FRESNO, Calif., July 21, 2026 (GLOBE NEWSWIRE) — FFB Bancorp (the “Company”) (OTCQX: FFBB), the parent company of FFB Bank (the “Bank”), today reported net income of $5.48 million, or $1.88 per diluted share, for the second quarter of 2026, compared to $4.59 million, or $1.53 per diluted share, for the first quarter of 2026, and $6.04 million, or $1.94 per diluted share, for the second quarter of 2025.
For the six months ended June 30, 2026, net income was $10.06 million, or $3.40 per diluted share, compared to $14.13 million, or $4.50 per diluted share, for the same period in 2025. All results are unaudited.
Second Quarter 2026 Summary: As of, or for the quarter ended June 30, 2026, compared to the quarters ended March 31, 2026, and June 30, 2025, respectively:
- Total portfolio of loans increased 4% to $1.26 billion from the previous quarter and increased 15% when compared to the same quarter for the prior year.
- Total deposits increased 3% to $1.38 billion from the previous quarter and increased 12% when compared to the same quarter of the prior year.
- Total assets increased 3% to $1.62 billion from the previous quarter and increased 10% when compared to the same quarter of the prior year.
- Shareholder equity remained stable at $182.78 million from the previous quarter’s $182.84 million and increased 5% when compared to the same quarter for the prior year.
- Book value per common share increased 3% to $63.80, from $61.85 in the previous quarter, and increased 12% from $56.87 the same quarter of the prior year.
- Operating revenue (net interest income, before the provision for credit losses, plus non-interest income) increased 5% to $24.05 million from the previous quarter and decreased 12% when compared to the same quarter of the prior year.
- Net interest margin decreased 18 basis points to 4.71% from the previous quarter and decreased 38 basis points when compared to the same quarter of the prior year.
- Provision for credit loss expense increased to $1.54 million from $776,000 in the previous quarter and decreased 51% from $3.16 million the same quarter of the prior year.
- Return on average equity (“ROAE”) was 11.99%.
- Return on average assets (“ROAA”) was 1.35%.
- The Company’s tangible common equity ratio was 11.30%, while the Bank’s regulatory leverage capital ratio was 12.20%, and the total risk-based capital ratio was 16.83% at June 30, 2026.
“Our second quarter results highlight the momentum we continue to see across the franchise, with strong growth in loans, deposits, and total assets despite a challenging operating environment,” said Steve Miller, President & CEO. “Importantly, our year to date 5.37% loan growth was achieved while also selling more than $94 million of loans, underscoring the strength of our production capabilities and customer relationships. As we continue to scale our technology-enabled operating model, expand our funding base, and deepen client relationships, we believe we are well positioned to drive sustainable earnings growth and create long-term shareholder value.”
“During the quarter we’ve continued to make progress on the matters outlined in our consent order, although ultimate compliance will be determined by our regulators. We are confident we can find resolution with these items going forward.”
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 June 30, 2026, the Company had repurchased 154,344 shares, at an average price of $85.69, totaling $13.23 million. This represented approximately 6.77% of total shareholders’ equity at June 30, 2026. During the second quarter of 2026 the Company repurchased 91,577 shares, at an average price of $85.63, totaling $7.84 million. These purchases represent approximately 3.97% of total shareholders’ equity at June 30, 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 June 30, 2026:
Operating revenue, consisting of net interest income before the provision for credit losses and non-interest income, increased 5% to $24.05 million for the second quarter of 2026, compared to $22.91 million for the first quarter of 2026, and decreased 12% compared to $27.35 million for the second quarter a year ago. The quarter over quarter increase in operating revenue for the second quarter of 2026 was primarily the result of increases in loan and investment interest income, gain on sale of loans, and merchant services income, partially offset by an increase in interest expense. The decrease from the second quarter a year ago was primarily the result of a decrease in non-interest income, specifically the decrease in merchant services income.
Net interest income, before the provision for credit losses, increased $256,000 to $18.08 million for the second quarter of 2026, from $17.82 million recorded in the last quarter, and decreased $27,000 when compared to $18.11 million recorded in the same quarter a year ago. The Company’s net interest margin (“NIM”) decreased 18 basis points to 4.71% for the second quarter of 2026, compared to 4.89% for the prior quarter, and decreased by 38 basis points from 5.09% for the second quarter of 2025. “NIM declined during the quarter as funding costs continued to rise and due to the recognition of $423,000 in nonrecurring interest reversals related to loans migrating to non-accrual. The interest income reversals reduced second quarter NIM by 11bps. Excluding those nonrecurring reversals, underlying earning asset yields remained relatively stable. Looking ahead, our priorities are increasing core deposits, reducing wholesale funding dependence, and realizing the benefits of recent loan growth, which positions margin performance to improve over time,” said Bhavneet Gill, EVP & Chief Financial Officer. “
The yield on earning assets was 6.00% for the second quarter of 2026, compared to 6.11% for the previous quarter, and 6.18% for the second quarter a year ago. The cost to fund earning assets increased to 1.28% for the second quarter of 2026 compared to 1.22% for the previous quarter, and 1.09% for the same quarter a year earlier. The increase in the cost to fund earnings assets was primarily the result of a continued reliance on wholesale funding due to the bank achieving strong loan production over the last few quarters but lagging its planned core deposit growth. Wholesale funding carried a weighted average rate of 3.95% and 4.01% for the second quarter of 2026 and first quarter of 2026, 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 $5.97 million for the second quarter of 2026, compared to $5.09 million for the previous quarter, and $9.24 million for the second quarter of 2025. The increase in non-interest income, compared to the first quarter of 2026, was primarily driven by an increase in merchant services income and gain on sale of loans revenue. Merchant services income increased 16% to $2.91 million when compared to the previous quarter as processing volumes increased. There was a $1.37 million gain on the sale of loans during the second quarter of 2026, compared to a gain on the sale of loans of $941,000 in the previous quarter, and a gain on the sale of loans of $1.45 million during the second quarter 2025. The gain on the sale of loans during the quarter was primarily the result of $6.02 million in SBA, $60.71 million in multifamily, and $5.94 million in USDA loan sales that were completed during the quarter. These sales contributed $376,000, $421,000, and $355,000 in gain respectively.
Merchant services revenue increased 16% to $2.91 million when compared to the first quarter of 2026 and decreased 56% from $6.61 million when compared to the second quarter of 2025. The decrease over prior year was attributed to planned ISO partner exits, a reduction in ISO partner sponsorship volumes, and the reduction in FFB Payments revenue due to pricing competition. The increase in merchant services revenue over the prior quarter was primarily driven by increased processing volume from our remaining ISO partners who are now showing improved sales momentum.
| Merchant ISO Processing Volumes (in thousands) | ||||||||||
| Source | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |||||
| ISO Partner Sponsorship | $ | 2,877,437 | $ | 2,477,113 | $ | 2,773,101 | $ | 3,099,287 | $ | 5,347,695 |
| FFB Payments- Sub-ISO Merchants | 22,165 | 28,520 | 21,679 | 19,023 | 20,766 | |||||
| FFB Payments- Direct Merchants | 34,368 | 19,587 | 26,347 | 28,573 | 71,746 | |||||
| Total volume | $ | 2,933,970 | $ | 2,525,220 | $ | 2,821,127 | $ | 3,146,883 | $ | 5,440,207 |
| Merchant ISO Processing Revenues (in thousands) | |||||||||||||
| Source of Revenue | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | ||||||||
| Net Revenue*: | |||||||||||||
| ISO Partner Sponsorship | $ | 1,332 | $ | 1,188 | $ | 1,339 | $ | 1,937 | $ | 2,654 | |||
| Gross Revenue: | |||||||||||||
| FFB Payments- Sub-ISO Merchants | 793 | 684 | 726 | 633 | 727 | ||||||||
| FFB Payments- Direct Merchants | 780 | 624 | 580 | 640 | 3,228 | ||||||||
| 1,573 | 1,308 | 1,306 | 1,273 | 3,955 | |||||||||
| Gross Expense: | |||||||||||||
| FFB Payments- Sub-ISO Merchants | 689 | 724 | 883 | 780 | 708 | ||||||||
| FFB Payments- Direct Merchants | 657 | 593 | 720 | 801 | 2,179 | ||||||||
| 1,346 | 1,317 | 1,603 | 1,581 | 2,887 | |||||||||
| Net Revenue: | |||||||||||||
| FFB Payments- Sub-ISO Merchants | 104 | (40 | ) | (157 | ) | (147 | ) | 19 | |||||
| FFB Payments- Direct Merchants | 123 | 31 | (140 | ) | (161 | ) | 1,049 | ||||||
| FFB Payments Net Revenue | 227 | (9 | ) | (297 | ) | (308 | ) | 1,068 | |||||
| Net Merchant Services Income: | $ | 1,559 | $ | 1,179 | $ | 1,042 | $ | 1,629 | $ | 3,722 | |||
*ISO Partner 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 second quarter of 2026, net of merchant services operating expense, increased 32% when compared to the first quarter of 2026.
Total deposit fee income increased 10% to $1.00 million for the second quarter of 2026 from the $912,000 recorded in the previous quarter and increased 18% from the $854,000 recorded in the second quarter of 2025. The increase in the current quarter is primarily driven by $153,000 in revenue generated from our new FX platform launched in 2025.
Non-interest expense decreased 6% to $14.96 million for the second quarter of 2026, compared to $15.98 million from the previous quarter, and decreased 5%, compared to the $15.77 million recorded for the second quarter 2025. The decrease on a year-over-year comparison was driven by decreases in merchant services operating expense. Compared to the first quarter of 2026, the decrease in non-interest expense was attributed to decreases in salaries and employee benefit expense and other operating expenses, partially offset by an increase in professional fees.
Salaries and employee benefits increased 4% to $8.34 million for the second quarter of 2026, compared to $8.00 million for the second 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 191 at June 30, 2026, compared to 181 full-time employees a year earlier. Total salaries and employee benefits decreased 7% from $9.01 million in the previous quarter. The quarterly decrease in salaries and employee benefits expense was primarily due to a $506,000 reduction in payroll tax expense from payout of annual bonuses in the first quarter.
Occupancy and equipment expenses increased 37% from a year ago, representing 3% of non-interest expense, and decreased 10% from the previous quarter. These increases year-over-year are the result of additional rent and other expenses related to office expansion. During the quarter expenses related to furniture and other equipment decreased. Merchant operating expense totaled $1.35 million for the second quarter of 2026, compared to $2.89 million for the second quarter of 2025 and $1.32 million for the previous quarter. The decrease in merchant operating expense, compared to the second 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 22% to $1.23 million for the second quarter of 2026, compared to $1.01 million for the second quarter 2025. Total professional fees increased 20% from $1.03 million in the previous quarter. “Current quarter professional fees included increased audit fees and consulting fees, partially offset by a reduction in legal fees. The increase in consulting and other professional fees is primarily driven by new product and service development the Bank is planning to launch to support our long-term strategy,” noted Gill.
Data and technology expenses increased 5% to $1.62 million for the second quarter of 2026, compared to $1.53 million for the second quarter 2025. Data and technology expenses decreased 6% from $1.73 million in the previous quarter. The increase in data and technology expense year over year is primarily due to new products and services and enhancements to the Company’s AML/CFT, compliance, and merchant services programs. “Our strategy continues to be focused on maximizing existing systems while selectively deploying AI and automation to improve productivity and avoid unnecessary headcount growth,” said Miller. “The decreased cost in the current quarter is the result of 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 2% or $36,000 to $1.95 million from a year earlier and decreased $413,000 from the previous quarter. The quarterly decrease resulted from a recovery of $120,000 in previously recorded operating losses and a $320,000 decrease in director fee expense.
The efficiency ratio was 62.20% for the second quarter of 2026, compared to 57.15% for the same quarter a year ago, and 69.89% for the previous quarter, which is primarily the result of changes in other operating expenses. This ratio can also fluctuate period-over-period based on changes in merchant services’ gross revenues and associated expenses. In addition to the primary efficiency ratio, the Company also calculates an adjusted efficiency ratio, a non-GAAP measure, where merchant services’ gross expense is netted against merchant services’ revenue in non-interest income. This expense would traditionally be included in non-interest expense. The adjusted efficiency ratio was 59.96% for the second quarter of 2026, compared to 52.14% for the same quarter a year ago, and 68.05% 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.
Six months ended June 30, 2026:
For the six months ended June 30, 2026, operating revenue decreased 16% to $46.97 million, compared to $55.83 million for the same period in 2025. For the six months ended June 30, 2026, net interest income before the provision for credit losses decreased 3% to $35.90 million, compared to $37.01 million for the same period in 2025. These decreases in revenue are attributed to increases in interest bearing liabilities and cost of funds, though partially offset by the growth in the loan portfolio. For the six months ended June 30, 2026, the yield on earning assets was 6.05% compared to 6.24% for the same period in 2025, while the cost to fund earning assets was 1.25% for the six months ended June 30, 2026, compared to 1.02% for the same period in 2025.
For the six months ended June 30, 2026, non-interest income decreased 41% to $11.07 million compared to $18.82 million for the same period in 2025. The year-over-year decrease in non-interest income is primarily attributed to the decrease of merchant services income; the result of strategic partner exits that occurred in 2025. This decrease was partially offset by increases in the gains recorded on the sale of loans and other operating income.
For the six months ended June 30, 2026, operating expenses decreased 4% to $30.94 million from $32.24 million for the same period in 2025. Salaries and employee benefits expense increased 8% to $17.35 million as a result of the increase in FTE. Other operating expenses decreased 10% to $4.31 million due to lower marketing and operating losses. There was a 56% decrease in merchant services operating expenses, driven by the decrease in processing volumes, to $2.66 million, which represents 9% of total operating expenses for the six months ended June 30, 2026.
For the six months ended June 30, 2026, the efficiency ratio was 65.95%, compared to 57.49% for the same period ended June 30, 2025. The adjusted efficiency ratio was 63.90%, compared to 52.34% for the same period ended June 30, 2025.
Balance Sheet Review
Total assets increased 10% to $1.62 billion at June 30, 2026, compared to $1.47 billion at June 30, 2025, and increased 3% compared to $1.57 billion at March 31, 2026.
The total loan portfolio increased 15%, or $168.74 million, to $1.26 billion, compared to $1.09 billion at June 30, 2025, and increased 4% from the $1.21 billion reported at March 31, 2026. “We’re encouraged by 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, “In the first half of 2026 we approved total commitments of $226.63 million 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 continue to right-size the funding side to maximize our NIM for the remainder of the year.”
Commercial real estate loans increased 6% year-over-year to $724.17 million, representing 57% of total loans at June 30, 2026. The CRE portfolio includes $61.98 million in short-term bridge loans for transitional projects of multifamily 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 170% from a year ago to $34.49 million, representing 3% of total loans, while residential RE 1-4 family loans totaled $42.81 million, or 3% of loans, at June 30, 2026, compared to $17.07 million one year ago.
The commercial and industrial (C&I) portfolio increased 16% to $300.53 million, at June 30, 2026, compared to $260.08 million a year earlier, and increased 3% from $291.74 million at March 31, 2026. C&I loans represented 24% of total loans at June 30, 2026.
Agriculture loans of $116.96 million represented 9% of the loan portfolio at June 30, 2026. At June 30, 2026, the SBA, USDA, and other government agencies guaranteed loans totaled $62.99 million, or 5% of the loan portfolio.
Investment securities totaled $260.91 million at June 30, 2026, compared to $254.18 million a year earlier, and increased $7.96 million from $252.96 million at March 31, 2026. At June 30, 2026, the Company had a net unrealized loss position on its investment securities portfolio of $17.99 million, compared to $25.41 million a year earlier, and $20.58 million at March 31, 2026. The Company’s investment securities portfolio had an effective duration of 6.15 years at June 30, 2026, compared to 6.26 years at June 30, 2025, and 6.53 years at March 31, 2026. “At the end of the second quarter, we acquired the remaining investment associated with our $10.0 million subordinated debt at approximately a 9% discount to par value,” noted Gill. “We currently expect to redeem the debt at par during the third quarter of 2026, which will result in a gain on the investment while also eliminating the associated debt obligation and reducing future interest expense.”
Total deposits increased 12%, or $149.94 million, to $1.38 billion at June 30, 2026, compared to $1.23 billion from a year earlier, and increased 3% from $1.34 billion when compared to March 31, 2026. Non-interest bearing demand deposits decreased 4% to $726.64 million at June 30, 2026, compared to $759.30 million at June 30, 2025, and decreased 2% from $740.01 million at March 31, 2026 as a result of a shift in deposit balances migrating to interest bearing categories. Non-interest bearing demand deposits represented 52% of total deposits at June 30, 2026. Certificates of deposits increased 2%, or $2.67 million, during the quarter. Wholesale deposits, which primarily consist of brokered CDs and ICS one-way buy deposits, totaled $156.75 million at June 30, 2026, compared to $103.94 million from a year earlier, and $143.25 million at March 31, 2026. 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 June 30, 2026 are $71.97 million from ISO partners for merchant reserves, $11.88 million from ISO partners for settlement, and $5.27 million in ISO partner operating accounts, totaling $89.11 million. These deposits represent 12% of non-interest bearing deposits and 6% of total deposits. At June 30, 2025 there was $75.83 million from ISO partners for merchant reserves, $45.24 million from ISO partners for settlement, and $11.61 million in ISO partner operating accounts, totaling $132.68 million or 18% of non-interest bearing deposits and 11% of total deposits. These decreases were the result of strategic partner exits completed during 2025.
The Company has continued its regional loan production office (“LPO”) expansion during 2026 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 $83.75 million in loan commitments, an increase of $32.15 million over the previous quarter, with average utilization of 46%. This business line anticipates growing corresponding deposit reserves to an average of 30% of the loan balances.
We organize our loan and deposit operations into three geographic regions in California. The regions are represented by two regional heads in the Central Valley, one in Northern California, and two in Southern California. Loan and deposit totals by region or business line had the following balances as of June 30, 2026:
| Balances by Region or Business Line as of June 30, 2026 (in thousands) | ||||||
| Loans | Deposits | |||||
| Central California | $ | 792,642 | Central California | $ | 956,631 | |
| Northern California | 23,139 | Northern California | 39,848 | |||
| Southern California | 106,656 | Southern California | 126,608 | |||
| Wholesale Multifamily | 211,703 | Wholesale Funding | 159,033 | |||
| SBA | 126,562 | Merchant Services | 102,466 | |||
| Total | $ | 1,260,702 | Total | $ | 1,384,586 | |
There were $25.00 million in short-term borrowings at June 30, 2026 and March 31, 2026, and $16.00 million at June 30, 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 June 30, 2026:
| Liquidity Source (in thousands) | June 30, 2026 | March 31, 2026 | ||
| Cash and cash equivalents | $ | 47,457 | $ | 42,974 |
| Unpledged investment securities, fair value | 23,231 | 99,789 | ||
| FHLB advance capacity | 352,774 | 311,409 | ||
| Federal Reserve discount window capacity | 148,288 | 149,466 | ||
| Correspondent bank unsecured lines of credit | 71,500 | 71,500 | ||
| $ | 643,250 | $ | 675,138 | |
The total primary and secondary liquidity of $643.25 million at June 30, 2026 represents a decrease of $31.89 million in primary and secondary liquidity quarter-over-quarter. This decrease was primarily driven by sales of multifamily loans that were previously pledged to FHLB as secondary liquidity, partially offset by the pledging of previously unpledged securities to FHLB.
Shareholders’ equity increased 5% to $182.78 million at June 30, 2026, compared to $173.91 million from a year ago, and remained consistent with the $182.84 million reported at March 31, 2026. Book value per common share increased 12% to $63.80, at June 30, 2026, compared to $56.87 at June 30, 2025, and increased 3% from $61.85 at March 31, 2026. The tangible common equity ratio was 11.30% at June 30, 2026, compared to 11.80% a year earlier, and 11.62% at March 31, 2026. Book value has continued to improve 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 $199.34 million at quarter end excluding the unrealized loss. The regulatory leverage capital ratio was 12.20% for the current quarter, while the total risk-based capital ratio was 16.83%, exceeding regulatory minimums to be considered well-capitalized.
Asset Quality
Nonperforming assets, which consist of nonperforming loans and other real estate owned, increased 27.44% to $44.24 million, or 2.74% of total assets, at June 30, 2026, compared to $34.71 million, or 2.21% of total assets, from the previous quarter. “Although nonperforming assets increased during the quarter, the change was driven primarily by two C&I relationships that are 75% SBA guaranteed. Management is actively working with both borrowers to establish structured repayment plans, enhance collectability, and obtain additional collateral where appropriate, while pursuing all available resolution strategies to maximize recovery. Of the $44.24 million in nonperforming loans, $21.89 million is covered by SBA guarantees, while 53.32% of the remaining $22.35 million potential exposure is secured by real estate,” added Miller, “We continue to actively evaluate all resolution strategies and are focused on achieving the best available outcome. Since establishing our Wholesale Multifamily business line eight years ago, we have experienced only one problem loan relationship which we believe can be resolved appropriately in the near term.” Total delinquent loans decreased to $2.97 million at June 30, 2026, compared to $6.67 million at March 31, 2026.
Past due accruing loans 30-60 days were $2.68 million at June 30, 2026, compared to $6.31 million at March 31, 2026, and $1.80 million at June 30, 2025. There were $59,000 in past due accruing loans from 60-90 days at June 30, 2026, compared to $315,000 at March 31, 2026, and $1.02 million in past due accruing loans from 60-90 days a year earlier. Past due accruing loans 90+ days at quarter end totaled $231,000 at June 30, 2026, compared to $45,000 at March 31, 2026, and $46,000 at June 30, 2025.
Of the $2.97 million in past due accruing loans at June 30, 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 | Delinquent accruing loans 30-59 days | Delinquent accruing loans 60-89 days | Delinquent accruing loans 90+ days | Total | Govt. Guaranteed Amount | Unguaranteed Amount | ||||||
| (in thousands) | ||||||||||||
| Loan type | ||||||||||||
| Commercial and industrial | $ | 2,195 | $ | 59 | $ | 45 | $ | 2,299 | $ | 45 | $ | 2,254 |
| Commercial real estate: | ||||||||||||
| CRE owner-occupied | 480 | — | — | 480 | 432 | 48 | ||||||
| Agriculture | — | — | 186 | 186 | 186 | — | ||||||
| $ | 2,675 | $ | 59 | $ | 231 | $ | 2,965 | $ | 663 | $ | 2,302 | |
| Non-Accrual Loan Summary | Total | Govt. Guaranteed Amount | Unguaranteed Amount | Individual Allowance (ACL) | ||||
| (in thousands) | ||||||||
| Loan Type | ||||||||
| Commercial and industrial | $ | 28,352 | $ | 20,199 | $ | 8,153 | $ | 5,316 |
| Commercial real estate: | ||||||||
| Multifamily | 10,000 | — | 10,000 | 2,895 | ||||
| CRE owner-occupied | 5,885 | 1,691 | 4,194 | 83 | ||||
| $ | 44,237 | $ | 21,890 | $ | 22,347 | $ | 8,294 | |
There was a $1.54 million provision for credit losses in the second quarter of 2026, compared to $3.16 million provision for credit losses in the second quarter a year ago, and a $776,000 provision for credit losses recorded in the first quarter of 2026. The provision recorded during the second quarter of 2026 is primarily the result of the individual allowances associated with two commercial and industrial relationships migrating to non-accrual.
The ratio of allowance for credit losses to total loans was 1.40% at June 30, 2026 and March 31, 2026. 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 several quarters. The ratio of allowance for credit losses to the total, non-guaranteed, loan portfolio was 1.47%, as of June 30, 2026, and the total non-guaranteed exposure of the SBA loan portfolio was $48.89 million, consisting of 244 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 $1,280,000 during the current quarter, compared to $691,000 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 market conditions over the last several years. In addition to making leadership changes in our SBA business, we have also adjusted the internal credit management process and tailored underwriting standards in several verticals based on postmortems from our SBA losses.”
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 in 2025 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 management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Company’s ability to effectively execute its business plans; the impact of the Consent Order on our financial condition and results of operations; changes in general economic and financial market conditions; changes in interest rates, and in particular, actions taken by the Federal Reserve to try and control inflation; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Company’s business; international developments; the tariff strategy of the Trump administration, and its related effects on the agriculture industry and connected businesses in the Central Valley; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company undertakes no obligation to release publicly the results of any revisions to the forward-looking statements included herein to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Member FDIC
| Select Financial Information and Ratios | For the Quarter Ended: | Year to Date as of: | |||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||
| BALANCE SHEET- ENDING BALANCES: | |||||||||||||||||||
| Total assets | $ | 1,617,413 | $ | 1,573,506 | $ | 1,473,927 | |||||||||||||
| Total portfolio loans | 1,260,702 | 1,210,334 | 1,091,964 | ||||||||||||||||
| Investment securities | 260,911 | 252,955 | 254,177 | ||||||||||||||||
| Total deposits | 1,384,586 | 1,340,945 | 1,234,648 | ||||||||||||||||
| Shareholders equity, net | 182,784 | 182,842 | 173,908 | ||||||||||||||||
| INCOME STATEMENT DATA | |||||||||||||||||||
| Operating revenue | 24,053 | 22,914 | 27,349 | 46,967 | 55,825 | ||||||||||||||
| Operating expense | 14,961 | 15,976 | 15,768 | 30,937 | 32,235 | ||||||||||||||
| Pre-tax, pre-provision income | 9,092 | 6,938 | 11,581 | 16,030 | 23,590 | ||||||||||||||
| Net income after tax | 5,477 | 4,585 | 6,036 | 10,062 | 14,134 | ||||||||||||||
| SHARE DATA | |||||||||||||||||||
| Basic earnings per share | $ | 1.89 | $ | 1.53 | $ | 1.95 | $ | 3.41 | $ | 4.51 | |||||||||
| Fully diluted EPS | $ | 1.88 | $ | 1.53 | $ | 1.94 | $ | 3.40 | $ | 4.50 | |||||||||
| Book value per common share | $ | 63.80 | $ | 61.85 | $ | 56.87 | |||||||||||||
| Common shares outstanding | 2,864,926 | 2,956,265 | 3,057,874 | ||||||||||||||||
| Fully diluted shares | 2,912,210 | 2,999,826 | 3,104,067 | 2,955,783 | 3,139,346 | ||||||||||||||
| FFBB – Stock price | $ | 85.75 | $ | 85.65 | $ | 78.00 | |||||||||||||
| RATIOS | |||||||||||||||||||
| Return on average assets | 1.35 | % | 1.19 | % | 1.59 | % | 1.28 | % | 1.86 | % | |||||||||
| Return on average equity | 11.99 | % | 9.93 | % | 13.75 | % | 10.96 | % | 16.26 | % | |||||||||
| Efficiency ratio | 62.20 | % | 69.89 | % | 57.15 | % | 65.95 | % | 57.49 | % | |||||||||
| Adjusted efficiency ratio | 59.96 | % | 68.05 | % | 52.14 | % | 63.90 | % | 52.34 | % | |||||||||
| Yield on earning assets | 6.00 | % | 6.11 | % | 6.18 | % | 6.05 | % | 6.24 | % | |||||||||
| Yield on investment securities | 3.72 | % | 3.48 | % | 4.13 | % | 3.60 | % | 4.25 | % | |||||||||
| Yield on portfolio loans | 6.56 | % | 6.55 | % | 6.70 | % | 6.56 | % | 6.75 | % | |||||||||
| Cost to fund earning assets | 1.28 | % | 1.22 | % | 1.09 | % | 1.25 | % | 1.02 | % | |||||||||
| Cost of interest-bearing deposits | 2.90 | % | 2.83 | % | 2.81 | % | 2.87 | % | 2.71 | % | |||||||||
| Net Interest Margin | 4.71 | % | 4.89 | % | 5.09 | % | 4.80 | % | 5.22 | % | |||||||||
| Equity to assets | 11.30 | % | 11.62 | % | 11.80 | % | |||||||||||||
| Net loan to deposit ratio | 89.54 | % | 90.09 | % | 86.91 | % | |||||||||||||
| Full time equivalent employees | 191 | 199 | 181 | ||||||||||||||||
| BALANCE SHEET- AVERAGES | |||||||||||||||||||
| Total assets | 1,624,113 | 1,557,814 | 1,525,601 | 1,591,146 | 1,528,570 | ||||||||||||||
| Total portfolio loans | 1,252,046 | 1,215,806 | 1,112,380 | 1,234,026 | 1,094,712 | ||||||||||||||
| Investment securities | 252,879 | 240,666 | 289,127 | 246,806 | 307,312 | ||||||||||||||
| Total deposits | 1,410,161 | 1,328,707 | 1,281,357 | 1,369,659 | 1,290,901 | ||||||||||||||
| Shareholders equity, net | 183,148 | 187,270 | 176,074 | 185,198 | 175,247 | ||||||||||||||
| Consolidated Balance Sheet (unaudited) | June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||
| (in thousands) | |||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 31,566 | $ | 35,993 | $ | 55,897 | |||||
| Interest bearing deposits in banks | 15,891 | 6,981 | 21,347 | ||||||||
| CDs in other banks | — | — | 1,722 | ||||||||
| Investment securities | 260,911 | 252,955 | 254,177 | ||||||||
| Loans held for sale | — | 18,328 | — | ||||||||
| Construction & land development | 34,486 | 29,718 | 12,784 | ||||||||
| Residential RE 1-4 family | 42,811 | 40,515 | 17,066 | ||||||||
| Commercial real estate | 724,165 | 726,774 | 683,743 | ||||||||
| Agriculture | 116,963 | 100,490 | 109,926 | ||||||||
| Commercial and industrial | 300,527 | 291,739 | 260,082 | ||||||||
| Business manager | 41,075 | 20,353 | 6,728 | ||||||||
| Consumer and other | 675 | 745 | 1,635 | ||||||||
| Portfolio loans | 1,260,702 | 1,210,334 | 1,091,964 | ||||||||
| Deferred fees & costs | (3,349 | ) | (3,582 | ) | (3,541 | ) | |||||
| Allowance for credit losses | (17,640 | ) | (16,999 | ) | (15,330 | ) | |||||
| Loans, net | 1,239,713 | 1,189,753 | 1,073,093 | ||||||||
| Non-marketable equity investments | 11,198 | 10,419 | 9,809 | ||||||||
| Cash value of life insurance | 13,005 | 12,900 | 12,594 | ||||||||
| Other real estate owned | — | — | 949 | ||||||||
| Accrued interest and other assets | 45,129 | 46,177 | 44,339 | ||||||||
| Total assets | $ | 1,617,413 | $ | 1,573,506 | $ | 1,473,927 | |||||
| LIABILITIES AND EQUITY | |||||||||||
| Non-interest bearing deposits | $ | 726,636 | $ | 740,014 | $ | 759,300 | |||||
| Interest checking | 135,611 | 135,236 | 75,815 | ||||||||
| Savings | 50,181 | 49,727 | 49,657 | ||||||||
| Money market | 299,648 | 246,128 | 183,071 | ||||||||
| Certificates of deposits | 172,510 | 169,840 | 166,805 | ||||||||
| Total deposits | 1,384,586 | 1,340,945 | 1,234,648 | ||||||||
| Short-term borrowings | 25,000 | 25,000 | 16,000 | ||||||||
| Long-term debt | 9,901 | 9,896 | 38,086 | ||||||||
| Other liabilities | 15,142 | 14,823 | 11,285 | ||||||||
| Total liabilities | 1,434,629 | 1,390,664 | 1,300,019 | ||||||||
| Common stock | 37,535 | 38,235 | 29,501 | ||||||||
| Retained earnings | 157,900 | 159,079 | 162,272 | ||||||||
| Accumulated other comprehensive loss | (12,651 | ) | (14,472 | ) | (17,865 | ) | |||||
| Shareholders’ equity | 182,784 | 182,842 | 173,908 | ||||||||
| Total liabilities and shareholders’ equity | $ | 1,617,413 | $ | 1,573,506 | $ | 1,473,927 | |||||
| Consolidated Income Statement (unaudited) | Quarter ended: | Year to date: | ||||||||||||||
| (in thousands) | June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||
| INTEREST INCOME: | ||||||||||||||||
| Loan interest income | $ | 20,477 | $ | 19,644 | $ | 18,582 | $ | 40,121 | $ | 36,651 | ||||||
| Investment income | 2,345 | 2,067 | 2,978 | 4,412 | 6,477 | |||||||||||
| Int. on fed funds & CDs in other banks | 79 | 205 | 270 | 284 | 844 | |||||||||||
| Dividends from non-marketable equity | 90 | 350 | 141 | 440 | 272 | |||||||||||
| Total interest income | 22,991 | 22,266 | 21,971 | 45,257 | 44,244 | |||||||||||
| INTEREST EXPENSE: | ||||||||||||||||
| Int. on deposits | 4,765 | 4,068 | 3,288 | 8,833 | 6,178 | |||||||||||
| Int. on short-term borrowings | 35 | 24 | 126 | 59 | 158 | |||||||||||
| Int. on long-term debt | 112 | 351 | 451 | 463 | 902 | |||||||||||
| Total interest expense | 4,912 | 4,443 | 3,865 | 9,355 | 7,238 | |||||||||||
| Net interest income | 18,079 | 17,823 | 18,106 | 35,902 | 37,006 | |||||||||||
| PROVISION FOR CREDIT LOSSES | 1,541 | 776 | 3,157 | 2,317 | 4,321 | |||||||||||
| Net interest income after provision | 16,538 | 17,047 | 14,949 | 33,585 | 32,685 | |||||||||||
| NON-INTEREST INCOME: | ||||||||||||||||
| Total deposit fee income | 1,004 | 912 | 854 | 1,916 | 1,703 | |||||||||||
| Debit / credit card interchange income | 198 | 178 | 215 | 376 | 407 | |||||||||||
| Merchant services income | 2,905 | 2,496 | 6,609 | 5,401 | 14,473 | |||||||||||
| Gain on sale of loans | 1,366 | 941 | 1,446 | 2,307 | 1,707 | |||||||||||
| Gain (loss) on sale of investments | — | 55 | (243 | ) | 55 | (243 | ) | |||||||||
| Other operating income | 501 | 509 | 362 | 1,010 | 772 | |||||||||||
| Total non-interest income | 5,974 | 5,091 | 9,243 | 11,065 | 18,819 | |||||||||||
| NON-INTEREST EXPENSE: | ||||||||||||||||
| Salaries & employee benefits | 8,336 | 9,010 | 8,002 | 17,346 | 16,058 | |||||||||||
| Occupancy expense | 483 | 535 | 352 | 1,018 | 705 | |||||||||||
| Merchant services operating expense | 1,346 | 1,317 | 2,887 | 2,663 | 6,060 | |||||||||||
| Professional fees | 1,230 | 1,027 | 1,009 | 2,257 | 1,828 | |||||||||||
| Data & technology expense | 1,618 | 1,726 | 1,534 | 3,344 | 2,801 | |||||||||||
| Other operating expense | 1,948 | 2,361 | 1,984 | 4,309 | 4,783 | |||||||||||
| Total non-interest expense | 14,961 | 15,976 | 15,768 | 30,937 | 32,235 | |||||||||||
| Income before provision for income tax | 7,551 | 6,162 | 8,424 | 13,713 | 19,269 | |||||||||||
| PROVISION FOR INCOME TAXES | 2,074 | 1,577 | 2,388 | 3,651 | 5,135 | |||||||||||
| Net income | $ | 5,477 | $ | 4,585 | $ | 6,036 | $ | 10,062 | $ | 14,134 | ||||||
| ASSET QUALITY | June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||
| (in thousands) | |||||||||||
| Delinquent accruing loans 30-60 days | $ | 2,675 | $ | 6,307 | $ | 1,796 | |||||
| Delinquent accruing loans 60-90 days | 59 | 315 | 1,020 | ||||||||
| Delinquent accruing loans 90+ days | 231 | 45 | 46 | ||||||||
| Total delinquent accruing loans | $ | 2,965 | $ | 6,667 | $ | 2,862 | |||||
| Loans on non-accrual | $ | 44,237 | $ | 34,713 | $ | 26,285 | |||||
| Other real estate owned | — | — | 949 | ||||||||
| Nonperforming assets | $ | 44,237 | $ | 34,713 | $ | 27,234 | |||||
| Delinquent 30-60 / Total Loans | 0.21 | % | 0.52 | % | 0.16 | % | |||||
| Delinquent 60-90 / Total Loans | — | % | 0.03 | % | 0.09 | % | |||||
| Delinquent 90+ / Total Loans | 0.02 | % | — | % | — | % | |||||
| Delinquent Loans / Total Loans | 0.24 | % | 0.55 | % | 0.26 | % | |||||
| Non-accrual / Total Loans | 3.51 | % | 2.87 | % | 2.41 | % | |||||
| Nonperforming assets to total assets | 2.74 | % | 2.21 | % | 1.85 | % | |||||
| Year-to-date charge-off activity | |||||||||||
| Charge-offs | $ | 1,998 | $ | 702 | $ | 772 | |||||
| Recoveries | 27 | 11 | — | ||||||||
| Net charge-offs (recoveries) | $ | 1,971 | $ | 691 | $ | 772 | |||||
| Annualized net loan losses to average loans | 0.32 | % | 0.23 | % | 0.14 | % | |||||
| CREDIT LOSS RESERVE RATIOS: | |||||||||||
| Allowance for credit losses | $ | 17,640 | $ | 16,999 | $ | 15,330 | |||||
| Total loans | $ | 1,260,702 | $ | 1,210,334 | $ | 1,091,964 | |||||
| Purchased govt. guaranteed loans | $ | 2,144 | $ | 13,891 | $ | 15,138 | |||||
| Originated govt. guaranteed loans | $ | 60,848 | $ | 49,134 | $ | 38,224 | |||||
| ACL / Total loans | 1.40 | % | 1.40 | % | 1.40 | % | |||||
| ACL / Loans less 100% govt. gte. loans (purchased) | 1.40 | % | 1.42 | % | 1.42 | % | |||||
| ACL / Loans less all govt. guaranteed loans | 1.47 | % | 1.48 | % | 1.48 | % | |||||
| ACL / Total assets | 1.09 | % | 1.08 | % | 1.04 | % | |||||
| SELECT FINANCIAL TREND INFORMATION | For the Quarter Ended: | ||||||||||||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||||||||
| BALANCE SHEET- PERIOD END | |||||||||||||||
| Total assets | $ | 1,617,413 | $ | 1,573,506 | $ | 1,581,522 | $ | 1,499,233 | $ | 1,473,927 | |||||
| Loans held for sale | — | 18,328 | — | 23,457 | — | ||||||||||
| Loans held for investment | 1,260,702 | 1,210,334 | 1,196,424 | 1,121,924 | 1,091,964 | ||||||||||
| Investment securities | 260,911 | 252,955 | 240,997 | 248,282 | 254,177 | ||||||||||
| Non-interest bearing deposits | 726,636 | 740,014 | 786,249 | 758,237 | 759,300 | ||||||||||
| Interest bearing deposits | 657,950 | 600,931 | 557,400 | 500,024 | 475,348 | ||||||||||
| Total deposits | 1,384,586 | 1,340,945 | 1,343,649 | 1,258,261 | 1,234,648 | ||||||||||
| Short-term borrowings | 25,000 | 25,000 | — | 7,000 | 16,000 | ||||||||||
| Long-term debt | 9,901 | 9,896 | 38,153 | 38,125 | 38,086 | ||||||||||
| Total equity | 195,435 | 197,314 | 197,251 | 193,753 | 191,773 | ||||||||||
| Accumulated other comprehensive loss | (12,651 | ) | (14,472 | ) | (12,456 | ) | (14,329 | ) | (17,865 | ) | |||||
| Shareholders’ equity | 182,784 | 182,842 | 184,795 | 179,424 | 173,908 | ||||||||||
| QUARTERLY INCOME STATEMENT | |||||||||||||||
| Interest income | $ | 22,991 | $ | 22,266 | $ | 22,420 | $ | 22,029 | $ | 21,971 | |||||
| Interest expense | 4,912 | 4,443 | 4,338 | 3,975 | 3,865 | ||||||||||
| Net interest income | 18,079 | 17,823 | 18,082 | 18,054 | 18,106 | ||||||||||
| Non-interest income | 5,974 | 5,091 | 5,253 | 5,438 | 9,243 | ||||||||||
| Gross revenue | 24,053 | 22,914 | 23,335 | 23,492 | 27,349 | ||||||||||
| Provision for credit losses | 1,541 | 776 | 3,932 | 687 | 3,157 | ||||||||||
| Non-interest expense | 14,961 | 15,976 | 14,732 | 14,273 | 15,768 | ||||||||||
| Net income before tax | 7,551 | 6,162 | 4,671 | 8,532 | 8,424 | ||||||||||
| Tax provision | 2,074 | 1,577 | 1,458 | 2,296 | 2,388 | ||||||||||
| Net income after tax | 5,477 | 4,585 | 3,213 | 6,236 | 6,036 | ||||||||||
| BALANCE SHEET- AVERAGE BALANCE | |||||||||||||||
| Total assets | $ | 1,624,113 | $ | 1,557,814 | $ | 1,569,615 | $ | 1,480,234 | $ | 1,525,601 | |||||
| Loans held for sale | 24,214 | 315 | 292 | 1,190 | — | ||||||||||
| Loans held for investment | 1,252,046 | 1,215,806 | 1,190,626 | 1,120,353 | 1,112,380 | ||||||||||
| Investment securities | 252,879 | 240,666 | 245,335 | 251,213 | 289,127 | ||||||||||
| Non-interest bearing deposits | 751,008 | 745,288 | 785,452 | 751,139 | 812,753 | ||||||||||
| Interest bearing deposits | 659,153 | 583,419 | 532,365 | 493,430 | 468,604 | ||||||||||
| Total deposits | 1,410,161 | 1,328,707 | 1,317,817 | 1,244,569 | 1,281,357 | ||||||||||
| Short-term borrowings | 3,011 | 2,921 | — | 446 | 11,110 | ||||||||||
| Long-term debt | 9,899 | 23,397 | 38,153 | 38,107 | 38,068 | ||||||||||
| Shareholders’ equity | 183,148 | 187,270 | 187,713 | 175,101 | 176,074 | ||||||||||
Contact: Steve Miller – President & CEO
Bhavneet Gill – EVP & CFO
(559) 439-0200
