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RBB Bancorp Reports First Quarter 2024 Earnings
First Quarter 2024 Highlights
Net income totaled $8.0 million, or $0.43 diluted earnings per share. Return on average assets of 0.81%, compared to 1.20% for last quarter. Net interest margin of 2.69%, down 4 basis points, compared to 2.73% for last quarter. Return on average common equity of 6.30% and return on average tangible common equity(1) of 7.37%, down from 9.48% and 11.12% for last quarter. Board authorized a stock repurchase program for up to 1 million shares of common stock. Repurchased 80,285 shares of common stock for $1.5 million during the first quarter. Book value and tangible book value per share(1) increased to $27.67 and $23.68, up from $27.47 and $23.48 at the end of last quarter.
The Company reported net income of $8.0 million, or $0.43 diluted earnings per share, for the quarter ended March 31, 2024, compared to net income of $12.1 million, or $0.64 diluted earnings per share, for the quarter ended December 31, 2023. The results for the quarter ended December 31, 2023 included a Community Development Financial Institution ("CDFI") Equitable Recovery Program ("ERP") award of $5.0 million on a pre-tax basis.
"First, I am happy to share the formal appointment of Lynn Hopkins as the Company's Chief Financial Officer. We have sincerely appreciated her expertise since joining RBB in late 2024 with her interim title and we now look forward to her ongoing contributions as an official member of our Company's leadership team.
"Turning to our first quarter financial performance, our earnings and margins showed signs of stabilizing in the first quarter with loan balances remaining flat and our net interest margin declining just 4 basis points," said David Morris, CEO of RBB Bancorp. "While changing expectations about the timing and size of rate cuts makes forecasting challenging, we are cautiously optimistic that margins should start to recover as deposit costs stabilize and loan yields continue to increase."
"The team has done a good job stabilizing results during a challenging period," said Dr. James Kao, Chairman of the Company. "The Board of Directors believes we are well-positioned to succeed and enhance shareholder value over the coming quarters."
(1) Reconciliations of the non-U.S. generally accepted accounting principles ("GAAP") measures included at the end of this press release. 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 $24.9 million for the first quarter of 2024, compared to $25.7 million for the fourth quarter of 2023. The $792,000 decrease in net interest income was due to higher interest expense of $755,000 and lower interest income of $37,000. The increase in interest expense was due to higher average rates paid on total interest-bearing liabilities, offset by lower average balances of total interest-bearing liabilities, including the impact of the Company's $55 million redemption of subordinated notes in the prior quarter.
Net interest margin was 2.69% for the first quarter of 2024, a decrease of four basis points from 2.73% in the fourth quarter of 2023. The decrease was due to the 16 basis point increase in the overall cost of funds exceeding the 10 basis point increase in the yield on average total interest-earning assets. The yield on average total interest-earning assets increased to 5.92% for the first quarter of 2024 compared to 5.82% for the fourth quarter of 2023 due mainly to an 11 basis point increase in the yield on average total loans to 6.07% for the first quarter of 2024 compared to 5.96% for the fourth quarter of 2023. The 16 basis point increase in the overall cost of funds was due primarily to a 24 basis point increase in the average cost of total interest-bearing deposits to 4.32% in the first quarter of 2024, offset by the positive impact of the Company's $55 million redemption of subordinated notes during the fourth quarter of 2023. The cost of total interest-bearing deposits increased due primarily to repricing deposits as a result of the higher interest rate environment and peer bank deposit competition. In addition, while average noninterest-bearing deposits decreased $7.2 million, the ratio of average noninterest-bearing deposits to average total funding sources remained unchanged from the prior quarter at 16%.
Provision for Credit Losses
The Company recorded no provision for credit losses for the first quarter of 2024 compared to a reversal of its provision for credit losses of $431,000 in the fourth quarter of 2023. The $0 provision for the first quarter of 2024 took into consideration factors including: lower specific reserves, changes in the loan portfolio mix, ongoing uncertainty in the economy related to inflation and outlook on market interest rates, and credit quality metrics, including higher nonperforming loans at the end of the first quarter of 2024 compared to the end of 2023.
Noninterest Income
Noninterest income for the first quarter of 2024 was $3.4 million, a decrease of $4.0 million from $7.4 million in the fourth quarter of 2023. The decrease was due primarily to the CDFI ERP award of $5.0 million on a pre-tax basis recognized in the fourth quarter of 2023 with no similar income in the first quarter of 2024. This decrease was partially offset by gain on the transfer of loans to other real estate owned ("OREO") of $560,000 and higher net gains on the sale of OREO of $221,000 (both of which are included in "Gain/(loss) on OREO"). We also recognized higher gain on sale of loans of $196,000.
Noninterest Expense
Noninterest expense for the first quarter of 2024 was $17.0 million, an increase of $576,000 from $16.4 million for the fourth quarter of 2023. This increase was due primarily to higher salaries and employee benefits expenses of $1.1 million, partially offset by lower legal and professional fees of $411,000 and lower insurance and regulatory assessments of $140,000. The increase in salaries and benefits is attributed to the timing of taxes and benefits, which are higher in the first quarter of the year. The annualized operating expense ratio for the first quarter of 2024 was 1.72%, up from 1.63% for the fourth quarter of 2023.
Income Taxes
The effective tax rate was 28.8% for the first quarter of 2024 and 29.4% for the fourth quarter of 2023. The effective tax rate includes the impact of lower income housing tax credits. The effective tax rate for 2024 is estimated to be 29.5%.
Balance Sheet
At March 31, 2024, total assets were $3.9 billion, a $148.0 million decrease compared to December 31, 2023, and a $232.1 million decrease compared to March 31, 2023.
Loan and Securities Portfolio
Loans held for investment, net of deferred fees and discounts, totaled $3.0 billion as of March 31, 2024, a decrease of $4.5 million from December 31, 2023. The decrease from December 31, 2023 was primarily due to a $24.3 million decrease in single-family residential mortgages, an $8.7 million decrease in commercial and industrial loans, and a $1.4 million decrease in other loans, partially offset by a $16.6 million increase in construction and land development loans, a $10.6 million increase in commercial real estate loans, and a $2.6 million increase in Small Business Administration ("SBA") loans. The loan to deposit ratio was 98.6% at March 31, 2024 compared to 94.2% at December 31, 2023 and 104.7% at March 31, 2023.
As of March 31, 2024, available-for-sale securities totaled $335.2 million, including $288.3 million maturing in over 12 months. As of March 31, 2024, gross unrealized losses totaled $30.2 million, a $2.1 million increase due to increases in market interest rates, compared to gross unrealized losses of $28.1 million as of December 31, 2023.
Deposits
Total deposits were $3.0 billion as of March 31, 2024, a $146.4 million, or 4.6%, decrease compared to December 31, 2023. This decrease was due to a decrease in interest-bearing deposits as noninterest-bearing deposits remained relatively stable at $539.5 million. The decrease in interest-bearing deposits included a decrease in time deposits of $156.4 million, offset by an increase in non-maturity deposits of $10.1 million. The decrease in time deposits included a $171.9 million decrease in wholesale deposits (brokered deposits and collateralized State of California certificates of deposit). Wholesale deposits totaled $163.0 million at March 31, 2024 and $334.9 million at December 31, 2023.
Credit Quality
Nonperforming assets totaled $37.0 million, or 0.95% of total assets, at March 31, 2024, compared to $31.6 million, or 0.79% of total assets, at December 31, 2023. The $5.4 million increase in nonperforming assets was due to loans placed on non-accrual status of $7.7 million, consisting primarily of single-family residential mortgages, and new OREO of $1.1 million (included in "Accrued interest and other assets"), partially offset by payoffs or paydowns of $3.0 million of non-accrual loans, loans that migrated to accruing status of $257,000, and non-accrual loan charge-offs of $125,000.
Special mention loans totaled $20.6 million, or 0.68% of total loans, at March 31, 2024, compared to $32.8 million, or 1.08% of total loans, at December 31, 2023. The decrease was due to upgrades to pass loans of $6.5 million, a downgrade to substandard loans of $3.9 million, and loan paydowns of $2.7 million, partially offset by additional special mention loans of $674,000.
Substandard loans totaled $57.2 million, or 1.89% of total loans, at March 31, 2024, compared to $61.1 million, or 2.02% of total loans, at December 31, 2023. The $3.9 million decrease was due to loan paydowns of $11.0 million, upgrades to pass loans of $277,000, an upgrade to special mention loans of $200,000, and substandard loan charge-offs of $125,000, partially offset by a downgrade from special mention loans of $3.9 million and additional substandard loans of $3.8 million.
30-89 day delinquent loans, excluding nonperforming loans, increased $4.1 million to $21.0 million as of March 31, 2024 compared to $16.8 million as of December 31, 2023. The increase in past due loans was due to $19.6 million in new delinquent loans, partially offset by $7.3 million in loans that converted to non-accrual status, $5.9 million in loans that migrated back to past due for less than 30 days, and $2.2 million in loan payoffs or paydowns.
As of March 31, 2024, the allowance for credit losses totaled $42.4 million and was comprised of an allowance for loan losses of $41.7 million and a reserve for unfunded commitments of $671,000 (included in "Accrued interest and other liabilities"). This compares to the allowance for credit losses of $42.5 million comprised of an allowance for loan losses of $41.9 million and a reserve for unfunded commitments of $640,000 at December 31, 2023. The allowance for credit losses decreased $184,000 during the first quarter of 2024 due to net charge-offs. The allowance for loan losses as a percentage of loans held for investment was 1.38% at March 31, 2024, unchanged from December 31, 2023. The allowance for loan losses as a percentage of nonperforming loans was 116% at March 31, 2024, a decrease from 133% at December 31, 2023.
(dollars in thousands) For the Three Months Ended March 31, 2024
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Allowance For Reserve for Reserve for Allowance For
Loan Losses Unfunded Loan Unfunded Loan Credit Losses
Commitments Commitments
-------------------------- -------------------- ---------------------------------- ----------------------------------
Beginning balance $ 41,903 $ 640 $ 42,543
(Reversal)/provision for credit losses (31 ) 31 --
Less loans charged-off (214 ) -- (214 )
Recoveries on loans charged-off 30 -- 30
-------------------- ------ -------------------- -------------- -------------------- --------------
Shareholders' Equity and Capital Actions
At March 31, 2024, total shareholders' equity was $514.0 million, a $2.7 million increase compared to December 31, 2023, and a $19.2 million increase compared to March 31, 2023. The increase in shareholders' equity for the first quarter was due to net earnings of $8.0 million and $542,000 from the exercise of stock options, offset by dividends paid of $3.0 million, share repurchases totaling $1.5 million, and higher net unrealized losses on available-for-sale securities of $1.5 million. As a result, book value per share increased to $27.67 from $27.47 and tangible book value per share(1) increased to $23.68 from $23.48.
On April 18, 2024, the Company announced the Board of Directors had declared a common stock cash dividend of $0.16 per share, payable on May 13, 2024 to shareholders of record on May 1, 2024.
On February 29, 2024, the Board of Directors authorized the repurchase of up to 1,000,000 shares of common stock, of which 956,465 shares were available as of March 31, 2024. The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Securities and Exchange Commission ("SEC") Rules 10b5-1 and 10b-8. The Company repurchased 80,285 shares at a weighted average share price of $18.39 during the first quarter of 2024.
Appointment of Lynn Hopkins as Executive Vice President and Chief Financial Officer
The Company appointed Ms. Lynn M. Hopkins as Executive Vice President and Chief Financial Officer of the Bank and RBB Bancorp effective April 22, 2024. With over 30 years of financial services industry experience, Ms. Hopkins brings a wealth of knowledge as a chief financial officer at various financial institutions, including expertise in banking risk management, corporate governance and operations, strategic planning and forecasting, liquidity, treasury and asset liability risk management, mergers and acquisitions, integration and conversion activities, technical accounting, and additional experience that will be beneficial to the Company.
(1) Reconciliations of the non-U.S. generally accepted accounting principles ("GAAP") measures included at the end of this press release. 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 March 31, 2024, the Company had total assets of $3.9 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services to predominately the Asian 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, April 23, 2024, to discuss the Company's first 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 123643, conference ID RBBQ124. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 50324, approximately one hour after the conclusion of the call and will remain available through May 6, 2024.
The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the "Investors" tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.
Disclosure
This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.
Safe Harbor
Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company's current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the Bank's ability to comply with the requirements of the consent order we have entered into with the Federal Deposit Insurance Corporation ("FDIC") and the California Department of Financial Protection and Innovation ("DFPI") and the possibility that we may be required to incur additional expenses or be subject to additional regulatory action, if we are unable to timely and satisfactorily comply with the consent order; the effectiveness of the Company's internal control over financial reporting and disclosure controls and proceduresI 3/4 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 of foreign financial marketsI 3/4 the strength of the U.S. economy in general and the strength of the local economies in which we conduct operationsI 3/4 our ability to attract and retain deposits and access other sources of liquidity; possible additional provisions for loan losses and charge-offsI 3/4 credit risks of lending activities and deterioration in asset or credit qualityI 3/4 extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authoritiesI 3/4 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 ActI 3/4 compliance with the Bank Secrecy Act and other money laundering statutes and regulationsI 3/4 potential goodwill impairmentI 3/4 liquidity riskI 3/4 fluctuations in interest ratesI 3/4 risks associated with acquisitions and the expansion of our business into new marketsI 3/4 inflation and deflationI 3/4 real estate market conditions and the value of real estate collateralI 3/4 environmental liabilitiesI 3/4 our ability to compete with larger competitorsI 3/4 our ability to retain key personnelI 3/4 successful management of reputational riskI 3/4 severe weather, natural disasters, earthquakes, firesI 3/4 or other adverse external events could harm our businessI 3/4 geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine and in the Middle East, which could impact business and economic conditions in the U.S. and abroadI 3/4 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 conditionsI 3/4 general economic or business conditions in Asia, and other regions where the Bank has operationsI 3/4 failures, interruptions, or security breaches of our information systemsI 3/4 climate change, including any enhanced regulatory, compliance, credit and reputational risks and costsI 3/4 cybersecurity threats and the cost of defending against themI 3/4 our ability to adapt our systems to the expanding use of technology in bankingI 3/4 risk management processes and strategiesI 3/4 adverse results in legal proceedingsI 3/4 the impact of regulatory enforcement actions, if anyI 3/4 certain provisions in our charter and bylaws that may affect acquisition of the CompanyI 3/4 changes in tax laws and regulationsI 3/4 the impact of governmental efforts to restructure the U.S. financial regulatory systemI 3/4 the impact of future or recent changes in the FDIC insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessmentsI 3/4 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 periodsI 3/4 market disruption and volatilityI 3/4 fluctuations in the Company's stock priceI 3/4 restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structureI 3/4 issuances of preferred stockI 3/4 our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stockI 3/4 the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and DFPI; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company's public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2023, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company's earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.
RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
March 31, December 31, March 31,
2024 2023 2023
---------------------------------------- ---------------------------------------- ----------------------------------------
Assets
Cash and due from banks $ 269,243 $ 431,373 $ 230,703
Interest-bearing deposits in other financial institutions 600 600 600
Investment securities available for sale 335,194 318,961 293,371
Investment securities held to maturity 5,204 5,209 5,722
Mortgage loans held for sale 3,903 1,911 --
Loans held for investment 3,027,361 3,031,861 3,342,416
Allowance for loan losses (41,688 ) (41,903 ) (43,071 )
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
2,985,673 2,989,958 3,299,345
Net loans held for investment
Premises and equipment, net 25,363 25,684 27,040
Federal Home Loan Bank (FHLB) stock 15,000 15,000 15,000
Cash surrender value of bank owned life insurance 59,101 58,719 57,645
Goodwill 71,498 71,498 71,498
Servicing assets 7,794 8,110 9,159
Core deposit intangibles 2,594 2,795 3,481
Right-of-use assets 31,231 29,803 29,931
Accrued interest and other assets 65,608 66,404 66,589
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
$ 3,878,006 $ 4,026,025 $ 4,110,084
Total assets
==================== ==================== ==================== ==================== ==================== ====================
Liabilities and shareholders' equity
Deposits:
$ 539,517 $ 539,621 $ 672,177
Noninterest-bearing demand
642,840 632,729 617,100
Savings, NOW and money market accounts
1,083,898 1,190,821 1,122,687
Time deposits, $250,000 and under
762,074 811,589 739,098
Time deposits, greater than $250,000
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
3,028,329 3,174,760 3,151,062
Total deposits
FHLB advances 150,000 150,000 220,000
Long-term debt, net of issuance costs 119,243 119,147 173,730
Subordinated debentures 14,993 14,938 14,774
Lease liabilities - operating leases 32,690 31,191 31,078
Accrued interest and other liabilities 18,765 24,729 24,683
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
3,364,020 3,514,765 3,615,327
Total liabilities
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Shareholders' equity:
534,896 530,700 514,563
Shareholders' equity
72 72 72
Non-controlling interest
(20,982 ) (19,512 ) (19,878 )
Accumulated other comprehensive loss, net of tax
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
513,986 511,260 494,757
Total shareholders' equity
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except share and per share data)
For the Three Months Ended
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, 2024 December 31, March 31, 2023
2023
---------------------------------------- ---------------------------------------- ----------------------------------------
Interest and dividend income:
$ 45,547 $ 45,895 $ 49,942
Interest and fees on loans
5,040 4,650 791
Interest on interest-bearing deposits
3,611 3,706 2,536
Interest on investment securities
331 312 265
Dividend income on FHLB stock
266 269 217
Interest on federal funds sold and other
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
54,795 54,832 53,751
Total interest and dividend income
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Interest expense:
4,478 4,026 2,296
Interest on savings deposits, NOW and money market accounts
23,322 22,413 13,406
Interest on time deposits
1,679 2,284 2,539
Interest on long-term debt and subordinated debentures
439 440 1,409
Interest on other borrowed funds
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
29,918 29,163 19,650
Total interest expense
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
24,877 25,669 34,101
Net interest income before provision/(reversal) for credit losses
Provision/(reversal) for credit losses -- (431 ) 2,014
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
24,877 26,100 32,087
Net interest income after provision/(reversal) for credit losses
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Noninterest income:
992 972 1,023
Service charges and fees
312 116 29
Gain on sale of loans
589 616 731
Loan servicing fees, net of amortization
382 374 335
Increase in cash surrender value of life insurance
724 (57 ) --
Gain/(loss) on OREO
373 5,373 244
Other income
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
3,372 7,394 2,362
Total noninterest income
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Noninterest expense:
9,927 8,860 9,864
Salaries and employee benefits
2,443 2,387 2,398
Occupancy and equipment expenses
1,420 1,357 1,299
Data processing
880 1,291 3,013
Legal and professional
356 349 375
Office expenses
172 241 300
Marketing and business promotion
982 1,122 504
Insurance and regulatory assessments
201 215 237
Core deposit premium
588 571 921
Other expenses
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
16,969 16,393 18,911
Total noninterest expense
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
11,280 17,101 15,538
Income before income taxes
3,244 5,028 4,568
Income tax expense
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
$ 8,036 $ 12,073 $ 10,970
Net income
==================== ==================== ==================== ==================== ==================== ====================
Net income per share
$ 0.43 $ 0.64 $ 0.58
Basic
$ 0.43 $ 0.64 $ 0.58
Diluted
$ 0.16 $ 0.16 $ 0.16
Cash Dividends declared per common share
Weighted-average common shares outstanding
18,601,277 18,938,005 18,985,846
Basic
RBB BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
(Unaudited)
For the Three Months Ended
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, 2024 December 31, 2023 March 31, 2023
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Average Interest Yield / Average Interest Yield / Average Interest Yield /
(tax-equivalent basis, dollars in thousands) Balance & Fees Rate Balance & Fees Rate Balance & Fees Rate
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Interest-earning assets
$ 379,979 $ 5,637 5.97 % $ 348,940 $ 5,231 5.95 % $ 110,750 $ 1,272 4.66 %
Federal funds sold, cash equivalents & other (1)
Securities
320,015 3,589 4.51 % 329,426 3,684 4.44 % 277,206 2,510 3.67 %
Available for sale (2)
5,207 46 3.55 % 5,212 46 3.50 % 5,727 51 3.61 %
Held to maturity (2)
1,215 26 8.61 % 1,609 29 7.15 % 88 1 6.45 %
Mortgage loans held for sale
Loans held for investment: (3)
2,837,603 41,765 5.92 % 2,870,227 41,950 5.80 % 3,092,667 44,903 5.89 %
Real estate
179,605 3,756 8.41 % 183,396 3,916 8.47 % 249,911 5,038 8.18 %
Commercial
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
3,017,208 45,521 6.07 % 3,053,623 45,866 5.96 % 3,342,578 49,941 6.06 %
Total loans held for investment
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
3,723,624 $ 54,819 5.92 % 3,738,810 $ 54,856 5.82 % 3,736,349 $ 53,775 5.84 %
Total interest-earning assets
==================== ==================== ==================== ==================== ==================== ====================
246,341 253,385 239,956
Total noninterest-earning assets
-------------------- -------------------- -------------------- -------------------- -------------------- --------------------
$ 3,969,965 $ 3,992,195 $ 3,976,305
Total average assets
==================== ==================== ==================== ==================== ==================== ====================
Interest-bearing liabilities
$ 58,946 $ 298 2.03 % $ 54,378 $ 214 1.56 % $ 63,401 $ 108 0.69 %
NOW
411,751 3,526 3.44 % 422,582 3,252 3.05 % 458,824 2,140 1.89 %
Money Market
157,227 654 1.67 % 148,354 560 1.50 % 120,695 49 0.16 %
Saving deposits
1,175,804 13,805 4.72 % 1,162,014 13,244 4.52 % 912,694 7,425 3.30 %
Time deposits, $250,000 and under
785,172 9,517 4.88 % 781,833 9,169 4.65 % 762,770 5,981 3.18 %
Time deposits, greater than $250,000
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
2,588,900 27,800 4.32 % 2,569,161 26,439 4.08 % 2,318,384 15,703 2.75 %
Total interest-bearing deposits
150,000 439 1.18 % 150,000 440 1.16 % 229,778 1,409 2.49 %
FHLB advances
119,180