RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank
(the “Bank”) and RBB Asset Management Company (“RAM”), collectively
referred to herein as the “Company,” announced financial results
for the quarter and fiscal year ended December 31, 2024.
Fourth Quarter 2024 Highlights
- Net income totaled $4.4
million, or $0.25 diluted earnings per share
- Return on average assets of 0.44%,
compared to 0.72% for the quarter ended September 30,
2024
- Net interest margin of
2.76% compared to 2.68% for the quarter ended September
30, 2024
- Book value and tangible book
value per share(1) of $28.66 and $24.51 at December 31,
2024, compared to $28.81 and $24.64 at September 30, 2024
The Company reported net income of $4.4
million, or $0.25 diluted earnings per share, for the
quarter ended December 31, 2024, compared to net income of
$7.0 million, or $0.39 diluted earnings per share, for the
quarter ended September 30, 2024. Net income for the year
ended December 31, 2024 totaled $26.7 million, or
$1.47 diluted earnings per share, compared to net income of
$42.5 million, or $2.24 diluted earnings per share, for the year
ended December 31, 2023.
“Declining funding costs and stable interest
income drove net interest income and net interest margin higher in
the fourth quarter,” said Johnny Lee, President of the Company and
President and Chief Executive Officer of the Bank. “We continue to
make good progress on our growth initiatives and expect we will
resume loan growth in the first quarter and for the remainder of
the year. We did see an increase in nonperforming loans
mainly due to one credit relationship that was downgraded late in
the fourth quarter. We are actively working to resolve our
nonperforming loans as quickly as possible while
minimizing the impact to earnings and capital.”
“We are saddened by the devastation caused by
the recent fires in Los Angeles,” said David Morris, Chief
Executive Officer of the Company. “We stand ready to support our
community and neighbors as they begin the process of
rebuilding.”
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(1) |
Reconciliations of the non–U.S. generally accepted accounting
principles (“GAAP”) measures included at the end of this press
release. |
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Net Interest Income and Net Interest
Margin
Net interest income was $26.0
million for the fourth quarter of 2024, compared to $24.5
million for the third quarter of 2024. The
$1.4 million increase was due to a $130,000 increase
in interest income and a $1.3 million decrease in
interest expense. The increase in interest income was mostly due to
higher interest income on cash and investment securities of $1.1
million offset by lower interest income on total loans of
$952,000. The decrease in loan interest income was mostly
due to lower average loans of $9.8 million and a 10 basis
point decrease in the average loan yield due
to decreases in market rates and a change in the loan mix. The
increase in cash and investment interest income was attributed
to higher average balances and a higher investment portfolio
yield, offset by a lower yield on cash. The decrease in interest
expense was mostly due to a 33 basis point decrease in total
average interest-bearing deposit rates offset by higher
average interest-bearing deposits of $33.8 million in the
fourth quarter of 2024.
Net interest margin (“NIM”) was 2.76% for
the fourth quarter of 2024, an increase of 8 basis
points from 2.68% for the third quarter of 2024. The
increase was due to a 25 basis point decrease in the
overall cost of funds, partially offset by a 15 basis
point decrease in the yield on average interest-earning
assets. The yield on average interest-earning assets
decreased to 5.79% for the fourth quarter of 2024 from
5.94% for the third quarter of 2024 due mainly to a
55 basis point decrease in the yield on average cash and cash
equivalents to 5.02%, a decrease in the loan yield of 10 basis
points and the impact of a change in the mix of
average-earnings assets. Average loans represented
82% of average interest-earning assets in the
fourth quarter of 2024, a 2% decrease from the
third quarter of 2024. The decrease in the loan yield
was attributed mostly to a decrease in market rates and a
change in the loan mix.
The overall cost of funds decreased to
3.32% in the fourth quarter of 2024 from 3.57% in
the third quarter of 2024 due to a lower average cost
of interest-bearing deposits. The overall funding mix for
the fourth quarter of 2024 remained relatively unchanged from the
third quarter of 2024 with the ratio of average
noninterest-bearing deposits to average total funding
sources of 16%. The all-in average spot rate for total
deposits was 3.15% at December 31, 2024.
Net interest income was $99.4
million for the year ended December 31, 2024, compared to
$119.3 million for the year ended December 31, 2023. The
$19.9 million decrease was due to
a $15.4 million increase in interest expense and
a $4.5 million decrease in interest income. The decrease in
interest income was mostly due to lower interest income on
total loans of $9.7 million offset by higher interest income
on interest-earning deposits of $4.7 million. The decrease in loan
interest income was mostly due to lower average loans of
$164.3 million. The increase in cash and investment interest
income was attributed to higher average cash balances and
a higher investment portfolio yield, offset by a lower average of
investment securities. The increase in interest expense was mostly
due to a 72 basis point increase in total average
interest-bearing deposit rates and higher average
interest-bearing deposits of $30.1 million in the year
ended December 31, 2024.
NIM was 2.70% for the year ended
December 31, 2024, a decrease of 46 basis points
from 3.16% for the year ended December 31, 2023. The decrease
was due to a 55 basis point increase in the overall cost
of funds, partially offset by a 2 basis point increase in
the yield on average interest-earning assets. The
yield on average interest-earning assets increased to
5.88% for the year ended December 31, 2024 compared to the
prior year due mainly to a 12 basis point increase in the
yield on average cash and cash equivalents to 5.53%, an 18
basis point increase in the investment portfolio yield, offset
by the impact of lower average loan
balances. Average loans represented 83% of
average interest-earning assets during 2024, and 85% during
2023.
The overall cost of funds increased to
3.49% in the year ended December 31, 2024 from 2.94% in
the year ended December 31, 2023 due to a higher average cost
of interest-bearing deposits in response to higher average
market interest rates. The overall funding mix for December
31, 2024 remained relatively unchanged from the prior year
with a ratio of average noninterest-bearing
deposits to average total funding sources of 16%.
Provision for Credit Losses
The provision for credit losses
was $6.0 million for the fourth quarter of
2024 compared to $3.3 million for the
third quarter of 2024. The fourth quarter of 2024 provision
for credit losses was due to an increase in specific reserves of
$4.3 million and net charge-offs of $2.0 million,
partially offset by lower general reserves. The fourth quarter
increase in specific reserves included $4.5 million for a
construction loan secured by a partially completed mixed-use
commercial project. Fourth quarter net charge-offs
included $1.8 million for nonaccrual loans that were
moved to held for sale ("HFS"). Net charge-offs on an annualized
basis represented 0.26% of average loans for the fourth quarter of
2024 compared to 0.16% for the third quarter of 2024. The
fourth quarter provision also took into consideration factors such
as changes in loan balances, the loan portfolio mix, the outlook
for economic conditions and market interest rates, and changes
in credit quality metrics, including higher nonperforming
loans, and changes in special mention and substandard loans
during the period.
The provision for credit losses
was $9.9 million for the year ended December 31,
2024 compared to $3.4 million for the year ended December
31, 2023. The 2024 provision included the impact from an
increase in specific reserves of $6.1 million and
net charge-offs of $3.9 million. Net charge-offs totaled $3.9
million for the year ended December 31, 2024, compared to $3.1
million for the year ended December 31, 2023. Net charge-offs
represented 0.13% of average loans for the fiscal year 2024
compared to 0.10% for the fiscal year 2023.
Noninterest Income
Noninterest income for the fourth quarter
of 2024 was $2.7 million, a decrease of $3.0 million
from $5.7 million for the third quarter of
2024. This decrease was mostly due to the third quarter of
2024 including a $2.8 million recovery of a fully charged off
loan acquired in a bank acquisition.
Noninterest income for the year ended December
31, 2024 was $15.3 million, an increase of $317,000 from
$15.0 million for the year ended December 31, 2023. This
increase was mostly due to a $2.9 million increase
in recoveries on purchased loans, a $1.2 million increase
in gain on sale of loans and an $883,000 increase in gain
on OREO, offset by income from a $5.0
million Community Development Financial
Institution Equitable Recovery Program award that was
recognized during 2023.
Noninterest Expense
Noninterest expense for the fourth quarter
of 2024 was $17.6 million, an increase of $228,000 from $17.4
million for the third quarter of 2024. This
increase was mostly due to higher legal and
professional expenses of $397,000, partially offset by lower
occupancy and equipment expenses of $115,000. The annualized
noninterest expenses to average assets ratio was
1.76% for the fourth quarter of 2024, down from
1.78% for the third quarter of 2024. The efficiency ratio
was 61.5% for the fourth quarter of 2024, up from 57.5% for
the third quarter of 2024 due mostly to lower noninterest income as
the third quarter included a $2.8 million recovery of a fully
charged off loan acquired in a bank acquisition.
Noninterest expense for the year ended December
31, 2024 was $69.2 million, a decrease of
$1.5 million from $70.7 million for the year ended
December 31, 2023. This decrease was mostly due to
lower legal and professional expenses of $3.7 million, partially
offset by higher salaries and employee benefits of $1.6
million. The noninterest expenses to average assets
ratio was 1.76% for the fiscal year 2024 and 2023. The
efficiency ratio was 60.3% for the year ended December 31, 2024, up
from 52.6% for the year ended December 31, 2023 due mostly to lower
net interest income for 2024.
Income Taxes
The effective tax rate was 13.3% for the
fourth quarter of 2024 and 26.9% for the
third quarter of 2024. The decrease in the effective tax
rate for the fourth quarter was due primarily to higher tax credits
relative to pre-tax net income as compared to the prior
quarter.
The effective tax rate was 25.3% for the
year ended December 31, 2024 and 29.5% for the year ended
December 31, 2023. The decrease in the effective tax rate for
2024 was due primarily to higher tax credits as compared to the
prior year.
Balance Sheet
At December 31, 2024, total assets were
$4.0 billion, a $2.0 million increase compared to
September 30, 2024, and a $33.5 million decrease compared to
December 31, 2023.
Loan and Securities
Portfolio
Loans held for investment ("HFI") totaled $3.1
billion as of December 31, 2024, a decrease of
$38.7 million compared to September 30, 2024 and a
$21.4 million increase compared to December 31, 2023. The
decrease from September 30, 2024 was primarily due
to a $51.3 million decrease in commercial real
estate ("CRE") loans, a $6.9 million decrease in
construction and land development ("C&D") loans
and an $826,000 decrease in Small Business Administration
("SBA") loans, partially offset by a $20.6 million
increase in single-family residential ("SFR") mortgages
and a $724,000 increase in commercial and
industrial ("C&I") loans. The loan to deposit ratio
was 97.5% at December 31, 2024, compared to 98.6% at
September 30, 2024 and 94.2% at December 31,
2023.
As of December 31, 2024, available-for-sale
securities totaled $420.2 million, an increase of
$114.5 million from September 30, 2024, primarily related
to the purchase of $79.2 million in short-term commercial
paper. As of December 31, 2024, net unrealized losses
totaled $29.2 million, a $6.0 million increase due
mostly to increases in treasury rates, when compared to net
unrealized losses of $23.2 million as of September 30,
2024.
Deposits
Total deposits were $3.1 billion as of
December 31, 2024, an $8.4 million decrease compared to
September 30, 2024 and a $91.0 million decrease compared
to December 31, 2023. The decrease during the fourth quarter
of 2024 was due to a $27.8 million decrease
in interest-bearing deposits, while noninterest-bearing
deposits increased $19.4 million to $563.0 million as of
December 31, 2024 compared to $543.6 million as of
September 30, 2024. The decrease in interest-bearing
deposits included a decrease in time deposits of
$24.7 million and non-maturity deposits of
$3.1 million. Wholesale deposits remained relatively
unchanged at $147.5 million at December 31, 2024
compared to $147.3 million at September 30, 2024.
Noninterest-bearing deposits represented 18.3% of total deposits at
December 31, 2024 compared to 17.6% at September 30,
2024.
Credit Quality
Nonperforming assets totaled $81.0 million, or
2.03% of total assets, at December 31, 2024, compared to
$60.7 million, or 1.52% of total assets, at
September 30, 2024. The $20.4 million increase in
nonperforming assets was due to the addition of
one $26.4 million C&D loan, $2.0 million in
SFR loans and $890,000 in SBA loans that migrated to
nonaccrual status during the fourth quarter of 2024, partially
offset by payoffs and paydowns of $6.7 million and partial
charge-offs of $2.0 million.
Nonperforming assets at December 31, 2024
include loans HFS with a total fair value of
$11.2 million, which were transferred from HFI during the
fourth quarter of 2024 after a $1.8 million charge-off
against the allowance for credit losses. These loans were
reported as nonperforming loans at September 30, 2024.
Special mention loans totaled
$65.3 million, or 2.14% of total loans, at
December 31, 2024, compared to $77.5 million, or
2.51% of total loans, at September 30, 2024. The
$12.2 million decrease was primarily due to CRE loans
totaling $11.8 million that were upgraded to
pass-rated and $1.8 million in payoffs and
paydowns, offset by CRE loans totaling
$1.4 million downgraded during the fourth quarter of
2024. All special mention loans are paying current.
Substandard loans totaled $100.3 million,
of which $11.2 million were HFS at December 31,
2024, compared to $79.8 million at
September 30, 2024. This $20.5 million increase
was primarily due to downgrades of one $26.4 million
C&D loan, SFR loans
totaling $2.0 million, C&I loans totaling $1.9
million and SBA loans totaling $747,000. These downgrades
were offset by payoffs and paydowns totaling
$6.5 million, upgrades totaling $2.0 million and
partial charge-offs totaling $2.0 million. Of the total substandard
loans at December 31, 2024, there
are $19.3 million on accrual status, including an
$11.7 million C&D loan that was in the process of renewal and
also included in the 30-89 day delinquent category below.
30-89 day delinquent loans, excluding
nonperforming loans, totaled $22.1 million
at December 31, 2024, compared to $10.6 million
at September 30, 2024. The $11.5 million increase was
mostly due to one $11.7 million C&D loan in process
of renewal for a completed multifamily project at December 31,
2024, and since year end, it has been brought current and paid down
by $1.5 million. Other changes in delinquent loans
included additions totaling $5.5 million, offset by
$3.2 million that returned to current status, $1.8
million that migrated to nonaccrual status and $735,000 in
payoffs.
As of December 31, 2024, the allowance for
credit losses totaled $48.5 million and was comprised of an
allowance for loan losses of $47.7 million and a reserve for
unfunded commitments of $729,000 (included in “Accrued interest and
other liabilities”). This compares to the allowance for credit
losses of $44.5 million comprised of an allowance for loan
losses of $43.7 million and a reserve for unfunded commitments
of $779,000 at September 30, 2024. The $4.0
million increase in the allowance for credit losses for
the fourth quarter of 2024 was due to a $6.0 million
provision for credit losses offset by net charge-offs of
$2.0 million. The increase in charge-offs in the
fourth quarter of 2024 was primarily due to a decrease
in the estimated fair value of collateral dependent loans and
loans moved to HFS. The allowance for loan losses as a
percentage of loans HFI increased to 1.56% at
December 31, 2024, compared to 1.41% at
September 30, 2024, due to an increase in specific reserves on
one C&D loan mentioned previously. The allowance for loan
losses as a percentage of nonperforming loans HFI was 68% at
December 31, 2024, a decrease from 72% at
September 30, 2024.
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For the Three Months Ended December 31, 2024 |
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For the Year Ended December 31, 2024 |
|
| (dollars in
thousands) |
Allowance for loan losses |
|
|
Reserve for unfunded loan commitments |
|
|
Allowance for credit losses |
|
|
Allowance for loan losses |
|
|
Reserve for unfunded loan commitments |
|
Allowance for credit losses |
|
|
Beginning balance |
$ |
43,685 |
|
|
$ |
779 |
|
|
$ |
44,464 |
|
|
$ |
41,903 |
|
|
$ |
640 |
|
$ |
42,543 |
|
| Provision for (reversal of)
credit losses |
|
6,050 |
|
|
|
(50 |
) |
|
|
6,000 |
|
|
|
9,768 |
|
|
|
89 |
|
|
9,857 |
|
| Less loans charged-off |
|
(2,092 |
) |
|
|
— |
|
|
|
(2,092 |
) |
|
|
(4,083 |
) |
|
|
— |
|
|
(4,083 |
) |
| Recoveries on loans
charged-off |
|
86 |
|
|
|
— |
|
|
|
86 |
|
|
|
141 |
|
|
|
— |
|
|
141 |
|
| Ending balance |
$ |
47,729 |
|
|
$ |
729 |
|
|
$ |
48,458 |
|
|
$ |
47,729 |
|
|
$ |
729 |
|
$ |
48,458 |
|
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|
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Shareholders' Equity
At December 31, 2024, total
shareholders' equity was $507.9 million, a $1.9
million decrease compared to September 30, 2024, and
a $3.4 million decrease compared to December 31, 2023.
The decrease in shareholders' equity for the
fourth quarter of 2024 was due to higher net
unrealized losses on available-for-sale securities of
$4.2 million and common stock cash dividends paid of
$2.9 million, offset by net income of $4.4 million, and
equity compensation activity of $794,000. The decrease in
shareholders' equity for the year ended 2024 was due to common
stock repurchases of $20.7 million, common stock
cash dividends paid of $11.7 million
and higher net unrealized losses on available-for-sale
securities of $744,000, offset by net income of $26.7 million,
and equity compensation activity of $3.1 million. Book value per
share and tangible book value per share(1) decreased
to $28.66 and $24.51 at December 31, 2024,
down from $28.81 and $24.64 at September 30, 2024
and up from $27.47 and $23.48 at December 31, 2023.
Contact: Lynn Hopkins,
Chief Financial Officer(213)
716-8066lhopkins@rbbusa.com
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(1) |
Reconciliations of the non–U.S. generally accepted accounting
principles (“GAAP”) measures included at the end of this press
release. |
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Corporate Overview
RBB Bancorp is a community-based financial
holding company headquartered in Los Angeles,
California. As of December 31, 2024, the Company had
total assets of $4.0 billion. Its wholly-owned subsidiary,
Royal Business Bank, is a full service commercial bank, which
provides consumer and business banking services predominately to
the Asian-centric communities in Los Angeles
County, Orange County, and Ventura
County in California, in Las Vegas, Nevada,
in Brooklyn, Queens, and Manhattan in New York, in
Edison, New Jersey, in the Chicago neighborhoods of Chinatown and
Bridgeport, Illinois, and on Oahu, Hawaii. Bank services
include remote deposit, E-banking, mobile banking, commercial and
investor real estate loans, business loans and lines of credit,
commercial and industrial loans, SBA 7A and 504 loans, 1-4 single
family residential loans, trade finance, a full range of depository
account products and wealth management services. The Bank has
nine branches in Los Angeles County, two branches
in Ventura County, one branch in Orange County,
California, one branch in Las Vegas, Nevada,
three branches and one loan operation center in Brooklyn,
three branches in Queens, one branch
in Manhattan in New York, one branch in Edison, New
Jersey, two branches in Chicago, Illinois, and one branch in
Honolulu, Hawaii. The Company's administrative and lending center
is located at 1055 Wilshire Blvd., Los Angeles,
California 90017, and its operations center is located at 7025
Orangethorpe Ave., Buena Park, California 90621. The
Company's website address is www.royalbusinessbankusa.com.
Conference Call
Management will hold a conference call at 11:00
a.m. Pacific time/2:00 p.m. Eastern time on Tuesday,
February 4, 2025, to discuss the Company’s
fourth quarter 2024 financial results.
To listen to the conference call, please dial
1-888-506-0062 or 1-973-528-0011, the Participant ID code is
834092, conference ID RBBQ424. A replay of the call will
be made available at 1-877-481-4010 or
1-919-882-2331, the passcode is 51830, approximately
one hour after the conclusion of the call and will remain available
through February 5, 2025.
The conference call will also be simultaneously
webcast over the Internet; please visit our Royal Business Bank
website at www.royalbusinessbankusa.com and click on the
“Investors” tab to access the call from the site. This webcast will
be recorded and available for replay on our website approximately
two hours after the conclusion of the conference call.
Disclosure
This press release contains certain non-GAAP
financial disclosures for tangible common equity and tangible
assets and adjusted earnings. The Company uses certain non-GAAP
financial measures to provide meaningful supplemental information
regarding the Company’s operational performance and to enhance
investors’ overall understanding of such financial performance.
Please refer to the tables at the end of this release for a
presentation of performance ratios in accordance with GAAP and a
reconciliation of the non-GAAP financial measures to the GAAP
financial measures.
Safe Harbor
Certain matters set forth herein (including the
exhibits hereto) constitute forward-looking statements relating to
the Company’s current business plans and expectations and our
future financial position and operating results. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results, performance and/or achievements to
differ materially from those projected. These risks and
uncertainties include, but are not limited to, the
effectiveness of the Company’s internal control over financial
reporting and disclosure controls and procedures; the
potential for additional material weaknesses in the Company’s
internal controls over financial reporting or other potential
control deficiencies of which the Company is not currently aware or
which have not been detected; business and economic conditions
generally and in the financial services industry, nationally and
within our current and future geographic markets, including the
tight labor market, ineffective management of the United States
(“U.S.”) federal budget or debt or turbulence or uncertainly in
domestic or foreign financial markets; the strength of
the U.S. economy in general and the strength of the local
economies in which we conduct operations; adverse developments
in the banking industry highlighted by high-profile bank failures
and the potential impact of such developments on customer
confidence, liquidity and regulatory responses to these
developments; our ability to attract and retain deposits and access
other sources of liquidity; possible additional provisions for
credit losses and charge-offs; credit risks of lending
activities and deterioration in asset or credit
quality; extensive laws and regulations and supervision that
we are subject to, including potential supervisory action by bank
supervisory authorities; increased costs of compliance and
other risks associated with changes in regulation, including any
amendments to the Dodd-Frank Wall Street Reform and Consumer
Protection Act; compliance with the Bank Secrecy Act and other
money laundering statutes and regulations; potential goodwill
impairment; liquidity risk; failure to comply with debt
covenants; fluctuations in interest rates; risks
associated with acquisitions and the expansion of our business into
new markets; inflation and deflation; real estate market
conditions and the value of real estate collateral; the effects of
having concentrations in our loan portfolio, including commercial
real estate and the risks of geographic and industry
concentrations; environmental liabilities; our ability to
compete with larger competitors; our ability to retain key
personnel; successful management of reputational
risk; severe weather, natural disasters, earthquakes, fires,
including direct and indirect costs and impacts on clients, the
Company and its employees from the January 2025 Los Angeles County
wildfires; or other adverse external events could harm our
business; geopolitical conditions, including acts or threats
of terrorism, actions taken by the U.S. or other governments
in response to acts or threats of terrorism and/or military
conflicts, including the conflicts between Russia and Ukraine,
in the Middle East, and increasing tensions between China and
Taiwan, which could impact business and economic conditions in the
U.S. and abroad; public health crises and pandemics, and
their effects on the economic and business environments in which we
operate, including our credit quality and business operations, as
well as the impact on general economic and financial market
conditions; general economic or business conditions in Asia,
and other regions where the Bank has operations; failures,
interruptions, or security breaches of our information
systems; climate change, including any enhanced regulatory,
compliance, credit and reputational risks and
costs; cybersecurity threats and the cost of defending against
them; our ability to adapt our systems to the expanding use of
technology in banking; risk management processes and
strategies; adverse results in legal proceedings; the
impact of regulatory enforcement actions, if any; certain
provisions in our charter and bylaws that may affect acquisition of
the Company; changes in tax laws and regulations; the
impact of governmental efforts to restructure the U.S. financial
regulatory system; the impact of future or recent changes in
the Federal Deposit Insurance Corporation ("FDIC") insurance
assessment rate and the rules and regulations related to the
calculation of the FDIC insurance assessments; the effect of
changes in accounting policies and practices or accounting
standards, as may be adopted from time-to-time by bank regulatory
agencies, the SEC, the Public Company Accounting Oversight Board,
the Financial Accounting Standards Board or other accounting
standards setters, including Accounting Standards
Update 2016-13 (Topic 326, “Measurement of Current Losses on
Financial Instruments, commonly referenced as the Current Expected
Credit Losses Model, which changed how we estimate credit losses
and may further increase the required level of our allowance for
credit losses in future periods; market disruption and
volatility; fluctuations in the Company’s stock
price; restrictions on dividends and other distributions by
laws and regulations and by our regulators and our capital
structure; issuances of preferred stock; our ability to
raise additional capital, if needed, and the potential resulting
dilution of interests of holders of our common stock; the
soundness of other financial institutions; our ongoing relations
with our various federal and state regulators, including the SEC,
FDIC, FRB and California Department of Financial Protection and
Innovation; our success at managing the risks involved in the
foregoing items and all other factors set forth in the Company’s
public reports, including its Annual Report as filed under Form
10-K for the year ended December 31, 2023, and
particularly the discussion of risk factors within that document.
The Company does not undertake, and specifically disclaims any
obligation, to update any forward-looking statements to reflect
occurrences or unanticipated events or circumstances after the date
of such statements except as required by law. Any statements about
future operating results, such as those concerning accretion and
dilution to the Company’s earnings or shareholders, are for
illustrative purposes only, are not forecasts, and actual results
may differ.
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RBB BANCORP AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
| |
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
$ |
27,747 |
|
|
$ |
26,388 |
|
|
$ |
23,313 |
|
|
$ |
21,887 |
|
|
$ |
22,671 |
|
| Interest-earning deposits with
financial institutions |
|
229,998 |
|
|
|
323,002 |
|
|
|
229,456 |
|
|
|
247,356 |
|
|
|
408,702 |
|
|
Cash and cash equivalents |
|
257,745 |
|
|
|
349,390 |
|
|
|
252,769 |
|
|
|
269,243 |
|
|
|
431,373 |
|
| Interest-earning time deposits
with financial institutions |
|
600 |
|
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
| Investment securities
available for sale |
|
420,190 |
|
|
|
305,666 |
|
|
|
325,582 |
|
|
|
335,194 |
|
|
|
318,961 |
|
| Investment securities held to
maturity |
|
5,191 |
|
|
|
5,195 |
|
|
|
5,200 |
|
|
|
5,204 |
|
|
|
5,209 |
|
| Loans held for sale |
|
11,250 |
|
|
|
812 |
|
|
|
3,146 |
|
|
|
3,903 |
|
|
|
1,911 |
|
| Loans held for investment |
|
3,053,230 |
|
|
|
3,091,896 |
|
|
|
3,047,712 |
|
|
|
3,027,361 |
|
|
|
3,031,861 |
|
| Allowance for loan losses |
|
(47,729 |
) |
|
|
(43,685 |
) |
|
|
(41,741 |
) |
|
|
(41,688 |
) |
|
|
(41,903 |
) |
|
Net loans held for investment |
|
3,005,501 |
|
|
|
3,048,211 |
|
|
|
3,005,971 |
|
|
|
2,985,673 |
|
|
|
2,989,958 |
|
| Premises and equipment,
net |
|
24,601 |
|
|
|
24,839 |
|
|
|
25,049 |
|
|
|
25,363 |
|
|
|
25,684 |
|
| Federal Home Loan Bank (FHLB)
stock |
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
| Cash surrender value of bank
owned life insurance |
|
60,296 |
|
|
|
59,889 |
|
|
|
59,486 |
|
|
|
59,101 |
|
|
|
58,719 |
|
| Goodwill |
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
| Servicing assets |
|
6,985 |
|
|
|
7,256 |
|
|
|
7,545 |
|
|
|
7,794 |
|
|
|
8,110 |
|
| Core deposit intangibles |
|
2,011 |
|
|
|
2,194 |
|
|
|
2,394 |
|
|
|
2,594 |
|
|
|
2,795 |
|
| Right-of-use assets |
|
28,048 |
|
|
|
29,283 |
|
|
|
30,530 |
|
|
|
31,231 |
|
|
|
29,803 |
|
| Accrued interest and other
assets |
|
83,561 |
|
|
|
70,644 |
|
|
|
63,416 |
|
|
|
65,608 |
|
|
|
66,404 |
|
|
Total assets |
$ |
3,992,477 |
|
|
$ |
3,990,477 |
|
|
$ |
3,868,186 |
|
|
$ |
3,878,006 |
|
|
$ |
4,026,025 |
|
| Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
563,012 |
|
|
$ |
543,623 |
|
|
$ |
542,971 |
|
|
$ |
539,517 |
|
|
$ |
539,621 |
|
|
Savings, NOW and money market accounts |
|
663,034 |
|
|
|
666,089 |
|
|
|
647,770 |
|
|
|
642,840 |
|
|
|
632,729 |
|
|
Time deposits, $250,000 and under |
|
1,007,452 |
|
|
|
1,052,462 |
|
|
|
1,014,189 |
|
|
|
1,083,898 |
|
|
|
1,190,821 |
|
|
Time deposits, greater than $250,000 |
|
850,291 |
|
|
|
830,010 |
|
|
|
818,675 |
|
|
|
762,074 |
|
|
|
811,589 |
|
|
Total deposits |
|
3,083,789 |
|
|
|
3,092,184 |
|
|
|
3,023,605 |
|
|
|
3,028,329 |
|
|
|
3,174,760 |
|
| FHLB advances |
|
200,000 |
|
|
|
200,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
| Long-term debt, net of
issuance costs |
|
119,529 |
|
|
|
119,433 |
|
|
|
119,338 |
|
|
|
119,243 |
|
|
|
119,147 |
|
| Subordinated debentures |
|
15,156 |
|
|
|
15,102 |
|
|
|
15,047 |
|
|
|
14,993 |
|
|
|
14,938 |
|
| Lease liabilities - operating
leases |
|
29,705 |
|
|
|
30,880 |
|
|
|
32,087 |
|
|
|
32,690 |
|
|
|
31,191 |
|
| Accrued interest and other
liabilities |
|
36,421 |
|
|
|
23,150 |
|
|
|
16,818 |
|
|
|
18,765 |
|
|
|
24,729 |
|
|
Total liabilities |
|
3,484,600 |
|
|
|
3,480,749 |
|
|
|
3,356,895 |
|
|
|
3,364,020 |
|
|
|
3,514,765 |
|
| Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
259,957 |
|
|
|
259,280 |
|
|
|
266,160 |
|
|
|
271,645 |
|
|
|
271,925 |
|
| Additional paid-in
capital |
|
3,645 |
|
|
|
3,520 |
|
|
|
3,456 |
|
|
|
3,348 |
|
|
|
3,623 |
|
| Retained earnings |
|
264,460 |
|
|
|
262,946 |
|
|
|
262,518 |
|
|
|
259,903 |
|
|
|
255,152 |
|
| Non-controlling interest |
|
72 |
|
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
| Accumulated other
comprehensive loss, net |
|
(20,257 |
) |
|
|
(16,090 |
) |
|
|
(20,915 |
) |
|
|
(20,982 |
) |
|
|
(19,512 |
) |
|
Total shareholders' equity |
|
507,877 |
|
|
|
509,728 |
|
|
|
511,291 |
|
|
|
513,986 |
|
|
|
511,260 |
|
|
Total liabilities and shareholders’ equity |
$ |
3,992,477 |
|
|
$ |
3,990,477 |
|
|
$ |
3,868,186 |
|
|
$ |
3,878,006 |
|
|
$ |
4,026,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
RBB BANCORP AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (In thousands, except share
and per share data) |
| |
|
|
|
|
| |
For the Three Months Ended |
|
|
For the Year Ended |
| |
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|
|
December 31, 2024 |
|
December 31, 2023 |
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
46,374 |
|
$ |
47,326 |
|
$ |
45,895 |
|
|
$ |
184,567 |
|
$ |
194,264 |
|
Interest on interest-earning deposits |
|
3,641 |
|
|
3,388 |
|
|
4,650 |
|
|
|
15,422 |
|
|
10,746 |
|
Interest on investment securities |
|
3,962 |
|
|
3,127 |
|
|
3,706 |
|
|
|
14,331 |
|
|
14,028 |
|
Dividend income on FHLB stock |
|
330 |
|
|
326 |
|
|
312 |
|
|
|
1,314 |
|
|
1,125 |
|
Interest on federal funds sold and other |
|
248 |
|
|
258 |
|
|
269 |
|
|
|
1,027 |
|
|
985 |
|
Total interest and dividend income |
|
54,555 |
|
|
54,425 |
|
|
54,832 |
|
|
|
216,661 |
|
|
221,148 |
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on savings deposits, NOW and money market accounts |
|
4,671 |
|
|
5,193 |
|
|
4,026 |
|
|
|
19,295 |
|
|
12,205 |
|
Interest on time deposits |
|
21,361 |
|
|
22,553 |
|
|
22,413 |
|
|
|
89,086 |
|
|
76,837 |
|
Interest on long-term debt and subordinated debentures |
|
1,660 |
|
|
1,681 |
|
|
2,284 |
|
|
|
6,699 |
|
|
9,951 |
|
Interest on FHLB advances |
|
886 |
|
|
453 |
|
|
440 |
|
|
|
2,217 |
|
|
2,869 |
|
Total interest expense |
|
28,578 |
|
|
29,880 |
|
|
29,163 |
|
|
|
117,297 |
|
|
101,862 |
|
Net interest income before provision for credit losses |
|
25,977 |
|
|
24,545 |
|
|
25,669 |
|
|
|
99,364 |
|
|
119,286 |
| Provision for (reversal of)
credit losses |
|
6,000 |
|
|
3,300 |
|
|
(431 |
) |
|
|
9,857 |
|
|
3,362 |
|
Net interest income after provision for (reversal of) credit
losses |
|
19,977 |
|
|
21,245 |
|
|
26,100 |
|
|
|
89,507 |
|
|
115,924 |
| Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
988 |
|
|
1,071 |
|
|
972 |
|
|
|
4,115 |
|
|
4,172 |
|
Gain on sale of loans |
|
376 |
|
|
447 |
|
|
116 |
|
|
|
1,586 |
|
|
374 |
|
Loan servicing fees, net of amortization |
|
492 |
|
|
605 |
|
|
616 |
|
|
|
2,265 |
|
|
2,576 |
|
Increase in cash surrender value of life insurance |
|
407 |
|
|
403 |
|
|
374 |
|
|
|
1,577 |
|
|
1,409 |
|
(Loss) gain on OREO |
|
— |
|
|
— |
|
|
(57 |
) |
|
|
1,016 |
|
|
133 |
|
Other income |
|
466 |
|
|
3,220 |
|
|
5,373 |
|
|
|
4,776 |
|
|
6,354 |
|
Total noninterest income |
|
2,729 |
|
|
5,746 |
|
|
7,394 |
|
|
|
15,335 |
|
|
15,018 |
| Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
9,927 |
|
|
10,008 |
|
|
8,860 |
|
|
|
39,395 |
|
|
37,795 |
|
Occupancy and equipment expenses |
|
2,403 |
|
|
2,518 |
|
|
2,387 |
|
|
|
9,803 |
|
|
9,629 |
|
Data processing |
|
1,499 |
|
|
1,472 |
|
|
1,357 |
|
|
|
5,857 |
|
|
5,326 |
|
Legal and professional |
|
1,355 |
|
|
958 |
|
|
1,291 |
|
|
|
4,453 |
|
|
8,198 |
|
Office expenses |
|
399 |
|
|
348 |
|
|
349 |
|
|
|
1,455 |
|
|
1,512 |
|
Marketing and business promotion |
|
251 |
|
|
252 |
|
|
241 |
|
|
|
864 |
|
|
1,132 |
|
Insurance and regulatory assessments |
|
677 |
|
|
658 |
|
|
1,122 |
|
|
|
3,298 |
|
|
3,165 |
|
Core deposit premium |
|
182 |
|
|
200 |
|
|
215 |
|
|
|
784 |
|
|
923 |
|
Other expenses |
|
956 |
|
|
1,007 |
|
|
571 |
|
|
|
3,254 |
|
|
3,016 |
|
Total noninterest expense |
|
17,649 |
|
|
17,421 |
|
|
16,393 |
|
|
|
69,163 |
|
|
70,696 |
|
Income before income taxes |
|
5,057 |
|
|
9,570 |
|
|
17,101 |
|
|
|
35,679 |
|
|
60,246 |
|
Income tax expense |
|
672 |
|
|
2,571 |
|
|
5,028 |
|
|
|
9,014 |
|
|
17,781 |
|
Net income |
$ |
4,385 |
|
$ |
6,999 |
|
$ |
12,073 |
|
|
$ |
26,665 |
|
$ |
42,465 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.25 |
|
$ |
0.39 |
|
$ |
0.64 |
|
|
$ |
1.47 |
|
$ |
2.24 |
|
Diluted |
$ |
0.25 |
|
$ |
0.39 |
|
$ |
0.64 |
|
|
$ |
1.47 |
|
$ |
2.24 |
|
Cash dividends declared per common share |
$ |
0.16 |
|
$ |
0.16 |
|
$ |
0.16 |
|
|
$ |
0.64 |
|
$ |
0.64 |
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
17,704,992 |
|
|
17,812,791 |
|
|
18,887,501 |
|
|
|
18,121,764 |
|
|
18,965,346 |
|
Diluted |
|
17,796,840 |
|
|
17,885,359 |
|
|
18,900,351 |
|
|
|
18,183,319 |
|
|
18,985,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
RBB BANCORP AND SUBSIDIARIESAVERAGE
BALANCE SHEET AND NET INTEREST INCOME
(Unaudited) |
| |
|
|
| |
For the Three Months Ended |
|
| |
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|
(tax-equivalent basis, dollars in
thousands) |
Average |
|
Interest |
|
Yield / |
|
|
Average |
|
Interest |
|
Yield / |
|
|
Average |
|
Interest |
|
Yield / |
|
|
Balance |
|
& Fees |
|
Rate |
|
|
Balance |
|
& Fees |
|
Rate |
|
|
Balance |
|
& Fees |
|
Rate |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (1) |
$ |
308,455 |
|
$ |
3,890 |
|
5.02 |
% |
|
$ |
260,205 |
|
$ |
3,646 |
|
5.57 |
% |
|
$ |
333,940 |
|
$ |
4,919 |
|
5.84 |
% |
|
FHLB Stock |
|
15,000 |
|
|
330 |
|
8.75 |
% |
|
|
15,000 |
|
|
326 |
|
8.65 |
% |
|
|
15,000 |
|
|
312 |
|
8.25 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale (2) |
|
361,253 |
|
|
3,939 |
|
4.34 |
% |
|
|
298,948 |
|
|
3,105 |
|
4.13 |
% |
|
|
329,426 |
|
|
3,684 |
|
4.44 |
% |
|
Held to maturity (2) |
|
5,194 |
|
|
48 |
|
3.68 |
% |
|
|
5,198 |
|
|
46 |
|
3.52 |
% |
|
|
5,212 |
|
|
46 |
|
3.50 |
% |
|
Total loans |
|
3,059,786 |
|
|
46,374 |
|
6.03 |
% |
|
|
3,069,578 |
|
|
47,326 |
|
6.13 |
% |
|
|
3,055,232 |
|
|
45,895 |
|
5.96 |
% |
|
Total interest-earning assets |
|
3,749,688 |
|
$ |
54,581 |
|
5.79 |
% |
|
|
3,648,929 |
|
$ |
54,449 |
|
5.94 |
% |
|
|
3,738,810 |
|
$ |
54,856 |
|
5.82 |
% |
|
Total noninterest-earning assets |
|
244,609 |
|
|
|
|
|
|
|
|
242,059 |
|
|
|
|
|
|
|
|
253,385 |
|
|
|
|
|
|
|
Total average assets |
$ |
3,994,297 |
|
|
|
|
|
|
|
$ |
3,890,988 |
|
|
|
|
|
|
|
$ |
3,992,195 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW |
|
53,879 |
|
|
254 |
|
1.88 |
% |
|
$ |
55,757 |
|
$ |
277 |
|
1.98 |
% |
|
$ |
54,378 |
|
$ |
214 |
|
1.56 |
% |
|
Money market |
|
463,850 |
|
|
3,735 |
|
3.20 |
% |
|
|
439,936 |
|
|
4,093 |
|
3.70 |
% |
|
|
422,582 |
|
|
3,252 |
|
3.05 |
% |
|
Saving deposits |
|
162,351 |
|
|
682 |
|
1.67 |
% |
|
|
164,515 |
|
|
823 |
|
1.99 |
% |
|
|
148,354 |
|
|
560 |
|
1.50 |
% |
|
Time deposits, $250,000 and under |
|
1,034,946 |
|
|
11,583 |
|
4.45 |
% |
|
|
1,037,365 |
|
|
12,312 |
|
4.72 |
% |
|
|
1,162,014 |
|
|
13,244 |
|
4.52 |
% |
|
Time deposits, greater than $250,000 |
|
835,583 |
|
|
9,778 |
|
4.66 |
% |
|
|
819,207 |
|
|
10,241 |
|
4.97 |
% |
|
|
781,833 |
|
|
9,169 |
|
4.65 |
% |
|
Total interest-bearing deposits |
|
2,550,609 |
|
|
26,032 |
|
4.06 |
% |
|
|
2,516,780 |
|
|
27,746 |
|
4.39 |
% |
|
|
2,569,161 |
|
|
26,439 |
|
4.08 |
% |
|
FHLB advances |
|
200,000 |
|
|
886 |
|
1.76 |
% |
|
|
150,543 |
|
|
453 |
|
1.20 |
% |
|
|
150,000 |
|
|
440 |
|
1.16 |
% |
|
Long-term debt |
|
119,466 |
|
|
1,295 |
|
4.31 |
% |
|
|
119,370 |
|
|
1,295 |
|
4.32 |
% |
|
|
155,536 |
|
|
1,895 |
|
4.83 |
% |
|
Subordinated debentures |
|
15,121 |
|
|
365 |
|
9.60 |
% |
|
|
15,066 |
|
|
386 |
|
10.19 |
% |
|
|
14,902 |
|
|
389 |
|
10.36 |
% |
|
Total interest-bearing liabilities |
|
2,885,196 |
|
|
28,578 |
|
3.94 |
% |
|
|
2,801,759 |
|
|
29,880 |
|
4.24 |
% |
|
|
2,889,599 |
|
|
29,163 |
|
4.00 |
% |
| Noninterest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
539,900 |
|
|
|
|
|
|
|
|
528,081 |
|
|
|
|
|
|
|
|
535,554 |
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
56,993 |
|
|
|
|
|
|
|
|
52,428 |
|
|
|
|
|
|
|
|
61,858 |
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
596,893 |
|
|
|
|
|
|
|
|
580,509 |
|
|
|
|
|
|
|
|
597,412 |
|
|
|
|
|
|
| Shareholders' equity |
|
512,208 |
|
|
|
|
|
|
|
|
508,720 |
|
|
|
|
|
|
|
|
505,184 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
3,994,297 |
|
|
|
|
|
|
|
$ |
3,890,988 |
|
|
|
|
|
|
|
$ |
3,992,195 |
|
|
|
|
|
|
| Net interest income / interest
rate spreads |
|
|
|
$ |
26,003 |
|
1.85 |
% |
|
|
|
|
$ |
24,569 |
|
1.70 |
% |
|
|
|
|
$ |
25,693 |
|
1.82 |
% |
| Net interest margin |
|
|
|
|
|
|
2.76 |
% |
|
|
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
|
|
2.73 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of deposits |
$ |
3,090,509 |
|
$ |
26,032 |
|
3.35 |
% |
|
$ |
3,044,861 |
|
$ |
27,746 |
|
3.63 |
% |
|
$ |
3,104,715 |
|
$ |
26,439 |
|
3.38 |
% |
| Total cost of funds |
$ |
3,425,096 |
|
$ |
28,578 |
|
3.32 |
% |
|
$ |
3,329,840 |
|
$ |
29,880 |
|
3.57 |
% |
|
$ |
3,425,153 |
|
$ |
29,163 |
|
3.38 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(1) |
Includes income and average balances for interest-earning time
deposits and other miscellaneous interest-earning assets. |
| (2) |
Interest income and average rates
for tax-exempt securities are presented on a tax-equivalent
basis. |
| (3) |
Average loan balances include
nonaccrual loans. Interest income on loans includes the effects of
discount accretion and net deferred loan origination fees and costs
accounted for as yield adjustments. |
| |
|
| |
|
|
|
RBB BANCORP AND SUBSIDIARIESAVERAGE
BALANCE SHEET AND NET INTEREST
INCOME(Unaudited) |
| |
|
|
| |
For the Year Ended |
|
| |
December 31, 2024 |
|
|
December 31, 2023 |
|
|
(tax-equivalent basis, dollars in
thousands) |
Average |
|
Interest |
|
Yield / |
|
|
Average |
|
Interest |
|
Yield / |
|
|
Balance |
|
& Fees |
|
Rate |
|
|
Balance |
|
& Fees |
|
Rate |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (1) |
$ |
297,331 |
|
$ |
16,449 |
|
5.53 |
% |
|
$ |
216,851 |
|
$ |
11,731 |
|
5.41 |
% |
|
FHLB Stock |
|
15,000 |
|
|
1,314 |
|
8.76 |
% |
|
|
15,000 |
|
|
1,125 |
|
7.50 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale (2) |
|
324,644 |
|
|
14,242 |
|
4.39 |
% |
|
|
331,357 |
|
|
13,928 |
|
4.20 |
% |
|
Held to maturity (2) |
|
5,200 |
|
|
188 |
|
3.62 |
% |
|
|
5,509 |
|
|
198 |
|
3.59 |
% |
|
Total loans |
|
3,041,337 |
|
|
184,567 |
|
6.07 |
% |
|
|
3,205,625 |
|
|
194,264 |
|
6.06 |
% |
|
Total interest-earning assets |
|
3,683,512 |
|
$ |
216,760 |
|
5.88 |
% |
|
|
3,774,342 |
|
$ |
221,246 |
|
5.86 |
% |
|
Total noninterest-earning assets |
|
243,258 |
|
|
|
|
|
|
|
|
246,980 |
|
|
|
|
|
|
|
Total average assets |
$ |
3,926,770 |
|
|
|
|
|
|
|
$ |
4,021,322 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW |
$ |
56,158 |
|
|
1,105 |
|
1.97 |
% |
|
$ |
58,191 |
|
$ |
725 |
|
1.25 |
% |
|
Money market |
|
436,925 |
|
|
15,231 |
|
3.49 |
% |
|
|
429,102 |
|
|
10,565 |
|
2.46 |
% |
|
Saving deposits |
|
162,243 |
|
|
2,959 |
|
1.82 |
% |
|
|
126,062 |
|
|
915 |
|
0.73 |
% |
|
Time deposits, $250,000 and under |
|
1,074,291 |
|
|
50,059 |
|
4.66 |
% |
|
|
1,146,513 |
|
|
47,150 |
|
4.11 |
% |
|
Time deposits, greater than $250,000 |
|
803,187 |
|
|
39,027 |
|
4.86 |
% |
|
|
742,839 |
|
|
29,687 |
|
4.00 |
% |
|
Total interest-bearing deposits |
|
2,532,804 |
|
|
108,381 |
|
4.28 |
% |
|
|
2,502,707 |
|
|
89,042 |
|
3.56 |
% |
|
FHLB advances |
|
162,705 |
|
|
2,217 |
|
1.36 |
% |
|
|
172,219 |
|
|
2,869 |
|
1.67 |
% |
|
Long-term debt |
|
119,324 |
|
|
5,182 |
|
4.34 |
% |
|
|
169,182 |
|
|
8,477 |
|
5.01 |
% |
|
Subordinated debentures |
|
15,039 |
|
|
1,517 |
|
10.09 |
% |
|
|
14,821 |
|
|
1,474 |
|
9.95 |
% |
|
Total interest-bearing liabilities |
|
2,829,872 |
|
|
117,297 |
|
4.14 |
% |
|
|
2,858,929 |
|
|
101,862 |
|
3.56 |
% |
| Noninterest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
531,458 |
|
|
|
|
|
|
|
|
602,291 |
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
53,970 |
|
|
|
|
|
|
|
|
59,562 |
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
585,428 |
|
|
|
|
|
|
|
|
661,853 |
|
|
|
|
|
|
| Shareholders' equity |
|
511,470 |
|
|
|
|
|
|
|
|
500,540 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
3,926,770 |
|
|
|
|
|
|
|
$ |
4,021,322 |
|
|
|
|
|
|
| Net interest income / interest
rate spreads |
|
|
|
$ |
99,463 |
|
1.74 |
% |
|
|
|
|
$ |
119,384 |
|
2.30 |
% |
| Net interest margin |
|
|
|
|
|
|
2.70 |
% |
|
|
|
|
|
|
|
3.16 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of deposits |
$ |
3,064,262 |
|
$ |
108,381 |
|
3.54 |
% |
|
$ |
3,104,998 |
|
$ |
89,042 |
|
2.87 |
% |
| Total cost of funds |
$ |
3,361,330 |
|
$ |
117,297 |
|
3.49 |
% |
|
$ |
3,461,220 |
|
$ |
101,862 |
|
2.94 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(1) |
Includes income and average balances for interest-earning time
deposits and other miscellaneous interest-earning assets. |
| (2) |
Interest income and average rates
for tax-exempt securities are presented on a tax-equivalent
basis. |
| (3) |
Average loan balances include
nonaccrual loans. Interest income on loans includes the effects of
discount accretion and net deferred loan origination fees and costs
accounted for as yield adjustments. |
| |
|
| |
|
|
|
|
|
|
RBB BANCORP AND SUBSIDIARIES SELECTED
FINANCIAL HIGHLIGHTS (Unaudited) |
| |
|
|
|
|
|
| |
At or for the Three Months Ended |
|
|
At or for the Year Ended December 31, |
|
| |
December 31, |
|
September 30, |
|
|
December 31, |
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Per share data (common
stock) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value |
$ |
28.66 |
|
|
$ |
28.81 |
|
|
$ |
27.47 |
|
|
$ |
28.66 |
|
|
$ |
27.47 |
|
| Tangible book value (1) |
$ |
24.51 |
|
|
$ |
24.64 |
|
|
$ |
23.48 |
|
|
$ |
24.51 |
|
|
$ |
23.48 |
|
| Performance
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets,
annualized |
|
0.44 |
% |
|
|
0.72 |
% |
|
|
1.20 |
% |
|
|
0.68 |
% |
|
|
1.06 |
% |
| Return on average
shareholders' equity, annualized |
|
3.41 |
% |
|
|
5.47 |
% |
|
|
9.48 |
% |
|
|
5.21 |
% |
|
|
8.48 |
% |
| Return on average tangible
common equity, annualized (1) |
|
3.98 |
% |
|
|
6.40 |
% |
|
|
11.12 |
% |
|
|
6.09 |
% |
|
|
9.97 |
% |
| Noninterest income to average
assets, annualized |
|
0.27 |
% |
|
|
0.59 |
% |
|
|
0.73 |
% |
|
|
0.39 |
% |
|
|
0.37 |
% |
| Noninterest expense to average
assets, annualized |
|
1.76 |
% |
|
|
1.78 |
% |
|
|
1.63 |
% |
|
|
1.76 |
% |
|
|
1.76 |
% |
| Yield on average earning
assets |
|
5.79 |
% |
|
|
5.94 |
% |
|
|
5.82 |
% |
|
|
5.88 |
% |
|
|
5.86 |
% |
| Yield on average loans |
|
6.03 |
% |
|
|
6.13 |
% |
|
|
5.96 |
% |
|
|
6.07 |
% |
|
|
6.06 |
% |
| Cost of average total deposits
(2) |
|
3.35 |
% |
|
|
3.63 |
% |
|
|
3.38 |
% |
|
|
3.54 |
% |
|
|
2.87 |
% |
| Cost of average
interest-bearing deposits |
|
4.06 |
% |
|
|
4.39 |
% |
|
|
4.08 |
% |
|
|
4.28 |
% |
|
|
3.56 |
% |
| Cost of average
interest-bearing liabilities |
|
3.94 |
% |
|
|
4.24 |
% |
|
|
4.00 |
% |
|
|
4.14 |
% |
|
|
3.56 |
% |
| Net interest spread |
|
1.85 |
% |
|
|
1.70 |
% |
|
|
1.82 |
% |
|
|
1.74 |
% |
|
|
2.30 |
% |
| Net interest margin |
|
2.76 |
% |
|
|
2.68 |
% |
|
|
2.73 |
% |
|
|
2.70 |
% |
|
|
3.16 |
% |
| Efficiency ratio (3) |
|
61.48 |
% |
|
|
57.51 |
% |
|
|
49.58 |
% |
|
|
60.30 |
% |
|
|
52.64 |
% |
| Common stock dividend payout
ratio |
|
64.00 |
% |
|
|
41.03 |
% |
|
|
25.00 |
% |
|
|
43.54 |
% |
|
|
28.57 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(1) |
Non-GAAP measure. See Non–GAAP reconciliations set forth at the end
of this press release. |
|
(2) |
Total deposits include non-interest bearing deposits and
interest-bearing deposits. |
|
(3) |
Ratio calculated by dividing noninterest expense by the sum of net
interest income before provision for credit losses and noninterest
income. |
|
|
|
| |
|
|
|
RBB BANCORP AND SUBSIDIARIESSELECTED
FINANCIAL
HIGHLIGHTS(Unaudited)(Dollars in
thousands) |
| |
|
|
| |
At or for the quarter ended |
|
| |
December 31, |
|
|
September 30, |
|
|
December 31, |
|
| |
2024 |
|
|
2024 |
|
|
2023 |
|
|
Credit Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
| Special mention loans |
$ |
65,329 |
|
|
$ |
77,501 |
|
|
$ |
32,842 |
|
| Special mention loans to total
loans |
|
2.14 |
% |
|
|
2.51 |
% |
|
|
1.08 |
% |
| Substandard loans HFI |
$ |
89,141 |
|
|
$ |
79,831 |
|
|
$ |
61,099 |
|
| Substandard loans HFS |
$ |
11,195 |
|
|
$ |
— |
|
|
$ |
— |
|
| Substandard loans HFI to total
loans HFI |
|
2.92 |
% |
|
|
2.58 |
% |
|
|
2.02 |
% |
| Loans 30-89 days past due,
excluding nonperforming loans |
$ |
22,086 |
|
|
$ |
10,625 |
|
|
$ |
16,803 |
|
| Loans 30-89 days past due,
excluding nonperforming loans, to total loans |
|
0.72 |
% |
|
|
0.34 |
% |
|
|
0.55 |
% |
| Nonperforming loans HFI |
$ |
69,843 |
|
|
$ |
60,662 |
|
|
$ |
31,619 |
|
| Nonperforming loans HFS |
$ |
11,195 |
|
|
$ |
— |
|
|
$ |
— |
|
| OREO |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Nonperforming assets |
$ |
81,038 |
|
|
$ |
60,662 |
|
|
$ |
31,619 |
|
| Nonperforming loans HFI to
total loans HFI |
|
2.29 |
% |
|
|
1.96 |
% |
|
|
1.04 |
% |
| Nonperforming assets to total
assets |
|
2.03 |
% |
|
|
1.52 |
% |
|
|
0.79 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses |
$ |
47,729 |
|
|
$ |
43,685 |
|
|
$ |
41,903 |
|
| Allowance for loan losses to
total loans HFI |
|
1.56 |
% |
|
|
1.41 |
% |
|
|
1.38 |
% |
| Allowance for loan losses to
nonperforming loans HFI |
|
68.34 |
% |
|
|
72.01 |
% |
|
|
132.52 |
% |
| Net charge-offs |
$ |
2,006 |
|
|
$ |
1,201 |
|
|
$ |
109 |
|
| Net charge-offs to average
loans |
|
0.26 |
% |
|
|
0.16 |
% |
|
|
0.01 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital
ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
| Tangible common equity to
tangible assets (2) |
|
11.08 |
% |
|
|
11.13 |
% |
|
|
11.06 |
% |
| Tier 1 leverage ratio |
|
11.92 |
% |
|
|
12.19 |
% |
|
|
11.99 |
% |
| Tier 1 common capital to
risk-weighted assets |
|
17.94 |
% |
|
|
18.16 |
% |
|
|
19.07 |
% |
| Tier 1 capital to
risk-weighted assets |
|
18.52 |
% |
|
|
18.75 |
% |
|
|
19.69 |
% |
| Total capital to risk-weighted
assets |
|
24.49 |
% |
|
|
24.80 |
% |
|
|
25.92 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(1 |
) |
December 31, 2024 capital
ratios are preliminary. |
|
(2 |
) |
Non-GAAP measure. See Non-GAAP reconciliations set forth
at the end of this press release. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
RBB BANCORP AND SUBSIDIARIES SELECTED
FINANCIAL HIGHLIGHTS (Unaudited) |
| |
|
|
|
|
|
|
|
| Loan Portfolio
Detail |
As of December 31, 2024 |
|
As of September 30, 2024 |
|
|
As of December 31, 2023 |
|
| (dollars in
thousands) |
$ |
|
% |
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
| Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
129,585 |
|
4.2 |
% |
|
$ |
128,861 |
|
|
4.2 |
% |
|
$ |
130,096 |
|
|
4.3 |
% |
|
SBA |
|
47,263 |
|
1.5 |
% |
|
|
48,089 |
|
|
1.6 |
% |
|
|
52,074 |
|
|
1.7 |
% |
|
Construction and land development |
|
173,290 |
|
5.7 |
% |
|
|
180,196 |
|
|
5.8 |
% |
|
|
181,469 |
|
|
6.0 |
% |
|
Commercial real estate (1) |
|
1,201,420 |
|
39.3 |
% |
|
|
1,252,682 |
|
|
40.5 |
% |
|
|
1,167,857 |
|
|
38.5 |
% |
|
Single-family residential mortgages |
|
1,494,022 |
|
48.9 |
% |
|
|
1,473,396 |
|
|
47.7 |
% |
|
|
1,487,796 |
|
|
49.1 |
% |
|
Other loans |
|
7,650 |
|
0.4 |
% |
|
|
8,672 |
|
|
0.2 |
% |
|
|
12,569 |
|
|
0.4 |
% |
|
Total loans (2) |
$ |
3,053,230 |
|
100.0 |
% |
|
$ |
3,091,896 |
|
|
100.0 |
% |
|
$ |
3,031,861 |
|
|
100.0 |
% |
|
Allowance for loan losses |
|
(47,729 |
) |
|
|
|
(43,685 |
) |
|
|
|
|
|
(41,903 |
) |
|
|
|
|
Total loans, net |
$ |
3,005,501 |
|
|
|
$ |
3,048,211 |
|
|
|
|
|
$ |
2,989,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
|
(1) |
Includes non-farm and non-residential loans, multi-family
residential loans and non-owner occupied single family residential
loans. |
|
(2) |
Net of discounts and deferred fees and costs of $488, $467, and
$542 as of December 31, 2024, September 30, 2024,
and December 31, 2023, respectively. |
|
|
|
| |
|
|
|
|
|
|
|
| Deposits |
As of December 31, 2024 |
|
As of September 30, 2024 |
|
|
As of December 31, 2023 |
|
| (dollars in
thousands) |
$ |
|
% |
|
$ |
|
% |
|
|
$ |
|
% |
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
563,012 |
|
18.3 |
% |
|
$ |
543,623 |
|
17.6 |
% |
|
$ |
539,621 |
|
17.0 |
% |
|
Savings, NOW and money market accounts |
|
663,034 |
|
21.5 |
% |
|
|
666,089 |
|
21.5 |
% |
|
|
632,729 |
|
19.9 |
% |
|
Time deposits, $250,000 and under |
|
882,438 |
|
28.6 |
% |
|
|
926,877 |
|
30.0 |
% |
|
|
876,918 |
|
27.6 |
% |
|
Time deposits, greater than $250,000 |
|
827,854 |
|
26.8 |
% |
|
|
808,304 |
|
26.1 |
% |
|
|
719,892 |
|
22.7 |
% |
|
Wholesale deposits (1) |
|
147,451 |
|
4.8 |
% |
|
|
147,291 |
|
4.8 |
% |
|
|
405,600 |
|
12.8 |
% |
|
Total deposits |
$ |
3,083,789 |
|
100.0 |
% |
|
$ |
3,092,184 |
|
100.0 |
% |
|
$ |
3,174,760 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________
|
(1) |
Includes brokered deposits, collateralized deposits from the
State of California, and deposits acquired through internet
listing services. |
|
|
|
Non-GAAP Reconciliations
Tangible Book Value
Reconciliations
Tangible book value per share is a non-GAAP
disclosure. Management measures tangible book value per
share to assess the Company’s capital strength and business
performance and believes this is helpful to investors as
additional tools for further understanding our performance. The
following is a reconciliation of tangible book value to the Company
shareholders’ equity computed in accordance with GAAP, as well as a
calculation of tangible book value per share as of
December 31, 2024, September 30, 2024, and
December 31, 2023.
| |
|
|
|
|
|
|
|
|
|
|
| (dollars in thousands,
except share and per share data) |
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|
Tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders'
equity |
$ |
507,877 |
|
|
$ |
509,728 |
|
|
$ |
511,260 |
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Core deposit intangible |
|
(2,011 |
) |
|
|
(2,194 |
) |
|
|
(2,795 |
) |
| Tangible common equity |
$ |
434,368 |
|
|
$ |
436,036 |
|
|
$ |
436,967 |
|
| Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
| Total assets-GAAP |
$ |
3,992,477 |
|
|
$ |
3,990,477 |
|
|
$ |
4,026,025 |
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Core deposit intangible |
|
(2,011 |
) |
|
|
(2,194 |
) |
|
|
(2,795 |
) |
| Tangible assets |
$ |
3,918,968 |
|
|
$ |
3,916,785 |
|
|
$ |
3,951,732 |
|
| Common shares outstanding |
|
17,720,416 |
|
|
|
17,693,416 |
|
|
|
18,609,179 |
|
| Common equity to assets
ratio |
|
12.72 |
% |
|
|
12.77 |
% |
|
|
12.70 |
% |
| Tangible common equity to
tangible assets ratio |
|
11.08 |
% |
|
|
11.13 |
% |
|
|
11.06 |
% |
| Book value per share |
$ |
28.66 |
|
|
$ |
28.81 |
|
|
$ |
27.47 |
|
| Tangible book value per
share |
$ |
24.51 |
|
|
$ |
24.64 |
|
|
$ |
23.48 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Return on Average Tangible Common
Equity
Management measures return on average tangible
common equity (“ROATCE”) to assess the Company’s capital strength
and business performance and believes this is helpful to
investors as an additional tool for further understanding our
performance. Tangible equity excludes goodwill and other intangible
assets (excluding mortgage servicing rights) and is reviewed
by banking and financial institution regulators when assessing a
financial institution’s capital adequacy. This non-GAAP financial
measure should not be considered a substitute for operating results
determined in accordance with GAAP and may not be comparable to
other similarly titled measures used by other companies. The
following table reconciles ROATCE to its most comparable GAAP
measure:
| |
|
|
|
|
|
| |
Three Months Ended |
|
|
Year Ended December 31, |
|
| (dollars in
thousands) |
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|
2024 |
|
|
2023 |
|
|
Net income available to common shareholders |
$ |
4,385 |
|
|
$ |
6,999 |
|
|
$ |
12,073 |
|
|
$ |
26,665 |
|
|
$ |
42,465 |
|
| Average shareholders'
equity |
|
512,208 |
|
|
|
508,720 |
|
|
|
505,184 |
|
|
|
511,470 |
|
|
|
500,540 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average goodwill |
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Average core deposit intangible |
|
(2,129 |
) |
|
|
(2,326 |
) |
|
|
(2,935 |
) |
|
|
(2,425 |
) |
|
|
(3,282 |
) |
| Adjusted average tangible
common equity |
$ |
438,581 |
|
|
$ |
434,896 |
|
|
$ |
430,751 |
|
|
$ |
437,547 |
|
|
$ |
425,760 |
|
| Return on average common
equity |
|
3.41 |
% |
|
|
5.47 |
% |
|
|
9.48 |
% |
|
|
5.21 |
% |
|
|
8.48 |
% |
| Return on average tangible
common equity |
|
3.98 |
% |
|
|
6.40 |
% |
|
|
11.12 |
% |
|
|
6.09 |
% |
|
|
9.97 |
% |
RBB Bancorp (NASDAQ:RBB)
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