CBB Bancorp, Inc. Reports Fourth Quarter 2025 Financial Results

LOS ANGELES--(BUSINESS WIRE)--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 fourth quarter 2025, or $0.42 per diluted share compared to $4.5 million in the third quarter 2025, or $0.43 per diluted share.

Fourth Quarter 2025 Highlights

• Net income: $4.5 million, or $0.42 per diluted share
• Net interest margin: 3.16%, compared to 3.49% in the prior quarter
• SBA loan sales: $19.7 million sold at an average premium of 6.8%
• Deposits: Increased $41.1 million, or 2.5% quarter-over-quarter

Net income for the fourth quarter of 2025 remained relatively consistent with the prior quarter, reflecting a lower net interest margin and higher noninterest expenses, partially offset by a lower provision for credit losses and higher loan sale gains.

The net interest margin for the fourth quarter of 2025 was 3.16%, compared with 3.49% in the third quarter of 2025 and 3.55% in the fourth quarter of 2024. The efficiency ratio was 63.13%, compared with 61.48% in the prior quarter and 55.66% in the same period last year.

Seungho Park, President and CEO, said, “During the fourth quarter of 2025, we reached a significant milestone, with total assets exceeding $2 billion for the first time in its history, reflecting continued balance sheet growth and disciplined execution. The Bank’s loan pipeline remains active and strong. Under the new leadership of our experienced management team, we remain focused on sustainable growth, prudent risk management, and operational efficiency, as we navigate an evolving economic environment.”

INCOME STATEMENT

Net Interest Income

Net interest income for the fourth quarter 2025 was $15.7 million, a decrease of $72 thousand or 0.5% from the prior quarter and generally consistent with the fourth quarter of 2024. The quarter-over-quarter decrease was primarily attributable to margin compression driven by higher funding costs and lower yields on interest-earning assets.

Net Interest Margin

The net interest margin for the fourth quarter 2025 was 3.16% compared to 3.49% for the third quarter 2025 and 3.55% for the fourth quarter 2024. The decline from the prior quarter was mainly due to a decrease in the yield on interest-earning assets and an increase in the overall cost of funds, which increased to 3.30% from 3.25% in the prior quarter.

Provision for Credit Losses

The Company recorded a total provision for credit losses of $300 thousand for the fourth quarter of 2025, compared to $470 thousand in the third quarter of 2025 and no provision in the fourth quarter of 2024.

Noninterest Income

Noninterest income for the fourth quarter of 2025 was $1.8 million, compared to $1.9 million in the prior quarter and $2.2 million in the same quarter of 2024. The quarter included $802 thousand in gains on the sale of SBA loans and no gain on the sale of other real estate owned (OREO), compared to a $29 thousand OREO loss in the prior quarter.

Noninterest Expenses

Noninterest expenses totaled $11.0 million for the fourth quarter of 2025, compared to $10.8 million in the prior quarter and $9.9 million in the fourth quarter of 2024. The $224 thousand quarter-over-quarter increase was primarily driven by higher personnel costs and occupancy, partially offset by lower professional and other operating expenses.

Income Taxes

The Company’s effective tax rate for the fourth quarter of 2025 was 26.7%, compared to 27.9% for the third quarter of 2025 and 27.9% for the fourth quarter of 2024. The reduction in the effective tax rate is primarily due to the impact of changes in deferred tax balances associated with loan classification, which resulted in a modest reduction in the Company’s overall tax expense for the quarter.

BALANCE SHEET

Investment Securities

Investment securities were $65.7 million at December 31, 2025, a decrease of $1.7 million, or 2.6%, from September 30, 2025, and an increase of $3.5 million, or 5.7%, from December 31, 2024.

Loans Receivable

Loans receivable, including loans held-for-sale, totaled $1.46 billion at December 31, 2025, an increase of $15.2 million, or 1.1%, from the prior quarter and $24.8 million, or 1.7%, from a year earlier.

Allowance for Credit Losses and Asset Quality

The Allowance for Credit Losses (“ACL”) was $16.3 million at December 31, 2025, representing 1.17% of loans held-for-investment, compared to $16.2 million, or 1.27%, at September 30, 2025, and $16.0 million, or 1.29%, at December 31, 2024.

Total nonperforming assets increased to $21.6 million at quarter-end from $16.4 million at September 30, 2025, primarily due to an increase in OREO balances.

Substandard loans declined to $29.7 million from $31.5 million in the prior quarter, while total delinquent loans decreased slightly to $23.5 million, compared to $23.6 million at September 30, 2025.

SBA Loans Held-for-Sale

Total SBA loans held-for-sale were $65.4 million as of December 31, 2025, compared to $175.2 million at September 30, 2025, and $198.4 million at December 31, 2024. The quarter-over-quarter decrease was primarily attributable to the reclassification of $88.2 million of SBA loans to loans held for investment.

During the quarter, the Bank sold $19.7 million in SBA loans at an average premium of 6.8%, compared to $14.5 million sold at an average premium of 7.1% in the prior quarter and $17.2 million sold at a 9.2% average premium in the same quarter of 2024.

Deposits

Total deposits were $1.71 billion at December 31, 2025, an increase of $41.1 million, or 2.5%, from the prior quarter and $226.8 million, or 15.3%, from a year earlier, reflecting continued strong deposit inflows.

Borrowings

The Bank had no outstanding borrowings as of December 31, 2025, consistent with the position since the second quarter of 2025.

Capital

Stockholders’ equity was $268.7 million at December 31, 2025, up $3.2 million, or 1.2%, from the prior quarter. Tangible book value per share was $25.16, an increase of $0.31, or 1.2%, quarter-over-quarter.

At quarter-end, Common Equity Tier 1 Risk-Based Capital Ratios were 19.03% for the Company and 19.01% for the Bank. Total Risk-Based Capital Ratios were 20.22% and 20.20%, respectively, and Leverage Ratios were 13.25% for the Company and 13.23% for the Bank. The Bank continues to be classified as “Well Capitalized” under applicable regulatory standards.

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 December 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 Bergen County, New Jersey. Three SBA regional offices in Los Angeles, Dallas, and Bergen Counties, and loan production offices in Georgia, Texas, Virginia, 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 4Q 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																			Twelve Months Ended
	December 31,			September 30,			$			%		December 31,			$			%		December 31,			December 31,			$			%
		2025			2025		Change			Change			2024		Change			Change			2025			2024		Change			Change
Interest income	$	29,869		$	28,338		$	1,531		5.4	%	$	28,769		$	1,100		3.8	%	$	113,066		$	113,367		$	(301	)	(0.3	%)
Interest expense		14,211			12,608			1,603		12.7	%		13,121			1,090		8.3	%		51,808			51,071			737		1.4	%
Net interest income		15,658			15,730			(72	)	(0.5	%)		15,648			10		0.1	%		61,258			62,296			(1,038	)	(1.7	%)
Provision for credit losses		300			470			(170	)	(36.2	%)		-			300		100.0	%		1,860			500			1,360		272.0	%
Net interest income after provision for credit losses		15,358			15,260			98		0.6	%		15,648			(290	)	(1.9	%)		59,398			61,796			(2,398	)	(3.9	%)
Gain on sale of loans		802			648			154		23.8	%		1,013			(211	)	(20.8	%)		3,371			4,557			(1,186	)	(26.0	%)
Loss on sale of OREO		-			29			(29	)	(100.0	%)		-			-		-			(130	)		-			(130	)	(100.0	%)
SBA servicing fee income, net		587			705			(118	)	(16.7	%)		654			(67	)	(10.2	%)		2,782			2,815			(33	)	(1.2	%)
Recovery on impaired servicing liability		-			-			-		-			-			-		-			-			10			(10	)	(100.0	%)
Service charges and other income		428			469			(41	)	(8.7	%)		543			(115	)	(21.2	%)		1,843			1,940			(97	)	(5.0	%)
Noninterest income		1,817			1,851			(34	)	(1.8	%)		2,210			(393	)	(17.8	%)		7,866			9,322			(1,456	)	(15.6	%)
Salaries and employee benefits		6,478			5,849			629		10.8	%		5,635			843		15.0	%		23,954			23,470			484		2.1	%
Occupancy and equipment		1,400			1,378			22		1.6	%		1,280			120		9.4	%		5,385			4,665			720		15.4	%
Marketing expense		380			397			(17	)	(4.3	%)		285			95		33.3	%		1,396			1,513			(117	)	(7.7	%)
Professional expense		519			699			(180	)	(25.8	%)		329			190		57.8	%		2,267			1,637			630		38.5	%
Other expenses		2,255			2,485			(230	)	(9.3	%)		2,411			(156	)	(6.5	%)		9,347			8,571			776		9.1	%
Noninterest expense		11,032			10,808			224		2.1	%		9,940			1,092		11.0	%		42,349			39,856			2,493		6.3	%
Income before income tax provision		6,143			6,303			(160	)	(2.5	%)		7,918			(1,775	)	(22.4	%)		24,915			31,262			(6,347	)	(20.3	%)
Income tax provision		1,641			1,758			(117	)	(6.7	%)		2,211			(570	)	(25.8	%)		7,020			8,834			(1,814	)	(20.5	%)
Net income	$	4,502		$	4,545		$	(43	)	(0.9	%)	$	5,707		$	(1,205	)	(21.1	%)	$	17,895		$	22,428		$	(4,533	)	(20.2	%)
Effective tax rate		26.71	%		27.89	%		(1.18	%)	(4.22	%)		27.92	%		(1.21	%)	(4.33	%)		28.18	%		28.26	%		(0.08	%)	(0.29	%)
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		10,602,538			10,600,724			1,814		0.0	%		10,598,476			4,062		0.0	%		10,600,404			10,594,400			6,004		0.1	%
Basic EPS	$	0.42		$	0.43		$	(0.01	)	(2.3	%)	$	0.54		$	(0.12	)	(22.2	%)	$	1.69		$	2.12		$	(0.43	)	(20.3	%)
Diluted EPS	$	0.42		$	0.43		$	(0.01	)	(2.3	%)	$	0.54		$	(0.12	)	(22.2	%)	$	1.69		$	2.12		$	(0.43	)	(20.3	%)
Return on average assets		0.89	%		0.98	%		(0.09	%)	(9.2	%)		1.27	%		(0.38	%)	(29.9	%)		0.96	%		1.30	%		(0.34	%)	(26.2	%)
Return on average equity		6.69	%		6.83	%		(0.14	%)	(2.1	%)		8.98	%		(2.29	%)	(25.5	%)		6.82	%		9.12	%		(2.30	%)	(25.2	%)
Efficiency ratio¹		63.13	%		61.48	%		1.65	%	2.7	%		55.66	%		7.47	%	13.4	%		61.27	%		55.65	%		5.62	%	10.1	%
Yield on interest-earning assets²		6.02	%		6.27	%		(0.25	%)	(4.0	%)		6.52	%		(0.50	%)	(7.7	%)		6.20	%		6.72	%		(0.52	%)	(7.7	%)
Cost of funds		3.30	%		3.25	%		0.05	%	1.5	%		3.45	%		(0.15	%)	(4.3	%)		3.29	%		3.51	%		(0.22	%)	(6.3	%)
Net interest margin²		3.16	%		3.49	%		(0.33	%)	(9.5	%)		3.55	%		(0.39	%)	(11.0	%)		3.36	%		3.70	%		(0.34	%)	(9.2	%)

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)
		December 31,			September 30,			$			%		December 31,			$			%
			2025			2025		Change			Change			2024		Change			Change
ASSETS
	Cash and due from banks	$	10,265		$	25,597		$	(15,332	)	(59.9	%)	$	10,336		$	(71	)	(0.7	%)
	Interest-earning deposits at the FRB and other banks		426,000			385,282			40,718		10.6	%		266,826			159,174		59.7	%
	Investment securities¹		65,730			67,459			(1,729	)	(2.6	%)		62,196			3,534		5.7	%
	Loans held-for-sale		65,419			175,158			(109,739	)	(62.7	%)		198,448			(133,029	)	(67.0	%)
	Loans held-for-investment		1,397,420			1,272,474			124,946		9.8	%		1,239,564			157,856		12.7	%
	Less: Allowance for credit losses ("ACL")		(16,345	)		(16,151	)		(194	)	(1.2	%)		(15,959	)		(386	)	(2.4	%)
	Loans held-for-investment, net		1,381,075			1,256,323			124,752		9.9	%		1,223,605			157,470		12.9	%
	Other real estate owned ("OREO")		5,651			297			5,354		NE			521			5,130		NE
	Restricted stock investments		11,011			11,011			-		-			11,011			-		-
	Servicing assets		6,141			6,342			(201	)	(3.2	%)		6,909			(768	)	(11.1	%)
	Goodwill		2,185			2,185			-		-			2,185			-		-
	Intangible assets		176			186			(10	)	(5.4	%)		214			(38	)	(17.8	%)
	Other assets		33,373			32,602			771		2.4	%		33,384			(11	)	(0.0	%)
	Total assets	$	2,007,026		$	1,962,442		$	44,584		2.3	%	$	1,815,635		$	191,391		10.5	%
LIABILITIES AND STOCKHOLDERS' EQUITY
	Noninterest-bearing	$	301,775		$	280,351		$	21,424		7.6	%	$	304,005		$	(2,230	)	(0.7	%)
	Interest-bearing		1,405,552			1,385,920			19,632		1.4	%		1,176,567			228,985		19.5	%
	Total deposits		1,707,327			1,666,271			41,056		2.5	%		1,480,572			226,755		15.3	%
	FHLB advances and other borrowing		-			-			-		-			50,000			(50,000	)	(100.0	%)
	Other liabilities		30,950			30,649			301		1.0	%		30,096			854		2.8	%
	Total liabilities		1,738,277			1,696,920			41,357		2.4	%		1,560,668			177,609		11.4	%
	Stockholders' Equity		268,749			265,522			3,227		1.2	%		254,967			13,782		5.4	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	2,007,026		$	1,962,442		$	44,584		2.3	%	$	1,815,635		$	191,391		10.5	%
CAPITAL RATIOS
	Leverage ratio
	Company		13.25	%		14.34	%		(1.09	%)	(7.6	%)		14.12	%		(0.87	%)	(6.1	%)
	Bank		13.23	%		14.32	%		(1.08	%)	(7.6	%)		14.07	%		(0.84	%)	(5.9	%)
	Common equity tier 1 risk-based capital ratio
	Company		19.03	%		19.26	%		(0.23	%)	(1.2	%)		19.02	%		0.01	%	0.1	%
	Bank		19.01	%		19.22	%		(0.22	%)	(1.1	%)		18.95	%		0.05	%	0.3	%
	Tier 1 risk-based capital ratio
	Company		19.03	%		19.26	%		(0.23	%)	(1.2	%)		19.02	%		0.01	%	0.1	%
	Bank		19.01	%		19.22	%		(0.22	%)	(1.1	%)		18.95	%		0.05	%	0.3	%
	Total risk-based capital ratio
	Company		20.22	%		20.46	%		(0.24	%)	(1.1	%)		20.23	%		(0.01	%)	(0.0	%)
	Bank		20.20	%		20.42	%		(0.22	%)	(1.1	%)		20.16	%		0.04	%	0.2	%
	Tangible book value per share	$	25.16		$	24.85		$	0.31		1.2	%	$	23.85		$	1.31		5.5	%
	Loans Held for Investments-to-Deposit ("LHFITD") ratio		81.85	%		76.37	%		5.48	%	7.2	%		83.72	%		(1.87	%)	(2.2	%)
	Net Loan-to-Deposit ("LTD") ratio		84.72	%		85.91	%		(1.19	%)	(1.4	%)		96.05	%		(11.33	%)	(11.8	%)
	Nonperforming assets	$	21,611		$	16,399		$	5,212		31.8	%	$	12,051		$	9,560		79.3	%
	Nonperforming assets as a % of loans held-for-investment		1.55	%		1.29	%		0.26	%	20.2	%		0.97	%		0.58	%	59.8	%
	ACL as a % of loans held-for-investment		1.17	%		1.27	%		(0.10	%)	(7.87	%)		1.29	%		(0.12	%)	(9.3	%)

¹ Includes AFS and HTM

FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3
(Dollars in thousands, except per share amounts)
	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
		2025			2025			2025			2025			2024
Interest income	$	29,869		$	28,338		$	27,392		$	27,467		$	28,769
Interest expense		14,211			12,608			12,345			12,644			13,121
Net interest income		15,658			15,730			15,047			14,823			15,648
Provision for credit losses		300			470			590			500			-
Net interest income after provision for credit losses		15,358			15,260			14,457			14,323			15,648
Gain on sale of loans		802			648			900			1,021			1,013
Gain (loss) on sale of OREO		-			29			(67	)		(92	)		-
SBA servicing fee income, net		587			705			799			691			654
Recovery on impaired servicing liability		-			-			-			-			-
Service charges and other income		428			469			450			496			543
Noninterest income		1,817			1,851			2,082			2,116			2,210
Salaries and employee benefits		6,478			5,849			5,779			5,848			5,635
Occupancy and equipment		1,400			1,378			1,293			1,314			1,280
Marketing expense		380			397			404			215			285
Professional expense		519			699			619			430			329
Other expenses		2,255			2,485			2,181			2,426			2,411
Noninterest expense		11,032			10,808			10,276			10,233			9,940
Income before income tax expense		6,143			6,303			6,263			6,206			7,918
Income tax expense		1,641			1,758			1,868			1,753			2,211
Net income	$	4,502		$	4,545		$	4,395		$	4,453		$	5,707
Effective tax rate		26.7	%		27.9	%		29.8	%		28.3	%		27.9	%
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		10,602,538			10,600,724			10,593,497			10,605,812			10,598,476
Basic EPS	$	0.42		$	0.43		$	0.42		$	0.42		$	0.54
Diluted EPS	$	0.42		$	0.43		$	0.42		$	0.42		$	0.54

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)
	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
		2025			2025			2025			2025			2024
Salaries and benefits	$	6,478		$	5,849		$	5,779		$	5,848		$	5,635
FTE at the end of period		174			171			163			166			168
Average FTE during the period		170			168			166			169			166
Salaries and benefits/average FTE¹	$	151		$	138		$	140		$	141		$	135
Salaries and benefits/average assets¹		1.28	%		1.27	%		1.29	%		1.30	%		1.25	%
Noninterest expense/average assets¹		2.18	%		2.34	%		2.30	%		2.27	%		2.21	%

^1 Annualized

FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)
		December 31,			September 30,			June 30,			March 31,			December 31,
			2025			2025			2025			2025			2024
ASSETS
	Cash and due from banks	$	10,265		$	25,597		$	11,873		$	12,716		$	10,336
	Interest-earning deposits at the FRB and other banks		426,000			385,282			235,436			249,535			266,826
	Investment securities		65,730			67,459			65,518			61,521			62,196
	Loans held-for-sale		65,419			175,158			183,996			194,542			198,448
	Loans held-for-investment		1,397,420			1,272,474			1,278,106			1,256,063			1,239,564
	Less: Allowance for credit losses		(16,345	)		(16,151	)		(15,461	)		(14,850	)		(15,959	)
	Loans held-for-investment, net		1,381,075			1,256,323			1,262,645			1,241,213			1,223,605
	Other real estate owned		5,651			297			2,999			3,130			521
	Restricted stock investments		11,011			11,011			11,011			11,011			11,011
	Servicing assets		6,141			6,342			6,609			6,708			6,909
	Goodwill		2,185			2,185			2,185			2,185			2,185
	Intangible assets		176			186			195			205			214
	Other assets		33,373			32,602			32,359			31,304			33,384
	Total assets	$	2,007,026		$	1,962,442		$	1,814,826		$	1,814,070		$	1,815,635
LIABILITIES AND STOCKHOLDERS' EQUITY
	Noninterest-bearing	$	301,775		$	280,351		$	309,160		$	295,857		$	304,005
	Interest-bearing		1,405,552			1,385,920			1,215,760			1,181,362			1,176,567
	Total deposits		1,707,327			1,666,271			1,524,920			1,477,219			1,480,572
	FHLB advances		-			-			-			50,000			50,000
	Other liabilities		30,950			30,649			27,972			28,397			30,096
	Total liabilities		1,738,277			1,696,920			1,552,892			1,555,616			1,560,668
	Stockholders' Equity		268,749			265,522			261,934			258,454			254,967
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	2,007,026		$	1,962,442		$	1,814,826		$	1,814,070		$	1,815,635

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	Balance		%		Balance		%		Balance		%		Balance		%		Balance		%
Construction	$	18,566	1.3	%	$	36,480	2.9	%	$	33,952	2.7	%	$	31,913	2.5	%	$	27,276	2.2	%
Commercial real estate		1,204,652	86.2	%		1,088,603	85.6	%		1,091,180	85.4	%		1,061,873	84.5	%		1,048,945	84.6	%
Commercial and industrial		134,306	9.6	%		103,276	8.1	%		108,461	8.5	%		112,369	9.0	%		114,435	9.2	%
Home mortgage		32,188	2.3	%		36,522	2.9	%		36,673	2.9	%		41,944	3.3	%		43,676	3.5	%
Consumer		4,174	0.3	%		3,548	0.3	%		3,527	0.3	%		3,477	0.3	%		552	0.0	%
Gross loans held-for-investment		1,393,886	99.7	%		1,268,429	99.7	%		1,273,793	99.7	%		1,251,576	99.6	%		1,234,884	99.6	%
Deferred loan fees/costs, net		3,534	0.3	%		4,045	0.3	%		4,313	0.3	%		4,487	0.4	%		4,680	0.4	%
Loans held-for-investment	$	1,397,420	100.0	%	$	1,272,474	100.0	%	$	1,278,106	100.0	%	$	1,256,063	100.0	%	$	1,239,564	100.0	%
Loans held-for-sale	$	65,419			$	175,158			$	183,996			$	194,542			$	198,448
Total loans receivable	$	1,462,839			$	1,447,632			$	1,462,102			$	1,450,605			$	1,438,012

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7
(Dollars in thousands)
	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30			March 31,			December 31,			December 31,			December 31,
		2025			2025			2025			2025			2024			2025			2024
SBA loans held-for-sale at beginning of the quarter/year	$	175,158		$	183,996		$	194,542		$	198,448		$	198,021		$	198,448		$	218,258
SBA loans originated/transferred from/to held-for-
investment during the quarter/year		(77,847	)		19,835			20,135			23,778			22,172			(14,099	)		84,296
SBA loans sold during the quarter/year		(19,702	)		(14,539	)		(17,580	)		(19,753	)		(17,215	)		(71,574	)		(85,039	)
SBA loans principal paydown/payoff, net of advance		(12,190	)		(14,134	)		(13,101	)		(7,931	)		(4,530	)		(47,356	)		(19,067	)
SBA loans held-for-sale at end of the quarter/year	$	65,419		$	175,158		$	183,996		$	194,542		$	198,448		$	65,419		$	198,448
Gain on sale of SBA loans	$	802		$	648		$	900		$	1,021		$	1,013		$	3,371		$	4,557
Premium on sale (weighted average)		6.8	%		7.1	%		8.1	%		8.1	%		9.2	%		7.5	%		8.3	%
SBA loan production	$	12,952		$	22,228		$	28,860		$	32,034		$	39,741		$	96,074		$	126,183

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8
(Dollars in thousands)
	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
		2025			2025			2025			2025			2024			2025			2024
SBA servicing assets @ beginning of the quarter/year	$	6,342		$	6,609		$	6,708		$	6,909		$	7,192		$	6,909		$	7,673
Newly added SBA servicing assets from SBA loans sold		405			268			355			361			355			1,389			1,682
Regular quarterly/annual servicing assets amortization		(279	)		(288	)		(299	)		(305	)		(315	)		(1,171	)		(1,314	)
SBA servicing assets amortized from SBA loans paid off/charged off		(327	)		(247	)		(155	)		(257	)		(323	)		(986	)		(1,132	)
Subtotal before impairment		6,141			6,342			6,609			6,708			6,909			6,141			6,909
Reversal of valuation allowance on servicing assets		-			-			-			-			-			-			-
SBA servicing assets @ the end of the quarter/year	$	6,141		$	6,342		$	6,609		$	6,708		$	6,909		$	6,141		$	6,909

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	Balance		%		Balance		%		Balance		%		Balance		%		Balance		%
Noninterest-bearing demand	$	301,775	17.7	%	$	280,351	16.8	%	$	309,160	20.3	%	$	295,857	20.0	%	$	304,005	20.5	%
Interest-bearing demand		5,813	0.3	%		5,745	0.3	%		10,698	0.7	%		6,588	0.5	%		7,541	0.5	%
NOW & MMDA		310,147	18.2	%		305,649	18.4	%		274,578	18.0	%		257,474	17.4	%		269,475	18.2	%
Savings		87,036	5.1	%		83,368	5.0	%		85,609	5.6	%		81,425	5.5	%		84,727	5.7	%
TCDs of $250K and under		433,873	25.4	%		419,821	25.2	%		319,209	20.9	%		315,312	21.3	%		324,041	21.9	%
TCDs of $250K over		473,025	27.7	%		471,048	28.3	%		403,676	26.5	%		377,486	25.6	%		345,045	23.3	%
Wholesale deposits		95,658	5.6	%		100,289	6.0	%		121,990	8.0	%		143,077	9.7	%		145,738	9.9	%
Total Deposits	$	1,707,327	100.0	%	$	1,666,271	100.0	%	$	1,524,920	100.0	%	$	1,477,219	100.0	%	$	1,480,572	100.0	%
Recap:
Noninterest-bearing demand	$	301,775	17.7	%	$	280,351	16.8	%	$	309,160	20.3	%	$	295,857	20.0	%	$	304,005	20.5	%
Interest-bearing demand		5,813	0.3	%		5,745	0.3	%		10,698	0.7	%		6,588	0.5	%		7,541	0.5	%
NOW & MMDA		310,147	18.2	%		305,649	18.4	%		274,578	18.0	%		257,474	17.4	%		269,475	18.2	%
Savings		87,036	5.1	%		83,368	5.0	%		85,609	5.6	%		81,425	5.5	%		84,727	5.7	%
TCDs of $250K and under		433,873	25.4	%		419,821	25.2	%		319,209	20.9	%		315,312	21.3	%		324,041	21.9	%
Core Deposits		1,138,644	66.7	%		1,094,934	65.7	%		999,254	65.5	%		956,656	64.7	%		989,789	66.8	%
TCDs of $250K over		473,025	27.7	%		471,048	28.3	%		403,676	26.5	%		377,486	25.6	%		345,045	23.3	%
Nonreciprocal ICS MMDA		-	-			-	-			-	-			-	-			-	-
Wholesale deposits		95,658	5.6	%		100,289	6.0	%		121,990	8.0	%		143,077	9.7	%		145,738	9.9	%
Noncore Deposits		568,683	33.3	%		571,337	34.3	%		525,666	34.5	%		520,563	35.3	%		490,783	33.1	%
Total Deposits	$	1,707,327	100.0	%	$	1,666,271	100.0	%	$	1,524,920	100.0	%	$	1,477,219	100.0	%	$	1,480,572	100.0	%

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10
(Dollars in thousands)
		4th Qtr.			3rd Qtr.			2nd Qtr.			1st Qtr.			4th Qtr.
			2025			2025			2025			2025			2024
Allowance for Credit Losses
	Balance at beginning of period	$	16,151		$	15,461		$	14,850		$	15,959		$	15,948
	Provision for credit losses		210			500			590			430			-
	Charge-offs		(27	)		-			(143	)		(1,567	)		-
	Recoveries		11			190			164			28			11
	Balance at the end of period	$	16,345		$	16,151		$	15,461		$	14,850		$	15,959
Nonperforming Assets:¹
	Over 90 days still accruing	$	-		$	1,237		$	1,487		$	-		$	1,819
	Nonaccrual loans		15,960			14,865			12,213			8,545			9,711
	Total nonperforming loans		15,960			16,102			13,700			8,545			11,530
	Other real estate owned	$	5,651			297			2,999			3,130			521
	Total nonperforming assets	$	21,611		$	16,399		$	16,699		$	11,675		$	12,051
Classified Assets:¹
	Substandard	$	29,666		$	31,465		$	30,442		$	20,827		$	22,077
	Doubtful		-			-			-			-			-
	Loss
	Total classified loans	$	29,666		$	31,465		$	30,442		$	20,827		$	22,077
	Other real estate owned	$	5,651			297			2,999			3,130			521
	Total classified assets	$	35,317		$	31,762		$	33,441		$	23,957		$	22,598
Performing modified loans:¹		$	1,176		$	160		$	160		$	635		$	649
Delinquent Loans:¹
	Loans 30-89 days past due	$	7,563		$	7,478		$	11,548		$	19,010		$	7,614
	90 days or more past due and still accruing		-			1,237			1,487			-			1,819
	Nonaccrual		15,960			14,865			12,213			8,545			9,711
	Total delinquent loans	$	23,523		$	23,580		$	25,248		$	27,555		$	19,144
Asset Quality Ratios:
	Net (recoveries) charge-offs to average loans²		0.00	%		(0.05	%)		(0.01	%)		0.43	%		0.00	%
	Nonaccrual loans to loans held-for-investment		1.14	%		1.17	%		0.96	%		0.68	%		0.78	%
	Nonperforming loans to loans held-for-investment		1.14	%		1.27	%		1.07	%		0.68	%		0.93	%
	Nonperforming assets to total assets		1.08	%		0.84	%		0.92	%		0.64	%		0.66	%
	Classified loans to loans held-for-investment		2.12	%		2.47	%		2.38	%		1.66	%		1.78	%
	Classified loans to Tier 1 and ACL		10.49	%		11.27	%		11.07	%		7.69	%		8.22	%
	Classified assets to total assets		1.76	%		1.62	%		1.84	%		1.32	%		1.24	%
	Classified assets to Tier 1 and ACL		12.49	%		11.37	%		12.16	%		8.84	%		8.42	%
	ACL to loans held-for-investment		1.17	%		1.27	%		1.21	%		1.18	%		1.29	%
	ACL to nonaccrual loans		102.41	%		108.65	%		126.59	%		173.79	%		164.34	%
	ACL to nonperforming loans		102.41	%		100.30	%		112.85	%		173.79	%		138.41	%
	ACL to nonperforming assets		75.63	%		98.49	%		92.59	%		127.19	%		132.43	%
	Texas ratio ³		7.64	%		5.87	%		6.07	%		4.31	%		4.49	%

^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		Adequately Capitalized		December 31,			September 30,			June 30,			March 31,			December 31,
	Regulatory		BASEL III
	Requirement		Fully Phased In			2025			2025			2025			2025			2024
Leverage ratio
Company	N/A		N/A			13.25	%		14.34	%		14.48	%		14.04	%		14.12	%
Bank	5.00	%	4.00	%		13.23	%		14.32	%		14.45	%		14.00	%		14.07	%
Common equity tier 1 risk-based capital ratio
Company	N/A		N/A			19.03	%		19.26	%		18.98	%		19.10	%		19.02	%
Bank	6.50	%	7.00	%		19.01	%		19.22	%		18.94	%		19.05	%		18.95	%
Tier 1 risk-based capital ratio
Company	N/A		N/A			19.03	%		19.26	%		18.98	%		19.10	%		19.02	%
Bank	8.00	%	8.50	%		19.01	%		19.22	%		18.94	%		19.05	%		18.95	%
Total risk-based capital ratio
Company	N/A		N/A			20.22	%		20.46	%		20.13	%		20.23	%		20.23	%
Bank	10.00	%	10.50	%		20.20	%		20.42	%		20.09	%		20.18	%		20.16	%
Tangible common equity/total assets						13.29	%		13.43	%		14.32	%		14.13	%		13.93	%
Tangible common equity per share					$	25.16		$	24.85		$	24.51		$	24.18		$	23.85

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)
	Three Months Ended
	December 31, 2025							September 30, 2025							June 30, 2025							March 31, 2025							December 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	$	1,475,995		$	24,828	6.67	%	$	1,463,183		$	24,653	6.68	%	$	1,461,584		$	24,171	6.63	%	$	1,437,846		$	23,618	6.66	%	$	1,432,216		$	24,863	6.91	%
Investment securities ²		65,279			676	4.11	%		66,623			707	4.21	%		64,990			686	4.23	%		61,930			667	4.37	%		62,714			696	4.42	%
Interest-earning deposits at the FRB and other banks		420,854			4,213	3.97	%		254,301			2,826	4.41	%		214,514			2,383	4.46	%		275,512			3,029	4.46	%		253,524			3,048	4.78	%
Other earning assets		11,011			202	7.28	%		11,011			201	7.24	%		11,011			200	7.29	%		11,011			203	7.48	%		11,011			211	7.62	%
Total interest-earning assets ²		1,973,139			29,919	6.02	%		1,795,118			28,387	6.27	%		1,752,099			27,440	6.28	%		1,786,299			27,517	6.25	%		1,759,465			28,818	6.52	%
NONINTEREST-EARNING ASSETS
Cash and due from banks		11,799							14,221							11,512							12,060							12,349
Other noninterest-earning assets		40,927							40,578							44,078							41,549							35,479
Total noninterest-earning assets		52,726							54,799							55,590							53,609							47,828
Less: Allowance for credit losses		(16,152	)						(15,577	)						(14,899	)						(15,569	)						(15,953	)
TOTAL ASSETS	$	2,009,713						$	1,834,340						$	1,792,790						$	1,824,339						$	1,791,340
INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,432		$	4	0.20	%	$	9,682		$	5	0.20	%	$	9,957		$	5	0.20	%	$	9,622		$	5	0.20	%	$	11,147		$	6	0.20	%
Money market		324,316			2,990	3.66	%		282,010			2,699	3.80	%		263,197			2,540	3.87	%		265,687			2,555	3.90	%		244,258			2,508	4.08	%
Savings		83,166			644	3.07	%		84,339			653	3.07	%		83,261			633	3.05	%		83,978			638	3.08	%		81,423			661	3.23	%
Time deposits		998,575			10,573	4.20	%		863,224			9,251	4.25	%		847,092			9,159	4.34	%		830,672			9,331	4.56	%		815,866			9,828	4.79	%
Total interest-bearing deposits		1,415,489			14,211	3.98	%		1,239,255			12,608	4.04	%		1,203,507			12,337	4.11	%		1,189,959			12,529	4.27	%		1,152,694			13,003	4.49	%
Borrowings		2			-	-			-			-	-			4,122			8	0.78	%		48,889			115	0.95	%		50,001			118	0.94	%
Total interest-bearing liabilities		1,415,491			14,211	3.98	%		1,239,255			12,608	4.04	%		1,207,629			12,345	4.10	%		1,238,848			12,644	4.14	%		1,202,695			13,121	4.34	%
Noninterest-bearing deposits		294,726							301,776							296,496							298,579							309,662
Other liabilities		32,412							29,249							28,026							29,428							26,090
Stockholders' equity		267,084							264,060							260,639							257,484							252,893
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,009,713						$	1,834,340						$	1,792,790						$	1,824,339						$	1,791,340
Net interest income²				$	15,708						$	15,779						$	15,095						$	14,873						$	15,697
Net interest spread						2.04	%						2.23	%						2.18	%						2.11	%						2.18	%
Effect of noninterest-bearing sources						1.12	%						1.26	%						1.28	%						1.27	%						1.37	%
Net interest margin²						3.16	%						3.49	%						3.46	%						3.38	%						3.55	%
Cost of deposits	$	1,710,215		$	14,211	3.30	%	$	1,541,031		$	12,608	3.25	%	$	1,500,003		$	12,337	3.30	%	$	1,488,538		$	12,529	3.41	%	$	1,462,356		$	13,003	3.54	%
Cost of funds	$	1,710,217		$	14,211	3.30	%	$	1,541,031		$	12,608	3.25	%	$	1,504,125		$	12,345	3.29	%	$	1,537,427		$	12,644	3.34	%	$	1,512,357		$	13,121	3.45	%

^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
	December 31, 2025					September 30, 2025					June 30, 2025					March 31,2025					December 31, 2024
	Amount			Yield		Amount			Yield		Amount			Yield		Amount			Yield		Amount			Yield
Contractual yield	$	24,154		6.49	%	$	24,171		6.55	%	$	23,731		6.51	%	$	22,866		6.45	%	$	24,036		6.68	%
SBA discount accretion		883		0.24	%		728		0.20	%		588		0.16	%		781		0.22	%		818		0.23	%
Prepayment penalties and late fees		50		0.01	%		51		0.01	%		53		0.01	%		136		0.04	%		64		0.02	%
Amortization of net deferred costs		(259	)	-0.07	%		(297	)	-0.08	%		(201	)	-0.05	%		(165	)	-0.05	%		(55	)	-0.02	%
As reported yield on loans	$	24,828		6.67	%	$	24,653		6.68	%	$	24,171		6.63	%	$	23,618		6.66	%	$	24,863		6.91	%

MARGIN ANALYSIS (Unaudited) - Table 14
(Dollars in thousands)
	Twelve Months Ended
	December 31,2025							December 31,2024
	Avg Balance			Interest		Yield		Avg Balance			Interest		Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans Receivable ¹	$	1,459,766		$	97,270	6.66	%	$	1,423,464		$	100,013	7.03	%
Investment securities ²		64,720			2,735	4.23	%		65,131			2,728	4.19	%
Interest-earning deposits at the FRB and other banks		291,592			12,451	4.27	%		191,519			9,999	5.22	%
Other earning assets		11,011			806	7.32	%		11,011			825	7.49	%
Total interest-earning assets ²		1,827,089			113,262	6.20	%		1,691,125			113,565	6.72	%
NONINTEREST-EARNING ASSETS
Cash and due from banks		12,403							12,489
Other noninterest-earning assets		41,718							33,538
Total noninterest-earning assets		54,121							46,027
Less: Allowance for credit losses		(15,551	)						(15,840	)
TOTAL ASSETS	$	1,865,659						$	1,721,312
INTEREST-BEARING DEPOSITS
Interest-bearing demand	$	9,673		$	19	0.20	%	$	11,671		$	24	0.20	%
Money market		283,958			10,784	3.80	%		235,228			9,620	4.09	%
Savings		83,686			2,568	3.07	%		81,936			2,774	3.39	%
Time deposits		885,291			38,314	4.33	%		786,168			38,183	4.86	%
Total interest-bearing deposits		1,262,608			51,685	4.09	%		1,115,003			50,601	4.54	%
Borrowings		13,083			123	0.94	%		50,004			470	0.94	%
Total interest-bearing liabilities		1,275,691			51,808	4.06	%		1,165,007			51,071	4.38	%
Noninterest-bearing deposits		297,894							288,776
Other liabilities		29,726							21,731
Stockholders' equity		262,348							245,798
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,865,659						$	1,721,312
Net interest income²				$	61,454						$	62,494
Net interest spread						2.14	%						2.34	%
Effect of noninterest-bearing sources						1.22	%						1.36	%
Net interest margin²						3.36	%						3.70	%
Cost of deposits	$	1,560,502		$	51,685	3.31	%	$	1,403,779		$	50,601	3.60	%
Cost of funds	$	1,573,585		$	51,808	3.29	%	$	1,453,783		$	51,071	3.51	%

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

COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15
(Dollars in thousands)
	Twelve Months Ended
	December 31, 2025					December 31, 2024
	Amount			Yield		Amount			Yield
Contractual yield	$	94,922		6.50	%	$	96,989		6.81	%
SBA discount accretion		2,980		0.20	%		3,286		0.24	%
Prepayment penalties and late fees		290		0.02	%		351		0.02	%
Amortization of net deferred costs		(922	)	-0.06	%		(613	)	-0.04	%
As reported yield on loans	$	97,270		6.66	%	$	100,013		7.03	%