CBB Bancorp, Inc. Reports Second Quarter 2026 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 $4.9 million for the second quarter 2026, or $0.46 per diluted share down from $5.7 million in the first quarter 2026, or $0.53 per diluted share. The decrease in net income for the current quarter was primarily due to higher noninterest expense and lower noninterest income, partially offset by higher net interest income.

Second Quarter 2026 Highlights

• Return on Assets of 1.00%

• Net income of $4.9 million, or $0.46 per diluted share

• Loan originations of $152.0 million

• SBA loan sales of $37.1 million at an average premium of 8.2%

Seungho Park, President and CEO, said, “We delivered solid second quarter results while continuing to execute on our strategic growth initiatives. The opening of our new branch in Flushing, New York, represents another important step in expanding CBB’s presence in attractive markets and strengthening our ability to serve existing and new customers, especially customers in non-Korean ethnic markets. During the quarter, our team generated the highest level of loan originations in four years and continued to produce meaningful gains from the sale of the guaranteed portions of SBA loans. At the same time, we remain focused on disciplined balance sheet management, including reducing deposit costs, which contributed to an improvement in our net interest margin. We believe these results reflect the strength of our franchise, the dedication of our employees, and our continued focus on profitable and relationship-driven growth.”

INCOME STATEMENT

Net Interest Income

Net interest income for the second quarter 2026 was $15.4 million, an increase of $538 thousand, or 3.6% from the prior quarter and $323 thousand, or 2.1% from the second quarter 2025. The net interest margin for the second quarter 2026 was 3.22%, up from 3.13% for the first quarter of 2026, but down from 3.46% for the second quarter of 2025. The increase in net interest margin from the prior quarter was primarily attributable to the decrease in costs on interest-bearing deposits outpacing the decrease in yields on interest earning assets and having one more day in the quarter.

The overall cost of funds for the second quarter of 2026 was 3.16%, down from 3.25% for the first quarter of 2026 and 3.29% for the second quarter of 2025.

Provision for Credit Losses

The Company recorded a total provision for credit losses of $500 thousand for the second quarter of 2026, essentially equal to the first quarter of 2026 and slightly lower than the $590 thousand in the second quarter of 2025. The provision to increase the allowance for credit losses (“ACL”) was primarily attributable to one specific credit, while improved asset quality metrics offset the impact of portfolio growth during the current quarter. The ACL to total loans ratio decreased one basis point to 1.19% from the prior quarter.

Noninterest Income

Noninterest income for the second quarter of 2026 was $3.1 million, down from $3.6 million in the prior quarter, but up from $2.1 million in the same quarter of 2025. The quarter-over-quarter decrease in noninterest income was primarily the result of a lower gain on sales of loans of $521 thousand.

Noninterest Expenses

Noninterest expenses totaled $11.2 million for the second quarter of 2026, up from $10.1 million in the prior quarter and $10.3 million in the second quarter of 2025. Noninterest expense increased by $1.0 million quarter-over-quarter primarily due to higher salaries and employee benefits costs of $793 thousand and other operating expenses of $215 thousand.

The efficiency ratio was 60.55%, up from 54.85% in the prior quarter and 59.99% in the year-ago quarter. The efficiency ratio increase from the prior quarter was primarily due to a higher noninterest expense within the salaries and employee benefits category and lower noninterest income from lower gains on SBA loan sales.

Income Taxes

The Company’s effective tax rate for the second quarter of 2026 was 27.8%, compared to 27.7% for the first quarter of 2026 and 29.8% for the second quarter of 2025.

BALANCE SHEET

Investment Securities

Investment securities were $63.5 million at June 30, 2026, a decrease of $1.2 million, or 1.9%, from March 31, 2026, and a decrease of $2.1 million, or 3.1%, from June 30, 2025. The quarterly decline was mainly driven by scheduled principal paydowns and a strategic decision to limit reinvestment during the period.

Loans Receivable

Loans receivable, including loans held-for-sale, totaled $1.52 billion at June 30, 2026, an increase of $57.3 million, or 3.9%, from the prior quarter and $61.9 million, or 4.2%, from a year earlier. The growth from the previous quarter reflected continued strong loan production, partially offset by loan sales.

The Company’s loan originations remained robust, totaling $152.0 million for the quarter, up from $107.9 million in the prior quarter.

Allowance for Credit Losses and Asset Quality

The ACL was $17.4 million at June 30, 2026, representing 1.19% of loans held-for-investment, compared to $16.9 million, or 1.20%, at March 31, 2026, and $15.5 million, or 1.21%, at June 30, 2025.

Total nonperforming assets at June 30, 2026, were $21.6 million down from $22.7 million at March 31, 2026, but up from $ 17.0 million at June 30, 2025, primarily driven by an increase in nonaccrual loans.

The ACL coverage to nonperforming assets was 80.51% at June 30, 2026, up from 74.19% in the previous quarter, but down from 92.59% in the year-ago quarter.

SBA Loans Held-for-Sale

Total SBA loans held-for-sale were $66.5 million as of June 30, 2026, up from $62.2 million at March 31, 2026, but down from $184.0 million at June 30, 2025.

During the quarter, the Bank sold $37.1 million in SBA loans at an average premium of 8.2%, down from $48.2 million sold at an average premium of 8.0% in the prior quarter, but up from $17.6 million sold at 8.1% average premium in the same quarter of 2025.

Deposits

Total deposits were $1.66 billion at June 30, 2026, a decrease of $23.1 million, or 1.4%, from the prior quarter, but up $138.4 million, or 9.1%, from a year earlier. The decrease was primarily in the MMDA and wholesale deposits.

Borrowings

The Bank had no outstanding borrowings as of June 30, 2026, consistent with the position since the second quarter of 2025.

Capital

Stockholders’ equity was $276.6 million at June 30, 2026, up $3.6 million, or 1.3%, from the prior quarter. Tangible book value per share was $25.91, an increase of $0.34, or 1.3%, quarter-over-quarter.

At quarter-end, Common Equity Tier 1 Risk-Based Capital Ratios were 18.73% for the Company and 18.65% for the Bank. Total Risk-Based Capital Ratios were 19.94% and 19.87%, respectively, and Leverage Ratios were 13.99% for the Company and 13.93% 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 June 30, 2026, the Bank had twelve full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas, Honolulu, Hawaii, Bergen County in New Jersey, and Queens County in New York. Three SBA regional offices in Los Angeles, Dallas, and Bergen Counties, and loan production offices in California, Georgia, Texas, and Virginia. For additional information, please go to www.cbb-bank.com under the tab “About Us” and select “Investor Relations” to see the 2Q 2026 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.