[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) RBB Bancorp reported strong financial results for Q2 2025, driven by significant net income growth, improved profitability ratios, and robust loan growth, benefiting from a substantial Employee Retention Credit (ERC) income partially offset by associated professional costs, while nonperforming assets decreased and book values per share increased Key Financial Metrics (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Net Income | $9.3 million | $2.3 million | +$7.0 million | | Diluted EPS | $0.52 | $0.13 | +$0.39 | | Return on Average Assets (ROAA) | 0.93% | 0.24% | +0.69 pp | | Net Interest Margin (NIM) | 2.92% | 2.88% | +0.04 pp | | Net Loans HFI Growth (annualized) | $91.6 million | - | 12% | | Nonperforming Assets | $61.0 million | $64.6 million | -$3.6 million (-5.5%) | | Book Value Per Share | $29.25 | $28.77 | +$0.48 | | Tangible Book Value Per Share | $25.11 | $24.63 | +$0.48 | - Net income for Q2 2025 included a pre-tax income of **$5.2 million** from an Employee Retention Credit (ERC), partially offset by **$1.2 million** (pre-tax) in professional and advisory costs related to the ERC[3](index=3&type=chunk)[4](index=4&type=chunk) - The CEO highlighted strong loan growth and stable loan yields as drivers for increasing net interest income and margin expansion, alongside the benefit from the ERC receipt, with the company remaining focused on resolving nonperforming loans[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased quarter-over-quarter, primarily due to higher interest income from loans, despite an increase in interest expense, with the net interest margin expanding, driven by an increase in the yield on interest-earning assets and a decrease in the overall cost of funds, particularly from interest-bearing deposits Key Net Interest Metrics (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Net Interest Income | $27.3 million | $26.2 million | +$1.2 million | | Net Interest Margin (NIM) | 2.92% | 2.88% | +4 bps | | Yield on Average Interest-Earning Assets | 5.79% | 5.76% | +3 bps | | Overall Cost of Funds | 3.14% | 3.15% | -1 bp | | Yield on Average Loans | 6.03% | 6.01% | +2 bps | | Average Cost of Interest-Bearing Deposits | 3.66% | 3.77% | -11 bps | | Average Cost of Total Borrowings | - | - | +75 bps | | Average Loans as % of Avg. Interest-Earning Assets | 85% | 84% | +1 pp | - The increase in interest income was mostly due to a **$2.1 million** increase in interest and fees on loans, while the increase in interest expense was due to a **$433,000** increase in interest on borrowings and a **$265,000** increase in interest on deposits[6](index=6&type=chunk) - The average cost of borrowings increased as **$150 million** in long-term FHLB advances matured in Q1 2025 and were largely replaced and repriced at current market rates[8](index=8&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses significantly decreased quarter-over-quarter, reflecting an increase in general reserves due to net loan growth and a specific reserve for one lending relationship, while net charge-offs increased Provision for Credit Losses (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Provision for Credit Losses | $2.4 million | $6.7 million | -$4.3 million | | Net Charge-offs | $3.3 million | - | - | | Net Charge-offs (annualized % of avg. loans) | 0.42% | 0.35% | +0.07 pp | - The Q2 2025 provision included a **$1.5 million** increase in general reserves due to net loan growth and a **$924,000** increase in a specific reserve for one lending relationship[9](index=9&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income saw a substantial increase, primarily driven by the receipt of Employee Retention Credit (ERC) funds, with the quarter also including higher gains from loan sales and recoveries from a previously charged-off loan Noninterest Income (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Total Noninterest Income | $8.5 million | $2.3 million | +$6.2 million | | ERC Funds (included in other income) | $5.2 million | $0 | +$5.2 million | | Gain on Sale of Loans | $277,000 | - | Higher | | Recoveries on fully-charged off loan | $350,000 | - | - | - The ERC funds relate to qualifying amended payroll tax returns filed for Q1 and Q2 2021 under the Coronavirus Aid, Relief, and Economic Security Act[10](index=10&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense) Noninterest expense increased, mainly due to higher legal and professional expenses largely attributable to ERC advisory costs, and increased salaries and employee benefits, though the efficiency ratio improved significantly due to higher noninterest income Noninterest Expense (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Total Noninterest Expense | $20.5 million | $18.5 million | +$2.0 million | | Legal and Professional Expense | +$1.4 million | - | - | | ERC Advisory Costs (part of legal & professional) | $1.2 million | $0 | +$1.2 million | | Salaries and Employee Benefits | +$437,000 | - | - | | Efficiency Ratio | 57.2% | 65.1% | -7.9 pp | - The increase in compensation includes higher incentives, annual pay increases, and approximately **$330,000** in costs related to executive management transitions, partially offset by lower payroll taxes[12](index=12&type=chunk) [Income Taxes](index=3&type=section&id=Income%20Taxes) The effective tax rate for the second quarter of 2025 remained relatively stable compared to the previous quarter Effective Tax Rate | Metric | Q2 2025 | Q1 2025 | | :---------------- | :------ | :------ | | Effective Tax Rate | 27.8% | 28.2% | [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) [Total Assets](index=3&type=section&id=Total%20Assets) Total assets increased both quarter-over-quarter and year-over-year, indicating overall balance sheet growth Total Assets (Dollars in billions) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------- | :------------ | :------------- | :------------ | | Total Assets | $4.1 billion | $4.0 billion | $3.9 billion | | QoQ Increase | +$80.6 million | - | - | | YoY Increase | +$221.9 million | - | - | [Loan and Securities Portfolio](index=3&type=section&id=Loan%20and%20Securities%20Portfolio) Loans held for investment (HFI) continued to grow significantly, driven by new production across various loan categories, particularly single-family residential and commercial real estate, while the available-for-sale (AFS) securities portfolio also increased and net unrealized losses on AFS securities decreased Loan and Securities Portfolio (Dollars in millions) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Loans HFI | $3.2 billion | $3.1 billion | $3.0 billion | | QoQ Increase (annualized) | +$91.6 million (12%) | - | - | | YoY Increase | +$187.0 million (6.1%) | - | - | | New Loan Production (Q2 2025) | $182.8 million | - | - | | Average Yield on New Production | 6.76% | - | - | | SFR Mortgage Loans (QoQ increase) | +$57.3 million | - | - | | CRE Loans (QoQ increase) | +$28.0 million | - | - | | SBA Loans (QoQ increase) | +$5.3 million | - | - | | C&I Loans (QoQ increase) | +$2.7 million | - | - | | Loan to Deposit Ratio | 101.5% | 100.0% | 100.9% | | AFS Securities | $413.1 million | $378.1 million | - | | Net Unrealized Losses on AFS | $23.1 million | $25.0 million | - | - The increase in AFS securities was primarily due to **$68.0 million** in purchases, offset by **$33.0 million** in maturities and amortization[16](index=16&type=chunk) [Deposits](index=3&type=section&id=Deposits) Total deposits increased, driven by growth in both interest-bearing and noninterest-bearing deposits, with time deposits, particularly those greater than $250,000, seeing notable increases, while interest-bearing non-maturity deposits decreased Deposit Portfolio (Dollars in millions) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Total Deposits | $3.2 billion | $3.1 billion | $3.0 billion | | QoQ Increase (annualized) | +$45.6 million (5.8%) | - | - | | YoY Increase | +$164.6 million (5.4%) | - | - | | Interest-Bearing Deposits (QoQ increase) | +$29.9 million | - | - | | Noninterest-Bearing Deposits (QoQ increase) | +$15.7 million | - | - | | Time Deposits (QoQ increase) | +$59.5 million | - | - | | Interest-Bearing Non-Maturity Deposits (QoQ decrease) | -$29.5 million | - | - | | Wholesale Deposits | $183.8 million | $158.5 million | $120.7 million | | Noninterest-Bearing Deposits as % of Total | 17.1% | 16.8% | 18.0% | [Credit Quality](index=3&type=section&id=Credit%20Quality) [Nonperforming Assets](index=3&type=section&id=Nonperforming%20Assets) Nonperforming assets (NPAs) decreased quarter-over-quarter, primarily due to net charge-offs and payoffs, despite some additions from loans migrating to nonaccrual status Nonperforming Assets (Dollars in millions) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :-------------------------------- | :------------ | :------------- | :----------- | | Nonperforming Assets | $61.0 million | $64.6 million | -$3.6 million (-5.5%) | | Nonperforming Assets as % of Total Assets | 1.49% | 1.61% | -0.12 pp | | Net Charge-offs (contributing to decrease) | $3.3 million | - | - | | Payoffs and Paydowns (contributing to decrease) | $1.7 million | - | - | | Additions from Nonaccrual Migration | $1.4 million | - | - | [Special Mention and Substandard Loans](index=3&type=section&id=Special%20Mention%20and%20Substandard%20Loans) Special mention loans and substandard loans both increased quarter-over-quarter, with the rise in special mention loans due to new additions and balance increases, while substandard loans increased primarily from downgrades Special Mention and Substandard Loans (Dollars in millions) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :-------------------------------- | :------------ | :------------- | :----------- | | Special Mention Loans | $91.3 million | $64.3 million | +$27.0 million | | Special Mention Loans as % of Total Loans | 2.82% | 2.05% | +0.77 pp | | Substandard Loans | $91.0 million | $76.4 million | +$14.6 million | | Substandard Loans as % of Total Loans | 2.81% | 2.43% | +0.38 pp | - The increase in special mention loans was primarily due to **$30.1 million** in new additions and **$1.6 million** in balance increases, partially offset by downgrades and payoffs[19](index=19&type=chunk) - The increase in substandard loans was primarily due to **$20.6 million** in downgrades, partially offset by net charge-offs and payoffs[20](index=20&type=chunk) [Delinquent Loans](index=3&type=section&id=Delinquent%20Loans) Loans 30-89 days past due, excluding nonperforming loans, significantly increased, mainly due to new delinquencies, though some loans returned to current status or migrated to nonaccrual Delinquent Loans (Dollars in millions) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :-------------------------------- | :------------ | :------------- | :----------- | | 30-89 Day Delinquent Loans | $18.0 million | $5.9 million | +$12.1 million | | 30-89 Day Delinquent Loans as % of Total Loans | 0.56% | 0.19% | +0.37 pp | - The increase was mostly due to **$15.5 million** in new delinquent loans, offset by **$2.2 million** returning to current status and **$798,000** migrating to nonaccrual status[21](index=21&type=chunk) [Allowance for Credit Losses](index=4&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses decreased slightly due to net charge-offs exceeding the provision for credit losses, however, the allowance for loan losses as a percentage of nonperforming loans increased, indicating improved coverage Allowance for Credit Losses (Dollars in millions) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :-------------------------------- | :------------ | :------------- | :----------- | | Allowance for Credit Losses | $51.6 million | $52.6 million | -$918,000 | | Allowance for Loan Losses | $51.0 million | $51.9 million | -$918,000 | | Allowance for Loan Losses as % of Loans HFI | 1.58% | 1.65% | -0.07 pp | | Allowance for Loan Losses as % of Nonperforming Loans HFI | 90% | 86% | +4 pp | | Net Charge-offs (Q2 2025) | $3.3 million | - | - | | Provision for Credit Losses (Q2 2025) | $2.4 million | - | - | - The decrease in the allowance for credit losses was due to net charge-offs of **$3.3 million**, offset by a **$2.4 million** provision for credit losses[22](index=22&type=chunk) [Shareholders' Equity & Dividends](index=4&type=section&id=Shareholders'%20Equity%20%26%20Dividends) [Shareholders' Equity](index=4&type=section&id=Shareholders'%20Equity) Total shareholders' equity increased quarter-over-quarter and year-over-year, driven by net income, lower unrealized losses on AFS securities, and equity compensation activity, partially offset by dividends and share repurchases Shareholders' Equity (Dollars in millions) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Total Shareholders' Equity | $517.7 million | $510.3 million | $511.3 million | | QoQ Increase | +$7.3 million | - | - | | YoY Increase | +$6.4 million | - | - | | Net Income (Q2 2025) | $9.3 million | - | - | | Lower Net Unrealized Losses on AFS (Q2 2025) | $1.3 million | - | - | | Equity Compensation Activity (Q2 2025) | $1.1 million | - | - | | Common Stock Cash Dividends Paid (Q2 2025) | $2.9 million | - | - | | Common Stock Repurchases (Q2 2025) | $1.5 million | - | - | | Book Value Per Share | $29.25 | $28.77 | $28.12 | | Tangible Book Value Per Share | $25.11 | $24.63 | $24.06 | [Dividend Announcement](index=4&type=section&id=Dividend%20Announcement) The Board of Directors declared a quarterly cash dividend of $0.16 per common share - A quarterly cash dividend of **$0.16 per common share** was declared, payable on August 12, 2025, to shareholders of record on July 31, 2025[26](index=26&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) [Corporate Overview](index=5&type=section&id=Corporate%20Overview) RBB Bancorp is a Los Angeles-based financial holding company with $4.1 billion in total assets as of June 30, 2025, whose subsidiary, Royal Business Bank, offers a full range of commercial and consumer banking services, primarily serving Asian-centric communities across multiple states with a network of 24 branches and an administrative/lending center - RBB Bancorp is headquartered in Los Angeles, California, with total assets of **$4.1 billion** as of June 30, 2025[27](index=27&type=chunk) - Royal Business Bank provides consumer and business banking services predominantly to Asian-centric communities in California, Nevada, New York, New Jersey, Illinois, and Hawaii[27](index=27&type=chunk) - Bank services include remote deposit, E-banking, mobile banking, various real estate and business loans (CRE, C&I, SBA, SFR), trade finance, depository products, and wealth management services[27](index=27&type=chunk) [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) Management will host a conference call on July 22, 2025, to discuss Q2 2025 financial results, with details provided for live access and replay options via phone and webcast - A conference call will be held on Tuesday, July 22, 2025, at 11:00 a.m. Pacific time/2:00 p.m. Eastern time[28](index=28&type=chunk) - Dial-in information: 1-888-506-0062 or 1-973-528-0011, Participant ID 710803, Conference ID RBBQ225, with a replay available until August 05, 2025[29](index=29&type=chunk) - The call will also be webcast live and available for replay on the Royal Business Bank website under the 'Investors' tab[30](index=30&type=chunk) [Disclosure](index=5&type=section&id=Disclosure) The press release includes non-GAAP financial disclosures for tangible common equity, tangible assets, and adjusted earnings, which management uses to provide supplemental information on operational performance and capital strength - The press release contains non-GAAP financial disclosures for tangible common equity, tangible assets, and adjusted earnings[31](index=31&type=chunk) - These non-GAAP measures are used by the Company to provide meaningful supplemental information regarding operational performance and to enhance investors' understanding[31](index=31&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) This section outlines that the report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially, including economic conditions, regulatory changes, credit quality, interest rate fluctuations, and geopolitical events - The document contains forward-looking statements regarding the Company's business plans, expectations, future financial position, and operating results[32](index=32&type=chunk) - These statements are subject to risks and uncertainties, including business and economic conditions, credit risks, regulatory supervision, interest rate fluctuations, real estate market conditions, and geopolitical events[32](index=32&type=chunk) - The Company disclaims any obligation to update forward-looking statements, except as required by law[32](index=32&type=chunk) [Financial Statements & Supplementary Data](index=7&type=section&id=Financial%20Statements%20%26%20Supplementary%20Data) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of the Company's financial position, detailing assets, liabilities, and shareholders' equity at various quarter-end dates, with key trends including growth in total assets and loans held for investment, alongside an increase in total deposits (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | **Assets:** | | | | | Total assets | $4,090,040 | $4,009,400 | $3,868,186 | | Net loans held for investment | $3,183,681 | $3,091,131 | $3,005,971 | | Investment securities available for sale | $413,142 | $378,188 | $325,582 | | **Liabilities:** | | | | | Total deposits | $3,188,231 | $3,142,628 | $3,023,605 | | FHLB advances | $180,000 | $160,000 | $150,000 | | Total liabilities | $3,572,387 | $3,499,094 | $3,356,895 | | **Shareholders' Equity:** | | | | | Total shareholders' equity | $517,653 | $510,306 | $511,291 | [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income present the Company's revenues, expenses, and net income for the three and six months ended June 30, 2025, and 2024, with notable changes including a significant increase in net income for Q2 2025 driven by higher noninterest income and improved net interest income (In thousands, except share and per share data) | (In thousands, except share and per share data) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total interest and dividend income | $54,205 | $52,336 | $52,886 | $106,541 | $107,681 | | Total interest expense | $26,871 | $26,173 | $28,921 | $53,044 | $58,839 | | Net interest income before provision for credit losses | $27,334 | $26,163 | $23,965 | $53,497 | $48,842 | | Provision for credit losses | $2,387 | $6,746 | $557 | $9,133 | $557 | | Total noninterest income | $8,478 | $2,295 | $3,488 | $10,773 | $6,860 | | Total noninterest expense | $20,493 | $18,522 | $17,124 | $39,015 | $34,093 | | Income before income taxes | $12,932 | $3,190 | $9,772 | $16,122 | $21,052 | | Income tax expense | $3,599 | $900 | $2,527 | $4,499 | $5,771 | | Net income | $9,333 | $2,290 | $7,245 | $11,623 | $15,281 | | Diluted EPS | $0.52 | $0.13 | $0.39 | $0.65 | $0.82 | | Cash dividends declared per common share | $0.16 | $0.16 | $0.16 | $0.32 | $0.32 | [Average Balance Sheet and Net Interest Income](index=9&type=section&id=Average%20Balance%20Sheet%20and%20Net%20Interest%20Income) This section provides detailed average balance sheet data and net interest income calculations for the three and six months ended June 30, 2025, and 2024, highlighting trends in average interest-earning assets, interest-bearing liabilities, and their respective yields and costs, which contribute to the net interest margin (Tax-equivalent basis, dollars in thousands) | (Tax-equivalent basis, dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------------------------- | :------ | :------ | :------ | | Average Interest-Earning Assets | $3,754,850 | $3,683,827 | $3,611,466 | | Yield on Average Interest-Earning Assets | 5.79% | 5.76% | 5.89% | | Average Total Loans | $3,171,570 | $3,079,224 | $3,017,050 | | Yield on Average Loans | 6.03% | 6.01% | 6.04% | | Average Interest-Bearing Liabilities | $2,903,797 | $2,845,777 | $2,758,760 | | Cost of Average Interest-Bearing Liabilities | 3.71% | 3.73% | 4.22% | | Net Interest Income | $27,357 | $26,189 | $23,988 | | Net Interest Margin | 2.92% | 2.88% | 2.67% | | Total Cost of Deposits | 3.05% | 3.13% | 3.59% | | Total Cost of Funds | 3.14% | 3.15% | 3.54% | (Tax-equivalent basis, dollars in thousands) | (Tax-equivalent basis, dollars in thousands) | 6M 2025 | 6M 2024 | | :----------------------------------------- | :------ | :------ | | Average Interest-Earning Assets | $3,719,535 | $3,667,545 | | Yield on Average Interest-Earning Assets | 5.78% | 5.91% | | Average Total Loans | $3,125,652 | $3,017,737 | | Yield on Average Loans | 6.02% | 6.06% | | Average Interest-Bearing Liabilities | $2,874,948 | $2,815,898 | | Cost of Average Interest-Bearing Liabilities | 3.72% | 4.20% | | Net Interest Income | $53,547 | $48,891 | | Net Interest Margin | 2.90% | 2.68% | | Total Cost of Deposits | 3.09% | 3.59% | | Total Cost of Funds | 3.15% | 3.54% | [Selected Financial Highlights - Performance Ratios](index=12&type=section&id=Selected%20Financial%20Highlights%20-%20Performance%20Ratios) This section provides key performance ratios, illustrating the Company's profitability, efficiency, and asset/liability management, with significant improvements seen in return on average assets and equity, and the efficiency ratio, primarily driven by the strong Q2 2025 results Performance Ratios | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Book value per share | $29.25 | $28.77 | $28.12 | $29.25 | $28.12 | | Tangible book value per share (Non-GAAP) | $25.11 | $24.63 | $24.06 | $25.11 | $24.06 | | Return on average assets, annualized | 0.93% | 0.24% | 0.76% | 0.59% | 0.79% | | Return on average shareholders' equity, annualized | 7.29% | 1.81% | 5.69% | 4.57% | 6.00% | | Return on average tangible common equity, annualized (Non-GAAP) | 8.50% | 2.12% | 6.65% | 5.33% | 7.01% | | Net interest margin | 2.92% | 2.88% | 2.67% | 2.90% | 2.68% | | Efficiency ratio | 57.22% | 65.09% | 62.38% | 60.70% | 61.21% | | Common stock dividend payout ratio | 30.19% | 123.08% | 41.03% | 48.48% | 38.55% | [Selected Financial Highlights - Credit Quality & Capital Ratios](index=13&type=section&id=Selected%20Financial%20Highlights%20-%20Credit%20Quality%20%26%20Capital%20Ratios) This section details credit quality metrics, showing an increase in special mention and substandard loans but a decrease in nonperforming assets, while capital ratios remain strong, indicating robust financial health Credit Quality & Capital Ratios (Dollars in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------------------- | :------------ | :------------- | :------------ | | Special mention loans | $91,317 | $64,279 | $19,520 | | Special mention loans to total loans HFI | 2.82% | 2.05% | 0.64% | | Substandard loans | $91,019 | $76,372 | $63,076 | | Substandard loans to total loans HFI | 2.81% | 2.43% | 2.07% | | Loans 30-89 days past due, excluding nonperforming loans | $18,003 | $5,927 | $11,270 | | Nonperforming assets | $60,987 | $64,550 | $54,589 | | Nonperforming assets to total assets | 1.49% | 1.61% | 1.41% | | Allowance for loan losses to total loans HFI | 1.58% | 1.65% | 1.37% | | Allowance for loan losses to nonperforming loans HFI | 89.79% | 86.01% | 76.46% | | Net charge-offs to average loans | 0.42% | 0.35% | 0.07% | | Tangible common equity to tangible assets (Non-GAAP) | 11.07% | 11.10% | 11.53% | | Tier 1 leverage ratio | 12.04% | 12.07% | 12.48% | | Total capital to risk-weighted assets | 24.00% | 24.42% | 25.67% | - June 30, 2025 capital ratios are preliminary[48](index=48&type=chunk) [Selected Financial Highlights - Loan & Deposit Portfolio Detail](index=14&type=section&id=Selected%20Financial%20Highlights%20-%20Loan%20%26%20Deposit%20Portfolio%20Detail) This section provides a detailed breakdown of the loan and deposit portfolios, highlighting the composition and changes over time, with single-family residential mortgages and commercial real estate loans constituting the largest portions of the loan portfolio, while time deposits are the largest component of deposits Loan Portfolio Detail (dollars in thousands) | Loan Portfolio Detail (dollars in thousands) | June 30, 2025 | % | March 31, 2025 | % | June 30, 2024 | % | | :------------------------------------------- | :------------ | :- | :------------- | :- | :------------ | :- | | Commercial and industrial | $138,263 | 4.3% | $135,538 | 4.3% | $126,649 | 4.2% | | SBA | $55,984 | 1.7% | $50,651 | 1.6% | $50,323 | 1.7% | | Construction and land development | $157,970 | 4.9% | $158,883 | 5.1% | $202,459 | 6.6% | | Commercial real estate | $1,273,442 | 39.4% | $1,245,402 | 39.6% | $1,190,207 | 39.1% | | Single-family residential mortgages | $1,603,114 | 49.6% | $1,545,822 | 49.2% | $1,467,802 | 48.2% | | Total loans | $3,234,695 | 100.0% | $3,143,063 | 100.0% | $3,047,712 | 100.0% | Deposit Portfolio Detail (dollars in thousands) | Deposit Portfolio Detail (dollars in thousands) | June 30, 2025 | % | March 31, 2025 | % | June 30, 2024 | % | | :---------------------------------------------- | :------------ | :- | :------------- | :- | :------------ | :- | | Noninterest-bearing demand | $543,885 | 17.1% | $528,205 | 16.8% | $542,971 | 18.0% | | Savings, NOW and money market accounts | $691,679 | 21.7% | $721,216 | 22.9% | $647,770 | 21.4% | | Time deposits, $250,000 and under | $848,379 | 26.6% | $863,962 | 27.5% | $921,712 | 30.5% | | Time deposits, greater than $250,000 | $920,481 | 28.8% | $870,708 | 27.8% | $790,478 | 26.1% | | Wholesale deposits | $183,807 | 5.8% | $158,537 | 5.0% | $120,674 | 4.0% | | Total deposits | $3,188,231 | 100.0% | $3,142,628 | 100.0% | $3,023,605 | 100.0% | [Non-GAAP Reconciliations](index=15&type=section&id=Non-GAAP%20Reconciliations) [Tangible Book Value Reconciliations](index=15&type=section&id=Tangible%20Book%20Value%20Reconciliations) This section provides a reconciliation of tangible book value to GAAP shareholders' equity, demonstrating how goodwill and core deposit intangibles are adjusted, with management using this non-GAAP measure to assess capital strength and business performance (Dollars in thousands, except share and per share data) | (Dollars in thousands, except share and per share data) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------------------------ | :------------ | :------------- | :------------ | | Total shareholders' equity (GAAP) | $517,653 | $510,306 | $511,291 | | Goodwill adjustment | ($71,498) | ($71,498) | ($71,498) | | Core deposit intangible adjustment | ($1,667) | ($1,839) | ($2,394) | | Tangible common equity | $444,488 | $436,969 | $437,399 | | Total assets (GAAP) | $4,090,040 | $4,009,400 | $3,868,186 | | Tangible assets | $4,016,875 | $3,936,063 | $3,794,294 | | Tangible common equity to tangible assets ratio | 11.07% | 11.10% | 11.53% | | Tangible book value per share | $25.11 | $24.63 | $24.06 | - Tangible book value per share is a non-GAAP disclosure used by management to assess the Company's capital strength and business performance, providing additional insight for investors[55](index=55&type=chunk) [Return on Average Tangible Common Equity](index=15&type=section&id=Return%20on%20Average%20Tangible%20Common%20Equity) This section reconciles Return on Average Tangible Common Equity (ROATCE) to its most comparable GAAP measure, Return on Average Common Equity, with ROATCE being a non-GAAP measure used by management and regulators to evaluate capital adequacy and performance, excluding goodwill and other intangible assets (Dollars in thousands) | (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net income available to common shareholders | $9,333 | $2,290 | $7,245 | $11,623 | $15,281 | | Average shareholders' equity | $513,691 | $512,262 | $512,185 | $512,981 | $512,486 | | Adjusted average tangible common equity | $440,413 | $438,813 | $438,162 | $439,618 | $438,363 | | Return on average common equity, annualized | 7.29% | 1.81% | 5.69% | 4.57% | 6.00% | | Return on average tangible common equity, annualized | 8.50% | 2.12% | 6.65% | 5.33% | 7.01% | - ROATCE is a non-GAAP financial measure that excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking regulators when assessing capital adequacy[57](index=57&type=chunk)

Core Viewpoint - RBB reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, marking a 44.44% earnings surprise compared to the previous year's earnings of $0.39 per share [1] Group 1: Earnings Performance - RBB's quarterly revenue reached $35.81 million, surpassing the Zacks Consensus Estimate by 21.38%, and showing an increase from $27.45 million year-over-year [2] - Over the last four quarters, RBB has exceeded consensus EPS estimates two times and revenue estimates three times [2] Group 2: Stock Performance and Outlook - RBB shares have declined approximately 10.9% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.39 for the upcoming quarter and $1.30 for the current fiscal year [4][7] Group 3: Industry Context - The Banks - West industry, to which RBB belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - The company reported net income of $9.3 million, or $0.52 diluted earnings per share, for the quarter ended June 30, 2025, a significant increase from $2.3 million, or $0.13 diluted earnings per share, for the quarter ended March 31, 2025 [3][9] - Net interest income was $27.3 million for the second quarter of 2025, up from $26.2 million in the first quarter, driven by a $1.9 million increase in interest income [5][9] - Noninterest income for the second quarter of 2025 was $8.5 million, an increase of $6.2 million from $2.3 million in the first quarter, largely due to a $5.2 million Employee Retention Credit [11][12] Loan and Asset Growth - Loans held for investment totaled $3.2 billion as of June 30, 2025, reflecting a growth of $91.6 million, or 12% annualized, compared to March 31, 2025 [16][9] - Nonperforming assets decreased by $3.6 million, or 5.5%, to $61.0 million at June 30, 2025, down from $64.6 million at March 31, 2025 [20][9] - Total deposits increased to $3.2 billion as of June 30, 2025, a rise of $45.6 million, or 5.8% annualized, compared to March 31, 2025 [18][9] Credit Quality and Provisions - The provision for credit losses was $2.4 million for the second quarter of 2025, down from $6.7 million in the first quarter, reflecting an increase in general reserves due to net loan growth [8][9] - Nonperforming loans represented 1.49% of total assets at June 30, 2025, a decrease from 1.61% at March 31, 2025 [20][9] - The allowance for loan losses as a percentage of loans held for investment decreased to 1.58% at June 30, 2025, compared to 1.65% at March 31, 2025 [24][9] Shareholder Equity and Dividends - Total shareholders' equity was $517.7 million at June 30, 2025, an increase of $7.3 million compared to March 31, 2025 [26][9] - The company declared a quarterly cash dividend of $0.16 per common share, payable on August 12, 2025 [28]

Core Points - RBB Bancorp will release its financial results for the second quarter ended June 30, 2025, after market close on July 21, 2025 [1] - A conference call to discuss the financial results will be held on July 22, 2025, at 11:00 a.m. Pacific Time [2] - The company had total assets of $4.0 billion as of March 31, 2025 [4] Company Overview - RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California [4] - The company's subsidiary, Royal Business Bank, provides a range of banking services primarily to Asian-centric communities across various locations in California, Nevada, New York, New Jersey, Illinois, and Hawaii [4] - The bank operates multiple branches, including nine in Los Angeles County, two in Ventura County, and others in various states [4]

Core Viewpoint - RBB Bancorp has authorized a stock repurchase plan for up to $18 million of its outstanding common stock, effective through June 30, 2026, indicating a commitment to returning value to shareholders [1][2]. Company Overview - RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California, with total assets of $4.0 billion as of March 31, 2025 [3]. - The company's subsidiary, Royal Business Bank, operates 24 full-service branches across six states, primarily serving Asian-centric communities [3]. - The bank offers a variety of services including consumer and business banking, commercial loans, and wealth management [3]. Stock Repurchase Plan Details - The repurchase plan allows for shares to be bought in open market or private transactions, and can be suspended or modified based on various factors such as market conditions and liquidity [2]. - The plan does not obligate the company to repurchase a specific number of shares, providing flexibility in execution [2].

Financial Performance - For the quarter ended March 31, 2025, net income was $2.3 million, or $0.13 diluted earnings per share, down from $4.3 million, or $0.25 diluted earnings per share in the previous quarter and $8.0 million, or $0.43 diluted earnings per share in the same quarter last year [173]. - Net income for Q1 2025 was $2.290 million, a decrease from $4.385 million in Q4 2024, with earnings per share dropping to $0.13 from $0.25 [181]. - The return on average assets (annualized) decreased to 0.24% in Q1 2025 from 0.44% in Q4 2024, reflecting a decline in profitability [181]. - The efficiency ratio increased to 65.09% in Q1 2025, compared to 61.48% in Q4 2024, indicating a rise in noninterest expenses relative to income [181]. - The efficiency ratio increased to 65.1% in Q1 2025 from 61.5% in Q4 2024, attributed to higher noninterest expenses and lower noninterest income [210]. - The return on average tangible common equity (ROATCE) was 2.12% for the three months ended March 31, 2025, down from 3.98% for the same period in 2024 [308]. Asset and Liability Management - Total assets increased by $16.9 million to $4.0 billion as of March 31, 2025, with total deposits rising by $58.8 million to $3.1 billion [174]. - Total assets as of March 31, 2025, were $4.0 billion, reflecting a $16.9 million increase from December 31, 2024, primarily due to an $89.8 million rise in gross loans HFI [216]. - Total liabilities increased by $14.5 million to $3.5 billion, mainly due to a $58.8 million rise in deposits, offset by a $40.0 million decrease in FHLB advances [274]. - Noninterest-bearing liabilities totaled $586.3 million, showing a decrease from $596.9 million in the previous quarter [1]. - The company maintained a wholesale funding ratio of 9.8% at March 31, 2025, down from 10.7% at December 31, 2024 [292]. Loan Portfolio - Gross loans held for investment (HFI) increased by $89.8 million, or 12% annualized, to $3.1 billion during the first quarter of 2025 [174]. - Loans held for investment (HFI) increased by $89.8 million, or 2.9%, to $3.1 billion as of March 31, 2025, compared to $3.0 billion at December 31, 2024 [231]. - The total loan portfolio as of March 31, 2025, included $1.5 billion in SFR mortgages, representing 49.2% of total loans, up from 48.9% at December 31, 2024 [232]. - Single-family residential (SFR) mortgage loans HFI increased by $51.8 million, while commercial real estate (CRE) loans rose by $44.0 million [231]. - The commercial and industrial (C&I) loans increased by $6.0 million, while construction and land development (C&D) loans decreased by $14.4 million [231]. Credit Quality - The provision for credit losses totaled $6.7 million for the quarter ended March 31, 2025, compared to $6.0 million in the previous quarter and zero in the same quarter last year [173]. - Nonperforming assets decreased by $16.5 million to $64.6 million, representing 1.61% of total assets as of March 31, 2025, down from 2.03% at December 31, 2024 [177]. - The allowance for loan losses increased to $51.9 million as of March 31, 2025, compared to $47.7 million at December 31, 2024 [232]. - Net charge-offs for Q1 2025 were $2.6 million, with an annualized net charge-off rate of 0.35% of average loans, up from 0.26% in Q4 2024 [176]. - The ALL as a percentage of nonperforming loans HFI increased to 86% at March 31, 2025, from 68% at December 31, 2024 [258]. Interest Income and Expense - Net interest income for Q1 2025 was $26.163 million, compared to $25.977 million in Q4 2024, reflecting a positive trend in interest income despite a decrease in interest income from $54.555 million in Q4 2024 [181]. - Interest expense decreased by $2.4 million, while interest income decreased by $2.2 million, primarily due to fewer days in the quarter and lower average excess liquidity [193]. - The average cost of interest-bearing deposits decreased by 29 basis points, contributing to a $1.5 million reduction in interest expense [193]. - The net interest margin improved to 2.88% in Q1 2025 compared to 2.76% in Q4 2024 [193]. - The yield on total loans was 6.01% in Q1 2025, down from 6.07% in Q1 2024, reflecting lower market interest rates [197]. Investment Securities - Available for sale (AFS) investment securities totaled $378.2 million, with a pre-tax net unrealized loss of $25.0 million as of March 31, 2025 [174]. - The total securities portfolio decreased from $425.4 million at December 31, 2024, to $383.4 million at March 31, 2025 [221]. - The total unrealized losses on available for sale securities were $25,930 thousand, primarily due to changes in interest rates [229]. - The company holds all investment securities in an unrealized loss position with investment grade credit ratings as of March 31, 2025 [230]. - The company has the ability and intention to hold securities until their fair values recover to cost or maturity [228]. Shareholders' Equity - Total shareholders' equity rose to $510.3 million, with a book value per share of $28.77, up from $28.66 at the end of 2024 [179]. - Shareholders' equity increased by $2.4 million, or 0.48%, to $510.3 million as of March 31, 2025, driven by net income of $2.3 million and lower unrealized losses on AFS securities [290]. - The tangible common equity to tangible assets ratio was 11.10% as of March 31, 2025, compared to 11.08% a year earlier [308]. - The average balance of shareholders' equity was $512,262 thousand for the three months ended March 31, 2025 [308]. Tax and Regulatory Compliance - The effective tax rate for Q1 2025 was 28.2%, up from 13.3% in Q4 2024, attributed to lower tax credits and higher estimated pre-tax net income [212]. - As of March 31, 2025, the company was in compliance with all covenants under its long-term debt agreements and subordinated debt [285]. - The consolidated Tier 1 Leverage Ratio was 12.07%, exceeding the regulatory minimum of 4.00% [299]. - The Common Equity Tier 1 Risk-Based Capital Ratio for the consolidated entity was 17.87%, well above the required 4.50% [299].

Financial Data and Key Metrics Changes - First quarter net income declined to $2.3 million or $0.13 per share, primarily due to strategic actions taken to address non-performing assets [3] - Non-performing assets were reduced by 20% and net exposure to non-performing loans decreased by 32% to $51 million [3] - Net interest income before provisions increased for the third consecutive quarter to $26.2 million [8] - Net interest margin increased by 12 basis points to 2.88% due to a decline in the cost of interest-bearing deposits [6][10] Business Line Data and Key Metrics Changes - Loans held for investment grew by $90 million or 12% on an annualized basis, driven by growth in commercial, SBA, and SFR balances [5] - Total first quarter loan originations amounted to $201 million at a blended yield of 6.77% [6] - Non-interest income declined by $4.34 million to $2.3 million due to lower gains on the sale of loans [10] Market Data and Key Metrics Changes - Total deposits increased at an 8% annualized rate to $3.14 billion, with growth in money market accounts and CDs offsetting a decline in non-interest bearing accounts [13] - The loan portfolio yield remained stable at 6.03% [12] Company Strategy and Development Direction - The company is focusing on resolving non-performing loans quickly while minimizing the impact on earnings and capital [3] - There is an ongoing effort to reduce reliance on wholesale funding, with a successful CD campaign in the first quarter [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving remaining non-performing assets and expects to report additional progress in upcoming quarters [4] - The company anticipates continued loan growth, albeit at a more moderate pace than the first quarter [6] - Management believes that by the second half of 2025, there could be a target for reducing non-performing loans to a normal baseline [54] Other Important Information - The company’s tangible book value per share increased to $24.63 [13] - Capital ratios remain strong, with all capital ratios above regulatory well-capitalized levels [14] Q&A Session Summary Question: Thoughts on potential share repurchase - Management recognizes that a buyback is one of the best uses of excess capital and is working to put a buyback in place [19] Question: Dynamics within the margin and FHLB advances - The FHLB advances are fully priced into the March net interest margin, and the net interest margin is slightly below the quarter's average [21] Question: Margin drag from non-accrual loans - There is a drag on net interest margin from non-accrual loans, with $20 million potentially returning to accrual status [24] Question: Appetite for more problem loan sales - Management is open to sales but believes they are well reserved for future write-offs [29] Question: Exposure to tariff impacts - Management has reached out to top customers and does not observe any potential financial impact from tariffs at this time [34] Question: Loan growth expectations and deposit trends - Management expects to fund loan growth organically and noted some migration into higher-yielding products [46] Question: Non-interest expenses outlook - Management estimates operating expenses to be around $17.5 million to $18 million, with some moderation expected [66]

Financial Data and Key Metrics Changes - First quarter net income declined to $2,300,000 or $0.13 per share, primarily due to strategic actions taken to address non-performing assets [3] - Non-performing assets were reduced by 20% and net exposure to non-performing loans decreased by 32% to $51,000,000 [3] - Net interest income before provisions increased for the third consecutive quarter to $26,200,000 [9] - Net interest margin increased by 12 basis points to 2.88% due to a decline in the cost of interest-bearing deposits [7][9] Business Line Data and Key Metrics Changes - Loans held for investment grew by $90,000,000 or 12% on an annualized basis, driven by growth in commercial, SBA, and SFR balances [5] - Total first quarter loan originations amounted to $201,000,000 at a blended yield of 6.77% [6][7] - Non-interest income declined by $4,340,000 to $2,300,000 due to lower gains on the sale of loans [10] Market Data and Key Metrics Changes - Total deposits increased at an 8% annualized rate to $3,140,000,000, with growth in money market accounts and CDs offsetting a decline in non-interest bearing accounts [14] - The loan portfolio yield remained stable at 6.03% [11] Company Strategy and Development Direction - The company is focusing on resolving non-performing loans quickly while minimizing the impact on earnings and capital [3] - There is an ongoing effort to implement a share repurchase program as capital ratios are strong and the current share price is attractive [20] - The company aims to continue loan growth, albeit at a more moderate pace than the first quarter [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving remaining non-performing assets and expects to report additional progress in upcoming quarters [4] - The company anticipates that lower future provisions and redeployment of capital will lead to increasing net interest income after provisions [9] - Management acknowledged the uncertainty surrounding the tariff situation but reported no immediate financial impact from their top customers [36] Other Important Information - The company’s tangible book value per share increased to $24.63 [14] - Capital ratios remain strong, with all ratios above regulatory well-capitalized levels [15] Q&A Session Summary Question: Thoughts on potential share repurchase - Management recognizes that a buyback is one of the best uses of excess capital and is working to implement it [20] Question: Dynamics within the margin and FHLB advances - The FHLB advances are fully priced into the March net interest margin, and the net interest margin is slightly below the quarter's average [22] Question: Margin drag from non-accrual loans - There is a drag on net interest margin from non-accrual loans, with potential recoveries being considered [25] Question: Loan growth expectations and deposit trends - Management expects to fund loan growth organically and noted some migration from non-interest bearing deposits to higher-yielding products [49] Question: Time frame for resolving non-performing loans - Management believes that by the second half of 2025, there could be significant progress in reducing non-performing loans [56] Question: Composition of the loan growth pipeline - The pipeline is primarily composed of CRE loans and single-family residences, with C&I loans expected to contribute more as new hires come online [63]

Financial Data and Key Metrics Changes - First quarter net income declined to $2,300,000 or $0.13 per share, primarily due to strategic actions taken to address non-performing assets [3] - Non-performing assets were reduced by 20% and net exposure to non-performing loans decreased by 32% to $51,000,000 [3][4] - Net interest income before provisions increased for the third consecutive quarter to $26,200,000 [9] - Net interest margin increased by 12 basis points to 2.88%, driven by a decline in the cost of interest-bearing deposits [7][9] Business Line Data and Key Metrics Changes - Loans held for investment grew by $90,000,000 or 12% on an annualized basis, with strong results from commercial, SBA, and SFR balances [5][6] - Total first quarter loan originations reached $201,000,000 at a blended yield of 6.77% [6] - Non-interest income declined by $4,340,000 to $2,300,000 due to lower gains on the sale of loans [10] Market Data and Key Metrics Changes - Total deposits increased at an 8% annualized rate to $3,140,000,000, with growth in money market accounts and CDs [13] - The ratio of allowance for loan losses to total loans held for investments increased by nine basis points to 1.65% [13] Company Strategy and Development Direction - The company is focusing on resolving non-performing loans quickly while minimizing the impact on earnings and capital [3] - There is an ongoing effort to redeploy capital previously tied up in non-performing assets to increase net interest income in the coming quarters [9] - The company aims to be the bank of choice for Asian Americans nationwide, with a commitment to addressing challenges faced in recent years [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving remaining non-performing assets and expects to report additional progress in upcoming quarters [4] - The company anticipates continued loan growth, albeit at a more moderate pace than the first quarter [7] - Management acknowledged the uncertainty surrounding tariffs but reported no immediate financial impact from current trade dynamics [34][56] Other Important Information - The company has strong capital ratios, with all capital ratios above regulatory well-capitalized levels [14] - The tangible book value per share increased to $24.63 [13] Q&A Session Summary Question: Thoughts on potential share repurchase - Management recognizes that a buyback is one of the best uses of excess capital and is working to implement it [19] Question: Dynamics within the margin and FHLB roll - The FHLB advances are fully priced into the March net interest margin, and the net interest margin is slightly below the quarter's average [21] Question: Margin drag from non-accruals - There is a drag on net interest margin from non-accrual loans, with potential recoveries being considered [24] Question: Loan growth expectations and deposit trends - Management expects to fund loan growth organically and noted a seasonal decline in non-interest bearing deposits [46] Question: Composition of the loan growth pipeline - The pipeline is primarily composed of CRE loans and single-family residences, with C&I loans expected to contribute more in the future [61]

Financial Performance - Diluted Earnings Per Share (EPS) decreased to $0.13 in 1Q25 [6], compared to $0.39 in 2Q24 [6] - Net income decreased to $2290 thousand in 1Q25 [6], compared to $7245 thousand in 2Q24 [6] - The efficiency ratio increased to 6509% in 1Q25 [6], compared to 6238% in 2Q24 [6] - Return on Average Assets decreased to 024% in 1Q25 [6], compared to 076% in 2Q24 [6] Balance Sheet & Capital - Gross Loans Held for Investment (HFI) increased to $3143063 thousand in 1Q25 [6], compared to $3047712 thousand in 2Q24 [6] - Total Deposits increased to $3142628 thousand in 1Q25 [6], compared to $3023605 thousand in 2Q24 [6] - Common Equity Tier 1 (CET1) Ratio decreased to 1787% in 1Q25 [6], compared to 1889% in 2Q24 [6] Asset Quality - Non-Performing Loans (NPLs) decreased to $60380 thousand in 1Q25 [6], compared to $81038 thousand in 4Q24 [6] - NPLs/Total Loans decreased to 192% in 1Q25 [6], compared to 264% in 4Q24 [6] - NPAs decreased by $165 million, or 20% [7, 31]