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]

RBB (RBB) reported $28.46 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 0.7%. EPS of $0.13 for the same period compares to $0.43 a year ago.The reported revenue represents a surprise of -1.11% over the Zacks Consensus Estimate of $28.78 million. With the consensus EPS estimate being $0.38, the EPS surprise was -65.79%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...

Financial Performance - The Company reported net income of $2.3 million, or $0.13 diluted earnings per share, for Q1 2025, a decline from $4.4 million, or $0.25 per share, in Q4 2024[4] - Noninterest income for Q1 2025 was $2.3 million, a decrease of $434,000 from Q4 2024, primarily due to lower net gain on sale of loans[11] - Noninterest expense increased to $18.5 million, up $873,000 from Q4 2024, mainly due to higher salaries and employee benefits[12] - 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[13] - Basic net income per share was $0.13 for the quarter, down from $0.25 in the previous quarter, a decline of 48%[36] - The return on average assets for Q1 2025 was 0.24%, down from 0.44% in Q4 2024 and 0.81% in Q1 2024[41] - Return on average tangible common equity (ROATCE) for the three months ended March 31, 2025, was 2.12%, down from 3.98% for the same period in 2024[54] Loan and Deposit Growth - Net loans held for investment grew by $89.8 million, or 12% annualized, compared to Q4 2024, with a total of $3.1 billion as of March 31, 2025[15] - Total deposits increased by $58.8 million, or 7.7% annualized, to $3.1 billion as of March 31, 2025, with interest-bearing deposits rising by $93.6 million[17] - Total loans as of March 31, 2025, increased to $3,143,063 thousand, up from $3,053,230 thousand as of December 31, 2024, representing a growth of 2.9%[49] - Total deposits reached $3,142,628 thousand as of March 31, 2025, an increase from $3,083,789 thousand as of December 31, 2024, reflecting a growth of 1.9%[51] Asset Quality - Nonperforming assets decreased by $16.5 million, or 20.3%, to $64.6 million, representing 1.61% of total assets at March 31, 2025[18] - The provision for credit losses was $6.7 million for Q1 2025, compared to $6.0 million in Q4 2024, driven by an increase in specific reserves[10] - The allowance for credit losses increased to $52.6 million, with the allowance for loan losses as a percentage of loans held for investment rising to 1.65%[22] - Nonperforming loans held for investment (HFI) were $60,380 thousand, with a ratio of 1.92% to total loans HFI[45] - The allowance for loan losses was $51,932 thousand, equating to 1.65% of total loans HFI[45] Capital and Equity - As of March 31, 2025, total shareholders' equity was $510.3 million, reflecting a $2.4 million increase from December 31, 2024, but a $3.7 million decrease from March 31, 2024[24] - The increase in shareholders' equity for Q1 2025 was attributed to lower net unrealized losses on available for sale securities of $3.0 million and net income of $2.3 million, offset by cash dividends paid of $2.9 million[24] - For the last twelve months, shareholders' equity decreased due to common stock repurchases of $19.2 million and dividends paid of $11.6 million, despite net income of $20.9 million[24] - Book value per share increased to $28.77 at March 31, 2025, up from $28.66 at December 31, 2024, and $27.67 at March 31, 2024[24] - Tangible common equity as of March 31, 2025, was $436,969 thousand, slightly up from $434,368 thousand as of December 31, 2024[53] - The common equity to assets ratio remained stable at 12.73% as of March 31, 2025, compared to 12.72% as of December 31, 2024[53] Interest and Margin - The net interest margin expanded to 2.88%, up from 2.76% in Q4 2024, due to a decrease in the overall cost of funds[8] - Net interest income before provision for credit losses was $26,163 thousand for the three months ended March 31, 2025, up from $25,977 thousand in the previous quarter, an increase of 0.72%[36] - The cost of average total deposits for Q1 2025 was 3.13%, down from 3.35% in Q4 2024[41] - Interest on loans was $45,621 thousand for the quarter, slightly down from $46,374 thousand in the previous quarter, a decrease of 1.62%[36] Operational Overview - RBB Bancorp operates primarily in Asian-centric communities across multiple states, including California, Nevada, New York, New Jersey, and Illinois[27] - The company provides a range of banking services, including commercial and industrial loans, SBA loans, and wealth management services[27] - Management will hold a conference call on April 29, 2025, to discuss Q1 2025 financial results[28] - The company utilizes non-GAAP financial measures to enhance understanding of its operational performance[31] - Forward-looking statements are subject to various risks and uncertainties that could materially affect actual results[32]

Core Viewpoint - RBB reported quarterly earnings of $0.13 per share, significantly missing the Zacks Consensus Estimate of $0.38 per share, marking a 65.79% earnings surprise to the downside [1]. Financial Performance - The company posted revenues of $28.46 million for the quarter ended March 2025, which was 1.11% below the Zacks Consensus Estimate and a slight increase from $28.25 million a year ago [2]. - Over the last four quarters, RBB has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2]. Stock Performance - RBB shares have declined approximately 22.8% since the beginning of the year, contrasting with the S&P 500's decline of 6.1% [3]. - The current Zacks Rank for RBB is 4 (Sell), indicating expectations of underperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $29.14 million, and for the current fiscal year, it is $1.60 on revenues of $118.77 million [7]. - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6]. Industry Context - The Banks - West industry, to which RBB belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges for stock performance [8].

Core Points - RBB Bancorp reported a net income of $2.3 million, or $0.13 diluted earnings per share, for Q1 2025, a decline from $4.4 million, or $0.25 per share, in Q4 2024 [3][8] - The decline in net income was attributed to a $6.7 million pre-tax provision for credit losses, primarily aimed at reducing exposure to nonperforming loans [3][4] - The company reduced its net exposure to nonperforming loans by 32% since year-end, bringing it down to $51 million [4] Financial Performance - Net interest income for Q1 2025 was $26.2 million, slightly up from $26.0 million in Q4 2024, driven by a decrease in interest expense [5][8] - The net interest margin (NIM) increased to 2.88% in Q1 2025, up from 2.76% in Q4 2024, due to a decrease in the overall cost of funds [6][8] - Noninterest income decreased to $2.3 million in Q1 2025 from $2.7 million in Q4 2024, mainly due to lower net gains on loan sales [11][8] Credit Quality - Nonperforming assets decreased by $16.5 million, or 20.3%, to $64.6 million at the end of Q1 2025 [8][17] - The provision for credit losses was $6.7 million in Q1 2025, compared to $6.0 million in Q4 2024, reflecting an increase in specific reserves [10][8] - The allowance for loan losses as a percentage of loans held for investment increased to 1.65% at March 31, 2025, from 1.56% at December 31, 2024 [20][8] Balance Sheet - Total assets increased to $4.0 billion as of March 31, 2025, a $16.9 million increase from December 31, 2024 [13][8] - Loans held for investment totaled $3.1 billion, reflecting a 12% annualized growth compared to the previous quarter [14][8] - Total deposits rose to $3.1 billion, an increase of $58.8 million, or 7.7% annualized, from the previous quarter [16][8] Shareholders' Equity - Total shareholders' equity was $510.3 million at March 31, 2025, a $2.4 million increase from December 31, 2024 [23][8] - Book value per share increased to $28.77, and tangible book value per share rose to $24.63 as of March 31, 2025 [8][23]