RBB Bancorp Reports Fourth Quarter and Fiscal Year 2024 Earnings
RBB Bancorp reported Q4 2024 financial results with net income of $4.4 million ($0.25 per diluted share), down from $7.0 million ($0.39 per share) in Q3 2024. For full-year 2024, net income was $26.7 million ($1.47 per share) compared to $42.5 million ($2.24 per share) in 2023.
Key Q4 metrics include:
- Net interest margin increased to 2.76% from 2.68% in Q3
- Net interest income rose to $26.0 million from $24.5 million in Q3
- Provision for credit losses increased to $6.0 million from $3.3 million in Q3
- Nonperforming assets rose to $81.0 million (2.03% of total assets)
Total assets stood at $4.0 billion, with loans held for investment at $3.1 billion. The loan-to-deposit ratio was 97.5%, and total deposits were $3.1 billion. The allowance for loan losses as a percentage of loans increased to 1.56% from 1.41% in Q3 2024.
RBB Bancorp ha riportato i risultati finanziari del quarto trimestre 2024 con un utile netto di 4,4 milioni di dollari (0,25 dollari per azione diluita), in calo rispetto ai 7,0 milioni di dollari (0,39 dollari per azione) del terzo trimestre 2024. Per l'intero anno 2024, l'utile netto è stato di 26,7 milioni di dollari (1,47 dollari per azione) rispetto ai 42,5 milioni di dollari (2,24 dollari per azione) del 2023.
I principali indicatori del quarto trimestre includono:
- Il margine di interesse netto è aumentato al 2,76% rispetto al 2,68% del terzo trimestre
- Il reddito da interessi netti è salito a 26,0 milioni di dollari rispetto ai 24,5 milioni di dollari del terzo trimestre
- Le accantonamenti per perdite su crediti sono aumentati a 6,0 milioni di dollari dai 3,3 milioni di dollari del terzo trimestre
- Le attività non performanti sono aumentate a 81,0 milioni di dollari (2,03% del totale attivo)
Il totale delle attività si è attestato a 4,0 miliardi di dollari, con prestiti detenuti per investimento pari a 3,1 miliardi di dollari. Il rapporto prestiti-depositi era del 97,5% e il totale dei depositi era di 3,1 miliardi di dollari. L'accantonamento per perdite su prestiti come percentuale dei prestiti è aumentato all'1,56% rispetto all'1,41% del terzo trimestre 2024.
RBB Bancorp reportó resultados financieros del cuarto trimestre de 2024 con un ingreso neto de 4.4 millones de dólares (0.25 dólares por acción diluida), una disminución frente a los 7.0 millones de dólares (0.39 dólares por acción) en el tercer trimestre de 2024. Para el año completo de 2024, el ingreso neto fue de 26.7 millones de dólares (1.47 dólares por acción) en comparación con 42.5 millones de dólares (2.24 dólares por acción) en 2023.
Los indicadores clave del cuarto trimestre incluyen:
- El margen de intereses netos aumentó al 2.76% desde el 2.68% en el tercer trimestre
- Los ingresos por intereses netos aumentaron a 26.0 millones de dólares desde 24.5 millones de dólares en el tercer trimestre
- La provisión para pérdidas crediticias aumentó a 6.0 millones de dólares desde 3.3 millones de dólares en el tercer trimestre
- Los activos no productivos aumentaron a 81.0 millones de dólares (2.03% del total de activos)
Los activos totales se situaron en 4.0 mil millones de dólares, con préstamos mantenidos para inversión de 3.1 mil millones de dólares. La relación préstamos-depósitos fue del 97.5%, y los depósitos totales fueron de 3.1 mil millones de dólares. La provisión para pérdidas de préstamos como porcentaje de los préstamos aumentó al 1.56% desde el 1.41% en el tercer trimestre de 2024.
RBB Bancorp는 2024년 4분기 재무 결과를 발표하며 순이익이 440만 달러(희석 주당 0.25달러)로, 2024년 3분기 700만 달러(주당 0.39달러)에서 감소했다고 보고했습니다. 2024년 전체 연도에 대한 순이익은 2670만 달러(주당 1.47달러)로, 2023년의 4250만 달러(주당 2.24달러)에 비해 줄어들었습니다.
4분기의 주요 지표는 다음과 같습니다:
- 순이자 마진이 2.68%에서 2.76%로 증가했습니다.
- 순이자 수익이 2450만 달러에서 2600만 달러로 상승했습니다.
- 신용 손실 준비금이 330만 달러에서 600만 달러로 증가했습니다.
- 불량 자산이 8100만 달러(전체 자산의 2.03%)로 증가했습니다.
총 자산은 40억 달러로, 투자용 대출은 31억 달러였습니다. 대출-예금 비율은 97.5%였으며, 총 예금은 31억 달러였습니다. 대출 대비 손실 준비금 비율은 3분기 1.41%에서 1.56%로 증가했습니다.
RBB Bancorp a annoncé les résultats financiers du quatrième trimestre 2024 avec un bénéfice net de 4,4 millions de dollars (0,25 dollar par action diluée), en baisse par rapport à 7,0 millions de dollars (0,39 dollar par action) au troisième trimestre 2024. Pour l'ensemble de l'année 2024, le bénéfice net était de 26,7 millions de dollars (1,47 dollar par action), comparé à 42,5 millions de dollars (2,24 dollars par action) en 2023.
Les indicateurs clés du quatrième trimestre comprennent :
- La marge d'intérêt nette a augmenté à 2,76 % contre 2,68 % au troisième trimestre
- Les revenus d'intérêts nets ont augmenté à 26,0 millions de dollars contre 24,5 millions de dollars au troisième trimestre
- La provision pour pertes sur crédits a augmenté à 6,0 millions de dollars contre 3,3 millions de dollars au troisième trimestre
- Les actifs non performants ont augmenté à 81,0 millions de dollars (2,03 % du total des actifs)
Les actifs totaux s'élevaient à 4,0 milliards de dollars, avec des prêts détenus pour investissement à 3,1 milliards de dollars. Le ratio prêts-dépôts était de 97,5 % et les dépôts totaux étaient de 3,1 milliards de dollars. La provision pour pertes de prêts en pourcentage des prêts a augmenté de 1,41 % au troisième trimestre à 1,56 % au quatrième trimestre 2024.
RBB Bancorp hat die Finanzzahlen für das vierte Quartal 2024 veröffentlicht, mit einem Nettogewinn von 4,4 Millionen Dollar (0,25 Dollar pro verwässerter Aktie), was einem Rückgang von 7,0 Millionen Dollar (0,39 Dollar pro Aktie) im dritten Quartal 2024 entspricht. Für das gesamte Jahr 2024 betrug der Nettogewinn 26,7 Millionen Dollar (1,47 Dollar pro Aktie) im Vergleich zu 42,5 Millionen Dollar (2,24 Dollar pro Aktie) im Jahr 2023.
Wichtige Kennzahlen für das vierte Quartal sind:
- Der Nettozinsmargen stieg auf 2,76% von 2,68% im dritten Quartal
- Die Nettozinseinnahmen erhöhten sich auf 26,0 Millionen Dollar von 24,5 Millionen Dollar im dritten Quartal
- Die Rückstellungen für Kreditverluste stiegen auf 6,0 Millionen Dollar von 3,3 Millionen Dollar im dritten Quartal
- Die notleidenden Vermögenswerte stiegen auf 81,0 Millionen Dollar (2,03% der Gesamtaktiva)
Die Gesamtsumme der Aktiva belief sich auf 4,0 Milliarden Dollar, wobei die für Investitionen gehaltenen Kredite 3,1 Milliarden Dollar betrugen. Das Verhältnis von Krediten zu Einlagen lag bei 97,5%, und die Gesamteinlagen beliefen sich auf 3,1 Milliarden Dollar. Die Rückstellungen für Kreditverluste in Prozent der Kredite stiegen von 1,41% im dritten Quartal auf 1,56% im vierten Quartal 2024.
- Net interest margin improved to 2.76% from 2.68% in Q3 2024
- Net interest income increased to $26.0 million from $24.5 million in Q3 2024
- Noninterest-bearing deposits increased by $19.4 million to $563.0 million
- Net income declined to $4.4 million from $7.0 million in Q3 2024
- Annual net income decreased to $26.7 million from $42.5 million in 2023
- Nonperforming assets increased to 2.03% of total assets from 1.52% in Q3 2024
- Provision for credit losses increased to $6.0 million from $3.3 million in Q3 2024
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
However, there are some positive developments in the bank's core operations. The net interest margin expanded by
The efficiency ratio deterioration to
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
LOS ANGELES, Feb. 03, 2025 (GLOBE NEWSWIRE) -- RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter and fiscal year ended December 31, 2024.
Fourth Quarter 2024 Highlights
- Net income totaled
$4.4 million , or$0.25 diluted earnings per share - Return on average assets of
0.44% , compared to0.72% for the quarter ended September 30, 2024 - Net interest margin of
2.76% compared to2.68% for the quarter ended September 30, 2024 - Book value and tangible book value per share(1) 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
“Declining funding costs and stable interest income drove net interest income and net interest margin higher in the fourth quarter,” said Johnny Lee, President of the Company and President and Chief Executive Officer of the Bank. “We 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. We did see an increase in nonperforming loans mainly due to one credit relationship that was downgraded late in the fourth quarter. We are actively working to resolve our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital.”
“We are saddened by the devastation caused by the recent fires in Los Angeles,” said David Morris, Chief Executive Officer of the Company. “We stand ready to support our community and neighbors as they begin the process of rebuilding.”
| (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 (“NIM”) was
The overall cost of funds decreased to
Net interest income was
NIM was
The overall cost of funds increased to
Provision for Credit Losses
The provision for credit losses was
The provision for credit losses was
Noninterest Income
Noninterest income for the fourth quarter of 2024 was
Noninterest income for the year ended December 31, 2024 was
Noninterest Expense
Noninterest expense for the fourth quarter of 2024 was
Noninterest expense for the year ended December 31, 2024 was
Income Taxes
The effective tax rate was
The effective tax rate was
Balance Sheet
At December 31, 2024, total assets were
Loan and Securities Portfolio
Loans held for investment ("HFI") totaled
As of December 31, 2024, available-for-sale securities totaled
Deposits
Total deposits were
Credit Quality
Nonperforming assets totaled
Nonperforming assets at December 31, 2024 include loans HFS with a total fair value of
Special mention loans totaled
Substandard loans totaled
30-89 day delinquent loans, excluding nonperforming loans, totaled
As of December 31, 2024, the allowance for credit losses totaled
| For the Three Months Ended December 31, 2024 | For the Year Ended December 31, 2024 | |||||||||||||||||||||
| (dollars in thousands) | Allowance for loan losses | Reserve for unfunded loan commitments | Allowance for credit losses | Allowance for loan losses | Reserve for unfunded loan commitments | Allowance for credit losses | ||||||||||||||||
| Beginning balance | $ | 43,685 | $ | 779 | $ | 44,464 | $ | 41,903 | $ | 640 | $ | 42,543 | ||||||||||
| Provision for (reversal of) credit losses | 6,050 | (50 | ) | 6,000 | 9,768 | 89 | 9,857 | |||||||||||||||
| Less loans charged-off | (2,092 | ) | — | (2,092 | ) | (4,083 | ) | — | (4,083 | ) | ||||||||||||
| Recoveries on loans charged-off | 86 | — | 86 | 141 | — | 141 | ||||||||||||||||
| Ending balance | $ | 47,729 | $ | 729 | $ | 48,458 | $ | 47,729 | $ | 729 | $ | 48,458 | ||||||||||
Shareholders' Equity
At December 31, 2024, total shareholders' equity was
Contact:
Lynn Hopkins, Chief Financial Officer
(213) 716-8066
lhopkins@rbbusa.com
| (1) | Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release. | |
Corporate Overview
RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of December 31, 2024, the Company had total assets of
Conference Call
Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, February 4, 2025, to discuss the Company’s fourth 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 834092, conference ID RBBQ424. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 51830, approximately one hour after the conclusion of the call and will remain available through February 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 “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.
Disclosure
This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.
Safe Harbor
Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; our ability to attract and retain deposits and access other sources of liquidity; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system; the impact of future or recent changes in the Federal Deposit Insurance Corporation ("FDIC") insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters, including Accounting Standards Update 2016-13 (Topic 326, “Measurement of Current Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses Model, which changed how we estimate credit losses and may further increase the required level of our allowance for credit losses in future periods; market disruption and volatility; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuances of preferred stock; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2023, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.
| RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 27,747 | $ | 26,388 | $ | 23,313 | $ | 21,887 | $ | 22,671 | |||||||||
| Interest-earning deposits with financial institutions | 229,998 | 323,002 | 229,456 | 247,356 | 408,702 | ||||||||||||||
| Cash and cash equivalents | 257,745 | 349,390 | 252,769 | 269,243 | 431,373 | ||||||||||||||
| Interest-earning time deposits with financial institutions | 600 | 600 | 600 | 600 | 600 | ||||||||||||||
| Investment securities available for sale | 420,190 | 305,666 | 325,582 | 335,194 | 318,961 | ||||||||||||||
| Investment securities held to maturity | 5,191 | 5,195 | 5,200 | 5,204 | 5,209 | ||||||||||||||
| Loans held for sale | 11,250 | 812 | 3,146 | 3,903 | 1,911 | ||||||||||||||
| Loans held for investment | 3,053,230 | 3,091,896 | 3,047,712 | 3,027,361 | 3,031,861 | ||||||||||||||
| Allowance for loan losses | (47,729 | ) | (43,685 | ) | (41,741 | ) | (41,688 | ) | (41,903 | ) | |||||||||
| Net loans held for investment | 3,005,501 | 3,048,211 | 3,005,971 | 2,985,673 | 2,989,958 | ||||||||||||||
| Premises and equipment, net | 24,601 | 24,839 | 25,049 | 25,363 | 25,684 | ||||||||||||||
| Federal Home Loan Bank (FHLB) stock | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||||||||
| Cash surrender value of bank owned life insurance | 60,296 | 59,889 | 59,486 | 59,101 | 58,719 | ||||||||||||||
| Goodwill | 71,498 | 71,498 | 71,498 | 71,498 | 71,498 | ||||||||||||||
| Servicing assets | 6,985 | 7,256 | 7,545 | 7,794 | 8,110 | ||||||||||||||
| Core deposit intangibles | 2,011 | 2,194 | 2,394 | 2,594 | 2,795 | ||||||||||||||
| Right-of-use assets | 28,048 | 29,283 | 30,530 | 31,231 | 29,803 | ||||||||||||||
| Accrued interest and other assets | 83,561 | 70,644 | 63,416 | 65,608 | 66,404 | ||||||||||||||
| Total assets | $ | 3,992,477 | $ | 3,990,477 | $ | 3,868,186 | $ | 3,878,006 | $ | 4,026,025 | |||||||||
| Liabilities and shareholders' equity | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 563,012 | $ | 543,623 | $ | 542,971 | $ | 539,517 | $ | 539,621 | |||||||||
| Savings, NOW and money market accounts | 663,034 | 666,089 | 647,770 | 642,840 | 632,729 | ||||||||||||||
| Time deposits, | 1,007,452 | 1,052,462 | 1,014,189 | 1,083,898 | 1,190,821 | ||||||||||||||
| Time deposits, greater than | 850,291 | 830,010 | 818,675 | 762,074 | 811,589 | ||||||||||||||
| Total deposits | 3,083,789 | 3,092,184 | 3,023,605 | 3,028,329 | 3,174,760 | ||||||||||||||
| FHLB advances | 200,000 | 200,000 | 150,000 | 150,000 | 150,000 | ||||||||||||||
| Long-term debt, net of issuance costs | 119,529 | 119,433 | 119,338 | 119,243 | 119,147 | ||||||||||||||
| Subordinated debentures | 15,156 | 15,102 | 15,047 | 14,993 | 14,938 | ||||||||||||||
| Lease liabilities - operating leases | 29,705 | 30,880 | 32,087 | 32,690 | 31,191 | ||||||||||||||
| Accrued interest and other liabilities | 36,421 | 23,150 | 16,818 | 18,765 | 24,729 | ||||||||||||||
| Total liabilities | 3,484,600 | 3,480,749 | 3,356,895 | 3,364,020 | 3,514,765 | ||||||||||||||
| Shareholders' equity: | |||||||||||||||||||
| Common stock | 259,957 | 259,280 | 266,160 | 271,645 | 271,925 | ||||||||||||||
| Additional paid-in capital | 3,645 | 3,520 | 3,456 | 3,348 | 3,623 | ||||||||||||||
| Retained earnings | 264,460 | 262,946 | 262,518 | 259,903 | 255,152 | ||||||||||||||
| Non-controlling interest | 72 | 72 | 72 | 72 | 72 | ||||||||||||||
| Accumulated other comprehensive loss, net | (20,257 | ) | (16,090 | ) | (20,915 | ) | (20,982 | ) | (19,512 | ) | |||||||||
| Total shareholders' equity | 507,877 | 509,728 | 511,291 | 513,986 | 511,260 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,992,477 | $ | 3,990,477 | $ | 3,868,186 | $ | 3,878,006 | $ | 4,026,025 | |||||||||
| RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except share and per share data) | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||
| Interest and dividend income: | |||||||||||||||
| Interest and fees on loans | $ | 46,374 | $ | 47,326 | $ | 45,895 | $ | 184,567 | $ | 194,264 | |||||
| Interest on interest-earning deposits | 3,641 | 3,388 | 4,650 | 15,422 | 10,746 | ||||||||||
| Interest on investment securities | 3,962 | 3,127 | 3,706 | 14,331 | 14,028 | ||||||||||
| Dividend income on FHLB stock | 330 | 326 | 312 | 1,314 | 1,125 | ||||||||||
| Interest on federal funds sold and other | 248 | 258 | 269 | 1,027 | 985 | ||||||||||
| Total interest and dividend income | 54,555 | 54,425 | 54,832 | 216,661 | 221,148 | ||||||||||
| Interest expense: | |||||||||||||||
| Interest on savings deposits, NOW and money market accounts | 4,671 | 5,193 | 4,026 | 19,295 | 12,205 | ||||||||||
| Interest on time deposits | 21,361 | 22,553 | 22,413 | 89,086 | 76,837 | ||||||||||
| Interest on long-term debt and subordinated debentures | 1,660 | 1,681 | 2,284 | 6,699 | 9,951 | ||||||||||
| Interest on FHLB advances | 886 | 453 | 440 | 2,217 | 2,869 | ||||||||||
| Total interest expense | 28,578 | 29,880 | 29,163 | 117,297 | 101,862 | ||||||||||
| Net interest income before provision for credit losses | 25,977 | 24,545 | 25,669 | 99,364 | 119,286 | ||||||||||
| Provision for (reversal of) credit losses | 6,000 | 3,300 | (431 | ) | 9,857 | 3,362 | |||||||||
| Net interest income after provision for (reversal of) credit losses | 19,977 | 21,245 | 26,100 | 89,507 | 115,924 | ||||||||||
| Noninterest income: | |||||||||||||||
| Service charges and fees | 988 | 1,071 | 972 | 4,115 | 4,172 | ||||||||||
| Gain on sale of loans | 376 | 447 | 116 | 1,586 | 374 | ||||||||||
| Loan servicing fees, net of amortization | 492 | 605 | 616 | 2,265 | 2,576 | ||||||||||
| Increase in cash surrender value of life insurance | 407 | 403 | 374 | 1,577 | 1,409 | ||||||||||
| (Loss) gain on OREO | — | — | (57 | ) | 1,016 | 133 | |||||||||
| Other income | 466 | 3,220 | 5,373 | 4,776 | 6,354 | ||||||||||
| Total noninterest income | 2,729 | 5,746 | 7,394 | 15,335 | 15,018 | ||||||||||
| Noninterest expense: | |||||||||||||||
| Salaries and employee benefits | 9,927 | 10,008 | 8,860 | 39,395 | 37,795 | ||||||||||
| Occupancy and equipment expenses | 2,403 | 2,518 | 2,387 | 9,803 | 9,629 | ||||||||||
| Data processing | 1,499 | 1,472 | 1,357 | 5,857 | 5,326 | ||||||||||
| Legal and professional | 1,355 | 958 | 1,291 | 4,453 | 8,198 | ||||||||||
| Office expenses | 399 | 348 | 349 | 1,455 | 1,512 | ||||||||||
| Marketing and business promotion | 251 | 252 | 241 | 864 | 1,132 | ||||||||||
| Insurance and regulatory assessments | 677 | 658 | 1,122 | 3,298 | 3,165 | ||||||||||
| Core deposit premium | 182 | 200 | 215 | 784 | 923 | ||||||||||
| Other expenses | 956 | 1,007 | 571 | 3,254 | 3,016 | ||||||||||
| Total noninterest expense | 17,649 | 17,421 | 16,393 | 69,163 | 70,696 | ||||||||||
| Income before income taxes | 5,057 | 9,570 | 17,101 | 35,679 | 60,246 | ||||||||||
| Income tax expense | 672 | 2,571 | 5,028 | 9,014 | 17,781 | ||||||||||
| Net income | $ | 4,385 | $ | 6,999 | $ | 12,073 | $ | 26,665 | $ | 42,465 | |||||
| Net income per share | |||||||||||||||
| Basic | $ | 0.25 | $ | 0.39 | $ | 0.64 | $ | 1.47 | $ | 2.24 | |||||
| Diluted | $ | 0.25 | $ | 0.39 | $ | 0.64 | $ | 1.47 | $ | 2.24 | |||||
| Cash dividends declared per common share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.64 | $ | 0.64 | |||||
| Weighted-average common shares outstanding | |||||||||||||||
| Basic | 17,704,992 | 17,812,791 | 18,887,501 | 18,121,764 | 18,965,346 | ||||||||||
| Diluted | 17,796,840 | 17,885,359 | 18,900,351 | 18,183,319 | 18,985,233 | ||||||||||
| RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited) | ||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||
| (tax-equivalent basis, dollars in thousands) | Average | Interest | Yield / | Average | Interest | Yield / | Average | Interest | Yield / | |||||||||||||||||
| Balance | & Fees | Rate | Balance | & Fees | Rate | Balance | & Fees | Rate | ||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||
| Cash and cash equivalents (1) | $ | 308,455 | $ | 3,890 | 5.02 | % | $ | 260,205 | $ | 3,646 | 5.57 | % | $ | 333,940 | $ | 4,919 | 5.84 | % | ||||||||
| FHLB Stock | 15,000 | 330 | 8.75 | % | 15,000 | 326 | 8.65 | % | 15,000 | 312 | 8.25 | % | ||||||||||||||
| Securities | ||||||||||||||||||||||||||
| Available for sale (2) | 361,253 | 3,939 | 4.34 | % | 298,948 | 3,105 | 4.13 | % | 329,426 | 3,684 | 4.44 | % | ||||||||||||||
| Held to maturity (2) | 5,194 | 48 | 3.68 | % | 5,198 | 46 | 3.52 | % | 5,212 | 46 | 3.50 | % | ||||||||||||||
| Total loans | 3,059,786 | 46,374 | 6.03 | % | 3,069,578 | 47,326 | 6.13 | % | 3,055,232 | 45,895 | 5.96 | % | ||||||||||||||
| Total interest-earning assets | 3,749,688 | $ | 54,581 | 5.79 | % | 3,648,929 | $ | 54,449 | 5.94 | % | 3,738,810 | $ | 54,856 | 5.82 | % | |||||||||||
| Total noninterest-earning assets | 244,609 | 242,059 | 253,385 | |||||||||||||||||||||||
| Total average assets | $ | 3,994,297 | $ | 3,890,988 | $ | 3,992,195 | ||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||
| NOW | 53,879 | 254 | 1.88 | % | $ | 55,757 | $ | 277 | 1.98 | % | $ | 54,378 | $ | 214 | 1.56 | % | ||||||||||
| Money market | 463,850 | 3,735 | 3.20 | % | 439,936 | 4,093 | 3.70 | % | 422,582 | 3,252 | 3.05 | % | ||||||||||||||
| Saving deposits | 162,351 | 682 | 1.67 | % | 164,515 | 823 | 1.99 | % | 148,354 | 560 | 1.50 | % | ||||||||||||||
| Time deposits, | 1,034,946 | 11,583 | 4.45 | % | 1,037,365 | 12,312 | 4.72 | % | 1,162,014 | 13,244 | 4.52 | % | ||||||||||||||
| Time deposits, greater than | 835,583 | 9,778 | 4.66 | % | 819,207 | 10,241 | 4.97 | % | 781,833 | 9,169 | 4.65 | % | ||||||||||||||
| Total interest-bearing deposits | 2,550,609 | 26,032 | 4.06 | % | 2,516,780 | 27,746 | 4.39 | % | 2,569,161 | 26,439 | 4.08 | % | ||||||||||||||
| FHLB advances | 200,000 | 886 | 1.76 | % | 150,543 | 453 | 1.20 | % | 150,000 | 440 | 1.16 | % | ||||||||||||||
| Long-term debt | 119,466 | 1,295 | 4.31 | % | 119,370 | 1,295 | 4.32 | % | 155,536 | 1,895 | 4.83 | % | ||||||||||||||
| Subordinated debentures | 15,121 | 365 | 9.60 | % | 15,066 | 386 | 10.19 | % | 14,902 | 389 | 10.36 | % | ||||||||||||||
| Total interest-bearing liabilities | 2,885,196 | 28,578 | 3.94 | % | 2,801,759 | 29,880 | 4.24 | % | 2,889,599 | 29,163 | 4.00 | % | ||||||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||||||||
| Noninterest-bearing deposits | 539,900 | 528,081 | 535,554 | |||||||||||||||||||||||
| Other noninterest-bearing liabilities | 56,993 | 52,428 | 61,858 | |||||||||||||||||||||||
| Total noninterest-bearing liabilities | 596,893 | 580,509 | 597,412 | |||||||||||||||||||||||
| Shareholders' equity | 512,208 | 508,720 | 505,184 | |||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,994,297 | $ | 3,890,988 | $ | 3,992,195 | ||||||||||||||||||||
| Net interest income / interest rate spreads | $ | 26,003 | 1.85 | % | $ | 24,569 | 1.70 | % | $ | 25,693 | 1.82 | % | ||||||||||||||
| Net interest margin | 2.76 | % | 2.68 | % | 2.73 | % | ||||||||||||||||||||
| Total cost of deposits | $ | 3,090,509 | $ | 26,032 | 3.35 | % | $ | 3,044,861 | $ | 27,746 | 3.63 | % | $ | 3,104,715 | $ | 26,439 | 3.38 | % | ||||||||
| Total cost of funds | $ | 3,425,096 | $ | 28,578 | 3.32 | % | $ | 3,329,840 | $ | 29,880 | 3.57 | % | $ | 3,425,153 | $ | 29,163 | 3.38 | % | ||||||||
____________________
| (1) | Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets. |
| (2) | Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis. |
| (3) | Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments. |
| RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited) | |||||||||||||||||
| For the Year Ended | |||||||||||||||||
| December 31, 2024 | December 31, 2023 | ||||||||||||||||
| (tax-equivalent basis, dollars in thousands) | Average | Interest | Yield / | Average | Interest | Yield / | |||||||||||
| Balance | & Fees | Rate | Balance | & Fees | Rate | ||||||||||||
| Interest-earning assets | |||||||||||||||||
| Cash and cash equivalents (1) | $ | 297,331 | $ | 16,449 | 5.53 | % | $ | 216,851 | $ | 11,731 | 5.41 | % | |||||
| FHLB Stock | 15,000 | 1,314 | 8.76 | % | 15,000 | 1,125 | 7.50 | % | |||||||||
| Securities | |||||||||||||||||
| Available for sale (2) | 324,644 | 14,242 | 4.39 | % | 331,357 | 13,928 | 4.20 | % | |||||||||
| Held to maturity (2) | 5,200 | 188 | 3.62 | % | 5,509 | 198 | 3.59 | % | |||||||||
| Total loans | 3,041,337 | 184,567 | 6.07 | % | 3,205,625 | 194,264 | 6.06 | % | |||||||||
| Total interest-earning assets | 3,683,512 | $ | 216,760 | 5.88 | % | 3,774,342 | $ | 221,246 | 5.86 | % | |||||||
| Total noninterest-earning assets | 243,258 | 246,980 | |||||||||||||||
| Total average assets | $ | 3,926,770 | $ | 4,021,322 | |||||||||||||
| Interest-bearing liabilities | |||||||||||||||||
| NOW | $ | 56,158 | 1,105 | 1.97 | % | $ | 58,191 | $ | 725 | 1.25 | % | ||||||
| Money market | 436,925 | 15,231 | 3.49 | % | 429,102 | 10,565 | 2.46 | % | |||||||||
| Saving deposits | 162,243 | 2,959 | 1.82 | % | 126,062 | 915 | 0.73 | % | |||||||||
| Time deposits, | 1,074,291 | 50,059 | 4.66 | % | 1,146,513 | 47,150 | 4.11 | % | |||||||||
| Time deposits, greater than | 803,187 | 39,027 | 4.86 | % | 742,839 | 29,687 | 4.00 | % | |||||||||
| Total interest-bearing deposits | 2,532,804 | 108,381 | 4.28 | % | 2,502,707 | 89,042 | 3.56 | % | |||||||||
| FHLB advances | 162,705 | 2,217 | 1.36 | % | 172,219 | 2,869 | 1.67 | % | |||||||||
| Long-term debt | 119,324 | 5,182 | 4.34 | % | 169,182 | 8,477 | 5.01 | % | |||||||||
| Subordinated debentures | 15,039 | 1,517 | 10.09 | % | 14,821 | 1,474 | 9.95 | % | |||||||||
| Total interest-bearing liabilities | 2,829,872 | 117,297 | 4.14 | % | 2,858,929 | 101,862 | 3.56 | % | |||||||||
| Noninterest-bearing liabilities | |||||||||||||||||
| Noninterest-bearing deposits | 531,458 | 602,291 | |||||||||||||||
| Other noninterest-bearing liabilities | 53,970 | 59,562 | |||||||||||||||
| Total noninterest-bearing liabilities | 585,428 | 661,853 | |||||||||||||||
| Shareholders' equity | 511,470 | 500,540 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,926,770 | $ | 4,021,322 | |||||||||||||
| Net interest income / interest rate spreads | $ | 99,463 | 1.74 | % | $ | 119,384 | 2.30 | % | |||||||||
| Net interest margin | 2.70 | % | 3.16 | % | |||||||||||||
| Total cost of deposits | $ | 3,064,262 | $ | 108,381 | 3.54 | % | $ | 3,104,998 | $ | 89,042 | 2.87 | % | |||||
| Total cost of funds | $ | 3,361,330 | $ | 117,297 | 3.49 | % | $ | 3,461,220 | $ | 101,862 | 2.94 | % | |||||
____________________
| (1) | Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets. |
| (2) | Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis. |
| (3) | Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments. |
| RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| At or for the Three Months Ended | At or for the Year Ended December 31, | ||||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Per share data (common stock) | |||||||||||||||||||
| Book value | $ | 28.66 | $ | 28.81 | $ | 27.47 | $ | 28.66 | $ | 27.47 | |||||||||
| Tangible book value (1) | $ | 24.51 | $ | 24.64 | $ | 23.48 | $ | 24.51 | $ | 23.48 | |||||||||
| Performance ratios | |||||||||||||||||||
| Return on average assets, annualized | 0.44 | % | 0.72 | % | 1.20 | % | 0.68 | % | 1.06 | % | |||||||||
| Return on average shareholders' equity, annualized | 3.41 | % | 5.47 | % | 9.48 | % | 5.21 | % | 8.48 | % | |||||||||
| Return on average tangible common equity, annualized (1) | 3.98 | % | 6.40 | % | 11.12 | % | 6.09 | % | 9.97 | % | |||||||||
| Noninterest income to average assets, annualized | 0.27 | % | 0.59 | % | 0.73 | % | 0.39 | % | 0.37 | % | |||||||||
| Noninterest expense to average assets, annualized | 1.76 | % | 1.78 | % | 1.63 | % | 1.76 | % | 1.76 | % | |||||||||
| Yield on average earning assets | 5.79 | % | 5.94 | % | 5.82 | % | 5.88 | % | 5.86 | % | |||||||||
| Yield on average loans | 6.03 | % | 6.13 | % | 5.96 | % | 6.07 | % | 6.06 | % | |||||||||
| Cost of average total deposits (2) | 3.35 | % | 3.63 | % | 3.38 | % | 3.54 | % | 2.87 | % | |||||||||
| Cost of average interest-bearing deposits | 4.06 | % | 4.39 | % | 4.08 | % | 4.28 | % | 3.56 | % | |||||||||
| Cost of average interest-bearing liabilities | 3.94 | % | 4.24 | % | 4.00 | % | 4.14 | % | 3.56 | % | |||||||||
| Net interest spread | 1.85 | % | 1.70 | % | 1.82 | % | 1.74 | % | 2.30 | % | |||||||||
| Net interest margin | 2.76 | % | 2.68 | % | 2.73 | % | 2.70 | % | 3.16 | % | |||||||||
| Efficiency ratio (3) | 61.48 | % | 57.51 | % | 49.58 | % | 60.30 | % | 52.64 | % | |||||||||
| Common stock dividend payout ratio | 64.00 | % | 41.03 | % | 25.00 | % | 43.54 | % | 28.57 | % | |||||||||
____________________
| (1) | Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release. | |
| (2) | Total deposits include non-interest bearing deposits and interest-bearing deposits. | |
| (3) | Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income. | |
| RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands) | |||||||||||
| At or for the quarter ended | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| 2024 | 2024 | 2023 | |||||||||
| Credit Quality Data: | |||||||||||
| Special mention loans | $ | 65,329 | $ | 77,501 | $ | 32,842 | |||||
| Special mention loans to total loans | 2.14 | % | 2.51 | % | 1.08 | % | |||||
| Substandard loans HFI | $ | 89,141 | $ | 79,831 | $ | 61,099 | |||||
| Substandard loans HFS | $ | 11,195 | $ | — | $ | — | |||||
| Substandard loans HFI to total loans HFI | 2.92 | % | 2.58 | % | 2.02 | % | |||||
| Loans 30-89 days past due, excluding nonperforming loans | $ | 22,086 | $ | 10,625 | $ | 16,803 | |||||
| Loans 30-89 days past due, excluding nonperforming loans, to total loans | 0.72 | % | 0.34 | % | 0.55 | % | |||||
| Nonperforming loans HFI | $ | 69,843 | $ | 60,662 | $ | 31,619 | |||||
| Nonperforming loans HFS | $ | 11,195 | $ | — | $ | — | |||||
| OREO | $ | — | $ | — | $ | — | |||||
| Nonperforming assets | $ | 81,038 | $ | 60,662 | $ | 31,619 | |||||
| Nonperforming loans HFI to total loans HFI | 2.29 | % | 1.96 | % | 1.04 | % | |||||
| Nonperforming assets to total assets | 2.03 | % | 1.52 | % | 0.79 | % | |||||
| Allowance for loan losses | $ | 47,729 | $ | 43,685 | $ | 41,903 | |||||
| Allowance for loan losses to total loans HFI | 1.56 | % | 1.41 | % | 1.38 | % | |||||
| Allowance for loan losses to nonperforming loans HFI | 68.34 | % | 72.01 | % | 132.52 | % | |||||
| Net charge-offs | $ | 2,006 | $ | 1,201 | $ | 109 | |||||
| Net charge-offs to average loans | 0.26 | % | 0.16 | % | 0.01 | % | |||||
| Capital ratios (1) | |||||||||||
| Tangible common equity to tangible assets (2) | 11.08 | % | 11.13 | % | 11.06 | % | |||||
| Tier 1 leverage ratio | 11.92 | % | 12.19 | % | 11.99 | % | |||||
| Tier 1 common capital to risk-weighted assets | 17.94 | % | 18.16 | % | 19.07 | % | |||||
| Tier 1 capital to risk-weighted assets | 18.52 | % | 18.75 | % | 19.69 | % | |||||
| Total capital to risk-weighted assets | 24.49 | % | 24.80 | % | 25.92 | % | |||||
____________________
| (1 | ) | December 31, 2024 capital ratios are preliminary. |
| (2 | ) | Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release. |
| RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||||||
| Loan Portfolio Detail | As of December 31, 2024 | As of September 30, 2024 | As of December 31, 2023 | ||||||||||||||||
| (dollars in thousands) | $ | % | $ | % | $ | % | |||||||||||||
| Loans: | |||||||||||||||||||
| Commercial and industrial | $ | 129,585 | 4.2 | % | $ | 128,861 | 4.2 | % | $ | 130,096 | 4.3 | % | |||||||
| SBA | 47,263 | 1.5 | % | 48,089 | 1.6 | % | 52,074 | 1.7 | % | ||||||||||
| Construction and land development | 173,290 | 5.7 | % | 180,196 | 5.8 | % | 181,469 | 6.0 | % | ||||||||||
| Commercial real estate (1) | 1,201,420 | 39.3 | % | 1,252,682 | 40.5 | % | 1,167,857 | 38.5 | % | ||||||||||
| Single-family residential mortgages | 1,494,022 | 48.9 | % | 1,473,396 | 47.7 | % | 1,487,796 | 49.1 | % | ||||||||||
| Other loans | 7,650 | 0.4 | % | 8,672 | 0.2 | % | 12,569 | 0.4 | % | ||||||||||
| Total loans (2) | $ | 3,053,230 | 100.0 | % | $ | 3,091,896 | 100.0 | % | $ | 3,031,861 | 100.0 | % | |||||||
| Allowance for loan losses | (47,729 | ) | (43,685 | ) | (41,903 | ) | |||||||||||||
| Total loans, net | $ | 3,005,501 | $ | 3,048,211 | $ | 2,989,958 | |||||||||||||
_____________________
| (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 | |
| Deposits | As of December 31, 2024 | As of September 30, 2024 | As of December 31, 2023 | ||||||||||||||
| (dollars in thousands) | $ | % | $ | % | $ | % | |||||||||||
| Deposits: | |||||||||||||||||
| Noninterest-bearing demand | $ | 563,012 | 18.3 | % | $ | 543,623 | 17.6 | % | $ | 539,621 | 17.0 | % | |||||
| Savings, NOW and money market accounts | 663,034 | 21.5 | % | 666,089 | 21.5 | % | 632,729 | 19.9 | % | ||||||||
| Time deposits, | 882,438 | 28.6 | % | 926,877 | 30.0 | % | 876,918 | 27.6 | % | ||||||||
| Time deposits, greater than | 827,854 | 26.8 | % | 808,304 | 26.1 | % | 719,892 | 22.7 | % | ||||||||
| Wholesale deposits (1) | 147,451 | 4.8 | % | 147,291 | 4.8 | % | 405,600 | 12.8 | % | ||||||||
| Total deposits | $ | 3,083,789 | 100.0 | % | $ | 3,092,184 | 100.0 | % | $ | 3,174,760 | 100.0 | % | |||||
______________________
| (1) | Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services. | |
Non-GAAP Reconciliations
Tangible Book Value Reconciliations
Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of December 31, 2024, September 30, 2024, and December 31, 2023.
| (dollars in thousands, except share and per share data) | December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||
| Tangible common equity: | |||||||||||
| Total shareholders' equity | $ | 507,877 | $ | 509,728 | $ | 511,260 | |||||
| Adjustments | |||||||||||
| Goodwill | (71,498 | ) | (71,498 | ) | (71,498 | ) | |||||
| Core deposit intangible | (2,011 | ) | (2,194 | ) | (2,795 | ) | |||||
| Tangible common equity | $ | 434,368 | $ | 436,036 | $ | 436,967 | |||||
| Tangible assets: | |||||||||||
| Total assets-GAAP | $ | 3,992,477 | $ | 3,990,477 | $ | 4,026,025 | |||||
| Adjustments | |||||||||||
| Goodwill | (71,498 | ) | (71,498 | ) | (71,498 | ) | |||||
| Core deposit intangible | (2,011 | ) | (2,194 | ) | (2,795 | ) | |||||
| Tangible assets | $ | 3,918,968 | $ | 3,916,785 | $ | 3,951,732 | |||||
| Common shares outstanding | 17,720,416 | 17,693,416 | 18,609,179 | ||||||||
| Common equity to assets ratio | 12.72 | % | 12.77 | % | 12.70 | % | |||||
| Tangible common equity to tangible assets ratio | 11.08 | % | 11.13 | % | 11.06 | % | |||||
| Book value per share | $ | 28.66 | $ | 28.81 | $ | 27.47 | |||||
| Tangible book value per share | $ | 24.51 | $ | 24.64 | $ | 23.48 | |||||
Return on Average Tangible Common Equity
Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:
| Three Months Ended | Year Ended December 31, | ||||||||||||||||||
| (dollars in thousands) | December 31, 2024 | September 30, 2024 | December 31, 2023 | 2024 | 2023 | ||||||||||||||
| Net income available to common shareholders | $ | 4,385 | $ | 6,999 | $ | 12,073 | $ | 26,665 | $ | 42,465 | |||||||||
| Average shareholders' equity | 512,208 | 508,720 | 505,184 | 511,470 | 500,540 | ||||||||||||||
| Adjustments: | |||||||||||||||||||
| Average goodwill | (71,498 | ) | (71,498 | ) | (71,498 | ) | (71,498 | ) | (71,498 | ) | |||||||||
| Average core deposit intangible | (2,129 | ) | (2,326 | ) | (2,935 | ) | (2,425 | ) | (3,282 | ) | |||||||||
| Adjusted average tangible common equity | $ | 438,581 | $ | 434,896 | $ | 430,751 | $ | 437,547 | $ | 425,760 | |||||||||
| Return on average common equity | 3.41 | % | 5.47 | % | 9.48 | % | 5.21 | % | 8.48 | % | |||||||||
| Return on average tangible common equity | 3.98 | % | 6.40 | % | 11.12 | % | 6.09 | % | 9.97 | % | |||||||||
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?
