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 2024, attributed to increased interest expenses and a decrease in interest income from loans, despite improvements in net interest income and net interest margin [2][8][9]. Financial Performance - The company reported net income of $4.4 million for Q4 2024, down from $7.0 million in Q3 2024, and total net income for the year was $26.7 million, compared to $42.5 million in 2023 [2][8]. - Diluted earnings per share for Q4 2024 were $0.25, down from $0.39 in Q3 2024, and for the year, it was $1.47 compared to $2.24 in 2023 [2][8]. Net Interest Income and Margin - Net interest income for Q4 2024 was $26.0 million, an increase from $24.5 million in Q3 2024, driven by a decrease in interest expense [4]. - The net interest margin (NIM) improved to 2.76% in Q4 2024 from 2.68% in Q3 2024, influenced by a reduction in the overall cost of funds [5][6]. Credit Quality - The provision for credit losses increased to $6.0 million in Q4 2024 from $3.3 million in Q3 2024, reflecting higher specific reserves and net charge-offs [11]. - Nonperforming assets rose to $81.0 million, or 2.03% of total assets, compared to $60.7 million, or 1.52% of total assets, at the end of Q3 2024 [24]. Balance Sheet - Total assets as of December 31, 2024, were $4.0 billion, a slight increase from $3.99 billion at the end of Q3 2024, but a decrease from $4.03 billion at the end of 2023 [20]. - Loans held for investment totaled $3.1 billion, a decrease from $3.1 billion in Q3 2024, with a notable decline in commercial real estate loans [21]. Deposits - Total deposits were $3.1 billion as of December 31, 2024, a decrease from $3.1 billion in Q3 2024, primarily due to a reduction in interest-bearing deposits [23]. Shareholders' Equity - Total shareholders' equity was $507.9 million at the end of Q4 2024, down from $509.8 million at the end of Q3 2024, influenced by higher unrealized losses on available-for-sale securities [31][32].