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.

Beach Cities Commercial Bank
Unaudited Statements of Financial Conditions
Assets   As of June 30 2026   As of June 30 2025   12 Months Growth   12 Months Growth %   As of December 31 2025   Six Months Growth   Six Months Growth %
Total Cash and Due From  

$

30,997,353

 

  

$

27,629,896

 

  

$

3,367,458

 

  

12

%

  

$

28,312,636

 

  

$

2,684,717

 

  

9

%
               
US Treasury Securities  

 

998,658

 

  

 

998,522

 

  

 

136

 

  

0

%

  

 

1,003,574

 

  

 

(4,916

)

  

(0

%)
Mortgage Backed Securities  

 

1,260,663

 

  

 

–

 

  

 

1,260,663

 

  

0

%

  

 

1,282,672

 

  

 

(22,009

)

  

(2

%)
Short Term Securities  

 

864,000

 

  

 

572,000

 

  

 

292,000

 

  

51

%

  

 

572,000

 

  

 

292,000

 

  

51

%
Total Investments  

 

3,123,321

 

  

 

1,570,522

 

  

 

1,552,799

 

  

99

%

  

 

2,858,247

 

  

 

265,075

 

  

9

%
               
Gross Loans  

 

153,507,537

 

  

 

131,335,545

 

  

 

22,171,991

 

  

17

%

  

 

144,052,034

 

  

 

9,455,502

 

  

7

%
Allowance for Credit Losses  

 

(1,440,000

)

  

 

(1,272,000

)

  

 

(168,000

)

  

(13

%)

  

 

(1,412,000

)

  

 

(28,000

)

  

(2

%)
Net Loans  

 

152,067,537

 

  

 

130,063,545

 

  

 

22,003,991

 

  

17

%

  

 

142,640,034

 

  

 

9,427,502

 

  

7

%
               
Total Fixed Assets  

 

88,893

 

  

 

163,382

 

  

 

(74,489

)

  

(46

%)

  

 

127,674

 

  

 

(38,782

)

  

(30

%)
Right of Use Assets  

 

816,623

 

  

 

1,202,008

 

  

 

(385,385

)

  

(32

%)

  

 

1,012,073

 

  

 

(195,450

)

  

(19

%)
Prepaid  

 

1,049,575

 

  

 

1,170,016

 

  

 

(120,441

)

  

(10

%)

  

 

1,067,474

 

  

 

(17,899

)

  

(2

%)
Total Other Assets  

 

723,541

 

  

 

660,369

 

  

 

63,171

 

  

10

%

  

 

719,044

 

  

 

4,496

 

  

1

%
Total Assets  

$

188,866,843

 

  

$

162,459,738

 

  

$

26,407,105

 

  

16

%

  

$

176,737,183

 

  

$

12,129,660

 

  

7

%
               
Demand Deposit Accounts  

$

17,662,916

 

  

$

14,979,398

 

  

$

2,683,518

 

  

18

%

  

$

20,790,376

 

  

($

3,127,461

)

  

(15

%)
NOW Accounts  

 

580,044

 

  

 

922,522

 

  

 

(342,478

)

  

(37

%)

  

 

880,668

 

  

 

(300,625

)

  

(34

%)
Money Market Accounts  

 

67,443,355

 

  

 

50,456,931

 

  

 

16,986,425

 

  

34

%

  

 

55,195,257

 

  

 

12,248,098

 

  

22

%
Total Demand Deposits  

 

85,686,314

 

  

 

66,358,850

 

  

 

19,327,464

 

  

29

%

  

 

76,866,302

 

  

 

8,820,013

 

  

11

%
               
Savings Accounts  

 

66,528

 

  

 

5,060,922

 

  

 

(4,994,394

)

  

(99

%)

  

 

5,061,600

 

  

 

(4,995,072

)

  

(99

%)
Total CDs  

 

53,802,805

 

  

 

61,587,394

 

  

 

(7,784,590

)

  

(13

%)

  

 

61,583,728

 

  

 

(7,780,924

)

  

(13

%)
Total Deposits  

 

139,555,647

 

  

 

133,007,166

 

  

 

6,548,481

 

  

5

%

  

 

143,511,629

 

  

 

(3,955,983

)

  

(3

%)
               
Other Borrowed < 1 Yr  

 

29,000,000

 

  

 

12,000,000

 

  

 

17,000,000

 

  

142

%

  

 

16,000,000

 

  

 

13,000,000

 

  

81

%
Total Borrowings  

 

29,000,000

 

  

 

12,000,000

 

  

 

17,000,000

 

  

142

%

  

 

16,000,000

 

  

 

13,000,000

 

  

81

%
               
Accrued Interest Payable  

 

82,611

 

  

 

109,377

 

  

 

(26,766

)

  

(24

%)

  

 

115,697

 

  

 

(33,086

)

  

(29

%)
Accrued Expenses  

 

313,080

 

  

 

353,397

 

  

 

(40,317

)

  

(11

%)

  

 

346,330

 

  

 

(33,250

)

  

(10

%)
Premise Lease Liability  

 

897,233

 

  

 

1,298,330

 

  

 

(401,098

)

  

(31

%)

  

 

1,102,793

 

  

 

(205,561

)

  

(19

%)
Miscellaneous Liabilities  

 

604,231

 

  

 

765,010

 

  

 

(160,779

)

  

(21

%)

  

 

824,503

 

  

 

(220,271

)

  

(27

%)
Total Other Liabilities  

 

1,897,155

 

  

 

2,526,114

 

  

 

(628,960

)

  

(25

%)

  

 

2,389,323

 

  

 

(492,168

)

  

(21

%)
Total Liabilities  

 

170,452,802

 

  

 

147,533,280

 

  

 

22,919,521

 

  

16

%

  

 

161,900,952

 

  

 

8,551,849

 

  

5

%
               
Common Stock  

 

28,539,397

 

  

 

25,116,895

 

  

 

3,422,502

 

  

14

%

  

 

25,142,838

 

  

 

3,396,559

 

  

14

%
Additional Paid in Capital  

 

823,940

 

  

 

667,786

 

  

 

156,154

 

  

23

%

  

 

676,328

 

  

 

147,612

 

  

22

%
APIC – Warrants  

 

92,901

 

  

 

–

 

  

 

92,901

 

  

0

%

  

 

–

 

  

 

92,901

 

  

0

%
Retained Earnings  

 

(10,961,060

)

  

 

(10,355,311

)

  

 

(605,749

)

  

(6

%)

  

 

(10,355,311

)

  

 

(605,749

)

  

(6

%)
FAS 115 Unrealized Gain/Loss  

 

(41,138

)

  

 

(296

)

  

 

(40,842

)

  

(13,811

%)

  

 

(21,875

)

  

 

(19,263

)

  

(88

%)
Profit/Loss YTD  

 

(39,999

)

  

 

(502,616

)

  

 

462,618

 

  

92

%

  

 

(605,749

)

  

 

565,750

 

  

93

%
Total Equity  

 

18,414,041

 

  

 

14,926,458

 

  

 

3,487,584

 

  

23

%

  

$

14,836,231

 

  

$

3,577,811

 

  

24

%
Total Liabilities & Equity  

$

188,866,843

 

  

$

162,459,738

 

  

$

26,407,105

 

  

16

%

  

$

176,737,183

 

  

$

12,129,660

 

  

7

%
BEACH CITIES COMMERCIAL BANK
UNAUDITED STATEMENT OF OPERATIONS
           
  For the Three Months Ended For the Six Months Ended   For the Six Months Ended For the Twelve Months Ended   For the Twelve Months Ended
           
  June 30, 2026   March 31, 2026   December 31, 2025 June 30, 2026   June 30, 2025 December 31, 2025   December 31, 2024
Interest Income:          
Interest and fees on loans  

$

2,866,140

  

$

2,667,728

 

  

$

2,568,060

 

$

5,533,868

 

  

$

4,538,838

 

$

9,636,316

 

  

$

4,692,037

 
Interest on securities  

 

43,909

  

 

50,194

 

  

 

28,624

 

 

94,103

 

  

 

32,135

 

 

81,437

 

  

 

54,054

 
Interest on federal funds sold and other interest-bearing deposits  

 

243,131

  

 

244,528

 

  

 

268,782

 

 

487,659

 

  

 

438,458

 

 

1,000,682

 

  

 

860,018

 
Total Interest Income  

 

3,153,180

  

 

2,962,450

 

  

 

2,865,466

 

 

6,115,630

 

  

 

5,009,431

 

 

10,718,435

 

  

 

5,606,109

 
     

 

–

 

    
Interest Expense:      

 

–

 

    
Interest on Deposits  

 

1,097,575

  

 

1,106,389

 

  

 

1,174,229

 

 

2,203,964

 

  

 

2,286,722

 

 

4,710,894

 

  

 

2,404,973

 
Interest on Borrowings  

 

246,931

  

 

198,524

 

  

 

101,558

 

 

445,455

 

  

 

52,096

 

 

209,377

 

  

 

12,941

 
Total Interest Expense  

 

1,344,506

  

 

1,304,913

 

  

 

1,275,787

 

 

2,649,419

 

  

 

2,338,818

 

 

4,920,271

 

  

 

2,417,914

 
     

 

–

 

    
Net Interest Income  

 

1,808,674

  

 

1,657,537

 

  

 

1,589,679

 

 

3,466,211

 

  

 

2,670,613

 

 

5,798,164

 

  

 

3,188,195

 
     

 

–

 

    
Provisions for Credit Losses  

 

28,000

  

 

–

 

  

 

140,000

 

 

28,000

 

  

 

58,000

 

 

204,000

 

  

 

927,000

 
Net interest income after provisions for credit losses  

 

1,780,674

  

 

1,657,537

 

  

 

1,449,679

 

 

3,438,211

 

  

 

2,612,613

 

 

5,594,164

 

  

 

2,261,195

 
     

 

–

 

    
Non-interest income:      

 

–

 

    
Service charges, fees and other  

 

46,585

  

 

35,785

 

  

 

42,864

 

 

82,370

 

  

 

57,129

 

 

95,820

 

  

 

18,662

 
Gain on sale of loans  

 

187,691

  

 

47,690

 

  

 

7,858

 

 

235,381

 

  

 

423,283

 

 

456,141

 

  

 

127,399

 
Non-interest income  

 

234,276

  

 

83,475

 

  

 

50,722

 

 

317,751

 

  

 

480,412

 

 

551,961

 

  

 

146,061

 
     

 

–

 

    
Non-Interest expense:      

 

–

 

    
Salaries and employee benefits  

 

1,095,708

  

 

1,136,392

 

  

 

899,759

 

 

2,232,100

 

  

 

2,301,701

 

 

4,121,152

 

  

 

4,481,445

 
Occupancy and Equipment expenses  

 

169,244

  

 

165,273

 

  

 

167,535

 

 

334,517

 

  

 

339,736

 

 

684,398

 

  

 

691,504

 
Data Processing  

 

202,294

  

 

203,160

 

  

 

206,470

 

 

405,454

 

  

 

342,972

 

 

742,875

 

  

 

628,030

 
Legal  

 

29,330

  

 

15,000

 

  

 

16,050

 

 

44,330

 

  

 

125,683

 

 

96,233

 

  

 

94,948

 
Professional/Consulting  

 

39,646

  

 

48,353

 

  

 

55,893

 

 

87,999

 

  

 

14,270

 

 

206,314

 

  

 

349,502

 
Other Expenses  

 

366,154

  

 

324,606

 

  

 

272,291

 

 

690,760

 

  

 

470,479

 

 

900,101

 

  

 

684,053

 
Total Non-interest expense  

 

1,902,376

  

 

1,892,784

 

  

 

1,617,998

 

 

3,795,160

 

  

 

3,594,841

 

 

6,751,073

 

  

 

6,929,482

 
     

 

–

 

    
Income (Loss) before taxes  

 

112,574

  

 

(151,772

)

  

 

(117,597

)

 

(39,198

)

  

 

(501,816

)

 

(604,948

)

  

 

(4,522,226

)
Income tax expense  

 

800

  

 

–

 

  

 

–

 

 

800

 

  

 

800

 

 

800

 

  

 

1,600

 
Net Income (Loss)  

$

111,774

  

$

(151,772

)

  

$

(117,597

)

$

(39,998

)

  

$

(502,616

)

$

(605,748

)

  

$

(4,523,826

)
           
Earnings per share (“EPS”): Basic  

$

0.04

  

$

(0.06

)

  

$

(0.05

)

$

(0.01

)

  

$

(0.20

)

$

(0.24

)

  

$

(1.76

)
Common Shares Outstanding  

 

2,942,492

  

 

2,627,385

 

  

 

2,568,395

 

 

2,942,492

 

  

 

2,565,864

 

 

2,565,864

 

  

 

2,565,864

 

 

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