Financial Performance - The Company reported net income of $8.0 million, or $0.43 diluted earnings per share, for Q1 2024, down from $12.1 million, or $0.64 per share in Q4 2023[3] - Net income for the three months ended March 31, 2024, was $8,036,000, down from $12,073,000 in the previous quarter and $10,970,000 in the same quarter last year[41] - Basic and diluted net income per share for the three months ended March 31, 2024, was $0.43, compared to $0.64 in the previous quarter and $0.58 in the same quarter last year[41] Income and Expenses - Net interest income was $24.9 million for Q1 2024, a decrease of $792,000 from $25.7 million in Q4 2023, attributed to higher interest expenses[7] - Total interest expense increased to $29,918,000 for the three months ended March 31, 2024, from $29,163,000 in the previous quarter and $19,650,000 in the same quarter last year[41] - Total noninterest income decreased significantly to $3,372,000 from $7,394,000 in the previous quarter and increased from $2,362,000 in the same quarter last year[41] - Total noninterest expense increased to $16,969,000 for the three months ended March 31, 2024, from $16,393,000 in the previous quarter and decreased from $18,911,000 in the same quarter last year[41] Asset and Liability Management - Total deposits were $3.0 billion as of March 31, 2024, a decrease of $146.4 million, or 4.6%, compared to December 31, 2023[17] - Total liabilities of RBB Bancorp were $3.36 billion as of March 31, 2024, a decrease from $3.62 billion a year earlier[39] - As of March 31, 2024, RBB Bancorp had total assets of $3.9 billion, a decrease from $4.1 billion on March 31, 2023[30] Credit Quality - Nonperforming assets increased to $37.0 million, or 0.95% of total assets, at March 31, 2024, compared to $31.6 million, or 0.79% at December 31, 2023[18] - The allowance for credit losses totaled $42.4 million, with an allowance for loan losses of $41.7 million, unchanged from the previous quarter[23] - Nonperforming loans increased to $35,935, accounting for 1.19% of total loans, compared to $31,619 (1.04%) in the previous quarter and $26,436 (0.79%) a year ago[50] Shareholder Equity - Total shareholders' equity increased to $514.0 million at March 31, 2024, a $2.7 million increase from December 31, 2023, driven by net earnings and stock option exercises[25] - Shareholders' equity increased to $534.90 million as of March 31, 2024, compared to $514.56 million on March 31, 2023, representing a growth of approximately 3.9%[39] Operational Metrics - Return on average assets decreased to 0.81% in Q1 2024 from 1.20% in the previous quarter, while return on average common equity fell to 6.30% from 9.48%[6] - The efficiency ratio increased to 60.07% for the quarter ended March 31, 2024, compared to 49.58% in the previous quarter and 51.86% a year ago[60] - The net interest margin decreased to 2.69% for the quarter ended March 31, 2024, down from 2.73% in the previous quarter and 3.70% a year ago[60] Future Outlook - The company plans to hold a conference call on April 23, 2024, to discuss its first quarter 2024 financial results[31]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-38149 RBB BANCORP (Exact name of Registrant as specified in its Charter) California 27-2776416 (State or other jurisdiction of incorp ...

RBB Bancorp (NASDAQ:RBB) Q4 2023 Results Conference Call January 23, 2024 2:00 PM ET Company Participants David Morris - President, Chief Executive Officer and CFO Johnny Lee - President & Chief Banking Officer Lynn Hopkins - Interim Chief Financial Officer Jeffrey Yeh - Chief Credit Officer Gary Fan - Chief Administrative Officer Vincent Liu - Executive Vice President and CRO Conference Call Participants Nathan Race - Piper Sandler Kelly Motta - KBW Andrew Terrell - Stephens Tim Coffey - Janney Montgomery ...

Financial Position - As of September 30, 2023, the company had total consolidated assets of $4.1 billion, gross consolidated loans of $3.1 billion, total consolidated deposits of $3.2 billion, and total consolidated shareholders' equity of $502.5 million[229]. - The company pledged loans of $1.5 billion with the Federal Home Loan Bank (FHLB) and had an additional borrowing capacity of $1.1 billion based on the values of loans[225]. - The company received a $5.0 million grant from the Community Development Financial Institutions (CDFI) Equitable Recovery Program, with income recognition deferred until performance goals are met[226]. - The company exceeded all regulatory capital requirements under Basel III and was considered "well-capitalized" as of September 30, 2023[225]. - Total assets increased by $150.3 million, or 3.8%, to $4.1 billion as of September 30, 2023, driven by a $247.2 million increase in cash and cash equivalents[237]. - Shareholders' equity rose by $17.9 million, or 3.7%, to $502.5 million, supported by $30.4 million of net income[245]. - The company's Tier 1 leverage capital ratio was 11.68% and the total risk-based capital ratio was 26.24% as of September 30, 2023, indicating a well-capitalized status[246]. - The company reported a total of $504,432 thousand in shareholders' equity as of September 30, 2023, an increase from $474,106 thousand in the previous year[252]. - Total liabilities increased by $128.9 million to $3.6 billion as of September 30, 2023, from $3.4 billion at December 31, 2022[343]. - Total deposits increased by $176.4 million to $3.2 billion as of September 30, 2023, compared to $3.0 billion at December 31, 2022[348]. Earnings Performance - For Q3 2023, the company reported net earnings of $8.5 million, a decrease of $8.2 million from $16.7 million in Q3 2022, primarily due to a $11.4 million decrease in net interest income[236]. - Net income after tax for the third quarter of 2023 was $8.5 million, a decrease of 49.1% from $16.7 million in the third quarter of 2022[277]. - Net income after tax fell to $30.4 million for the first nine months of 2023, a decrease of $16.4 million, or 35.0%, from $46.7 million in the same period of 2022, primarily due to a $16.9 million decrease in net interest income[295]. - Noninterest income increased by $235,000, or 9.3%, to $2.8 million in Q3 2023 compared to $2.5 million in Q3 2022, driven by a $190,000 increase in gains on the sale of other real estate owned[264]. - Noninterest income decreased by $1.3 million, or 14.3%, to $7.6 million for the first nine months of 2023, mainly due to a $1.5 million decrease in gain on sale of loans attributed to rising market interest rates[284]. Loan and Deposit Activity - Total loans held for investment decreased by $215.5 million, or 6.5%, to $3.1 billion, primarily due to declines in commercial real estate loans of $147.9 million and commercial and industrial loans of $73.6 million[239]. - The average yield on loans held for investment increased to 5.99% in Q3 2023, compared to 5.53% in Q3 2022, reflecting a positive trend in loan profitability[252]. - The company is proactively offering alternatives to clients with deposit balances exceeding $250,000 to reduce uninsured deposits[224]. - Noninterest-bearing deposits decreased by $226.3 million, or 28.3%, to $572.4 million, while interest-bearing deposits increased by $402.7 million, or 18.5%, to $2.6 billion[241]. - The average balance of real estate loans held for investment was $2,968,246 thousand in Q3 2023, with an interest income of $43,583 thousand, yielding a rate of 5.83%[252]. - The company experienced $2.2 million in net loan charge-offs in Q3 2023, compared to $127,000 in net loan recoveries in Q3 2022[263]. - The company reported a $31.8 million increase in average gross loans, indicating organic loan growth[259]. Interest Income and Expense - Net interest income for Q3 2023 was $27.6 million, down from $39.0 million in Q3 2022, reflecting the impact of rising interest rates[249]. - The efficiency ratio for Q3 2023 was 55.59%, compared to 40.22% in Q3 2022, indicating increased operational costs relative to income[249]. - Interest expense on deposits rose to $25.0 million in Q3 2023, a significant increase of $21.0 million, or 525.6%, from $4.0 million in Q3 2022[261]. - The average interest rate on total interest-bearing deposits increased to 3.83% for the three months ended September 30, 2023, from 0.93% for the year ended December 31, 2022[344]. - The average rate paid on interest-bearing deposits increased by 279 basis points during the period, contributing to the decrease in net interest income[279]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) increased to $42.4 million, or 1.36% of total loans, compared to $41.1 million, or 1.23%, at the end of 2022[244]. - Nonperforming loans increased by $16.6 million to $40.1 million at September 30, 2023, from $23.5 million at December 31, 2022, driven by increases in nonperforming residential mortgage loans and commercial real estate loans[331]. - The provision for credit losses rose by $745,000 to $3.8 million in the first nine months of 2023, reflecting increases in classified loans that impacted the qualitative factors in the Company's CECL model[283]. - The total charge-offs for the nine months ended September 30, 2023, were $2.99 million, compared to $0.15 million for the same period in 2022[327]. - The allowance for credit losses to total loans was 1.36% as of September 30, 2023, compared to 1.19% at December 31, 2022[327]. Market and Economic Conditions - A sensitivity analysis indicated that a 1% increase in the unemployment rate would result in a $773,000, or 1.8%, increase to the allowance for credit losses (ACL)[210]. - The Federal Reserve raised interest rates by 2.25% during the 12-month period from September 30, 2022, to September 30, 2023, impacting the company's interest income[259]. - The net interest margin is sensitive to changes in interest rates, inflation, and economic conditions, impacting overall performance significantly[250]. - The asset liability committee (ALCO) meets monthly to monitor interest rate risk sensitivity and ensure compliance with approved risk limits[380].

Financial Data and Key Metrics Changes - The net interest margin (NIM) decreased by 50 basis points to 2.87% in Q3 2023 due to declining loan yields and increasing deposit costs [9][13] - Net interest income declined as a result of lower loan yields, while non-interest income increased significantly due to a $5 million CDFI award [11][12] - Non-interest expenses decreased by 8.9% primarily due to reduced legal and professional fees, with expectations of total non-interest expenses around $17 million in Q4 2023 [12][13] Business Line Data and Key Metrics Changes - The loan portfolio totaled $3.1 billion at the end of Q3 2023, with an annualized yield of 5.99% [14] - Commercial real estate loans comprised 46% of total loans, with specific exposure to construction and land development loans [14] - The residential mortgage portfolio amounted to $1.5 billion, primarily consisting of non-QM mortgages in New York and California [15] Market Data and Key Metrics Changes - Total deposits decreased by $21 million from the prior quarter, mainly due to a reduction in time deposits under $250,000 [16] - The average cost of interest-bearing deposits rose to 3.83%, up 36 basis points from the previous quarter, but the pace of increase has slowed significantly [16] Company Strategy and Development Direction - The company achieved a target loan-to-deposit ratio of 95% and plans to resume deposit-supported loan growth to enhance profitability [6][7] - A strategic focus on de-risking the loan portfolio has led to reduced exposure to certain loan categories deemed at risk in a higher interest rate environment [8] - The company is open to acquisitions in the San Francisco market and is looking for opportunities that provide significant cost savings [60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving credit quality due to proactive loan de-risking and a specific charge-off taken in Q3 [10] - The company anticipates continued pressure on NIM in Q4 due to deposit costs and loan yields but expects future benefits from the redemption of $55 million in subordinated debt [9][30] - Management is cautiously optimistic about the resolution of a large delinquent loan and expects no additional losses from it [17] Other Important Information - The allowance for credit losses remained stable at 1.36% of total loans, with capital levels well above regulatory requirements [19] - The company is optimistic about resuming share repurchases in mid-November, with 433,000 shares remaining [37][39] Q&A Session Summary Question: Expectations for margin pressure in Q4 - Management indicated that NIM compression is expected to continue but not to the extent seen in Q3, with one large loan payoff anticipated to impact yields [24][25] Question: Non-core loans remaining - Management confirmed that approximately $57 million in non-core loans are expected to be let go or refinanced [34] Question: Charge-off details - A $12 million loan resulted in a $2.2 million charge-off due to a decrease in collateral value related to a local tax issue [36] Question: Share repurchase timeline - Management is optimistic about resuming share repurchases in mid-November [37] Question: SEC investigation update - Management stated that they cannot comment on the timeline for the SEC investigation but noted that the process has slowed down [58] Question: Growth opportunities by category - Management highlighted ongoing demand for construction and CRE-related loans, with a selective approach to lending in these areas [63]

Financial Position - As of June 30, 2023, the company had total consolidated assets of $4.1 billion, gross consolidated loans of $3.2 billion, total consolidated deposits of $3.2 billion, and total consolidated shareholders' equity of $500.3 million[233]. - The company pledged loans of $1.5 billion with the Federal Home Loan Bank and had an additional borrowing capacity of $1.1 billion as of June 30, 2023[212]. - The company had $92.0 million of unsecured federal funds lines and $40.8 million from the Federal Reserve Discount Window as of June 30, 2023[212]. - The company did not have any borrowings outstanding with federal fund lines or the Federal Reserve Discount Window as of June 30, 2023[212]. - Total assets increased by $156.6 million, or 4.0%, to $4.1 billion as of June 30, 2023, primarily due to a $162.8 million increase in cash and cash equivalents[241]. - Total liabilities rose by $140.8 million to $3.6 billion at June 30, 2023, primarily due to a $197.7 million increase in deposits[347]. - Total deposits increased by $197.7 million to $3.2 billion at June 30, 2023, compared to $3.0 billion at December 31, 2022, driven by higher yielding time deposits[352]. - The company reported a total shareholders' equity of $500,062 thousand as of June 30, 2023, compared to $466,603 thousand in the previous year, indicating a year-over-year increase of 7.15%[255]. Loan Portfolio - The company expects to reduce the size of the loan portfolio in the next few quarters by slowing the pace of loan originations and focusing on supporting core relationships[230]. - Total loans held for investment decreased by $140.5 million, or 4.2%, to $3.2 billion at June 30, 2023, driven by declines in commercial real estate and commercial and industrial loans[243]. - Total loans held for investment rose to $3,272,126 thousand in Q2 2023, a 9.47% increase from $2,989,614 thousand in Q2 2022[255]. - Commercial real estate (CRE) loans decreased by $128.7 million, or 9.8%, to $1.2 billion as of June 30, 2023, compared to $1.3 billion at December 31, 2022[318]. - Single-family residential (SFR) mortgage loans increased by $90.6 million, or 6.2%, to $1.6 billion as of June 30, 2023, compared to $1.5 billion at December 31, 2022[324]. - Commercial and industrial (C&I) loans decreased by $69.8 million, or 34.7%, to $131.5 million as of June 30, 2023, compared to $201.2 million at December 31, 2022[317]. - Construction and land development (C&D) loans decreased by $20.0 million, or 7.2%, to $256.9 million as of June 30, 2023, compared to $276.9 million at December 31, 2022[319]. Earnings Performance - For Q2 2023, the company reported net earnings of $10.9 million, a decrease of $4.5 million from $15.5 million in Q2 2022, with diluted earnings per share at $0.58 compared to $0.80 in the same period last year[240]. - The net interest income for Q2 2023 was $31.9 million, down from $37.1 million in Q2 2022, with a net interest margin impacted by changes in interest rates[252]. - The company reported a decrease in noninterest income to $2.5 million for Q2 2023, down from $3.4 million in Q2 2022[252]. - The net interest margin for Q2 2023 was 3.37%, down from 4.08% in Q2 2022, primarily due to increases in market interest rates[264]. - Net interest income for the first half of 2023 was $66,076 thousand, with a net interest margin of 3.53%, compared to $71,629 thousand and 3.77% in the same period of 2022[257]. - Noninterest income decreased by $1.5 million, or 23.7%, to $4.9 million for the first half of 2023, primarily due to a decline in loan sale gains and corporate real estate sales[288]. Capital Adequacy - The company exceeded all regulatory capital requirements under Basel III and was considered "well-capitalized" as of June 30, 2023[212]. - The company's Tier 1 leverage capital ratio was 11.60% and the total risk-based capital ratio was 25.27% as of June 30, 2023, indicating a well-capitalized status under Basel III[249]. - The consolidated Tier 1 leverage ratio was 11.60% at June 30, 2023, compared to 11.67% at December 31, 2022[372]. - The consolidated total risk-based capital ratio was 25.27% at June 30, 2023, up from 24.27% at December 31, 2022[372]. - The tangible common equity to tangible assets ratio is a key non-GAAP measure used to evaluate capital adequacy[380]. Interest Rate Impact - The Federal Reserve raised interest rates by 3.5% from June 30, 2022, to June 30, 2023, impacting the company's interest income and expenses[263]. - The average interest rate on total interest-bearing deposits was 3.47% for the three months ended June 30, 2023, compared to 0.93% for the year ended December 31, 2022[348]. - The average yield on interest-earning assets was 6.01% in Q2 2023, up from 4.66% in Q2 2022, indicating a significant increase in interest rates[255]. - Interest expense on deposits surged to $21.9 million in Q2 2023, up from $2.4 million in Q2 2022, marking a $19.6 million, or 833.9%, increase[266]. - Interest expense on deposits increased to $37.6 million for the first half of 2023, a 711.1% increase from $4.6 million in the first half of 2022, driven by a 267 basis point rise in average rates and a $404.3 million increase in average interest-bearing deposits[286]. Credit Quality - The allowance for credit losses (ACL) increased by $2.0 million to $43.1 million, with the ACL to total loans outstanding at 1.35% as of June 30, 2023, compared to 1.23% at December 31, 2022[247]. - Non-performing loans rose by $18.3 million to $41.9 million at June 30, 2023, from $23.5 million at December 31, 2022, driven by increases in non-performing residential mortgage loans and commercial real estate loans[336]. - The ratio of non-performing loans to total loans increased to 1.31% as of June 30, 2023, compared to 0.71% at December 31, 2022[336]. - The provision for credit losses for the three months ended June 30, 2023, was $601,000, compared to $915,000 for the same period in 2022[332]. - The provision for credit losses rose by $1.1 million to $2.4 million in the first half of 2023, reflecting increases in classified loans, with net loan charge-offs of $737,000 compared to $39,000 in the same period of 2022[287].

RBB Bancorp (NASDAQ:RBB) Q2 2023 Earnings Conference Call July 25, 2023 2:00 PM ET Company Participants Catherine Wei - Investor Relations David Morris - Chief Executive Officer Johnny Lee - President & Chief Banking Officer Alex Ko - Chief Financial Officer Jeffrey Yeh - Chief Credit Officer Gary Fan - Chief Administrative Officer Conference Call Participants Kelly Motta - KBW Nathan Race - Piper Sandler Andrew Terrell - Stephens Tim Coffey - Janney Ben Gerlinger - Hovde Group Operator Good day, everyone, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-38149 RBB BANCORP (Exact name of registrant as specified in its charter) California 27-2776416 ...

RBB Bancorp (NASDAQ:RBB) Q1 2023 Earnings Conference Call April 25, 2023 2:00 PM ET Company Participants Catherine Wei - Investor Relations David Morris - President and Chief Executive Officer Alex Ko - Chief Financial Officer Gary Fan - Executive Vice President and CAO Conference Call Participants Kelly Motta - KBW Ben Gerlinger - Hovde Group Andrew Terrell - Stephens Operator Good day, everyone, and welcome to the RBB Bancorp First Quarter 2023 Earnings Call. At this time, all participants have been place ...

Financial Performance - For the year 2022, the company reported net earnings of $64.3 million, an increase of $7.4 million, or 13.0%, compared to 2021[320]. - Net income for 2022 was $64.33 million, reflecting a $7.42 million, or 13.0%, increase from $56.91 million in 2021[334]. - Earnings per share (EPS) increased to $3.37 in 2022, up $0.45, or 15.4%, from $2.92 in 2021[334]. - Return on average assets increased to 1.62% in 2022, up from 1.48% in 2021[334]. - Net income available to common shareholders increased to $64,327,000 in 2022, up from $56,906,000 in 2021, representing a growth of 12.5%[489]. Asset and Liability Management - Total assets decreased by $309.1 million, or 7.3%, to $3.9 billion as of December 31, 2022, primarily due to a $417.8 million decrease in interest-bearing cash and a $193.0 million decrease in federal funds sold[321]. - Total liabilities decreased by $327.0 million to $3.4 billion, or 8.7%, at December 31, 2022, from $3.8 billion at December 31, 2021[453]. - Cash and cash equivalents decreased by $610.8 million, or 88.0%, to $83.5 million as of December 31, 2022, compared to $694.4 million at December 31, 2021[450]. - Total deposits decreased by $407.8 million, or 12.0%, to $3.0 billion, primarily due to a decrease in non-maturity deposits[324]. Loan Portfolio - Net loans increased by $397.0 million, or 13.7%, to $3.3 billion as of December 31, 2022, driven by organic growth in SFR mortgage loans and CRE loans[323]. - Total loans held for investment rose to $3,096,786 thousand in 2022, a 12.8% increase from $2,745,492 thousand in 2021, with an average yield of 5.52%[344]. - The loan portfolio composition includes 39.3% in commercial real estate (CRE) loans totaling $1.3 billion and 43.9% in single-family residential mortgages totaling $1.5 billion as of December 31, 2022[411][417]. - The multi-family residential loan portfolio totaled $643.2 million as of December 31, 2022, an increase from $545.9 million in 2021[417]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses increased by $8.2 million, or 24.8%, to $41.1 million as of December 31, 2022, reflecting changes in economic forecasts and loan growth[327]. - Provision for credit losses increased to $4.9 million in 2022 from $4.0 million in 2021, reflecting a $2.1 million increase in allowance for credit losses due to loan growth[351]. - Total non-performing loans increased to $23.5 million as of December 31, 2022, from $20.7 million in 2021, primarily due to two commercial real estate loans totaling $12.3 million[445]. - The ACL to total loans ratio was 1.23% at the end of 2022, compared to 1.12% in 2021[441]. Interest Income and Expense - Total interest income increased by $33.9 million, or 23.1%, to $180.97 million in 2022 compared to $147.06 million in 2021[335]. - Net interest income rose by $25.2 million, or 20.3%, to $149.55 million in 2022, driven by a $121.1 million increase in average interest-earning assets[334]. - Interest expense on interest-bearing liabilities rose by $8.7 million, or 38.3%, to $31.4 million in 2022[340]. - The net interest margin improved to 4.02% in 2022, up from 3.46% in 2021[334]. Noninterest Income and Expenses - Noninterest income decreased by $7.49 million, or 40.0%, to $11.25 million in 2022[334]. - Total noninterest expense rose by $5.2 million, or 9.0%, to $63.4 million in 2022 from $58.2 million in 2021, with salaries and employee benefits accounting for a significant portion of the increase[359]. - Marketing and business promotion expense increased by $421,000 in 2022 due to higher business promotion and CRA donation expenses[363]. - Legal and professional expense increased by $1.6 million in 2022 due to a special investigation led by the Company's board of directors[361]. Capital Position - Shareholders' equity increased by $17.9 million, or 3.8%, to $484.6 million as of December 31, 2022, primarily due to net income and stock option exercises[328]. - The company's Tier 1 leverage capital ratio was 11.67%, and the common equity Tier 1 ratio was 16.03% as of December 31, 2022, indicating strong capital position[329]. - The common equity to assets ratio improved to 12.36% in 2022, compared to 11.04% in 2021[489]. - Tangible common equity rose to $409,347,000 in 2022, up from $393,365,000 in 2021, marking a 4.1% increase[489]. Securities and Investments - As of December 31, 2022, total securities amounted to $262,559,000, a decrease from $374,512,000 in 2021[402]. - The weighted-average yield on the total investment portfolio increased to 2.55% at December 31, 2022, compared to 1.03% at December 31, 2021[404]. - The total available-for-sale investment securities had unrealized losses of $31.3 million as of December 31, 2022[409]. - The company actively monitors investments for material changes and potential impairments at least quarterly[398].