rbb-8k_20200724.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2020 (July 24, 2020)

 

RBB BANCORP

(Exact name of Registrant as Specified in Its Charter)

 

 

California

001-38149

27-2776416

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

 

 

1055 Wilshire Blvd., 12th floor,

Los Angeles, California

 

90017

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (213) 627-9888

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12 (b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of exchange on which registered

Common Stock, No Par Value

 

RBB

 

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

2


Item 2.02 Results of Operations and Financial Condition.

On July 27, 2020, RBB Bancorp issued a press release setting forth the financial results for the quarter ended June 30, 2020, and information relating to our quarterly conference call and webcast.  A copy of this press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference.

The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set for the by specific reference in such filing.

Item 8.01 Other Events.

On July 24, 2020, RBB Bancorp announced that its Board of Directors declared a cash dividend of $0.06 per share of its common stock. The dividend is payable on August 3, 2020, to common shareholders of record as of August 3, 2020.  A copy of the press release announcing the dividend is attached hereto as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits.

 

(d)

 

Exhibits.

 

 

 

99.1

 

Press Release, dated July 27, 2020, announcing the financial results of RBB Bancorp for the quarter ended June 30, 2020.

 

 

 

99.2

 

Press Release, dated July 24, 2020, announcing RBB Bancorp declared a quarterly cash dividend of $0.06 per share.

 

3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

RBB BANCORP

(Registrant)

 

 

 

 

Date:  July 27, 2020

By:

 

/s/ David Morris

 

 

 

David Morris

 

 

 

Executive Vice President and

Chief Financial Officer

 

4

rbb-ex991_6.htm

 

Exhibit 99.1

 

Press Release

For Immediate Release

 

 

Contacts:

Yee Phong (Alan) Thian

 

Chairman, President and CEO

 

(626) 307-7559

 

David Morris

 

Executive Vice President and CFO

 

(714) 670-2488

 

RBB Bancorp Reports Second Quarter Earnings for 2020

Conference Call and Webcast Scheduled for Tuesday, July 28, 2020 at

11:00 a.m. Pacific Time/2:00 p.m. Eastern Time

 

Second Quarter 2020 Highlights

Net income of $6.5 million, or $0.33 diluted earnings per share

Loans held for investment increased by $108.7 million, or 18.2% annualized growth, from the end of the prior quarter, excluding SBA Paycheck Protection program (“PPP”) loans of $32.8 million and held-for-sale loans of $53.1  million that were transferred to held-for-investment loans

Total deposits (excluding brokered deposits) increased by $31.3 million, or 5.2% annualized growth, from the end of the prior quarter

 

Nonperforming assets to total assets of 0.56%, improving 10 basis points from the prior quarter

 

PPP loan participation of 258 clients with loans totaling $32.8 million

Loan deferral participation of 564 clients with loans totaling $411.0 million, or 15.8% of total loans

Los Angeles, CA, July 27, 2020 – 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, 2020.

The Company reported net income of $6.5 million, or $0.33 diluted earnings per share, for the three months ended June 30, 2020, compared to net income of $6.7 million, or $0.33 diluted earnings per share, and $10.1 million, or $0.50 diluted earnings per share, for the three months ended March 31, 2020 and June 30, 2019, respectively.

“While the COVID-19 pandemic had an impact on our operating performance for the second quarter, we were able to make progress towards returning to future earnings growth,” said Mr. Alan Thian, Chairman, President and CEO of RBB Bancorp.  “We grew our core loans by over 18% on an annualized basis and our loan pipeline remains strong. We continued to drive down our deposit costs while increasing our core noninterest-bearing deposits during the quarter. Our average loan yields also declined, but at a slower pace than the decrease in our funding costs, enabling us to expand our net interest margin. While our results were impacted bylower loan sales and an increased provision for loan losses, our credit quality improved, and our operating expenses were in line with our expectations.

1


 

“We are encouraged that 85% of our clients that received loan payment deferrals in April resumed making payments in July,” added Mr. Thian. “It is difficult to predict the ultimate impact that this pandemic will have on our clients, given economic uncertainty, the original government stimulus package ending soon, and the number of new COVID-19 cases continuing to increase across some of our primary markets. However, we are well-capitalized and well-positioned to manage through this public health crisis and we continue to evaluate opportunities to expand our franchise beyond our existing markets.

“Our board of directors  approved a quarterly dividend of $0.06 per share, consistent with the second quarter, and we anticipate being able to restore the dividend to a higher level once we obtain more clarity on future business conditions and the earnings potential of the company,” Mr. Thian concluded.

Key Performance Ratios

Net income of $6.5 million for the second quarter of 2020 produced an annualized return on average assets of 0.83%, an annualized return on average tangible common equity of 7.77%, and an annualized return on average equity of 6.34%.  This compares to an annualized return on average assets of 0.90%, an annualized return on average tangible common equity of 8.13%, and an annualized return on average equity of 6.60% for the first quarter of 2020.  The efficiency ratio for the second quarter of 2020 was 54.40%, compared to 57.70% for the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $25.0 million for the second quarter of 2020, compared to $23.6 million for the first quarter of 2020.  The $1.4 million increase was primarily attributable to a $128.8 million increase in average earning assets and a $72.3 million increase in average noninterest-bearing deposits, partially offset by a $48.6 million increase in average interest-bearing liabilities.  Net interest income was also favorably impacted by a 5 basis point increase in the net interest margin.  Accretion of purchase discounts from prior acquisitions contributed $818,000 to net interest income in the second quarter of 2020, compared to $685,000 in the first quarter of 2020.

Compared to the second quarter of 2019, net interest income, before provision for loan losses, increased $717,000 from $24.3 million. The increase was primarily attributable to a $264.4 million increase in average earning assets and a $149.7 million increase in average noninterest-bearing deposits, partially offset by a 22 basis point decrease in the net interest margin, and a $136.2 million increase in average interest-bearing liabilities. The increases in average earning assets and total deposits were primarily due to the Pacific Global Bank (“PGB”) acquisition.

Net interest margin was 3.42% for the second quarter of 2020, an increase from 3.37% in the first quarter of 2020. The increase was primarily attributable to a 30 basis point decrease in the cost of total deposits and a 106 basis point decrease in the cost of subordinated debentures, partially offset by a 21 basis point decrease in the yield on average earning assets.  Loan discount accretion contributed 14 basis points to the net interest margin in the second quarter of 2020, compared to 10 basis points in the first quarter of 2020.

Noninterest Income

Noninterest income was $2.2 million for the second quarter of 2020, a decrease of $2.4 million from $4.6 million in the first quarter of 2020.  The decrease was driven by a decrease in gain on loan sales of $2.6 million as the Company sold fewer loans in the second quarter than in the prior quarter generally due to subdued market activity as a result of the COVID-19 pandemic. The Company expects gain on sale of loan income to return to prior levels in the fourth quarter.    

The Company sold $5.2 million in FNMA direct mortgage loans for a net gain of $105,000 during the second quarter of 2020, compared to $31.5 million in FNMA direct and indirect mortgage loans, and $69.2 million in mortgage loans to private investors for a net gain of $1.4 million and $1.2 million, respectively during the first quarter of 2020.

The Company sold $1.4 million in SBA loans for a net gain of $70,000 during the second quarter of 2020, compared to $1.2 million in SBA loans sold for a net gain of $89,000 during the first quarter of 2020.  

Compared to the second quarter of 2019, noninterest income decreased by $3.3 million from $5.5 million. The decrease was primarily attributable to a decrease of $3.0 million in gains on loan sales.

2


 

Noninterest Expense

Noninterest expense for the second quarter of 2020 was $14.8 million, compared to $16.3 million for the first quarter of 2020.  The $1.4 million decrease was primarily attributable to a $1.4 million decrease in salaries and employee benefits expenses, $127,000 decrease in merger expenses, $260,000 decrease in data processing expense, $103,000 decrease in marketing and business promotion expenses, partially offset by a $123,000 increase in occupancy and equipment expenses, a $66,000 increase in legal and professional fees and $189,000 increase in other expenses including a $366,000 write-down of mortgage servicing rights.

RBB incurred $276,000 in merger and conversion expenses in the second quarter of 2020, of which $77,000 related to the First American International Corp. acquisition and $199,000 to the PGB acquisition, a decrease of $127,000 from the prior quarter.

Noninterest expense decreased from $14.9 million in the second quarter of 2019.  The $80,000 decrease was primarily due to a $147,000 decrease in occupancy and equipment expenses, a $205,000 decrease in marketing and business promotion expenses and $51,000 decrease in insurance and regulatory expenses. These were partially offset by a $261,000 increase in merger expenses.  The increases in merger expenses was due to the acquisition of PGB.

Income Taxes

The effective tax rate was 30.8% for the second quarter of 2020, 32.5% for the first quarter of 2020, and 30.3% for the second quarter of 2019.  The lower effective tax rate in the second quarter of 2020 was a result of affordable housing tax credits.  

Loan Portfolio

Loans held for investment, net of deferred fees and discounts, totaled $2.6 billion as of June 30, 2020, an increase of $108.7 million from March 31, 2020, and an increase of $449.1 million from June 30, 2019 excluding loans transferred from held-for-sale to held-for-investment of $53.1 million and PPP loans of $32.8 million. The increase from the prior quarter was primarily due to organic loan growth. Single-family residential mortgages increased by $51.2 million, net of payoffs, paydowns and loan sales, excluding the net transfer of loans from the available for sale category, and was driven by new production.  Commercial real estate loans increased by $45.7 million, construction and land development loans increased by $25.6 million, SBA loans increased by $26.5 million, and commercial and industrial loans decreased by $8.1 million.  

During the second quarter of 2020, single-family residential mortgage production was $117.6 million (mortgage loans held for investment and held for sale), payoffs and paydowns were $36.0 million, and single-family residential mortgage loan sales were $5.2 million.  During the first quarter of 2020, single-family residential mortgage production was $106.6 million, payoffs and paydowns were $39.3 million, and loan sales were $100.5 million.

Mortgage loans held for sale were $15.5 million as of June 30, 2020, a decrease of $36.6 million from $52.1 million at March 31, 2020 and a decrease of $234.1 million from $249.6 million as of June 30, 2019.  The Company originated approximately $19.0 million in mortgage loans for sale for the second quarter of 2020, compared with $32.4 million during the prior quarter.  In the second quarter, SBA loan production was $33.1 million, which consisted exclusively of PPP loans, and total loan sales were $1.4 million.  In the prior quarter, SBA loan production was $6.2 million and total loan sales were $1.2 million.

Deposits

Deposits were $2.4 billion at June 30, 2020, an increase of $31.3 million from March 31, 2020, and an increase of $317.2 million from June 30, 2019, excluding brokered deposits. The increase in total deposits from the prior quarter was primarily attributable to organic deposit growth. Noninterest-bearing deposits increased by $70.2 million and interest-bearing non-maturity deposits increased by $30.1 million. Time deposits decreased by $99.8 million, including a $30.7 million decrease in brokered CDs.  As of June 30, 2020, time deposits included $2.4 million in brokered CDs, as compared to $33.1 million as of March 31, 2020 and $135.0 million as of June 30, 2019.

Asset Quality

Nonperforming assets totaled $17.5 million, or 0.56% of total assets at June 30, 2020, compared to $20.8 million, or 0.66%, of total assets at March 31, 2020. The decrease in nonperforming assets was primarily due to the sale of two hotel franchise loans and one loan returning to accrual status, for a combined total of $3.0 million. 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.  

Loans held-for-investment 30 to 89 days past due increased to $23.9 million at June 30, 2020, up from $22.5 million at March 31, 2020.  

3


 

In the second quarter of 2020, there were $319,000 in net charge-offs, due to the sale of the two hotel franchise loans, down from $631,000 in the prior quarter.

The Company recorded a provision for credit losses of $3.0 million for the second quarter of 2020, an increase from $1.9 million in the prior quarter, primarily attributable to the higher loan balances and the impact of the COVID-19 pandemic.  

The allowance for loan losses totaled $22.8 million, or 0.88% of loans held for investment at June 30, 2020, compared with $20.1 million, or 0.84%, of total loans at March 31, 2020.

The following table, as of June 30, 2020, is intended to summarize the Company’s overall loan exposure to major industries that are considered “at-risk” for business interruption due to the COVID-19 pandemic:

 

Industry / Property Type

 

Total Exposure ($000)

 

 

% of Total HFI Loans

 

General retail (excluding SBA)

 

$

217,865

 

 

 

8.4

%

Mixed use commercial

 

 

176,902

 

 

 

6.8

%

Hospitality (excluding SBA)

 

 

54,232

 

 

 

2.1

%

Service stations (excluding SBA)

 

 

22,518

 

 

 

0.9

%

SBA loans

 

 

108,806

 

 

 

4.2

%

Shared National Credits (excluding Airlines and Cruise Lines)

 

 

38,513

 

 

 

1.5

%

Airlines and Cruise Lines (SNC)

 

 

9,678

 

 

 

0.4

%

Restaurants (excluding SBA)

 

 

8,497

 

 

 

0.3

%

Total loans

 

$

637,011

 

 

 

24.6

%

In the above table, the general retail exposure now includes warehouse loans and the mixed use commercial exposure now includes residential mixed use loans.

As of June 30, 2020, borrowers representing 258 loans totaling $32.8 million, or 1.3% of the Company’s total loan portfolio, have funded under the SBA’s Paycheck Protection Program due to the COVID-19 pandemic. As of July 20, 2020 85.2% of our borrowers that received loan payment deferrals in April, representing $184.6 million in loan balances, have resumed making payments.  The following table provides details regarding the Company’s COVID-19 loan deferral activity through July 20, 2020.

 

 

 

As of June 30, 2020

 

 

As of July 20, 2020

 

 

 

Deferred Loans

 

 

Loans Resuming

Payments

 

 

Loans Deferred

 

 

 

Number

 

 

Principal

Amount

($000)

 

 

% of

Total

HFI

Loans

 

 

Number

 

 

Principal

Amount

($000)

 

 

Number

 

 

Principal

Amount

($000)

 

General retail (excluding SBA)

 

 

34

 

 

$

94,251

 

 

 

3.6

%

 

 

13

 

 

$

50,080

 

 

 

21

 

 

$

44,171

 

Mixed use commercial

 

 

38

 

 

 

58,841

 

 

 

2.3

%

 

 

15

 

 

 

10,096

 

 

 

23

 

 

 

48,745

 

Hospitality (excluding SBA)

 

 

5

 

 

 

25,343

 

 

 

1.0

%

 

 

2

 

 

 

6,021

 

 

 

3

 

 

 

19,322

 

Restaurants (excluding SBA)

 

 

11

 

 

 

4,186

 

 

 

0.2

%

 

 

4

 

 

 

2,028

 

 

 

7

 

 

 

2,158

 

Multifamily

 

 

6

 

 

 

9,086

 

 

 

0.4

%

 

 

2

 

 

 

1,604

 

 

 

4

 

 

 

7,482

 

SFR mortgage loans - Western region

 

 

183

 

 

 

118,484

 

 

 

4.6

%

 

 

94

 

 

 

64,450

 

 

 

89

 

 

 

54,034

 

SFR mortgage loans - Eastern region

 

 

203

 

 

 

85,935

 

 

 

3.3

%

 

 

108

 

 

 

45,953

 

 

 

95

 

 

 

39,982

 

SFR mortgage loans - Chicago metropolitan

 

 

84

 

 

 

14,824

 

 

 

0.6

%

 

 

27

 

 

 

4,382

 

 

 

57

 

 

 

10,442

 

Total

 

 

564

 

 

$

410,950

 

 

 

15.8

%

 

 

265

 

 

$

184,614

 

 

 

299

 

 

$

226,336

 

4


 

The Company does not have any shared national credits or loans backed by service stations, airlines or cruise lines on deferral as of July 20, 2020.  

Properties

On March 31, 2020, we closed the Grand Street branch in New York City as the lease for this branch expired in April 2020.  Branch operations and staff were transferred to the Bowery branch.

The Bank plans to open a new full service banking branch in Edison, New Jersey in the second half of 2020. The branch will be located at 561 US-1, in the Wicks Shopping Plaza in Edison.  The Bank entered into an agreement to purchase a property located at 2057 86th Street, Brooklyn, New York, in the Bensonhurst neighborhood, to house a full-service branch.  We expect this branch to open in 2021.  

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California.  The Company has total assets of $3.1 billion. Its wholly-owned subsidiary, Royal Business 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, and three branches in the Chicago neighborhoods of Chinatown and Bridgeport.  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 ten branches in Los Angeles County, two branches in Ventura County, one branch in Irvine, California, one branch in Las Vegas, Nevada, six branches and one loan operation center in Brooklyn, Queens and Manhattan in New York, and three 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 Avenue, 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 28, 2020, to discuss the Company’s second quarter 2020 financial results.

To listen to the conference call, please dial 1-833-519-1355 or 1-918-922-6505, passcode 6968497. A replay of the call will be made available at 1-800-585-8367 or 1-404-537-3406, passcode 6968497, approximately one hour after the conclusion of the call and will remain available through August 4, 2020.

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.

5


 

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 DBO; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2019, 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.

6


 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, except for December 31, 2019)

(Dollars in thousands)

 

  

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

94,844

 

 

$

285,667

 

 

$

114,763

 

 

$

136,076

 

 

$

185,643

 

Federal funds sold and other cash equivalents

 

 

57,000

 

 

 

75,300

 

 

 

67,000

 

 

 

47,000

 

 

 

20,000

 

Total cash and cash equivalents

 

 

151,844

 

 

 

360,967

 

 

 

181,763

 

 

 

183,076

 

 

 

205,643

 

Interest-bearing deposits in other financial

   institutions

 

 

600

 

 

 

600

 

 

 

600

 

 

 

949

 

 

 

1,196

 

Investment securities available for sale

 

 

185,756

 

 

 

126,294

 

 

 

126,069

 

 

 

72,923

 

 

 

71,629

 

Investment securities held to maturity

 

 

7,615

 

 

 

7,825

 

 

 

8,332

 

 

 

8,724

 

 

 

8,733

 

Mortgage loans held for sale

 

 

15,479

 

 

 

52,096

 

 

 

108,194

 

 

 

259,339

 

 

 

249,596

 

Loans held for investment

 

 

2,594,620

 

 

 

2,399,982

 

 

 

2,196,934

 

 

 

2,126,145

 

 

 

2,092,438

 

Allowance for loan losses

 

 

(22,820

)

 

 

(20,130

)

 

 

(18,816

)

 

 

(19,386

)

 

 

(18,561

)

Net loans held for investment

 

 

2,571,800

 

 

 

2,379,852

 

 

 

2,178,118

 

 

 

2,106,759

 

 

 

2,073,877

 

Premises and equipment, net

 

 

23,965

 

 

 

24,472

 

 

 

16,813

 

 

 

16,871

 

 

 

17,214

 

Federal Home Loan Bank (FHLB) stock

 

 

15,641

 

 

 

15,630

 

 

 

15,000

 

 

 

15,000

 

 

 

15,000

 

Net deferred tax assets

 

 

 

 

 

 

 

 

2,326

 

 

 

4,378

 

 

 

4,318

 

Cash surrender value of life insurance

 

 

34,736

 

 

 

34,544

 

 

 

34,353

 

 

 

34,158

 

 

 

33,963

 

Goodwill

 

 

69,209

 

 

 

69,790

 

 

 

58,563

 

 

 

58,383

 

 

 

58,383

 

Servicing assets

 

 

15,595

 

 

 

16,826

 

 

 

17,083

 

 

 

17,180

 

 

 

17,587

 

Core deposit intangibles

 

 

5,876

 

 

 

6,234

 

 

 

6,100

 

 

 

6,444

 

 

 

6,828

 

Accrued interest and other assets

 

 

38,065

 

 

 

33,523

 

 

 

35,221

 

 

 

36,118

 

 

 

37,989

 

Total assets

 

$

3,136,181

 

 

$

3,128,653

 

 

$

2,788,535

 

 

$

2,820,302

 

 

$

2,801,956

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

574,553

 

 

$

504,324

 

 

$

458,763

 

 

$

446,141

 

 

$

435,629

 

Savings, NOW and money market accounts

 

 

601,941

 

 

 

571,870

 

 

 

537,490

 

 

 

493,965

 

 

 

462,448

 

Time deposits

 

 

1,260,026

 

 

 

1,359,787

 

 

 

1,252,685

 

 

 

1,311,817

 

 

 

1,337,257

 

Total deposits

 

 

2,436,520

 

 

 

2,435,981

 

 

 

2,248,938

 

 

 

2,251,923

 

 

 

2,235,334

 

Net deferred tax liabilities

 

 

656

 

 

 

312

 

 

 

 

 

 

 

 

 

 

FHLB advances

 

 

150,000

 

 

 

150,000

 

 

 

 

 

 

35,000

 

 

 

40,000

 

Long-term debt, net of debt issuance costs

 

 

104,220

 

 

 

104,135

 

 

 

104,049

 

 

 

103,964

 

 

 

103,878

 

Subordinated debentures

 

 

14,174

 

 

 

14,120

 

 

 

9,673

 

 

 

9,632

 

 

 

9,590

 

Accrued interest and other liabilities

 

 

16,586

 

 

 

16,112

 

 

 

18,185

 

 

 

20,942

 

 

 

19,334

 

Total liabilities

 

 

2,722,156

 

 

 

2,720,660

 

 

 

2,380,845

 

 

 

2,421,461

 

 

 

2,408,136

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholder's equity

 

 

412,827

 

 

 

407,332

 

 

 

407,379

 

 

 

398,438

 

 

 

393,758

 

Non-controlling interest

 

 

72

 

 

 

72

 

 

 

72

 

 

 

72

 

 

 

72

 

Accumulated other comprehensive income

   (loss) - Net of tax

 

 

1,126

 

 

 

589

 

 

 

239

 

 

 

331

 

 

 

(10

)

Total shareholders' equity

 

 

414,025

 

 

 

407,993

 

 

 

407,690

 

 

 

398,841

 

 

 

393,820

 

Total liabilities and stockholders’

   equity

 

$

3,136,181

 

 

$

3,128,653

 

 

$

2,788,535

 

 

$

2,820,302

 

 

$

2,801,956

 

 

7


 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

For the three months ended

 

 

 

June 30, 2020

 

 

March 31, 2020

 

 

June 30, 2019

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

32,633

 

 

$

32,276

 

 

$

34,240

 

Interest on interest-bearing deposits

 

 

74

 

 

 

451

 

 

 

515

 

Interest on investment securities

 

 

887

 

 

 

821

 

 

 

685

 

Dividend income on FHLB stock

 

 

187

 

 

 

2

 

 

 

379

 

Interest on federal funds sold and other

 

 

322

 

 

 

478

 

 

 

124

 

Total interest income

 

 

34,103

 

 

 

34,028

 

 

 

35,943

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

782

 

 

 

1,243

 

 

 

1,238

 

Interest on time deposits

 

 

5,933

 

 

 

7,086

 

 

 

7,797

 

Interest on subordinated debentures and long term debt

 

 

1,915

 

 

 

1,956

 

 

 

1,929

 

Interest on other borrowed funds

 

 

439

 

 

 

150

 

 

 

662

 

Total interest expense

 

 

9,069

 

 

 

10,435

 

 

 

11,626

 

Net interest income

 

 

25,034

 

 

 

23,593

 

 

 

24,317

 

Provision for loan losses

 

 

3,009

 

 

 

1,945

 

 

 

357

 

Net interest income after provision for loan losses

 

 

22,025

 

 

 

21,648

 

 

 

23,960

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Service charges, fees and other

 

 

1,065

 

 

 

1,079

 

 

 

1,222

 

Gain on sale of loans

 

 

81

 

 

 

2,711

 

 

 

3,120

 

Loan servicing fees, net of amortization

 

 

708

 

 

 

592

 

 

 

899

 

Recoveries on loans acquired in business combinations

 

 

5

 

 

 

42

 

 

 

55

 

Increase in cash surrender value of life insurance

 

 

191

 

 

 

191

 

 

 

194

 

Gain on sale of securities

 

 

158

 

 

 

 

 

 

 

Gain on sale of other real estate owned

 

 

 

 

 

 

 

 

6

 

Total noninterest income

 

 

2,208

 

 

 

4,615

 

 

 

5,496

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,103

 

 

 

9,505

 

 

 

8,169

 

Occupancy and equipment expenses

 

 

2,527

 

 

 

2,404

 

 

 

2,674

 

Data processing

 

 

882

 

 

 

1,142

 

 

 

1,219

 

Legal and professional

 

 

670

 

 

 

604

 

 

 

656

 

Office expenses

 

 

337

 

 

 

323

 

 

 

294

 

Marketing and business promotion

 

 

111

 

 

 

214

 

 

 

316

 

Insurance and regulatory assessments

 

 

233

 

 

 

177

 

 

 

284

 

Core deposit premium

 

 

357

 

 

 

357

 

 

 

385

 

OREO expenses/(income)

 

 

14

 

 

 

14

 

 

 

81

 

Merger and conversion expenses

 

 

276

 

 

 

403

 

 

 

15

 

Other expenses

 

 

1,309

 

 

 

1,120

 

 

 

806

 

Total noninterest expense

 

 

14,819

 

 

 

16,263

 

 

 

14,899

 

Income before income taxes

 

 

9,414

 

 

 

10,000

 

 

 

14,557

 

Income tax expense

 

 

2,901

 

 

 

3,252

 

 

 

4,415

 

Net income

 

$

6,513

 

 

$

6,748

 

 

$

10,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

0.34

 

 

$

0.51

 

Diluted

 

$

0.33

 

 

$

0.33

 

 

$

0.50

 

Cash Dividends declared per common share

 

$

0.06

 

 

$

0.12

 

 

$

0.10

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,710,330

 

 

 

19,971,856

 

 

 

20,074,651

 

Diluted

 

 

19,806,304

 

 

 

20,266,328

 

 

 

20,445,013

 

 

8


 

RBB BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the six months ended

 

 

 

June 30, 2020

 

 

June 30, 2019

 

Interest and dividend income:

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

64,909

 

 

$

70,079

 

Interest on interest-earning deposits

 

 

525

 

 

 

983

 

Interest on investment securities

 

 

1,708

 

 

 

1,273

 

Dividend income on FHLB stock

 

 

189

 

 

 

577

 

Interest on federal funds sold and other

 

 

800

 

 

 

237

 

Total interest income

 

 

68,131

 

 

 

73,149

 

Interest expense:

 

 

 

 

 

 

 

 

Interest on savings deposits, NOW and money market accounts

 

 

2,025

 

 

 

2,532

 

Interest on time deposits

 

 

13,019

 

 

 

13,750

 

Interest on subordinated debentures and long term debt

 

 

3,871

 

 

 

3,862

 

Interest on other borrowed funds

 

 

589

 

 

 

2,776

 

Total interest expense

 

 

19,504

 

 

 

22,920

 

Net interest income

 

 

48,627

 

 

 

50,229

 

Provision for loan losses

 

 

4,954

 

 

 

907

 

Net interest income after provision for loans losses

 

 

43,673

 

 

 

49,322

 

Noninterest income:

 

 

 

 

 

 

 

 

Service charges, fees and other

 

 

2,144

 

 

 

2,042

 

Gain on sale of loans

 

 

2,792

 

 

 

5,318

 

Loan servicing fees, net of amortization

 

 

1,300

 

 

 

1,739

 

Recoveries on loans acquired in business combinations

 

 

47

 

 

 

61

 

Unrealized gain on equity investments

 

 

 

 

 

147

 

Increase in cash surrender value of life insurance

 

 

382

 

 

 

385

 

Gain on sale of securities

 

 

158

 

 

 

 

Gain on sale of fixed assets

 

 

 

 

 

6

 

Total noninterest income

 

 

6,823

 

 

 

9,698

 

Noninterest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

17,608

 

 

 

17,287

 

Occupancy and equipment expenses

 

 

4,931

 

 

 

4,926

 

Data processing

 

 

2,024

 

 

 

2,228

 

Legal and professional

 

 

1,274

 

 

 

1,081

 

Office expenses

 

 

660

 

 

 

630

 

Marketing and business promotion

 

 

325

 

 

 

678

 

Insurance and regulatory assessments

 

 

410

 

 

 

582

 

Amortization of intangibles

 

 

714

 

 

 

773

 

OREO expenses

 

 

28

 

 

 

162

 

Merger expenses

 

 

679

 

 

 

86

 

Other expenses

 

 

2,429

 

 

 

1,791

 

Total noninterest expense

 

 

31,082

 

 

 

30,224

 

Income before income taxes

 

 

19,414

 

 

 

28,796

 

Income tax expense

 

 

6,153

 

 

 

8,274

 

Net income

 

$

13,261

 

 

$

20,522

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

Basic

 

$

0.67

 

 

$

1.02

 

Diluted

 

$

0.66

 

 

$

1.00

 

Cash Dividends declared per common share

 

$

0.18

 

 

$

0.20

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,841,093

 

 

 

20,061,258

 

Diluted

 

 

20,036,316

 

 

 

20,440,900

 

 

9


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, 2020

 

March 31, 2020

 

 

June 30, 2019

 

 

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)

 

$

231,943

 

 

$

583

 

 

1.01%

 

$

249,568

 

 

$

931

 

 

 

1.50

%

 

$

120,818

 

 

$

1,018

 

 

3.38%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

171,298

 

 

 

823

 

 

1.93%

 

 

138,574

 

 

 

755

 

 

2.19%

 

 

 

87,347

 

 

 

610

 

 

2.80%

Held to maturity (2)

 

 

7,661

 

 

 

72

 

 

3.78%

 

 

8,016

 

 

 

74

 

 

3.71%

 

 

 

9,127

 

 

 

84

 

 

3.69%

Mortgage loans held for sale

 

 

25,130

 

 

 

303

 

 

4.85%

 

 

78,063

 

 

 

981

 

 

5.05%

 

 

 

355,168

 

 

 

4,245

 

 

4.79%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,147,646

 

 

 

28,216

 

 

5.28%

 

 

2,007,286

 

 

 

26,428

 

 

5.30%

 

 

 

1,763,749

 

 

 

24,394

 

 

5.55%

Commercial

 

 

364,189

 

 

 

4,114

 

 

4.54%

 

 

337,548

 

 

 

4,867

 

 

5.80%

 

 

 

347,236

 

 

 

5,601

 

 

6.47%

Total loans

 

 

2,511,835

 

 

 

32,330

 

 

5.18%

 

 

2,344,834

 

 

 

31,295

 

 

5.37%

 

 

 

2,110,985

 

 

 

29,995

 

 

5.70%

Total earning assets

 

 

2,947,867

 

 

$

34,111

 

 

4.65%

 

 

2,819,055

 

 

$

34,036

 

 

 

4.86

%

 

 

2,683,445

 

 

$

35,952

 

 

5.37%

Noninterest-earning assets

 

 

206,833

 

 

 

 

 

 

 

 

 

212,568

 

 

 

 

 

 

 

 

 

 

 

166,719

 

 

 

 

 

 

 

Total assets

 

$

3,154,700

 

 

 

 

 

 

 

 

$

3,031,623

 

 

 

 

 

 

 

 

 

 

$

2,850,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market deposits

 

$

462,027

 

 

$

751

 

 

0.65%

 

$

475,843

 

 

$

1,188

 

 

1.00%

 

 

$

387,363

 

 

$

1,188

 

 

1.23%

Savings deposits

 

 

123,868

 

 

 

31

 

 

0.10%

 

 

114,951

 

 

 

55

 

 

0.19%

 

 

 

97,584

 

 

 

50

 

 

0.21%

Time deposits

 

 

1,314,232

 

 

 

5,933

 

 

1.82%

 

 

1,358,639

 

 

 

7,086

 

 

2.10%

 

 

 

1,338,631

 

 

 

7,797

 

 

2.34%

Total interest-bearing deposits

 

 

1,900,127

 

 

 

6,715

 

 

1.42%

 

 

1,949,433

 

 

 

8,329

 

 

1.72%

 

 

 

1,823,578

 

 

 

9,035

 

 

1.99%

FHLB advances

 

 

150,000

 

 

 

439

 

 

1.18%

 

 

51,978

 

 

 

150

 

 

 

1.18

%

 

 

95,220

 

 

 

662

 

 

2.79%

Long-term debt

 

 

104,168

 

 

 

1,747

 

 

6.75%

 

 

104,083

 

 

 

1,748

 

 

6.75%

 

 

 

103,826

 

 

 

1,748

 

 

6.75%

Subordinated debentures

 

 

14,141

 

 

 

168

 

 

4.78%

 

 

14,327

 

 

 

208

 

 

5.84%

 

 

 

9,564

 

 

 

181

 

 

7.59%

Total interest-bearing liabilities

 

 

2,168,436

 

 

 

9,069

 

 

1.68%

 

 

2,119,821

 

 

 

10,435

 

 

 

1.98

%

 

 

2,032,188

 

 

 

11,626

 

 

2.29%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

557,903

 

 

 

 

 

 

 

 

 

485,555

 

 

 

 

 

 

 

 

 

 

 

408,219

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

15,509

 

 

 

 

 

 

 

 

 

15,056

 

 

 

 

 

 

 

 

 

 

 

19,183

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

573,412

 

 

 

 

 

 

 

 

 

500,611

 

 

 

 

 

 

 

 

 

 

 

427,402

 

 

 

 

 

 

 

Shareholders' equity

 

 

412,852

 

 

 

 

 

 

 

 

 

411,191

 

 

 

 

 

 

 

 

 

 

 

390,574

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

3,154,700

 

 

 

 

 

 

 

 

$

3,031,623

 

 

 

 

 

 

 

 

 

 

$

2,850,164

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

25,042

 

 

2.97%

 

 

 

 

 

$

23,601

 

 

2.88%

 

 

 

 

 

 

$

24,326

 

 

3.08%

Net interest margin

 

 

 

 

 

 

 

 

 

3.42%

 

 

 

 

 

 

 

 

 

3.37%

 

 

 

 

 

 

 

 

 

 

3.64%

 

(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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10


 

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, 2020

 

June 30, 2019

 

 

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)

 

$

240,755

 

 

$

1,514

 

 

1.26%

 

$

111,601

 

 

$

1,798

 

 

3.25%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

 

154,936

 

 

 

1,578

 

 

2.05%

 

 

78,079

 

 

 

1,118

 

 

2.89%

Held to maturity (2)

 

 

7,839

 

 

 

147

 

 

3.77%

 

 

9,377

 

 

 

173

 

 

3.72%

Mortgage loans held for sale

 

 

51,595

 

 

 

1,284

 

 

5.00%

 

 

402,237

 

 

 

9,735

 

 

4.88%

Loans held for investment: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

 

2,077,466

 

 

 

54,644

 

 

5.29%

 

 

1,764,278

 

 

 

48,879

 

 

5.59%

Commercial

 

 

350,869

 

 

 

8,981

 

 

5.15%

 

 

349,818

 

 

 

11,465

 

 

6.61%

Total loans

 

 

2,428,336

 

 

 

63,625

 

 

5.27%

 

 

2,114,096

 

 

 

60,344

 

 

5.76%

Total earning assets

 

 

2,883,461

 

 

$

68,148

 

 

4.75%

 

 

2,715,390

 

 

$

73,168

 

 

5.43%

Noninterest-earning assets

 

 

209,699

 

 

 

 

 

 

 

 

 

166,968

 

 

 

 

 

 

 

Total assets

 

$

3,093,160

 

 

 

 

 

 

 

 

$

2,882,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market deposits

 

$

468,935

 

 

$

1,939

 

 

0.83%

 

$

400,584

 

 

$

2,430

 

 

1.22%

Savings deposits

 

 

119,410

 

 

 

86

 

 

0.14%

 

 

99,095

 

 

 

102

 

 

0.21%

Time deposits

 

 

1,336,435

 

 

 

13,019

 

 

1.96%

 

 

1,239,474

 

 

 

13,750

 

 

2.24%

Total interest-bearing deposits

 

 

1,924,780

 

 

 

15,044

 

 

1.57%

 

 

1,739,153

 

 

 

16,282

 

 

1.89%

FHLB advances

 

 

100,989

 

 

 

589

 

 

1.17%

 

 

216,638

 

 

 

2,776

 

 

2.58%

Long-term debt

 

 

104,125

 

 

 

3,495

 

 

6.75%

 

 

103,784

 

 

 

3,495

 

 

6.79%

Subordinated debentures

 

 

14,234

 

 

 

376

 

 

5.31%

 

 

9,544

 

 

 

367

 

 

7.75%

Total interest-bearing liabilities

 

 

2,144,128

 

 

$

19,504

 

 

1.83%

 

 

2,069,119

 

 

$

22,920

 

 

2.23%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

521,729

 

 

 

 

 

 

 

 

 

406,713

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

15,282

 

 

 

 

 

 

 

 

 

19,582

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

537,011

 

 

 

 

 

 

 

 

 

426,295

 

 

 

 

 

 

 

Shareholders' equity

 

 

412,021

 

 

 

 

 

 

 

 

 

386,944

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

3,093,160

 

 

 

 

 

 

 

 

$

2,882,358

 

 

 

 

 

 

 

Net interest income / interest rate spreads

 

 

 

 

 

$

48,644

 

 

2.92%

 

 

 

 

 

$

50,248

 

 

3.20%

Net interest margin

 

 

 

 

 

 

 

 

 

3.39%

 

 

 

 

 

 

 

 

 

3.73%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11


 

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,

 

 

 

2020

 

 

2020

 

 

2019

 

Per share data (common stock)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

0.34

 

 

$

0.51

 

Diluted

 

$

0.33

 

 

$

0.33

 

 

$

0.50

 

Dividends declared

 

$

0.06

 

 

$

0.12

 

 

$

0.10

 

Basic, excluding merger and conversion expense

 

$

0.34

 

 

$

0.35

 

 

$

0.51

 

Diluted, excluding merger and conversion expense

 

$

0.34

 

 

$

0.35

 

 

$

0.50

 

Book value

 

$

20.97

 

 

$

20.67

 

 

$

19.61

 

Tangible book value

 

$

17.17

 

 

$

16.82

 

 

$

16.37

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,710,330

 

 

 

19,971,856

 

 

 

20,074,651

 

Diluted

 

 

19,806,304

 

 

 

20,266,328

 

 

 

20,445,013

 

Shares outstanding at period end

 

 

19,739,280

 

 

 

19,739,280

 

 

 

20,077,524

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

0.83%

 

 

0.90%

 

 

 

1.43

%

Return on average shareholders' equity, annualized

 

6.34%

 

 

6.60%

 

 

10.42%

 

Return on average tangible common equity, annualized

 

7.77%

 

 

8.13%

 

 

 

12.51

%

Noninterest income to average assets, annualized

 

0.28%

 

 

0.61%

 

 

0.77%

 

Noninterest expense to average assets, annualized

 

1.89%

 

 

2.16%

 

 

 

2.10

%

Yield on average earning assets

 

4.65%

 

 

4.86%

 

 

5.37%

 

Cost of average total deposits

 

1.10%

 

 

1.38%

 

 

 

1.62

%

Cost of average interest-bearing deposits

 

1.42%

 

 

1.72%

 

 

1.99%

 

Cost of average interest-bearing liabilities

 

1.68%

 

 

1.98%

 

 

2.29%

 

Accretion on loans to average earning assets

 

0.14%

 

 

0.10%

 

 

 

0.11

%

Net interest spread

 

2.97%

 

 

2.88%

 

 

3.08%

 

Net interest margin

 

3.42%

 

 

3.37%

 

 

3.64%

 

Efficiency ratio

 

54.40%

 

 

57.65%

 

 

 

49.97

%

Common stock dividend payout ratio

 

18.18%

 

 

35.29%

 

 

19.61%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12


 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

For the six months ended June 30,

 

 

 

2020

 

 

2019

 

Per share data (common stock)

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

Basic

 

$

0.67

 

 

$

1.02

 

Diluted

 

$

0.66

 

 

$

1.00

 

Basic, excluding merger expense

 

$

0.69

 

 

$

1.03

 

Diluted, excluding merger expense

 

$

0.68

 

 

$

1.01

 

Dividends declared

 

$

0.18

 

 

$

0.20

 

Book value

 

$

20.97

 

 

$

19.61

 

Tangible book value

 

$

17.17

 

 

$

16.37

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,841,093

 

 

 

20,061,258

 

Diluted

 

 

20,036,316

 

 

 

20,440,900

 

Shares outstanding at period end

 

 

19,739,280

 

 

 

20,077,524

 

Performance ratios

 

 

 

 

 

 

 

 

Return on average assets, annualized

 

0.86%

 

 

1.44%

 

Return on average shareholders' equity, annualized

 

6.47%

 

 

 

10.69

%

Return on average tangible common equity, annualized

 

7.95%

 

 

12.88%

 

Noninterest income to average assets, annualized

 

0.44%

 

 

0.68%

 

Noninterest expense to average assets, annualized

 

2.02%

 

 

2.11%

 

Yield on average earning assets

 

4.75%

 

 

5.43%

 

Cost of average deposits

 

1.24%

 

 

 

1.53

%

Cost of average interest-bearing deposits

 

1.57%

 

 

1.89%

 

Cost of average interest-bearing liabilities

 

1.83%

 

 

2.23%

 

Accretion on loans to average earning assets

 

0.13%

 

 

 

0.13

%

Net interest spread

 

2.92%

 

 

3.20%

 

Net interest margin

 

3.39%

 

 

3.73%

 

Efficiency ratio

 

56.05%

 

 

50.43%

 

Common stock dividend payout ratio

 

26.87%

 

 

 

19.92

%

13


 

RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

As of

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

2020

 

 

2020

 

 

2019

 

Loan to deposit ratio

 

106.49%

 

 

 

98.51

%

 

93.61%

 

Core deposits / total deposits

 

76.84%

 

 

 

72.75

%

 

 

67.22

%

Net non-core funding dependence ratio

 

 

13.39

%

 

 

14.91

%

 

 

18.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days past due

 

$

23,872

 

 

$

22,488

 

 

$

4,230

 

Loans 30-89 days past due to total loans

 

0.92%

 

 

 

0.94

%

 

 

0.20

%

Loans 90 days past due and still accruing

 

$

 

 

$

225

 

 

$

 

Nonperforming loans

 

$

17,217

 

 

$

20,499

 

 

$

6,285

 

Nonperforming loans to total loans

 

0.66%

 

 

 

0.85

%

 

 

0.30

%

Nonperforming assets

 

$

17,510

 

 

$

20,792

 

 

$

8,360

 

Nonperforming assets to total assets

 

0.56%

 

 

 

0.66

%

 

 

0.30

%

Allowance for loan losses to total loans

 

0.88%

 

 

 

0.84

%

 

0.89%

 

Allowance for loan losses to nonperforming loans

 

132.54%

 

 

 

98.20

%

 

295.32%

 

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

 

0.05%

 

 

 

0.11

%

 

 

0.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory and other capital ratios—Company

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

11.07

%

 

 

10.87

%

 

 

12.01

%

Tier 1 leverage ratio

 

 

11.48

%

 

 

11.74

%

 

 

12.19

%

Tier 1 common capital to risk-weighted assets

 

 

14.87

%

 

 

15.45

%

 

 

16.96

%

Tier 1 capital to risk-weighted assets

 

 

15.49

%

 

 

16.10

%

 

 

17.45

%

Total capital to risk-weighted assets

 

 

21.10

%

 

 

21.91

%

 

 

23.77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory capital ratios—Bank only

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

14.14

%

 

 

14.44

%

 

 

14.17

%

Tier 1 common capital to risk-weighted assets

 

 

19.09

%

 

 

19.79

%

 

 

20.31

%

Tier 1 capital to risk-weighted assets

 

 

19.09

%

 

 

19.79

%

 

 

20.31

%

Total capital to risk-weighted assets

 

 

20.13

%

 

 

20.77

%

 

 

21.30

%

 

14


 

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

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

32,633

 

 

$

32,276

 

 

$

32,178

 

 

$

32,902

 

 

$

34,240

 

Investment securities and other

 

 

1,470

 

 

 

1,752

 

 

 

1,729

 

 

 

1,767

 

 

 

1,703

 

Total interest income

 

 

34,103

 

 

 

34,028

 

 

 

33,907

 

 

 

34,669

 

 

 

35,943

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

6,715

 

 

 

8,329

 

 

 

8,796

 

 

 

9,155

 

 

 

9,035

 

Interest on subordinated debentures and other

 

 

1,915

 

 

 

1,956

 

 

 

1,915

 

 

 

1,921

 

 

 

1,929

 

Other borrowings

 

 

439

 

 

 

150

 

 

 

73

 

 

 

81

 

 

 

662

 

Total interest expense

 

 

9,069

 

 

 

10,435

 

 

 

10,784

 

 

 

11,157

 

 

 

11,626

 

Net interest income before provision for loan losses

 

 

25,034

 

 

 

23,593

 

 

 

23,123

 

 

 

23,512

 

 

 

24,317

 

Provision for loan losses

 

 

3,009

 

 

 

1,945

 

 

 

659

 

 

 

824

 

 

 

357

 

Net interest income after provision for loan losses

 

 

22,025

 

 

 

21,648

 

 

 

22,464

 

 

 

22,688

 

 

 

23,960

 

Noninterest income

 

 

2,208

 

 

 

4,615

 

 

 

5,823

 

 

 

2,799

 

 

 

5,496

 

Noninterest expense

 

 

14,819

 

 

 

16,263

 

 

 

13,463

 

 

 

13,786

 

 

 

14,899

 

Earnings before income taxes

 

 

9,414

 

 

 

10,000

 

 

 

14,824

 

 

 

11,701

 

 

 

14,557

 

Income taxes

 

 

2,901

 

 

 

3,252

 

 

 

4,149

 

 

 

3,689

 

 

 

4,415

 

Net income

 

$

6,513

 

 

$

6,748

 

 

$

10,675

 

 

$

8,012

 

 

$

10,142

 

Net income per common share - basic

 

$

0.33

 

 

$

0.34

 

 

$

0.53

 

 

$

0.40

 

 

$

0.51

 

Net income per common share - diluted

 

$

0.33

 

 

$

0.33

 

 

$

0.52

 

 

$

0.39

 

 

$

0.50

 

Cash dividends declared per common share

 

$

0.06

 

 

$

0.12

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

Cash dividends declared on common shares

 

$

1,184

 

 

$

2,407

 

 

$

2,003

 

 

$

2,016

 

 

$

2,007

 

Yield on average assets, annualized

 

0.83%

 

 

 

0.90

%

 

1.51%

 

 

1.15%

 

 

1.43%

 

Yield on average earning assets

 

4.65%

 

 

 

4.86

%

 

 

5.09

%

 

5.29%

 

 

5.37%

 

Cost of average deposits

 

1.10%

 

 

 

1.38

%

 

 

1.55

%

 

1.63%

 

 

1.62%

 

Cost of average interest-bearing deposits

 

1.42%

 

 

 

1.72

%

 

 

1.93

%

 

2.02%

 

 

1.99%

 

Cost of average interest-bearing liabilities

 

1.68%

 

 

 

1.98

%

 

 

2.21

%

 

2.30%

 

 

2.29%

 

Accretion on loans to average earning assets

 

0.14%

 

 

0.10%

 

 

0.10%

 

 

 

0.10

%

 

 

0.11

%

Net interest margin

 

3.42%

 

 

 

3.37

%

 

 

3.47

%

 

3.59%

 

 

3.64%

 

 

 

 

15


RBB BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited, except for December 31, 2019)

(Dollars in thousands, except per share amounts)

 

Loan Portfolio Detail

 

As of

June 30, 2020

 

 

As of

March 31, 2020

 

 

As of

December 31, 2019

 

 

As of

September 30, 2019

 

 

As of

June 30, 2019

 

(dollars in thousands)

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

267,481

 

 

 

10.3

 

 

$

275,602

 

 

 

11.5

 

 

$

274,586

 

 

 

12.5

 

 

$

276,478

 

 

 

13.0

 

 

$

283,920

 

 

 

13.6

 

SBA

 

 

104,069

 

 

 

4.0

 

 

 

77,566

 

 

 

3.2

 

 

 

74,985

 

 

 

3.4

 

 

 

70,978

 

 

 

3.3

 

 

 

79,475

 

 

 

3.8

 

Construction and land development

 

 

145,754

 

 

 

5.6

 

 

 

120,115

 

 

 

5.0

 

 

 

96,020

 

 

 

4.4

 

 

 

101,649

 

 

 

4.8

 

 

 

118,806

 

 

 

5.7

 

Commercial real estate (1)

 

 

900,302

 

 

 

34.7

 

 

 

854,580

 

 

 

35.6

 

 

 

793,268

 

 

 

36.1

 

 

 

787,927

 

 

 

37.1

 

 

 

756,452

 

 

 

36.2

 

Single-family residential mortgages

 

 

1,174,927

 

 

 

45.3

 

 

 

1,070,649

 

 

 

44.6

 

 

 

957,254

 

 

 

43.6

 

 

 

888,577

 

 

 

41.8

 

 

 

853,403

 

 

 

40.7

 

Other loans

 

 

2,087

 

 

 

0.1

 

 

 

1,470

 

 

 

0.1

 

 

 

821

 

 

 

0.0

 

 

 

536

 

 

 

0.0

 

 

 

382

 

 

 

0.0

 

Total loans (2)

 

$

2,594,620

 

 

 

100.0

 

 

$

2,399,982

 

 

 

100.0

 

 

$

2,196,934

 

 

 

100.0

 

 

$

2,126,145

 

 

 

100.0

 

 

$

2,092,438

 

 

 

100.0

 

Allowance for loan losses

 

 

(22,820

)

 

 

 

 

 

 

(20,130

)

 

 

 

 

 

 

(18,816

)

 

 

 

 

 

 

(19,386

)

 

 

 

 

 

 

(18,561

)

 

 

 

 

Total loans, net

 

$

2,571,800

 

 

 

 

 

 

$

2,379,852

 

 

 

 

 

 

$

2,178,118

 

 

 

 

 

 

$

2,106,759

 

 

 

 

 

 

$

2,073,877

 

 

 

 

 

 

(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)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Beginning balance

 

$

20,130

 

 

$

18,236

 

 

$

18,816

 

 

$

17,577

 

Additions to the allowance charged to expense

 

 

3,009

 

 

 

357

 

 

 

4,954

 

 

 

907

 

Net (charge-offs) recoveries on loans

 

 

(319

)

 

 

(32

)

 

 

(950

)

 

 

77

 

Ending balance

 

$

22,820

 

 

$

18,561

 

 

$

22,820

 

 

$

18,561

 

 

16


 

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, 2020 and 2019.

 

  

 

June 30,

 

(dollars in thousands, except per share data)

 

2020

 

 

2019

 

Tangible common equity:

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

414,025

 

 

$

393,820

 

Adjustments

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,209

)

 

 

(58,383

)

Core deposit intangible

 

 

(5,876

)

 

 

(6,828

)

Tangible common equity

 

$

338,940

 

 

$

328,609

 

Tangible assets:

 

 

 

 

 

 

 

 

Total assets-GAAP

 

$

3,136,181

 

 

$

2,801,956

 

Adjustments

 

 

 

 

 

 

 

 

Goodwill

 

 

(69,209

)

 

 

(58,383

)

Core deposit intangible

 

 

(5,876

)

 

 

(6,828

)

Tangible assets

 

$

3,061,096

 

 

$

2,736,745

 

Common shares outstanding

 

 

19,739,280

 

 

 

20,077,524

 

Tangible common equity to tangible assets ratio

 

 

11.07

%

 

 

12.01

%

Book value per share

 

$

20.97

 

 

$

19.61

 

Tangible book value per share

 

$

17.17

 

 

$

16.37

 

 

Earnings Per Share Excluding Merger and Conversion Expense (non-GAAP)

 

Earnings per share excluding merger and conversion expense 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 calculation of earnings per share with after-tax net income excluding tax-affected merger and conversion expense.  This EPS calculation is presented for the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019, plus for the six-month periods ending June 30, 2020 and 2019.

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

June 30, 2020

 

 

March 31, 2020

 

 

June 30, 2019

 

 

June 30, 2020

 

 

June 30, 2019

 

Earnings Per Share Excluding Merger and Conversion Expense (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income after tax

 

$

6,513

 

 

$

6,748

 

 

$

10,142

 

 

$

13,261

 

 

$

20,522

 

Merger and conversion expense

 

 

276

 

 

 

403

 

 

 

100

 

 

 

679

 

 

 

282

 

Tax on merger and conversion expense

 

 

(85

)

 

 

(131

)

 

 

(30

)

 

 

(215

)

 

 

(81

)

Net adjustment

 

 

191

 

 

 

272

 

 

 

70

 

 

 

464

 

 

 

201

 

Adjusted net income after tax

 

$

6,704

 

 

$

7,020

 

 

$

10,212

 

 

$

13,725

 

 

$

20,723

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,710,330

 

 

 

19,971,856

 

 

 

20,074,651

 

 

 

19,841,093

 

 

 

20,061,258

 

Diluted

 

 

19,806,304

 

 

 

20,266,328

 

 

 

20,445,013

 

 

 

20,036,316

 

 

 

20,440,900

 

Adjusted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic, excluding merger and conversion expense

 

$

0.34

 

 

$

0.35

 

 

$

0.51

 

 

$

0.69

 

 

$

1.03

 

Diluted, excluding merger and conversion expense

 

$

0.34

 

 

$

0.35

 

 

$

0.50

 

 

$

0.68

 

 

$

1.01

 

 

Efficiency Ratio (non-GAAP)

 

The efficiency ratio is a non-GAAP disclosure.  The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The efficiency ratio is non-interest expense divided by net interest income plus non-interest income.  The efficiency ratio is presented for the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019, plus the six-month periods ending June 30, 2020 and 2019.

 

17


 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

June 30, 2020

 

 

March 31, 2020

 

 

June 30, 2019

 

 

June 30, 2020

 

 

June 30, 2019

 

Efficiency Ratio (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

14,819

 

 

$

16,263

 

 

$

14,899

 

 

$

31,082

 

 

$

30,224

 

Net interest income

 

 

25,034

 

 

 

23,593

 

 

 

24,317

 

 

 

48,627

 

 

 

50,229

 

Non-interest income

 

 

2,208

 

 

 

4,615

 

 

 

5,496

 

 

 

6,823

 

 

 

9,698

 

Net interest income and non-interest income

 

$

27,242

 

 

$

28,208

 

 

$

29,813

 

 

$

55,450

 

 

$

59,927

 

Efficiency ratio

 

 

54.40

%

 

 

57.65

%

 

 

49.97

%

 

 

56.05

%

 

 

50.43

%

 

18

rbb-ex992_10.htm

 

Exhibit 99.2

 

 

Press Release

For Immediate Release

 

 

 

 

 

 

 

 

Contacts: Yee Phong (Alan) Thian

 

 

 

                 Chairman, President and CEO

 

 

 

                 (626) 307-7559

 

 

 

                 David Morris

 

 

 

                 Executive Vice President and CFO

 

 

 

                 (714) 670-2488

 

RBB Bancorp Declares Quarterly Cash Dividend of $0.06 Per Share

Los Angeles, CA, July 24, 2020 - 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 that its Board of Directors has declared a quarterly cash dividend of $0.06 per share. The dividend is payable on August 17, 2020 to common shareholders of record as of August 3, 2020.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California.  As of March 31, 2020, the company had total assets of $3.1 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, and three branches in the Chicago neighborhoods of Chinatown and Bridgeport.  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 ten branches in Los Angeles County, two branches in Ventura County, one branch in Irvine, California, one branch in Las Vegas, Nevada, seven branches and one loan operation center in Brooklyn, Queens and Manhattan in New York, and three 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 Avenue, Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com.