CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank, a full-service commercial bank doing business as CBB Bank. The bank specializes in lending to small- and medium-sized businesses and maintains banking offices in California, Texas, Hawaii and New Jersey, with SBA regional offices and loan production offices supporting commercial lending activity.
Company news commonly covers quarterly financial results, net interest income and margin trends, provision for credit losses, asset quality, regulatory capital ratios and the bank's well-capitalized status. Other recurring updates include cash dividend declarations, SBA-related income, loan sale activity and executive leadership changes at the holding company and bank.
CBB Bancorp, Inc. (OTCQX: CBBI) reported a net income of $5.3 million for Q1 2021, marking a 43.6% increase from Q4 2020 and a staggering 230.9% from Q1 2020. The net interest income rose 22.4% year-over-year to $12.8 million, driven by loan growth and improved net interest margins at 3.90%. The return on average assets improved to 1.58%, and equity grew to 13.26%. CBB anticipates completing the acquisition of Ohana Pacific Bank later in 2021, pending regulatory approval, bolstering its growth strategy.
CBB Bancorp reported a net income of $3.7 million for Q4 2020, up 28.6% from Q3 2020, with diluted EPS of $0.36. For the year, net income fell 25.6% to $9.9 million, or $0.96 per diluted share. Key metrics included a return on average assets of 1.07% and a net interest margin of 3.48%. The fourth quarter saw a noninterest income increase to $3.4 million, aided by an $894k SBA valuation allowance reversal. Total loans rose by 3.5% quarter-over-quarter, and deposits were stable at $1.10 billion, reflecting a strategic focus on core deposits.
CBB Bancorp has announced its agreement to acquire Ohana Pacific Bank, expanding its footprint to Hawaii. As of September 30, 2020, Ohana had $196.7 million in assets, $151.6 million in loans, and $173.6 million in deposits. Shareholders of Ohana are set to receive $10.25 per share and potentially an additional $0.75 based on the loan performance over 12 months post-merger. Completion is expected in the second half of 2021, pending regulatory and shareholder approvals. CBB anticipates enhanced market presence and stable deposits from this acquisition.