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Press Release

RBB Bancorp Reports Second Quarter Earnings for 2021

July 26, 2021 at 4:05 PM EDT

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

Second Quarter 2021 Highlights

  • Reported record net income of $13.4 million, or $0.67 diluted earnings per share, increased $924,000, or 7.4%, from the prior quarter and increased $6.9 million, or 105.4%, from the second quarter of 2020
  • Total deposits increased by $248.6 million, or 35.3% annualized growth, from the end of the prior quarter
  • Loan growth (ex-mortgage) of $51.0 million, or 12.2% annualized, from the end of the prior quarter
  • Declared quarterly cash dividend of $0.13 per common share

 

LOS ANGELES--(BUSINESS WIRE)--Jul. 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 June 30, 2021.

The Company reported record net income of $13.4 million, or $0.67 diluted earnings per share, for the three months ended June 30, 2021, compared to net income of $12.5 million, or $0.63 diluted earnings per share, and $6.5 million, or $0.33 diluted earnings per share, for the three months ended March 31, 2021 and June 30, 2020, respectively.

“We are pleased to report diluted earnings per share of $0.67, for the second quarter,” said Alan Thian, President and CEO of Royal Business Bank. “Continued focus on our deposit franchise reduced the cost of our interest-bearing deposits and delivered strong growth in non-interest bearing deposits which now comprise 30.6% of total deposits. While our net interest margin declined due to excess liquidity, our disciplined loan origination efforts kept our loan balance and yields stable. Our acquisition of the Hawaiian branch of the Bank of the Orient expands our presence in a vibrant Asian-American community and positions us for profitable growth.”

"Royal Business Bank’s excellent second quarter results demonstrate the continued strength of our differentiated business model and commitment to enhancing long-term shareholder value," said Dr. James Kao, Chairman of RBB Bancorp. “We remain well-positioned to pursue additional organic and strategic growth opportunities."

Key Performance Ratios

Net income of $13.4 million for the second quarter of 2021 produced an annualized return on average assets of 1.39%, an annualized return on average tangible common shareholders' equity of 14.57%, and an annualized return on average shareholders' equity of 12.13%. This compares to 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% for the first quarter of 2021. The efficiency ratio for the second quarter of 2021 was 42.89%, compared to 44.64% for the prior quarter. The change in the efficiency ratio was primarily due to a decrease in non-interest income.

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $30.1 million for the second quarter of 2021, compared to $29.5 million for the first quarter of 2021. The $572,000 increase was primarily attributable to higher interest income due to a $410.6 million increase in average earning assets and an improvement in deposit costs related to a $259.8 million increase in average noninterest-bearing deposits, partially offset by a $138.0 million increase in average interest-bearing liabilities. Accretion of purchase discounts from prior acquisitions contributed $183,000 to net interest income in the second quarter of 2021, compared to $481,000 in the first quarter of 2021.

Compared to the second quarter of 2020, net interest income, before provision for loan losses, increased $5.0 million from $25.0 million. The increase was primarily attributable to a $670.6 million increase in average earning assets and a $355.5 million increase in average noninterest-bearing deposits, partially offset by a $277.7 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 3.33% for the second quarter of 2021, a decrease of 40 basis points from 3.73% in the first quarter of 2021. The decrease was primarily attributable to an increase in liquidity combined with a 50 basis point decrease in the yield on average earning assets and a 40 basis point decrease in the yield on federal funds sold, cash equivalents & other which was partially offset by a 19 basis point decrease in the cost of borrowings (FHLB advances, long-term debt and subordinated debentures). Loan discount accretion contributed 2 basis points to the net interest margin in the second quarter of 2021, compared to 6 basis points in the first quarter of 2021. The majority of the decrease in net interest margin was due to the increase in liquidity.

Noninterest Income

Noninterest income was $4.2 million for the second quarter of 2021, a decrease of $1.7 million from $5.9 million in the first quarter of 2021. The decrease was driven by a decrease in loans sold during the quarter. The Company sold $55.4 million fewer loans in the second quarter than in the prior quarter primarily due to selling fewer FNMA loans.

The Company sold $58.9 million in FNMA qualified mortgage loans for a net gain of $1.4 million and sold $13.4 million in non-qualified mortgage loans to private investors for a gain of $389,000 during the second quarter of 2021. This compared to $80.3 million in FNMA qualified mortgage loans for a net gain of $2.2 million and $49.8 million in non-qualified mortgage loans to private investors for a gain of $1.2 million during the first quarter of 2021. The Company sold $5.9 million in SBA loans during the second quarter of 2021 for a net gain of $747,000, compared to $3.5 million SBA loans sold for a net gain of $355,000 during the first quarter of 2021.

Compared to the second quarter of 2020, noninterest income increased by $2.0 million from $2.2 million. The increase was primarily attributable to an increase of $2.5 million in gain on loan sales partially offset by a decrease of $590,000 in loan servicing fees.

Noninterest Expense

Noninterest expense for the second quarter of 2021 was $14.7 million, compared to $15.8 million for the first quarter of 2021. The $1.1 million decrease was primarily attributable to a $500,000 decrease in salaries and employee benefits, a $269,000 decrease in legal and professional fees and $209,000 decrease in data processing expenses.

Noninterest expense decreased from $14.8 million in the second quarter of 2020. The $139,000 decrease was primarily due to a $366,000 decrease in MSR impairment write-down expense and a $392,000 decrease in occupancy and equipment expenses. These were partially offset by a $639,000 increase in salaries and employee benefits expense.

Income Taxes

The effective tax rate was 29.28% for the second quarter of 2021, 31.1% for the first quarter of 2021, and 30.8% for the second quarter of 2020.

CDFI Rapid Response Program

In 2016, RBB became a community development financial institution (CDFI). In mid-June, 2021 the Bank was awarded a $1.8 million grant under the US Treasury’s Rapid Response Program to facilitate a rapid response to the economic impacts of the COVID-19 pandemic in distressed and underserved communities. The award has not yet been received pending finalization of the contract between the Bank and the US Treasury which will include various performance goals and measures that specify the use of the funds.

Loan Portfolio

Loans held for investment, net of deferred fees and discounts, totaled $2.7 billion as of June 30, 2021, a decrease of $6.0 million from March 31, 2021, and an increase of $114.6 million from June 30, 2020 from $2.6 billion. The decrease from the prior quarter was primarily due to a decrease in mortgage loan originations. Single-family residential mortgages decreased by $56.9 million net of payoffs, paydowns and loan sales. Commercial real estate loans increased by $39.4 million, construction and land development loans increased by $27.2 million, SBA loans decreased by $12.8 million (which included a $13.7 million decrease in PPP loans), commercial and industrial loans decreased by $8.9 million and other loans increased by $6.0 million.

During the second quarter of 2021, single-family residential mortgage production was $107.9 million, payoffs and paydowns were $121.0 million, and single-family residential mortgage loan sales were $72.3 million. During the first quarter of 2021, single-family residential mortgage production was $114.5 million, payoffs and paydowns were $81.9 million, and loan sales were $130.1 million.

Mortgage loans held for sale were $9.2 million as of June 30, 2021, a decrease of $28.4 million from $37.7 million at March 31, 2021 and a decrease of $6.2 million from $15.5 million as of June 30, 2020. The Company originated approximately $29.2 million in FNMA mortgage loans for sale for the second quarter of 2021, compared with $55.3 million during the prior quarter.

In the second quarter of 2021, SBA loan production was $21.3 million and total SBA loan sales were $5.9 million.

Deposits and Borrowings

Deposits were $3.1 billion at June 30, 2021, an increase of $248.6 million from March 31, 2021, and an increase of $633.4 million from June 30, 2020, including brokered deposits. The increase in total deposits from the prior quarter was primarily attributable to organic deposit growth. During the second quarter of 2021, noninterest-bearing deposits increased by $152.6 million, interest-bearing non-maturity deposits increased by $67.1 million, and time deposits decreased by $28.9 million. As of June 30, 2021, time deposits included $17.4 million in brokered CDs, as compared to $17.4 million as of March 31, 2021 and $2.4 million as of June 30, 2020.

Asset Quality

Nonperforming assets totaled $19.5 million, or 0.50% of total assets at June 30, 2021, compared to $20.2 million, or 0.55%, of total assets at March 31, 2021. 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 second quarter of 2021, there were $71,000 in net charge-offs, compared to net charge-offs of $42,000 in the prior quarter.

The Company recorded a provision for credit losses of $628,000 for the second quarter of 2021, a decrease from $872,000 in the prior quarter, primarily attributable to reduced loan growth.

The allowance for loan losses totaled $31.4 million, or 1.16% of loans held for investment at June 30, 2021, compared with $30.8 million, or 1.13%, of total loans at March 31, 2021.

As of June 30, 2021, borrowers representing 191 loans totaling $29.2 million, or 1.07% 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 Company does not have any shared national credits or loans, backed by airlines or cruise lines, on deferral as of June 30, 2021.

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

 

 

As of June 30, 2020

 

 

As of April 15, 2021

 

 

As of July 15, 2021

 

 

 

Loans Deferred

 

 

Loans Deferred

 

 

Loans Deferred

 

 

 

Number

 

 

Principal
Amount
($000)

 

 

Number

 

 

Principal
Amount
($000)

 

 

Number

 

 

Principal
Amount
($000)

 

General retail (excluding SBA)

 

 

34

 

 

$

94,251

 

 

 

1

 

 

$

438

 

 

 

 

 

$

 

Mixed use commercial

 

 

38

 

 

 

58,841

 

 

 

4

 

 

 

2,602

 

 

 

 

 

 

 

Hospitality (excluding SBA)

 

 

5

 

 

 

25,343

 

 

 

1

 

 

 

6,394

 

 

 

 

 

 

 

Restaurants (excluding SBA)

 

 

11

 

 

 

4,186

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily

 

 

6

 

 

 

9,086

 

 

 

1

 

 

 

688

 

 

 

 

 

 

 

Commercial, office and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SFR mortgage loans - Western region

 

 

183

 

 

 

118,484

 

 

 

9

 

 

 

5,135

 

 

 

4

 

 

 

3,101

 

SFR mortgage loans - Eastern region

 

 

203

 

 

 

85,935

 

 

 

5

 

 

 

2,467

 

 

 

 

 

 

 

SFR mortgage loans - Chicago metropolitan

 

 

84

 

 

 

14,824

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

564

 

 

$

410,950

 

 

 

21

 

 

$

17,724

 

 

 

4

 

 

$

3,101

 

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of June 30, 2021, the company had total assets of $3.9 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, July 27, 2021, to discuss the Company’s second quarter 2021 financial results.

To listen to the conference call, please dial 1-833-519-1355 or 1-918-922-6505, passcode 5654379. A replay of the call will be made available at 1-800-585-8367 or 1-404-537-3406, passcode 5654379, approximately one hour after the conclusion of the call and will remain available through August 3, 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)

         

 

 

June 30,

 

 

 

March 31,

 

 

 

December 31,

 

 

 

September 30,

 

 

 

June 30,

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

 

 

2020

 

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

493,653

 

 

 

$

362,930

 

 

 

$

137,654

 

 

 

$

121,630

 

 

 

$

94,844

 

Federal funds sold and other cash equivalents

 

 

110,000

 

 

 

 

57,000

 

 

 

 

57,000

 

 

 

 

57,000

 

 

 

 

57,000

 

Total cash and cash equivalents

 

 

603,653

 

 

 

 

419,930

 

 

 

 

194,654

 

 

 

 

178,630

 

 

 

 

151,844

 

Interest-bearing deposits in other financial institutions

 

 

600

 

 

 

 

600

 

 

 

 

600

 

 

 

 

600

 

 

 

 

600

 

Investment securities available for sale

 

 

339,568

 

 

 

 

281,582

 

 

 

 

210,867

 

 

 

 

214,662

 

 

 

 

185,756

 

Investment securities held to maturity

 

 

6,664

 

 

 

 

6,668

 

 

 

 

7,174

 

 

 

 

7,569

 

 

 

 

7,615

 

Mortgage loans held for sale

 

 

9,246

 

 

 

 

37,675

 

 

 

 

49,963

 

 

 

 

23,886

 

 

 

 

15,479

 

Loans held for investment

 

 

2,709,206

 

 

 

 

2,715,205

 

 

 

 

2,706,766

 

 

 

 

2,755,153

 

 

 

 

2,594,620

 

Allowance for loan losses

 

 

(31,352

)

 

 

 

(30,795

)

 

 

 

(29,337

)

 

 

 

(26,634

)

 

 

 

(22,820

)

Net loans held for investment

 

 

2,677,854

 

 

 

 

2,684,410

 

 

 

 

2,677,429

 

 

 

 

2,728,519

 

 

 

 

2,571,800

 

Premises and equipment, net

 

 

27,039

 

 

 

 

27,093

 

 

 

 

27,103

 

 

 

 

24,237

 

 

 

 

23,965

 

Federal Home Loan Bank (FHLB) stock

 

 

15,000

 

 

 

 

15,641

 

 

 

 

15,641

 

 

 

 

15,641

 

 

 

 

15,641

 

Cash surrender value of life insurance

 

 

55,325

 

 

 

 

35,308

 

 

 

 

35,121

 

 

 

 

34,930

 

 

 

 

34,736

 

Goodwill

 

 

69,243

 

 

 

 

69,243

 

 

 

 

69,243

 

 

 

 

69,243

 

 

 

 

69,209

 

Servicing assets

 

 

12,558

 

 

 

 

13,264

 

 

 

 

13,965

 

 

 

 

14,724

 

 

 

 

15,595

 

Core deposit intangibles

 

 

4,608

 

 

 

 

4,895

 

 

 

 

5,196

 

 

 

 

5,519

 

 

 

 

5,876

 

Right-of-use assets- operating leases

 

 

25,050

 

 

 

 

25,500

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest and other assets

 

 

44,230

 

 

 

 

42,490

 

 

 

 

43,116

 

 

 

 

41,416

 

 

 

 

38,065

 

Total assets

 

$

3,890,638

 

 

 

$

3,664,299

 

 

 

$

3,350,072

 

 

 

$

3,359,576

 

 

 

$

3,136,181

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

940,041

 

 

 

$

787,439

 

 

 

$

617,206

 

 

 

$

642,332

 

 

 

$

574,553

 

Savings, NOW and money market accounts

 

 

858,597

 

 

 

 

791,486

 

 

 

 

731,084

 

 

 

 

654,378

 

 

 

 

601,941

 

Time deposits

 

 

1,271,287

 

 

 

 

1,242,368

 

 

 

 

1,286,838

 

 

 

 

1,315,038

 

 

 

 

1,260,026

 

Total deposits

 

 

3,069,925

 

 

 

 

2,821,293

 

 

 

 

2,635,128

 

 

 

 

2,611,748

 

 

 

 

2,436,520

 

Reserve for unfunded commitments

 

 

1,216

 

 

 

 

1,320

 

 

 

 

1,383

 

 

 

 

1,129

 

 

 

 

1,030

 

FHLB advances

 

 

150,000

 

 

 

 

150,000

 

 

 

 

150,000

 

 

 

 

190,000

 

 

 

 

150,000

 

Long-term debt, net of debt issuance costs

 

 

172,718

 

 

 

 

172,581

 

 

 

 

104,391

 

 

 

 

104,305

 

 

 

 

104,220

 

Subordinated debentures

 

 

14,393

 

 

 

 

14,338

 

 

 

 

14,283

 

 

 

 

14,229

 

 

 

 

14,174

 

Lease liabilities - operating leases

 

 

25,798

 

 

 

 

26,199

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

14,263

 

 

 

 

42,900

 

 

 

 

16,399

 

 

 

 

16,749

 

 

 

 

16,212

 

Total liabilities

 

 

3,448,313

 

 

 

 

3,228,631

 

 

 

 

2,921,584

 

 

 

 

2,938,160

 

 

 

 

2,722,156

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder's equity

 

 

442,086

 

 

 

 

435,746

 

 

 

 

427,287

 

 

 

 

420,329

 

 

 

 

412,827

 

Non-controlling interest

 

 

72

 

 

 

 

72

 

 

 

 

72

 

 

 

 

72

 

 

 

 

72

 

Accumulated other comprehensive (loss) income - Net of tax

 

 

167

 

 

 

 

(150

)

 

 

 

1,129

 

 

 

 

1,015

 

 

 

 

1,126

 

Total shareholders' equity

 

 

442,325

 

 

 

 

435,668

 

 

 

 

428,488

 

 

 

 

421,416

 

 

 

 

414,025

 

Total liabilities and shareholders’ equity

 

$

3,890,638

 

 

 

$

3,664,299

 

 

 

$

3,350,072

 

 

 

$

3,359,576

 

 

 

$

3,136,181

 

 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts) 

 

 

 

For the Three Months Ended

 

 

 

June 30, 2021

 

 

March 31, 2021

 

 

June 30, 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

34,669

 

 

$

34,516

 

 

$

32,633

 

Interest on interest-bearing deposits

 

 

125

 

 

 

48

 

 

 

74

 

Interest on investment securities

 

 

794

 

 

 

627

 

 

 

887

 

Dividend income on FHLB stock

 

 

225

 

 

 

192

 

 

 

187

 

Interest on federal funds sold and other

 

 

158

 

 

 

157

 

 

 

322

 

Total interest income

 

 

35,971

 

 

 

35,540

 

 

 

34,103

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

708

 

 

 

698

 

 

 

782

 

Interest on time deposits

 

 

2,410

 

 

 

2,964

 

 

 

5,933

 

Interest on subordinated debentures and long term debt

 

 

2,356

 

 

 

1,958

 

 

 

1,915

 

Interest on other borrowed funds

 

 

440

 

 

 

435

 

 

 

439

 

Total interest expense

 

 

5,914

 

 

 

6,055

 

 

 

9,069

 

Net interest income before provision for loan losses

 

 

30,057

 

 

 

29,485

 

 

 

25,034

 

Provision for loan losses

 

 

628

 

 

 

1,500

 

 

 

3,009

 

Net interest income after provision for loan losses

 

 

29,429

 

 

 

27,985

 

 

 

22,025

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges, fees and other

 

 

1,374

 

 

 

1,410

 

 

 

1,065

 

Gain on sale of loans

 

 

2,572

 

 

 

3,841

 

 

 

81

 

Loan servicing fees, net of amortization

 

 

118

 

 

 

246

 

 

 

708

 

Recoveries on loans acquired in business combinations

 

 

5

 

 

 

5

 

 

 

5

 

Unrealized (loss) on equity investments

 

 

(35

)

 

 

(20

)

 

 

 

(Loss) gain on derivatives

 

 

(80

)

 

 

225

 

 

 

 

Increase in cash surrender value of life insurance

 

 

217

 

 

 

187

 

 

 

191

 

Gain on sale of securities

 

 

 

 

 

 

 

 

158

 

Total noninterest income

 

 

4,171

 

 

 

5,894

 

 

 

2,208

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,742

 

 

 

9,242

 

 

 

8,103

 

Occupancy and equipment expenses

 

 

2,135

 

 

 

2,242

 

 

 

2,527

 

Data processing

 

 

1,231

 

 

 

1,440

 

 

 

882

 

Legal and professional

 

 

536

 

 

 

805

 

 

 

670

 

Office expenses

 

 

272

 

 

 

255

 

 

 

337

 

Marketing and business promotion

 

 

231

 

 

 

184

 

 

 

111

 

Insurance and regulatory assessments

 

 

354

 

 

 

348

 

 

 

234

 

Core deposit premium

 

 

287

 

 

 

301

 

 

 

357

 

OREO expenses

 

 

4

 

 

 

5

 

 

 

14

 

Merger expenses

 

 

17

 

 

 

42

 

 

 

276

 

Other expenses

 

 

871

 

 

 

928

 

 

 

1,308

 

Total noninterest expense

 

 

14,680

 

 

 

15,792

 

 

 

14,819

 

Income before income taxes

 

 

18,920

 

 

 

18,087

 

 

 

9,414

 

Income tax expense

 

 

5,540

 

 

 

5,631

 

 

 

2,901

 

Net income

 

$

13,380

 

 

$

12,456

 

 

$

6,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.69

 

 

$

0.64

 

 

$

0.33

 

Diluted

 

$

0.67

 

 

$

0.63

 

 

$

0.33

 

Cash Dividends declared per common share

 

$

0.13

 

 

$

0.12

 

 

$

0.06

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,432,204

 

 

 

19,475,814

 

 

 

19,710,330

 

Diluted

 

 

19,874,969

 

 

 

19,812,841

 

 

 

19,806,304

 

 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the Six Months Ended

 

 

 

June 30, 2021

 

 

June 30, 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

69,185

 

 

$

64,909

 

Interest on interest-earning deposits

 

 

173

 

 

 

525

 

Interest on investment securities

 

 

1,421

 

 

 

1,708

 

Dividend income on FHLB stock

 

 

417

 

 

 

189

 

Interest on federal funds sold and other

 

 

315

 

 

 

800

 

Total interest income

 

 

71,511

 

 

 

68,131

 

Interest expense:

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

1,406

 

 

 

2,025

 

Interest on time deposits

 

 

5,374

 

 

 

13,019

 

Interest on subordinated debentures and long term debt

 

 

4,314

 

 

 

3,871

 

Interest on other borrowed funds

 

 

875

 

 

 

589

 

Total interest expense

 

 

11,969

 

 

 

19,504

 

Net interest income

 

 

59,542

 

 

 

48,627

 

Provision for loan losses

 

 

2,128

 

 

 

4,954

 

Net interest income after provision for loans losses

 

 

57,414

 

 

 

43,673

 

Noninterest income:

 

 

 

 

 

 

 

 

Service charges, fees and other

 

 

2,784

 

 

 

2,144

 

Gain on sale of loans

 

 

6,413

 

 

 

2,792

 

Loan servicing fees, net of amortization

 

 

364

 

 

 

1,300

 

Recoveries on loans acquired in business combinations

 

 

10

 

 

 

47

 

Unrealized (loss) on equity investments

 

 

(55

)

 

 

 

Gain on derivatives

 

 

145

 

 

 

 

Increase in cash surrender value of life insurance

 

 

404

 

 

 

382

 

Gain on sale of securities

 

 

 

 

 

158

 

Total noninterest income

 

 

10,065

 

 

 

6,823

 

Noninterest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

17,984

 

 

 

17,608

 

Occupancy and equipment expenses

 

 

4,377

 

 

 

4,931

 

Data processing

 

 

2,671

 

 

 

2,024

 

Legal and professional

 

 

1,341

 

 

 

1,274

 

Office expenses

 

 

527

 

 

 

660

 

Marketing and business promotion

 

 

415

 

 

 

325

 

Insurance and regulatory assessments

 

 

702

 

 

 

411

 

Core deposit premium

 

 

588

 

 

 

714

 

OREO expenses

 

 

9

 

 

 

28

 

Merger expenses

 

 

59

 

 

 

679

 

Other expenses

 

 

1,799

 

 

 

2,428

 

Total noninterest expense

 

 

30,472

 

 

 

31,082

 

Income before income taxes

 

 

37,007

 

 

 

19,414

 

Income tax expense

 

 

11,171

 

 

 

6,153

 

Net income

 

$

25,836

 

 

$

13,261

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

Basic

 

$

1.32

 

 

$

0.67

 

Diluted

 

$

1.30

 

 

$

0.66

 

Cash Dividends declared per common share

 

$

0.25

 

 

$

0.12

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,453,889

 

 

 

19,841,093

 

Diluted

 

 

19,844,077

 

 

 

20,036,316

 

 

RBB BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND NET INTEREST INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the three months ended

 

 

 

June 30, 2021

 

 

March 31, 2021

 

 

June 30, 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)

 

$

582,554

 

 

$

508

 

 

 

0.35

%

 

$

215,230

 

 

$

397

 

 

 

0.75

%

 

$

231,943

 

 

$

583

 

 

 

1.01

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

328,004

 

 

 

751

 

 

 

0.92

%

 

 

239,768

 

 

 

571

 

 

 

0.97

%

 

 

171,298

 

 

 

823

 

 

 

1.93

%

Held to maturity (2)

 

 

6,667

 

 

 

60

 

 

 

3.61

%

 

 

7,000

 

 

 

64

 

 

 

3.71

%

 

 

7,661

 

 

 

72

 

 

 

3.78

%

Mortgage loans held for sale

 

 

21,033

 

 

 

173

 

 

 

3.30

%

 

 

54,021

 

 

 

411

 

 

 

3.09

%

 

 

25,130

 

 

 

303

 

 

 

4.85

%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,292,145

 

 

 

29,794

 

 

 

5.21

%

 

 

2,307,431

 

 

 

29,521

 

 

 

5.19

%

 

 

2,147,646

 

 

 

28,216

 

 

 

5.28

%

Commercial

 

 

388,049

 

 

 

4,702

 

 

 

4.86

%

 

 

384,442

 

 

 

4,584

 

 

 

4.84

%

 

 

364,189

 

 

 

4,114

 

 

 

4.54

%

Total loans

 

 

2,680,194

 

 

 

34,496

 

 

 

5.16

%

 

 

2,691,873

 

 

 

34,105

 

 

 

5.14

%

 

 

2,511,835

 

 

 

32,330

 

 

 

5.18

%

Total earning assets

 

 

3,618,452

 

 

$

35,988

 

 

 

3.99

%

 

 

3,207,892

 

 

$

35,548

 

 

 

4.49

%

 

 

2,947,867

 

 

$

34,111

 

 

 

4.65

%

Noninterest-earning assets

 

 

230,049

 

 

 

 

 

 

 

 

 

 

 

228,002

 

 

 

 

 

 

 

 

 

 

 

206,833

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,848,501

 

 

 

 

 

 

 

 

 

 

$

3,435,894

 

 

 

 

 

 

 

 

 

 

$

3,154,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

66,777

 

 

$

45

 

 

 

0.27

%

 

$

64,592

 

 

$

44

 

 

 

0.28

%

 

$

57,547

 

 

$

60

 

 

 

0.42

%

Money Market

 

 

640,026

 

 

 

628

 

 

 

0.39

%

 

 

579,347

 

 

 

623

 

 

 

0.44

%

 

 

404,480

 

 

 

691

 

 

 

0.69

%

Saving deposits

 

 

140,418

 

 

 

35

 

 

 

0.10

%

 

 

131,151

 

 

 

31

 

 

 

0.10

%

 

 

123,868

 

 

 

31

 

 

 

0.10

%

Time deposits, less than $250,000

 

 

657,494

 

 

 

1,163

 

 

 

0.71

%

 

 

663,029

 

 

 

1,496

 

 

 

0.92

%

 

 

725,142

 

 

 

3,143

 

 

 

1.74

%

Time deposits, $250,000 and over

 

 

604,429

 

 

 

1,247

 

 

 

0.83

%

 

 

593,981

 

 

 

1,468

 

 

 

1.00

%

 

 

589,090

 

 

 

2,790

 

 

 

1.90

%

Total interest-bearing deposits

 

 

2,109,144

 

 

 

3,118

 

 

 

0.59

%

 

 

2,032,100

 

 

 

3,662

 

 

 

0.73

%

 

 

1,900,127

 

 

 

6,715

 

 

 

1.42

%

FHLB advances

 

 

150,000

 

 

 

440

 

 

 

1.18

%

 

 

150,000

 

 

 

435

 

 

 

1.18

%

 

 

150,000

 

 

 

439

 

 

 

1.18

%

Long-term debt

 

 

172,622

 

 

 

2,206

 

 

 

5.13

%

 

 

111,739

 

 

 

1,808

 

 

 

6.56

%

 

 

104,168

 

 

 

1,747

 

 

 

6.75

%

Subordinated debentures

 

 

14,357

 

 

 

150

 

 

 

4.19

%

 

 

14,302

 

 

 

150

 

 

 

4.25

%

 

 

14,141

 

 

 

168

 

 

 

4.78

%

Total interest-bearing liabilities

 

 

2,446,123

 

 

 

5,914

 

 

 

0.97

%

 

 

2,308,141

 

 

 

6,055

 

 

 

1.06

%

 

 

2,168,436

 

 

 

9,069

 

 

 

1.68

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

913,442

 

 

 

 

 

 

 

 

 

 

 

653,674

 

 

 

 

 

 

 

 

 

 

 

557,903

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

46,549

 

 

 

 

 

 

 

 

 

 

 

40,118

 

 

 

 

 

 

 

 

 

 

 

15,509

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

959,991

 

 

 

 

 

 

 

 

 

 

 

693,792

 

 

 

 

 

 

 

 

 

 

 

573,412

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

442,387

 

 

 

 

 

 

 

 

 

 

 

433,960

 

 

 

 

 

 

 

 

 

 

 

412,852

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

3,848,501

 

 

 

 

 

 

 

 

 

 

$

3,435,894

 

 

 

 

 

 

 

 

 

 

$

3,154,700

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

30,074

 

 

 

3.02

%

 

 

 

 

 

$

29,493

 

 

 

3.43

%

 

 

 

 

 

$

25,042

 

 

 

2.97

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.33

%

 

 

 

 

 

 

 

 

 

 

3.73

%

 

 

 

 

 

 

 

 

 

 

3.42

%


(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 six months ended

 

 

 

June 30, 2021

 

 

June 30, 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)

 

$

399,907

 

 

$

905

 

 

 

0.46

%

 

$

240,755

 

 

$

1,514

 

 

 

1.26

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

284,129

 

 

 

1,323

 

 

 

0.94

%

 

 

154,936

 

 

 

1,578

 

 

 

2.05

%

Held to maturity (2)

 

 

6,832

 

 

 

126

 

 

 

3.72

%

 

 

7,839

 

 

 

147

 

 

 

3.77

%

Mortgage loans held for sale

 

 

37,436

 

 

 

584

 

 

 

3.15

%

 

 

51,595

 

 

 

1,284

 

 

 

5.00

%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,299,746

 

 

 

59,315

 

 

 

5.20

%

 

 

2,077,467

 

 

 

54,644

 

 

 

5.29

%

Commercial

 

 

386,256

 

 

 

9,286

 

 

 

4.85

%

 

 

350,869

 

 

 

8,981

 

 

 

5.15

%

Total loans

 

 

2,686,002

 

 

 

68,601

 

 

 

5.15

%

 

 

2,428,336

 

 

 

63,625

 

 

 

5.27

%

Total earning assets

 

 

3,414,306

 

 

$

71,539

 

 

 

4.23

%

 

 

2,883,461

 

 

$

68,148

 

 

 

4.75

%

Noninterest-earning assets

 

 

229,032

 

 

 

 

 

 

 

 

 

 

 

209,699

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,643,338

 

 

 

 

 

 

 

 

 

 

$

3,093,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

65,690

 

 

$

88

 

 

 

0.27

%

 

$

50,692

 

 

$

102

 

 

 

0.40

%

Money Market

 

 

609,854

 

 

 

1,251

 

 

 

0.41

%

 

 

418,243

 

 

 

1,837

 

 

 

0.88

%

Saving deposits

 

 

135,810

 

 

 

67

 

 

 

0.10

%

 

 

119,410

 

 

 

86

 

 

 

0.14

%

Time deposits, less than $250,000

 

 

660,246

 

 

 

2,659

 

 

 

0.81

%

 

 

731,448

 

 

 

6,869

 

 

 

1.89

%

Time deposits, $250,000 and over

 

 

599,234

 

 

 

2,716

 

 

 

0.91

%

 

 

604,987

 

 

 

6,150

 

 

 

2.04

%

Total interest-bearing deposits

 

 

2,070,834

 

 

 

6,781

 

 

 

0.66

%

 

 

1,924,780

 

 

 

15,044

 

 

 

1.57

%

FHLB advances

 

 

150,000

 

 

 

875

 

 

 

1.18

%

 

 

100,989

 

 

 

589

 

 

 

1.17

%

Long-term debt

 

 

142,349

 

 

 

4,015

 

 

 

5.69

%

 

 

104,125

 

 

 

3,495

 

 

 

6.75

%

Subordinated debentures

 

 

14,330

 

 

 

298

 

 

 

4.19

%

 

 

14,234

 

 

 

376

 

 

 

5.31

%

Total interest-bearing liabilities

 

 

2,377,513

 

 

$

11,969

 

 

 

1.02

%

 

 

2,144,128

 

 

$

19,504

 

 

 

1.83

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

784,276

 

 

 

 

 

 

 

 

 

 

 

521,729

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

43,352

 

 

 

 

 

 

 

 

 

 

 

15,282

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

827,628

 

 

 

 

 

 

 

 

 

 

 

537,011

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

438,197

 

 

 

 

 

 

 

 

 

 

 

412,021

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

3,643,338

 

 

 

 

 

 

 

 

 

 

$

3,093,160

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

59,570

 

 

 

3.21

%

 

 

 

 

 

$

48,644

 

 

 

2.92

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.52

%

 

 

 

 

 

 

 

 

 

 

3.39

%

 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the Three Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

2021

 

 

2021

 

 

2020

 

Per share data (common stock)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.69

 

 

$

0.64

 

 

$

0.33

 

Diluted

 

$

0.67

 

 

$

0.63

 

 

$

0.33

 

Dividends declared

 

$

0.13

 

 

$

0.12

 

 

$

0.06

 

Book value

 

$

22.86

 

 

$

22.31

 

 

$

20.97

 

Tangible book value

 

$

19.04

 

 

$

18.51

 

 

$

17.17

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,432,204

 

 

 

19,475,814

 

 

 

19,710,330

 

Diluted

 

 

19,874,969

 

 

 

19,812,841

 

 

 

19,806,304

 

Shares outstanding at period end

 

 

19,349,802

 

 

 

19,528,249

 

 

 

19,739,280

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

 

1.39

%

 

 

1.47

%

 

 

0.83

%

Return on average shareholders' equity, annualized

 

 

12.13

%

 

 

11.64

%

 

 

6.34

%

Return on average tangible common equity, annualized

 

 

14.57

%

 

 

14.05

%

 

 

7.77

%

Noninterest income to average assets, annualized

 

 

0.43

%

 

 

0.70

%

 

 

0.28

%

Noninterest expense to average assets, annualized

 

 

1.53

%

 

 

1.86

%

 

 

1.89

%

Yield on average earning assets

 

 

3.99

%

 

 

4.49

%

 

 

4.65

%

Cost of average total deposits

 

 

0.41

%

 

 

0.55

%

 

 

1.10

%

Cost of average interest-bearing deposits

 

 

0.59

%

 

 

0.73

%

 

 

1.42

%

Cost of average interest-bearing liabilities

 

 

0.97

%

 

 

1.06

%

 

 

1.68

%

Accretion on loans to average earning assets

 

 

0.02

%

 

 

0.06

%

 

 

0.14

%

Net interest spread

 

 

3.02

%

 

 

3.43

%

 

 

2.97

%

Net interest margin

 

 

3.33

%

 

 

3.73

%

 

 

3.42

%

Efficiency ratio

 

 

42.89

%

 

 

44.64

%

 

 

54.40

%

Common stock dividend payout ratio

 

 

18.84

%

 

 

18.75

%

 

 

18.18

%

 

 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the six months ended June 30,

 

 

 

2021

 

 

2020

 

Per share data (common stock)

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

Basic

 

$

1.32

 

 

$

0.67

 

Diluted

 

$

1.30

 

 

$

0.66

 

Dividends declared

 

$

0.25

 

 

$

0.12

 

Book value

 

$

22.86

 

 

$

20.97

 

Tangible book value

 

$

19.04

 

 

$

17.17

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,453,889

 

 

 

19,841,093

 

Diluted

 

 

19,844,077

 

 

 

20,036,316

 

Shares outstanding at period end

 

 

19,349,802

 

 

 

19,739,280

 

Performance ratios

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

 

1.43

%

 

 

0.86

%

Return on average shareholders' equity, annualized

 

 

11.89

%

 

 

6.47

%

Return on average tangible common equity, annualized

 

 

14.31

%

 

 

7.95

%

Noninterest income to average assets, annualized

 

 

0.56

%

 

 

0.44

%

Noninterest expense to average assets, annualized

 

 

1.69

%

 

 

2.02

%

Yield on average earning assets

 

 

4.23

%

 

 

4.75

%

Cost of average deposits

 

 

0.48

%

 

 

1.24

%

Cost of average interest-bearing deposits

 

 

0.66

%

 

 

1.57

%

Cost of average interest-bearing liabilities

 

 

1.02

%

 

 

1.83

%

Accretion on loans to average earning assets

 

 

0.04

%

 

 

0.13

%

Net interest spread

 

 

3.21

%

 

 

2.92

%

Net interest margin

 

 

3.52

%

 

 

3.39

%

Efficiency ratio

 

 

43.78

%

 

 

56.05

%

Common stock dividend payout ratio

 

 

18.94

%

 

 

26.87

%

 

 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

As of

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

2021

 

 

2021

 

 

2020

 

Loan to deposit ratio

 

 

88.25

%

 

 

96.24

%

 

 

106.49

%

Core deposits / total deposits

 

 

80.04

%

 

 

78.97

%

 

 

76.84

%

Net non-core funding dependence ratio

 

 

0.87

%

 

 

4.27

%

 

 

9.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days past due

 

$

5,449

 

 

$

10,653

 

 

$

23,872

 

Loans 30-89 days past due to total loans

 

 

0.20

%

 

 

0.39

%

 

 

0.92

%

Nonperforming loans

 

$

19,243

 

 

$

19,911

 

 

$

17,217

 

Nonperforming loans to total loans

 

 

0.71

%

 

 

0.73

%

 

 

0.66

%

Nonperforming assets

 

$

19,536

 

 

$

20,204

 

 

$

17,510

 

Nonperforming assets to total assets

 

 

0.50

%

 

 

0.55

%

 

 

0.56

%

Allowance for loan losses to total loans

 

 

1.16

%

 

 

1.13

%

 

 

0.88

%

Allowance for loan losses to nonperforming loans

 

 

162.93

%

 

 

154.66

%

 

 

132.54

%

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

 

 

0.01

%

 

 

0.01

%

 

 

0.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory and other capital ratios—Company

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

9.65

%

 

 

10.07

%

 

 

11.07

%

Tier 1 leverage ratio

 

 

10.20

%

 

 

11.30

%

 

 

11.48

%

Tier 1 common capital to risk-weighted assets

 

 

14.76

%

 

 

14.53

%

 

 

14.87

%

Tier 1 capital to risk-weighted assets

 

 

15.33

%

 

 

15.11

%

 

 

15.49

%

Total capital to risk-weighted assets

 

 

23.48

%

 

 

23.27

%

 

 

21.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios—Bank only

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

12.34

%

 

 

13.44

%

 

 

14.14

%

Tier 1 common capital to risk-weighted assets

 

 

18.58

%

 

 

17.96

%

 

 

19.09

%

Tier 1 capital to risk-weighted assets

 

 

18.58

%

 

 

17.96

%

 

 

19.09

%

Total capital to risk-weighted assets

 

 

19.83

%

 

 

19.21

%

 

 

20.13

%

 

 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

2nd Quarter

 

 

1st Quarter

 

 

4th Quarter

 

 

3rd Quarter

 

 

2nd Quarter

 

Quarterly Consolidated Statements of Earnings

 

2021

 

 

2021

 

 

2020

 

 

2020

 

 

2020

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

34,669

 

 

$

34,516

 

 

$

34,832

 

 

$

34,153

 

 

$

32,633

 

Investment securities and other

 

 

1,302

 

 

 

1,024

 

 

 

1,032

 

 

 

972

 

 

 

1,470

 

Total interest income

 

 

35,971

 

 

 

35,540

 

 

 

35,864

 

 

 

35,125

 

 

 

34,103

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

3,118

 

 

 

3,662

 

 

 

4,636

 

 

 

5,525

 

 

 

6,715

 

Interest on subordinated debentures and other

 

 

2,356

 

 

 

1,958

 

 

 

1,901

 

 

 

1,905

 

 

 

1,915

 

Other borrowings

 

 

440

 

 

 

435

 

 

 

450

 

 

 

444

 

 

 

439

 

Total interest expense

 

 

5,914

 

 

 

6,055

 

 

 

6,987

 

 

 

7,874

 

 

 

9,069

 

Net interest income before provision for loan losses

 

 

30,057

 

 

 

29,485

 

 

 

28,877

 

 

 

27,251

 

 

 

25,034

 

Provision for loan losses

 

 

628

 

 

 

1,500

 

 

 

3,008

 

 

 

3,861

 

 

 

3,009

 

Net interest income after provision for loan losses

 

 

29,429

 

 

 

27,985

 

 

 

25,869

 

 

 

23,390

 

 

 

22,025

 

Noninterest income

 

 

4,171

 

 

 

5,894

 

 

 

4,490

 

 

 

2,727

 

 

 

2,208

 

Noninterest expense

 

 

14,680

 

 

 

15,792

 

 

 

14,453

 

 

 

13,978

 

 

 

14,819

 

Earnings before income taxes

 

 

18,920

 

 

 

18,087

 

 

 

15,906

 

 

 

12,139

 

 

 

9,414

 

Income taxes

 

 

5,540

 

 

 

5,631

 

 

 

4,759

 

 

 

3,619

 

 

 

2,901

 

Net income

 

$

13,380

 

 

$

12,456

 

 

$

11,147

 

 

$

8,520

 

 

$

6,513

 

Net income per common share - basic

 

$

0.69

 

 

$

0.64

 

 

$

0.57

 

 

$

0.43

 

 

$

0.33

 

Net income per common share - diluted

 

$

0.67

 

 

$

0.63

 

 

$

0.56

 

 

$

0.43

 

 

$

0.33

 

Cash dividends declared per common share

 

$

0.13

 

 

$

0.12

 

 

$

0.09

 

 

$

0.06

 

 

$

0.06

 

Cash dividends declared on common shares

 

$

2,540

 

 

$

2,347

 

 

$

1,777

 

 

$

1,184

 

 

$

1,184

 

Yield on average assets, annualized

 

 

1.39

%

 

 

1.47

%

 

 

1.33

%

 

 

1.05

%

 

 

0.83

%

Yield on average earning assets

 

 

3.99

%

 

 

4.49

%

 

 

4.55

%

 

 

4.63

%

 

 

4.65

%

Cost of average deposits

 

 

0.41

%

 

 

0.55

%

 

 

0.71

%

 

 

0.87

%

 

 

1.10

%

Cost of average interest-bearing deposits

 

 

0.59

%

 

 

0.73

%

 

 

0.93

%

 

 

1.14

%

 

 

1.42

%

Cost of average interest-bearing liabilities

 

 

0.97

%

 

 

1.06

%

 

 

1.23

%

 

 

1.43

%

 

 

1.68

%

Accretion on loans to average earning assets

 

 

0.02

%

 

 

0.06

%

 

 

0.03

%

 

 

0.08

%

 

 

0.16

%

Net interest margin

 

 

3.33

%

 

 

3.73

%

 

 

3.67

%

 

 

3.59

%

 

 

3.42

%

 

 

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 June 30,
2021

 

 

As of March 31,
2021

 

 

As of December 31,
2020

 

 

As of September 30,
2020

 

 

As of June 30,
2020

 

(dollars in thousands)

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

277,080

 

 

 

10.2

%

 

$

286,016

 

 

 

10.5

%

 

$

290,139

 

 

 

10.7

%

 

$

317,891

 

 

 

11.5

%

 

$

267,481

 

 

 

10.3

%

SBA

 

 

98,572

 

 

 

3.6

%

 

 

111,330

 

 

 

4.1

%

 

 

97,821

 

 

 

3.6

%

 

 

111,193

 

 

 

4.0

%

 

 

104,069

 

 

 

4.0

%

Construction and land development

 

 

236,965

 

 

 

8.7

%

 

 

209,727

 

 

 

7.7

%

 

 

186,723

 

 

 

6.9

%

 

 

183,569

 

 

 

6.7

%

 

 

145,754

 

 

 

5.6

%

Commercial real estate (1)

 

 

1,102,467

 

 

 

40.7

%

 

 

1,063,104

 

 

 

39.2

%

 

 

1,003,637

 

 

 

37.1

%

 

 

975,187

 

 

 

35.4

%

 

 

900,302

 

 

 

34.7

%

Single-family residential mortgages

 

 

984,311

 

 

 

36.3

%

 

 

1,041,260

 

 

 

38.3

%

 

 

1,124,357

 

 

 

41.5

%

 

 

1,163,982

 

 

 

42.2

%

 

 

1,174,927

 

 

 

45.3

%

Other loans

 

 

9,811

 

 

 

0.5

%

 

 

3,768

 

 

 

0.2

%

 

 

4,089

 

 

 

0.2

%

 

 

3,331

 

 

 

0.2

%

 

 

2,087

 

 

 

0.1

%

Total loans (2)

 

$

2,709,206

 

 

 

100.0

%

 

$

2,715,205

 

 

 

100.0

%

 

$

2,706,766

 

 

 

100.0

%

 

$

2,755,153

 

 

 

100.0

%

 

$

2,594,620

 

 

 

100.0

%

Allowance for loan losses

 

 

(31,352

)

 

 

 

 

 

 

(30,795

)

 

 

 

 

 

 

(29,337

)

 

 

 

 

 

 

(26,634

)

 

 

 

 

 

 

(22,820

)

 

 

 

 

Total loans, net

 

$

2,677,854

 

 

 

 

 

 

$

2,684,410

 

 

 

 

 

 

$

2,677,429

 

 

 

 

 

 

$

2,728,519

 

 

 

 

 

 

$

2,571,800

 

 

 

 

 


(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

 

 

 

Six Months Ended

 

Change in Allowance for Loan Losses

 

June 30,

 

 

 

June 30,

 

(dollars in thousands)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Beginning balance

 

$

30,795

 

 

 

$

20,130

 

 

 

$

29,337

 

 

 

$

18,816

 

Additions to the allowance charged to expense

 

 

628

 

 

 

 

3,009

 

 

 

 

2,128

 

 

 

 

4,954

 

Net charge-offs on loans

 

 

(71

)

 

 

 

(319

)

 

 

 

(113

)

 

 

 

(950

)

Ending balance

 

$

31,352

 

 

 

$

22,820

 

 

 

$

31,352

 

 

 

$

22,820

 

 

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 June 30, 2021 and 2020 and March 31, 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

June 30, 2021

 

 

 

March 31, 2021

 

 

 

June 30, 2020

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

442,325

 

 

 

$

435,668

 

 

 

$

414,025

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,243

)

 

 

 

(69,243

)

 

 

 

(69,209

)

Core deposit intangible

 

 

(4,608

)  

 

 

(4,895

)

 

 

 

(5,876

)

Tangible common equity

 

$

368,474

 

 

 

$

361,530

 

 

 

$

338,940

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets-GAAP

 

$

3,890,638

 

 

 

$

3,664,299

 

 

 

$

3,136,181

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,243

)

 

 

 

(69,243

)

 

 

 

(69,209

)

Core deposit intangible

 

 

(4,608

)  

 

 

(4,895

)

 

 

 

(5,876

)

Tangible assets

 

$

3,816,787

 

 

 

$

3,590,161

 

 

 

$

3,061,096

 

Common shares outstanding

 

$

19,349,802

 

 

 

 

19,528,249

 

 

 

 

19,739,280

 

Tangible common equity to tangible assets ratio

 

 

9.65

%

 

 

 

10.07

%

 

 

 

11.07

%

Book value per share

 

$

22.86

 

 

 

$

22.31

 

 

 

$

20.97

 

Tangible book value per share

 

$

19.04

 

 

 

$

18.51

 

 

 

$

17.17

 

 

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

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

 

Source: RBB Bancorp