Coastal Commercial Bank Soars with Impressive Growth and Resilience

Irvine, California, July 31, 2024 – Beach Cities Commercial Bank (OTCQB: BCCB), a thriving financial institution serving the Southern California region, has announced its financial results for the quarter ended June 30, 2024. The bank's remarkable performance showcases its ability to navigate the dynamic market landscape and deliver exceptional value to its clients.

Powering Ahead: Beach Cities Commercial Bank's Remarkable Expansion

Robust Asset Growth and Loan Portfolio Expansion

Beach Cities Commercial Bank has experienced a remarkable surge in its asset base, with total assets reaching .2 million as of June 30, 2024, a staggering 69.3% increase from December 31, 2023. This impressive growth can be attributed to the bank's strategic focus on expanding its loan portfolio, which saw a remarkable 185.9% increase, reaching .1 million during the same period. The bank's ability to rapidly grow its lending activities while maintaining a strong credit quality is a testament to its disciplined approach and the trust it has earned from its clients.

Deposit Growth Fuels Expansion

Complementing the bank's loan growth, Beach Cities Commercial Bank has also witnessed a significant increase in its deposit base. Total deposits reached .3 million as of June 30, 2024, a 124.7% surge from the end of the previous year. This robust deposit growth has provided the bank with the necessary funding to support its expanding loan portfolio and drive its overall business expansion.

Liquidity and Contingency Measures Ensure Stability

Recognizing the importance of maintaining a strong liquidity position, Beach Cities Commercial Bank has strategically managed its liquidity resources. As of June 30, 2024, the bank's total liquidity stood at .3 million, representing a healthy 17.7% of its total assets. Additionally, the bank has established contingent borrowing sources totaling .9 million, which equates to 32% of its total assets. This multi-layered approach to liquidity management ensures that the bank is well-positioned to navigate potential market fluctuations and seize growth opportunities.

Optimizing Net Interest Margin and Credit Quality

The bank's loan portfolio has demonstrated a strong average yield of 8%, contributing to a healthy net interest margin of 4.14% as of June 30, 2024. This performance is further bolstered by the bank's prudent credit risk management, as evidenced by its reserve for credit losses of 6,000, which equates to 1.15% of the total loan portfolio. Notably, the bank has reported zero dollars in delinquent and non-performing loans, showcasing its commitment to maintaining a high-quality asset base.

Navigating Challenges and Driving Profitability

While the bank reported a net loss of .27 million for the second quarter of 2024 and a year-to-date net loss of .59 million, it has demonstrated its ability to navigate these challenges. The bank's interest income increased by 47% in the second quarter compared to the first quarter, contributing to a 23% increase in net interest income. The bank has also taken proactive measures to address its interest expense, launching a campaign to replace high-cost institutional CD deposits with non-interest-bearing deposits, which is expected to reduce its interest costs going forward.

Investing in Technology and Talent

Beach Cities Commercial Bank has made strategic investments in its technology platform and human capital to enhance its service offerings and operational efficiency. The bank has completed several technology-related projects, which have resulted in an increase in data processing and professional/legal expenses. However, as these initiatives are fully implemented, the bank anticipates a reduction in its reliance on outside consultants, leading to improved cost efficiencies in the third quarter of 2024.

Optimistic Outlook and Continued Growth

The bank's leadership team, led by CEO H. Kent Falk and President Jeffrey Redeker, has expressed optimism about the bank's future. "The Bank completed its first full year in operations in June 2024, and during this period, has made tremendous progress in growing the Bank," noted H. Kent Falk. "We have a great board of directors and a team of associates put together that continue to work diligently to offer excellent products and services to our clients. We are very excited about our future," stated Jeffrey Redeker.As Beach Cities Commercial Bank continues to navigate the dynamic market landscape, its impressive growth, strong liquidity position, and commitment to delivering exceptional value to its clients position it for continued success. The bank's resilience and strategic focus on technology and talent development underscore its ability to adapt and thrive in the ever-evolving financial services industry.