Beach Cities Commercial Bank Announces Second Quarter 2026 Financial Results

Beach Cities Commercial Bank, www.beachcitiescb.com (OTCQB: BCCB) (the “Bank”), today announced financial results for the quarter ended June 30, 2026. Thomas J. Inserra – President & CEO stated: “We are pleased to announce the achievement of three key milestones, including: 1) Reaching an Asset size of $188.9 million; 2) Profit for the second quarter; and 3) Attainment of Year-to-Date profitability through the first seven months of 2026 as a notable subsequent event. These key milestones demonstrate the bank has now achieved sufficient asset size to generate sustained profitability. We would like to thank our growing and loyal small-business client base, our shareholders, Board Members and our employees for their support in reaching these key milestones.”

Significant items for the period include:

• Total assets were $188.9 million as of June 30, 2026, which increased by $12.1 million from December 31, 2025 (7% growth). On a twelve-months basis, total assets increased by $26.4 million (16% growth) from June 30, 2025.

• Gross loans were $153.5 million as of June 30, 2026, which increased by $9.5 million from December 31, 2025, (7% growth). Compared to June 30, 2025, gross loans increased $22.2 million (17%).

• Total deposits were $139.6 million as of June 30, 2026, which decreased by $3.9 million from December 31, 2025 (-3%). However, on a twelve-month basis, total deposits grew by $6.5 million (5%). During the six-month period 2026, the Bank reduced its institutional CD balances by $7.7 million which resulted in CD interest expense savings and reduction in deposits.

• Net income was $111.8k for the second quarter ending June 30, 2026, compared to a loss of $151.8k for the second quarter ending March 31, 2026. On a year-to-date basis for 2026, the total loss was reduced to $40k.

• Total liquidity remains high at $32.8 million, which equates to 17.34% of the Bank’s total assets. The Bank also maintains contingent available borrowing sources at $17 million, which equals 9% of total assets.

• The loan portfolio average yield was 7.50% which contributed to a healthy net interest margin at 3.83% as of June 30, 2026.

• The Bank maintains an allowance for credit losses of $1.440 million, which equates to 0.94% of total loans. Excluding loans held-for-sale, the allowance for credit losses is 1.08%. As of June 30, 2026, the Bank’s loan portfolio included $33.3 million in both State and SBA guaranteed loans. Excluding the loan guaranteed portion, the allowance for credit loss ratio is 1.20%. As of June 30, 2026, the Bank’s balance sheet had no delinquent and non-performing assets.

The shareholders’ equity was $18.4 million as of June 30, 2026, which increased by $3.6 million from December 31, 2025. The Bank’s tier one capital to average assets ratio was 9.81%, which is considered well-capitalized under the regulatory framework. The Bank initiated a capital raise in March 2026 through a private placement offering with a target of raising $5 million, and as of end of June 2026, $3,553,921 was raised and added to the balance sheet capital account. The private placement offering is still ongoing, and representatives of the Bank continue to talk with interested investors. BCCB expects to close the private stock offering by September 30, 2026. At $9.50 per share, 374,097 shares of common stock and warrants for 74,819 shares have been issued as of June 30, 2026.

During the second quarter of 2026 the total interest income was $3.15 million compared to $2.96 million recorded during the first quarter of 2026, an increase of 6.4%. The Bank’s interest expense from the interest-bearing deposits was $1.09 million for the second quarter of 2026 compared to $1.10 million for the first quarter of 2026, a decrease of $9k. The interest expense decreased due to reduction in money market deposit rates and repricing of maturing institutional certificate of 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 2026, the Bank increased its borrowings to $29 million as of June 30, 2026, from the Federal Home Loan Bank of San Francisco (FHLBSF). As a result, the Bank’s borrowing interest expense increased to $247k in the second quarter of 2026 compared to $198k interest expense from borrowings during the first quarter, 2026. The second quarter 2026 net interest income increased by $151k from the first quarter 2025 due to growth in the loan portfolio.

In the second quarter of 2026, the Bank sold loans which netted gains of $188k compared to $48k in gain on sale realized in the first quarter 2026.

Total operating expenses for the second quarter of 2026 were $1.90 million compared to $1.89 million incurred during the first quarter, 2026, an increase of $9.6k (0%).

“Achieving profitability during the second quarter 2026 for our stakeholders was a major achievement. This milestone was achieved by growing the earning assets and maintaining our operating expenses. With new capital being added, the Bank will have the capacity to grow its earning assets further to achieve higher earnings,” commented Najam Saiduddin, Chief Financial Officer.

“The Bank’s asset quality continues to remain strong with no delinquent and non-performing loans on its balance sheet. Our quality deal flow for both loans and deposits look strong,” commented Matt Blackmer, Chief Credit Officer.

“We are extremely fortunate and pleased with Thomas Inserra’s leadership and the entire Executive Management Team; it’s through their hard work and dedication we’ve grown in a safe manner,” commented Angela Bienert, Chair Board of Directors.

Publicly traded Beach Cities Commercial Bank (OTCQB:”BCCB: is a full-service bank, serving small and mid-sized businesses, non-profits, commercial and professional markets. The Bank meets the financial needs of its business clients with a range of SBA, commercial & industrial, and conventional loans for working capital, equipment, owner-occupied commercial real estate, and a full array of treasury, payment, cash management services, and deposit products for businesses and their owners. BCCB meets its clients’ needs through custom-tailored products with white-glove service. 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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