RBB(US:RBB)2023-04-07 19:43Financial 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].