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FFB Bancorp Announces Fourth Quarter 2025 Results:

FRESNO, Calif., Jan. 26, 2026 (GLOBE NEWSWIRE) -- FFB Bancorp (the “Company”) (OTCQX: FFBB), the parent company of FFB Bank (the “Bank”), today reported net income of $3.21 million, or $1.07 per diluted share, for the fourth quarter of 2025, compared to $6.24 million, or $2.06 per diluted share, for the third quarter of 2025, and $9.72 million, or $3.05 per diluted share, for the fourth quarter of 2024.

For the year ended December 31, 2025, net income was $23.58 million, or $7.66 per diluted share, compared to $34.15 million, or $10.72 per diluted share, for the same period in 2024. All results are unaudited.

Fourth Quarter 2025 Summary: As of, or for the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025, and December 31, 2024, respectively:

  • Operating revenue (net interest income, before the provision for credit losses, plus non-interest income) decreased 1% to $23.34 million from the previous quarter and decreased 17% when compared to the same quarter of the prior year.
  • Pre-provision net revenue decreased 7% to $8.60 million from the previous quarter and decreased 43% when compared to the same quarter of the prior year.
  • Provision expense increased 472% to $3.93 million from the previous quarter and increased 135% when compared to the same quarter of the prior year.
  • Total assets increased 5% to $1.58 billion from the previous quarter and increased 5% when compared to the same quarter of the prior year.
  • Total portfolio of loans increased 7% to $1.20 billion from the previous quarter and increased 12% when compared to the same quarter for the prior year.
  • Total deposits increased 7% to $1.34 billion from the previous quarter and increased 5% when compared to the same quarter of the prior year.
  • Shareholder equity increased 3% to $184.80 million from the previous quarter and increased 10% when compared to the same quarter for the prior year.
  • Book value per common share increased 3% to $61.64, when compared to the previous quarter, and increased 16% from the same quarter of the prior year.
  • Return on average equity (“ROAE”) was 6.79%.
  • Return on average assets (“ROAA”) was 0.81%.
  • The Company’s tangible common equity ratio was 11.68%, while the Bank’s regulatory leverage capital ratio was 15.04%, and the total risk-based capital ratio was 20.54% at December 31, 2025.

"The Bank celebrated its 20-year anniversary in the fourth quarter, marking an important milestone and a reflection of the trust our customers have placed in us, the dedication of our team, and strength of the communities we serve," said Steve Miller, President & CEO.

“During the quarter we saw additional growth in the loan and deposit portfolios and continued to execute on our strategic plan, which includes technology, product, and process improvement. We are in a position of capital strength, which is why we have the confidence to redeem our subordinated debt during the first quarter of 2026. In addition, we feel that the best use of our excess capital is to buy back existing shares in the market."

"While a 1.50% annual ROAA is strong by most bank standards, we are not satisfied with our 2025 results. This year we have had the opportunity to bring in experienced leaders that we believe will enable the team to focus on key strategies for 2026 and set the foundation for future growth in 2027 and beyond. In addition to executing our organic growth strategy, the M&A dynamics in our core markets are also presenting opportunities for our frontline teams to capture."

FFB Bancorp Announces Redemption of Subordinated Debt:

The Company has authorized a plan to redeem in full the $28.3 million principal amount of subordinated debentures at par on February 15, 2026, or such later date as required by regulation, plus accrued and unpaid interest to the redemption date. This would represent approximately 15.3% of total shareholders’ equity at December 31, 2025.

The Company’s Board of Directors has reviewed pro forma consolidated capital and liquidity projections and determined that it is in the best interest of the Company and its shareholders to authorize the redemption of this subordinated debt.

FFB Bancorp Announces Stock Repurchase Program:

The Company has authorized a plan to utilize up to $15.0 million of capital to repurchase shares of the Company’s common stock, which represents approximately 8.1% of total shareholders’ equity at December 31, 2025, and will commence on or about January 30, 2026, provided that the Company is not then in possession of material non-public information.

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. Open market repurchases generally will be made in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "34 Act"), and may also be made pursuant to a trading plan under Rule 10b5-1 of the '34 Act, 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.

The Company’s management believes the repurchase plan, depending upon market and business conditions, may, among other things, provide capital management opportunities for the Company. The Company is not obligated to repurchase any shares under the repurchase plan. Through December 31, 2026, the repurchase plan may be discontinued, suspended or restarted at any time.

Results of Operations

Quarter ended December 31, 2025:

Operating revenue, consisting of net interest income before the provision for credit losses and non-interest income, decreased 17% to $23.34 million for the fourth quarter of 2025, compared to $28.25 million for the fourth quarter a year ago, and decreased 1% from $23.49 million for the third quarter of 2025. The decrease in operating revenue was primarily the result of a decrease in non-interest income, primarily merchant services income.

Net interest income, before the provision for credit losses, decreased 4% to $18.08 million for the fourth quarter of 2025, compared to $18.81 million for the same quarter a year ago, and increased $28,000 from $18.05 million from last quarter. The Company’s net interest margin (“NIM”) decreased by 38 basis points to 4.86% for the fourth quarter of 2025, compared to 5.24% for the fourth quarter of 2024, and decreased 29 basis points from 5.15% for the preceding quarter. “Net interest income and NIM decreased from the prior quarter primarily driven by lower yield on earnings assets and increased funding costs. The decrease in the earning assets yield was primarily the result of the decrease in market rates and related impact on variable rate loans," said Bhavneet Gill, Chief Financial Officer.

The yield on earning assets was 6.02% for the fourth quarter of 2025, compared to 6.24% for the fourth quarter a year ago, and 6.29% for the previous quarter. The cost to fund earning assets increased to 1.17% for the fourth quarter of 2025 compared to 1.13% for the previous quarter, and 1.00% for the same quarter a year earlier. This increase is the result of an increased reliance on wholesale funds due to ISO deposit outflow that occurred during 2025. As deposits for Bank customers and ISO partners increase as we expect over the next few quarters, Management intends to reduce reliance on wholesale funding. "In 2026 we should have the opportunity to grow our existing ISO partners in all risk verticals, which should attract new deposit opportunities to replace what we exited in 2025. In addition, with increased bank merger and acquisition activity happening in our regions, we believe our teams have the opportunity to acquire new customers and talent through the typical market disruption this causes," said Miller, "We refer to this as organic growth M&A."

Total non-interest income was $5.25 million for the fourth quarter of 2025, compared to $9.44 million for the fourth quarter of 2024, and $5.44 million for the previous quarter. The decrease in non-interest income was driven by a decrease in merchant services revenue. Merchant services revenue decreased 65% to $2.65 million for the fourth quarter of 2025, compared to $7.56 million from the fourth quarter of 2024. The decrease over prior year was attributed to planned ISO partner exits during 2025 and lower gross volume and revenue related to FFB Payments. Merchant services revenue decreased 18% from $3.21 million when compared to the third quarter of 2025 as a result of reduction in ISO partner sponsorship volumes and reduction in FFB Payments revenue from repricing.

During the first and second quarters of 2025, ISO Partner Sponsorship volumes included $2.78 billion and $2.56 billion in volume, respectively, for the ISO partners that exited during 2025. Additionally, the first and second quarters of 2025 included ISO Partner Sponsorship revenues of $990,000 and $1.09 million, respectively, from the ISO partners that exited during 2025. "These ISO exits were driven by our efforts to comply with the Consent Order and designed to ensure best in class oversight. We continue to build relationships within FFB Payments and look to strengthen the commitments with our remaining ISO partners as we move forward," said Miller. "We continue to make progress on the obligations set forth within the Consent Order."

Merchant ISO Processing Volumes (in thousands)
Source Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024
ISO Partner Sponsorship $ 2,773,101 $ 3,099,287 $ 5,347,695 $ 5,007,998 $ 4,891,643
FFB Payments- Sub-ISO Merchants   21,679   19,023   20,766   21,551   22,950
FFB Payments- Direct Merchants   26,347   28,573   71,746   97,095   91,133
Total volume $ 2,821,127 $ 3,146,883 $ 5,440,207 $ 5,126,644 $ 5,005,726


Merchant ISO Processing Revenues (in thousands)
Source of Revenue Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024
Net Revenue*:          
ISO Partner Sponsorship $ 1,339   $ 1,937   $ 2,654 $ 2,410 $ 2,535
           
Gross Revenue:          
FFB Payments- Sub-ISO Merchants   726     633     727   745   764
FFB Payments- Direct Merchants   580     640     3,228   4,709   4,262
    1,306     1,273     3,955   5,454   5,026
Gross Expense:          
FFB Payments- Sub-ISO Merchants   883     780     708   616   638
FFB Payments- Direct Merchants   720     801     2,179   2,558   2,511
    1,603     1,581     2,887   3,174   3,149
Net Revenue:          
FFB Payments- Sub-ISO Merchants   (157 )   (147 )   19   129   126
FFB Payments- Direct Merchants   (140 )   (161 )   1,049   2,151   1,751
FFB Payments Net Revenue   (297 )   (308 )   1,068   2,280   1,877
Net Merchant Services Income: $ 1,042   $ 1,629   $ 3,722 $ 4,690 $ 4,412

*ISO Partnership Sponsorship is recognized net of expense in Merchant Services Income. FFB Payments revenues are recognized on a gross basis in Merchant Services Income and Merchant Services expenses are recognized in Non-Interest Expense.

Total deposit fee income decreased 4% to $822,000 for the fourth quarter of 2025, compared to $856,000 for the fourth quarter of 2024, and increased 1% from $812,000 for the previous quarter. These changes are primarily the result of the relative change in the deposit portfolio and shifts within deposit concentrations.

There was a $1.16 million gain on the sale of loans during the fourth quarter of 2025, compared to a gain on the sale of loans of $929,000 during the fourth quarter 2024, and a gain on the sale of loans of $361,000 in the previous quarter. There was a $6,000 loss on the sale of investments recorded during the fourth quarter of 2025, compared to a $482,000 loss recorded during the fourth quarter of 2024. The gain on the sale of loans during the quarter was the result of $8.71 million in SBA loan sales and $23.44 million in multifamily loan sales that were completed during the quarter. These sales contributed $611,000 and $549,000 in gain respectively.

Non-interest expense increased 3% to $14.73 million for the fourth quarter of 2025, compared to $14.27 million from the previous quarter, and increased 11%, compared to the $13.27 million recorded for the fourth quarter 2024. The increase on a year-over-year comparison was driven by increases in salaries and employee benefits expense, and increases in other operating expense, primarily data and software related expenses and professional fees. Compared to the third quarter of 2025 the increase in non-interest expense was attributed to an increase in other operating expenses and professional fees, partially offset by a decrease in salaries and employee benefit expense. "The Board and I have a focused strategy on maximizing existing software tools while also implementing AI and similar efficiencies to avoid over hiring, and more importantly, to improve the quality of our staff's work by letting tech do the more remedial tasks,” said Miller, "We are quickly seeing the impact of how new technology will help us eliminate or consolidate redundant systems. This will also enable key department functions to be automated in more efficient ways than before. My role will be to help shepherd our team to stay up to speed with these new technologies and ensure we are implementing appropriate change to help drive productivity.”

Salaries and employee benefits increased 44% to $7.43 million for the fourth quarter of 2025, compared to $5.18 million for the fourth quarter 2024. The increase year-over-year was primarily the result of expense associated with the increase in full-time employees. Full-time employees increased to 189 at December 31, 2025, compared to 168 full-time employees a year earlier. Total salaries and employee benefits decreased 3% from $7.67 million in the previous quarter. These decreases were primarily the result of non-recurring reductions of $465,000 and $361,000 in performance bonus and ESOP accruals, respectively.

Occupancy and equipment expenses increased 15% from a year ago, representing 3% of non-interest expense, and increased 3% from the previous quarter. These increases are the result of increased rent expense from office expansion. Merchant operating expense totaled $1.60 million for the fourth quarter of 2025, compared to $3.15 million for the fourth quarter of 2024 and $1.58 million for the previous quarter. The decrease in merchant operating expense, compared to the fourth quarter of 2024, 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 16% to $1.37 million for the fourth quarter of 2025, compared to $1.18 million for the fourth quarter 2024. Total professional fees increased 13% from $1.20 million in the previous quarter. "Fourth quarter professional fees included $321,000 in non-recurring consulting costs related to Consent Order remediation. These fees were tied to finalizing one of the heavier lifts in the required remediation," noted Gill.

Data and technology expenses increased 33% to $1.60 million for the fourth quarter of 2025, compared to $1.20 million for the fourth quarter 2024. Data and technology expenses increased 6% from $1.51 million in the previous quarter. The increase in data and technology expense and professional fees is primarily due to actions taken to enhance the Company's AML/CFT, compliance, and merchant services programs.

Other operating expense increased 5% or $108,000 to $2.26 million from a year earlier and increased $405,000 from the previous quarter. The quarterly increase was driven by increases in marketing expense, loan collection expense, and higher fraud related operational losses.

The efficiency ratio was 63.12% for the fourth quarter of 2025, compared to 46.19% for the same quarter a year ago, and 60.76% for the previous quarter, which is the result of increases in other operating expenses. This ratio can fluctuate period-over-period based on changes in merchant services' gross revenues and associated expenses. The Company also calculates an adjusted efficiency ratio where the merchant services' gross expense, which is included in non-interest expense, is netted against merchant services' revenue in non-interest income. The adjusted efficiency ratio was 60.40% for the fourth quarter of 2025, compared to 39.57% for the same quarter a year ago, and 57.93% for the previous quarter.

Year ended December 31, 2025:

For the year ended December 31, 2025, operating revenue increased 1% to $102.65 million, compared to $101.99 million for the same period in 2024. For the year ended December 31, 2025, net interest income before the provision for credit losses increased 4% to $73.14 million, compared to $70.04 million for the same period in 2024. The increase in net interest income is attributed to growth in the loan portfolio, partially offset by a decrease in investment interest income and increase in interest expense due to higher funding costs. For the year ended December 31, 2025, the yield on earning assets was 6.15% compared to 6.26% for the same period in 2024, while the cost to fund earning assets was 1.08% for the year ended December 31, 2025, compared to 1.04% for the same period in 2024.

For the year ended December 31, 2025, non-interest income decreased 8% to $29.51 million compared to $31.95 million for the same period in 2024. This decrease was attributed to a $4.94 million decrease in merchant services revenue, partially offset by a $702,000 increase in gain on sale of loans, $1.05 million decrease in the loss on sale of investments and higher loan servicing income. Deposit fee income remained consistent with the prior year at $3.34 million.

For the year ended December 31, 2025, operating expenses increased by 18% to $61.24 million from $51.99 million for the same period in 2024. Salaries and employee benefits expense increased 25% to $31.16 million as a result of the increase in FTE. There was a 13% decrease in merchant services operating expenses, to $9.24 million, which represents 15% of total operating expenses for year ended December 31, 2025. Other operating expenses increased 22% to $8.90 million due to a $1.40 million increase in technology related expenses, increases of $1.42 million in professional fees, $279,000 in marketing expense, and $522,000 in operational losses.

For the year ended December 31, 2025, the efficiency ratio was 59.51%, compared to 50.34% for the same period ended December 31, 2024. The adjusted efficiency ratio was 55.52%, compared to 44.62% for the same period ended December 31, 2024.

Balance Sheet Review

Total assets increased 5% to $1.58 billion at December 31, 2025, compared to $1.50 billion at December 31, 2024, and increased 5% compared to $1.50 billion at September 30, 2025.

The total loan portfolio increased 12%, or $125.35 million, to $1.20 billion, compared to $1.07 billion at December 31, 2024, and increased 7% from the $1.12 billion reported at September 30, 2025. "We're excited for the continued growth we've seen in the loan portfolio as this is attributed to the strong relationships we are able to build with new and existing clients. When you add back the $90.33 million in sold production from 2025, the team achieved 15% loan growth compared to the prior year," said Miller, "In the first half of 2026, we will be launching a new corporate card product and small business loan product which we believe can provide even more value to our customers."

Commercial real estate loans increased 11% year-over-year to $746.25 million, representing 62% of total loans at December 31, 2025. The CRE portfolio includes $80.25 million in short-term bridge loans for transitional projects of multi-family properties. The short-term bridge loans are conservatively underwritten with minimum DSCR and liquidity requirements.

The real estate construction and land development loan portfolio decreased 13% from a year ago to $23.12 million, representing 2% of total loans, while residential RE 1-4 family loans totaled $41.90 million, or 4% of loans, at December 31, 2025, compared to $16.85 million one year ago.

The commercial and industrial (C&I) portfolio increased 8% to $288.72 million, at December 31, 2025, compared to $267.95 million a year earlier, and increased 7% from $269.90 million at September 30, 2025. C&I loans represented 24% of total loans at December 31, 2025.

Agriculture loans of $96.13 million represented 8% of the loan portfolio at December 31, 2025. At December 31, 2025, the SBA, USDA, and other government agencies guaranteed loans totaled $59.15 million, or 5% of the loan portfolio.

Investment securities totaled $241.00 million at December 31, 2025, compared to $322.19 million a year earlier, and decreased $7.29 million from $248.28 million at September 30, 2025. At December 31, 2025, the Company had a net unrealized loss position on its investment securities portfolio of $17.71 million, compared to $25.89 million a year earlier, and $20.37 million at September 30, 2025. The Company’s investment securities portfolio had an effective duration of 6.40 years at December 31, 2025, compared to 5.32 years at December 31, 2024, and 6.17 years at September 30, 2025.

Total deposits increased 5%, or $59.27 million, to $1.34 billion at December 31, 2025, compared to $1.28 billion from a year earlier, and increased $85.39 million from $1.26 billion at September 30, 2025. Non-interest bearing demand deposits decreased 5% to $786.25 million at December 31, 2025, compared to $828.51 million at December 31, 2024, and increased $28.01 million from $758.24 million at September 30, 2025. Non-interest bearing demand deposits represented 59% of total deposits at December 31, 2025. During the fourth quarter of 2025 non-interest bearing demand deposits were reduced by $16.12 million due to strategic ISO partner exits. Certificates of deposits increased 2%, or $3.87 million, during the quarter. Wholesale deposits, which primarily consist of brokered CDs and ICS one-way buy deposits, totaled $142.94 million at December 31, 2025, compared to $43.94 million from a year earlier, and $101.94 million at September 30, 2025. Management intends to reduce wholesale deposits as Bank customer and ISO partners increase deposits as expected.

Included in total non-interest bearing deposits at December 31, 2025 are $73.33 million from ISO partners for merchant reserves, $14.61 million from ISO partners for settlement, and $14.46 million in ISO partner operating accounts, totaling $102.41 million. These deposits represent 13% of non-interest bearing deposits and 8% of total deposits. At December 31, 2024 there was $82.66 million from ISO partners for merchant reserves, $134.37 million from ISO partners for settlement, and $8.32 million in ISO partner operating accounts, totaling $225.36 million or 27% of non-interest bearing deposits and 18% of total deposits. These decreases were the result of strategic partner exits completed during 2025.

Within the $102.41 million in ISO partner deposits retained as of December 31, 2025 are $8.49 million in deposits expected to exit with terminated ISO partners. The Bank plans to replace these non-interest bearing deposits with growth from new Bank customers in its markets and from the existing ISO partners it will continue to support.

The Company has expanded its leadership team under our new Chief Banking Officer role announced last quarter, to include regional heads that provide coverage across the State of California. These regions are represented by two regional heads in the Central Valley, one in Northern California, and two in Southern California. Loan and deposit totals across these regions had the following balances as of December 31, 2025:

Regional Loan Balances as of December 31, 2025
Central Valley Northern
California
Southern
California
SBA Wholesale
Multifamily
Total
$ 764,168 $ 29,415 $ 55,129 $ 91,905 $ 255,807 $ 1,196,424


Regional Deposit Balances as of December 31, 2025
Central Valley Northern
California
Southern
California
ISO Partner
Sponsorship
Wholesale
Funding
Total
$ 986,456 $ 29,595 $ 82,233 $ 102,405 $ 142,960 $ 1,343,649


There were no short-term borrowings at December 31, 2025, or December 31, 2024, compared to $7.00 million at September 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 December 31, 2025:

Liquidity Source (in thousands) December 31, 2025 September 30, 2025
     
Cash and cash equivalents $ 98,267 $ 58,286
Unpledged investment securities, fair value   64,737   63,032
FHLB advance capacity   320,087   295,815
Federal Reserve discount window capacity   156,923   160,264
Correspondent bank unsecured lines of credit   71,500   71,500
  $ 711,514 $ 648,897


The total primary and secondary liquidity of $711.51 million at December 31, 2025 represents an increase of $62.62 million in primary and secondary liquidity quarter-over-quarter.

Shareholders’ equity increased 10% to $184.80 million at December 31, 2025, compared to $168.39 million from a year ago, and increased 3% from the $179.42 million reported at September 30, 2025. Book value per common share increased 16% to $61.64, at December 31, 2025, compared to $53.02 at December 31, 2024, and increased 3% from $59.84 at September 30, 2025. The tangible common equity ratio was 11.68% at December 31, 2025, compared to 11.20% a year earlier, and 11.97% at September 30, 2025. Book value improved as a result of quarterly net income and a reduction in shares outstanding through share repurchases.

At the Bank level, unrealized losses and gains reflected in AOCI are not included in regulatory capital. As a result, Tier-1 capital at the Bank for regulatory purposes was $233.18 million at quarter end excluding the unrealized loss. The regulatory leverage capital ratio was 15.04% for the current quarter, while the total risk-based capital ratio was 20.54%, exceeding regulatory minimums to be considered well-capitalized.

Asset Quality

Nonperforming assets, which consist of nonperforming loans and other real estate owned, decreased 0.61% to $27.76 million, or 1.76% of total assets, at December 31, 2025, compared to $27.93 million, or 1.86% of total assets, from the previous quarter. Of the $27.76 million in nonperforming loans, $9.71 million are covered by SBA guarantees, and 50.23% are secured by real estate. Total delinquent loans decreased to $4.69 million at December 31, 2025, compared to $7.53 million at September 30, 2025.

Past due accruing loans 30-60 days were $4.33 million at December 31, 2025, compared to $6.21 million at September 30, 2025, and $4.89 million at December 31, 2024. There were $314,000 in past due accruing loans from 60-90 days at December 31, 2025, compared to $355,000 at September 30, 2025, and $2.45 million in past due accruing loans from 60-90 days a year earlier. Past due accruing loans 90+ days at quarter end totaled $45,000 at December 31, 2025, compared to $966,000 at September 30, 2025, and $987,000 at December 31, 2024.

Of the $4.69 million in past due accruing loans at December 31, 2025, $719,000 were purchased government guaranteed loans, which are guaranteed by the SBA for the full payment of the principal plus interest.

Delinquent Loan Summary Organic
Purchased Govt.
Guaranteed

Total
(in thousands)
       
Delinquent accruing loans 30-59 days $ 3,655 $ 674 $ 4,329
Delinquent accruing loans 60-89 days   314     314
Delinquent accruing loans 90+ days     45   45
Total delinquent accruing loans $ 3,969 $ 719 $ 4,688
       
Non-Accrual Loan Summary Organic
Purchased Govt.
Guaranteed

Total
(in thousands)
       
Loans on non-accrual $ 27,756 $ $ 27,756
Non-accrual loans with SBA guarantees   9,709     9,709
Net Bank exposure to non-accrual loans $ 18,047 $ $ 18,047


There was a $3.93 million provision for credit losses in the fourth quarter of 2025, compared to $1.67 million provision for credit losses in the fourth quarter a year ago, and a $687,000 provision for credit losses recorded in the third quarter of 2025. The provision recorded during the fourth quarter of 2025 is the result of $1.65 million in net charge-offs, $634,000 increase in specific reserves on nonperforming loans, $399,000 increase in reserves for unfunded commitments, and reserves calculated for the $74.50 million increase in loan portfolio balances.

The ratio of allowance for credit losses to total loans was 1.44% at December 31, 2025, compared to 1.10% a year earlier and 1.36% at September 30, 2025. The Company individually evaluates non-accrual loans in the allowance for credit losses. The recent increase in non-accrual loans has resulted in carrying a higher level of reserve during the year. The ratio of allowance for credit losses to the total, non-guaranteed, loan portfolio was 1.51%, as of December 31, 2025, and the total non-guaranteed exposure of the SBA loan portfolio was $48.71 million, consisting of 239 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 $1,653,000 during the current quarter, compared to $1,287,000 in net charge-offs in the fourth quarter a year ago, and $571,000 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 today's market conditions. In addition to adjusting the internal credit management process, we have also tailored underwriting based on postmortems from our SBA losses.”

"The loan portfolio increased 12% from a year ago with commercial real estate (“CRE”) loans representing 62% of the total loan portfolio. Within the CRE portfolio, there are $42.48 million in loans for CRE office which is represented in the table below," said Miller, "As the majority of the Company's CRE office exposure is concentrated in the Central Valley, we are experiencing less volatility than traditional city center CRE markets. Our credit metrics remain strong as we continue to maintain conservative underwriting standards.”

(in thousands) CRE Office Exposure of December 31, 2025
Region Owner-Occupied Non-Owner Occupied Total
Central Valley $ 21,520 $ 14,367 $ 35,887
Southern California   2,242   347   2,589
Other California   3,070   413   3,483
Total California   26,832   15,127   41,959
Out of California     517   517
Total CRE Office $ 26,832 $ 15,644 $ 42,476


About FFB Bancorp

FFB Bancorp, formerly Communities First Financial Corporation, a bank holding company established in 2014, is the parent company of FFB Bank, founded in 2005 in Fresno, California. As a leading SBA Lender in California’s Central Valley and one of the few direct acquiring banks in the United States, FFB Bank offers clients a range of personal and business checking accounts, payment processes, and loan programs. Among the Bank’s awards and accomplishments, it was ranked #1 on American Banker’s list of the Top 20 Publicly Traded Banks under $2 Billion in Assets for 2024. The Bank was also ranked by S&P Global as the #34 best performing US community bank under $3 billion in assets. The Company has also received recognition as part of the OTCQX Best 50 Companies for 2019, 2023, and 2024. For additional information, you can visit the Company’s website atwww.ffb.bankor by contacting a representative at 559-439-0200.

Forward Looking Statements

This earnings release may contain forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on managements’ expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Company’s ability to effectively execute its business plans; the impact of the Consent Order on our financial condition and results of operations; changes in general economic and financial market conditions; changes in interest rates, and in particular, actions taken by the Federal Reserve to try and control inflation; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Company’s business; international developments; the tariff strategy of the Trump administration, and its related effects on the agriculture industry and connected businesses in the Central Valley; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company undertakes no obligation to release publicly the results of any revisions to the forward-looking statements included herein to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Member FDIC

Select Financial Information and Ratios
For the Quarter Ended:   Year to Date as of:
December
31, 2025
  September
30, 2025
  December
31, 2024
  December
31, 2025
  December
31, 2024
BALANCE SHEET- ENDING BALANCES:                  
Total assets   $1,581,522     $1,499,233     $1,504,128        
Total portfolio loans   1,196,424     1,121,924     1,071,079        
Investment securities   240,997     248,282     322,186        
Total deposits   1,343,649     1,258,261     1,284,377        
Shareholders equity, net   184,795     179,424     168,392        
                   
INCOME STATEMENT DATA                  
Operating revenue   23,335     23,492     28,247     102,653     101,990  
Operating expense   14,732     14,273     13,270     61,240     51,992  
Pre-tax, pre-provision income   8,603     9,219     14,977     41,413     49,998  
Net income after tax   3,213     6,236     9,718     23,583     34,147  
                   
SHARE DATA                  
Basic earnings per share   $1.07     $2.07     $3.06     $7.68     $10.76  
Fully diluted EPS   $1.07     $2.06     $3.05     $7.66     $10.72  
Book value per common share   $61.64     $59.84     $53.02        
Common shares outstanding   2,998,124     2,998,254     3,175,817        
Fully diluted shares   3,012,668     3,025,332     3,189,949     3,078,795     3,184,490  
FFBB - Stock price   $85.00     $81.45     $97.97        
                   
RATIOS                  
Return on average assets   0.81 %     1.67 %     2.53 %     1.53 %     2.38 %  
Return on average equity   6.79 %     14.13 %     23.11 %     12.75 %     22.78 %  
Efficiency ratio   63.12 %     60.76 %     46.19 %     59.51 %     50.34 %  
Adjusted efficiency ratio   60.40 %     57.93 %     39.57 %     55.52 %     44.62 %  
Yield on earning assets   6.02 %     6.29 %     6.24 %     6.15 %     6.26 %  
Yield on investment securities   3.70 %     3.79 %     4.34 %     4.51 %     4.47 %  
Yield on portfolio loans   6.54 %     6.76 %     6.95 %     6.50 %     6.86 %  
Cost to fund earning assets   1.17 %     1.13 %     1.00 %     1.08 %     1.04 %  
Cost of interest-bearing deposits   2.80 %     2.83 %     2.69 %     2.58 %     2.70 %  
Net Interest Margin   4.86 %     5.15 %     5.24 %     5.07 %     5.22 %  
Equity to assets   11.68 %     11.97 %     11.20 %        
Net loan to deposit ratio   89.04 %     89.16 %     83.39 %        
Full time equivalent employees   189     180     168        
                   
BALANCE SHEET- AVERAGES                  
Total assets   1,569,615     1,480,234     1,529,439     1,540,440     1,434,232  
Total portfolio loans   1,190,626     1,120,353     1,038,215     1,159,686     974,498  
Investment securities   245,335     251,213     333,135     247,390     331,842  
Total deposits   1,317,817     1,244,569     1,299,069     1,292,182     1,220,197  
Shareholders equity, net   187,713     175,101     167,268     184,966     149,919  


Consolidated Balance Sheet (unaudited) December 31, 2025

  September 30, 2025

  December 31, 2024

(in thousands)    
ASSETS          
Cash and due from banks $ 24,333     $ 38,391     $ 43,905  
Interest bearing deposits in banks   73,934       19,895       19,510  
CDs in other banks   1,489       1,491       1,723  
Investment securities   240,997       248,282       322,186  
Loans held for sale         23,457        
           
Construction & land development   23,118       17,358       26,522  
Residential RE 1-4 family   41,899       20,362       16,846  
Commercial real estate   746,245       709,889       669,285  
Agriculture   96,129       103,977       90,017  
Commercial and industrial   288,723       269,904       267,948  
Consumer and other   310       434       461  
Portfolio loans   1,196,424       1,121,924       1,071,079  
Deferred fees & discounts   (4,108 )     (3,329 )     (4,200 )
Allowance for credit losses   (17,180 )     (15,302 )     (11,834 )
Loans, net   1,175,136       1,103,293       1,055,045  
           
Non-marketable equity investments   9,970       9,971       8,891  
Cash value of life insurance   12,798       12,693       12,402  
Other real estate owned         978        
Accrued interest and other assets   42,865       40,782       40,466  
Total assets $ 1,581,522     $ 1,499,233     $ 1,504,128  
           
LIABILITIES AND EQUITY          
Non-interest bearing deposits $ 786,249     $ 758,237     $ 828,508  
Interest checking   115,168       77,034       62,034  
Savings   47,665       48,211       55,219  
Money market   220,492       204,575       212,322  
Certificates of deposits   174,075       170,204       126,294  
Total deposits   1,343,649       1,258,261       1,284,377  
Short-term borrowings         7,000        
Long-term debt   38,153       38,125       38,007  
Other liabilities   14,925       16,423       13,352  
Total liabilities   1,396,727       1,319,809       1,335,736  
           
Common stock   25,529       25,245       38,436  
Retained earnings   171,722       168,508       148,138  
Accumulated other comprehensive loss   (12,456 )     (14,329 )     (18,182 )
Shareholders' equity   184,795       179,424       168,392  
Total liabilities and shareholders' equity $ 1,581,522     $ 1,499,233     $ 1,504,128  


Consolidated Income Statement
(unaudited)
Quarter ended:   Year to date:
(in thousands) December
31, 2025
  September
30, 2025
  December
31, 2024
  December
31, 2025
  December
31, 2024
                   
INTEREST INCOME:                  
Loan interest income $ 19,619     $ 19,090   $ 18,131     $ 75,359     $ 66,828  
Investment income   2,289       2,398     3,631       11,165       14,828  
Int. on fed funds & CDs in other banks   352       176     504       1,372       1,460  
Dividends from non-marketable equity   160       365     137       798       847  
Total interest income   22,420       22,029     22,403       88,694       83,963  
                   
INTEREST EXPENSE:                  
Int. on deposits   3,756       3,518     3,115       13,452       11,717  
Int. on short-term borrowings   1       6     12       165       346  
Int. on long-term debt   581       451     464       1,935       1,858  
Total interest expense   4,338       3,975     3,591       15,552       13,921  
Net interest income   18,082       18,054     18,812       73,142       70,042  
PROVISION FOR CREDIT LOSSES   3,932       687     1,671       8,941       3,103  
Net interest income after provision   14,150       17,367     17,141       64,201       66,939  
                   
NON-INTEREST INCOME:                  
Total deposit fee income   822       812     856       3,337       3,337  
Debit / credit card interchange income   217       223     196       847       732  
Merchant services income   2,645       3,210     7,562       20,328       25,268  
Gain on sale of loans   1,160       361     929       3,228       2,526  
Loss on sale of investments   (6 )         (482 )     (248 )     (1,299 )
Other operating income   415       832     374       2,019       1,384  
Total non-interest income   5,253       5,438     9,435       29,511       31,948  
                   
NON-INTEREST EXPENSE:                  
Salaries & employee benefits   7,433       7,667     5,177       31,158       24,952  
Occupancy expense   471       458     411       1,634       1,606  
Merchant services operating expense   1,603       1,580     3,149       9,244       10,661  
Professional fees   1,365       1,204     1,178       4,397       2,981  
Data & technology expense   1,601       1,510     1,204       5,912       4,511  
Other operating expense   2,259       1,854     2,151       8,895       7,281  
Total non-interest expense   14,732       14,273     13,270       61,240       51,992  
                   
Income before provision for income tax   4,671       8,532     13,306       32,472       46,895  
PROVISION FOR INCOME TAXES   1,458       2,296     3,588       8,889       12,748  
Net income $ 3,213     $ 6,236   $ 9,718     $ 23,583     $ 34,147  


ASSET QUALITY December 31,
2025

  September 30,
2025

  December 31,
2024

(in thousands)    
Delinquent accruing loans 30-60 days $ 4,329     $ 6,210     $ 4,886  
Delinquent accruing loans 60-90 days   314       355       2,449  
Delinquent accruing loans 90+ days   45       966       987  
Total delinquent accruing loans $ 4,688     $ 7,531     $ 8,322  
           
Loans on non-accrual $ 27,756     $ 26,949     $ 9,894  
Other real estate owned         978        
Nonperforming assets $ 27,756     $ 27,927     $ 9,894  
           
Delinquent 30-60 / Total Loans   0.36 %     0.55 %     0.46 %
Delinquent 60-90 / Total Loans   0.03 %     0.03 %     0.23 %
Delinquent 90+ / Total Loans   %     0.09 %     0.09 %
Delinquent Loans / Total Loans   0.39 %     0.67 %     0.78 %
Non-accrual / Total Loans   2.32 %     2.40 %     0.92 %
Nonperforming assets to total assets   1.76 %     1.86 %     0.66 %
           
Year-to-date charge-off activity          
Charge-offs $ 3,334     $ 1,388     $ 1,287  
Recoveries   338       45       35  
Net charge-offs (recoveries) $ 2,996     $ 1,343     $ 1,252  
Annualized net loan losses to average loans   0.25 %     0.16 %     0.12 %
           
CREDIT LOSS RESERVE RATIOS:          
Allowance for credit losses $ 17,180     $ 15,302     $ 11,834  
           
Total loans $ 1,196,424     $ 1,121,924     $ 1,071,079  
Purchased govt. guaranteed loans $ 14,398     $ 14,970     $ 16,323  
Originated govt. guaranteed loans $ 44,753     $ 42,641     $ 42,737  
           
ACL / Total loans   1.44 %     1.36 %     1.10 %
ACL / Loans less 100% govt. gte. loans (purchased)   1.45 %     1.38 %     1.12 %
ACL / Loans less all govt. guaranteed loans   1.51 %     1.44 %     1.17 %
ACL / Total assets   1.09 %     1.02 %     0.79 %


SELECT FINANCIAL TREND
INFORMATION

For the Quarter Ended:
December
31, 2025
September
30, 2025
June 30,
2025
March 31,
2025
December
31, 2024
BALANCE SHEET- PERIOD END          
Total assets $ 1,581,522   $ 1,499,233   $ 1,473,927   $ 1,560,376   $ 1,504,128  
Loans held for sale       23,457              
Loans held for investment   1,196,424     1,121,924     1,091,964     1,092,441     1,071,079  
Investment securities   240,997     248,282     254,177     313,826     322,186  
           
Non-interest bearing deposits   786,249     758,237     759,300     825,404     828,508  
Interest bearing deposits   557,400     500,024     475,348     494,977     455,869  
Total deposits   1,343,649     1,258,261     1,234,648     1,320,381     1,284,377  
Short-term borrowings       7,000     16,000     10,000      
Long-term debt   38,153     38,125     38,086     38,046     38,007  
           
Total equity   197,251     193,753     191,773     191,928     186,574  
Accumulated other comprehensive loss   (12,456 )   (14,329 )   (17,865 )   (17,217 )   (18,182 )
Shareholders' equity   184,795     179,424     173,908     174,711     168,392  
           
QUARTERLY INCOME STATEMENT          
Interest income $ 22,420   $ 22,029   $ 21,971   $ 22,274   $ 22,403  
Interest expense   4,338     3,975     3,865     3,373     3,591  
Net interest income   18,082     18,054     18,106     18,901     18,812  
Non-interest income   5,253     5,438     9,243     9,575     9,435  
Gross revenue   23,335     23,492     27,349     28,476     28,247  
           
Provision for credit losses   3,932     687     3,157     1,164     1,671  
           
Non-interest expense   14,732     14,273     15,768     16,467     13,270  
Net income before tax   4,671     8,532     8,424     10,845     13,306  
Tax provision   1,458     2,296     2,388     2,747     3,588  
Net income after tax   3,213     6,236     6,036     8,098     9,718  
           
BALANCE SHEET- AVERAGE BALANCE          
Total assets $ 1,569,615   $ 1,480,234   $ 1,525,601   $ 1,531,573   $ 1,529,439  
Loans held for sale   292     1,190              
Loans held for investment   1,190,626     1,120,353     1,112,380     1,076,848     1,038,215  
Investment securities   245,335     251,213     289,127     325,699     333,135  
           
Non-interest bearing deposits   785,452     751,139     812,753     850,426     838,748  
Interest bearing deposits   532,365     493,430     468,604     450,124     460,321  
Total deposits   1,317,817     1,244,569     1,281,357     1,300,550     1,299,069  
Short-term borrowings       446     11,110     2,856     951  
Long-term debt   38,153     38,107     38,068     38,028     37,989  
           
Shareholders' equity   187,713     175,101     176,074     174,410     167,268  


Contact: Steve Miller - President & CEO
Bhavneet Gill – EVP & CFO
(559) 439-0200



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