FFB Bancorp Announces First Quarter 2026 Results:

Rhea-AI Summary

FFB Bancorp (OTCQX: FFBB) reported Q1 2026 net income of $4.59M ($1.53 diluted) versus $8.10M ($2.55) in Q1 2025 and $3.21M ($1.07) in Q4 2025. Key metrics: total loans $1.21B (+11% YoY), deposits $1.34B, NIM 4.89%, operating revenue $22.91M (-20% YoY).

The company repurchased $5.38M of shares YTD and redeemed $28.3M of subordinated debentures. ROAE was 9.93% and tangible common equity ratio was 11.62% at March 31, 2026.

Positive

• Total loans +11% year-over-year to $1.21 billion
• Redeemed $28.3 million principal of subordinated debentures
• Book value per common share +11% year-over-year to $61.85
• Share repurchases of $5.38 million through March 31, 2026

Negative

• Net income declined ~43% year-over-year to $4.59 million
• Merchant services revenue -68% year-over-year
• Operating revenue -20% year-over-year to $22.91 million
• Salaries and employee benefits +12% year-over-year
• Efficiency ratio worsened to 69.89% from 57.83% year-over-year

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FRESNO, Calif., April 16, 2026 (GLOBE NEWSWIRE) -- FFB Bancorp (the “Company”) (OTCQX: FFBB), the parent company of FFB Bank (the “Bank”), today reported net income of $4.59 million, or $1.53 per diluted share, for the first quarter of 2026, compared to $3.21 million, or $1.07 per diluted share, for the fourth quarter of 2025, and $8.10 million, or $2.55 per diluted share, for the first quarter of 2025. All results are unaudited.

First Quarter 2026 Summary: As of, or for the quarter ended March 31, 2026, compared to the quarters ended December 31, 2025, and March 31, 2025, respectively:

• Total portfolio of loans increased 1% to $1.21 billion from the previous quarter and increased 11% when compared to the same quarter for the prior year.
• Provision for credit loss expense decreased 80% to $776,000 from the previous quarter and decreased 33% when compared to the same quarter of the prior year.
• Total deposits remained stable from the previous quarter at $1.34 billion and increased 2% when compared to the same quarter of the prior year.
• Net interest margin increased 5 basis points to 4.89% from the previous quarter and decreased 46 basis points when compared to the same quarter of the prior year.
• Operating revenue (net interest income, before the provision for credit losses, plus non-interest income) decreased 2% to $22.91 million from the previous quarter and decreased 20% when compared to the same quarter of the prior year.
• Total assets decreased 1% to $1.57 billion from the previous quarter and increased 1% when compared to the same quarter of the prior year.
• Shareholder equity decreased 1% to $182.84 million from the previous quarter and increased 5% when compared to the same quarter for the prior year.
• Redeemed in full $28.3 million principal amount of subordinated debentures.
• Book value per common share increased to $61.85, from $61.64 in the previous quarter, and increased 11% from $55.52 the same quarter of the prior year.
• Return on average equity (“ROAE”) was 9.93%.
• Return on average assets (“ROAA”) was 1.19%.
• The Company’s tangible common equity ratio was 11.62%, while the Bank’s regulatory leverage capital ratio was 12.73%, and the total risk-based capital ratio was 17.27% at March 31, 2026.

“During the quarter, we struggled to match our core low-cost deposit growth to our strong loan production. Our key performance ratios remain well below our expectations and the team is focused on right sizing these key metrics over the coming quarters," said Steve Miller, President & CEO. "I am confident in our business model, which uses a light footprint supported by technology to deliver a high-touch relationship model. On my monthly visits to our regions, our core SMB customers and prospects still share that larger banks have abandoned this space or bank M&A is causing them to look for a new partner. We continue to listen to our customers by delivering new products. The successful launch of our FX payments product contributed incremental deposit fee revenue during the quarter and our new small business lending platform, currently in beta testing stage, has already generated $730,000 in new loan production. We expect this efficient loan product to be a great tool to support our client acquisition strategy for small business customers needing timely financing in the $100,000 - $250,000 range."

Update on Stock Repurchase Program:

On January 26, 2026, 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, 2026, the Company had repurchased 62,767 shares, at an average price of $85.78, totaling $5.38 million. This represented approximately 2.73% of total shareholders' equity at March 31, 2026.

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, 2026, 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, 2026, the repurchase plan may be discontinued, suspended or restarted at any time.

Results of Operations

Quarter ended March 31, 2026:

Operating revenue, consisting of net interest income before the provision for credit losses and non-interest income, decreased 2% to $22.91 million for the first quarter of 2026, compared to $23.34 million for the fourth quarter of 2025, and decreased 20% compared to $28.48 million for the first quarter a year ago. The decrease in operating revenue for the first quarter of 2026 was primarily the result of a decrease in gain on sale of loans and investment income.

Net interest income, before the provision for credit losses, decreased $259,000 to $17.82 million for the first quarter of 2026, from $18.08 million recorded in the last quarter, and decreased 6% when compared to $18.90 million recorded in the same quarter a year ago. The Company’s net interest margin (“NIM”) increased 5 basis points to 4.89% for the first quarter of 2026, compared to 4.86% for the prior quarter, and decreased by 46 basis points from 5.35% for the first quarter of 2025. “NIM increased from the prior quarter primarily driven by the yield on earnings assets outpacing the rise in funding costs. The improvement was driven primarily by continued repricing and growth within the loan portfolio," said Bhavneet Gill, EVP & Chief Financial Officer.

The yield on earning assets was 6.11% for the first quarter of 2026, compared to 6.02% for the previous quarter, and 6.31% for the first quarter a year ago. The cost to fund earning assets increased to 1.22% for the first quarter of 2026 compared to 1.17% for the previous quarter, and 0.96% for the same quarter a year earlier. Included in interest expense for the quarter was $281,000 in long-term debt expense on subordinated debentures that were subsequently redeemed mid-quarter. The increase in the cost to fund earnings assets was primarily the result of an increased reliance on wholesale funding due to the bank achieving strong loan production over the last few quarters, but lagging behind its planned core deposit growth. Wholesale funding carried a weighted average rate of 4.01% and 4.02% for the first quarter of 2026 and fourth quarter of 2025, respectively. Management expects deposits for Bank customers and ISO partners to increase over the remainder of the year, which would allow a reduction in reliance on wholesale funding.

Total non-interest income was $5.09 million for the first quarter of 2026, compared to $5.25 million for the previous quarter, and $9.58 million for the first quarter of 2025. The decrease in non-interest income, compared to the fourth quarter of 2025, was primarily driven by a decrease in gain on sale of loans revenue. There was a $941,000 gain on the sale of loans during the first quarter of 2026, compared to a gain on the sale of loans of $1.16 million in the previous quarter, and a gain on the sale of loans of $261,000 during the first quarter 2025. There was a $55,000 gain on the sale of investments recorded during the first quarter of 2026, compared to a $6,000 loss recorded during the previous quarter. The gain on the sale of loans during the quarter was the result of $6.52 million in SBA loan sales and $15.25 million in multifamily loan sales that were completed during the quarter. These sales contributed $194,000 and $238,000 in gain respectively.

Merchant services revenue decreased 68% to $2.50 million for the first quarter of 2026, compared to $7.86 million from the first quarter of 2025. The decrease over prior year was attributed to planned ISO partner exits during 2025 and lower gross volume and revenue related to FFB Payments. Merchant services revenue decreased 6% from $2.65 million when compared to the fourth quarter of 2025, primarily as a result of the reduction in ISO partner sponsorship volumes and the reduction in FFB Payments revenue due to repricing.

Merchant ISO Processing Volumes (in thousands)
Source	Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2025
ISO Partner Sponsorship	$	2,477,113	$	2,773,101	$	3,099,287	$	5,347,695	$	5,007,998
FFB Payments- Sub-ISO Merchants		28,520		21,679		19,023		20,766		21,551
FFB Payments- Direct Merchants		19,587		26,347		28,573		71,746		97,095
Total volume	$	2,525,220	$	2,821,127	$	3,146,883	$	5,440,207	$	5,126,644

Merchant ISO Processing Revenues (in thousands)
Source of Revenue	Q1 2026			Q4 2025			Q3 2025			Q2 2025		Q1 2025
Net Revenue*:
ISO Partner Sponsorship	$	1,188		$	1,339		$	1,937		$	2,654	$	2,410
Gross Revenue:
FFB Payments- Sub-ISO Merchants		684			726			633			727		745
FFB Payments- Direct Merchants		624			580			640			3,228		4,709
		1,308			1,306			1,273			3,955		5,454
Gross Expense:
FFB Payments- Sub-ISO Merchants		724			883			780			708		616
FFB Payments- Direct Merchants		593			720			801			2,179		2,558
		1,317			1,603			1,581			2,887		3,174
Net Revenue:
FFB Payments- Sub-ISO Merchants		(40	)		(157	)		(147	)		19		129
FFB Payments- Direct Merchants		31			(140	)		(161	)		1,049		2,151
FFB Payments Net Revenue		(9	)		(297	)		(308	)		1,068		2,280
Net Merchant Services Income:	$	1,179		$	1,042		$	1,629		$	3,722	$	4,690

*ISO Partnership Sponsorship is recognized net of expense in Merchant Services Income. FFB Payments revenues are recognized on a gross basis in Merchant Services Income and Merchant Services expenses are recognized in Non-Interest Expense.

Overall, total merchant services revenue for the first quarter of 2026, net of merchant services operating expense, increased 13% when compared to the fourth quarter of 2025. The net loss reported within FFB payments- Sub-ISO Merchants, while improving, is the result of higher partnership fees paid.

Total deposit fee income increased 11% to $912,000 for the first quarter of 2026 from the $822,000 recorded in the previous quarter, and increased 7% from the $849,000 recorded in the first quarter of 2025. The increase in the current quarter is primarily driven by $88,000 in revenue generated from our new FX platform launched in 2025.

Non-interest expense increased 8% to $15.98 million for the first quarter of 2026, compared to $14.73 million from the previous quarter, and decreased 3%, compared to the $16.47 million recorded for the first quarter 2025. The decrease on a year-over-year comparison was driven by decrease in merchant services operating expense. Compared to the fourth quarter of 2025 the increase in non-interest expense was attributed to increases in salaries and employee benefit expense and in other operating expenses, partially offset by decrease in professional fees and merchant services operating expense.

Salaries and employee benefits increased 12% to $9.01 million for the first quarter of 2026, compared to $8.06 million for the first quarter 2025. The increase year-over-year was primarily the result of expense associated with the increase in full-time employees. Full-time employees increased to 199 at March 31, 2026, compared to 175 full-time employees a year earlier. Total salaries and employee benefits increased 21% from $7.43 million in the previous quarter. The quarterly increase in salaries and employee benefits expense was primarily driven by increases in salary expense of $851,000 from FTE growth and $576,000 in higher payroll tax expense from payout of annual bonuses. Included in salary and employee benefit expense for the first quarter of 2026 and fourth quarter of 2025 were non-recurring reductions of approximately $830,000 related to performance bonus and ESOP accruals.

Occupancy and equipment expenses increased 52% from a year ago, representing 3% of non-interest expense, and increased 14% from the previous quarter. These increases are the result of rent and other expenses related to office expansion. Merchant operating expense totaled $1.32 million for the first quarter of 2026, compared to $3.17 million for the first quarter of 2025 and $1.60 million for the previous quarter. The decrease in merchant operating expense, compared to the first quarter of 2025, 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.

Professional fees, which consist of legal, audit, and consulting expenses, increased 26% to $1.03 million for the first quarter of 2026, compared to $818,000 for the first quarter 2025. Total professional fees decreased 25% from $1.37 million in the previous quarter. "Previous quarter professional fees included $321,000 in non-recurring consulting costs related to Consent Order remediation. These fees were tied to finalizing one of the heavier lifts in the required remediation. These fees also cover normal bank operations, legal costs, and new product and service development the bank is planning to launch to support our long-term strategy," noted Gill.

Data and technology expenses increased 36% to $1.73 million for the first quarter of 2026, compared to $1.27 million for the first quarter 2025. Data and technology expenses increased 8% from $1.60 million in the previous quarter. The increase in data and technology expense is primarily due to new products and services and enhancements to the Company's AML/CFT, compliance, and merchant services programs. “Our strategy is focused on maximizing existing systems while selectively deploying AI and automation to improve productivity and avoid unnecessary headcount growth,” said Miller. “We are already seeing opportunities to eliminate or consolidate redundant platforms and automate key functions. Our priority is ensuring our teams are supported through these changes while driving higher‑quality, more efficient outcomes.”

Other operating expense decreased 16% or $438,000 to $2.36 million from a year earlier and increased $102,000 from the previous quarter. The quarterly increase was driven by increases in director fees, education expense, and travel expense, partially offset by a reduction in operating losses.

The efficiency ratio was 69.89% for the first quarter of 2026, compared to 57.83% for the same quarter a year ago, and 63.12% for the previous quarter, which is the result of increases in other operating expenses. This 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, which is a non-GAAP measure, where the merchant services' gross expense, which is traditionally included in non-interest expense, is netted against merchant services' revenue in non-interest income. The adjusted efficiency ratio was 68.05% for the first quarter of 2026, compared to 52.54% for the same quarter a year ago, and 60.40% for the previous quarter. “We are making intentional investments in technology, talent, and products to position the Company for sustainable balance sheet growth and higher recurring revenue. While these actions impact the efficiency ratio in the near term, we expect operating leverage to improve as growth accelerates over the next several quarters, driving the efficiency ratio lower,” said Miller.

Balance Sheet Review

Total assets increased 1% to $1.57 billion at March 31, 2026, compared to $1.56 billion at March 31, 2025, and decreased 1% compared to $1.58 billion at December 31, 2025.

The total loan portfolio increased 11%, or $117.89 million, to $1.21 billion, compared to $1.09 billion at March 31, 2025, and increased 1% from the $1.20 billion reported at December 31, 2025. "We're excited for the continued growth we've seen in the loan portfolio as this is attributed to the strong relationships we are able to build with new and existing clients," said Miller, "For the first quarter of 2026 and fourth quarter of 2025 total commitments approved were $90.91 million and $156.85 million, respectively, which we believe is a testament to our strong pipeline and the result of the efforts of our growing team. The team is confident in our loan pipeline development, and now we need to quickly right size the funding side to maximize our NIM for the remainder of the year."

Commercial real estate loans increased 4% year-over-year to $726.77 million, representing 60% of total loans at March 31, 2026. The CRE portfolio includes $76.13 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 real estate construction and land development loan portfolio increased 135% from a year ago to $29.72 million, representing 2% of total loans, while residential RE 1-4 family loans totaled $40.52 million, or 3% of loans, at March 31, 2026, compared to $17.15 million one year ago.

The commercial and industrial (C&I) portfolio increased 20% to $312.09 million, at March 31, 2026, compared to $260.06 million a year earlier, and increased 8% from $288.72 million at December 31, 2025. C&I loans represented 26% of total loans at March 31, 2026.

Agriculture loans of $100.49 million represented 8% of the loan portfolio at March 31, 2026. At March 31, 2026, the SBA, USDA, and other government agencies guaranteed loans totaled $63.03 million, or 5% of the loan portfolio.

Investment securities totaled $252.96 million at March 31, 2026, compared to $313.83 million a year earlier, and increased $11.96 million from $241.00 million at December 31, 2025. At March 31, 2026, the Company had a net unrealized loss position on its investment securities portfolio of $20.58 million, compared to $24.50 million a year earlier, and $17.71 million at December 31, 2025. The Company’s investment securities portfolio had an effective duration of 6.53 years at March 31, 2026, compared to 5.61 years at March 31, 2025, and 6.40 years at December 31, 2025.

Total deposits increased 2%, or $20.56 million, to $1.34 billion at March 31, 2026, compared to $1.32 billion from a year earlier, and remained consistent at $1.34 billion when compared to December 31, 2025. Non-interest bearing demand deposits decreased 10% to $740.01 million at March 31, 2026, compared to $825.40 million at March 31, 2025, and decreased $46.24 million from $786.25 million at December 31, 2025 as a result of a shift in deposit balances migrating to interest bearing categories. Non-interest bearing demand deposits represented 55% of total deposits at March 31, 2026. Certificates of deposits decreased 2%, or $4.24 million, during the quarter. Wholesale deposits, which primarily consist of brokered CDs and ICS one-way buy deposits, totaled $143.25 million at March 31, 2026, compared to $88.94 million from a year earlier, and $142.94 million at December 31, 2025. Management intends to reduce wholesale deposit reliance through growth in Bank core customers and the expansion of existing ISO partner relationships.

Included in total non-interest bearing deposits at March 31, 2026 are $72.23 million from ISO partners for merchant reserves, $11.82 million from ISO partners for settlement, and $14.65 million in ISO partner operating accounts, totaling $98.70 million. These deposits represent 13% of non-interest bearing deposits and 7% of total deposits. At March 31, 2025 there was $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, totaling $235.09 million or 29% of non-interest bearing deposits and 18% of total deposits. These decreases were the result of strategic partner exits completed during 2025.

The Company has continued its regional expansion by adding a receivables financing team which utilizes a third party platform, Business Manager, to efficiently manage this unique business line. The Business Manager product line is led by a senior business leader and a support team acquired late in 2025. They have a nationwide approach while also supporting the core bank commercial lenders in cross-selling this product. To date the Bank has approved $51.60 million in loan commitments, with average utilization of 52%, while anticipating corresponding deposits reserves to grow on average to 30% of loan balances.

The regions are represented by two regional heads in the Central Valley, one in Northern California, and three in Southern California. Loan and deposit totals across these regions had the following balances as of March 31, 2026:

Balances by Region or Business Line as of March 31, 2026(in thousands)
	Loans				Deposits
Central California	$	748,456		Central California	$	966,822
Northern California		19,813		Northern California		38,159
Southern California		58,993		Southern California		90,304
Business Manager		12,183		Business Manager		1,978
Wholesale Multifamily		256,690		Wholesale Funding		143,387
SBA		114,199		Merchant Services		100,295
Total	$	1,210,334		Total	$	1,340,945

There were $25.00 million in short-term borrowings at March 31, 2026, compared to no borrowings at December 31, 2025, and $10.00 million at March 31, 2025. 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, 2026:

Liquidity Source(in thousands)	March 31, 2026		December 31, 2025
Cash and cash equivalents	$	42,974	$	98,267
Unpledged investment securities, fair value		99,789		64,737
FHLB advance capacity		311,409		320,087
Federal Reserve discount window capacity		149,466		156,923
Correspondent bank unsecured lines of credit		71,500		71,500
	$	675,138	$	711,514

The total primary and secondary liquidity of $675.14 million at March 31, 2026 represents a decrease of $36.38 million in primary and secondary liquidity quarter-over-quarter.

Shareholders’ equity increased 5% to $182.84 million at March 31, 2026, compared to $174.71 million from a year ago, and decreased 1% from the $184.80 million reported at December 31, 2025. Book value per common share increased 11% to $61.85, at March 31, 2026, compared to $55.52 at March 31, 2025, and increased from $61.64 at December 31, 2025. The tangible common equity ratio was 11.62% at March 31, 2026, compared to 11.20% a year earlier, and 11.68% at December 31, 2025. Book value improved as a result of quarterly net income and a reduction in shares outstanding through share repurchases.

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 $199.41 million at quarter end excluding the unrealized loss. The regulatory leverage capital ratio was 12.73% for the current quarter, while the total risk-based capital ratio was 17.27%, exceeding regulatory minimums to be considered well-capitalized.

Asset Quality

Nonperforming assets, which consist of nonperforming loans and other real estate owned, increased 25.06% to $34.71 million, or 2.21% of total assets, at March 31, 2026, compared to $27.76 million, or 1.76% of total assets, from the previous quarter. "Of the $34.71 million in nonperforming loans, $14.89 million is covered by SBA guarantees, while 60.69% of the remaining $19.83 million potential exposure is secured by real estate," added Miller, "We continue to actively evaluate resolution strategies, including addressing up to $10.00 million in nonperforming loans, which we expect to resolve in the near term." Total delinquent loans increased to $6.67 million at March 31, 2026, compared to $4.69 million at December 31, 2025.

Past due accruing loans 30-60 days were $6.31 million at March 31, 2026, compared to $4.33 million at December 31, 2025, and $17.53 million at March 31, 2025. There were $315,000 in past due accruing loans from 60-90 days at March 31, 2026, compared to $314,000 at December 31, 2025, and $1.54 million in past due accruing loans from 60-90 days a year earlier. Past due accruing loans 90+ days at quarter end totaled $45,000 at March 31, 2026, compared to $45,000 at December 31, 2025, and $46,000 at March 31, 2025.

Of the $6.67 million in past due accruing loans at March 31, 2026, $231,000 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	$	6,307	$	—	$	6,307
Delinquent accruing loans 60-89 days		129		186		315
Delinquent accruing loans 90+ days		—		45		45
Total delinquent accruing loans	$	6,436	$	231	$	6,667
Non-Accrual Loan Summary	Organic		Purchased Govt. Guaranteed		Total
(in thousands)
Loans on non-accrual	$	34,713	$	—	$	34,713
Non-accrual loans with SBA guarantees		14,885		—		14,885
Net Bank exposure to non-accrual loans	$	19,828	$	—	$	19,828

There was a $776,000 provision for credit losses in the first quarter of 2026, compared to $1.16 million provision for credit losses in the first quarter a year ago, and a $3.93 million provision for credit losses recorded in the fourth quarter of 2025. The provision recorded during the first quarter of 2026 is primarily the result of $691,000 in net charge-offs.

The ratio of allowance for credit losses to total loans was 1.40% at March 31, 2026, compared to 1.18% a year earlier and 1.44% at December 31, 2025. The Company individually evaluates non-accrual loans in the allowance for credit losses. The increase in non-accrual loans has resulted in carrying a higher level of reserve over the last few quarters. The ratio of allowance for credit losses to the total, non-guaranteed, loan portfolio was 1.48%, as of March 31, 2026, and the total non-guaranteed exposure of the SBA loan portfolio was $48.01 million, consisting of 247 loans.

"As we execute our strategic plan, which includes process improvement, we have centralized collections and special asset management into one unit to better manage under-performing assets,” added Miller. “We incurred net charge-offs of $691,000 during the current quarter, compared to $1,653,000 in net charge-offs in the previous quarter. The charge-offs recognized in the quarter were primarily attributed to several unsecured small business loans and unguaranteed portions of SBA loans that had been previously fully reserved. We have consistently expressed our concerns about the SBA portfolio performance due to current market conditions, and we haven't seen any positive news to alter our views for 2026. In addition to adjusting the internal credit management process, we have also tailored underwriting based on postmortems from our SBA losses.”

"The loan portfolio increased 11% from a year ago with commercial real estate (“CRE”) loans representing 60% of the total loan portfolio. Within the CRE portfolio, there are $45.37 million in loans for CRE office which is represented in the table below," said Miller, "As the majority of the Company's CRE office exposure is concentrated in the Central Valley of California, we are experiencing less volatility than traditional 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, 2026
Region	Owner-Occupied		Non-Owner Occupied		Total
Central Valley	$	21,343	$	13,020	$	34,363
Southern California		2,232		345		2,577
Other California		4,161		3,758		7,919
Total California		27,736		17,123		44,859
Out of California		—		513		513
Total CRE Office	$	27,736	$	17,636	$	45,372

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. The Bank was also ranked by S&P Global as the #34 best performing US 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; the tariff strategy of the Trump administration, and its related effects on the agriculture industry and connected businesses in the Central Valley; 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, 2026				December 31, 2025				March 31, 2025
BALANCE SHEET- ENDING BALANCES:
Total assets	$1,573,506				$1,581,522				$1,560,376
Total portfolio loans		1,210,334				1,196,424				1,092,441
Investment securities		252,955				240,997				313,826
Total deposits		1,340,945				1,343,649				1,320,381
Shareholders equity, net		182,842				184,795				174,711
INCOME STATEMENT DATA
Operating revenue		22,914				23,335				28,476
Operating expense		15,976				14,732				16,467
Pre-tax, pre-provision income		6,938				8,603				12,009
Net income after tax		4,585				3,213				8,098
SHARE DATA
Basic earnings per share	$1.53				$1.07				$2.56
Fully diluted EPS	$1.53				$1.07				$2.55
Book value per common share	$61.85				$61.64				$55.52
Common shares outstanding		2,956,265				2,998,124				3,146,727
Fully diluted shares		2,999,826				3,012,668				3,175,178
FFBB - Stock price	$85.65				$85.00				$76.50
RATIOS
Return on average assets		1.19%				0.81%				2.14%
Return on average equity		9.93%				6.79%				18.83%
Efficiency ratio		69.89%				63.12%				57.83%
Adjusted efficiency ratio		68.05%				60.40%				52.54%
Yield on earning assets		6.11%				6.02%				6.31%
Yield on investment securities		3.48%				3.70%				4.36%
Yield on portfolio loans		6.55%				6.54%				6.81%
Cost to fund earning assets		1.22%				1.17%				0.96%
Cost of interest-bearing deposits		2.83%				2.80%				2.60%
Net Interest Margin		4.89%				4.86%				5.35%
Equity to assets		11.62%				11.68%				11.20%
Net loan to deposit ratio		90.26%				89.04%				82.74%
Full time equivalent employees		199				189				175
BALANCE SHEET- AVERAGES
Total assets		1,557,814				1,569,615				1,531,573
Total portfolio loans		1,215,806				1,190,626				1,076,848
Investment securities		240,666				245,335				325,699
Total deposits		1,328,707				1,317,817				1,300,550
Shareholders equity, net		187,270				187,713				174,410

Consolidated Balance Sheet (unaudited)
(in thousands)	March 31, 2026				December 31, 2025				March 31, 2025
ASSETS
Cash and due from banks	$	35,993			$	24,333			$	83,033
Interest bearing deposits in banks		6,981				73,934				20,038
CDs in other banks		—				1,489				1,724
Investment securities		252,955				240,997				313,826
Loans held for sale		18,328				—				—
Construction & land development		29,718				23,118				12,649
Residential RE 1-4 family		40,515				41,899				17,146
Commercial real estate		726,774				746,245				696,625
Agriculture		100,490				96,129				104,616
Commercial and industrial		312,092				288,723				260,063
Consumer and other		745				310				1,342
Portfolio loans		1,210,334				1,196,424				1,092,441
Deferred fees & costs		(3,582	)			(4,108	)			(3,946	)
Allowance for credit losses		(16,999	)			(17,180	)			(12,913	)
Loans, net		1,189,753				1,175,136				1,075,582
Non-marketable equity investments		10,419				9,970				8,890
Cash value of life insurance		12,900				12,798				12,496
Accrued interest and other assets		46,177				42,865				44,787
Total assets	$	1,573,506			$	1,581,522			$	1,560,376
LIABILITIES AND EQUITY
Non-interest bearing deposits	$	740,014			$	786,249			$	825,404
Interest checking		135,236				115,168				109,555
Savings		49,727				47,665				54,686
Money market		246,128				220,492				218,940
Certificates of deposits		169,840				174,075				111,796
Total deposits		1,340,945				1,343,649				1,320,381
Short-term borrowings		25,000				—				10,000
Long-term debt		9,896				38,153				38,046
Other liabilities		14,823				14,925				17,238
Total liabilities		1,390,664				1,396,727				1,385,665
Common stock		38,235				25,529				35,693
Retained earnings		159,079				171,722				156,235
Accumulated other comprehensive loss		(14,472	)			(12,456	)			(17,217	)
Shareholders' equity		182,842				184,795				174,711
Total liabilities and shareholders' equity	$	1,573,506			$	1,581,522			$	1,560,376

Consolidated Income Statement (unaudited)	Quarter ended:
(in thousands)	March 31, 2026			December 31, 2025				March 31, 2025
INTEREST INCOME:
Loan interest income	$	19,644		$	19,619			$	18,069
Investment income		2,067			2,289				3,499
Int. on fed funds & CDs in other banks		205			352				574
Dividends from non-marketable equity		350			160				132
Total interest income		22,266			22,420				22,274
INTEREST EXPENSE:
Int. on deposits		4,068			3,756				2,891
Int. on short-term borrowings		24			1				31
Int. on long-term debt		351			581				451
Total interest expense		4,443			4,338				3,373
Net interest income		17,823			18,082				18,901
PROVISION FOR CREDIT LOSSES		776			3,932				1,164
Net interest income after provision		17,047			14,150				17,737
NON-INTEREST INCOME:
Total deposit fee income		912			822				849
Debit / credit card interchange income		178			217				191
Merchant services income		2,496			2,645				7,864
Gain on sale of loans		941			1,160				261
Gain (loss) on sale of investments		55			(6	)			—
Other operating income		509			415				410
Total non-interest income		5,091			5,253				9,575
NON-INTEREST EXPENSE:
Salaries & employee benefits		9,010			7,433				8,056
Occupancy expense		535			471				353
Merchant services operating expense		1,317			1,603				3,174
Professional fees		1,027			1,365				818
Data & technology expense		1,726			1,601				1,267
Other operating expense		2,361			2,259				2,799
Total non-interest expense		15,976			14,732				16,467
Income before provision for income tax		6,162			4,671				10,845
PROVISION FOR INCOME TAXES		1,577			1,458				2,747
Net income	$	4,585		$	3,213			$	8,098

        

ASSET QUALITY
(in thousands)	March 31, 2026				December 31, 2025				March 31, 2025
Delinquent accruing loans 30-60 days	$	6,307			$	4,329			$	17,533
Delinquent accruing loans 60-90 days		315				314				1,537
Delinquent accruing loans 90+ days		45				45				46
Total delinquent accruing loans	$	6,667			$	4,688			$	19,116
Loans on non-accrual	$	34,713			$	27,756			$	15,366
Other real estate owned		—				—				—
Nonperforming assets	$	34,713			$	27,756			$	15,366
Delinquent 30-60 / Total Loans		0.52	%			0.36	%			1.60	%
Delinquent 60-90 / Total Loans		0.03	%			0.03	%			0.14	%
Delinquent 90+ / Total Loans		—	%			—	%			—	%
Delinquent Loans / Total Loans		0.55	%			0.39	%			1.75	%
Non-accrual / Total Loans		2.87	%			2.32	%			1.41	%
Nonperforming assets to total assets		2.21	%			1.76	%			0.98	%
Year-to-date charge-off activity
Charge-offs	$	702			$	3,334			$	167
Recoveries		11				339				—
Net charge-offs (recoveries)	$	691			$	2,995			$	167
Annualized net loan losses to average loans		0.23	%			0.25	%			0.06	%
CREDIT LOSS RESERVE RATIOS:
Allowance for credit losses	$	16,999			$	17,180			$	12,913
Total loans	$	1,210,334			$	1,196,424			$	1,092,441
Purchased govt. guaranteed loans	$	13,891			$	14,398			$	16,081
Originated govt. guaranteed loans	$	49,134			$	44,753			$	45,285
ACL / Total loans		1.40	%			1.44	%			1.18	%
ACL / Loans less 100% govt. gte. loans (purchased)		1.42	%			1.45	%			1.20	%
ACL / Loans less all govt. guaranteed loans		1.48	%			1.51	%			1.25	%
ACL / Total assets		1.08	%			1.09	%			0.83	%

	For the Quarter Ended:
SELECT FINANCIAL TREND  INFORMATION	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
BALANCE SHEET- PERIOD END
Total assets	$	1,573,506		$	1,581,522		$	1,499,233		$	1,473,927		$	1,560,376
Loans held for sale		18,328			—			23,457			—			—
Loans held for investment		1,210,334			1,196,424			1,121,924			1,091,964			1,092,441
Investment securities		252,955			240,997			248,282			254,177			313,826
Non-interest bearing deposits		740,014			786,249			758,237			759,300			825,404
Interest bearing deposits		600,931			557,400			500,024			475,348			494,977
Total deposits		1,340,945			1,343,649			1,258,261			1,234,648			1,320,381
Short-term borrowings		25,000			—			7,000			16,000			10,000
Long-term debt		9,896			38,153			38,125			38,086			38,046
Total equity		197,314			197,251			193,753			191,773			191,928
Accumulated other comprehensive loss		(14,472	)		(12,456	)		(14,329	)		(17,865	)		(17,217	)
Shareholders' equity		182,842			184,795			179,424			173,908			174,711
QUARTERLY INCOME STATEMENT
Interest income	$	22,266		$	22,420		$	22,029		$	21,971		$	22,274
Interest expense		4,443			4,338			3,975			3,865			3,373
Net interest income		17,823			18,082			18,054			18,106			18,901
Non-interest income		5,091			5,253			5,438			9,243			9,575
Gross revenue		22,914			23,335			23,492			27,349			28,476
Provision for credit losses		776			3,932			687			3,157			1,164
Non-interest expense		15,976			14,732			14,273			15,768			16,467
Net income before tax		6,162			4,671			8,532			8,424			10,845
Tax provision		1,577			1,458			2,296			2,388			2,747
Net income after tax		4,585			3,213			6,236			6,036			8,098
BALANCE SHEET- AVERAGE BALANCE
Total assets	$	1,557,814		$	1,569,615		$	1,480,234		$	1,525,601		$	1,531,573
Loans held for sale		315			292			1,190			—			—
Loans held for investment		1,215,806			1,190,626			1,120,353			1,112,380			1,076,848
Investment securities		240,666			245,335			251,213			289,127			325,699
Non-interest bearing deposits		745,288			785,452			751,139			812,753			850,426
Interest bearing deposits		583,419			532,365			493,430			468,604			450,124
Total deposits		1,328,707			1,317,817			1,244,569			1,281,357			1,300,550
Short-term borrowings		2,921			—			446			11,110			2,856
Long-term debt		23,397			38,153			38,107			38,068			38,028
Shareholders' equity		187,270			187,713			175,101			176,074			174,410

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

FAQ

What were FFB Bancorp (FFBB) Q1 2026 earnings per share and net income?

FFB Bancorp reported Q1 2026 net income $4.59M, or $1.53 per diluted share. According to the company, this compares with $8.10M, or $2.55 per diluted share, in Q1 2025 and $3.21M in Q4 2025.

How did FFB Bancorp's loan portfolio change in Q1 2026 for FFBB?

The total loan portfolio grew to $1.21 billion, an 11% increase year-over-year. According to the company, growth was driven by continued repricing and strong loan production.

What is the status of FFB Bancorp's stock repurchase program (FFBB) as of March 31, 2026?

Through March 31, 2026 the company repurchased 62,767 shares for $5.38M under a $15.0M authorization. According to the company, repurchases may continue through December 31, 2026 at management's discretion.

Why did FFB Bancorp's merchant services revenue decline in Q1 2026 for FFBB?

Merchant services revenue fell 68% year-over-year primarily due to planned ISO partner exits and lower FFB Payments volumes. According to the company, repricing and partner changes reduced gross volume and revenue.

Did FFB Bancorp change its capital structure in Q1 2026 (FFBB)?

The company redeemed $28.3M of subordinated debentures and repurchased common shares totaling $5.38M. According to the company, these actions affect long-term funding and shareholder capital allocation.

How did FFB Bancorp's operating revenue and margin perform in Q1 2026 (FFBB)?

Operating revenue declined to $22.91M, down 20% year-over-year, while NIM was 4.89%. According to the company, lower gain on sale of loans and investment income weighed on revenue.