RBB Bancorp Reports First Quarter 2025 Earnings

Core Points - RBB Bancorp reported a net income of $2.3 million, or $0.13 diluted earnings per share, for Q1 2025, a decline from $4.4 million, or $0.25 per share, in Q4 2024 [3][8] - The decline in net income was attributed to a $6.7 million pre-tax provision for credit losses, primarily aimed at reducing exposure to nonperforming loans [3][4] - The company reduced its net exposure to nonperforming loans by 32% since year-end, bringing it down to $51 million [4] Financial Performance - Net interest income for Q1 2025 was $26.2 million, slightly up from $26.0 million in Q4 2024, driven by a decrease in interest expense [5][8] - The net interest margin (NIM) increased to 2.88% in Q1 2025, up from 2.76% in Q4 2024, due to a decrease in the overall cost of funds [6][8] - Noninterest income decreased to $2.3 million in Q1 2025 from $2.7 million in Q4 2024, mainly due to lower net gains on loan sales [11][8] Credit Quality - Nonperforming assets decreased by $16.5 million, or 20.3%, to $64.6 million at the end of Q1 2025 [8][17] - The provision for credit losses was $6.7 million in Q1 2025, compared to $6.0 million in Q4 2024, reflecting an increase in specific reserves [10][8] - The allowance for loan losses as a percentage of loans held for investment increased to 1.65% at March 31, 2025, from 1.56% at December 31, 2024 [20][8] Balance Sheet - Total assets increased to $4.0 billion as of March 31, 2025, a $16.9 million increase from December 31, 2024 [13][8] - Loans held for investment totaled $3.1 billion, reflecting a 12% annualized growth compared to the previous quarter [14][8] - Total deposits rose to $3.1 billion, an increase of $58.8 million, or 7.7% annualized, from the previous quarter [16][8] Shareholders' Equity - Total shareholders' equity was $510.3 million at March 31, 2025, a $2.4 million increase from December 31, 2024 [23][8] - Book value per share increased to $28.77, and tangible book value per share rose to $24.63 as of March 31, 2025 [8][23]