FFB Bancorp (FFBB) investor relations material

Executive summary

• Net income for Q1-2026 was $4.59 million ($1.53 per diluted share), up from Q4-2025 but down from Q1-2025, with ROAA of 1.19% and ROAE of 9.93%.

• Operating revenues were $22.9 million, consistent with Q4-2025 but down 2% sequentially and 20% year-over-year; non-interest income was $5.09 million.

• Gross loans grew 2.62% sequentially and 11% year-over-year to $1.23 billion; total deposits increased 2% to $1.34 billion.

• Merchant services remain a key revenue and deposit driver, though revenue dropped 68% year-over-year due to ISO partner exits.

• Continued investments in compliance, technology, and regional expansion, including new FX payments and small business lending platforms.

Financial highlights

• Net interest margin was 4.89% in Q1-2026, up 5 bps sequentially but down 46 bps year-over-year; yield on average loans reached 6.55%.

• Non-interest income declined 3.1% sequentially and 46.8% year-over-year, with merchant services contributing 49% of non-interest income.

• Book value per share increased to $61.85, up 11% year-over-year; $5.4 million in stock repurchased during the quarter.

• Efficiency ratio was 69.89% (adjusted 68.05%), up from 57.83% a year ago due to higher operating expenses.

• Tangible common equity ratio at 11.62%; regulatory leverage capital ratio at 12.73%; total risk-based capital ratio at 17.27%.

Outlook and guidance

• Deposit mix expected to normalize as core deposits rebuild following ISO partner exits, with management expecting improved deposit growth from bank customers and ISO partners.

• Product rollouts in small business lending, business credit cards, and digital onboarding targeted for 2026.

• Focus on expanding FFB Payments direct sales and bundling with small business products.

• Operating leverage and efficiency ratio expected to improve as growth accelerates in coming quarters.

• Continued focus on leveraging technology for operational efficiency.