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RBB(RBB) - 2024 Q2 - Quarterly Results
RBBRBB(RBB)2024-07-22 21:30

Net Income and Earnings - Net income for Q2 2024 totaled 7.2million,or7.2 million, or 0.39 diluted earnings per share, compared to 8.0millioninQ12024[3][18]−NetincomeavailabletocommonshareholdersforthesixmonthsendedJune30,2024,was8.0 million in Q1 2024[3][18] - Net income available to common shareholders for the six months ended June 30, 2024, was 15,281, compared to 21,919inthesameperiodin2023[52]−NetincomeforthesixmonthsendedJune30,2024,was21,919 in the same period in 2023[52] - Net income for the six months ended June 30, 2024, was 15.28 million, down from 21.92millioninthesameperiodin2023[65]−BasicnetincomepershareforthesixmonthsendedJune30,2024,was21.92 million in the same period in 2023[65] - Basic net income per share for the six months ended June 30, 2024, was 0.83, compared to 1.15inthesameperiodin2023[65]NetInterestMarginandIncome−Netinterestmargin(NIM)decreasedto2.671.15 in the same period in 2023[65] Net Interest Margin and Income - Net interest margin (NIM) decreased to 2.67% in Q2 2024, down 2 basis points from 2.69% in Q1 2024[3][5] - Net interest income for the second quarter of 2024 was 23.988 million, with a net interest margin of 2.67%[45] - Net interest income decreased to 48,891inJune2024from48,891 in June 2024 from 66,076 in June 2023, with a net interest margin of 2.68% compared to 3.53% in the previous year[46] - Net interest income for the six months ended June 30, 2024, was 107.68million,adecreasefrom107.68 million, a decrease from 110.75 million in the same period in 2023[65] - Net interest margin was 2.67% for the quarter ended June 30, 2024, compared to 3.37% for the same period in 2023[72] Total Assets and Loans - Total assets decreased to 3.9billionasofJune30,2024,a3.9 billion as of June 30, 2024, a 9.8 million decrease compared to March 31, 2024[10] - Loans held for investment increased by 20.4millionto20.4 million to 3.0 billion as of June 30, 2024, driven by growth in CRE, C&I, C&D, and SFR loans[22] - Total loans held for investment decreased to 3,015,613inJune2024from3,015,613 in June 2024 from 3,307,157 in June 2023, with a yield of 6.05% compared to 6.14% in the previous year[46] - Total loans as of June 30, 2024, were 3,047,712,withcommercialrealestateloansmakingup39.13,047,712, with commercial real estate loans making up 39.1% of the portfolio[49] - Net loans held for investment stood at 3,005,971 as of June 30, 2024, showing a slight decrease from 3,152,903asofJune30,2023[69]−Totalassetsdecreasedto3,152,903 as of June 30, 2023[69] - Total assets decreased to 3,868,186 as of June 30, 2024, compared to 4,075,618asofJune30,2023,reflectingadeclineof5.14,075,618 as of June 30, 2023, reflecting a decline of 5.1% year-over-year[69] - Total assets-GAAP declined to 3,868,186 thousand in June 2024 from 4,075,618thousandinJune2023[77]−Tangibleassetsdecreasedto4,075,618 thousand in June 2023[77] - Tangible assets decreased to 3,794,294 thousand in June 2024 from 4,000,874thousandinJune2023[77]DepositsandFundingCosts−Totaldepositsdecreasedby4,000,874 thousand in June 2023[77] Deposits and Funding Costs - Total deposits decreased by 4.7 million to 3.0billionasofJune30,2024,withnoninterest−bearingdepositsincreasingby3.0 billion as of June 30, 2024, with noninterest-bearing deposits increasing by 3.5 million to 543.0million[23]−Totalcostofdepositsforthesecondquarterof2024was543.0 million[23] - Total cost of deposits for the second quarter of 2024 was 26.803 million, with a cost of 3.59%[45] - Total cost of funds for the second quarter of 2024 was 28.921million,withacostof3.5428.921 million, with a cost of 3.54%[45] - Total interest-bearing deposits increased to 2,531,686 in June 2024 from 2,427,265inJune2023,withacostof4.342,427,265 in June 2023, with a cost of 4.34% compared to 3.13% in the previous year[46] - Total deposits slightly decreased to 3.02 billion as of June 30, 2024, compared to 3.03billioninMarch2024and3.03 billion in March 2024 and 3.18 billion in June 2023[60] - Noninterest-bearing demand deposits accounted for 18.0% (542.97million)oftotaldepositsasofJune30,2024,comparedto17.8542.97 million) of total deposits as of June 30, 2024, compared to 17.8% (539.52 million) in March 2024 and 18.4% (585.75million)inJune2023[60]−Timedepositsover585.75 million) in June 2023[60] - Time deposits over 250,000 increased to 790.48million(26.1790.48 million (26.1% of total deposits) as of June 30, 2024, compared to 746.61 million (24.7%) in March 2024 and 662.76million(20.9662.76 million (20.9%) in June 2023[60] - Total deposits were 3,023,605 as of June 30, 2024, down from 3,175,416asofJune30,2023,adecreaseof4.83,175,416 as of June 30, 2023, a decrease of 4.8%[69] - Cost of average total deposits was 3.59% for the quarter ended June 30, 2024, up from 2.80% in the same period last year[72] Credit Quality and Allowances - Substandard loans increased to 63.1 million, or 2.07% of total loans, as of June 30, 2024, up from 57.2million,or1.8957.2 million, or 1.89% of total loans, in Q1 2024[13] - The allowance for credit losses totaled 42.4 million as of June 30, 2024, with the allowance for loan losses as a percentage of nonperforming loans decreasing to 76% from 116% in Q1 2024[14] - Nonperforming assets increased to 54.6million,or1.4154.6 million, or 1.41% of total assets, as of June 30, 2024, up from 37.0 million, or 0.95% of total assets, as of March 31, 2024[35] - 30-89 day delinquent loans decreased by 9.7millionto9.7 million to 11.3 million as of June 30, 2024, compared to 21.0millionasofMarch31,2024[36]−Specialmentionloansdecreasedto21.0 million as of March 31, 2024[36] - Special mention loans decreased to 19.52 million (0.64% of total loans) as of June 30, 2024, compared to 20.58million(0.6820.58 million (0.68%) in March 2024 and 24.15 million (0.76%) in June 2023[58] - Substandard loans increased to 63.08million(2.0763.08 million (2.07% of total loans) as of June 30, 2024, compared to 57.17 million (1.89%) in March 2024 and 74.07million(2.3274.07 million (2.32%) in June 2023[58] - Nonperforming loans rose to 54.59 million (1.79% of total loans) as of June 30, 2024, compared to 35.94million(1.1935.94 million (1.19%) in March 2024 and 41.86 million (1.31%) in June 2023[58] - Net charge-offs increased to 551,000(0.07551,000 (0.07% of average loans) for the quarter ended June 30, 2024, compared to 184,000 (0.02%) in March 2024 and 580,000(0.07580,000 (0.07%) in June 2023[58] - Allowance for loan losses to nonperforming loans decreased to 76.46% as of June 30, 2024, compared to 116.01% in March 2024 and 102.94% in June 2023[58] - Provision for credit losses for the six months ended June 30, 2024, was 557,000, down from 2.39millioninthesameperiodin2023[65]ShareholderEquityandShareRepurchases−Totalshareholders′equitydecreasedby2.39 million in the same period in 2023[65] Shareholder Equity and Share Repurchases - Total shareholders' equity decreased by 2.7 million to 511.3millionasofJune30,2024,comparedtoMarch31,2024,duetodividendspaidandsharerepurchases[37]−Thecompanyrepurchased448,190sharesofcommonstockfor511.3 million as of June 30, 2024, compared to March 31, 2024, due to dividends paid and share repurchases[37] - The company repurchased 448,190 shares of common stock for 8.1 million during Q2 2024[3] - The company repurchased 448,190 shares at a weighted average share price of 18.01duringthesecondquarterof2024[38]−Totalshareholders′equityincreasedto18.01 during the second quarter of 2024[38] - Total shareholders' equity increased to 511,291 thousand as of June 30, 2024, compared to 500,290thousandinJune2023[77]−Tangiblecommonequitydecreasedslightlyto500,290 thousand in June 2023[77] - Tangible common equity decreased slightly to 437,399 thousand in June 2024 from 439,894thousandinMarch2024[77]−Commonequitytoassetsratioimprovedto13.22439,894 thousand in March 2024[77] - Common equity to assets ratio improved to 13.22% in June 2024 from 12.28% in June 2023[77] - Tangible common equity to tangible assets ratio increased to 11.53% in June 2024 from 10.64% in June 2023[77] - Common shares outstanding decreased to 18,182,154 in June 2024 from 18,995,303 in June 2023[77] Noninterest Income and Expense - Noninterest income increased to 3.5 million in Q2 2024, up 116,000fromQ12024,drivenbyhighergainsonsaleofloansandequityinvestmentincome[7]−TotalnoninterestincomeforthesixmonthsendedJune30,2024,increasedto116,000 from Q1 2024, driven by higher gains on sale of loans and equity investment income[7] - Total noninterest income for the six months ended June 30, 2024, increased to 6.86 million from 4.86millioninthesameperiodin2023[65]−TotalnoninterestexpenseforthesixmonthsendedJune30,2024,decreasedto4.86 million in the same period in 2023[65] - Total noninterest expense for the six months ended June 30, 2024, decreased to 34.09 million from 37.43millioninthesameperiodin2023[65]BookValueandTangibleEquity−Bookvaluepershareincreasedto37.43 million in the same period in 2023[65] Book Value and Tangible Equity - Book value per share increased to 28.12 as of June 30, 2024, up from 27.67atMarch31,2024[3]−Tangiblecommonequitytotangibleassetsratiostoodat11.5327.67 at March 31, 2024[3] - Tangible common equity to tangible assets ratio stood at 11.53% as of June 30, 2024, compared to 11.56% in March 2024 and 10.64% in June 2023[58] - Book value per share increased to 28.12 as of June 30, 2024, from 26.34asofJune30,2023[72]−Tangiblebookvaluepershareroseto26.34 as of June 30, 2023[72] - Tangible book value per share rose to 24.06 as of June 30, 2024, compared to 22.40asofJune30,2023[72]−Bookvaluepershareroseto22.40 as of June 30, 2023[72] - Book value per share rose to 28.12 in June 2024 from 26.34inJune2023[77]−Tangiblebookvaluepershareincreasedto26.34 in June 2023[77] - Tangible book value per share increased to 24.06 in June 2024 from 22.40inJune2023[77]InterestExpenseandYields−TotalinterestexpenseforthesixmonthsendedJune30,2024,increasedto22.40 in June 2023[77] Interest Expense and Yields - Total interest expense for the six months ended June 30, 2024, increased to 58.84 million from 44.73millioninthesameperiodin2023[65]−Interestonsavingsdeposits,NOW,andmoneymarketaccountsforthesixmonthsendedJune30,2024,was44.73 million in the same period in 2023[65] - Interest on savings deposits, NOW, and money market accounts for the six months ended June 30, 2024, was 9.43 million, up from 5.07millioninthesameperiodin2023[65]−InterestontimedepositsforthesixmonthsendedJune30,2024,was5.07 million in the same period in 2023[65] - Interest on time deposits for the six months ended June 30, 2024, was 45.17 million, compared to 32.58millioninthesameperiodin2023[65]−Totalinterest−earningassetsdecreasedto32.58 million in the same period in 2023[65] - Total interest-earning assets decreased to 3,667,597 in June 2024 from $3,770,997 in June 2023, with a yield of 5.91% compared to 5.93% in the previous year[46] Efficiency and Ratios - Efficiency ratio increased to 62.38% for the quarter ended June 30, 2024, from 53.80% in the same period last year[72] - Return on average tangible common equity was 7.01% for the six months ended June 30, 2024, compared to 10.49% in the same period in 2023[52] - Return on average assets, annualized, was 0.76% for the quarter ended June 30, 2024, compared to 1.08% for the same period in 2023[72] - Return on average shareholders' equity, annualized, was 5.69% for the quarter ended June 30, 2024, down from 8.78% in the same period last year[72] - Tier 1 leverage ratio increased to 12.48% as of June 30, 2024, compared to 12.16% in March 2024 and 11.60% in June 2023[58]