Cullman Bancorp, Inc. (CULL): Business Model Canvas [Dec-2025 Updated]

You're looking for the nuts and bolts of how Cullman Bancorp, Inc. actually makes money, and honestly, for a community bank, the structure is defintely straightforward, but the 2025 numbers really tell the story. With $445.7 million in total assets as of September 30, 2025, and a loan book sitting at $357.2 million, their value proposition is clearly rooted in local, relationship-driven lending across their 5 Alabama branches. We've mapped out every key partnership, resource, and revenue stream-from the $15.967 million in loan interest earned over nine months to their cost of funding via deposits and Federal Home Loan Bank advances-so you can see exactly where the risk and reward lie in this operation. Dive into the full Business Model Canvas below to see the precise mechanics behind this local financial engine.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Key Partnerships

The ability of Cullman Bancorp, Inc. to fund its lending activities relies on several critical external relationships for capital, technology, and industry representation.

The relationship with the Federal Home Loan Bank (FHLB) is a primary source of wholesale funding. As of September 30, 2025, Cullman Bancorp, Inc. had outstanding advances from the FHLB totaling $55.0 million, reported in thousands as $55,000 on the consolidated balance sheet.

Cullman Bancorp, Inc. uses technology partners to maintain its operational efficiency and service delivery channels.

• Core banking software providers for essential infrastructure, supporting deposit and loan processing.
• Digital banking platform providers for online and mobile banking capabilities.

The community focus of Cullman Savings Bank necessitates strong local ties for business generation.

• Local real estate and lending professionals for referral networks supporting mortgage and commercial loan origination.

Industry representation and advocacy are secured through national associations.

• Independent Community Bankers of America (ICBA) for industry advocacy and regulatory insight.

The company's operations are supported by these external entities to maintain its regional banking model.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Key Activities

The Key Activities for Cullman Bancorp, Inc. center on core community banking functions, managing assets and liabilities prudently, and adhering strictly to financial regulations. These actions are imperative for the institution to deliver its value proposition of local, personalized financial services.

Originate and service a diversified loan portfolio

Cullman Bancorp, Inc. focuses on the origination and servicing of loans secured by collateral such as commercial and residential real estate, multi-family mortgages, construction, land, home equity, commercial, and consumer assets. The primary activity is maintaining and growing this asset base, which as of September 30, 2025, is reported at a net value of $357.2 million.

The principal lending activity involves underwriting loans pursuant to established policies, including fixed-rate and adjustable-rate instruments. For the third quarter ended September 30, 2025, the company reported net interest income of $4.1 million, directly resulting from the management of this loan portfolio and the deposit base.

Attract and manage retail deposits (checking, savings, CDs) from the local market

A critical activity is the continuous attraction and management of local retail deposits, which serve as the primary funding source for lending operations. Cullman Bancorp, Inc. offers a variety of deposit products to its customer segments in the Cullman County area. As of June 30, 2025, the total deposit base was $289,293 thousand.

The composition of these total deposits is detailed below:

The deposit products managed include personal checking accounts, savings accounts (like kids club and Christmas club offerings), certificates of deposit (CDs), and individual retirement accounts (IRAs).

Manage interest rate risk and liquidity through investment in securities

To manage the balance sheet, Cullman Bancorp, Inc. actively manages interest rate risk and maintains necessary liquidity by investing in securities. This activity balances the yield generated from the loan portfolio against the cost of funding from deposits and borrowings, such as Federal Home Loan Bank advances. As of June 30, 2025, the investment in securities available for sale stood at $23,063 thousand.

Key liquidity and funding management metrics as of June 30, 2025, include:

• Securities available for sale: $23,063 thousand.
• Federal Home Loan Bank advances: $55,000 thousand.
• Total Assets: $447,538 thousand.
• Total Shareholders' Equity: $95,762 thousand.

This management function ensures the bank can meet withdrawal demands while optimizing the spread between earning assets and interest-bearing liabilities. It's a constant balancing act.

Maintain regulatory compliance with FDIC and OCC standards

Operating as a savings and loan holding company, a non-negotiable key activity is maintaining strict adherence to the rules and regulations set forth by governing bodies. This involves ongoing compliance programs and internal controls to satisfy examiners.

The primary regulatory oversight activities include:

• Compliance with FDIC (Federal Deposit Insurance Corporation) standards for deposit insurance and safety and soundness.
• Compliance with OCC (Office of the Comptroller of the Currency) standards, though as a savings and loan holding company, Cullman Bancorp, Inc. is also subject to examination by the Federal Reserve Board.
• Filing periodic reports with the Securities and Exchange Commission (SEC), even after voluntarily delisting its common stock from NASDAQ and moving to the OTCQX Market.

You need to ensure the compliance team has the latest internal audit reports ready for the next scheduled review by Friday.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Key Resources

You're looking at the core assets that back the operations of Cullman Bancorp, Inc. These aren't just line items; they are the tangible and human capital that allow Cullman Savings Bank to serve its community.

The financial foundation is solid, anchored by significant assets managed locally. Here's a quick look at the scale of the operation as of the third quarter of 2025.

The physical footprint is deliberately concentrated to maintain that community focus. Cullman Bancorp, Inc. relies on its local presence to drive business.

• Local branch network consisting of 5 physical locations in Cullman County, Alabama.
• Executive offices located at 316 Second Avenue S.W., Cullman, Alabama 35055.

The human element-the experienced local management team-is crucial, as their deep community ties directly influence lending decisions and deposit relationships. This local knowledge is an intangible asset that supports the loan portfolio, which is substantially secured by collateral in the immediate market area.

Operationally, the bank depends on its technology stack. These systems must support both the traditional branch functions and the growing need for digital access. The core banking technology systems enable the processing of:

• Deposit products: checking, savings, and term certificate accounts.
• Lending products: residential mortgage, commercial, and installment loans.

The management team's stability is reflected in the fact that the company is a wholly owned subsidiary of Cullman Bancorp, Inc., which itself was formed in July 2021 to be the holding company for Cullman Savings Bank, founded in 1887. Finance: draft 13-week cash view by Friday.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Value Propositions

You're looking at how Cullman Bancorp, Inc. delivers value to its customers in Cullman County, Alabama, and beyond. Honestly, for a community bank, the value proposition centers on being local and accessible, which is something you can't get from the big national players.

Community-focused banking with local, timely decision-making

The core value here is that decisions are made right where the customers live and work. Cullman Savings Bank operates its four full-service locations entirely within Cullman County, Alabama. This local focus means relationship banking drives lending, which is a key differentiator. To give you a sense of scale, as of June 30, 2025, the total assets stood at $447,538 thousand. This local footprint supports their ability to make timely credit decisions based on local knowledge.

Full suite of deposit products for individuals and small businesses

Cullman Bancorp, Inc. ensures local individuals and small businesses have the basic tools they need to manage their money. They offer a variety of deposit accounts, which is the foundation of their funding. As of June 30, 2025, total deposits reached $289,293 thousand.

Here's a quick look at how those deposits break down:

• Interest bearing Deposits: $277,652 thousand
• Non-interest bearing Deposits: $11,641 thousand

Also, the bank generates non-interest income from these services, with Service charges on deposit accounts totaling $841 thousand for the Q3 YTD 2025 period.

Personalized service and relationship-based lending for complex needs

When a standard loan package won't cut it, you rely on the bank's underwriters knowing your business or property. This personalized approach is what supports their lending book. The total net loans on the books as of June 30, 2025, amounted to $364,459 thousand. This lending activity is what drives the bulk of their interest income.

Diverse lending options: residential, commercial real estate, and consumer loans

Cullman Savings Bank invests the deposits it gathers into a mix of secured lending products tailored to the local economy. Their primary lending products include residential mortgage, commercial, and installment loans. This diversification helps manage risk across different economic cycles. While the most recent detailed breakdown is from 2024, it shows the emphasis on property-backed lending, which is typical for a community savings bank holding company.

Here is a snapshot of the balance sheet as of the latest available date, June 30, 2025, showing the scale of their operations:

The lending portfolio is secured by collateral including business assets, consumer assets, and commercial and residential real estate.

Finance: draft 13-week cash view by Friday.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Customer Relationships

You're running a community bank in Cullman County, Alabama, so your customer relationships are the absolute core of how you get deposits and make loans. This isn't about high-volume, anonymous transactions; it's about knowing the local business owners and homeowners by name.

The highly personalized, relationship-driven service model centers around the four full-service locations Cullman Savings Bank operates within Cullman County. The bank explicitly states it relies upon personalized customer service and long-standing relationships with customers to attract and retain local deposits. This local focus means the service delivery is inherently relationship-based, contrasting with larger regional or national competitors.

For lending, the expectation is that you have dedicated loan officers handling commercial and residential requests. While the exact number of dedicated officers isn't public, the structure supports this: Cullman Savings Bank seeks to obtain deposits directly from its commercial loan customers. This intertwining of deposit gathering and lending is a hallmark of a relationship-driven model, where the loan officer serves as the primary relationship manager.

Automated self-service is present, but it supports, rather than replaces, the core relationship. Nationally, over 83% of U.S. adults used digital banking services as of 2025, setting the baseline expectation for convenience. Cullman Bancorp, Inc. must meet this standard through its digital banking and mobile app offerings, even as its primary value proposition remains face-to-face service at its local branches.

Community involvement builds the long-term trust that underpins these relationships. The entire operation is concentrated in Cullman County, meaning every community initiative directly impacts the customer base and reinforces the bank's local image, which is a key factor in attracting funds.

Here are the key operational and financial figures that support the scale of these customer relationships as of mid-2025:

The bank's ability to maintain this service level is tied to its capital structure; for instance, regulators noted that during 2025, the Bank could, without prior approval, declare dividends of approximately $3,433 thousand plus any 2025 net profits retained to the dividend declaration date.

You're focused on maintaining high-touch service within a defined geographic area, using your four branches as the physical anchor for your relationship strategy. Finance: draft the Q3 2025 customer retention rate analysis by next Tuesday.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Channels

You're looking at how Cullman Bancorp, Inc. gets its products-deposits and loans-to its customers as of late 2025. It's a mix of the traditional, face-to-face banking you expect from a community institution, blended with the digital tools customers now demand.

The physical footprint remains central to their community presence. As of the second quarter of 2025, Cullman Savings Bank, the primary subsidiary, operated 5 offices. This physical network is where relationship banking happens, especially for complex transactions or for customers who prefer in-person service.

Digital channels are definitely where the convenience factor lives. Cullman Bancorp, Inc. supports 24/7 account access through its online and mobile banking platforms. While the exact number of active digital users isn't public in the latest filings, the bank's overall balance sheet shows total assets reaching $447,538 thousand as of June 30, 2025, indicating that the digital infrastructure is supporting a substantial asset base.

For lending, direct origination staff operating from the main office at 316 Second Avenue, S.W., Cullman, Alabama, handle the primary loan flow. This centralized approach helps maintain underwriting consistency for their core products, which include one- to four-family residential mortgage loans and commercial real estate loans. The Net Loans & Leases portfolio stood at $362,147 thousand as of June 30, 2025.

Beyond the main digital and branch interfaces, the bank uses supporting infrastructure to complete the service picture:

• ATMs for cash access across the service area.
• Telephone banking services for routine account inquiries and transactions.
• Direct mailings and in-office materials for product promotion.

The bank's strategy seems focused on leveraging its deep local roots, supported by technology that keeps pace with modern expectations. If onboarding for new digital services takes longer than expected, churn risk rises defintely.

Finance: draft 13-week cash view by Friday.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Customer Segments

You're looking at the core groups Cullman Bancorp, Inc. serves, which are deeply rooted in the local economy of Cullman County, Alabama. Honestly, for a regional bank like Cullman Bancorp, Inc., the customer segments aren't abstract; they are your neighbors and local businesses.

Individuals and Families in Cullman County, Alabama, Seeking Residential Mortgages

This group represents the backbone of the lending side. Cullman Bancorp, Inc. focuses on originating one- to four-family residential mortgage loans, often secured by owner-occupied properties in their market area. They originate these loans with loan-to-value ratios up to $\mathbf{89.99\%}$ for owner-occupied homes. The total net loan portfolio, which includes these residential mortgages, stood at $\mathbf{\$364,459}$ thousand as of June 30, 2025.

Key characteristics of this segment include:

• Origination of long-term permanent loans.
• Focus on owner-occupied one- to four-family residences.
• Loan-to-value ratios generally up to $\mathbf{89.99\%}$.

Small to Medium-Sized Businesses Needing Commercial Real Estate and C&I Loans

Cullman Bancorp, Inc. actively seeks to grow its commercial real estate lending, which finances purchases, refinancings, and improvements for properties like office buildings, retail, and restaurants within their primary market. Commercial real estate loans are secured by first liens on the property. The bank also provides Commercial and Industrial (C&I) loans. These business-focused loans, along with residential, form the primary investment for the deposits they gather.

Here's a look at the scale of their lending and deposit base as of mid-2025:

Local Retail Customers Requiring Checking, Savings, and CD Accounts

This segment provides the essential funding base. Cullman Savings Bank operates four full-service locations in Cullman County, Alabama, serving the general public for their deposit needs. As of June 30, 2025, total deposits reached $\mathbf{\$289,293}$ thousand. You can see how that funding is structured right here:

• Total Deposits as of June 30, 2025: $\mathbf{\$289,293}$ thousand.
• Interest Bearing Deposits: $\mathbf{\$277,652}$ thousand.
• Non-Interest Bearing Deposits: $\mathbf{\$11,641}$ thousand.

The bank also uses Federal Home Loan Bank advances, which stood at $\mathbf{\$55,000}$ thousand on June 30, 2025, to supplement these local deposits for funding operations.

Investors in the Public Stock (CULL) Seeking Dividends and Equity Returns

This segment consists of shareholders who own Cullman Bancorp, Inc. common stock, traded on NASDAQ under the symbol CULL. As of September 30, 2025, the market capitalization was $\mathbf{\$70.6M}$ based on $\mathbf{5.98M}$ shares outstanding, with a stock price of $\mathbf{\$11.50}$. The ownership structure shows a heavy reliance on the general public for equity support.

Here's the ownership breakdown from the latest available data:

• General Public ownership: $\mathbf{92.1\%}$ ($\mathbf{5,237,336}$ shares).
• Individual Insiders ownership: $\mathbf{7.93\%}$ ($\mathbf{451,384}$ shares).

Key insiders hold significant stakes; for instance, as of March 24, 2025, CEO John Riley beneficially owned $\mathbf{1,057,253}$ shares, representing $\mathbf{15.9\%}$ of the outstanding shares. Finance: draft 13-week cash view by Friday.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Cost Structure

You're looking at the core expenses Cullman Bancorp, Inc. has to cover just to keep the lights on and the money moving. For a community bank like Cullman Bancorp, Inc., the cost structure is heavily weighted toward funding costs and operational overhead across its physical footprint.

The most significant cost driver, as with any depository institution, is the cost of funds. This involves the interest paid out to depositors and the cost of borrowing from the Federal Home Loan Bank (FHLB) system. You need to keep a close eye on the balance sheet impact here, as the prompt indicates a specific level of external funding.

Here's a quick look at the key cost components we can quantify based on the latest available data structure:

Beyond the direct cost of money, the day-to-day running of the bank involves substantial fixed and semi-variable costs. These are the expenses tied directly to maintaining the physical presence and the human capital required to serve the Cullman County market.

The personnel costs are defintely a major component of the noninterest expense base. You're paying for the folks who manage the books, process the transactions, and, critically, originate the loans that drive the bank's primary revenue. This includes:

• Significant personnel and compensation costs for branch staff.
• Significant personnel and compensation costs for loan officers.

Then you have the costs associated with the physical infrastructure. Operating a community bank means maintaining a physical presence for customer trust and service. This covers the real estate and technology supporting that network. For Cullman Bancorp, Inc., this means accounting for the overhead of its physical locations:

• Occupancy and equipment expenses for the 5-branch network.

When you aggregate the operational costs, the total noninterest expense for the first nine months of 2025 gives you a clear benchmark for overhead control. That figure was $9.388 million for the nine months ended 9/30/2025. Honestly, managing that number relative to net interest income is where the near-term profitability challenge lies.

Cullman Bancorp, Inc. (CULL) - Canvas Business Model: Revenue Streams

You're looking at how Cullman Bancorp, Inc. brings in the money, which for a bank like this, boils down to the spread between what it earns on its assets and what it pays on its liabilities, plus various fees. Honestly, it's all about the balance sheet working hard for them.

The largest piece, by far, is the income derived from their lending activities. You need to keep an eye on the net interest margin, but the gross revenue from the loan book is the engine. For the first nine months of 2025, the gross interest earned on loans was reported at $15.967 million.

Beyond the core lending income, Cullman Bancorp, Inc. collects various fees. These non-interest income sources provide a nice diversification, though they are smaller in scale compared to the interest income. Service charges on deposit accounts are a steady, predictable stream.

Here's a look at the key income components based on the latest available detailed figures, which are for the six months ended June 30, 2025, alongside the required 9-month loan interest figure:

The net interest income figure of $7,757 thousand for the first half of 2025 shows the result after subtracting interest paid on deposits and borrowings from the total interest earned. This is the real measure of their core banking profitability before accounting for credit losses.

For the other fee-based revenue streams, you see the following specific figures from the six months ended June 30, 2025:

• Service charges and fees levied on deposit accounts totaled $546 thousand for the six months ended June 30, 2025.
• Income on bank owned life insurance contributed $149 thousand for the same six-month period.
• The gain on sales of mortgage loans was negligible, reported as $0 thousand for the three months ended June 30, 2025, and $0 thousand for the six months ended June 30, 2025.

When you look at the interest and dividends from securities and federal funds sold, you combine several line items from the income statement. This is the income Cullman Bancorp, Inc. earns from its investment portfolio and short-term cash placements. Here's the quick math for the six months ended June 30, 2025:

Interest and dividends from securities and federal funds sold (6M 2025) is the sum of:

• Securities, taxable: $342 thousand
• Securities, tax exempt: $8 thousand
• Dividend Income: $110 thousand
• Federal funds sold and other: $263 thousand

This totals $723 thousand in interest and dividend income from non-loan assets for the first half of 2025. Loan origination and servicing fees are generally embedded within the 'Loans, including fees' line item for interest income, or sometimes in 'Other' noninterest income, but a distinct, large fee component separate from the gross loan interest isn't explicitly itemized in the provided statements for 2025.

Finance: draft 13-week cash view by Friday.