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Press Release

RBB Bancorp Reports First Quarter Earnings for 2021

April 26, 2021 at 4:05 PM EDT

Conference Call and Webcast Scheduled for Tuesday, April 27, 2021 at 11:00 a.m. Pacific Time/2:00 p.m. Eastern Time

First Quarter 2021 Highlights

  • Reported record net income of $12.5 million, or $ 0.63 diluted earnings per share, increased $1.3 million, or 11.7%, from the prior quarter and increased $5.7 million, or 84.6%, from the first quarter of 2020
  • Non-interest bearing deposits increased by $170.2 million, or 27.6%, from the end of the prior quarter
  • Net interest margin of 3.73% increased by 6 basis points from the prior quarter and increased 36 basis points from the first quarter of 2020
  • Declared quarterly cash dividend of $0.13 per common share

LOS ANGELES--(BUSINESS WIRE)--Apr. 26, 2021-- 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, 2021.

The Company reported record net income of $12.5 million, or $0.63 diluted earnings per share, for the three months ended March 31, 2021, compared to net income of $11.1 million, or $0.56 diluted earnings per share, and $6.7 million, or $0.33 diluted earnings per share, for the three months ended December 31, 2020 and March 31, 2020, respectively.

“Royal Business Bank started 2021 with excellent first quarter results as our differentiated business model benefited from a rapidly improving economy,” said Mr. Alan Thian, Chairman, President and CEO of RBB Bancorp. “We reported record net income, improving margins, stable credit quality and strong growth in noninterest-bearing deposits. We raised $120 million of subordinated debt which dramatically increases our ability to pursue profitable organic and strategic growth opportunities. We believe we are well-positioned to accelerate our profitable growth in 2021 by providing exceptional customer service to the individuals, businesses and communities we serve.”

Key Performance Ratios

Net income of $12.5 million for the first quarter of 2021 produced an annualized return on average assets of 1.47%, an annualized return on average tangible common shareholders' equity of 14.05%, and an annualized return on average shareholders' equity of 11.64%. This compares to an annualized return on average assets of 1.33%, an annualized return on average tangible common shareholders' equity of 12.58%, and an annualized return on average shareholders' equity of 10.38% for the fourth quarter of 2020. The efficiency ratio for the first quarter of 2021 was 44.64%, compared to 43.32% for the prior quarter. The change in the efficiency ratio was primarily due to a seasonal increase in non-interest expense.

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $29.5 million for the first quarter of 2021, compared to $28.9 million for the fourth quarter of 2020. The $608,000 increase was primarily attributable to higher interest income due to a $74.1 million increase in average earning assets and an improvement in the deposit costs related to a $36.9 million increase in average noninterest-bearing deposits, partially offset by a $39.1 million increase in average interest-bearing liabilities. Accretion of purchase discounts from prior acquisitions contributed $480,000 to net interest income in the first quarter of 2021, compared to $275,000 in the fourth quarter of 2020.

Compared to the first quarter of 2020, net interest income, before provision for loan losses, increased $5.9 million from $23.6 million. The increase was primarily attributable to a $388.8 million increase in average earning assets and a $168.1 million increase in average noninterest-bearing deposits, partially offset by a $188.3 million increase in average interest-bearing liabilities. The increases in average earning assets and total deposits were primarily due to increased loan and deposit originations.

Net interest margin was 3.73% for the first quarter of 2021, an increase of 6 basis points from 3.67% in the fourth quarter of 2020. The increase was primarily attributable to a 16 basis point decrease in the cost of total deposits partially offset by an 18 basis point increase in the cost of borrowings (FHLB advances, long-term debt and subordinated debentures) and a 6 basis point decrease in the yield on average earning assets. Loan discount accretion contributed 6 basis points to the net interest margin in the first quarter of 2021, compared to 3 basis points in the fourth quarter of 2020.

Noninterest Income

Noninterest income was $5.9 million for the first quarter of 2021, an increase of $1.4 million from $4.5 million in the fourth quarter of 2020. The increase was driven by an increase in gain on loan sales of $1.4 million as the Company sold $73.5 million more loans in the first quarter than in the prior quarter generally due to selling FNMA loans.

The Company sold $80.3 million in FNMA qualified mortgage loans for a net gain of $2.2 million and sold $49.8 million in non-qualified mortgage loans to private investors for a gain of $1.2 million during the first quarter of 2021. This compared to $24.7 million in FNMA qualified mortgage loans for a net gain of $645,000 and $24.3 million in non-qualified mortgage loans to private investors for a gain of $1.2 million during the fourth quarter of 2020. The Company sold $3.5 million in SBA loans during the first quarter of 2021 for a net gain of $355,000, compared to $11.3 million SBA loans sold for a net gain of $595,000 during the fourth quarter of 2020.

Compared to the first quarter of 2020, noninterest income increased by $1.3 million from $4.6 million. The increase was primarily attributable to an increase of $1.1 million in gain on loan sales and an increase of $225,000 in derivative income.

Noninterest Expense

Noninterest expense for the first quarter of 2021 was $15.8 million, compared to $14.5 million for the fourth quarter of 2020. The $1.3 million increase was primarily attributable to a $1.1 million increase from commission paid, payroll tax on bonuses, a $428,000 temporary increase in data processing expenses, partially offset by $158,000 decrease in occupancy and equipment expenses, and an $111,000 decrease in marketing and business promotion expenses.

Noninterest expense decreased from $16.3 million in the first quarter of 2020. The $471,000 decrease was primarily due to a $361,000 decrease in merger and conversion expenses, a $263,000 decrease in salaries and employee benefits expenses, and a $162,000 decrease in occupancy and equipment expenses. These were partially offset by a $298,000 increase in data processing expense.

Income Taxes

The effective tax rate was 31.13% for the first quarter of 2021, 29.92% for the fourth quarter of 2020, and 32.52% for the first quarter of 2020.

Loan Portfolio

Loans held for investment, net of deferred fees and discounts, totaled $2.7 billion as of March 31, 2021, an increase of $8.4 million from December 31, 2020, and an increase of $315.2 million from March 31, 2020. The increase from the prior quarter was primarily due to an increase in loan originations. Single-family residential mortgages decreased by $83.1 million net of payoffs, paydowns and loan sales. Commercial real estate loans increased by $59.5 million, construction and land development loans increased by $23.0 million, SBA loans increased by $13.5 million, commercial and industrial loans decreased by $4.1 million and other loans decreased by $321,000.

During the first quarter of 2021, single-family residential mortgage production was $114.5 million, payoffs and paydowns were $81.9 million, and single-family residential mortgage loan sales were $130.1 million. During the fourth quarter of 2020, single-family residential mortgage production was $110.3 million, payoffs and paydowns were $74.5 million, and loan sales were $49.0 million.

Mortgage loans held for sale were $37.7 million as of March 31, 2021, a decrease of $12.3 million from $50.0 million at December 31, 2020 and a decrease of $14.4 million from $52.1 million as of March 31, 2020. The Company originated approximately $55.3 million in mortgage loans for sale for the first quarter of 2021, compared with $50.0 million during the prior quarter.

In the first quarter of 2021, SBA loan production was $37.8 million and total SBA loan sales were $3.5 million.

Deposits and Borrowings

Deposits were $2.8 billion at March 31, 2021, an increase of $186.2 million from December 31, 2020, and an increase of $401.0 million from March 31, 2020, excluding brokered deposits. The increase in total deposits from the prior quarter was primarily attributable to organic deposit growth. During the first quarter of 2021, noninterest-bearing deposits increased by $170.2 million, interest-bearing non-maturity deposits increased by $60.4 million, and time deposits decreased by $44.5 million. As of March 31, 2021, time deposits included $17.4 million in brokered CDs, as compared to $17.4 million as of December 31, 2020 and $33.1 million as of March 31, 2020.

On March 31, 2021, the long-term subordinated-debt was reissued, and an additional $68.4 million was raised.

Asset Quality

Nonperforming assets totaled $20.2 million, or 0.55% of total assets at March 31, 2021, compared to $19.8 million, or 0.59%, of total assets at December 31, 2020. Nonperforming assets consist of OREO, loans modified under troubled debt restructurings (“TDR”), non-accrual loans, and loans past due 90 days or more and still accruing interest.

In the first quarter of 2021, there were $42,000 in net charge-offs, down from $305,000 in the prior quarter.

The Company recorded a provision for credit losses of $1.5 million for the first quarter of 2021, a decrease from $3.0 million in the prior quarter, primarily attributable to remaining COVID-19-related economic risk and loan growth.

The allowance for loan losses totaled $30.8 million, or 1.13% of loans held for investment at March 31, 2021, compared with $29.3 million, or 1.08%, of total loans at December 31, 2020.

As of March 31, 2021, borrowers representing 285 loans totaling $42.9 million, or 1.6% of the Company’s total loan portfolio, have funded under the SBA’s Paycheck Protection Program due to the COVID-19 pandemic. Presently none of our SBA customers are on a payment deferral plan due to the COVID-19 pandemic.

The following table provides details regarding the Company's COVID-19 loan deferral activity through April 15, 2021.

 

 

As of June 30, 2020

 

 

As of October 23, 2020

 

 

As of January 15, 2021

 

 

As of April 15, 2021

 

 

 

 

Loans Deferred

 

 

Loans Deferred

 

 

Loans Deferred

 

 

Loans Deferred

 

 

 

 

Number

 

 

Principal Amount
($000)

 

 

Number

 

 

Principal Amount
($000)

 

 

Number

 

 

Principal Amount
($000)

 

 

Number

 

 

Principal Amount
($000)

 

 

General retail (excluding SBA)

 

 

34

 

 

$

94,251

 

 

 

3

 

 

$

26,840

 

 

 

2

 

 

$

3,174

 

 

 

1

 

 

$

438

 

 

Mixed use commercial

 

 

38

 

 

 

58,841

 

 

 

4

 

 

 

10,547

 

 

 

1

 

 

 

7,500

 

 

 

4

 

 

 

2,602

 

 

Hospitality (excluding SBA)

 

 

5

 

 

 

25,343

 

 

 

2

 

 

 

12,929

 

 

 

1

 

 

 

6,419

 

 

 

1

 

 

 

6,394

 

(1)

Restaurants (excluding SBA)

 

 

11

 

 

 

4,186

 

 

 

1

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily

 

 

6

 

 

 

9,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

688

 

 

Commercial, office and other

 

 

 

 

 

 

 

 

5

 

 

 

19,881

 

 

 

5

 

 

 

18,742

 

 

 

 

 

 

 

 

SFR mortgage loans - Western region

 

 

183

 

 

 

118,484

 

 

 

38

 

 

 

29,604

 

 

 

14

 

 

 

8,770

 

 

 

9

 

 

 

5,135

 

 

SFR mortgage loans - Eastern region

 

 

203

 

 

 

85,935

 

 

 

10

 

 

 

4,106

 

 

 

11

 

 

 

4,925

 

 

 

5

 

 

 

2,467

 

 

SFR mortgage loans - Chicago metropolitan

 

 

84

 

 

 

14,824

 

 

 

4

 

 

 

719

 

 

 

1

 

 

 

249

 

 

 

 

 

 

 

 

Total

 

 

564

 

 

$

410,950

 

 

 

67

 

 

$

104,638

 

 

 

35

 

 

$

49,779

 

 

 

21

 

 

$

17,724

 

 

The Company does not have any shared national credits or loans, backed by airlines or cruise lines, on deferral as of March 31, 2021.

(1) Principal deferred only.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of March 31, 2021, the company had total assets of $3.7 billion. Its wholly-owned subsidiary, the Bank is a full service commercial bank, which provides business banking services to the Chinese-American communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, and in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, automobile lending, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, two branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey and two branches in Chicago, Illinois. The Company's administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its finance and operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time tomorrow, April 27, 2021, to discuss the Company’s first quarter 2021 financial results.

To listen to the conference call, please dial 1-833-519-1355 (domestic) or 1-918-922-6505 (international), passcode 7982973. A replay of the call will be made available at 1-800-585-8367 or 1-404-537-3406, passcode 7982973, approximately one hour after the conclusion of the call and will remain available through May 4, 2021.

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, 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; expectations regarding the impact of the COVID-19 pandemic; the costs or effects of acquisitions or dispositions we may make, including our recent acquisition of PGB Holdings, Inc. and its wholly-owned subsidiary, Pacific Global Bank, and our recently completed acquisition of First American International Corp., whether we are able to obtain any required governmental or shareholder 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, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”, commonly referenced as the Current Expected Credit Loss (“CECL”) model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption; 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 DFPI (formerly 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-A for the year ended December 31, 2020, 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, except for December 31, 2020)

(Dollars in thousands)

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

362,930

 

 

$

137,654

 

 

$

121,630

 

 

$

94,844

 

 

$

285,667

 

Federal funds sold and other cash equivalents

 

 

57,000

 

 

 

57,000

 

 

 

57,000

 

 

 

57,000

 

 

 

75,300

 

Total cash and cash equivalents

 

 

419,930

 

 

 

194,654

 

 

 

178,630

 

 

 

151,844

 

 

 

360,967

 

Interest-bearing deposits in other financial institutions

 

 

600

 

 

 

600

 

 

 

600

 

 

 

600

 

 

 

600

 

Investment securities available for sale

 

 

281,582

 

 

 

210,867

 

 

 

214,662

 

 

 

185,756

 

 

 

126,294

 

Investment securities held to maturity

 

 

6,668

 

 

 

7,174

 

 

 

7,569

 

 

 

7,615

 

 

 

7,825

 

Mortgage loans held for sale

 

 

37,675

 

 

 

49,963

 

 

 

23,886

 

 

 

15,479

 

 

 

52,096

 

Loans held for investment

 

 

2,715,205

 

 

 

2,706,766

 

 

 

2,755,153

 

 

 

2,594,620

 

 

 

2,399,982

 

Allowance for loan losses

 

 

(30,795

)

 

 

(29,337

)

 

 

(26,634

)

 

 

(22,820

)

 

 

(20,130

)

Net loans held for investment

 

 

2,684,410

 

 

 

2,677,429

 

 

 

2,728,519

 

 

 

2,571,800

 

 

 

2,379,852

 

Premises and equipment, net

 

 

27,093

 

 

 

27,103

 

 

 

24,237

 

 

 

23,965

 

 

 

24,472

 

Federal Home Loan Bank (FHLB) stock

 

 

15,641

 

 

 

15,641

 

 

 

15,641

 

 

 

15,641

 

 

 

15,630

 

Net deferred tax assets

 

 

3,427

 

 

 

2,547

 

 

 

1,080

 

 

 

 

 

 

 

Cash surrender value of life insurance

 

 

35,308

 

 

 

35,121

 

 

 

34,930

 

 

 

34,736

 

 

 

34,544

 

Goodwill

 

 

69,243

 

 

 

69,243

 

 

 

69,243

 

 

 

69,209

 

 

 

69,790

 

Servicing assets

 

 

13,264

 

 

 

13,965

 

 

 

14,724

 

 

 

15,595

 

 

 

16,826

 

Core deposit intangibles

 

 

4,895

 

 

 

5,196

 

 

 

5,519

 

 

 

5,876

 

 

 

6,234

 

Right-of-use assets- operating leases

 

 

25,500

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest and other assets

 

 

39,063

 

 

 

40,569

 

 

 

40,336

 

 

 

38,065

 

 

 

33,523

 

Total assets

 

$

3,664,299

 

 

$

3,350,072

 

 

$

3,359,576

 

 

$

3,136,181

 

 

$

3,128,653

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

787,439

 

 

$

617,206

 

 

$

642,332

 

 

$

574,553

 

 

$

504,324

 

Savings, NOW and money market accounts

 

 

791,486

 

 

 

731,084

 

 

 

654,378

 

 

 

601,941

 

 

 

571,870

 

Time deposits

 

 

1,242,368

 

 

 

1,286,838

 

 

 

1,315,038

 

 

 

1,260,026

 

 

 

1,359,787

 

Total deposits

 

 

2,821,293

 

 

 

2,635,128

 

 

 

2,611,748

 

 

 

2,436,520

 

 

 

2,435,981

 

Reserve for unfunded commitments

 

 

1,320

 

 

 

1,383

 

 

 

1,129

 

 

 

1,030

 

 

 

979

 

Net deferred tax liabilities

 

 

 

 

 

 

 

 

 

 

 

656

 

 

 

312

 

FHLB advances

 

 

150,000

 

 

 

150,000

 

 

 

190,000

 

 

 

150,000

 

 

 

150,000

 

Long-term debt, net of debt issuance costs

 

 

172,581

 

 

 

104,391

 

 

 

104,305

 

 

 

104,220

 

 

 

104,135

 

Subordinated debentures

 

 

14,338

 

 

 

14,283

 

 

 

14,229

 

 

 

14,174

 

 

 

14,120

 

Lease liabilities - operating leases

 

 

26,199

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

42,900

 

 

 

16,399

 

 

 

16,749

 

 

 

15,556

 

 

 

15,133

 

Total liabilities

 

 

3,228,631

 

 

 

2,921,584

 

 

 

2,938,160

 

 

 

2,722,156

 

 

 

2,720,660

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder's equity

 

 

435,746

 

 

 

427,287

 

 

 

420,329

 

 

 

412,827

 

 

 

407,332

 

Non-controlling interest

 

 

72

 

 

 

72

 

 

 

72

 

 

 

72

 

 

 

72

 

Accumulated other comprehensive (loss) income - Net of tax

 

 

(150

)

 

 

1,129

 

 

 

1,015

 

 

 

1,126

 

 

 

589

 

Total shareholders' equity

 

 

435,668

 

 

 

428,488

 

 

 

421,416

 

 

 

414,025

 

 

 

407,993

 

Total liabilities and shareholders’ equity

 

$

3,664,299

 

 

$

3,350,072

 

 

$

3,359,576

 

 

$

3,136,181

 

 

$

3,128,653

 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts) 

 

 

 

For the three months ended

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

March 31, 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

34,516

 

 

$

34,832

 

 

$

32,276

 

Interest on interest-bearing deposits

 

 

48

 

 

 

55

 

 

 

451

 

Interest on investment securities

 

 

627

 

 

 

639

 

 

 

821

 

Dividend income on FHLB stock

 

 

192

 

 

 

193

 

 

 

2

 

Interest on federal funds sold and other

 

 

157

 

 

 

145

 

 

 

478

 

Total interest income

 

 

35,540

 

 

 

35,864

 

 

 

34,028

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

698

 

 

 

736

 

 

 

1,243

 

Interest on time deposits

 

 

2,964

 

 

 

3,900

 

 

 

7,086

 

Interest on subordinated debentures and long term debt

 

 

1,958

 

 

 

1,901

 

 

 

1,956

 

Interest on other borrowed funds

 

 

435

 

 

 

450

 

 

 

150

 

Total interest expense

 

 

6,055

 

 

 

6,987

 

 

 

10,435

 

Net interest income before provision for loan losses

 

 

29,485

 

 

 

28,877

 

 

 

23,593

 

Provision for loan losses

 

 

1,500

 

 

 

3,008

 

 

 

1,945

 

Net interest income after provision for loan losses

 

 

27,985

 

 

 

25,869

 

 

 

21,648

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges, fees and other

 

 

1,410

 

 

 

1,565

 

 

 

1,079

 

Gain on sale of loans

 

 

3,841

 

 

 

2,445

 

 

 

2,711

 

Loan servicing fees, net of amortization

 

 

246

 

 

 

206

 

 

 

592

 

Recoveries on loans acquired in business combinations

 

 

5

 

 

 

5

 

 

 

42

 

Unrealized (loss) on equity investments

 

 

(20

)

 

 

 

 

 

 

Gain on derivatives

 

 

225

 

 

 

78

 

 

 

 

Increase in cash surrender value of life insurance

 

 

187

 

 

 

191

 

 

 

191

 

Total noninterest income

 

 

5,894

 

 

 

4,490

 

 

 

4,615

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,242

 

 

 

8,105

 

 

 

9,505

 

Occupancy and equipment expenses

 

 

2,242

 

 

 

2,400

 

 

 

2,404

 

Data processing

 

 

1,440

 

 

 

1,012

 

 

 

1,142

 

Legal and professional

 

 

805

 

 

 

794

 

 

 

604

 

Office expenses

 

 

255

 

 

 

295

 

 

 

323

 

Marketing and business promotion

 

 

184

 

 

 

295

 

 

 

214

 

Insurance and regulatory assessments

 

 

348

 

 

 

210

 

 

 

177

 

Core deposit premium

 

 

301

 

 

 

324

 

 

 

357

 

OREO expenses

 

 

5

 

 

 

4

 

 

 

14

 

Merger and conversion expenses

 

 

42

 

 

 

5

 

 

 

403

 

Other expenses

 

 

928

 

 

 

1,009

 

 

 

1,120

 

Total noninterest expense

 

 

15,792

 

 

 

14,453

 

 

 

16,263

 

Income before income taxes

 

 

18,087

 

 

 

15,906

 

 

 

10,000

 

Income tax expense

 

 

5,631

 

 

 

4,759

 

 

 

3,252

 

Net income

 

$

12,456

 

 

$

11,147

 

 

$

6,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.64

 

 

$

0.57

 

 

$

0.34

 

Diluted

 

$

0.63

 

 

$

0.56

 

 

$

0.33

 

Cash Dividends declared per common share

 

$

0.12

 

 

$

0.09

 

 

$

0.12

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,475,814

 

 

 

19,655,621

 

 

 

19,971,856

 

Diluted

 

 

19,812,841

 

 

 

19,812,401

 

 

 

20,266,328

 

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, 2021

 

 

December 31, 2020

 

 

March 31, 2020

 

 

 

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)

 

$

215,230

 

 

$

397

 

 

 

0.75

%

 

$

188,430

 

 

$

393

 

 

 

0.83

%

 

$

249,568

 

 

$

931

 

 

 

1.50

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

239,768

 

 

 

571

 

 

 

0.97

%

 

 

222,762

 

 

 

579

 

 

 

1.03

%

 

 

138,574

 

 

 

755

 

 

 

2.19

%

Held to maturity (2)

 

 

7,000

 

 

 

64

 

 

 

3.71

%

 

 

7,383

 

 

 

68

 

 

 

3.66

%

 

 

8,016

 

 

 

74

 

 

 

3.71

%

Mortgage loans held for sale

 

 

54,021

 

 

 

411

 

 

 

3.09

%

 

 

41,265

 

 

 

325

 

 

 

3.13

%

 

 

78,063

 

 

 

981

 

 

 

5.05

%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,307,431

 

 

 

29,521

 

 

 

5.19

%

 

 

2,282,937

 

 

 

29,705

 

 

 

5.18

%

 

 

2,007,286

 

 

 

26,428

 

 

 

5.30

%

Commercial

 

 

384,442

 

 

 

4,584

 

 

 

4.84

%

 

 

390,980

 

 

 

4,802

 

 

 

4.89

%

 

 

337,548

 

 

 

4,867

 

 

 

5.80

%

Total loans

 

 

2,691,873

 

 

 

34,105

 

 

 

5.14

%

 

 

2,673,917

 

 

 

34,507

 

 

 

5.13

%

 

 

2,344,834

 

 

 

31,295

 

 

 

5.37

%

Total earning assets

 

 

3,207,892

 

 

$

35,548

 

 

 

4.49

%

 

 

3,133,757

 

 

$

35,872

 

 

 

4.55

%

 

 

2,819,055

 

 

$

34,036

 

 

 

4.86

%

Noninterest-earning assets

 

 

228,002

 

 

 

 

 

 

 

 

 

 

 

196,071

 

 

 

 

 

 

 

 

 

 

 

212,568

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,435,894

 

 

 

 

 

 

 

 

 

 

$

3,329,828

 

 

 

 

 

 

 

 

 

 

$

3,031,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

64,592

 

 

$

44

 

 

 

0.28

%

 

$

62,232

 

 

$

48

 

 

 

0.31

%

 

$

43,838

 

 

$

42

 

 

 

0.39

%

Money Market

 

 

579,347

 

 

 

623

 

 

 

0.44

%

 

 

504,463

 

 

 

656

 

 

 

0.52

%

 

 

432,005

 

 

 

1,146

 

 

 

1.07

%

Saving deposits

 

 

131,151

 

 

 

31

 

 

 

0.10

%

 

 

128,727

 

 

 

32

 

 

 

0.10

%

 

 

114,951

 

 

 

55

 

 

 

0.19

%

Time deposits, less than $250,000

 

 

663,029

 

 

 

1,496

 

 

 

0.92

%

 

 

698,415

 

 

 

2,059

 

 

 

1.17

%

 

 

737,755

 

 

 

3,376

 

 

 

1.84

%

Time deposits, $250,000 and over

 

 

593,981

 

 

 

1,468

 

 

 

1.00

%

 

 

594,655

 

 

 

1,841

 

 

 

1.23

%

 

 

620,884

 

 

 

3,710

 

 

 

2.40

%

Total interest-bearing deposits

 

 

2,032,100

 

 

 

3,662

 

 

 

0.73

%

 

 

1,988,492

 

 

 

4,636

 

 

 

0.93

%

 

 

1,949,433

 

 

 

8,329

 

 

 

1.72

%

FHLB advances

 

 

150,001

 

 

 

435

 

 

 

1.18

%

 

 

161,957

 

 

 

450

 

 

 

1.11

%

 

 

51,978

 

 

 

150

 

 

 

1.18

%

Long-term debt

 

 

111,739

 

 

 

1,808

 

 

 

6.56

%

 

 

104,335

 

 

 

1,748

 

 

 

6.67

%

 

 

104,083

 

 

 

1,748

 

 

 

6.75

%

Subordinated debentures

 

 

14,302

 

 

 

150

 

 

 

4.25

%

 

 

14,248

 

 

 

153

 

 

 

4.27

%

 

 

14,327

 

 

 

208

 

 

 

5.84

%

Total interest-bearing liabilities

 

 

2,308,142

 

 

 

6,055

 

 

 

1.06

%

 

 

2,269,032

 

 

 

6,987

 

 

 

1.23

%

 

 

2,119,821

 

 

 

10,435

 

 

 

1.98

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

653,674

 

 

 

 

 

 

 

 

 

 

 

616,803

 

 

 

 

 

 

 

 

 

 

 

485,555

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

40,118

 

 

 

 

 

 

 

 

 

 

 

16,830

 

 

 

 

 

 

 

 

 

 

 

15,056

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

693,792

 

 

 

 

 

 

 

 

 

 

 

633,633

 

 

 

 

 

 

 

 

 

 

 

500,611

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

433,960

 

 

 

 

 

 

 

 

 

 

 

427,163

 

 

 

 

 

 

 

 

 

 

 

411,191

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

3,435,894

 

 

 

 

 

 

 

 

 

 

$

3,329,828

 

 

 

 

 

 

 

 

 

 

$

3,031,623

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

29,493

 

 

 

3.43

%

 

 

 

 

 

$

28,885

 

 

 

3.32

%

 

 

 

 

 

$

23,601

 

 

 

2.88

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.73

%

 

 

 

 

 

 

 

 

 

 

3.67

%

 

 

 

 

 

 

 

 

 

 

3.37

%

(1)

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

(2)

Interest income and average rates for tax-exempt loans and securities are presented on a tax-equivalent basis.

(3)

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

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the three months ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2021

 

 

2020

 

 

2020

 

Per share data (common stock)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.64

 

 

$

0.57

 

 

$

0.34

 

Diluted

 

$

0.63

 

 

$

0.56

 

 

$

0.33

 

Dividends declared

 

$

0.12

 

 

$

0.09

 

 

$

0.12

 

Book value

 

$

22.31

 

 

$

21.90

 

 

$

20.67

 

Tangible book value

 

$

18.51

 

 

$

18.10

 

 

$

16.82

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,475,814

 

 

 

19,655,621

 

 

 

19,971,856

 

Diluted

 

 

19,812,841

 

 

 

19,812,401

 

 

 

20,266,328

 

Shares outstanding at period end

 

 

19,528,249

 

 

 

19,565,921

 

 

 

19,739,280

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

 

1.47

%

 

 

1.33

%

 

 

0.90

%

Return on average shareholders' equity, annualized

 

 

11.64

%

 

 

10.38

%

 

 

6.60

%

Return on average tangible common equity, annualized

 

 

14.05

%

 

 

12.58

%

 

 

8.13

%

Noninterest income to average assets, annualized

 

 

0.70

%

 

 

0.54

%

 

 

0.61

%

Noninterest expense to average assets, annualized

 

 

1.86

%

 

 

1.73

%

 

 

2.16

%

Yield on average earning assets

 

 

4.49

%

 

 

4.55

%

 

 

4.86

%

Cost of average total deposits

 

 

0.55

%

 

 

0.71

%

 

 

1.38

%

Cost of average interest-bearing deposits

 

 

0.73

%

 

 

0.93

%

 

 

1.72

%

Cost of average interest-bearing liabilities

 

 

1.06

%

 

 

1.23

%

 

 

1.98

%

Accretion on loans to average earning assets

 

 

0.06

%

 

 

0.03

%

 

 

0.10

%

Net interest spread

 

 

3.43

%

 

 

3.32

%

 

 

2.88

%

Net interest margin

 

 

3.73

%

 

 

3.67

%

 

 

3.37

%

Efficiency ratio

 

 

44.64

%

 

 

43.32

%

 

 

57.65

%

Common stock dividend payout ratio

 

 

18.75

%

 

 

15.79

%

 

 

35.29

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

As of

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2021

 

 

2020

 

 

2020

 

Loan to deposit ratio

 

 

96.24

%

 

 

102.72

%

 

 

98.52

%

Core deposits / total deposits

 

 

78.97

%

 

 

77.31

%

 

 

74.11

%

Net non-core funding dependence ratio

 

 

4.27

%

 

 

9.11

%

 

 

6.62

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days past due

 

$

10,653

 

 

$

8,939

 

 

$

22,488

 

Loans 30-89 days past due to total loans

 

 

0.39%

 

 

 

0.33%

 

 

 

0.94%

 

Loans 90 days past due and still accruing

 

$

 

 

$

 

 

$

225

 

Nonperforming loans

 

$

19,911

 

 

$

19,554

 

 

$

20,499

 

Nonperforming loans to total loans

 

 

0.73

%

 

 

0.72

%

 

 

0.85

%

Nonperforming assets

 

$

20,204

 

 

$

19,847

 

 

$

20,792

 

Nonperforming assets to total assets

 

 

0.55

%

 

 

0.59

%

 

 

0.66

%

Allowance for loan losses to total loans

 

 

1.13

%

 

 

1.08

%

 

 

0.84

%

Allowance for loan losses to nonperforming loans

 

 

154.66

%

 

 

150.03

%

 

 

98.20

%

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

 

 

0.01

%

 

 

0.05

%

 

 

0.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory and other capital ratios—Company

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

10.07

%

 

 

10.81

%

 

 

10.87

%

Tier 1 leverage ratio

 

 

11.30

%

 

 

11.32

%

 

 

11.74

%

Tier 1 common capital to risk-weighted assets

 

 

14.53

%

 

 

14.62

%

 

 

15.45

%

Tier 1 capital to risk-weighted assets

 

 

15.11

%

 

 

15.21

%

 

 

16.10

%

Total capital to risk-weighted assets

 

 

23.27

%

 

 

20.77

%

 

 

21.91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios—Bank only

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

13.44

%

 

 

14.11

%

 

 

14.44

%

Tier 1 common capital to risk-weighted assets

 

 

17.96

%

 

 

18.94

%

 

 

19.79

%

Tier 1 capital to risk-weighted assets

 

 

17.96

%

 

 

18.94

%

 

 

19.79

%

Total capital to risk-weighted assets

 

 

19.21

%

 

 

20.19

%

 

 

20.77

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

1st Quarter

 

 

4th Quarter

 

 

3rd Quarter

 

 

2nd Quarter

 

 

1st Quarter

 

Quarterly Consolidated Statements of Earnings

 

2021

 

 

2020

 

 

2020

 

 

2020

 

 

2020

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

34,516

 

 

$

34,832

 

 

$

34,153

 

 

$

32,633

 

 

$

32,276

 

Investment securities and other

 

 

1,024

 

 

 

1,032

 

 

 

972

 

 

 

1,470

 

 

 

1,752

 

Total interest income

 

 

35,540

 

 

 

35,864

 

 

 

35,125

 

 

 

34,103

 

 

 

34,028

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

3,662

 

 

 

4,636

 

 

 

5,525

 

 

 

6,715

 

 

 

8,329

 

Interest on subordinated debentures and other

 

 

1,958

 

 

 

1,901

 

 

 

1,905

 

 

 

1,915

 

 

 

1,956

 

Other borrowings

 

 

435

 

 

 

450

 

 

 

444

 

 

 

439

 

 

 

150

 

Total interest expense

 

 

6,055

 

 

 

6,987

 

 

 

7,874

 

 

 

9,069

 

 

 

10,435

 

Net interest income before provision for loan losses

 

 

29,485

 

 

 

28,877

 

 

 

27,251

 

 

 

25,034

 

 

 

23,593

 

Provision for loan losses

 

 

1,500

 

 

 

3,008

 

 

 

3,861

 

 

 

3,009

 

 

 

1,945

 

Net interest income after provision for loan losses

 

 

27,985

 

 

 

25,869

 

 

 

23,390

 

 

 

22,025

 

 

 

21,648

 

Noninterest income

 

 

5,894

 

 

 

4,490

 

 

 

2,727

 

 

 

2,208

 

 

 

4,615

 

Noninterest expense

 

 

15,792

 

 

 

14,453

 

 

 

13,978

 

 

 

14,819

 

 

 

16,263

 

Earnings before income taxes

 

 

18,087

 

 

 

15,906

 

 

 

12,139

 

 

 

9,414

 

 

 

10,000

 

Income taxes

 

 

5,631

 

 

 

4,759

 

 

 

3,619

 

 

 

2,901

 

 

 

3,252

 

Net income

 

$

12,456

 

 

$

11,147

 

 

$

8,520

 

 

$

6,513

 

 

$

6,748

 

Net income per common share - basic

 

$

0.64

 

 

$

0.57

 

 

$

0.43

 

 

$

0.33

 

 

$

0.34

 

Net income per common share - diluted

 

$

0.63

 

 

$

0.56

 

 

$

0.43

 

 

$

0.33

 

 

$

0.33

 

Cash dividends declared per common share

 

$

0.12

 

 

$

0.09

 

 

$

0.06

 

 

$

0.06

 

 

$

0.12

 

Cash dividends declared on common shares

 

$

2,347

 

 

$

1,777

 

 

$

1,184

 

 

$

1,184

 

 

$

2,407

 

Yield on average assets, annualized

 

 

1.47

%

 

 

1.33

%

 

 

1.05

%

 

 

0.83

%

 

 

0.90

%

Yield on average earning assets

 

 

4.49

%

 

 

4.55

%

 

 

4.63

%

 

 

4.60

%

 

 

4.86

%

Cost of average deposits

 

 

0.55

%

 

 

0.71

%

 

 

0.87

%

 

 

1.09

%

 

 

1.38

%

Cost of average interest-bearing deposits

 

 

0.73

%

 

 

0.93

%

 

 

1.14

%

 

 

1.42

%

 

 

1.72

%

Cost of average interest-bearing liabilities

 

 

1.06

%

 

 

1.23

%

 

 

1.43

%

 

 

1.68

%

 

 

1.98

%

Accretion on loans to average earning assets

 

 

0.06

%

 

 

0.03

%

 

 

0.08

%

 

 

0.16

%

 

 

0.10

%

Net interest margin

 

 

3.73

%

 

 

3.67

%

 

 

3.59

%

 

 

3.42

%

 

 

3.37

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited, except for December 31, 2020)

(Dollars in thousands, except per share amounts)

 

Loan Portfolio Detail

 

As of
March 31, 2021

 

 

As of
December 31, 2020

 

 

As of
September 30, 2020

 

 

As of
June 30, 2020

 

 

As of
March 31, 2020

 

(dollars in thousands)

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

286,016

 

 

 

10.5

%

 

$

290,139

 

 

 

10.7

%

 

$

317,891

 

 

 

11.5

%

 

$

267,481

 

 

 

10.3

%

 

$

275,602

 

 

 

11.5

%

SBA

 

 

111,330

 

 

 

4.1

%

 

 

97,821

 

 

 

3.6

%

 

 

111,193

 

 

 

4.0

%

 

 

104,069

 

 

 

4.0

%

 

 

77,566

 

 

 

3.2

%

Construction and land development

 

 

209,727

 

 

 

7.7

%

 

 

186,723

 

 

 

6.9

%

 

 

183,569

 

 

 

6.7

%

 

 

145,754

 

 

 

5.6

%

 

 

120,115

 

 

 

5.0

%

Commercial real estate (1)

 

 

1,063,104

 

 

 

39.2

%

 

 

1,003,637

 

 

 

37.1

%

 

 

975,187

 

 

 

35.4

%

 

 

900,302

 

 

 

34.7

%

 

 

854,580

 

 

 

35.6

%

Single-family residential mortgages

 

 

1,041,260

 

 

 

38.3

%

 

 

1,124,357

 

 

 

41.5

%

 

 

1,163,982

 

 

 

42.2

%

 

 

1,174,927

 

 

 

45.3

%

 

 

1,070,649

 

 

 

44.6

%

Other loans

 

 

3,768

 

 

 

0.2

%

 

 

4,089

 

 

 

0.2

%

 

 

3,331

 

 

 

0.2

%

 

 

2,087

 

 

 

0.1

%

 

 

1,470

 

 

 

0.1

%

Total loans (2)

 

$

2,715,205

 

 

 

100.0

%

 

$

2,706,766

 

 

 

100.0

%

 

$

2,755,153

 

 

 

100.0

%

 

$

2,594,620

 

 

 

100.0

%

 

$

2,399,982

 

 

 

100.0

%

Allowance for loan losses

 

 

(30,795

)

 

 

 

 

 

 

(29,337

)

 

 

 

 

 

 

(26,634

)

 

 

 

 

 

 

(22,820

)

 

 

 

 

 

 

(20,130

)

 

 

 

 

Total loans, net

 

$

2,684,410

 

 

 

 

 

 

$

2,677,429

 

 

 

 

 

 

$

2,728,519

 

 

 

 

 

 

$

2,571,800

 

 

 

 

 

 

$

2,379,852

 

 

 

 

 

(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.

 

Three Months Ended

 

Change in Allowance for Loan Losses

 

March 31,

 

(dollars in thousands)

 

2021

 

 

2020

 

Beginning balance

 

$

29,337

 

 

$

18,816

 

Additions to the allowance charged to expense

 

 

1,500

 

 

 

1,945

 

Net charge-offs on loans

 

 

(42

)

 

 

(631

)

Ending balance

 

$

30,795

 

 

$

20,130

 

Tangible Book Value Reconciliations (non-GAAP)

The tangible book value per share is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s 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 March 31, 2021 and 2020 and December 31, 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

March 31, 2021

 

 

December 31, 2020

 

 

March 31, 2020

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

435,668

 

 

$

428,488

 

 

$

407,993

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,243

)

 

 

(69,243

)

 

 

(69,790

)

Core deposit intangible

 

 

(4,895

)

 

 

(5,196

)

 

 

(6,234

)

Tangible common equity

 

$

361,530

 

 

$

354,049

 

 

$

331,969

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

Total assets-GAAP

 

$

3,664,299

 

 

$

3,350,072

 

 

$

3,128,653

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,243

)

 

 

(69,243

)

 

 

(69,790

)

Core deposit intangible

 

 

(4,895

)

 

 

(5,196

)

 

 

(6,234

)

Tangible assets

 

$

3,590,161

 

 

$

3,275,633

 

 

$

3,052,629

 

Common shares outstanding

 

$

19,528,249

 

 

 

19,565,921

 

 

 

19,739,280

 

Tangible common equity to tangible assets ratio

 

 

10.07

%

 

 

10.81

%

 

 

10.87

%

Book value per share

 

$

22.31

 

 

$

21.90

 

 

$

20.67

 

Tangible book value per share

 

$

18.51

 

 

$

18.10

 

 

$

16.82

 

 

Yee Phong (Alan) Thian
Chairman, President and CEO
(626) 307-7559
David Morris
Executive Vice President and CFO
(714) 670-2488

Source: RBB Bancorp