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Press Release

RBB Bancorp Reports First Quarter Earnings for 2018

April 23, 2018 at 7:59 AM EDT
Conference Call and Webcast Scheduled for Today 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, April 23, 2018 /PRNewswire/ -- 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. 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, and 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. 

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 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. PDT/1:00 p.m. EDT 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 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.

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


 

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


 

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


(tax-equivalent basis, dollars in thousands)


Average
Balance



Interest
& Fees



Yield /

Rate



Average

Balance



Interest

& Fees



Yield /

Rate



Average

Balance



Interest

& Fees



Yield /

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










Total liabilities and shareholders' equity


$

1,666,498











$

1,641,162











$

1,437,401










Net interest income / interest rate spreads






$

16,455




3.86

%






$

17,898




4.24

%






$

13,517




3.79

%

Net interest margin











4.26

%











4.62

%











4.06

%











(1)

Includes income and average balances for FHLB stock, term federal funds, interest-bearing time deposits and other miscellaneous interest-bearing assets.

(2)

We have a minor amount of tax-exempt loans and securities, less than $6 million at March 31, 2018 less than $1 million at December 31, 2017 and March 31, 2017. Interest income and average rates for tax-exempt loans and securities are presented on a tax-equivalent basis as of March 31, 2018 and 2017.

(3)

Average loan balances include nonaccrual loans and loans held for sale. Interest income on loans includes - amortization of deferred loan fees, net of deferred loan costs.

(4)

Includes purchased receivables, which are short term loans made to investment grade companies and are used for cash - management purposes by the Company.

 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)




For the three months ended




March 31,



December 31,



March 31,




2018



2017



2017


Per share data (common stock)













Earnings













Basic


$

0.55



$

0.31



$

0.43


Diluted


$

0.52



$

0.29



$

0.40


Book value


$

16.93



$

16.67



$

14.30


Tangible book value


$

15.01



$

14.70



$

11.84


Weighted average shares outstanding













Basic



16,082,894




15,849,285




12,827,803


Diluted



17,162,319




16,981,009




13,725,721


Shares outstanding at period end



16,288,927




15,908,893




12,827,803


Performance ratios













Return on average assets



2.15

%



1.18

%



1.55

%

Return on average shareholders' equity, annualized



13.27

%



7.31

%



12.13

%

Return on average tangible common equity, annualized



15.01

%



8.30

%



14.66

%

Noninterest income to average assets, annualized



0.60

%



0.92

%



0.69

%

Noninterest expense to average assets, annualized



2.02

%



1.66

%



1.86

%

Yield on average earning assets



5.23

%



5.54

%



5.04

%

Cost of average deposits



0.85

%



0.81

%



0.80

%

Cost of average interest-bearing deposits



1.07

%



1.02

%



0.95

%

Cost of average interest-bearing liabilities



1.36

%



1.30

%



1.24

%

Accretion on loans to average earning assets



0.09

%



0.71

%



0.32

%

Net interest spread



3.86

%



4.24

%



3.79

%

Net interest margin



4.26

%



4.62

%



4.06

%

Efficiency ratio



43.85

%



31.74

%



44.24

%

 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)




For the periods ending




March 31,



December 31,



March 31,




2018



2017



2017


Loan to deposit ratio



91.88

%



93.40

%



91.29

%

Core deposits / total deposits



73.45

%



74.09

%



69.23

%

Net non-core funding dependence ratio



14.63

%



18.11

%



13.59

%














Credit Quality Data:













Loans 30-89 days past due


$

2,221



$

3,636



$

2,525


Loans 30-89 days past due to total loans



0.18

%



0.29

%



0.22

%

Nonperforming loans


$

4,465



$

2,575



$

6,109


Nonperforming loans to total loans



0.35

%



0.21

%



0.54

%

Nonperforming assets


$

4,758



$

2,868



$

6,942


Nonperforming assets to total assets



0.28

%



0.16

%



0.46

%

Allowance for loan losses to total loans



1.11

%



1.10

%



1.24

%

Allowance for loan losses to nonperforming loans



312.60

%



534.87

%



232.22

%

Net charge-offs to average loans (for the quarter-to-date period)






0.01

%

















Regulatory and other capital ratios—Company













Tangible common equity to tangible assets



14.54

%



14.09

%



10.30

%

Tier 1 leverage ratio



15.23

%



14.35

%



11.07

%

Tier 1 common capital to risk-weighted assets



17.98

%



17.54

%



12.88

%

Tier 1 capital to risk-weighted assets



18.24

%



17.80

%



13.15

%

Total capital to risk-weighted assets



22.93

%



22.55

%



18.58

%














Regulatory capital ratios—bank only













Tier 1 leverage ratio



14.83

%



14.50

%



13.21

%

Tier 1 common capital to risk-weighted assets



17.75

%



17.42

%



15.69

%

Tier 1 capital to risk-weighted assets



17.75

%



17.42

%



15.69

%

Total capital to risk-weighted assets



18.82

%



18.47

%



16.94

%

 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)


Quarterly Consolidated Statements of Earnings


1Q

2018



4Q

2017



3Q

2017



2Q

2017



1Q

2017


Interest income





















Loans, including fees


$

19,074



$

20,297



$

17,200



$

16,759



$

16,033


Investment securities and other



1,103




1,182




1,146




762




726


Total interest income



20,177




21,479




18,346




17,521




16,759


Interest expense





















Deposits



2,749




2,671




2,710




2,568




2,323


Interest on subordinated debentures and other



913




909




908




907




905


Other borrowings



71




7







12




17


Total interest expense



3,732




3,587




3,618




3,487




3,245


Net interest income before provision for loan losses



16,445




17,892




14,728




14,034




13,514


Provision (recapture) for loan losses



184




2,436




700




(4,188)





Net interest income after provision for loan losses



16,261




15,456




14,028




18,222




13,514


Noninterest income



2,455




3,798




3,796




3,175




2,432


Noninterest expense



8,289




6,884




7,200




6,960




6,578


Earnings before income taxes



10,427




12,370




10,624




14,437




9,368


Income taxes



1,580




7,481




4,013




5,901




3,875


Net income


$

8,847



$

4,889



$

6,611



$

8,536



$

5,493


Net income per common share - basic


$

0.55



$

0.31



$

0.45



$

0.67



$

0.43


Net income per common share - diluted


$

0.52



$

0.29



$

0.42



$

0.62



$

0.40


Cash dividends declared per common share


$

0.08



$

0.08









$

0.30


Cash dividends declared


$

1,275



$

1,270









$

3,849


Yield on average assets, annualized



2.15

%



1.18

%



1.65

%



2.29

%



1.55

%

Yield on average earning assets



5.23

%



5.54

%



4.87

%



5.02

%



5.04

%

Cost of average deposits



0.85

%



0.81

%



0.84

%



0.83

%



0.80

%

Cost of average interest-bearing deposits



1.07

%



1.02

%



1.01

%



0.99

%



0.95

%

Cost of average interest-bearing liabilities



1.36

%



1.30

%



1.29

%



1.28

%



1.24

%

Accretion on loans to average earning assets



0.09

%



0.71

%



0.17

%



0.25

%



0.32

%

Net interest margin



4.26

%



4.62

%



3.91

%



4.02

%



4.06

%

 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)