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 September 30, 2024.
Third Quarter 2024 Highlights
- Net income totaled $7.0 million, or $ 0.39 diluted earnings per
share
- Return on average assets of 0.72%, compared to 0.76% for the
quarter ended June 30, 2024
- Net interest margin of 2.68% compared to 2.67% for the quarter
ended June 30, 2024
- Repurchased 508,275 shares of common stock for $11.0 million
during the quarter ended September 30, 2024, and completed the
authorized program
- Book value and tangible book value per share(1) increased to
$28.81 and $24.64 at September 30, 2024, up from $28.12 and $24.06
at June 30, 2024
The Company reported net income of $7.0
million, or $ 0.39 diluted earnings per share, for the
quarter ended September 30, 2024, compared to net income of
$7.2 million, or $ 0.39 diluted earnings per share, for the
quarter ended June 30, 2024.
“Loans increased at a 6% annualized rate in the third quarter as
our work to expand lending and deposit relationships began to
deliver results,” said David Morris, Chief Executive Officer of RBB
Bancorp. “Net interest margin increased slightly, and we are
optimistic that it will continue to expand from here. We
continue to work through our non-performing loans and believe we
will be able to resolve the majority of them by mid-2025.”
“The team has done an excellent job building on the Bank’s
reputation as one of the premier Asian-centric financial
institutions,” said Christina Kao, Chair of the Board of
Directors. “Returning the Bank to growth has been a priority
for the Board of Directors as we believe it will enhance long-term
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 $24.5
million for the third quarter of 2024, compared to $24.0
million for the second quarter of 2024. The $580,000
increase was due to an increase in interest income of
$1.5 million offset by an increase in interest expense of
$959,000. The increase in interest income was due mostly to
higher interest income on loans held for investment (“HFI”) of
$2.0 million, partially offset by lower interest income on
investment securities of $504,000. The increase in loan
interest income was mostly due to higher average loans HFI of
$54.4 million combined with a 9 basis point increase in the
HFI loan yield. The decrease in investment income
was attributed to lower average balances and a lower portfolio
yield as proceeds from maturing short-term commercial paper
were invested into loans and interest-earning cash.
The increase in interest expense was due to higher average
interest-bearing deposits of $42.3 million in the third
quarter of 2024.
Net interest margin (“NIM”) was 2.68% for
the third quarter of 2024, an increase of 1 basis
point from 2.67% for the second quarter of 2024. The
increase was due to a 5 basis point increase in the
yield on average interest-earning assets, partially
offset by a 3 basis point increase in the overall cost of
funds. The yield on average interest-earning assets
increased to 5.94% for the third quarter of 2024 from
5.89% for the second quarter of 2024 due mainly to a
9 basis point increase in the yield on average loans HFI to
6.13% for the third quarter of 2024. The increase in
the loan yield was largely attributed to nonaccrual loan
activity in the current and prior quarter, including both
the recapture of interest income for fully paid off
nonaccrual loans and reversals of interest income for loans
migrating to nonaccrual status. Such activity increased the
third quarter loan yield by 1 basis point and decreased the second
quarter loan yield by 7 basis points. Average loans
represented 84% of average interest-earning assets in the
third quarter of 2024, unchanged from the second quarter
of 2024.
The overall cost of funds increased to 3.57% in
the third quarter of 2024 from 3.54% in the second quarter of
2024 due to a higher average cost of interest-bearing
deposits in the third quarter of 2024 as compared to the
second quarter of 2024. The overall funding mix remained
relatively unchanged from the second quarter of 2024 as the
ratio of average noninterest-bearing deposits to average
total funding sources remained relatively unchanged at 16% for
the third and second quarters of 2024. The
all-in spot rate for total deposits was 3.53% at
September 30, 2024.
Provision for Credit Losses
The Company recorded a provision for credit
losses of $3.3 million for the third quarter of
2024 compared to $557,000 for the
second quarter of 2024. The third quarter provision
took into consideration factors including changes in the loan
portfolio mix, higher specific reserves, the outlook for
economic conditions and market interest rates, and credit
quality metrics, including higher nonperforming, special
mention and substandard loans at the end of the
third quarter of 2024 as compared to the end of the
second quarter of 2024.
Noninterest Income
Noninterest income for the third quarter of
2024 was $5.7 million, an increase of $2.3 million from $3.5
million for the second quarter of 2024. This
increase was mostly due to a $2.8 million recovery of a fully
charged off loan, which had been acquired in a bank acquisition
(included in other income), partially offset by lower net
gain on other real estate owned ("OREO")
of $292,000.
Noninterest Expense
Noninterest expense for the third quarter
of 2024 was $17.4 million, an increase of $297,000 from $17.1
million for the second quarter of 2024. This
increase was due to higher salaries and
employee benefits expense of $475,000 due in part to higher loan
production and higher other expenses of $304,000 due to higher loan
related expense. These increases were partially offset by
lower insurance and regulatory assessments of $323,000 and
lower legal and professional expenses of $302,000, the latter being
due to reimbursed legal costs from nonaccrual loan payoffs. The
annualized noninterest expenses to average assets ratio was
1.78% for the third quarter of 2024, down from
1.79% for the second quarter of 2024. The efficiency
ratio was 57.51% for the third quarter of 2024, down from 62.38%
for the second quarter of 2024 due mostly to higher noninterest
income.
Income Taxes
The effective tax rate was 26.9% for the
third quarter of 2024 and 25.9% for the
second quarter of 2024. The effective tax rate for 2024 is
estimated to range between 26.0% and 28.0%.
Balance Sheet
At September 30, 2024, total assets were
$4.0 billion, a $122.3 million increase compared to
June 30, 2024, and a $78.9 million decrease compared to
September 30, 2023.
Loan and Securities Portfolio
Loans HFI totaled $3.1 billion as of
September 30, 2024, an increase of $44.2 million
compared to June 30, 2024 and a $29.1 million decrease
compared to September 30, 2023. The increase from
June 30, 2024 was primarily due
to a $62.5 million increase in commercial real
estate ("CRE") loans, a $5.6 million increase in
single-family residential ("SFR") mortgages
and a $2.2 million increase in commercial and
industrial ("C&I") loans, partially offset by a
$22.3 million decrease in construction and land
development ("C&D") loans and a $2.2 million
decrease in Small Business Administration
("SBA") loans. The loan to deposit ratio was 98.6% at
September 30, 2024, compared to 99.4% at June 30,
2024 and 97.6% at September 30, 2023.
As of September 30, 2024,
available-for-sale securities totaled $305.7 million, a decrease of
$19.9 million from June 30, 2024. As of
September 30, 2024, net unrealized losses
totaled $23.2 million, a $6.9 million decrease due to
decreases in market interest rates, when compared to net
unrealized losses as of June 30, 2024.
Deposits
Total deposits were $3.1 billion as of
September 30, 2024, a $68.6 million increase
compared to June 30, 2024 and a $61.9 million decrease
compared to September 30, 2023. The increase during the third
quarter of 2024 was due to an increase
in interest-bearing deposits, while noninterest-bearing
deposits remained relatively stable at $543.6 million as of
September 30, 2024 compared to $543.0 million as of June
30, 2024. The increase in interest-bearing deposits included
an increase in time deposits of $49.6 million and an
increase in non-maturity deposits of $18.3 million. The
increase in time deposits included a $26.6 million
increase in wholesale deposits (brokered deposits, collateralized
State of California certificates of deposit and deposits acquired
through internet listing services). Wholesale deposits totaled
$147.3 million at September 30, 2024, and
$120.7 million at June 30, 2024. Noninterest-bearing
deposits represented 17.6% of total deposits at September 30,
2024 compared to 18.0% at June 30, 2024.
Credit Quality
Nonperforming assets totaled $60.7 million, or 1.52% of
total assets, at September 30, 2024, compared to
$54.6 million, or 1.41% of total assets, at June 30,
2024. The $6.1 million increase in nonperforming
assets was mostly due to two loans that migrated to
nonaccrual totaling $13.3 million and consisted of
a C&D loan and a CRE loan, offset by
$6.1 million in payoffs with no losses and $1.2 million
in partial charge-offs of nonaccrual loans.
Special mention loans totaled
$77.5 million, or 2.51% of total loans, at
September 30, 2024, compared to $19.5 million, or
0.64% of total loans, at June 30, 2024. The
$58.0 million increase was primarily due to one $43.6 million
C&D loan for a completed hotel construction project, CRE
loans totaling $25.2 million and C&I loans
totaling $1.2 million. The increase was partially offset
by one $11.7 million C&D loan, which migrated from special
mention to substandard during the third quarter of 2024. All
special mention loans, including the $11.7 million C&D
loan which migrated to substandard rating, are all paying
current.
Substandard loans totaled $79.8 million, or
2.58% of total loans, at September 30, 2024, compared to
$63.1 million, or 2.07% of total loans, at June 30,
2024. The $16.8 million increase was primarily due
to downgrades of two C&D loans totaling $21.7
million and one $3.3 million CRE loan, offset by loan
payoffs of $6.7 million and charge-offs of $1.2 million.
Of the substandard loans at September 30, 2024, there
are $19.2 million which are paying current.
30-89 day delinquent loans, excluding
nonperforming loans, decreased
$645,000 to $10.6 million as of September 30,
2024, compared to $11.3 million as of June 30,
2024. The decrease in past due loans was mostly due to
12 loans totaling $4.7 million that returned to
current status and other decreases totaling $784,000,
partially offset by new delinquent loans totaling
$4.9 million, of which $4.1 million were 30 days past due.
As of September 30, 2024, the allowance for
credit losses totaled $44.5 million and was comprised of an
allowance for loan losses of $43.7 million and a reserve for
unfunded commitments of $779,000 (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 $624,000 at June 30, 2024. The $2.1 million increase in the
allowance for credit losses for the third quarter of 2024 was
due to a $3.3 million provision for credit losses,
including higher specific reserves of $2.5 million, offset
by net charge-offs of $1.2 million. The increase in
specific reserves and charge-offs in the third quarter of 2024 was
primarily due to a decrease in the estimated fair value of
collateral dependent loans, including estimated selling
costs. Charge-offs in the third quarter of 2024
were related to one C&D loan and one CRE loan,
which were written-down to their estimated fair
value. The allowance for loan losses as a
percentage of loans HFI was 1.41% at September 30, 2024,
compared to 1.37% at June 30, 2024. The allowance for
loan losses as a percentage of nonperforming loans was 72% at
September 30, 2024, a decrease from 76% at June 30,
2024. The decrease in the allowance for loan losses as a
percentage of nonperforming loans was due in part to an
increase in individually evaluated loans, which required no
allowance for loan losses.
| |
|
For the Three Months Ended September 30, 2024 |
|
|
For the Nine Months Ended September 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 |
|
$ |
41,741 |
|
|
$ |
624 |
|
|
$ |
42,365 |
|
|
$ |
41,903 |
|
|
$ |
640 |
|
|
$ |
42,543 |
|
| Provision for credit
losses |
|
|
3,145 |
|
|
|
155 |
|
|
|
3,300 |
|
|
|
3,718 |
|
|
|
139 |
|
|
|
3,857 |
|
| Less loans charged-off |
|
|
(1,210 |
) |
|
|
— |
|
|
|
(1,210 |
) |
|
|
(1,991 |
) |
|
|
— |
|
|
|
(1,991 |
) |
| Recoveries on loans
charged-off |
|
|
9 |
|
|
|
— |
|
|
|
9 |
|
|
|
55 |
|
|
|
— |
|
|
|
55 |
|
| Ending balance |
|
$ |
43,685 |
|
|
$ |
779 |
|
|
$ |
44,464 |
|
|
$ |
43,685 |
|
|
$ |
779 |
|
|
$ |
44,464 |
|
Shareholders' Equity
At September 30, 2024, total
shareholders' equity was $509.7 million,
a $1.6 million decrease compared to June 30, 2024,
and a $7.2 million increase compared to
September 30, 2023. The decrease in shareholders' equity
for the third quarter of 2024 was due to common
stock repurchases of $11.0 million and common stock
cash dividends paid of $2.9 million, offset by net income
of $7.0 million, lower net unrealized loss on
available-for-sale securities of $4.8 million and equity
compensation activity of $528,000. Book value per share
and tangible book value per share(1) increased to
$28.81 and $24.64 at September 30, 2024, up from $28.12 and
$24.06 at June 30, 2024.
On February 29, 2024, the Board of
Directors authorized the repurchase of up to 1,000,000 shares of
common stock. The repurchase program permitted 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 508,275 shares at a
weighted average share price of $21.53 during the
third quarter of 2024 and completed the authorized
program.
Dividend Announcement
The Board of Directors has declared
a common stock cash dividend of $0.16 per common share,
payable on November 12, 2024 to shareholders of record on
October 31, 2024.
|
|
Contact: Lynn Hopkins, Chief
Financial Officer |
| |
(213)
716-8066 |
| |
lhopkins@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 September 30, 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,
October 22, 2024, to discuss the Company’s
third 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
392446, conference ID RBBQ324. A replay of the call will
be made available at 1-877-481-4010 or
1-919-882-2331, the passcode is 51366, approximately
one hour after the conclusion of the call and will remain available
through November 5, 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
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,
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.
|
RBB BANCORP AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands) |
|
| |
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
| |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
|
$ |
26,388 |
|
|
$ |
23,313 |
|
|
$ |
21,887 |
|
|
$ |
22,671 |
|
|
$ |
23,809 |
|
| Interest-earning deposits with
financial institutions |
|
|
323,002 |
|
|
|
229,456 |
|
|
|
247,356 |
|
|
|
408,702 |
|
|
|
306,982 |
|
|
Cash and Cash Equivalents |
|
|
349,390 |
|
|
|
252,769 |
|
|
|
269,243 |
|
|
|
431,373 |
|
|
|
330,791 |
|
| Interest-earning time deposits
with financial institutions |
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
| Investment securities
available for sale |
|
|
305,666 |
|
|
|
325,582 |
|
|
|
335,194 |
|
|
|
318,961 |
|
|
|
354,378 |
|
| Investment securities held to
maturity |
|
|
5,195 |
|
|
|
5,200 |
|
|
|
5,204 |
|
|
|
5,209 |
|
|
|
5,214 |
|
| Mortgage loans held for
sale |
|
|
812 |
|
|
|
3,146 |
|
|
|
3,903 |
|
|
|
1,911 |
|
|
|
62 |
|
| Loans held for investment |
|
|
3,091,896 |
|
|
|
3,047,712 |
|
|
|
3,027,361 |
|
|
|
3,031,861 |
|
|
|
3,120,952 |
|
| Allowance for loan losses |
|
|
(43,685 |
) |
|
|
(41,741 |
) |
|
|
(41,688 |
) |
|
|
(41,903 |
) |
|
|
(42,430 |
) |
|
Net loans held for investment |
|
|
3,048,211 |
|
|
|
3,005,971 |
|
|
|
2,985,673 |
|
|
|
2,989,958 |
|
|
|
3,078,522 |
|
| Premises and equipment,
net |
|
|
24,839 |
|
|
|
25,049 |
|
|
|
25,363 |
|
|
|
25,684 |
|
|
|
26,134 |
|
| Federal Home Loan Bank (FHLB)
stock |
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
| Cash surrender value of bank
owned life insurance |
|
|
59,889 |
|
|
|
59,486 |
|
|
|
59,101 |
|
|
|
58,719 |
|
|
|
58,346 |
|
| Goodwill |
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
| Servicing assets |
|
|
7,256 |
|
|
|
7,545 |
|
|
|
7,794 |
|
|
|
8,110 |
|
|
|
8,439 |
|
| Core deposit intangibles |
|
|
2,194 |
|
|
|
2,394 |
|
|
|
2,594 |
|
|
|
2,795 |
|
|
|
3,010 |
|
| Right-of-use assets |
|
|
29,283 |
|
|
|
30,530 |
|
|
|
31,231 |
|
|
|
29,803 |
|
|
|
29,949 |
|
| Accrued interest and other
assets |
|
|
70,644 |
|
|
|
63,416 |
|
|
|
65,608 |
|
|
|
66,404 |
|
|
|
87,411 |
|
|
Total assets |
|
$ |
3,990,477 |
|
|
$ |
3,868,186 |
|
|
$ |
3,878,006 |
|
|
$ |
4,026,025 |
|
|
$ |
4,069,354 |
|
| Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
543,623 |
|
|
$ |
542,971 |
|
|
$ |
539,517 |
|
|
$ |
539,621 |
|
|
$ |
572,393 |
|
|
Savings, NOW and money market accounts |
|
|
666,089 |
|
|
|
647,770 |
|
|
|
642,840 |
|
|
|
632,729 |
|
|
|
608,020 |
|
|
Time deposits, $250,000 and under |
|
|
1,052,462 |
|
|
|
1,014,189 |
|
|
|
1,083,898 |
|
|
|
1,190,821 |
|
|
|
1,237,831 |
|
|
Time deposits, greater than $250,000 |
|
|
830,010 |
|
|
|
818,675 |
|
|
|
762,074 |
|
|
|
811,589 |
|
|
|
735,828 |
|
|
Total deposits |
|
|
3,092,184 |
|
|
|
3,023,605 |
|
|
|
3,028,329 |
|
|
|
3,174,760 |
|
|
|
3,154,072 |
|
| FHLB advances |
|
|
200,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
| Long-term debt, net of
issuance costs |
|
|
119,433 |
|
|
|
119,338 |
|
|
|
119,243 |
|
|
|
119,147 |
|
|
|
174,019 |
|
| Subordinated debentures |
|
|
15,102 |
|
|
|
15,047 |
|
|
|
14,993 |
|
|
|
14,938 |
|
|
|
14,884 |
|
| Lease liabilities - operating
leases |
|
|
30,880 |
|
|
|
32,087 |
|
|
|
32,690 |
|
|
|
31,191 |
|
|
|
31,265 |
|
| Accrued interest and other
liabilities |
|
|
23,150 |
|
|
|
16,818 |
|
|
|
18,765 |
|
|
|
24,729 |
|
|
|
42,603 |
|
|
Total liabilities |
|
|
3,480,749 |
|
|
|
3,356,895 |
|
|
|
3,364,020 |
|
|
|
3,514,765 |
|
|
|
3,566,843 |
|
| Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
|
259,280 |
|
|
|
266,160 |
|
|
|
271,645 |
|
|
|
271,925 |
|
|
|
277,462 |
|
| Additional paid-in
capital |
|
|
3,520 |
|
|
|
3,456 |
|
|
|
3,348 |
|
|
|
3,623 |
|
|
|
3,579 |
|
| Retained Earnings |
|
|
262,946 |
|
|
|
262,518 |
|
|
|
259,903 |
|
|
|
255,152 |
|
|
|
247,159 |
|
| Non-controlling interest |
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
| Accumulated other
comprehensive loss, net |
|
|
(16,090 |
) |
|
|
(20,915 |
) |
|
|
(20,982 |
) |
|
|
(19,512 |
) |
|
|
(25,761 |
) |
|
Total shareholders' equity |
|
|
509,728 |
|
|
|
511,291 |
|
|
|
513,986 |
|
|
|
511,260 |
|
|
|
502,511 |
|
|
Total liabilities and
shareholders’ equity |
|
$ |
3,990,477 |
|
|
$ |
3,868,186 |
|
|
$ |
3,878,006 |
|
|
$ |
4,026,025 |
|
|
$ |
4,069,354 |
|
|
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 Nine Months Ended |
|
| |
|
September 30, 2024 |
|
|
June 30, 2024 |
|
|
September 30, 2023 |
|
|
September 30, 2024 |
|
|
September 30, 2023 |
|
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
47,326 |
|
|
$ |
45,320 |
|
|
$ |
47,617 |
|
|
$ |
138,193 |
|
|
$ |
148,369 |
|
|
Interest on interest-earning deposits |
|
|
3,388 |
|
|
|
3,353 |
|
|
|
3,193 |
|
|
|
11,781 |
|
|
|
6,096 |
|
|
Interest on investment securities |
|
|
3,127 |
|
|
|
3,631 |
|
|
|
4,211 |
|
|
|
10,369 |
|
|
|
10,321 |
|
|
Dividend income on FHLB stock |
|
|
326 |
|
|
|
327 |
|
|
|
290 |
|
|
|
984 |
|
|
|
814 |
|
|
Interest on federal funds sold and other |
|
|
258 |
|
|
|
255 |
|
|
|
252 |
|
|
|
779 |
|
|
|
716 |
|
|
Total interest and dividend income |
|
|
54,425 |
|
|
|
52,886 |
|
|
|
55,563 |
|
|
|
162,106 |
|
|
|
166,316 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on savings deposits, NOW and money market accounts |
|
|
5,193 |
|
|
|
4,953 |
|
|
|
3,106 |
|
|
|
14,624 |
|
|
|
8,180 |
|
|
Interest on time deposits |
|
|
22,553 |
|
|
|
21,850 |
|
|
|
21,849 |
|
|
|
67,725 |
|
|
|
54,424 |
|
|
Interest on long-term debt and subordinated debentures |
|
|
1,681 |
|
|
|
1,679 |
|
|
|
2,579 |
|
|
|
5,039 |
|
|
|
7,668 |
|
|
Interest on other borrowed funds |
|
|
453 |
|
|
|
439 |
|
|
|
440 |
|
|
|
1,331 |
|
|
|
2,428 |
|
|
Total interest expense |
|
|
29,880 |
|
|
|
28,921 |
|
|
|
27,974 |
|
|
|
88,719 |
|
|
|
72,700 |
|
|
Net interest income before provision for credit losses |
|
|
24,545 |
|
|
|
23,965 |
|
|
|
27,589 |
|
|
|
73,387 |
|
|
|
93,616 |
|
| Provision for credit
losses |
|
|
3,300 |
|
|
|
557 |
|
|
|
1,399 |
|
|
|
3,857 |
|
|
|
3,793 |
|
|
Net interest income after provision for credit losses |
|
|
21,245 |
|
|
|
23,408 |
|
|
|
26,190 |
|
|
|
69,530 |
|
|
|
89,823 |
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
1,071 |
|
|
|
1,064 |
|
|
|
1,057 |
|
|
|
3,127 |
|
|
|
3,200 |
|
|
Gain on sale of loans |
|
|
447 |
|
|
|
451 |
|
|
|
212 |
|
|
|
1,210 |
|
|
|
258 |
|
|
Loan servicing fees, net of amortization |
|
|
605 |
|
|
|
579 |
|
|
|
623 |
|
|
|
1,773 |
|
|
|
1,959 |
|
|
Increase in cash surrender value of life insurance |
|
|
402 |
|
|
|
385 |
|
|
|
356 |
|
|
|
1,169 |
|
|
|
1,036 |
|
|
Gain on OREO |
|
|
— |
|
|
|
292 |
|
|
|
190 |
|
|
|
1,016 |
|
|
|
190 |
|
|
Other income |
|
|
3,221 |
|
|
|
717 |
|
|
|
332 |
|
|
|
4,311 |
|
|
|
982 |
|
|
Total noninterest income |
|
|
5,746 |
|
|
|
3,488 |
|
|
|
2,770 |
|
|
|
12,606 |
|
|
|
7,625 |
|
| Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
10,008 |
|
|
|
9,533 |
|
|
|
9,744 |
|
|
|
29,468 |
|
|
|
28,935 |
|
|
Occupancy and equipment expenses |
|
|
2,518 |
|
|
|
2,439 |
|
|
|
2,414 |
|
|
|
7,400 |
|
|
|
7,242 |
|
|
Data processing |
|
|
1,472 |
|
|
|
1,466 |
|
|
|
1,315 |
|
|
|
4,358 |
|
|
|
3,969 |
|
|
Legal and professional |
|
|
958 |
|
|
|
1,260 |
|
|
|
1,022 |
|
|
|
3,098 |
|
|
|
6,907 |
|
|
Office expenses |
|
|
348 |
|
|
|
352 |
|
|
|
437 |
|
|
|
1,056 |
|
|
|
1,163 |
|
|
Marketing and business promotion |
|
|
252 |
|
|
|
189 |
|
|
|
340 |
|
|
|
613 |
|
|
|
892 |
|
|
Insurance and regulatory assessments |
|
|
658 |
|
|
|
981 |
|
|
|
730 |
|
|
|
2,621 |
|
|
|
2,043 |
|
|
Core deposit premium |
|
|
200 |
|
|
|
201 |
|
|
|
236 |
|
|
|
602 |
|
|
|
708 |
|
|
Other expenses |
|
|
1,007 |
|
|
|
703 |
|
|
|
638 |
|
|
|
2,298 |
|
|
|
2,445 |
|
|
Total noninterest expense |
|
|
17,421 |
|
|
|
17,124 |
|
|
|
16,876 |
|
|
|
51,514 |
|
|
|
54,304 |
|
|
Income before income taxes |
|
|
9,570 |
|
|
|
9,772 |
|
|
|
12,084 |
|
|
|
30,622 |
|
|
|
43,144 |
|
|
Income tax expense |
|
|
2,571 |
|
|
|
2,527 |
|
|
|
3,611 |
|
|
|
8,342 |
|
|
|
12,752 |
|
|
Net income |
|
$ |
6,999 |
|
|
$ |
7,245 |
|
|
$ |
8,473 |
|
|
$ |
22,280 |
|
|
$ |
30,392 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.39 |
|
|
$ |
0.39 |
|
|
$ |
0.45 |
|
|
$ |
1.22 |
|
|
$ |
1.60 |
|
|
Diluted |
|
$ |
0.39 |
|
|
$ |
0.39 |
|
|
$ |
0.45 |
|
|
$ |
1.22 |
|
|
$ |
1.60 |
|
|
Cash Dividends declared per common share |
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
17,812,791 |
|
|
|
18,375,970 |
|
|
|
18,995,303 |
|
|
|
18,261,702 |
|
|
|
18,991,579 |
|
|
Diluted |
|
|
17,885,359 |
|
|
|
18,406,897 |
|
|
|
18,997,304 |
|
|
|
18,313,086 |
|
|
|
19,013,838 |
|
|
RBB BANCORP AND SUBSIDIARIESAVERAGE
BALANCE SHEET AND NET INTEREST INCOME
(Unaudited) |
|
| |
|
For the Three Months Ended |
|
| |
|
September 30, 2024 |
|
|
June 30, 2024 |
|
|
September 30, 2023 |
|
| (tax-equivalent basis,
dollars in thousands) |
|
AverageBalance |
|
|
Interest & Fees |
|
|
Yield /Rate |
|
|
AverageBalance |
|
|
Interest& Fees |
|
|
Yield /Rate |
|
|
AverageBalance |
|
|
Interest& Fees |
|
|
Yield /Rate |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents(1) |
|
$ |
260,205 |
|
|
$ |
3,646 |
|
|
|
5.57 |
% |
|
$ |
255,973 |
|
|
$ |
3,608 |
|
|
|
5.67 |
% |
|
$ |
270,484 |
|
|
$ |
3,445 |
|
|
|
5.05 |
% |
|
FHLB Stock |
|
|
15,000 |
|
|
|
326 |
|
|
|
8.65 |
% |
|
|
15,000 |
|
|
|
327 |
|
|
|
8.77 |
% |
|
|
15,000 |
|
|
|
290 |
|
|
|
7.67 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale(2) |
|
|
298,948 |
|
|
|
3,105 |
|
|
|
4.13 |
% |
|
|
318,240 |
|
|
|
3,608 |
|
|
|
4.56 |
% |
|
|
369,459 |
|
|
|
4,187 |
|
|
|
4.50 |
% |
|
Held to maturity(2) |
|
|
5,198 |
|
|
|
46 |
|
|
|
3.52 |
% |
|
|
5,203 |
|
|
|
46 |
|
|
|
3.56 |
% |
|
|
5,385 |
|
|
|
48 |
|
|
|
3.54 |
% |
|
Mortgage loans held for sale |
|
|
1,165 |
|
|
|
23 |
|
|
|
7.85 |
% |
|
|
3,032 |
|
|
|
57 |
|
|
|
7.56 |
% |
|
|
739 |
|
|
|
13 |
|
|
|
6.98 |
% |
|
Loans held for investment:(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
|
2,888,528 |
|
|
|
43,495 |
|
|
|
5.99 |
% |
|
|
2,828,339 |
|
|
|
41,590 |
|
|
|
5.91 |
% |
|
|
2,968,246 |
|
|
|
43,583 |
|
|
|
5.83 |
% |
|
Commercial |
|
|
179,885 |
|
|
|
3,808 |
|
|
|
8.42 |
% |
|
|
185,679 |
|
|
|
3,673 |
|
|
|
7.96 |
% |
|
|
187,140 |
|
|
|
4,021 |
|
|
|
8.52 |
% |
|
Total loans held for investment |
|
|
3,068,413 |
|
|
|
47,303 |
|
|
|
6.13 |
% |
|
|
3,014,018 |
|
|
|
45,263 |
|
|
|
6.04 |
% |
|
|
3,155,386 |
|
|
|
47,604 |
|
|
|
5.99 |
% |
|
Total interest-earning assets |
|
|
3,648,929 |
|
|
$ |
54,449 |
|
|
|
5.94 |
% |
|
|
3,611,466 |
|
|
$ |
52,909 |
|
|
|
5.89 |
% |
|
|
3,816,453 |
|
|
$ |
55,587 |
|
|
|
5.78 |
% |
|
Total noninterest-earning assets |
|
|
242,059 |
|
|
|
|
|
|
|
|
|
|
|
240,016 |
|
|
|
|
|
|
|
|
|
|
|
250,083 |
|
|
|
|
|
|
|
|
|
|
Total average assets |
|
$ |
3,890,988 |
|
|
|
|
|
|
|
|
|
|
$ |
3,851,482 |
|
|
|
|
|
|
|
|
|
|
$ |
4,066,536 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW |
|
|
55,757 |
|
|
|
277 |
|
|
|
1.98 |
% |
|
$ |
56,081 |
|
|
$ |
276 |
|
|
|
1.98 |
% |
|
$ |
55,325 |
|
|
$ |
201 |
|
|
|
1.44 |
% |
|
Money Market |
|
|
439,936 |
|
|
|
4,093 |
|
|
|
3.70 |
% |
|
|
431,559 |
|
|
|
3,877 |
|
|
|
3.61 |
% |
|
|
403,300 |
|
|
|
2,656 |
|
|
|
2.61 |
% |
|
Saving deposits |
|
|
164,515 |
|
|
|
823 |
|
|
|
1.99 |
% |
|
|
164,913 |
|
|
|
800 |
|
|
|
1.95 |
% |
|
|
123,709 |
|
|
|
249 |
|
|
|
0.80 |
% |
|
Time deposits, $250,000 and under |
|
|
1,037,365 |
|
|
|
12,312 |
|
|
|
4.72 |
% |
|
|
1,049,666 |
|
|
|
12,360 |
|
|
|
4.74 |
% |
|
|
1,285,320 |
|
|
|
14,090 |
|
|
|
4.35 |
% |
|
Time deposits, greater than $250,000 |
|
|
819,207 |
|
|
|
10,241 |
|
|
|
4.97 |
% |
|
|
772,255 |
|
|
|
9,490 |
|
|
|
4.94 |
% |
|
|
717,026 |
|
|
|
7,759 |
|
|
|
4.29 |
% |
|
Total interest-bearing deposits |
|
|
2,516,780 |
|
|
|
27,746 |
|
|
|
4.39 |
% |
|
|
2,474,474 |
|
|
|
26,803 |
|
|
|
4.36 |
% |
|
|
2,584,680 |
|
|
|
24,955 |
|
|
|
3.83 |
% |
|
FHLB advances |
|
|
150,543 |
|
|
|
453 |
|
|
|
1.20 |
% |
|
|
150,000 |
|
|
|
439 |
|
|
|
1.18 |
% |
|
|
150,000 |
|
|
|
440 |
|
|
|
1.16 |
% |
|
Long-term debt |
|
|
119,370 |
|
|
|
1,295 |
|
|
|
4.32 |
% |
|
|
119,275 |
|
|
|
1,296 |
|
|
|
4.37 |
% |
|
|
173,923 |
|
|
|
2,194 |
|
|
|
5.00 |
% |
|
Subordinated debentures |
|
|
15,066 |
|
|
|
386 |
|
|
|
10.19 |
% |
|
|
15,011 |
|
|
|
383 |
|
|
|
10.26 |
% |
|
|
14,848 |
|
|
|
385 |
|
|
|
10.29 |
% |
|
Total interest-bearing liabilities |
|
|
2,801,759 |
|
|
|
29,880 |
|
|
|
4.24 |
% |
|
|
2,758,760 |
|
|
|
28,921 |
|
|
|
4.22 |
% |
|
|
2,923,451 |
|
|
|
27,974 |
|
|
|
3.80 |
% |
| Noninterest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
528,081 |
|
|
|
|
|
|
|
|
|
|
|
529,450 |
|
|
|
|
|
|
|
|
|
|
|
571,371 |
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
52,428 |
|
|
|
|
|
|
|
|
|
|
|
51,087 |
|
|
|
|
|
|
|
|
|
|
|
67,282 |
|
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
580,509 |
|
|
|
|
|
|
|
|
|
|
|
580,537 |
|
|
|
|
|
|
|
|
|
|
|
638,653 |
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
|
508,720 |
|
|
|
|
|
|
|
|
|
|
|
512,185 |
|
|
|
|
|
|
|
|
|
|
|
504,432 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,890,988 |
|
|
|
|
|
|
|
|
|
|
$ |
3,851,482 |
|
|
|
|
|
|
|
|
|
|
$ |
4,066,536 |
|
|
|
|
|
|
|
|
|
| Net interest income / interest
rate spreads |
|
|
|
|
|
$ |
24,569 |
|
|
|
1.70 |
% |
|
|
|
|
|
$ |
23,988 |
|
|
|
1.67 |
% |
|
|
|
|
|
$ |
27,613 |
|
|
|
1.98 |
% |
| Net interest margin |
|
|
|
|
|
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
|
|
|
|
|
2.67 |
% |
|
|
|
|
|
|
|
|
|
|
2.87 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of deposits |
|
$ |
3,044,861 |
|
|
$ |
27,746 |
|
|
|
3.63 |
% |
|
$ |
3,003,924 |
|
|
$ |
26,803 |
|
|
|
3.59 |
% |
|
$ |
3,156,051 |
|
|
$ |
24,955 |
|
|
|
3.14 |
% |
| Total cost of funds |
|
$ |
3,329,840 |
|
|
$ |
29,880 |
|
|
|
3.57 |
% |
|
$ |
3,288,210 |
|
|
$ |
28,921 |
|
|
|
3.54 |
% |
|
$ |
3,494,822 |
|
|
$ |
27,974 |
|
|
|
3.18 |
% |
_________________(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 Nine Months Ended |
|
| |
|
September 30, 2024 |
|
|
September 30, 2023 |
|
| (tax-equivalent basis,
dollars in thousands) |
|
AverageBalance |
|
|
Interest& Fees |
|
|
Yield /Rate |
|
|
AverageBalance |
|
|
Interest& Fees |
|
|
Yield /Rate |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents(1) |
|
$ |
293,597 |
|
|
$ |
12,560 |
|
|
|
5.71 |
% |
|
$ |
177,393 |
|
|
$ |
6,812 |
|
|
|
5.13 |
% |
|
FHLB Stock |
|
|
15,000 |
|
|
|
984 |
|
|
|
8.76 |
% |
|
|
15,000 |
|
|
|
814 |
|
|
|
7.26 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale(2) |
|
|
312,352 |
|
|
|
10,302 |
|
|
|
4.41 |
% |
|
|
332,007 |
|
|
|
10,245 |
|
|
|
4.13 |
% |
|
Held to maturity(2) |
|
|
5,203 |
|
|
|
140 |
|
|
|
3.59 |
% |
|
|
5,610 |
|
|
|
151 |
|
|
|
3.60 |
% |
|
Mortgage loans held for sale |
|
|
1,802 |
|
|
|
105 |
|
|
|
7.78 |
% |
|
|
295 |
|
|
|
16 |
|
|
|
7.25 |
% |
|
Loans held for investment:(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
|
2,851,625 |
|
|
|
126,852 |
|
|
|
5.94 |
% |
|
|
3,041,393 |
|
|
|
134,791 |
|
|
|
5.93 |
% |
|
Commercial |
|
|
181,716 |
|
|
|
11,236 |
|
|
|
8.26 |
% |
|
|
214,618 |
|
|
|
13,562 |
|
|
|
8.45 |
% |
|
Total loans held for investment |
|
|
3,033,341 |
|
|
|
138,088 |
|
|
|
6.08 |
% |
|
|
3,256,011 |
|
|
|
148,353 |
|
|
|
6.09 |
% |
|
Total interest-earning assets |
|
|
3,661,295 |
|
|
$ |
162,179 |
|
|
|
5.92 |
% |
|
|
3,786,316 |
|
|
$ |
166,391 |
|
|
|
5.88 |
% |
|
Total noninterest-earning assets |
|
|
242,802 |
|
|
|
|
|
|
|
|
|
|
|
244,822 |
|
|
|
|
|
|
|
|
|
|
Total average assets |
|
$ |
3,904,097 |
|
|
|
|
|
|
|
|
|
|
$ |
4,031,138 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW |
|
$ |
56,924 |
|
|
|
851 |
|
|
|
2.00 |
% |
|
$ |
59,476 |
|
|
$ |
511 |
|
|
|
1.15 |
% |
|
Money Market |
|
|
427,884 |
|
|
|
11,496 |
|
|
|
3.59 |
% |
|
|
431,299 |
|
|
|
7,315 |
|
|
|
2.27 |
% |
|
Saving deposits |
|
|
162,207 |
|
|
|
2,277 |
|
|
|
1.88 |
% |
|
|
118,550 |
|
|
|
354 |
|
|
|
0.40 |
% |
|
Time deposits, $250,000 and under |
|
|
1,087,501 |
|
|
|
38,476 |
|
|
|
4.73 |
% |
|
|
1,141,290 |
|
|
|
33,905 |
|
|
|
3.97 |
% |
|
Time deposits, greater than $250,000 |
|
|
792,310 |
|
|
|
29,249 |
|
|
|
4.93 |
% |
|
|
729,699 |
|
|
|
20,519 |
|
|
|
3.76 |
% |
|
Total interest-bearing deposits |
|
|
2,526,826 |
|
|
|
82,349 |
|
|
|
4.35 |
% |
|
|
2,480,314 |
|
|
|
62,604 |
|
|
|
3.37 |
% |
|
FHLB advances |
|
|
150,182 |
|
|
|
1,331 |
|
|
|
1.18 |
% |
|
|
179,707 |
|
|
|
2,428 |
|
|
|
1.81 |
% |
|
Long-term debt |
|
|
119,276 |
|
|
|
3,886 |
|
|
|
4.35 |
% |
|
|
173,780 |
|
|
|
6,584 |
|
|
|
5.07 |
% |
|
Subordinated debentures |
|
|
15,012 |
|
|
|
1,153 |
|
|
|
10.26 |
% |
|
|
14,794 |
|
|
|
1,084 |
|
|
|
9.80 |
% |
|
Total interest-bearing liabilities |
|
|
2,811,296 |
|
|
|
88,719 |
|
|
|
4.22 |
% |
|
|
2,848,595 |
|
|
|
72,700 |
|
|
|
3.41 |
% |
| Noninterest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
528,624 |
|
|
|
|
|
|
|
|
|
|
|
624,781 |
|
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
52,955 |
|
|
|
|
|
|
|
|
|
|
|
58,786 |
|
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
581,579 |
|
|
|
|
|
|
|
|
|
|
|
683,567 |
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
|
511,222 |
|
|
|
|
|
|
|
|
|
|
|
498,976 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,904,097 |
|
|
|
|
|
|
|
|
|
|
$ |
4,031,138 |
|
|
|
|
|
|
|
|
|
| Net interest income / interest
rate spreads |
|
|
|
|
|
$ |
73,460 |
|
|
|
1.70 |
% |
|
|
|
|
|
$ |
93,691 |
|
|
|
2.47 |
% |
| Net interest margin |
|
|
|
|
|
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
|
|
|
|
|
3.31 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of deposits |
|
$ |
3,055,450 |
|
|
$ |
82,349 |
|
|
|
3.60 |
% |
|
$ |
3,105,095 |
|
|
$ |
62,604 |
|
|
|
2.70 |
% |
| Total cost of funds |
|
$ |
3,339,920 |
|
|
$ |
88,719 |
|
|
|
3.55 |
% |
|
$ |
3,473,376 |
|
|
$ |
72,700 |
|
|
|
2.80 |
% |
_______________(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 Nine Months Ended September 30, |
|
| |
September 30, |
|
June 30, |
|
|
September 30, |
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Per share data (common
stock) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value |
$ |
28.81 |
|
|
$ |
28.12 |
|
|
$ |
26.45 |
|
|
$ |
28.81 |
|
|
$ |
26.45 |
|
| Tangible book value(1) |
$ |
24.64 |
|
|
$ |
24.06 |
|
|
$ |
22.53 |
|
|
$ |
24.64 |
|
|
$ |
22.53 |
|
| Performance
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets,
annualized |
|
0.72 |
% |
|
|
0.76 |
% |
|
|
0.83 |
% |
|
|
0.76 |
% |
|
|
1.01 |
% |
| Return on average
shareholders' equity, annualized |
|
5.47 |
% |
|
|
5.69 |
% |
|
|
6.66 |
% |
|
|
5.82 |
% |
|
|
8.14 |
% |
| Return on average tangible
common equity, annualized(1) |
|
6.40 |
% |
|
|
6.65 |
% |
|
|
7.82 |
% |
|
|
6.81 |
% |
|
|
9.58 |
% |
| Noninterest income to average
assets, annualized |
|
0.59 |
% |
|
|
0.36 |
% |
|
|
0.27 |
% |
|
|
0.43 |
% |
|
|
0.25 |
% |
| Noninterest expense to average
assets, annualized |
|
1.78 |
% |
|
|
1.79 |
% |
|
|
1.65 |
% |
|
|
1.76 |
% |
|
|
1.80 |
% |
| Yield on average earning
assets |
|
5.94 |
% |
|
|
5.89 |
% |
|
|
5.78 |
% |
|
|
5.92 |
% |
|
|
5.88 |
% |
| Yield on average loans |
|
6.13 |
% |
|
|
6.04 |
% |
|
|
5.99 |
% |
|
|
6.08 |
% |
|
|
6.09 |
% |
| Cost of average total
deposits(2) |
|
3.63 |
% |
|
|
3.59 |
% |
|
|
3.14 |
% |
|
|
3.60 |
% |
|
|
2.70 |
% |
| Cost of average
interest-bearing deposits |
|
4.39 |
% |
|
|
4.36 |
% |
|
|
3.83 |
% |
|
|
4.35 |
% |
|
|
3.37 |
% |
| Cost of average
interest-bearing liabilities |
|
4.24 |
% |
|
|
4.22 |
% |
|
|
3.80 |
% |
|
|
4.22 |
% |
|
|
3.41 |
% |
| Net interest spread |
|
1.70 |
% |
|
|
1.67 |
% |
|
|
1.98 |
% |
|
|
1.70 |
% |
|
|
2.47 |
% |
| Net interest margin |
|
2.68 |
% |
|
|
2.67 |
% |
|
|
2.87 |
% |
|
|
2.68 |
% |
|
|
3.31 |
% |
| Efficiency ratio(3) |
|
57.51 |
% |
|
|
62.38 |
% |
|
|
55.59 |
% |
|
|
59.90 |
% |
|
|
53.64 |
% |
| Common stock dividend payout
ratio |
|
41.03 |
% |
|
|
41.03 |
% |
|
|
35.56 |
% |
|
|
39.34 |
% |
|
|
30.00 |
% |
____________________
(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 |
|
| |
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
| |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
Credit Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| Special mention loans |
|
$ |
77,501 |
|
|
$ |
19,520 |
|
|
$ |
31,212 |
|
| Special mention loans to total
loans |
|
|
2.51 |
% |
|
|
0.64 |
% |
|
|
1.00 |
% |
| Substandard loans |
|
$ |
79,831 |
|
|
$ |
63,076 |
|
|
$ |
71,401 |
|
| Substandard loans to total
loans |
|
|
2.58 |
% |
|
|
2.07 |
% |
|
|
2.29 |
% |
| Loans 30-89 days past due,
excluding nonperforming loans |
|
$ |
10,625 |
|
|
$ |
11,270 |
|
|
$ |
19,662 |
|
| Loans 30-89 days past due,
excluding nonperforming loans, to total loans |
|
|
0.34 |
% |
|
|
0.37 |
% |
|
|
0.63 |
% |
| Nonperforming loans |
|
$ |
60,662 |
|
|
$ |
54,589 |
|
|
$ |
40,146 |
|
| OREO |
|
|
— |
|
|
|
— |
|
|
|
284 |
|
| Nonperforming assets |
|
$ |
60,662 |
|
|
$ |
54,589 |
|
|
$ |
40,430 |
|
| Nonperforming loans to total
loans |
|
|
1.96 |
% |
|
|
1.79 |
% |
|
|
1.29 |
% |
| Nonperforming assets to total
assets |
|
|
1.52 |
% |
|
|
1.41 |
% |
|
|
0.99 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses |
|
$ |
43,685 |
|
|
$ |
41,741 |
|
|
$ |
42,430 |
|
| Allowance for loan losses to
total loans |
|
|
1.41 |
% |
|
|
1.37 |
% |
|
|
1.36 |
% |
| Allowance for loan losses to
nonperforming loans |
|
|
72.01 |
% |
|
|
76.46 |
% |
|
|
105.69 |
% |
| Net charge-offs |
|
$ |
1,201 |
|
|
$ |
551 |
|
|
$ |
2,206 |
|
| Net charge-offs to average
loans |
|
|
0.16 |
% |
|
|
0.07 |
% |
|
|
0.28 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Capital
ratios(1) |
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible common equity to
tangible assets(2) |
|
|
11.13 |
% |
|
|
11.53 |
% |
|
|
10.71 |
% |
| Tier 1 leverage ratio |
|
|
12.19 |
% |
|
|
12.48 |
% |
|
|
11.68 |
% |
| Tier 1 common capital to
risk-weighted assets |
|
|
18.16 |
% |
|
|
18.89 |
% |
|
|
17.65 |
% |
| Tier 1 capital to
risk-weighted assets |
|
|
18.74 |
% |
|
|
19.50 |
% |
|
|
18.22 |
% |
| Total capital to risk-weighted
assets |
|
|
24.79 |
% |
|
|
25.67 |
% |
|
|
26.24 |
% |
______________(1) September 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 September 30, 2024 |
|
As of June 30, 2024 |
|
|
As of September 30, 2023 |
|
| (dollars in
thousands) |
|
$ |
|
% |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
| Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
128,861 |
|
4.2 |
% |
|
$ |
126,649 |
|
|
|
4.2 |
% |
|
$ |
127,655 |
|
|
|
4.1 |
% |
|
SBA |
|
|
48,089 |
|
1.6 |
% |
|
|
50,323 |
|
|
|
1.7 |
% |
|
|
50,420 |
|
|
|
1.6 |
% |
|
Construction and land development |
|
|
180,196 |
|
5.8 |
% |
|
|
202,459 |
|
|
|
6.6 |
% |
|
|
259,778 |
|
|
|
8.3 |
% |
|
Commercial real estate (1) |
|
|
1,252,682 |
|
40.5 |
% |
|
|
1,190,207 |
|
|
|
39.1 |
% |
|
|
1,164,210 |
|
|
|
37.3 |
% |
|
Single-family residential mortgages |
|
|
1,473,396 |
|
47.7 |
% |
|
|
1,467,802 |
|
|
|
48.2 |
% |
|
|
1,505,307 |
|
|
|
48.2 |
% |
|
Other loans |
|
|
8,672 |
|
0.2 |
% |
|
|
10,272 |
|
|
|
0.2 |
% |
|
|
13,582 |
|
|
|
0.5 |
% |
|
Total loans (2) |
|
$ |
3,091,896 |
|
100.0 |
% |
|
$ |
3,047,712 |
|
|
|
100.0 |
% |
|
$ |
3,120,952 |
|
|
|
100.0 |
% |
|
Allowance for loan losses |
|
|
(43,685 |
) |
|
|
|
(41,741 |
) |
|
|
|
|
|
|
(42,430 |
) |
|
|
|
|
|
Total loans, net |
|
$ |
3,048,211 |
|
|
|
$ |
3,005,971 |
|
|
|
|
|
|
$ |
3,078,522 |
|
|
|
|
|
_______________(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 $467, $645, and $383 as of September 30, 2024, June 30, 2024,
and September 30, 2023, respectively.
| Deposits |
|
As of September 30, 2024 |
|
As of June 30, 2024 |
|
|
As of September 30, 2023 |
|
| (dollars in
thousands) |
|
$ |
|
% |
|
$ |
|
|
|
% |
|
$ |
|
|
|
% |
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
543,623 |
|
17.6 |
% |
|
$ |
542,971 |
|
|
|
18.0 |
% |
|
$ |
572,393 |
|
|
|
18.1 |
% |
|
Savings, NOW and money market accounts |
|
|
666,089 |
|
21.5 |
% |
|
|
647,770 |
|
|
|
21.4 |
% |
|
|
608,020 |
|
|
|
19.3 |
% |
|
Time deposits, $250,000 and under |
|
|
926,877 |
|
30.0 |
% |
|
|
921,712 |
|
|
|
30.5 |
% |
|
|
848,868 |
|
|
|
26.9 |
% |
|
Time deposits, greater than $250,000 |
|
|
808,304 |
|
26.1 |
% |
|
|
790,478 |
|
|
|
26.1 |
% |
|
|
687,365 |
|
|
|
21.8 |
% |
|
Wholesale deposits(1) |
|
|
147,291 |
|
4.8 |
% |
|
|
120,674 |
|
|
|
4.0 |
% |
|
|
437,426 |
|
|
|
13.9 |
% |
|
Total deposits |
|
$ |
3,092,184 |
|
100.0 |
% |
|
$ |
3,023,605 |
|
|
|
100.0 |
% |
|
$ |
3,154,072 |
|
|
|
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
September 30, 2024, June 30, 2024, and September 30,
2023.
| |
|
|
|
|
|
|
|
|
|
|
|
| (dollars in thousands,
except share and per share data) |
|
September 30, 2024 |
|
|
June 30, 2024 |
|
|
September 30, 2023 |
|
|
Tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders'
equity |
|
$ |
509,728 |
|
|
$ |
511,291 |
|
|
$ |
502,511 |
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Core deposit intangible |
|
|
(2,194 |
) |
|
|
(2,394 |
) |
|
|
(3,010 |
) |
| Tangible common equity |
|
$ |
436,036 |
|
|
$ |
437,399 |
|
|
$ |
428,003 |
|
| Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets-GAAP |
|
$ |
3,990,477 |
|
|
$ |
3,868,186 |
|
|
$ |
4,069,354 |
|
| Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Core deposit intangible |
|
|
(2,194 |
) |
|
|
(2,394 |
) |
|
|
(3,010 |
) |
| Tangible assets |
|
$ |
3,916,785 |
|
|
$ |
3,794,294 |
|
|
$ |
3,994,846 |
|
| Common shares outstanding |
|
|
17,693,416 |
|
|
|
18,182,154 |
|
|
|
18,995,303 |
|
| Common equity to assets
ratio |
|
|
12.77 |
% |
|
|
13.22 |
% |
|
|
12.35 |
% |
| Tangible common equity to
tangible assets ratio |
|
|
11.13 |
% |
|
|
11.53 |
% |
|
|
10.71 |
% |
| Book value per share |
|
$ |
28.81 |
|
|
$ |
28.12 |
|
|
$ |
26.45 |
|
| Tangible book value per
share |
|
$ |
24.64 |
|
|
$ |
24.06 |
|
|
$ |
22.53 |
|
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 |
|
|
Nine Months Ended September 30, |
|
| (dollars in
thousands) |
|
September 30, 2024 |
|
|
June 30, 2024 |
|
|
September 30, 2023 |
|
|
2024 |
|
|
2023 |
|
|
Net income available to common shareholders |
|
$ |
6,999 |
|
|
$ |
7,245 |
|
|
$ |
8,473 |
|
|
$ |
22,280 |
|
|
$ |
30,392 |
|
| Average shareholders'
equity |
|
|
508,720 |
|
|
|
512,185 |
|
|
|
504,432 |
|
|
|
511,222 |
|
|
|
498,976 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
Average core deposit intangible |
|
|
(2,326 |
) |
|
|
(2,525 |
) |
|
|
(3,165 |
) |
|
|
(2,525 |
) |
|
|
(3,398 |
) |
| Adjusted average tangible
common equity |
|
$ |
434,896 |
|
|
$ |
438,162 |
|
|
$ |
429,769 |
|
|
$ |
437,199 |
|
|
$ |
424,080 |
|
| Return on average common
equity |
|
|
5.47 |
% |
|
|
5.69 |
% |
|
|
6.66 |
% |
|
|
5.82 |
% |
|
|
8.14 |
% |
| Return on average tangible
common equity |
|
|
6.40 |
% |
|
|
6.65 |
% |
|
|
7.82 |
% |
|
|
6.81 |
% |
|
|
9.58 |
% |
RBB Bancorp (NASDAQ:RBB)
Historical Stock Chart
From Nov 2024 to Dec 2024
RBB Bancorp (NASDAQ:RBB)
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From Dec 2023 to Dec 2024
