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 ended June 30, 2024.
Second Quarter 2024 Highlights
- Net income totaled $7.2 million, or $0.39 diluted earnings per
share.
- Return on average assets of 0.76%, compared to 0.81% for the
quarter ended March 31, 2024.
- Net interest margin of 2.67%, down two basis points, compared
to 2.69% for the quarter ended March 31, 2024.
- Repurchased 448,190 shares of common stock for $8.1 million
during the quarter ended Jun 30, 2024.
- Book value and tangible book value per share(1) increased to
$28.12 and $24.06 at June 30, 2024, up from $27.67 and $23.68 at
March 31, 2024.
The Company reported net income of
$7.2 million, or $0.39 diluted earnings per share, for
the quarter ended June 30, 2024, compared to net income
of $8.0 million, or $0.43 diluted earnings per share, for
the quarter ended March 31, 2024.
“We saw further signs of stabilization in the
second quarter with modest loan growth and unchanged funding
costs,” said David Morris, Chief Executive Officer of RBB Bancorp.
“Net interest margin declined 2 basis points, but we are cautiously
optimistic that it will begin to expand in the third and fourth
quarter. We did see an increase in non-performing loans in the
second quarter, due primarily to three loans, which have sufficient
collateral at the end of the quarter. Our loan production of over
$115 million resulted in $20 million in net loan growth
and higher gain on sale of loans. We are seeing positive loan
pipeline activity and as a result expect to have ongoing net loan
growth.”
“The Board of Directors appreciates all of the
hard work that went into stabilizing the business in a very
difficult banking environment,” said Christina Kao, Chair of the
Board of Directors. “We’re now ready to build on the Bank’s
well-deserved reputation as one of the premier Asian-American
financial institutions to serve our clients and enhance shareholder
value.”
(1) Reconciliations of the non–U.S.
generally accepted accounting principles (“GAAP”) measures included
at the end of this press release.
Net Interest Income and Net Interest Margin
Net interest income was
$24.0 million for the second quarter of 2024,
compared to $24.9 million for the first quarter
of 2024. The $912,000 decrease in net interest income was due
to a decrease in interest income of $1.9 million offset by a
decrease in interest expense of $997,000. The decrease in interest
income was due to lower interest income on interest-bearing
deposits in other financial institutions of $1.7 million and
loans of $227,000. Interest and fees on loans included a reversal
of interest income for loans that migrated to nonaccrual of
$710,000 for the second quarter of 2024 compared to $190,000
for the first quarter. The decrease in interest expense
was due to lower average interest-bearing deposits,
as brokered deposits were replaced with retail deposits.
Net interest margin (“NIM”) was 2.67% for
the second quarter of 2024, a decrease of two basis
points from 2.69% for the first quarter of 2024. The
decrease was due to a 3 basis point decrease in the
yield on average interest-earning assets combined
with no change in the overall cost of funds. The yield on
average interest-earning assets decreased to 5.89% for the
second quarter of 2024 from 5.92% for the first quarter
of 2024 due mainly to a 3 basis point decrease in
the yield on average loans to 6.04% for the
second quarter of 2024 combined with a change in the mix of
average-earnings assets. Average loans represented 84% of
average interest-earning assets in the second quarter of 2024
compared to 81% in the first quarter of 2024. During the second
quarter, $22.5 million in loans migrated to nonaccrual, which
reduced the second quarter's average loan yield by 9 basis points
and the NIM by 8 basis points. In comparison, during the first
quarter of 2024, $7.7 million in loans migrated to
nonaccrual, which reduced the first quarter's average loan
yield by 2 basis points and the NIM by 2 basis
points. The overall cost of funds remained flat at 3.59%
due to the average cost of interest-bearing deposits
increasing 4 basis points to 4.36% in the second quarter
of 2024, which was offset by an improvement in the overall
funding mix. The ratio of average noninterest-bearing
deposits to average total funding sources increased to
16.1% from 15.5%.
Provision for Credit Losses
The Company recorded a $557,000 provision
for credit losses for the second quarter of 2024 compared
to no provision for credit losses for the
first quarter of 2024. The second quarter provision
took into consideration factors including changes in the loan
portfolio mix, ongoing uncertainty in the economy related to
inflation and the outlook for market interest
rates, and credit quality metrics, including higher
nonperforming loans at the end of the second quarter of
2024 compared to the end of the first quarter of 2024.
Noninterest Income
Noninterest income for the second quarter
of 2024 was $3.5 million, an increase of $116,000 from
$3.4 million for the first quarter of
2024. This increase was due to income of
$359,000 from an equity investment (included in other income)
and $139,000 in higher gain on sale of loans, partially offset
by lower net gain on other real estate owned ("OREO")
of $432,000. OREO totaling $1.1 million was sold
during the second quarter of 2024 for a gain of $292,000. This
compared to a $560,000 gain on transfer of loans to OREO and
net gain on the sale of OREO of $164,000 in the
first quarter of 2024. There was no OREO outstanding at June
30, 2024.
Noninterest Expense
Noninterest expense for the second quarter
of 2024 was $17.1 million, an increase of $155,000
from $17.0 million for the first quarter of
2024. This increase was due primarily to higher legal and
professional expenses and other expenses, partially offset by
a decrease in salaries and employee benefits expense due to the
timing of taxes and benefits. The increase in legal and
professional expenses are due primarily to legal expenses for
credit-related matters and an insurance reimbursement during
the first quarter of 2024. There was no similar insurance
reimbursement in the second quarter of 2024. The annualized
noninterest expenses divided by average assets for the
second quarter of 2024 was 1.79%, up from 1.72% for
the first quarter of 2024.
Income Taxes
The effective tax rate was 25.9% for the
second quarter of 2024 and 28.8% for the
first quarter of 2024. The decrease in the effective tax rate
in the second quarter is due in part to utilizing a higher level
of tax credits. The effective tax rate for 2024 is
estimated to be 28.0%.
Balance Sheet
At June 30, 2024, total assets were
$3.9 billion, a $9.8 million decrease compared to
March 31, 2024, and a $207.4 million decrease compared to
June 30, 2023.
Loan and Securities Portfolio
Loans held for investment, net of deferred fees
and discounts, totaled $3.0 billion as of June 30,
2024, an increase of $20.4 million from
March 31, 2024. The increase from March 31,
2024 was primarily due to an $11.7 million increase
in commercial real estate ("CRE") loans,
a $5.2 million increase in commercial and
industrial ("C&I") loans, a $4.4 million increase in
construction and land development ("C&D") loans and a
$4.3 million increase in single-family residential ("SFR")
mortgages, partially offset by a $4.4 million decrease
in Small Business Administration ("SBA") loans. The
loan to deposit ratio was 99.4% at June 30, 2024, compared
to 98.6% at March 31, 2024 and 99.3% at
June 30, 2023.
As of June 30, 2024, available-for-sale
securities totaled $325.6 million, a decrease of $9.6
million from March 31, 2024. As of June 30, 2024, net
unrealized losses totaled $30.2 million, a $44,000
decrease due to increases in market interest rates, when
compared to net unrealized losses as of March 31,
2024.
Deposits
Total deposits were $3.0 billion as of
June 30, 2024, a $4.7 million decrease compared
to March 31, 2024. This decrease was due to a decrease
in interest-bearing deposits, while noninterest-bearing
deposits increased $3.5 million to
$543.0 million. The decrease in interest-bearing deposits
included a decrease in time deposits of $13.1 million,
offset by an increase in non-maturity deposits of
$4.9 million. The decrease in time deposits included a
$76.9 million decrease in higher cost wholesale deposits
(brokered deposits, collateralized State of California certificates
of deposit and deposits acquired through internet listing
services). Wholesale deposits totaled $120.7 million at
June 30, 2024, and $197.6 million at March 31, 2024.
Noninterest-bearing deposits represented 18.0% of total deposits at
June 30, 2024 compared to 17.8% at March 31, 2024.
Credit Quality
Nonperforming assets totaled $54.6 million, or
1.41% of total assets, at June 30, 2024, compared to
$37.0 million, or 0.95% of total assets, at
March 31, 2024. The $17.6 million increase in
nonperforming assets was due to an $18.7 million increase
in nonperforming loans and a decrease of $1.1 million in OREO.
The increase in nonperforming loans was mostly due to three
loans that migrated
to nonaccrual totaling $22.0 million,
consisting of a C&D loan, a CRE loan and a
C&I loan. The other nonperforming loan activity for the
second quarter of 2024 included additions of $540,000, payoffs
or paydowns of $3.0 million, loans that migrated to accruing
status of $784,000, and nonaccrual loan charge-offs of $117,000. As
previously noted, OREO totaling $1.1 million was sold during the
second quarter of 2024 for a gain of $292,000.
Special mention loans totaled
$19.5 million, or 0.64% of total loans, at
June 30, 2024, compared to $20.6 million, or 0.68%
of total loans, at March 31, 2024. The decrease
was due to downgrades to substandard loans of $1.4 million,
and loan paydowns of $711,000, offset by additions of
$1.0 million.
Substandard loans totaled $63.1 million, or
2.07% of total loans, at June 30, 2024, compared to
$57.2 million, or 1.89% of total loans, at March 31,
2024. The $5.9 million increase was primarily due to a
$10.0 million C&D loan downgraded from pass to
substandard and downgrades from special mention loans
totaling $1.4 million, offset by loan paydowns of $6.0
million, upgrades to pass loans of $856,000, and charge-offs of
$541,000.
30-89 day delinquent loans, excluding
nonperforming loans, decreased $9.7 million
to $11.3 million as of June 30, 2024, compared
to $21.0 million as of March 31, 2024. The decrease
in past due loans was due to $12.7 million in loans
that migrated to nonaccrual, $4.4 million in loans that
migrated back to past due for less than 30 days, and
$1.6 million in loan payoffs or paydowns, partially
offset by $9.0 million in new delinquent loans.
As of June 30, 2024, the allowance for
credit losses totaled $42.4 million and was comprised of an
allowance for loan losses of $41.7 million and a reserve for
unfunded commitments of $624,000 (included in “Accrued interest and
other liabilities”). This compares to the allowance for credit
losses of $42.4 million comprised of an allowance for loan
losses of $41.7 million and a reserve for unfunded commitments
of $671,000 at March 31, 2024. The allowance for
credit losses for the second quarter of 2024 was impacted by a
$557,000 provision for credit losses, net charge-offs of
$551,000, and a reduction in specific reserves of $14,000. Although
nonperforming loans increased, specific reserves decreased based on
the level of collateral for individually reviewed, collateral
dependent loans. Charge-offs in the second quarter of 2024
were primarily related to a CRE non-owner occupied
loan that migrated to nonaccrual and
was written-down to its estimated fair value. The
allowance for loan losses as a percentage of loans held
for investment was 1.37% at June 30, 2024, compared to
1.38% at March 31, 2024. The allowance for loan
losses as a percentage of nonperforming loans was 76% at
June 30, 2024, a decrease from 116% at March 31,
2024.
| |
|
For the Three Months EndedJune 30, 2024 |
|
|
For the Six Months EndedJune 30, 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 |
|
$ |
41,688 |
|
|
$ |
671 |
|
|
$ |
42,359 |
|
|
$ |
41,903 |
|
|
$ |
640 |
|
|
$ |
42,543 |
|
| Provision for/(reversal of)
credit losses |
|
|
604 |
|
|
|
(47 |
) |
|
|
557 |
|
|
|
573 |
|
|
|
(16 |
) |
|
|
557 |
|
| Less loans charged-off |
|
|
(567 |
) |
|
|
— |
|
|
|
(567 |
) |
|
|
(781 |
) |
|
|
— |
|
|
|
(781 |
) |
| Recoveries on loans
charged-off |
|
|
16 |
|
|
|
— |
|
|
|
16 |
|
|
|
46 |
|
|
|
— |
|
|
|
46 |
|
| Ending balance |
|
$ |
41,741 |
|
|
$ |
624 |
|
|
$ |
42,365 |
|
|
$ |
41,741 |
|
|
$ |
624 |
|
|
$ |
42,365 |
|
Shareholders' Equity and Capital
Actions
At June 30, 2024, total
shareholders' equity was $511.3 million,
a $2.7 million decrease compared to March 31, 2024,
and an $11.0 million increase compared to June 30, 2023.
The decrease in shareholders' equity for the
second quarter of 2024 was due to dividends paid of
$3.0 million and share repurchases of $8.1 million,
offset by net earnings of $7.2 million, equity compensation
activity of $1.1 million and lower net unrealized loss on
available-for-sale securities of $67,000. Book value per share
increased to $28.12 from $27.67 and tangible book value
per share(1) increased to $24.06 from $23.68.
On July 18, 2024, the Company
announced the Board of Directors had declared
a common stock cash dividend of $0.16 per share, payable
on August 12, 2024 to shareholders of record on
July 31, 2024.
On February 29, 2024, the Board of
Directors authorized the repurchase of up to 1,000,000 shares of
common stock, of which 508,275 shares were available as of
June 30, 2024. The repurchase program permits shares to be
repurchased in open market or private transactions, through block
trades, and pursuant to any trading plan that may be adopted in
accordance with Securities and Exchange Commission (“SEC”) Rules
10b5-1 and 10b-8. The Company repurchased 448,190 shares at a
weighted average share price of $18.01 during the
second quarter of 2024.
Contact: Lynn
Hopkins, Chief Financial Officer(213)
716-8066hopkins@rbbusa.com
(1) Reconciliations of the non–U.S. generally accepted
accounting principles (“GAAP”) measures included at the end of this
press release.
Corporate Overview
RBB Bancorp is a community-based financial
holding company headquartered in Los Angeles,
California. As of June 30, 2024, the Company had total
assets of $3.9 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, July 23,
2024, to discuss the Company’s
second 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
723739, conference ID RBBQ224. A replay of the call will
be made available at 1-877-481-4010 or
1-919-882-2331, the passcode is 50850, approximately
one hour after the conclusion of the call and will remain available
through August 6, 2024.
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 Bank’s ability
to comply with the requirements of the consent order we have
entered into with the Federal Deposit Insurance Corporation
(“FDIC”) and the California Department of Financial Protection and
Innovation (“DFPI”) and the possibility that we may be required to
incur additional expenses or be subject to additional regulatory
action, if we are unable to timely and satisfactorily comply with
the consent order; 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;
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
and in the Middle East, 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 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 DFPI; 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.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RBB BANCORP AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
| |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
|
$ |
252,769 |
|
|
$ |
269,243 |
|
|
$ |
431,373 |
|
|
$ |
330,791 |
|
|
$ |
246,325 |
|
| Interest-bearing time deposits
with financial institutions |
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
| Investment securities
available for sale |
|
|
325,582 |
|
|
|
335,194 |
|
|
|
318,961 |
|
|
|
354,378 |
|
|
|
391,116 |
|
| Investment securities held to
maturity |
|
|
5,200 |
|
|
|
5,204 |
|
|
|
5,209 |
|
|
|
5,214 |
|
|
|
5,718 |
|
| Mortgage loans held for
sale |
|
|
3,146 |
|
|
|
3,903 |
|
|
|
1,911 |
|
|
|
62 |
|
|
|
555 |
|
| Loans held for investment |
|
|
3,047,712 |
|
|
|
3,027,361 |
|
|
|
3,031,861 |
|
|
|
3,120,952 |
|
|
|
3,195,995 |
|
| Allowance for loan losses |
|
|
(41,741 |
) |
|
|
(41,688 |
) |
|
|
(41,903 |
) |
|
|
(42,430 |
) |
|
|
(43,092 |
) |
|
Net loans held for investment |
|
|
3,005,971 |
|
|
|
2,985,673 |
|
|
|
2,989,958 |
|
|
|
3,078,522 |
|
|
|
3,152,903 |
|
| Premises and equipment,
net |
|
|
25,049 |
|
|
|
25,363 |
|
|
|
25,684 |
|
|
|
26,134 |
|
|
|
26,600 |
|
| Federal Home Loan Bank (FHLB)
stock |
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
| Cash surrender value of bank
owned life insurance |
|
|
59,486 |
|
|
|
59,101 |
|
|
|
58,719 |
|
|
|
58,346 |
|
|
|
57,989 |
|
| Goodwill |
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
| Servicing assets |
|
|
7,545 |
|
|
|
7,794 |
|
|
|
8,110 |
|
|
|
8,439 |
|
|
|
8,702 |
|
| Core deposit intangibles |
|
|
2,394 |
|
|
|
2,594 |
|
|
|
2,795 |
|
|
|
3,010 |
|
|
|
3,246 |
|
| Right-of-use assets |
|
|
30,530 |
|
|
|
31,231 |
|
|
|
29,803 |
|
|
|
29,949 |
|
|
|
28,677 |
|
| Accrued interest and other
assets |
|
|
63,416 |
|
|
|
65,608 |
|
|
|
66,404 |
|
|
|
87,411 |
|
|
|
66,689 |
|
|
Total assets |
|
$ |
3,868,186 |
|
|
$ |
3,878,006 |
|
|
$ |
4,026,025 |
|
|
$ |
4,069,354 |
|
|
$ |
4,075,618 |
|
| Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
542,971 |
|
|
$ |
539,517 |
|
|
$ |
539,621 |
|
|
$ |
572,393 |
|
|
$ |
585,746 |
|
|
Savings, NOW and money market accounts |
|
|
647,770 |
|
|
|
642,840 |
|
|
|
632,729 |
|
|
|
608,020 |
|
|
|
598,546 |
|
|
Time deposits, $250,000 and under |
|
|
1,014,189 |
|
|
|
1,083,898 |
|
|
|
1,190,821 |
|
|
|
1,237,831 |
|
|
|
1,275,476 |
|
|
Time deposits, greater than $250,000 |
|
|
818,675 |
|
|
|
762,074 |
|
|
|
811,589 |
|
|
|
735,828 |
|
|
|
715,648 |
|
|
Total deposits |
|
|
3,023,605 |
|
|
|
3,028,329 |
|
|
|
3,174,760 |
|
|
|
3,154,072 |
|
|
|
3,175,416 |
|
| FHLB advances |
|
|
150,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
| Long-term debt, net of
issuance costs |
|
|
119,338 |
|
|
|
119,243 |
|
|
|
119,147 |
|
|
|
174,019 |
|
|
|
173,874 |
|
| Subordinated debentures |
|
|
15,047 |
|
|
|
14,993 |
|
|
|
14,938 |
|
|
|
14,884 |
|
|
|
14,829 |
|
| Lease liabilities - operating
leases |
|
|
32,087 |
|
|
|
32,690 |
|
|
|
31,191 |
|
|
|
31,265 |
|
|
|
29,915 |
|
| Accrued interest and other
liabilities |
|
|
16,818 |
|
|
|
18,765 |
|
|
|
24,729 |
|
|
|
42,603 |
|
|
|
31,294 |
|
|
Total liabilities |
|
|
3,356,895 |
|
|
|
3,364,020 |
|
|
|
3,514,765 |
|
|
|
3,566,843 |
|
|
|
3,575,328 |
|
| Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
|
266,160 |
|
|
|
271,645 |
|
|
|
271,925 |
|
|
|
277,462 |
|
|
|
277,462 |
|
| Additional paid-in
capital |
|
|
3,456 |
|
|
|
3,348 |
|
|
|
3,623 |
|
|
|
3,579 |
|
|
|
3,436 |
|
| Retained Earnings |
|
|
262,518 |
|
|
|
259,903 |
|
|
|
255,152 |
|
|
|
247,159 |
|
|
|
241,725 |
|
| Non-controlling interest |
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
| Accumulated other
comprehensive loss, net of tax |
|
|
(20,915 |
) |
|
|
(20,982 |
) |
|
|
(19,512 |
) |
|
|
(25,761 |
) |
|
|
(22,405 |
) |
|
Total shareholders' equity |
|
|
511,291 |
|
|
|
513,986 |
|
|
|
511,260 |
|
|
|
502,511 |
|
|
|
500,290 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
3,868,186 |
|
|
$ |
3,878,006 |
|
|
$ |
4,026,025 |
|
|
$ |
4,069,354 |
|
|
$ |
4,075,618 |
|
| |
|
|
|
|
|
|
|
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 Six Months Ended |
|
| |
|
June 30,2024 |
|
|
March 31,2024 |
|
|
June 30,2023 |
|
|
June 30,2024 |
|
|
June 30,2023 |
|
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
45,320 |
|
|
$ |
45,547 |
|
|
$ |
50,810 |
|
|
$ |
90,867 |
|
|
$ |
100,752 |
|
|
Interest on interest-bearing deposits |
|
|
3,353 |
|
|
|
5,040 |
|
|
|
2,112 |
|
|
|
8,393 |
|
|
|
2,903 |
|
|
Interest on investment securities |
|
|
3,631 |
|
|
|
3,611 |
|
|
|
3,574 |
|
|
|
7,242 |
|
|
|
6,110 |
|
|
Dividend income on FHLB stock |
|
|
327 |
|
|
|
331 |
|
|
|
259 |
|
|
|
658 |
|
|
|
524 |
|
|
Interest on federal funds sold and other |
|
|
255 |
|
|
|
266 |
|
|
|
247 |
|
|
|
521 |
|
|
|
464 |
|
|
Total interest and dividend income |
|
|
52,886 |
|
|
|
54,795 |
|
|
|
57,002 |
|
|
|
107,681 |
|
|
|
110,753 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on savings deposits, NOW and money market accounts |
|
|
4,953 |
|
|
|
4,478 |
|
|
|
2,778 |
|
|
|
9,431 |
|
|
|
5,074 |
|
|
Interest on time deposits |
|
|
21,850 |
|
|
|
23,322 |
|
|
|
19,169 |
|
|
|
45,172 |
|
|
|
32,575 |
|
|
Interest on long-term debt and subordinated debentures |
|
|
1,679 |
|
|
|
1,679 |
|
|
|
2,550 |
|
|
|
3,358 |
|
|
|
5,089 |
|
|
Interest on other borrowed funds |
|
|
439 |
|
|
|
439 |
|
|
|
579 |
|
|
|
878 |
|
|
|
1,988 |
|
|
Total interest expense |
|
|
28,921 |
|
|
|
29,918 |
|
|
|
25,076 |
|
|
|
58,839 |
|
|
|
44,726 |
|
|
Net interest income before provision for credit losses |
|
|
23,965 |
|
|
|
24,877 |
|
|
|
31,926 |
|
|
|
48,842 |
|
|
|
66,027 |
|
| Provision for credit
losses |
|
|
557 |
|
|
|
— |
|
|
|
380 |
|
|
|
557 |
|
|
|
2,394 |
|
|
Net interest income after provision for credit losses |
|
|
23,408 |
|
|
|
24,877 |
|
|
|
31,546 |
|
|
|
48,285 |
|
|
|
63,633 |
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
1,064 |
|
|
|
992 |
|
|
|
1,120 |
|
|
|
2,056 |
|
|
|
2,143 |
|
|
Gain on sale of loans |
|
|
451 |
|
|
|
312 |
|
|
|
18 |
|
|
|
763 |
|
|
|
47 |
|
|
Loan servicing fees, net of amortization |
|
|
579 |
|
|
|
589 |
|
|
|
606 |
|
|
|
1,168 |
|
|
|
1,337 |
|
|
Increase in cash surrender value of life insurance |
|
|
385 |
|
|
|
382 |
|
|
|
344 |
|
|
|
767 |
|
|
|
679 |
|
|
Gain on OREO |
|
|
292 |
|
|
|
724 |
|
|
|
— |
|
|
|
1,016 |
|
|
|
— |
|
|
Other income |
|
|
717 |
|
|
|
373 |
|
|
|
405 |
|
|
|
1,090 |
|
|
|
649 |
|
|
Total noninterest income |
|
|
3,488 |
|
|
|
3,372 |
|
|
|
2,493 |
|
|
|
6,860 |
|
|
|
4,855 |
|
| Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
9,533 |
|
|
|
9,927 |
|
|
|
9,327 |
|
|
|
19,460 |
|
|
|
19,191 |
|
|
Occupancy and equipment expenses |
|
|
2,438 |
|
|
|
2,443 |
|
|
|
2,430 |
|
|
|
4,882 |
|
|
|
4,828 |
|
|
Data processing |
|
|
1,466 |
|
|
|
1,420 |
|
|
|
1,356 |
|
|
|
2,886 |
|
|
|
2,655 |
|
|
Legal and professional |
|
|
1,260 |
|
|
|
880 |
|
|
|
2,872 |
|
|
|
2,140 |
|
|
|
5,885 |
|
|
Office expenses |
|
|
352 |
|
|
|
356 |
|
|
|
350 |
|
|
|
708 |
|
|
|
725 |
|
|
Marketing and business promotion |
|
|
189 |
|
|
|
172 |
|
|
|
252 |
|
|
|
361 |
|
|
|
552 |
|
|
Insurance and regulatory assessments |
|
|
981 |
|
|
|
982 |
|
|
|
809 |
|
|
|
1,963 |
|
|
|
1,313 |
|
|
Core deposit premium |
|
|
201 |
|
|
|
201 |
|
|
|
235 |
|
|
|
402 |
|
|
|
472 |
|
|
Other expenses |
|
|
704 |
|
|
|
588 |
|
|
|
886 |
|
|
|
1,291 |
|
|
|
1,807 |
|
|
Total noninterest expense |
|
|
17,124 |
|
|
|
16,969 |
|
|
|
18,517 |
|
|
|
34,093 |
|
|
|
37,428 |
|
|
Income before income taxes |
|
|
9,772 |
|
|
|
11,280 |
|
|
|
15,522 |
|
|
|
21,052 |
|
|
|
31,060 |
|
|
Income tax expense |
|
|
2,527 |
|
|
|
3,244 |
|
|
|
4,573 |
|
|
|
5,771 |
|
|
|
9,141 |
|
|
Net income |
|
$ |
7,245 |
|
|
$ |
8,036 |
|
|
$ |
10,949 |
|
|
$ |
15,281 |
|
|
$ |
21,919 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.39 |
|
|
$ |
0.43 |
|
|
$ |
0.58 |
|
|
$ |
0.83 |
|
|
$ |
1.15 |
|
|
Diluted |
|
$ |
0.39 |
|
|
$ |
0.43 |
|
|
$ |
0.58 |
|
|
$ |
0.82 |
|
|
$ |
1.15 |
|
|
Cash Dividends declared per common share |
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.32 |
|
|
$ |
0.32 |
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
18,375,970 |
|
|
|
18,601,277 |
|
|
|
18,993,483 |
|
|
|
18,488,623 |
|
|
|
18,989,686 |
|
| Diluted |
|
|
18,406,897 |
|
|
|
18,651,702 |
|
|
|
18,995,100 |
|
|
|
18,529,299 |
|
|
|
19,022,242 |
|
| |
|
|
|
|
RBB BANCORP AND SUBSIDIARIESAVERAGE
BALANCE SHEET AND NET INTEREST INCOME
(Unaudited) |
| |
|
|
|
| |
|
For the Three Months Ended |
|
| |
|
June 30, 2024 |
|
|
March 31, 2024 |
|
|
June 30, 2023 |
|
| |
|
Average |
|
|
Interest |
|
|
Yield / |
|
|
Average |
|
|
Interest |
|
|
Yield / |
|
|
Average |
|
|
Interest |
|
|
Yield / |
|
| (tax-equivalent basis,
dollars in thousands) |
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, cash equivalents & other (1) |
|
$ |
271,073 |
|
|
$ |
3,935 |
|
|
|
5.84 |
% |
|
$ |
379,979 |
|
|
$ |
5,637 |
|
|
|
5.97 |
% |
|
$ |
179,023 |
|
|
$ |
2,619 |
|
|
|
5.87 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale (2) |
|
|
318,240 |
|
|
|
3,608 |
|
|
|
4.56 |
% |
|
|
320,015 |
|
|
|
3,589 |
|
|
|
4.51 |
% |
|
|
348,343 |
|
|
|
3,547 |
|
|
|
4.08 |
% |
|
Held to maturity (2) |
|
|
5,203 |
|
|
|
46 |
|
|
|
3.56 |
% |
|
|
5,207 |
|
|
|
46 |
|
|
|
3.55 |
% |
|
|
5,720 |
|
|
|
51 |
|
|
|
3.58 |
% |
|
Mortgage loans held for sale |
|
|
3,032 |
|
|
|
57 |
|
|
|
7.56 |
% |
|
|
1,215 |
|
|
|
26 |
|
|
|
8.61 |
% |
|
|
52 |
|
|
|
1 |
|
|
|
6.65 |
% |
|
Loans held for investment: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
|
2,828,339 |
|
|
|
41,590 |
|
|
|
5.91 |
% |
|
|
2,837,603 |
|
|
|
41,765 |
|
|
|
5.92 |
% |
|
|
3,064,633 |
|
|
|
46,304 |
|
|
|
6.06 |
% |
|
Commercial |
|
|
185,679 |
|
|
|
3,673 |
|
|
|
7.96 |
% |
|
|
179,605 |
|
|
|
3,756 |
|
|
|
8.41 |
% |
|
|
207,493 |
|
|
|
4,503 |
|
|
|
8.70 |
% |
|
Total loans held for investment |
|
|
3,014,018 |
|
|
|
45,263 |
|
|
|
6.04 |
% |
|
|
3,017,208 |
|
|
|
45,521 |
|
|
|
6.07 |
% |
|
|
3,272,126 |
|
|
|
50,807 |
|
|
|
6.23 |
% |
|
Total interest-earning assets |
|
|
3,611,566 |
|
|
$ |
52,909 |
|
|
|
5.89 |
% |
|
|
3,723,624 |
|
|
$ |
54,819 |
|
|
|
5.92 |
% |
|
|
3,805,264 |
|
|
$ |
57,025 |
|
|
|
6.01 |
% |
|
Total noninterest-earning assets |
|
|
239,916 |
|
|
|
|
|
|
|
|
|
|
|
246,341 |
|
|
|
|
|
|
|
|
|
|
|
244,316 |
|
|
|
|
|
|
|
|
|
|
Total average assets |
|
$ |
3,851,482 |
|
|
|
|
|
|
|
|
|
|
$ |
3,969,965 |
|
|
|
|
|
|
|
|
|
|
$ |
4,049,580 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW |
|
|
56,081 |
|
|
|
276 |
|
|
|
1.98 |
% |
|
$ |
58,946 |
|
|
$ |
298 |
|
|
|
2.03 |
% |
|
$ |
59,789 |
|
|
$ |
202 |
|
|
|
1.36 |
% |
|
Money Market |
|
|
431,559 |
|
|
|
3,877 |
|
|
|
3.61 |
% |
|
|
411,751 |
|
|
|
3,526 |
|
|
|
3.44 |
% |
|
|
432,384 |
|
|
|
2,519 |
|
|
|
2.34 |
% |
|
Saving deposits |
|
|
164,913 |
|
|
|
800 |
|
|
|
1.95 |
% |
|
|
157,227 |
|
|
|
654 |
|
|
|
1.67 |
% |
|
|
111,214 |
|
|
|
57 |
|
|
|
0.21 |
% |
|
Time deposits, $250,000 and under |
|
|
1,049,666 |
|
|
|
12,360 |
|
|
|
4.74 |
% |
|
|
1,175,804 |
|
|
|
13,805 |
|
|
|
4.72 |
% |
|
|
1,221,760 |
|
|
|
12,391 |
|
|
|
4.07 |
% |
|
Time deposits, greater than $250,000 |
|
|
772,255 |
|
|
|
9,490 |
|
|
|
4.94 |
% |
|
|
785,172 |
|
|
|
9,517 |
|
|
|
4.88 |
% |
|
|
709,803 |
|
|
|
6,778 |
|
|
|
3.83 |
% |
|
Total interest-bearing deposits |
|
|
2,474,474 |
|
|
|
26,803 |
|
|
|
4.36 |
% |
|
|
2,588,900 |
|
|
|
27,800 |
|
|
|
4.32 |
% |
|
|
2,534,950 |
|
|
|
21,947 |
|
|
|
3.47 |
% |
|
FHLB advances |
|
|
150,000 |
|
|
|
439 |
|
|
|
1.18 |
% |
|
|
150,000 |
|
|
|
439 |
|
|
|
1.18 |
% |
|
|
160,220 |
|
|
|
579 |
|
|
|
1.45 |
% |
|
Long-term debt |
|
|
119,275 |
|
|
|
1,296 |
|
|
|
4.37 |
% |
|
|
119,180 |
|
|
|
1,295 |
|
|
|
4.37 |
% |
|
|
173,780 |
|
|
|
2,194 |
|
|
|
5.06 |
% |
|
Subordinated debentures |
|
|
15,011 |
|
|
|
383 |
|
|
|
10.26 |
% |
|
|
14,957 |
|
|
|
384 |
|
|
|
10.33 |
% |
|
|
14,793 |
|
|
|
356 |
|
|
|
9.65 |
% |
|
Total interest-bearing liabilities |
|
|
2,758,760 |
|
|
|
28,921 |
|
|
|
4.22 |
% |
|
|
2,873,037 |
|
|
|
29,918 |
|
|
|
4.19 |
% |
|
|
2,883,743 |
|
|
|
25,076 |
|
|
|
3.49 |
% |
| Noninterest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
529,450 |
|
|
|
|
|
|
|
|
|
|
|
528,346 |
|
|
|
|
|
|
|
|
|
|
|
606,015 |
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
51,087 |
|
|
|
|
|
|
|
|
|
|
|
55,795 |
|
|
|
|
|
|
|
|
|
|
|
59,760 |
|
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
580,537 |
|
|
|
|
|
|
|
|
|
|
|
584,141 |
|
|
|
|
|
|
|
|
|
|
|
665,775 |
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
|
512,185 |
|
|
|
|
|
|
|
|
|
|
|
512,787 |
|
|
|
|
|
|
|
|
|
|
|
500,062 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,851,482 |
|
|
|
|
|
|
|
|
|
|
$ |
3,969,965 |
|
|
|
|
|
|
|
|
|
|
$ |
4,049,580 |
|
|
|
|
|
|
|
|
|
| Net interest income / interest
rate spreads |
|
|
|
|
|
$ |
23,988 |
|
|
|
1.67 |
% |
|
|
|
|
|
$ |
24,901 |
|
|
|
1.73 |
% |
|
|
|
|
|
$ |
31,949 |
|
|
|
2.52 |
% |
| Net interest margin |
|
|
|
|
|
|
|
|
|
|
2.67 |
% |
|
|
|
|
|
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
|
|
|
|
|
3.37 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of deposits |
|
$ |
3,003,924 |
|
|
$ |
26,803 |
|
|
|
3.59 |
% |
|
$ |
3,117,246 |
|
|
$ |
27,800 |
|
|
|
3.59 |
% |
|
$ |
3,140,965 |
|
|
$ |
21,947 |
|
|
|
2.80 |
% |
| Total cost of funds |
|
$ |
3,288,210 |
|
|
$ |
28,921 |
|
|
|
3.54 |
% |
|
$ |
3,401,383 |
|
|
$ |
29,918 |
|
|
|
3.54 |
% |
|
$ |
3,489,758 |
|
|
$ |
25,076 |
|
|
|
2.88 |
% |
(1) Includes income and average balances for FHLB stock, term
federal funds, interest-bearing time deposits and other
miscellaneous interest-bearing assets.(2) Interest income and
average rates for tax-exempt loans and securities are presented on
a tax-equivalent basis.(3) Average loan balances include nonaccrual
loans and loans held for sale. Interest income on loans includes -
amortization of deferred loan fees, net of deferred loan costs.
| |
|
|
|
|
RBB BANCORP AND SUBSIDIARIESAVERAGE
BALANCE SHEET AND NET INTEREST INCOME
(Unaudited) |
| |
|
|
|
| |
|
For the Six Months Ended |
|
| |
|
June 30, 2024 |
|
|
June 30, 2023 |
|
| |
|
Average |
|
|
Interest |
|
|
Yield / |
|
|
Average |
|
|
Interest |
|
|
Yield / |
|
| (tax-equivalent basis,
dollars in thousands) |
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, cash equivalents & other (1) |
|
$ |
325,528 |
|
|
$ |
9,572 |
|
|
|
5.91 |
% |
|
$ |
145,075 |
|
|
$ |
3,891 |
|
|
|
5.41 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale (2) |
|
|
319,127 |
|
|
|
7,197 |
|
|
|
4.54 |
% |
|
|
312,971 |
|
|
|
6,057 |
|
|
|
3.90 |
% |
|
Held to maturity (2) |
|
|
5,205 |
|
|
|
94 |
|
|
|
3.63 |
% |
|
|
5,724 |
|
|
|
103 |
|
|
|
3.63 |
% |
|
Mortgage loans held for sale |
|
|
2,124 |
|
|
|
83 |
|
|
|
7.86 |
% |
|
|
70 |
|
|
|
2 |
|
|
|
6.55 |
% |
|
Loans held for investment: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
|
2,832,971 |
|
|
|
83,356 |
|
|
|
5.92 |
% |
|
|
3,078,572 |
|
|
|
91,208 |
|
|
|
5.97 |
% |
|
Commercial |
|
|
182,642 |
|
|
|
7,428 |
|
|
|
8.18 |
% |
|
|
228,585 |
|
|
|
9,541 |
|
|
|
8.42 |
% |
|
Total loans held for investment |
|
|
3,015,613 |
|
|
|
90,784 |
|
|
|
6.05 |
% |
|
|
3,307,157 |
|
|
|
100,749 |
|
|
|
6.14 |
% |
|
Total interest-earning assets |
|
|
3,667,597 |
|
|
$ |
107,730 |
|
|
|
5.91 |
% |
|
|
3,770,997 |
|
|
$ |
110,802 |
|
|
|
5.93 |
% |
|
Total noninterest-earning assets |
|
|
243,126 |
|
|
|
|
|
|
|
|
|
|
|
242,148 |
|
|
|
|
|
|
|
|
|
|
Total average assets |
|
$ |
3,910,723 |
|
|
|
|
|
|
|
|
|
|
$ |
4,013,145 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW |
|
$ |
57,513 |
|
|
|
574 |
|
|
|
2.01 |
% |
|
$ |
61,585 |
|
|
$ |
310 |
|
|
|
1.02 |
% |
|
Money Market |
|
|
421,655 |
|
|
|
7,403 |
|
|
|
3.53 |
% |
|
|
445,531 |
|
|
|
4,659 |
|
|
|
2.11 |
% |
|
Saving deposits |
|
|
161,070 |
|
|
|
1,454 |
|
|
|
1.82 |
% |
|
|
115,928 |
|
|
|
105 |
|
|
|
0.18 |
% |
|
Time deposits, $250,000 and under |
|
|
1,112,735 |
|
|
|
26,165 |
|
|
|
4.73 |
% |
|
|
1,068,081 |
|
|
|
19,816 |
|
|
|
3.74 |
% |
|
Time deposits, greater than $250,000 |
|
|
778,713 |
|
|
|
19,007 |
|
|
|
4.91 |
% |
|
|
736,140 |
|
|
|
12,759 |
|
|
|
3.50 |
% |
|
Total interest-bearing deposits |
|
|
2,531,686 |
|
|
|
54,603 |
|
|
|
4.34 |
% |
|
|
2,427,265 |
|
|
|
37,649 |
|
|
|
3.13 |
% |
|
FHLB advances |
|
|
150,000 |
|
|
|
878 |
|
|
|
1.18 |
% |
|
|
194,807 |
|
|
|
1,988 |
|
|
|
2.06 |
% |
|
Long-term debt |
|
|
119,228 |
|
|
|
2,591 |
|
|
|
4.37 |
% |
|
|
173,708 |
|
|
|
4,389 |
|
|
|
5.10 |
% |
|
Subordinated debentures |
|
|
14,984 |
|
|
|
767 |
|
|
|
10.29 |
% |
|
|
14,766 |
|
|
|
700 |
|
|
|
9.56 |
% |
|
Total interest-bearing liabilities |
|
|
2,815,898 |
|
|
|
58,839 |
|
|
|
4.20 |
% |
|
|
2,810,546 |
|
|
|
44,726 |
|
|
|
3.21 |
% |
| Noninterest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
528,898 |
|
|
|
|
|
|
|
|
|
|
|
651,928 |
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
53,441 |
|
|
|
|
|
|
|
|
|
|
|
54,469 |
|
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
582,339 |
|
|
|
|
|
|
|
|
|
|
|
706,397 |
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
|
512,486 |
|
|
|
|
|
|
|
|
|
|
|
496,202 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,910,723 |
|
|
|
|
|
|
|
|
|
|
$ |
4,013,145 |
|
|
|
|
|
|
|
|
|
| Net interest income / interest
rate spreads |
|
|
|
|
|
$ |
48,891 |
|
|
|
1.71 |
% |
|
|
|
|
|
$ |
66,076 |
|
|
|
2.72 |
% |
| Net interest margin |
|
|
|
|
|
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
|
|
|
|
|
3.53 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of deposits |
|
$ |
3,060,584 |
|
|
$ |
54,603 |
|
|
|
3.59 |
% |
|
$ |
3,079,193 |
|
|
$ |
37,649 |
|
|
|
2.47 |
% |
| Total cost of funds |
|
$ |
3,344,796 |
|
|
$ |
58,839 |
|
|
|
3.54 |
% |
|
$ |
3,462,474 |
|
|
$ |
44,726 |
|
|
|
2.60 |
% |
(1) Includes income and average balances for FHLB stock, term
federal funds, interest-bearing time deposits and other
miscellaneous interest-bearing assets.(2) Interest income and
average rates for tax-exempt loans and securities are presented on
a tax-equivalent basis.(3) Average loan balances include nonaccrual
loans and loans held for sale. Interest income on loans includes -
amortization of deferred loan fees, net of deferred loan costs.
| |
|
|
|
|
|
|
RBB BANCORP AND SUBSIDIARIES SELECTED
FINANCIAL HIGHLIGHTS (Unaudited) |
| |
|
|
|
|
|
| |
For the Three Months Ended |
|
|
For the Six MonthsEnded June 30, |
|
| |
June 30, |
|
March 31, |
|
|
June 30, |
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Per share data (common
stock) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value |
$ |
28.12 |
|
|
$ |
27.67 |
|
|
$ |
26.34 |
|
|
$ |
28.12 |
|
|
$ |
26.34 |
|
| Tangible book value (1) |
$ |
24.06 |
|
|
$ |
23.68 |
|
|
$ |
22.40 |
|
|
$ |
24.06 |
|
|
$ |
22.40 |
|
| Performance
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets,
annualized |
|
0.76 |
% |
|
|
0.81 |
% |
|
|
1.08 |
% |
|
|
0.79 |
% |
|
|
1.10 |
% |
| Return on average
shareholders' equity, annualized |
|
5.69 |
% |
|
|
6.30 |
% |
|
|
8.78 |
% |
|
|
6.00 |
% |
|
|
8.91 |
% |
| Return on average tangible
common equity, annualized (1) |
|
6.65 |
% |
|
|
7.37 |
% |
|
|
10.33 |
% |
|
|
7.01 |
% |
|
|
10.49 |
% |
| Noninterest income to average
assets, annualized |
|
0.36 |
% |
|
|
0.34 |
% |
|
|
0.25 |
% |
|
|
0.35 |
% |
|
|
0.24 |
% |
| Noninterest expense to average
assets, annualized |
|
1.79 |
% |
|
|
1.72 |
% |
|
|
1.83 |
% |
|
|
1.75 |
% |
|
|
1.88 |
% |
| Yield on average earning
assets |
|
5.89 |
% |
|
|
5.92 |
% |
|
|
6.01 |
% |
|
|
5.91 |
% |
|
|
5.93 |
% |
| Yield on average loans |
|
6.04 |
% |
|
|
6.07 |
% |
|
|
6.23 |
% |
|
|
6.05 |
% |
|
|
6.14 |
% |
| Cost of average total deposits
(2) |
|
3.59 |
% |
|
|
3.59 |
% |
|
|
2.80 |
% |
|
|
3.59 |
% |
|
|
2.47 |
% |
| Cost of average
interest-bearing deposits |
|
4.36 |
% |
|
|
4.32 |
% |
|
|
3.47 |
% |
|
|
4.34 |
% |
|
|
3.13 |
% |
| Cost of average
interest-bearing liabilities |
|
4.22 |
% |
|
|
4.19 |
% |
|
|
3.49 |
% |
|
|
4.20 |
% |
|
|
3.21 |
% |
| Net interest spread |
|
1.67 |
% |
|
|
1.73 |
% |
|
|
2.52 |
% |
|
|
1.71 |
% |
|
|
2.72 |
% |
| Net interest margin |
|
2.67 |
% |
|
|
2.69 |
% |
|
|
3.37 |
% |
|
|
2.68 |
% |
|
|
3.53 |
% |
| Efficiency ratio (3) |
|
62.38 |
% |
|
|
60.07 |
% |
|
|
53.80 |
% |
|
|
61.21 |
% |
|
|
52.80 |
% |
| Common stock dividend payout
ratio |
|
41.03 |
% |
|
|
37.21 |
% |
|
|
27.59 |
% |
|
|
38.55 |
% |
|
|
27.83 |
% |
(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 SUBSIDIARIES SELECTED
FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands) |
| |
|
|
|
| |
|
At or for the quarter ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
| |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
Credit Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| Special mention loans |
|
$ |
19,520 |
|
|
$ |
20,580 |
|
|
$ |
24,150 |
|
| Special mention loans to total
loans |
|
|
0.64 |
% |
|
|
0.68 |
% |
|
|
0.76 |
% |
| Substandard loans |
|
$ |
63,076 |
|
|
$ |
57,170 |
|
|
$ |
74,065 |
|
| Substandard loans to total
loans |
|
|
2.07 |
% |
|
|
1.89 |
% |
|
|
2.32 |
% |
| Loans 30-89 days past due,
excluding nonperforming loans |
|
$ |
11,270 |
|
|
$ |
20,950 |
|
|
$ |
7,242 |
|
| Loans 30-89 days past due,
excluding nonperforming loans, to total loans |
|
|
0.37 |
% |
|
|
0.69 |
% |
|
|
0.23 |
% |
| Nonperforming loans |
|
$ |
54,589 |
|
|
$ |
35,935 |
|
|
$ |
41,862 |
|
| OREO |
|
|
— |
|
|
|
1,071 |
|
|
|
577 |
|
| Nonperforming assets |
|
$ |
54,589 |
|
|
$ |
37,006 |
|
|
$ |
42,439 |
|
| Nonperforming loans to total
loans |
|
|
1.79 |
% |
|
|
1.19 |
% |
|
|
1.31 |
% |
| Nonperforming assets to total
assets |
|
|
1.41 |
% |
|
|
0.95 |
% |
|
|
1.04 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses |
|
$ |
41,741 |
|
|
$ |
41,688 |
|
|
$ |
43,092 |
|
| Allowance for loan losses to
total loans |
|
|
1.37 |
% |
|
|
1.38 |
% |
|
|
1.35 |
% |
| Allowance for loan losses to
nonperforming loans |
|
|
76.46 |
% |
|
|
116.01 |
% |
|
|
102.94 |
% |
| Net charge-offs |
|
$ |
551 |
|
|
$ |
184 |
|
|
$ |
580 |
|
| Net charge-offs to average
loans |
|
|
0.07 |
% |
|
|
0.02 |
% |
|
|
0.07 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Capital
ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible common equity to
tangible assets (2) |
|
|
11.53 |
% |
|
|
11.56 |
% |
|
|
10.64 |
% |
| Tier 1 leverage ratio |
|
|
12.48 |
% |
|
|
12.16 |
% |
|
|
11.60 |
% |
| Tier 1 common capital to
risk-weighted assets |
|
|
18.89 |
% |
|
|
19.10 |
% |
|
|
16.91 |
% |
| Tier 1 capital to
risk-weighted assets |
|
|
19.50 |
% |
|
|
19.72 |
% |
|
|
17.46 |
% |
| Total capital to risk-weighted
assets |
|
|
25.67 |
% |
|
|
25.91 |
% |
|
|
25.27 |
% |
(1) June 30, 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 June 30, 2024 |
|
As of March 31, 2024 |
|
|
As of June 30, 2023 |
|
| (dollars in
thousands) |
|
$ |
|
% |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
| Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
126,649 |
|
4.2 |
% |
|
$ |
121,441 |
|
|
|
4.0 |
% |
|
$ |
131,456 |
|
|
|
4.1 |
% |
|
SBA |
|
|
50,323 |
|
1.7 |
% |
|
|
54,677 |
|
|
|
1.8 |
% |
|
|
53,459 |
|
|
|
1.7 |
% |
|
Construction and land development |
|
|
202,459 |
|
6.6 |
% |
|
|
198,070 |
|
|
|
6.5 |
% |
|
|
256,916 |
|
|
|
8.0 |
% |
|
Commercial real estate (1) |
|
|
1,190,207 |
|
39.1 |
% |
|
|
1,178,498 |
|
|
|
38.9 |
% |
|
|
1,183,396 |
|
|
|
37.0 |
% |
|
Single-family residential mortgages |
|
|
1,467,802 |
|
48.2 |
% |
|
|
1,463,497 |
|
|
|
48.4 |
% |
|
|
1,554,713 |
|
|
|
48.7 |
% |
|
Other loans |
|
|
10,272 |
|
0.2 |
% |
|
|
11,178 |
|
|
|
0.4 |
% |
|
|
16,055 |
|
|
|
0.5 |
% |
|
Total loans (2) |
|
$ |
3,047,712 |
|
100.0 |
% |
|
$ |
3,027,361 |
|
|
|
100.0 |
% |
|
$ |
3,195,995 |
|
|
|
100.0 |
% |
|
Allowance for loan losses |
|
|
(41,741 |
) |
|
|
|
(41,688 |
) |
|
|
|
|
|
|
(43,092 |
) |
|
|
|
|
|
Total loans, net |
|
$ |
3,005,971 |
|
|
|
$ |
2,985,673 |
|
|
|
|
|
|
$ |
3,152,903 |
|
|
|
|
|
(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 $645,
$474, and $766 as of June 30, 2024, March 31, 2024, and June 30,
2023, respectively
| Deposits |
|
As of June 30, 2024 |
|
As of March 31, 2024 |
|
|
As of June 30, 2023 |
|
| (dollars in
thousands) |
|
$ |
|
% |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
542,971 |
|
18.0 |
% |
|
$ |
539,517 |
|
|
|
17.8 |
% |
|
$ |
585,746 |
|
|
|
18.4 |
% |
|
Savings, NOW and money market accounts |
|
|
647,770 |
|
21.4 |
% |
|
|
642,840 |
|
|
|
21.2 |
% |
|
|
598,546 |
|
|
|
18.8 |
% |
|
Time deposits, $250,000 and under |
|
|
921,712 |
|
30.5 |
% |
|
|
901,738 |
|
|
|
29.8 |
% |
|
|
826,665 |
|
|
|
26.0 |
% |
|
Time deposits, greater than $250,000 |
|
|
790,478 |
|
26.1 |
% |
|
|
746,611 |
|
|
|
24.7 |
% |
|
|
662,763 |
|
|
|
20.9 |
% |
|
Wholesale deposits (1) |
|
|
120,674 |
|
4.0 |
% |
|
|
197,623 |
|
|
|
6.5 |
% |
|
|
501,696 |
|
|
|
15.8 |
% |
|
Total deposits |
|
$ |
3,023,605 |
|
100.0 |
% |
|
$ |
3,028,329 |
|
|
|
100.0 |
% |
|
$ |
3,175,416 |
|
|
|
100.0 |
% |
(1) Includes brokered deposits, collateralized deposits
from the State of California, and 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 June 30,
2024, March 31, 2024, and June 30, 2023.
| |
|
|
|
|
|
|
|
|
|
|
|
| (dollars in thousands,
except share and per share data) |
|
June 30, 2024 |
|
|
March 31, 2024 |
|
|
June 30, 2023 |
|
|
Tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders'
equity |
|
$ |
511,291 |
|
|
$ |
513,986 |
|
|
$ |
500,290 |
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Core deposit intangible |
|
|
(2,394 |
) |
|
|
(2,594 |
) |
|
|
(3,246 |
) |
| Tangible common equity |
|
$ |
437,399 |
|
|
$ |
439,894 |
|
|
$ |
425,546 |
|
| Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets-GAAP |
|
$ |
3,868,186 |
|
|
$ |
3,878,006 |
|
|
$ |
4,075,618 |
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Core deposit intangible |
|
|
(2,394 |
) |
|
|
(2,594 |
) |
|
|
(3,246 |
) |
| Tangible assets |
|
$ |
3,794,294 |
|
|
$ |
3,803,914 |
|
|
$ |
4,000,874 |
|
| Common shares outstanding |
|
|
18,182,154 |
|
|
|
18,578,132 |
|
|
|
18,995,303 |
|
| Common equity to assets
ratio |
|
|
13.22 |
% |
|
|
13.25 |
% |
|
|
12.28 |
% |
| Tangible common equity to
tangible assets ratio |
|
|
11.53 |
% |
|
|
11.56 |
% |
|
|
10.64 |
% |
| Book value per share |
|
$ |
28.12 |
|
|
$ |
27.67 |
|
|
$ |
26.34 |
|
| Tangible book value per
share |
|
$ |
24.06 |
|
|
$ |
23.68 |
|
|
$ |
22.40 |
|
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 |
|
|
Six MonthsEnded June 30, |
|
| (dollars in
thousands) |
|
June 30, 2024 |
|
|
March 31, 2024 |
|
|
June 30, 2023 |
|
|
2024 |
|
|
2023 |
|
|
Net income available to common shareholders |
|
$ |
7,245 |
|
|
$ |
8,036 |
|
|
$ |
10,949 |
|
|
$ |
15,281 |
|
|
$ |
21,919 |
|
| Average shareholders'
equity |
|
|
512,185 |
|
|
|
512,787 |
|
|
|
500,062 |
|
|
|
512,486 |
|
|
|
496,202 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Average Core deposit intangible |
|
|
(2,525 |
) |
|
|
(2,726 |
) |
|
|
(3,400 |
) |
|
|
(2,625 |
) |
|
|
(3,517 |
) |
| Adjusted average tangible
common equity |
|
$ |
438,162 |
|
|
$ |
438,563 |
|
|
$ |
425,164 |
|
|
$ |
438,363 |
|
|
$ |
421,187 |
|
| Return on average common
equity |
|
|
5.69 |
% |
|
|
6.30 |
% |
|
|
8.78 |
% |
|
|
6.00 |
% |
|
|
8.91 |
% |
| Return on average tangible
common equity |
|
|
6.65 |
% |
|
|
7.37 |
% |
|
|
10.33 |
% |
|
|
7.01 |
% |
|
|
10.49 |
% |
RBB Bancorp (NASDAQ:RBB)
Historical Stock Chart
From Nov 2024 to Dec 2024
RBB Bancorp (NASDAQ:RBB)
Historical Stock Chart
From Dec 2023 to Dec 2024
