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Banking industry

FFB Bancorp Reports Net Income of $8.08 Million for Q2 2024

Strategic Insights

— 2 min read

FFB Bancorp, the parent company of FFB Bank, achieved net income of $8.08 million for the second quarter of 2024, a 4% increase from $7.79 million in the first quarter of 2024. Operating revenue grew 1% to $24.73 million, driven by loan and investment portfolio growth at higher yields, while the company's net interest margin (NIM) improved to 5.31%. Despite a decrease in non-interest income, the company reported a strong pipeline of payment-related partners and revenue growth opportunities across its ISO partner sponsorships and FFB Payments. The company's strategic focus is to expand its customer deposit base through its regional expansion and national payments franchise.

Key Takeaways:

  • FFB Bancorp reported net income of $8.08 million for the second quarter of 2024, a 4% increase from $7.79 million in the first quarter of 2024.
  • Operating revenue grew 1% to $24.73 million, driven by loan and investment portfolio growth at higher yields.
  • The company's net interest margin (NIM) improved to 5.31%, an increase of 20 basis points from the second quarter of 2023.
  • Non-interest income decreased 9% to $7.42 million, driven by a reduction in merchant services revenue, but partially offset by a reduction in loss on sale of investment securities and an increase in gain on sale of loans.
  • The company added $291,000 to its allowance for credit loss during the quarter as a result of loan portfolio growth.
  • FFB Bancorp launched a new Cross Border payment rail developed by Visa, which will provide a competitive product offering and a new revenue stream.

Statistics:

  • Net income for Q2 2024 was $8.08 million, an increase of $0.29 million (4%) from Q1 2024.
  • Operating revenue for Q2 2024 was $24.73 million, an increase of $0.22 million (1%) from Q1 2024.
  • Net interest income for Q2 2024 was $17.31 million, an increase of $0.92 million (6%) from Q1 2024.
  • Non-interest income for Q2 2024 was $7.42 million, a decrease of $0.70 million (9%) from Q2 2023.
  • Net interest margin (NIM) for Q2 2024 was 5.31%, an increase of 0.21% from Q2 2023.
  • The yield on earning assets was 6.40% for Q2 2024, an increase of 0.26% from Q2 2023.
  • The cost of funds was 1.10% for Q2 2024, an increase of 0.48% from Q2 2023.

Sources:

  • FFB Bancorp, "FFB Bancorp Reports Second Quarter 2024 Earnings" (2024).
  • FFB Bancorp, "FFB Bancorp Announces Second Quarter 2024 Earnings Release" (2024).
  • SEC Filing, "FFB Bancorp, Inc. (FFB) Recent Filing: Form 10-Q, Quarterly Report, Second Quarter 2024" (2024).

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