FRESNO, Calif., April 16, 2026 (GLOBE NEWSWIRE) -- FFB Bancorp (the "Company") (OTCQX: FFBB), the parent company of FFB Bank (the "Bank"), today reported net income of $4.59 million, or $1.53 per diluted share, for the first quarter of 2026, compared to $3.21 million, or $1.07 per diluted share, for the fourth quarter of 2025, and $8.10 million, or $2.55 per diluted share, for the first quarter of 2025. All results are unaudited.
First Quarter 2026 Summary: As of, or for the quarter ended March 31, 2026, compared to the quarters ended December 31, 2025, and March 31, 2025, respectively:
-- Total portfolio of loans increased 1% to $1.21 billion from the previous
quarter and increased 11% when compared to the same quarter for the prior
year.
-- Provision for credit loss expense decreased 80% to $776,000 from the
previous quarter and decreased 33% when compared to the same quarter of
the prior year.
-- Total deposits remained stable from the previous quarter at $1.34 billion
and increased 2% when compared to the same quarter of the prior year.
-- Net interest margin increased 5 basis points to 4.89% from the previous
quarter and decreased 46 basis points when compared to the same quarter
of the prior year.
-- Operating revenue (net interest income, before the provision for credit
losses, plus non-interest income) decreased 2% to $22.91 million from the
previous quarter and decreased 20% when compared to the same quarter of
the prior year.
-- Total assets decreased 1% to $1.57 billion from the previous quarter and
increased 1% when compared to the same quarter of the prior year.
-- Shareholder equity decreased 1% to $182.84 million from the previous
quarter and increased 5% when compared to the same quarter for the prior
year.
-- Redeemed in full $28.3 million principal amount of subordinated
debentures.
-- Book value per common share increased to $61.85, from $61.64 in the
previous quarter, and increased 11% from $55.52 the same quarter of the
prior year.
-- Return on average equity ("ROAE") was 9.93%.
-- Return on average assets ("ROAA") was 1.19%.
-- The Company's tangible common equity ratio was 11.62%, while the Bank's
regulatory leverage capital ratio was 12.73%, and the total risk-based
capital ratio was 17.27% at March 31, 2026.
"During the quarter, we struggled to match our core low-cost deposit growth to our strong loan production. Our key performance ratios remain well below our expectations and the team is focused on right sizing these key metrics over the coming quarters," said Steve Miller, President & CEO. "I am confident in our business model, which uses a light footprint supported by technology to deliver a high-touch relationship model. On my monthly visits to our regions, our core SMB customers and prospects still share that larger banks have abandoned this space or bank M&A is causing them to look for a new partner. We continue to listen to our customers by delivering new products. The successful launch of our FX payments product contributed incremental deposit fee revenue during the quarter and our new small business lending platform, currently in beta testing stage, has already generated $730,000 in new loan production. We expect this efficient loan product to be a great tool to support our client acquisition strategy for small business customers needing timely financing in the $100,000 - $250,000 range."
Update on Stock Repurchase Program:
On January 26, 2026, the Company announced that it had authorized a plan to utilize up to $15.0 million of capital to repurchase shares of the Company's common stock. As of March 31, 2026, the Company had repurchased 62,767 shares, at an average price of $85.78, totaling $5.38 million. This represented approximately 2.73% of total shareholders' equity at March 31, 2026.
Under the terms of the repurchase plan, the Company may repurchase shares of the Company's common stock from time to time, through December 31, 2026, in open market purchases or privately negotiated transactions. Repurchases under the plan may also be made pursuant to a trading plan under Securities and Exchange Commission Rule 10b5-1 under the Securities Exchange Act of 1934, which would permit shares to be repurchased by the Company when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The timing, manner, price and exact amount of any repurchases by the Company will be determined at the Company's discretion and depend on various factors including the performance of the Company's stock price, general market and economic conditions, applicable legal and regulatory requirements, availability of funds, and other relevant factors. Through December 31, 2026, the repurchase plan may be discontinued, suspended or restarted at any time.
Results of Operations
Quarter ended March 31, 2026:
Operating revenue, consisting of net interest income before the provision for credit losses and non-interest income, decreased 2% to $22.91 million for the first quarter of 2026, compared to $23.34 million for the fourth quarter of 2025, and decreased 20% compared to $28.48 million for the first quarter a year ago. The decrease in operating revenue for the first quarter of 2026 was primarily the result of a decrease in gain on sale of loans and investment income.
Net interest income, before the provision for credit losses, decreased $259,000 to $17.82 million for the first quarter of 2026, from $18.08 million recorded in the last quarter, and decreased 6% when compared to $18.90 million recorded in the same quarter a year ago. The Company's net interest margin ("NIM") increased 5 basis points to 4.89% for the first quarter of 2026, compared to 4.86% for the prior quarter, and decreased by 46 basis points from 5.35% for the first quarter of 2025. "NIM increased from the prior quarter primarily driven by the yield on earnings assets outpacing the rise in funding costs. The improvement was driven primarily by continued repricing and growth within the loan portfolio," said Bhavneet Gill, EVP & Chief Financial Officer.
The yield on earning assets was 6.11% for the first quarter of 2026, compared to 6.02% for the previous quarter, and 6.31% for the first quarter a year ago. The cost to fund earning assets increased to 1.22% for the first quarter of 2026 compared to 1.17% for the previous quarter, and 0.96% for the same quarter a year earlier. Included in interest expense for the quarter was $281,000 in long-term debt expense on subordinated debentures that were subsequently redeemed mid-quarter. The increase in the cost to fund earnings assets was primarily the result of an increased reliance on wholesale funding due to the bank achieving strong loan production over the last few quarters, but lagging behind its planned core deposit growth. Wholesale funding carried a weighted average rate of 4.01% and 4.02% for the first quarter of 2026 and fourth quarter of 2025, respectively. Management expects deposits for Bank customers and ISO partners to increase over the remainder of the year, which would allow a reduction in reliance on wholesale funding.
Total non-interest income was $5.09 million for the first quarter of 2026, compared to $5.25 million for the previous quarter, and $9.58 million for the first quarter of 2025. The decrease in non-interest income, compared to the fourth quarter of 2025, was primarily driven by a decrease in gain on sale of loans revenue. There was a $941,000 gain on the sale of loans during the first quarter of 2026, compared to a gain on the sale of loans of $1.16 million in the previous quarter, and a gain on the sale of loans of $261,000 during the first quarter 2025. There was a $55,000 gain on the sale of investments recorded during the first quarter of 2026, compared to a $6,000 loss recorded during the previous quarter. The gain on the sale of loans during the quarter was the result of $6.52 million in SBA loan sales and $15.25 million in multifamily loan sales that were completed during the quarter. These sales contributed $194,000 and $238,000 in gain respectively.
Merchant services revenue decreased 68% to $2.50 million for the first quarter of 2026, compared to $7.86 million from the first quarter of 2025. The decrease over prior year was attributed to planned ISO partner exits during 2025 and lower gross volume and revenue related to FFB Payments. Merchant services revenue decreased 6% from $2.65 million when compared to the fourth quarter of 2025, primarily as a result of the reduction in ISO partner sponsorship volumes and the reduction in FFB Payments revenue due to repricing.
Merchant ISO Processing Volumes (in thousands)
Source Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025
------------ ---------- ---------- ---------- ---------- ----------
ISO Partner
Sponsorship $2,477,113 $2,773,101 $3,099,287 $5,347,695 $5,007,998
FFB
Payments-
Sub-ISO
Merchants 28,520 21,679 19,023 20,766 21,551
FFB
Payments-
Direct
Merchants 19,587 26,347 28,573 71,746 97,095
--------- --------- --------- --------- ---------
Total
volume $2,525,220 $2,821,127 $3,146,883 $5,440,207 $5,126,644
========= ========= ========= ========= =========
Merchant ISO Processing Revenues (in thousands)
Source of Revenue Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025
----------------- ------- ------- ------- --------- ---------
Net Revenue*:
ISO Partner
Sponsorship $1,188 $1,339 $1,937 $ 2,654 $ 2,410
Gross Revenue:
FFB Payments-
Sub-ISO
Merchants 684 726 633 727 745
FFB Payments-
Direct
Merchants 624 580 640 3,228 4,709
----- ----- ----- ----- -----
1,308 1,306 1,273 3,955 5,454
----- ----- ----- ----- -----
Gross Expense:
FFB Payments-
Sub-ISO
Merchants 724 883 780 708 616
FFB Payments-
Direct
Merchants 593 720 801 2,179 2,558
----- ----- ----- ----- -----
1,317 1,603 1,581 2,887 3,174
----- ----- ----- ----- -----
Net Revenue:
FFB Payments-
Sub-ISO
Merchants (40) (157) (147) 19 129
FFB Payments-
Direct
Merchants 31 (140) (161) 1,049 2,151
----- ----- ----- ----- -----
FFB Payments Net
Revenue (9) (297) (308) 1,068 2,280
----- ----- ----- ----- -----
Net Merchant
Services
Income: $1,179 $1,042 $1,629 $ 3,722 $ 4,690
===== ===== ===== ===== =====
*ISO Partnership Sponsorship is recognized net of expense in Merchant Services Income. FFB Payments revenues are recognized on a gross basis in Merchant Services Income and Merchant Services expenses are recognized in Non-Interest Expense.
Overall, total merchant services revenue for the first quarter of 2026, net of merchant services operating expense, increased 13% when compared to the fourth quarter of 2025. The net loss reported within FFB payments- Sub-ISO Merchants, while improving, is the result of higher partnership fees paid.
Total deposit fee income increased 11% to $912,000 for the first quarter of 2026 from the $822,000 recorded in the previous quarter, and increased 7% from the $849,000 recorded in the first quarter of 2025. The increase in the current quarter is primarily driven by $88,000 in revenue generated from our new FX platform launched in 2025.
Non-interest expense increased 8% to $15.98 million for the first quarter of 2026, compared to $14.73 million from the previous quarter, and decreased 3%, compared to the $16.47 million recorded for the first quarter 2025. The decrease on a year-over-year comparison was driven by decrease in merchant services operating expense. Compared to the fourth quarter of 2025 the increase in non-interest expense was attributed to increases in salaries and employee benefit expense and in other operating expenses, partially offset by decrease in professional fees and merchant services operating expense.
Salaries and employee benefits increased 12% to $9.01 million for the first quarter of 2026, compared to $8.06 million for the first quarter 2025. The increase year-over-year was primarily the result of expense associated with the increase in full-time employees. Full-time employees increased to 199 at March 31, 2026, compared to 175 full-time employees a year earlier. Total salaries and employee benefits increased 21% from $7.43 million in the previous quarter. The quarterly increase in salaries and employee benefits expense was primarily driven by increases in salary expense of $851,000 from FTE growth and $576,000 in higher payroll tax expense from payout of annual bonuses. Included in salary and employee benefit expense for the first quarter of 2026 and fourth quarter of 2025 were non-recurring reductions of approximately $830,000 related to performance bonus and ESOP accruals.
Occupancy and equipment expenses increased 52% from a year ago, representing 3% of non-interest expense, and increased 14% from the previous quarter. These increases are the result of rent and other expenses related to office expansion. Merchant operating expense totaled $1.32 million for the first quarter of 2026, compared to $3.17 million for the first quarter of 2025 and $1.60 million for the previous quarter. The decrease in merchant operating expense, compared to the first quarter of 2025, is attributed to fluctuations in volume and revenue for the FFB Payments lines of business. Merchant operating expenses include interchange fees, chargebacks, partnership fees, and other card brand fees.
Professional fees, which consist of legal, audit, and consulting expenses, increased 26% to $1.03 million for the first quarter of 2026, compared to $818,000 for the first quarter 2025. Total professional fees decreased 25% from $1.37 million in the previous quarter. "Previous quarter professional fees included $321,000 in non-recurring consulting costs related to Consent Order remediation. These fees were tied to finalizing one of the heavier lifts in the required remediation. These fees also cover normal bank operations, legal costs, and new product and service development the bank is planning to launch to support our long-term strategy," noted Gill.
Data and technology expenses increased 36% to $1.73 million for the first quarter of 2026, compared to $1.27 million for the first quarter 2025. Data and technology expenses increased 8% from $1.60 million in the previous quarter. The increase in data and technology expense is primarily due to new products and services and enhancements to the Company's AML/CFT, compliance, and merchant services programs. "Our strategy is focused on maximizing existing systems while selectively deploying AI and automation to improve productivity and avoid unnecessary headcount growth," said Miller. "We are already seeing opportunities to eliminate or consolidate redundant platforms and automate key functions. Our priority is ensuring our teams are supported through these changes while driving higher--quality, more efficient outcomes."
Other operating expense decreased 16% or $438,000 to $2.36 million from a year earlier and increased $102,000 from the previous quarter. The quarterly increase was driven by increases in director fees, education expense, and travel expense, partially offset by a reduction in operating losses.
The efficiency ratio was 69.89% for the first quarter of 2026, compared to 57.83% for the same quarter a year ago, and 63.12% for the previous quarter, which is the result of increases in other operating expenses. This ratio can fluctuate period-over-period based on changes in merchant services' gross revenues and associated expenses. The Company also calculates an adjusted efficiency ratio, which is a non-GAAP measure, where the merchant services' gross expense, which is traditionally included in non-interest expense, is netted against merchant services' revenue in non-interest income. The adjusted efficiency ratio was 68.05% for the first quarter of 2026, compared to 52.54% for the same quarter a year ago, and 60.40% for the previous quarter. "We are making intentional investments in technology, talent, and products to position the Company for sustainable balance sheet growth and higher recurring revenue. While these actions impact the efficiency ratio in the near term, we expect operating leverage to improve as growth accelerates over the next several quarters, driving the efficiency ratio lower," said Miller.
Balance Sheet Review
Total assets increased 1% to $1.57 billion at March 31, 2026, compared to $1.56 billion at March 31, 2025, and decreased 1% compared to $1.58 billion at December 31, 2025.
The total loan portfolio increased 11%, or $117.89 million, to $1.21 billion, compared to $1.09 billion at March 31, 2025, and increased 1% from the $1.20 billion reported at December 31, 2025. "We're excited for the continued growth we've seen in the loan portfolio as this is attributed to the strong relationships we are able to build with new and existing clients," said Miller, "For the first quarter of 2026 and fourth quarter of 2025 total commitments approved were $90.91 million and $156.85 million, respectively, which we believe is a testament to our strong pipeline and the result of the efforts of our growing team. The team is confident in our loan pipeline development, and now we need to quickly right size the funding side to maximize our NIM for the remainder of the year."
Commercial real estate loans increased 4% year-over-year to $726.77 million, representing 60% of total loans at March 31, 2026. The CRE portfolio includes $76.13 million in short-term bridge loans for transitional projects of multi-family properties. The short-term bridge loans are conservatively underwritten with minimum DSCR and liquidity requirements.
The real estate construction and land development loan portfolio increased 135% from a year ago to $29.72 million, representing 2% of total loans, while residential RE 1-4 family loans totaled $40.52 million, or 3% of loans, at March 31, 2026, compared to $17.15 million one year ago.
The commercial and industrial (C&I) portfolio increased 20% to $312.09 million, at March 31, 2026, compared to $260.06 million a year earlier, and increased 8% from $288.72 million at December 31, 2025. C&I loans represented 26% of total loans at March 31, 2026.
Agriculture loans of $100.49 million represented 8% of the loan portfolio at March 31, 2026. At March 31, 2026, the SBA, USDA, and other government agencies guaranteed loans totaled $63.03 million, or 5% of the loan portfolio.
Investment securities totaled $252.96 million at March 31, 2026, compared to $313.83 million a year earlier, and increased $11.96 million from $241.00 million at December 31, 2025. At March 31, 2026, the Company had a net unrealized loss position on its investment securities portfolio of $20.58 million, compared to $24.50 million a year earlier, and $17.71 million at December 31, 2025. The Company's investment securities portfolio had an effective duration of 6.53 years at March 31, 2026, compared to 5.61 years at March 31, 2025, and 6.40 years at December 31, 2025.
Total deposits increased 2%, or $20.56 million, to $1.34 billion at March 31, 2026, compared to $1.32 billion from a year earlier, and remained consistent at $1.34 billion when compared to December 31, 2025. Non-interest bearing demand deposits decreased 10% to $740.01 million at March 31, 2026, compared to $825.40 million at March 31, 2025, and decreased $46.24 million from $786.25 million at December 31, 2025 as a result of a shift in deposit balances migrating to interest bearing categories. Non-interest bearing demand deposits represented 55% of total deposits at March 31, 2026. Certificates of deposits decreased 2%, or $4.24 million, during the quarter. Wholesale deposits, which primarily consist of brokered CDs and ICS one-way buy deposits, totaled $143.25 million at March 31, 2026, compared to $88.94 million from a year earlier, and $142.94 million at December 31, 2025. Management intends to reduce wholesale deposit reliance through growth in Bank core customers and the expansion of existing ISO partner relationships.
Included in total non-interest bearing deposits at March 31, 2026 are $72.23 million from ISO partners for merchant reserves, $11.82 million from ISO partners for settlement, and $14.65 million in ISO partner operating accounts, totaling $98.70 million. These deposits represent 13% of non-interest bearing deposits and 7% of total deposits. At March 31, 2025 there was $89.98 million from ISO partners for merchant reserves, $135.48 million from ISO partners for settlement, and $9.63 million in ISO partner operating accounts, totaling $235.09 million or 29% of non-interest bearing deposits and 18% of total deposits. These decreases were the result of strategic partner exits completed during 2025.
The Company has continued its regional expansion by adding a receivables financing team which utilizes a third party platform, Business Manager, to efficiently manage this unique business line. The Business Manager product line is led by a senior business leader and a support team acquired late in 2025. They have a nationwide approach while also supporting the core bank commercial lenders in cross-selling this product. To date the Bank has approved $51.60 million in loan commitments, with average utilization of 52%, while anticipating corresponding deposits reserves to grow on average to 30% of loan balances.
The regions are represented by two regional heads in the Central Valley, one in Northern California, and three in Southern California. Loan and deposit totals across these regions had the following balances as of March 31, 2026:
Balances by Region or Business Line as of March 31,
2026(in thousands)
Loans Deposits
---------------------- ---------- ------------------- ----------
Central California $ 748,456 Central California $ 966,822
Northern California 19,813 Northern California 38,159
Southern California 58,993 Southern California 90,304
Business Manager 12,183 Business Manager 1,978
Wholesale Multifamily 256,690 Wholesale Funding 143,387
SBA 114,199 Merchant Services 100,295
Total $1,210,334 Total $1,340,945
========= =========
There were $25.00 million in short-term borrowings at March 31, 2026, compared to no borrowings at December 31, 2025, and $10.00 million at March 31, 2025. The Company primarily utilizes FHLB advances and the Federal Reserve discount window for short-term borrowings. The following table summarizes the Company's primary and secondary sources of liquidity which were available at March 31, 2026:
Liquidity Source(in thousands) March 31, 2026 December 31, 2025 --------------------------------------- ---------------- ------------------- Cash and cash equivalents $ 42,974 $ 98,267 Unpledged investment securities, fair value 99,789 64,737 FHLB advance capacity 311,409 320,087 Federal Reserve discount window capacity 149,466 156,923 Correspondent bank unsecured lines of credit 71,500 71,500 ------------ --- -------------- $ 675,138 $ 711,514 ============ === ==============
The total primary and secondary liquidity of $675.14 million at March 31, 2026 represents a decrease of $36.38 million in primary and secondary liquidity quarter-over-quarter.
Shareholders' equity increased 5% to $182.84 million at March 31, 2026, compared to $174.71 million from a year ago, and decreased 1% from the $184.80 million reported at December 31, 2025. Book value per common share increased 11% to $61.85, at March 31, 2026, compared to $55.52 at March 31, 2025, and increased from $61.64 at December 31, 2025. The tangible common equity ratio was 11.62% at March 31, 2026, compared to 11.20% a year earlier, and 11.68% at December 31, 2025. Book value improved as a result of quarterly net income and a reduction in shares outstanding through share repurchases.
At the Bank level, unrealized losses and gains reflected in AOCI are not included in regulatory capital. As a result, Tier-1 capital at the Bank for regulatory purposes was $199.41 million at quarter end excluding the unrealized loss. The regulatory leverage capital ratio was 12.73% for the current quarter, while the total risk-based capital ratio was 17.27%, exceeding regulatory minimums to be considered well-capitalized.
Asset Quality
Nonperforming assets, which consist of nonperforming loans and other real estate owned, increased 25.06% to $34.71 million, or 2.21% of total assets, at March 31, 2026, compared to $27.76 million, or 1.76% of total assets, from the previous quarter. "Of the $34.71 million in nonperforming loans, $14.89 million is covered by SBA guarantees, while 60.69% of the remaining $19.83 million potential exposure is secured by real estate," added Miller, "We continue to actively evaluate resolution strategies, including addressing up to $10.00 million in nonperforming loans, which we expect to resolve in the near term." Total delinquent loans increased to $6.67 million at March 31, 2026, compared to $4.69 million at December 31, 2025.
Past due accruing loans 30-60 days were $6.31 million at March 31, 2026, compared to $4.33 million at December 31, 2025, and $17.53 million at March 31, 2025. There were $315,000 in past due accruing loans from 60-90 days at March 31, 2026, compared to $314,000 at December 31, 2025, and $1.54 million in past due accruing loans from 60-90 days a year earlier. Past due accruing loans 90+ days at quarter end totaled $45,000 at March 31, 2026, compared to $45,000 at December 31, 2025, and $46,000 at March 31, 2025.
Of the $6.67 million in past due accruing loans at March 31, 2026, $231,000 were purchased government guaranteed loans, which are guaranteed by the SBA for the full payment of the principal plus interest.
Delinquent Loan Purchased Govt.
Summary Organic Guaranteed Total
--------------- ----------------- ---------------
(in thousands)
Delinquent accruing
loans 30-59 days $ 6,307 $ -- $ 6,307
Delinquent accruing
loans 60-89 days 129 186 315
Delinquent accruing
loans 90+ days -- 45 45
-------------- ------------- --------------
Total delinquent
accruing loans $ 6,436 $ 231 $ 6,667
-------------- ------------- --------------
Non-Accrual Loan Purchased Govt.
Summary Organic Guaranteed Total
--------------- ----------------- ---------------
(in thousands)
---------------------
Loans on non-accrual $ 34,713 $ -- $ 34,713
Non-accrual loans
with SBA guarantees 14,885 -- 14,885
-------------- ------------- --------------
Net Bank exposure to
non-accrual loans $ 19,828 $ -- $ 19,828
-------------- ------------- --------------
There was a $776,000 provision for credit losses in the first quarter of 2026, compared to $1.16 million provision for credit losses in the first quarter a year ago, and a $3.93 million provision for credit losses recorded in the fourth quarter of 2025. The provision recorded during the first quarter of 2026 is primarily the result of $691,000 in net charge-offs.
The ratio of allowance for credit losses to total loans was 1.40% at March 31, 2026, compared to 1.18% a year earlier and 1.44% at December 31, 2025. The Company individually evaluates non-accrual loans in the allowance for credit losses. The increase in non-accrual loans has resulted in carrying a higher level of reserve over the last few quarters. The ratio of allowance for credit losses to the total, non-guaranteed, loan portfolio was 1.48%, as of March 31, 2026, and the total non-guaranteed exposure of the SBA loan portfolio was $48.01 million, consisting of 247 loans.
"As we execute our strategic plan, which includes process improvement, we have centralized collections and special asset management into one unit to better manage under-performing assets," added Miller. "We incurred net charge-offs of $691,000 during the current quarter, compared to $1,653,000 in net charge-offs in the previous quarter. The charge-offs recognized in the quarter were primarily attributed to several unsecured small business loans and unguaranteed portions of SBA loans that had been previously fully reserved. We have consistently expressed our concerns about the SBA portfolio performance due to current market conditions, and we haven't seen any positive news to alter our views for 2026. In addition to adjusting the internal credit management process, we have also tailored underwriting based on postmortems from our SBA losses."
"The loan portfolio increased 11% from a year ago with commercial real estate ("CRE") loans representing 60% of the total loan portfolio. Within the CRE portfolio, there are $45.37 million in loans for CRE office which is represented in the table below," said Miller, "As the majority of the Company's CRE office exposure is concentrated in the Central Valley of California, we are experiencing less volatility than traditional city center CRE markets. Our credit metrics remain strong as we continue to maintain conservative underwriting standards."
(in thousands) CRE Office Exposure of March 31, 2026
Region Owner-Occupied Non-Owner Occupied Total
--------------------- --------------------- -------------------- --------
Central Valley $ 21,343 $ 13,020 $ 34,363
Southern California 2,232 345 2,577
Other California 4,161 3,758 7,919
--- ---------------- ---- -------------- -------
Total California 27,736 17,123 44,859
Out of California -- 513 513
--- ---------------- ---- -------------- -------
Total CRE
Office $ 27,736 $ 17,636 $ 45,372
--- ---------------- ---- -------------- -------
About FFB Bancorp
FFB Bancorp, formerly Communities First Financial Corporation, a bank holding company established in 2014, is the parent company of FFB Bank, founded in 2005 in Fresno, California. As a leading SBA Lender in California's Central Valley and one of the few direct acquiring banks in the United States, FFB Bank offers clients a range of personal and business checking accounts, payment processes, and loan programs. Among the Bank's awards and accomplishments, it was ranked #1 on American Banker's list of the Top 20 Publicly Traded Banks under $2 Billion in Assets for 2024. The Bank was also ranked by S&P Global as the #34 best performing US community bank under $3 billion in assets. The Company has also received recognition as part of the OTCQX Best 50 Companies for 2019, 2023, and 2024. For additional information, you can visit the Company's website at www.ffb.bank or by contacting a representative at 559-439-0200.
Forward Looking Statements
This earnings release may contain forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. The forward-looking statements are based on managements' expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Company's ability to effectively execute its business plans; the impact of the Consent Order on our financial condition and results of operations; changes in general economic and financial market conditions; changes in interest rates, and in particular, actions taken by the Federal Reserve to try and control inflation; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Company's business; international developments; the tariff strategy of the Trump administration, and its related effects on the agriculture industry and connected businesses in the Central Valley; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company undertakes no obligation to release publicly the results of any revisions to the forward-looking statements included herein to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Member FDIC
Select Financial
Information and
Ratios For the Quarter Ended:
---------------------------------------------
March 31, December 31,
2026 2025 March 31, 2025
------------- ------------- ---------------
BALANCE SHEET-
ENDING BALANCES:
Total assets $1,573,506 $1,581,522 $1,560,376
Total portfolio
loans 1,210,334 1,196,424 1,092,441
Investment
securities 252,955 240,997 313,826
Total deposits 1,340,945 1,343,649 1,320,381
Shareholders
equity, net 182,842 184,795 174,711
INCOME STATEMENT
DATA
Operating revenue 22,914 23,335 28,476
Operating expense 15,976 14,732 16,467
------------- ------------- -------------
Pre-tax,
pre-provision
income 6,938 8,603 12,009
Net income after
tax 4,585 3,213 8,098
SHARE DATA
Basic earnings
per share $1.53 $1.07 $2.56
Fully diluted EPS $1.53 $1.07 $2.55
Book value per
common share $61.85 $61.64 $55.52
Common shares
outstanding 2,956,265 2,998,124 3,146,727
Fully diluted
shares 2,999,826 3,012,668 3,175,178
FFBB - Stock
price $85.65 $85.00 $76.50
RATIOS
Return on average
assets 1.19% 0.81% 2.14%
Return on average
equity 9.93% 6.79% 18.83%
Efficiency ratio 69.89% 63.12% 57.83%
Adjusted
efficiency
ratio 68.05% 60.40% 52.54%
Yield on earning
assets 6.11% 6.02% 6.31%
Yield on
investment
securities 3.48% 3.70% 4.36%
Yield on
portfolio loans 6.55% 6.54% 6.81%
Cost to fund
earning assets 1.22% 1.17% 0.96%
Cost of
interest-bearing
deposits 2.83% 2.80% 2.60%
Net Interest
Margin 4.89% 4.86% 5.35%
Equity to assets 11.62% 11.68% 11.20%
Net loan to
deposit ratio 90.26% 89.04% 82.74%
Full time
equivalent
employees 199 189 175
BALANCE SHEET-
AVERAGES
Total assets 1,557,814 1,569,615 1,531,573
Total portfolio
loans 1,215,806 1,190,626 1,076,848
Investment
securities 240,666 245,335 325,699
Total deposits 1,328,707 1,317,817 1,300,550
Shareholders
equity, net 187,270 187,713 174,410
Consolidated
Balance Sheet
(unaudited)
December 31,
(in thousands) March 31, 2026 2025 March 31, 2025
-------------------
ASSETS
Cash and due from
banks $ 35,993 $ 24,333 $ 83,033
Interest bearing
deposits in banks 6,981 73,934 20,038
CDs in other banks -- 1,489 1,724
Investment
securities 252,955 240,997 313,826
Loans held for sale 18,328 -- --
Construction & land
development 29,718 23,118 12,649
Residential RE 1-4
family 40,515 41,899 17,146
Commercial real
estate 726,774 746,245 696,625
Agriculture 100,490 96,129 104,616
Commercial and
industrial 312,092 288,723 260,063
Consumer and other 745 310 1,342
------------------- --------- --------- ----------
Portfolio loans 1,210,334 1,196,424 1,092,441
Deferred fees &
costs (3,582) (4,108) (3,946)
Allowance for
credit losses (16,999) (17,180) (12,913)
------------------- --------- --------- ----------
Loans, net 1,189,753 1,175,136 1,075,582
Non-marketable
equity
investments 10,419 9,970 8,890
Cash value of life
insurance 12,900 12,798 12,496
Accrued interest
and other assets 46,177 42,865 44,787
------------------- --------- --------- ----------
Total assets $ 1,573,506 $ 1,581,522 $ 1,560,376
=================== ========= ========= ==========
LIABILITIES AND
EQUITY
Non-interest
bearing deposits $ 740,014 $ 786,249 $ 825,404
Interest checking 135,236 115,168 109,555
Savings 49,727 47,665 54,686
Money market 246,128 220,492 218,940
Certificates of
deposits 169,840 174,075 111,796
------------------- --------- --------- ----------
Total deposits 1,340,945 1,343,649 1,320,381
Short-term
borrowings 25,000 -- 10,000
Long-term debt 9,896 38,153 38,046
Other liabilities 14,823 14,925 17,238
------------------- --------- --------- ----------
Total
liabilities 1,390,664 1,396,727 1,385,665
Common stock 38,235 25,529 35,693
Retained earnings 159,079 171,722 156,235
Accumulated other
comprehensive
loss (14,472) (12,456) (17,217)
------------------- --------- --------- ----------
Shareholders'
equity 182,842 184,795 174,711
------------------- --------- --------- ----------
Total
liabilities
and
shareholders'
equity $ 1,573,506 $ 1,581,522 $ 1,560,376
=================== ========= ========= ==========
Consolidated
Income Statement
(unaudited) Quarter ended:
------------------------------------------------------
(in thousands) March 31, 2026 December 31, 2025 March 31, 2025
------------------ --------------- -------------------- ---------------
INTEREST INCOME:
Loan interest
income $ 19,644 $ 19,619 $ 18,069
Investment
income 2,067 2,289 3,499
Int. on fed
funds & CDs in
other banks 205 352 574
Dividends from
non-marketable
equity 350 160 132
----------- --- ----------- -----------
Total interest
income 22,266 22,420 22,274
----------- --- ----------- -----------
INTEREST EXPENSE:
Int. on
deposits 4,068 3,756 2,891
Int. on
short-term
borrowings 24 1 31
Int. on
long-term
debt 351 581 451
----------- --- ----------- -----------
Total interest
expense 4,443 4,338 3,373
----------- --- ----------- -----------
Net interest
income 17,823 18,082 18,901
PROVISION FOR
CREDIT LOSSES 776 3,932 1,164
----------- --- ----------- -----------
Net interest
income after
provision 17,047 14,150 17,737
----------- --- ----------- -----------
NON-INTEREST
INCOME:
Total deposit fee
income 912 822 849
Debit / credit
card interchange
income 178 217 191
Merchant services
income 2,496 2,645 7,864
Gain on sale of
loans 941 1,160 261
Gain (loss) on
sale of
investments 55 (6) --
Other operating
income 509 415 410
----------- --- ----------- -----------
Total
non-interest
income 5,091 5,253 9,575
----------- --- ----------- -----------
NON-INTEREST
EXPENSE:
Salaries &
employee
benefits 9,010 7,433 8,056
Occupancy expense 535 471 353
Merchant services
operating
expense 1,317 1,603 3,174
Professional fees 1,027 1,365 818
Data & technology
expense 1,726 1,601 1,267
Other operating
expense 2,361 2,259 2,799
----------- --- ----------- -----------
Total
non-interest
expense 15,976 14,732 16,467
----------- --- ----------- -----------
Income before
provision for
income tax 6,162 4,671 10,845
PROVISION FOR
INCOME TAXES 1,577 1,458 2,747
----------- --- ----------- -----------
Net income $ 4,585 $ 3,213 $ 8,098
=========== === =========== ===========
ASSET QUALITY
(in thousands) March 31, 2026 December 31, 2025 March 31, 2025
---------------
Delinquent
accruing loans
30-60 days $ 6,307 $ 4,329 $ 17,533
Delinquent
accruing loans
60-90 days 315 314 1,537
Delinquent
accruing loans
90+ days 45 45 46
---------- --------- ----------
Total
delinquent
accruing
loans $ 6,667 $ 4,688 $ 19,116
---------- --------- ----------
Loans on
non-accrual $ 34,713 $ 27,756 $ 15,366
Other real
estate owned -- -- --
---------- --------- ----------
Nonperforming
assets $ 34,713 $ 27,756 $ 15,366
---------- --------- ----------
Delinquent
30-60 / Total
Loans 0.52% 0.36% 1.60%
Delinquent
60-90 / Total
Loans 0.03% 0.03% 0.14%
Delinquent 90+
/ Total Loans --% --% --%
Delinquent
Loans / Total
Loans 0.55% 0.39% 1.75%
Non-accrual /
Total Loans 2.87% 2.32% 1.41%
Nonperforming
assets to
total assets 2.21% 1.76% 0.98%
Year-to-date
charge-off
activity
Charge-offs $ 702 $ 3,334 $ 167
Recoveries 11 339 --
---------- --------- ----------
Net charge-offs
(recoveries) $ 691 $ 2,995 $ 167
---------- --------- ----------
Annualized net
loan losses to
average loans 0.23% 0.25% 0.06%
CREDIT LOSS
RESERVE
RATIOS:
Allowance for
credit losses $ 16,999 $ 17,180 $ 12,913
Total loans $ 1,210,334 $ 1,196,424 $ 1,092,441
Purchased govt.
guaranteed
loans $ 13,891 $ 14,398 $ 16,081
Originated
govt.
guaranteed
loans $ 49,134 $ 44,753 $ 45,285
ACL / Total
loans 1.40% 1.44% 1.18%
ACL / Loans
less 100%
govt. gte.
loans
(purchased) 1.42% 1.45% 1.20%
ACL / Loans
less all govt.
guaranteed
loans 1.48% 1.51% 1.25%
ACL / Total
assets 1.08% 1.09% 0.83%
For the Quarter Ended:
SELECT
FINANCIAL
TREND March 31, December September June 30, March 31,
INFORMATION 2026 31, 2025 30, 2025 2025 2025
----------- ----------- ----------- ----------- -------------
BALANCE SHEET-
PERIOD END
Total assets $1,573,506 $1,581,522 $1,499,233 $1,473,927 $1,560,376
Loans held for
sale 18,328 -- 23,457 -- --
Loans held for
investment 1,210,334 1,196,424 1,121,924 1,091,964 1,092,441
Investment
securities 252,955 240,997 248,282 254,177 313,826
Non-interest
bearing
deposits 740,014 786,249 758,237 759,300 825,404
Interest
bearing
deposits 600,931 557,400 500,024 475,348 494,977
--------- --------- --------- --------- ---------
Total deposits 1,340,945 1,343,649 1,258,261 1,234,648 1,320,381
Short-term
borrowings 25,000 -- 7,000 16,000 10,000
Long-term debt 9,896 38,153 38,125 38,086 38,046
Total equity 197,314 197,251 193,753 191,773 191,928
Accumulated
other
comprehensive
loss (14,472) (12,456) (14,329) (17,865) (17,217)
--------- --------- --------- --------- ---------
Shareholders'
equity 182,842 184,795 179,424 173,908 174,711
QUARTERLY
INCOME
STATEMENT
Interest
income $ 22,266 $ 22,420 $ 22,029 $ 21,971 $ 22,274
Interest
expense 4,443 4,338 3,975 3,865 3,373
--------- --------- --------- --------- ---------
Net interest
income 17,823 18,082 18,054 18,106 18,901
Non-interest
income 5,091 5,253 5,438 9,243 9,575
--------- --------- --------- --------- ---------
Gross revenue 22,914 23,335 23,492 27,349 28,476
Provision for
credit
losses 776 3,932 687 3,157 1,164
Non-interest
expense 15,976 14,732 14,273 15,768 16,467
--------- --------- --------- --------- ---------
Net income
before tax 6,162 4,671 8,532 8,424 10,845
Tax provision 1,577 1,458 2,296 2,388 2,747
--------- --------- --------- --------- ---------
Net income
after tax 4,585 3,213 6,236 6,036 8,098
========= ========= ========= ========= =========
BALANCE SHEET-
AVERAGE
BALANCE
Total assets $1,557,814 $1,569,615 $1,480,234 $1,525,601 $1,531,573
Loans held for
sale 315 292 1,190 -- --
Loans held for
investment 1,215,806 1,190,626 1,120,353 1,112,380 1,076,848
Investment
securities 240,666 245,335 251,213 289,127 325,699
Non-interest
bearing
deposits 745,288 785,452 751,139 812,753 850,426
Interest
bearing
deposits 583,419 532,365 493,430 468,604 450,124
--------- --------- --------- --------- ---------
Total deposits 1,328,707 1,317,817 1,244,569 1,281,357 1,300,550
Short-term
borrowings 2,921 -- 446 11,110 2,856
Long-term debt 23,397 38,153 38,107 38,068 38,028
Shareholders'
equity 187,270 187,713 175,101 176,074 174,410
Contact: Steve Miller - President & CEO
Bhavneet Gill -- EVP & CFO
(559) 439-0200
(END) Dow Jones Newswires
April 16, 2026 17:16 ET (21:16 GMT)