Beach Cities Commercial Bank, www.beachcitiescb.com (OTCQB: BCCB) (the “Bank”), today announced financial results for the quarter ended June 30, 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 $162.5 million as of June 30, 2025, which increased by $81.3 million from June 30, 2024 (100% growth).
- Total loans were $131.3 million as of June 30, 2025, which increased by $68.2 million from June 30, 2024, (108% growth).
- Total deposits were $133.0 million as of June 30, 2025, which increased by $71.7 million from June 30, 2024 (117%).
- Total liquidity remains high at $27.6 million, which equates to 17.01% of the Bank’s total assets. The Bank also maintains contingent available borrowing sources at $20.3 million which equals 12.5% of total assets.
- The loan portfolio average yield was 7.57% which contributed to a healthy net interest margin at 3.48% as of June 30, 2025.
- The Bank maintains a reserve for credit losses of $1.272 million which equates to 0.97% of total loans. As of June 30, 2025, the Bank had zero dollars in both delinquent and non-performing loans.
The shareholders’ equity was at $14.9 million as of June 30, 2025, which was reduced by $305k from December 31, 2024, mainly due to the operating loss. The Bank’s tier 1 capital to average assets ratio was at 9.55%, which is considered well-capitalized under the regulatory framework.
The Bank reported the second-quarter of 2025 net loss of $260.7k which increased slightly from the first-quarter of 2025 loss of $242k. During the second quarter, the Bank increased its loan portfolio by $7.85 million, which increased its quarterly total interest income by $476.1k.
During the second quarter of 2025 the total interest income was $2.77 million compared to $2.28 million recorded during the first quarter of 2025, an increase of 21%. The Bank’s interest expense from the interest-bearing deposits was $1.26 million for the second quarter of 2025 compared to $1.08 million for the first quarter of 2025 an increase of 16.7%. 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. During the second quarter of 2025, the Bank increased its borrowings from the Federal Home Loan Bank of San Francisco (FHLBSF). As a result, the Bank’s borrowing interest expense increased to $47k in the second quarter of 2025 compared to $4.9k interest expense from borrowings during the first quarter, 2025. The second quarter 2025 net interest income increased by $302k from the first quarter 2025, an increase of 25.1%.
In the second quarter of 2025, the Bank sold SBA loans which netted gains of $168k compared to $255k in gain on sale realized in the first quarter 2025.
Total non-interest expenses for the second quarter of 2025 were $1.88 million compared to $1.71 million incurred during the first quarter, 2025, an increase of $171.1k. During the second quarter, the technology/data processing expense increased due to the Bank’s growth in opening new accounts and adding new products/services such as Zelle. The legal expenses were $49k in the second quarter, 2025, compared to $16.5k in the first quarter, 2025. The $32.5k increase was for non-recurring legal costs related to leadership and staff changes incurred during the second quarter, 2025. The Bank continues to manage its operating expenses tightly.
As noted above, the Bank’s liquidity remains above 17% 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 June 30, 2025, total contingent borrowing sources unused totaled $20.3 million or 12.5% of total assets outstanding.
“The Bank’s asset quality remains strong with no delinquent and non-performing loans on its balance sheet. Our quality deal flow for both loans and deposits continue to look strong,” commented Matt Blackmer, Chief Credit Officer.
“In June this year, the Bank completed its two years in operation. The Bank’s growth has been in par with our planned projected growth. Our goal for the remainder of this year is to continue to grow revenues and control operating costs. With this trajectory, we plan to achieve sustained profitability,” commented Najam Saiduddin, Chief Financial Officer.
“As we embark on our search for our new President/CEO, the Bank continues to grow in a thoughtful, safe, and sound manner. We continue our commitment to high ethics and business standards, all the hallmarks in creating a successful enterprise. Our Board, and the entire Beach Cities Commercial Bank team remains focused in attaining and achieving our strategic goals and objectives,” commented Angela Bienert, 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.
| Beach Cities Commercial Bank | ||||||||||||||||||||
| Unaudited Statements of Financial Condition | ||||||||||||||||||||
| Asset | As of June 30, 2025 | As of Dec 31, 2024 | Qtr. Growth $ | Qtr. Growth % | As of June 30, 2024 | Annual Growth $ | Annual Growth % | |||||||||||||
| Total Cash and Cash Equivalent | $ | 27,629,896 | $ | 22,112,065 | $ | 5,517,831 | 25 | % | $ | 14,345,518 | $ | 13,284,378 | 93 | % | ||||||
| Debt Securities Available for Sale | $ | 998,522 | 984,026 | 14,496 | 1 | % | $ | 992,559 | 5,963 | 1 | % | |||||||||
| FHLB Stock | $ | 572,000 | 124,800 | 447,200 | 358 | % | $ | 108,500 | 463,500 | 427 | % | |||||||||
| Total Investments | $ | 1,570,522 | 1,108,826 | 461,696 | 42 | % | $ | 1,101,059 | 469,463 | 43 | % | |||||||||
| Gross Loans | $ | 131,335,545 | 105,648,160 | 25,687,385 | 24 | % | $ | 63,135,638 | 68,199,907 | 108 | % | |||||||||
| Allowance for Credit Losses | ($ | 1,272,000 | ) | (1,214,000 | ) | (58,000 | ) | (5 | %) | ($ | 726,000 | ) | (546,000 | ) | (75 | %) | ||||
| Net Loans | $ | 130,063,545 | 104,434,160 | 25,629,385 | 25 | % | $ | 62,409,638 | 67,653,907 | 108 | % | |||||||||
| Fixed Assets | $ | 163,382 | 189,606 | (26,225 | ) | (14 | %) | $ | 222,669 | (59,288 | ) | (27 | %) | |||||||
| Right of Use Assets | $ | 1,202,008 | 1,386,721 | (184,713 | ) | (13 | %) | $ | 1,566,409 | (364,401 | ) | (23 | %) | |||||||
| Prepaid | $ | 1,170,016 | 1,061,411 | 108,606 | 10 | % | $ | 1,158,273 | 11,743 | 1 | % | |||||||||
| Total Other Assets | $ | 692,369 | 492,926 | 199,444 | 40 | % | $ | 388,870 | 303,500 | 78 | % | |||||||||
| Total Assets | $ | 162,491,738 | $ | 130,785,714 | $ | 31,706,024 | 24 | % | $ | 81,192,436 | $ | 81,299,303 | 100 | % | ||||||
| Demand Deposit Accounts | $ | 15,011,398 | $ | 13,870,624 | $ | 1,140,774 | 8 | % | $ | 7,192,511 | $ | 7,818,887 | 109 | % | ||||||
| NOW Accounts | $ | 922,522 | 938,289 | (15,767 | ) | (2 | %) | $ | 859,602 | 62,920 | 7 | % | ||||||||
| Money Market Accounts | $ | 50,456,931 | 48,539,814 | 1,917,116 | 4 | % | $ | 26,145,078 | 24,311,852 | 93 | % | |||||||||
| Total Demand Deposits | $ | 66,390,850 | 63,348,727 | 3,042,123 | 5 | % | $ | 34,197,191 | 32,193,659 | 94 | % | |||||||||
| Savings Accounts | $ | 5,060,922 | 5,058,477 | 2,445 | 0 | % | $ | 39,286 | 5,021,636 | 12,782 | % | |||||||||
| Total CDs | $ | 61,587,394 | 44,484,698 | 17,102,696 | 38 | % | $ | 27,101,286 | 34,486,108 | 127 | % | |||||||||
| Total Deposits | $ | 133,039,166 | 112,891,902 | 20,147,264 | 18 | % | $ | 61,337,763 | 71,701,403 | 117 | % | |||||||||
| Other Borrowed < 1 Yr | $ | 12,000,000 | – | 12,000,000 | 100 | % | $ | 0 | 12,000,000 | 100 | % | |||||||||
| Total Other Liabilities | $ | 2,526,114 | 2,661,935 | (135,821 | ) | (5 | %) | $ | 2,846,402 | (320,288 | ) | (11 | %) | |||||||
| Total Liabilities | $ | 147,533,280 | 115,553,837 | 31,979,444 | 28 | % | $ | 64,184,166 | 83,349,115 | 130 | % | |||||||||
| Common Stock | $ | 25,116,895 | 25,116,895 | – | 0 | % | $ | 25,019,375 | 97,520 | 0 | % | |||||||||
| Surplus | $ | 667,786 | 470,347 | 197,439 | 42 | % | $ | 416,786 | 251,000 | 60 | % | |||||||||
| Retained Earnings | ($ | 10,355,311 | ) | (5,831,485 | ) | (4,523,826 | ) | (78 | %) | ($ | 5,831,485 | ) | (4,523,826 | ) | (78 | %) | ||||
| FAS 115 Unrealized Gain/Loss | ($ | 296 | ) | (54 | ) | (242 | ) | (448 | %) | ($ | 1,424 | ) | 1,128 | 79 | % | |||||
| Profit/Loss YTD | ($ | 502,616 | ) | (4,523,826 | ) | 4,021,210 | 89 | % | ($ | 2,594,981 | ) | 2,092,365 | 81 | % | ||||||
| Total Equity | $ | 14,926,458 | $ | 15,231,877 | ($ | 305,419 | ) | (2 | %) | $ | 17,008,270 | ($ | 2,081,812 | ) | (12 | %) | ||||
| Total Liabilities & Equity | $ | 162,491,738 | $ | 130,785,714 | $ | 31,706,024 | 24 | % | $ | 81,192,436 | $ | 81,299,303 | 100 | % | ||||||
| BEACH CITIES COMMERCIAL BANK | |||||||||||||||||||||||
| UNAUDITED STATEMENT OF OPERATIONS | |||||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | For the Twelve Months Ended | For the twelve Months Ended | ||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2025 | June 30, 2024 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Interest Income: | |||||||||||||||||||||||
| Interest and fees on loans | $ | 2,515,860 | $ | 2,062,683 | $ | 1,634,051 | $ | 4,578,543 | $ | 1,643,372 | $ | 4,692,037 | $ | 336,181 | |||||||||
| Interest on securities | 18,549 | 13,586 | 13,814 | 32,135 | 26,259 | 54,054 | 17,320 | ||||||||||||||||
| Interest on federal funds sold and other interest-bearing deposits | 231,188 | 207,270 | 213,719 | 438,458 | 467,161 | 860,018 | 821,283 | ||||||||||||||||
| Total Interest Income | 2,765,597 | 2,283,539 | 1,861,584 | 5,049,136 | 2,136,792 | 5,606,109 | 1,174,784 | ||||||||||||||||
| Interest Expense: | |||||||||||||||||||||||
| Interest on Deposits | 1,212,316 | 1,074,406 | 859,137 | 2,286,722 | 841,701 | 2,404,973 | 348,700 | ||||||||||||||||
| Interest on Borrowings | 47,128 | 4,968 | 945 | 52,096 | 19 | 12,941 | – | ||||||||||||||||
| Total Interest Expense | 1,259,444 | 1,079,374 | 860,082 | 2,338,818 | 841,720 | 2,417,914 | 348,700 | ||||||||||||||||
| Net Interest Income | 1,506,153 | 1,204,165 | 1,001,502 | 2,710,318 | 1,295,072 | 3,188,195 | 826,084 | ||||||||||||||||
| Provisions for Credit Losses | 64,000 | – | 381,000 | 64,000 | 429,000 | 927,000 | 317,000 | ||||||||||||||||
| Net interest income after provisions for loan losses | 1,442,153 | 1,204,165 | 620,502 | 2,646,318 | 866,072 | 2,261,195 | 509,084 | ||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Service charges, fees and other | 9,656 | 7,769 | 3,004 | 17,425 | 9,264 | 18,662 | 1,706 | ||||||||||||||||
| Gain on sale of loans | 168,249 | 255,034 | 127,399 | 423,283 | – | 127,399 | – | ||||||||||||||||
| 177,905 | 262,803 | 130,403 | 440,708 | 9,264 | 146,061 | 1,706 | |||||||||||||||||
| Non-Interest expense: | |||||||||||||||||||||||
| Salaries and employee benefits | 1,167,215 | 1,134,486 | 1,134,175 | 2,301,701 | 2,240,449 | 4,481,445 | 2,318,336 | ||||||||||||||||
| Occupancy and Equipment expenses | 171,924 | 167,812 | 169,431 | 339,736 | 346,325 | 691,504 | 408,909 | ||||||||||||||||
| Organization Expenses | – | – | – | – | – | 1,045,800 | |||||||||||||||||
| Data Processing | 192,403 | 150,569 | 172,028 | 342,972 | 303,432 | 628,030 | 332,424 | ||||||||||||||||
| Legal | 49,198 | 16,485 | 19,633 | 65,683 | 34,785 | ||||||||||||||||||
| Professional/Consulting | 100,652 | 41,749 | 40,101 | 142,401 | 248,524 | 444,450 | 469,110 | ||||||||||||||||
| Other Expenses | 198,597 | 197,752 | 204,097 | 396,349 | 295,201 | 684,053 | 294,946 | ||||||||||||||||
| Total Non-interest expense | 1,879,989 | 1,708,853 | 1,739,465 | 3,588,842 | 3,468,716 | 6,929,482 | 4,869,525 | ||||||||||||||||
| Income (Loss) before taxes | (259,931 | ) | (241,885 | ) | (988,560 | ) | (501,816 | ) | (2,593,380 | ) | (4,522,226 | ) | (4,358,735 | ) | |||||||||
| Income tax expense | 800 | – | – | 800 | 1,600 | 1,600 | 800 | ||||||||||||||||
| Net Income (Loss) | $ | (260,731 | ) | $ | (241,885 | ) | $ | (988,560 | ) | $ | (502,616 | ) | $ | (2,594,980 | ) | $ | (4,523,826 | ) | $ | (4,359,535 | ) | ||
| Earnings per share (“EPS”): Basic | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.39 | ) | $ | (0.20 | ) | $ | (1.02 | ) | $ | (1.76 | ) | $ | (1.71 | ) | ||
| Common Shares Outstanding | 2,565,864 | 2,565,864 | 2,565,864 | $ | 2,565,864 | 2,556,112 | 2,565,864 | 2,556,112 | |||||||||||||||
