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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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(Address of Principal Executive Offices)
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(Zip Code)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading
Symbol(s)
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Name of exchange on which registered
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(d)
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Exhibits.
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99.1
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99.2
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| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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RBB BANCORP
(Registrant)
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|||
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Date: July 25, 2022
|
By:
|
/s/ David Morris
|
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David Morris
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|||
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Interim President and Chief Executive Officer,
Executive Vice President and
Chief Financial Officer
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|||
Exhibit 99.1
Press Release
For Immediate Release
|
Contact: David Morris |
|
|
Interim President and CEO |
|
|
CFO |
|
|
(714) 670-2488 |
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RBB Bancorp Reports Second Quarter Earnings for 2022
Conference Call and Webcast Scheduled for Tuesday, July 26, 2022 at
11:00 a.m. Pacific Time/2:00 p.m. Eastern Time
Second Quarter 2022 Highlights
|
● |
Net income of $15.5 million, or $0.80 diluted earnings per share, increased $860,000, or 5.9%, from the prior quarter and increased $2.1 million, or 15.7%, from the second quarter of 2021 |
| ● | Loans grew by $35.9 million, or 4.8% annualized, from the end of the prior quarter |
| ● | Declared $0.14 per share quarterly dividend |
Los Angeles, CA, July 25, 2022 – RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (“the Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as “the Company,” announced financial results for the quarter ended June 30, 2022.
The Company reported net income of $15.5 million, or $0.80 diluted earnings per share, for the three months ended June 30, 2022, compared to net income of $14.6 million, or $0.74 diluted earnings per share, and $13.4 million, or $ 0.67 diluted earnings per share, for the three months ended March 31, 2022 and June 30, 2021, respectively.
“Our performance in the second quarter demonstrated the strength of our differentiated business model as the Bank delivered strong earnings, improving margins, and loan growth,” said David Morris, Interim President and CEO of RBB Bancorp. “Expenses were higher than expected due to the ongoing costs related to the Board of Directors investigation, which we expect to wind down in the third quarter. We were pleased to announce several new hires and re-hires during the quarter and look forward to working with our new colleagues to build shareholder value.”
"The excellent second quarter results demonstrate the value of Royal Business Bank," said Dr. James Kao, Chairman of RBB Bancorp. “The Bank is well-positioned to continue to generate attractive returns and shareholder value.”
Key Performance Ratios
Net income of $15.5 million for the second quarter of 2022 produced an annualized return on average assets ("ROA") of 1.60%, an annualized return on average tangible common shareholders' equity ("ROTCE") of 15.89%, and an annualized return on average shareholders' equity ("ROE") of 13.30%. This compares to an annualized ROA of 1.39%, an annualized ROTCE of 14.91%, and an annualized ROE of 12.59% for the first quarter of 2022. The efficiency ratio for the second quarter of 2022 was 43.47%, compared to 42.90% for the prior quarter.
Net Interest Income and Net Interest Margin
Net interest income, before provision for loan losses, was $37.1 million for the second quarter of 2022, compared to $34.5 million for the first quarter of 2022. The $2.6 million increase was primarily attributable to 1.25% increase in interest rate by Federal Reserve Bank in the second quarter of 2022. Accretion of purchase discounts from prior acquisitions contributed $75,000 to net interest income in the second quarter of 2022, compared to $246,000 in the first quarter of 2022.
Compared to the second quarter of 2021, net interest income, before provision for loan losses, increased $7.0 million from $30.1 million. The increase was primarily attributable to a $289.3 million increase in average loans and a 1.25% increase in interest rate by the Federal Reserve Bank in the second quarter of 2022. The increases in average earning assets were primarily due to increased loan originations.
Net interest margin was 4.08% for the second quarter of 2022, an increase of 59 basis points from 3.49% in the first quarter of 2022. Loan discount accretion contributed 1 basis point to the net interest margin in the second quarter of 2022, compared to 2 basis points in the first quarter of 2022.
Noninterest Income
Noninterest income was $3.4 million for the second quarter of 2022, an increase of $478,000 from $2.9 million in the first quarter of 2022. The increase was primarily driven by a $757,000 increase in gain on sale of corporate real estate, a $272,000 decrease in loss on derivatives and a $94,000 increase in recoveries on purchased loans, partially offset by an $830,000 decrease in gain on sale of loans during the quarter.
The Company sold $12.6 million in FNMA qualified mortgage loans for a net gain of $284,000 during the second quarter of 2022 compared to $26.9 million in FNMA qualified mortgage loans sold for a net gain of $711,000 during the first quarter of 2022. The Company sold $1.1 million in SBA loans during the second quarter of 2022 for a net gain of $60,000, compared to $8.3 million SBA loans sold for a net gain of $463,000 during the first quarter of 2022.
Compared to the second quarter of 2021, noninterest income decreased by $749,000 from $4.2 million. The decrease was primarily attributable to a $2.2 million decrease in gain on sale of loans, partially offset by a $757,000 increase in gain on corporate real estate, a $354,000 increase in loan servicing fees, an $113,000 increase in income from bank owned life insurance and a $93,000 increase in recoveries on purchased loans.
Noninterest Expense
Noninterest expense for the second quarter of 2022 was $17.6 million, compared to $16.1 million for the first quarter of 2022. The $1.6 million increase was primarily attributable to a $1.2 million increase in legal and professional expenses due to a Board of Director special investigation and a $259,000 increase in salaries and employee benefits expense due to additional new hires and salary adjustments to reflect economic inflation.
Noninterest expense increased from $14.7 million in the second quarter of 2021. The $2.9 million increase was primarily due to a $1.7 million increase in legal and professional expenses due to a Board of Director special investigation, an $886,000 increase in salaries and employee benefits expenses and a $270,000 increase in business promotion and CRA donation expenses.
Income Taxes
The effective tax rate was 29.6% for the second quarter of 2022, 30.4% for the first quarter of 2022, and 29.3% for the second quarter of 2021. The Company recognized a tax benefit from stock option exercises of $279,000, $23,000 and $68,000 for the second quarter of 2022, the first quarter of 2022, and the second quarter of 2021, respectively.
Loan and Securities Portfolio
Loans held for investment, net of deferred fees and discounts, totaled $3.05 billion as of June 30, 2022, an increase of $39.5 million from March 31, 2022, and an increase of $336.7 million from June 30, 2021. The increase from the prior quarter was primarily due to a $141.2 million increase in single-family residential mortgage loans and a $10.0 million increase in construction & land development loans, partially offset by a $57.6 million decrease in commercial real estate loans and a $42.8 million decrease in commercial and industrial loans. The increase from June 30, 2021 was primarily due to a $221.4 million increase in single-family residential mortgages and a $119.8 million increase in construction & land development loans.
During the second quarter of 2022, single-family residential mortgage production was $216.9 million while net payoffs and paydowns were $66.8 million. During the first quarter of 2022, single-family residential mortgage production was $132.6 million while payoffs and paydowns were $48.1 million.
There were no mortgage loans held for sale as of June 30, 2022 compared to $3.6 million as of March 31, 2022 and $9.2 million as of June 30, 2021. The Company originated approximately $1.2 million in FNMA mortgage loans for sale for the second quarter of 2022, compared with $23.4 million during the prior quarter.
In the second quarter of 2022, SBA loan production was $1.4 million and total SBA loan sales were $1.1 million compared to SBA loan production of $11.9 million and total SBA loan sales of $8.3 million in the first quarter of 2022.
As of June 30, 2022, the Bank’s total Available-for-Sale securities maturing in over 12 months were $249.2 million, and the Bank recorded an unrealized loss of $20.2 million under the Accumulated Other Comprehensive Income (AOCI) since January 1, 2022.
Deposits
Deposits were $3.0 billion at June 30, 2022, which was a decrease of $140.7 million compared to March 31, 2022. During the second quarter of 2022, noninterest-bearing deposits decreased by $114.7 million, interest-bearing non-maturity deposits decreased by $16.7 million, and time deposits decreased by $9.3 million. As of June 30, 2022, there were $50.0 million in brokered CDs, as compared to no brokered CDs as of March 31, 2022 and $17.4 million brokered CDs as of June 30, 2021. Compared to June 30, 2021, total deposits decreased by $42.4 million primarily due to a $157.0 million decrease in time deposits, partially offset by a $105.0 million increase in noninterest-bearing demand deposits.
Asset Quality
Nonperforming assets totaled $14.2 million, or 0.36% of total assets at June 30, 2022, compared to $21.0 million, or 0.52% of total assets at March 31, 2022. The decrease in nonperforming assets was due to the pay-off of certain nonperforming loans in the second quarter. Nonperforming assets consist of other real estate owned, loans modified under troubled debt restructurings (“TDR”), non-accrual loans, and loans past due 90 days or more and still accruing interest.
In the second quarter of 2022, there were $53,000 in net charge-offs, compared to net recoveries of $14,000 in the first quarter of 2022 and net charge-offs of $71,000 in the second quarter of 2021.
The Company recorded a provision for credit losses of $915,000 for the second quarter of 2022 which was primarily attributable to loan growth and was an increase from $366,000 in the prior quarter. Allowance for loan losses continue to include $599,000 of reserves taken as a precaution against COVID-19 losses in 2020 and 2021.
The allowance for loan losses totaled $34.2 million, or 1.12% of loans held for investment at June 30, 2022, compared with $33.3 million, or 1.11%, of total loans at March 31, 2022.
During the second quarter of 2022, the Company repurchased 525,754 common shares at a weighted average price of $21.10.
Corporate Overview
RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of June 30, 2022, the company had total assets of $4.0 billion. Its wholly-owned subsidiary, the Bank is a full service commercial bank, which provides business banking services to the Chinese-American communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, automobile lending, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company's administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its finance and operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com.
Conference Call
Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time tomorrow, July 26, 2022, to discuss the Company’s second quarter 2022 financial results.
To listen to the conference call, please dial 1-866-459-5346 or 1-203-518-9544, conference ID RBBQ222. A replay of the call will be made available at 1-877-274-8334 or 1-402-220-2326 (no passcode required) approximately one hour after the conclusion of the call and will remain available through August 2, 2022.
The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.
Disclosure
This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.
Safe Harbor
Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, local, regional, national and international economic and market conditions and events and the impact they may have on us, our customers and our assets and liabilities; our ability to attract deposits and other sources of funding or liquidity; supply and demand for real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend, including both residential and commercial real estate; a prolonged slowdown or decline in real estate construction, sales or leasing activities; changes in the financial performance and/or condition of our borrowers, depositors or key vendors or counterparties; changes in our levels of delinquent loans, nonperforming assets, allowance for loan losses and charge-offs; expectations regarding the impact of the COVID-19 pandemic; the costs or effects of acquisitions or dispositions we may make, whether we are able to obtain any required governmental or shareholder approvals in connection with any such acquisitions or dispositions, and/or our ability to realize the contemplated financial or business benefits associated with any such acquisitions or dispositions; the effect of changes in laws, regulations and applicable judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, banking capital levels, consumer, commercial or secured lending, securities and securities trading and hedging, compliance, employment, executive compensation, insurance, vendor management and information security) with which we and our subsidiaries must comply or believe we should comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements, including changes in the Basel Committee framework establishing capital standards for credit, operations and market risk; inflation, interest rate, securities market and monetary fluctuations; changes in government interest rates or monetary policies; changes in the amount and availability of deposit insurance; cyber-security threats, including loss of system functionality or theft or loss of Company or customer data or money; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, drought, or the effects of pandemic diseases; the timely development and acceptance of new banking products and services and the perceived overall value of these products and services by our customers and potential customers; the Company’s relationships with and reliance upon vendors with respect to the operation of certain of the Company’s key internal and external systems and applications; changes in commercial or consumer spending, borrowing and savings preferences or behaviors; technological changes and the expanding use of technology in banking (including the adoption of mobile banking and funds transfer applications); the ability to retain and increase market share, retain and grow customers and control expenses; changes in the competitive and regulatory environment among financial and bank holding companies, banks and other financial service providers; volatility in the credit and equity markets and its effect on the general economy or local or regional business conditions; fluctuations in the price of the Company’s common stock or other securities; and the resulting impact on the Company’s ability to raise capital or make acquisitions, the effect of changes in accounting policies and practices, as may be adopted from time-to-time by our regulatory agencies, as well as by the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard-setters, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”, commonly referenced as the Current Expected Credit Loss (“CECL”) model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our workforce, management team and/or our board of directors; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (such as securities, consumer or employee class action litigation), regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California DFPI (formerly DBO); our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K/A and Form 10-K for the year ended December 31, 2021, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.
RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, except for December 31, 2021)
(Dollars in thousands)
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
|
2022 |
2022 |
2021 |
2021 |
2021 |
||||||||||||||||
|
Assets |
||||||||||||||||||||
|
Cash and due from banks |
$ | 224,736 | $ | 149,767 | $ | 501,372 | $ | 206,927 | $ | 493,653 | ||||||||||
|
Federal funds sold and other cash equivalents |
100,000 | 200,000 | 193,000 | 170,000 | 110,000 | |||||||||||||||
|
Total cash and cash equivalents |
324,736 | 349,767 | 694,372 | 376,927 | 603,653 | |||||||||||||||
|
Interest-bearing deposits in other financial institutions |
600 | 600 | 600 | 600 | 600 | |||||||||||||||
|
Investment securities available for sale |
358,135 | 420,448 | 368,260 | 345,000 | 339,568 | |||||||||||||||
|
Investment securities held to maturity |
5,741 | 6,246 | 6,252 | 6,258 | 6,664 | |||||||||||||||
|
Mortgage loans held for sale |
— | 3,572 | 5,957 | 15,188 | 9,246 | |||||||||||||||
|
Loans held for investment |
3,045,946 | 3,006,484 | 2,931,350 | 2,840,354 | 2,709,206 | |||||||||||||||
|
Allowance for loan losses |
(34,154 | ) | (33,292 | ) | (32,912 | ) | (32,231 | ) | (31,352 | ) | ||||||||||
|
Net loans held for investment |
3,011,792 | 2,973,192 | 2,898,438 | 2,808,123 | 2,677,854 | |||||||||||||||
|
Premises and equipment, net |
27,104 | 27,455 | 27,199 | 27,157 | 27,039 | |||||||||||||||
|
Federal Home Loan Bank (FHLB) stock |
15,000 | 15,000 | 15,000 | 15,000 | 15,000 | |||||||||||||||
|
Cash surrender value of life insurance |
56,642 | 56,313 | 55,988 | 55,656 | 55,325 | |||||||||||||||
|
Goodwill |
71,498 | 71,498 | 69,243 | 69,243 | 69,243 | |||||||||||||||
|
Servicing assets |
10,456 | 11,048 | 11,517 | 12,141 | 12,558 | |||||||||||||||
|
Core deposit intangibles |
4,248 | 4,525 | 4,075 | 4,327 | 4,608 | |||||||||||||||
|
Right-of-use assets- operating leases |
21,166 | 22,451 | 22,454 | 23,735 | 25,050 | |||||||||||||||
|
Accrued interest and other assets |
57,153 | 51,454 | 48,839 | 42,452 | 44,230 | |||||||||||||||
|
Total assets |
$ | 3,964,271 | $ | 4,013,569 | $ | 4,228,194 | $ | 3,801,807 | $ | 3,890,638 | ||||||||||
|
Liabilities and shareholders' equity |
||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||
|
Noninterest-bearing demand |
$ | 1,045,009 | $ | 1,159,703 | $ | 1,291,484 | $ | 824,771 | $ | 940,041 | ||||||||||
|
Savings, NOW and money market accounts |
868,307 | 885,050 | 927,609 | 931,517 | 858,597 | |||||||||||||||
|
Time deposits, less than $250,000 |
574,050 | 570,274 | 587,940 | 614,146 | 658,393 | |||||||||||||||
|
Time deposits, greater than or equal to $250,000 |
540,199 | 553,226 | 578,499 | 597,379 | 612,894 | |||||||||||||||
|
Total deposits |
3,027,565 | 3,168,253 | 3,385,532 | 2,967,813 | 3,069,925 | |||||||||||||||
|
Reserve for unfunded commitments |
1,070 | 1,186 | 1,203 | 1,304 | 1,216 | |||||||||||||||
|
FHLB advances |
250,000 | 150,000 | 150,000 | 150,000 | 150,000 | |||||||||||||||
|
Long-term debt, net of debt issuance costs |
173,296 | 173,152 | 173,007 | 172,862 | 172,718 | |||||||||||||||
|
Subordinated debentures |
14,611 | 14,556 | 14,502 | 14,447 | 14,393 | |||||||||||||||
|
Lease liabilities - operating leases |
22,057 | 23,314 | 23,282 | 24,524 | 25,798 | |||||||||||||||
|
Accrued interest and other liabilities |
11,965 | 18,283 | 13,985 | 14,833 | 14,263 | |||||||||||||||
|
Total liabilities |
3,500,564 | 3,548,744 | 3,761,511 | 3,345,783 | 3,448,313 | |||||||||||||||
|
Shareholders' equity: |
||||||||||||||||||||
|
Shareholder's equity |
479,382 | 475,077 | 468,267 | 456,490 | 442,086 | |||||||||||||||
|
Non-controlling interest |
72 | 72 | 72 | 72 | 72 | |||||||||||||||
|
Accumulated other comprehensive (loss) income - Net of tax |
(15,747 | ) | (10,324 | ) | (1,656 | ) | (538 | ) | 167 | |||||||||||
|
Total shareholders' equity |
463,707 | 464,825 | 466,683 | 456,024 | 442,325 | |||||||||||||||
|
Total liabilities and shareholders’ equity |
$ | 3,964,271 | $ | 4,013,569 | $ | 4,228,194 | $ | 3,801,807 | $ | 3,890,638 | ||||||||||
RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
|
For the Three Months Ended |
||||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
||||||||||
|
Interest and dividend income: |
||||||||||||
|
Interest and fees on loans |
$ | 40,157 | $ | 37,886 | $ | 34,669 | ||||||
|
Interest on interest-bearing deposits |
111 | 171 | 125 | |||||||||
|
Interest on investment securities |
1,419 | 1,007 | 794 | |||||||||
|
Dividend income on FHLB stock |
222 | 227 | 225 | |||||||||
|
Interest on federal funds sold and other |
429 | 275 | 158 | |||||||||
|
Total interest income |
42,338 | 39,566 | 35,971 | |||||||||
|
Interest expense: |
||||||||||||
|
Interest on savings deposits, NOW and money market accounts |
844 | 718 | 708 | |||||||||
|
Interest on time deposits |
1,506 | 1,574 | 2,410 | |||||||||
|
Interest on subordinated debentures and long term debt |
2,379 | 2,348 | 2,356 | |||||||||
|
Interest on other borrowed funds |
519 | 435 | 440 | |||||||||
|
Total interest expense |
5,248 | 5,075 | 5,914 | |||||||||
|
Net interest income before provision for loan losses |
37,090 | 34,491 | 30,057 | |||||||||
|
Provision for loan losses |
915 | 366 | 628 | |||||||||
|
Net interest income after provision for loan losses |
36,175 | 34,125 | 29,429 | |||||||||
|
Noninterest income: |
||||||||||||
|
Service charges, fees and other |
1,382 | 1,241 | 1,332 | |||||||||
|
Gain on sale of loans |
344 | 1,174 | 2,572 | |||||||||
|
Loan servicing fees, net of amortization |
472 | 432 | 118 | |||||||||
|
Recoveries on loans acquired in business combinations |
98 | 5 | 5 | |||||||||
|
Unrealized (loss) on equity investments |
— | — | (35 | ) | ||||||||
|
Gain (loss) on derivatives |
39 | (233 | ) | (38 | ) | |||||||
|
Increase in cash surrender value of life insurance |
330 | 325 | 217 | |||||||||
|
Gain on sale of fixed assets |
757 | — | — | |||||||||
|
Total noninterest income |
3,422 | 2,944 | 4,171 | |||||||||
|
Noninterest expense: |
||||||||||||
|
Salaries and employee benefits |
9,628 | 9,369 | 8,742 | |||||||||
|
Occupancy and equipment expenses |
2,174 | 2,206 | 2,135 | |||||||||
|
Data processing |
1,293 | 1,258 | 1,231 | |||||||||
|
Legal and professional |
2,254 | 1,006 | 536 | |||||||||
|
Office expenses |
358 | 293 | 272 | |||||||||
|
Marketing and business promotion |
501 | 307 | 231 | |||||||||
|
Insurance and regulatory assessments |
478 | 441 | 354 | |||||||||
|
Core deposit premium |
277 | 279 | 287 | |||||||||
|
OREO expenses |
5 | 8 | 4 | |||||||||
|
Merger expenses |
23 | 37 | 17 | |||||||||
|
Other expenses |
621 | 857 | 871 | |||||||||
|
Total noninterest expense |
17,612 | 16,061 | 14,680 | |||||||||
|
Income before income taxes |
21,985 | 21,008 | 18,920 | |||||||||
|
Income tax expense |
6,508 | 6,391 | 5,540 | |||||||||
|
Net income |
$ | 15,477 | $ | 14,617 | $ | 13,380 | ||||||
|
Net income per share |
||||||||||||
|
Basic |
$ | 0.81 | $ | 0.75 | $ | 0.69 | ||||||
|
Diluted |
$ | 0.80 | $ | 0.74 | $ | 0.67 | ||||||
|
Cash Dividends declared per common share |
$ | 0.14 | $ | 0.14 | $ | 0.13 | ||||||
|
Weighted-average common shares outstanding |
||||||||||||
|
Basic |
19,066,621 | 19,377,407 | 19,432,204 | |||||||||
|
Diluted |
19,368,860 | 19,799,323 | 19,874,969 | |||||||||
RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
|
For the Six Months Ended |
||||||||
|
June 30, 2022 |
June 30, 2021 |
|||||||
|
Interest and dividend income: |
||||||||
|
Interest and fees on loans |
$ | 78,043 | $ | 69,185 | ||||
|
Interest on interest-earning deposits |
282 | 173 | ||||||
|
Interest on investment securities |
2,426 | 1,421 | ||||||
|
Dividend income on FHLB stock |
449 | 417 | ||||||
|
Interest on federal funds sold and other |
704 | 315 | ||||||
|
Total interest income |
81,904 | 71,511 | ||||||
|
Interest expense: |
||||||||
|
Interest on savings deposits, NOW and money market accounts |
1,562 | 1,406 | ||||||
|
Interest on time deposits |
3,080 | 5,374 | ||||||
|
Interest on subordinated debentures and long term debt |
4,727 | 4,314 | ||||||
|
Interest on other borrowed funds |
954 | 875 | ||||||
|
Total interest expense |
10,323 | 11,969 | ||||||
|
Net interest income |
71,581 | 59,542 | ||||||
|
Provision for loan losses |
1,282 | 2,128 | ||||||
|
Net interest income after provision for loans losses |
70,299 | 57,414 | ||||||
|
Noninterest income: |
||||||||
|
Service charges, fees and other (1) |
2,622 | 2,800 | ||||||
|
Gain on sale of loans |
1,518 | 6,413 | ||||||
|
Loan servicing fees, net of amortization |
904 | 364 | ||||||
|
Recoveries on loans acquired in business combinations |
103 | 10 | ||||||
|
Unrealized (loss) gain on equity investments |
— | (55 | ) | |||||
|
(Loss) gain on derivatives |
(194 | ) | 129 | |||||
|
Increase in cash surrender value of life insurance |
654 | 404 | ||||||
|
Gain on sale of fixed assets |
757 | — | ||||||
|
Total noninterest income |
6,364 | 10,065 | ||||||
|
Noninterest expense: |
||||||||
|
Salaries and employee benefits |
18,997 | 17,984 | ||||||
|
Occupancy and equipment expenses |
4,380 | 4,377 | ||||||
|
Data processing |
2,551 | 2,671 | ||||||
|
Legal and professional |
3,260 | 1,341 | ||||||
|
Office expenses |
651 | 527 | ||||||
|
Marketing and business promotion |
808 | 415 | ||||||
|
Insurance and regulatory assessments |
919 | 702 | ||||||
|
Core deposit premium |
556 | 588 | ||||||
|
OREO expenses |
13 | 9 | ||||||
|
Merger expenses |
60 | 59 | ||||||
|
Other expenses |
1,475 | 1,799 | ||||||
|
Total noninterest expense |
33,670 | 30,472 | ||||||
|
Income before income taxes |
42,993 | 37,007 | ||||||
|
Income tax expense |
12,899 | 11,171 | ||||||
|
Net income |
$ | 30,094 | $ | 25,836 | ||||
|
Net income per share |
||||||||
|
Basic |
$ | 1.56 | $ | 1.32 | ||||
|
Diluted |
$ | 1.54 | $ | 1.30 | ||||
|
Cash Dividends declared per common share |
$ | 0.28 | $ | 0.25 | ||||
|
Weighted-average common shares outstanding |
||||||||
|
Basic |
19,221,155 | 19,453,889 | ||||||
|
Diluted |
19,582,902 | 19,844,077 | ||||||
|
|
RBB BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
|
For the three months ended |
||||||||||||||||||||||||||||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
||||||||||||||||||||||||||||||||||
|
Average |
Interest |
Yield / |
Average |
Interest |
Yield / |
Average |
Interest |
Yield / |
||||||||||||||||||||||||||||
|
(tax-equivalent basis, dollars in thousands) |
Balance |
& Fees |
Rate |
Balance |
& Fees |
Rate |
Balance |
& Fees |
Rate |
|||||||||||||||||||||||||||
|
Earning assets: |
||||||||||||||||||||||||||||||||||||
|
Federal funds sold, cash equivalents & other (1) |
$ | 249,738 | $ | 762 | 1.22 | % | $ | 628,634 | $ | 673 | 0.43 | % | $ | 582,554 | $ | 508 | 0.35 | % | ||||||||||||||||||
|
Securities |
||||||||||||||||||||||||||||||||||||
|
Available for sale (2) |
399,321 | 1,393 | 1.40 | % | 392,858 | 974 | 1.01 | % | 328,004 | 751 | 0.92 | % | ||||||||||||||||||||||||
|
Held to maturity (2) |
5,744 | 50 | 3.49 | % | 6,250 | 57 | 3.70 | % | 6,667 | 60 | 3.61 | % | ||||||||||||||||||||||||
|
Mortgage loans held for sale |
892 | 13 | 5.85 | % | 3,652 | 43 | 4.78 | % | 21,033 | 173 | 3.30 | % | ||||||||||||||||||||||||
|
Loans held for investment: (3) |
||||||||||||||||||||||||||||||||||||
|
Real estate |
2,663,753 | 35,207 | 5.30 | % | 2,602,382 | 33,095 | 5.16 | % | 2,292,145 | 29,794 | 5.21 | % | ||||||||||||||||||||||||
|
Commercial |
325,861 | 4,937 | 6.08 | % | 380,978 | 4,748 | 5.05 | % | 388,049 | 4,702 | 4.86 | % | ||||||||||||||||||||||||
|
Total loans |
2,989,614 | 40,144 | 5.39 | % | 2,983,360 | 37,843 | 5.14 | % | 2,680,194 | 34,496 | 5.16 | % | ||||||||||||||||||||||||
|
Total earning assets |
3,645,309 | $ | 42,362 | 4.66 | % | 4,014,754 | $ | 39,590 | 4.00 | % | 3,618,452 | $ | 35,988 | 3.99 | % | |||||||||||||||||||||
|
Noninterest-earning assets |
243,227 | 241,235 | 230,049 | |||||||||||||||||||||||||||||||||
|
Total assets |
$ | 3,888,536 | $ | 4,255,989 | $ | 3,848,501 | ||||||||||||||||||||||||||||||
|
Interest-bearing liabilities |
||||||||||||||||||||||||||||||||||||
|
NOW |
$ | 75,637 | $ | 50 | 0.27 | % | $ | 75,399 | $ | 43 | 0.23 | % | $ | 66,777 | $ | 45 | 0.27 | % | ||||||||||||||||||
|
Money Market |
631,807 | 759 | 0.48 | % | 720,197 | 643 | 0.36 | % | 640,026 | 628 | 0.39 | % | ||||||||||||||||||||||||
|
Saving deposits |
148,400 | 35 | 0.09 | % | 145,327 | 32 | 0.09 | % | 140,418 | 35 | 0.10 | % | ||||||||||||||||||||||||
|
Time deposits, less than $250,000 |
553,282 | 724 | 0.52 | % | 600,563 | 754 | 0.51 | % | 657,494 | 1,163 | 0.71 | % | ||||||||||||||||||||||||
|
Time deposits, $250,000 and over |
526,164 | 782 | 0.60 | % | 570,210 | 820 | 0.58 | % | 604,429 | 1,247 | 0.83 | % | ||||||||||||||||||||||||
|
Total interest-bearing deposits |
1,935,290 | 2,350 | 0.49 | % | 2,111,696 | 2,292 | 0.44 | % | 2,109,144 | 3,118 | 0.59 | % | ||||||||||||||||||||||||
|
FHLB advances |
182,749 | 519 | 1.14 | % | 150,000 | 435 | 1.18 | % | 150,000 | 440 | 1.18 | % | ||||||||||||||||||||||||
|
Long-term debt |
173,201 | 2,195 | 5.08 | % | 173,058 | 2,194 | 5.14 | % | 172,622 | 2,206 | 5.13 | % | ||||||||||||||||||||||||
|
Subordinated debentures |
14,575 | 184 | 5.06 | % | 14,521 | 154 | 4.30 | % | 14,357 | 150 | 4.19 | % | ||||||||||||||||||||||||
|
Total interest-bearing liabilities |
2,305,815 | 5,248 | 0.91 | % | 2,449,275 | 5,075 | 0.84 | % | 2,446,123 | 5,914 | 0.97 | % | ||||||||||||||||||||||||
|
Noninterest-bearing liabilities |
||||||||||||||||||||||||||||||||||||
|
Noninterest-bearing deposits |
1,082,793 | 1,301,497 | 913,442 | |||||||||||||||||||||||||||||||||
|
Other noninterest-bearing liabilities |
33,325 | 34,319 | 46,549 | |||||||||||||||||||||||||||||||||
|
Total noninterest-bearing liabilities |
1,116,118 | 1,335,816 | 959,991 | |||||||||||||||||||||||||||||||||
|
Shareholders' equity |
466,603 | 470,898 | 442,387 | |||||||||||||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ | 3,888,536 | $ | 4,255,989 | $ | 3,848,501 | ||||||||||||||||||||||||||||||
|
Net interest income / interest rate spreads |
$ | 37,114 | 3.75 | % | $ | 34,515 | 3.16 | % | $ | 30,074 | 3.02 | % | ||||||||||||||||||||||||
|
Net interest margin |
4.08 | % | 3.49 | % | 3.33 | % | ||||||||||||||||||||||||||||||
|
(1) |
Includes income and average balances for FHLB stock, term federal funds, interest-bearing time deposits and other miscellaneous interest-bearing assets. |
|
(2) |
Interest income and average rates for tax-exempt loans and securities are presented on a tax-equivalent basis. |
|
(3) |
Average loan balances include nonaccrual loans and loans held for sale. Interest income on loans includes - amortization of deferred loan fees, net of deferred loan costs. |
RBB BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
|
For the six months ended |
||||||||||||||||||||||||
|
June 30, 2022 |
June 30, 2021 |
|||||||||||||||||||||||
|
Average |
Interest |
Yield / |
Average |
Interest |
Yield / |
|||||||||||||||||||
|
(tax-equivalent basis, dollars in thousands) |
Balance |
& Fees |
Rate |
Balance |
& Fees |
Rate |
||||||||||||||||||
|
Earning assets: |
||||||||||||||||||||||||
|
Federal funds sold, cash equivalents & other (1) |
$ | 438,140 | $ | 1,435 | 0.66 | % | $ | 399,907 | $ | 905 | 0.46 | % | ||||||||||||
|
Securities |
||||||||||||||||||||||||
|
Available for sale (2) |
396,107 | 2,367 | 1.21 | % | 284,129 | 1,323 | 0.94 | % | ||||||||||||||||
|
Held to maturity (2) |
5,996 | 107 | 3.60 | % | 6,832 | 126 | 3.72 | % | ||||||||||||||||
|
Mortgage loans held for sale |
2,265 | 56 | 4.99 | % | 37,436 | 584 | 3.15 | % | ||||||||||||||||
|
Loans held for investment: (3) |
||||||||||||||||||||||||
|
Real estate |
2,633,237 | 68,302 | 5.23 | % | 2,299,746 | 59,315 | 5.20 | % | ||||||||||||||||
|
Commercial |
353,267 | 9,685 | 5.53 | % | 386,256 | 9,286 | 4.85 | % | ||||||||||||||||
|
Total loans |
2,986,504 | 77,987 | 5.27 | % | 2,686,002 | 68,601 | 5.15 | % | ||||||||||||||||
|
Total earning assets |
3,829,012 | $ | 81,952 | 4.32 | % | 3,414,306 | $ | 71,539 | 4.23 | % | ||||||||||||||
|
Noninterest-earning assets |
242,235 | 229,032 | ||||||||||||||||||||||
|
Total assets |
$ | 4,071,247 | $ | 3,643,338 | ||||||||||||||||||||
|
Interest-bearing liabilities |
||||||||||||||||||||||||
|
NOW |
$ | 75,519 | $ | 94 | 0.25 | % | $ | 65,690 | $ | 88 | 0.27 | % | ||||||||||||
|
Money Market |
675,758 | 1,401 | 0.42 | % | 609,854 | 1,251 | 0.41 | % | ||||||||||||||||
|
Saving deposits |
146,872 | 67 | 0.09 | % | 135,810 | 67 | 0.10 | % | ||||||||||||||||
|
Time deposits, less than $250,000 |
576,792 | 1,478 | 0.52 | % | 660,246 | 2,659 | 0.81 | % | ||||||||||||||||
|
Time deposits, $250,000 and over |
548,065 | 1,602 | 0.59 | % | 599,234 | 2,716 | 0.91 | % | ||||||||||||||||
|
Total interest-bearing deposits |
2,023,006 | 4,642 | 0.46 | % | 2,070,834 | 6,781 | 0.66 | % | ||||||||||||||||
|
FHLB advances |
166,465 | 954 | 1.16 | % | 150,000 | 875 | 1.18 | % | ||||||||||||||||
|
Long-term debt |
173,129 | 4,388 | 5.11 | % | 142,349 | 4,015 | 5.69 | % | ||||||||||||||||
|
Subordinated debentures |
14,548 | 339 | 4.70 | % | 14,330 | 298 | 4.19 | % | ||||||||||||||||
|
Total interest-bearing liabilities |
2,377,148 | $ | 10,323 | 0.88 | % | 2,377,513 | $ | 11,969 | 1.02 | % | ||||||||||||||
|
Noninterest-bearing liabilities |
||||||||||||||||||||||||
|
Noninterest-bearing deposits |
1,191,540 | 784,276 | ||||||||||||||||||||||
|
Other noninterest-bearing liabilities |
33,820 | 43,352 | ||||||||||||||||||||||
|
Total noninterest-bearing liabilities |
1,225,360 | 827,628 | ||||||||||||||||||||||
|
Shareholders' equity |
468,739 | 438,197 | ||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ | 4,071,247 | $ | 3,643,338 | ||||||||||||||||||||
|
Net interest income / interest rate spreads |
$ | 71,629 | 3.44 | % | $ | 59,570 | 3.21 | % | ||||||||||||||||
|
Net interest margin |
3.77 | % | 3.52 | % | ||||||||||||||||||||
|
(1) |
Includes income and average balances for FHLB stock, term federal funds, interest-bearing time deposits and other miscellaneous interest-bearing assets. |
|
(2) |
Interest income and average rates for tax-exempt loans and securities are presented on a tax-equivalent basis. |
|
(3) |
Average loan balances include nonaccrual loans and loans held for sale. Interest income on loans includes - amortization of deferred loan fees, net of deferred loan costs. |
RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
|
For the three months ended |
||||||||||||
|
June 30, |
March 31, |
June 30, |
||||||||||
|
2022 |
2022 |
2021 |
||||||||||
|
Per share data (common stock) |
||||||||||||
|
Earnings |
||||||||||||
|
Basic |
$ | 0.81 | $ | 0.75 | $ | 0.69 | ||||||
|
Diluted |
$ | 0.80 | $ | 0.74 | $ | 0.67 | ||||||
|
Dividends declared |
$ | 0.14 | $ | 0.14 | $ | 0.13 | ||||||
|
Book value |
$ | 24.56 | $ | 24.15 | $ | 22.86 | ||||||
|
Tangible book value |
$ | 20.55 | $ | 20.20 | $ | 19.04 | ||||||
|
Weighted average shares outstanding |
||||||||||||
|
Basic |
19,066,621 | 19,377,407 | 19,432,204 | |||||||||
|
Diluted |
19,368,860 | 19,799,323 | 19,874,969 | |||||||||
|
Shares outstanding at period end |
18,881,829 | 19,247,970 | 19,349,802 | |||||||||
|
Performance ratios |
||||||||||||
|
Return on average assets, annualized |
1.60 | % | 1.39 | % | 1.39 | % | ||||||
|
Return on average shareholders' equity, annualized |
13.30 | % | 12.59 | % | 12.13 | % | ||||||
|
Return on average tangible common equity, annualized |
15.89 | % | 14.91 | % | 14.57 | % | ||||||
|
Noninterest income to average assets, annualized |
0.35 | % | 0.28 | % | 0.43 | % | ||||||
|
Noninterest expense to average assets, annualized |
1.82 | % | 1.53 | % | 1.53 | % | ||||||
|
Yield on average earning assets |
4.66 | % | 4.00 | % | 3.99 | % | ||||||
|
Cost of average total deposits |
0.31 | % | 0.27 | % | 0.41 | % | ||||||
|
Cost of average interest-bearing deposits |
0.49 | % | 0.44 | % | 0.59 | % | ||||||
|
Cost of average interest-bearing liabilities |
0.91 | % | 0.84 | % | 0.97 | % | ||||||
|
Accretion on loans to average earning assets |
0.01 | % | 0.02 | % | 0.02 | % | ||||||
|
Net interest spread |
3.75 | % | 3.16 | % | 3.02 | % | ||||||
|
Net interest margin |
4.08 | % | 3.49 | % | 3.33 | % | ||||||
|
Efficiency ratio |
43.47 | % | 42.90 | % | 42.89 | % | ||||||
|
Common stock dividend payout ratio |
17.28 | % | 18.67 | % | 18.84 | % | ||||||
RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
|
For the six months ended June 30, |
||||||||
|
2022 |
2021 |
|||||||
|
Per share data (common stock) |
||||||||
|
Earnings |
||||||||
|
Basic |
$ | 1.56 | $ | 1.32 | ||||
|
Diluted |
$ | 1.54 | $ | 1.30 | ||||
|
Dividends declared |
$ | 0.28 | $ | 0.25 | ||||
|
Book value |
$ | 24.56 | $ | 22.86 | ||||
|
Tangible book value |
$ | 20.55 | $ | 19.04 | ||||
|
Weighted average shares outstanding |
||||||||
|
Basic |
19,221,155 | 19,453,889 | ||||||
|
Diluted |
19,582,902 | 19,844,077 | ||||||
|
Shares outstanding at period end |
18,881,829 | 19,349,802 | ||||||
|
Performance ratios |
||||||||
|
Return on average assets, annualized |
1.49 | % | 1.43 | % | ||||
|
Return on average shareholders' equity, annualized |
12.95 | % | 11.89 | % | ||||
|
Return on average tangible common equity, annualized |
15.40 | % | 14.31 | % | ||||
|
Noninterest income to average assets, annualized |
0.32 | % | 0.56 | % | ||||
|
Noninterest expense to average assets, annualized |
1.67 | % | 1.69 | % | ||||
|
Yield on average earning assets |
4.32 | % | 4.23 | % | ||||
|
Cost of average deposits |
0.29 | % | 0.48 | % | ||||
|
Cost of average interest-bearing deposits |
0.46 | % | 0.66 | % | ||||
|
Cost of average interest-bearing liabilities |
0.88 | % | 1.02 | % | ||||
|
Accretion on loans to average earning assets |
0.02 | % | 0.04 | % | ||||
|
Net interest spread |
3.44 | % | 3.21 | % | ||||
|
Net interest margin |
3.77 | % | 3.52 | % | ||||
|
Efficiency ratio |
43.20 | % | 43.78 | % | ||||
|
Common stock dividend payout ratio |
17.95 | % | 18.94 | % | ||||
RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
|
As of |
||||||||||||
|
June 30, |
March 31, |
June 30, |
||||||||||
|
2022 |
2022 |
2021 |
||||||||||
|
Loan to deposit ratio |
100.61 | % | 94.89 | % | 88.25 | % | ||||||
|
Core deposits / total deposits |
82.16 | % | 82.54 | % | 80.04 | % | ||||||
|
Net non-core funding dependence ratio |
-0.44 | % | -0.28 | % | 0.87 | % | ||||||
|
Credit Quality Data: |
||||||||||||
|
Loans 30-89 days past due |
$ | 8,346 | $ | 17,635 | $ | 5,449 | ||||||
|
Loans 30-89 days past due to total loans |
0.27 | % | 0.59 | % | 0.20 | % | ||||||
|
Nonperforming loans |
$ | 13,937 | $ | 20,691 | $ | 19,243 | ||||||
|
Nonperforming loans to total loans |
0.46 | % | 0.69 | % | 0.71 | % | ||||||
|
Nonperforming assets |
$ | 14,230 | $ | 20,984 | $ | 19,536 | ||||||
|
Nonperforming assets to total assets |
0.36 | % | 0.52 | % | 0.50 | % | ||||||
|
Allowance for loan losses to total loans |
1.12 | % | 1.11 | % | 1.16 | % | ||||||
|
Allowance for loan losses to nonperforming loans |
245.06 | % | 160.90 | % | 162.93 | % | ||||||
|
Net charge-offs to average loans (for the quarter-to-date period) |
0.01 | % | 0.00 | % | 0.01 | % | ||||||
|
Regulatory and other capital ratios—Company |
||||||||||||
|
Tangible common equity to tangible assets |
9.98 | % | 9.87 | % | 9.65 | % | ||||||
|
Tier 1 leverage ratio |
10.96 | % | 9.90 | % | 10.20 | % | ||||||
|
Tier 1 common capital to risk-weighted assets |
14.84 | % | 14.12 | % | 14.76 | % | ||||||
|
Tier 1 capital to risk-weighted assets |
15.38 | % | 14.63 | % | 15.33 | % | ||||||
|
Total capital to risk-weighted assets |
22.98 | % | 21.96 | % | 23.48 | % | ||||||
|
Regulatory capital ratios—Bank only |
||||||||||||
|
Tier 1 leverage ratio |
13.90 | % | 12.29 | % | 12.34 | % | ||||||
|
Tier 1 common capital to risk-weighted assets |
19.55 | % | 18.15 | % | 18.58 | % | ||||||
|
Tier 1 capital to risk-weighted assets |
19.55 | % | 18.15 | % | 18.58 | % | ||||||
|
Total capital to risk-weighted assets |
20.80 | % | 19.37 | % | 19.83 | % | ||||||
RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
|
2nd Quarter |
1st Quarter |
4th Quarter |
3rd Quarter |
2nd Quarter |
||||||||||||||||
|
Quarterly Consolidated Statements of Earnings |
2022 |
2022 |
2021 |
2021 |
2021 |
|||||||||||||||
|
Interest income |
||||||||||||||||||||
|
Loans, including fees |
$ | 40,157 | $ | 37,886 | $ | 36,783 | $ | 35,601 | $ | 34,669 | ||||||||||
|
Investment securities and other |
2,181 | 1,680 | 1,661 | 1,507 | 1,302 | |||||||||||||||
|
Total interest income |
42,338 | 39,566 | 38,444 | 37,108 | 35,971 | |||||||||||||||
|
Interest expense |
||||||||||||||||||||
|
Deposits |
2,350 | 2,292 | 2,431 | 2,745 | 3,118 | |||||||||||||||
|
Interest on subordinated debentures and other |
2,379 | 2,348 | 2,343 | 2,342 | 2,356 | |||||||||||||||
|
Other borrowings |
519 | 435 | 445 | 445 | 440 | |||||||||||||||
|
Total interest expense |
5,248 | 5,075 | 5,219 | 5,532 | 5,914 | |||||||||||||||
|
Net interest income before provision for loan losses |
37,090 | 34,491 | 33,225 | 31,576 | 30,057 | |||||||||||||||
|
Provision for loan losses |
915 | 366 | 635 | 1,196 | 628 | |||||||||||||||
|
Net interest income after provision for loan losses |
36,175 | 34,125 | 32,590 | 30,380 | 29,429 | |||||||||||||||
|
Noninterest income |
3,422 | 2,944 | 3,156 | 5,524 | 4,171 | |||||||||||||||
|
Noninterest expense |
17,612 | 16,061 | 13,300 | 14,420 | 14,680 | |||||||||||||||
|
Earnings before income taxes |
21,985 | 21,008 | 22,446 | 21,484 | 18,920 | |||||||||||||||
|
Income taxes |
6,508 | 6,391 | 6,740 | 6,120 | 5,540 | |||||||||||||||
|
Net income |
$ | 15,477 | $ | 14,617 | $ | 15,706 | $ | 15,364 | $ | 13,380 | ||||||||||
|
Net income per common share - basic |
$ | 0.81 | $ | 0.75 | $ | 0.81 | $ | 0.79 | $ | 0.69 | ||||||||||
|
Net income per common share - diluted |
$ | 0.80 | $ | 0.74 | $ | 0.79 | $ | 0.77 | $ | 0.67 | ||||||||||
|
Cash dividends declared per common share |
$ | 0.14 | $ | 0.14 | $ | 0.13 | $ | 0.13 | $ | 0.13 | ||||||||||
|
Cash dividends declared on common shares |
$ | 2,687 | $ | 2,724 | $ | 2,537 | $ | 2,516 | $ | 2,540 | ||||||||||
|
Yield on average assets, annualized |
1.60 | % | 1.39 | % | 1.52 | % | 1.54 | % | 1.39 | % | ||||||||||
|
Yield on average earning assets |
4.66 | % | 4.00 | % | 3.97 | % | 3.97 | % | 3.99 | % | ||||||||||
|
Cost of average deposits |
0.31 | % | 0.27 | % | 0.30 | % | 0.35 | % | 0.41 | % | ||||||||||
|
Cost of average interest-bearing deposits |
0.49 | % | 0.44 | % | 0.47 | % | 0.51 | % | 0.59 | % | ||||||||||
|
Cost of average interest-bearing liabilities |
0.91 | % | 0.84 | % | 0.86 | % | 0.89 | % | 0.97 | % | ||||||||||
|
Accretion on loans to average earning assets |
0.01 | % | 0.02 | % | 0.02 | % | 0.03 | % | 0.02 | % | ||||||||||
|
Net interest margin |
4.08 | % | 3.49 | % | 3.43 | % | 3.38 | % | 3.33 | % | ||||||||||
RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited, except for December 31, 2021)
(Dollars in thousands, except per share amounts)
|
Loan Portfolio Detail |
As of June 30, 2022 |
As of March 31, 2022 |
As of December 31, 2021 |
As of September 30, 2021 |
As of June 30, 2021 |
|||||||||||||||||||||||||||||||||||
|
(dollars in thousands) |
$% |
$% |
$% |
$% |
$% |
|||||||||||||||||||||||||||||||||||
|
Loans: |
||||||||||||||||||||||||||||||||||||||||
|
Commercial and industrial |
$ | 238,045 | 7.8 | % | $ | 280,825 | 9.3 | % | $ | 268,709 | 9.2 | % | $ | 276,387 | 9.7 | % | $ | 277,080 | 10.2 | % | ||||||||||||||||||||
|
SBA |
59,303 | 1.9 | % | 67,688 | 2.3 | % | 76,136 | 2.6 | % | 88,784 | 3.1 | % | 98,572 | 3.6 | % | |||||||||||||||||||||||||
|
Construction and land development |
356,772 | 11.7 | % | 346,766 | 11.5 | % | 303,144 | 10.3 | % | 271,764 | 9.6 | % | 236,965 | 8.7 | % | |||||||||||||||||||||||||
|
Commercial real estate (1) |
1,160,350 | 38.1 | % | 1,217,985 | 40.5 | % | 1,247,999 | 42.6 | % | 1,205,630 | 42.4 | % | 1,102,467 | 40.7 | % | |||||||||||||||||||||||||
|
Single-family residential mortgages |
1,205,732 | 39.6 | % | 1,064,581 | 35.4 | % | 1,004,576 | 34.3 | % | 974,780 | 34.3 | % | 984,311 | 36.3 | % | |||||||||||||||||||||||||
|
Other loans |
25,744 | 0.9 | % | 28,639 | 1.0 | % | 30,786 | 1.0 | % | 23,009 | 0.9 | % | 9,811 | 0.5 | % | |||||||||||||||||||||||||
|
Total loans (2) |
$ | 3,045,946 | 100.0 | % | $ | 3,006,484 | 100.0 | % | $ | 2,931,350 | 100.0 | % | $ | 2,840,354 | 100.0 | % | $ | 2,709,206 | 100.0 | % | ||||||||||||||||||||
|
Allowance for loan losses |
(34,154 | ) | (33,292 | ) | (32,912 | ) | (32,231 | ) | (31,352 | ) | ||||||||||||||||||||||||||||||
|
Total loans, net |
$ | 3,011,792 | $ | 2,973,192 | $ | 2,898,438 | $ | 2,808,123 | $ | 2,677,854 | ||||||||||||||||||||||||||||||
|
(1) |
Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans. |
|
(2) |
Net of discounts and deferred fees and costs. |
|
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
Change in Allowance for Loan Losses |
June 30, |
June 30, |
||||||||||||||
|
(dollars in thousands) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
|
Beginning balance |
$ | 33,292 | $ | 30,795 | $ | 32,912 | $ | 29,337 | ||||||||
|
Additions to the allowance charged to expense |
915 | 628 | 1,282 | 2,128 | ||||||||||||
|
Net recoveries (charge-offs) on loans |
(53 | ) | (71 | ) | (40 | ) | (113 | ) | ||||||||
|
Ending balance |
$ | 34,154 | $ | 31,352 | $ | 34,154 | $ | 31,352 | ||||||||
Tangible Book Value Reconciliations (non-GAAP)
The tangible book value per share is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of June 30, 2022 and 2021, and March 31, 2022.
|
(dollars in thousands, except per share data) |
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
|
Tangible common equity: |
||||||||||||
|
Total shareholders' equity |
$ | 463,707 | $ | 464,825 | $ | 442,325 | ||||||
|
Adjustments |
||||||||||||
|
Goodwill |
(71,498 | ) | (71,498 | ) | (69,243 | ) | ||||||
|
Core deposit intangible |
(4,248 | ) | (4,525 | ) | (4,608 | ) | ||||||
|
Tangible common equity |
$ | 387,961 | $ | 388,802 | $ | 368,474 | ||||||
|
Tangible assets: |
||||||||||||
|
Total assets-GAAP |
$ | 3,964,271 | $ | 4,013,569 | $ | 3,890,638 | ||||||
|
Adjustments |
||||||||||||
|
Goodwill |
(71,498 | ) | (71,498 | ) | (69,243 | ) | ||||||
|
Core deposit intangible |
(4,248 | ) | (4,525 | ) | (4,608 | ) | ||||||
|
Tangible assets |
$ | 3,888,525 | $ | 3,937,546 | $ | 3,816,787 | ||||||
|
Common shares outstanding |
$ | 18,881,829 | 19,247,970 | 19,349,802 | ||||||||
|
Tangible common equity to tangible assets ratio |
9.98 | % | 9.87 | % | 9.65 | % | ||||||
|
Book value per share |
$ | 24.56 | $ | 24.15 | $ | 22.86 | ||||||
|
Tangible book value per share |
$ | 20.55 | $ | 20.20 | $ | 19.04 | ||||||
Exhibit 99.2
Press Release
For Immediate Release
|
|
Contact: David Morris |
|
|
Interim President & CEO |
| CFO | |
|
|
(714) 670-2488 |
RBB Bancorp Declares Quarterly Cash Dividend of $0.14 Per Share and Renews Buyback
LOS ANGELES--(BUSINESS WIRE)--July 21, 2022-- RBB Bancorp (NASDAQ: RBB) and its subsidiaries, Royal Business Bank ("the Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as "the Company", announced that its Board of Directors has declared a quarterly cash dividend of $0.14 per share. The dividend is payable on August 12, 2022 to common shareholders of record as of August 1, 2022.
The Company also announced that its Board of Directors has adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to 500 thousand shares of its common stock, or approximately 2.63% of its outstanding shares.
The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rules 10b5-1 and 10b-18 of the Securities and Exchange Commission.
The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares
Corporate Overview
RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of March 31, 2022, the company had total assets of $4.0 billion. Royal Business Bank, its wholly-owned subsidiary, is a full service commercial bank, which provides business banking services to the Chinese-American communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, automobile lending, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company's administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its finance and operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com.