FFB Bancorp Announces Fourth Quarter 2025 Results:

Rhea-AI Summary

FFB Bancorp (OTCQX: FFBB) reported Q4 2025 net income $3.21M ($1.07 diluted) and FY2025 net income $23.58M ($7.66 diluted), down from $9.72M Q4 2024 and $34.15M FY2024. Operating revenue for Q4 fell 17% YoY to $23.34M; net interest margin declined to 4.86%. Provision expense rose to $3.93M in Q4 (up 472% QoQ). Loans and deposits grew 7% QoQ to $1.20B and $1.34B, respectively. Capital remains strong with tangible common equity at 11.68%. The company authorized redemption of $28.3M subordinated debt on Feb 15, 2026, and a share buyback program up to $15.0M beginning Jan 30, 2026.

Positive

• Total loans +7% QoQ to $1.20B
• Total deposits +7% QoQ to $1.34B
• Tangible common equity ratio at 11.68%
• Authorized share repurchase plan up to $15.0M (~8.1% of equity)

Negative

• Q4 2025 net income declined to $3.21M (vs $9.72M Q4 2024)
• Operating revenue -17% YoY to $23.34M
• Provision expense increased 472% QoQ to $3.93M
• Merchant services revenue -65% YoY to $2.65M
• Salaries and employee benefits +44% YoY to $7.43M

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FRESNO, Calif., Jan. 26, 2026 (GLOBE NEWSWIRE) -- FFB Bancorp (the “Company”) (OTCQX: FFBB), the parent company of FFB Bank (the “Bank”), today reported net income of $3.21 million, or $1.07 per diluted share, for the fourth quarter of 2025, compared to $6.24 million, or $2.06 per diluted share, for the third quarter of 2025, and $9.72 million, or $3.05 per diluted share, for the fourth quarter of 2024.

For the year ended December 31, 2025, net income was $23.58 million, or $7.66 per diluted share, compared to $34.15 million, or $10.72 per diluted share, for the same period in 2024. All results are unaudited.

Fourth Quarter 2025 Summary: As of, or for the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025, and December 31, 2024, respectively:

• Operating revenue (net interest income, before the provision for credit losses, plus non-interest income) decreased 1% to $23.34 million from the previous quarter and decreased 17% when compared to the same quarter of the prior year.
• Pre-provision net revenue decreased 7% to $8.60 million from the previous quarter and decreased 43% when compared to the same quarter of the prior year.
• Provision expense increased 472% to $3.93 million from the previous quarter and increased 135% when compared to the same quarter of the prior year.
• Total assets increased 5% to $1.58 billion from the previous quarter and increased 5% when compared to the same quarter of the prior year.
• Total portfolio of loans increased 7% to $1.20 billion from the previous quarter and increased 12% when compared to the same quarter for the prior year.
• Total deposits increased 7% to $1.34 billion from the previous quarter and increased 5% when compared to the same quarter of the prior year.
• Shareholder equity increased 3% to $184.80 million from the previous quarter and increased 10% when compared to the same quarter for the prior year.
• Book value per common share increased 3% to $61.64, when compared to the previous quarter, and increased 16% from the same quarter of the prior year.
• Return on average equity (“ROAE”) was 6.79%.
• Return on average assets (“ROAA”) was 0.81%.
• The Company’s tangible common equity ratio was 11.68%, while the Bank’s regulatory leverage capital ratio was 15.04%, and the total risk-based capital ratio was 20.54% at December 31, 2025.
  
  

"The Bank celebrated its 20-year anniversary in the fourth quarter, marking an important milestone and a reflection of the trust our customers have placed in us, the dedication of our team, and strength of the communities we serve," said Steve Miller, President & CEO.

“During the quarter we saw additional growth in the loan and deposit portfolios and continued to execute on our strategic plan, which includes technology, product, and process improvement. We are in a position of capital strength, which is why we have the confidence to redeem our subordinated debt during the first quarter of 2026. In addition, we feel that the best use of our excess capital is to buy back existing shares in the market."

"While a 1.50% annual ROAA is strong by most bank standards, we are not satisfied with our 2025 results. This year we have had the opportunity to bring in experienced leaders that we believe will enable the team to focus on key strategies for 2026 and set the foundation for future growth in 2027 and beyond. In addition to executing our organic growth strategy, the M&A dynamics in our core markets are also presenting opportunities for our frontline teams to capture."

FFB Bancorp Announces Redemption of Subordinated Debt:

The Company has authorized a plan to redeem in full the $28.3 million principal amount of subordinated debentures at par on February 15, 2026, or such later date as required by regulation, plus accrued and unpaid interest to the redemption date. This would represent approximately 15.3% of total shareholders’ equity at December 31, 2025.

The Company’s Board of Directors has reviewed pro forma consolidated capital and liquidity projections and determined that it is in the best interest of the Company and its shareholders to authorize the redemption of this subordinated debt.

FFB Bancorp Announces Stock Repurchase Program:

The Company has authorized a plan to utilize up to $15.0 million of capital to repurchase shares of the Company’s common stock, which represents approximately 8.1% of total shareholders’ equity at December 31, 2025, and will commence on or about January 30, 2026, provided that the Company is not then in possession of material non-public information.

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. Open market repurchases generally will be made in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "34 Act"), and may also be made pursuant to a trading plan under Rule 10b5-1 of the '34 Act, 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.

The Company’s management believes the repurchase plan, depending upon market and business conditions, may, among other things, provide capital management opportunities for the Company. The Company is not obligated to repurchase any shares under the repurchase plan. Through December 31, 2026, the repurchase plan may be discontinued, suspended or restarted at any time.

Results of Operations

Quarter ended December 31, 2025:

Operating revenue, consisting of net interest income before the provision for credit losses and non-interest income, decreased 17% to $23.34 million for the fourth quarter of 2025, compared to $28.25 million for the fourth quarter a year ago, and decreased 1% from $23.49 million for the third quarter of 2025. The decrease in operating revenue was primarily the result of a decrease in non-interest income, primarily merchant services income.

Net interest income, before the provision for credit losses, decreased 4% to $18.08 million for the fourth quarter of 2025, compared to $18.81 million for the same quarter a year ago, and increased $28,000 from $18.05 million from last quarter. The Company’s net interest margin (“NIM”) decreased by 38 basis points to 4.86% for the fourth quarter of 2025, compared to 5.24% for the fourth quarter of 2024, and decreased 29 basis points from 5.15% for the preceding quarter. “Net interest income and NIM decreased from the prior quarter primarily driven by lower yield on earnings assets and increased funding costs. The decrease in the earning assets yield was primarily the result of the decrease in market rates and related impact on variable rate loans," said Bhavneet Gill, Chief Financial Officer.

The yield on earning assets was 6.02% for the fourth quarter of 2025, compared to 6.24% for the fourth quarter a year ago, and 6.29% for the previous quarter. The cost to fund earning assets increased to 1.17% for the fourth quarter of 2025 compared to 1.13% for the previous quarter, and 1.00% for the same quarter a year earlier. This increase is the result of an increased reliance on wholesale funds due to ISO deposit outflow that occurred during 2025. As deposits for Bank customers and ISO partners increase as we expect over the next few quarters, Management intends to reduce reliance on wholesale funding. "In 2026 we should have the opportunity to grow our existing ISO partners in all risk verticals, which should attract new deposit opportunities to replace what we exited in 2025. In addition, with increased bank merger and acquisition activity happening in our regions, we believe our teams have the opportunity to acquire new customers and talent through the typical market disruption this causes," said Miller, "We refer to this as organic growth M&A."

Total non-interest income was $5.25 million for the fourth quarter of 2025, compared to $9.44 million for the fourth quarter of 2024, and $5.44 million for the previous quarter. The decrease in non-interest income was driven by a decrease in merchant services revenue. Merchant services revenue decreased 65% to $2.65 million for the fourth quarter of 2025, compared to $7.56 million from the fourth quarter of 2024. 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 18% from $3.21 million when compared to the third quarter of 2025 as a result of reduction in ISO partner sponsorship volumes and reduction in FFB Payments revenue from repricing.

During the first and second quarters of 2025, ISO Partner Sponsorship volumes included $2.78 billion and $2.56 billion in volume, respectively, for the ISO partners that exited during 2025. Additionally, the first and second quarters of 2025 included ISO Partner Sponsorship revenues of $990,000 and $1.09 million, respectively, from the ISO partners that exited during 2025. "These ISO exits were driven by our efforts to comply with the Consent Order and designed to ensure best in class oversight. We continue to build relationships within FFB Payments and look to strengthen the commitments with our remaining ISO partners as we move forward," said Miller. "We continue to make progress on the obligations set forth within the Consent Order."

Merchant ISO Processing Volumes (in thousands)
Source	Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2024
ISO Partner Sponsorship	$	2,773,101	$	3,099,287	$	5,347,695	$	5,007,998	$	4,891,643
FFB Payments- Sub-ISO Merchants		21,679		19,023		20,766		21,551		22,950
FFB Payments- Direct Merchants		26,347		28,573		71,746		97,095		91,133
Total volume	$	2,821,127	$	3,146,883	$	5,440,207	$	5,126,644	$	5,005,726

Merchant ISO Processing Revenues (in thousands)
Source of Revenue	Q4 2025			Q3 2025			Q2 2025		Q1 2025		Q4 2024
Net Revenue*:
ISO Partner Sponsorship	$	1,339		$	1,937		$	2,654	$	2,410	$	2,535
Gross Revenue:
FFB Payments- Sub-ISO Merchants		726			633			727		745		764
FFB Payments- Direct Merchants		580			640			3,228		4,709		4,262
		1,306			1,273			3,955		5,454		5,026
Gross Expense:
FFB Payments- Sub-ISO Merchants		883			780			708		616		638
FFB Payments- Direct Merchants		720			801			2,179		2,558		2,511
		1,603			1,581			2,887		3,174		3,149
Net Revenue:
FFB Payments- Sub-ISO Merchants		(157	)		(147	)		19		129		126
FFB Payments- Direct Merchants		(140	)		(161	)		1,049		2,151		1,751
FFB Payments Net Revenue		(297	)		(308	)		1,068		2,280		1,877
Net Merchant Services Income:	$	1,042		$	1,629		$	3,722	$	4,690	$	4,412

*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.

Total deposit fee income decreased 4% to $822,000 for the fourth quarter of 2025, compared to $856,000 for the fourth quarter of 2024, and increased 1% from $812,000 for the previous quarter. These changes are primarily the result of the relative change in the deposit portfolio and shifts within deposit concentrations.

There was a $1.16 million gain on the sale of loans during the fourth quarter of 2025, compared to a gain on the sale of loans of $929,000 during the fourth quarter 2024, and a gain on the sale of loans of $361,000 in the previous quarter. There was a $6,000 loss on the sale of investments recorded during the fourth quarter of 2025, compared to a $482,000 loss recorded during the fourth quarter of 2024. The gain on the sale of loans during the quarter was the result of $8.71 million in SBA loan sales and $23.44 million in multifamily loan sales that were completed during the quarter. These sales contributed $611,000 and $549,000 in gain respectively.

Non-interest expense increased 3% to $14.73 million for the fourth quarter of 2025, compared to $14.27 million from the previous quarter, and increased 11%, compared to the $13.27 million recorded for the fourth quarter 2024. The increase on a year-over-year comparison was driven by increases in salaries and employee benefits expense, and increases in other operating expense, primarily data and software related expenses and professional fees. Compared to the third quarter of 2025 the increase in non-interest expense was attributed to an increase in other operating expenses and professional fees, partially offset by a decrease in salaries and employee benefit expense. "The Board and I have a focused strategy on maximizing existing software tools while also implementing AI and similar efficiencies to avoid over hiring, and more importantly, to improve the quality of our staff's work by letting tech do the more remedial tasks,” said Miller, "We are quickly seeing the impact of how new technology will help us eliminate or consolidate redundant systems. This will also enable key department functions to be automated in more efficient ways than before. My role will be to help shepherd our team to stay up to speed with these new technologies and ensure we are implementing appropriate change to help drive productivity.”

Salaries and employee benefits increased 44% to $7.43 million for the fourth quarter of 2025, compared to $5.18 million for the fourth quarter 2024. The increase year-over-year was primarily the result of expense associated with the increase in full-time employees. Full-time employees increased to 189 at December 31, 2025, compared to 168 full-time employees a year earlier. Total salaries and employee benefits decreased 3% from $7.67 million in the previous quarter. These decreases were primarily the result of non-recurring reductions of $465,000 and $361,000 in performance bonus and ESOP accruals, respectively.

Occupancy and equipment expenses increased 15% from a year ago, representing 3% of non-interest expense, and increased 3% from the previous quarter. These increases are the result of increased rent expense from office expansion. Merchant operating expense totaled $1.60 million for the fourth quarter of 2025, compared to $3.15 million for the fourth quarter of 2024 and $1.58 million for the previous quarter. The decrease in merchant operating expense, compared to the fourth quarter of 2024, 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 16% to $1.37 million for the fourth quarter of 2025, compared to $1.18 million for the fourth quarter 2024. Total professional fees increased 13% from $1.20 million in the previous quarter. "Fourth 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," noted Gill.

Data and technology expenses increased 33% to $1.60 million for the fourth quarter of 2025, compared to $1.20 million for the fourth quarter 2024. Data and technology expenses increased 6% from $1.51 million in the previous quarter. The increase in data and technology expense and professional fees is primarily due to actions taken to enhance the Company's AML/CFT, compliance, and merchant services programs.

Other operating expense increased 5% or $108,000 to $2.26 million from a year earlier and increased $405,000 from the previous quarter. The quarterly increase was driven by increases in marketing expense, loan collection expense, and higher fraud related operational losses.

The efficiency ratio was 63.12% for the fourth quarter of 2025, compared to 46.19% for the same quarter a year ago, and 60.76% 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 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 60.40% for the fourth quarter of 2025, compared to 39.57% for the same quarter a year ago, and 57.93% for the previous quarter.

Year ended December 31, 2025:

For the year ended December 31, 2025, operating revenue increased 1% to $102.65 million, compared to $101.99 million for the same period in 2024. For the year ended December 31, 2025, net interest income before the provision for credit losses increased 4% to $73.14 million, compared to $70.04 million for the same period in 2024. The increase in net interest income is attributed to growth in the loan portfolio, partially offset by a decrease in investment interest income and increase in interest expense due to higher funding costs. For the year ended December 31, 2025, the yield on earning assets was 6.15% compared to 6.26% for the same period in 2024, while the cost to fund earning assets was 1.08% for the year ended December 31, 2025, compared to 1.04% for the same period in 2024.

For the year ended December 31, 2025, non-interest income decreased 8% to $29.51 million compared to $31.95 million for the same period in 2024. This decrease was attributed to a $4.94 million decrease in merchant services revenue, partially offset by a $702,000 increase in gain on sale of loans, $1.05 million decrease in the loss on sale of investments and higher loan servicing income. Deposit fee income remained consistent with the prior year at $3.34 million.

For the year ended December 31, 2025, operating expenses increased by 18% to $61.24 million from $51.99 million for the same period in 2024. Salaries and employee benefits expense increased 25% to $31.16 million as a result of the increase in FTE. There was a 13% decrease in merchant services operating expenses, to $9.24 million, which represents 15% of total operating expenses for year ended December 31, 2025. Other operating expenses increased 22% to $8.90 million due to a $1.40 million increase in technology related expenses, increases of $1.42 million in professional fees, $279,000 in marketing expense, and $522,000 in operational losses.

For the year ended December 31, 2025, the efficiency ratio was 59.51%, compared to 50.34% for the same period ended December 31, 2024. The adjusted efficiency ratio was 55.52%, compared to 44.62% for the same period ended December 31, 2024.

Balance Sheet Review

Total assets increased 5% to $1.58 billion at December 31, 2025, compared to $1.50 billion at December 31, 2024, and increased 5% compared to $1.50 billion at September 30, 2025.

The total loan portfolio increased 12%, or $125.35 million, to $1.20 billion, compared to $1.07 billion at December 31, 2024, and increased 7% from the $1.12 billion reported at September 30, 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. When you add back the $90.33 million in sold production from 2025, the team achieved 15% loan growth compared to the prior year," said Miller, "In the first half of 2026, we will be launching a new corporate card product and small business loan product which we believe can provide even more value to our customers."

Commercial real estate loans increased 11% year-over-year to $746.25 million, representing 62% of total loans at December 31, 2025. The CRE portfolio includes $80.25 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 decreased 13% from a year ago to $23.12 million, representing 2% of total loans, while residential RE 1-4 family loans totaled $41.90 million, or 4% of loans, at December 31, 2025, compared to $16.85 million one year ago.

The commercial and industrial (C&I) portfolio increased 8% to $288.72 million, at December 31, 2025, compared to $267.95 million a year earlier, and increased 7% from $269.90 million at September 30, 2025. C&I loans represented 24% of total loans at December 31, 2025.

Agriculture loans of $96.13 million represented 8% of the loan portfolio at December 31, 2025. At December 31, 2025, the SBA, USDA, and other government agencies guaranteed loans totaled $59.15 million, or 5% of the loan portfolio.

Investment securities totaled $241.00 million at December 31, 2025, compared to $322.19 million a year earlier, and decreased $7.29 million from $248.28 million at September 30, 2025. At December 31, 2025, the Company had a net unrealized loss position on its investment securities portfolio of $17.71 million, compared to $25.89 million a year earlier, and $20.37 million at September 30, 2025. The Company’s investment securities portfolio had an effective duration of 6.40 years at December 31, 2025, compared to 5.32 years at December 31, 2024, and 6.17 years at September 30, 2025.

Total deposits increased 5%, or $59.27 million, to $1.34 billion at December 31, 2025, compared to $1.28 billion from a year earlier, and increased $85.39 million from $1.26 billion at September 30, 2025. Non-interest bearing demand deposits decreased 5% to $786.25 million at December 31, 2025, compared to $828.51 million at December 31, 2024, and increased $28.01 million from $758.24 million at September 30, 2025. Non-interest bearing demand deposits represented 59% of total deposits at December 31, 2025. During the fourth quarter of 2025 non-interest bearing demand deposits were reduced by $16.12 million due to strategic ISO partner exits. Certificates of deposits increased 2%, or $3.87 million, during the quarter. Wholesale deposits, which primarily consist of brokered CDs and ICS one-way buy deposits, totaled $142.94 million at December 31, 2025, compared to $43.94 million from a year earlier, and $101.94 million at September 30, 2025. Management intends to reduce wholesale deposits as Bank customer and ISO partners increase deposits as expected.

Included in total non-interest bearing deposits at December 31, 2025 are $73.33 million from ISO partners for merchant reserves, $14.61 million from ISO partners for settlement, and $14.46 million in ISO partner operating accounts, totaling $102.41 million. These deposits represent 13% of non-interest bearing deposits and 8% of total deposits. At December 31, 2024 there was $82.66 million from ISO partners for merchant reserves, $134.37 million from ISO partners for settlement, and $8.32 million in ISO partner operating accounts, totaling $225.36 million or 27% of non-interest bearing deposits and 18% of total deposits. These decreases were the result of strategic partner exits completed during 2025.

Within the $102.41 million in ISO partner deposits retained as of December 31, 2025 are $8.49 million in deposits expected to exit with terminated ISO partners. 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.

The Company has expanded its leadership team under our new Chief Banking Officer role announced last quarter, to include regional heads that provide coverage across the State of California. These regions are represented by two regional heads in the Central Valley, one in Northern California, and two in Southern California. Loan and deposit totals across these regions had the following balances as of December 31, 2025:

Regional Loan Balances as of December 31, 2025
Central Valley		Northern California		Southern California		SBA		Wholesale Multifamily		Total
$	764,168	$	29,415	$	55,129	$	91,905	$	255,807	$	1,196,424

Regional Deposit Balances as of December 31, 2025
Central Valley		Northern California		Southern California		ISO Partner Sponsorship		Wholesale Funding		Total
$	986,456	$	29,595	$	82,233	$	102,405	$	142,960	$	1,343,649

There were no short-term borrowings at December 31, 2025, or December 31, 2024, compared to $7.00 million at September 30, 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 December 31, 2025:

Liquidity Source (in thousands)	December 31, 2025		September 30, 2025
Cash and cash equivalents	$	98,267	$	58,286
Unpledged investment securities, fair value		64,737		63,032
FHLB advance capacity		320,087		295,815
Federal Reserve discount window capacity		156,923		160,264
Correspondent bank unsecured lines of credit		71,500		71,500
	$	711,514	$	648,897

The total primary and secondary liquidity of $711.51 million at December 31, 2025 represents an increase of $62.62 million in primary and secondary liquidity quarter-over-quarter.

Shareholders’ equity increased 10% to $184.80 million at December 31, 2025, compared to $168.39 million from a year ago, and increased 3% from the $179.42 million reported at September 30, 2025. Book value per common share increased 16% to $61.64, at December 31, 2025, compared to $53.02 at December 31, 2024, and increased 3% from $59.84 at September 30, 2025. The tangible common equity ratio was 11.68% at December 31, 2025, compared to 11.20% a year earlier, and 11.97% at September 30, 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 $233.18 million at quarter end excluding the unrealized loss. The regulatory leverage capital ratio was 15.04% for the current quarter, while the total risk-based capital ratio was 20.54%, exceeding regulatory minimums to be considered well-capitalized.

Asset Quality

Nonperforming assets, which consist of nonperforming loans and other real estate owned, decreased 0.61% to $27.76 million, or 1.76% of total assets, at December 31, 2025, compared to $27.93 million, or 1.86% of total assets, from the previous quarter. Of the $27.76 million in nonperforming loans, $9.71 million are covered by SBA guarantees, and 50.23% are secured by real estate. Total delinquent loans decreased to $4.69 million at December 31, 2025, compared to $7.53 million at September 30, 2025.

Past due accruing loans 30-60 days were $4.33 million at December 31, 2025, compared to $6.21 million at September 30, 2025, and $4.89 million at December 31, 2024. There were $314,000 in past due accruing loans from 60-90 days at December 31, 2025, compared to $355,000 at September 30, 2025, and $2.45 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 December 31, 2025, compared to $966,000 at September 30, 2025, and $987,000 at December 31, 2024.

Of the $4.69 million in past due accruing loans at December 31, 2025, $719,000 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	$	3,655	$	674	$	4,329
Delinquent accruing loans 60-89 days		314		—		314
Delinquent accruing loans 90+ days		—		45		45
Total delinquent accruing loans	$	3,969	$	719	$	4,688
Non-Accrual Loan Summary	Organic		Purchased Govt. Guaranteed		Total
(in thousands)
Loans on non-accrual	$	27,756	$	—	$	27,756
Non-accrual loans with SBA guarantees		9,709		—		9,709
Net Bank exposure to non-accrual loans	$	18,047	$	—	$	18,047

There was a $3.93 million provision for credit losses in the fourth quarter of 2025, compared to $1.67 million provision for credit losses in the fourth quarter a year ago, and a $687,000 provision for credit losses recorded in the third quarter of 2025. The provision recorded during the fourth quarter of 2025 is the result of $1.65 million in net charge-offs, $634,000 increase in specific reserves on nonperforming loans, $399,000 increase in reserves for unfunded commitments, and reserves calculated for the $74.50 million increase in loan portfolio balances.

The ratio of allowance for credit losses to total loans was 1.44% at December 31, 2025, compared to 1.10% a year earlier and 1.36% at September 30, 2025. The Company individually evaluates non-accrual loans in the allowance for credit losses. The recent increase in non-accrual loans has resulted in carrying a higher level of reserve during the year. The ratio of allowance for credit losses to the total, non-guaranteed, loan portfolio was 1.51%, as of December 31, 2025, and the total non-guaranteed exposure of the SBA loan portfolio was $48.71 million, consisting of 239 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 $1,653,000 during the current quarter, compared to $1,287,000 in net charge-offs in the fourth quarter a year ago, and $571,000 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 today's market conditions. 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 12% from a year ago with commercial real estate (“CRE”) loans representing 62% of the total loan portfolio. Within the CRE portfolio, there are $42.48 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, 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 December 31, 2025
Region	Owner-Occupied		Non-Owner Occupied		Total
Central Valley	$	21,520	$	14,367	$	35,887
Southern California		2,242		347		2,589
Other California		3,070		413		3,483
Total California		26,832		15,127		41,959
Out of California		—		517		517
Total CRE Office	$	26,832	$	15,644	$	42,476

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 atwww.ffb.bankor 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:									Year to Date as of:
	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
BALANCE SHEET- ENDING BALANCES:
Total assets		$1,581,522			$1,499,233			$1,504,128
Total portfolio loans		1,196,424			1,121,924			1,071,079
Investment securities		240,997			248,282			322,186
Total deposits		1,343,649			1,258,261			1,284,377
Shareholders equity, net		184,795			179,424			168,392
INCOME STATEMENT DATA
Operating revenue		23,335			23,492			28,247			102,653			101,990
Operating expense		14,732			14,273			13,270			61,240			51,992
Pre-tax, pre-provision income		8,603			9,219			14,977			41,413			49,998
Net income after tax		3,213			6,236			9,718			23,583			34,147
SHARE DATA
Basic earnings per share		$1.07			$2.07			$3.06			$7.68			$10.76
Fully diluted EPS		$1.07			$2.06			$3.05			$7.66			$10.72
Book value per common share		$61.64			$59.84			$53.02
Common shares outstanding		2,998,124			2,998,254			3,175,817
Fully diluted shares		3,012,668			3,025,332			3,189,949			3,078,795			3,184,490
FFBB - Stock price		$85.00			$81.45			$97.97
RATIOS
Return on average assets		0.81 %			1.67 %			2.53 %			1.53 %			2.38 %
Return on average equity		6.79 %			14.13 %			23.11 %			12.75 %			22.78 %
Efficiency ratio		63.12 %			60.76 %			46.19 %			59.51 %			50.34 %
Adjusted efficiency ratio		60.40 %			57.93 %			39.57 %			55.52 %			44.62 %
Yield on earning assets		6.02 %			6.29 %			6.24 %			6.15 %			6.26 %
Yield on investment securities		3.70 %			3.79 %			4.34 %			4.51 %			4.47 %
Yield on portfolio loans		6.54 %			6.76 %			6.95 %			6.50 %			6.86 %
Cost to fund earning assets		1.17 %			1.13 %			1.00 %			1.08 %			1.04 %
Cost of interest-bearing deposits		2.80 %			2.83 %			2.69 %			2.58 %			2.70 %
Net Interest Margin		4.86 %			5.15 %			5.24 %			5.07 %			5.22 %
Equity to assets		11.68 %			11.97 %			11.20 %
Net loan to deposit ratio		89.04 %			89.16 %			83.39 %
Full time equivalent employees		189			180			168
BALANCE SHEET- AVERAGES
Total assets		1,569,615			1,480,234			1,529,439			1,540,440			1,434,232
Total portfolio loans		1,190,626			1,120,353			1,038,215			1,159,686			974,498
Investment securities		245,335			251,213			333,135			247,390			331,842
Total deposits		1,317,817			1,244,569			1,299,069			1,292,182			1,220,197
Shareholders equity, net		187,713			175,101			167,268			184,966			149,919

Consolidated Balance Sheet (unaudited)	December 31, 2025				September 30, 2025				December 31, 2024
(in thousands)
ASSETS
Cash and due from banks	$	24,333			$	38,391			$	43,905
Interest bearing deposits in banks		73,934				19,895				19,510
CDs in other banks		1,489				1,491				1,723
Investment securities		240,997				248,282				322,186
Loans held for sale		—				23,457				—
Construction & land development		23,118				17,358				26,522
Residential RE 1-4 family		41,899				20,362				16,846
Commercial real estate		746,245				709,889				669,285
Agriculture		96,129				103,977				90,017
Commercial and industrial		288,723				269,904				267,948
Consumer and other		310				434				461
Portfolio loans		1,196,424				1,121,924				1,071,079
Deferred fees & discounts		(4,108	)			(3,329	)			(4,200	)
Allowance for credit losses		(17,180	)			(15,302	)			(11,834	)
Loans, net		1,175,136				1,103,293				1,055,045
Non-marketable equity investments		9,970				9,971				8,891
Cash value of life insurance		12,798				12,693				12,402
Other real estate owned		—				978				—
Accrued interest and other assets		42,865				40,782				40,466
Total assets	$	1,581,522			$	1,499,233			$	1,504,128
LIABILITIES AND EQUITY
Non-interest bearing deposits	$	786,249			$	758,237			$	828,508
Interest checking		115,168				77,034				62,034
Savings		47,665				48,211				55,219
Money market		220,492				204,575				212,322
Certificates of deposits		174,075				170,204				126,294
Total deposits		1,343,649				1,258,261				1,284,377
Short-term borrowings		—				7,000				—
Long-term debt		38,153				38,125				38,007
Other liabilities		14,925				16,423				13,352
Total liabilities		1,396,727				1,319,809				1,335,736
Common stock		25,529				25,245				38,436
Retained earnings		171,722				168,508				148,138
Accumulated other comprehensive loss		(12,456	)			(14,329	)			(18,182	)
Shareholders' equity		184,795				179,424				168,392
Total liabilities and shareholders' equity	$	1,581,522			$	1,499,233			$	1,504,128

Consolidated Income Statement (unaudited)	Quarter ended:											Year to date:
(in thousands)	December 31, 2025				September 30, 2025			December 31, 2024				December 31, 2025				December 31, 2024
INTEREST INCOME:
Loan interest income	$	19,619			$	19,090		$	18,131			$	75,359			$	66,828
Investment income		2,289				2,398			3,631				11,165				14,828
Int. on fed funds & CDs in other banks		352				176			504				1,372				1,460
Dividends from non-marketable equity		160				365			137				798				847
Total interest income		22,420				22,029			22,403				88,694				83,963
INTEREST EXPENSE:
Int. on deposits		3,756				3,518			3,115				13,452				11,717
Int. on short-term borrowings		1				6			12				165				346
Int. on long-term debt		581				451			464				1,935				1,858
Total interest expense		4,338				3,975			3,591				15,552				13,921
Net interest income		18,082				18,054			18,812				73,142				70,042
PROVISION FOR CREDIT LOSSES		3,932				687			1,671				8,941				3,103
Net interest income after provision		14,150				17,367			17,141				64,201				66,939
NON-INTEREST INCOME:
Total deposit fee income		822				812			856				3,337				3,337
Debit / credit card interchange income		217				223			196				847				732
Merchant services income		2,645				3,210			7,562				20,328				25,268
Gain on sale of loans		1,160				361			929				3,228				2,526
Loss on sale of investments		(6	)			—			(482	)			(248	)			(1,299	)
Other operating income		415				832			374				2,019				1,384
Total non-interest income		5,253				5,438			9,435				29,511				31,948
NON-INTEREST EXPENSE:
Salaries & employee benefits		7,433				7,667			5,177				31,158				24,952
Occupancy expense		471				458			411				1,634				1,606
Merchant services operating expense		1,603				1,580			3,149				9,244				10,661
Professional fees		1,365				1,204			1,178				4,397				2,981
Data & technology expense		1,601				1,510			1,204				5,912				4,511
Other operating expense		2,259				1,854			2,151				8,895				7,281
Total non-interest expense		14,732				14,273			13,270				61,240				51,992
Income before provision for income tax		4,671				8,532			13,306				32,472				46,895
PROVISION FOR INCOME TAXES		1,458				2,296			3,588				8,889				12,748
Net income	$	3,213			$	6,236		$	9,718			$	23,583			$	34,147

ASSET QUALITY	December 31, 2025				September 30, 2025				December 31, 2024
(in thousands)
Delinquent accruing loans 30-60 days	$	4,329			$	6,210			$	4,886
Delinquent accruing loans 60-90 days		314				355				2,449
Delinquent accruing loans 90+ days		45				966				987
Total delinquent accruing loans	$	4,688			$	7,531			$	8,322
Loans on non-accrual	$	27,756			$	26,949			$	9,894
Other real estate owned		—				978				—
Nonperforming assets	$	27,756			$	27,927			$	9,894
Delinquent 30-60 / Total Loans		0.36	%			0.55	%			0.46	%
Delinquent 60-90 / Total Loans		0.03	%			0.03	%			0.23	%
Delinquent 90+ / Total Loans		—	%			0.09	%			0.09	%
Delinquent Loans / Total Loans		0.39	%			0.67	%			0.78	%
Non-accrual / Total Loans		2.32	%			2.40	%			0.92	%
Nonperforming assets to total assets		1.76	%			1.86	%			0.66	%
Year-to-date charge-off activity
Charge-offs	$	3,334			$	1,388			$	1,287
Recoveries		338				45				35
Net charge-offs (recoveries)	$	2,996			$	1,343			$	1,252
Annualized net loan losses to average loans		0.25	%			0.16	%			0.12	%
CREDIT LOSS RESERVE RATIOS:
Allowance for credit losses	$	17,180			$	15,302			$	11,834
Total loans	$	1,196,424			$	1,121,924			$	1,071,079
Purchased govt. guaranteed loans	$	14,398			$	14,970			$	16,323
Originated govt. guaranteed loans	$	44,753			$	42,641			$	42,737
ACL / Total loans		1.44	%			1.36	%			1.10	%
ACL / Loans less 100% govt. gte. loans (purchased)		1.45	%			1.38	%			1.12	%
ACL / Loans less all govt. guaranteed loans		1.51	%			1.44	%			1.17	%
ACL / Total assets		1.09	%			1.02	%			0.79	%

SELECT FINANCIAL TREND INFORMATION	For the Quarter Ended:
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
BALANCE SHEET- PERIOD END
Total assets	$	1,581,522		$	1,499,233		$	1,473,927		$	1,560,376		$	1,504,128
Loans held for sale		—			23,457			—			—			—
Loans held for investment		1,196,424			1,121,924			1,091,964			1,092,441			1,071,079
Investment securities		240,997			248,282			254,177			313,826			322,186
Non-interest bearing deposits		786,249			758,237			759,300			825,404			828,508
Interest bearing deposits		557,400			500,024			475,348			494,977			455,869
Total deposits		1,343,649			1,258,261			1,234,648			1,320,381			1,284,377
Short-term borrowings		—			7,000			16,000			10,000			—
Long-term debt		38,153			38,125			38,086			38,046			38,007
Total equity		197,251			193,753			191,773			191,928			186,574
Accumulated other comprehensive loss		(12,456	)		(14,329	)		(17,865	)		(17,217	)		(18,182	)
Shareholders' equity		184,795			179,424			173,908			174,711			168,392
QUARTERLY INCOME STATEMENT
Interest income	$	22,420		$	22,029		$	21,971		$	22,274		$	22,403
Interest expense		4,338			3,975			3,865			3,373			3,591
Net interest income		18,082			18,054			18,106			18,901			18,812
Non-interest income		5,253			5,438			9,243			9,575			9,435
Gross revenue		23,335			23,492			27,349			28,476			28,247
Provision for credit losses		3,932			687			3,157			1,164			1,671
Non-interest expense		14,732			14,273			15,768			16,467			13,270
Net income before tax		4,671			8,532			8,424			10,845			13,306
Tax provision		1,458			2,296			2,388			2,747			3,588
Net income after tax		3,213			6,236			6,036			8,098			9,718
BALANCE SHEET- AVERAGE BALANCE
Total assets	$	1,569,615		$	1,480,234		$	1,525,601		$	1,531,573		$	1,529,439
Loans held for sale		292			1,190			—			—			—
Loans held for investment		1,190,626			1,120,353			1,112,380			1,076,848			1,038,215
Investment securities		245,335			251,213			289,127			325,699			333,135
Non-interest bearing deposits		785,452			751,139			812,753			850,426			838,748
Interest bearing deposits		532,365			493,430			468,604			450,124			460,321
Total deposits		1,317,817			1,244,569			1,281,357			1,300,550			1,299,069
Short-term borrowings		—			446			11,110			2,856			951
Long-term debt		38,153			38,107			38,068			38,028			37,989
Shareholders' equity		187,713			175,101			176,074			174,410			167,268

Contact:

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

FAQ

What were FFB Bancorp (FFBB) Q4 2025 earnings and EPS?

FFB reported Q4 2025 net income of $3.21M, or $1.07 per diluted share.

How did FFB Bancorp's full-year 2025 net income compare to 2024 (FFBB)?

FY2025 net income was $23.58M ($7.66 per diluted share) versus $34.15M in 2024.

What capital actions did FFB Bancorp (FFBB) announce on Jan 26, 2026?

The company authorized redemption of $28.3M subordinated debt on Feb 15, 2026, and a buyback plan up to $15.0M beginning Jan 30, 2026.

Why did FFB Bancorp's merchant services revenue fall in Q4 2025 (FFBB)?

Merchant services revenue declined due to planned ISO partner exits during 2025 and lower FFB Payments volumes and repricing.

What happened to FFB Bancorp's net interest margin and why (FFBB)?

NIM decreased to 4.86% in Q4 2025, driven by lower yield on earning assets and higher funding costs from increased wholesale funding.

How did provisions and credit costs change for FFB Bancorp in Q4 2025 (FFBB)?

Provision expense rose to $3.93M in Q4 2025, an increase of 472% from the prior quarter.