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Press Release

RBB Bancorp Reports Record Fourth Quarter and Full Year Earnings for 2021

January 24, 2022 at 4:37 PM EST

Conference Call and Webcast Scheduled for Tuesday, January 25, 2022 at 11:00 a.m. Pacific Time/2:00 p.m. Eastern Time

Fourth Quarter 2021 Highlights

  • Record net income of $15.7 million, or $0.79 diluted earnings per share, increased $342,000, or 2.2%, from the prior quarter and increased $4.6 million, or 40.9%, from the fourth quarter of 2020
  • Loans grew by $81.8 million, or 11.4% annualized, from the end of the prior quarter
  • Announced the entry into the San Francisco Bay area with an agreement to acquire Gateway Bank, F.S.B. and completed the previously announced purchase acquisition of the Bank of the Orients Honolulu, Hawaii branch

LOS ANGELES--(BUSINESS WIRE)--Jan. 24, 2022-- 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 December 31, 2021.

The Company reported record net income of $15.7 million, or $0.79 diluted earnings per share, for the three months ended December 31, 2021, compared to net income of $15.4 million, or $0.77 diluted earnings per share, and $11.1 million, or $0.56 diluted earnings per share, for the three months ended September 30, 2021 and December 31, 2020, respectively.

“Royal Business Bank’s excellent fourth quarter results contributed to a record year of growth and performance in 2021,” said Alan Thian, President and CEO of RBB Bancorp. “Our strategy of expansion has proven to be an effective driver of shareholder value by enhancing earnings, accelerating loan growth, and improving our deposit franchise. Our recent expansion into the vibrant Hawaiian market and our announced acquisition of Gateway Bank in the San Francisco Bay area will provide us with additional opportunities to bring our relationship-banking model to new markets.”

"2021 was a tremendous year for the Bank," said Dr. James Kao, Chairman of RBB Bancorp. “Not only did the Bank achieve record results and growth, but it was also recognized multiple times for the work it does to serve the financial needs of the communities in which it operates. Two members of the RBB team, Alan Thian and Simon Pang, were appointed to national commissions to advise on community development and the Bank was the awarded a CDFI grant from the US Treasury to support distressed and underserved communities.”

Key Performance Ratios

Net income of $15.7 million for the fourth quarter of 2021 produced an annualized return on average assets ("ROA") of 1.52%, an annualized return on average tangible common shareholders' equity ("ROTCE") of 15.98%, and an annualized return on average shareholders' equity ("ROE") of 13.45%. This compares to an annualized return on average assets of 1.54%, an annualized return on average tangible common shareholders' equity of 16.17%, and an annualized return on average shareholders' equity of 13.52% for the third quarter of 2021. The efficiency ratio for the fourth quarter of 2021 was 36.56%, compared to 38.87% for the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $33.2 million for the fourth quarter of 2021, compared to $31.6 million for the third quarter of 2021. The $1.6 million increase was primarily attributable to higher interest income due to a $135.9 million increase in average earning assets and a $51.1 million decrease in average interest-bearing liabilities. Accretion of purchase discounts from prior acquisitions contributed $192,000 to net interest income in the fourth quarter of 2021, compared to $289,000 in the third quarter of 2021.

Compared to the fourth quarter of 2020, net interest income, before provision for loan losses, increased $4.3 million from $28.9 million. The increase was primarily attributable to a $713.3 million increase in average earning assets, partially offset by a $137.3 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 3.43% for the fourth quarter of 2021, an increase of 5 basis points from 3.38% in the third quarter of 2021. Loan discount accretion contributed 2 basis points to the net interest margin in the fourth quarter of 2021, compared to 3 basis points in the third quarter of 2021.

Noninterest Income

Noninterest income was $3.2 million for the fourth quarter of 2021, a decrease of $2.4 million from $5.5 million in the third quarter of 2021. The decrease was primarily driven by a one-time $1.8 million CDFI grant received during the third quarter and a $455,000 decrease in gain on derivatives, partially offset by a $196,000 increase in loan servicing fees during the quarter.

The Company sold $37.7 million in FNMA qualified mortgage loans for a net gain of $1.4 million and sold no non-qualified mortgage loans during the fourth quarter of 2021. This compared to $36.6 million in FNMA qualified mortgage loans sold for a net gain of $1.2 million and no non-qualified mortgage loans during the third quarter of 2021. The Company sold $5.5 million in SBA loans during the fourth quarter of 2021 for a net gain of $436,000, compared to $5.9 million SBA loans sold for a net gain of $553,000 during the third quarter of 2021.

Compared to the fourth quarter of 2020, noninterest income decreased by $1.3 million from $4.5 million. The decrease was primarily attributable to a decrease of $657,000 in gain on sale of loans and a decrease of $378,000 in unrealized gain (loss) on equity investment.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $13.3 million, compared to $14.4 million for the third quarter of 2021. The $1.1 million decrease was primarily attributable to a $2.0 million decrease in salaries and benefit expenses, partially offset by $940,000 increase in legal and professional expense. The fourth quarter increase in legal and professional expenses were due, in part, to expenses related to the acquisition of the branch in Honolulu, Hawaii and the announced acquisition of Gateway Bank.

Noninterest expense decreased from $14.5 million in the fourth quarter of 2020. The $1.2 million decrease was primarily due to a $1.3 million decrease in salaries and benefits expenses, $275,000 decrease in occupancy and equipment expenses and a $174,000 decrease in data processing expenses, partially offset by an $892,000 increase in legal and professional expenses.

Income Taxes

The effective tax rate was 30.0% for the fourth quarter of 2021, 28.5% for the third quarter of 2021, and 29.9% for the fourth quarter of 2020. The Company recognized a tax expense (benefit) from stock option exercises of ($215,000), ($534,000) and zero for the fourth quarter of 2021, the third quarter of 2021, and the fourth quarter of 2020, respectively.

Loan Portfolio

Loans held for investment, net of deferred fees and discounts, totaled $2.93 billion as of December 31, 2021, an increase of $91.0 million from September 30, 2021, and an increase of $224.6 million from December 31, 2020. The increase from the prior quarter was primarily due to a $42.4 million increase in commercial real estate loans, $31.4 million increase in construction & land development loans and a $29.8 million increase in single-family residential mortgages. The increase from December 31, 2020 was primarily due to a $244.4 million increase in commercial real estate loans, $116.4 million increase in construction & land development loans, partially offset by a $119.8 million decrease in single-family residential mortgages.

During the fourth quarter of 2021, single-family residential mortgage production was $137.7 million while payoffs and paydowns were $79.5 million. During the third quarter of 2021, single-family residential mortgage production was $112.0 million while payoffs and paydowns were $79.0 million.

Mortgage loans held for sale were $6.0 million as of December 31, 2021, a decrease of $9.2 million from $15.2 million at September 30, 2021 and a decrease of $44.0 million from $50.0 million as of December 31, 2020. The Company originated approximately $18.2 million in FNMA mortgage loans for sale for the fourth quarter of 2021, compared with $12.2 million during the prior quarter.

In the fourth quarter of 2021, SBA loan production was $4.6 million and total SBA loan sales were $5.5 million.

Deposits

Deposits were $3.4 billion at December 31, 2021, and compared to September 30, 2021, there was an increase of $417.7 million from September 30, 2021, and an increase of $750.4 million from December 31, 2020, including brokered deposits. During the fourth quarter of 2021, noninterest-bearing deposits increased by $466.7 million, interest-bearing non-maturity deposits decreased by $3.9 million, and time deposits decreased by $45.1 million. Noninterest-bearing deposits increased due to expanding relationships with a number of our commercial clients. As of December 31, 2021, time deposits included $2.4 million in brokered CDs, as compared to $2.4 million as of September 30, 2021 and $17.4 million as of December 31, 2020. Compared to December 31, 2020, total deposits increased by $750.4 million, which included a $674.3 million increase in noninterest bearing deposits and a $76.1 million increase in interest-bearing deposits.

Asset Quality

Nonperforming assets totaled $21.0 million, or 0.50% of total assets at December 31, 2021, compared to $14.5 million, or 0.38% of total assets at September 30, 2021. The $6.5 million increase in non-performing assets was due to the addition of three commercial real estate loans in the amount of $3.5 million, one SFR loan for $156,000 and three commercial and industrial loans for $3.7 million, less paydowns and payoffs on other non-performing loans. Nonperforming assets consist of other real estate owned, loans modified under troubled debt restructurings (“TDR”), non-accrual loans, and loans past due 90 days or more and still accruing interest.

In the fourth quarter of 2021, there were $46,000 in net recoveries, compared to net charge-offs of $317,000 in the third quarter.

The Company recorded a provision for credit losses of $635,000 for the fourth quarter of 2021, a decrease from $1.2 million in the prior quarter, primarily attributable to a reduction of the COVID-19 special reserve in the allowance for loan losses.

The allowance for loan losses totaled $32.9 million, or 1.12% of loans held for investment at December 31, 2021, compared with $32.2 million, or 1.13%, of total loans at September 30, 2021.

As of December 31, 2021, borrowers representing 69 loans totaling $11.8 million, or 0.40% 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.

As of January 15, 2022, the Company had no COVID-19 loans deferred.

During the fourth quarter of 2021, the Company repurchased 75,849 common shares at a weighted average price of $24.53.

Agreement to Acquire Gateway Bank, F.S.B.

On December 28, 2021, RBB Bancorp announced that it entered into a definitive agreement to acquire Gateway Bank, F.S.B. ("Gateway Bank") in a cash transaction valued at approximately $22.9 million, subject to certain terms and conditions, including customary holdbacks if certain contingencies are not met, and other possible adjustments as contained in the definitive agreement.

Gateway Bank, a commercial bank based in Oakland, California, had total assets of $172.4 million, total gross loans of $123.1 million, total deposits of $147.5 million, and total tangible equity of $15.5 million as of September 30, 2021. Principally serving the Asian-American communities in the San Francisco Bay Area, Gateway Bank has one branch located in Oakland’s Chinatown neighborhood, offering consumer and business banking and loan products and services.

The Company expects the transaction to be accretive to earnings per share in 2022 in the mid-single digit range. The Company also expects to incur tangible book value per share dilution of approximately 1.8% upon closing of the transaction, with a tangible book value dilution payback period of approximately 1.8 years. The earnings per share accretion estimates are based on estimated cost savings of approximately 60% of Gateway Bank's non-interest expense, with the cost savings phased in during 2022. The earnings per share accretion estimates do not include any assumption of revenue synergies. The transaction is expected to close in second quarter of 2022 and is subject to the Company obtaining all the regulatory approvals as well as other customary closing conditions.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of December 31, 2021, the company had total assets of $4.2 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, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and in Oahu, Hawaii. 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, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. 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, January 25, 2022, to discuss the Company’s fourth quarter 2021 financial results.

To listen to the conference call, please dial 1-866-518-6930 or 1-203-518-9797, conference ID RBBQ421. A replay of the call will be made available at 1-800-938-1602 or 1-404-220-1548 (no passcode required) approximately one hour after the conclusion of the call and will remain available through February 2, 2022.

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

501,372

 

 

$

206,927

 

 

$

493,653

 

 

$

362,930

 

 

$

137,654

 

Federal funds sold and other cash equivalents

 

 

193,000

 

 

 

170,000

 

 

 

110,000

 

 

 

57,000

 

 

 

57,000

 

Total cash and cash equivalents

 

 

694,372

 

 

 

376,927

 

 

 

603,653

 

 

 

419,930

 

 

 

194,654

 

Interest-bearing deposits in other financial institutions

 

 

600

 

 

 

600

 

 

 

600

 

 

 

600

 

 

 

600

 

Investment securities available for sale

 

 

368,260

 

 

 

345,000

 

 

 

339,568

 

 

 

281,582

 

 

 

210,867

 

Investment securities held to maturity

 

 

6,252

 

 

 

6,258

 

 

 

6,664

 

 

 

6,668

 

 

 

7,174

 

Mortgage loans held for sale

 

 

5,957

 

 

 

15,188

 

 

 

9,246

 

 

 

37,675

 

 

 

49,963

 

Loans held for investment

 

 

2,931,350

 

 

 

2,840,354

 

 

 

2,709,206

 

 

 

2,715,205

 

 

 

2,706,766

 

Allowance for loan losses

 

 

(32,912

)

 

 

(32,231

)

 

 

(31,352

)

 

 

(30,795

)

 

 

(29,337

)

Net loans held for investment

 

 

2,898,438

 

 

 

2,808,123

 

 

 

2,677,854

 

 

 

2,684,410

 

 

 

2,677,429

 

Premises and equipment, net

 

 

27,199

 

 

 

27,157

 

 

 

27,039

 

 

 

27,093

 

 

 

27,103

 

Federal Home Loan Bank (FHLB) stock

 

 

15,000

 

 

 

15,000

 

 

 

15,000

 

 

 

15,641

 

 

 

15,641

 

Cash surrender value of life insurance

 

 

55,988

 

 

 

55,656

 

 

 

55,325

 

 

 

35,308

 

 

 

35,121

 

Goodwill

 

 

69,243

 

 

 

69,243

 

 

 

69,243

 

 

 

69,243

 

 

 

69,243

 

Servicing assets

 

 

11,517

 

 

 

12,141

 

 

 

12,558

 

 

 

13,264

 

 

 

13,965

 

Core deposit intangibles

 

 

4,075

 

 

 

4,327

 

 

 

4,608

 

 

 

4,895

 

 

 

5,196

 

Right-of-use assets- operating leases

 

 

22,454

 

 

 

23,735

 

 

 

25,050

 

 

 

25,500

 

 

 

 

Accrued interest and other assets

 

 

48,839

 

 

 

42,452

 

 

 

44,230

 

 

 

42,490

 

 

 

43,116

 

Total assets

 

$

4,228,194

 

 

$

3,801,807

 

 

$

3,890,638

 

 

$

3,664,299

 

 

$

3,350,072

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

1,291,484

 

 

$

824,771

 

 

$

940,041

 

 

$

787,439

 

 

$

617,206

 

Savings, NOW and money market accounts

 

 

927,609

 

 

 

931,517

 

 

 

858,597

 

 

 

791,486

 

 

 

731,084

 

Time deposits, less than $250,000

 

 

587,940

 

 

 

614,146

 

 

 

658,393

 

 

 

649,190

 

 

 

688,875

 

Time deposits, greater than or equal to $250,000

 

 

578,499

 

 

 

597,379

 

 

 

612,894

 

 

 

593,178

 

 

 

597,963

 

Total deposits

 

 

3,385,532

 

 

 

2,967,813

 

 

 

3,069,925

 

 

 

2,821,293

 

 

 

2,635,128

 

Reserve for unfunded commitments

 

 

1,203

 

 

 

1,304

 

 

 

1,216

 

 

 

1,320

 

 

 

1,383

 

FHLB advances

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

Long-term debt, net of debt issuance costs

 

 

173,007

 

 

 

172,862

 

 

 

172,718

 

 

 

172,581

 

 

 

104,391

 

Subordinated debentures

 

 

14,502

 

 

 

14,447

 

 

 

14,393

 

 

 

14,338

 

 

 

14,283

 

Lease liabilities - operating leases

 

 

23,282

 

 

 

24,524

 

 

 

25,798

 

 

 

26,199

 

 

 

 

Accrued interest and other liabilities

 

 

13,985

 

 

 

14,833

 

 

 

14,263

 

 

 

42,900

 

 

 

16,399

 

Total liabilities

 

 

3,761,511

 

 

 

3,345,783

 

 

 

3,448,313

 

 

 

3,228,631

 

 

 

2,921,584

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder's equity

 

 

468,267

 

 

 

456,490

 

 

 

442,086

 

 

 

435,746

 

 

 

427,287

 

Non-controlling interest

 

 

72

 

 

 

72

 

 

 

72

 

 

 

72

 

 

 

72

 

Accumulated other comprehensive (loss) income - Net of tax

 

 

(1,656

)

 

 

(538

)

 

 

167

 

 

 

(150

)

 

 

1,129

 

Total shareholders' equity

 

 

466,683

 

 

 

456,024

 

 

 

442,325

 

 

 

435,668

 

 

 

428,488

 

Total liabilities and shareholders’ equity

 

$

4,228,194

 

 

$

3,801,807

 

 

$

3,890,638

 

 

$

3,664,299

 

 

$

3,350,072

 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

For the Three Months Ended

 

 

 

December 31, 2021

 

 

September 30, 2021

 

 

December 31, 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

36,783

 

 

$

35,601

 

 

$

34,832

 

Interest on interest-bearing deposits

 

 

160

 

 

 

219

 

 

 

55

 

Interest on investment securities

 

 

1,069

 

 

 

889

 

 

 

639

 

Dividend income on FHLB stock

 

 

227

 

 

 

225

 

 

 

193

 

Interest on federal funds sold and other

 

 

205

 

 

 

174

 

 

 

145

 

Total interest income

 

 

38,444

 

 

 

37,108

 

 

 

35,864

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

683

 

 

 

697

 

 

 

736

 

Interest on time deposits

 

 

1,748

 

 

 

2,048

 

 

 

3,900

 

Interest on subordinated debentures and long term debt

 

 

2,343

 

 

 

2,342

 

 

 

1,901

 

Interest on other borrowed funds

 

 

445

 

 

 

445

 

 

 

450

 

Total interest expense

 

 

5,219

 

 

 

5,532

 

 

 

6,987

 

Net interest income before provision for loan losses

 

 

33,225

 

 

 

31,576

 

 

 

28,877

 

Provision for loan losses

 

 

635

 

 

 

1,196

 

 

 

3,008

 

Net interest income after provision for loan losses

 

 

32,590

 

 

 

30,380

 

 

 

25,869

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges, fees and other

 

 

1,351

 

 

 

3,100

 

 

 

1,565

 

Gain on sale of loans

 

 

1,788

 

 

 

1,790

 

 

 

2,445

 

Loan servicing fees, net of amortization

 

 

258

 

 

 

62

 

 

 

206

 

Recoveries on loans acquired in business combinations

 

 

4

 

 

 

68

 

 

 

5

 

Unrealized (loss) on equity investments

 

 

(300

)

 

 

(5

)

 

 

78

 

(Loss) gain on derivatives

 

 

(277

)

 

 

178

 

 

 

 

Increase in cash surrender value of life insurance

 

 

332

 

 

 

331

 

 

 

191

 

Total noninterest income

 

 

3,156

 

 

 

5,524

 

 

 

4,490

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

6,812

 

 

 

8,772

 

 

 

8,105

 

Occupancy and equipment expenses

 

 

2,125

 

 

 

2,189

 

 

 

2,400

 

Data processing

 

 

838

 

 

 

965

 

 

 

1,012

 

Legal and professional

 

 

1,686

 

 

 

746

 

 

 

794

 

Office expenses

 

 

359

 

 

 

311

 

 

 

295

 

Marketing and business promotion

 

 

418

 

 

 

324

 

 

 

295

 

Insurance and regulatory assessments

 

 

475

 

 

 

384

 

 

 

210

 

Core deposit premium

 

 

252

 

 

 

281

 

 

 

324

 

OREO expenses

 

 

4

 

 

 

4

 

 

 

4

 

Merger expenses

 

 

38

 

 

 

40

 

 

 

5

 

Other expenses

 

 

293

 

 

 

404

 

 

 

1,009

 

Total noninterest expense

 

 

13,300

 

 

 

14,420

 

 

 

14,453

 

Income before income taxes

 

 

22,446

 

 

 

21,484

 

 

 

15,906

 

Income tax expense

 

 

6,740

 

 

 

6,120

 

 

 

4,759

 

Net income

 

$

15,706

 

 

$

15,364

 

 

$

11,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.81

 

 

$

0.79

 

 

$

0.57

 

Diluted

 

$

0.79

 

 

$

0.77

 

 

$

0.56

 

Cash Dividends declared per common share

 

$

0.13

 

 

$

0.13

 

 

$

0.09

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,444,148

 

 

 

19,343,262

 

 

 

19,655,621

 

Diluted

 

 

19,851,202

 

 

 

19,798,187

 

 

 

19,812,401

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, except for December 31, 2020)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

For the Twelve Months Ended

 

 

 

December 31, 2021

 

 

December 31, 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

141,569

 

 

$

133,894

 

Interest on interest-earning deposits

 

 

552

 

 

 

641

 

Interest on investment securities

 

 

3,379

 

 

 

2,968

 

Dividend income on FHLB stock

 

 

869

 

 

 

572

 

Interest on federal funds sold and other

 

 

694

 

 

 

1,045

 

Total interest income

 

 

147,063

 

 

 

139,120

 

Interest expense:

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

2,786

 

 

 

3,540

 

Interest on time deposits

 

 

9,170

 

 

 

21,665

 

Interest on subordinated debentures and long term debt

 

 

8,999

 

 

 

7,677

 

Interest on other borrowed funds

 

 

1,765

 

 

 

1,483

 

Total interest expense

 

 

22,720

 

 

 

34,365

 

Net interest income

 

 

124,343

 

 

 

104,755

 

Provision for loan losses

 

 

3,959

 

 

 

11,823

 

Net interest income after provision for loans losses

 

 

120,384

 

 

 

92,932

 

Noninterest income:

 

 

 

 

 

 

 

 

Service charges, fees and other (1)

 

 

7,235

 

 

 

4,852

 

Gain on sale of loans

 

 

9,991

 

 

 

5,997

 

Loan servicing fees, net of amortization

 

 

684

 

 

 

2,052

 

Recoveries on loans acquired in business combinations

 

 

82

 

 

 

84

 

Unrealized (loss) gain on equity investments

 

 

(360

)

 

 

 

Gain on derivatives

 

 

46

 

 

 

78

 

Increase in cash surrender value of life insurance

 

 

1,067

 

 

 

767

 

Gain on sale of securities

 

 

 

 

 

210

 

Total noninterest income

 

 

18,745

 

 

 

14,040

 

Noninterest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

33,568

 

 

 

33,312

 

Occupancy and equipment expenses

 

 

8,691

 

 

 

9,691

 

Data processing

 

 

4,474

 

 

 

4,236

 

Legal and professional

 

 

3,773

 

 

 

2,743

 

Office expenses

 

 

1,197

 

 

 

1,226

 

Marketing and business promotion

 

 

1,157

 

 

 

751

 

Insurance and regulatory assessments

 

 

1,561

 

 

 

984

 

Core deposit premium

 

 

1,121

 

 

 

1,395

 

OREO expenses

 

 

17

 

 

 

35

 

Merger expenses

 

 

137

 

 

 

746

 

Other expenses

 

 

2,496

 

 

 

4,394

 

Total noninterest expense

 

 

58,192

 

 

 

59,513

 

Income before income taxes

 

 

80,937

 

 

 

47,459

 

Income tax expense

 

 

24,031

 

 

 

14,531

 

Net income

 

$

56,906

 

 

$

32,928

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

Basic

 

$

2.92

 

 

$

1.66

 

Diluted

 

$

2.86

 

 

$

1.65

 

Cash Dividends declared per common share

 

$

0.51

 

 

$

0.33

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,423,549

 

 

 

19,763,422

 

Diluted

 

 

19,834,306

 

 

 

19,921,859

 

(1) Includes $1.8 million of the U.S. Treasury's CDFI rapid response program grant income, received in the third quarter of 2021.

RBB BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND NET INTEREST INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the three months ended

 

 

 

December 31, 2021

 

 

September 30, 2021

 

 

December 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)

 

$

587,980

 

 

$

592

 

 

 

0.40

%

 

$

628,020

 

 

$

618

 

 

 

0.39

%

 

$

188,430

 

 

$

393

 

 

 

0.83

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale (2)

 

 

376,601

 

 

 

1,037

 

 

 

1.09

%

 

 

336,130

 

 

 

856

 

 

 

1.01

%

 

 

222,762

 

 

 

579

 

 

 

1.03

%

Held to maturity (2)

 

 

6,256

 

 

 

56

 

 

 

3.55

%

 

 

6,262

 

 

 

56

 

 

 

3.55

%

 

 

7,383

 

 

 

68

 

 

 

3.66

%

Mortgage loans held for sale

 

 

3,721

 

 

 

40

 

 

 

4.26

%

 

 

5,218

 

 

 

46

 

 

 

3.50

%

 

 

41,265

 

 

 

325

 

 

 

3.13

%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,492,396

 

 

 

31,978

 

 

 

5.09

%

 

 

2,361,405

 

 

 

30,911

 

 

 

5.19

%

 

 

2,282,937

 

 

 

29,705

 

 

 

5.18

%

Commercial

 

 

380,098

 

 

 

4,765

 

 

 

4.97

%

 

 

374,125

 

 

 

4,644

 

 

 

4.92

%

 

 

390,980

 

 

 

4,802

 

 

 

4.89

%

Total loans

 

 

2,872,494

 

 

 

36,743

 

 

 

5.07

%

 

 

2,735,530

 

 

 

35,555

 

 

 

5.16

%

 

 

2,673,917

 

 

 

34,507

 

 

 

5.13

%

Total earning assets

 

 

3,847,052

 

 

$

38,468

 

 

 

3.97

%

 

 

3,711,160

 

 

$

37,131

 

 

 

3.97

%

 

 

3,133,757

 

 

$

35,872

 

 

 

4.55

%

Noninterest-earning assets

 

 

240,059

 

 

 

 

 

 

 

 

 

 

 

242,742

 

 

 

 

 

 

 

 

 

 

 

196,071

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,087,111

 

 

 

 

 

 

 

 

 

 

$

3,953,902

 

 

 

 

 

 

 

 

 

 

$

3,329,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

73,896

 

 

$

48

 

 

 

0.26

%

 

$

71,454

 

 

$

48

 

 

 

0.27

%

 

$

62,232

 

 

$

48

 

 

 

0.31

%

Money Market

 

 

668,742

 

 

 

602

 

 

 

0.36

%

 

 

660,806

 

 

 

615

 

 

 

0.37

%

 

 

504,463

 

 

 

656

 

 

 

0.52

%

Saving deposits

 

 

138,906

 

 

 

33

 

 

 

0.09

%

 

 

139,555

 

 

 

34

 

 

 

0.10

%

 

 

128,727

 

 

 

32

 

 

 

0.10

%

Time deposits, less than $250,000

 

 

599,119

 

 

 

827

 

 

 

0.55

%

 

 

644,013

 

 

 

977

 

 

 

0.60

%

 

 

698,415

 

 

 

2,058

 

 

 

1.17

%

Time deposits, $250,000 and over

 

 

588,265

 

 

 

921

 

 

 

0.62

%

 

 

604,394

 

 

 

1,071

 

 

 

0.70

%

 

 

594,655

 

 

 

1,842

 

 

 

1.23

%

Total interest-bearing deposits

 

 

2,068,928

 

 

 

2,431

 

 

 

0.47

%

 

 

2,120,222

 

 

 

2,745

 

 

 

0.51

%

 

 

1,988,492

 

 

 

4,636

 

 

 

0.93

%

FHLB advances

 

 

150,000

 

 

 

445

 

 

 

1.18

%

 

 

150,000

 

 

 

445

 

 

 

1.18

%

 

 

161,957

 

 

 

450

 

 

 

1.11

%

Long-term debt

 

 

172,912

 

 

 

2,195

 

 

 

5.04

%

 

 

172,767

 

 

 

2,194

 

 

 

5.04

%

 

 

104,335

 

 

 

1,748

 

 

 

6.67

%

Subordinated debentures

 

 

14,466

 

 

 

148

 

 

 

4.06

%

 

 

14,411

 

 

 

148

 

 

 

4.07

%

 

 

14,248

 

 

 

153

 

 

 

4.27

%

Total interest-bearing liabilities

 

 

2,406,306

 

 

 

5,219

 

 

 

0.86

%

 

 

2,457,400

 

 

 

5,532

 

 

 

0.89

%

 

 

2,269,032

 

 

 

6,987

 

 

 

1.23

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

1,177,948

 

 

 

 

 

 

 

 

 

 

 

1,003,304

 

 

 

 

 

 

 

 

 

 

 

616,803

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

39,483

 

 

 

 

 

 

 

 

 

 

 

42,419

 

 

 

 

 

 

 

 

 

 

 

16,830

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,217,431

 

 

 

 

 

 

 

 

 

 

 

1,045,723

 

 

 

 

 

 

 

 

 

 

 

633,633

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

463,374

 

 

 

 

 

 

 

 

 

 

 

450,779

 

 

 

 

 

 

 

 

 

 

 

427,163

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

4,087,111

 

 

 

 

 

 

 

 

 

 

$

3,953,902

 

 

 

 

 

 

 

 

 

 

$

3,329,828

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

33,249

 

 

 

3.11

%

 

 

 

 

 

$

31,599

 

 

 

3.08

%

 

 

 

 

 

$

28,885

 

 

 

3.32

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.43

%

 

 

 

 

 

 

 

 

 

 

3.38

%

 

 

 

 

 

 

 

 

 

 

3.67

%

(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

AVERAGE BALANCE SHEET AND NET INTEREST INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the twelve months ended

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Average

 

 

Interest

 

 

Yield /

 

 

Average

 

 

Interest

 

 

Yield /

 

(tax-equivalent basis, dollars in thousands)

 

Balance

 

 

& Fees

 

 

Rate

 

 

Balance

 

 

& Fees

 

 

Rate

 

Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold, cash equivalents & other (1)

 

$

504,809

 

 

$

2,115

 

 

 

0.42

%

 

$

212,594

 

 

$

2,258

 

 

 

1.06

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale (2)

 

 

320,544

 

 

 

3,217

 

 

 

1.00

%

 

 

175,307

 

 

 

2,714

 

 

 

1.55

%

Held to maturity (2)

 

 

6,543

 

 

 

238

 

 

 

3.64

%

 

 

7,665

 

 

 

287

 

 

 

3.74

%

Mortgage loans held for sale

 

 

20,817

 

 

 

670

 

 

 

3.22

%

 

 

41,019

 

 

 

1,779

 

 

 

4.34

%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,363,846

 

 

 

122,204

 

 

 

5.17

%

 

 

2,176,695

 

 

 

113,966

 

 

 

5.24

%

Commercial

 

 

381,646

 

 

 

18,695

 

 

 

4.90

%

 

 

367,718

 

 

 

18,149

 

 

 

4.94

%

Total loans

 

 

2,745,492

 

 

 

140,899

 

 

 

5.13

%

 

 

2,544,413

 

 

 

132,115

 

 

 

5.19

%

Total earning assets

 

 

3,598,205

 

 

$

147,139

 

 

 

4.09

%

 

 

2,980,998

 

 

$

139,153

 

 

 

4.67

%

Noninterest-earning assets

 

 

235,267

 

 

 

 

 

 

 

 

 

 

 

204,617

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,833,472

 

 

 

 

 

 

 

 

 

 

$

3,185,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

69,211

 

 

$

184

 

 

 

0.27

%

 

$

55,795

 

 

$

201

 

 

 

0.36

%

Money Market

 

 

637,539

 

 

 

2,468

 

 

 

0.39

%

 

 

449,110

 

 

 

3,190

 

 

 

0.71

%

Saving deposits

 

 

137,534

 

 

 

134

 

 

 

0.10

%

 

 

123,568

 

 

 

149

 

 

 

0.12

%

Time deposits, less than $250,000

 

 

640,747

 

 

 

4,462

 

 

 

0.70

%

 

 

715,181

 

 

 

11,466

 

 

 

1.60

%

Time deposits, $250,000 and over

 

 

597,770

 

 

 

4,708

 

 

 

0.79

%

 

 

597,262

 

 

 

10,199

 

 

 

1.71

%

Total interest-bearing deposits

 

 

2,082,801

 

 

 

11,956

 

 

 

0.57

%

 

 

1,940,916

 

 

 

25,205

 

 

 

1.30

%

FHLB advances

 

 

150,000

 

 

 

1,765

 

 

 

1.18

%

 

 

129,071

 

 

 

1,483

 

 

 

1.15

%

Long-term debt

 

 

157,720

 

 

 

8,404

 

 

 

5.33

%

 

 

104,210

 

 

 

6,990

 

 

 

6.71

%

Subordinated debentures

 

 

14,384

 

 

 

595

 

 

 

4.14

%

 

 

14,228

 

 

 

687

 

 

 

4.83

%

Total interest-bearing liabilities

 

 

2,404,905

 

 

$

22,720

 

 

 

0.94

%

 

 

2,188,425

 

 

$

34,365

 

 

 

1.57

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

938,711

 

 

 

 

 

 

 

 

 

 

 

564,111

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

42,142

 

 

 

 

 

 

 

 

 

 

 

15,164

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

980,853

 

 

 

 

 

 

 

 

 

 

 

579,275

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

447,714

 

 

 

 

 

 

 

 

 

 

 

417,915

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

3,833,472

 

 

 

 

 

 

 

 

 

 

$

3,185,615

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

124,419

 

 

 

3.15

%

 

 

 

 

 

$

104,788

 

 

 

3.10

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.46

%

 

 

 

 

 

 

 

 

 

 

3.52

%

(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

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2020

 

Per share data (common stock)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.81

 

 

$

0.79

 

 

$

0.57

 

Diluted

 

$

0.79

 

 

$

0.77

 

 

$

0.56

 

Dividends declared

 

$

0.13

 

 

$

0.13

 

 

$

0.09

 

Book value

 

$

23.99

 

 

$

23.37

 

 

$

21.90

 

Tangible book value

 

$

20.22

 

 

$

19.60

 

 

$

18.10

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,444,148

 

 

 

19,343,262

 

 

 

19,655,621

 

Diluted

 

 

19,851,202

 

 

 

19,798,187

 

 

 

19,812,401

 

Shares outstanding at period end

 

 

19,455,544

 

 

 

19,516,393

 

 

 

19,565,921

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

 

1.52

%

 

 

1.54

%

 

 

1.33

%

Return on average shareholders' equity, annualized

 

 

13.45

%

 

 

13.52

%

 

 

10.38

%

Return on average tangible common equity, annualized

 

 

15.98

%

 

 

16.17

%

 

 

12.58

%

Noninterest income to average assets, annualized

 

 

0.31

%

 

 

0.55

%

 

 

0.54

%

Noninterest expense to average assets, annualized

 

 

1.29

%

 

 

1.45

%

 

 

1.73

%

Yield on average earning assets

 

 

3.97

%

 

 

3.97

%

 

 

4.55

%

Cost of average total deposits

 

 

0.30

%

 

 

0.35

%

 

 

0.71

%

Cost of average interest-bearing deposits

 

 

0.47

%

 

 

0.51

%

 

 

0.93

%

Cost of average interest-bearing liabilities

 

 

0.86

%

 

 

0.89

%

 

 

1.23

%

Accretion on loans to average earning assets

 

 

0.02

%

 

 

0.03

%

 

 

0.03

%

Net interest spread

 

 

3.11

%

 

 

3.08

%

 

 

3.32

%

Net interest margin

 

 

3.43

%

 

 

3.38

%

 

 

3.67

%

Efficiency ratio

 

 

36.56

%

 

 

38.87

%

 

 

43.32

%

Common stock dividend payout ratio

 

 

16.05

%

 

 

16.46

%

 

 

15.79

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

For the twelve months ended December 31,

 

 

 

2021

 

 

2020

 

Per share data (common stock)

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

Basic

 

$

2.92

 

 

$

1.66

 

Diluted

 

$

2.86

 

 

$

1.65

 

Dividends declared

 

$

0.51

 

 

$

0.33

 

Book value

 

$

23.99

 

 

$

21.90

 

Tangible book value

 

$

20.22

 

 

$

18.10

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,423,549

 

 

 

19,763,422

 

Diluted

 

 

19,834,306

 

 

 

19,921,859

 

Shares outstanding at period end

 

 

19,455,544

 

 

 

19,565,921

 

Performance ratios

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

 

1.48

%

 

 

1.03

%

Return on average shareholders' equity, annualized

 

 

12.71

%

 

 

7.88

%

Return on average tangible common equity, annualized

 

 

15.22

%

 

 

9.62

%

Noninterest income to average assets, annualized

 

 

0.49

%

 

 

0.44

%

Noninterest expense to average assets, annualized

 

 

1.52

%

 

 

1.87

%

Yield on average earning assets

 

 

4.09

%

 

 

4.67

%

Cost of average deposits

 

 

0.40

%

 

 

1.01

%

Cost of average interest-bearing deposits

 

 

0.57

%

 

 

1.30

%

Cost of average interest-bearing liabilities

 

 

0.94

%

 

 

1.57

%

Accretion on loans to average earning assets

 

 

0.03

%

 

 

0.08

%

Net interest spread

 

 

3.15

%

 

 

3.10

%

Net interest margin

 

 

3.46

%

 

 

3.52

%

Efficiency ratio

 

 

40.67

%

 

 

50.10

%

Common stock dividend payout ratio

 

 

17.47

%

 

 

19.88

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

As of

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2020

 

Loan to deposit ratio

 

 

86.58

%

 

 

95.71

%

 

 

102.72

%

Core deposits / total deposits

 

 

82.91

%

 

 

79.87

%

 

 

77.31

%

Net non-core funding dependence ratio

 

 

-6.50

%

 

 

9.27

%

 

 

12.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days past due

 

$

17,640

 

 

$

7,258

 

 

$

8,939

 

Loans 30-89 days past due to total loans

 

 

0.60

%

 

 

0.26

%

 

 

0.33

%

Nonperforming loans

 

$

20,725

 

 

$

14,248

 

 

$

19,554

 

Nonperforming loans to total loans

 

 

0.71

%

 

 

0.50

%

 

 

0.72

%

Nonperforming assets

 

$

21,018

 

 

$

14,541

 

 

$

19,847

 

Nonperforming assets to total assets

 

 

0.50

%

 

 

0.38

%

 

 

0.59

%

Allowance for loan losses to total loans

 

 

1.12

%

 

 

1.13

%

 

 

1.08

%

Allowance for loan losses to nonperforming loans

 

 

158.80

%

 

 

226.21

%

 

 

150.03

%

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

 

 

-0.01

%

 

 

0.05

%

 

 

0.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory and other capital ratios—Company

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

9.47

%

 

 

10.26

%

 

 

10.81

%

Tier 1 leverage ratio

 

 

10.21

%

 

 

10.31

%

 

 

11.32

%

Tier 1 common capital to risk-weighted assets

 

 

14.86

%

 

 

14.82

%

 

 

14.63

%

Tier 1 capital to risk-weighted assets

 

 

15.40

%

 

 

15.38

%

 

 

15.22

%

Total capital to risk-weighted assets

 

 

23.15

%

 

 

23.30

%

 

 

20.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios—Bank only

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

12.45

%

 

 

12.48

%

 

 

14.09

%

Tier 1 common capital to risk-weighted assets

 

 

18.80

%

 

 

18.64

%

 

 

18.95

%

Tier 1 capital to risk-weighted assets

 

 

18.80

%

 

 

18.64

%

 

 

18.95

%

Total capital to risk-weighted assets

 

 

20.05

%

 

 

19.89

%

 

 

20.20

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

4th Quarter

 

 

3rd Quarter

 

 

2nd Quarter

 

 

1st Quarter

 

 

4th Quarter

 

Quarterly Consolidated Statements of Earnings

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

36,783

 

 

$

35,601

 

 

$

34,669

 

 

$

34,516

 

 

$

34,832

 

Investment securities and other

 

 

1,661

 

 

 

1,507

 

 

 

1,302

 

 

 

1,024

 

 

 

1,032

 

Total interest income

 

 

38,444

 

 

 

37,108

 

 

 

35,971

 

 

 

35,540

 

 

 

35,864

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,431

 

 

 

2,745

 

 

 

3,118

 

 

 

3,662

 

 

 

4,636

 

Interest on subordinated debentures and other

 

 

2,343

 

 

 

2,342

 

 

 

2,356

 

 

 

1,958

 

 

 

1,901

 

Other borrowings

 

 

445

 

 

 

445

 

 

 

440

 

 

 

435

 

 

 

450

 

Total interest expense

 

 

5,219

 

 

 

5,532

 

 

 

5,914

 

 

 

6,055

 

 

 

6,987

 

Net interest income before provision for loan losses

 

 

33,225

 

 

 

31,576

 

 

 

30,057

 

 

 

29,485

 

 

 

28,877

 

Provision for loan losses

 

 

635

 

 

 

1,196

 

 

 

628

 

 

 

1,500

 

 

 

3,008

 

Net interest income after provision for loan losses

 

 

32,590

 

 

 

30,380

 

 

 

29,429

 

 

 

27,985

 

 

 

25,869

 

Noninterest income

 

 

3,156

 

 

 

5,524

 

 

 

4,171

 

 

 

5,894

 

 

 

4,490

 

Noninterest expense

 

 

13,300

 

 

 

14,420

 

 

 

14,680

 

 

 

15,792

 

 

 

14,453

 

Earnings before income taxes

 

 

22,446

 

 

 

21,484

 

 

 

18,920

 

 

 

18,087

 

 

 

15,906

 

Income taxes

 

 

6,740

 

 

 

6,120

 

 

 

5,540

 

 

 

5,631

 

 

 

4,759

 

Net income

 

$

15,706

 

 

$

15,364

 

 

$

13,380

 

 

$

12,456

 

 

$

11,147

 

Net income per common share - basic

 

$

0.81

 

 

$

0.79

 

 

$

0.69

 

 

$

0.64

 

 

$

0.57

 

Net income per common share - diluted

 

$

0.79

 

 

$

0.77

 

 

$

0.67

 

 

$

0.63

 

 

$

0.56

 

Cash dividends declared per common share

 

$

0.13

 

 

$

0.13

 

 

$

0.13

 

 

$

0.12

 

 

$

0.09

 

Cash dividends declared on common shares

 

$

2,516

 

 

$

2,537

 

 

$

2,540

 

 

$

2,347

 

 

$

1,777

 

Yield on average assets, annualized

 

 

1.52

%

 

 

1.54

%

 

 

1.39

%

 

 

1.47

%

 

 

1.33

%

Yield on average earning assets

 

 

3.97

%

 

 

3.97

%

 

 

3.99

%

 

 

4.49

%

 

 

4.55

%

Cost of average deposits

 

 

0.30

%

 

 

0.35

%

 

 

0.41

%

 

 

0.55

%

 

 

0.71

%

Cost of average interest-bearing deposits

 

 

0.47

%

 

 

0.51

%

 

 

0.59

%

 

 

0.73

%

 

 

0.93

%

Cost of average interest-bearing liabilities

 

 

0.86

%

 

 

0.89

%

 

 

0.97

%

 

 

1.06

%

 

 

1.23

%

Accretion on loans to average earning assets

 

 

0.02

%

 

 

0.03

%

 

 

0.02

%

 

 

0.06

%

 

 

0.03

%

Net interest margin

 

 

3.43

%

 

 

3.38

%

 

 

3.33

%

 

 

3.73

%

 

 

3.67

%

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 December
31, 2021

 

As of September
30, 2021

 

As of June 30,
2021

 

As of March 31,
2020

 

As of December
31, 2020

(dollars in thousands)

 

 

$

 

%

 

 

$

 

%

 

 

$

 

%

 

 

$

 

%

 

 

$

 

%

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

268,709

 

 

 

9.2

%

 

$

276,387

 

 

 

9.7

%

 

$

277,080

 

 

 

10.2

%

 

$

286,016

 

 

 

10.5

%

 

$

290,139

 

 

 

10.7

%

SBA

 

 

76,136

 

 

 

2.6

%

 

 

88,784

 

 

 

3.1

%

 

 

98,572

 

 

 

3.6

%

 

 

111,330

 

 

 

4.1

%

 

 

97,821

 

 

 

3.6

%

Construction and land development

 

 

303,144

 

 

 

10.3

%

 

 

271,764

 

 

 

9.6

%

 

 

236,965

 

 

 

8.7

%

 

 

209,727

 

 

 

7.7

%

 

 

186,723

 

 

 

6.9

%

Commercial real estate (1)

 

 

1,247,999

 

 

 

42.6

%

 

 

1,205,630

 

 

 

42.4

%

 

 

1,102,467

 

 

 

40.7

%

 

 

1,063,104

 

 

 

39.2

%

 

 

1,003,637

 

 

 

37.1

%

Single-family residential mortgages

 

 

1,004,576

 

 

 

34.3

%

 

 

974,780

 

 

 

34.3

%

 

 

984,311

 

 

 

36.3

%

 

 

1,041,260

 

 

 

38.3

%

 

 

1,124,357

 

 

 

41.5

%

Other loans

 

 

30,786

 

 

 

1.0

%

 

 

23,009

 

 

 

0.9

%

 

 

9,811

 

 

 

0.5

%

 

 

3,768

 

 

 

0.2

%

 

 

4,089

 

 

 

0.2

%

Total loans (2)

 

$

2,931,350

 

 

 

100.0

%

 

$

2,840,354

 

 

 

100.0

%

 

$

2,709,206

 

 

 

100.0

%

 

$

2,715,205

 

 

 

100.0

%

 

$

2,706,766

 

 

 

100.0

%

Allowance for loan losses

 

 

(32,912

)

 

 

 

 

 

(32,231

)

 

 

 

 

 

(31,352

)

 

 

 

 

 

(30,795

)

 

 

 

 

 

(29,337

)

 

 

 

Total loans, net

 

$

2,898,438

 

 

 

 

 

$

2,808,123

 

 

 

 

 

$

2,677,854

 

 

 

 

 

$

2,684,410

 

 

 

 

 

$

2,677,429

 

 

 

(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

 

Twelve Months Ended

Change in Allowance for Loan Losses

 

December 31,

 

December 31,

(dollars in thousands)

 

2021

 

 

2020

 

2021

 

2020

Beginning balance

 

$

32,231

 

 

$

26,634

 

 

$

29,337

 

 

$

18,816

 

Additions to the allowance charged to expense

 

 

635

 

 

 

3,008

 

 

 

3,959

 

 

 

11,823

 

Net recoveries (charge-offs) on loans

 

 

46

 

 

 

(305

)

 

 

(384

)

 

 

(1,302

)

Ending balance

 

$

32,912

 

 

$

29,337

 

 

$

32,912

 

 

$

29,337

 

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 December 31, 2021 and 2020, and September 30, 2021.

 

 

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

December 31,
2021

 

September 30,
2021

 

December 31,
2020

Tangible common equity:

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

466,683

 

 

$

456,024

 

 

$

428,488

 

Adjustments

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,243

)

 

 

(69,243

)

 

 

(69,243

)

Core deposit intangible

 

 

(4,075

)

 

 

(4,327

)

 

 

(5,196

)

Tangible common equity

 

$

393,365

 

 

$

382,454

 

 

$

354,049

 

Tangible assets:

 

 

 

 

 

 

 

 

 

Total assets-GAAP

 

$

4,228,194

 

 

$

3,801,807

 

 

$

3,350,072

 

Adjustments

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,243

)

 

 

(69,243

)

 

 

(69,243

)

Core deposit intangible

 

 

(4,075

)

 

 

(4,327

)

 

 

(5,196

)

Tangible assets

 

$

4,154,876

 

 

$

3,728,237

 

 

$

3,275,633

 

Common shares outstanding

 

$

19,455,544

 

 

 

19,516,393

 

 

 

19,565,921

 

Tangible common equity to tangible assets ratio

 

 

9.47

%

 

 

10.26

%

 

 

10.81

%

Book value per share

 

$

23.99

 

 

$

23.37

 

 

$

21.90

 

Tangible book value per share

 

$

20.22

 

 

$

19.60

 

 

$

18.10

 

 

Yee Phong (Alan) Thian
President and CEO
(626) 307-7559

David Morris
Executive Vice President and CFO
(714) 670-2488

Source: RBB Bancorp