Financial Performance - Net income for Q3 2025 was $10.1 million, or $0.59 diluted earnings per share, an increase from $9.3 million in Q2 2025 and $7.0 million in Q3 2024[183]. - The company reported a decrease in the effective tax rate contributing to higher net income in Q3 2025 compared to the previous quarter[183]. - Net interest income for the three months ended September 30, 2025, was $29.3 million, an increase from $27.3 million in the previous quarter[191]. - The efficiency ratio improved to 57.36% for the third quarter of 2025, compared to 57.22% in the previous quarter[191]. - The return on average assets was 0.97% for the third quarter of 2025, compared to 0.93% in the previous quarter[191]. - Net interest income increased by $1.9 million to $29.3 million for Q3 2025 compared to Q2 2025, driven by a $3.2 million increase in interest income[204]. - Noninterest income for Q3 2025 decreased to $3.3 million, down $5.2 million from Q2 2025, primarily due to the absence of ERC funds received in the previous quarter[220]. - Noninterest income for the nine months ended September 30, 2025, increased by $1.5 million to $14.1 million compared to $12.6 million in the same period of 2024[222]. Asset and Liability Management - Total assets increased by $216.0 million to $4.2 billion as of September 30, 2025, primarily due to a $249.3 million increase in gross loans held for investment, reaching $3.3 billion[185]. - Total deposits rose by $282.7 million to $3.4 billion, driven by a $295.2 million increase in interest-bearing deposits[185]. - Total liabilities increased by $209.5 million to $3.7 billion at September 30, 2025, primarily due to a $282.7 million increase in deposits[289]. - Total shareholders' equity was $514.3 million, with a book value per share of $30.18, compared to $517.7 million and $29.25 per share at June 30, 2025, primarily due to common stock repurchases of $12.5 million[189]. - Cash and cash equivalents decreased by $22.8 million, or 8.9%, to $234.9 million as of September 30, 2025[236]. Loan Portfolio and Credit Quality - The loan portfolio increased by $249.3 million, or 10.9% annualized, reaching $3.3 billion as of September 30, 2025, primarily driven by increases in SFR mortgage loans ($157.0 million) and CRE loans ($85.2 million)[249]. - Nonperforming assets decreased by $6.7 million to $54.3 million, representing 1.29% of total assets as of September 30, 2025, down from 1.49% at June 30, 2025[187]. - The allowance for credit losses totaled $45.4 million, a decrease of $6.2 million from $51.6 million at June 30, 2025, with the allowance as a percentage of loans HFI decreasing to 1.36%[188]. - The provision for credit losses for Q3 2025 was $625,000, significantly lower than $2.4 million in Q2 2025, reflecting net loan growth and improved credit quality metrics[216]. - Net charge-offs for Q3 2025 totaled $6.9 million, representing 0.84% of average loans, compared to 0.42% in Q2 2025[216]. Interest Income and Expense - The net interest margin (NIM) was 2.98% for Q3 2025, an increase of 6 basis points from 2.92% in Q2 2025, attributed to a 6 basis point increase in yield on average interest-earning assets[205]. - The total cost of deposits was $3,251,564 thousand with a cost of 3.03% for the three months ended September 30, 2025, slightly down from 3.05% in the previous quarter[197]. - Interest expense on deposits decreased by $10.2 million to $72.2 million for the nine months ended September 30, 2025, primarily due to lower average rates paid on interest-bearing deposits[212]. - The average cost of funds decreased to 3.12% for Q3 2025 from 3.14% in Q2 2025, reflecting a decrease in the average cost of interest-bearing deposits[206]. Taxation - The effective tax rate for Q3 2025 was 23.5%, lower than the statutory rate due to the realization of purchased Federal tax credits[232]. - The annual effective tax rate for fiscal 2025 is estimated to be in the range of 26% to 27%[232]. Noninterest Expense - Total noninterest expense for Q3 2025 was $18.7 million, a decrease from $20.5 million in Q2 2025, with salaries and employee benefits accounting for $10.6 million[228]. - For the nine months ended September 30, 2025, noninterest expense was $57.7 million, up $6.2 million from $51.5 million in the same period of 2024, with salaries and employee benefits increasing by $2.9 million[231]. - The increase in salaries and employee benefits expense for the nine months ended September 30, 2025, was $2.9 million, attributed to staffing and incentives[231]. Shareholder Information - Book value per share increased to $30.18 from $28.66 at December 31, 2024, while tangible book value per share rose to $25.89 from $24.51[306]. - Common shares outstanding as of September 30, 2025, are 17,043,897, a decrease from 17,720,416 as of December 31, 2024[322].

Core Viewpoint - RBB is seen as an attractive investment opportunity due to a significant improvement in its earnings outlook, with analysts raising their earnings estimates, which is expected to positively impact the stock price [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding RBB's earnings prospects is leading to higher estimates, which historically correlates with stock price movements [2]. - For the current quarter, RBB is expected to earn $0.49 per share, reflecting a 96.0% increase from the previous year [6]. - The Zacks Consensus Estimate for RBB has risen by 11.36% over the last 30 days, with five estimates moving higher and no negative revisions [6]. - For the full year, the earnings estimate is $1.73 per share, indicating a 17.7% increase from the prior year [7]. - The consensus estimate for the current year has increased by 15.29% due to positive revisions [8]. Zacks Rank and Performance - RBB currently holds a Zacks Rank 1 (Strong Buy), which is based on favorable estimate revisions and has a proven track record of outperforming the market [9]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [9]. Recent Stock Performance - RBB shares have increased by 6.1% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10].

Financial Data and Key Metrics Changes - Net income for the third quarter totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, rising by $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [6][8] - Net interest margin expanded by six basis points to 2.98%, marking a 30 basis point increase over the last four quarters [3][7] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, primarily from the in-house mortgage origination business [4] - Third quarter loan originations totaled $188 million at a blended yield of 6.70%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][9] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178 million from the end of the second quarter to $3.4 billion, with growth across all deposit categories [11] - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, indicating appropriate risk coverage [11] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [20][21] - There is an ongoing effort to shift the loan portfolio mix towards commercial and industrial (C&I) loans while maintaining strong growth in residential mortgages [34][36] - The company is considering opportunities for share buybacks and refinancing sub-debt, while also investing in business growth and technology [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, viewing these as positive signs for the future [3] - The competitive landscape for liquidity remains challenging, impacting the ability to reduce funding costs significantly [7][30] - The company anticipates continued loan growth, although Q4 may see some seasonal moderation [34] Other Important Information - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] - The company repurchased 660,000 shares, or 4% of shares outstanding, during the third quarter [11] Q&A Session Summary Question: Asset quality improvement metrics - Management acknowledged progress in asset quality but indicated that more work is needed, particularly in resolving non-accrual loans [18][19] Question: Capital and share repurchase authorization - Approximately $4 million remains in the current share repurchase program, with management open to future buybacks depending on stock price and market conditions [22][23] Question: Deposit beta and interest rates - Management noted that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on upcoming maturing time deposits [28][30] Question: Loan growth and portfolio mix - The pipeline remains healthy, with a focus on residential mortgages and a gradual shift towards C&I loans, although government shutdowns may impact SBA loan funding [35][36] Question: Interest recovery and FHLB advances - No significant interest recovery was noted in Q3, and FHLB advances were replaced with brokered deposits at higher rates [42][43]

Financial Data and Key Metrics Changes - Net income for the third quarter totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, rising by $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [6][8] - Net interest margin expanded by six basis points to 2.98%, marking a 30 basis point increase over the last four quarters [3][7] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, primarily from the in-house mortgage origination business [4] - Third quarter loan originations totaled $188 million at a blended yield of 6.70%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][9] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178 million from the end of the second quarter to $3.4 billion, with growth across all deposit categories [11] - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, indicating appropriate risk coverage [11] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [20][21] - There is an ongoing effort to deepen relationships in existing markets and explore opportunities for sub-debt refinancing next year [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding core earnings growth and lower credit costs, viewing these as positive signs for the future [3] - The company remains vigilant in addressing credit issues and is focused on maintaining loan growth while managing operating costs [20][21] Other Important Information - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] - The company repurchased 660,000 shares, or 4% of shares outstanding, during the third quarter [11] Q&A Session Summary Question: Asset quality improvement and future expectations - Management acknowledged progress in asset quality but indicated that more work is needed, with a focus on resolving significant non-accrual loans [18][20] Question: Capital and share repurchase authorization - The company has about $4 million left in the current share repurchase program and is considering future buyback opportunities [22][23] Question: Deposit beta and interest rates - Management noted that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on upcoming rate cuts [28][30] Question: Loan growth and portfolio mix - The pipeline remains healthy, with a focus on residential mortgage and commercial loans, although seasonality may moderate growth in Q4 [34][35] Question: Interest recovery and FHLB advances - There was no significant interest recovery in Q3, and FHLB advances were replaced with brokered deposits at a higher rate [42][43] Question: Margin expansion and future rate cuts - Management believes they can continue to expand margins despite potential rate cuts, driven by loan growth and origination yields [48][50]

Financial Data and Key Metrics Changes - Third quarter net income totaled $10,100,000 or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest margin increased by six basis points to 2.98% compared to the prior quarter, and has increased by 30 basis points over the last four quarters [4][6] - Net interest income rose for the fifth consecutive quarter, up $1,900,000 to $29,300,000, driven by higher interest income [6][11] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68,000,000 or 8% on an annualized basis, with significant growth from the in-house mortgage origination business [4][6] - Third quarter loan originations totaled $188,000,000 at a blended yield of 6.7%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][8] - Nonperforming loans decreased by $11,300,000 or 20% to $44,500,000, indicating improved asset quality [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178,000,000 to $3,400,000,000, with growth across all deposit categories [11] - The average loan portfolio yield expanded by nine basis points to 6.12% due to strong origination yields and repricing of loans [8] Company Strategy and Development Direction - The company is focused on addressing nonperforming loans while minimizing the impact on earnings and capital [4][10] - There is an ongoing effort to manage operating costs to be below 2% of average assets while maintaining loan growth [7][11] - The company is considering opportunities for share buybacks and refinancing of subordinated debt in the future [21][53] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, viewing these as positive signs for the future [3][6] - The company remains vigilant in addressing remaining credit issues and is focused on improving asset quality [16][18] - Management indicated that competition for liquidity remains stiff, impacting the ability to reduce funding costs significantly [6][28] Other Important Information - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, which management believes appropriately addresses the risk in the loan portfolio [10] - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] Q&A Session Summary Question: What inning do you think you're in regarding credit resolution? - Management acknowledged that while progress has been made, there is still work to do and they are focused on resolving remaining credit issues [16][18] Question: How much is left in the current share repurchase authorization? - Approximately $4,000,000 remains in the current program, and management is considering future buyback opportunities [21][22] Question: What is the expected deposit beta with potential rate cuts? - Management indicated that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on maturing time deposits [25][28] Question: Was there any interest recovery during the third quarter? - Management confirmed that there were no significant anomalies in net interest income related to interest recovery during the quarter [38] Question: What rates were the FHLB advances maturing at? - The FHLB advances matured at a rate of approximately 3.40%, and were replaced with brokered deposits at rates closer to 4% [40][41]

Financial Data and Key Metrics Changes - Third quarter net income totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, up $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [5][6] - Net interest margin expanded by 6 basis points to 2.98%, a 30 basis point increase over the last four quarters [3][6] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, with third quarter loan originations totaling $188 million at a blended yield of 6.70% [4][5] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] - Total deposits increased by $178 million to $3.4 billion, with growth across all deposit categories [11] Market Data and Key Metrics Changes - The spot rate on deposits was 2.97%, which was six basis points below the third quarter's average of 3.03% [6] - The loan portfolio yield expanded by 9 basis points to 6.12%, primarily due to strong origination yields [9] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [18][19] - There is an ongoing effort to deepen relationships in existing markets and explore opportunities for sub-debt refinancing next year [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, indicating a positive outlook for the future [3][5] - The company remains vigilant in managing credit quality and is focused on maintaining strong loan growth despite competitive pressures [18][19] Other Important Information - The company repurchased 660,000 shares or 4% of shares outstanding in the third quarter, with a tangible book value per share increasing to $25.89 [11][12] - Non-interest expenses decreased by $1.8 million to $18.7 million, primarily due to the absence of ERC-related expenses from the previous quarter [8] Q&A Session Summary Question: What inning do you think you are in regarding credit resolution? - Management acknowledged that while progress has been made, there is still work to do, and they are focused on resolving remaining credit issues [16][17] Question: How much is left in the current share repurchase authorization? - Approximately $4 million remains in the current program, and management is considering future buyback opportunities [20] Question: What is the expected deposit beta with potential rate cuts? - Management indicated that deposit beta may have slowed due to fierce competition for liquidity, but they expect to capitalize on upcoming opportunities [26][27] Question: What is the outlook for loan growth and portfolio mix? - The pipeline remains healthy, with a focus on residential mortgages and a gradual shift towards C&I loans, although seasonality may moderate growth in Q4 [36][37] Question: Was there any interest recovery during the third quarter? - There was no significant interest recovery or anomalies in net interest income during the third quarter [42] Question: What rates were the FHLB advances maturing at? - The FHLB advances matured at a rate of 3.40%, and were replaced with brokered deposits at higher rates [44]

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Financial Performance - Net income for Q3 2025 was $10148 thousand[8] - Diluted earnings per share (EPS) reached $059[8] - Net interest margin (NIM) stood at 298%[8] - Return on tangible common equity was 916%[8] - The efficiency ratio was 5736%[8] Balance Sheet & Loan Portfolio - Gross loans held for investment (HFI) totaled $3302577 thousand, representing an annualized growth of 8%[8, 12] - Total deposits amounted to $3366497 thousand, with an annualized increase of 22%[8, 12] - Nonperforming loans (NPLs) decreased by $113 million, a reduction of 20%[8] - The loan to deposit ratio was 981%[8] Capital & Asset Quality - Common Equity Tier 1 (CET1) ratio was 1728%[8] - Tangible common equity (TCE) ratio was 1067%[8] - The company invested $125 million in a common stock buyback program[8]

Core Insights - RBB reported revenue of $32.57 million for Q3 2025, a year-over-year increase of 7.5%, with an EPS of $0.59 compared to $0.39 a year ago, exceeding Zacks Consensus Estimate of $31.67 million by 2.85% and delivering an EPS surprise of 43.9% [1] Financial Performance Metrics - Efficiency Ratio was 57.4%, slightly better than the estimated 57.7% [4] - Net charge-offs to average loans stood at 0.8%, higher than the estimated 0.4% [4] - Non-Performing Assets totaled $54.31 million, slightly below the average estimate of $55.11 million [4] - Average Balance of Total Interest Earning Assets was $3.9 billion, exceeding the estimate of $3.83 billion [4] - Net Interest Margin was reported at 3%, matching the average estimate [4] - Non-Performing Loans were $45.48 million, significantly lower than the estimated $53.85 million [4] - Tier 1 Risk-Based Capital Ratio was 17.9%, above the estimated 17.6% [4] - Total Risk-Based Capital Ratio was 23.6%, slightly above the estimate of 23.2% [4] - Tier 1 Leverage Ratio was 11.5%, below the estimated 11.9% [4] - Total Non-Interest Income was $3.29 million, exceeding the estimate of $3.06 million [4] - Net Interest Income was $29.28 million, higher than the estimated $28.61 million [4] - Gain on Sale of Loans was $0.26 million, below the estimated $0.46 million [4] Stock Performance - RBB shares have returned -12.4% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change, and the stock currently holds a Zacks Rank 3 (Hold) [3]

Core Viewpoint - RBB reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and showing an increase from $0.39 per share a year ago, indicating a strong earnings surprise of +43.90% [1] Financial Performance - RBB's revenues for the quarter ended September 2025 were $32.57 million, surpassing the Zacks Consensus Estimate by 2.85% and up from $30.29 million year-over-year [2] - Over the last four quarters, RBB has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - RBB shares have declined approximately 16.9% since the beginning of the year, contrasting with the S&P 500's gain of 13.3% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.44 for the upcoming quarter and $1.50 for the current fiscal year [7] Industry Context - The Zacks Industry Rank for Banks - West is currently in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]