FFB Bancorp Announces Second Quarter 2026 Results:

Rhea-AI Summary

FFB Bancorp (OTCQX: FFBB) reported unaudited Q2 2026 net income of $5.48 million, or $1.88 per diluted share, up from $4.59 million ($1.53) in Q1 2026 and down from $6.04 million ($1.94) in Q2 2025. For the first half of 2026, net income was $10.06 million versus $14.13 million a year earlier.

Loans rose 4% sequentially and 15% year over year to $1.26 billion, deposits grew 3% and 12% to $1.38 billion, and total assets reached $1.62 billion. Operating revenue was $24.05 million, up 5% quarter over quarter but down 12% year over year, with net interest margin at 4.71%. The company repurchased 154,344 shares for $13.23 million under a $15 million buyback and ended the quarter with tangible common equity of 11.30% and the bank’s total risk-based capital ratio at 16.83%.

Positive

• Net income $5.48m in Q2 2026, up from $4.59m in Q1
• Loan portfolio $1.26b, up 4% QoQ and 15% YoY
• Total deposits $1.38b, up 3% QoQ and 12% YoY
• Share repurchases $13.23m, 154,344 shares, about 6.77% of equity
• Non-interest expense down 6% QoQ and 5% YoY to $14.96m
• Merchant services net revenue up 32% QoQ after expenses

Negative

• Operating revenue down 12% YoY to $24.05m despite 5% QoQ growth
• Net interest margin 4.71%, down 18 bps QoQ and 38 bps YoY
• Merchant services income down 56% YoY to $2.91m
• Provision for credit losses $1.54m, up from $776k in Q1 2026
• Efficiency ratio 62.20%, worse than 57.15% a year earlier
• Six‑month net income $10.06m, below $14.13m in first half 2025

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FRESNO, Calif., July 21, 2026 (GLOBE NEWSWIRE) -- FFB Bancorp (the “Company”) (OTCQX: FFBB), the parent company of FFB Bank (the “Bank”), today reported net income of $5.48 million, or $1.88 per diluted share, for the second quarter of 2026, compared to $4.59 million, or $1.53 per diluted share, for the first quarter of 2026, and $6.04 million, or $1.94 per diluted share, for the second quarter of 2025.

For the six months ended June 30, 2026, net income was $10.06 million, or $3.40 per diluted share, compared to $14.13 million, or $4.50 per diluted share, for the same period in 2025. All results are unaudited.

Second Quarter 2026 Summary: As of, or for the quarter ended June 30, 2026, compared to the quarters ended March 31, 2026, and June 30, 2025, respectively:

• Total portfolio of loans increased 4% to $1.26 billion from the previous quarter and increased 15% when compared to the same quarter for the prior year.
• Total deposits increased 3% to $1.38 billion from the previous quarter and increased 12% when compared to the same quarter of the prior year.
• Total assets increased 3% to $1.62 billion from the previous quarter and increased 10% when compared to the same quarter of the prior year.
• Shareholder equity remained stable at $182.78 million from the previous quarter's $182.84 million and increased 5% when compared to the same quarter for the prior year.
• Book value per common share increased 3% to $63.80, from $61.85 in the previous quarter, and increased 12% from $56.87 the same quarter of the prior year.
• Operating revenue (net interest income, before the provision for credit losses, plus non-interest income) increased 5% to $24.05 million from the previous quarter and decreased 12% when compared to the same quarter of the prior year.
• Net interest margin decreased 18 basis points to 4.71% from the previous quarter and decreased 38 basis points when compared to the same quarter of the prior year.
• Provision for credit loss expense increased to $1.54 million from $776,000 in the previous quarter and decreased 51% from $3.16 million the same quarter of the prior year.
• Return on average equity (“ROAE”) was 11.99%.
• Return on average assets (“ROAA”) was 1.35%.
• The Company’s tangible common equity ratio was 11.30%, while the Bank’s regulatory leverage capital ratio was 12.20%, and the total risk-based capital ratio was 16.83% at June 30, 2026.
  
  

“Our second quarter results highlight the momentum we continue to see across the franchise, with strong growth in loans, deposits, and total assets despite a challenging operating environment," said Steve Miller, President & CEO. "Importantly, our year to date 5.37% loan growth was achieved while also selling more than $94 million of loans, underscoring the strength of our production capabilities and customer relationships. As we continue to scale our technology-enabled operating model, expand our funding base, and deepen client relationships, we believe we are well positioned to drive sustainable earnings growth and create long-term shareholder value."

"During the quarter we've continued to make progress on the matters outlined in our consent order, although ultimate compliance will be determined by our regulators. We are confident we can find resolution with these items going forward."

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 June 30, 2026, the Company had repurchased 154,344 shares, at an average price of $85.69, totaling $13.23 million. This represented approximately 6.77% of total shareholders' equity at June 30, 2026. During the second quarter of 2026 the Company repurchased 91,577 shares, at an average price of $85.63, totaling $7.84 million. These purchases represent approximately 3.97% of total shareholders' equity at June 30, 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 June 30, 2026:

Operating revenue, consisting of net interest income before the provision for credit losses and non-interest income, increased 5% to $24.05 million for the second quarter of 2026, compared to $22.91 million for the first quarter of 2026, and decreased 12% compared to $27.35 million for the second quarter a year ago. The quarter over quarter increase in operating revenue for the second quarter of 2026 was primarily the result of increases in loan and investment interest income, gain on sale of loans, and merchant services income, partially offset by an increase in interest expense. The decrease from the second quarter a year ago was primarily the result of a decrease in non-interest income, specifically the decrease in merchant services income.

Net interest income, before the provision for credit losses, increased $256,000 to $18.08 million for the second quarter of 2026, from $17.82 million recorded in the last quarter, and decreased $27,000 when compared to $18.11 million recorded in the same quarter a year ago. The Company’s net interest margin (“NIM”) decreased 18 basis points to 4.71% for the second quarter of 2026, compared to 4.89% for the prior quarter, and decreased by 38 basis points from 5.09% for the second quarter of 2025. “NIM declined during the quarter as funding costs continued to rise and due to the recognition of $423,000 in nonrecurring interest reversals related to loans migrating to non-accrual. The interest income reversals reduced second quarter NIM by 11bps. Excluding those nonrecurring reversals, underlying earning asset yields remained relatively stable. Looking ahead, our priorities are increasing core deposits, reducing wholesale funding dependence, and realizing the benefits of recent loan growth, which positions margin performance to improve over time," said Bhavneet Gill, EVP & Chief Financial Officer. "

The yield on earning assets was 6.00% for the second quarter of 2026, compared to 6.11% for the previous quarter, and 6.18% for the second quarter a year ago. The cost to fund earning assets increased to 1.28% for the second quarter of 2026 compared to 1.22% for the previous quarter, and 1.09% for the same quarter a year earlier. The increase in the cost to fund earnings assets was primarily the result of a continued reliance on wholesale funding due to the bank achieving strong loan production over the last few quarters but lagging its planned core deposit growth. Wholesale funding carried a weighted average rate of 3.95% and 4.01% for the second quarter of 2026 and first quarter of 2026, 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 $5.97 million for the second quarter of 2026, compared to $5.09 million for the previous quarter, and $9.24 million for the second quarter of 2025. The increase in non-interest income, compared to the first quarter of 2026, was primarily driven by an increase in merchant services income and gain on sale of loans revenue. Merchant services income increased 16% to $2.91 million when compared to the previous quarter as processing volumes increased. There was a $1.37 million gain on the sale of loans during the second quarter of 2026, compared to a gain on the sale of loans of $941,000 in the previous quarter, and a gain on the sale of loans of $1.45 million during the second quarter 2025. The gain on the sale of loans during the quarter was primarily the result of $6.02 million in SBA, $60.71 million in multifamily, and $5.94 million in USDA loan sales that were completed during the quarter. These sales contributed $376,000, $421,000, and $355,000 in gain respectively.

Merchant services revenue increased 16% to $2.91 million when compared to the first quarter of 2026 and decreased 56% from $6.61 million when compared to the second quarter of 2025. The decrease over prior year was attributed to planned ISO partner exits, a reduction in ISO partner sponsorship volumes, and the reduction in FFB Payments revenue due to pricing competition. The increase in merchant services revenue over the prior quarter was primarily driven by increased processing volume from our remaining ISO partners who are now showing improved sales momentum.

Merchant ISO Processing Volumes (in thousands)
Source	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025
ISO Partner Sponsorship	$	2,877,437	$	2,477,113	$	2,773,101	$	3,099,287	$	5,347,695
FFB Payments- Sub-ISO Merchants		22,165		28,520		21,679		19,023		20,766
FFB Payments- Direct Merchants		34,368		19,587		26,347		28,573		71,746
Total volume	$	2,933,970	$	2,525,220	$	2,821,127	$	3,146,883	$	5,440,207

Merchant ISO Processing Revenues (in thousands)
Source of Revenue	Q2 2026		Q1 2026			Q4 2025			Q3 2025			Q2 2025
Net Revenue*:
ISO Partner Sponsorship	$	1,332	$	1,188		$	1,339		$	1,937		$	2,654
Gross Revenue:
FFB Payments- Sub-ISO Merchants		793		684			726			633			727
FFB Payments- Direct Merchants		780		624			580			640			3,228
		1,573		1,308			1,306			1,273			3,955
Gross Expense:
FFB Payments- Sub-ISO Merchants		689		724			883			780			708
FFB Payments- Direct Merchants		657		593			720			801			2,179
		1,346		1,317			1,603			1,581			2,887
Net Revenue:
FFB Payments- Sub-ISO Merchants		104		(40	)		(157	)		(147	)		19
FFB Payments- Direct Merchants		123		31			(140	)		(161	)		1,049
FFB Payments Net Revenue		227		(9	)		(297	)		(308	)		1,068
Net Merchant Services Income:	$	1,559	$	1,179		$	1,042		$	1,629		$	3,722

*ISO Partner 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 second quarter of 2026, net of merchant services operating expense, increased 32% when compared to the first quarter of 2026.

Total deposit fee income increased 10% to $1.00 million for the second quarter of 2026 from the $912,000 recorded in the previous quarter and increased 18% from the $854,000 recorded in the second quarter of 2025. The increase in the current quarter is primarily driven by $153,000 in revenue generated from our new FX platform launched in 2025.

Non-interest expense decreased 6% to $14.96 million for the second quarter of 2026, compared to $15.98 million from the previous quarter, and decreased 5%, compared to the $15.77 million recorded for the second quarter 2025. The decrease on a year-over-year comparison was driven by decreases in merchant services operating expense. Compared to the first quarter of 2026, the decrease in non-interest expense was attributed to decreases in salaries and employee benefit expense and other operating expenses, partially offset by an increase in professional fees.

Salaries and employee benefits increased 4% to $8.34 million for the second quarter of 2026, compared to $8.00 million for the second 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 191 at June 30, 2026, compared to 181 full-time employees a year earlier. Total salaries and employee benefits decreased 7% from $9.01 million in the previous quarter. The quarterly decrease in salaries and employee benefits expense was primarily due to a $506,000 reduction in payroll tax expense from payout of annual bonuses in the first quarter.

Occupancy and equipment expenses increased 37% from a year ago, representing 3% of non-interest expense, and decreased 10% from the previous quarter. These increases year-over-year are the result of additional rent and other expenses related to office expansion. During the quarter expenses related to furniture and other equipment decreased. Merchant operating expense totaled $1.35 million for the second quarter of 2026, compared to $2.89 million for the second quarter of 2025 and $1.32 million for the previous quarter. The decrease in merchant operating expense, compared to the second 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 22% to $1.23 million for the second quarter of 2026, compared to $1.01 million for the second quarter 2025. Total professional fees increased 20% from $1.03 million in the previous quarter. "Current quarter professional fees included increased audit fees and consulting fees, partially offset by a reduction in legal fees. The increase in consulting and other professional fees is primarily driven by new product and service development the Bank is planning to launch to support our long-term strategy," noted Gill.

Data and technology expenses increased 5% to $1.62 million for the second quarter of 2026, compared to $1.53 million for the second quarter 2025. Data and technology expenses decreased 6% from $1.73 million in the previous quarter. The increase in data and technology expense year over year is primarily due to new products and services and enhancements to the Company's AML/CFT, compliance, and merchant services programs. “Our strategy continues to be focused on maximizing existing systems while selectively deploying AI and automation to improve productivity and avoid unnecessary headcount growth,” said Miller. “The decreased cost in the current quarter is the result of 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 2% or $36,000 to $1.95 million from a year earlier and decreased $413,000 from the previous quarter. The quarterly decrease resulted from a recovery of $120,000 in previously recorded operating losses and a $320,000 decrease in director fee expense.

The efficiency ratio was 62.20% for the second quarter of 2026, compared to 57.15% for the same quarter a year ago, and 69.89% for the previous quarter, which is primarily the result of changes in other operating expenses. This ratio can also fluctuate period-over-period based on changes in merchant services' gross revenues and associated expenses. In addition to the primary efficiency ratio, the Company also calculates an adjusted efficiency ratio, a non-GAAP measure, where merchant services' gross expense is netted against merchant services' revenue in non-interest income. This expense would traditionally be included in non-interest expense. The adjusted efficiency ratio was 59.96% for the second quarter of 2026, compared to 52.14% for the same quarter a year ago, and 68.05% 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.

Six months ended June 30, 2026:

For the six months ended June 30, 2026, operating revenue decreased 16% to $46.97 million, compared to $55.83 million for the same period in 2025. For the six months ended June 30, 2026, net interest income before the provision for credit losses decreased 3% to $35.90 million, compared to $37.01 million for the same period in 2025. These decreases in revenue are attributed to increases in interest bearing liabilities and cost of funds, though partially offset by the growth in the loan portfolio. For the six months ended June 30, 2026, the yield on earning assets was 6.05% compared to 6.24% for the same period in 2025, while the cost to fund earning assets was 1.25% for the six months ended June 30, 2026, compared to 1.02% for the same period in 2025.

For the six months ended June 30, 2026, non-interest income decreased 41% to $11.07 million compared to $18.82 million for the same period in 2025. The year-over-year decrease in non-interest income is primarily attributed to the decrease of merchant services income; the result of strategic partner exits that occurred in 2025. This decrease was partially offset by increases in the gains recorded on the sale of loans and other operating income.

For the six months ended June 30, 2026, operating expenses decreased 4% to $30.94 million from $32.24 million for the same period in 2025. Salaries and employee benefits expense increased 8% to $17.35 million as a result of the increase in FTE. Other operating expenses decreased 10% to $4.31 million due to lower marketing and operating losses. There was a 56% decrease in merchant services operating expenses, driven by the decrease in processing volumes, to $2.66 million, which represents 9% of total operating expenses for the six months ended June 30, 2026.

For the six months ended June 30, 2026, the efficiency ratio was 65.95%, compared to 57.49% for the same period ended June 30, 2025. The adjusted efficiency ratio was 63.90%, compared to 52.34% for the same period ended June 30, 2025.

Balance Sheet Review

Total assets increased 10% to $1.62 billion at June 30, 2026, compared to $1.47 billion at June 30, 2025, and increased 3% compared to $1.57 billion at March 31, 2026.

The total loan portfolio increased 15%, or $168.74 million, to $1.26 billion, compared to $1.09 billion at June 30, 2025, and increased 4% from the $1.21 billion reported at March 31, 2026. "We're encouraged by 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, "In the first half of 2026 we approved total commitments of $226.63 million 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 continue to right-size the funding side to maximize our NIM for the remainder of the year."

Commercial real estate loans increased 6% year-over-year to $724.17 million, representing 57% of total loans at June 30, 2026. The CRE portfolio includes $61.98 million in short-term bridge loans for transitional projects of multifamily 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 170% from a year ago to $34.49 million, representing 3% of total loans, while residential RE 1-4 family loans totaled $42.81 million, or 3% of loans, at June 30, 2026, compared to $17.07 million one year ago.

The commercial and industrial (C&I) portfolio increased 16% to $300.53 million, at June 30, 2026, compared to $260.08 million a year earlier, and increased 3% from $291.74 million at March 31, 2026. C&I loans represented 24% of total loans at June 30, 2026.

Agriculture loans of $116.96 million represented 9% of the loan portfolio at June 30, 2026. At June 30, 2026, the SBA, USDA, and other government agencies guaranteed loans totaled $62.99 million, or 5% of the loan portfolio.

Investment securities totaled $260.91 million at June 30, 2026, compared to $254.18 million a year earlier, and increased $7.96 million from $252.96 million at March 31, 2026. At June 30, 2026, the Company had a net unrealized loss position on its investment securities portfolio of $17.99 million, compared to $25.41 million a year earlier, and $20.58 million at March 31, 2026. The Company’s investment securities portfolio had an effective duration of 6.15 years at June 30, 2026, compared to 6.26 years at June 30, 2025, and 6.53 years at March 31, 2026. "At the end of the second quarter, we acquired the remaining investment associated with our $10.0 million subordinated debt at approximately a 9% discount to par value," noted Gill. "We currently expect to redeem the debt at par during the third quarter of 2026, which will result in a gain on the investment while also eliminating the associated debt obligation and reducing future interest expense."

Total deposits increased 12%, or $149.94 million, to $1.38 billion at June 30, 2026, compared to $1.23 billion from a year earlier, and increased 3% from $1.34 billion when compared to March 31, 2026. Non-interest bearing demand deposits decreased 4% to $726.64 million at June 30, 2026, compared to $759.30 million at June 30, 2025, and decreased 2% from $740.01 million at March 31, 2026 as a result of a shift in deposit balances migrating to interest bearing categories. Non-interest bearing demand deposits represented 52% of total deposits at June 30, 2026. Certificates of deposits increased 2%, or $2.67 million, during the quarter. Wholesale deposits, which primarily consist of brokered CDs and ICS one-way buy deposits, totaled $156.75 million at June 30, 2026, compared to $103.94 million from a year earlier, and $143.25 million at March 31, 2026. 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 June 30, 2026 are $71.97 million from ISO partners for merchant reserves, $11.88 million from ISO partners for settlement, and $5.27 million in ISO partner operating accounts, totaling $89.11 million. These deposits represent 12% of non-interest bearing deposits and 6% of total deposits. At June 30, 2025 there was $75.83 million from ISO partners for merchant reserves, $45.24 million from ISO partners for settlement, and $11.61 million in ISO partner operating accounts, totaling $132.68 million or 18% of non-interest bearing deposits and 11% of total deposits. These decreases were the result of strategic partner exits completed during 2025.

The Company has continued its regional loan production office ("LPO") expansion during 2026 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 $83.75 million in loan commitments, an increase of $32.15 million over the previous quarter, with average utilization of 46%. This business line anticipates growing corresponding deposit reserves to an average of 30% of the loan balances.

We organize our loan and deposit operations into three geographic regions in California. The regions are represented by two regional heads in the Central Valley, one in Northern California, and two in Southern California. Loan and deposit totals by region or business line had the following balances as of June 30, 2026:

Balances by Region or Business Line as of June 30, 2026 (in thousands)
	Loans				Deposits
Central California	$	792,642		Central California	$	956,631
Northern California		23,139		Northern California		39,848
Southern California		106,656		Southern California		126,608
Wholesale Multifamily		211,703		Wholesale Funding		159,033
SBA		126,562		Merchant Services		102,466
Total	$	1,260,702		Total	$	1,384,586

There were $25.00 million in short-term borrowings at June 30, 2026 and March 31, 2026, and $16.00 million at June 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 June 30, 2026:

Liquidity Source (in thousands)	June 30, 2026		March 31, 2026
Cash and cash equivalents	$	47,457	$	42,974
Unpledged investment securities, fair value		23,231		99,789
FHLB advance capacity		352,774		311,409
Federal Reserve discount window capacity		148,288		149,466
Correspondent bank unsecured lines of credit		71,500		71,500
	$	643,250	$	675,138

The total primary and secondary liquidity of $643.25 million at June 30, 2026 represents a decrease of $31.89 million in primary and secondary liquidity quarter-over-quarter. This decrease was primarily driven by sales of multifamily loans that were previously pledged to FHLB as secondary liquidity, partially offset by the pledging of previously unpledged securities to FHLB.

Shareholders’ equity increased 5% to $182.78 million at June 30, 2026, compared to $173.91 million from a year ago, and remained consistent with the $182.84 million reported at March 31, 2026. Book value per common share increased 12% to $63.80, at June 30, 2026, compared to $56.87 at June 30, 2025, and increased 3% from $61.85 at March 31, 2026. The tangible common equity ratio was 11.30% at June 30, 2026, compared to 11.80% a year earlier, and 11.62% at March 31, 2026. Book value has continued to improve 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 $199.34 million at quarter end excluding the unrealized loss. The regulatory leverage capital ratio was 12.20% for the current quarter, while the total risk-based capital ratio was 16.83%, exceeding regulatory minimums to be considered well-capitalized.

Asset Quality

Nonperforming assets, which consist of nonperforming loans and other real estate owned, increased 27.44% to $44.24 million, or 2.74% of total assets, at June 30, 2026, compared to $34.71 million, or 2.21% of total assets, from the previous quarter. "Although nonperforming assets increased during the quarter, the change was driven primarily by two C&I relationships that are 75% SBA guaranteed. Management is actively working with both borrowers to establish structured repayment plans, enhance collectability, and obtain additional collateral where appropriate, while pursuing all available resolution strategies to maximize recovery. Of the $44.24 million in nonperforming loans, $21.89 million is covered by SBA guarantees, while 53.32% of the remaining $22.35 million potential exposure is secured by real estate," added Miller, "We continue to actively evaluate all resolution strategies and are focused on achieving the best available outcome. Since establishing our Wholesale Multifamily business line eight years ago, we have experienced only one problem loan relationship which we believe can be resolved appropriately in the near term." Total delinquent loans decreased to $2.97 million at June 30, 2026, compared to $6.67 million at March 31, 2026.

Past due accruing loans 30-60 days were $2.68 million at June 30, 2026, compared to $6.31 million at March 31, 2026, and $1.80 million at June 30, 2025. There were $59,000 in past due accruing loans from 60-90 days at June 30, 2026, compared to $315,000 at March 31, 2026, and $1.02 million in past due accruing loans from 60-90 days a year earlier. Past due accruing loans 90+ days at quarter end totaled $231,000 at June 30, 2026, compared to $45,000 at March 31, 2026, and $46,000 at June 30, 2025.

Of the $2.97 million in past due accruing loans at June 30, 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	Delinquent accruing loans 30-59 days		Delinquent accruing loans 60-89 days		Delinquent accruing loans 90+ days		Total		Govt. Guaranteed Amount		Unguaranteed Amount
(in thousands)
Loan type
Commercial and industrial	$	2,195	$	59	$	45	$	2,299	$	45	$	2,254
Commercial real estate:
CRE owner-occupied		480		—		—		480		432		48
Agriculture		—		—		186		186		186		—
	$	2,675	$	59	$	231	$	2,965	$	663	$	2,302

Non-Accrual Loan Summary	Total		Govt. Guaranteed Amount		Unguaranteed Amount		Individual Allowance (ACL)
(in thousands)
Loan Type
Commercial and industrial	$	28,352	$	20,199	$	8,153	$	5,316
Commercial real estate:
Multifamily		10,000		—		10,000		2,895
CRE owner-occupied		5,885		1,691		4,194		83
	$	44,237	$	21,890	$	22,347	$	8,294

There was a $1.54 million provision for credit losses in the second quarter of 2026, compared to $3.16 million provision for credit losses in the second quarter a year ago, and a $776,000 provision for credit losses recorded in the first quarter of 2026. The provision recorded during the second quarter of 2026 is primarily the result of the individual allowances associated with two commercial and industrial relationships migrating to non-accrual.

The ratio of allowance for credit losses to total loans was 1.40% at June 30, 2026 and March 31, 2026. 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 several quarters. The ratio of allowance for credit losses to the total, non-guaranteed, loan portfolio was 1.47%, as of June 30, 2026, and the total non-guaranteed exposure of the SBA loan portfolio was $48.89 million, consisting of 244 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 $1,280,000 during the current quarter, compared to $691,000 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 market conditions over the last several years. In addition to making leadership changes in our SBA business, we have also adjusted the internal credit management process and tailored underwriting standards in several verticals based on postmortems from our SBA losses.”

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 in 2025 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 management's 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:
	June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
BALANCE SHEET- ENDING BALANCES:
Total assets	$	1,617,413			$	1,573,506			$	1,473,927
Total portfolio loans		1,260,702				1,210,334				1,091,964
Investment securities		260,911				252,955				254,177
Total deposits		1,384,586				1,340,945				1,234,648
Shareholders equity, net		182,784				182,842				173,908
INCOME STATEMENT DATA
Operating revenue		24,053				22,914				27,349				46,967				55,825
Operating expense		14,961				15,976				15,768				30,937				32,235
Pre-tax, pre-provision income		9,092				6,938				11,581				16,030				23,590
Net income after tax		5,477				4,585				6,036				10,062				14,134
SHARE DATA
Basic earnings per share	$	1.89			$	1.53			$	1.95			$	3.41			$	4.51
Fully diluted EPS	$	1.88			$	1.53			$	1.94			$	3.40			$	4.50
Book value per common share	$	63.80			$	61.85			$	56.87
Common shares outstanding		2,864,926				2,956,265				3,057,874
Fully diluted shares		2,912,210				2,999,826				3,104,067				2,955,783				3,139,346
FFBB - Stock price	$	85.75			$	85.65			$	78.00
RATIOS
Return on average assets		1.35	%			1.19	%			1.59	%			1.28	%			1.86	%
Return on average equity		11.99	%			9.93	%			13.75	%			10.96	%			16.26	%
Efficiency ratio		62.20	%			69.89	%			57.15	%			65.95	%			57.49	%
Adjusted efficiency ratio		59.96	%			68.05	%			52.14	%			63.90	%			52.34	%
Yield on earning assets		6.00	%			6.11	%			6.18	%			6.05	%			6.24	%
Yield on investment securities		3.72	%			3.48	%			4.13	%			3.60	%			4.25	%
Yield on portfolio loans		6.56	%			6.55	%			6.70	%			6.56	%			6.75	%
Cost to fund earning assets		1.28	%			1.22	%			1.09	%			1.25	%			1.02	%
Cost of interest-bearing deposits		2.90	%			2.83	%			2.81	%			2.87	%			2.71	%
Net Interest Margin		4.71	%			4.89	%			5.09	%			4.80	%			5.22	%
Equity to assets		11.30	%			11.62	%			11.80	%
Net loan to deposit ratio		89.54	%			90.09	%			86.91	%
Full time equivalent employees		191				199				181
BALANCE SHEET- AVERAGES
Total assets		1,624,113				1,557,814				1,525,601				1,591,146				1,528,570
Total portfolio loans		1,252,046				1,215,806				1,112,380				1,234,026				1,094,712
Investment securities		252,879				240,666				289,127				246,806				307,312
Total deposits		1,410,161				1,328,707				1,281,357				1,369,659				1,290,901
Shareholders equity, net		183,148				187,270				176,074				185,198				175,247

Consolidated Balance Sheet (unaudited)	June 30, 2026				March 31, 2026				June 30, 2025
(in thousands)
ASSETS
Cash and due from banks	$	31,566			$	35,993			$	55,897
Interest bearing deposits in banks		15,891				6,981				21,347
CDs in other banks		—				—				1,722
Investment securities		260,911				252,955				254,177
Loans held for sale		—				18,328				—
Construction & land development		34,486				29,718				12,784
Residential RE 1-4 family		42,811				40,515				17,066
Commercial real estate		724,165				726,774				683,743
Agriculture		116,963				100,490				109,926
Commercial and industrial		300,527				291,739				260,082
Business manager		41,075				20,353				6,728
Consumer and other		675				745				1,635
Portfolio loans		1,260,702				1,210,334				1,091,964
Deferred fees & costs		(3,349	)			(3,582	)			(3,541	)
Allowance for credit losses		(17,640	)			(16,999	)			(15,330	)
Loans, net		1,239,713				1,189,753				1,073,093
Non-marketable equity investments		11,198				10,419				9,809
Cash value of life insurance		13,005				12,900				12,594
Other real estate owned		—				—				949
Accrued interest and other assets		45,129				46,177				44,339
Total assets	$	1,617,413			$	1,573,506			$	1,473,927
LIABILITIES AND EQUITY
Non-interest bearing deposits	$	726,636			$	740,014			$	759,300
Interest checking		135,611				135,236				75,815
Savings		50,181				49,727				49,657
Money market		299,648				246,128				183,071
Certificates of deposits		172,510				169,840				166,805
Total deposits		1,384,586				1,340,945				1,234,648
Short-term borrowings		25,000				25,000				16,000
Long-term debt		9,901				9,896				38,086
Other liabilities		15,142				14,823				11,285
Total liabilities		1,434,629				1,390,664				1,300,019
Common stock		37,535				38,235				29,501
Retained earnings		157,900				159,079				162,272
Accumulated other comprehensive loss		(12,651	)			(14,472	)			(17,865	)
Shareholders' equity		182,784				182,842				173,908
Total liabilities and shareholders' equity	$	1,617,413			$	1,573,506			$	1,473,927

Consolidated Income Statement (unaudited)	Quarter ended:										Year to date:
(in thousands)	June 30, 2026			March 31, 2026			June 30, 2025				June 30, 2026			June 30, 2025
INTEREST INCOME:
Loan interest income	$	20,477		$	19,644		$	18,582			$	40,121		$	36,651
Investment income		2,345			2,067			2,978				4,412			6,477
Int. on fed funds & CDs in other banks		79			205			270				284			844
Dividends from non-marketable equity		90			350			141				440			272
Total interest income		22,991			22,266			21,971				45,257			44,244
INTEREST EXPENSE:
Int. on deposits		4,765			4,068			3,288				8,833			6,178
Int. on short-term borrowings		35			24			126				59			158
Int. on long-term debt		112			351			451				463			902
Total interest expense		4,912			4,443			3,865				9,355			7,238
Net interest income		18,079			17,823			18,106				35,902			37,006
PROVISION FOR CREDIT LOSSES		1,541			776			3,157				2,317			4,321
Net interest income after provision		16,538			17,047			14,949				33,585			32,685
NON-INTEREST INCOME:
Total deposit fee income		1,004			912			854				1,916			1,703
Debit / credit card interchange income		198			178			215				376			407
Merchant services income		2,905			2,496			6,609				5,401			14,473
Gain on sale of loans		1,366			941			1,446				2,307			1,707
Gain (loss) on sale of investments		—			55			(243	)			55			(243	)
Other operating income		501			509			362				1,010			772
Total non-interest income		5,974			5,091			9,243				11,065			18,819
NON-INTEREST EXPENSE:
Salaries & employee benefits		8,336			9,010			8,002				17,346			16,058
Occupancy expense		483			535			352				1,018			705
Merchant services operating expense		1,346			1,317			2,887				2,663			6,060
Professional fees		1,230			1,027			1,009				2,257			1,828
Data & technology expense		1,618			1,726			1,534				3,344			2,801
Other operating expense		1,948			2,361			1,984				4,309			4,783
Total non-interest expense		14,961			15,976			15,768				30,937			32,235
Income before provision for income tax		7,551			6,162			8,424				13,713			19,269
PROVISION FOR INCOME TAXES		2,074			1,577			2,388				3,651			5,135
Net income	$	5,477		$	4,585		$	6,036			$	10,062		$	14,134

        

ASSET QUALITY	June 30, 2026				March 31, 2026				June 30, 2025
(in thousands)
Delinquent accruing loans 30-60 days	$	2,675			$	6,307			$	1,796
Delinquent accruing loans 60-90 days		59				315				1,020
Delinquent accruing loans 90+ days		231				45				46
Total delinquent accruing loans	$	2,965			$	6,667			$	2,862
Loans on non-accrual	$	44,237			$	34,713			$	26,285
Other real estate owned		—				—				949
Nonperforming assets	$	44,237			$	34,713			$	27,234
Delinquent 30-60 / Total Loans		0.21	%			0.52	%			0.16	%
Delinquent 60-90 / Total Loans		—	%			0.03	%			0.09	%
Delinquent 90+ / Total Loans		0.02	%			—	%			—	%
Delinquent Loans / Total Loans		0.24	%			0.55	%			0.26	%
Non-accrual / Total Loans		3.51	%			2.87	%			2.41	%
Nonperforming assets to total assets		2.74	%			2.21	%			1.85	%
Year-to-date charge-off activity
Charge-offs	$	1,998			$	702			$	772
Recoveries		27				11				—
Net charge-offs (recoveries)	$	1,971			$	691			$	772
Annualized net loan losses to average loans		0.32	%			0.23	%			0.14	%
CREDIT LOSS RESERVE RATIOS:
Allowance for credit losses	$	17,640			$	16,999			$	15,330
Total loans	$	1,260,702			$	1,210,334			$	1,091,964
Purchased govt. guaranteed loans	$	2,144			$	13,891			$	15,138
Originated govt. guaranteed loans	$	60,848			$	49,134			$	38,224
ACL / Total loans		1.40	%			1.40	%			1.40	%
ACL / Loans less 100% govt. gte. loans (purchased)		1.40	%			1.42	%			1.42	%
ACL / Loans less all govt. guaranteed loans		1.47	%			1.48	%			1.48	%
ACL / Total assets		1.09	%			1.08	%			1.04	%

SELECT FINANCIAL TREND INFORMATION	For the Quarter Ended:
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
BALANCE SHEET- PERIOD END
Total assets	$	1,617,413		$	1,573,506		$	1,581,522		$	1,499,233		$	1,473,927
Loans held for sale		—			18,328			—			23,457			—
Loans held for investment		1,260,702			1,210,334			1,196,424			1,121,924			1,091,964
Investment securities		260,911			252,955			240,997			248,282			254,177
Non-interest bearing deposits		726,636			740,014			786,249			758,237			759,300
Interest bearing deposits		657,950			600,931			557,400			500,024			475,348
Total deposits		1,384,586			1,340,945			1,343,649			1,258,261			1,234,648
Short-term borrowings		25,000			25,000			—			7,000			16,000
Long-term debt		9,901			9,896			38,153			38,125			38,086
Total equity		195,435			197,314			197,251			193,753			191,773
Accumulated other comprehensive loss		(12,651	)		(14,472	)		(12,456	)		(14,329	)		(17,865	)
Shareholders' equity		182,784			182,842			184,795			179,424			173,908
QUARTERLY INCOME STATEMENT
Interest income	$	22,991		$	22,266		$	22,420		$	22,029		$	21,971
Interest expense		4,912			4,443			4,338			3,975			3,865
Net interest income		18,079			17,823			18,082			18,054			18,106
Non-interest income		5,974			5,091			5,253			5,438			9,243
Gross revenue		24,053			22,914			23,335			23,492			27,349
Provision for credit losses		1,541			776			3,932			687			3,157
Non-interest expense		14,961			15,976			14,732			14,273			15,768
Net income before tax		7,551			6,162			4,671			8,532			8,424
Tax provision		2,074			1,577			1,458			2,296			2,388
Net income after tax		5,477			4,585			3,213			6,236			6,036
BALANCE SHEET- AVERAGE BALANCE
Total assets	$	1,624,113		$	1,557,814		$	1,569,615		$	1,480,234		$	1,525,601
Loans held for sale		24,214			315			292			1,190			—
Loans held for investment		1,252,046			1,215,806			1,190,626			1,120,353			1,112,380
Investment securities		252,879			240,666			245,335			251,213			289,127
Non-interest bearing deposits		751,008			745,288			785,452			751,139			812,753
Interest bearing deposits		659,153			583,419			532,365			493,430			468,604
Total deposits		1,410,161			1,328,707			1,317,817			1,244,569			1,281,357
Short-term borrowings		3,011			2,921			—			446			11,110
Long-term debt		9,899			23,397			38,153			38,107			38,068
Shareholders' equity		183,148			187,270			187,713			175,101			176,074

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

FAQ

How did FFB Bancorp (OTCQX: FFBB) perform financially in Q2 2026?

FFB Bancorp reported Q2 2026 net income of $5.48 million, or $1.88 per diluted share. According to FFB Bancorp, this increased from $4.59 million in Q1 2026 but declined from $6.04 million in Q2 2025, reflecting mixed quarterly and year-over-year comparisons.

What were FFB Bancorp’s loan and deposit growth figures in Q2 2026 (FFBB)?

FFB Bancorp’s loans grew 4% sequentially and 15% year over year, reaching $1.26 billion. According to FFB Bancorp, total deposits increased 3% quarter over quarter and 12% year over year to $1.38 billion, supporting balance sheet expansion and funding for loan growth.

How large is FFB Bancorp’s 2026 share repurchase program and what has been completed (FFBB)?

FFB Bancorp authorized a $15.0 million share repurchase program running through December 31, 2026. According to FFB Bancorp, by June 30, 2026 it had repurchased 154,344 shares for $13.23 million, including 91,577 shares in Q2, representing about 6.77% of shareholders’ equity.

What happened to FFB Bancorp’s net interest margin in Q2 2026 (FFBB)?

FFB Bancorp’s net interest margin was 4.71% in Q2 2026, down from 4.89% in Q1 and 5.09% a year earlier. According to FFB Bancorp, margin pressure reflected higher funding costs and $423,000 of nonrecurring interest reversals from loans moving to non-accrual status.

How did merchant services revenue change for FFB Bancorp in Q2 2026 (FFBB)?

Merchant services income reached $2.91 million in Q2 2026, up 16% from Q1 but down 56% year over year. According to FFB Bancorp, the annual decline reflects planned ISO partner exits, reduced sponsorship volumes, and pricing pressure on FFB Payments-related revenue streams.

What are FFB Bancorp’s key capital ratios as of June 30, 2026 (FFBB)?

FFB Bancorp reported a tangible common equity ratio of 11.30% at June 30, 2026. According to FFB Bancorp, the bank’s regulatory leverage capital ratio was 12.20% and its total risk-based capital ratio was 16.83%, indicating substantial capital strength.

What were FFB Bancorp’s returns on equity and assets in Q2 2026 (FFBB)?

FFB Bancorp delivered a Q2 2026 return on average equity of 11.99% and return on average assets of 1.35%. According to FFB Bancorp, these profitability metrics reflect higher quarterly earnings alongside growth in loans, deposits, and total assets during the period.