avg Balance			Interest		Yield

INTEREST-EARNING ASSETS
Loans Receivable ¹	$	1,514,599		$	73,882	6.52	%	$	1,454,297		$	72,442	6.66	%
Investment securities ²		62,804			1,957	4.17	%		64,532			2,060	4.27	%
Interest-earning deposits at the FRB and other banks		340,187			9,438	3.71	%		248,031			8,238	4.44	%
Other earning assets		11,060			909	10.99	%		11,011			604	7.33	%
Total interest-earning assets ²		1,928,650			86,186	5.97	%		1,777,871			83,344	6.27	%

NONINTEREST-EARNING ASSETS
Cash and due from banks		11,103							12,606
Other noninterest-earning assets		41,177							41,986
Total noninterest-earning assets		52,280							54,592

Less: Allowance for credit losses		(16,810	)						(15,349	)

TOTAL ASSETS	$	1,964,120						$	1,817,114

INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,574		$	14	0.20	%	$	9,753		$	15	0.20	%
Money market		285,827			7,493	3.50	%		270,358			7,794	3.85	%
Savings		92,408			2,110	3.05	%		83,861			1,924	3.07	%
Time deposits		971,033			29,675	4.09	%		847,115			27,741	4.38	%
Total interest-bearing deposits		1,358,842			39,292	3.87	%		1,211,087			37,474	4.14	%

Borrowings		13			-	0.00	%		17,492			123	0.94	%
Total interest-bearing liabilities		1,358,855			39,292	3.87	%		1,228,579			37,597	4.09	%

Noninterest-bearing deposits		300,710							298,962
Other liabilities		29,910							28,821

Stockholders' equity		274,645							260,752

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,964,120						$	1,817,114

Net interest income²				$	46,894						$	45,747

Net interest spread						2.10	%						2.18	%

Effect of noninterest-bearing sources						1.15	%						1.26	%

Net interest margin²						3.25	%						3.44	%


Cost of deposits	$	1,659,552		$	39,292	3.17	%	$	1,510,049		$	37,474	3.32	%

Cost of funds	$	1,659,565		$	39,292	3.17	%	$	1,527,541		$	37,597	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

COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15
(Dollars in thousands)

	Nine Months Ended
	September 30, 2026					September 30, 2025
	Amount			Yield		Amount			Yield

Contractual yield	$	71,889		6.35	%	$	70,768		6.51	%
SBA discount accretion		2,154		0.19	%		2,097		0.19	%
Prepayment penalties and late fees		225		0.02	%		240		0.02	%
Amortization of net deferred costs		(386	)	(0.04	%)		(663	)	(0.06	%)
As reported yield on loans	$	73,882		6.52	%	$	72,442		6.66	%