LOS ANGELES -- (Business Wire)

CBB Bancorp, Inc. ("CBB" or the "Company”) (OTCQX: CBBI), the holding company of Commonwealth Business Bank, doing business as “CBB Bank” (the "Bank"), announced today net income of $5.1 million for the third quarter 2026, or $0.48 per diluted share, up from $4.9 million in the second quarter 2026, or $0.46 per diluted share. For the nine months ending September 30, 2026, net income was $15.7 million, or $1.47 per diluted share, up from $13.4 million, or $1.27 per diluted share, for the same period in 2025.

Third Quarter 2026 Highlights

• Return on Assets of 1.03%
• Net income of $5.1 million, or $0.48 per diluted share
• Total loan growth accelerated to a 16.1% annualized rate

Seungho Park, President and CEO, said, “The quarter was marked by higher earnings and continued net interest margin expansion as our team successfully executed strategies to enhance asset yields, optimize funding costs, and deepen customer relationships. Combined with our robust capital ratios and strong liquidity profile, these results underscore the resilience of our business model and our ability to generate consistent value across varying market conditions. Supported by robust capital levels, sound credit quality, and a disciplined approach to growth, we remain well positioned to capitalize on market opportunities while preserving the financial flexibility needed to support our customers and create long-term shareholder value.”

INCOME STATEMENT

Net Interest Income

Net interest income for the third quarter 2026 was $16.5 million, an increase of $1.2 million or 7.6% from the prior quarter and $813 thousand, or 5.2% from the third quarter 2025. The increase in net interest income from the prior quarter was primarily attributable to the increase in margin and to a lesser extent having one more day in the quarter and higher average interest-earning assets. The net interest margin for the third quarter 2026 was 3.40%, up from 3.22% for the second quarter of 2026, but down from 3.49% for the third quarter of 2025. The margin included higher interest earning asset yields by ten basis points and lower interest-bearing liabilities costs by five basis points.

The overall cost of funds for the third quarter of 2026 was 3.08%, down from 3.16% for the second quarter of 2026 and 3.25% for the third quarter of 2025.

Provision for Credit Losses

The Company recorded no provision for credit losses for the third quarter of 2026, compared to $500 thousand in the second quarter of 2026 and $470 thousand in the third quarter of 2025. During the current quarter, a significant improvement in the reserve requirement for one loan offset additional reserves otherwise warranted by changes in the remainder of the loan portfolio. The allowance credit loss (“ACL”) to loans held-for-investment ratio decreased five basis points to 1.14% from the prior quarter.

Noninterest Income

Noninterest income for the third quarter of 2026 was $2.3 million, down from $3.1 million in the prior quarter, but up from $1.9 million in the third quarter of 2025. The current quarter-over-quarter decrease in noninterest income was primarily the result of a lower gain on sales of loans of $888 thousand as a lower balance of loans were sold.

Noninterest Expenses

Noninterest expenses totaled $11.7 million for the third quarter of 2026, up from $11.2 million in the prior quarter and $10.8 million in the third quarter of 2025. Noninterest expense increased by $551 thousand in the current quarter over the prior quarter primarily due to higher occupancy and equipment costs of $218 thousand, other operating expenses of $155 thousand and professional expense of $105 thousand.

The efficiency ratio was 62.20%, up from 60.55% in the prior quarter and 61.48% in the year-ago quarter. The efficiency ratio increase from the prior quarter was primarily due to the increase in non-interest expense outpacing total revenue, primarily due to lower gains on sales of loans.

Income Taxes

The Company’s effective tax rate for the third quarter of 2026 was 28.6%, compared to 27.8% for the second quarter of 2026 and 27.9% for the third quarter of 2025.

BALANCE SHEET

Investment Securities

Investment securities were $54.1 million at September 30, 2026, a decrease of $9.4 million, or 14.8%, from June 30, 2026, and a decrease of $13.4 million, or 19.8%, from September 30, 2025. The quarterly decline was mainly driven by called and matured securities of $7.8 million.

Loans Receivable

Loans receivable, including loans held-for-sale, totaled $1.59 billion at September 30, 2026, an increase of $62.0 million, or 4.1%, from the prior quarter and $138.4 million, or 9.6%, from a year earlier.

Allowance for Credit Losses and Asset Quality

The ACL was $17.1 million at September 30, 2026, representing 1.14% of loans held-for-investment, compared to $17.4 million, or 1.19%, at June 30, 2026, and $16.2 million, or 1.27%, at September 30, 2025.

Total nonperforming assets at September 30, 2026, were $25.5 million up from $21.6 million at June 30, 2026, and up from $16.4 million at September 30, 2025, primarily driven by an increase in nonaccrual loans.

The ACL coverage to nonperforming assets was 66.99% at September 30, 2026, down from 80.51% in the previous quarter, and down from 98.49% in the year-ago quarter.

Loans Held-for-Sale

Total SBA loans held-for-sale were $85.4 million as of September 30, 2026, up from $66.5 million at June 30, 2026, but down from $175.2 million at September 30, 2025.

During the current quarter, the Bank sold $18.4 million in SBA loans at an average premium of 8.9%, down from $37.1 million sold at an average premium of 8.2% in the prior quarter, but up from $14.5 million sold at 7.1% average premium in the third quarter of 2025.

Deposits

Total deposits were $1.62 billion at September 30, 2026, down $45.1 million, or 2.7%, from the prior quarter, and down $48.0 million, or 2.9%, from a year earlier. The quarter-over-quarter decrease was primarily driven by lower balances in the time deposits and wholesale deposits.

Borrowings

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

Capital

Stockholders’ equity was $280.4 million at September 30, 2026, up $3.8 million, or 1.4%, from the prior quarter. Tangible book value per share was $26.18, an increase of $0.27, or 1.0%, from the previous quarter.

At quarter-end, the Company and the Bank maintained strong capital positions, with Common Equity Tier 1 Risk-Based Capital Ratios of 18.39% and 18.30%, respectively. Total Risk-Based Capital Ratios were 19.55% for the Company and 19.46% for the Bank, while Leverage Ratios were 14.15% and 14.08%, respectively. The Bank remained classified as “Well Capitalized” under all applicable regulatory capital standards.

About CBB Bancorp, Inc.:

CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to-medium-sized businesses and does business as “CBB Bank.” As of September 30, 2026, the Bank had twelve full-service banking offices in Los Angeles and Orange Counties in California, Dallas County in Texas, Honolulu, Hawaii, Bergen County in New Jersey, and Queens County in New York. Three SBA regional offices in Los Angeles, Dallas, and Bergen Counties, and loan production offices in California, Georgia, Texas, and Virginia. For additional information, please go to www.cbb-bank.com under the tab “About Us” and select “Investor Relations” to see the 3Q 2026 Overview.

FORWARD-LOOKING STATEMENTS:

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CBB Bancorp, Inc. (the “Company”) intends that such forward-looking statements be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described herein are necessarily subject to risks and uncertainties that may cause actual results to differ materially and adversely from those described herein. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause actual results to differ materially from those presented, either expressed or implied, in this news release include, but are not limited to: the Company’s ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Additional factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include deterioration in credit quality; changes in the level of nonperforming assets, charge-offs, and classified loans; changes in the adequacy of the allowance for credit losses; fluctuations in liquidity, deposits, funding sources, or funding costs; cybersecurity incidents, fraud events, and technology disruptions; inflationary pressures; geopolitical events; and other risks and uncertainties affecting the Company's business and operations. There can be no assurance that future developments affecting the Company will be those anticipated by management.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances, except to the extent required by law.