FFB Bancorp Q3 profit falls on higher provision for credit losses

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

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(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.)