Beach Cities Commercial Bank, www.beachcitiescb.com (OTCQB: BCCB) (the “Bank”), today announced financial results for the quarter ended December 31. 2025. Thomas J. Inserra – President & CEO stated: “These results demonstrate the Bank’s accomplished and cohesive team comprised of experienced and accomplished Board Members, Executives and Employees has consistently delivered robust growth during 2025 and over the past 2.5 years and that the Bank is now of sufficient earning asset size and positioned to demonstrate sustainable profitability – for the benefit of both shareholders and the small business clients we serve. This favorable and consistent execution and growth performance by a strong team in an attractive market with strong demand from small business clients serves as an indication of why I opted to join Beach Cities Commercial Bank.”
Significant items for the period include:
Total assets were $176.7 million as of December 31. 2025. which increased by $20.2 million from September 30. 2025 (13% growth). On an annual basis, total assets increased by $45.9 million (35% growth) from December 31. 2024.
Gross loans were $144.1 million as of December 31. 2025. which increased by $15.9 million from September 30. 2025. (12% growth). Compared to December 31. 2024. gross loans increased $38.4 million (36%). As of December 31. 2025. the Bank had no delinquent and no non-performing loans outstanding.
Total deposits were $143.5 million as of December 31. 2025. which increased by $11.5 million from September 30. 2025 (9% growth). On an annual basis, total deposits grew by $30.6 million (27%), and non-interest-bearing deposits increased to $20.8 million from $13.9 million, a 50% growth of $6.9 million from December 31. 2024.
Net loss was $117.6k for the fourth quarter ending December 31. 2025. compared to income of $14.5k for the third quarter ending September 30. 2025. Due to the growth in the loan portfolio, the Bank added $140k in provisions for credit losses. Excluding credit provision expense, in the fourth quarter, 2025 adjusted net income was $22.4k. On a year-to-date basis, the loss was $605.7k for 2025. compared to year-to-date loss of $4.5 million for 2024. an 87% reduction in losses for 2025 from 2024.
Total liquidity remains high at $28.3 million, which equates to 16.02% of the Bank’s total assets. The Bank also maintains contingent available borrowing sources at $18.7 million, which equals 10.6% of total assets.
The loan portfolio average yield was 7.69% which contributed to a healthy net interest margin at 3.82% as of December 31. 2025.
The Bank maintains a reserve for credit losses of $1.412 million which equates to 0.98% of total loans. Excluding loans held-for-sale, the reserve for credit losses is 1.01%. As of December 31. 2025. the Bank’s balance sheet had no delinquent and non-performing assets.
The shareholders’ equity was $14.84 million as of December 31. 2025. which was reduced by $396k from December 31. 2024. mainly due to the operating loss. The Bank’s tier 1 capital to average assets ratio was 8.72%, which is considered well-capitalized under the regulatory framework.
During the fourth quarter of 2025 the total interest income was $2.87 million compared to $2.80 million recorded during the third quarter of 2025. an increase of 2.2%. The Bank’s interest expense from the interest-bearing deposits was $1.17 million for the fourth quarter of 2025 compared to $1.25 million for the third quarter of 2025. a decrease of 6.1%. The interest expense decreased due to reduction in money market deposit rates and repricing of maturing institutional certificate of deposits. The Bank has launched a campaign to replace these high- cost institutional CD deposits with non-interest-bearing deposits to reduce the interest cost. During the fourth quarter of 2025. the Bank increased its borrowings from the Federal Home Loan Bank of San Francisco (FHLBSF). As a result, the Bank’s borrowing interest expense increased to $102k in the fourth quarter of 2025 compared to $55.7k interest expense from borrowings during the third quarter, 2025. The fourth quarter 2025 net interest income increased by $92k from the third quarter 2025.
In the fourth quarter of 2025. the Bank sold loans which netted gains of $8k compared to $25k in gain on sale realized in the third quarter 2025. The government’s shut down during the fourth quarter inhibited the Bank’s ability to originate and sell small business administration (SBA) loans.
Total operating expenses for the fourth quarter of 2025 were $1.62 million compared to $1.54 million incurred during the third quarter, 2025. an increase of $74k (4.8%). During the fourth quarter, the salaries and benefits expense decreased by $19.9k due to less payroll tax expenses. The higher professional costs during the fourth quarter were for temporary engagement of a loan processor. The Bank continues to manage its operating expenses tightly.
As noted above, the Bank’s liquidity remains above 16% of total assets. The Bank has also established contingent lines of borrowings with its correspondent banks, including Federal Home Loan Bank of San Francisco. As of December 31. 2025. total contingent borrowing sources that were unused totaled $18.7 million or 10.6% of total assets outstanding.
“We ended 2025 strong with total asset growth of $46 million or 35% increase from 2024. The growth in earnings increased the Bank’s net interest earnings by 82% from 2024. The non-interest income from sale of loans increased 277%, and the Bank’s operating expenses decreased by 3% from 2024. As a result, the Bank’s net operating loss reduced drastically by 86% in 2025 compared to 2024.” commented Najam Saiduddin, Chief Financial Officer.
“The Bank’s asset quality continues to remain strong with no delinquent and non-performing loans on its balance sheet. Our quality deal flow for both loans and deposits look strong,” commentedMatt Blackmer, Chief Credit Officer.
“I am extremely proud of the Bank’s team in achieving growth and getting close to achieving sustained profitability. As announced earlier, the Bank’s board has hired a new President/Chief Executive Officer with outstanding credentials. To keep up with the Bank’s growth momentum, we have initiated our efforts to raise additional capital through a private placement offering to accredited investors of up to $5.0 million of the Bank’s common stock, with a 20% oversubscription option, plus a warrant for 1 share for each 5 shares subscribed, at a subscription price, and exercise price for the warrant, of $9.50 per share,” commented Angela Bienert, Chairperson. This is not an offer to sell or a solicitation of an offer to buy the Bank’s securities, and such offer can only be made by the offering documents provided by the Bank.
