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Bank of San Francisco Reports First Quarter Ended March 31, 2026 Financial Results

News Provided by ACCESS Newswire2026-04-30

SAN FRANCISCO, CA / ACCESS Newswire / April 30, 2026 /Bank of San Francisco ( "Bank ") (OTCQX:BSFO) today reported unaudited net income of $2.0 million, or $0.94 per diluted share for the three months ended March 31, 2026, compared to $2.2 million, or $1.03 per diluted share for the three months ended December 31, 2025, and $1.1 million, or $0.52 per diluted share for the three months ended March 31, 2025.

"First-quarter results continued 2025 's positive momentum. While often impacted by seasonal deposit outflows and additional salary expenses, the quarter produced outstanding results in key areas that demonstrate the progress made since the Bank embarked on its growth plan in 2024. Total assets increased 20% and earnings increased 83% from the same quarter in 2025 when many of our growth initiatives began. The additions of experienced individuals to our team and measured investments in operational infrastructure continue to deliver the balance sheet growth that drives profitability. First-quarter deposits increased $32.4 million from the prior quarter, with $10.9 million in non-interest-bearing accounts, while loan closings totaled $60 million. Consistent with our strategic goal to reduce our reliance on residential mortgages, many of the quarter 's commitments were commercial lines of credit that have not yet been fully drawn, but are expected to combine with a robust loan pipeline to further drive earning asset growth in the months ahead, " said William Keller, Chief Executive Officer.

"The opening celebration of our Laurel Village office in March marked an exciting moment for the Bank and for our continued growth in San Francisco, " said Bill Ward, President and Chief Operating Officer. "We were proud to be recognized by District 2 Supervisor Stephen Sherrill with a Certificate of Honor from the San Francisco Board of Supervisors and warmly welcomed by Rodney Fong and the San Francisco Chamber of Commerce. This expansion reflects our focus on thoughtful growth and relationship-driven banking, while further enhancing our ability to serve clients and communities across the city. "

Financial Highlights

Total deposits were $670.0 million at March 31, 2026, an increase of $32.4 million, or 5% from December 31, 2025, and $116.5 million, or 21% from March 31, 2025.
Non-interest-bearing demand deposits were $276.4 million at March 31, 2026, an increase of $10.9 million, or 4% from December 31, 2025, and $76.6 million, or 38% from March 31, 2025. Non-interest-bearing deposits accounted for 41.2% of total deposits at March 31, 2026, compared to 36.1% at March 31, 2025.
Interest-bearing deposits were $393.7 million at March 31, 2026, an increase of $21.6 million, or 6% from December 31, 2025, and $39.9 million, or 11% from March 31, 2025. The total cost of funds for the quarter ended March 31, 2026, was 1.15%, a decrease of 0.11% from the quarter ended December 31, 2025, and a decrease of 0.15% from the quarter ended March 31, 2025.
Total loans were $637.0 million at March 31, 2026, an increase of $14.0 million or 2% from December 31, 2025, and an increase of $106.2 million, or 20% from March 31, 2025. Unused commitments in the current quarter increased $23.8 million from December 31, 2025, with new line originations during the quarter.
At March 31, 2026, non-performing loans represented 0.08% of total assets, compared to 0.09% at December 31, 2025, and 0.18% at March 31, 2025. Credit quality remains strong and improved steadily throughout 2025 from the successful resolution of a previously non-performing loan.
Net interest margin (NIM) for the quarter ended March 31, 2026, was 4.47%, compared to 4.44% for the quarter ended December 31, 2025, and 4.19% for the quarter ended March 31, 2025.
Non-interest expenses for the quarter ended March 31, 2026, totaled $5.3 million, an increase of $219,000, or 4% from the quarter ended December 31, 2025, and an increase of $655,000, or 14% from the quarter ended March 31, 2025.
Pre-tax, pre-provision income for the quarter ended March 31, 2026, totaled $3.1 million, a decrease of $226,000, or 7% from the quarter ended December 31, 2025, and an increase of $1.2 million, or 65% from the quarter ended March 31, 2025.
Total shareholders ' equity was $85.1 million at March 31, 2026, an increase of $2.1 million, or 2% from December 31, 2025, and an increase of $8.4 million, or 11% from March 31, 2025.
Book value per share was $38.94 at March 31, 2026, an increase of $1.00, or 3% from December 31, 2025, and an increase of $3.59, or 10% from March 31, 2025.
The Bank remained well-capitalized, with all capital ratios exceeding regulatory requirements, including a Tier 1 Leverage Ratio of 11.27%, Tier 1 Risk-Based Capital and Common Equity Tier 1 Ratios of 15.59%, and a Total Risk-Based Capital Ratio of 16.84%.

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Non-GAAP Financial Measure

To supplement our financial statements, which are prepared and presented in accordance with GAAP, we use pre-tax, pre-provision income as a non-GAAP financial measure. Our non-GAAP financial measure does have limitations as analytical tools, and you should not consider pre-tax, pre-provision income in isolation or as a substitute for an analysis of our results under GAAP.

We believe these non-GAAP financial measures provide management and investors with additional information about the financial performance of our business and enable comparison of financial results between periods where certain items may vary independently of business performance. We believe pre-tax, pre-provision income is an important measure because it reflects the financial performance of our business operations. Pre-tax, pre-provision income is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax expense from net income.

About Bank of San Francisco

Bank of San Francisco is an independent commercial and private bank built on personal relationships. Founded and headquartered in San Francisco since 2005, the Bank serves individuals, families, businesses, and nonprofits who value direct access to experienced bankers and a single point of contact across every aspect of their financial lives.

With deep community roots and a broad reach, Bank of San Francisco delivers high-touch service and quick decisions, supporting clients wherever life and business take them. Growth is fueled by referrals and the long-term loyalty of clients, colleagues, and community partners. Learn more at www.bankbsf.com.

Forward-Looking Statements

This press release contains certain forward-looking statements that involve risks and uncertainties, including statements relating to new products and anticipated growth. Forward-looking statements are those that are not statements of historical fact and may be identifiable by use of the words "believe, " "expect, " "intend, " "anticipate, " "plan, " "estimate, " "project, " or similar expressions. These statements are based on current expectations, estimates and projections about Bank of San Francisco 's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties may affect the operations, performance, development, growth, capital needs and results of operations of Bank of San Francisco, and include, but are not limited to, local and national economic conditions; interest rate changes; inflation and monetary policy; changes in the financial performance and/or condition of our loan and deposit clients; changes in the levels of performing and nonperforming assets and charge-offs; timely implementation by Bank of San Francisco of new products and technology enhancements; the impact of competitive products, services and pricing; acts of war, terrorism or civil unrest; the soundness or failure of other financial institutions that may directly or indirectly affect the Bank; potential deposit withdrawals triggered by client concerns following the failures of or risks at other depository institutions; the effect of the COVID-19 pandemic and other infectious illness outbreaks that may arise in the future; natural disasters, such as earthquakes; clients ' requirements and preferences; federal, state and local legislation and regulatory developments; the ability to retain or increase market share, retain or grow client relationships and control expenses; changes in regulatory or generally accepted accounting principles and other similar matters. Readers are cautioned not to place undue reliance on forward-looking statements, which are subject to influence by the foregoing risk factors and unanticipated future events. Actual results, accordingly, may differ materially from management 's expectations. Bank of San Francisco undertakes no obligation to update such forward-looking statements except as required by law.

Bank of San Francisco
Balance Sheets (Unaudited)
($000, except share and per share amounts)

	For the Periods Ended															Year Over Year Change
Assets	3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025			$			%
Cash and due from banks	$	7,129		$	10,899		$	6,604		$	8,754		$	9,076		$	(1,947	)		-21	%
Interest bearing deposits in banks		84,997			60,827			74,188			78,541			69,116			15,881			23	%
Total cash and cash equivalents		92,126			71,726			80,792			87,295			78,192			13,934			18	%
Securities available-for-sale, at fair value		25,887			26,025			25,038			21,859			21,819			4,068			19	%
Loans, net of deferred costs/fees		637,010			623,030			581,443			550,910			530,817			106,193			20	%
Allowance for credit losses		(7,749	)		(7,659	)		(7,518	)		(7,258	)		(6,968	)		(781	)		11	%
Loans, net of allowance of credit losses		629,261			615,371			573,925			543,652			523,849			105,412			20	%
Premises and equipment, net		3,036			2,590			1,632			1,501			1,351			1,685			125	%
Accrued interest receivable & other assets		17,200			17,342			17,021			17,608			13,696			3,504			26	%
Total Assets	$	767,510		$	733,054		$	698,408		$	671,915		$	638,907		$	128,603			20	%

Liabilities
Non-interest bearing deposits	$	276,352		$	265,492		$	238,330		$	229,036		$	199,783		$	76,569		38	%
Interest bearing deposits		393,651			372,073			367,669			353,188			353,748			39,903		11	%
Total deposits		670,003			637,565			605,999			582,224			553,531			116,472		21	%
Accrued interest payable and other liabilities		12,389			12,432			11,795			11,171			8,634			3,755		43	%
Total Liabilities		682,392			649,997			617,794			593,395			562,165			120,227		21	%
Shareholders ' equity
Common stock		29,614			29,490			29,261			29,075			28,944			670		2	%
Retained earnings		55,534			53,521			51,309			49,475			47,841			7,693		16	%
Accumulated other comprehensive (loss) income		(30	)		46			44			(30	)		(43	)		13		-30	%
Total shareholders ' equity		85,118			83,057			80,614			78,520			76,742			8,376		11	%
Total Liabilities & Shareholders ' Equity	$	767,510		$	733,054		$	698,408		$	671,915		$	638,907		$	128,603		20	%
Book Value per Common Share	$	38.94		$	37.94		$	37.17		$	36.33		$	35.35		$	3.59		10	%
Total Common Shares Outstanding		2,185,966			2,188,985			2,168,841			2,161,024			2,170,866			15,100		1	%
Capital Ratios
Tier 1 Leverage ratio		11.27	%		11.16	%		11.54	%		11.83	%		11.41	%		-0.14	%	-1	%
Tier 1 RBC ratio		15.59	%		16.14	%		17.08	%		17.68	%		18.16	%		-2.57	%	-14	%
Common Equity Tier 1 RBC ratio		15.59	%		16.14	%		17.08	%		17.68	%		18.16	%		-2.57	%	-14	%
Total Risk-Based Capital (RBC) ratio		16.84	%		17.39	%		18.34	%		18.93	%		19.41	%		-2.57	%	-13	%
Other Ratios
Non-interest bearing to Total Deposits		41.25	%		41.64	%		39.33	%		39.34	%		36.09	%		5.16	%	14	%
Loan to Deposit ratio		95.08	%		97.72	%		95.95	%		94.62	%		95.90	%		-0.82	%	-1	%
Allowance for Credit Losses to Total Loans		1.22	%		1.23	%		1.29	%		1.32	%		1.31	%		-0.09	%	-7	%
ACL to Nonperforming Loans		1190.05	%		1099.23	%		868.68	%		642.31	%		593.21	%		596.84	%	101	%
Nonperforming Assets to Total Assets		0.08	%		0.09	%		0.12	%		0.17	%		0.18	%		-0.10	%	-56	%

Bank of San Francisco
Statement of Income (Unaudited)
($000, except share and per share amounts)

	Three Months Ended															Year Over Year Change
	3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025			$			%
Interest on loans, including fees	$	8,874		$	8,904		$	8,048		$	7,596		$	7,071		$	1,803			25	%
Interest on deposits in banks		751			968			1,021			928			677			74			11	%
Interest on investment securities		246			247			208			210			221			25			11	%
Other interest income		181			79			77			72			74			107			145	%
Total interest income		10,052			10,198			9,354			8,806			8,043			2,009			25	%
Deposits interest expense		1,858			2,054			1,936			1,868			1,719			139			8	%
Other interest expense		-			-			-			-			-			-			0	%
Total interest expense		1,858			2,054			1,936			1,868			1,719			139			8	%
Net interest income		8,194			8,144			7,418			6,938			6,324			1,870			30	%
Provision for credit losses		200			300			330			290			300			(100	)		-33	%
Net interest income after provision		7,994			7,844			7,088			6,648			6,024			1,970			33	%
Service charges on deposits		103			129			111			108			102			1			1	%
Other non-interest income		49			80			15			(5	)		61			(12	)		-20	%
Total non-interest income		152			209			126			103			163			(11	)		-7	%
Salaries and employee benefits expense		3,345			3,258			2,720			2,885			3,033			312			10	%
Occupancy		402			372			366			336			291			111			38	%
Information Technology and Equipment		391			342			340			324			315			76			24	%
Other operating expense		1,140			1,087			1,181			880			984			156			16	%
Total non-interest expense		5,278			5,059			4,607			4,425			4,623			655			14	%
Income before income taxes		2,868			2,994			2,607			2,326			1,564			1,304			83	%
Income tax expense		854			783			772			692			466			388			83	%
Net income	$	2,014		$	2,211		$	1,835		$	1,634		$	1,098		$	916			83	%
Basic Earnings per Share	$	0.95		$	1.05		$	0.87		$	0.78		$	0.53		$	0.42			79	%
Average Shares Outstanding		2,117,290			2,109,522			2,108,663			2,097,194			2,090,394			26,896			1	%
Diluted Earnings per Share	$	0.94		$	1.03		$	0.86		$	0.77		$	0.52		$	0.42			81	%
Average Shares Outstanding		2,132,083			2,136,558			2,134,102			2,124,402			2,130,962			1,121			0	%
Annualized Performance Ratios
Return on Average Assets		1.07	%		1.19	%		1.05	%		0.98	%		0.70	%		0.37	%		53	%
Return on Average Common Equity		9.58	%		10.81	%		9.22	%		8.32	%		5.78	%		3.80	%		66	%
Net Interest Margin		4.47	%		4.44	%		4.33	%		4.28	%		4.19	%		0.28	%		7	%
Cost of Funds		1.15	%		1.26	%		1.27	%		1.30	%		1.30	%		-0.15	%		-12	%
Efficiency Ratio		63.24	%		60.57	%		61.07	%		62.85	%		71.27	%		-8.03	%		-11	%
Reconciliation of GAAP to Non-GAAP Financial Measures
Net income	$	2,014		$	2,211		$	1,835		$	1,634		$	1,098		$	916			83	%
Provision for credit losses		200			300			330			290			300			(100	)		-33	%
Income tax expense		854			783			772			692			466			388			83	%
Pre-tax, pre-provision income	$	3,068		$	3,294		$	2,937		$	2,616		$	1,864		$	1,204			65	%