FFB Bancorp Q3 profit falls on higher provision for credit losses
FFBB•FFB Bancorp’s third-quarter net income was $4.62 million and EPS was $1.61, both down sequentially and year over year as its provision for credit losses increased. Deposits rose 9% from the prior quarter and 19% year over year.
1. Earnings and deposits
FFB Bancorp reported third-quarter net income of $4.62 million and EPS of $1.61, both lower sequentially and year over year. Net interest margin was 4.73%. Total deposits increased 9% from the prior quarter and 19% year over year.
2. Credit costs and outlook
An elevated provision for credit losses and charge-offs affected quarterly earnings. Operating revenue growth from higher loan and overnight cash interest income was partly offset by increased interest expense and lower gains on loan sales and merchant services. The company aims to grow core deposits and reduce wholesale funding, and management expects deposit growth to continue through year-end.
3. Share repurchases
The company completed its $15 million share repurchase program, buying back 20,210 shares in the quarter. Management expects operating leverage to improve as growth accelerates over the next several quarters.
