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