FFB Bancorp Announces Fourth Quarter and Year Ended December 31, 2024 Earnings

Financial Performance - Net income for Q4 2024 increased by 13% to $9.72 million compared to Q3 2024, and by 28% compared to Q4 2023 [1] - Full-year net income for 2024 was $34.15 million, a slight increase from $33.56 million in 2023 [1] - Pre-tax, pre-provision income increased by 33% to $14.98 million in Q4 2024 [3] - Return on average equity (ROAE) was 23.11% and return on average assets (ROAA) was 2.53% in Q4 2024 [3] - Net interest margin expanded by 5 basis points to 5.24% in Q4 2024 compared to Q4 2023 [3] Balance Sheet Growth - Total assets increased by 10% to $1.51 billion at the end of 2024 [3] - Total loan portfolio grew by 15% to $1.07 billion in 2024 [3] - Total deposits increased by 12% to $1.28 billion in 2024 [3] - Shareholder equity increased by 29% to $168.39 million in 2024 [3] Regulatory Compliance - The company entered into a Consent Order with FDIC and CDFPI addressing AML/CFT program deficiencies [2] - The order requires enhanced oversight, internal controls, and independent testing of compliance programs [4] - The company anticipates exiting some ISO relationships in Q2 2025, impacting $156 million in non-interest bearing deposits [10] Operational Highlights - Merchant services revenue increased by 57% to $7.56 million in Q4 2024 [18] - Total non-interest income grew by 28% to $31.95 million for the full year 2024 [30] - Operating expenses increased by 28% to $51.99 million in 2024, driven by compliance and technology investments [31] Capital Management - The company authorized a $15 million stock repurchase program, representing 8.9% of total shareholders' equity [11] - Book value per common share increased by 29% to $53.02 at the end of 2024 [40] - The tangible common equity ratio improved to 11.18% at the end of 2024 [40] Asset Quality - Nonperforming assets decreased to $9.89 million, or 0.66% of total assets, at the end of 2024 [42] - The allowance for credit losses to total loans ratio was 1.10% at the end of 2024 [47] - Delinquent loans increased to $8.32 million at the end of 2024, with $2.79 million being government-guaranteed loans [43]