Answer Overview
The press release you shared about Beach Cities Commercial Bank (BCCB) does not contain any specific figures or commentary on the bank’s cost‑to‑income (C/I) ratio for the second quarter of 2025, nor does it provide historical C/I numbers for the bank. Because the information needed to make a direct comparison with peers or with the bank’s own past performance is missing, we can only outline the typical steps you would take to evaluate the ratio and describe the usual industry context.
Below is a structured approach you can use once the relevant data become available, along with general industry benchmarks that may help you interpret the results when you obtain the numbers.
1. What Is the Cost‑to‑Income Ratio?
- Definition:
[ \text{Cost‑to‑Income Ratio} = \frac{\text{Operating Expenses}}{\text{Net Operating Income (or Net Revenue)}} ] - Interpretation:
- A lower ratio indicates higher efficiency (the bank generates more income per dollar of expense).
- A higher ratio suggests lower efficiency and potentially higher pressure on profitability.
- A lower ratio indicates higher efficiency (the bank generates more income per dollar of expense).
2. How to Find BCCB’s C/I Ratio
Full Earnings Release
- The abbreviated excerpt you posted ends mid‑sentence. The complete earnings release (usually a PDF or HTML document on the company’s investor‑relations website) typically includes a “Key Financial Metrics” table that lists the C/I ratio.
Form 10‑Q / Quarterly Report
- For a U.S. public company (OTCQB: BCCB), the quarterly filing with the SEC will contain the detailed income statement and expense breakdown.
- The ratio can be calculated manually if not explicitly disclosed:
- Operating Expenses = Personnel costs, occupancy, technology, marketing, etc. (found in the “Operating Expenses” line item).
- Net Operating Income = Net interest income + Non‑interest income – Provision for credit losses (or use “Total Revenue” less “Interest expense”).
- Operating Expenses = Personnel costs, occupancy, technology, marketing, etc. (found in the “Operating Expenses” line item).
- For a U.S. public company (OTCQB: BCCB), the quarterly filing with the SEC will contain the detailed income statement and expense breakdown.
Investor Presentations / Earnings Call Transcript
- Management often discusses efficiency trends and may quote the C/I ratio directly, especially if it’s a point of focus.
3. Typical Benchmarks for Community/Regional Banks
| Bank Type | Typical Cost‑to‑Income Ratio |
|---|---|
| Large national banks | 40 % – 55 % |
| Mid‑size regional banks | 50 % – 65 % |
| Small community banks (assets < $5 bn) | 60 % – 75 % |
| New‑entry banks (first few years of operation) | Often 70 % + as they invest heavily in technology, staffing, and branch set‑up |
Sources for these ranges include Federal Reserve “Banking Industry Profile” reports and the FDIC’s “Quarterly Banking Profile” data.
4. How to Compare BCCB’s Ratio
| Comparison Dimension | What to Look For |
|---|---|
| Against Peers | Identify a peer group of similarly‑sized California community banks (e.g., Pacific Premier Bank, First Republic Bank’s regional subsidiaries, etc.). Compare each bank’s most recent C/I ratio. |
| Year‑over‑Year | Compare Q2 2025 vs. Q2 2024 (or vs. Q1 2025 if quarterly data are sparse). A declining ratio signals improving efficiency; an increasing ratio may indicate rising costs or slower revenue growth. |
| Quarter‑over‑Quarter | Because BCCB is a relatively new bank (opened June 2023), early quarters often show higher ratios that decline as the cost base stabilizes and revenue ramps up. |
| Strategic Drivers | Look for management commentary on: • Technology investments (may temporarily raise expenses). • Branch expansion (new locations increase occupancy and staffing costs). • Loan portfolio growth (higher interest income can improve the denominator). |
5. Possible Scenarios (Illustrative Only)
| Scenario | Implication for C/I Ratio |
|---|---|
| Scenario A – Ratio ≈ 78 % (higher than peers) | Likely reflects startup costs (branch build‑out, hiring, technology implementation). Management may be focusing on market penetration rather than immediate efficiency. |
| Scenario B – Ratio ≈ 62 % (in line with small‑bank peers) | Indicates the bank has moved past the most capital‑intensive launch phase and is beginning to achieve economies of scale. |
| Scenario C – Ratio ≈ 48 % (better than many midsize banks) | Could signal aggressive cost control or strong revenue growth (e.g., rapid loan book expansion). Might be a point of competitive advantage, but verify sustainability. |
These scenarios are for illustration only; the actual ratio must be taken from BCCB’s disclosed numbers.
6. Next Steps for You
- Retrieve the Full Q2 2025 Earnings Release
- Visit
www.beachcitiescb.com/investorsor the SEC’s EDGAR database (search for “BCCB 10‑Q 2025‑08‑05”).
- Visit
- Locate the “Cost‑to‑Income Ratio” in the “Key Financial Metrics” table or compute it using the income‑statement figures.
- Collect Peer Data
- Use the FDIC’s “BankFind” tool or S&P Global Market Intelligence to pull the latest C/I ratios for comparable California community banks.
- Use the FDIC’s “BankFind” tool or S&P Global Market Intelligence to pull the latest C/I ratios for comparable California community banks.
Perform the Comparison
- Create a simple table:
| Bank | Assets (US$bn) | Cost‑to‑Income Ratio (Q2 2025) |
|------|----------------|--------------------------------|
| BCCB | … | … |
| Peer 1 | … | … |
| Peer 2 | … | … |- Create a simple table:
Interpret using the benchmark ranges and the strategic context disclosed by BCCB’s management (e.g., “we expect the ratio to improve to ~65 % by year‑end as loan growth accelerates”).
Bottom Line
- The press release excerpt you provided does not include the cost‑to‑income ratio, so we cannot give a numeric comparison at this moment.
- To assess the ratio, obtain the full earnings release or the Q2 2025 Form 10‑Q, calculate or locate the disclosed figure, and then compare it to typical community‑bank benchmarks (≈ 60 % – 75 %) and to the specific peer set you select.
- Historical perspective for a bank that opened in mid‑2023: expect a higher ratio in the first two years, with a gradual decline as the cost base stabilizes and revenue streams mature.
If you can provide the full earnings release or the exact cost‑to‑income figure, I can immediately perform the comparative analysis and give you a precise answer.