rbb20210331_10q.htm
0001499422 RBB Bancorp false --12-31 Q1 2021 7,020 7,603 100,000,000 100,000,000 0 0 0 0 100,000,000 100,000,000 0 0 19,528,249 19,528,249 19,565,921 19,565,921 26.8 0 14.9 0 0 6 6 0 506,000 506,000 69.2 5 30 5 5 5 0 0 3 6.0 6.0 6.0 4.13 2.78 0 293,000 2021 2029 May 14, 2021 May 7, 2021 Loans, net of deferred fees Included in total loans. The amounts primarily represent revenue from contracts with customers that are out of scope of ASC 606: Net loan servicing income, letter of credit commissions, import/export commissions, recoveries on purchased loans, BOLI income, and gains (losses) on sales of mortgage loans, loans and investment securities. Other income consists of safe deposit box rental income, wire transfer fees, security brokerage fees, annuity sales, insurance activity and OREO income. Other fees consists of wealth management fees, miscellaneous loan fees and postage/courier fees. There were no adjustments to the Company's financial statements recorded as a result of the adoption of ASC 606. 00014994222021-01-012021-03-31 xbrli:shares 00014994222021-05-03 thunderdome:item iso4217:USD 00014994222021-03-31 00014994222020-12-31 iso4217:USDxbrli:shares 00014994222020-01-012020-03-31 0001499422us-gaap:CommonStockMember2020-12-31 0001499422us-gaap:AdditionalPaidInCapitalMember2020-12-31 0001499422us-gaap:RetainedEarningsMember2020-12-31 0001499422us-gaap:NoncontrollingInterestMember2020-12-31 0001499422us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-31 0001499422us-gaap:CommonStockMember2021-01-012021-03-31 0001499422us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-31 0001499422us-gaap:RetainedEarningsMember2021-01-012021-03-31 0001499422us-gaap:NoncontrollingInterestMember2021-01-012021-03-31 0001499422us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-31 0001499422us-gaap:CommonStockMember2021-03-31 0001499422us-gaap:AdditionalPaidInCapitalMember2021-03-31 0001499422us-gaap:RetainedEarningsMember2021-03-31 0001499422us-gaap:NoncontrollingInterestMember2021-03-31 0001499422us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-31 0001499422us-gaap:CommonStockMember2019-12-31 0001499422us-gaap:AdditionalPaidInCapitalMember2019-12-31 0001499422us-gaap:RetainedEarningsMember2019-12-31 0001499422us-gaap:NoncontrollingInterestMember2019-12-31 0001499422us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-31 00014994222019-12-31 0001499422us-gaap:CommonStockMember2020-01-012020-03-31 0001499422us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-31 0001499422us-gaap:RetainedEarningsMember2020-01-012020-03-31 0001499422us-gaap:NoncontrollingInterestMember2020-01-012020-03-31 0001499422us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-31 0001499422us-gaap:CommonStockMember2020-03-31 0001499422us-gaap:AdditionalPaidInCapitalMember2020-03-31 0001499422us-gaap:RetainedEarningsMember2020-03-31 0001499422us-gaap:NoncontrollingInterestMember2020-03-31 0001499422us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-31 00014994222020-03-31 xbrli:pure 00014994222011-07-082020-01-10 0001499422us-gaap:AccountingStandardsUpdate201602Member2021-01-01 0001499422rbb:PGPHoldingsIncMember2020-01-102020-01-10 0001499422rbb:PGPHoldingsIncMember2020-01-10 0001499422us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-01-10 0001499422us-gaap:ChangeDuringPeriodFairValueDisclosureMember2020-01-10 00014994222020-01-10 00014994222020-01-102020-01-10 0001499422rbb:PGPHoldingsIncMember2021-01-012021-03-31 0001499422rbb:PGPHoldingsIncMember2020-01-012020-03-31 0001499422us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-31 0001499422rbb:SmallBusinessAdministrationAgencySecuritiesMember2021-03-31 0001499422us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-03-31 0001499422us-gaap:CollateralizedMortgageObligationsMember2021-03-31 0001499422us-gaap:CommercialPaperMember2021-03-31 0001499422us-gaap:CorporateDebtSecuritiesMember2021-03-31 0001499422us-gaap:MunicipalBondsMember2021-03-31 0001499422us-gaap:TaxableMunicipalBondsMember2021-03-31 0001499422us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-31 0001499422rbb:SmallBusinessAdministrationAgencySecuritiesMember2020-12-31 0001499422us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-31 0001499422us-gaap:CollateralizedMortgageObligationsMember2020-12-31 0001499422us-gaap:CommercialPaperMember2020-12-31 0001499422us-gaap:CorporateDebtSecuritiesMember2020-12-31 0001499422us-gaap:MunicipalBondsMember2020-12-31 0001499422us-gaap:TaxableMunicipalBondsMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMember2020-12-31 0001499422rbb:OtherFinancingReceivablesMember2020-12-31 0001499422us-gaap:UnallocatedFinancingReceivablesMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-31 0001499422us-gaap:CommercialPortfolioSegmentMember2019-12-31 0001499422rbb:OtherFinancingReceivablesMember2019-12-31 0001499422us-gaap:UnallocatedFinancingReceivablesMember2019-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMember2021-01-012021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMember2021-01-012021-03-31 0001499422rbb:OtherFinancingReceivablesMember2021-01-012021-03-31 0001499422us-gaap:UnallocatedFinancingReceivablesMember2021-01-012021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMember2020-01-012020-03-31 0001499422us-gaap:CommercialPortfolioSegmentMember2020-01-012020-03-31 0001499422rbb:OtherFinancingReceivablesMember2020-01-012020-03-31 0001499422us-gaap:UnallocatedFinancingReceivablesMember2020-01-012020-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMember2021-03-31 0001499422rbb:OtherFinancingReceivablesMember2021-03-31 0001499422us-gaap:UnallocatedFinancingReceivablesMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMember2020-03-31 0001499422us-gaap:CommercialPortfolioSegmentMember2020-03-31 0001499422rbb:OtherFinancingReceivablesMember2020-03-31 0001499422us-gaap:UnallocatedFinancingReceivablesMember2020-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMember2020-01-012020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMember2020-01-012020-12-31 0001499422rbb:OtherFinancingReceivablesMember2020-01-012020-12-31 0001499422us-gaap:UnallocatedFinancingReceivablesMember2020-01-012020-12-31 00014994222020-01-012020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SpecificReserveMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SpecificReserveMember2021-03-31 0001499422rbb:OtherFinancingReceivablesMemberrbb:SpecificReserveMember2021-03-31 0001499422us-gaap:UnallocatedFinancingReceivablesMemberrbb:SpecificReserveMember2021-03-31 0001499422rbb:SpecificReserveMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:GeneralReservesMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:GeneralReservesMember2021-03-31 0001499422rbb:OtherFinancingReceivablesMemberrbb:GeneralReservesMember2021-03-31 0001499422us-gaap:UnallocatedFinancingReceivablesMemberrbb:GeneralReservesMember2021-03-31 0001499422rbb:GeneralReservesMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SpecificReserveMember2020-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SpecificReserveMember2020-03-31 0001499422rbb:OtherFinancingReceivablesMemberrbb:SpecificReserveMember2020-03-31 0001499422us-gaap:UnallocatedFinancingReceivablesMemberrbb:SpecificReserveMember2020-03-31 0001499422rbb:SpecificReserveMember2020-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:GeneralReservesMember2020-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:GeneralReservesMember2020-03-31 0001499422rbb:OtherFinancingReceivablesMemberrbb:GeneralReservesMember2020-03-31 0001499422us-gaap:UnallocatedFinancingReceivablesMemberrbb:GeneralReservesMember2020-03-31 0001499422rbb:GeneralReservesMember2020-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SpecificReserveMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SpecificReserveMember2020-12-31 0001499422rbb:OtherFinancingReceivablesMemberrbb:SpecificReserveMember2020-12-31 0001499422us-gaap:UnallocatedFinancingReceivablesMemberrbb:SpecificReserveMember2020-12-31 0001499422rbb:SpecificReserveMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:GeneralReservesMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:GeneralReservesMember2020-12-31 0001499422rbb:OtherFinancingReceivablesMemberrbb:GeneralReservesMember2020-12-31 0001499422us-gaap:UnallocatedFinancingReceivablesMemberrbb:GeneralReservesMember2020-12-31 0001499422rbb:GeneralReservesMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:PassMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:SpecialMentionMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:SubstandardMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberrbb:ImpairedMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:PassMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:SpecialMentionMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:SubstandardMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberrbb:ImpairedMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:PassMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:SpecialMentionMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:SubstandardMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberrbb:ImpairedMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:PassMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:SpecialMentionMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:SubstandardMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberrbb:ImpairedMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:PassMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:SpecialMentionMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:SubstandardMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberrbb:ImpairedMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:PassMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:SpecialMentionMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:SubstandardMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberrbb:ImpairedMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMember2021-03-31 0001499422us-gaap:PassMember2021-03-31 0001499422us-gaap:SpecialMentionMember2021-03-31 0001499422us-gaap:SubstandardMember2021-03-31 0001499422rbb:ImpairedMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:PassMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:SpecialMentionMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:SubstandardMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberrbb:ImpairedMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:PassMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:SpecialMentionMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberus-gaap:SubstandardMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMemberrbb:ImpairedMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateLoanMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:PassMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:SpecialMentionMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:SubstandardMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberrbb:ImpairedMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:PassMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:SpecialMentionMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:SubstandardMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberrbb:ImpairedMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:PassMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:SpecialMentionMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:SubstandardMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberrbb:ImpairedMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:PassMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:SpecialMentionMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:SubstandardMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberrbb:ImpairedMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMember2020-12-31 0001499422us-gaap:PassMember2020-12-31 0001499422us-gaap:SpecialMentionMember2020-12-31 0001499422us-gaap:SubstandardMember2020-12-31 0001499422rbb:ImpairedMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-31 0001499422us-gaap:FinancingReceivables30To59DaysPastDueMember2021-03-31 0001499422us-gaap:FinancingReceivables60To89DaysPastDueMember2021-03-31 0001499422us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansHeldForSaleMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansHeldForSaleMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansHeldForSaleMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansHeldForSaleMember2021-03-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:ConstructionAndLandDevelopmentLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialAndIndustrialSectorMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationAgencySecuritiesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:OtherLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-31 0001499422us-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-31 0001499422us-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-31 0001499422us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansHeldForSaleMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansHeldForSaleMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansHeldForSaleMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-12-31 0001499422us-gaap:CommercialRealEstatePortfolioSegmentMemberrbb:SingleFamilyResidentialMortgagesLoansHeldForSaleMember2020-12-31 0001499422rbb:ConstructionAndLandDevelopmentLoansMember2021-03-31 0001499422us-gaap:CommercialAndIndustrialSectorMember2021-03-31 0001499422us-gaap:CommercialRealEstateMember2021-03-31 0001499422us-gaap:ResidentialMortgageMember2021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationLoansMember2021-03-31 0001499422rbb:SingleFamilyResidentialMortgagesLoansMember2021-03-31 0001499422rbb:ConstructionAndLandDevelopmentLoansMember2020-12-31 0001499422us-gaap:CommercialAndIndustrialSectorMember2020-12-31 0001499422us-gaap:CommercialRealEstateMember2020-12-31 0001499422us-gaap:ResidentialMortgageMember2020-12-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationLoansMember2020-12-31 0001499422rbb:OtherFinancingReceivablesMember2020-12-31 0001499422rbb:ConstructionAndLandDevelopmentLoansMember2021-01-012021-03-31 0001499422rbb:ConstructionAndLandDevelopmentLoansMember2020-01-012020-03-31 0001499422us-gaap:CommercialAndIndustrialSectorMember2021-01-012021-03-31 0001499422us-gaap:CommercialAndIndustrialSectorMember2020-01-012020-03-31 0001499422us-gaap:CommercialRealEstateMember2021-01-012021-03-31 0001499422us-gaap:CommercialRealEstateMember2020-01-012020-03-31 0001499422us-gaap:ResidentialMortgageMember2021-01-012021-03-31 0001499422us-gaap:ResidentialMortgageMember2020-01-012020-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationLoansMember2021-01-012021-03-31 0001499422us-gaap:CommercialPortfolioSegmentMemberrbb:SmallBusinessAdministrationLoansMember2020-01-012020-03-31 0001499422rbb:OneLoanMemberrbb:SpecificReserveMember2021-03-31 0001499422rbb:OneLoanMemberrbb:SpecificReserveMember2020-12-31 0001499422us-gaap:MortgagesMember2021-03-31 0001499422us-gaap:MortgagesMember2020-12-31 0001499422rbb:SmallBusinessAdministrationLoansMember2021-03-31 0001499422rbb:SmallBusinessAdministrationLoansMember2020-12-31 0001499422rbb:CommericalRealEstateLoansMember2021-03-31 0001499422rbb:CommericalRealEstateLoansMember2020-12-31 0001499422rbb:SbaLoansMember2021-03-31 0001499422rbb:SbaLoansMember2020-12-31 0001499422us-gaap:MortgagesMember2019-12-31 0001499422rbb:SmallBusinessAdministrationLoansMember2019-12-31 0001499422us-gaap:MortgagesMember2021-01-012021-03-31 0001499422rbb:SmallBusinessAdministrationLoansMember2021-01-012021-03-31 0001499422us-gaap:MortgagesMember2020-01-012020-03-31 0001499422rbb:SmallBusinessAdministrationLoansMember2020-01-012020-03-31 0001499422us-gaap:MortgagesMember2020-03-31 0001499422rbb:SmallBusinessAdministrationLoansMember2020-03-31 utr:Y 0001499422us-gaap:CoreDepositsMembersrt:MinimumMember2021-01-012021-03-31 0001499422us-gaap:CoreDepositsMembersrt:MaximumMember2021-01-012021-03-31 0001499422us-gaap:CoreDepositsMember2021-01-012021-03-31 0001499422us-gaap:CoreDepositsMember2020-01-012020-03-31 0001499422us-gaap:CoreDepositsMember2021-03-31 0001499422rbb:SixPointFivePercentFixedToFloatingRateSubordinatedDebenturesDueMarchThirtyFirstTwoThousandTwentySixMember2016-03-31 0001499422rbb:SixPointFivePercentFixedToFloatingRateSubordinatedDebenturesDueMarchThirtyFirstTwoThousandTwentySixMemberus-gaap:LondonInterbankOfferedRateLIBORMember2016-03-31 0001499422rbb:SixPointFivePercentFixedToFloatingRateSubordinatedDebenturesDueMarchThirtyFirstTwoThousandTwentySixMember2016-03-012016-03-31 0001499422rbb:FourPercentFixedToFloatingRateSubordinatedDebenturesDueAprilFirstTwoThousandThirtyOneMember2021-03-31 0001499422rbb:FourPercentFixedToFloatingRateSubordinatedDebenturesDueAprilFirstTwoThousandThirtyOneMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-03-012021-03-31 0001499422rbb:TfcStatutoryTrustMemberus-gaap:PrivatePlacementMember2021-01-012021-03-31 0001499422rbb:TfcStatutoryTrustMemberus-gaap:PrivatePlacementMember2021-03-31 0001499422rbb:TfcStatutoryTrustMemberus-gaap:SubordinatedDebtMember2021-03-31 0001499422rbb:TfcStatutoryTrustMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001499422us-gaap:OtherAssetsMemberrbb:TfcStatutoryTrustMember2021-03-31 0001499422rbb:TfcStatutoryTrustMemberus-gaap:SubordinatedDebtMember2021-01-012021-03-31 0001499422rbb:TfcStatutoryTrustMemberus-gaap:SubordinatedDebtMember2020-12-31 0001499422rbb:FirstAmericanInternationalStatutoryTrustI1Member2018-10-31 0001499422rbb:FirstAmericanInternationalStatutoryTrustI1Member2018-10-012018-10-31 0001499422rbb:FirstAmericanInternationalStatutoryTrustI1Memberus-gaap:SubordinatedDebtMember2018-10-31 0001499422us-gaap:OtherAssetsMemberrbb:FirstAmericanInternationalStatutoryTrustI1Member2018-10-31 0001499422rbb:FirstAmericanInternationalStatutoryTrustI1Memberus-gaap:SubordinatedDebtMember2018-10-012018-10-31 0001499422rbb:FirstAmericanInternationalStatutoryTrustI1Memberus-gaap:SubordinatedDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-10-012018-10-31 0001499422rbb:FirstAmericanInternationalStatutoryTrustIMemberus-gaap:SubordinatedDebtMember2021-03-31 0001499422rbb:FirstAmericanInternationalStatutoryTrustIMemberus-gaap:SubordinatedDebtMember2020-12-31 0001499422rbb:PgbHoldingsIncAndBankingSubsidiaryPacificGlobalBankMember2020-01-31 0001499422rbb:PgbHoldingsIncAndBankingSubsidiaryPacificGlobalBankMemberus-gaap:SubordinatedDebtMember2020-01-31 0001499422rbb:PgbHoldingsIncAndBankingSubsidiaryPacificGlobalBankMemberus-gaap:SubordinatedDebtMember2020-01-012020-01-31 0001499422rbb:PgbHoldingsIncAndBankingSubsidiaryPacificGlobalBankMemberus-gaap:SubordinatedDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-01-31 0001499422rbb:PgbHoldingsIncAndBankingSubsidiaryPacificGlobalBankMemberus-gaap:SubordinatedDebtMember2021-03-31 0001499422rbb:PgbHoldingsIncAndBankingSubsidiaryPacificGlobalBankMemberus-gaap:SubordinatedDebtMember2020-12-31 0001499422us-gaap:SubordinatedDebtMember2021-01-012021-03-31 0001499422us-gaap:SubordinatedDebtMember2020-01-012020-03-31 0001499422rbb:ZionsBankMember2021-03-31 0001499422rbb:WellsFargoBankMember2021-03-31 0001499422rbb:FirstHorizonNationalBankMember2021-03-31 0001499422rbb:PacificCoastBankersBankMember2021-03-31 0001499422rbb:WellsFargoBankMemberus-gaap:LineOfCreditMember2021-03-31 0001499422rbb:FederalReserveBankOfSanFranciscoSecuredLineOfCreditMember2021-03-31 0001499422rbb:FederalHomeLoanBankOfSanFranciscoSecuredLineOfCreditMember2021-03-31 0001499422rbb:FederalHomeLoanBankOvernightAdvancesMember2021-03-31 0001499422us-gaap:FederalHomeLoanBankAdvancesMember2021-03-31 0001499422us-gaap:FederalHomeLoanBankAdvancesMember2020-12-31 0001499422us-gaap:FederalHomeLoanBankAdvancesMember2020-01-012020-12-31 0001499422rbb:FederalHomeLoanBankOvernightAdvancesMember2020-12-31 0001499422rbb:CommitmentsToMakeLoansMember2021-03-31 0001499422rbb:CommitmentsToMakeLoansMember2020-12-31 0001499422us-gaap:UnusedLinesOfCreditMember2021-03-31 0001499422us-gaap:UnusedLinesOfCreditMember2020-12-31 0001499422rbb:CommercialAndSimilarLettersOfCreditMember2021-03-31 0001499422rbb:CommercialAndSimilarLettersOfCreditMember2020-12-31 0001499422us-gaap:StandbyLettersOfCreditMember2021-03-31 0001499422us-gaap:StandbyLettersOfCreditMember2020-12-31 00014994222021-01-01 0001499422rbb:ExecutiveOfficersDirectorsAndTheirRelatedInterestsMember2021-03-31 0001499422rbb:ExecutiveOfficersDirectorsAndTheirRelatedInterestsMember2020-12-31 0001499422rbb:PrincipalOfficersDirectorsAndTheirAffiliatesMember2021-03-31 0001499422rbb:PrincipalOfficersDirectorsAndTheirAffiliatesMember2020-12-31 0001499422rbb:StockOptionPlan2010Member2017-01-31 0001499422rbb:StockOptionPlan2010Member2017-05-172017-05-17 0001499422rbb:OmnibusStockIncentivePlanMember2017-05-17 0001499422rbb:OmnibusStockIncentivePlanMember2021-03-31 0001499422rbb:OmnibusStockIncentivePlanMember2021-01-012021-03-31 0001499422us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-31 0001499422us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-12-31 0001499422us-gaap:RestrictedStockUnitsRSUMember2021-03-31 0001499422us-gaap:RestrictedStockUnitsRSUMember2020-12-31 0001499422us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-03-31 0001499422us-gaap:RestrictedStockUnitsRSUMember2020-03-31 00014994222021-01-012021-01-31 00014994222020-07-012020-07-31 00014994222020-01-012020-01-31 0001499422us-gaap:EmployeeStockOptionMember2021-03-31 0001499422us-gaap:EmployeeStockOptionMember2021-01-012021-03-31 0001499422srt:MinimumMember2020-01-01 00014994222015-01-01 00014994222016-01-012016-01-01 00014994222019-01-012019-01-01 0001499422rbb:RbbBancorpMember2021-03-31 0001499422rbb:RoyalBusinessBankMember2021-03-31 0001499422rbb:RbbBancorpMember2020-12-31 0001499422rbb:RoyalBusinessBankMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2021-03-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-03-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2021-03-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2021-03-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-03-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:MunicipalSecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:MunicipalSecuritiesMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:MunicipalSecuritiesMember2021-03-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberrbb:MunicipalSecuritiesMember2021-03-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422us-gaap:FairValueMeasurementsRecurringMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMemberrbb:OtherRealEstateOwnedMember2021-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberrbb:OtherRealEstateOwnedMember2021-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberrbb:OtherRealEstateOwnedMember2021-03-31 0001499422us-gaap:FairValueMeasurementsNonrecurringMemberrbb:OtherRealEstateOwnedMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2020-12-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberrbb:SmallBusinessAdministrationAgencySecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2020-12-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2020-12-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:MunicipalSecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:MunicipalSecuritiesMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberrbb:MunicipalSecuritiesMember2020-12-31 0001499422us-gaap:FairValueMeasurementsRecurringMemberrbb:MunicipalSecuritiesMember2020-12-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMemberrbb:OtherRealEstateOwnedMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberrbb:OtherRealEstateOwnedMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberrbb:OtherRealEstateOwnedMember2020-12-31 0001499422us-gaap:FairValueMeasurementsNonrecurringMemberrbb:OtherRealEstateOwnedMember2020-12-31 0001499422rbb:OtherRealEstateOwnedMemberrbb:SinglefamilyResidencesMember2021-03-31 0001499422rbb:OtherRealEstateOwnedMemberrbb:SinglefamilyResidencesMember2020-12-31 0001499422rbb:OtherRealEstateOwnedMemberus-gaap:MeasurementInputComparabilityAdjustmentMembersrt:MinimumMember2021-03-31 0001499422rbb:OtherRealEstateOwnedMemberus-gaap:MeasurementInputComparabilityAdjustmentMembersrt:MaximumMember2021-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-03-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001499422us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-03-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001499422us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-03-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001499422us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueInputsLevel3Member2020-03-31 0001499422rbb:InterestRateLockContractsMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueInputsLevel3Member2020-03-31 0001499422rbb:ForwardMortgageLoanSaleContractsMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001499422us-gaap:EmployeeStockOptionMemberus-gaap:CommonStockMember2021-01-012021-03-31 0001499422us-gaap:EmployeeStockOptionMemberus-gaap:CommonStockMember2020-01-012020-03-31 0001499422rbb:FeesAndServiceChargesOnDepositAccountsMember2021-01-012021-03-31 0001499422rbb:FeesAndServiceChargesOnDepositAccountsMember2020-01-012020-03-31 0001499422rbb:OtherFeesMember2021-01-012021-03-31 0001499422rbb:OtherFeesMember2020-01-012020-03-31 0001499422rbb:OtherServiceIncomeMember2021-01-012021-03-31 0001499422rbb:OtherServiceIncomeMember2020-01-012020-03-31 0001499422srt:MinimumMember2021-01-012021-03-31 0001499422srt:MaximumMember2021-01-012021-03-31 0001499422us-gaap:SubsequentEventMember2021-04-222021-04-22
 

  

Table of Contents



 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2021 or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

 

Commission File Number: 001-38149

 

RBB BANCORP

(Exact name of registrant as specified in its charter)

 

California

27-2776416

(State or other jurisdiction of

Incorporation or organization)

(I.R.S. Employer

Identification No.)

 

1055 Wilshire Blvd., Suite 1200,

 

Los Angeles, California

90017

(Address of principal executive offices)

(Zip Code)

 

(213) 627-9888

(Registrants telephone number, including area code)

 

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

 

Smaller reporting company

 

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.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒

 

Number of shares of common stock of the registrant: 19,572,224 outstanding as of May 3, 2021.

 



 

 

    

 

TABLE OF CONTENTS

 

PART I  FINANCIAL INFORMATION (UNAUDITED)

3

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

3

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

9

ITEM 2.

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

36

 

CRITICAL ACCOUNTING POLICIES

38

 

OVERVIEW

40

 

ANALYSIS OF THE RESULTS OF OPERATIONS

41

 

ANALYSIS OF FINANCIAL CONDITION

49

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

66

ITEM 4.

CONTROLS AND PROCEDURES

67

PART II - OTHER INFORMATION

68

ITEM 1.

LEGAL PROCEEDINGS

68

ITEM 1A.

RISK FACTORS

68

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

68

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

68

ITEM 4.

MINE SAFETY DISCLOSURES

68

ITEM 5.

OTHER INFORMATION

68

ITEM 6.

EXHIBITS

69

SIGNATURES

 

70

 

 

 

PART I - FINANCIAL INFORMATION (UNAUDITED)

 

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

RBB BANCORP AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021 (UNAUDITED) AND DECEMBER 31, 2020 (AUDITED)

(In thousands, except share amounts)

 

  March 31,  December 31, 
  

2021

  

2020

 

Assets

        

Cash and due from banks

 $362,930  $137,654 

Federal funds sold and other cash equivalents

  57,000   57,000 

Cash and cash equivalents

  419,930   194,654 

Interest-earning deposits in other financial institutions

  600   600 

Securities:

        

Available for sale

  281,582   210,867 

Held to maturity (fair value of $7,020 and $7,603 at March 31, 2021 and December 31, 2020, respectively)

  6,668   7,174 

Mortgage loans held for sale

  37,675   49,963 

Loans held for investment:

        

Real estate

  2,318,916   2,320,216 

Commercial and other

  401,566   392,066 

Total loans

  2,720,482   2,712,282 

Unaccreted discount on acquired loans

  (2,392)  (2,872)

Deferred loan costs (fees), net

  (2,885)  (2,644)

Total loans, net of deferred loan fees

  2,715,205   2,706,766 

Allowance for loan losses

  (30,795)  (29,337)

Net loans

  2,684,410   2,677,429 
         

Premises and equipment

  27,093   27,103 

Federal Home Loan Bank (FHLB) stock

  15,641   15,641 

Net deferred tax assets

  3,427   2,547 

Other real estate owned (OREO)

  293   293 

Cash surrender value of life insurance (BOLI)

  35,308   35,121 

Goodwill

  69,243   69,243 

Servicing assets

  13,264   13,965 

Core deposit intangibles

  4,895   5,196 

Right-of-use assets- operating leases

  25,500    

Accrued interest and other assets

  38,770   40,276 

Total assets

 $3,664,299  $3,350,072 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 

RBB BANCORP AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021 (UNAUDITED) AND DECEMBER 31, 2020 (AUDITED) (CONTINUED)

(In thousands, except share amounts)

 

  

March 31,

  

December 31,

 
  

2021

  

2020

 

Liabilities and Shareholders’ Equity

        

Deposits:

        

Noninterest-bearing demand

 $787,439  $617,206 

Savings, NOW and money market accounts

  791,486   731,084 

Time deposits $250,000 and under

  649,190   688,875 

Time deposits over $250,000

  593,178   597,963 

Total deposits

  2,821,293   2,635,128 
         

Reserve for unfunded commitments

  1,320   1,383 

FHLB advances

  150,000   150,000 

Long-term debt, net of debt issuance costs

  172,581   104,391 

Subordinated debentures

  14,338   14,283 
Lease liabilities - operating leases  26,199    

Accrued interest and other liabilities

  42,900   16,399 

Total liabilities

  3,228,631   2,921,584 
         

Commitments and contingencies - Note 13

      
         

Shareholders' equity:

        

Preferred Stock - 100,000,000 shares authorized, no par value; none outstanding

      

Common Stock - 100,000,000 shares authorized, no par value; 19,528,249 shares issued and outstanding at March 31, 2021 and 19,565,921 shares at December 31, 2020

  282,845   284,261 

Additional paid-in capital

  5,095   4,932 

Retained earnings

  147,806   138,094 

Non-controlling interest

  72   72 

Accumulated other comprehensive (loss) income, net

  (150)  1,129 

Total shareholders’ equity

  435,668   428,488 

Total liabilities and shareholders’ equity

 $3,664,299  $3,350,072 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 

 

RBB BANCORP AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(In thousands, except per share amounts)

 

   

Three Months Ended

 
   

March 31,

 
   

2021

   

2020

 

Interest and dividend income:

               

Interest and fees on loans

  $ 34,516     $ 32,276  

Interest on interest-earning deposits

    48       451  

Interest on investment securities

    627       821  

Dividend income on FHLB stock

    192       2  

Interest on federal funds sold and other

    157       478  

Total interest income

    35,540       34,028  

Interest expense:

               

Interest on savings deposits, now and money market accounts

    698       1,243  

Interest on time deposits

    2,964       7,086  

Interest on subordinated debentures and long-term debt

    1,958       1,956  

Interest on other borrowed funds

    435       150  

Total interest expense

    6,055       10,435  

Net interest income

    29,485       23,593  

Provision for credit losses

    1,500       1,945  
                 

Net interest income after provision for credit losses

    27,985       21,648  

Noninterest income:

               

Service charges, fees and other

    1,410       1,079  

Gain on sale of loans

    3,841       2,711  

Loan servicing fees, net of amortization

    246       592  

Recoveries on loans acquired in business combinations

    5       42  

Unrealized loss on equity investments

    (20 )      

Gain on derivatives

    225        

Increase in cash surrender value of life insurance

    187       191  
      5,894       4,615  

Noninterest expense:

               

Salaries and employee benefits

    9,242       9,505  

Occupancy and equipment expenses

    2,242       2,404  

Data processing

    1,440       1,142  

Legal and professional

    805       604  

Office expenses

    255       323  

Marketing and business promotion

    184       214  

Insurance and regulatory assessments

    348       177  

Core deposit premium

    301       357  

OREO expenses

    5       14  

Merger expenses

    42       403  

Other expenses

    928       1,120  
      15,792       16,263  

Income before income taxes

    18,087       10,000  

Income tax expense

    5,631       3,252  

Net income

  $ 12,456     $ 6,748  
                 

Net income per share

               
Basic   $ 0.64     $ 0.34  
Diluted     0.63       0.33  

Cash dividends declared per common share

    0.12       0.12  

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 

 

RBB BANCORP AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(In thousands)

 

   

Three Months Ended

 
   

March 31,

 
   

2021

   

2020

 
                 
                 

Net income

  $ 12,456     $ 6,748  
                 

Other comprehensive income (loss):

               

Unrealized (losses) gains on securities available for sale:

               

Change in unrealized (losses) gains

    (1,816 )     498  
      (1,816 )     498  

Related income tax effect:

               

Change in unrealized losses (gains)

    537       (148 )
      537       (148 )
                 

Total other comprehensive (loss) income

    (1,279 )     350  
                 

Total comprehensive income

  $ 11,177     $ 7,098  

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 

 

RBB BANCORP AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(In thousands, except share amounts)

 

   

Common Stock

                           

Accumulated

         
   

Shares

   

Amount

   

Additional Paid-in Capital

   

Retained Earnings

   

Non- Controlling Interest

   

Other Comprehensive Income (Loss)

   

Total

 

Balance at December 31, 2020

    19,565,921     $ 284,261     $ 4,932     $ 138,094     $ 72     $ 1,129     $ 428,488  

Net income

                      12,456                   12,456  

Stock-based compensation

                287                         287  

Restricted stock granted

    60,000                                      

Cash dividend

                      (2,347 )                 (2,347 )

Stock options exercised, net of expense recognized

    32,289       464       (124 )                       340  
Repurchase of common stock     (129,961 )     (1,880 )           (397 )                 (2,277 )

Other comprehensive loss, net of taxes

                                  (1,279 )     (1,279 )

Balance at March 31, 2021

    19,528,249     $ 282,845     $ 5,095     $ 147,806     $ 72     $ (150 )   $ 435,668  
                                                         

Balance at December 31, 2019

    20,030,866     $ 290,395     $ 4,938     $ 112,046     $ 72     $ 239     $ 407,690  

Net income

                      6,748                   6,748  

Stock-based compensation

                161                         161  

Cash dividend

                      (2,414 )                 (2,414 )

Stock options exercised, net of expense recognized

    56,498       978       (266 )                       712  

Repurchase of common stock

    (348,084 )     (5,023 )           (231 )                 (5,254 )

Other comprehensive income, net of taxes

                                  350       350  

Balance at March 31, 2020

    19,739,280     $ 286,350     $ 4,833     $ 116,149     $ 72     $ 589     $ 407,993  

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 

 

RBB BANCORP AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(In thousands)

   Three Months Ended 
   March 31, 
  

2021

  

2020

 

Operating activities

        

Net income

 $12,456  $6,748 

Adjustments to reconcile net income to net cash from Operating activities:

        

Depreciation and amortization of premises and equipment

  500   522 

Net accretion of securities, loans, deposits, and other

  (391)  (873)

Unrealized loss on equity securities

  20    

Amortization of investment in affordable housing tax credits

  259   247 

Amortization of intangible assets

  1,707   1,441 

Amortization of right-of-use asset

  1,314    

Change in operating lease liabilities

  (1,257)   

Provision for loan losses

  1,500   1,945 

Stock-based compensation

  287   161 

Deferred tax expense (benefit)

  (880)  1,503 

Gain on sale of loans

  (3,841)  (2,711)

Increase in cash surrender value of life insurance

  (187)  (191)

Loans originated and purchased for sale, net

  (68,236)  (30,423)

Proceeds from loans sold

  136,866   104,273 

Other items

  29,129   (4,442)

Net cash provided by operating activities

  109,246   78,200 

Investing activities

        

Securities available for sale:

        

Purchases

  (176,164)  (151,163)

Maturities, prepayments and calls

  103,620   151,707 

Securities held to maturity:

        

Maturities, prepayments and calls

  500   500 

Sale (purchase) of Federal Home Loan Bank stock and other equity securities, net

  12   (621)

Net increase of investment in qualified affordable housing projects

  (309)  (2,004)

Net increase in loans

  (61,207)  (45,668)

Net cash received in connection with acquisition

     6,634 

Purchases of premises and equipment

  (478)  (135)

Net cash used in investing activities

  (134,026)  (40,750)

Financing activities

        

Net increase (decrease) in demand deposits and savings accounts

  230,636   (108,420)

Net increase (decrease) in time deposits

  (44,407)  107,130 
Advances on long-term FHLB advances     150,000 

Cash dividends paid

  (2,347)  (2,414)
Redemption of subordinated debentures  (50,000)   

Issuance of subordinated debentures, net of issuance costs

  118,111    

Common stock repurchased, net of repurchased costs

  (2,277)  (5,254)

Exercise of stock options

  340   712 

Net cash provided by financing activities

  250,056   141,754 

Net increase in cash and cash equivalents

  225,276   179,204 

Cash and cash equivalents at beginning of period

  194,654   181,763 

Cash and cash equivalents at end of period

 $419,930  $360,967 

Supplemental disclosure of cash flow information

        

Cash paid during the period:

        

Interest paid

 $5,298  $8,643 

Non-cash investing and financing activities:

        

Transfer of loans to held for sale, net

  52,771   15,041 

Loan to facilitate OREO

     1,025 

Additions to servicing assets

  705   827 

Net change in unrealized holding (loss) gain on securities available for sale

  1,279   350 
Recognition of operating lease right-of-use assets  (26,814)   
Recognition of operating lease liabilities  26,814    

Acquisition:

        

Assets acquired, net of cash received

     182,895 

Liabilities assumed

     200,209 

Cash considerations

     32,885 

Goodwill

     10,680 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 

RBB BANCORP AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

 

 

NOTE 1 - BUSINESS DESCRIPTION

 

RBB Bancorp (“RBB”) is a financial holding company registered under the Bank Holding Company Act of 1956, as amended. RBB Bancorp’s principal business is to serve as the holding company for its wholly-owned banking subsidiaries, Royal Business Bank ("Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as "the Company". RAM was formed to hold and manage problem assets acquired in business combinations.

 

At March 31, 2021, the Company had total consolidated assets of $3.7 billion, gross consolidated loans (held for investment and held for sale) of $2.8 billion, total consolidated deposits of $2.8 billion and total consolidated stockholders' equity of $435.7 million. RBB’s common stock trades on the Nasdaq Global Select Market under the symbol “RBB”.

 

The Bank provides business-banking services to the Chinese-American communities in Los Angeles County, Orange County and Ventura County in California, in Las Vegas, Nevada, the New York City, New York metropolitan area, including Edison, New Jersey, and Chicago, Illinois. Specific services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, Small Business Administration (“SBA”) 7A and 504 loans, mortgage loans, trade finance and a full range of depository accounts.

 

The Company operates full-service banking offices in Arcadia, Cerritos, Diamond Bar, Irvine, Los Angeles, Monterey Park, Oxnard, Rowland Heights, San Gabriel, Silver Lake, Torrance, and Westlake Village, California; Las Vegas, Nevada; Manhattan, Brooklyn, Flushing, and Elmhurst, New York; the Chinatown and Bridgeport neighborhoods of Chicago, Illinois; and Edison, New Jersey. The Company’s primary source of revenue is providing loans to customers, who are predominantly small and middle-market businesses and individuals.

 

The Company generates its revenue primarily from interest received on loans and leases and, to a lesser extent, from interest received on investment securities. The Company also derives income from noninterest sources, such as fees received in connection with various lending and deposit services, loan servicing, gain on sales of loans and wealth management services. The Company’s principle expenses include interest expense on deposits and subordinated debentures, and operating expenses, such as salaries and employee benefits, occupancy and equipment, data processing, and income tax expense.

 

The Company has completed six acquisitions from July 2011 through January 2020, including the acquisition of Pacific Global Bank Holdings, Inc. (“PGBH”) and its wholly-owned subsidiary, Pacific Global Bank (“PGB”), in which the PGBH acquisition closed on January 10, 2020. PGB operated branches in the Chicago neighborhoods of Chinatown and Bridgeport. See Note 3 – Acquisition, for more information about the PGBH acquisition transaction. All of the Company’s acquisitions have been accounted for using the acquisition method of accounting and, accordingly, the operating results of the acquired entities have been included in the consolidated financial statements from their respective acquisition dates.

 

 

 

NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results for the full year. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2020, included in our Annual Report filed on Form 10-K/A for the fiscal year ended December 31, 2020 (our “2020 Annual Report”).

 

Use of Estimates in the Preparation of Financial Statements

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It is reasonably possible our estimate of the allowance for loan losses and the fair value of mortgage servicing rights could change as actual results could differ from those estimates. Actual results could differ from those estimates.

 

9

 

Summary of Significant Accounting Policies

 

The accompanying unaudited consolidated financial statements were compiled in accordance with the accounting policies set forth in Note 2 – Basis of Presentation and Summary of Significant Policies in our Consolidated Financial Statements as of and for the year ended December 31, 2020, included in our 2020 Annual Report.  The Financial Accounting Standards Board ("FASB") issues Accounting Standards Updates ("ASU" or “Update”) and Accounting Standards Codifications (“ASC”), which are the primary source of GAAP.

 

Recent Accounting Pronouncements

 

When RBB conducted its initial public offering (“IPO”) in 2017, we qualified as an emerging growth company (“EGC”). We will remain an EGC until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.0 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of our IPO, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the date on which we are deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We anticipate no longer qualifying as an EGC on December 31, 2022. EGCs are entitled to reduced regulatory and reporting requirements under the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act, as compared to public business entities ("PBE").

 

In  February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The most significant change for lessees is the requirement under the new guidance to recognize right-of-use assets and lease liabilities for all leases not considered short-term leases, which is generally defined as a lease term of less than 12 months. This change will result in lessees recognizing right-of-use assets and lease liabilities for most leases currently accounted for as operating leases under current lease accounting guidance. The amendments in this Update are effective for annual periods beginning after  December 15, 2020 and for interim periods beginning after  December 15, 2021, for an EGC as the effective date was deferred by the FASB. The Company has several lease agreements which are currently considered operating leases and are therefore not included on the Company’s Consolidated Balance Sheets. Under the new guidance the Company recognized on the Consolidated Balance Sheets right-of-use assets with a corresponding lease liability.  The Company adopted this ASU on January 1, 2021 and recorded the right-of-use asset and lease liability of approximately $26.8 million as of the  January 1, 2021 adoption date.

 

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instrument (Topic 326), including subsequent amending ASUs. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model. The new model, referred to as the current expected credit loss ("CECL") model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held to maturity securities, loan commitments, and financial guarantees. For available for sale (“AFS”) debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. ASU 2016-13 also expands the disclosure requirements regarding an entity's assumptions, models, and methods for estimating the allowance for loan and lease losses.  In addition, public business entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU 2016-13 was originally proposed to be effective for interim and annual reporting periods for an emerging growth company beginning after December 15, 2020, but was subsequently extended until December 31, 2022. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company has begun its evaluation of the impact of the implementation of ASU 2016-13. The implementation of the provisions of ASU 2016-13 will most likely impact the Company’s consolidated financial statements as to the level of reserves that will be required for credit losses. The Company will continue to assess the potential impact that this Update will have on the Company’s consolidated financial statements.  The Company will adopt CECL (ASU 2016-13) on December 31, 2022.

 

10

 

In February 2019, the U.S. federal bank regulatory agencies approved a final rule modifying their regulatory capital rules and providing an option to phase in over a three year period the day-one adverse regulatory capital effects of ASU 2016-13. Additionally, in March 2020, the U.S. federal bank regulatory agencies issued an interim final rule that provides banking organizations an option to delay the estimated CECL impact on regulatory capital for an additional two years for a total transition period of up to five years to provide regulatory relief to banking organizations to better focus on supporting lending to creditworthy households and businesses in light of recent strains on the U.S. economy as a result of the novel coronavirus disease 2019 ("COVID-19") pandemic. As a result, entities will have the option to gradually phase in the full effect of CECL on regulatory capital over a five-year transition period.

 

In January 2017, the FASB issued ASU 2017-04, IntangiblesGoodwill and Other (Topic 350). This Update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The amendments in this Update are required for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. As a result, under this Update, “an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.” For PBE's, ASU 2017-04 is effective for annual and any interim impairment tests performed in periods beginning after December 15, 2019. As an EGC, the Company will adopt this ASU on December 31, 2022. Adoption of ASU 2017-04 is not expected to have a significant impact on the Company’s consolidated financial statements.

 

In June 2018, the FASB issued ASU 2018-07, CompensationStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The amendments in this Update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. For EGCs, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update has the potential to only impact share-based payments to members of the Company’s non-employees. The Company adopted this ASU on January 1, 2020 and this ASU did not have a material impact on the Company’s consolidated financial statements.

 

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. These disclosure requirements were removed from the topic: (1) The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels, and (3) the valuation processes for Level 3 fair value measurements. These disclosure requirements were modified: (1) For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly, and (2) the amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added: (1) The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate “at a minimum” from the phrase “an entity shall disclose at a minimum to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements”. The amendments in this Update are effective for EGCs for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. As an EGC, the Company adopted this Update on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.

 

11

 

In August 2018, the FASB issued ASU 2018-15, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This Update provides additional guidance to ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (CCA), on the accounting for implementation, setup, and other upfront costs (collectively referred to as implementation costs) apply to entities that are a customer in a hosting arrangement. This Update applies to entities that are a customer in a hosting arrangement that is a service contract. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. This Update also requires the customer to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. This Update is effective for an EGC for annual reporting periods beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2021. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, for all entities. The amendments in this Update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. This Update will most likely not have a material impact unless the Company incurs implementation costs for a CCA that is a service contract.

 

In January 2020, the FASB issued ASU 2020-01, “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)”. This ASU is for equity securities accounted for by the equity method. The amendment clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method.  The Company has equity securities on our balance sheet but are not material to be considered for the equity method. For an EGC, this ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years.

 

In February 2020, the FASB issued ASU 2020-02, “Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (SEC Update)”. This is an amendment to add the SEC Staff guidance on CECL) to the FASB codification. It contains guidance on what the SEC would expect the Company to perform and document when measuring and recording its allowance for credit losses for financial assets recorded at amortized cost. As an EGC, the Company will implement CECL on December 31, 2022.

 

In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments”. The ASU clarifies the accounting and disclosure guidance in various codification topics for financial instruments. In particular, the amendments (1) clarify certain disclosure requirements, including fair value option disclosures, (2) add cross-references in U.S. GAAP to clarify certain guidance, (3) make clear the applicability of the portfolio exception in ASC 820, Fair Value Measurement, to nonfinancial items, (4) clarify the determination of the contractual life of a net investment in leases in estimating expected credit losses under ASC 326, Financial Instruments – Credit Losses, and (5) explain the interaction between the guidance in ASC 860-20, Transfers and Servicing: Sales of Financial Assets, and ASC 326. For RBB as an EGC, issues 1, 2, 4 and 5 were adopted  January 1, 2020. The amendment related to Issue 3 is a conforming amendment that affects the guidance in the amendments in ASU 2019-04. We determined the financial impact on the Company’s consolidated financial statements was not material.

 

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides temporary optional expedients to ease the financial reporting burdens of the expected market transition from London Interbank Offered Rate (“LIBOR”) to an alternative reference rate such as Secured Overnight Financing Rate (“SOFR”). This pronouncement is applicable to all companies with contracts or hedging relationships that reference an interest rate that is expected to be discontinued. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. Companies can apply the ASU immediately. However, the guidance will only be available for a limited time (generally through December 31, 2022). For contract modifications, companies can account for the modification as a continuation of the existing contract without additional analysis. For held-to-maturity (“HTM”) debt securities, one-time sale and/or transfer to available-for-sale or trading may be made for HTM debt securities that both reference an eligible reference rate and were classified as HTM before January 1, 2020. Regarding the effective date and transition: (1) companies can apply the ASU as of the beginning of the interim period that includes March 12, 2020 (e.g. January 1, 2020 for calendar year-end companies) or any date thereafter, (2) the ASU applies prospectively to contract modifications and hedging relationships, and (3) the one-time election to sell and/or transfer debt securities classified as HTM may be made at any time after March 12, 2020. The optional relief generally does not apply to contract modifications made, sales and transfers of HTM debt securities, and hedging relationships entered into or evaluated after December 31, 2022. The guidance was effective upon issuance and generally can be applied through December 31, 2022. Of the Company’s $2.8 billion in total gross loans as of March 31, 2021, approximately 12% have a LIBOR based reference rate. The Company has several issuances of LIBOR based long-term debt and subordinated debentures. Refer to Notes 9 and 10 of the Company’s consolidated financial statements included in this Form 10-Q. We are currently evaluating this guidance to determine the financial impact on the Company’s consolidated financial statements.

 

In June 2020, the FASB issued ASU 2020-05, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities”. This ASU allows for the deferral of the effective dates of ASC 606 and ASC 842 (including amendments issued after the issuance of the original Update) to provide immediate, near-term relief for certain entities for whom these Updates are either currently effective or imminently effective.  The Company has already implemented this ASU for Topic 606 and Topic 842.

 

12

 
 

NOTE 3 ACQUISITION

 

PGB Holdings, Inc. Acquisition:

 

On January 10, 2020, the Company acquired all the assets and assumed all the liabilities of PGBH and its wholly owned bank subsidiary, in exchange for cash of $32.9 million. PGBH operated three branches in the Chicago, Illinois metropolitan area. The Company acquired PGBH to strategically establish a presence in the Chicago area. Goodwill in the amount of $10.7 million was recognized in this acquisition. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies expected to be derived from the combination of the two entities. Goodwill is not deductible for income tax purposes.

 

The following table represents the assets acquired and liabilities assumed of PGBH as of January 10, 2020 and the fair value adjustments and amounts recorded by the Company in 2020 under the acquisition method of accounting:

 

  

PGBH

  

Fair Value

  

Fair

 

(dollars in thousands)

 

Book Value

  

Adjustments

  

Value

 

Assets acquired

            

Cash and cash equivalents

 $17,033  $  $17,033 

Fed funds sold

  8,300      8,300 

Interest-bearing deposits in other financial Institutions

  14,186      14,186 

Loans, gross

  172,443   666   173,109 

Allowance for loan losses

  (2,265)  2,265    

Bank premises and equipment

  6,394   1,639   8,033 

Core deposit premium

     491   491 

Investment in trust

  155      155 

Other assets

  1,687   (580)  1,107 

Total assets acquired

 $217,933  $4,481  $222,414 
             

Liabilities assumed

            

Deposits

 $187,393  $969  $188,362 

Escrow Payable

  4,277      4,277 

Subordinated debentures

  5,155   (763)  4,392 

Deferred income taxes

  1,016   1,335   2,351 

Other liabilities

  1,211   (384)  827 

Total liabilities assumed

  199,052   1,157   200,209 

Excess of assets acquired over liabilities assumed

  18,881   3,324   22,205 
  $217,933  $4,481     

Cash paid

          32,885 

Goodwill recognized

         $10,680 

 

The fair values are estimates and were subject to adjustment for up to one year after the merger date. 

 

The Company accounted for these transactions under the acquisition method of accounting in accordance with ASC 805, Business Combinations, which requires purchased assets and liabilities assumed to be recorded at their respective fair values at the date of acquisition.

 

The loan portfolio of PGBH was recorded at fair value at the date of acquisition with the assistance of a third-party valuation. A valuation of PGBH’s loan portfolio was performed as of the acquisition date to assess the fair value of the loan portfolio. The loan portfolio was segmented into two groups; loans with credit deterioration and loans without credit deterioration, and then split further by loan type. The fair value was calculated on an individual loan basis using a discounted cash flow analysis. The discount rate utilized was based on a weighted average cost of capital, considering the cost of equity and cost of debt. Also factored into the fair value estimates were loss rates, recovery period and prepayment rates based on industry standards.

 

The Company also determined the fair value of the core deposit intangible, securities, premises and equipment, deposits and debt with the assistance of third-party valuations.

 

The core deposit intangible on non-maturing deposits was determined by evaluating the underlying characteristics of the deposit relationships, including customer attrition, deposit interest rates, service charge income, overhead expense and costs of alternative funding. Since the fair value of intangible assets are calculated as if they were stand-alone assets, the presumption is that a hypothetical buyer of the intangible asset would be able to take advantage of potential tax benefits resulting from the asset purchase. The value of the benefit is the present value over the period of the tax benefit, using the discount rate applicable to the asset.

 

13

 

In determining the fair value of certificates of deposit, a discounted cash flow analysis was used, which involved present valuing the contractual payments over the remaining life of the certificates of deposit at market-based interest rates.

 

For loans acquired from PGBH, the contractual amounts due, expected cash flows to be collected, interest component and fair value as of the respective acquisition dates were as follows:

 

(dollars in thousands)  PGBH Acquired Loans 

Contractual amounts due

 $195,227 

Cash flows not expected to be collected

  5,176 

Expected cash flows

  190,051 

Interest component of expected cash flows

  16,942 

Fair value of acquired loans

 $173,109 

 

The operating results of the Company for the three months ended March 31, 2021 and 2020, respectively include the operating results of PGBH since its acquisition date. The following table presents the net interest and other income, net income and earnings per share as if the acquisition of PGBH was effective as of January 1, 2020. There were no material, nonrecurring adjustments to the pro forma net interest and other income, net income and earnings per share presented below:

 

  

Three Months Ended

 
(dollars in thousands)  March 31, 2021   March 31, 2020 

Net interest and other income

 $35,379  $28,442 

Net income

  12,456   5,582 

Basic earnings per share

  0.64   0.28 

Diluted earnings per share

  0.63   0.28 

 

Third-party acquisition related expenses are recognized as incurred and continue until the acquired system is converted and operational functions become fully integrated. The Company incurred third-party acquisition related expenses in the consolidated statements of income for the periods indicated in the Statements of Income in the expense item “Merger expenses”.

 

14

 

 

 

NOTE 4 - INVESTMENT SECURITIES

 

The following table summarizes the amortized cost and fair value of available for sale (“AFS”) debt securities and held to maturity (“HTM”) debt securities as of March 31, 2021 and December 31, 2020, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income:

 

      

Gross

  

Gross

     

(dollars in thousands)

 

Amortized

  

Unrealized

  

Unrealized

  

Fair

 

March 31, 2021

 

Cost

  

Gains

  

Losses

  

Value

 

Available for sale

                

Government agency securities

 $1,088  $20  $  $1,108 

SBA agency securities

  4,017   138      4,155 

Mortgage-backed securities- Government sponsored agencies

  30,651   166   (325)  30,492 

Collateralized mortgage obligations

  88,552   244   (470)  88,326 

Commercial paper

  119,210      (16)  119,194 

Corporate debt securities

  36,657   512   (426)  36,743 

Municipal securities

  1,619      (55)  1,564 

Total

 $281,794  $1,080  $(1,292) $281,582 
                 

Held to maturity

                

Municipal taxable securities

 $1,907  $116  $  $2,023 

Municipal securities

  4,761   236      4,997 

Total

 $6,668  $352  $  $7,020 

 

      

Gross

  

Gross

     
(dollars in thousands) Amortized  Unrealized  Unrealized  Fair 

December 31, 2020

 

Cost

  

Gains

  

Losses

  

Value

 

Available for sale

                

Government agency securities

 $1,257  $37  $  $1,294 

SBA agency securities

  4,125   269      4,394 

Mortgage-backed securities- Government sponsored agencies

  17,415   270   (8)  17,677 

Collateralized mortgage obligations

  48,476   491   (93)  48,874 

Commercial paper

  102,462      (14)  102,448 

Corporate debt securities

  33,907   662   (6)  34,563 

Municipal securities

  1,621   2   (6)  1,617 

Total

 $209,263  $1,731  $(127) $210,867 
                 

Held to maturity

                

Municipal taxable securities

 $2,407  $139  $  $2,546 

Municipal securities

  4,767   290      5,057 

Total

 $7,174  $429  $  $7,603 

 

One security with a fair value of $252,000 and $320,000 at March 31, 2021 and December 31, 2020, respectively, was pledged to secure a local agency deposit.

 

There were no sales of investment securities during the three months ended  March 31, 2021 and 2020, respectively.

 

15

 

The amortized cost and fair value of the investment securities portfolio at March 31, 2021 and December 31, 2020 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

  

Less than One Year

  

More than One Year to Five Years

  

More than Five Years to Ten Years

  

More than Ten Years

  

Total

 
  

Amortized

  

Estimated

  

Amortized

  

Estimated

  

Amortized

  

Estimated

  

Amortized

  

Estimated

  

Amortized

  

Estimated

 

(dollars in thousands)

 

Cost

  

Fair Value

  

Cost

  

Fair Value

  

Cost

  

Fair Value

  

Cost

  

Fair Value

  

Cost

  

Fair Value

 

March 31, 2021

                                        

Government agency securities

 $  $  $1,088  $1,108  $  $  $  $  $1,088  $1,108 

SBA securities

        537   559   3,480   3,596         4,017   4,155 

Mortgage-backed securities- Government sponsored agencies

  5,003   5,002   8,441   8,564   17,207   16,926         30,651   30,492 

Collateralized mortgage obligations

        39,752   39,680   48,800   48,646         88,552   88,326 

Commercial paper

  119,210   119,194                     119,210   119,194 

Corporate debt securities

  7,988   8,026   11,810   11,987   13,658   13,777