CBB Bancorp, Inc. Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

CBB Bancorp, Inc. (OTCQX: CBBI) reported a net income of $6.5 million for Q2 2022, or $0.62 per diluted share, down 23.2% from the previous quarter but up 2.4% year-over-year. The decline was attributed to elevated loan loss provisions amid increased past due loans. Despite this, net interest income grew to $16.4 million, a 3.9% quarterly rise, benefiting from loan growth and higher asset yields. Net interest margin remained stable at 3.75% and noninterest expenses decreased slightly. The company’s return on average assets fell to 1.43% compared to the prior quarter.

Positive

• Net interest income increased by 3.9% quarter-over-quarter and 21.2% year-over-year.
• Net interest margin improved to 3.75%, showing stability compared to last year.
• Noninterest expense decreased to $10.4 million from $10.9 million in Q1 2022.

Negative

• Net income decreased by 23.2% compared to the previous quarter.
• Increase in loan loss provision to $1.6 million due to rising delinquency rates.
• Return on average assets dropped to 1.43%, down from 1.91% in Q1 2022.

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 second quarter 2022 of $6.5 million, or $0.62 per diluted share, a decrease of 23.2% compared to $8.4 million, or $0.80 per diluted share, in the prior quarter and an increase of 2.4% compared to $6.3 million, or $0.61 per diluted share, in the same period last year.

Overall Results

Net income for second quarter 2022 was affected by higher loan loss provisions during the quarter as a result of increases in past due and classified loans and growth in the loan portfolio. Core earnings remained strong, as our net interest margin and efficiency ratio improved from the prior quarter. Our return on average assets for second quarter 2022 was 1.43% compared to 1.91% for first quarter 2022 and 1.70% for second quarter 2021. Our return on average equity for second quarter 2022 was 13.30%, compared to 18.08% for first quarter 2022 and 14.91% for second quarter 2021. Our net interest margin for second quarter 2022 was 3.75%, compared to 3.68% for first quarter 2022 and 3.75% for second quarter 2021. Our efficiency ratio for second quarter 2022 was 49.45%, compared to 50.71% for first quarter 2022 and 52.24% for second quarter 2021.

James Hong, President and CEO, commented, “We are pleased to announce strong core earnings for the second quarter of 2022, despite the uncertain economic climate. We continue to see opportunities to add to our core earnings going forward through the addition of quality loan and deposit customers.”

Net Interest Income and Margin

Net Interest Income

Net interest income for second quarter 2022 was $16.4 million, an increase of $615 thousand, or 3.9%, from first quarter 2022, and an increase of $2.9 million, or 21.2%, from second quarter 2021. The increase in net interest income compared with the prior quarter was driven by loan growth, as well as an increase in variable rate asset yields due to recent increases in interest rates by the Federal Reserve Bank. Net interest income growth compared with the second quarter of 2021 also benefited from the merger with Ohana Pacific Bank (OPB) as of July 1, 2021.

Net Interest Margin

Our net interest margin for second quarter 2022 was 3.75%, compared to 3.68% for first quarter 2022 and 3.75% for second quarter 2021. The increase in net interest margin compared to first quarter 2022 was due to increased interest income on cash and due from banks balances, which are immediately affected by the Federal Reserve’s interest rate changes. Our cost of funds for second quarter 2022 increased to 0.34% from 0.31% for first quarter 2022 and decreased from 0.42% for second quarter 2021.

Provision for Loan Losses:

The Company had a provision for loan losses for second quarter 2022 of $1.6 million, compared to a recovery of $1.2 million for first quarter 2022 and no provision for loan losses for second quarter 2021. The provision recorded for the current quarter was due to moderate increases in delinquencies and classified assets and growth in the loan portfolio. See Table 10 in this press release for additional information and trends.

Noninterest Income:

Noninterest income for second quarter 2022 was $4.5 million, compared to $5.6 million for first quarter 2022 and $5.0 million for second quarter 2021. The decrease in noninterest income in second quarter 2022 was primarily the result of decreased gains on sales of loans. Sales of SBA loans were $50.8 million with an average premium percentage received of 8.0% during the second quarter of 2022, compared with SBA loan sales of $50.5 million with an average premium percentage received of 11.0% during the first quarter of 2022 and SBA loan sales of $42.2 million with an average premium percentage received of 11.9% during the second quarter of 2021.

Noninterest Expense:

Noninterest expense for second quarter 2022 was $10.4 million, compared to $10.9 million for first quarter 2022 and $9.7 million for second quarter 2021. Salaries and employee benefits were substantially unchanged at $7.0 million in second quarter 2022 compared with the prior quarter, and up from $6.0 million in the second quarter of 2021. The decrease in other expenses compared to the first quarter of 2022 was in part due to the reversal of a provision for probable loss of $800 thousand that had been established with respect to an anticipated repurchase of SBA loans sold. The reversal was recorded to reflect the final settlement that was made with the SBA on the loans in question. The increased noninterest expense levels in the second quarter of 2022 compared to the prior year is primarily due to the inclusion of the operations of OPB, acquired as of July 1, 2021, for the full period.

Income Taxes:

The Company’s effective tax rate for second quarter 2022 was 28.3% compared to 28.4% for first quarter 2022 and 28.9% for second quarter 2021.

Balance Sheet:

Investment Securities:

Investment securities were $77.5 million at June 30, 2022, a decrease of $2.6 million from March 31, 2022 and $4.9 million from June 30, 2021. The decreases were due to principal paydowns. There were no portfolio additions in second quarter 2022, or in the comparable period of 2021.

Loans Receivable:

Loans receivable (including loans held for sale) at June 30, 2022 was $1.4 billion, an increase of $26.6 million, or 1.9%, from loans receivable at March 31, 2022, and an increase of $172.1 million, or 14.0%, from loans receivable at June 30, 2021. The increase in loan balances compared with the second quarter of 2021 was due to the $149.2 million in loans receivable that were acquired in the OPB merger as of July 1, 2021, as well as organic growth.

Our weighted average loan-to-value ratio of commercial real estate loans was 69.9% at June 30, 2022. Excluding SBA loans, our weighted average loan-to-value of CRE loans was 53.8%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 2Q 2022 Overview and COVID-19 update presentation.

Paycheck Protection Program (PPP):

PPP loans totaled $10.7 million at June 30, 2022. Net unearned fees on PPP loans as of June 30, 2022 were $271 thousand, and these fees are being accreted to income based on a two-year contractual maturity. The SBA approved $10.2 million in PPP loan forgiveness applications processed for our PPP loans in second quarter 2022.

Allowance for Loan Losses and Asset Quality:

Our allowance for loan losses at June 30, 2022 was $14.7 million, or 1.17% of portfolio loans, compared to $13.1 million, or 1.07% of portfolio loans, at March 31 2022 and compared to $14.9 million, or 1.32% of portfolio loans, at June 30, 2021. Excluding PPP loans of $10.7. million, which are government guaranteed, the allowance for loan losses at June 30, 2022 was 1.18%, compared to 1.09% and 1.42%, respectively, at March 31, 2022 and June 30, 2021. The decrease in the allowance as a percentage of the portfolio in the current quarter compared with the prior year is primarily due to loans acquired in the OPB merger, which have been recorded at market value and do not currently carry any loan loss allowance. Non-performing loans were $2.5 million at June 30, 2022, compared to $723 thousand at March 31, 2022 and $1.3 million at June 30, 2021. Loans with payment deferments are considered to be performing loans in accordance with regulatory guidance. Our coverage ratio of allowance for loan losses to nonperforming assets exceeded 500%. For additional information, please go to www.cbb-bank.com under tab “About Us” and select “Investors Relations” to see 2Q 2022 Overview and COVID-19 update presentation.

SBA Loans Held for Sale:

SBA loans held for sale at June 30, 2022 were $141.1 million, compared to $149.7 million at March 31, 2022 and $96.6 million at June 30, 2021. 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 $1.5 billion at June 30, 2022, down $18.6 million, or 1.2%, from March 31, 2022 and up $136.7 million, or 9.9%, from June 30, 2021. Noninterest-bearing demand deposits (“DDAs”) decreased $9.8 million, or 1.7%, to $566.6 million at June 30, 2022 from March 31, 2022 and decreased $5.7 million, or 1.0%, from June 30, 2021. DDAs were 38.2% of total deposits at June 30, 2022, compared to 38.4% at March 31, 2022 and 41.5% at June 30, 2021. NOW and MMDA accounts decreased $17.0 million, or 4.9%, to $327.5 million at June 30, 2022 from March 31, 2022 and increased $36.0 million, or 12.4%, from June 30, 2021. Time deposits increased $13.4 million, or 2.6%, at June 30, 2022 from March 31, 2022 and increased $61.1 million, or 12.9%, from June 30, 2021. Time deposits at June 30, 2022 were $534.7 million, or 35.3% of total deposits, compared to $521.4 million, or 34.0% of total deposits, at March 31, 2022, and $473.7 million, or 34.4% of total deposits, at June 30, 2021. The primary cause of the decreases in noninterest bearing deposit balances during 2022 compared with earlier quarters was a decline in escrow-related deposits sourced from our Specialty Deposit Group. The increase in total deposits compared with the second quarter of 2021 was due to normal growth combined with the completion of the merger with OPB during the third quarter of 2021.

Borrowings:

Borrowings at June 30, 2022, March 31, 2022 and June 30, 2021 consisted of $50.0 million of Federal Home Loan Bank of San Francisco advances at each date.

Capital:

Stockholders’ equity was $197.1 million at June 30, 2022, representing an increase of $6.0 million, or 3.2%, over stockholders’ equity of $191.1 million at March 31, 2022. Tangible book value per share at June 30, 2022 was $18.68, compared with $18.31 at March 31, 2022, an increase of $0.37 per share or 2.0%.

All of our regulatory capital ratios continue to exceed the minimum levels required to be considered “Well Capitalized” as defined for bank regulatory purposes and in compliance with the fully phased-in Basel III requirements, as shown on Table 11 in this press release. Our Common Equity Tier 1 risked-based capital at June 30, 2022 was 14.47% at the Company level and 14.38% 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 June 30, 2022, the Bank has ten full-service banking offices 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 2Q 2022 Overview and COVID-19 update presentation.

FORWARD-LOOKING STATEMENTS:

This press 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 the anticipated 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 anticipated 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; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently by investors and stock market analysts; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations or the behavior of our loan and deposit customers; changes in 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 our information technology security systems or those of our third party service providers; 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																										Six Months Ended
		June 30,				March 31,				$				%			June 30,				$				%			June 30,				June 30,				$				%
		2022				2022				Change				Change			2021				Change				Change			2022				2021				Change				Change
Interest income		$	17,807			$	17,032			$	775			4.6	%		$	14,923			$	2,884			19.3	%		$	34,839			$	29,295			$	5,544			18.9	%
Interest expense			1,369				1,209				160			13.2	%			1,358				11			0.8	%			2,578				2,891				(313	)		(10.8	%)
Net interest income			16,438				15,823				615			3.9	%			13,565				2,873			21.2	%			32,261				26,404				5,857			22.2	%
Provision for loan losses			1,600				(1,167	)			2,767			(237.1	%)			-				1,600			100.0	%			433				500				(67	)		(13.4	%)
Net interest income after provision for loan losses			14,838				16,990				(2,152	)		(12.7	%)			13,565				1,273			9.4	%			31,828				25,904				5,924			22.9	%
Gain on sale of loans			3,298				4,668				(1,370	)		(29.3	%)			3,988				(690	)		(17.3	%)			7,966				6,444				1,522			23.6	%
Gain (loss) on sale of OREO			-				-				-			-				-				-			-				-				-				-			-
SBA servicing fee income, net			778				469				309			65.9	%			622				156			25.1	%			1,247				1,469				(222	)		(15.1	%)
Reversal of valuation allowance on servicing assets			-				-				-			-				-				-			-				-				-				-			-
Service charges and other income			462				498				(36	)		(7.2	%)			395				67			17.0	%			960				774				186			24.0	%
Noninterest income			4,538				5,635				(1,097	)		(19.5	%)			5,005				(467	)		(9.3	%)			10,173				8,687				1,486			17.1	%
Salaries and employee benefits			6,994				7,065				(71	)		(1.0	%)			6,000				994			16.6	%			14,059				10,853				3,206			29.5	%
Occupancy and equipment			1,114				1,120				(6	)		(0.5	%)			945				169			17.9	%			2,234				1,924				310			16.1	%
Marketing expense			511				485				26			5.4	%			309				202			65.4	%			996				596				400			67.1	%
Professional expense			517				415				102			24.6	%			491				26			5.3	%			932				946				(14	)		(1.5	%)
Merger related expense			123				-				123			100.0	%			600				(477	)		(79.5	%)			123				1,281				(1,158	)		(90.4	%)
Other expenses			1,114				1,796				(682	)		(38.0	%)			1,356				(242	)		(17.8	%)			2,910				2,656				254			9.6	%
Noninterest expense			10,373				10,881				(508	)		(4.7	%)			9,701				672			6.9	%			21,254				18,256				2,998			16.4	%
Income before income tax expense			9,003				11,744				(2,741	)		(23.3	%)			8,869				134			1.5	%			20,747				16,335				4,412			27.0	%
Income tax expense			2,547				3,336				(789	)		(23.7	%)			2,566				(19	)		(0.7	%)			5,883				4,698				1,185			25.2	%
Net income		$	6,456			$	8,408			$	(1,952	)		(23.2	%)		$	6,303			$	153			2.4	%		$	14,864			$	11,637			$	3,227			27.7	%
Effective tax rate			28.3	%			28.4	%			(0.1	%)		(0.4	%)			28.9	%			(0.6	%)		(2.2	%)			28.4	%			28.8	%			(0.4	%)		(1.4	%)
Outstanding number of shares			10,416,601				10,299,361				117,240			1.1	%			10,279,962				136,639			1.3	%			10,416,601				10,279,962				136,639			1.3	%
Weighted average shares for basic EPS			10,305,014				10,291,071				13,943			0.1	%			10,262,956				42,058			0.4	%			10,298,081				10,255,167				42,914			0.4	%
Weighted average shares for diluted EPS			10,409,663				10,479,488				(69,825	)		(0.7	%)			10,392,427				17,236			0.2	%			10,441,230				10,346,516				94,714			0.9	%
Basic EPS		$	0.62			$	0.82			$	(0.20	)		(24.4	%)		$	0.61			$	0.01			1.6	%		$	1.44			$	1.13			$	0.31			27.4	%
Diluted EPS		$	0.62			$	0.80			$	(0.18	)		(22.5	%)		$	0.61			$	0.01			1.6	%		$	1.42			$	1.13			$	0.29			25.7	%
Return on average assets			1.43	%			1.91	%			(0.48	%)		(25.1	%)			1.70	%			(0.27	%)		(15.9	%)			1.67	%			1.65	%			0.02	%		1.2	%
Return on average equity			13.30	%			18.08	%			(4.78	%)		(26.4	%)			14.91	%			(1.61	%)		(10.8	%)			15.64	%			14.11	%			1.53	%		10.8	%
Efficiency ratio¹			49.45	%			50.71	%			(1.26	%)		(2.5	%)			52.24	%			(2.79	%)		(5.3	%)			50.09	%			52.02	%			(1.93	%)		(3.7	%)
Yield on interest-earning assets²			4.06	%			3.96	%			0.10	%		2.5	%			4.12	%			(0.06	%)		(1.5	%)			4.01	%			4.24	%			(0.23	%)		(5.4	%)
Cost of funds			0.34	%			0.31	%			0.03	%		9.7	%			0.42	%			(0.08	%)		(19.0	%)			0.33	%			0.47	%			(0.14	%)		(29.8	%)
Net interest margin²			3.75	%			3.68	%			0.07	%		1.9	%			3.75	%			0.00	%		0.0	%			3.71	%			3.82	%			(0.11	%)		(2.9	%)

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)
		June 30,				March 31,				$				%			June 30,				$				%
		2022				2022				Change				Change			2021				Change				Change
ASSETS
Cash and due from banks		$	18,087			$	14,579			$	3,508			24.1	%		$	10,509			$	7,578			72.1	%
Interest-earning deposits at the FRB and other banks			243,072				288,603				(45,531	)		(15.8	%)			240,932				2,140			0.9	%
Investment securities¹			77,469				80,104				(2,635	)		(3.3	%)			82,354				(4,885	)		(5.9	%)
Loans held-for-sale, at the lower of cost or fair value			141,104				149,733				(8,629	)		(5.8	%)			96,554				44,550			46.1	%
Loans receivable			1,260,939				1,225,739				35,200			2.9	%			1,133,371				127,568			11.3	%
Allowance for loan losses			(14,739	)			(13,089	)			(1,650	)		(12.6	%)			(14,908	)			169			1.1	%
Loans receivable, net			1,246,200				1,212,650				33,550			2.8	%			1,118,463				127,737			11.4	%
OREO			-				-				-			-				-				-			-
Restricted stock investments			10,111				8,850				1,261			14.2	%			8,850				1,261			14.2	%
Servicing assets			10,996				10,671				325			3.0	%			10,189				807			7.9	%
Goodwill			2,185				2,185				-			0.0	%			-				2,185			100.0	%
Intangible assets			331				346				(15	)		(4.3	%)			-				331			100.0	%
Other assets			28,060				24,061				3,999			16.6	%			45,071				(17,011	)		(37.7	%)
Total assets		$	1,777,615			$	1,791,782			$	(14,167	)		(0.8	%)		$	1,612,922			$	164,693			10.2	%
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing		$	566,610			$	576,378			$	(9,768	)		(1.7	%)		$	572,284			$	(5,674	)		(1.0	%)
Interest-bearing			948,760				957,633				(8,873	)		(0.9	%)			806,397				142,363			17.7	%
Total deposits			1,515,370				1,534,011				(18,641	)		(1.2	%)			1,378,681				136,689			9.9	%
FHLB advances and other borrowing			50,000				50,000				-			-				50,000				-			0.0	%
Other liabilities			15,134				16,687				(1,553	)		(9.3	%)			13,026				2,108			16.2	%
Total liabilities			1,580,504				1,600,698				(20,194	)		(1.3	%)			1,441,707				138,797			9.6	%
Stockholders' Equity			197,111				191,084				6,027			3.2	%			171,215				25,896			15.1	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,777,615			$	1,791,782			$	(14,167	)		(0.8	%)		$	1,612,922			$	164,693			10.2	%
CAPITAL RATIOS
Leverage ratio
Company			10.80	%			10.56	%			0.24	%		2.3	%			11.35	%			(0.55	%)		(4.9	%)
Bank			10.73	%			10.55	%			0.18	%		1.7	%			11.33	%			(0.60	%)		(5.3	%)
Common equity tier 1 risk-based capital ratio
Company			14.47	%			14.50	%			(0.03	%)		(0.2	%)			14.39	%			0.08	%		0.6	%
Bank			14.38	%			14.50	%			(0.12	%)		(0.8	%)			14.37	%			0.01	%		0.1	%
Tier 1 risk-based capital ratio
Company			14.47	%			14.50	%			(0.03	%)		(0.2	%)			14.39	%			0.08	%		0.6	%
Bank			14.38	%			14.50	%			(0.12	%)		(0.8	%)			14.37	%			0.01	%		0.1	%
Total risk-based capital ratio
Company			15.63	%			15.57	%			0.06	%		0.4	%			15.64	%			(0.01	%)		(0.1	%)
Bank			15.53	%			15.57	%			(0.04	%)		(0.2	%)			15.62	%			(0.09	%)		(0.6	%)
Tangible common equity per share		$	18.68			$	18.31			$	0.37			2.0	%		$	16.66			$	2.02			12.1	%
Loan-to-Deposit (LTD) ratio			83.21	%			79.90	%			3.31	%		4.1	%			82.21	%			1.00	%		1.2	%
Nonperforming assets		$	2,532			$	723			$	1,809			250.2	%		$	1,339			$	1,193			89.1	%
Nonperforming assets as a % of loans receivable			0.20	%			0.06	%			0.14	%		233.3	%			0.12	%			0.08	%		66.7	%
ALLL as a % of loans receivable			1.17	%			1.07	%			0.10	%		9.3	%			1.32	%			(0.15	%)		(11.4	%)
ALLL as a % of loans receivable exc. SBA PPP loans			1.18	%			1.09	%			0.09	%		8.3	%			1.42	%			(0.24	%)		(16.9	%)

1		Includes AFS and HTM

FIVE-QUARTER STATEMENT OF INCOME (Unaudited) - Table 3
(Dollars in thousands, except per share amounts)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Interest income		$	17,807			$	17,032			$	17,553			$	17,437			$	14,923
Interest expense			1,369				1,209				1,265				1,337				1,358
Net interest income			16,438				15,823				16,288				16,100				13,565
Provision for loan losses			1,600				(1,167	)			(800	)			-				-
Net interest income after provision for loan losses			14,838				16,990				17,088				16,100				13,565
Gain on sale of loans			3,298				4,668				4,151				4,305				3,988
Gain (loss) on sale of OREO			-				-				-				-				-
SBA servicing fee income, net			778				469				683				698				622
Reversal of valuation allowance on servicing assets			-				-				-				-				-
Service charges and other income			462				498				499				540				395
Noninterest income			4,538				5,635				5,333				5,543				5,005
Salaries and employee benefits			6,994				7,065				6,614				6,500				6,000
Occupancy and equipment			1,114				1,120				1,028				1,067				945
Marketing expense			511				485				111				287				309
Professional expense			517				415				368				495				491
Merger related expense			123				-				454				450				600
Other expenses			1,114				1,796				2,850				1,807				1,356
Noninterest expense			10,373				10,881				11,425				10,606				9,701
Income before income tax expense			9,003				11,744				10,996				11,037				8,869
Income tax expense			2,547				3,336				2,984				3,156				2,566
Net income		$	6,456			$	8,408			$	8,012			$	7,881			$	6,303
Effective tax rate			28.3	%			28.4	%			27.1	%			28.6	%			28.9	%
Outstanding number of shares			10,416,601				10,299,361				10,284,962				10,284,962				10,279,962
Weighted average shares for basic EPS			10,305,014				10,291,071				10,284,962				10,280,016				10,262,956
Weighted average shares for diluted EPS			10,409,663				10,479,488				10,424,771				10,427,687				10,392,427
Basic EPS		$	0.62			$	0.82			$	0.78			$	0.77			$	0.61
Diluted EPS		$	0.62			$	0.80			$	0.77			$	0.75			$	0.61

FIVE-QUARTER SALARIES BENEFIT METRICS (Unaudited) - Table 4
(Dollars in thousands)
		At or for the Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Salaries and benefits		$	6,994			$	7,065			$	6,614			$	6,500			$	6,000
FTE at the end of period			199				208				205				200				183
Average FTE during the period			201				206				201				202				182
Salaries and benefits/average FTE¹		$	140			$	139			$	131			$	127			$	132
Salaries and benefits/average assets¹			1.55	%			1.60	%			1.39	%			1.43	%			1.62	%
Noninterest expense/average assets¹			2.30	%			2.47	%			2.40	%			2.33	%			2.62	%

1		Annualized

FIVE-QUARTER BALANCE SHEET (Unaudited) - Table 5
(Dollars in thousands)
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
ASSETS
Cash and due from banks		$	18,087			$	14,579			$	7,702			$	11,621			$	10,509
Interest-earning deposits at the FRB and other banks			243,072				288,603				284,583				386,087				240,932
Investment securities¹			77,469				80,104				84,238				86,440				82,354
Loans held-for-sale, at the lower of cost or fair value			141,104				149,733				158,128				136,394				96,554
Loans receivable			1,260,939				1,225,739				1,241,319				1,255,814				1,133,371
Allowance for loan losses			(14,739	)			(13,089	)			(14,192	)			(15,000	)			(14,908	)
Loans receivable, net			1,246,200				1,212,650				1,227,127				1,240,814				1,118,463
OREO			-				-				-				-				-
Restricted stock investments			10,111				8,850				8,850				8,850				8,850
Servicing assets			10,996				10,671				10,632				10,392				10,189
Goodwill			2,185				2,185				2,185				2,269				-
Intangible assets			331				346				360				375				-
Other assets			28,060				24,061				25,450				25,859				45,071
Total assets		$	1,777,615			$	1,791,782			$	1,809,255			$	1,909,101			$	1,612,922
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing		$	566,610			$	576,378			$	619,774			$	670,489			$	572,284
Interest-bearing			948,760				957,633				938,338				995,574				806,397
Total deposits			1,515,370				1,534,011				1,558,112				1,666,063				1,378,681
FHLB advances			50,000				50,000				50,000				50,000				50,000
Other liabilities			15,134				16,687				15,901				14,719				13,026
Total liabilities			1,580,504				1,600,698				1,624,013				1,730,782				1,441,707
Stockholders' Equity			197,111				191,084				185,242				178,319				171,215
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,777,615			$	1,791,782			$	1,809,255			$	1,909,101			$	1,612,922

1		Includes AFS and HTM

FIVE-QUARTER LOANS RECEIVABLE COMPONENTS (Unaudited) - Table 6
(Dollars in thousands)
		June 30, 2022						March 31, 2022						December 31, 2021						September 30, 2021						June 30, 2021
		Balance			%			Balance			%			Balance			%			Balance			%			Balance			%
Construction		$	23,431		1.9	%		$	18,541		1.5	%		$	23,939		1.9	%		$	21,725		1.7	%		$	18,753		1.7	%
Commercial real estate			1,023,298		81.1	%			976,924		79.7	%			978,995		78.9	%			971,387		77.3	%			893,700		78.8	%
Commercial and industrial			146,175		11.6	%			159,111		13.0	%			169,489		13.7	%			198,217		15.8	%			217,350		19.2	%
Home mortgage			57,612		4.57	%			59,836		4.9	%			61,030		4.9	%			60,075		4.8	%			-		-
Consumer			6,609		0.5	%			7,589		0.6	%			4,269		0.3	%			2,185		0.2	%			2,236		0.2	%
Gross loans			1,257,125		99.7	%			1,222,001		99.7	%			1,237,722		99.7	%			1,253,589		99.8	%			1,132,039		99.9	%
Net deferred loan fees/costs			3,814		0.3	%			3,738		0.3	%			3,597		0.3	%			2,225		0.2	%			1,332		0.1	%
Loans receivable		$	1,260,939		100.0	%		$	1,225,739		100.0	%		$	1,241,319		100.0	%		$	1,255,814		100.0	%		$	1,133,371		100.0	%
Loans held-for-sale		$	141,104					$	149,733					$	158,128					$	136,394					$	96,554
Loans receivable, including loans held-for-sale		$	1,402,043					$	1,375,472					$	1,399,447					$	1,392,208					$	1,229,925

FIVE-QUARTER SBA LOAN PRODUCTIONS/SALES DATA (Unaudited) - Table 7
(Dollars in thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
SBA loans held-for-sale at beginning of the quarter/year		$	149,733			$	158,128			$	136,394			$	96,554			$	76,066
SBA loans originated/transferred from/to held-for-investment during the quarter/year			43,451				43,132				68,136				82,303				62,864
SBA loans sold during the quarter/year			(50,845	)			(50,531	)			(42,210	)			(42,019	)			(42,163	)
SBA loans principal payment, net of advance			(1,235	)			(996	)			(4,193	)			(444	)			(213	)
SBA loans held-for-sale at end of the quarter/year		$	141,104			$	149,733			$	158,128			$	136,394			$	96,554
Gain on sale of SBA loans		$	3,298			$	4,668			$	4,151			$	4,305			$	3,988
Premium on sale (weighted average)			8.0	%			11.0	%			11.1	%			11.5	%			11.9	%
SBA loan production		$	56,676			$	54,523			$	82,448			$	93,986			$	78,058
Non-PPP loans			56,676				54,523				82,448				93,986				75,065
PPP loans			-				-				-				-				2,994

FIVE QUARTER SBA SERVICING ASSETS AND SERVICING FEES (Unaudited) - Table 8
(Dollars in thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
SBA servicing assets @ beginning of the quarter/year		$	10,671			$	10,632			$	10,392			$	10,189			$	10,000
Newly added SBA servicing assets from SBA loans sold			1,081				1,052				1,006				920				897
Regular quarterly/annual servicing assets amortization			(478	)			(462	)			(453	)			(421	)			(422	)
SBA servicing assets amortized from SBA loans paid off/charged off			(278	)			(551	)			(313	)			(296	)			(286	)
Subtotal before impairment			10,996				10,671				10,632				10,392				10,189
Reversal of valuation allowance on servicing assets			-				-				-				-				-
SBA servicing assets @ the end of the quarter/year		$	10,996			$	10,671			$	10,632			$	10,392			$	10,189

FIVE-QUARTER DEPOSIT COMPONENTS (Unaudited) - Table 9
(Dollars in thousands)
		June 30, 2022						March 31, 2022						December 31, 2021						September 30, 2021						June 30, 2021
		Balance			%			Balance			%			Balance			%			Balance			%			Balance			%
Noninterest-bearing demand		$	566,610		37.4	%		$	576,378		37.6	%		$	619,774		39.8	%		$	670,489		40.2	%		$	572,284		41.5	%
Interest-bearing demand			12,754		0.8	%			12,059		0.8	%			10,723		0.7	%			10,904		0.7	%			-		-
NOW & MMDA			327,477		21.6	%			344,501		22.5	%			325,313		20.9	%			376,549		22.6	%			291,437		21.1	%
Savings			73,791		4.9	%			79,685		5.2	%			76,588		4.9	%			75,497		4.5	%			41,284		3.0	%
TCDs of $250K and under			245,203		16.2	%			253,617		16.5	%			259,758		16.7	%			264,130		15.9	%			219,174		15.9	%
TCDs of $250K over			198,518		13.1	%			176,754		11.5	%			174,939		11.2	%			177,477		10.7	%			158,485		11.5	%
Wholesale TCDs			91,017		6.0	%			91,017		5.9	%			91,017		5.8	%			91,017		5.5	%			96,017		7.0	%
Total Deposits		$	1,515,370		100.0	%		$	1,534,011		100.0	%		$	1,558,112		100.0	%		$	1,666,063		100.0	%		$	1,378,681		100.0	%
Recap:
Noninterest-bearing demand		$	566,610		37.4	%		$	576,378		37.6	%		$	619,774		39.8	%		$	670,489		40.2	%		$	572,284		41.5	%
Interest-bearing demand			12,754		0.8	%			12,059		0.8	%			10,723		0.7	%			10,904		0.7	%			-		-
NOW & MMDA			327,477		21.6	%			344,501		22.5	%			325,313		20.9	%			376,549		22.6	%			291,437		21.1	%
Savings			73,791		4.9	%			79,685		5.2	%			76,588		4.9	%			75,497		4.5	%			41,284		3.0	%
TCDs of $250K and under			245,203		16.2	%			253,617		16.5	%			259,758		16.7	%			264,130		15.9	%			219,174		15.9	%
Core Deposits			1,225,835		80.9	%			1,266,240		82.6	%			1,292,156		83.0	%			1,397,569		83.9	%			1,124,179		81.5	%
TCDs of $250K over			198,518		13.1	%			176,754		11.5	%			174,939		11.2	%			177,477		10.7	%			158,485		11.5	%
Wholesale TCDs			91,017		6.0	%			91,017		5.9	%			91,017		5.8	%			91,017		5.4	%			96,017		7.0	%
Noncore Deposits			289,535		19.1	%			267,771		17.4	%			265,956		17.0	%			268,494		16.1	%			254,502		18.5	%
Total Deposits		$	1,515,370		100.0	%		$	1,534,011		100.0	%		$	1,558,112		100.0	%		$	1,666,063		100.0	%		$	1,378,681		100.0	%

FIVE-QUARTER SELECTED LOAN AND ASSET QUALITY HIGHLIGHTS (Unaudited) - Table 10
(Dollars in thousands)
		2nd Qtr.				1st Qtr.				4th Qtr.				3rd Qtr.				2nd Qtr.
		2022				2022				2021				2021				2021
Allowance for Loan Losses
Balance at beginning of period		$	13,089			$	14,192			$	15,000			$	14,908			$	14,888
Provision for loan losses			1,600				(1,167	)			(800	)			-				-
Charge-offs			-				-				(89	)			-				-
Recoveries			50				64				81				92				20
Balance at the end of period		$	14,739			$	13,089			$	14,192			$	15,000			$	14,908
Nonperforming Assets:¹
Over 90 days still accruing		$	-			$	-			$	-			$	-			$	-
Nonaccrual loans			2,532				723				747				768				1,339
Total nonperforming loans			2,532				723				747				768				1,339
Other real estate owned			-				-				-				-				-
Total nonperforming assets		$	2,532			$	723			$	747			$	768			$	1,339
Classified Assets:¹
Substandard		$	11,133			$	9,300			$	11,156			$	10,672			$	10,052
Doubtful			-				-				-				-				-
Loss			-				-				-				-				-
Total classified loans		$	11,133			$	9,300			$	11,156			$	10,672			$	10,052
Other real estate owned			-				-				-				-				-
Total classified assets		$	11,133			$	9,300			$	11,156			$	10,672			$	10,052
Performing TDR loans:		$	4,744			$	3,253			$	3,521			$	3,658			$	3,776
Delinquent Loans:¹
Loans 30-89 days past due		$	11,553			$	6,275			$	267			$	1,688			$	2,524
90 days or more past due and still accruing			-				-				-				-				-
Nonaccrual			2,532				723				747				768				1,339
Total delinquent loans		$	14,085			$	6,998			$	1,014			$	2,456			$	3,863
Asset Quality Ratios:
Net (recoveries) charge-offs to average loans²			(0.01	%)			(0.02	%)			0.00	%			(0.03	%)			(0.01	%)
Nonaccrual loans to loans receivable			0.20	%			0.06	%			0.06	%			0.06	%			0.12	%
Nonperforming loans to loans receivable			0.20	%			0.06	%			0.06	%			0.06	%			0.12	%
Nonperforming assets to total assets			0.14	%			0.04	%			0.04	%			0.04	%			0.08	%
Classified loans to loans receivable			0.88	%			0.76	%			0.90	%			0.85	%			0.89	%
Classified loans to Tier 1 and ALLL			5.32	%			4.61	%			5.67	%			5.53	%			5.40	%
Classified assets to total assets			0.63	%			0.52	%			0.62	%			0.56	%			0.62	%
Classified assets to Tier 1 and ALLL			5.32	%			4.61	%			5.67	%			5.53	%			5.40	%
ALLL to loans receivable			1.17	%			1.07	%			1.14	%			1.19	%			1.32	%
ALLL to loans receivable exc. SBA PPP loans			1.18	%			1.09	%			1.18	%			1.26	%			1.42	%
ALLL to nonaccrual loans			582.11	%			1810.37	%			1899.87	%			1953.13	%			1113.37	%
ALLL to nonperforming loans			582.11	%			1810.37	%			1899.87	%			1953.13	%			1113.37	%
ALLL to nonperforming assets			582.11	%			1810.37	%			1899.87	%			1953.13	%			1113.37	%
Texas ratio³			1.21	%			0.36	%			0.38	%			0.40	%			0.72	%

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			June 30,				March 31,				December 31,				September 30,				June 30,
		Regulatory			BASEL III
		Requirement			Fully Phased In			2022				2022				2021				2021				2021
Leverage ratio
Company		N/A			N/A				10.80	%			10.56	%			9.55	%			9.61	%			11.35	%
Bank		5.00%			4.00%				10.73	%			10.55	%			9.55	%			9.60	%			11.33	%
Common equity tier 1 risk-based capital ratio
Company		N/A			N/A				14.47	%			14.50	%			13.83	%			13.61	%			14.39	%
Bank		6.50%			7.00%				14.38	%			14.50	%			13.82	%			13.59	%			14.37	%
Tier 1 risk-based capital ratio
Company		N/A			N/A				14.47	%			14.50	%			13.83	%			13.61	%			14.39	%
Bank		8.00%			8.50%				14.38	%			14.50	%			13.82	%			13.59	%			14.37	%
Total risk-based capital ratio
Company		N/A			N/A				15.63	%			15.57	%			14.98	%			14.86	%			15.64	%
Bank		10.00%			10.50%				15.53	%			15.57	%			14.97	%			14.84	%			15.62	%
Tangible common equity/total assets									10.96	%			10.54	%			10.11	%			9.21	%			10.62	%
Tangible common equity per share								$	18.68			$	18.31			$	17.76			$	17.08			$	16.66

FIVE-QUARTER MARGIN ANALYSIS (Unaudited) -Table 12
(Dollars in thousands)
		Three Months Ended
		June 30, 2021										March 31, 2022										December 31, 2021										September 30, 2021										June 30, 2021
		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
Loans¹		$	1,389,968			$	16,643		4.80	%		$	1,368,996			$	16,352		4.84	%		$	1,396,201			$	16,893		4.80	%		$	1,390,851			$	16,800		4.79	%		$	1,195,908			$	14,338		4.81	%
Investment securities²			78,709				488		2.49	%			82,818				471		2.31	%			85,555				454		2.11	%			87,585				460		2.08	%			83,152				442		2.13	%
Interest-earning deposits at the FRB and other banks			286,974				599		0.84	%			288,966				141		0.20	%			365,501				144		0.16	%			282,512				112		0.16	%			168,677				54		0.13	%
Other earning assets			9,861				129		5.25	%			8,850				119		5.45	%			8,850				115		5.16	%			8,925				116		5.16	%			8,737				135		6.20	%
Total interest-earning assets²			1,765,512				17,859		4.06	%			1,749,630				17,083		3.96	%			1,856,107				17,606		3.76	%			1,769,873				17,488		3.92	%			1,456,474				14,969		4.12	%
NONINTEREST-EARNING ASSETS
Cash and due from banks			14,866										13,338										13,318										13,079										10,752
Other noninterest-earning assets			38,621										36,714										37,779										36,548										32,002
Total noninterest-earning assets			53,487										50,052										51,097										49,627										42,754
Less: Allowance for loan losses			(13,126	)									(14,200	)									(14,849	)									(14,958	)									(14,899	)
TOTAL ASSETS		$	1,805,873									$	1,785,482									$	1,892,355									$	1,804,542									$	1,484,329
INTEREST-BEARING DEPOSITS
Interest-bearing demand		$	26,781			$	4		0.06	%		$	27,442			$	3		0.04	%		$	27,904			$	3		0.04	%		$	36,670			$	4		0.04	%		$	13,373			$	2		0.06	%
Money market			308,377				443		0.58	%			321,694				356		0.45	%			338,937				401		0.47	%			312,606				388		0.49	%			263,845				352		0.54	%
Savings			75,306				59		0.31	%			76,967				61		0.32	%			77,057				68		0.35	%			74,266				71		0.38	%			43,433				55		0.51	%
Time deposits			523,504				746		0.57	%			529,421				673		0.52	%			527,634				674		0.51	%			542,901				756		0.55	%			469,000				831		0.71	%
Total interest-bearing deposits			933,968				1,252		0.54	%			955,524				1,093		0.46	%			971,532				1,146		0.47	%			966,443				1,219		0.50	%			789,651				1,240		0.63	%
Borrowings			50,000				117		0.94	%			50,000				116		0.94	%			50,000				119		0.94	%			50,000				118		0.94	%			51,539				118		0.92	%
Total interest-bearing liabilities			983,968				1,369		0.56	%			1,005,524				1,209		0.49	%			1,021,532				1,265		0.49	%			1,016,443				1,337		0.52	%			841,190				1,358		0.65	%
Noninterest-bearing deposits			611,395										574,436										673,154										597,056										459,695
Other liabilities			15,818										16,966										16,425										16,046										13,906
Stockholders' equity			194,692										188,556										181,244										174,997										169,538
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,805,873									$	1,785,482									$	1,892,355									$	1,804,542									$	1,484,329
Net interest income²						$	16,490									$	15,874									$	16,341									$	16,151									$	13,611
Net interest spread									3.50	%									3.47	%									3.27	%									3.40	%									3.47	%
Effect of noninterest-bearing sources									0.25	%									0.21	%									0.22	%									0.22	%									0.28	%
Net interest margin²									3.75	%									3.68	%									3.49	%									3.62	%									3.75	%
Cost of deposits		$	1,545,363			$	1,252		0.32	%		$	1,529,960			$	1,093		0.29	%		$	1,644,686			$	1,146		0.28	%		$	1,563,499			$	1,219		0.31	%		$	1,249,346			$	1,240		0.40	%
Cost of funds		$	1,595,363			$	1,369		0.34	%		$	1,579,960			$	1,209		0.31	%		$	1,694,686			$	1,265		0.30	%		$	1,613,499			$	1,337		0.33	%		$	1,300,885			$	1,358		0.42	%

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
		June 30, 2022						March 31, 2022						December 31, 2021						September 30, 2021						June 30, 2021
		Amount			Yield			Amount			Yield			Amount			Yield			Amount			Yield			Amount			Yield
Contractual yield		$	15,496		4.47	%		$	14,596		4.32	%		$	15,142		4.30	%		$	15,032		4.29	%		$	12,670		4.25	%
SBA discount accretion			1,035		0.30	%			1,421		0.42	%			1,024		0.29	%			1,038		0.30	%			1,027		0.34	%
Prepayment penalties & late fees			56		0.02	%			107		0.03	%			72		0.02	%			41		0.01	%			89		0.03	%
Amortization of net deferred costs			56		0.01	%			228		0.07	%			655		0.19	%			689		0.20	%			552		0.19	%
As reported yield on loans		$	16,643		4.80	%		$	16,352		4.84	%		$	16,893		4.80	%		$	16,800		4.79	%		$	14,338		4.81	%

MARGIN ANALYSIS (Unaudited) - Table 14
(Dollars in thousands)
		Six Months Ended
		June 30,2022										June 30,2021
		Avg Balance				Interest			Yield			Avg Balance				Interest			Yield
Number of Days in the Period
INTEREST-EARNING ASSETS
Loans¹		$	1,379,540			$	32,995		4.82	%		$	1,167,180			$	28,175		4.87	%
Investment securities²			80,752				959		2.39	%			83,911				890		2.14	%
Interest-earning deposits at the FRB and other banks			288,018				740		0.52	%			138,570				90		0.13	%
Other earning assets			9,358				248		5.34	%			8,468				232		5.52	%
Total interest-earning assets²			1,757,668				34,942		4.01	%			1,398,129				29,387		4.24	%
NONINTEREST-EARNING ASSETS
Cash and due from banks			14,106										10,390
Other noninterest-earning assets			37,674										31,582
Total noninterest-earning assets			51,780										41,972
Less: Allowance for loan losses			(13,660	)									(14,641	)
TOTAL ASSETS		$	1,795,788									$	1,425,460
INTEREST-BEARING DEPOSITS
Interest-bearing demand		$	27,110			$	7		0.05	%		$	14,586			$	4		0.06	%
Money market			314,999				799		0.51	%			264,845				718		0.55	%
Savings			76,132				120		0.32	%			45,845				115		0.51	%
Time deposits			526,446				1,419		0.54	%			460,223				1,806		0.79	%
Total interest-bearing deposits			944,687				2,345		0.50	%			785,499				2,643		0.68	%
Borrowings			50,000				233		0.94	%			58,564				248		0.85	%
Total interest-bearing liabilities			994,687				2,578		0.52	%			844,063				2,891		0.69	%
Noninterest-bearing deposits			593,071										402,119
Other Liabilities			16,389										12,929
Stockholders' equity			191,641										166,349
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$	1,795,788									$	1,425,460
Net interest income²						$	32,364									$	26,496
Net interest spread									3.49	%									3.55	%
Effect of noninterest-bearing sources									0.22	%									0.27	%
Net interest margin²									3.71	%									3.82	%
Cost of deposits		$	1,537,758			$	2,345		0.31	%		$	1,187,618			$	2,643		0.45	%
Cost of funds		$	1,587,758			$	2,578		0.33	%		$	1,246,182			$	2,891		0.47	%

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)
		Six Months Ended
		June 30, 2022						June 30, 2021
		Amount			Yield			Amount			Yield
Contractual yield		$	30,092		4.40	%		$	24,818		4.29	%
SBA discount accretion			2,456		0.36	%			1,765		0.30	%
Prepayment penalties & late fees			163		0.02	%			210		0.04	%
Amortization of net deferred costs			284		0.04	%			1,382		0.24	%
As reported yield on loans		$	32,995		4.82	%		$	28,175		4.87	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220728006110/en/

Douglas J Goddard, EVP & CFO

(323) 988-3010

DouglasG@cbb-bank.com

Source: CBB Bancorp, Inc.

FAQ

What is CBBI's net income for Q2 2022?

CBBI reported a net income of $6.5 million for Q2 2022.

How did CBBI's earnings per share change in Q2 2022?

Earnings per diluted share decreased to $0.62 in Q2 2022 from $0.80 in Q1 2022.

What were the loan loss provisions for CBBI in Q2 2022?

Loan loss provisions were $1.6 million in Q2 2022.

How did CBBI's net interest margin trend in Q2 2022?

CBBI's net interest margin was stable at 3.75% for Q2 2022.

What was CBBI's return on average assets for Q2 2022?

The return on average assets decreased to 1.43% in Q2 2022.