FFB Bancorp Announces First Quarter 2025 Earnings

Rhea-AI Summary

FFB Bancorp (OTCQX: FFBB) reported strong Q1 2025 financial results with net income of $8.10 million, or $2.55 per diluted share, up 4% from Q1 2024. Operating revenue increased 21% to $28.48 million, driven by loan portfolio growth and improved merchant services revenue.

Key highlights include: net interest margin expansion to 5.35%, total assets growth of 12% to $1.56 billion, and total deposits increase of 10% to $1.32 billion. The loan portfolio grew 18% to $1.09 billion, while shareholder equity rose 26% to $174.71 million.

The company's ongoing stock repurchase program has acquired 41,915 shares at an average price of $81.60, totaling $3.42 million. Two new directors, Linda Emtman and Miles Mahoney, joined the board, expanding it to 11 members.

Positive

• Net income increased 4% YoY to $8.10 million
• Operating revenue grew 21% YoY to $28.48 million
• Net interest margin expanded to 5.35% from 5.15% YoY
• Loan portfolio increased 18% YoY to $1.09 billion
• Total deposits grew 10% to $1.32 billion
• Merchant services revenue increased 30% YoY to $7.86 million

Negative

• Non-interest expense increased 30% YoY to $16.47 million
• Efficiency ratio deteriorated to 57.83% from 52.96% YoY
• Gain on sale of loans decreased to $261,000 from $451,000 YoY
• Some ISO partners will be exited in Q2 2025, affecting $990,000 in revenue

FRESNO, Calif., April 16, 2025 (GLOBE NEWSWIRE) -- FFB Bancorp (the “Company”) (OTCQX: FFBB), the parent company of FFB Bank (the “Bank”), today reported net income of $8.10 million, or $2.55 per diluted share, for the first quarter of 2025, an increase of 4% from the $7.79 million, or $2.46 per diluted share, reported for the first quarter of 2024. The Bank reported $9.72 million, or $3.05 per diluted share, for the fourth quarter of 2024. All results are unaudited.

First Quarter 2025 Highlights: As of, or for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024:

• Pre-tax, pre-provision income increased 10% to $12.01 million.
• Net income increased 4% to $8.10 million.
• Return on average equity (“ROAE”) was 18.83%.
• Return on average assets (“ROAA”) was 2.14%.
• Net interest margin expanded 20 basis points to 5.35% from 5.15%.
• Operating revenue (net interest income, before the provision for credit losses, plus non-interest income) increased 21% to $28.48 million.
• Total assets increased 12% to $1.56 billion.
• Total portfolio of loans increased 18% to $1.09 billion.
• Total deposits increased 10% to $1.32 billion.
• Shareholder equity increased 26% to $174.71 million.
• Book value per common share increased 27% to $55.52.
• The Company’s tangible common equity ratio was 11.20%, while the Bank’s regulatory leverage capital ratio was 14.66%, and the total risk-based capital ratio was 21.09% at March 31, 2025.

“In spite of the general market headwinds, and the constant noise surrounding potential policy changes, our first quarter 2025 results still came in quite strong because the team was able to stay focused on the basics,” said Steve Miller, President & CEO. “The loan portfolio increased $21 million, deposits grew $36 million, and total assets grew $56 million. In addition, we were able to record strong earnings while improving our book value per common share through our strategic share repurchase program.”

"During the quarter we have made consistent progress on the matters outlined in our consent order, although ultimate compliance will be determined by our regulators. The team has been diligent in working with our regulators to complete the necessary steps to meet consent order timelines. We have confidence we can continue to address these items going forward."

Linda Emtman and Miles Mahoney Join Board of Directors of FFB Bancorp and FFB Bank:

Linda Emtman and Miles Mahoney have been appointed to the Board of Directors for the Company and Bank, expanding the number of directors for both boards to 11 from 9.

Ms. Emtman was a Principal in Financial Services at Ernst & Young in San Francisco until her retirement. She is on the executive leadership team of the American Heart Association, and an Ambassador at the Bay Area Cor Vitae Society. Ms. Emtman is a graduate of the University of Washington where she earned her bachelor’s degree in Business Administration and completed her Master Deal Maker certification at the Wharton School.

Mr. Mahoney is the President of U2 Science Labs, Inc, an advanced analytics and data science platform, in Orange County and the Founder and Managing Partner of Irish Acquisitions, Inc. He has served as a board member of a number of different organizations over a 15-year period. Mr. Mahoney is a graduate of Montana State University where he earned his bachelor’s degree in Business Administration & Finance and completed his MBA at the Pepperdine Graziadio School of Business.

“We are delighted to welcome Linda and Miles to our Company’s Board of Directors and look forward to working with them as we pursue our mission to grow our franchise. They bring a wealth of experience and a broad depth of knowledge that will help propel us forward for future success,” said Mark Saleh, Chairman of the Boards. “Recently, one of our founding board members, Al Smith, passed away. He was instrumental in the early development of our brand. His commitment to the bank and creative ideas will be missed."

Update on Stock Repurchase Program:

On January 22, 2025, the Company announced that it had authorized a plan to utilize up to $15.0 million of capital to repurchase shares of the Company’s common stock. As of March 31, 2025, the Company has repurchased 41,915 shares, at an average price of $81.60, totaling $3.42 million. This represents approximately 1.78% of total shareholders' equity at March 31, 2025.

Under the terms of the repurchase plan, the Company may repurchase shares of the Company's common stock from time to time, through December 31, 2025, in open market purchases or privately negotiated transactions. Repurchases under the plan may also be made pursuant to a trading plan under Securities and Exchange Commission Rule 10b5-1 under the Securities Exchange Act of 1934, which would permit shares to be repurchased by the Company when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The timing, manner, price and exact amount of any repurchases by the Company will be determined at the Company’s discretion and depend on various factors including the performance of the Company's stock price, general market and economic conditions, applicable legal and regulatory requirements, availability of funds, and other relevant factors. Through December 31, 2025, the repurchase plan may be discontinued, suspended or restarted at any time.

Results of Operations

Quarter ended March 31, 2025:

Operating revenue, consisting of net interest income before the provision for credit losses and non-interest income, increased 21% to $28.48 million for the first quarter of 2025, compared to $23.61 million for the first quarter a year ago, and increased 1% from $28.25 million from the fourth quarter of 2024.

Net interest income, before the provision for credit losses, increased 17% to $18.90 million for the first quarter of 2025, compared to $16.14 million for the same quarter a year ago, and remained consistent with the $18.81 million reported last quarter. “The increase in net interest income compared to prior year was primarily driven by loan portfolio growth,” said Bhavneet Gill, Chief Financial Officer. "We have also seen some relief in funding costs as a result of the FOMC rate cuts from the second half of 2024."

The Company’s net interest margin (“NIM”) increased by 20 basis points to 5.35% for the first quarter of 2025, compared to 5.15% for the first quarter of 2024, and increased 11 basis points from 5.24% for the preceding quarter. “Our yield on earning assets increased 8 basis points in the first quarter primarily from changes within the loan portfolio. Additionally, the expansion of NIM was buoyed by a 4 basis point decrease in the cost to fund earning assets as average non-interest bearing deposits increased $11.68 million quarter-over-quarter,” noted Gill.

The yield on earning assets was 6.31% for the first quarter of 2025, compared to 6.15% for the first quarter a year ago, and 6.24% for the previous quarter. The cost to fund earning assets decreased to 0.96% for the first quarter of 2025 compared to 1.00% for the previous quarter, and 1.00% for the same quarter a year earlier.

Total non-interest income was $9.58 million for the first quarter of 2025, compared to $7.47 million for the first quarter of 2024, and $9.44 million for the previous quarter. The increase in non-interest income, from the first quarter of 2024, was driven by higher merchant services revenue and a reduction in loss on sale of investments, partially offset by lower gain on sale of loans revenue. The quarter-over-quarter increase in non-interest income was attributed to higher merchant services revenue due to seasonal activity, partially offset by a reduction in the gain on sale of loans revenue.

Merchant services revenue increased 30% to $7.86 million for the first quarter of 2025, compared to $6.07 million from the first quarter of 2024. The increase was primarily due to higher volume across all merchant business lines and higher gross revenue related to FFB Payments. Merchant services revenue increased from $7.56 million when compared to the fourth quarter of 2024 as a result of an increase in processing volume during the quarter, primarily due to seasonal activity. First quarter 2025 ISO Partner Sponsorship volumes include $2.78 billion in volume for the ISO partners being exited in the second quarter of 2025. First quarter 2025 ISO Partner Sponsorship revenue includes $990,000 in revenue from the ISO partners being exited in the second quarter of 2025. "These ISO exits were the right decision to help ensure we are aligned with our partners in regard to best in class oversight. We anticipate replacing this volume and revenue through growth in FFB Payments and with our remaining ISO partners as we move forward," said Miller.

Merchant ISO Processing Volumes (in thousands)
Source	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
ISO Partner Sponsorship	$	5,007,998		$	4,891,643		$	4,556,868		$	4,391,365		$	3,763,289
FFB Payments- Sub-ISO Merchants		21,551			22,950			24,661			24,414			19,370
FFB Payments - Direct Merchants		97,095			91,133			64,512			76,059			77,349
Total volume	$	5,126,644		$	5,005,726		$	4,646,041		$	4,491,838		$	3,860,008

Merchant ISO Processing Revenues (in thousands)
Source of Revenue	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
Net Revenue*:
ISO Partner Sponsorship	$	2,410		$	2,535		$	2,284		$	2,156		$	2,183
Gross Revenue:
FFB Payments- Sub-ISO Merchants		745			764			810			795			672
FFB Payments - Direct Merchants		4,709			4,262			2,476			3,117			3,213
		5,454			5,026			3,286			3,912			3,885
Gross Expense:
FFB Payments- Sub-ISO Merchants		616			638			723			675			518
FFB Payments - Direct Merchants		2,558			2,511			1,766			1,989			1,842
		3,174			3,149			2,489			2,664			2,360
Net Revenue:
FFB Payments- Sub-ISO Merchants		129			126			87			120			154
FFB Payments - Direct Merchants		2,151			1,751			710			1,128			1,371
FFB Payments Net Revenue		2,280			1,877			797			1,248			1,525
Net Merchant Services Income:	$	4,690		$	4,412		$	3,081		$	3,404		$	3,708
*ISO Partnership Sponsorship is recognized net of expense in Merchant Services Income. FFB Payments revenues are recognized gross in Merchant Services Income and Merchant Services expenses are recognized in Non-Interest Expense.

Total deposit fee income increased 7% to $849,000 for the first quarter of 2025, compared to $796,000 for the first quarter of 2024, and decreased 1% from $856,000 for the previous quarter.

There was a $261,000 gain on sale of loans during the first quarter of 2025, compared to a gain on sale of loans of $451,000 during the first quarter 2024, and a gain on sale of loans of $929,000 in the previous quarter. There was no loss on sale of investments during the first quarter of 2025, compared to a $373,000 loss during the first quarter of 2024, and a $482,000 loss in the previous quarter.

Non-interest expense increased 30% to $16.47 million for the first quarter of 2025, compared to $12.70 million for the first quarter 2024, and increased 24% from $13.27 million from the previous quarter. The increases on a year-over-year and quarterly comparison were driven by increases in salaries and employee benefits expense.

Salaries and employee benefits increased 22% to $8.06 million for the first quarter of 2025, compared to $6.58 million for the first quarter 2024. Total salaries and employee benefits increased 56% from $5.18 million in the previous quarter. The quarterly increase in salaries and employee benefits expense is partially attributed to $1.96 million in non-recurring reductions to performance bonus and ESOP accruals recognized in the fourth quarter of 2024. The balance of the increase was primarily the result of expense associated with full-time employees hired in the fourth quarter of 2024 and the first quarter of 2025. Full-time employees increased to 175 at March 31, 2025, compared to 147 full-time employees a year earlier, and 168 full-time employees from the previous quarter.

“Over the last few quarters, we've made intentional investments in people and technology to ensure that the bank can efficiently scale moving forward, and specifically to support our payment ecosystem, product development, regional expansion, and compliance/risk management initiatives. We continue to see elevated legal, audit, and technology related expenses mostly related to addressing the Consent Order,” said Miller.

Occupancy and equipment expenses decreased 8% from a year ago, representing 2% of non-interest expense, and decreased 14% from the preceding quarter. Merchant operating expense totaled $3.17 million for the first quarter of 2025, compared to $2.36 million for the first quarter of 2024 and $3.15 million for the preceding quarter. The change in merchant operating expense is attributed to fluctuations in volume and revenue for the FFB Payments lines of business. Merchant operating expenses include interchange fees, chargebacks, partnership fees, and other card brand fees.

Other operating expense increased 45% or $1.51 million to $4.88 million from a year earlier and increased 8% or $351,000 from the previous quarter. The year-over-year increase was driven by increases of $252,000 in data and software related expense, $355,000 in professional fees, $262,000 in marketing expense, $111,000 in regulatory assessment expense, and $321,000 in operational losses. The increase in data and software expense and professional fees, which include legal, audit, and consulting fees, are primarily due to actions taken to enhance the Company's AML/CFT, compliance, and merchant services programs.

The efficiency ratio was 57.83% for the first quarter of 2025, compared to 52.96% for the same quarter a year ago, and 46.19% for the preceding quarter. The efficiency ratio can fluctuate period over period based on changes in merchant services' gross revenues and associated expenses. The Company also calculates an adjusted efficiency ratio where the merchant services' gross expense, which is included in non-interest expense, is netted against merchant services' revenue in non-interest income. The adjusted efficiency ratio was 52.54% for the first quarter of 2025, compared to 47.82% for the same quarter a year ago, and 39.57% for the previous quarter.

Balance Sheet Review

Total assets increased 12% to $1.56 billion at March 31, 2025, compared to $1.40 billion at March 31, 2024, and increased 4% compared to December 31, 2024.

The total portfolio of loans increased 18%, or $165.66 million, to $1.09 billion, compared to $926.78 million at March 31, 2024, and increased $21.36 million, from $1.07 billion at December 31, 2024.

Commercial real estate loans increased 28% year-over-year to $696.63 million, representing 64% of total loans at March 31, 2025. The CRE portfolio includes approximately $282.54 million in multi-family loans originated by the Southern California team that the Company may consider selling at some point in the future for liquidity and concentration management. The multi-family portfolio includes $84.52 million in short-term bridge loans for transitional projects of multi-family properties. The short-term bridge loans are conservatively underwritten with minimum DSCR and liquidity requirements. The bank continues to market our bridge loan product in a more measured approach, keeping to our conservative underwriting standards. The real estate construction and land development loan portfolio decreased 84% from a year ago to $12.65 million, representing 1% of total loans, while residential RE 1-4 family loans totaled $17.15 million, or 2% of loans, at March 31, 2025.

The commercial and industrial (C&I) portfolio increased 16% to $260.06 million, at March 31, 2025, compared to $224.55 million a year earlier, and decreased 3% from $267.95 million at December 31, 2024. C&I loans represented 24% of total loans at March 31, 2025. Agriculture loans represented 10% of the loan portfolio at March 31, 2025. At March 31, 2025, the SBA, USDA, and other government agencies guaranteed loans totaled $61.37 million, or 5.6% of the loan portfolio.

Investment securities totaled $313.83 million at March 31, 2025, compared to $328.91 million a year earlier, and decreased $8.36 million from $322.19 million at December 31, 2024. The investment portfolio consists of mortgage-backed and municipal securities, both tax exempt and taxable, treasury securities as well as other domestic debt. At March 31, 2025, the Company had a net unrealized loss position on its investment securities portfolio of $24.50 million, compared to a net unrealized loss of $25.89 million at December 31, 2024. The Company’s investment securities portfolio had an effective duration of 5.61 years at March 31, 2025, compared to 5.32 years at December 31, 2024.

Total deposits increased 10%, or $119.85 million, to $1.32 billion at March 31, 2025, compared to $1.20 billion from a year earlier, and increased $36.00 million from $1.28 billion at December 31, 2024. The quarter-over-quarter increase in deposit balances is primarily attributed to an increase in interest bearing checking accounts. Non-interest bearing demand deposits increased 10% to $825.40 million at March 31, 2025, compared to $751.64 million at March 31, 2024, and decreased $3.10 million from $828.51 million at December 31, 2024. Non-interest bearing demand deposits represented 63% of total deposits at March 31, 2025.

Included in non-interest bearing deposits are $89.98 million from ISO partners for merchant reserves, $135.48 million from ISO partners for settlement, and $9.63 million in ISO partner operating accounts. These deposits represent 28.5% of non-interest bearing deposits and 17.8% of total deposits. Included in the $235.09 million in ISO partner deposits as of March 31, 2025 are $137.82 million in deposits for ISO partners being exited in the second quarter of 2025. The Bank plans to replace these non-interest bearing deposits with growth from new Bank customers in its markets and from the existing ISO partners it will continue to support. In the short-term, the new deposit growth will likely be made up of a higher percentage of interest bearing deposits.

There was $10.00 million in short-term borrowings at March 31, 2025, compared to no borrowings at December 31, 2024, or March 31, 2024. The Company primarily utilizes FHLB advances and the Federal Reserve discount window for short-term borrowings. The following table summarizes the Company's primary and secondary sources of liquidity which were available at March 31, 2025:

Liquidity Source (in thousands)	March 31, 2025			December 31, 2024
Cash and cash equivalents	$	103,071		$	63,415
Unpledged investment securities, fair value		104,732			118,957
FHLB advance capacity		338,036			304,077
Federal Reserve discount window capacity		130,590			166,475
Correspondent bank unsecured lines of credit		70,000			91,500
	$	746,429		$	744,424

The total primary and secondary liquidity of $746.43 million at March 31, 2025 represents an increase of $2.0 million in primary and secondary liquidity quarter-over-quarter. On-balance sheet cash and cash equivalents increased as a result of deposit growth in the quarter.

Shareholders’ equity increased 26% to $174.71 million at March 31, 2025, compared to $138.72 million from a year ago, and grew 4% from $168.39 million at December 31, 2024. Book value per common share increased 27% to $55.52, at March 31, 2025, compared to $43.69 at March 31, 2024, and increased 5% from $53.02 at December 31, 2024. The tangible common equity ratio was 11.20% at March 31, 2025, compared to 9.94% a year earlier, and 11.20% at December 31, 2024. Additionally, book value improved as a result of quarterly net income and a reduction in shares outstanding.

At the Bank level, unrealized losses and gains reflected in AOCI are not included in regulatory capital. As a result, Tier-1 capital at the Bank for regulatory purposes was $226.64 million at quarter end excluding the unrealized loss. The regulatory leverage capital ratio was 14.66% for the current quarter, while the total risk-based capital ratio was 21.09%, exceeding regulatory minimums to be considered well-capitalized.

Asset Quality

Nonperforming assets increased to $15.37 million, or 0.98% of total assets, at March 31, 2025, compared to $9.89 million, or 0.66% of total assets, from the preceding quarter. Of the $15.37 million nonperforming loans, $11.37 million are covered by SBA guarantees. Total delinquent loans increased to $19.12 million at March 31, 2025, compared to $8.32 million at December 31, 2024.

Past due loans 30-60 days were $17.53 million at March 31, 2025, compared to $4.89 million at December 31, 2024, and $3.22 million at March 31, 2024. This increase in 30-60 days past due loans is the result of three multi-family loans, which are real estate secured, totaling $11.55 million to a related group of borrowers. There were $1.54 million past due loans from 60-90 days at March 31, 2025, compared to $2.45 million at December 31, 2024 and $1.95 million in past due loans from 60-90 days a year earlier. Past due loans 90+ days at quarter end totaled $46,000 at March 31, 2025, compared to $1.33 million, at March 31, 2024. Of the $19.12 million in past due loans at March 31, 2025, $2.75 million were purchased government guaranteed loans, which are guaranteed by the SBA for the full payment of the principal plus interest.

Delinquent Loan Summary	Organic			Purchased Govt. Guaranteed			Total
(in thousands)
Delinquent accruing loans 30-59 days	$	16,147		$	1,386		$	17,533
Delinquent accruing loans 60-89 days		218			1,319			1,537
Delinquent accruing loans 90+ days		—			46			46
Total delinquent accruing loans	$	16,365		$	2,751		$	19,116
Non-Accrual Loan Summary	Organic			Purchased Govt. Guaranteed			Total
(in thousands)
Loans on non-accrual	$	15,366		$	—		$	15,366
Non-accrual loans with SBA guarantees		11,371			—			11,371
Net Bank exposure to non-accrual loans	$	3,995		$	—		$	3,995

There was a $1.16 million provision for credit losses in the first quarter of 2025, compared to $378,000 provision for credit losses in the first quarter a year ago, and a $1.67 million provision for credit losses booked in the fourth quarter of 2024. The provision recorded during the first quarter of 2025 is the result of loan portfolio growth and a $5.47 million increase in non-accrual loans which were individually evaluated in the allowance for credit losses. The increase in non-accrual loans was primarily related to SBA loans.

"We watch the SBA portfolio very closely since rates have increased so rapidly over the last two years, putting pressure on borrowers. A majority of the loans within the portfolio are floating rate loans tied to WSJ Prime and reset quarterly. Borrowers saw a 50bps reduction in their rates on January 1, 2025 and additional rate relief is expected during the second half of 2025,” added Miller. “The ratio of allowance for credit losses to the total, non-guaranteed, loan portfolio was 1.25%, as of March 31, 2025, and our total non-guaranteed exposure on these SBA loans is $42.80 million spread over 222 loans.”

“We incurred net charge offs of $167,000 during the current quarter, compared to $4,000 in net recoveries in the first quarter a year ago, and $1.29 million in net charge offs in the previous quarter,” said Miller. “Our loan portfolio increased 18% from a year ago with commercial real estate (“CRE”) loans representing 64% of the total loan portfolio. Within the CRE portfolio, there are $52.45 million in loans for CRE office as shown in the table below. Since the majority of our CRE office exposure is concentrated in the Central Valley, we are experiencing less volatility than city center CRE markets. Our credit metrics remain strong as we continue to maintain conservative underwriting standards.”

(in thousands)	CRE Office Exposure of March 31, 2025
Region	Owner-Occupied			Non-Owner Occupied			Total
Central Valley	$	27,314		$	13,544		$	40,858
Southern California		2,271			352			2,623
Other California		4,492			3,948			8,440
Total California		34,077			17,844			51,921
Out of California		—			527			527
Total CRE Office	$	34,077		$	18,371		$	52,448

The ratio of allowance for credit losses to total loans was 1.18% at March 31, 2025, compared to 1.12% a year earlier and 1.10% at December 31, 2024. The Company individually evaluates non-accrual loans in the allowance for credit losses which has resulted in carrying a higher level of reserve.

About FFB Bancorp

FFB Bancorp, formerly Communities First Financial Corporation, a bank holding company established in 2014, is the parent company of FFB Bank, founded in 2005 in Fresno, California. As a leading SBA Lender in California’s Central Valley and one of the few direct acquiring banks in the United States, FFB Bank offers clients a range of personal and business checking accounts, payment processes, and loan programs. Among the Bank’s awards and accomplishments, it was ranked #1 on American Banker’s list of the Top 20 Publicly Traded Banks under $2 Billion in Assets for 2024. For 2025, the Bank was also ranked by S&P Global as the #34 best performing community bank under $3 billion in assets. The Company has also received recognition as part of the OTCQX Best 50 Companies for 2019, 2023, and 2024. For additional information, you can visit the Company’s website at www.ffb.bank or by contacting a representative at 559-439-0200.

Forward Looking Statements

This earnings release may contain forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on managements’ expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Company’s ability to effectively execute its business plans; the impact of the Consent Order on our financial condition and results of operations; changes in general economic and financial market conditions; changes in interest rates; and, in particular, actions taken by the Federal Reserve to try and control inflation; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Company’s business; international developments; 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 release publicly the results of any revisions to the forward-looking statements included herein to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Member FDIC

Select Financial Information and Ratios	For the Quarter Ended:
	March 31, 2025				December 31, 2024				March 31, 2024
BALANCE SHEET- ENDING BALANCES:
Total assets	$	1,560,376			$	1,504,128			$	1,395,095
Total portfolio loans		1,092,441				1,071,079				926,781
Investment securities		313,826				322,186				328,906
Total deposits		1,320,381				1,284,377				1,200,529
Shareholders equity, net		174,711				168,392				138,716
INCOME STATEMENT DATA
Operating revenue		28,476				28,247				23,610
Operating expense		16,467				13,270				12,701
Pre-tax, pre-provision income		12,009				14,977				10,909
Net income after tax		8,098				9,718				7,790
SHARE DATA
Basic earnings per share	$	2.56			$	3.06			$	2.46
Fully diluted EPS	$	2.55			$	3.05			$	2.46
Book value per common share	$	55.52			$	53.02			$	43.69
Common shares outstanding		3,146,727				3,175,817				3,175,048
Fully diluted shares		3,175,178				3,189,949				3,170,981
FFBB - Stock price	$	76.50			$	97.97			$	82.99
RATIOS
Return on average assets		2.14	%			2.53	%			2.32	%
Return on average equity		18.83	%			23.11	%			23.27	%
Efficiency ratio		57.83	%			46.19	%			52.96	%
Adjusted efficiency ratio		52.54	%			39.57	%			47.82	%
Yield on earning assets		6.31	%			6.24	%			6.15	%
Yield on investment securities		4.36	%			4.34	%			4.47	%
Yield on portfolio loans		6.81	%			6.95	%			6.68	%
Cost to fund earning assets		0.96	%			1.00	%			1.00	%
Cost of interest-bearing deposits		2.60	%			2.69	%			2.57	%
Net Interest Margin		5.35	%			5.24	%			5.15	%
Equity to assets		11.20	%			11.20	%			9.94	%
Net loan to deposit ratio		82.74	%			83.39	%			77.20	%
Full time equivalent employees		175				168				147
BALANCE SHEET- AVERAGES
Total assets		1,531,573				1,529,439				1,347,625
Total portfolio loans		1,076,848				1,038,215				925,561
Investment securities		325,699				333,135				315,820
Total deposits		1,300,550				1,299,069				1,149,117
Shareholders equity, net		174,410				167,268				134,621

Consolidated Balance Sheet (unaudited)	March 31, 2025				December 31, 2024				March 31, 2024
(in thousands)
ASSETS
Cash and due from banks	$	83,033			$	43,905			$	37,360
Interest bearing deposits in banks		20,038				19,510				53,556
CDs in other banks		1,724				1,723				1,693
Investment securities		313,826				322,186				328,906
Loans held for sale		—				—				—
Construction & land development		12,649				26,522				77,318
Residential RE 1-4 family		17,146				16,846				16,114
Commercial real estate		696,625				669,285				545,358
Agriculture		104,616				90,017				63,281
Commercial and industrial		260,063				267,948				224,551
Consumer and other		1,342				461				159
Portfolio loans		1,092,441				1,071,079				926,781
Deferred fees & discounts		(3,946	)			(4,200	)			(4,181	)
Allowance for credit losses		(12,913	)			(11,834	)			(10,407	)
Loans, net		1,075,582				1,055,045				912,193
Non-marketable equity investments		8,890				8,891				7,357
Cash value of life insurance		12,496				12,402				12,119
Accrued interest and other assets		44,787				40,466				41,911
Total assets	$	1,560,376			$	1,504,128			$	1,395,095
LIABILITIES AND EQUITY
Non-interest bearing deposits	$	825,404			$	828,508			$	751,636
Interest checking		109,555				62,034				54,659
Savings		54,686				55,219				52,090
Money market		218,940				212,322				220,559
Certificates of deposits		111,796				126,294				121,585
Total deposits		1,320,381				1,284,377				1,200,529
Short-term borrowings		10,000				—				—
Long-term debt		38,046				38,007				39,638
Other liabilities		17,238				13,352				16,212
Total liabilities		1,385,665				1,335,736				1,256,379
Common stock		35,693				38,436				36,910
Retained earnings		156,235				148,138				121,780
Accumulated other comprehensive loss		(17,217	)			(18,182	)			(19,974	)
Shareholders' equity		174,711				168,392				138,716
Total liabilities and shareholders' equity	$	1,560,376			$	1,504,128			$	1,395,095

Consolidated Income Statement (unaudited)	Quarter ended:
(in thousands)	March 31, 2025			December 31, 2024				March 31, 2024
INTEREST INCOME:
Loan interest income	$	18,069		$	18,131			$	15,372
Investment income		3,499			3,631				3,512
Int. on fed funds & CDs in other banks		574			504				255
Dividends from non-marketable equity		132			137				129
Total interest income		22,274			22,403				19,268
INTEREST EXPENSE:
Int. on deposits		2,891			3,115				2,518
Int. on short-term borrowings		31			12				149
Int. on long-term debt		451			464				464
Total interest expense		3,373			3,591				3,131
Net interest income		18,901			18,812				16,137
PROVISION FOR CREDIT LOSSES		1,164			1,671				378
Net interest income after provision		17,737			17,141				15,759
NON-INTEREST INCOME:
Total deposit fee income		849			856				796
Debit / credit card interchange income		191			196				167
Merchant services income		7,864			7,562				6,068
Gain on sale of loans		261			929				451
Loss (gain) on sale of investments		—			(482	)			(373	)
Other operating income		410			374				364
Total non-interest income		9,575			9,435				7,473
NON-INTEREST EXPENSE:
Salaries & employee benefits		8,056			5,177				6,582
Occupancy expense		353			411				383
Merchant services operating expense		3,174			3,149				2,360
Other operating expense		4,884			4,533				3,376
Total non-interest expense		16,467			13,270				12,701
Income before provision for income tax		10,845			13,306				10,531
PROVISION FOR INCOME TAXES		2,747			3,588				2,741
Net income	$	8,098		$	9,718			$	7,790

ASSET QUALITY	March 31, 2025				December 31, 2024				March 31, 2024
(in thousands)
Delinquent accruing loans 30-60 days	$	17,533			$	4,886			$	3,220
Delinquent accruing loans 60-90 days		1,537				2,449				1,950
Delinquent accruing loans 90+ days		46				987				1,332
Total delinquent accruing loans	$	19,116			$	8,322			$	6,502
Loans on non-accrual	$	15,366			$	9,894			$	7,156
Other real estate owned		—				—				—
Nonperforming assets	$	15,366			$	9,894			$	7,156
Delinquent 30-60 / Total Loans		1.60	%			0.46	%			0.35	%
Delinquent 60-90 / Total Loans		0.14	%			0.23	%			0.21	%
Delinquent 90+ / Total Loans		—	%			0.09	%			0.14	%
Delinquent Loans / Total Loans		1.75	%			0.78	%			0.70	%
Non-accrual / Total Loans		1.41	%			0.92	%			0.77	%
Nonperforming assets to total assets		0.98	%			0.66	%			0.51	%
Year-to-date charge-off activity
Charge-offs	$	167			$	1,287			$	—
Recoveries		—				35				4
Net charge-offs (recoveries)	$	167			$	1,252			$	(4	)
Annualized net loan losses to average loans		0.06	%			0.12	%			—	%
CREDIT LOSS RESERVE RATIOS:
Allowance for credit losses	$	12,913			$	11,834			$	10,407
Total loans	$	1,092,441			$	1,071,079			$	926,781
Purchased govt. guaranteed loans	$	16,081			$	16,323			$	19,642
Originated govt. guaranteed loans	$	45,285			$	42,737			$	38,228
ACL / Total loans		1.18	%			1.10	%			1.12	%
ACL / Loans less 100% govt. gte. loans (purchased)		1.20	%			1.12	%			1.15	%
ACL / Loans less all govt. guaranteed loans		1.25	%			1.17	%			1.20	%
ACL / Total assets		0.83	%			0.79	%			0.75	%

SELECT FINANCIAL TREND INFORMATION	For the Quarter Ended:
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			Mar. 31, 2024
BALANCE SHEET- PERIOD END
Total assets	$	1,560,376		$	1,504,128		$	1,512,241		$	1,443,723		$	1,395,095
Loans held for sale		—			—			—			—			—
Loans held for investment		1,092,441			1,071,079			998,222			969,764			926,781
Investment securities		313,826			322,186			345,428			345,491			328,906
Non-interest bearing deposits		825,404			828,508			826,708			731,030			751,636
Interest bearing deposits		494,977			455,869			460,241			437,927			448,893
Total deposits		1,320,381			1,284,377			1,286,949			1,168,957			1,200,529
Short-term borrowings		10,000			—			—			68,000			—
Long-term debt		38,046			38,007			37,967			39,678			39,638
Total equity		191,928			186,574			176,350			167,286			158,690
Accumulated other comprehensive loss		(17,217	)		(18,182	)		(12,715	)		(18,646	)		(19,974	)
Shareholders' equity		174,711			168,392			163,635			148,640			138,716
QUARTERLY INCOME STATEMENT
Interest income	$	22,274		$	22,403		$	21,404		$	20,887		$	19,268
Interest expense		3,373			3,591			3,617			3,581			3,131
Net interest income		18,901			18,812			17,787			17,306			16,137
Non-interest income		9,575			9,435			7,616			7,423			7,473
Gross revenue		28,476			28,247			25,403			24,729			23,610
Provision for credit losses		1,164			1,671			762			291			378
Non-interest expense		16,467			13,270			12,735			13,285			12,701
Net income before tax		10,845			13,306			11,906			11,153			10,531
Tax provision		2,747			3,588			3,343			3,077			2,741
Net income after tax		8,098			9,718			8,563			8,076			7,790
BALANCE SHEET- AVERAGE BALANCE
Total assets	$	1,531,573		$	1,529,439		$	1,477,259		$	1,704,255		$	1,347,604
Loans held for sale		—			—			—			—			—
Loans held for investment		1,076,848			1,038,215			982,152			954,871			925,561
Investment securities		325,699			333,135			343,096			334,416			315,820
Non-interest bearing deposits		850,426			838,748			822,200			758,977			755,603
Interest bearing deposits		450,124			460,321			432,143			440,147			393,514
Total deposits		1,300,550			1,299,069			1,254,343			1,199,124			1,149,117
Short-term borrowings		2,856			951			—			10,053			9,562
Long-term debt		38,028			37,989			39,479			39,660			39,620
Shareholders' equity		174,410			167,268			161,363			141,881			134,621

Contact: Steve Miller - President & CEO
Bhavneet Gill – EVP & CFO
(559) 439-0200

FAQ

What were FFB Bancorp's (FFBB) key financial metrics for Q1 2025?

FFBB reported net income of $8.10 million ($2.55 per share), with operating revenue of $28.48 million, net interest margin of 5.35%, and total assets of $1.56 billion.

How much has FFBB's loan portfolio grown in Q1 2025 compared to Q1 2024?

FFBB's total loan portfolio increased 18% year-over-year to $1.09 billion from $926.78 million.

What is the status of FFBB's stock repurchase program as of March 2025?

FFBB has repurchased 41,915 shares at $81.60 average price, totaling $3.42 million, representing 1.78% of total shareholders' equity.

How did FFBB's merchant services revenue perform in Q1 2025?

Merchant services revenue increased 30% to $7.86 million compared to $6.07 million in Q1 2024.