rbb-8k_20180419.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 19, 2018

 

RBB BANCORP

(Exact name of Registrant as Specified in Its Charter)

 

 

California

001-38149

27-2776416

(State or Other Jurisdiction
of Incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

 

 

 

660 S. Figueroa Street, Suite 1888,

Los Angeles, California

 

90017

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (213) 627-9888

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On April 23, 2018, RBB Bancorp issued a press release setting forth the financial results for the quarter ended March 31, 2018, and information relating to our quarterly conference call and webcast.  A copy of this press release is attached hereto as Exhibit 99.1 and is being furnished pursuant to this Item 2.02.

Item 8.01 Other Events.

On April 19, 2018, RBB Bancorp announced that its Board of Directors declared a cash dividend of $0.09 per share of its common stock.  The dividend is payable on May 15, 2018 to shareholders of record as of April 30, 2018.  A copy of the press release announcing the dividend is attached hereto as Exhibit 99.2.

The information in this report (including Exhibit 99.1 and 99.2) shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set for the by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

 

(d)

Exhibits.

 

 

99.1

Press Release, dated April 23, 2018, announcing the financial results of RBB Bancorp for the quarter ended March 31, 2018.

 

 

99.2

Press Release, dated April 19, 2018, announcing RBB Bancorp declared a quarterly cash dividend of $0.09 per share.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

RBB BANCORP

(Registrant)

 

 

 

 

Date:  April 23, 2018

 

By:

/s/ David Morris

 

 

 

David Morris

 

 

 

Executive Vice President and

Chief Financial Officer

 

3

rbb-ex991_6.htm

 

Exhibit 99.1

Press Release

For Immediate Release

 

 

Contacts:

Yee Phong (Alan) Thian

 

 

Chairman, President and CEO

 

 

(626) 307-7559

 

 

David Morris

 

 

Executive Vice President and CFO

 

 

(714) 670-2488

 

RBB Bancorp Reports First Quarter Earnings for 2018

Conference Call and Webcast Scheduled for Today, April 23, 2018 at

10:00 a.m. Pacific Time/1:00 p.m. Eastern Time

Net income was $8.8 million or $0.52 diluted earnings per share

Total loans, including loans held for sale, increased by $70.4 million, or 20.8% annualized growth, from the end of the prior quarter

Total deposits increased by $36.2 million, or 11.0% annualized growth, from the end of the prior quarter

Definitive agreement to acquire First American International Corp. and enter the New York City market  

Los Angeles, CA, April 23, 2018 – RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (“the Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as “the Company”, announced financial results for the quarter ended March  31, 2018.

The Company reported net income of $8.8 million, or $0.52 diluted earnings per share, for the three months ended March 31, 2018, compared to net income of $4.9 million, or $0.29 diluted earnings per share, and $5.5 million, or $0.40 diluted earnings per share, for the three months ended December 31, 2017 and March 31, 2017, respectively.

“We saw a significant increase in our profitability during the first quarter, as our earnings per share increased by 30% over the prior year,” said Mr. Alan Thian, Chairman, President and CEO of RBB Bancorp. “We continue to see strong demand for residential mortgage loans, which drove an over 20% annualized increase in total loans during the quarter.  We continue to fund this loan demand with lower cost sources, as our noninterest-bearing demand deposits increased by more than 10% from the end of the prior quarter.  Our loan pipeline remains strong, which should lead to continued improvement in revenue and earnings as we move through the year.  In addition to the strong organic growth we are generating, the acquisition of First American International Corp. announced today will provide us with another catalyst for growing our franchise and creating additional long-term value for our shareholders.”

Key Performance Ratios

Net income of $8.8 million for the first quarter of 2018 produced an annualized return on average assets of 2.15% and an annualized return on average equity of 13.27%. This compares to an annualized return on average assets of 1.18% and an annualized return on average equity of 7.31% for the fourth quarter of 2017.  The efficiency ratio for the first quarter of 2018 was 43.85%, compared to 31.74% for the prior quarter.


 

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $16.4 million for the first quarter of 2018, compared to $17.9 million for the fourth quarter of 2017.  The decrease was primarily attributable to a 36 basis point decrease in the net interest margin partially offset by a $29.0 million increase in average earning assets.  Accretion of purchase discounts contributed $353,000 to net interest income in the first quarter of 2018, compared to $2.7 million in the fourth quarter of 2017. The decrease in accretion income followed the early payoff of one large acquired loan in the fourth quarter.

Compared to the first quarter of 2017, net interest income, before provision for loan losses, increased from $13.5 million. The increase was primarily attributable to a $216.5 million increase in average earning assets, combined with a 20 basis point increase in the net interest margin.

Net interest margin was 4.26% for the first quarter of 2018, a decrease from 4.62% in the fourth quarter of 2017. The decrease was primarily attributable to a 32 basis point decrease in the yield on earning assets, primarily due to lower loan discount accretion income, partially offset by a favorable shift in the mix of earning assets. Loan discount accretion contributed 9 basis points to the net interest margin in the first quarter of 2018, compared to 71 basis points in the fourth quarter of 2017.

Compared to the first quarter of 2017, net interest margin increased from 4.06%. The increase was primarily attributable to a 20 basis point increase in the yield on earning assets, combined with a $216.5 million increase in average earning assets.

Noninterest Income

Noninterest income was $2.5 million for the first quarter of 2018, a decrease of $1.3 million from $3.8 million in the fourth quarter of 2017.  In the first quarter, gain on loan sales decreased by $1.1 million.

The Company sold $38.5 million in mortgage loans for a net gain of $983,000 million during the quarter ended March 31, 2018, compared to $90.3 million in mortgage loans for a net gain of $2.0 million during the quarter ended December 31, 2017. The Company originated $126.5 million in mortgage loans for the quarter ended March 31, 2018, compared with $120.5 million during the quarter ended December 31, 2017.

The Company sold $17.3 million in SBA loans for a net gain of $833,000 during the first quarter of 2018, compared to $16.6 million in SBA loans sold for a net gain of $970,000 during the fourth quarter of 2017.  SBA loan originations for the first quarter were $4.6 million, compared to $1.9 million for the fourth quarter of 2017 and $20.4 million in the first quarter of 2017. The decrease in SBA loan originations was attributable to the departure of certain SBA business development officers.

Compared to the first quarter of 2017, noninterest income increased slightly by $23,000. The gain on loan sales increased by $318,000, partially offset by a decrease in net loan servicing fees.

Noninterest Expense

Noninterest expense for the first quarter of 2018 was $8.3 million, compared to $6.9 million for the fourth quarter of 2017.  The increase was primarily attributable to a $735,000 increase in salaries and employee benefits expense, an increase in data processing costs of $115,000, an increase in legal and professional expenses of $154,000 and an increase in other expenses of $380,000.

Compared to the first quarter of 2017, noninterest expense increased from $6.6 million. The $1.7 million increase was primarily due to an increase in salaries and employee benefits of $768,000, an increase in data processing costs of $121,000, an increase in legal and professional expenses of $645,000 and an increase in other expenses of $143,000.

Income Taxes

On December 22, 2017, the “Tax Cuts and Jobs Act”, was signed into law, among other items, reducing the federal corporate tax rate to 21% effective January 1, 2018.  As a result, the Company concluded that the reduction in the federal corporate tax rate required the revaluation of the Company’s net deferred tax assets.    The Company performed an analysis and determined that the value of the deferred tax assets had declined by $2.6 million.   To reflect the decline in the value of the deferred tax assets, the Company recorded additional tax expense of $2.6 million during the fourth quarter of 2017.

The effective tax rate for the three months ended March 31, 2018 was 15.2% (includes the impact of a deduction for stock options exercised in the amount of $1.2 million) and 60.5% for the three months ended December 31, 2017 (includes the impact of the deferred tax asset write-down of $2.6 million), respectively.  

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As a result of the newly enacted tax legislation, the Company estimates that its effective tax rate for 2018 will be in the range of 27% and 29%. The estimated annual effective tax rate will vary depending upon tax-advantaged income, stock option exercises, and available tax credits.

Loan Portfolio

Loans held for investment, net of deferred fees and discounts, totaled $1.26 billion as of March 31, 2018, an increase of $12.9 million, or 4.17% annualized growth, from $1.25 billion at December 31, 2017, and an increase of $122.4 million, or 10.74%, from March 31, 2017.  The increase in loans held for investment from the end of the prior quarter was primarily attributable to growth in the commercial real estate and residential real estate portfolios.

Mortgage loans held for sale were $183.4 million as of March 31, 2018, an increase of $57.6 million from $125.8 million at December 31, 2017.  

Deposits

Deposits were at $1.37 billion at March 31, 2018, an increase of $36.2 million, or 10.99% annualized growth, from $1.34 billion at December 31, 2017, and an increase of $125.2 million, or 10.0%, from March 31, 2017. The increase in total deposits from the end of the prior quarter was attributable to growth in noninterest-bearing demand deposits and certificates of deposit, partially offset by decreases in interest-bearing non-maturity deposits.

Noninterest-bearing deposits increased to $316.0 million as of March 31, 2018, compared to $285.7 million at December 31, 2017 and $215.7 million at March 31, 2017.  

Asset Quality

Nonperforming assets totaled $4.8 million, or 0.28% of total assets at March 31, 2018, an increase from $2.9 million, or 0.17%, of total assets at December 31, 2017.  Nonperforming assets consist of Other Real Estate Owned (foreclosed properties), loans modified under troubled debt restructurings (TDR), non-accrual loans, and loans past due 90 days or more and still accruing interest. Nonperforming assets exclude purchase credit impaired (PCI) loans acquired in prior acquisitions.  The increase in nonperforming assets was primarily due to a $1.4 million SBA loan that was placed on nonaccrual status as of March 31, 2018 because it doesn’t meet the Company’s cash flow requirements, but has become current subsequent to quarter end.  The Company believes that no impairment exists, as there is more than sufficient collateral value supporting the loan.

Loans held-for-investment 30 to 89 days past due decreased to $2.2 million at March 31, 2018, from $3.6 million at December 31, 2017.  

There were no net charge-offs during the first quarter of 2018.

The Company recorded provision for loan losses of $184,000 for the first quarter of 2018, which was primarily attributable to the growth in total average loans during the quarter.

The allowance for loan losses totaled $14.0 million, or 1.11% of total loans, at March 31, 2018, compared with $13.8 million, or 1.10%, of total loans at December 31, 2017.  

Properties

Our headquarters office is located at 660 South Figueroa Street, Suite 1888, Los Angeles, California. It is in downtown Los Angeles at “Metro Center” and houses our risk management unit, including compliance and BSA groups, and our single-family residential mortgage group. The lease expires in May 2018. In October 2017, the Company signed a lease for a new headquarters office at 1055 Wilshire Boulevard, Suite 1220, Los Angeles, California, which we expect to occupy in June 2018. In February 2018 the Company signed a lease for a new branch in Irvine, California which we expect to occupy in May 2018.  In September 2017 the Company signed a lease to occupy a new location in Oxnard which we occupied on March 26, 2018.

Corporate Overview

RBB Bancorp is a $1.7 billion in assets bank holding company headquartered in Los Angeles, California. Its wholly-owned subsidiary, Royal Business Bank (the “Bank”), is a full service commercial bank which provides business banking services to the Chinese-American communities in Los Angeles County, Orange County, Ventura County and in Las Vegas, Nevada, including remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and

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industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance and a full range of depository accounts. The Bank has ten branches in Los Angeles County, located in downtown Los Angeles, San Gabriel, Torrance, Rowland Heights, Monterey Park, Silver Lake, Arcadia, Cerritos, Diamond Bar, and west Los Angeles, two branches in Ventura County, located in Oxnard and Westlake Village, and one branch in Las Vegas, Nevada. The Company’s administrative and lending center is located at 123 E. Valley Blvd., San Gabriel, California 91176, and its finance and operations center is located at 7025 Orangethorpe Avenue, Buena Park, California 90621. RBB’s website address is www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 10:00 a.m. PST/1:00 p.m. EST on Monday, April 23, 2018, to discuss the Company’s first quarter 2018 financial results.

To listen to the conference call, please dial 1-833-659-7620 or 1-430-775-1348, passcode 7889999. A replay of the call will be made available at 1-855-859-2056 or 1-404-537-3406, passcode 7889999, approximately one hour after the conclusion of the call and will remain available through April 30, 2018.

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 the Company’s 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 within the meaning of the Private Securities Litigation Reform Act of 1995, including 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, local, regional, national and international economic and market conditions and events and the impact they may have on us, our customers and our assets and liabilities; our ability to attract deposits and other sources of funding or liquidity; supply and demand for real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend, including both residential and commercial real estate; a prolonged slowdown or decline in real estate construction, sales or leasing activities; changes in the financial performance and/or condition of our borrowers, depositors or key vendors or counterparties; changes in our levels of delinquent loans, nonperforming assets, allowance for loan losses and charge-offs; the costs or effects of acquisitions or dispositions we may make, whether we are able to obtain any required governmental approvals in connection with any such acquisitions or dispositions, and/or our ability to realize the contemplated financial or business benefits associated with any such acquisitions or dispositions; the effect of changes in laws, regulations and applicable judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, banking capital levels, consumer, commercial or secured lending, securities and securities trading and hedging, compliance, employment, executive compensation, insurance, vendor management and information security) with which we and our subsidiaries must comply or believe we should comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements, including changes in the Basel Committee framework establishing capital standards for credit, operations and market risk; inflation, interest rate, securities market and monetary fluctuations; changes in government interest rates or monetary policies; changes in the amount and availability of deposit insurance; cyber-security threats, including loss of system functionality or theft or loss of Company or customer data or money; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, drought, or the effects of pandemic diseases; the timely development and acceptance of new banking products and services and the perceived overall value of these products and services by our customers and potential customers; the Company’s relationships with and reliance upon vendors with respect to the operation of certain of the Company’s key internal and external systems and applications; changes in commercial or consumer spending, borrowing and savings preferences or behaviors; technological changes and the expanding use of technology in banking (including the adoption of mobile banking and funds transfer applications); the ability to retain and increase market share, retain and grow customers and control expenses; changes in the competitive and regulatory environment among financial and bank holding companies, banks and other financial service providers; volatility in the credit and equity markets and its effect on the general

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economy or local or regional business conditions; fluctuations in the price of the Company’s common stock or other securities; and the resulting impact on the Company’s ability to raise capital or make acquisitions, the effect of changes in accounting policies and practices, as may be adopted from time-to-time by our regulatory agencies, as well as by the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard-setters; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our workforce, management team and/or our board of directors; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (such as securities, consumer or employee class action litigation), regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California DBO; 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, 2017, 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.

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RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2018

 

 

2017

 

 

2017

 

 

2017

 

 

2017

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

53,535

 

 

$

70,048

 

 

$

69,552

 

 

$

104,366

 

 

$

147,547

 

Federal funds sold and other cash equivalents

 

 

25,000

 

 

 

80,000

 

 

 

96,500

 

 

 

58,500

 

 

 

20,000

 

Total cash and cash equivalents

 

 

78,535

 

 

 

150,048

 

 

 

166,052

 

 

 

162,866

 

 

 

167,547

 

Interest-bearing deposits in other financial

   institutions

 

 

600

 

 

 

600

 

 

 

100

 

 

 

100

 

 

 

100

 

Investment securities available for sale

 

 

82,848

 

 

 

64,957

 

 

 

55,697

 

 

 

40,241

 

 

 

39,155

 

Investment securities held to maturity

 

 

9,998

 

 

 

10,009

 

 

 

5,191

 

 

 

6,199

 

 

 

6,206

 

Mortgage loans held for sale

 

 

183,391

 

 

 

125,847

 

 

 

125,704

 

 

 

83,263

 

 

 

66,555

 

Loans held for investment

 

 

1,261,928

 

 

 

1,249,074

 

 

 

1,196,522

 

 

 

1,146,005

 

 

 

1,139,563

 

Allowance for loan losses

 

 

(13,957

)

 

 

(13,773

)

 

 

(11,420

)

 

 

(10,627

)

 

 

(14,186

)

Net loans held for investment

 

 

1,247,971

 

 

 

1,235,301

 

 

 

1,185,102

 

 

 

1,135,378

 

 

 

1,125,377

 

Premises and equipment, net

 

 

6,687

 

 

 

6,583

 

 

 

6,300

 

 

 

6,441

 

 

 

6,538

 

Federal Home Loan Bank (FHLB) stock

 

 

6,770

 

 

 

6,770

 

 

 

6,770

 

 

 

6,770

 

 

 

6,770

 

Net deferred tax assets

 

 

6,460

 

 

 

6,086

 

 

 

9,517

 

 

 

10,214

 

 

 

11,068

 

Income tax receivable

 

 

272

 

 

 

272

 

 

 

 

 

 

 

 

 

 

Other real estate owned (OREO)

 

 

293

 

 

 

293

 

 

 

293

 

 

 

833

 

 

 

833

 

Cash surrender value of life insurance

 

 

32,980

 

 

 

32,782

 

 

 

32,578

 

 

 

32,358

 

 

 

32,142

 

Goodwill

 

 

29,940

 

 

 

29,940

 

 

 

29,940

 

 

 

29,940

 

 

 

29,940

 

Servicing assets

 

 

5,979

 

 

 

5,957

 

 

 

5,370

 

 

 

4,661

 

 

 

4,223

 

Core deposit intangibles

 

 

1,357

 

 

 

1,438

 

 

 

1,525

 

 

 

1,612

 

 

 

1,699

 

Accrued interest and other assets

 

 

18,738

 

 

 

14,176

 

 

 

12,575

 

 

 

12,723

 

 

 

7,595

 

Total assets

 

$

1,712,819

 

 

$

1,691,059

 

 

$

1,642,714

 

 

$

1,533,599

 

 

$

1,505,748

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

316,047

 

 

$

285,690

 

 

$

287,574

 

 

$

215,716

 

 

$

215,652

 

Savings, NOW and money market accounts

 

 

399,892

 

 

 

411,663

 

 

 

362,018

 

 

 

348,627

 

 

 

325,589

 

Time deposits

 

 

657,565

 

 

 

639,928

 

 

 

668,700

 

 

 

714,105

 

 

 

707,016

 

Total deposits

 

 

1,373,504

 

 

 

1,337,281

 

 

 

1,318,292

 

 

 

1,278,448

 

 

 

1,248,257

 

Reserve for unfunded commitments

 

 

575

 

 

 

282

 

 

 

489

 

 

 

517

 

 

 

985

 

Income tax payable

 

 

1,563

 

 

 

 

 

 

 

 

 

 

 

 

4,664

 

FHLB advances

 

 

 

 

 

25,000

 

 

 

 

 

 

 

 

 

10,000

 

Long-term debt

 

 

49,564

 

 

 

49,528

 

 

 

49,492

 

 

 

49,456

 

 

 

49,419

 

Subordinated debentures

 

 

3,447

 

 

 

3,424

 

 

 

3,402

 

 

 

3,379

 

 

 

3,357

 

Accrued interest and other liabilities

 

 

8,344

 

 

 

10,368

 

 

 

10,708

 

 

 

9,462

 

 

 

5,570

 

Total liabilities

 

 

1,436,997

 

 

 

1,425,883

 

 

 

1,382,383

 

 

 

1,341,262

 

 

 

1,322,252

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder's equity

 

 

276,862

 

 

 

265,619

 

 

 

260,468

 

 

 

192,427

 

 

 

183,695

 

Accumulated other comprehensive income

   (loss) - Net of tax

 

 

(1,040

)

 

 

(443

)

 

 

(137

)

 

 

(90

)

 

 

(199

)

Total shareholders' equity

 

 

275,822

 

 

 

265,176

 

 

 

260,331

 

 

 

192,337

 

 

 

183,496

 

Total liabilities and stockholders’

   equity

 

$

1,712,819

 

 

$

1,691,059

 

 

$

1,642,714

 

 

$

1,533,599

 

 

$

1,505,748

 

 

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RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

 

March 31, 2018

 

 

December 31, 2017

 

 

March 31, 2017

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

19,074

 

 

$

20,297

 

 

$

16,033

 

Interest on interest-bearing deposits

 

 

187

 

 

 

209

 

 

 

151

 

Interest on investment securities

 

 

560

 

 

 

484

 

 

 

278

 

Dividend income on FHLB stock

 

 

119

 

 

 

119

 

 

 

153

 

Interest on federal funds sold and other

 

 

237

 

 

 

370

 

 

 

144

 

Total interest income

 

 

20,177

 

 

 

21,479

 

 

 

16,759

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

702

 

 

 

684

 

 

 

474

 

Interest on time deposits

 

 

2,046

 

 

 

1,987

 

 

 

1,849

 

Interest on subordinated debentures and other

 

 

913

 

 

 

909

 

 

 

905

 

Interest on other borrowed funds

 

 

71

 

 

 

7

 

 

 

17

 

Total interest expense

 

 

3,732

 

 

 

3,587

 

 

 

3,245

 

Net interest income

 

 

16,445

 

 

 

17,892

 

 

 

13,514

 

Provision for loan losses

 

 

184

 

 

 

2,436

 

 

 

 

Net interest income after provision for loan losses

 

 

16,261

 

 

 

15,456

 

 

 

13,514

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges, fees and other

 

 

466

 

 

 

487

 

 

 

460

 

Gain on sale of loans

 

 

1,815

 

 

 

2,949

 

 

 

1,497

 

Loan servicing fees, net of amortization

 

 

(31

)

 

 

151

 

 

 

262

 

Recoveries on loans acquired in business combinations

 

 

6

 

 

 

7

 

 

 

28

 

Increase in cash surrender value of life insurance

 

 

199

 

 

 

204

 

 

 

185

 

 

 

 

2,455

 

 

 

3,798

 

 

 

2,432

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

4,951

 

 

 

4,216

 

 

 

4,183

 

Occupancy and equipment expenses

 

 

791

 

 

 

764

 

 

 

744

 

Data processing

 

 

473

 

 

 

358

 

 

 

352

 

Legal and professional

 

 

258

 

 

 

104

 

 

 

(387

)

Amortization of intangibles

 

 

81

 

 

 

87

 

 

 

94

 

Other expenses

 

 

1,735

 

 

 

1,355

 

 

 

1,592

 

 

 

 

8,289

 

 

 

6,884

 

 

 

6,578

 

Income before income taxes

 

 

10,427

 

 

 

12,370

 

 

 

9,368

 

Income tax expense

 

 

1,580

 

 

 

7,481

 

 

 

3,875

 

Net income

 

$

8,847

 

 

$

4,889

 

 

$

5,493

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.55

 

 

$

0.31

 

 

$

0.43

 

Diluted

 

$

0.52

 

 

$

0.29

 

 

$

0.40

 

 

7


 

RBB BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND NET INTEREST INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

For the three months ended

 

 

 

March 31, 2018

 

 

December 31, 2017

 

 

March 31, 2017

 

 

 

Average

 

 

Interest

 

 

Yield /

 

 

Average

 

 

Interest

 

 

Yield /

 

 

Average

 

 

Interest

 

 

Yield /

 

(tax-equivalent basis, dollars in thousands)

 

Balance

 

 

& Fees

 

 

Rate

 

 

Balance

 

 

& Fees

 

 

Rate

 

 

Balance

 

 

& Fees

 

 

Rate

 

Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold, cash

   equivalents & other (1)

 

$

97,741

 

 

$

543

 

 

 

2.25

%

 

$

155,403

 

 

$

698

 

 

 

1.78

%

 

$

118,250

 

 

$

448

 

 

 

1.54

%

Securities (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

70,742

 

 

 

477

 

 

 

2.74

%

 

 

61,386

 

 

 

424

 

 

 

2.74

%

 

 

38,846

 

 

 

217

 

 

 

2.27

%

Held to maturity

 

 

10,005

 

 

 

92

 

 

 

3.78

%

 

 

6,472

 

 

 

66

 

 

 

4.07

%

 

 

6,211

 

 

 

64

 

 

 

4.15

%

Mortgage loans held for sale

 

 

158,820

 

 

 

1,838

 

 

 

4.69

%

 

 

132,170

 

 

 

1,531

 

 

 

4.60

%

 

 

51,748

 

 

 

621

 

 

 

4.87

%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

829,971

 

 

 

11,097

 

 

 

5.42

%

 

 

802,024

 

 

 

13,279

 

 

 

6.57

%

 

 

765,675

 

 

 

10,810

 

 

 

5.73

%

Commercial (4)

 

 

398,811

 

 

 

6,139

 

 

 

6.24

%

 

 

379,651

 

 

 

5,487

 

 

 

5.73

%

 

 

368,907

 

 

 

4,602

 

 

 

5.06

%

Total loans

 

 

1,228,782

 

 

 

17,236

 

 

 

5.69

%

 

 

1,181,675

 

 

 

18,766

 

 

 

6.30

%

 

 

1,134,582

 

 

 

15,412

 

 

 

5.51

%

Total earning assets

 

 

1,566,090

 

 

$

20,187

 

 

 

5.23

%

 

 

1,537,106

 

 

$

21,485

 

 

 

5.55

%

 

 

1,349,637

 

 

$

16,762

 

 

 

5.04

%

Noninterest-earning assets

 

 

100,408

 

 

 

 

 

 

 

 

 

 

 

104,056

 

 

 

 

 

 

 

 

 

 

 

87,764

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,666,498

 

 

 

 

 

 

 

 

 

 

$

1,641,162

 

 

 

 

 

 

 

 

 

 

$

1,437,401

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market deposits

 

$

360,151

 

 

$

667

 

 

 

0.75

%

 

$

357,972

 

 

$

643

 

 

 

0.71

%

 

$

267,079

 

 

$

435

 

 

 

0.66

%

Savings deposits

 

 

32,648

 

 

 

35

 

 

 

0.43

%

 

 

35,118

 

 

 

41

 

 

 

0.46

%

 

 

34,145

 

 

 

39

 

 

 

0.46

%

Time deposits

 

 

645,654

 

 

 

2,046

 

 

 

1.29

%

 

 

645,178

 

 

 

1,987

 

 

 

1.22

%

 

 

692,910

 

 

 

1,850

 

 

 

1.08

%

Total interest-bearing deposits

 

 

1,038,453

 

 

 

2,748

 

 

 

1.07

%

 

 

1,038,268

 

 

 

2,671

 

 

 

1.02

%

 

 

994,134

 

 

 

2,324

 

 

 

0.95

%

FHLB short-term advances

 

 

17,771

 

 

 

71

 

 

 

1.62

%

 

 

3,043

 

 

 

7

 

 

 

0

 

 

 

10,278

 

 

 

17

 

 

 

0.67

%

Long-term debt

 

 

49,542

 

 

 

849

 

 

 

6.96

%

 

 

49,505

 

 

 

848

 

 

 

6.80

%

 

 

49,395

 

 

 

848

 

 

 

6.96

%

Subordinated debentures

 

 

3,433

 

 

 

64

 

 

 

7.62

%

 

 

3,411

 

 

 

61

 

 

 

7.10

%

 

 

3,343

 

 

 

56

 

 

 

6.79

%

Total interest-bearing liabilities

 

 

1,109,199

 

 

$

3,732

 

 

 

1.36

%

 

 

1,094,227

 

 

$

3,587

 

 

 

1.30

%

 

 

1,057,150

 

 

$

3,245

 

 

 

1.24

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

277,146

 

 

 

 

 

 

 

 

 

 

 

268,588

 

 

 

 

 

 

 

 

 

 

 

185,757

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

9,723

 

 

 

 

 

 

 

 

 

 

 

13,151

 

 

 

 

 

 

 

 

 

 

 

10,828

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

286,869

 

 

 

 

 

 

 

 

 

 

 

281,738

 

 

 

 

 

 

 

 

 

 

 

196,585

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

270,430

 

 

 

 

 

 

 

 

 

 

 

265,197

 

 

 

 

 

 

 

 

 

 

 

183,666