RBB Bancorp Q4 Earnings Drop as Credit Losses Mount, NIM Shows Improvement

RBB Bancorp Reports Fourth Quarter and Fiscal Year 2024听Earnings

Rhea-AI Impact

(Low)

Rhea-AI Sentiment

(Negative)

Insights

RBB Bancorp's Q4 2024 results reveal a complex financial picture with both concerning trends and resilience indicators. The most significant red flag is the substantial deterioration in asset quality, with nonperforming assets jumping to 2.03% of total assets from 1.52% in Q3, driven largely by a $26.4M construction loan downgrade. This spike in problem assets, combined with increased special mention loans, suggests potential further credit challenges ahead.

However, there are some positive developments in the bank's core operations. The net interest margin expanded by 8 basis points to 2.76%, driven by declining funding costs outpacing asset yield compression. The deposit base shows stability with noninterest-bearing deposits increasing to 18.3% of total deposits, improving the funding mix.

The efficiency ratio deterioration to 61.5% from 57.5% QoQ warrants attention, though this was primarily due to one-time factors rather than structural issues. The bank maintains solid capital levels with tangible book value per share at $24.51, though this represents a slight decline from Q3.

Key metrics to monitor include:

The resolution progress of the $81.0M in nonperforming assets
Trends in the 2.14% special mention loan ratio
The stability of the 97.5% loan-to-deposit ratio

02/03/2025 - 04:58 PM

LOS ANGELES, Feb. 03, 2025 (GLOBE NEWSWIRE) -- RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the 鈥淏ank鈥�) and RBB Asset Management Company (鈥淩AM鈥�), collectively referred to herein as the 鈥淐ompany,鈥� announced financial results for the quarter and fiscal year ended December 31, 2024.

Fourth听Quarter听2024听Highlights

Net income totaled听$4.4 million, or $0.25 diluted earnings per share
Return on average assets of 0.44%, compared to 0.72%听for the quarter ended September 30, 2024
Net interest margin of 2.76%听compared to 2.68%听for the quarter ended September 30, 2024
Book value and tangible book value听per share⁽¹⁾听of $28.66 and $24.51 at December 31, 2024, compared to $28.81 and $24.64 at September 30, 2024

The Company reported net income of听$4.4 million, or $0.25听diluted earnings per share, for the quarter听ended December 31, 2024, compared to net income of $7.0 million, or $0.39听diluted earnings per share, for the quarter听ended September听30, 2024. Net income for the year ended December 31, 2024 totaled $26.7 million, or $1.47听diluted earnings per share, compared to net income of $42.5 million, or $2.24 diluted earnings per share, for the year ended December 31, 2023.

鈥淒eclining funding costs and stable interest income drove net interest income and net interest margin higher in the fourth quarter,鈥� said Johnny Lee, President of the Company and President and Chief Executive Officer of the Bank. 鈥淲e continue to make good progress on our growth initiatives and expect we will resume loan growth in the first quarter and for the remainder of the year.听 We did see an increase in nonperforming loans mainly due to one credit relationship that was downgraded late in the fourth quarter.听 We are actively working to resolve our nonperforming loans as quickly as possible while minimizing听the impact to earnings and capital.鈥�

鈥淲e are saddened by the devastation caused by the recent fires in Los Angeles,鈥� said David Morris, Chief Executive Officer of the Company. 鈥淲e stand ready to support our community and neighbors as they begin the process of rebuilding.鈥�

(1)	Reconciliations of the non鈥揢.S. generally accepted accounting principles (鈥淕AAP鈥�) measures included at the end of this press release.
听	听

Net Interest Income and Net Interest Margin

Net interest income听was $26.0 million听for the fourth听quarter of 2024, compared to $24.5 million听for the third听quarter of 2024. The $1.4听million increase听was due to a听$130,000 increase in interest income and a听$1.3 million听decrease in interest expense. The increase in interest income was mostly due to higher interest income on cash and investment securities of $1.1 million offset by lower interest income on total loans of $952,000.听The decrease in loan interest income was听mostly due to lower average loans听of $9.8听million and a 10 basis point decrease in the average听loan听yield due to听decreases in market rates and a change in the loan mix. The increase in cash and investment interest income was听attributed to higher听average balances and a higher investment portfolio yield, offset by a lower yield on cash. The decrease in interest expense was mostly due to a 33听basis point decrease in total average interest-bearing听deposit rates offset by听higher average interest-bearing deposits of $33.8听million听in the fourth听quarter of 2024.

Net interest margin (鈥淣IM鈥�) was 2.76%听for the fourth听quarter of 2024, an increase听of 8听basis points from 2.68%听for the third听quarter of 2024. The increase was due to a 25听basis point decrease听in the overall cost of funds, partially offset by听a 15听basis point decrease in the yield听on average听interest-earning assets. The yield听on average听interest-earning assets decreased to 5.79%听for the fourth听quarter of 2024 from 5.94%听for the third听quarter of 2024听due mainly to a 55听basis point decrease in the yield on average cash and cash equivalents听to 5.02%, a decrease in the loan yield of 10 basis points and the impact of听a change in the mix of average-earnings assets.听Average听loans听represented 82% of average听interest-earning assets in the fourth听quarter of 2024, a 2% decrease from the third听quarter of 2024. The decrease in the听loan yield was听attributed mostly to a decrease in market rates and a change in the loan mix.听

The overall cost of funds decreased to 3.32%听in the fourth听quarter of 2024 from 3.57%听in the third quarter of 2024听due to a lower average cost of听interest-bearing deposits.听The overall funding mix for the fourth quarter of 2024 remained relatively unchanged from the third quarter of 2024 with听the ratio听of average noninterest-bearing deposits听to average total听funding sources of 16%.听The all-in average spot rate for total deposits听was 3.15%听at December 31, 2024.

Net interest income听was $99.4 million听for the year ended December 31,听2024, compared to $119.3 million听for the year ended December 31, 2023. The $19.9听million decrease听was due to a听$15.4听million increase in interest expense and a听$4.5 million decrease in interest income. The decrease in interest income was mostly due to lower听interest income on total loans of $9.7听million offset by higher interest income on interest-earning deposits of $4.7 million. The decrease in loan interest income was听mostly due to lower average loans听of $164.3听million. The increase in cash and investment interest income was听attributed to higher听average cash balances and a higher investment portfolio yield, offset by a lower average of investment securities. The increase in interest expense was mostly due to a 72听basis point increase in total average interest-bearing听deposit rates and听higher average interest-bearing deposits of $30.1听million听in the year ended December 31, 2024.

NIM听was 2.70%听for the year ended December 31, 2024, a听decrease听of 46听basis points from 3.16%听for the year ended December 31, 2023. The decrease was due to a 55听basis point increase听in the overall cost of funds, partially offset by听a 2听basis point increase in the yield听on average听interest-earning assets. The yield听on average听interest-earning assets increased to 5.88%听for the year ended December 31, 2024 compared to the prior year听due mainly to a 12听basis point increase in the yield on average cash and cash equivalents听to 5.53%, an 18 basis point increase in the听investment portfolio yield, offset by听the impact of听lower average loan balances.听Average听loans听represented 83% of average听interest-earning assets during 2024, and 85% during 2023.

The overall cost of funds increased to 3.49%听in the year ended December 31, 2024 from 2.94%听in the year ended December 31, 2023 due to a higher average cost of听interest-bearing deposits in response to higher average market interest rates.听The overall funding mix for December 31,听2024 remained relatively unchanged from the prior year with a听ratio听of average noninterest-bearing deposits听to average total听funding sources of 16%.

Provision for Credit Losses

The听provision for听credit losses was听$6.0 million听for the fourth听quarter of 2024听compared to $3.3 million听for听the third听quarter of 2024. The fourth quarter of 2024 provision for credit losses was due to an increase in specific reserves of $4.3听million听and net charge-offs of $2.0 million, partially offset by lower general reserves. The fourth quarter increase in specific reserves included $4.5听million for a construction loan secured by a partially completed mixed-use commercial project.听Fourth听quarter net charge-offs included $1.8听million听for nonaccrual loans that were moved to held for sale ("HFS"). Net charge-offs on an annualized basis represented 0.26% of average loans for the fourth quarter of 2024 compared to 0.16% for the third quarter of 2024.听The fourth quarter provision also took into consideration factors such as changes in loan balances, the loan portfolio mix, the outlook for economic conditions and market interest rates,听and changes in credit quality metrics, including听higher nonperforming loans, and changes in special mention and substandard听loans during the听period.

The provision for听credit losses was听$9.9 million听for the year ended December 31, 2024听compared to $3.4 million听for the year ended December 31,听2023.听The 2024 provision included the impact from an increase in specific reserves听of $6.1听million听and net charge-offs of $3.9听million. Net charge-offs totaled $3.9 million for the year ended December 31, 2024, compared to $3.1 million听for the year ended December 31, 2023. Net charge-offs represented 0.13% of average loans for the fiscal year 2024 compared to 0.10% for the fiscal year 2023.

Noninterest Income

Noninterest income for the fourth听quarter of 2024 was $2.7 million, a听decrease听of $3.0听million from $5.7 million for听the third听quarter of 2024.听This decrease was mostly due to the third quarter of 2024 including a $2.8 million recovery of a fully charged off loan听acquired in a bank acquisition.

Noninterest income for the year ended December 31,听2024 was $15.3 million, an increase听of $317,000 from $15.0 million for听the year ended December 31, 2023.听This increase was mostly due to a $2.9听million increase in听recoveries on purchased loans, a $1.2 million increase in听gain on sale of loans and an听$883,000 increase in gain on OREO, offset by听income from听a $5.0 million听Community Development Financial Institution听Equitable Recovery Program award that was recognized during听2023.

Noninterest Expense

Noninterest expense for the fourth听quarter of 2024听was $17.6 million, an increase of $228,000 from $17.4 million听for the third听quarter of 2024. This increase听was mostly due听to higher听legal and professional expenses of $397,000, partially offset by lower occupancy and equipment expenses of $115,000. The annualized noninterest expenses to average assets ratio听was 1.76%听for the fourth听quarter of 2024,听down听from 1.78%听for the third听quarter of 2024. The efficiency ratio was 61.5% for the fourth听quarter of 2024, up from 57.5% for the third quarter of 2024 due mostly to lower noninterest income as the third quarter included a $2.8 million recovery of a fully charged off loan acquired in a bank acquisition.

Noninterest expense for the year ended December 31, 2024听was $69.2 million, a听decrease of $1.5听million听from $70.7 million听for the year ended December 31,听2023. This decrease听was mostly due听to lower legal and professional expenses of $3.7 million, partially offset by higher salaries and employee benefits of $1.6 million.听The noninterest expenses to average assets ratio听was 1.76%听for the fiscal year 2024 and 2023. The efficiency ratio was 60.3% for the year ended December 31, 2024, up from 52.6% for the year ended December 31, 2023 due mostly to lower net interest income for 2024.

Income Taxes

The effective tax rate was 13.3%听for the fourth听quarter of 2024听and 26.9%听for the third听quarter of 2024.听The decrease in the effective tax rate for the fourth quarter was due primarily to higher tax credits relative to pre-tax net income as compared to the prior quarter.

The effective tax rate was 25.3%听for the year ended December 31, 2024听and 29.5%听for the year ended December 31, 2023.听The decrease in the effective tax rate for 2024 was due primarily to higher tax credits as compared to the prior year.

Balance Sheet

At December听31, 2024, total assets were $4.0 billion, a $2.0听million increase compared to September听30, 2024, and a $33.5 million decrease compared to December听31, 2023.

Loan and Securities Portfolio

Loans held for investment ("HFI") totaled $3.1 billion听as of December听31, 2024, a听decrease听of $38.7听million compared to September听30, 2024 and a $21.4听million increase compared to December 31, 2023.听The decrease听from September听30, 2024听was primarily due to听a听$51.3听million decrease in commercial real estate听("CRE") loans,听a $6.9听million decrease in construction and land development听("C&D") loans and听an $826,000 decrease in听Small Business Administration ("SBA")听loans, partially offset by a $20.6听million increase in single-family residential ("SFR") mortgages and听a听$724,000听increase in commercial and industrial听("C&I") loans.听The loan to deposit ratio was 97.5% at December听31, 2024, compared to听98.6% at September听30, 2024听and 94.2% at December听31, 2023.听

As of December听31, 2024, available-for-sale securities totaled $420.2 million, an increase of $114.5听million from September听30, 2024, primarily related to听the purchase of $79.2听million in short-term commercial paper. As of December听31, 2024, net unrealized losses totaled听$29.2听million, a $6.0听million increase due mostly to听increases in treasury rates, when compared to net unrealized losses of $23.2 million as of September听30, 2024.

Deposits

Total deposits were $3.1听billion听as of December听31, 2024, an $8.4听million decrease compared to September听30, 2024 and a $91.0听million decrease compared to December 31, 2023. The decrease during the fourth听quarter of 2024 was due听to a $27.8听million decrease in听interest-bearing deposits, while听noninterest-bearing deposits increased $19.4听million to $563.0听million as of December 31, 2024听compared to $543.6听million as of September听30, 2024.听The decrease in interest-bearing deposits included a听decrease in听time deposits of $24.7听million听and non-maturity deposits of $3.1听million.听Wholesale deposits听remained relatively unchanged at听$147.5听million at December听31, 2024 compared to $147.3听million at September听30, 2024. Noninterest-bearing deposits represented 18.3% of total deposits at December听31, 2024 compared to 17.6% at September听30, 2024.

Credit Quality

Nonperforming assets totaled $81.0 million, or 2.03%听of total assets, at December听31, 2024, compared to $60.7听million, or 1.52%听of total assets, at September听30, 2024. The $20.4听million increase in nonperforming assets was due听to the addition of one听$26.4听million C&D loan,听$2.0听million in SFR loans and听$890,000 in SBA loans that migrated to nonaccrual status during the fourth quarter of 2024, partially offset by payoffs and paydowns of $6.7 million and听partial charge-offs of $2.0听million.

Nonperforming assets听at December 31, 2024 include听loans HFS with a total fair value of $11.2听million, which were transferred from HFI during the fourth quarter of 2024 after a $1.8 million charge-off against听the allowance for credit losses. These loans were reported as nonperforming loans听at September 30, 2024.

Special mention loans totaled $65.3听million, or 2.14% of total loans, at December听31,听2024, compared to $77.5听million, or 2.51% of total loans, at September听30, 2024.听The $12.2听million decrease was primarily due to听CRE loans totaling听$11.8听million that were听upgraded to pass-rated and $1.8听million in payoffs and paydowns,听offset by听CRE loans totaling $1.4听million听downgraded during the fourth听quarter of 2024.听All special mention loans are听paying current.

Substandard loans totaled $100.3听million, of which $11.2 million were听HFS at December 31, 2024,听compared to $79.8听million听at September听30, 2024.听This听$20.5听million increase was primarily due to听downgrades of one听$26.4 million C&D loan, SFR loans totaling听$2.0听million,听C&I loans totaling $1.9 million and SBA loans totaling $747,000. These downgrades were听offset by payoffs and paydowns totaling $6.5听million,听upgrades听totaling $2.0 million and partial charge-offs totaling $2.0 million. Of the total substandard loans at December 31, 2024, there are听$19.3听million听on accrual status, including an $11.7 million C&D loan that was in the process of renewal and also included听in the 30-89 day delinquent category below.

30-89 day delinquent loans, excluding nonperforming听loans, totaled $22.1听million at听December听31, 2024, compared to听$10.6听million at September听30, 2024.听The $11.5 million increase was mostly due to one听$11.7 million C&D听loan in process of renewal for a completed multifamily project at December 31, 2024, and since year end, it has been brought current and paid down by $1.5 million. Other changes in delinquent loans included听additions听totaling $5.5听million, offset by $3.2听million that returned听to current status,听$1.8 million that migrated to nonaccrual status and $735,000 in payoffs.

As of December听31, 2024, the allowance for credit losses totaled $48.5 million and was comprised of an allowance for loan losses of $47.7 million and a reserve for unfunded commitments of $729,000 (included in 鈥淎ccrued interest and other liabilities鈥�). This compares听to the allowance for credit losses of $44.5听million comprised of an allowance for loan losses of $43.7听million and a reserve for unfunded commitments of $779,000 at September听30, 2024. The $4.0 million听increase in the allowance for credit听losses for the fourth听quarter of 2024 was due to听a $6.0听million provision for credit losses听offset by net听charge-offs of $2.0听million. The increase in charge-offs in the fourth听quarter of 2024 was听primarily due to a decrease in听the estimated fair value of collateral dependent loans and loans moved to HFS.听The allowance for loan听losses as a percentage听of loans HFI increased to 1.56% at December听31, 2024, compared to 1.41%听at September听30, 2024, due to an increase in specific reserves on one C&D loan mentioned previously. The allowance for loan losses as a percentage of nonperforming loans HFI was 68% at December听31, 2024, a听decrease from 72% at September听30, 2024.

听

For the Three Months Ended December 31, 2024

听

For the Year Ended December 31, 2024

听

(dollars in thousands)

Allowance for loan losses

听

Reserve for unfunded loan commitments

听

Allowance for credit losses

听

Allowance for loan losses

听

Reserve for unfunded loan commitments

听

Allowance for credit losses

听

Beginning balance

43,685

听

779

听

44,464

听

41,903

听

640

听

42,543

听

Provision for (reversal of) credit losses

听

6,050

听

(50

)

听

6,000

听

9,768

听

9,857

听

Less loans charged-off

听

(2,092

)

听

鈥�

听

(2,092

)

听

(4,083

)

听

鈥�

听

(4,083

)

Recoveries on loans charged-off

听

鈥�

听

141

听

鈥�

听

141

听

Ending balance

47,729

听

729

听

48,458

听

47,729

听

729

听

48,458

听

Shareholders'听Equity

At December听31, 2024, total shareholders'听equity was $507.9 million, a听$1.9 million听decrease compared to September听30, 2024, and a听$3.4 million decrease compared to December听31, 2023. The decrease in shareholders'听equity for the fourth听quarter of 2024 was听due to higher听net unrealized losses on available-for-sale securities of $4.2听million and common stock cash听dividends paid of $2.9听million,听offset by net income of $4.4 million, and equity compensation activity of $794,000.听The decrease in shareholders'听equity for the year ended 2024 was due to common stock听repurchases of $20.7听million,听common stock cash听dividends paid of $11.7听million and听higher听net unrealized losses on available-for-sale securities of $744,000, offset by听net income of $26.7 million, and equity compensation activity of $3.1 million. Book value per share and听tangible book value per share⁽¹⁾decreased to听$28.66听and听$24.51听at December 31, 2024, down听from $28.81听and $24.64 at September听30, 2024 and听up from $27.47 and $23.48 at December 31, 2023.

Contact:
Lynn Hopkins, Chief Financial Officer
(213) 716-8066
[email protected]

(1)		Reconciliations of the non鈥揢.S. generally accepted accounting principles (鈥淕AAP鈥�) measures included at the end of this press release.
听		听

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in听Los Angeles, California.听As of December听31, 2024, the Company had total assets of听$4.0 billion. Its wholly-owned subsidiary, Royal Business听Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in听Los Angeles County,听Orange County,听and听Ventura County听in听California, in听Las Vegas, Nevada, in听Brooklyn,听Queens, and听Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii.听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.听The Bank has nine branches in听Los Angeles County, two branches in听Ventura County, one branch in听Orange County, California, one branch in听Las Vegas, Nevada, three听branches and one loan operation center in Brooklyn, three branches in Queens, one branch in听Manhattan听in听New York, one branch in Edison, New Jersey,听two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company's administrative and lending center is located at 1055 Wilshire Blvd.,听Los Angeles, California听90017, and its operations center is located at 7025 Orangethorpe Ave.,听Buena Park, California听90621. The Company's website address is听www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, February听4, 2025, to discuss the Company鈥檚 fourth听quarter听2024听financial results.

To listen to the conference call, please dial 1-888-506-0062听or 1-973-528-0011, the Participant ID code is 834092,听conference ID RBBQ424.听A replay of the call will be made available at 1-877-481-4010听or 1-919-882-2331,听the听passcode is 51830,听approximately one hour after the conclusion of the call and will remain available through February听5, 2025.

The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the 鈥淚nvestors鈥� 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鈥檚 operational performance and to enhance investors鈥� 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鈥檚 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,听the effectiveness of the Company鈥�s internal control over financial reporting and disclosure controls and procedures途听the potential for additional material weaknesses in the Company鈥�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;听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 (鈥�U.S.鈥�) federal budget or debt or turbulence or uncertainly in domestic or听foreign financial markets途听the strength of the U.S.听economy in general and the strength of the local economies in which we conduct operations途听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途听credit risks of lending activities and deterioration in asset or credit quality途听extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities途听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途听compliance with the Bank Secrecy Act and other money laundering statutes and regulations途听potential goodwill impairment途听liquidity risk途 failure to comply with debt covenants;听fluctuations in interest rates途听risks associated with acquisitions and the expansion of our business into new markets途听inflation and deflation途听real estate market conditions and the value of real estate collateral途 the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations;听environmental liabilities途听our ability to compete with larger competitors途听our ability to retain key personnel途听successful management of reputational risk途听severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires途 or other adverse external events could harm our business途听geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S.听or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts听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.听and abroad途听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途听general economic or business conditions in Asia, and other regions where the Bank has operations途听failures, interruptions, or security breaches of our information systems途听climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs途听cybersecurity threats and the cost of defending against them途听our ability to adapt our systems to the expanding use of technology in banking途听risk management processes and strategies途听adverse results in legal proceedings途听the impact of regulatory enforcement actions, if any途听certain provisions in our charter and bylaws that may affect acquisition of the Company途听changes in tax laws and regulations途听the impact of governmental efforts to restructure the U.S. financial regulatory system途听the impact of future or recent changes in the Federal Deposit Insurance Corporation听("FDIC") insurance assessment rate and听the rules and regulations related to the calculation of the FDIC insurance assessments途听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听or other accounting standards setters, including Accounting Standards Update听2016-13 (Topic 326, 鈥淢easurement 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途听market disruption and volatility途听fluctuations in the Company鈥檚 stock price途听restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure途听issuances of preferred stock途听our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock途听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鈥檚 public reports, including its Annual Report as filed under Form 10-K听for the year ended December听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鈥檚 earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

听

RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

听

December 31,

听

September 30,

听

June 30,

听

March 31,

听

December 31,

听

2024

听

2024

听

2024

听

2024

听

2023

听

Assets

听

Cash and due from banks

27,747

听

26,388

听

23,313

听

21,887

听

22,671

听

Interest-earning deposits with financial institutions

听

229,998

听

323,002

听

229,456

听

247,356

听

408,702

听

Cash and cash equivalents

听

257,745

听

349,390

听

252,769

听

269,243

听

431,373

听

Interest-earning time deposits with financial institutions

听

600

听

600

听

600

听

600

听

600

听

Investment securities available for sale

听

420,190

听

305,666

听

325,582

听

335,194

听

318,961

听

Investment securities held to maturity

听

5,191

听

5,195

听

5,200

听

5,204

听

5,209

听

Loans held for sale

听

11,250

听

812

听

3,146

听

3,903

听

1,911

听

Loans held for investment

听

3,053,230

听

3,091,896

听

3,047,712

听

3,027,361

听

3,031,861

听

Allowance for loan losses

听

(47,729

)

听

(43,685

)

听

(41,741

)

听

(41,688

)

听

(41,903

)

Net loans held for investment

听

3,005,501

听

3,048,211

听

3,005,971

听

2,985,673

听

2,989,958

听

Premises and equipment, net

听

24,601

听

24,839

听

25,049

听

25,363

听

25,684

听

Federal Home Loan Bank (FHLB) stock

听

15,000

听

15,000

听

15,000

听

15,000

听

15,000

听

Cash surrender value of bank owned life insurance

听

60,296

听

59,889

听

59,486

听

59,101

听

58,719

听

Goodwill

听

71,498

听

71,498

听

71,498

听

71,498

听

71,498

听

Servicing assets

听

6,985

听

7,256

听

7,545

听

7,794

听

8,110

听

Core deposit intangibles

听

2,011

听

2,194

听

2,394

听

2,594

听

2,795

听

Right-of-use assets

听

28,048

听

29,283

听

30,530

听

31,231

听

29,803

听

Accrued interest and other assets

听

83,561

听

70,644

听

63,416

听

65,608

听

66,404

听

Total assets

3,992,477

听

3,990,477

听

3,868,186

听

3,878,006

听

4,026,025

听

Liabilities and shareholders' equity

听

Deposits:

听

Noninterest-bearing demand

563,012

听

543,623

听

542,971

听

539,517

听

539,621

听

Savings, NOW and money market accounts

听

663,034

听

666,089

听

647,770

听

642,840

听

632,729

听

Time deposits, $250,000 and under

听

1,007,452

听

1,052,462

听

1,014,189

听

1,083,898

听

1,190,821

听

Time deposits, greater than $250,000

听

850,291

听

830,010

听

818,675

听

762,074

听

811,589

听

Total deposits

听

3,083,789

听

3,092,184

听

3,023,605

听

3,028,329

听

3,174,760

听

FHLB advances

听

200,000

听

200,000

听

150,000

听

150,000

听

150,000

听

Long-term debt, net of issuance costs

听

119,529

听

119,433

听

119,338

听

119,243

听

119,147

听

Subordinated debentures

听

15,156

听

15,102

听

15,047

听

14,993

听

14,938

听

Lease liabilities - operating leases

听

29,705

听

30,880

听

32,087

听

32,690

听

31,191

听

Accrued interest and other liabilities

听

36,421

听

23,150

听

16,818

听

18,765

听

24,729

听

Total liabilities

听

3,484,600

听

3,480,749

听

3,356,895

听

3,364,020

听

3,514,765

听

Shareholders' equity:

听

Common stock

听

259,957

听

259,280

听

266,160

听

271,645

听

271,925

听

Additional paid-in capital

听

3,645

听

3,520

听

3,456

听

3,348

听

3,623

听

Retained earnings

听

264,460

听

262,946

听

262,518

听

259,903

听

255,152

听

Non-controlling interest

听

Accumulated other comprehensive loss, net

听

(20,257

)

听

(16,090

)

听

(20,915

)

听

(20,982

)

听

(19,512

)

Total shareholders' equity

听

507,877

听

509,728

听

511,291

听

513,986

听

511,260

听

Total liabilities and shareholders鈥� equity

3,992,477

听

3,990,477

听

3,868,186

听

3,878,006

听

4,026,025

听

RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except share and per share data)听

听

For the Three Months Ended

听

For the Year Ended

听

December 31, 2024

听

September 30, 2024

听

December 31, 2023

听

December 31, 2024

听

December 31, 2023

Interest and dividend income:

听

Interest and fees on loans

46,374

听

47,326

听

45,895

听

184,567

听

194,264

Interest on interest-earning deposits

听

3,641

听

3,388

听

4,650

听

15,422

听

10,746

Interest on investment securities

听

3,962

听

3,127

听

3,706

听

14,331

听

14,028

Dividend income on FHLB stock

听

330

听

326

听

312

听

1,314

听

1,125

Interest on federal funds sold and other

听

248

听

258

听

269

听

1,027

听

985

Total interest and dividend income

听

54,555

听

54,425

听

54,832

听

216,661

听

221,148

Interest expense:

听

Interest on savings deposits, NOW and money market accounts

听

4,671

听

5,193

听

4,026

听

19,295

听

12,205

Interest on time deposits

听

21,361

听

22,553

听

22,413

听

89,086

听

76,837

Interest on long-term debt and subordinated debentures

听

1,660

听

1,681

听

2,284

听

6,699

听

9,951

Interest on FHLB advances

听

886

听

453

听

440

听

2,217

听

2,869

Total interest expense

听

28,578

听

29,880

听

29,163

听

117,297

听

101,862

Net interest income before provision for credit losses

听

25,977

听

24,545

听

25,669

听

99,364

听

119,286

Provision for (reversal of) credit losses

听

6,000

听

3,300

听

(431

)

听

9,857

听

3,362

Net interest income after provision for (reversal of) credit losses

听

19,977

听

21,245

听

26,100

听

89,507

听

115,924

Noninterest income:

听

Service charges and fees

听

988

听

1,071

听

972

听

4,115

听

4,172

Gain on sale of loans

听

376

听

447

听

116

听

1,586

听

374

Loan servicing fees, net of amortization

听

492

听

605

听

616

听

2,265

听

2,576

Increase in cash surrender value of life insurance

听

407

听

403

听

374

听

1,577

听

1,409

(Loss) gain on OREO

听

鈥�

听

鈥�

听

(57

)

听

1,016

听

133

Other income

听

466

听

3,220

听

5,373

听

4,776

听

6,354

Total noninterest income

听

2,729

听

5,746

听

7,394

听

15,335

听

15,018

Noninterest expense:

听

Salaries and employee benefits

听

9,927

听

10,008

听

8,860

听

39,395

听

37,795

Occupancy and equipment expenses

听

2,403

听

2,518

听

2,387

听

9,803

听

9,629

Data processing

听

1,499

听

1,472

听

1,357

听

5,857

听

5,326

Legal and professional

听

1,355

听

958

听

1,291

听

4,453

听

8,198

Office expenses

听

399

听

348

听

349

听

1,455

听

1,512

Marketing and business promotion

听

251

听

252

听

241

听

864

听

1,132

Insurance and regulatory assessments

听

677

听

658

听

1,122

听

3,298

听

3,165

Core deposit premium

听

182

听

200

听

215

听

784

听

923

Other expenses

听

956

听

1,007

听

571

听

3,254

听

3,016

Total noninterest expense

听

17,649

听

17,421

听

16,393

听

69,163

听

70,696

Income before income taxes

听

5,057

听

9,570

听

17,101

听

35,679

听

60,246

Income tax expense

听

672

听

2,571

听

5,028

听

9,014

听

17,781

Net income

4,385

听

6,999

听

12,073

听

26,665

听

42,465

听

Net income per share

听

Basic

0.25

听

0.39

听

0.64

听

1.47

听

2.24

Diluted

0.25

听

0.39

听

0.64

听

1.47

听

2.24

Cash dividends declared per common share

0.16

听

0.16

听

0.16

听

0.64

听

0.64

Weighted-average common shares outstanding

听

Basic

听

17,704,992

听

17,812,791

听

18,887,501

听

18,121,764

听

18,965,346

Diluted

听

17,796,840

听

17,885,359

听

18,900,351

听

18,183,319

听

18,985,233

听

RBB BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
(Unaudited)

听

For the Three Months Ended

听

December 31, 2024

听

September 30, 2024

听

December 31, 2023

听

听(tax-equivalent basis, dollars in thousands)

Average

听

Interest

听

Yield /

听

Average

听

Interest

听

Yield /

听

Average

听

Interest

听

Yield /

听

Balance

听

& Fees

听

Rate

听

Balance

听

& Fees

听

Rate

听

Balance

听

& Fees

听

Rate

听

Interest-earning assets

听

Cash and cash equivalents ⁽¹⁾

308,455

听

3,890

听

5.02

听

260,205

听

3,646

听

5.57

听

333,940

听

4,919

听

5.84

FHLB Stock

听

15,000

听

330

听

8.75

听

15,000

听

326

听

8.65

听

15,000

听

312

听

8.25

Securities

听

Available for sale ⁽²⁾

听

361,253

听

3,939

听

4.34

听

298,948

听

3,105

听

4.13

听

329,426

听

3,684

听

4.44

Held to maturity ⁽²⁾

听

5,194

听

3.68

听

5,198

听

3.52

听

5,212

听

3.50

Total loans

听

3,059,786

听

46,374

听

6.03

听

3,069,578

听

47,326

听

6.13

听

3,055,232

听

45,895

听

5.96

Total interest-earning assets

听

3,749,688

听

54,581

听

5.79

听

3,648,929

听

54,449

听

5.94

听

3,738,810

听

54,856

听

5.82

Total noninterest-earning assets

听

244,609

听

242,059

听

253,385

听

Total average assets

3,994,297

听

3,890,988

听

3,992,195

听

Interest-bearing liabilities

听

NOW

听

53,879

听

254

听

1.88

听

55,757

听

277

听

1.98

听

54,378

听

214

听

1.56

Money market

听

463,850

听

3,735

听

3.20

听

439,936

听

4,093

听

3.70

听

422,582

听

3,252

听

3.05

Saving deposits

听

162,351

听

682

听

1.67

听

164,515

听

823

听

1.99

听

148,354

听

560

听

1.50

Time deposits, $250,000 and under

听

1,034,946

听

11,583

听

4.45

听

1,037,365

听

12,312

听

4.72

听

1,162,014

听

13,244

听

4.52

Time deposits, greater than $250,000

听

835,583

听

9,778

听

4.66

听

819,207

听

10,241

听

4.97

听

781,833

听

9,169

听

4.65

Total interest-bearing deposits

听

2,550,609

听

26,032

听

4.06

听

2,516,780

听

27,746

听

4.39

听

2,569,161

听

26,439

听

4.08

FHLB advances

听

200,000

听

886

听

1.76

听

150,543

听

453

听

1.20

听

150,000

听

440

听

1.16

Long-term debt

听

119,466

听

1,295

听

4.31

听

119,370

听

1,295

听

4.32

听

155,536

听

1,895

听

4.83

Subordinated debentures

听

15,121

听

365

听

9.60

听

15,066

听

386

听

10.19

听

14,902

听

389

听

10.36

Total interest-bearing liabilities

听

2,885,196

听

28,578

听

3.94

听

2,801,759

听

29,880

听

4.24

听

2,889,599

听

29,163

听

4.00

Noninterest-bearing liabilities

听

Noninterest-bearing deposits

听

539,900

听

528,081

听

535,554

听

Other noninterest-bearing liabilities

听

56,993

听

52,428

听

61,858

听

Total noninterest-bearing liabilities

听

596,893

听

580,509

听

597,412

听

Shareholders' equity

听

512,208

听

508,720

听

505,184

听

Total liabilities and shareholders' equity

3,994,297

听

3,890,988

听

3,992,195

听

Net interest income / interest rate spreads

听

26,003

听

1.85

听

24,569

听

1.70

听

25,693

听

1.82

Net interest margin

听

2.76

听

2.68

听

2.73

听

Total cost of deposits

3,090,509

听

26,032

听

3.35

听

3,044,861

听

27,746

听

3.63

听

3,104,715

听

26,439

听

3.38

Total cost of funds

3,425,096

听

28,578

听

3.32

听

3,329,840

听

29,880

听

3.57

听

3,425,153

听

29,163

听

3.38

听

____________________

(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.
听	听

听

RBB BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
(Unaudited)

听

For the Year Ended

听

December 31, 2024

听

December 31, 2023

听

听(tax-equivalent basis, dollars in thousands)

Average

听

Interest

听

Yield /

听

Average

听

Interest

听

Yield /

听

Balance

听

& Fees

听

Rate

听

Balance

听

& Fees

听

Rate

听

Interest-earning assets

听

Cash and cash equivalents ⁽¹⁾

297,331

听

16,449

听

5.53

听

216,851

听

11,731

听

5.41

FHLB Stock

听

15,000

听

1,314

听

8.76

听

15,000

听

1,125

听

7.50

Securities

听

Available for sale ⁽²⁾

听

324,644

听

14,242

听

4.39

听

331,357

听

13,928

听

4.20

Held to maturity⁽²⁾

听

5,200

听

188

听

3.62

听

5,509

听

198

听

3.59

Total loans

听

3,041,337

听

184,567

听

6.07

听

3,205,625

听

194,264

听

6.06

Total interest-earning assets

听

3,683,512

听

216,760

听

5.88

听

3,774,342

听

221,246

听

5.86

Total noninterest-earning assets

听

243,258

听

246,980

听

Total average assets

3,926,770

听

4,021,322

听

Interest-bearing liabilities

听

NOW

56,158

听

1,105

听

1.97

听

58,191

听

725

听

1.25

Money market

听

436,925

听

15,231

听

3.49

听

429,102

听

10,565

听

2.46

Saving deposits

听

162,243

听

2,959

听

1.82

听

126,062

听

915

听

0.73

Time deposits, $250,000 and under

听

1,074,291

听

50,059

听

4.66

听

1,146,513

听

47,150

听

4.11

Time deposits, greater than $250,000

听

803,187

听

39,027

听

4.86

听

742,839

听

29,687

听

4.00

Total interest-bearing deposits

听

2,532,804

听

108,381

听

4.28

听

2,502,707

听

89,042

听

3.56

FHLB advances

听

162,705

听

2,217

听

1.36

听

172,219

听

2,869

听

1.67

Long-term debt

听

119,324

听

5,182

听

4.34

听

169,182

听

8,477

听

5.01

Subordinated debentures

听

15,039

听

1,517

听

10.09

听

14,821

听

1,474

听

9.95

Total interest-bearing liabilities

听

2,829,872

听

117,297

听

4.14

听

2,858,929

听

101,862

听

3.56

Noninterest-bearing liabilities

听

Noninterest-bearing deposits

听

531,458

听

602,291

听

Other noninterest-bearing liabilities

听

53,970

听

59,562

听

Total noninterest-bearing liabilities

听

585,428

听

661,853

听

Shareholders' equity

听

511,470

听

500,540

听

Total liabilities and shareholders' equity

3,926,770

听

4,021,322

听

Net interest income / interest rate spreads

听

99,463

听

1.74

听

119,384

听

2.30

Net interest margin

听

2.70

听

3.16

听

Total cost of deposits

3,064,262

听

108,381

听

3.54

听

3,104,998

听

89,042

听

2.87

Total cost of funds

3,361,330

听

117,297

听

3.49

听

3,461,220

听

101,862

听

2.94

听

____________________

(1)	Includes income and average balances for interest-earning听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.
听	听

听

RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

听

At or for the Three Months Ended

听

At or for the Year Ended December 31,

听

December 31,

听

September 30,

听

December 31,

听

2024

听

2024

听

2023

听

2024

听

2023

听

Per share data (common stock)

听

Book value

28.66

听

28.81

听

27.47

听

28.66

听

27.47

听

Tangible book value ⁽¹⁾

24.51

听

24.64

听

23.48

听

24.51

听

23.48

听

Performance ratios

听

Return on average assets, annualized

听

0.44

听

0.72

听

1.20

听

0.68

听

1.06

Return on average shareholders' equity, annualized

听

3.41

听

5.47

听

9.48

听

5.21

听

8.48

Return on average tangible common equity, annualized ⁽¹⁾

听

3.98

听

6.40

听

11.12

听

6.09

听

9.97

Noninterest income to average assets, annualized

听

0.27

听

0.59

听

0.73

听

0.39

听

0.37

Noninterest expense to average assets, annualized

听

1.76

听

1.78

听

1.63

听

1.76

听

1.76

Yield on average earning assets

听

5.79

听

5.94

听

5.82

听

5.88

听

5.86

Yield on average loans

听

6.03

听

6.13

听

5.96

听

6.07

听

6.06

Cost of average total deposits ⁽²⁾

听

3.35

听

3.63

听

3.38

听

3.54

听

2.87

Cost of average interest-bearing deposits

听

4.06

听

4.39

听

4.08

听

4.28

听

3.56

Cost of average interest-bearing liabilities

听

3.94

听

4.24

听

4.00

听

4.14

听

3.56

Net interest spread

听

1.85

听

1.70

听

1.82

听

1.74

听

2.30

Net interest margin

听

2.76

听

2.68

听

2.73

听

2.70

听

3.16

Efficiency ratio ⁽³⁾

听

61.48

听

57.51

听

49.58

听

60.30

听

52.64

Common stock dividend payout ratio

听

64.00

听

41.03

听

25.00

听

43.54

听

28.57

听

____________________

(1)		Non-GAAP measure. See Non鈥揋AAP 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.
听		听

听	听										听
RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) *(Dollars in thousands)*
听	听										听
听	At or for the quarter ended										听
听	December 31,		听	听	September 30,		听	听	December 31,		听
听	2024		听	听	2024		听	听	2023		听
Credit Quality Data:	听	听	听	听	听	听	听	听	听	听	听
Special mention loans	$	65,329	听	听	$	77,501	听	听	$	32,842	听
Special mention loans to total loans	听	2.14	%	听	听	2.51	%	听	听	1.08	%
Substandard loans HFI	$	89,141	听	听	$	79,831	听	听	$	61,099	听
Substandard loans HFS	$	11,195	听	听	$	鈥�	听	听	$	鈥�	听
Substandard loans HFI to total loans HFI	听	2.92	%	听	听	2.58	%	听	听	2.02	%
Loans 30-89 days past due, excluding nonperforming loans	$	22,086	听	听	$	10,625	听	听	$	16,803	听
Loans 30-89 days past due, excluding nonperforming loans, to total loans	听	0.72	%	听	听	0.34	%	听	听	0.55	%
Nonperforming loans HFI	$	69,843	听	听	$	60,662	听	听	$	31,619	听
Nonperforming loans HFS	$	11,195	听	听	$	鈥�	听	听	$	鈥�	听
OREO	$	鈥�	听	听	$	鈥�	听	听	$	鈥�	听
Nonperforming assets	$	81,038	听	听	$	60,662	听	听	$	31,619	听
Nonperforming loans HFI to total loans HFI	听	2.29	%	听	听	1.96	%	听	听	1.04	%
Nonperforming assets to total assets	听	2.03	%	听	听	1.52	%	听	听	0.79	%
听	听	听	听	听	听	听	听	听	听	听	听
Allowance for loan losses	$	47,729	听	听	$	43,685	听	听	$	41,903	听
Allowance for loan losses to total loans HFI	听	1.56	%	听	听	1.41	%	听	听	1.38	%
Allowance for loan losses to nonperforming loans HFI	听	68.34	%	听	听	72.01	%	听	听	132.52	%
Net charge-offs	$	2,006	听	听	$	1,201	听	听	$	109	听
Net charge-offs to average loans	听	0.26	%	听	听	0.16	%	听	听	0.01	%
听	听	听	听	听	听	听	听	听	听	听	听
Capital ratios ⁽¹⁾	听	听	听	听	听	听	听	听	听	听	听
Tangible common equity to tangible assets ⁽²⁾	听	11.08	%	听	听	11.13	%	听	听	11.06	%
Tier 1 leverage ratio	听	11.92	%	听	听	12.19	%	听	听	11.99	%
Tier 1 common capital to risk-weighted assets	听	17.94	%	听	听	18.16	%	听	听	19.07	%
Tier 1 capital to risk-weighted assets	听	18.52	%	听	听	18.75	%	听	听	19.69	%
Total capital to risk-weighted assets	听	24.49	%	听	听	24.80	%	听	听	25.92	%
听	听	听	听	听	听	听	听	听	听	听	听

____________________

(1	)	December 31, 2024 capital ratios are preliminary.
(2	)	Non-GAAP measure. See听Non-GAAP听reconciliations set forth at the end of this press release.
听	听	听

听

RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

听

Loan Portfolio Detail

As of December 31, 2024

听

As of September 30, 2024

听

As of December 31, 2023

听

(dollars in thousands)

听

Loans:

听

Commercial and industrial

129,585

听

4.2

听

128,861

听

4.2

听

130,096

听

4.3

SBA

听

47,263

听

1.5

听

48,089

听

1.6

听

52,074

听

1.7

Construction and land development

听

173,290

听

5.7

听

180,196

听

5.8

听

181,469

听

6.0

Commercial real estate ⁽¹⁾

听

1,201,420

听

39.3

听

1,252,682

听

40.5

听

1,167,857

听

38.5

Single-family residential mortgages

听

1,494,022

听

48.9

听

1,473,396

听

47.7

听

1,487,796

听

49.1

Other loans

听

7,650

听

0.4

听

8,672

听

0.2

听

12,569

听

0.4

Total loans ⁽²⁾

3,053,230

听

100.0

听

3,091,896

听

100.0

听

3,031,861

听

100.0

Allowance for loan losses

听

(47,729

)

听

(43,685

)

听

(41,903

)

听

Total loans, net

3,005,501

听

3,048,211

听

2,989,958

听

_____________________

(1)		Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
(2)		Net of discounts and deferred fees and costs of $488, $467, and $542听as of December听31, 2024, September听30, 2024, and December听31, 2023, respectively.
听		听

听

Deposits

As of December 31, 2024

听

As of September 30, 2024

听

As of December 31, 2023

听

(dollars in thousands)

听

Deposits:

听

Noninterest-bearing demand

563,012

听

18.3

听

543,623

听

17.6

听

539,621

听

17.0

Savings, NOW and money market accounts

听

663,034

听

21.5

听

666,089

听

21.5

听

632,729

听

19.9

Time deposits, $250,000 and under

听

882,438

听

28.6

听

926,877

听

30.0

听

876,918

听

27.6

Time deposits, greater than $250,000

听

827,854

听

26.8

听

808,304

听

26.1

听

719,892

听

22.7

Wholesale deposits⁽¹⁾

听

147,451

听

4.8

听

147,291

听

4.8

听

405,600

听

12.8

Total deposits

3,083,789

听

100.0

听

3,092,184

听

100.0

听

3,174,760

听

100.0

听

______________________

(1)		Includes brokered deposits,听collateralized deposits from the State of California, and deposits acquired through听internet listing services.
听		听

Non-GAAP Reconciliations

Tangible Book Value Reconciliations

Tangible book value per share is a non-GAAP disclosure.听Management measures听tangible book value per share听to assess the Company鈥檚 capital strength and business performance and believes this听is听helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders鈥� equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of December听31, 2024, September听30, 2024, and December听31, 2023.

听	听		听	听	听	听	听	听	听	听	听
*(dollars in thousands, except share and per share data)*	December 31, 2024		听	听	September 30, 2024		听	听	December 31, 2023		听
Tangible common equity:	听	听	听	听	听	听	听	听	听	听	听
Total shareholders' equity	$	507,877	听	听	$	509,728	听	听	$	511,260	听
Adjustments	听	听	听	听	听	听	听	听	听	听	听
Goodwill	听	(71,498	)	听	听	(71,498	)	听	听	(71,498	)
Core deposit intangible	听	(2,011	)	听	听	(2,194	)	听	听	(2,795	)
Tangible common equity	$	434,368	听	听	$	436,036	听	听	$	436,967	听
Tangible assets:	听	听	听	听	听	听	听	听	听	听	听
Total assets-GAAP	$	3,992,477	听	听	$	3,990,477	听	听	$	4,026,025	听
Adjustments	听	听	听	听	听	听	听	听	听	听	听
Goodwill	听	(71,498	)	听	听	(71,498	)	听	听	(71,498	)
Core deposit intangible	听	(2,011	)	听	听	(2,194	)	听	听	(2,795	)
Tangible assets	$	3,918,968	听	听	$	3,916,785	听	听	$	3,951,732	听
Common shares outstanding	听	17,720,416	听	听	听	17,693,416	听	听	听	18,609,179	听
Common equity to assets ratio	听	12.72	%	听	听	12.77	%	听	听	12.70	%
Tangible common equity to tangible assets ratio	听	11.08	%	听	听	11.13	%	听	听	11.06	%
Book value per share	$	28.66	听	听	$	28.81	听	听	$	27.47	听
Tangible book value per share	$	24.51	听	听	$	24.64	听	听	$	23.48	听
听	听	听	听	听	听	听	听	听	听	听	听
听	听	听	听	听	听	听	听	听	听	听	听

Return on Average Tangible Common Equity

Management measures return on average tangible common equity (鈥淩OATCE鈥�) to assess the Company鈥檚 capital strength and business performance and believes this is听helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights)听and is reviewed by banking and financial institution regulators when assessing a financial institution鈥檚 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听to its most comparable GAAP measure:

听

Three Months Ended

听

Year Ended December 31,

听

(dollars in thousands)

December 31, 2024

听

September 30, 2024

听

December 31, 2023

听

2024

听

2023

听

Net income available to common shareholders

4,385

听

6,999

听

12,073

听

26,665

听

42,465

听

Average shareholders' equity

听

512,208

听

508,720

听

505,184

听

511,470

听

500,540

听

Adjustments:

听

Average goodwill

听

(71,498

)

听

(71,498

)

听

(71,498

)

听

(71,498

)

听

(71,498

)

Average core deposit intangible

听

(2,129

)

听

(2,326

)

听

(2,935

)

听

(2,425

)

听

(3,282

)

Adjusted average tangible common equity

438,581

听

434,896

听

430,751

听

437,547

听

425,760

听

Return on average common equity

听

3.41

听

5.47

听

9.48

听

5.21

听

8.48

Return on average tangible common equity

听

3.98

听

6.40

听

11.12

听

6.09

听

9.97

FAQ

What was RBB Bancorp's net income for Q4 2024?

RBB Bancorp reported net income of $4.4 million, or $0.25 per diluted share, for Q4 2024.

How did RBB's net interest margin change in Q4 2024?

RBB's net interest margin increased to 2.76% in Q4 2024, up from 2.68% in Q3 2024.

What was RBB's loan-to-deposit ratio at the end of 2024?

RBB's loan-to-deposit ratio was 97.5% as of December 31, 2024.

How much did RBB's nonperforming assets total in Q4 2024?

Nonperforming assets totaled $81.0 million, or 2.03% of total assets, at December 31, 2024.

What was RBB's provision for credit losses in Q4 2024?

RBB's provision for credit losses was $6.0 million in Q4 2024, up from $3.3 million in Q3 2024.

AG真人官方

RBB Bancorp Reports Fourth Quarter and Fiscal Year 2024听Earnings

Insights

FAQ

What was RBB Bancorp's net income for Q4 2024?

How did RBB's net interest margin change in Q4 2024?

What was RBB's loan-to-deposit ratio at the end of 2024?

How much did RBB's nonperforming assets total in Q4 2024?

What was RBB's provision for credit losses in Q4 2024?

NASDAQ:RBB

RBB Rankings

RBB Latest News

RBB Stock Data

RBB Bancorp Reports Fourth Quarter and Fiscal Year 2024听Earnings

Insights

Financial Analyst negative

FAQ

What was RBB Bancorp's net income for Q4 2024?

How did RBB's net interest margin change in Q4 2024?

What was RBB's loan-to-deposit ratio at the end of 2024?

How much did RBB's nonperforming assets total in Q4 2024?

What was RBB's provision for credit losses in Q4 2024?

NASDAQ:RBB

RBB Rankings

RBB Latest News

RBB Stock Data

Related Articles