CBB Bancorp, Inc. Reports First Quarter 2025 Financial Results

Apr 25 2025 14:00 BST

LOS ANGELES--(BUSINESS WIRE)--Apr. 25, 2025-- CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank, doing business as “CBB Bank” (the "Bank"), announced today net income of $4.5 million for the first quarter 2025, or $0.42 per diluted share compared to $5.7 million in the fourth quarter 2024, or $0.54 per diluted share.

OVERALL RESULTS

Net income for the first quarter 2025 decreased from the previous quarter primarily on lower net interest income, higher provision expense, and higher noninterest expenses.

The return on average assets for the first quarter 2025 was 0.99% compared to 1.27% for the fourth quarter 2024 and 1.32% for the first quarter 2024. The return on average equity for the first quarter 2025 was 7.01% compared to 8.98% for the fourth quarter 2024 and 9.57% for the first quarter 2024.

The net interest margin for the first quarter 2025 was 3.38% compared to 3.55% for the fourth quarter 2024 and 3.77% for the first quarter 2024. The efficiency ratio for the first quarter 2025 was 60.41% compared to 56.66% for the fourth quarter 2024 and 54.68% for the first quarter 2024.

Richard Koh, President and CEO, said, "I am honored to be the new President and Chief Executive Officer of CBB Bank and the CBB Bancorp and share our first quarter 2025 earnings results. Since I joined the Bank, I witnessed firsthand the dedication and hard work of our team.” He continued, “Our continued solid performance reflects the trust and support of all our valued stakeholders. We are committed to driving sustainable growth and innovation, ensuring we continue to deliver exceptional value to our customers. Together, we will navigate the challenges ahead and achieve our strategic goals in a safe and sound manner.”

INCOME STATEMENT

Net Interest Income

Net interest income for the first quarter 2025 was $14.8 million, a decrease of $825 thousand or 5.3%, quarter over quarter and a decrease of $985 thousand or 6.2%, compared to the first quarter 2024 due to moderate decrease in average yield on loans.

Net Interest Margin

The net interest margin for the first quarter 2025 was 3.38% compared to 3.55% for the fourth quarter 2024 and 3.77% for the first quarter 2024. The cost of funds for the first quarter 2025 was 3.34% compared to 3.45% for the fourth quarter 2024 and 3.48% for the first quarter 2024.

Provision for Credit Losses

Total provision for credit losses of $500 thousand was recorded for the first quarter 2025. This amount was comprised of on-balance sheet provision of $430 thousand and off-balance sheet provision of $70 thousand.

No provision for credit loss was recorded for the fourth quarter 2024. Provision for credit loss of a net $400 thousand was recorded for the first quarter 2024. This amount was comprised of provision for credit loss of $743 thousand offset by a $343 thousand reduction in provision for off-balance-sheet financial instruments.

Noninterest Income

Noninterest income for the first quarter 2025 was $2.1 million, a decrease of $94 thousand compared to $2.2 million for the fourth quarter 2024 and decreased by $445 thousand compared to $2.6 million for the first quarter 2024. The Bank realized $92 thousand loss on sale of OREO in the first quarter 2025.

Noninterest Expenses

Noninterest expenses for the first quarter 2025 were $10.2 million compared to $9.9 million for the fourth quarter 2024 and $10.0 million for the first quarter 2024. Noninterest expenses increased $293 thousand quarter over quarter on higher personnel, insurance, and professional fee expenses, offset by lower marketing and other expenses.

Please refer to the financial tables in this press release for additional information and trends.

Income Taxes

The Company’s effective tax rate for the first quarter 2025 was 28.3% compared to 27.9% for the fourth quarter 2024 and 28.4% for the first quarter 2024.

BALANCE SHEET

Investment Securities

Investment securities were $61.5 million at March 31, 2025, a decrease of $675 thousand or 1.1% from December 31, 2024, and an increase of $2.4 million or 4.0% from March 31, 2024.

Loans Receivable

Loans receivable, including loans held-for-sale, at March 31, 2025, was $1.45 billion, an increase of $12.6 million or 0.9% from December 31, 2024, and an increase of $58.0 million or 4.2% from March 31, 2024.

Allowance for Credit Losses and Asset Quality

The Allowance for Credit Losses (“ACL”) at March 31, 2025 was $14.9 million which was 1.18% of loans held-for-investment compared to $16.0 million or 1.29% of loans held-for-investment at December 31, 2024. At March 31, 2024, ACL was $16.0 million, or 1.34% of total loans held-for-investment.

Total nonperforming assets at March 31, 2025, were $11.7 million compared to $12.1 million at December 31, 2024, and $4.4 million at March 31, 2024. The ACL coverage to nonperforming assets was over 127% at March 31, 2025.

SBA Loans Held-for-Sale

Total SBA loans held-for-sale at March 31, 2025 were $194.5 million compared to $ 198.4 million at December 31, 2024 and $198.2 million at March 31, 2024.

The Bank sold $19.8 million in SBA loans with an average premium of 8.1% in the first quarter 2025 compared to the sale of $17.2 million with an average premium of 9.2% in the fourth quarter 2024. The Bank sold $28.2 million of SBA loans with an average premium of 6.8% in the first quarter 2024.

Deposits

Total deposits were $1.48 billion at March 31, 2025, down $3.4 million or 0.2% from December 31, 2024, but up $116.3 million or 8.5% from March 31, 2024.

Borrowings

The Bank maintains $50.0 million in Federal Home Loan Bank advances, and there was no change from the previous quarter.

Capital

Stockholders’ equity was $258.5 million at March 31, 2025, which increased $3.5 million or 1.4%, quarter over quarter. Tangible book value per share at March 31, 2025, was $24.18, an increase of $0.33, or 1.4%, quarter over quarter.

The following are the Company’s and the Bank’s regulatory capital ratios at March 31, 2025.

The Common Equity Tier 1 Risk-Based Capital Ratios at March 31, 2025 were 19.10% and 19.05% for the Company and the Bank, respectively. Total Risk-Based Capital Ratios were 20.23% and 20.18% for the Company and the Bank, respectively. Bank’s Leverage Ratios were 14.04% and 14.00% for the Company and the Bank, respectively. The Bank is considered “Well Capitalized” under the applicable regulatory capital rules.

About CBB Bancorp, Inc.:

CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to-medium-sized businesses and does business as “CBB Bank.” As of March 31, 2025, the Bank had twelve full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas, Honolulu, Hawaii, and Fort Lee, New Jersey. Three SBA regional offices in Los Angeles, Dallas, and Bergen Counties, and loan production offices in Georgia, Washington, and New York. For additional information, please go to www.cbb-bank.com under the tab “About Us” and select “Investor Relations” to see the 1Q 2025 Overview.

FORWARD-LOOKING STATEMENTS:

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CBB Bancorp, Inc. (the “Company”) intends that such forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described herein are necessarily subject to risks and uncertainties that may cause actual results to differ materially and adversely from those described herein. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause actual results to differ materially from those presented, either expressed or implied, in this news release include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; 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 publicly revise these forward-looking statements to reflect subsequent events or circumstances, except to the extent required by law.


STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1
(Dollars in thousands, except per share amounts)

	Three Months Ended
	March 31,			December 31,			$			%		March 31,			$			%
		2024			2024		Change			Change			2024		Change			Change

Interest income	$	27,467		$	28,769		$	(1,302	)	(4.5	%)	$	28,463		$	(996	)	(3.5	%)
Interest expense		12,644			13,121			(477	)	(3.6	%)		12,655			(11	)	(0.1	%)
Net interest income		14,823			15,648			(825	)	(5.3	%)		15,808			(985	)	(6.2	%)

Provision for credit losses		500			-			500		100.0	%		400			100		25.0	%
Net interest income after provision for credit losses		14,323			15,648			(1,325	)	(8.5	%)		15,408			(1,085	)	(7.0	%)

Gain on sale of loans		1,021			1,013			8		0.8	%		1,489			(468	)	418.2	%
Gain (loss) on sale of OREO		(92	)		-			(92	)	(100.0	%)		-			(92	)	(100.0	%)
SBA servicing fee income, net		691			654			37		5.7	%		643			48		7.5	%
Recovery on impaired servicing liability		-			-			-		-			-			-		-
Service charges and other income		496			543			(47	)	(8.7	%)		429			67		15.6	%
Noninterest income		2,116			2,210			(94	)	(4.3	%)		2,561			(445	)	(17.4	%)

Salaries and employee benefits		5,848			5,635			213		3.8	%		6,024			(176	)	(2.9	%)
Occupancy and equipment		1,314			1,280			34		2.7	%		1,122			192		17.1	%
Marketing expense		215			285			(70	)	(24.6	%)		402			(187	)	(46.5	%)
Professional expense		430			329			101		30.7	%		412			18		4.4	%
Other expenses		2,426			2,411			15		0.6	%		2,084			342		16.4	%
Noninterest expense		10,233			9,940			293		2.9	%		10,044			189		1.9	%

Income before income tax provision		6,206			7,918			(1,712	)	(21.6	%)		7,925			(1,719	)	(21.7	%)

Income tax provision		1,753			2,211			(458	)	(20.7	%)		2,253			(500	)	(22.2	%)

Net income	$	4,453		$	5,707		$	(1,254	)	(22.0	%)	$	5,672		$	(1,219	)	(21.5	%)

Effective tax rate		28.25	%		27.92	%		0.32	%	1.16	%		28.43	%		-0.18	%	-0.64	%

Outstanding number of shares		10,588,136			10,588,136			-		-			10,588,136			-		-

Weighted average shares for basic EPS		10,588,136			10,588,136			-		-			10,588,136			-		-
Weighted average shares for diluted EPS		10,605,812			10,598,476			7,336		0.1	%		10,588,688			17,124		0.2	%

Basic EPS	$	0.42		$	0.54		$	(0.12	)	(22.2	%)	$	0.54		$	(0.12	)	(22.2	%)
Diluted EPS	$	0.42		$	0.54		$	(0.12	)	(22.2	%)	$	0.54		$	(0.12	)	(22.2	%)

Return on average assets		0.99	%		1.27	%		(0.28	%)	(22.1	%)		1.32	%		(0.33	%)	(25.0	%)
Return on average equity		7.01	%		8.98	%		(1.97	%)	(21.9	%)		9.57	%		(2.56	%)	(26.8	%)

Efficiency ratio¹		60.41	%		55.66	%		4.75	%	8.5	%		54.68	%		5.73	%	10.5	%
Yield on interest-earning assets²		6.25	%		6.52	%		(0.27	%)	(4.1	%)		6.77	%		(0.52	%)	(7.7	%)
Cost of funds		3.34	%		3.45	%		(0.11	%)	(3.2	%)		3.48	%		(0.14	%)	(4.0	%)
Net interest margin²		3.38	%		3.55	%		(0.17	%)	(4.8	%)		3.77	%		(0.39	%)	(10.3	%)

¹ Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income.
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2
(Dollars in thousands)

	March 31,			December 31,			$			%		March 31,			$			%
		2025			2024		Change			Change			2024		Change			Change
ASSETS
Cash and due from banks	$	12,716		$	10,336		$	2,380		23.0	%	$	11,612		$	1,104		9.5	%
Interest-earning deposits at the FRB and other banks		249,535			266,826			(17,291	)	(6.5	%)		181,366			68,169		37.6	%
Investment securities¹		61,521			62,196			(675	)	(1.1	%)		59,143			2,378		4.0	%
Loans held-for-sale		194,542			198,448			(3,906	)	(2.0	%)		198,167			(3,625	)	(1.8	%)

Loans held-for-investment		1,256,063			1,239,564			16,499		1.3	%		1,194,439			61,624		5.2	%
Less: Allowance for credit losses ("ACL")		(14,850	)		(15,959	)		1,109		6.9	%		(16,048	)		1,198		7.5	%
Loans held-for-investment, net		1,241,213			1,223,605			17,608		1.4	%		1,178,391			62,822		5.3	%

Other real estate owned ("OREO")		3,130			521			2,609		NE			-			3,130		100.0	%
Restricted stock investments		11,011			11,011			-		-			11,011			-		-
Servicing assets		6,708			6,909			(201	)	(2.9	%)		7,560			(852	)	(11.3	%)
Goodwill		2,185			2,185			-		-			2,185			-		-
Intangible assets		205			214			(9	)	(4.2	%)		245			(40	)	(16.3	%)
Other assets		31,304			33,384			(2,080	)	(6.2	%)		23,581			7,723		32.8	%
Total assets	$	1,814,070		$	1,815,635		$	(1,565	)	(0.1	%)	$	1,673,261		$	140,809		8.4	%

LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing	$	295,857		$	304,005		$	(8,148	)	(2.7	%)	$	286,766		$	9,091		3.2	%
Interest-bearing		1,181,362			1,176,567			4,795		0.4	%		1,074,198			107,164		10.0	%
Total deposits		1,477,219			1,480,572			(3,353	)	(0.2	%)		1,360,964			116,255		8.5	%

FHLB advances and other borrowing		50,000			50,000			-		-			50,000			-		-
Other liabilities		28,397			30,096			(1,699	)	(5.6	%)		21,727			6,670		30.7	%
Total liabilities		1,555,616			1,560,668			(5,052	)	(0.3	%)		1,432,691			122,925		8.6	%

Stockholders' Equity		258,454			254,967			3,487		1.4	%		240,570			17,884		7.4	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,814,070		$	1,815,635		$	(1,565	)	(0.1	%)	$	1,673,261		$	140,809		8.4	%

CAPITAL RATIOS
Leverage ratio
Company		14.04	%		14.12	%		(0.07	%)	(0.5	%)		13.85	%		0.19	%	1.4	%
Bank		14.00	%		14.07	%		(0.07	%)	(0.5	%)		13.84	%		0.16	%	1.2	%
Common equity tier 1 risk-based capital ratio
Company		19.10	%		19.02	%		0.09	%	0.5	%		18.67	%		0.43	%	2.3	%
Bank		19.05	%		18.95	%		-		-			18.65	%		0.39	%	2.1	%
Tier 1 risk-based capital ratio
Company		19.10	%		19.02	%		0.09	%	0.5	%		18.67	%		0.43	%	2.3	%
Bank		19.05	%		18.95	%		-		-			18.65	%		0.39	%	2.1	%
Total risk-based capital ratio
Company		20.23	%		20.23	%		0.00	%	0.0	%		19.92	%		0.31	%	1.5	%
Bank		20.18	%		20.16	%		0.01	%	0.1	%		19.91	%		0.27	%	1.4	%
Tangible book value per share	$	24.18		$	23.85		$	0.33		1.4	%	$	22.49		$	1.69		7.5	%
Loans Held for Investments-to-Deposit ("LHFITD") ratio		85.03	%		83.72	%		1.31	%	1.6	%		87.76	%		(2.73	%)	(3.1	%)
Net Loan-to-Deposit ("LTD") ratio		97.19	%		96.05	%		1.14	%	1.2	%		101.15	%		(3.96	%)	(3.9	%)
Nonperforming assets	$	11,675		$	12,051		$	(376	)	(3.1	%)	$	4,447		$	7,228		162.5	%
Nonperforming assets as a % of loans held-for-investment		0.93	%		0.97	%		(0.04	%)	(4.1	%)		0.37	%		0.56	%	151.4	%
ACL as a % of loans held-for-investment		1.18	%		1.29	%		(0.11	%)	(8.53	%)		1.34	%		(0.16	%)	(11.9	%)

¹ Includes AFS and HTM

FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3
(Dollars in thousands, except per share amounts)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024

Interest income	$	27,467		$	28,769		$	28,380		$	27,755		$	28,463
Interest expense		12,644			13,121			12,904			12,391			12,655
Net interest income		14,823			15,648			15,476			15,364			15,808

Provision for credit losses		500			-			(100	)		200			400
Net interest income after provision for credit losses		14,323			15,648			15,576			15,164			15,408

Gain on sale of loans		1,021			1,013			991			1,064			1,489
Gain (loss) on sale of OREO		(92	)		-			-			-			(1	)
SBA servicing fee income, net		691			654			760			768			633
Recovery on impaired servicing liability		-			-			-			-			10
Service charges and other income		496			543			465			503			430
Noninterest income		2,116			2,210			2,216			2,335			2,561

Salaries and employee benefits		5,848			5,635			5,884			5,927			6,024
Occupancy and equipment		1,314			1,280			1,149			1,114			1,122
Marketing expense		215			285			423			403			402
Professional expense		430			329			456			440			412
Other expenses		2,426			2,411			2,104			1,972			2,084
Noninterest expense		10,233			9,940			10,016			9,856			10,044

Income before income tax expense		6,206			7,918			7,776			7,643			7,925

Income tax expense		1,753			2,211			2,207			2,163			2,253

Net income	$	4,453		$	5,707		$	5,569		$	5,480		$	5,672

Effective tax rate		28.3	%		27.9	%		28.4	%		28.3	%		28.4	%

Outstanding number of shares		10,588,136			10,588,136			10,588,136			10,588,136			10,588,136

Weighted average shares for basic EPS		10,588,136			10,588,136			10,588,136			10,588,136			10,588,136
Weighted average shares for diluted EPS		10,605,812			10,598,476			10,596,039			10,588,136			10,588,688

Basic EPS	$	0.42		$	0.54		$	0.53		$	0.51		$	0.54
Diluted EPS	$	0.42		$	0.54		$	0.53		$	0.51		$	0.54

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)

	At or for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2023

Salaries and benefits	$	5,848		$	5,635		$	5,884		$	5,927		$	6,024
FTE at the end of period		166			168			178			172			168
Average FTE during the period		169			166			173			171			169
Salaries and benefits/average FTE¹	$	141		$	135		$	135		$	139		$	143
Salaries and benefits/average assets¹		1.30	%		1.25	%		1.38	%		1.42	%		1.41	%
Noninterest expense/average assets¹		2.27	%		2.21	%		2.35	%		2.36	%		2.35	%

¹ Annualized

FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)

	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
ASSETS
Cash and due from banks	$	12,716		$	10,336		$	14,892		$	11,667		$	11,612
Interest-earning deposits at the FRB and other banks		249,535			266,826			241,094			101,415			181,366
Investment securities		61,521			62,196			63,208			73,051			59,143
Loans held-for-sale		194,542			198,448			198,021			209,144			198,167

Loans held-for-investment		1,256,063			1,239,564			1,222,865			1,228,496			1,194,439
Less: Allowance for credit losses		(14,850	)		(15,959	)		(15,948	)		(16,042	)		(16,048	)
Loans held-for-investment, net		1,241,213			1,223,605			1,206,917			1,212,454			1,178,391

Other real estate owned		3,130			521			521			-			-
Restricted stock investments		11,011			11,011			11,011			11,011			11,011
Servicing assets		6,708			6,909			7,192			7,404			7,560
Goodwill		2,185			2,185			2,185			2,185			2,185
Intangible assets		205			214			224			235			245
Other assets		31,304			33,384			25,284			26,343			23,581
Total assets	$	1,814,070		$	1,815,635		$	1,770,549		$	1,654,909		$	1,673,261

LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing	$	295,857		$	304,005		$	318,807		$	281,243		$	286,766
Interest-bearing		1,181,362			1,176,567			1,128,784			1,059,146			1,074,198
Total deposits		1,477,219			1,480,572			1,447,591			1,340,389			1,360,964

FHLB advances		50,000			50,000			50,000			50,000			50,000
Other liabilities		28,397			30,096			22,415			19,260			21,727
Total liabilities		1,555,616			1,560,668			1,520,006			1,409,649			1,432,691

Stockholders' Equity		258,454			254,967			250,543			245,260			240,570
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,814,070		$	1,815,635		$	1,770,549		$	1,654,909		$	1,673,261

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	Balance		%	Balance		%	Balance		%	Balance		%	Balance		%

Construction	$	31,913	2.5%	$	27,276	2.2%	$	29,789	2.4%	$	33,918	2.8%	$	37,216	3.1%
Commercial real estate		1,061,873	84.5%		1,048,945	84.6%		1,029,768	84.2%		1,035,425	84.3%		1,005,765	84.2%
Commercial and industrial		112,369	9.0%		114,435	9.2%		112,588	9.2%		108,742	8.9%		101,784	8.5%
Home mortgage		41,944	3.3%		43,676	3.5%		45,673	3.7%		44,987	3.7%		44,389	3.7%
Consumer		3,477	0.3%		552	0.0%		537	0.0%		782	0.1%		668	0.1%
Gross loans held-for-investment		1,251,576	99.6%		1,234,884	99.6%		1,218,355	99.6%		1,223,854	99.6%		1,189,822	99.6%

Deferred loan fees/costs, net		4,487	0.4%		4,680	0.4%		4,510	0.4%		4,642	0.4%		4,617	0.4%
Loans held-for-investment	$	1,256,063	100.0%	$	1,239,564	100.0%	$	1,222,865	100.0%	$	1,228,496	100.0%	$	1,194,439	100.0%

Loans held-for-sale	$	194,542		$	198,448		$	198,021		$	209,144		$	198,167
Total loans receivable	$	1,450,605		$	1,438,012		$	1,420,886		$	1,437,640		$	1,392,606

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7
(Dollars in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024

SBA loans held-for-sale at beginning of the quarter/year	$	198,448		$	198,021		$	209,144		$	198,167		$	218,258
SBA loans originated/transferred from/to held-for-investment during the quarter/year		23,778			22,172			13,169			34,366			14,589
SBA loans sold during the quarter/year		(19,753	)		(17,215	)		(20,152	)		(19,508	)		(28,164	)
SBA loans principal paydown/payoff, net of advance		(7,931	)		(4,530	)		(4,140	)		(3,881	)		(6,516	)
SBA loans held-for-sale at end of the quarter/year	$	194,542		$	198,448		$	198,021		$	209,144		$	198,167

Gain on sale of SBA loans	$	1,021		$	1,013		$	991		$	1,064		$	1,489
Premium on sale (weighted average)		8.1	%		9.2	%		7.5	%		8.3	%		6.8	%

SBA loan production	$	32,034		$	39,741		$	23,227		$	45,126		$	18,089

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8
(Dollars in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024


SBA servicing assets @ beginning of the quarter/year	$	6,909		$	7,192		$	7,404		$	7,560		$	7,673

Newly added SBA servicing assets from SBA loans sold		361			355			377			395			555
Regular quarterly/annual servicing assets amortization		(305	)		(315	)		(332	)		(335	)		(332	)
SBA servicing assets amortized from SBA loans paid off/charged off		(257	)		(323	)		(257	)		(216	)		(336	)

Subtotal before impairment		6,708			6,909			7,192			7,404			7,560

Reversal of valuation allowance on servicing assets		-			-			-			-			-

SBA servicing assets @ the end of the quarter/year	$	6,708		$	6,909		$	7,192		$	7,404		$	7,560

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	Balance		%	Balance		%	Balance		%	Balance		%	Balance		%

Noninterest-bearing demand	$	295,857	20.0%	$	304,005	20.5%	$	318,807	22.0%	$	281,243	21.0%	$	286,766	21.1%
Interest-bearing demand		6,588	0.5%		7,541	0.5%		6,590	0.5%		7,901	0.6%		6,709	0.5%
NOW & MMDA		257,474	17.4%		269,475	18.2%		246,157	17.0%		240,951	18.0%		229,642	16.9%
Savings		81,425	5.5%		84,727	5.7%		78,356	5.4%		80,360	6.0%		84,999	6.2%
TCDs of $250K and under		315,312	21.3%		324,041	21.9%		310,134	21.4%		295,109	22.0%		299,944	22.0%
TCDs of $250K over		377,486	25.6%		345,045	23.3%		342,301	23.7%		314,119	23.4%		339,482	25.0%
Wholesale deposits		143,077	9.7%		145,738	9.9%		145,246	10.0%		120,706	9.0%		113,422	8.3%
Total Deposits	$	1,477,219	100.0%	$	1,480,572	100.0%	$	1,447,591	100.0%	$	1,340,389	100.0%	$	1,360,964	100.0%

Recap:
Noninterest-bearing demand	$	295,857	20.0%	$	304,005	20.5%	$	318,807	22.0%	$	281,243	21.0%	$	286,766	21.1%
Interest-bearing demand		6,588	0.5%		7,541	0.5%		6,590	0.5%		7,901	0.6%		6,709	0.5%
NOW & MMDA		257,474	17.4%		269,475	18.2%		246,157	17.0%		240,951	18.0%		229,642	16.9%
Savings		81,425	5.5%		84,727	5.7%		78,356	5.4%		80,360	6.0%		84,999	6.2%
TCDs of $250K and under		315,312	21.3%		324,041	21.9%		310,134	21.4%		295,109	22.0%		299,944	22.0%
Core Deposits		956,656	64.7%		989,789	66.8%		960,044	66.3%		881,952	67.6%		908,060	66.7%

TCDs of $250K over		377,486	25.6%		345,045	23.3%		342,301	23.7%		314,119	23.4%		339,482	25.0%
Nonreciprocal ICS MMDA		-	-		-	-		-	-		-	-		-	-
Wholesale deposits		143,077	9.7%		145,738	9.9%		145,246	10.0%		120,706	9.0%		113,422	8.3%
Noncore Deposits		520,563	35.3%		490,783	33.1%		487,547	33.7%		434,825	32.4%		452,904	33.3%
Total Deposits	$	1,477,219	100.0%	$	1,480,572	100.0%	$	1,447,591	100.0%	$	1,340,389	100.0%	$	1,360,964	100.0%

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10
(Dollars in thousands)

	1st Qtr.			4th Qtr.			3rd Qtr.			2nd Qtr.			1st Qtr.
		2025			2024			2024			2024			2024
Allowance for Credit Losses
Balance at beginning of period	$	15,959		$	15,948		$	16,042		$	16,048		$	15,291
CECL transition provision		-			-			-			-			-
Provision for credit losses		430			-			-			200			743
Charge-offs		(1,567	)		-			(108	)		(257	)		-
Recoveries		28			11			14			51			14
Balance at the end of period	$	14,850		$	15,959		$	15,948		$	16,042		$	16,048

Nonperforming Assets: ¹
Over 90 days still accruing	$	-		$	1,819		$	994		$	-		$	1,605
Nonaccrual loans		8,545			9,711			7,043			5,797			2,842
Total nonperforming loans		8,545			11,530			8,037			5,797			4,447

Other real estate owned	$	3,130			521			521			-			-
Total nonperforming assets	$	11,675		$	12,051		$	8,558		$	5,797		$	4,447

Classified Assets:¹
Substandard	$	20,827		$	22,077		$	15,980		$	12,762		$	11,912
Doubtful		-			-			-			-			-
Loss
Total classified loans	$	20,827		$	22,077		$	15,980		$	12,762		$	11,912

Other real estate owned	$	3,130			521			521			-			-
Total classified assets	$	23,957		$	22,598		$	16,501		$	12,762		$	11,912

Performing modified loans: ¹	$	635		$	649		$	452		$	464		$	3,811

Delinquent Loans: ¹
Loans 30-89 days past due	$	19,010		$	7,614		$	4,308		$	8,613		$	16,907
90 days or more past due and still accruing		-			1,819			994			-			1,605
Nonaccrual		8,545			9,711			7,043			5,797			2,842
Total delinquent loans	$	27,555		$	19,144		$	12,345		$	14,410		$	21,354

Asset Quality Ratios:
Net (recoveries) charge-offs to average loans²		0.43	%		0.00	%		0.03	%		0.06	%		0.00	%
Nonaccrual loans to loans held-for-investment		0.68	%		0.78	%		0.58	%		0.47	%		0.24	%
Nonperforming loans to loans held-for-investment		0.68	%		0.93	%		0.66	%		0.47	%		0.37	%
Nonperforming assets to total assets		0.64	%		0.66	%		0.48	%		0.35	%		0.27	%
Classified loans to loans held-for-investment		1.66	%		1.78	%		1.31	%		1.04	%		1.00	%
Classified loans to Tier 1 and ACL		7.69	%		8.22	%		6.05	%		4.93	%		4.69	%
Classified assets to total assets		1.32	%		1.24	%		0.93	%		0.77	%		0.71	%
Classified assets to Tier 1 and ACL		8.84	%		8.42	%		6.25	%		4.93	%		4.69	%
ACL to loans held-for-investment		1.18	%		1.29	%		1.30	%		1.31	%		1.34	%
ACL to nonaccrual loans		173.79	%		164.34	%		226.44	%		276.73	%		564.67	%
ACL to nonperforming loans		173.79	%		138.41	%		198.43	%		276.73	%		360.87	%
ACL to nonperforming assets		127.19	%		132.43	%		186.35	%		276.73	%		360.87	%
Texas ratio ³		4.31	%		4.49	%		3.24	%		2.24	%		1.75	%

¹ Net of SBA guaranteed balance
² Includes loans held-for-sale
³ Nonperforming assets divided by tangible common equity and ACL

FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11

	Well Capitalized Regulatory	Adequately Capitalized BASEL III	March 31,		December 31,		September 30,		June 30,		March 31,
	Requirement	Fully Phased In	2025		2024		2024		2024		2024

Leverage ratio
Company	N/A	N/A		14.04%		14.12%		14.64%		14.51%		13.85%
Bank	5.00%	4.00%		14.00%		14.07%		14.58%		14.45%		13.84%
Common equity tier 1 risk-based capital ratio
Company	N/A	N/A		19.10%		19.02%		19.03%		18.36%		18.67%
Bank	6.50%	7.00%		19.05%		18.95%		18.95%		18.28%		18.65%
Tier 1 risk-based capital ratio
Company	N/A	N/A		19.10%		19.02%		19.03%		18.36%		18.67%
Bank	8.00%	8.50%		19.05%		18.95%		18.95%		18.28%		18.65%
Total risk-based capital ratio
Company	N/A	N/A		20.23%		20.23%		20.26%		19.59%		19.92%
Bank	10.00%	10.50%		20.18%		20.16%		20.18%		19.50%		19.91%

Tangible common equity/total assets				14.13%		13.93%		14.03%		14.70%		14.25%
Tangible common equity per share			$	24.18	$	23.85	$	23.44	$	22.94	$	22.49

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)

	Three Months Ended
	March 31, 2025							December 31, 2024							September 30, 2024							June 30, 2024							March 31, 2024
	Avg Balance			Interest		Yield		Avg Balance			Interest		Yield		Avg Balance			Interest		Yield		Avg Balance			Interest		Yield		Avg Balance			Interest		Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans Receivable¹	$	1,437,846		$	23,618	6.66	%	$	1,432,216		$	24,863	6.91	%	$	1,427,123		$	25,357	7.07	%	$	1,418,458		$	24,887	7.06	%	$	1,415,924		$	24,906	7.07	%
Investment securities ²		61,930			667	4.37	%		62,714			696	4.42	%		68,198			734	4.28	%		70,052			723	4.15	%		59,554			575	3.88	%
Interest-earning deposits at the FRB and other banks		275,512			3,029	4.46	%		253,524			3,048	4.78	%		158,127			2,139	5.38	%		146,956			1,995	5.46	%		207,155			2,817	5.47	%
Other earning assets		11,011			203	7.48	%		11,011			211	7.62	%		11,011			200	7.23	%		11,011			200	7.31	%		11,011			214	7.82	%
Total interest-earning assets ²		1,786,299			27,517	6.25	%		1,759,465			28,818	6.52	%		1,664,459			28,430	6.80	%		1,646,477			27,805	6.79	%		1,693,644			28,512	6.77	%

NONINTEREST-EARNING ASSETS
Cash and due from banks		12,060							12,349							12,527							12,907							12,172
Other noninterest-earning assets		41,549							35,479							34,395							33,263							31,967
Total noninterest-earning assets		53,609							47,828							46,922							46,170							44,139

Less: Allowance for credit losses		(15,569	)						(15,953	)						(16,024	)						(16,058	)						(15,322	)

TOTAL ASSETS	$	1,824,339						$	1,791,340						$	1,695,357						$	1,676,589						$	1,722,461

INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,622		$	5	0.21	%	$	11,147		$	6	0.21	%	$	11,007		$	6	0.22	%	$	11,864		$	6	0.20	%	$	12,680		$	6	0.19	%
Money market		265,687			2,555	3.90	%		244,258			2,508	4.08	%		236,834			2,555	4.29	%		230,261			2,272	3.97	%		229,441			2,285	4.01	%
Savings		83,978			638	3.08	%		81,423			661	3.23	%		79,289			689	3.46	%		82,215			700	3.42	%		84,854			724	3.43	%
Time deposits		830,672			9,331	4.56	%		815,866			9,828	4.79	%		767,607			9,536	4.94	%		759,954			9,296	4.92	%		801,122			9,523	4.78	%
Total interest-bearing deposits		1,189,959			12,529	4.27	%		1,152,694			13,003	4.49	%		1,094,737			12,786	4.65	%		1,084,294			12,274	4.55	%		1,128,097			12,538	4.47	%

Borrowings		48,889			115	0.95	%		50,001			118	0.94	%		50,000			118	0.94	%		50,013			117	0.94	%		50,000			117	0.94	%
Total interest-bearing liabilities		1,238,848			12,644	4.14	%		1,202,695			13,121	4.34	%		1,144,737			12,904	4.48	%		1,134,307			12,391	4.39	%		1,178,097			12,655	4.32	%

Noninterest-bearing deposits		298,579							309,662							280,670							279,765							284,867
Other liabilities		29,428							26,090							21,376							19,287							21,112

Stockholders' equity		257,484							252,893							248,574							243,230							238,385
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,824,339						$	1,791,340						$	1,695,357						$	1,676,589						$	1,722,461

Net interest income²				$	14,873						$	15,697						$	15,526						$	15,414						$	15,857

Net interest spread						2.11	%						2.18	%						2.32	%						2.40	%						2.45	%

Effect of noninterest-bearing sources						1.27	%						1.37	%						1.39	%						1.37	%						1.32	%

Net interest margin²						3.38	%						3.55	%						3.71	%						3.77	%						3.77	%


Cost of deposits	$	1,488,538		$	12,529	3.41	%	$	1,462,356		$	13,003	3.54	%	$	1,375,407		$	12,786	3.70	%	$	1,364,059		$	12,274	3.62	%	$	1,412,964		$	12,538	3.57	%

Cost of funds	$	1,537,427		$	12,644	3.34	%	$	1,512,357		$	13,121	3.45	%	$	1,425,407		$	12,904	3.60	%	$	1,414,072		$	12,391	3.52	%	$	1,462,964		$	12,655	3.48	%

¹ Loan held-for-investment, plus loans held-for-sale
² Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13
(Dollars in thousands)

	Three Months Ended
	March 31,2025					December 31, 2024					September 30, 2024					June 30,2024					March 31, 2024
	Amount			Yield		Amount			Yield		Amount			Yield		Amount			Yield		Amount			Yield

Contractual yield	$	22,866		6.45	%	$	24,036		6.68	%	$	24,544		6.84	%	$	24,271		6.88	%	$	24,138		6.86	%
SBA discount accretion		781		0.22	%		818		0.23	%		806		0.23	%		736		0.21	%		926		0.26	%
Prepayment penalties and late fees		136		0.04	%		64		0.02	%		184		0.05	%		36		0.01	%		67		0.01	%
Amortization of net deferred costs		(165	)	-0.05	%		(55	)	-0.02	%		(177	)	-0.05	%		(156	)	-0.04	%		(225	)	-0.06	%
As reported yield on loans	$	23,618		6.66	%	$	24,863		6.91	%	$	25,357		7.07	%	$	24,887		7.06	%	$	24,906		7.07	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250424192746/en/

Alex Ko, EVP & CFO
(213) 296-5737
AlexK@cbb-bank.com

Source: CBB Bancorp, Inc.

Company Announcements

CBB Bancorp, Inc. Reports First Quarter 2025 Financial Results