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FFB Bancorp Q3 profit falls on higher provision for credit losses

By Reuters News


Overview

  • California commercial bank's Q3 net income and EPS declined both sequentially and yr/yr

  • Company's total deposits rose 9% from prior quarter and 19% yr/yr

  • Company completed $15 mln share repurchase program, buying back 20,210 shares in Q3


Outlook

  • Company aims to increase core deposits and reduce wholesale funding in coming quarters

  • Management expects deposit growth to continue through year-end, reducing wholesale funding reliance

  • Company expects operating leverage to improve as growth accelerates over next several quarters


Result Drivers

  • CORE FUNDING GROWTH - Co said deposit growth, especially in non-interest bearing balances, improved liquidity and balance sheet strength, per CEO Steve Miller

  • LOAN AND INTEREST INCOME - Operating revenue growth was driven by higher loan and overnight cash interest income, partially offset by increased interest expense and lower gains on loan sales and merchant services

  • CREDIT COSTS - Elevated provision for credit losses and charge-offs affected earnings in the quarter


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$1.61

Q3 Net Income

$4.62 mln

Q3 Net Interest Margin

4.73%


Reuters Recommended Reads

  • Oct 27 - CF Bankshares Q3 net income jumps 158% on loan growth

  • Oct 27 - Ohio Valley Banc Q3 net income rises on loan growth

  • Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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