RBB Bancorp Reports Fourth Quarter and Fiscal Year 2024 Earnings

Core Viewpoint - RBB Bancorp reported a decline in net income for the fourth quarter and the fiscal year ended December 31, 2024, primarily due to increased interest expenses and a decrease in loan interest income, while net interest income and net interest margin showed improvement due to declining funding costs [3][9][10]. Financial Performance - The company reported net income of $4.4 million, or $0.25 diluted earnings per share, for Q4 2024, down from $7.0 million, or $0.39 diluted earnings per share, in Q3 2024. For the fiscal year 2024, net income totaled $26.7 million, or $1.47 diluted earnings per share, compared to $42.5 million, or $2.24 diluted earnings per share, in 2023 [3][9]. - Net interest income for Q4 2024 was $26.0 million, an increase from $24.5 million in Q3 2024, driven by a $130,000 increase in interest income and a $1.3 million decrease in interest expense [5]. - The net interest margin (NIM) improved to 2.76% in Q4 2024, up from 2.68% in Q3 2024, attributed to a decrease in the overall cost of funds [6][7]. Credit Quality - The provision for credit losses was $6.0 million for Q4 2024, up from $3.3 million in Q3 2024, reflecting an increase in specific reserves and net charge-offs [12]. - Nonperforming assets increased to $81.0 million, or 2.03% of total assets, at December 31, 2024, compared to $60.7 million, or 1.52% of total assets, at September 30, 2024 [26]. Balance Sheet - Total assets were $4.0 billion as of December 31, 2024, a slight increase from $3.99 billion at September 30, 2024, but a decrease from $4.03 billion at December 31, 2023 [21]. - Loans held for investment totaled $3.1 billion, a decrease of $38.7 million from September 30, 2024, primarily due to declines in commercial real estate and construction loans [22]. - Total deposits were $3.1 billion, down $8.4 million from September 30, 2024, with a notable decrease in interest-bearing deposits [24]. Shareholders' Equity - Total shareholders' equity was $507.9 million at December 31, 2024, a decrease from $509.8 million at September 30, 2024, primarily due to higher unrealized losses on available-for-sale securities and dividends paid [34].