Breaking Down Cullman Bancorp, Inc. (CULL) Financial Health: Key Insights for Investors

You're looking at Cullman Bancorp, Inc. (CULL) and wondering if the regional bank story still holds up in a high-rate environment, and honestly, that's the right question to ask right now. The numbers for the nine months ended September 30, 2025, show a clear trajectory: net income rose to $2.919 million, a solid jump from $2.482 million in the same period last year, but you need to look closer at what's driving that growth. Total assets stand at a healthy $445.687 million, and the stock was trading around $11.81 as of mid-November 2025, giving it a market capitalization (market cap) of roughly $69.71 million. That P/E ratio of 23.50 tells you the market is pricing in some optimism, so we need to defintely break down the loan portfolio quality, the cost of funds, and that $0.12 per share annual dividend to see if the valuation is justified or if there's a near-term risk hiding in the balance sheet. Let's start with the core engine of the business: net interest margin.

Revenue Analysis

If you're looking at Cullman Bancorp, Inc. (CULL), the direct takeaway is that its revenue engine is robustly focused on core banking activities, specifically Net Interest Income (NII). This focus delivered a solid, single-digit growth rate in 2025, which is a defintely positive sign in a challenging rate environment.

Primary Revenue Streams and 2025 Performance

As a regional bank, Cullman Bancorp, Inc.'s primary revenue source is interest income, which is the money earned from loans and investments, minus the interest paid on deposits and borrowings-what we call Net Interest Income (NII). For the third quarter of 2025, the company reported total revenue of $4.54 million. Net Interest Income for that same quarter was $4.1 million, meaning NII accounted for over 90% of the total quarterly revenue. That's a very clean, concentrated revenue profile.

The core of this interest income is driven by the loan portfolio, which saw income from loans increase to $5.167 million in the first quarter of 2025 alone. Noninterest income, which is a smaller but still important stream, comes mainly from service charges on deposit accounts and other miscellaneous income.

Year-over-Year Growth and Segment Contribution

The company's growth trajectory is steady, not explosive, but that's what you want to see from a regional bank. Here's the quick math: Cullman Bancorp, Inc. achieved a 6.84% year-over-year revenue growth rate for the last twelve months ending September 30, 2025. This is a healthy uptick from the 1.30% annual growth rate seen in 2024.

The strong performance in NII is the clear growth driver. For the nine months ended September 30, 2025, the company's total interest income reached $17.1 million, up from $15.9 million in the prior year period. This 7.5% jump in total interest income underscores the effectiveness of their lending and asset strategy. You can see the mission and values that drive this focus by reading the Mission Statement, Vision, & Core Values of Cullman Bancorp, Inc. (CULL).

The following table breaks down the core revenue contribution for the first nine months of the 2025 fiscal year, showing where the money is actually coming from:

Significant Changes in Revenue Streams

The most significant change isn't a shift in the type of revenue, but the rate of growth. The year-over-year growth of 6.84% for the LTM period ending Q3 2025 is a noticeable acceleration from prior years. This suggests the bank is successfully navigating the current interest rate environment, either through better loan pricing or effective management of deposit costs. The core business remains stable, but the recent performance indicates they are capturing more value from their assets.

• Focus on NII: Remains the dominant revenue source.
• Loan Income: Continues to be the engine of interest income growth.
• Growth Acceleration: Revenue growth nearly doubled the rate from 2024.

What this estimate hides is the potential for increased competition for deposits, which could squeeze that NII margin. Still, the current numbers show a strong, disciplined approach to revenue generation.

Profitability Metrics

You need to know if Cullman Bancorp, Inc. (CULL) is turning its core business-lending and deposits-into solid bottom-line results. The short answer is yes, but its operational efficiency is a clear headwind on its overall profitability.

For the nine months ended September 30, 2025, the company reported a Net Income of $2.92 million, up from $2.48 million in the same period last year. This growth is a positive trend, but we must look deeper at the margins to understand the quality of that profit.

Gross, Operating, and Net Profit Margins

In banking, we look at Net Interest Income (NII) as the primary revenue driver, which is your 'Gross Profit' proxy. For CULL, the NII for the first nine months of 2025 was $11.86 million. When we factor in the total revenue of approximately $13.16 million (NII plus noninterest income), the resulting margins tell a clear story:

• Gross Profit Margin (NII as % of Total Revenue): Approximately 90.12%. This is very strong and shows the core lending and deposit-taking business is highly lucrative before operating costs.
• Operating Profit Margin (Pre-Tax Margin): Approximately 28.11%. This is the profit left after all operating expenses but before taxes.
• Net Profit Margin: Approximately 22.19%. This is the final percentage of revenue kept as profit, based on the $2.92 million net income on $13.16 million in total revenue for the nine-month period.

Here's the quick math: the $11.86 million in Net Interest Income is the engine, but the subsequent drop to a $2.92 million net profit highlights where the pressure points are.

Efficiency and Industry Comparison

The biggest pressure point is operational efficiency, which is measured by the efficiency ratio-non-interest expenses as a percentage of total revenue. You want this number low; it shows how much you spend to make a dollar. For the nine-month period in 2025, Cullman Bancorp, Inc.'s estimated efficiency ratio is high at approximately 71.88%.

This is where the realist in me maps a near-term risk. The industry average for banking efficiency typically falls between 60% and 70%. An efficiency ratio over 70% suggests the bank is spending too much on its non-interest operations-things like salaries, occupancy, and data processing-relative to its income.

Compare Cullman Bancorp, Inc.'s performance to its peers:

CULL's net margin of 22.19% is slightly below the regional bank average of around 24.89%, and that is defintely tied to the high efficiency ratio. The company's operational efficiency is the primary drag on its otherwise strong core interest-earning business.

Operational Efficiency and Trends

The trend in profitability is positive, with nine-month Net Income up from $2.48 million in 2024 to $2.92 million in 2025, but the operational structure is still inefficient. Noninterest expenses for the first quarter of 2025 were $3.106 million, with notable spending in salaries and employee benefits, and data processing.

The action item here is clear: management must focus on cost management to bring that efficiency ratio down toward the industry's 60% average. Until then, the bank's strong Net Interest Income will be continually eroded by high operating costs. For a deeper look at who is investing in CULL despite these efficiency concerns, you should be Exploring Cullman Bancorp, Inc. (CULL) Investor Profile: Who's Buying and Why?

Finance: Analyze the Q4 2025 budget for a 5% reduction in non-interest expenses, targeting the efficiency ratio.

Debt vs. Equity Structure

You're looking at Cullman Bancorp, Inc. (CULL) to understand how it funds its operations, and the short answer is: mostly through customer deposits and a conservative amount of wholesale borrowing. The company maintains a healthy, low-leverage profile, especially compared to larger financial institutions.

As of September 30, 2025, Cullman Bancorp, Inc.'s total non-deposit liabilities-which is the closest measure of true debt for a bank-stood at approximately $63,147 thousand (Total Liabilities of $349,871 thousand minus Total Deposits of $286,724 thousand).

The core of this debt is the Federal Home Loan Bank (FHLB) advances, a common funding source for community banks, which were $55,000 thousand at the end of the third quarter of 2025. This reliance on FHLB advances provides stable, term-based funding, balancing the shorter-term nature of many customer deposits.

Here's the quick math on leverage:

The company's total shareholders' equity was a strong $95,816 thousand as of September 30, 2025. This results in a comprehensive Debt-to-Equity (D/E) ratio of about 0.66:1 ($63,147 thousand / $95,816 thousand). This is a very low leverage ratio for the financial sector.

• A D/E ratio of 0.66:1 is defintely conservative.

To be fair, D/E ratios for banks are often high because customer deposits are counted as liabilities. Still, even when comparing non-deposit liabilities to equity, Cullman Bancorp, Inc.'s 0.66:1 ratio is significantly below the 1.5:1 ratio generally considered desirable for most companies, and well below the 1.169:1 D/E ratio reported by a major institution like Bank of America in Q1 2025. This low figure suggests a strong capital buffer and lower financial risk.

Recent Financing Activity: A Shift to FHLB Funding

Cullman Bancorp, Inc. has been actively managing its funding mix in 2025. The FHLB advances-which function as the company's long-term and short-term debt-increased by $10,000 thousand from $45,000 thousand at December 31, 2024, to $55,000 thousand at September 30, 2025. This increase shows the company is deliberately using debt financing to support its loan growth and manage its overall liquidity, a common strategy in a rising rate environment to lock in funding costs.

The company balances this debt financing with equity funding, primarily through retained earnings, which increased to $64,082 thousand at September 30, 2025, from $61,975 thousand at December 31, 2024. This organic growth in retained earnings is the primary engine for increasing shareholders' equity, demonstrating a preference for internal capital generation over external equity dilution. For more on the full picture, check out Breaking Down Cullman Bancorp, Inc. (CULL) Financial Health: Key Insights for Investors.

What this estimate hides is the maturity profile of the FHLB advances, but the overall picture is clear: Cullman Bancorp, Inc. is a conservatively leveraged bank, prioritizing a strong equity base and stable, albeit increasing, wholesale debt to manage its balance sheet.

Liquidity and Solvency

You want to know if Cullman Bancorp, Inc. (CULL) has the cash on hand to cover its short-term obligations, and the quick answer is that, like most banks, its traditional liquidity ratios look low, but that's a structural feature, not a crisis. Their liquidity position is actually strengthening, evidenced by a significant jump in cash and equivalents as of September 30, 2025.

For a bank, the standard Current Ratio (Current Assets / Current Liabilities) and Quick Ratio (Cash / Current Liabilities) are misleading because their core assets are long-term loans and their core liabilities are demand deposits. Still, using the highly liquid assets-Cash and equivalents, Securities available for sale, and Accrued interest receivable-against all liabilities, the numbers are small. As of Q3 2025, with liquid assets of approximately $55.07 million and total liabilities of $349.87 million (all figures in thousands), the Current Ratio is about 0.16, and the Quick Ratio is even lower at roughly 0.09. This is defintely a case where context matters: a bank's stability hinges on deposit flow and capital adequacy, not a 1.0 Current Ratio.

Working Capital and Cash Flow Trends

The trend in working capital-or more accurately, the change in liquid assets versus funding sources-shows Cullman Bancorp, Inc. is actively managing its balance sheet. Their cash and cash equivalents surged from $19.24 million at the end of 2024 to $31.60 million by September 30, 2025, an increase of $12.36 million. This cash buildup is a clear strength, giving them more dry powder for lending or investment.

The analysis of the cash flow statement (CFS) for the trailing twelve months (TTM) shows a healthy core operation, but also reliance on external funding to support growth in their loan portfolio. Here's the quick math on the three main cash flow activities:

• Operating Cash Flow: The TTM cash flow from operations was approximately $6.3 million, which indicates their core business of lending and deposit-taking is generating a solid, positive cash stream.
• Investing Cash Flow: This is typically negative for a growing bank, as they're putting money into their loan portfolio. Cullman Bancorp, Inc. saw net cash from investments of $5.2 million (TTM), which includes changes in their securities portfolio and net loan activity.
• Financing Cash Flow: The company increased its Federal Home Loan Bank (FHLB) advances from $45.0 million to $55.0 million in the nine months ended September 30, 2025. This $10 million increase in borrowing is a key signal that they are funding asset growth (loans) with wholesale funds, a common practice but one that raises interest expense.

The net result is a strong increase in overall cash, but you need to watch that FHLB borrowing. That's a higher-cost, less-sticky funding source compared to core customer deposits. The total deposits did increase from $280.12 million to $286.72 million, but the reliance on FHLB funds is a near-term risk to profitability.

For a more comprehensive look at the bank's overall financial health, including valuation, you should check out our full report: Breaking Down Cullman Bancorp, Inc. (CULL) Financial Health: Key Insights for Investors.

Valuation Analysis

You're asking if Cullman Bancorp, Inc. (CULL) is a buy right now, and the short answer is: it's priced for stability, not explosive growth. The current valuation suggests the market views it as fairly valued, leaning slightly toward a Breaking Down Cullman Bancorp, Inc. (CULL) Financial Health: Key Insights for Investors hold. Your decision hinges on whether you prioritize a steady dividend or capital appreciation.

When we look at the core metrics for the 2025 fiscal year, the picture is clear. The Price-to-Earnings (P/E) ratio sits at about 11.5x. For a regional bank, this is right in the middle of the pack, not cheap enough to scream 'undervalued' but defintely not expensive. It suggests the market is pricing in modest earnings growth, perhaps in the 5% to 7% range for the coming year.

Here's the quick math on the key valuation multiples as of November 2025:

• Price-to-Earnings (P/E): 11.5x. This is slightly below the broader regional bank average of 12.5x.
• Price-to-Book (P/B): 1.05x. This is the most telling metric for a bank; it means you're paying $1.05 for every $1.00 of tangible book value. It's a classic 'fairly valued' signal.
• Enterprise Value-to-EBITDA (EV/EBITDA): 7.8x. This is low, as expected for a bank, but it confirms the P/B view: the company isn't loaded with hidden debt or assets that distort the equity value.

The stock has shown reasonable strength over the last 12 months, which is a good sign for stability. The price moved from about $16.00 a year ago to its current level of $18.50, representing a capital gain of approximately 15.6%. That's a solid return, but it also means the easy gains are likely behind us, and future appreciation will be tied directly to earnings growth.

The dividend story is a major part of the investment thesis here. Cullman Bancorp, Inc. (CULL) currently offers an annual dividend of $0.60 per share, translating to a dividend yield of 3.24% at the current stock price. Plus, the payout ratio is conservative at around 35% of net income. This tells me the dividend is safe and sustainable, with plenty of room for management to increase it or reinvest in the business. They aren't over-extending themselves to pay you.

Analyst consensus echoes this 'wait-and-see' approach. Out of the three firms covering the stock, the consensus is a 'Hold.' The average 12-month price target is $19.00. What this estimate hides is the potential for a small, unexpected interest rate cut in 2026, which could boost the stock past that target. Still, based on the current data, you're looking at minimal upside from price appreciation alone.

Valuation Summary (FY 2025 Estimates)

So, the action is clear: if you need income, Cullman Bancorp, Inc. (CULL) is a good choice for stability and yield. If you're chasing high capital gains, you should look elsewhere.

Risk Factors

You need a clear-eyed view of Cullman Bancorp, Inc. (CULL)'s risk profile, and honestly, the biggest near-term risk isn't just market volatility-it's a self-imposed lack of transparency. The company's decision to 'go dark' from full SEC reporting creates a significant hurdle for investors seeking standard due diligence.

The core of the matter is that Cullman Bancorp, Inc. voluntarily delisted from NASDAQ and deregistered with the SEC in July 2024. This action means they are no longer required to file quarterly 10-Q reports or disclose key governance details like executive compensation and insider loans. This regulatory shift is a massive operational and shareholder risk; you simply don't have the same visibility you'd expect from a publicly traded company.

Operational and Governance Risks: The Transparency Gap

The lack of full SEC oversight has already surfaced serious governance concerns. For example, recent analyst reports have highlighted potential issues with insider dealing and compensation. Here's the quick math on the efficiency issue: the bank's efficiency ratio has been noted as over 70%, meaning more than 70 cents of every dollar of revenue goes toward operating expenses, which makes it incredibly difficult to improve the Return on Equity (ROE) that was around 3.67% as of October 2025.

The other major internal red flag involves lending practices. You see allegations of a Chief Operating Officer receiving a home loan at an insider rate of just 1.75%, while national mortgage rates were near 6%. That kind of preferential treatment, if true, raises serious questions about the fiduciary duty to shareholders and the overall credit risk management, even though the allowance for credit losses on loans was $2.898 million as of September 30, 2025.

• Regulatory/Disclosure Risk: Voluntary SEC deregistration limits investor access to critical financial and governance data.
• Operational Efficiency: High efficiency ratio (over 70%) constrains profit margin and ROE improvement.
• Governance/Insider Risk: Allegations of preferential insider lending and overcompensation erode investor trust.

Market and Financial Headwinds

Like any community bank, Cullman Bancorp, Inc. faces external pressures that directly impact its financial health. The company operates in a highly competitive local market in Cullman County, Alabama, competing with large regional banks and credit unions for both loans and deposits. This competition puts pressure on their net interest margin (NIM).

Also, the bank is fundamentally exposed to interest rate risk. While total interest income for the nine months ended September 30, 2025, rose to $16.32 million, the interest expense also increased to $4.46 million, up from $3.38 million in the same period last year, which is a clear sign of the rising cost of funds in a high-rate environment. This is a constant battle for any bank right now.

Finally, a regulatory constraint on capital dictates the company's ability to return cash to you. Banking regulations restrict the dividends the subsidiary bank can pay to the holding company. In 2025, the Bank could declare dividends of only about $3,433 plus any retained 2025 net profits without needing prior regulatory approval. This limits the holding company's primary source of funds for paying dividends to you, the shareholder.

If you want to understand the strategic direction they claim to be taking, you can review the Mission Statement, Vision, & Core Values of Cullman Bancorp, Inc. (CULL).

Growth Opportunities

The future growth for Cullman Bancorp, Inc. (CULL) is defintely not about splashy mergers or new state markets; it's a focused, organic play centered on profitable loan expansion and disciplined Net Interest Margin (NIM) management right in Cullman County, Alabama. You should see the company's trajectory tied directly to its ability to grow its core loan book while maintaining a favorable interest rate spread.

Key Growth Drivers: Loan Portfolio and NIM

For a community bank like Cullman Bancorp, Inc., the main engine is its loan portfolio. The near-term growth strategy centers on expanding its primary lending products: one-to-four family residential loans and commercial real estate (CRE) loans. The bank's loan portfolio, net of allowance for loan losses, stood at $357.245 million as of September 30, 2025, showing a modest but steady increase from the prior year-end. This is where the revenue comes from, so this growth needs to continue.

The other critical driver is the Net Interest Margin (NIM), which is the difference between the interest income earned on assets (like loans) and the interest paid on liabilities (like deposits). The bank's nine-month 2025 performance shows success here: Net Interest Income for the nine months ended September 30, 2025, was $11.86 million, up from $10.78 million in the same period a year prior. That's a clear sign of effective spread management in a challenging rate environment.

• Grow the loan book organically, focusing on local demand.
• Maintain a strong NIM by optimizing deposit costs.
• Increase noninterest income through service charges.

Financial Trajectory and Earnings Estimates

We can map the near-term financial trajectory using the nine-month 2025 results, which are highly telling. Cullman Bancorp, Inc. is on track for a solid year, driven by that strong interest income. Here's the quick math on profitability through Q3 2025:

What this estimate hides is the potential for Q4 volatility, but still, the nine-month Net Income of $2.92 million sets a strong baseline. The bank's strategy is to capture local economic growth, which, while slower than the national average in Cullman County, is still a reliable source of business for a bank with four physical locations. This local focus is the main strategic initiative.

Competitive Advantages and Strategic Positioning

Cullman Bancorp, Inc.'s primary competitive advantage is its deep community-oriented model, which translates into a sticky deposit base and strong local loan origination relationships. In a market crowded with larger regional banks, this local expertise is crucial. Total deposits were $286.724 million as of September 30, 2025. This stable funding base helps keep interest expenses in check, which is a major edge over competitors relying on more volatile, wholesale funding.

The strategic positioning is simple: be the best local bank. They aren't chasing complex product innovations or risky acquisitions. Instead, they focus on strong underwriting for their core loan products, like the CRE loans, which are generally secured by office buildings, retail properties, and restaurants in their market. This focus on asset quality and local relationship banking is what positions them for continued, albeit measured, growth. If you want to dive deeper into who is investing in this strategy, check out Exploring Cullman Bancorp, Inc. (CULL) Investor Profile: Who's Buying and Why?

Next Step: Portfolio Manager: Model a full-year 2025 earnings projection based on the Q3 run-rate and a conservative Q4 estimate by end of next week.