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Press Release

RBB Bancorp Reports Third Quarter Earnings for 2021

October 25, 2021 at 4:05 PM EDT

Conference Call and Webcast Scheduled for Tuesday, October 26, 2021 at 11:00 a.m. Pacific Time/2:00 p.m. Eastern Time Third Quarter 2021 Highlights

  • Reported record net income of $15.4 million, or $0.77 diluted earnings per share, increased $2.0 million, or 14.8%, from the prior quarter and increased $6.8 million, or 80.3%, from the third quarter of 2020
  • Loan growth of $137.1 million, or 20.0% annualized, from the end of the prior quarter
  • Declared quarterly cash dividend of $0.13 per common share
  • Entered into an agreement in July, received regulatory approval in September to buy the Honolulu, Hawaii branch office of Bank of the Orient, which is expected to close by mid-January 2022

LOS ANGELES--(BUSINESS WIRE)--Oct. 25, 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 September 30, 2021.

The Company reported record net income of $15.4 million, or $0.77 diluted earnings per share, for the three months ended September 30, 2021, compared to net income of $13.4 million, or $0.67 diluted earnings per share, and $8.5 million, or $0.43 diluted earnings per share, for the three months ended June 30, 2021 and September 30, 2020, respectively. Third quarter results included the impact of a $1.8 million CDFI grant that increased diluted earnings per share by approximately $0.07.

"Our differentiated business model continued to outperform in the third quarter as we reported record diluted earnings per share of $0.77 and 20% annualized loan growth,” said Alan Thian, President and CEO of RBB Bancorp. “In addition to our financial performance and growth, continued pricing discipline and focus on our cost of deposits has kept our net interest margin stable in the first 9 months of 2021 versus the same period in 2020. We are also pleased that our efforts to support the communities in which we operate were recognized by the US Treasury which awarded Royal Business Bank with a $1.8 million CDFI grant to facilitate a rapid response to the economic impacts of the COVID-19 pandemic in distressed and underserved communities.”

"I am very pleased with Royal Business Bank’s record financial performance in the third quarter," said Dr. James Kao, Chairman of RBB Bancorp. “And I am very proud that RBB’s success in community development has been recognized with a CDFI grant and with the appointment of Alan to the Community Development Advisory Board.”

Key Performance Ratios

Net income of $15.4 million for the third quarter of 2021 produced an annualized return on average assets ("ROA") of 1.54%, an annualized return on average tangible common shareholders' equity ("ROTCE") of 16.17%, and an annualized return on average shareholders' equity ("ROE") of 13.52%. This compares to 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% for the second quarter of 2021. Third quarter results included the impact of a $1.8 million CDFI grant that increased ROA by 0.03%, ROTCE by 0.35%, and ROE by 0.29%. The efficiency ratio for the third quarter of 2021 was 38.87%, compared to 42.89% for the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $31.6 million for the third quarter of 2021, compared to $30.1 million for the second quarter of 2021. The $1.5 million increase was primarily attributable to higher interest income due to a $92.7 million increase in average earning assets, partially offset by an $11.3 million increase in average interest-bearing liabilities. Accretion of purchase discounts from prior acquisitions contributed $289,000 to net interest income in the third quarter of 2021, compared to $183,000 in the second quarter of 2021.

Compared to the third quarter of 2020, net interest income, before provision for loan losses, increased $4.3 million from $27.3 million. The increase was primarily attributable to a $691.5 million increase in average earning assets, partially offset by a $262.0 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 3.38% for the third quarter of 2021, an increase of 5 basis points from 3.33% in the second quarter of 2021. The increase was primarily attributable to a $89.9 million increase in average non-interest bearing deposits, combined with an 8 basis point decrease in the cost of average interest-bearing liabilities, which was partially offset by a 2 basis point decrease in the yield on average earning assets. Loan discount accretion contributed 3 basis points to the net interest margin in the third quarter of 2021, compared to 2 basis points in the second quarter of 2021.

Noninterest Income

Noninterest income was $5.5 million for the third quarter of 2021, an increase of $1.4 million from $4.2 million in the second quarter of 2021. The increase was primarily driven by a $1.8 million grant under the US Treasury’s Rapid Response Program, partially offset by a $782,000 decrease in gain on sale of loans during the quarter. The Company sold $35.7 million fewer loans in the third quarter than in the prior quarter primarily due to selling fewer FNMA loans.

The Company sold $36.6 million in FNMA qualified mortgage loans for a net gain of $1.3 million and sold no non-qualified mortgage loans during the third quarter of 2021. This compared to $58.9 million in FNMA qualified mortgage loans sold for a net gain of $1.4 million and $13.4 million in non-qualified mortgage loans to private investors for a gain of $389,000 during the second quarter of 2021. The Company sold $5.9 million in SBA loans during the third quarter of 2021 for a net gain of $553,000, compared to $5.9 million SBA loans sold for a net gain of $747,000 during the second quarter of 2021.

Compared to the third quarter of 2020, noninterest income increased by $2.8 million from $2.7 million. The increase was primarily attributable to an increase of $1.8 million grant under the US Treasury’s Rapid Response Program and an increase of $1.0 million in gain on loan sales.

Noninterest Expense

Noninterest expense for the third quarter of 2021 was $14.4 million, compared to $14.7 million for the second quarter of 2021. The $260,000 decrease was primarily attributable to a reversal of impairment write-down on mortgage servicing assets of $416,000 and a $266,000 decrease in data processing expense, partially offset by a $210,000 increase in legal and professional expenses and a $93,000 increase in marketing and business promotion expense.

Noninterest expense increased from $14.0 million in the third quarter of 2020. The $444,000 increase was primarily due to a $1.2 million increase in salaries and employee benefits and a $193,000 increase in marketing and business promotion expenses. These were partially offset by a $475,000 decrease in mortgage servicing assets impairment write-down, a $235,000 decrease in data processing expenses and a $171,000 decrease in occupancy and equipment expenses.

Income Taxes

The effective tax rate was 28.5% for the third quarter of 2021, 29.3% for the second quarter of 2021, and 29.8% for the third quarter of 2020. The Company recognized a tax benefit from stock option exercises of $534,000, $68,000 and zero for the third quarter of 2021, the second quarter of 2021, and the third quarter of 2020, respectively.

CDFI Rapid Response Program

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 was received in August 2021 after finalization of the contract between the Bank and the US Treasury which included various performance goals and measures that specify the use of the funds to provide affordable housing. The funds were disbursed for two loans that help provide affordable housing to underserved communities.

Loan Portfolio

Loans held for investment, net of deferred fees and discounts, totaled $2.84 billion as of September 30, 2021, an increase of $131.1 million from June 30, 2021, and an increase of $85.2 million from September 30, 2020. The increase from the prior quarter was primarily due to an increase in commercial real estate and construction & land development loans. Single-family residential mortgages decreased by $9.5 million net of payoffs, paydowns and loan sales. Commercial real estate loans increased by $103.2 million, construction and land development loans increased by $34.8 million, SBA loans decreased by $9.8 million (which included a $6.2 million decrease in PPP loans), commercial and industrial loans decreased by $693,000 and other loans increased by $13.2 million.

During the third quarter of 2021, single-family residential mortgage production was $112.0 million, payoffs and paydowns were $79.0 million, and single-family residential mortgage loan sales were $36.6 million. During the second quarter of 2021, single-family residential mortgage production was $107.9 million, payoffs and paydowns were $121.0 million, and loan sales were $72.3 million.

Mortgage loans held for sale were $15.2 million as of September 30, 2021, an increase of $5.9 million from $9.2 million at June 30, 2021 and a decrease of $8.7 million from $23.9 million as of September 30, 2020. The Company originated approximately $12.2 million in FNMA mortgage loans for sale for the third quarter of 2021, compared with $29.2 million during the prior quarter.

In the third quarter of 2021, SBA loan production was $22.7 million and total SBA loan sales were $5.9 million.

Deposits and Borrowings

Deposits were $3.0 billion at September 30, 2021, a decrease of $102.1 million from June 30, 2021, and an increase of $356.1 million from September 30, 2020, including brokered deposits. The decrease in total deposits from the prior quarter was primarily attributable to a decrease in noninterest-bearing demand deposits and time deposits. During the third quarter of 2021, noninterest-bearing deposits decreased by $115.3 million, interest-bearing non-maturity deposits increased by $72.9 million, and time deposits decreased by $59.8 million. As of September 30, 2021, time deposits included $2.4 million in brokered CDs, as compared to $17.4 million as of June 30, 2021 and $17.4 million as of September 30, 2020.

Asset Quality

Nonperforming assets totaled $14.5 million, or 0.38% of total assets at September 30, 2021, compared to $19.5 million, or 0.50%, of total assets at June 30, 2021. 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 third quarter of 2021, there were $317,000 in net charge-offs, compared to net charge-offs of $71,000 in the second quarter.

The Company recorded a provision for credit losses of $1.2 million for the third quarter of 2021, an increase from $628,000 in the prior quarter, primarily attributable to loan growth.

The allowance for loan losses totaled $32.2 million, or 1.13% of loans held for investment at September 30, 2021, compared with $31.4 million, or 1.16%, of total loans at June 30, 2021.

As of September 30, 2021, borrowers representing 167 loans totaling $23.0 million, or 0.80% 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 September 30, 2021.

As of October 15, 2021, the Company had one COVID-19 loan deferral in the amount of $241,000.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of September 30, 2021, the company had total assets of $3.8 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, October 26, 2021, to discuss the Company’s third quarter 2021 financial results.

To listen to the conference call, please dial 1-877-876-9174 or 1-785-424-1669, passcode RBBQ321. A replay of the call will be made available at 1-888-269-5324 or 1-402-220-7325 (no passcode required) approximately one hour after the conclusion of the call and will remain available through November 2, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

206,927

 

 

$

493,653

 

 

$

362,930

 

 

$

137,654

 

 

$

121,630

 

Federal funds sold and other cash equivalents

 

 

170,000

 

 

 

110,000

 

 

 

57,000

 

 

 

57,000

 

 

 

57,000

 

Total cash and cash equivalents

 

 

376,927

 

 

 

603,653

 

 

 

419,930

 

 

 

194,654

 

 

 

178,630

 

Interest-bearing deposits in other financial institutions

 

 

600

 

 

 

600

 

 

 

600

 

 

 

600

 

 

 

600

 

Investment securities available for sale

 

 

345,000

 

 

 

339,568

 

 

 

281,582

 

 

 

210,867

 

 

 

214,662

 

Investment securities held to maturity

 

 

6,258

 

 

 

6,664

 

 

 

6,668

 

 

 

7,174

 

 

 

7,569

 

Mortgage loans held for sale

 

 

15,188

 

 

 

9,246

 

 

 

37,675

 

 

 

49,963

 

 

 

23,886

 

Loans held for investment

 

 

2,840,354

 

 

 

2,709,206

 

 

 

2,715,205

 

 

 

2,706,766

 

 

 

2,755,153

 

Allowance for loan losses

 

 

(32,231

)

 

 

(31,352

)

 

 

(30,795

)

 

 

(29,337

)

 

 

(26,634

)

Net loans held for investment

 

 

2,808,123

 

 

 

2,677,854

 

 

 

2,684,410

 

 

 

2,677,429

 

 

 

2,728,519

 

Premises and equipment, net

 

 

27,157

 

 

 

27,039

 

 

 

27,093

 

 

 

27,103

 

 

 

24,237

 

Federal Home Loan Bank (FHLB) stock

 

 

15,000

 

 

 

15,000

 

 

 

15,641

 

 

 

15,641

 

 

 

15,641

 

Cash surrender value of life insurance

 

 

55,656

 

 

 

55,325

 

 

 

35,308

 

 

 

35,121

 

 

 

34,930

 

Goodwill

 

 

69,243

 

 

 

69,243

 

 

 

69,243

 

 

 

69,243

 

 

 

69,243

 

Servicing assets

 

 

12,141

 

 

 

12,558

 

 

 

13,264

 

 

 

13,965

 

 

 

14,724

 

Core deposit intangibles

 

 

4,327

 

 

 

4,608

 

 

 

4,895

 

 

 

5,196

 

 

 

5,519

 

Right-of-use assets- operating leases

 

 

23,735

 

 

 

25,050

 

 

 

25,500

 

 

 

 

 

 

 

Accrued interest and other assets

 

 

42,452

 

 

 

44,230

 

 

 

42,490

 

 

 

43,116

 

 

 

41,416

 

Total assets

 

$

3,801,807

 

 

$

3,890,638

 

 

$

3,664,299

 

 

$

3,350,072

 

 

$

3,359,576

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

824,771

 

 

$

940,041

 

 

$

787,439

 

 

$

617,206

 

 

$

642,332

 

Savings, NOW and money market accounts

 

 

931,517

 

 

 

858,597

 

 

 

791,486

 

 

 

731,084

 

 

 

654,378

 

Time deposits

 

 

1,211,525

 

 

 

1,271,287

 

 

 

1,242,368

 

 

 

1,286,838

 

 

 

1,315,038

 

Total deposits

 

 

2,967,813

 

 

 

3,069,925

 

 

 

2,821,293

 

 

 

2,635,128

 

 

 

2,611,748

 

Reserve for unfunded commitments

 

 

1,304

 

 

 

1,216

 

 

 

1,320

 

 

 

1,383

 

 

 

1,129

 

FHLB advances

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

 

190,000

 

Long-term debt, net of debt issuance costs

 

 

172,862

 

 

 

172,718

 

 

 

172,581

 

 

 

104,391

 

 

 

104,305

 

Subordinated debentures

 

 

14,447

 

 

 

14,393

 

 

 

14,338

 

 

 

14,283

 

 

 

14,229

 

Lease liabilities - operating leases

 

 

24,524

 

 

 

25,798

 

 

 

26,199

 

 

 

 

 

 

 

Accrued interest and other liabilities

 

 

14,833

 

 

 

14,263

 

 

 

42,900

 

 

 

16,399

 

 

 

16,749

 

Total liabilities

 

 

3,345,783

 

 

 

3,448,313

 

 

 

3,228,631

 

 

 

2,921,584

 

 

 

2,938,160

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder's equity

 

 

456,490

 

 

 

442,086

 

 

 

435,746

 

 

 

427,287

 

 

 

420,329

 

Non-controlling interest

 

 

72

 

 

 

72

 

 

 

72

 

 

 

72

 

 

 

72

 

Accumulated other comprehensive (loss) income - Net of tax

 

 

(538

)

 

 

167

 

 

 

(150

)

 

 

1,129

 

 

 

1,015

 

Total shareholders' equity

 

 

456,024

 

 

 

442,325

 

 

 

435,668

 

 

 

428,488

 

 

 

421,416

 

Total liabilities and shareholders equity

 

$

3,801,807

 

 

$

3,890,638

 

 

$

3,664,299

 

 

$

3,350,072

 

 

$

3,359,576

 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

For the Three Months Ended

 

 

 

September 30, 2021

 

 

June 30, 2021

 

 

September 30, 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

35,601

 

 

$

34,669

 

 

$

34,153

 

Interest on interest-bearing deposits

 

 

219

 

 

 

125

 

 

 

61

 

Interest on investment securities

 

 

889

 

 

 

794

 

 

 

621

 

Dividend income on FHLB stock

 

 

225

 

 

 

225

 

 

 

190

 

Interest on federal funds sold and other

 

 

174

 

 

 

158

 

 

 

100

 

Total interest income

 

 

37,108

 

 

 

35,971

 

 

 

35,125

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

697

 

 

 

708

 

 

 

779

 

Interest on time deposits

 

 

2,048

 

 

 

2,410

 

 

 

4,746

 

Interest on subordinated debentures and long term debt

 

 

2,342

 

 

 

2,356

 

 

 

1,905

 

Interest on other borrowed funds

 

 

445

 

 

 

440

 

 

 

444

 

Total interest expense

 

 

5,532

 

 

 

5,914

 

 

 

7,874

 

Net interest income before provision for loan losses

 

 

31,576

 

 

 

30,057

 

 

 

27,251

 

Provision for loan losses

 

 

1,196

 

 

 

628

 

 

 

3,861

 

Net interest income after provision for loan losses

 

 

30,380

 

 

 

29,429

 

 

 

23,390

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges, fees and other(1)

 

 

3,100

 

 

 

1,374

 

 

 

1,143

 

Gain on sale of loans

 

 

1,790

 

 

 

2,572

 

 

 

760

 

Loan servicing fees, net of amortization

 

 

62

 

 

 

118

 

 

 

546

 

Recoveries on loans acquired in business combinations

 

 

68

 

 

 

5

 

 

 

32

 

Unrealized (loss) on equity investments

 

 

(5

)

 

 

(35

)

 

 

 

Gain (loss) on derivatives

 

 

178

 

 

 

(80

)

 

 

 

Increase in cash surrender value of life insurance

 

 

331

 

 

 

217

 

 

 

194

 

Gain on sale of securities

 

 

 

 

 

 

 

 

52

 

Total noninterest income

 

 

5,524

 

 

 

4,171

 

 

 

2,727

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,772

 

 

 

8,742

 

 

 

7,599

 

Occupancy and equipment expenses

 

 

2,189

 

 

 

2,135

 

 

 

2,360

 

Data processing

 

 

965

 

 

 

1,231

 

 

 

1,200

 

Legal and professional

 

 

746

 

 

 

536

 

 

 

675

 

Office expenses

 

 

311

 

 

 

272

 

 

 

271

 

Marketing and business promotion

 

 

324

 

 

 

231

 

 

 

131

 

Insurance and regulatory assessments

 

 

384

 

 

 

354

 

 

 

363

 

Core deposit premium

 

 

281

 

 

 

287

 

 

 

357

 

OREO expenses

 

 

4

 

 

 

4

 

 

 

3

 

Merger expenses

 

 

40

 

 

 

17

 

 

 

62

 

Other expenses

 

 

404

 

 

 

871

 

 

 

957

 

Total noninterest expense

 

 

14,420

 

 

 

14,680

 

 

 

13,978

 

Income before income taxes

 

 

21,484

 

 

 

18,920

 

 

 

12,139

 

Income tax expense

 

 

6,120

 

 

 

5,540

 

 

 

3,619

 

Net income

 

$

15,364

 

 

$

13,380

 

 

$

8,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.79

 

 

$

0.69

 

 

$

0.43

 

Diluted

 

$

0.77

 

 

$

0.67

 

 

$

0.43

 

Cash Dividends declared per common share

 

$

0.13

 

 

$

0.13

 

 

$

0.06

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,343,262

 

 

 

19,432,204

 

 

 

19,717,568

 

Diluted

 

 

19,798,187

 

 

 

19,874,969

 

 

 

19,804,892

 

 

(1)

Includes $1.8 million of the U.S. Treasury's CDFI rapid response program grant income.

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

For the Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

104,786

 

 

$

99,062

 

Interest on interest-earning deposits

 

 

392

 

 

 

586

 

Interest on investment securities

 

 

2,310

 

 

 

2,329

 

Dividend income on FHLB stock

 

 

642

 

 

 

379

 

Interest on federal funds sold and other

 

 

489

 

 

 

900

 

Total interest income

 

 

108,619

 

 

 

103,256

 

Interest expense:

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

2,103

 

 

 

2,804

 

Interest on time deposits

 

 

7,422

 

 

 

17,765

 

Interest on subordinated debentures and long term debt

 

 

6,656

 

 

 

5,776

 

Interest on other borrowed funds

 

 

1,320

 

 

 

1,033

 

Total interest expense

 

 

17,501

 

 

 

27,378

 

Net interest income

 

 

91,118

 

 

 

75,878

 

Provision for loan losses

 

 

3,324

 

 

 

8,815

 

Net interest income after provision for loans losses

 

 

87,794

 

 

 

67,063

 

Noninterest income:

 

 

 

 

 

 

 

 

Service charges, fees and other (1)

 

 

5,884

 

 

 

3,287

 

Gain on sale of loans

 

 

8,203

 

 

 

3,552

 

Loan servicing fees, net of amortization

 

 

426

 

 

 

1,846

 

Recoveries on loans acquired in business combinations

 

 

78

 

 

 

79

 

Unrealized (loss) on equity investments

 

 

(60

)

 

 

 

Gain on derivatives

 

 

323

 

 

 

 

Increase in cash surrender value of life insurance

 

 

735

 

 

 

576

 

Gain on sale of securities

 

 

 

 

 

210

 

Total noninterest income

 

 

15,589

 

 

 

9,550

 

Noninterest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

26,756

 

 

 

25,207

 

Occupancy and equipment expenses

 

 

6,566

 

 

 

7,291

 

Data processing

 

 

3,636

 

 

 

3,224

 

Legal and professional

 

 

2,087

 

 

 

1,949

 

Office expenses

 

 

838

 

 

 

931

 

Marketing and business promotion

 

 

739

 

 

 

456

 

Insurance and regulatory assessments

 

 

1,086

 

 

 

774

 

Core deposit premium

 

 

869

 

 

 

1,071

 

OREO expenses

 

 

13

 

 

 

31

 

Merger expenses

 

 

99

 

 

 

741

 

Other expenses

 

 

2,203

 

 

 

3,385

 

Total noninterest expense

 

 

44,892

 

 

 

45,060

 

Income before income taxes

 

 

58,491

 

 

 

31,553

 

Income tax expense

 

 

17,291

 

 

 

9,772

 

Net income

 

$

41,200

 

 

$

21,781

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

Basic

 

$

2.11

 

 

$

1.10

 

Diluted

 

$

2.07

 

 

$

1.09

 

Cash Dividends declared per common share

 

$

0.38

 

 

$

0.24

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,416,608

 

 

 

19,799,617

 

Diluted

 

 

19,828,612

 

 

 

19,958,612

 

(1)

Includes $1.8 million of the U.S. Treasury's CDFI rapid response program grant income.

RBB BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND NET INTEREST INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the three months ended

 

 

 

September 30, 2021

 

 

June 30, 2021

 

 

September 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)

 

$

628,020

 

 

$

618

 

 

 

0.39

%

 

$

582,554

 

 

$

508

 

 

 

0.35

%

 

$

179,521

 

 

$

351

 

 

 

0.78

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

336,130

 

 

 

856

 

 

 

1.01

%

 

 

328,004

 

 

 

751

 

 

 

0.92

%

 

 

168,151

 

 

 

558

 

 

 

1.32

%

Held to maturity (2)

 

 

6,262

 

 

 

56

 

 

 

3.55

%

 

 

6,667

 

 

 

60

 

 

 

3.61

%

 

 

7,604

 

 

 

71

 

 

 

3.71

%

Mortgage loans held for sale

 

 

5,218

 

 

 

46

 

 

 

3.50

%

 

 

21,033

 

 

 

173

 

 

 

3.30

%

 

 

19,848

 

 

 

171

 

 

 

3.43

%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,361,405

 

 

 

30,911

 

 

 

5.19

%

 

 

2,292,145

 

 

 

29,794

 

 

 

5.21

%

 

 

2,266,752

 

 

 

29,616

 

 

 

5.20

%

Commercial

 

 

374,125

 

 

 

4,644

 

 

 

4.92

%

 

 

388,049

 

 

 

4,702

 

 

 

4.86

%

 

 

377,789

 

 

 

4,366

 

 

 

4.60

%

Total loans

 

 

2,735,530

 

 

 

35,555

 

 

 

5.16

%

 

 

2,680,194

 

 

 

34,496

 

 

 

5.16

%

 

 

2,644,541

 

 

 

33,982

 

 

 

5.11

%

Total earning assets

 

 

3,711,160

 

 

$

37,131

 

 

 

3.97

%

 

 

3,618,452

 

 

$

35,988

 

 

 

3.99

%

 

 

3,019,665

 

 

$

35,133

 

 

 

4.63

%

Noninterest-earning assets

 

 

242,742

 

 

 

 

 

 

 

 

 

 

 

230,049

 

 

 

 

 

 

 

 

 

 

 

204,638

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,953,902

 

 

 

 

 

 

 

 

 

 

$

3,848,501

 

 

 

 

 

 

 

 

 

 

$

3,224,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

71,454

 

 

$

48

 

 

 

0.27

%

 

$

66,777

 

 

$

45

 

 

 

0.27

%

 

$

59,451

 

 

$

50

 

 

 

0.33

%

Money Market

 

 

660,806

 

 

 

615

 

 

 

0.37

%

 

 

640,026

 

 

 

628

 

 

 

0.39

%

 

 

454,820

 

 

 

698

 

 

 

0.61

%

Saving deposits

 

 

139,555

 

 

 

34

 

 

 

0.10

%

 

 

140,418

 

 

 

35

 

 

 

0.10

%

 

 

126,635

 

 

 

31

 

 

 

0.10

%

Time deposits, less than $250,000

 

 

644,013

 

 

 

977

 

 

 

0.60

%

 

 

657,494

 

 

 

1,163

 

 

 

0.71

%

 

 

699,765

 

 

 

2,539

 

 

 

1.44

%

Time deposits, $250,000 and over

 

 

604,394

 

 

 

1,071

 

 

 

0.70

%

 

 

604,429

 

 

 

1,247

 

 

 

0.83

%

 

 

584,586

 

 

 

2,207

 

 

 

1.50

%

Total interest-bearing deposits

 

 

2,120,222

 

 

 

2,745

 

 

 

0.51

%

 

 

2,109,144

 

 

 

3,118

 

 

 

0.59

%

 

 

1,925,257

 

 

 

5,525

 

 

 

1.14

%

FHLB advances

 

 

150,000

 

 

 

445

 

 

 

1.18

%

 

 

150,000

 

 

 

440

 

 

 

1.18

%

 

 

151,739

 

 

 

444

 

 

 

1.16

%

Long-term debt

 

 

172,767

 

 

 

2,194

 

 

 

5.04

%

 

 

172,622

 

 

 

2,206

 

 

 

5.13

%

 

 

104,252

 

 

 

1,748

 

 

 

6.67

%

Subordinated debentures

 

 

14,411

 

 

 

148

 

 

 

4.07

%

 

 

14,357

 

 

 

150

 

 

 

4.19

%

 

 

14,195

 

 

 

157

 

 

 

4.40

%

Total interest-bearing liabilities

 

 

2,457,400

 

 

 

5,532

 

 

 

0.89

%

 

 

2,446,123

 

 

 

5,914

 

 

 

0.97

%

 

 

2,195,443

 

 

 

7,874

 

 

 

1.43

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

1,003,304

 

 

 

 

 

 

 

 

 

 

 

913,442

 

 

 

 

 

 

 

 

 

 

 

595,264

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

42,419

 

 

 

 

 

 

 

 

 

 

 

46,549

 

 

 

 

 

 

 

 

 

 

 

13,270

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,045,723

 

 

 

 

 

 

 

 

 

 

 

959,991

 

 

 

 

 

 

 

 

 

 

 

608,534

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

450,779

 

 

 

 

 

 

 

 

 

 

 

442,387

 

 

 

 

 

 

 

 

 

 

 

420,326

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

3,953,902

 

 

 

 

 

 

 

 

 

 

$

3,848,501

 

 

 

 

 

 

 

 

 

 

$

3,224,303

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

31,599

 

 

 

3.08

%

 

 

 

 

 

$

30,074

 

 

 

3.02

%

 

 

 

 

 

$

27,259

 

 

 

3.20

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.38

%

 

 

 

 

 

 

 

 

 

 

3.33

%

 

 

 

 

 

 

 

 

 

 

3.59

%

(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 nine months ended

 

 

 

September 30, 2021

 

 

September 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)

 

$

476,781

 

 

$

1,523

 

 

 

0.43

%

 

$

220,195

 

 

$

1,865

 

 

 

1.13

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

301,653

 

 

 

2,180

 

 

 

0.97

%

 

 

159,373

 

 

 

2,136

 

 

 

1.79

%

Held to maturity (2)

 

 

6,640

 

 

 

182

 

 

 

3.66

%

 

 

7,760

 

 

 

218

 

 

 

3.75

%

Mortgage loans held for sale

 

 

26,579

 

 

 

630

 

 

 

3.17

%

 

 

40,936

 

 

 

1,454

 

 

 

4.74

%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,320,524

 

 

 

90,226

 

 

 

5.20

%

 

 

2,141,022

 

 

 

84,261

 

 

 

5.26

%

Commercial

 

 

382,168

 

 

 

13,930

 

 

 

4.87

%

 

 

359,907

 

 

 

13,347

 

 

 

4.95

%

Total loans

 

 

2,702,692

 

 

 

104,156

 

 

 

5.15

%

 

 

2,500,929

 

 

 

97,608

 

 

 

5.21

%

Total earning assets

 

 

3,514,345

 

 

$

108,671

 

 

 

4.13

%

 

 

2,929,193

 

 

$

103,281

 

 

 

4.71

%

Noninterest-earning assets

 

 

233,652

 

 

 

 

 

 

 

 

 

 

 

208,000

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,747,997

 

 

 

 

 

 

 

 

 

 

$

3,137,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW

 

$

67,633

 

 

$

136

 

 

 

0.27

%

 

$

53,633

 

 

$

153

 

 

 

0.38

%

Money Market

 

 

627,024

 

 

 

1,866

 

 

 

0.40

%

 

 

430,524

 

 

 

2,534

 

 

 

0.79

%

Saving deposits

 

 

137,072

 

 

 

101

 

 

 

0.10

%

 

 

121,836

 

 

 

117

 

 

 

0.13

%

Time deposits, less than $250,000

 

 

654,776

 

 

 

3,635

 

 

 

0.74

%

 

 

720,810

 

 

 

9,408

 

 

 

1.74

%

Time deposits, $250,000 and over

 

 

600,973

 

 

 

3,787

 

 

 

0.84

%

 

 

598,137

 

 

 

8,357

 

 

 

1.87

%

Total interest-bearing deposits

 

 

2,087,478

 

 

 

9,525

 

 

 

0.61

%

 

 

1,924,940

 

 

 

20,569

 

 

 

1.43

%

FHLB advances

 

 

150,000

 

 

 

1,320

 

 

 

1.18

%

 

 

118,029

 

 

 

1,033

 

 

 

1.17

%

Long-term debt

 

 

152,600

 

 

 

6,209

 

 

 

5.44

%

 

 

104,168

 

 

 

5,243

 

 

 

6.72

%

Subordinated debentures

 

 

14,357

 

 

 

447

 

 

 

4.16

%

 

 

14,221

 

 

 

533

 

 

 

5.01

%

Total interest-bearing liabilities

 

 

2,404,435

 

 

$

17,501

 

 

 

0.97

%

 

 

2,161,358

 

 

$

27,378

 

 

 

1.69

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

858,087

 

 

 

 

 

 

 

 

 

 

 

546,419

 

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

43,038

 

 

 

 

 

 

 

 

 

 

 

14,606

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

901,125

 

 

 

 

 

 

 

 

 

 

 

561,025

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

442,437

 

 

 

 

 

 

 

 

 

 

 

414,810

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

3,747,997

 

 

 

 

 

 

 

 

 

 

$

3,137,193

 

 

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

91,170

 

 

 

3.16

%

 

 

 

 

 

$

75,903

 

 

 

3.02

%

Net interest margin

 

 

 

 

 

 

 

 

 

 

3.47

%

 

 

 

 

 

 

 

 

 

 

3.46

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

For the three months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2021

 

 

2021

 

 

2020

 

Per share data (common stock)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.79

 

 

$

0.69

 

 

$

0.43

 

Diluted

 

$

0.77

 

 

$

0.67

 

 

$

0.43

 

Dividends declared

 

$

0.13

 

 

$

0.13

 

 

$

0.06

 

Book value

 

$

23.37

 

 

$

22.86

 

 

$

21.35

 

Tangible book value

 

$

19.60

 

 

$

19.04

 

 

$

17.56

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,343,262

 

 

 

19,432,204

 

 

 

19,717,568

 

Diluted

 

 

19,798,187

 

 

 

19,874,969

 

 

 

19,804,892

 

Shares outstanding at period end

 

 

19,516,393

 

 

 

19,349,802

 

 

 

19,739,280

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

 

1.54

%

 

 

1.39

%

 

 

1.05

%

Return on average shareholders' equity, annualized

 

 

13.52

%

 

 

12.13

%

 

 

8.06

%

Return on average tangible common equity, annualized

 

 

16.17

%

 

 

14.57

%

 

 

9.81

%

Noninterest income to average assets, annualized

 

 

0.55

%

 

 

0.43

%

 

 

0.34

%

Noninterest expense to average assets, annualized

 

 

1.45

%

 

 

1.53

%

 

 

1.72

%

Yield on average earning assets

 

 

3.97

%

 

 

3.99

%

 

 

4.63

%

Cost of average total deposits

 

 

0.35

%

 

 

0.41

%

 

 

0.87

%

Cost of average interest-bearing deposits

 

 

0.51

%

 

 

0.59

%

 

 

1.14

%

Cost of average interest-bearing liabilities

 

 

0.89

%

 

 

0.97

%

 

 

1.43

%

Accretion on loans to average earning assets

 

 

0.03

%

 

 

0.02

%

 

 

0.08

%

Net interest spread

 

 

3.08

%

 

 

3.02

%

 

 

3.20

%

Net interest margin

 

 

3.38

%

 

 

3.33

%

 

 

3.59

%

Efficiency ratio

 

 

38.87

%

 

 

42.89

%

 

 

46.63

%

Common stock dividend payout ratio

 

 

16.46

%

 

 

18.84

%

 

 

13.95

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

For the nine months ended September 30,

 

 

 

2021

 

 

2020

 

Per share data (common stock)

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

Basic

 

$

2.11

 

 

$

1.10

 

Diluted

 

$

2.07

 

 

$

1.09

 

Dividends declared

 

$

0.38

 

 

$

0.24

 

Book value

 

$

23.37

 

 

$

21.35

 

Tangible book value

 

$

19.60

 

 

$

17.56

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,416,608

 

 

 

19,799,617

 

Diluted

 

 

19,828,612

 

 

 

19,958,612

 

Shares outstanding at period end

 

 

19,516,393

 

 

 

19,739,280

 

Performance ratios

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

 

1.47

%

 

 

0.93

%

Return on average shareholders' equity, annualized

 

 

12.45

%

 

 

7.01

%

Return on average tangible common equity, annualized

 

 

14.95

%

 

 

8.59

%

Noninterest income to average assets, annualized

 

 

0.56

%

 

 

0.41

%

Noninterest expense to average assets, annualized

 

 

1.60

%

 

 

1.92

%

Yield on average earning assets

 

 

4.13

%

 

 

4.71

%

Cost of average deposits

 

 

0.43

%

 

 

1.11

%

Cost of average interest-bearing deposits

 

 

0.61

%

 

 

1.43

%

Cost of average interest-bearing liabilities

 

 

0.97

%

 

 

1.69

%

Accretion on loans to average earning assets

 

 

0.04

%

 

 

0.10

%

Net interest spread

 

 

3.16

%

 

 

3.02

%

Net interest margin

 

 

3.47

%

 

 

3.46

%

Efficiency ratio

 

 

42.07

%

 

 

52.75

%

Common stock dividend payout ratio

 

 

18.01

%

 

 

21.82

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

As of

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2021

 

 

2021

 

 

2020

 

Loan to deposit ratio

 

 

95.71

%

 

 

88.25

%

 

 

105.49

%

Core deposits / total deposits

 

 

79.87

%

 

 

80.04

%

 

 

99.34

%

Net non-core funding dependence ratio

 

 

9.27

%

 

 

0.87

%

 

 

9.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days past due

 

$

7,258

 

 

$

5,449

 

 

$

21,735

 

Loans 30-89 days past due to total loans

 

 

0.26

%

 

 

0.20

%

 

 

0.79

%

Nonperforming loans

 

$

14,248

 

 

$

19,243

 

 

$

17,975

 

Nonperforming loans to total loans

 

 

0.50

%

 

 

0.71

%

 

 

0.65

%

Nonperforming assets

 

$

14,541

 

 

$

19,536

 

 

$

18,268

 

Nonperforming assets to total assets

 

 

0.38

%

 

 

0.50

%

 

 

0.54

%

Allowance for loan losses to total loans

 

 

1.13

%

 

 

1.16

%

 

 

0.97

%

Allowance for loan losses to nonperforming loans

 

 

226.21

%

 

 

162.93

%

 

 

148.17

%

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

 

 

0.05

%

 

 

0.01

%

 

 

0.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory and other capital ratios—Company

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

10.26

%

 

 

9.65

%

 

 

10.55

%

Tier 1 leverage ratio

 

 

10.31

%

 

 

10.20

%

 

 

11.47

%

Tier 1 common capital to risk-weighted assets

 

 

14.82

%

 

 

14.76

%

 

 

14.11

%

Tier 1 capital to risk-weighted assets

 

 

15.38

%

 

 

15.33

%

 

 

14.69

%

Total capital to risk-weighted assets

 

 

23.30

%

 

 

23.48

%

 

 

20.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios—Bank only

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

12.48

%

 

 

12.34

%

 

 

14.16

%

Tier 1 common capital to risk-weighted assets

 

 

18.64

%

 

 

18.58

%

 

 

18.13

%

Tier 1 capital to risk-weighted assets

 

 

18.64

%

 

 

18.58

%

 

 

18.13

%

Total capital to risk-weighted assets

 

 

19.89

%

 

 

19.83

%

 

 

19.26

%

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter

 

 

2nd Quarter

 

 

1st Quarter

 

 

4th Quarter

 

 

3rd Quarter

 

Quarterly Consolidated Statements of Earnings

 

2021

 

 

2021

 

 

2021

 

 

2020

 

 

2020

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

35,601

 

 

$

34,669

 

 

$

34,516

 

 

$

34,832

 

 

$

34,153

 

Investment securities and other

 

 

1,507

 

 

 

1,302

 

 

 

1,024

 

 

 

1,032

 

 

 

972

 

Total interest income

 

 

37,108

 

 

 

35,971

 

 

 

35,540

 

 

 

35,864

 

 

 

35,125

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,745

 

 

 

3,118

 

 

 

3,662

 

 

 

4,636

 

 

 

5,525

 

Interest on subordinated debentures and other

 

 

2,342

 

 

 

2,356

 

 

 

1,958

 

 

 

1,901

 

 

 

1,905

 

Other borrowings

 

 

445

 

 

 

440

 

 

 

435

 

 

 

450

 

 

 

444

 

Total interest expense

 

 

5,532

 

 

 

5,914

 

 

 

6,055

 

 

 

6,987

 

 

 

7,874

 

Net interest income before provision for loan losses

 

 

31,576

 

 

 

30,057

 

 

 

29,485

 

 

 

28,877

 

 

 

27,251

 

Provision for loan losses

 

 

1,196

 

 

 

628

 

 

 

1,500

 

 

 

3,008

 

 

 

3,861

 

Net interest income after provision for loan losses

 

 

30,380

 

 

 

29,429

 

 

 

27,985

 

 

 

25,869

 

 

 

23,390

 

Noninterest income

 

 

5,524

 

 

 

4,171

 

 

 

5,894

 

 

 

4,490

 

 

 

2,727

 

Noninterest expense

 

 

14,420

 

 

 

14,680

 

 

 

15,792

 

 

 

14,453

 

 

 

13,978

 

Earnings before income taxes

 

 

21,484

 

 

 

18,920

 

 

 

18,087

 

 

 

15,906

 

 

 

12,139

 

Income taxes

 

 

6,120

 

 

 

5,540

 

 

 

5,631

 

 

 

4,759

 

 

 

3,619

 

Net income

 

$

15,364

 

 

$

13,380

 

 

$

12,456

 

 

$

11,147

 

 

$

8,520

 

Net income per common share - basic

 

$

0.79

 

 

$

0.69

 

 

$

0.64

 

 

$

0.57

 

 

$

0.43

 

Net income per common share - diluted

 

$

0.77

 

 

$

0.67

 

 

$

0.63

 

 

$

0.56

 

 

$

0.43

 

Cash dividends declared per common share

 

$

0.13

 

 

$

0.13

 

 

$

0.12

 

 

$

0.09

 

 

$

0.06

 

Cash dividends declared on common shares

 

$

2,516

 

 

$

2,540

 

 

$

2,347

 

 

$

1,777

 

 

$

1,184

 

Yield on average assets, annualized

 

 

1.54

%

 

 

1.39

%

 

 

1.47

%

 

 

1.33

%

 

 

1.05

%

Yield on average earning assets

 

 

3.97

%

 

 

3.99

%

 

 

4.49

%

 

 

4.55

%

 

 

4.63

%

Cost of average deposits

 

 

0.35

%

 

 

0.41

%

 

 

0.55

%

 

 

0.71

%

 

 

0.87

%

Cost of average interest-bearing deposits

 

 

0.51

%

 

 

0.59

%

 

 

0.73

%

 

 

0.93

%

 

 

1.14

%

Cost of average interest-bearing liabilities

 

 

0.89

%

 

 

0.97

%

 

 

1.06

%

 

 

1.23

%

 

 

1.43

%

Accretion on loans to average earning assets

 

 

0.03

%

 

 

0.02

%

 

 

0.06

%

 

 

0.03

%

 

 

0.08

%

Net interest margin

 

 

3.38

%

 

 

3.33

%

 

 

3.73

%

 

 

3.67

%

 

 

3.59

%

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
September 30, 2021

 

 

As of
June 30, 2021

 

 

As of
March 31, 2021

 

 

As of
December 30, 2020

 

 

As of
September 30, 2020

 

(dollars in thousands)

 

 

$

 

 

%

 

 

 

$

 

 

%

 

 

 

$

 

 

%

 

 

 

$

 

 

%

 

 

 

$

 

 

%

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

276,387

 

 

 

9.7

%

 

$

277,080

 

 

 

10.2

%

 

$

286,016

 

 

 

10.5

%

 

$

290,139

 

 

 

10.7

%

 

$

317,891

 

 

 

11.5

%

SBA

 

 

88,784

 

 

 

3.1

%

 

 

98,572

 

 

 

3.6

%

 

 

111,330

 

 

 

4.1

%

 

 

97,821

 

 

 

3.6

%

 

 

111,193

 

 

 

4.0

%

Construction and land development

 

 

271,764

 

 

 

9.6

%

 

 

236,965

 

 

 

8.7

%

 

 

209,727

 

 

 

7.7

%

 

 

186,723

 

 

 

6.9

%

 

 

183,569

 

 

 

6.7

%

Commercial real estate (1)

 

 

1,205,630

 

 

 

42.4

%

 

 

1,102,467

 

 

 

40.7

%

 

 

1,063,104

 

 

 

39.2

%

 

 

1,003,637

 

 

 

37.1

%

 

 

975,187

 

 

 

35.4

%

Single-family residential mortgages

 

 

974,780

 

 

 

34.3

%

 

 

984,311

 

 

 

36.3

%

 

 

1,041,260

 

 

 

38.3

%

 

 

1,124,357

 

 

 

41.5

%

 

 

1,163,982

 

 

 

42.2

%

Other loans

 

 

23,009

 

 

 

0.9

%

 

 

9,811

 

 

 

0.5

%

 

 

3,768

 

 

 

0.2

%

 

 

4,089

 

 

 

0.2

%

 

 

3,331

 

 

 

0.2

%

Total loans (2)

 

$

2,840,354

 

 

 

100.0

%

 

$

2,709,206

 

 

 

100.0

%

 

$

2,715,205

 

 

 

100.0

%

 

$

2,706,766

 

 

 

100.0

%

 

$

2,755,153

 

 

 

100.0

%

Allowance for loan losses

 

 

(32,231

)

 

 

 

 

 

 

(31,352

)

 

 

 

 

 

 

(30,795

)

 

 

 

 

 

 

(29,337

)

 

 

 

 

 

 

(26,634

)

 

 

 

 

Total loans, net

 

$

2,808,123

 

 

 

 

 

 

$

2,677,854

 

 

 

 

 

 

$

2,684,410

 

 

 

 

 

 

$

2,677,429

 

 

 

 

 

 

$

2,728,519

 

 

 

 

 


(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

 

 

Nine Months Ended

 

Change in Allowance for Loan Losses

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Beginning balance

 

$

31,352

 

 

$

22,820

 

 

$

29,337

 

 

$

18,816

 

Additions to the allowance charged to expense

 

 

1,196

 

 

 

3,861

 

 

 

3,324

 

 

 

8,815

 

Net charge-offs on loans

 

 

(317

)

 

 

(47

)

 

 

(430

)

 

 

(997

)

Ending balance

 

$

32,231

 

 

$

26,634

 

 

$

32,231

 

 

$

26,634

 

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 September 30, 2021 and 2020 and June 30, 2021.

(dollars in thousands, except per share data)

 

September 30, 2021

 

 

June 30, 2021

 

 

September 30, 2020

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

456,024

 

 

$

442,325

 

 

$

421,416

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,243

)

 

 

(69,243

)

 

 

(69,243

)

Core deposit intangible

 

 

(4,327

)

 

 

(4,608

)

 

 

(5,519

)

Tangible common equity

 

$

382,454

 

 

$

368,474

 

 

$

346,654

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

Total assets-GAAP

 

$

3,801,807

 

 

$

3,890,638

 

 

$

3,359,576

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,243

)

 

 

(69,243

)

 

 

(69,243

)

Core deposit intangible

 

 

(4,327

)

 

 

(4,608

)

 

 

(5,519

)

Tangible assets

 

$

3,728,237

 

 

$

3,816,787

 

 

$

3,284,814

 

Common shares outstanding

 

$

19,516,393

 

 

 

19,349,802

 

 

 

19,739,280

 

Tangible common equity to tangible assets ratio

 

 

10.26

%

 

 

9.65

%

 

 

10.55

%

Book value per share

 

$

23.37

 

 

$

22.86

 

 

$

21.35

 

Tangible book value per share

 

$

19.60

 

 

$

19.04

 

 

$

17.56

 

 

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

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

Source: RBB Bancorp