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In their latest earnings report for the second quarter of 2025, area community banks reported mixed results. The locally based banks faced tighter margins and slower loan demand.

 

FFB Bancorp 

FFB Bancorp, the parent company of FFB Bank in Fresno, reported net income of $6.04 million, or $1.94 per diluted share, for the second quarter of 2025. Compared to $6.65 million, or $2.11 per share, during the same quarter a year earlier.

“During the quarter FFB Bank was recognized as #1 in American Banker’s top-performing public banks with under $2B in assets and #34 in S&P Global’s 100 best-performing US community banks of 2024, for banks under $3B in assets,” said FFB Bank President and CEO Steve Miller. “This recognition is a testament to the consistent success we’ve enjoyed, and a reminder of the results we expect and continue to strive toward. As we navigate the challenges this year has brought, we’re proud to build upon our history of success.”

In the first quarter of 2025, FFB Bancorp reported $8.10 million in net income.

The operating revenue, which includes net interest income and non-interest income, increased 11% to $27.35 million compared to 2024.

Pre-tax, pre-provision income increased to $11.58 million. However, net income dropped 25% due to higher funding costs, a decrease in net interest margin and a $261,000 interest reversal from non-accrual loans.

“Net interest income has benefited from strong loan portfolio growth, partially offset by higher funding costs,” said Bhavneet Gill, CFO. “We have been able to capitalize on a higher yielding loan portfolio, but that yield was impacted by a $261,000 interest reversal as loans, totaling $11.86 million, were placed on non-accrual during the quarter.”

 

Sierra Bancorp 

The Porterville-based Sierra Bancorp — the holding company for Bank of the Sierra reported net income of $10.6 million, slightly up from $10.3 million from this quarter last year. Additionally, the bank had reported loan growth of $127.9 million.

“Our team continues to provide the best banking service to our customers and communities, even as we face uncertainty and potential economic challenges,” said Kevin McPhaill, CEO and president of Bank of the Sierra. “The Bank’s second quarter results reflect our team’s efforts with strong loan and deposit growth. We are proud of our bankers, and we will remain diligent, committed, and conscientious as we work to make each of our communities stronger.”

Net interest income increased by $0.5 million, while non-interest income rose $0.9 million compared to the prior year. The gains were offset by a $0.3 million increase in provision for credit losses and a $1.1 million rise in noninterest expenses.

Sierra Bancorp’s effective tax rate was 25.3% of pre-tax income in the second quarter of 2025

 

United Security Bancshares

United Security Bancshares, the parent of United Security Bank, reported a net income of $2.2 million for the second quarter, compared to $4.3 million for last year.

The bank’s net interest rose slightly to 4.35% from 4.28% a year prior. Interest and fee income on loans increased by 1.3% to $13.8 million, while total interest income climbed to $15 million.

Due to a lack of one-time life insurance gains recorded in 2024, noninterest income dropped 50% to $758,000. Total loans increased to $947.3 million.

“Elevated student loan charge-offs continue to be incurred,

primarily due to the recent expiration of payment forbearance programs related to the pandemic, said President and CEO Dennis Woods. “This was the main cause of the $1.9 million provision for credit losses recorded during the quarter. While we may experience future charge-offs in this portfolio, we believe the overall allowance for credit losses is adequate. The net interest margin for the quarter was 4.35%, and the equity position remains strong, totaling $134.3 million.”

 

Community West Bancshares

Community West Bancshares, the parent company of Community West Bank, reported net income of $7.83 million, a complete reversal of the net loss of $6.29 million for this period last year.

The net income of $7.83 million was a slight decrease from the $8.29 million from the first quarter of 2025. The decrease was attributed to a $2.61 million provision for credit losses.

Gross loans increased by $52.5 million and deposits increased by $66 million. Net interest improved to 4.10%, and the cost of deposits fell to 1.43%.

The board also approved a share repurchase program of up to 3% of outstanding shares.

“Midway through 2025, the economic environment and business climate remains uncertain. Key industries across our Central California territory feel the effects of persistent inflation, evolving federal policy including its impact on labor and ongoing trade tensions,” said CEO James J. Kim.

The third quarter ends on Sept. 30.