CBB Bancorp, Inc. Reports Fourth Quarter and Full Year 2021 Financial Results

Rhea-AI Summary

CBB Bancorp, Inc. (CBBI) reported fourth quarter 2021 net income of $8.0 million, or $0.77 per diluted share, marking a 1.7% increase from the prior quarter and a 115.7% increase year-over-year. For the year, net income was $27.5 million, up 178.6% from $9.9 million in 2020. The rise in income was fueled by strong SBA loan originations. However, the net interest margin slightly decreased to 3.49%. The Company had a negative provision for loan losses of $0.8 million in Q4, indicating improved asset quality.

Positive

• Record quarterly earnings for four consecutive quarters.
• Net interest income increased 38.2% year-over-year.
• Strong performance in SBA loan sales, with $42.2 million sold in Q4 2021.

Negative

• Net interest margin decreased to 3.49% from 3.62% in Q3 2021.
• Noninterest expense rose to $11.4 million, partly due to provisions for SBA loan repurchases.

LOS ANGELES--(BUSINESS WIRE)-- CBB Bancorp, Inc. ("CBB" or the "Company') (OTCQX: CBBI), the holding company of Commonwealth Business Bank (the "Bank"), announced today net income for fourth quarter 2021 of $8.0 million, or $0.77 per diluted share, an increase of 1.7% compared to $7.9 million, or $0.75 per diluted share, in the prior quarter and $115.7% compared to $3.7 million, or $0.36 per diluted share, in the same period last year.

Additionally, CBB reported net income for the year ended December 31, 2021 of $27.5 million, or $2.65 per diluted share, an increase of 178.6% from the $9.9 million, or $0.96 per diluted share, of net income for 2020.

Overall Results

Net income for fourth quarter 2021 was positively impacted by the continued strength of the Bank’s SBA loan originations and sales. The Company’s annualized return on average assets for fourth quarter 2021 was 1.68% compared to 1.73% for third quarter 2021 and 1.07% for fourth quarter 2020. The annualized return on average equity for fourth quarter 2021 was 17.54% compared to 17.87% for third quarter 2021 and 9.32% for fourth quarter 2020. The net interest margin for fourth quarter 2021 was 3.49% compared to 3.62% for third quarter 2021 and 3.48% for fourth quarter 2020. The efficiency ratio for fourth quarter 2021 was 52.84% compared to 49.00% for third quarter 2021 and 55.12% for fourth quarter 2020.

Joanne Kim, President and CEO, commented, “We are pleased to announce record quarterly earnings for the fourth consecutive quarter, as our earnings continue to benefit from growing net interest income and SBA loan sales, while maintaining excellent asset quality.”

Net Interest Income and Margin:

Net Interest Income

Net interest income for fourth quarter 2021 was $16.3 million, an increase of $188 thousand, or 1.2%, from third quarter 2021, and an increase of $4.5 million, or 38.2%, from fourth quarter 2020. For the year ended December 31, 2021, net interest income was $58.8 million, an increase of $16.0 million, or 37.4%, over 2020. The increase in net interest income over the prior year was primarily driven by our ability to continue to aggressively lower deposit rates combined with the impact of the inclusion of operations of the acquired Ohana Pacific Bank for the last six months the year.

Net Interest Margin

Our net interest margin for fourth quarter 2021 was 3.49% compared to 3.62% for third quarter 2021 and 3.48% for fourth quarter 2020. The decrease in net interest margin was due to the higher average levels of interest-earning deposits at the FRB and other banks in the fourth quarter of 2021. For the year ended December 31, 2021, net interest margin was 3.67% compared to 3.41% in 2020. Our cost of funds improved for fourth quarter 2021 to 0.30% from 0.33% for third quarter 2021 and 0.60% for fourth quarter 2020. For the year ended December 31, 2021, the cost of funds was 0.38% compared to 1.04% in 2020.

Provision for Loan Losses:

The Company recorded a negative provision for loan losses for fourth quarter 2021 of $0.8 million, compared to a zero provision for third quarter 2021 and $1.6 million positive provision for fourth quarter 2020. For the year ended December 31, 2021, a negative provision for loan losses of $0.3 million was recorded, compared to $5.5 million positive provision for the corresponding period in 2020. The negative loan loss provision during the fourth quarter of 2021 was due to continued improvement in asset quality ratios, the absence of significant charge-offs, and continuing signs of an improving economy. The loan loss provision also declined during the fourth quarter of 2021 in part due to the risk of loss included in other liabilities associated with the sold portion of SBA loans, as discussed further in Noninterest Expense below. See Table 10 for additional information and trends.

Noninterest Income:

Noninterest income for fourth quarter 2021 was $5.3 million compared to $5.5 million for third quarter 2021 and $3.4 million for fourth quarter 2020. For the year ended December 31, 2021, noninterest income was $19.6 million compared to $9.6 million in 2020. The largest contributor to noninterest income continues to be gains on sales of loans. Sales of SBA loans were $42.2 million with an average premium percentage received of 11.1% during the fourth quarter of 2021, compared with SBA loan sales of $42.0 million with an average premium percentage received of 11.5% during the third quarter of 2021 and SBA loan sales of $20.4 million with an average premium percentage received of 10.7% during the fourth quarter of 2020. For the year ended December 31, 2021, the gain on sale of SBA loans was $14.9 million compared to $4.6 million for the corresponding period in 2020.

Noninterest Expense:

Noninterest expense for fourth quarter 2021 was $11.4 million compared to $10.6 million for third quarter 2021 and $8.4 million for fourth quarter 2020. For the year ended December 31, 2021, noninterest expense was $40.3 million compared to $32.9 million for the corresponding period in 2020. The increase in noninterest expense in the fourth quarter of 2021 was largely due to an additional provision for loss of $800 thousand on the repurchase of SBA loans sold. The risk of loss associated with these loans had been included in the allowance for loan losses in prior quarters. The increase in noninterest expense in 2021 compared to 2020 was primarily driven by increases in merger related expense, donations to CBB Bank Foundation, and third party processing costs along with the result of the inclusion of the operations of the acquired Ohana Pacific Bank for the last six months of 2021.

Income Taxes:

The Company’s effective tax rate for fourth quarter 2021 was 27.1% compared to 28.6% for third quarter 2021 and 29.0% for fourth quarter 2020. For the year ended December 31, 2021, the effective tax rate was 28.2% compared to 29.8% in 2020.

Balance Sheet:

Investment Securities:

Investment securities were $84.2 million at December 31, 2021, a decrease from $86.4 million at September 30, 2021 and from $85.9 million from December 31, 2020. The decreases were due to net principal paydowns. There were no portfolio additions in the fourth quarter 2021.

Loans Receivable:

Loans receivable (including loans held for sale) at December 31, 2021 was $1.4 billion, an increase of $7.2 million, or 0.5%, from September 30, 2021, and an increase of $296.7 million, or 26.9% from December 31, 2020. The increase in loan balances in 2021 compared with 2020 was in part due to the $149.2 million in loans that were acquired in the Ohana Pacific Bank merger at July 1, 2021.

Loan payment deferments for our commercial borrowers under the CARES Act have declined since the first round of deferments that began during the second quarter of 2020. As of December 31, 2021, three loans totaling $26.7 million remain on modified payment terms, a $3.0 million decrease from the $29.7 million level of such loans at September 30, 2021 and down from $298.7 million of such loans at their peak at June 30, 2020. All three loans that remained on modified payment terms as of December 31, 2021 are scheduled to return to their regular payment terms in January 2022.

Our weighted average loan-to-value ratio of Commercial Real Estate loans was 72.2% at December 31, 2021. Excluding SBA loans, our weighted average loan-to-value ratio of CRE loans was 55.1%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 4Q 2021 Overview and COVID-19 update presentation.

Paycheck Protection Program (PPP):

PPP loans totaled $35.4 million at December 31, 2021. Net unearned fees as of December 31, 2021 were $0.9 million and are being accreted to income based on the two-year contractual maturity. The SBA approved $25.5 million in PPP loan forgiveness applications processed for our PPP loans in fourth quarter 2021.

Allowance for Loan Losses and Asset Quality:

The allowance for loan losses at December 31, 2021 was $14.2 million, or 1.14% of portfolio loans, compared to $15.0 million, or 1.19% of portfolio loans, at September 30, 2021. Excluding PPP loans of $35.4 million, which are government guaranteed, the allowance for loan losses at December 31, 2021 was 1.18% compared to 1.26% at September 30, 2021. Non-performing loans as of December 31, 2021 were $747 thousand, down from $768 thousand at September 30, 2021. Loans with payment deferments are considered performing loans in accordance with regulatory guidance. Our coverage ratio of allowance for loan losses to nonperforming assets continues to exceed 1800%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 4Q 2021 Overview and COVID-19 update presentation.

SBA Loans Held for Sale:

SBA loans held for sale at December 31, 2021 were $158.1 million, compared to $136.4 million at September 30 2021 and $59.1 million at December 31, 2020. We continue to assess SBA loan sale premiums and plan to sell loans when we believe it is advantageous to do so. See comments under “Noninterest Income”, and Table 7 for additional SBA loan origination and sale data.

Deposits:

Deposits were $1.6 billion at December 31, 2021, down $108.0 million from September 30, 2021 and up $459.0 million from December 31, 2020. Noninterest-bearing demand deposits (DDAs) decreased $50.7 million, or 7.6%, from September 30, 2021 and increased $284.6 million, or 84.9%, from December 31, 2020. DDAs were 40.5% of total deposits at December 31, 2021 compared to 40.9% at September 30, 2021 and 30.5% at December 31, 2020. The decrease in DDA deposits in the fourth quarter of 2021 was due a decline in the escrow related deposits managed by the Bank’s Specialty Deposit Group. The increase in DDA at December 31, 2021 compared with the prior year includes both increased balances with the Specialty Deposit Group and the deposits added in the acquisition of Ohana Pacific Bank.

NOW and MMDA decreased $51.2 million, or 13.6%, from September 30, 2021 and increased $64.9 million, or 24.9% from December 31, 2020. Time deposits decreased $6.9 million, or 1.3% from September 30, 2021 and increased $73.8 million, or 16.3%, from December 31, 2020. Our time deposits at December 30, 2021 were $525.7 million, or 33.7% of total deposits, down from $532.6 million, or 32.0% of total deposits at September 30, 2021 and up from $451.9 million, or 41.1% of total deposits at December 31, 2020. The increases in NOW, MMDA and time deposit balances during 2021 compared with the prior year were primarily attributable to the completion of the merger with Ohana Pacific Bank during the third quarter.

Borrowings:

Borrowings at December 31, 2021 consisted of $50.0 million of Federal Home Loan Bank of San Francisco (FHLB-SF) advances and were unchanged from the balance of FHLB-SF advances at September 30, 2021. Borrowings at December 31, 2020 included of $95.0 million of FHLB-SF advances and $10.0 million of Pacific Coast Bankers Bank borrowings.

Capital:

Stockholders’ equity was $185.2 million at December 31, 2021, representing an increase of $6.9 million, or 3.9%, over stockholders’ equity of $178.3 million at September 30, 2021. Tangible book value per share at December 31, 2021 was $17.76 compared with $17.08 at September 30, 2021, an increase of $0.68 per share, or 4.0%.

All of our regulatory capital ratios increased at December 31, 2021 continue to exceed the minimum levels required to be considered “Well Capitalized” as defined for bank regulatory purposes and remain in compliance with the fully phased-in Basel III requirements, which went into effect on January 1, 2020, as shown on Table 11 in this press release. Our Common Equity Tier 1 risked-based capital ratio at December 31, 2021 was 13.84% at the Company level and 13.83% at the Bank level.

About CBB Bancorp, Inc.:

CBB Bancorp, Inc. is the holding company of Commonwealth Business Bank, a full-service commercial bank which specializes in loans to small-to medium-sized businesses and does business as “CBB Bank.” As of December 31, 2021, the Bank has ten full-service branches in Los Angeles and Orange Counties in California, Dallas County in Texas and Honolulu, Hawaii; two SBA regional offices in Los Angeles and Dallas Counties; and five loan production offices in Texas, Georgia, Colorado and Washington.

For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 4Q 2021 Overview and COVID-19 update presentation.

FORWARD-LOOKING STATEMENTS:

This news release contains forward-looking statements. These statements typically include words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions. You should not place undue reliance on such statements. Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; increases in competitive pressure among financial institutions or from non-financial institutions may occur; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and the Bank; significant increases in loan losses may occur; the possibility that changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, the effects of the COVID-19 pandemic, and of other widespread outbreaks of disease or pandemics, together with related impacts on general economic conditions, including adverse impacts on our customers’ ability to make timely payments on their loans from us, reduced fee income due to reduced loan origination activity, reductions in or absence of gains on loan sales due to uncertainty in the loan sale market, and increased operating expense due to required changes in how we conduct our business may adversely affect us; conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive to implement or accommodate than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates; we may encounter greater difficulty, delay and expense than we anticipate in integrating the personnel and operations of Ohana Pacific Bank or any other companies we acquire. The Company undertakes no obligation to revise any forward-looking statement contained herein to reflect any future events or circumstances, except to the extent required by law.

Schedules and Financial Data: All tables and data to follow

STATEMENT OF INCOME AND PERFORMANCE HIGHLIGHT (Unaudited) - Table 1
(Dollars in thousands, except per share amounts)
		Three Months Ended																								Twelve Months Ended
		December 31,				September 30,				$			%			December 31,				$			%			December 31,				December 31,				$			%
		2021				2021				Change			Change			2020				Change			Change			2021				2020				Change			Change
Interest income		$	17,553			$	17,437			$	116		0.7	%		$	13,613			$	3,940		28.9	%		$	64,285			$	54,504			$	9,781		17.9	%
Interest expense			1,265				1,337				(72	)	(5.4	%)			1,830				(565	)	(30.9	%)			5,493				11,711				(6,218	)	(53.1	%)
Net interest income			16,288				16,100				188		1.2	%			11,783				4,505		38.2	%			58,792				42,793				15,999		37.4	%
Provision for loan losses			(800	)			-				(800	)	(100.0	%)			1,600				(2,400	)	(150.0	%)			(300	)			5,500				(5,800	)	(105.5	%)
Net interest income after provision for loan losses			17,088				16,100				988		6.1	%			10,183				6,905		67.8	%			59,092				37,293				21,799		58.5	%
Gain on sale of loans			4,151				4,305				(154	)	(3.6	%)			1,484				2,667		179.7	%			14,900				4,594				10,306		224.3	%
Gain (loss) on sale of OREO			-				-				-		-				-				-		-				-				3				(3	)	(100.0	%)
SBA servicing fee income, net			683				698				(15	)	(2.1	%)			701				(18	)	(2.6	%)			2,850				2,759				91		3.3	%
Reversal of valuation allowance on servicing assets			-				-				-		-				894				(894	)	(100.0	%)			-				894				(894	)	(100.0	%)
Service charges and other income			499				540				(41	)	(7.6	%)			364				135		37.1	%			1,813				1,396				417		29.9	%
Noninterest income			5,333				5,543				(210	)	(3.8	%)			3,443				1,890		54.9	%			19,563				9,646				9,917		102.8	%
Salaries and employee benefits			6,614				6,500				114		1.8	%			5,477				1,137		20.8	%			23,967				20,744				3,223		15.5	%
Occupancy and equipment			1,028				1,067				(39	)	(3.7	%)			936				92		9.8	%			4,019				3,763				256		6.8	%
Marketing expense			111				287				(176	)	(61.3	%)			133				(22	)	(16.5	%)			994				1,135				(141	)	(12.4	%)
Professional expense			368				495				(127	)	(25.7	%)			478				(110	)	(23.0	%)			1,809				1,916				(107	)	(5.6	%)
Merger related expense			454				450				4		0.9	%			-				454		100.0	%			2,185				98				2,087		2129.6	%
Other expenses			2,850				1,807				1,043		57.7	%			1,369				1,481		108.2	%			7,313				5,200				2,113		40.6	%
Noninterest expense			11,425				10,606				819		7.7	%			8,393				3,032		36.1	%			40,287				32,856				7,431		22.6	%
Income before income tax expense			10,996				11,037				(41	)	(0.4	%)			5,233				5,763		110.1	%			38,368				14,083				24,285		172.4	%
Income tax expense			2,984				3,156				(172	)	(5.4	%)			1,519				1,465		96.4	%			10,838				4,202				6,636		157.9	%
Net income		$	8,012			$	7,881			$	131		1.7	%		$	3,714			$	4,298		115.7	%		$	27,530			$	9,881			$	17,649		178.6	%
Effective tax rate			27.1	%			28.6	%			(1.5	%)	(5.1	%)			29.0	%			(1.9	%)	(6.5	%)			28.2	%			29.8	%			(1.6	%)	(5.3	%)
Outstanding number of shares			10,284,962				10,284,962				-		-				10,247,292				37,670		0.4	%			10,284,962				10,247,292				37,670		0.4	%
Weighted average shares for basic EPS			10,284,962				10,280,016				4,946		0.0	%			10,247,292				37,670		0.4	%			10,268,940				10,238,237				30,703		0.3	%
Weighted average shares for diluted EPS			10,424,771				10,427,687				(2,916	)	(0.0	%)			10,285,410				139,361		1.4	%			10,389,885				10,291,209				98,676		1.0	%
Basic EPS		$	0.78			$	0.77			$	0.01		1.3	%		$	0.36			$	0.42		116.7	%		$	2.68			$	0.97			$	1.71		176.3	%
Diluted EPS		$	0.77			$	0.75			$	0.02		2.7	%		$	0.36			$	0.41		113.9	%		$	2.65			$	0.96			$	1.69		176.0	%
Return on average assets			1.68	%			1.73	%			(0.05	%)	(2.9	%)			1.07	%			0.61	%	57.0	%			1.68	%			0.77	%			0.91	%	118.2	%
Return on average equity			17.54	%			17.87	%			(0.33	%)	(1.9	%)			9.32	%			8.22	%	88.2	%			15.98	%			6.41	%			9.57	%	149.3	%
Efficiency ratio¹			52.84	%			49.00	%			3.84	%	7.8	%			55.12	%			(2.28	%)	(4.1	%)			51.42	%			62.66	%			(11.24	%)	(17.9	%)
Yield on interest-earning assets²			3.76	%			3.92	%			(0.16	%)	(4.1	%)			4.01	%			(0.25	%)	(6.2	%)			4.01	%			4.34	%			(0.33	%)	(7.6	%)
Cost of funds			0.30	%			0.33	%			(0.03	%)	(9.1	%)			0.60	%			(0.30	%)	(50.0	%)			0.38	%			1.04	%			(0.66	%)	(63.5	%)
Net interest margin²			3.49	%			3.62	%			(0.13	%)	(3.6	%)			3.48	%			0.01	%	0.3	%			3.67	%			3.41	%			0.26	%	7.6	%

¹	Represents the ratio of noninterest expense less other real estate owned operations to the sum of net interest income before provision for credit losses and total noninterest income, less gains/(loss) on sale of securities, other-than-temporary impairment recovery/(loss) on investment securities and gain/(loss) from other real estate owned.
²	Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

BALANCE SHEET, CAPITAL AND OTHER DATA (Unaudited) - Table 2
(Dollars in thousands)
		December 31,				September 30,				$				%			December 31,				$				%
		2021				2021				Change				Change			2020				Change				Change
ASSETS
Cash and due from banks		$	7,702			$	11,621			$	(3,919	)		(33.7	%)		$	8,750			$	(1,048	)		(12.0	%)
Interest-earning deposits at the FRB and other banks			284,583				386,087				(101,504	)		(26.3	%)			153,908				130,675			84.9	%
Investment securities¹			84,238				86,440				(2,202	)		(2.5	%)			85,914				(1,676	)		(2.0	%)
Loans held-for-sale, at the lower of cost or fair value			158,128				136,394				21,734			15.9	%			59,077				99,051			167.7	%
Loans receivable			1,241,319				1,255,814				(14,495	)		(1.2	%)			1,043,662				197,657			18.9	%
Allowance for loan losses			(14,192	)			(15,000	)			808			5.4	%			(14,366	)			174			1.2	%
Loans receivable, net			1,227,127				1,240,814				(13,687	)		(1.1	%)			1,029,296				197,831			19.2	%
OREO			-				-				-			-				-				-			-
Restricted stock investments			8,850				8,850				-			-				8,196				654			8.0	%
Servicing assets			10,632				10,392				240			2.3	%			9,873				759			7.7	%
Goodwill			2,185				2,269				(84	)		(3.7	%)			-				2,185			100.0	%
Intangible assets			360				375				(15	)		(4.0	%)			-				360			100.0	%
Other assets			24,996				25,859				(863	)		(3.3	%)			20,233				4,763			23.5	%
Total assets		$	1,808,801			$	1,909,101			$	(100,300	)		(5.3	%)		$	1,375,247			$	433,554			31.5	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing		$	619,774			$	670,489			$	(50,715	)		(7.6	%)		$	335,219			$	284,555			84.9	%
Interest-bearing			938,338				995,574				(57,236	)		(5.7	%)			763,906				174,432			22.8	%
Total deposits			1,558,112				1,666,063				(107,951	)		(6.5	%)			1,099,125				458,987			41.8	%
FHLB advances and other borrowing			50,000				50,000				-			-				105,000				(55,000	)		(52.4	%)
Other liabilities			15,447				14,719				728			4.9	%			11,145				4,302			38.6	%
Total liabilities			1,623,559				1,730,782				(107,223	)		(6.2	%)			1,215,270				408,289			33.6	%
Stockholders' Equity			185,242				178,319				6,923			3.9	%			159,977				25,265			15.8	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,808,801			$	1,909,101			$	(100,300	)		(5.3	%)		$	1,375,247			$	433,554			31.5	%
CAPITAL RATIOS
Leverage ratio
Company			9.55	%			9.61	%			(0.06	%)		(0.6	%)			11.56	%			(2.01	%)		(17.4	%)
Bank			9.55	%			9.60	%			(0.05	%)		(0.5	%)			11.54	%			(1.99	%)		(17.3	%)
Common equity tier 1 risk-based capital ratio
Company			13.84	%			13.61	%			0.23	%		1.7	%			15.01	%			(1.17	%)		(7.8	%)
Bank			13.83	%			13.59	%			0.24	%		1.7	%			14.97	%			(1.14	%)		(7.6	%)
Tier 1 risk-based capital ratio
Company			13.84	%			13.61	%			0.23	%		1.7	%			15.01	%			(1.17	%)		(7.8	%)
Bank			13.83	%			13.59	%			0.24	%		1.7	%			14.97	%			(1.14	%)		(7.6	%)
Total risk-based capital ratio
Company			14.99	%			14.86	%			0.13	%		0.9	%			16.26	%			(1.27	%)		(7.8	%)
Bank			14.98	%			14.84	%			0.14	%		1.0	%			16.22	%			(1.24	%)		(7.7	%)
Tangible common equity per share		$	17.76			$	17.08			$	0.68			4.0	%		$	15.61			$	2.15			13.8	%
Loan-to-Deposit (LTD) ratio			79.67	%			75.38	%			4.29	%		5.7	%			94.95	%			(15.28	%)		(16.1	%)
Nonperforming assets		$	747			$	768			$	(21	)		(2.7	%)		$	2,361			$	(1,614	)		(68.4	%)
Nonperforming assets as a % of loans receivable			0.06	%			0.06	%			-			-				0.23	%			(0.17	%)		(73.9	%)
ALLL as a % of loans receivable			1.14	%			1.19	%			(0.05	%)		(4.2	%)			1.38	%			(0.24	%)		(17.4	%)
ALLL as a % of loans receivable exc. SBA PPP loans			1.18	%			1.26	%			(0.08	%)		(6.3	%)			1.51	%			(0.33	%)		(21.9	%)
¹ Includes AFS and HTM

FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3
(Dollars in thousands, except per share amounts)
		Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
Interest income		$	17,553			$	17,437			$	14,923			$	14,372			$	13,613
Interest expense			1,265				1,337				1,358				1,533				1,830
Net interest income			16,288				16,100				13,565				12,839				11,783
Provision for loan losses			(800	)			-				-				500				1,600
Net interest income after provision for loan losses			17,088				16,100				13,565				12,339				10,183
Gain on sale of loans			4,151				4,305				3,988				2,456				1,484
Gain (loss) on sale of OREO			-				-				-				-				-
SBA servicing fee income, net			683				698				622				847				701
Reversal of valuation allowance on servicing assets			-				-				-				-				894
Service charges and other income			499				540				395				379				364
Noninterest income			5,333				5,543				5,005				3,682				3,443
Salaries and employee benefits			6,614				6,500				6,000				4,853				5,477
Occupancy and equipment			1,028				1,067				945				979				936
Marketing expense			111				287				309				287				133
Professional expense			368				495				491				455				478
Merger related expense			454				450				600				681				40
Other expenses			2,850				1,807				1,356				1,300				1,329
Noninterest expense			11,425				10,606				9,701				8,555				8,393
Income before income tax expense			10,996				11,037				8,869				7,466				5,233
Income tax expense			2,984				3,156				2,566				2,132				1,519
Net income		$	8,012			$	7,881			$	6,303			$	5,334			$	3,714
Effective tax rate			27.1	%			28.6	%			28.9	%			28.6	%			29.0	%
Outstanding number of shares			10,284,962				10,284,962				10,279,962				10,247,292				10,247,292
Weighted average shares for basic EPS			10,284,962				10,280,016				10,262,956				10,247,292				10,247,292
Weighted average shares for diluted EPS			10,424,771				10,427,687				10,392,427				10,300,518				10,285,410
Basic EPS		$	0.78			$	0.77			$	0.61			$	0.52			$	0.36
Diluted EPS		$	0.77			$	0.75			$	0.61			$	0.52			$	0.36

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)
		At or for the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
Salaries and benefits		$	6,614			$	6,500			$	6,000			$	4,853			$	5,477
FTE at the end of period			205				200				183				186				183
Average FTE during the period			201				202				182				187				184
Salaries and benefits/average FTE¹		$	131			$	127			$	132			$	105			$	118
Salaries and benefits/average assets¹			1.39	%			1.43	%			1.33	%			1.44	%			1.58	%
Noninterest expense/average assets¹			2.40	%			2.33	%			2.16	%			2.34	%			2.42	%
1 Annualized

FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)
		December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
ASSETS
Cash and due from banks		$	7,702			$	11,621			$	10,509			$	9,215			$	8,750
Interest-earning deposits at the FRB and other banks			284,583				386,087				240,932				129,713				153,908
Investment securities¹			84,238				86,440				82,354				83,409				85,914
Loans held-for-sale, at the lower of cost or fair value			158,128				136,394				96,554				76,066				59,077
Loans receivable			1,241,319				1,255,814				1,133,371				1,113,629				1,043,662
Allowance for loan losses			(14,192	)			(15,000	)			(14,908	)			(14,888	)			(14,366	)
Loans receivable, net			1,227,127				1,240,814				1,118,463				1,098,741				1,029,296
OREO			-				-				-				-				-
Restricted stock investments			8,850				8,850				8,850				8,196				8,196
Servicing assets			10,632				10,392				10,189				10,000				9,873
Goodwill			2,185				2,269				-				-				-
Intangible assets			360				375				-				-				-
Other assets			24,996				25,859				45,071				21,431				20,233
Total assets		$	1,808,801			$	1,909,101			$	1,612,922			$	1,436,771			$	1,375,247
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing		$	619,774			$	670,489			$	572,284			$	408,738			$	335,219
Interest-bearing			938,338				995,574				806,397				782,778				763,906
Total deposits			1,558,112				1,666,063				1,378,681				1,191,516				1,099,125
FHLB advances			50,000				50,000				50,000				65,000				105,000
Other liabilities			15,447				14,719				13,026				15,170				11,145
Total liabilities			1,623,559				1,730,782				1,441,707				1,271,686				1,215,270
Stockholders' Equity			185,242				178,319				171,215				165,085				159,977
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,808,801			$	1,909,101			$	1,612,922			$	1,436,771			$	1,375,247
¹ Includes AFS and HTM

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)
		December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
		Balance			%			Balance			%			Balance			%			Balance			%			Balance			%
Construction		$	23,939		1.9	%		$	21,725		1.7	%		$	18,753		1.7	%		$	15,858		1.4	%		$	13,685		1.3	%
Commercial real estate			978,995		78.9	%			971,387		77.4	%			893,700		78.9	%			855,861		76.9	%			820,355		78.6	%
Commercial and industrial			169,489		13.7	%			198,217		15.8	%			217,350		19.2	%			237,865		21.4	%			205,883		19.7	%
Home mortgage			61,030		4.9	%			60,075		4.8	%			-		-				-		-				-		-
Consumer			4,269		0.3	%			2,185		0.2	%			2,236		0.2	%			3,504		0.3	%			2,439		0.2	%
Gross loans			1,237,722		99.7	%			1,253,589		99.8	%			1,132,039		99.9	%			1,113,088		100.0	%			1,042,362		99.9	%
Net deferred loan fees/costs			3,597		0.3	%			2,225		0.2	%			1,332		0.1	%			541		0.0	%			1,300		0.1	%
Loans receivable		$	1,241,319		100.0	%		$	1,255,814		100.0	%		$	1,133,371		100.0	%		$	1,113,629		100.0	%		$	1,043,662		100.0	%
Loans held-for-sale		$	158,128					$	136,394					$	96,554					$	76,066					$	59,077
Loans receivable, including loans held-for-sale		$	1,399,447					$	1,392,208					$	1,229,925					$	1,189,695					$	1,102,739

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7
(Dollars in thousands)
		Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
SBA loans held-for-sale at beginning of the quarter/year		$	136,394			$	96,554			$	76,066			$	59,077			$	53,755
SBA loans originated/transferred from/to held-for-investment during the quarter/year			68,136				82,303				62,864				48,152				26,837
SBA loans sold during the quarter/year			(42,210	)			(42,019	)			(42,163	)			(30,238	)			(20,382	)
SBA loans principal payment, net of advance			(4,193	)			(444	)			(213	)			(925	)			(1,133	)
SBA loans held-for-sale at end of the quarter/year		$	158,128			$	136,394			$	96,554			$	76,066			$	59,077
Gain on sale of SBA loans		$	4,151			$	4,305			$	4,305			$	3,988			$	2,456
Premium on sale (weighted average)			11.1	%			11.5	%			11.9	%			10.9	%			10.7	%
SBA loan production		$	82,448			$	93,986			$	78,058			$	123,762			$	37,116
Non-PPP loans			82,448				93,986				75,065				71,204				37,116
PPP loans			-				-				2,994				52,558				-

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8
(Dollars in thousands)
		Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
SBA servicing assets @ beginning of the quarter/year		$	10,392			$	10,189			$	10,000			$	9,873			$	9,043
Newly added SBA servicing assets from SBA loans sold			1,006				920				897				635				441
Regular quarterly/annual servicing assets amortization			(453	)			(421	)			(422	)			(358	)			(392	)
SBA servicing assets amortized from SBA loans paid off/charged off			(313	)			(296	)			(286	)			(150	)			(113	)
Subtotal before impairment			10,632				10,392				10,189				10,000				8,979
Reversal of valuation allowance on servicing assets			-				-				-				-				894
SBA servicing assets @ the end of the quarter/year		$	10,632			$	10,392			$	10,189			$	10,000			$	9,873

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)
		December 31, 2021					September 30, 2021					June 30, 2021					March 31, 2021					December 31, 2020
		Balance			%		Balance			%		Balance			%		Balance			%		Balance			%
Noninterest-bearing demand		$	619,774		39.8%		$	670,489		40.2%		$	572,284		41.5%		$	408,738		34.3%		$	335,219		30.5%
Interest-bearing demand			10,723		0.7%			10,904		0.7%			-		-			-		-			-		-
NOW & MMDA			325,313		20.9%			376,549		22.6%			291,437		21.1%			270,531		22.7%			260,374		23.7%
Savings			76,588		4.9%			75,497		4.5%			41,284		3.0%			46,280		3.9%			51,659		4.7%
TCDs of $250K and under			259,758		16.7%			264,130		15.9%			219,174		15.9%			226,611		19.0%			232,192		21.1%
TCDs of $250K over			174,939		11.2%			177,477		10.7%			158,485		11.5%			151,094		12.7%			150,143		13.7%
Wholesale TCDs			91,017		5.8%			91,017		5.5%			96,017		7.0%			88,262		7.4%			69,538		6.3%
Total Deposits		$	1,558,112		100.0%		$	1,666,063		100.0%		$	1,378,681		100.0%		$	1,191,516		100.0%		$	1,099,125		100.0%
Recap:
Noninterest-bearing demand		$	619,774		39.8%		$	670,489		40.2%		$	572,284		41.5%		$	408,738		34.3%		$	335,219		30.5%
Interest-bearing demand			10,723		0.7%			10,904		0.7%			-		-			-		-			-		-
NOW & MMDA			325,313		20.9%			376,549		22.6%			291,437		21.1%			270,531		22.7%			260,374		23.7%
Savings			76,588		4.9%			75,497		4.5%			41,284		3.0%			46,280		3.9%			51,659		4.7%
TCDs of $250K and under			259,758		16.7%			264,130		15.9%			219,174		15.9%			226,611		19.0%			232,192		21.1%
Core Deposits			1,292,156		82.9%			1,397,569		83.9%			1,124,179		81.5%			952,160		79.9%			879,444		80.0%
TCDs of $250K over			174,939		11.2%			177,477		10.7%			158,485		11.5%			151,094		12.7%			150,143		13.7%
Wholesale TCDs			91,017		5.8%			91,017		5.5%			96,017		7.0%			88,262		7.4%			69,538		6.3%
Noncore Deposits			265,956		17.1%			268,494		16.1%			254,502		18.5%			239,356		20.1%			219,681		20.0%
Total Deposits		$	1,558,112		100.0%		$	1,666,063		100.0%		$	1,378,681		100.0%		$	1,191,516		100.0%		$	1,099,125		100.0%

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10
(Dollars in thousands)
		4th Qtr.				3rd Qtr.				2nd Qtr.				1st Qtr.				4th Qtr.
		2021				2021				2021				2021				2020
Allowance for Loan Losses
Balance at beginning of period		$	15,000			$	14,908			$	14,888			$	14,366			$	13,614
Provision for loan losses			(800	)			-				-				500				1,600
Charge-offs			(89	)			-				-				(2	)			(907	)
Recoveries			81				92				20				24				59
Balance at the end of period		$	14,192			$	15,000			$	14,908			$	14,888			$	14,366
Nonperforming Assets:¹
Over 90 days still accruing		$	-			$	-			$	-			$	-			$	2
Nonaccrual loans			747				768				1,339				1,347				2,359
Total nonperforming loans			747				768				1,339				1,347				2,361
Other real estate owned			-				-				-				-				-
Total nonperforming assets		$	747			$	768			$	1,339			$	1,347			$	2,361
Classified Assets:¹
Substandard		$	11,156			$	10,672			$	10,052			$	9,843			$	18,920
Doubtful			-				-				-				-				68
Loss			-				-				-				-				-
Total classified loans		$	11,156			$	10,672			$	10,052			$	9,843			$	18,988
Other real estate owned			-				-				-				-				-
Total classified assets		$	11,156			$	10,672			$	10,052			$	9,843			$	18,988
Performing TDR loans:		$	3,521			$	3,658			$	3,776			$	2,516			$	2,847
Delinquent Loans:¹
Loans 30-89 days past due		$	267			$	1,688			$	2,524			$	1,681			$	3,095
90 days or more past due and still accruing			-				-				-				-				2
Nonaccrual			747				768				1,339				1,347				2,359
Total delinquent loans		$	1,014			$	2,456			$	3,863			$	3,028			$	5,456
Asset Quality Ratios:
Net (recoveries) charge-offs to average loans²			0.00	%			(0.03	%)			(0.01	%)			(0.01	%)			0.32	%
Nonaccrual loans to loans receivable			0.06	%			0.06	%			0.12	%			0.12	%			0.23	%
Nonperforming loans to loans receivable			0.06	%			0.06	%			0.12	%			0.12	%			0.23	%
Nonperforming assets to total assets			0.04	%			0.04	%			0.08	%			0.09	%			0.17	%
Classified loans to loans receivable			0.90	%			0.85	%			0.89	%			0.88	%			1.82	%
Classified loans to Tier 1 and ALLL			5.67	%			5.53	%			5.40	%			5.47	%			10.89	%
Classified assets to total assets			0.62	%			0.56	%			0.62	%			0.69	%			1.38	%
Classified assets to Tier 1 and ALLL			5.67	%			5.53	%			5.40	%			5.47	%			10.89	%
ALLL to loans receivable			1.14	%			1.19	%			1.32	%			1.34	%			1.38	%
ALLL to loans receivable exc. SBA PPP loans			1.18	%			1.26	%			1.42	%			1.48	%			1.51	%
ALLL to nonaccrual loans			1899.87	%			1953.13	%			1113.37	%			1105.27	%			608.99	%
ALLL to nonperforming loans			1899.87	%			1953.13	%			1113.37	%			1105.27	%			608.47	%
ALLL to nonperforming assets			1899.87	%			1953.13	%			1113.37	%			1105.27	%			608.47	%
Texas ratio ³			0.38	%			0.40	%			0.72	%			0.75	%			1.35	%

1	Net of SBA guaranteed balance
2	Includes loans held-for-sale
3	Nonperforming assets divided by tangible common equity and ALLL

FIVE-QUARTER CAPITAL RATIOS (Unaudited) - Table 11
		Well Capitalized		Adequately Capitalized		December 31,		September 30,		June 30,		March 31,		December 31,
		Regulatory		BASEL III
		Requirement		Fully Phased In		2021		2021		2021		2021		2020
Leverage ratio
Company		N/A		N/A		9.55%		9.61%		11.35%		11.89%		11.56%
Bank		5.00%		4.00%		9.55%		9.60%		11.33%		11.87%		11.54%
Common equity tier 1 risk-based capital ratio
Company		N/A		N/A		13.84%		13.61%		14.39%		15.00%		15.01%
Bank		6.50%		7.00%		13.83%		13.59%		14.37%		14.98%		14.97%
Tier 1 risk-based capital ratio
Company		N/A		N/A		13.84%		13.61%		14.39%		15.00%		15.01%
Bank		8.00%		8.50%		13.83%		13.59%		14.37%		14.98%		14.97%
Total risk-based capital ratio
Company		N/A		N/A		14.99%		14.86%		15.64%		16.25%		16.26%
Bank		10.00%		10.50%		14.98%		14.84%		15.62%		16.23%		16.22%
Tangible common equity/total assets						10.11%		9.21%		10.62%		11.49%		11.63%
Tangible common equity per share						$ 17.76		$ 17.08		$ 16.66		$ 16.11		$ 15.61

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)
		Three Months Ended
		December 31, 2021											September 30, 2021											June 30, 2021											March 31, 2021											December 31, 2020
		Avg Balance				Interest			Yield				Avg Balance				Interest			Yield				Avg Balance				Interest			Yield				Avg Balance				Interest			Yield				Avg Balance				Interest			Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans ¹		$	1,396,201			$	16,893		4.80	%			$	1,390,851			$	16,800		4.79	%			$	1,195,908			$	14,338		4.81	%			$	1,138,134			$	13,837		4.93	%			$	1,066,368			$	13,045		4.87	%
Investment securities²			85,555				454		2.11	%				87,585				460		2.08	%				83,152				442		2.13	%				84,679				448		2.15	%				87,818				474		2.15	%
Interest-earning deposits at the FRB and other banks			365,501				144		0.16	%				282,512				112		0.16	%				168,677				54		0.13	%				108,127				36		0.14	%				191,703				59		0.12	%
Other earning assets			8,850				115		5.16	%				8,925				116		5.16	%				8,737				135		6.20	%				8,196				97		4.80	%				8,196				81		3.93	%
Total interest-earning assets ²			1,856,107				17,606		3.76	%				1,769,873				17,488		3.92	%				1,456,474				14,969		4.12	%				1,339,136				14,418		4.37	%				1,354,085				13,659		4.01	%
NONINTEREST-EARNING ASSETS
Cash and due from banks			13,318											13,079											10,752											10,025											10,234
Other noninterest-earning assets			37,774											36,548											32,002											31,156											28,903
Total noninterest-earning assets			51,092											49,627											42,754											41,181											39,137
Less: Allowance for loan losses			(14,849	)										(14,958	)										(14,899	)										(14,381	)										(13,505	)
TOTAL ASSETS		$	1,892,350										$	1,804,542										$	1,484,329										$	1,365,936										$	1,379,717
INTEREST-BEARING DEPOSITS
Interest-bearing demand		$	27,904			$	3		0.04	%			$	36,670			$	4		0.04	%			$	13,373			$	2		0.06	%			$	15,813			$	2		0.05	%			$	11,444			$	4		0.14	%
Money market			338,937				401		0.47	%				312,606				388		0.49	%				263,845				352		0.54	%				265,856				366		0.56	%				240,913				360		0.59	%
Savings			77,057				68		0.35	%				74,266				71		0.38	%				43,433				55		0.51	%				48,284				60		0.50	%				55,756				77		0.55	%
Time deposits			527,634				674		0.51	%				542,901				756		0.55	%				469,000				831		0.71	%				451,347				975		0.88	%				447,839				1,236		1.10	%
Total interest-bearing deposits			971,532				1,146		0.47	%				966,443				1,219		0.50	%				789,651				1,240		0.63	%				781,300				1,403		0.73	%				755,952				1,677		0.88	%
Borrowings			50,000				119		0.94	%				50,000				118		0.94	%				51,539				118		0.92	%				65,667				130		0.80	%				88,645				153		0.69	%
Total interest-bearing liabilities			1,021,532				1,265		0.49	%				1,016,443				1,337		0.52	%				841,190				1,358		0.65	%				846,967				1,533		0.73	%				844,597				1,830		0.86	%
Noninterest-bearing deposits			673,154											597,056											459,695											343,904											363,937
Other liabilities			16,420											16,046											13,906											11,942											12,623
Stockholders' equity			181,244											174,997											169,538											163,123											158,560
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,892,350										$	1,804,542										$	1,484,329										$	1,365,936										$	1,379,717
Net interest income²						$	16,341										$	16,151										$	13,611										$	12,885										$	11,829
Net interest spread									3.27	%										3.40	%										3.47	%										3.64	%										3.15	%
Effect of noninterest-bearing sources									0.22	%										0.22	%										0.28	%										0.26	%										0.33	%
Net interest margin²									3.49	%										3.62	%										3.75	%										3.90	%										3.48	%
Cost of deposits		$	1,644,686			$	1,146		0.28	%			$	1,563,499			$	1,219		0.31	%			$	1,249,346			$	1,240		0.40	%			$	1,125,204			$	1,403		0.51	%			$	1,119,889			$	1,677		0.60	%
Cost of funds		$	1,694,686			$	1,265		0.30	%			$	1,613,499			$	1,337		0.33	%			$	1,300,885			$	1,358		0.42	%			$	1,190,871			$	1,533		0.52	%			$	1,208,534			$	1,830		0.60	%

1	Includes loans held-for-sale
²	Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

FIVE-QUARTER COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 13
(Dollars in thousands)
		Three Months Ended
		December 31, 2021							September 30, 2021							June 30, 2021							March 31, 2021							December 31, 2020
		Amount			Yield				Amount			Yield				Amount			Yield				Amount			Yield				Amount			Yield
Contractual yield		$	15,142		4.30	%			$	15,032		4.29	%			$	12,670		4.25	%			$	12,148		4.33	%			$	11,727		4.38	%
SBA discount accretion			1,024		0.29	%				1,038		0.30	%				1,027		0.34	%				738		0.26	%				730		0.27	%
Prepayment penalties & late fees			72		0.02	%				41		0.01	%				89		0.03	%				121		0.04	%				177		0.07	%
Amortization of net deferred costs			655		0.19	%				689		0.20	%				552		0.19	%				830		0.30	%				411		0.15	%
As reported yield on loans		$	16,893		4.80	%			$	16,800		4.79	%			$	14,338		4.81	%			$	13,837		4.93	%			$	13,045		4.87	%

MARGIN ANALYSIS (Unaudited) - Table 14
(Dollars in thousands)
		Twelve Months Ended
		December 31, 2021												December 31, 2020
		Avg Balance				Interest			Yield					Avg Balance				Interest			Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans ¹		$	1,281,283			$	61,868		4.83	%				$	1,018,407			$	51,892		5.10	%
Investment securities²			85,251				1,804		2.12	%					91,001				2,072		2.28	%
Interest-earning deposits at the FRB and other banks			232,050				346		0.15	%					143,141				350		0.24	%
Other earning assets			8,679				463		5.33	%					8,195				376		4.59	%
Total interest-earning assets ²			1,607,263				64,481		4.01	%					1,260,744				54,690		4.34	%
NONINTEREST-EARNING ASSETS
Cash and due from banks			11,806												9,555
Other noninterest-earning assets			34,068												30,557
Total noninterest-earning assets			45,874												40,112
Less: Allowance for loan losses			(14,773	)											(11,837	)
TOTAL ASSETS		$	1,638,364											$	1,289,019
INTEREST-BEARING DEPOSITS
Interest-bearing demand		$	23,509			$	11		0.05	%				$	12,087			$	18		0.15	%
Money market			295,559				1,507		0.51	%					180,640				1,539		0.85	%
Savings			60,876				254		0.42	%					64,232				658		1.02	%
Time deposits			498,053				3,236		0.65	%					491,281				8,936		1.82	%
Total interest-bearing deposits			877,997				5,008		0.57	%					748,240				11,151		1.49	%
Borrowings			54,247				485		0.89	%					90,471				560		0.62	%
Total interest-bearing liabilities			932,244				5,493		0.59	%					838,711				11,711		1.40	%
Noninterest-bearing deposits			519,570												282,045
Other Liabilities			14,267												14,072
Stockholders' equity			172,283												154,191
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,638,364											$	1,289,019
Net interest income²						$	58,988											$	42,979
Net interest spread									3.42	%											2.94	%
Effect of noninterest-bearing sources									0.25	%											0.47	%
Net interest margin²									3.67	%											3.41	%
Cost of deposits		$	1,397,567			$	5,008		0.36	%				$	1,030,285			$	11,151		1.08	%
Cost of funds		$	1,451,814			$	5,493		0.38	%				$	1,120,756			$	11,711		1.04	%

1	Includes loans held-for-sale
²	Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate

COMPONENTS OF YIELD ON LOANS (Unaudited) - Table 15
(Dollars in thousands)
		Twelve Months Ended
		December 31, 2021						December 31, 2020
		Amount			Yield			Amount			Yield
Contractual yield		$	54,992		4.29	%		$	47,272		4.65	%
SBA discount accretion			3,827		0.30	%			3,197		0.31	%
Prepayment penalties & late fees			323		0.03	%			528		0.05	%
Amortization of net deferred costs			2,726		0.21	%			895		0.09	%
As reported yield on loans		$	61,868		4.83	%		$	51,892		5.10	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005994/en/

Douglas J Goddard, EVP & CFO

(323) 988-3010

DouglasG@cbb-bank.com

Source: CBB Bancorp, Inc.

FAQ

What were CBBI's earnings results for Q4 2021?

CBBI reported net income of $8.0 million, or $0.77 per diluted share, for Q4 2021.

How did CBBI perform compared to 2020?

CBBI's annual net income for 2021 was $27.5 million, a 178.6% increase from $9.9 million in 2020.

What factors influenced CBBI's 2021 performance?

Strong SBA loan originations and sales contributed significantly to CBBI's 2021 performance.

What is CBBI's net interest margin for Q4 2021?

CBBI's net interest margin for Q4 2021 was 3.49%, a slight decrease from 3.62% in Q3.

How much did CBBI's noninterest expense increase in Q4 2021?

Noninterest expense rose to $11.4 million in Q4 2021, up from $10.6 million in Q3.