RBB Bancorp Reports Fourth Quarter and Fiscal Year 2023 Earnings
- None.
- Net income for the year ended December 31, 2023 was lower compared to the previous year, indicating a decrease in profitability.
Insights
The financial results of RBB Bancorp for the fourth quarter and fiscal year ended December 31, 2023, reflect a notable improvement in profitability with net income rising to $12.1 million from $8.5 million in the previous quarter. This is a positive signal to investors as it indicates enhanced earnings capacity. The increase in Return on Average Assets (ROAA) to 1.20% and Return on Average Common Equity (ROACE) to 9.48% are particularly encouraging, as they suggest more efficient use of assets and equity to generate profits.
However, the year-over-year comparison reveals a decrease in net income from $64.3 million in 2022 to $42.5 million in 2023, which could raise concerns about the bank's performance trajectory. The Community Development Financial Institution (CDFI) Equitable Recovery Program award of $5.0 million is a one-time benefit that investors should not expect to recur, thus it's critical to assess the underlying operational performance excluding such non-recurring items.
Moreover, the redemption of subordinated notes and share repurchases reflect a strategic capital management approach that could be perceived as a commitment to enhancing shareholder value. Yet, the long-term impact of these actions on the bank's capital structure and cost of capital should be monitored closely.
From a market perspective, RBB Bancorp's strategic initiatives, such as exiting higher-risk lending relationships and lowering the loan to deposit ratio, suggest a shift towards a more conservative risk profile. While this may mitigate balance sheet risk, it could also impact future revenue growth potential, which is a critical factor for market valuation. The bank's focus on liquidity and decreased nonperforming loans align with industry trends towards ensuring financial stability amid economic uncertainty.
The bank's engagement with the Asian-American community and expansion of services such as remote deposit and mobile banking are aligned with broader industry shifts towards digitalization and niche market targeting. However, the competitive landscape within these demographics and the bank's ability to differentiate its services will be crucial to its market position.
The regulatory updates provided by RBB Bancorp, including the Consent Order with the FDIC and the DFPI, indicate a heightened regulatory scrutiny which is an important consideration for risk assessment. The bank's proactive measures to address Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) compliance and enhance corporate governance could improve regulatory standing and prevent potential legal issues. Nevertheless, the full impact of these measures will only be evident after reexamination by the regulatory authorities.
The SEC's conclusion of its inquiry without enforcement action removes a significant overhang on the bank's operations and may restore investor confidence. The introduction of new corporate governance policies and the restructuring of the board with a focus on independence and expertise reflect a strong commitment to best practices, which is essential for maintaining investor trust and mitigating governance-related risks.
Fourth Quarter 2023 Highlights
-
Net income increased to
$12.1 million $0.64 $8.5 million $0.45 -
Return on average assets increased to
1.20% , up from0.83% for the third quarter. -
Return on average common equity of
9.48% and return on average tangible common equity (1) of11.12% , up from6.66% and7.82% for the third quarter. -
Recognized a
$5.0 million -
Redeemed
$55.0 million 6.18% subordinated notes at par on December 1, 2023. -
Repurchased 396,374 shares for
$6.7 million -
Nonperforming loans decreased to
$31.6 million $40.1 million -
Allowance for loan losses to loans held for investment increased to
1.38% , up from1.36% at the end of the third quarter. -
Book value and tangible book value (1) per share increased to
$27.47 $23.48 $26.45 $22.53
The Company reported net income of
“We undertook several initiatives in 2023 to position the Company for the future,” said David Morris, CEO of RBB Bancorp. “We strengthened our management team by adding respected senior executives and restructured our operations in order to improve the management of our national banking franchise. We addressed regulatory concerns by adopting enhanced corporate governance policies and reconstituting our Board of Directors. Additionally, we increased liquidity and mitigated balance sheet risk by strategically exiting certain higher risk lending relationships and reducing our loan to deposit ratio.”
Mr. Morris continued, “While some of these actions had a negative impact on our short-term results, we are confident that they will drive long-term shareholder value and have positioned the Company for improved profitability in a variety of economic environments.”
“The changes implemented by management and the Board of Directors are intended to enhance shareholder value,” said Dr. James Kao, Chairman of the Company. “The Board of Directors appreciates the efforts of all RBB employees and their commitment to providing exceptional financial services to the Asian-American community.”
(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
Net interest margin was
The Company redeemed all
Provision for Credit Losses
The Company recorded a reversal of its provision for credit losses of
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense for the fourth quarter of 2023 was
Income Taxes
The effective tax rate was
Balance Sheet
At December 31, 2023, total assets were
Loan and Securities Portfolio
Loans held for investment, net of deferred fees and discounts, totaled
As of December 31, 2023, available-for-sale securities totaled
Liquidity and Deposits
Total deposits were
As of December 31, 2023, the Company had
Credit Quality
Nonperforming assets totaled
Special mention loans totaled
Substandard loans totaled
30-89 day delinquent loans, excluding non-accrual loans, decreased
As of December 31, 2023, the allowance for credit losses totaled
Shareholders' Equity and Capital Actions
At December 31, 2023, total shareholders' equity was
On January 18, 2024, the Company announced the Board of Directors had declared a common stock cash dividend of
On June 14, 2022, the Board of Directors authorized the repurchase of up to 500,000 shares of common stock, of which 36,750 shares were available as of December 31, 2023. 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 396,374 shares at a weighted average share price of
Corporate Governance and Regulatory Updates
The Company is providing the following update on various corporate governance and regulatory matters previously reported:
-
Since May 2022, the Boards of Directors of the Company and the Bank have taken several actions to enhance the Company’s corporate governance and oversight:
- In late 2022 and early 2023, the Company’s Board of Directors adopted new corporate governance policies and standards which include enhanced director independence standards, an independent Board chair, updated board committee charters and an amended and restated code of ethics.
- Since May 2022, 6 new directors have been added to the Boards of Directors of the Company and the Bank. These new directors have extensive regulatory, executive leadership, wealth management, risk management, and community banking experience. Nine out of the ten (10) current directors of the Company are classified as ‘independent directors’.
- During 2023, the Boards of Directors of the Company and the Bank took certain actions to strengthen the Company’s management team, including hiring a President / Chief Banking Officer, Chief Financial Officer, Chief Administrative Officer, SBA Manager, Deputy Chief Risk Officer/BSA Officer, and an East Coast head of branch banking.
- The Bank entered into a Consent Order (the “Consent Order”) with the Federal Deposit Insurance Corporation (the “FDIC”) and the California Department of Financial Protection and Innovation (the “DFPI”) on October 25, 2023. The Consent Order requires the Bank to take certain actions with respect to its Anti-Money Laundering/Countering the Financing of Terrorism (“AML/CFT”) compliance program and to correct certain alleged violations of the Bank Secrecy Act (“BSA”) program. The Bank was proactive in addressing the items identified in the Consent Order prior to entering into the Consent Order, taking the actions described in its Current Report on Form 8-K filed with the SEC on October 31, 2023. As of December 31, 2023, the Bank believes it has addressed all of the deficiencies identified in the Consent Order, although there can be no guarantee that additional measures will not be required until the FDIC and the DFPI have reexamined and retested the Bank’s AML/CFT policies and procedures to the FDIC’s and the DFPI’s satisfaction, the timing of which is uncertain.
- As reported in connection with the Company’s second quarter 2023 earnings release, the Company was voluntarily responding to informal requests from the SEC's Division of Enforcement for information regarding, among other things, certain Company policies and procedures, certain Company expenditures, certain former officers and directors, their roles and relationships, and the circumstances relating to and surrounding their departures, including potential violations of laws and/or regulations. The SEC subsequently notified the Company that the SEC has concluded its inquiry with respect to the Company without any enforcement action against the Company.
The Company’s Board of Directors remains committed to continuing to evaluate and, where necessary or appropriate, further enhancing the Company’s corporate governance and oversight to ensure the Company’s governance structure aligns with its business operations and corporate strategy, as well as regulatory and investor expectations.
Corporate Overview
RBB Bancorp is a community-based financial holding company headquartered in
Conference Call
Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, January 23, 2024, to discuss the Company’s fourth quarter 2023 financial results.
To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 885254, conference ID RBBQ423. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 49681, approximately one hour after the conclusion of the call and will remain available through February 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 FDIC and the DFPI and the possibility that we may be required to incur additional expenses or be subject to additional regulatory action, if we are unable to timely and satisfactorily comply with the consent order; the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the
RBB BANCORP AND SUBSIDIARIES
|
||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
||||||
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|||
Assets |
|
|
|
|
|
|
|
|
|
|||
Cash and due from banks |
|
$ |
431,373 |
|
|
$ |
330,791 |
|
|
$ |
83,548 |
|
Interest-bearing deposits in other financial institutions |
|
|
600 |
|
|
|
600 |
|
|
|
600 |
|
Investment securities available for sale |
|
|
318,961 |
|
|
|
354,378 |
|
|
|
256,830 |
|
Investment securities held to maturity |
|
|
5,209 |
|
|
|
5,214 |
|
|
|
5,729 |
|
Mortgage loans held for sale |
|
|
1,911 |
|
|
|
62 |
|
|
|
— |
|
Loans held for investment |
|
|
3,031,861 |
|
|
|
3,120,952 |
|
|
|
3,336,449 |
|
Allowance for loan losses |
|
|
(41,903 |
) |
|
|
(42,430 |
) |
|
|
(41,076 |
) |
Net loans held for investment |
|
|
2,989,958 |
|
|
|
3,078,522 |
|
|
|
3,295,373 |
|
Premises and equipment, net |
|
|
25,684 |
|
|
|
26,134 |
|
|
|
27,009 |
|
Federal Home Loan Bank (FHLB) stock |
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
Cash surrender value of bank owned life insurance |
|
|
58,719 |
|
|
|
58,346 |
|
|
|
57,310 |
|
Goodwill |
|
|
71,498 |
|
|
|
71,498 |
|
|
|
71,498 |
|
Servicing assets |
|
|
8,110 |
|
|
|
8,439 |
|
|
|
9,521 |
|
Core deposit intangibles |
|
|
2,795 |
|
|
|
3,010 |
|
|
|
3,718 |
|
Right-of-use assets |
|
|
29,803 |
|
|
|
29,949 |
|
|
|
25,447 |
|
Accrued interest and other assets |
|
|
66,404 |
|
|
|
87,411 |
|
|
|
67,475 |
|
Total assets |
|
$ |
4,026,025 |
|
|
$ |
4,069,354 |
|
|
$ |
3,919,058 |
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|||
Deposits: |
|
|
|
|
|
|
|
|
|
|||
Noninterest-bearing demand |
|
$ |
539,621 |
|
|
$ |
572,393 |
|
|
$ |
798,741 |
|
Savings, NOW and money market accounts |
|
|
632,729 |
|
|
|
608,020 |
|
|
|
615,339 |
|
Time deposits, |
|
|
1,190,821 |
|
|
|
1,237,831 |
|
|
|
837,369 |
|
Time deposits, greater than |
|
|
811,589 |
|
|
|
735,828 |
|
|
|
726,234 |
|
Total deposits |
|
|
3,174,760 |
|
|
|
3,154,072 |
|
|
|
2,977,683 |
|
FHLB advances |
|
|
150,000 |
|
|
|
150,000 |
|
|
|
220,000 |
|
Long-term debt, net of issuance costs |
|
|
119,147 |
|
|
|
174,019 |
|
|
|
173,585 |
|
Subordinated debentures |
|
|
14,938 |
|
|
|
14,884 |
|
|
|
14,720 |
|
Lease liabilities - operating leases |
|
|
31,191 |
|
|
|
31,265 |
|
|
|
26,523 |
|
Accrued interest and other liabilities |
|
|
24,729 |
|
|
|
42,603 |
|
|
|
21,984 |
|
Total liabilities |
|
|
3,514,765 |
|
|
|
3,566,843 |
|
|
|
3,434,495 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Shareholders' equity |
|
|
530,700 |
|
|
|
528,200 |
|
|
|
506,156 |
|
Non-controlling interest |
|
|
72 |
|
|
|
72 |
|
|
|
72 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(19,512 |
) |
|
|
(25,761 |
) |
|
|
(21,665 |
) |
Total shareholders' equity |
|
|
511,260 |
|
|
|
502,511 |
|
|
|
484,563 |
|
Total liabilities and shareholders’ equity |
|
$ |
4,026,025 |
|
|
$ |
4,069,354 |
|
|
$ |
3,919,058 |
|
RBB BANCORP AND SUBSIDIARIES
|
||||||||||||
|
|
For the Three Months Ended |
|
|||||||||
|
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
45,895 |
|
|
$ |
47,617 |
|
|
$ |
49,468 |
|
Interest on interest-bearing deposits |
|
|
4,650 |
|
|
|
3,193 |
|
|
|
697 |
|
Interest on investment securities |
|
|
3,706 |
|
|
|
4,211 |
|
|
|
1,874 |
|
Dividend income on FHLB stock |
|
|
312 |
|
|
|
290 |
|
|
|
265 |
|
Interest on federal funds sold and other |
|
|
269 |
|
|
|
252 |
|
|
|
347 |
|
Total interest income |
|
|
54,832 |
|
|
|
55,563 |
|
|
|
52,651 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on savings deposits, NOW and money market accounts |
|
|
4,026 |
|
|
|
3,106 |
|
|
|
2,471 |
|
Interest on time deposits |
|
|
22,413 |
|
|
|
21,849 |
|
|
|
7,798 |
|
Interest on subordinated debentures and long-term debt |
|
|
2,284 |
|
|
|
2,579 |
|
|
|
2,491 |
|
Interest on other borrowed funds |
|
|
440 |
|
|
|
440 |
|
|
|
898 |
|
Total interest expense |
|
|
29,163 |
|
|
|
27,974 |
|
|
|
13,658 |
|
Net interest income before (reversal)/provision for credit losses |
|
|
25,669 |
|
|
|
27,589 |
|
|
|
38,993 |
|
(Reversal)/provision for credit losses |
|
|
(431 |
) |
|
|
1,399 |
|
|
|
1,887 |
|
Net interest income after (reversal)/provision for credit losses |
|
|
26,100 |
|
|
|
26,190 |
|
|
|
37,106 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
972 |
|
|
|
1,057 |
|
|
|
940 |
|
Gain on sale of loans |
|
|
116 |
|
|
|
212 |
|
|
|
112 |
|
Loan servicing fees, net of amortization |
|
|
616 |
|
|
|
623 |
|
|
|
581 |
|
Increase in cash surrender value of life insurance |
|
|
374 |
|
|
|
356 |
|
|
|
335 |
|
(Loss)/gain on sale of other real estate owned |
|
|
(57 |
) |
|
|
190 |
|
|
|
— |
|
Other income |
|
|
5,373 |
|
|
|
332 |
|
|
|
384 |
|
Total noninterest income |
|
|
7,394 |
|
|
|
2,770 |
|
|
|
2,352 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
8,860 |
|
|
|
9,744 |
|
|
|
6,930 |
|
Occupancy and equipment expenses |
|
|
2,387 |
|
|
|
2,414 |
|
|
|
2,364 |
|
Data processing |
|
|
1,357 |
|
|
|
1,315 |
|
|
|
1,203 |
|
Legal and professional |
|
|
1,291 |
|
|
|
1,022 |
|
|
|
1,045 |
|
Office expenses |
|
|
349 |
|
|
|
437 |
|
|
|
405 |
|
Marketing and business promotion |
|
|
241 |
|
|
|
340 |
|
|
|
406 |
|
Insurance and regulatory assessments |
|
|
1,122 |
|
|
|
730 |
|
|
|
489 |
|
Core deposit premium |
|
|
215 |
|
|
|
236 |
|
|
|
253 |
|
Other expenses |
|
|
571 |
|
|
|
638 |
|
|
|
1,061 |
|
Total noninterest expense |
|
|
16,393 |
|
|
|
16,876 |
|
|
|
14,156 |
|
Income before income taxes |
|
|
17,101 |
|
|
|
12,084 |
|
|
|
25,302 |
|
Income tax expense |
|
|
5,028 |
|
|
|
3,611 |
|
|
|
7,721 |
|
Net income |
|
$ |
12,073 |
|
|
$ |
8,473 |
|
|
$ |
17,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.64 |
|
|
$ |
0.45 |
|
|
$ |
0.93 |
|
Diluted |
|
$ |
0.64 |
|
|
$ |
0.45 |
|
|
$ |
0.92 |
|
Cash dividends declared per common share |
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.14 |
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,938,005 |
|
|
|
18,995,303 |
|
|
|
18,971,250 |
|
Diluted |
|
|
18,948,087 |
|
|
|
18,997,304 |
|
|
|
19,086,586 |
|
RBB BANCORP AND SUBSIDIARIES
|
||||||||
|
|
For the Year Ended |
|
|||||
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
||
Interest and dividend income: |
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
194,264 |
|
|
$ |
171,099 |
|
Interest on interest-earning deposits |
|
|
10,746 |
|
|
|
1,353 |
|
Interest on investment securities |
|
|
14,028 |
|
|
|
6,084 |
|
Dividend income on FHLB stock |
|
|
1,125 |
|
|
|
938 |
|
Interest on federal funds sold and other |
|
|
985 |
|
|
|
1,496 |
|
Total interest income |
|
|
221,148 |
|
|
|
180,970 |
|
Interest expense: |
|
|
|
|
|
|
|
|
Interest on savings deposits, NOW and money market accounts |
|
|
12,205 |
|
|
|
5,561 |
|
Interest on time deposits |
|
|
76,837 |
|
|
|
13,338 |
|
Interest on subordinated debentures and long-term debt |
|
|
9,951 |
|
|
|
9,645 |
|
Interest on other borrowed funds |
|
|
2,869 |
|
|
|
2,872 |
|
Total interest expense |
|
|
101,862 |
|
|
|
31,416 |
|
Net interest income before provision for credit losses |
|
|
119,286 |
|
|
|
149,554 |
|
Provision for credit losses |
|
|
3,362 |
|
|
|
4,935 |
|
Net interest income after provision for credit losses |
|
|
115,924 |
|
|
|
144,619 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
4,172 |
|
|
|
4,145 |
|
Gain on sale of loans |
|
|
374 |
|
|
|
1,895 |
|
Loan servicing fees, net of amortization |
|
|
2,576 |
|
|
|
2,209 |
|
Increase in cash surrender value of life insurance |
|
|
1,410 |
|
|
|
1,322 |
|
Gain on sale of fixed assets |
|
|
32 |
|
|
|
757 |
|
Gain on sale of other real estate owned |
|
|
134 |
|
|
|
— |
|
Other income |
|
|
6,320 |
|
|
|
924 |
|
Total noninterest income |
|
|
15,018 |
|
|
|
11,252 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
37,795 |
|
|
|
35,488 |
|
Occupancy and equipment expenses |
|
|
9,629 |
|
|
|
9,092 |
|
Data processing |
|
|
5,326 |
|
|
|
5,060 |
|
Legal and professional |
|
|
8,198 |
|
|
|
5,383 |
|
Office expenses |
|
|
1,512 |
|
|
|
1,438 |
|
Marketing and business promotion |
|
|
1,132 |
|
|
|
1,578 |
|
Insurance and regulatory assessments |
|
|
3,165 |
|
|
|
1,850 |
|
Core deposit premium |
|
|
923 |
|
|
|
1,086 |
|
Other expenses |
|
|
3,016 |
|
|
|
3,551 |
|
Total noninterest expense |
|
|
70,696 |
|
|
|
64,526 |
|
Income before income taxes |
|
|
60,246 |
|
|
|
91,345 |
|
Income tax expense |
|
|
17,781 |
|
|
|
27,018 |
|
Net income |
|
$ |
42,465 |
|
|
$ |
64,327 |
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.24 |
|
|
$ |
3.37 |
|
Diluted |
|
$ |
2.24 |
|
|
$ |
3.33 |
|
Cash Dividends declared per common share |
|
$ |
0.64 |
|
|
$ |
0.56 |
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
18,978,075 |
|
|
|
19,099,509 |
|
Diluted |
|
|
18,997,265 |
|
|
|
19,332,639 |
|
RBB BANCORP AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||
|
|
For the Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|||||||||||||||||||||||||||
|
|
Average |
|
|
Interest |
|
|
Yield / |
|
|
Average |
|
|
Interest |
|
|
Yield / |
|
|
Average |
|
|
Interest |
|
|
Yield / |
|
|||||||||
(tax-equivalent basis, dollars in thousands) |
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|||||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, cash equivalents & other (1) |
|
$ |
348,940 |
|
|
$ |
5,231 |
|
|
|
5.95 |
% |
|
$ |
285,484 |
|
|
$ |
3,735 |
|
|
|
5.19 |
% |
|
$ |
94,932 |
|
|
$ |
1,310 |
|
|
|
5.47 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale (2) |
|
|
329,426 |
|
|
|
3,684 |
|
|
|
4.44 |
% |
|
|
369,459 |
|
|
|
4,187 |
|
|
|
4.50 |
% |
|
|
245,348 |
|
|
|
1,847 |
|
|
|
2.99 |
% |
Held to maturity (2) |
|
|
5,212 |
|
|
|
46 |
|
|
|
3.50 |
% |
|
|
5,385 |
|
|
|
48 |
|
|
|
3.54 |
% |
|
|
5,733 |
|
|
|
50 |
|
|
|
3.46 |
% |
Mortgage loans held for sale |
|
|
1,609 |
|
|
|
29 |
|
|
|
7.15 |
% |
|
|
739 |
|
|
|
13 |
|
|
|
6.98 |
% |
|
|
192 |
|
|
|
3 |
|
|
|
6.20 |
% |
Loans held for investment: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
|
2,870,227 |
|
|
|
41,950 |
|
|
|
5.80 |
% |
|
|
2,968,246 |
|
|
|
43,583 |
|
|
|
5.83 |
% |
|
|
3,006,293 |
|
|
|
43,864 |
|
|
|
5.79 |
% |
Commercial |
|
|
183,396 |
|
|
|
3,916 |
|
|
|
8.47 |
% |
|
|
187,140 |
|
|
|
4,021 |
|
|
|
8.52 |
% |
|
|
280,326 |
|
|
|
5,601 |
|
|
|
7.93 |
% |
Total loans held for investment |
|
|
3,053,623 |
|
|
|
45,866 |
|
|
|
5.96 |
% |
|
|
3,155,386 |
|
|
|
47,604 |
|
|
|
5.99 |
% |
|
|
3,286,619 |
|
|
|
49,465 |
|
|
|
5.97 |
% |
Total interest-earning assets |
|
|
3,738,810 |
|
|
$ |
54,856 |
|
|
|
5.82 |
% |
|
|
3,816,453 |
|
|
$ |
55,587 |
|
|
|
5.78 |
% |
|
|
3,632,824 |
|
|
$ |
52,675 |
|
|
|
5.75 |
% |
Total noninterest-earning assets |
|
|
253,386 |
|
|
|
|
|
|
|
|
|
|
|
250,083 |
|
|
|
|
|
|
|
|
|
|
|
247,589 |
|
|
|
|
|
|
|
|
|
Total average assets |
|
$ |
3,992,196 |
|
|
|
|
|
|
|
|
|
|
$ |
4,066,536 |
|
|
|
|
|
|
|
|
|
|
$ |
3,880,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW |
|
$ |
54,378 |
|
|
$ |
214 |
|
|
|
1.56 |
% |
|
$ |
55,325 |
|
|
$ |
201 |
|
|
|
1.44 |
% |
|
$ |
67,854 |
|
|
$ |
77 |
|
|
|
0.45 |
% |
Money Market |
|
|
422,582 |
|
|
|
3,252 |
|
|
|
3.05 |
% |
|
|
403,300 |
|
|
|
2,656 |
|
|
|
2.61 |
% |
|
|
561,575 |
|
|
|
2,337 |
|
|
|
1.65 |
% |
Saving deposits |
|
|
148,354 |
|
|
|
560 |
|
|
|
1.50 |
% |
|
|
123,709 |
|
|
|
249 |
|
|
|
0.80 |
% |
|
|
136,623 |
|
|
|
57 |
|
|
|
0.17 |
% |
Time deposits, |
|
|
1,162,014 |
|
|
|
13,244 |
|
|
|
4.52 |
% |
|
|
1,285,320 |
|
|
|
14,090 |
|
|
|
4.35 |
% |
|
|
716,476 |
|
|
|
3,884 |
|
|
|
2.15 |
% |
Time deposits, greater than |
|
|
781,833 |
|
|
|
9,169 |
|
|
|
4.65 |
% |
|
|
717,026 |
|
|
|
7,759 |
|
|
|
4.29 |
% |
|
|
631,897 |
|
|
|
3,914 |
|
|
|
2.46 |
% |
Total interest-bearing deposits |
|
|
2,569,161 |
|
|
|
26,439 |
|
|
|
4.08 |
% |
|
|
2,584,680 |
|
|
|
24,955 |
|
|
|
3.83 |
% |
|
|
2,114,425 |
|
|
|
10,269 |
|
|
|
1.93 |
% |
FHLB advances |
|
|
150,000 |
|
|
|
440 |
|
|
|
1.16 |
% |
|
|
150,000 |
|
|
|
440 |
|
|
|
1.16 |
% |
|
|
196,304 |
|
|
|
898 |
|
|
|
1.81 |
% |
Long-term debt |
|
|
155,536 |
|
|
|
1,895 |
|
|
|
4.83 |
% |
|
|
173,923 |
|
|
|
2,194 |
|
|
|
5.00 |
% |
|
|
173,491 |
|
|
|
2,194 |
|
|
|
5.02 |
% |
Subordinated debentures |
|
|
14,902 |
|
|
|
389 |
|
|
|
10.36 |
% |
|
|
14,848 |
|
|
|
385 |
|
|
|
10.29 |
% |
|
|
14,684 |
|
|
|
297 |
|
|
|
8.02 |
% |
Total interest-bearing liabilities |
|
|
2,889,599 |
|
|
|
29,163 |
|
|
|
4.00 |
% |
|
|
2,923,451 |
|
|
|
27,974 |
|
|
|
3.80 |
% |
|
|
2,498,904 |
|
|
|
13,658 |
|
|
|
2.17 |
% |
Noninterest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
535,554 |
|
|
|
|
|
|
|
|
|
|
|
571,371 |
|
|
|
|
|
|
|
|
|
|
|
856,917 |
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
61,858 |
|
|
|
|
|
|
|
|
|
|
|
67,282 |
|
|
|
|
|
|
|
|
|
|
|
46,628 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
597,412 |
|
|
|
|
|
|
|
|
|
|
|
638,653 |
|
|
|
|
|
|
|
|
|
|
|
903,545 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
505,184 |
|
|
|
|
|
|
|
|
|
|
|
504,432 |
|
|
|
|
|
|
|
|
|
|
|
477,964 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,992,195 |
|
|
|
|
|
|
|
|
|
|
$ |
4,066,536 |
|
|
|
|
|
|
|
|
|
|
$ |
3,880,413 |
|
|
|
|
|
|
|
|
|
Net interest income / interest rate spreads |
|
|
|
|
|
$ |
25,693 |
|
|
|
1.82 |
% |
|
|
|
|
|
$ |
27,613 |
|
|
|
1.98 |
% |
|
|
|
|
|
$ |
39,017 |
|
|
|
3.58 |
% |
Net interest margin |
|
|
|
|
|
|
|
|
|
|
2.73 |
% |
|
|
|
|
|
|
|
|
|
|
2.87 |
% |
|
|
|
|
|
|
|
|
|
|
4.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of deposits |
|
$ |
3,104,715 |
|
|
$ |
26,439 |
|
|
|
3.38 |
% |
|
$ |
3,156,051 |
|
|
$ |
24,955 |
|
|
|
3.14 |
% |
|
$ |
2,971,342 |
|
|
$ |
10,269 |
|
|
|
1.37 |
% |
Total cost of funds |
|
$ |
3,425,153 |
|
|
$ |
29,163 |
|
|
|
3.38 |
% |
|
$ |
3,494,822 |
|
|
$ |
27,974 |
|
|
|
3.18 |
% |
|
$ |
3,355,821 |
|
|
$ |
13,658 |
|
|
|
1.61 |
% |
(1) |
Includes income and average balances for FHLB stock, term federal funds, interest-bearing time deposits and other miscellaneous interest-bearing assets. |
|
(2) |
Interest income and average rates for tax-exempt loans and securities are presented on a tax-equivalent basis. | |
(3) |
Average loan balances include non-accrual loans and loans held for sale. Interest income on loans includes - amortization of deferred loan fees, net of deferred loan costs. |
RBB BANCORP AND SUBSIDIARIES
|
||||||||||||||||||||||||
|
|
For the Year Ended |
|
|||||||||||||||||||||
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
||||||||||||||||||
|
|
Average |
|
|
Interest |
|
|
Yield / |
|
|
Average |
|
|
Interest |
|
|
Yield / |
|
||||||
(tax-equivalent basis, dollars in thousands) |
|
Balance |
|
|
& Fees |
|
|
Rate |
|
|
Balance |
|
|
& Fees |
|
|
Rate |
|
||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, cash equivalents & other (1) |
|
$ |
231,851 |
|
|
$ |
12,857 |
|
|
|
5.55 |
% |
|
$ |
276,923 |
|
|
$ |
3,787 |
|
|
|
1.37 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale (2) |
|
|
331,357 |
|
|
|
13,928 |
|
|
|
4.20 |
% |
|
|
338,437 |
|
|
|
5,973 |
|
|
|
1.76 |
% |
Held to maturity (2) |
|
|
5,509 |
|
|
|
198 |
|
|
|
3.59 |
% |
|
|
5,865 |
|
|
|
208 |
|
|
|
3.55 |
% |
Mortgage loans held for sale |
|
|
627 |
|
|
|
46 |
|
|
|
7.34 |
% |
|
|
1,263 |
|
|
|
66 |
|
|
|
5.23 |
% |
Loans held for investment: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
|
2,998,250 |
|
|
|
176,740 |
|
|
|
5.89 |
% |
|
|
2,774,348 |
|
|
|
151,164 |
|
|
|
5.45 |
% |
Commercial |
|
|
206,748 |
|
|
|
17,478 |
|
|
|
8.45 |
% |
|
|
322,438 |
|
|
|
19,869 |
|
|
|
6.16 |
% |
Total loans held for investment |
|
|
3,204,998 |
|
|
|
194,218 |
|
|
|
6.06 |
% |
|
|
3,096,786 |
|
|
|
171,033 |
|
|
|
5.52 |
% |
Total interest-earning assets |
|
|
3,774,342 |
|
|
$ |
221,247 |
|
|
|
5.86 |
% |
|
|
3,719,274 |
|
|
$ |
181,067 |
|
|
|
4.87 |
% |
Total noninterest-earning assets |
|
|
246,981 |
|
|
|
|
|
|
|
|
|
|
|
244,894 |
|
|
|
|
|
|
|
|
|
Total average assets |
|
$ |
4,021,323 |
|
|
|
|
|
|
|
|
|
|
$ |
3,964,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW |
|
$ |
58,191 |
|
|
$ |
725 |
|
|
|
1.25 |
% |
|
$ |
73,335 |
|
|
$ |
262 |
|
|
|
0.36 |
% |
Money Market |
|
|
429,102 |
|
|
|
10,566 |
|
|
|
2.46 |
% |
|
|
631,094 |
|
|
|
5,114 |
|
|
|
0.81 |
% |
Saving deposits |
|
|
126,062 |
|
|
|
915 |
|
|
|
0.73 |
% |
|
|
144,409 |
|
|
|
185 |
|
|
|
0.13 |
% |
Time deposits, |
|
|
1,146,513 |
|
|
|
47,150 |
|
|
|
4.11 |
% |
|
|
609,464 |
|
|
|
6,583 |
|
|
|
1.08 |
% |
Time deposits, greater than |
|
|
742,839 |
|
|
|
29,687 |
|
|
|
4.00 |
% |
|
|
565,059 |
|
|
|
6,755 |
|
|
|
1.20 |
% |
Total interest-bearing deposits |
|
|
2,502,707 |
|
|
|
89,043 |
|
|
|
3.56 |
% |
|
|
2,023,361 |
|
|
|
18,899 |
|
|
|
0.93 |
% |
FHLB advances |
|
|
172,219 |
|
|
|
2,869 |
|
|
|
1.67 |
% |
|
|
192,438 |
|
|
|
2,872 |
|
|
|
1.49 |
% |
Long-term debt |
|
|
169,182 |
|
|
|
8,478 |
|
|
|
5.01 |
% |
|
|
173,275 |
|
|
|
8,777 |
|
|
|
5.07 |
% |
Subordinated debentures |
|
|
14,821 |
|
|
|
1,474 |
|
|
|
9.95 |
% |
|
|
14,603 |
|
|
|
868 |
|
|
|
5.94 |
% |
Total interest-bearing liabilities |
|
|
2,858,929 |
|
|
|
101,864 |
|
|
|
3.56 |
% |
|
|
2,403,677 |
|
|
|
31,416 |
|
|
|
1.31 |
% |
Noninterest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
602,291 |
|
|
|
|
|
|
|
|
|
|
|
1,050,063 |
|
|
|
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
59,561 |
|
|
|
|
|
|
|
|
|
|
|
39,647 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
661,852 |
|
|
|
|
|
|
|
|
|
|
|
1,089,710 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
500,540 |
|
|
|
|
|
|
|
|
|
|
|
470,781 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
4,021,321 |
|
|
|
|
|
|
|
|
|
|
$ |
3,964,168 |
|
|
|
|
|
|
|
|
|
Net interest income / interest rate spreads |
|
|
|
|
|
$ |
119,383 |
|
|
|
2.30 |
% |
|
|
|
|
|
$ |
149,651 |
|
|
|
3.56 |
% |
Net interest margin |
|
|
|
|
|
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
|
|
|
|
|
4.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of deposits |
|
$ |
3,104,998 |
|
|
$ |
89,043 |
|
|
|
2.87 |
% |
|
$ |
3,073,424 |
|
|
$ |
18,899 |
|
|
|
0.61 |
% |
Total cost of funds |
|
$ |
3,461,220 |
|
|
$ |
101,864 |
|
|
|
2.94 |
% |
|
$ |
3,453,740 |
|
|
$ |
31,416 |
|
|
|
0.91 |
% |
(1) |
Includes income and average balances for FHLB stock, term federal funds, interest-bearing time deposits and other miscellaneous interest-bearing assets. |
|
(2) |
Interest income and average rates for tax-exempt loans and securities are presented on a tax-equivalent basis. | |
(3) |
Average loan balances include non-accrual loans and loans held for sale. Interest income on loans includes - amortization of deferred loan fees, net of deferred loan costs. |
RBB BANCORP AND SUBSIDIARIES
|
||||||||||||||||||||
|
|
For the Three Months Ended |
|
|
For the Year Ended December 31, |
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
|
|
|
|
|
|
|
|||
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Per share data (common stock) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value |
|
$ |
27.47 |
|
|
$ |
26.45 |
|
|
$ |
25.55 |
|
|
$ |
27.47 |
|
|
$ |
25.55 |
|
Tangible book value (1) |
|
$ |
23.48 |
|
|
$ |
22.53 |
|
|
$ |
21.58 |
|
|
$ |
23.48 |
|
|
$ |
21.58 |
|
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets, annualized |
|
|
1.20 |
% |
|
|
0.83 |
% |
|
|
1.80 |
% |
|
|
1.06 |
% |
|
|
1.62 |
% |
Return on average shareholders' equity, annualized |
|
|
9.48 |
% |
|
|
6.66 |
% |
|
|
14.59 |
% |
|
|
8.48 |
% |
|
|
13.66 |
% |
Return on average tangible common equity, annualized (1) |
|
|
11.12 |
% |
|
|
7.82 |
% |
|
|
17.33 |
% |
|
|
9.97 |
% |
|
|
16.26 |
% |
Noninterest income to average assets, annualized |
|
|
0.73 |
% |
|
|
0.27 |
% |
|
|
0.24 |
% |
|
|
0.37 |
% |
|
|
0.28 |
% |
Noninterest expense to average assets, annualized |
|
|
1.63 |
% |
|
|
1.65 |
% |
|
|
1.45 |
% |
|
|
1.76 |
% |
|
|
1.63 |
% |
Yield on average earning assets |
|
|
5.82 |
% |
|
|
5.78 |
% |
|
|
5.75 |
% |
|
|
5.86 |
% |
|
|
4.87 |
% |
Yield on average loans |
|
|
5.96 |
% |
|
|
5.99 |
% |
|
|
5.97 |
% |
|
|
6.06 |
% |
|
|
5.52 |
% |
Cost of average total deposits (2) |
|
|
3.38 |
% |
|
|
3.14 |
% |
|
|
1.37 |
% |
|
|
2.87 |
% |
|
|
0.61 |
% |
Cost of average interest-bearing deposits |
|
|
4.08 |
% |
|
|
3.83 |
% |
|
|
1.93 |
% |
|
|
3.56 |
% |
|
|
0.93 |
% |
Cost of average interest-bearing liabilities |
|
|
4.00 |
% |
|
|
3.80 |
% |
|
|
2.17 |
% |
|
|
3.56 |
% |
|
|
1.31 |
% |
Net interest spread |
|
|
1.82 |
% |
|
|
1.98 |
% |
|
|
3.58 |
% |
|
|
2.30 |
% |
|
|
3.56 |
% |
Net interest margin |
|
|
2.73 |
% |
|
|
2.87 |
% |
|
|
4.26 |
% |
|
|
3.16 |
% |
|
|
4.02 |
% |
Efficiency ratio (3) |
|
|
49.58 |
% |
|
|
55.59 |
% |
|
|
34.24 |
% |
|
|
52.64 |
% |
|
|
40.13 |
% |
Operating expense ratio, annualized |
|
|
1.63 |
% |
|
|
1.65 |
% |
|
|
1.45 |
% |
|
|
1.76 |
% |
|
|
1.63 |
% |
Common stock dividend payout ratio |
|
|
25.00 |
% |
|
|
35.56 |
% |
|
|
15.05 |
% |
|
|
28.57 |
% |
|
|
16.62 |
% |
(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
|
||||||||||||
|
|
At or for the quarter ended |
|
|||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|||
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|||
Credit Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past due |
|
$ |
16,803 |
|
|
$ |
19,662 |
|
|
$ |
15,249 |
|
Loans 30-89 days past due to total loans |
|
|
0.55 |
% |
|
|
0.63 |
% |
|
|
0.46 |
% |
Nonperforming loans |
|
$ |
31,619 |
|
|
$ |
40,146 |
|
|
$ |
23,523 |
|
Nonperforming loans to total loans |
|
|
1.04 |
% |
|
|
1.29 |
% |
|
|
0.71 |
% |
Nonperforming assets |
|
$ |
31,619 |
|
|
$ |
40,430 |
|
|
$ |
24,100 |
|
Nonperforming assets to total assets |
|
|
0.79 |
% |
|
|
0.99 |
% |
|
|
0.61 |
% |
Special mention loans |
|
$ |
32,842 |
|
|
$ |
31,212 |
|
|
$ |
42,212 |
|
Special mention loans to total loans |
|
|
1.08 |
% |
|
|
1.00 |
% |
|
|
1.27 |
% |
Substandard loans |
|
$ |
61,091 |
|
|
$ |
71,401 |
|
|
$ |
61,966 |
|
Substandard loans to total loans |
|
|
2.01 |
% |
|
|
2.29 |
% |
|
|
1.86 |
% |
Allowance for loan losses to total loans |
|
|
1.38 |
% |
|
|
1.36 |
% |
|
|
1.23 |
% |
Allowance for loan losses to nonperforming loans |
|
|
132.52 |
% |
|
|
105.69 |
% |
|
|
174.62 |
% |
Net charge-offs |
|
$ |
109 |
|
|
$ |
2,206 |
|
|
$ |
85 |
|
Net charge-offs to average loans |
|
|
0.01 |
% |
|
|
0.28 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets (2) |
|
|
11.06 |
% |
|
|
10.71 |
% |
|
|
10.65 |
% |
Tier 1 leverage ratio |
|
|
11.99 |
% |
|
|
11.68 |
% |
|
|
11.67 |
% |
Tier 1 common capital to risk-weighted assets |
|
|
19.07 |
% |
|
|
17.65 |
% |
|
|
16.03 |
% |
Tier 1 capital to risk-weighted assets |
|
|
19.69 |
% |
|
|
18.22 |
% |
|
|
16.58 |
% |
Total capital to risk-weighted assets |
|
|
25.92 |
% |
|
|
26.24 |
% |
|
|
24.27 |
% |
(1) |
December 31, 2023 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
|
||||||||||||||||||||||||
Loan Portfolio Detail |
|
As of December 31, 2023 |
|
|
As of September 30, 2023 |
|
|
As of December 31, 2022 |
|
|||||||||||||||
(dollars in thousands) |
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
||||||
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
130,096 |
|
|
|
4.3 |
% |
|
$ |
127,655 |
|
|
|
4.1 |
% |
|
$ |
201,223 |
|
|
|
6.0 |
% |
SBA |
|
|
52,074 |
|
|
|
1.7 |
% |
|
|
50,420 |
|
|
|
1.6 |
% |
|
|
61,411 |
|
|
|
1.9 |
% |
Construction and land development |
|
|
181,469 |
|
|
|
6.0 |
% |
|
|
259,778 |
|
|
|
8.3 |
% |
|
|
276,876 |
|
|
|
8.3 |
% |
Commercial real estate (1) |
|
|
1,167,857 |
|
|
|
38.5 |
% |
|
|
1,164,210 |
|
|
|
37.3 |
% |
|
|
1,312,132 |
|
|
|
39.3 |
% |
Single-family residential mortgages |
|
|
1,487,796 |
|
|
|
49.1 |
% |
|
|
1,505,307 |
|
|
|
48.2 |
% |
|
|
1,464,108 |
|
|
|
43.9 |
% |
Other loans |
|
|
12,569 |
|
|
|
0.4 |
% |
|
|
13,582 |
|
|
|
0.5 |
% |
|
|
20,699 |
|
|
|
0.6 |
% |
Total loans (2) |
|
$ |
3,031,861 |
|
|
|
100.0 |
% |
|
$ |
3,120,952 |
|
|
|
100.0 |
% |
|
$ |
3,336,449 |
|
|
|
100.0 |
% |
Allowance for credit losses |
|
|
(41,903 |
) |
|
|
|
|
|
|
(42,430 |
) |
|
|
|
|
|
|
(41,076 |
) |
|
|
|
|
Total loans, net |
|
$ |
2,989,958 |
|
|
|
|
|
|
$ |
3,078,522 |
|
|
|
|
|
|
$ |
3,295,373 |
|
|
|
|
|
(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 |
Non-GAAP Reconciliations
Tangible Book Value Reconciliations
The tangible book value per share is a non-GAAP disclosure. Management measures the tangible book value per share to assess the Company’s capital strength and business performance and believes these are helpful to investors as additional tool for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of December 31, 2023, September 30, 2023, and December 31, 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except share and per share data) |
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|||
Tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
$ |
511,260 |
|
|
$ |
502,511 |
|
|
$ |
484,563 |
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
Core deposit intangible |
|
|
(2,795 |
) |
|
|
(3,010 |
) |
|
|
(3,718 |
) |
Tangible common equity |
|
$ |
436,967 |
|
|
$ |
428,003 |
|
|
$ |
409,347 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets-GAAP |
|
$ |
4,026,025 |
|
|
$ |
4,069,354 |
|
|
$ |
3,919,058 |
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
Core deposit intangible |
|
|
(2,795 |
) |
|
|
(3,010 |
) |
|
|
(3,718 |
) |
Tangible assets |
|
$ |
3,951,732 |
|
|
$ |
3,994,846 |
|
|
$ |
3,843,842 |
|
Common shares outstanding |
|
|
18,609,179 |
|
|
|
18,995,303 |
|
|
|
18,965,776 |
|
Common equity to assets ratio |
|
|
12.70 |
% |
|
|
12.35 |
% |
|
|
12.36 |
% |
Tangible common equity to tangible assets ratio |
|
|
11.06 |
% |
|
|
10.71 |
% |
|
|
10.65 |
% |
Book value per share |
|
$ |
27.47 |
|
|
$ |
26.45 |
|
|
$ |
25.55 |
|
Tangible book value per share |
|
$ |
23.48 |
|
|
$ |
22.53 |
|
|
$ |
21.58 |
|
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 these are helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights), and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
(dollars in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income available to common shareholders |
|
$ |
12,073 |
|
|
$ |
17,581 |
|
|
$ |
42,465 |
|
|
$ |
64,327 |
|
Average shareholders' equity |
|
|
505,184 |
|
|
|
477,964 |
|
|
|
500,540 |
|
|
|
470,781 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(71,498 |
) |
|
|
(70,948 |
) |
Core deposit intangible |
|
|
(2,935 |
) |
|
|
(3,882 |
) |
|
|
(3,282 |
) |
|
|
(4,131 |
) |
Adjusted average tangible common equity |
|
$ |
430,751 |
|
|
$ |
402,584 |
|
|
$ |
425,760 |
|
|
$ |
395,702 |
|
Return on average common equity |
|
|
9.48 |
% |
|
|
14.59 |
% |
|
|
8.48 |
% |
|
|
13.66 |
% |
Return on average tangible common equity |
|
|
11.12 |
% |
|
|
17.33 |
% |
|
|
9.97 |
% |
|
|
16.26 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240122238325/en/
Lynn Hopkins, Interim Chief Financial Officer
(213) 716-8066
lhopkins@rbbusa.com
Source: RBB Bancorp
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