- CBB Bancorp, Inc. (CBBI, Financial) reports a decrease in first-quarter 2025 net income to $4.5 million, or $0.42 per diluted share, from $5.7 million in the previous quarter.
- The return on average assets fell to 0.99% from 1.27% in the fourth quarter of 2024, while the return on average equity declined to 7.01% from 8.98%.
- Net interest income decreased by 5.3% quarter-over-quarter, and noninterest expenses rose to $10.2 million due to higher personnel and professional fees.
CBB Bancorp, Inc. (OTCQX: CBBI), the holding company for Commonwealth Business Bank, reported its financial results for the first quarter of 2025, revealing a net income of $4.5 million, or $0.42 per diluted share. This marks a decrease compared to the $5.7 million, or $0.54 per share, reported in the fourth quarter of 2024.
The company's return on average assets (ROA) and return on average equity (ROE) experienced a decline, with ROA at 0.99% and ROE at 7.01% for the first quarter of 2025. These figures represent a decrease from the fourth quarter of 2024, where ROA and ROE stood at 1.27% and 8.98%, respectively.
Net interest income dropped to $14.8 million, down by $825 thousand, or 5.3%, from the previous quarter, primarily due to a moderate decrease in the average yield on loans. In addition, the net interest margin contracted to 3.38%, compared to 3.55% in the fourth quarter of 2024.
The provision for credit losses was set at $500 thousand, with on-balance sheet provisions comprising $430 thousand and off-balance sheet provisions totaling $70 thousand. This contrasts with the previous quarter, which recorded no provision for credit losses.
Noninterest income for the first quarter was $2.1 million, a decrease from $2.2 million in the previous quarter, which included a $92 thousand loss on the sale of OREO. Noninterest expenses increased to $10.2 million, driven by higher personnel, insurance, and professional fee expenses, partially offset by lower marketing costs.
Total deposits stood at $1.48 billion at the end of March 2025, reflecting a slight decrease of $3.4 million from December 31, 2024, but an increase of $116.3 million year-over-year. Meanwhile, loans receivable reached $1.45 billion, showing growth of $12.6 million quarter-over-quarter.
The bank's capital ratios remained strong, with the Common Equity Tier 1 Risk-Based Capital Ratio at 19.10% and the Total Risk-Based Capital Ratio at 20.23%, indicating a well-capitalized status under regulatory guidelines.
