Beach Cities Commercial Bank Announces First Quarter 2025 Financial Results

Beach Cities Commercial Bank, www.beachcitiescb.com (OTCQB: BCCB) (the "Bank"), today announced financial results for the quarter ended March 31, 2025.

The Bank was incorporated under the laws of the State of California on April 11, 2022. The Bank opened for business on June 12, 2023, after receiving all necessary regulatory approvals, and it began providing a full range of banking services from its branch locations in Irvine and Encinitas, California. The Bank operates primarily in the Southern California commercial markets, offering business and personal deposit accounts. The lending products include loans secured by commercial real estate, commercial and industrial loans, guidance lines of credit supporting bridge loans, lines of credit, SBA 7A and 504 loans, SBA express lines of credit, and State guaranteed loans. The Bank has a state-of-the-art technology platform and offers cash management products and services to allow its customers the ability to focus on their business and not worry about banking.

Significant items for the period include:

• Total assets were $153.9 million as of March 31, 2025, which increased by $91.9 million from March 31, 2024 (148% growth).
• Total loans were $123.5 million as of March 31, 2025, which increased by $83.5 million from March 31, 2024 (209% growth).
• Total deposits were $132.1 million as of March 31, 2024, which increased by $91.0 million from March 31, 2024 (222%).
• Total liquidity remains high at $27.3 million, which equates to 17.75% of the Bank's total assets. The Bank also maintains contingent borrowing sources at $35.9 million which equals 23.3% of total assets.
• The loan portfolio average yield was 7.59% which contributed to a healthy net interest margin at 3.38% as of March 31, 2025.
• The Bank maintains a reserve for credit losses of $1.214 million which equates to 0.98% of total loans. As of March 31, 2025, the Bank had zero dollars in delinquent, and non-performing loans.

The shareholders’ equity was at $15.2 million as of March 31, 2025, which was reduced by $42.6k from December 31, 2024. The reduction was due to the recording of $141.8k in operating losses. The Bank’s tier 1 capital to average assets ratio was at 11.27% which is considered well-capitalized under the regulatory framework.

The Bank reported the first quarter of 2025 net loss of $141.8k which reduced from the fourth quarter of 2024 loss of $989k. During the first quarter, the Bank increased its loan portfolio by $17.8 million, which increased its quarterly interest income by $405.1k.

During the first quarter of 2025 the total interest income was $2.27 million compared to $1.86 million recorded during the fourth quarter of 2024, an increase of 21%. The Bank’s interest expense from the interest-bearing deposits was $1.07 million for the first quarter of 2025 compared to $847k for the fourth quarter of 2024, an increase of 26%. The interest expense increased due to the growth in the short-term institutional CDs 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. The first quarter 2025 net interest income increased by $185k from the fourth quarter 2024, an increase of 19%.

In the first quarter 2025, the Bank sold SBA loans which netted gains of $255k compared to $127k in gain on sale realized in the fourth quarter 2024.

Total non-interest expenses for the first quarter of 2025 were $1.71 million compared to $1.74 million incurred during the fourth quarter 2024, a slight decrease of $26.6k. The Bank continues to manage its operating expenses tightly.

As noted above, the Bank’s liquidity remains above 17.75% 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 March 31, 2025, total contingent borrowing sources unused totaled $35.9 million or 23.3% of total assets outstanding.

“The Bank’s asset quality remains strong with no delinquent and non-performing loans on its balance sheet,” commented Matt Blackmer, Chief Credit Officer.

“As we continue to grow our earning assets, the Bank’s goal to achieving profitability was realized in March 2025. As a result, our quarterly loss reported in the first quarter of 2025 was $142k, compared to the fourth quarter 2024 loss of $989k,” stated Najam Saiduddin, Chief Financial Officer.

“As the Bank continues to grow in a safe and sound manner, we are excited about the remaining three quarters for 2025. On March 13, 2025, the Bank was successful in obtaining our Small Business Administration’s Preferred Lending Program (PLP) Status and hired Lily Kim, Senior Vice President, to oversee our Specialty Lending Division. Our Board and the entire Beach Cities Commercial Bank team is laser focused in achieving our strategic goals and objectives,” commented Angela Bienert, Vice Chairperson.

Beach Cities Commercial Bank is a full-service bank, serving the business, commercial and professional markets. The Bank meets the financial needs of its business clients with loans for working capital, equipment, owner-occupied and investment commercial real estate, and a full array of cash management services and deposit products for businesses and their owners. Beach cities Commercial Bank meets its clients’ needs through its head office and branch in Irvine and regional office and branch in Encinitas, California. The Bank’s stock is currently trading on the OTCQB platform under the “BCCB” stock symbol. For more information, please visit www.beachcitiescb.com/investor-relations.

FORWARD-LOOKING STATEMENT: This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified using words such as "anticipate." "Believe." "Continue," "could." "Estimate," "expect," "intend," "likely." "May," "outlook." "Plan," "potential," "predict." "Project." "Should," "will." "would" and similar terms and phrases. including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Bank (which includes the Bank) considering management's experience and its perception of historical trends. Current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements do not guarantee future performance and are subject to risks, uncertainties, and other factors (many of which are beyond the Bank's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. factors that could affect the Bank's results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Bank's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Bank; unanticipated or significant increases in loan losses; changes in accounting principles, policies or guidelines may cause the Bank's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Bank's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Bank conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Bank currently anticipates; legislation or regulatory changes may adversely affect the Bank's business; technological changes may be more difficult or expensive than the Bank anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Bank anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Bank anticipates.

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