According to a GlobeNewswire earnings release, FFB Bancorp reported lower fourth-quarter earnings for 2025 as higher credit-loss provisions and weaker non-interest income offset continued growth in loans, deposits, and total assets.
FFB Bancorp, the parent company of FFB Bank, said net income for the fourth quarter ended December 31, 2025, totaled $3.21 million, or $1.07 per diluted share. That compares with $6.24 million, or $2.06 per diluted share, in the third quarter of 2025 and $9.72 million, or $3.05 per diluted share, in the fourth quarter of 2024. For the full year, the company reported net income of $23.58 million, down from $34.15 million in 2024.
Operating revenue declined 1% from the prior quarter to $23.34 million and fell 17% from the same period a year earlier. Pre-provision net revenue also decreased, while the provision for credit losses rose sharply to $3.93 million, reflecting higher charge-offs, increased reserves on nonperforming loans, and growth in the loan portfolio.
Despite pressure on earnings, the company reported balance sheet expansion during the quarter. Total assets increased to $1.58 billion, loans grew 7% from the prior quarter to $1.20 billion, and total deposits rose 7% to $1.34 billion. Shareholders’ equity increased to $184.8 million, and book value per common share rose to $61.64.
Net interest income for the quarter was $18.08 million, roughly flat from the prior quarter but lower than the year-ago period. The net interest margin declined to 4.86%, as lower yields on earning assets and higher funding costs weighed on profitability. Non-interest income fell to $5.25 million, driven primarily by a decline in merchant services revenue tied to planned ISO partner exits and lower payments-related volumes.
Asset quality metrics showed modest improvement quarter over quarter. Nonperforming assets declined slightly to $27.76 million, or 1.76% of total assets, while total delinquent loans decreased to $4.69 million. The allowance for credit losses increased to 1.44% of total loans, reflecting higher reserves amid portfolio growth and market conditions.
FFB also announced several capital management actions. The company said it plans to redeem $28.3 million in subordinated debt in the first quarter of 2026 and authorized a share repurchase program of up to $15 million, subject to market and regulatory conditions.
Steve Miller said the bank remains focused on executing its strategic plan, including technology, product, and process improvements, while positioning the organization for organic growth and potential opportunities arising from market disruption in its core California markets.