Financial Performance - For the quarter ended March 31, 2025, net income was $2.3 million, or $0.13 diluted earnings per share, down from $4.3 million, or $0.25 diluted earnings per share in the previous quarter and $8.0 million, or $0.43 diluted earnings per share in the same quarter last year [173]. - Net income for Q1 2025 was $2.290 million, a decrease from $4.385 million in Q4 2024, with earnings per share dropping to $0.13 from $0.25 [181]. - The return on average assets (annualized) decreased to 0.24% in Q1 2025 from 0.44% in Q4 2024, reflecting a decline in profitability [181]. - The efficiency ratio increased to 65.09% in Q1 2025, compared to 61.48% in Q4 2024, indicating a rise in noninterest expenses relative to income [181]. - The efficiency ratio increased to 65.1% in Q1 2025 from 61.5% in Q4 2024, attributed to higher noninterest expenses and lower noninterest income [210]. - The return on average tangible common equity (ROATCE) was 2.12% for the three months ended March 31, 2025, down from 3.98% for the same period in 2024 [308]. Asset and Liability Management - Total assets increased by $16.9 million to $4.0 billion as of March 31, 2025, with total deposits rising by $58.8 million to $3.1 billion [174]. - Total assets as of March 31, 2025, were $4.0 billion, reflecting a $16.9 million increase from December 31, 2024, primarily due to an $89.8 million rise in gross loans HFI [216]. - Total liabilities increased by $14.5 million to $3.5 billion, mainly due to a $58.8 million rise in deposits, offset by a $40.0 million decrease in FHLB advances [274]. - Noninterest-bearing liabilities totaled $586.3 million, showing a decrease from $596.9 million in the previous quarter [1]. - The company maintained a wholesale funding ratio of 9.8% at March 31, 2025, down from 10.7% at December 31, 2024 [292]. Loan Portfolio - Gross loans held for investment (HFI) increased by $89.8 million, or 12% annualized, to $3.1 billion during the first quarter of 2025 [174]. - Loans held for investment (HFI) increased by $89.8 million, or 2.9%, to $3.1 billion as of March 31, 2025, compared to $3.0 billion at December 31, 2024 [231]. - The total loan portfolio as of March 31, 2025, included $1.5 billion in SFR mortgages, representing 49.2% of total loans, up from 48.9% at December 31, 2024 [232]. - Single-family residential (SFR) mortgage loans HFI increased by $51.8 million, while commercial real estate (CRE) loans rose by $44.0 million [231]. - The commercial and industrial (C&I) loans increased by $6.0 million, while construction and land development (C&D) loans decreased by $14.4 million [231]. Credit Quality - The provision for credit losses totaled $6.7 million for the quarter ended March 31, 2025, compared to $6.0 million in the previous quarter and zero in the same quarter last year [173]. - Nonperforming assets decreased by $16.5 million to $64.6 million, representing 1.61% of total assets as of March 31, 2025, down from 2.03% at December 31, 2024 [177]. - The allowance for loan losses increased to $51.9 million as of March 31, 2025, compared to $47.7 million at December 31, 2024 [232]. - Net charge-offs for Q1 2025 were $2.6 million, with an annualized net charge-off rate of 0.35% of average loans, up from 0.26% in Q4 2024 [176]. - The ALL as a percentage of nonperforming loans HFI increased to 86% at March 31, 2025, from 68% at December 31, 2024 [258]. Interest Income and Expense - Net interest income for Q1 2025 was $26.163 million, compared to $25.977 million in Q4 2024, reflecting a positive trend in interest income despite a decrease in interest income from $54.555 million in Q4 2024 [181]. - Interest expense decreased by $2.4 million, while interest income decreased by $2.2 million, primarily due to fewer days in the quarter and lower average excess liquidity [193]. - The average cost of interest-bearing deposits decreased by 29 basis points, contributing to a $1.5 million reduction in interest expense [193]. - The net interest margin improved to 2.88% in Q1 2025 compared to 2.76% in Q4 2024 [193]. - The yield on total loans was 6.01% in Q1 2025, down from 6.07% in Q1 2024, reflecting lower market interest rates [197]. Investment Securities - Available for sale (AFS) investment securities totaled $378.2 million, with a pre-tax net unrealized loss of $25.0 million as of March 31, 2025 [174]. - The total securities portfolio decreased from $425.4 million at December 31, 2024, to $383.4 million at March 31, 2025 [221]. - The total unrealized losses on available for sale securities were $25,930 thousand, primarily due to changes in interest rates [229]. - The company holds all investment securities in an unrealized loss position with investment grade credit ratings as of March 31, 2025 [230]. - The company has the ability and intention to hold securities until their fair values recover to cost or maturity [228]. Shareholders' Equity - Total shareholders' equity rose to $510.3 million, with a book value per share of $28.77, up from $28.66 at the end of 2024 [179]. - Shareholders' equity increased by $2.4 million, or 0.48%, to $510.3 million as of March 31, 2025, driven by net income of $2.3 million and lower unrealized losses on AFS securities [290]. - The tangible common equity to tangible assets ratio was 11.10% as of March 31, 2025, compared to 11.08% a year earlier [308]. - The average balance of shareholders' equity was $512,262 thousand for the three months ended March 31, 2025 [308]. Tax and Regulatory Compliance - The effective tax rate for Q1 2025 was 28.2%, up from 13.3% in Q4 2024, attributed to lower tax credits and higher estimated pre-tax net income [212]. - As of March 31, 2025, the company was in compliance with all covenants under its long-term debt agreements and subordinated debt [285]. - The consolidated Tier 1 Leverage Ratio was 12.07%, exceeding the regulatory minimum of 4.00% [299]. - The Common Equity Tier 1 Risk-Based Capital Ratio for the consolidated entity was 17.87%, well above the required 4.50% [299].

Financial Data and Key Metrics Changes - First quarter net income declined to $2.3 million or $0.13 per share, primarily due to strategic actions taken to address non-performing assets [3] - Non-performing assets were reduced by 20% and net exposure to non-performing loans decreased by 32% to $51 million [3] - Net interest income before provisions increased for the third consecutive quarter to $26.2 million [8] - Net interest margin increased by 12 basis points to 2.88% due to a decline in the cost of interest-bearing deposits [6][10] Business Line Data and Key Metrics Changes - Loans held for investment grew by $90 million or 12% on an annualized basis, driven by growth in commercial, SBA, and SFR balances [5] - Total first quarter loan originations amounted to $201 million at a blended yield of 6.77% [6] - Non-interest income declined by $4.34 million to $2.3 million due to lower gains on the sale of loans [10] Market Data and Key Metrics Changes - Total deposits increased at an 8% annualized rate to $3.14 billion, with growth in money market accounts and CDs offsetting a decline in non-interest bearing accounts [13] - The loan portfolio yield remained stable at 6.03% [12] Company Strategy and Development Direction - The company is focusing on resolving non-performing loans quickly while minimizing the impact on earnings and capital [3] - There is an ongoing effort to reduce reliance on wholesale funding, with a successful CD campaign in the first quarter [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving remaining non-performing assets and expects to report additional progress in upcoming quarters [4] - The company anticipates continued loan growth, albeit at a more moderate pace than the first quarter [6] - Management believes that by the second half of 2025, there could be a target for reducing non-performing loans to a normal baseline [54] Other Important Information - The company’s tangible book value per share increased to $24.63 [13] - Capital ratios remain strong, with all capital ratios above regulatory well-capitalized levels [14] Q&A Session Summary Question: Thoughts on potential share repurchase - Management recognizes that a buyback is one of the best uses of excess capital and is working to put a buyback in place [19] Question: Dynamics within the margin and FHLB advances - The FHLB advances are fully priced into the March net interest margin, and the net interest margin is slightly below the quarter's average [21] Question: Margin drag from non-accrual loans - There is a drag on net interest margin from non-accrual loans, with $20 million potentially returning to accrual status [24] Question: Appetite for more problem loan sales - Management is open to sales but believes they are well reserved for future write-offs [29] Question: Exposure to tariff impacts - Management has reached out to top customers and does not observe any potential financial impact from tariffs at this time [34] Question: Loan growth expectations and deposit trends - Management expects to fund loan growth organically and noted some migration into higher-yielding products [46] Question: Non-interest expenses outlook - Management estimates operating expenses to be around $17.5 million to $18 million, with some moderation expected [66]

Financial Data and Key Metrics Changes - First quarter net income declined to $2,300,000 or $0.13 per share, primarily due to strategic actions taken to address non-performing assets [3] - Non-performing assets were reduced by 20% and net exposure to non-performing loans decreased by 32% to $51,000,000 [3] - Net interest income before provisions increased for the third consecutive quarter to $26,200,000 [9] - Net interest margin increased by 12 basis points to 2.88% due to a decline in the cost of interest-bearing deposits [7][9] Business Line Data and Key Metrics Changes - Loans held for investment grew by $90,000,000 or 12% on an annualized basis, driven by growth in commercial, SBA, and SFR balances [5] - Total first quarter loan originations amounted to $201,000,000 at a blended yield of 6.77% [6][7] - Non-interest income declined by $4,340,000 to $2,300,000 due to lower gains on the sale of loans [10] Market Data and Key Metrics Changes - Total deposits increased at an 8% annualized rate to $3,140,000,000, with growth in money market accounts and CDs offsetting a decline in non-interest bearing accounts [14] - The loan portfolio yield remained stable at 6.03% [11] Company Strategy and Development Direction - The company is focusing on resolving non-performing loans quickly while minimizing the impact on earnings and capital [3] - There is an ongoing effort to implement a share repurchase program as capital ratios are strong and the current share price is attractive [20] - The company aims to continue loan growth, albeit at a more moderate pace than the first quarter [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving remaining non-performing assets and expects to report additional progress in upcoming quarters [4] - The company anticipates that lower future provisions and redeployment of capital will lead to increasing net interest income after provisions [9] - Management acknowledged the uncertainty surrounding the tariff situation but reported no immediate financial impact from their top customers [36] Other Important Information - The company’s tangible book value per share increased to $24.63 [14] - Capital ratios remain strong, with all ratios above regulatory well-capitalized levels [15] Q&A Session Summary Question: Thoughts on potential share repurchase - Management recognizes that a buyback is one of the best uses of excess capital and is working to implement it [20] Question: Dynamics within the margin and FHLB advances - The FHLB advances are fully priced into the March net interest margin, and the net interest margin is slightly below the quarter's average [22] Question: Margin drag from non-accrual loans - There is a drag on net interest margin from non-accrual loans, with potential recoveries being considered [25] Question: Loan growth expectations and deposit trends - Management expects to fund loan growth organically and noted some migration from non-interest bearing deposits to higher-yielding products [49] Question: Time frame for resolving non-performing loans - Management believes that by the second half of 2025, there could be significant progress in reducing non-performing loans [56] Question: Composition of the loan growth pipeline - The pipeline is primarily composed of CRE loans and single-family residences, with C&I loans expected to contribute more as new hires come online [63]

Financial Data and Key Metrics Changes - First quarter net income declined to $2,300,000 or $0.13 per share, primarily due to strategic actions taken to address non-performing assets [3] - Non-performing assets were reduced by 20% and net exposure to non-performing loans decreased by 32% to $51,000,000 [3][4] - Net interest income before provisions increased for the third consecutive quarter to $26,200,000 [9] - Net interest margin increased by 12 basis points to 2.88%, driven by a decline in the cost of interest-bearing deposits [7][9] Business Line Data and Key Metrics Changes - Loans held for investment grew by $90,000,000 or 12% on an annualized basis, with strong results from commercial, SBA, and SFR balances [5][6] - Total first quarter loan originations reached $201,000,000 at a blended yield of 6.77% [6] - Non-interest income declined by $4,340,000 to $2,300,000 due to lower gains on the sale of loans [10] Market Data and Key Metrics Changes - Total deposits increased at an 8% annualized rate to $3,140,000,000, with growth in money market accounts and CDs [13] - The ratio of allowance for loan losses to total loans held for investments increased by nine basis points to 1.65% [13] Company Strategy and Development Direction - The company is focusing on resolving non-performing loans quickly while minimizing the impact on earnings and capital [3] - There is an ongoing effort to redeploy capital previously tied up in non-performing assets to increase net interest income in the coming quarters [9] - The company aims to be the bank of choice for Asian Americans nationwide, with a commitment to addressing challenges faced in recent years [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving remaining non-performing assets and expects to report additional progress in upcoming quarters [4] - The company anticipates continued loan growth, albeit at a more moderate pace than the first quarter [7] - Management acknowledged the uncertainty surrounding tariffs but reported no immediate financial impact from current trade dynamics [34][56] Other Important Information - The company has strong capital ratios, with all capital ratios above regulatory well-capitalized levels [14] - The tangible book value per share increased to $24.63 [13] Q&A Session Summary Question: Thoughts on potential share repurchase - Management recognizes that a buyback is one of the best uses of excess capital and is working to implement it [19] Question: Dynamics within the margin and FHLB roll - The FHLB advances are fully priced into the March net interest margin, and the net interest margin is slightly below the quarter's average [21] Question: Margin drag from non-accruals - There is a drag on net interest margin from non-accrual loans, with potential recoveries being considered [24] Question: Loan growth expectations and deposit trends - Management expects to fund loan growth organically and noted a seasonal decline in non-interest bearing deposits [46] Question: Composition of the loan growth pipeline - The pipeline is primarily composed of CRE loans and single-family residences, with C&I loans expected to contribute more in the future [61]

Financial Performance - Diluted Earnings Per Share (EPS) decreased to $0.13 in 1Q25 [6], compared to $0.39 in 2Q24 [6] - Net income decreased to $2290 thousand in 1Q25 [6], compared to $7245 thousand in 2Q24 [6] - The efficiency ratio increased to 6509% in 1Q25 [6], compared to 6238% in 2Q24 [6] - Return on Average Assets decreased to 024% in 1Q25 [6], compared to 076% in 2Q24 [6] Balance Sheet & Capital - Gross Loans Held for Investment (HFI) increased to $3143063 thousand in 1Q25 [6], compared to $3047712 thousand in 2Q24 [6] - Total Deposits increased to $3142628 thousand in 1Q25 [6], compared to $3023605 thousand in 2Q24 [6] - Common Equity Tier 1 (CET1) Ratio decreased to 1787% in 1Q25 [6], compared to 1889% in 2Q24 [6] Asset Quality - Non-Performing Loans (NPLs) decreased to $60380 thousand in 1Q25 [6], compared to $81038 thousand in 4Q24 [6] - NPLs/Total Loans decreased to 192% in 1Q25 [6], compared to 264% in 4Q24 [6] - NPAs decreased by $165 million, or 20% [7, 31]

RBB (RBB) reported $28.46 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 0.7%. EPS of $0.13 for the same period compares to $0.43 a year ago.The reported revenue represents a surprise of -1.11% over the Zacks Consensus Estimate of $28.78 million. With the consensus EPS estimate being $0.38, the EPS surprise was -65.79%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...

Financial Performance - The Company reported 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[4] - Noninterest income for Q1 2025 was $2.3 million, a decrease of $434,000 from Q4 2024, primarily due to lower net gain on sale of loans[11] - Noninterest expense increased to $18.5 million, up $873,000 from Q4 2024, mainly due to higher salaries and employee benefits[12] - The effective tax rate for Q1 2025 was 28.2%, up from 13.3% in Q4 2024, attributed to lower tax credits and higher estimated pre-tax net income[13] - Basic net income per share was $0.13 for the quarter, down from $0.25 in the previous quarter, a decline of 48%[36] - The return on average assets for Q1 2025 was 0.24%, down from 0.44% in Q4 2024 and 0.81% in Q1 2024[41] - Return on average tangible common equity (ROATCE) for the three months ended March 31, 2025, was 2.12%, down from 3.98% for the same period in 2024[54] Loan and Deposit Growth - Net loans held for investment grew by $89.8 million, or 12% annualized, compared to Q4 2024, with a total of $3.1 billion as of March 31, 2025[15] - Total deposits increased by $58.8 million, or 7.7% annualized, to $3.1 billion as of March 31, 2025, with interest-bearing deposits rising by $93.6 million[17] - Total loans as of March 31, 2025, increased to $3,143,063 thousand, up from $3,053,230 thousand as of December 31, 2024, representing a growth of 2.9%[49] - Total deposits reached $3,142,628 thousand as of March 31, 2025, an increase from $3,083,789 thousand as of December 31, 2024, reflecting a growth of 1.9%[51] Asset Quality - Nonperforming assets decreased by $16.5 million, or 20.3%, to $64.6 million, representing 1.61% of total assets at March 31, 2025[18] - The provision for credit losses was $6.7 million for Q1 2025, compared to $6.0 million in Q4 2024, driven by an increase in specific reserves[10] - The allowance for credit losses increased to $52.6 million, with the allowance for loan losses as a percentage of loans held for investment rising to 1.65%[22] - Nonperforming loans held for investment (HFI) were $60,380 thousand, with a ratio of 1.92% to total loans HFI[45] - The allowance for loan losses was $51,932 thousand, equating to 1.65% of total loans HFI[45] Capital and Equity - As of March 31, 2025, total shareholders' equity was $510.3 million, reflecting a $2.4 million increase from December 31, 2024, but a $3.7 million decrease from March 31, 2024[24] - The increase in shareholders' equity for Q1 2025 was attributed to lower net unrealized losses on available for sale securities of $3.0 million and net income of $2.3 million, offset by cash dividends paid of $2.9 million[24] - For the last twelve months, shareholders' equity decreased due to common stock repurchases of $19.2 million and dividends paid of $11.6 million, despite net income of $20.9 million[24] - Book value per share increased to $28.77 at March 31, 2025, up from $28.66 at December 31, 2024, and $27.67 at March 31, 2024[24] - Tangible common equity as of March 31, 2025, was $436,969 thousand, slightly up from $434,368 thousand as of December 31, 2024[53] - The common equity to assets ratio remained stable at 12.73% as of March 31, 2025, compared to 12.72% as of December 31, 2024[53] Interest and Margin - The net interest margin expanded to 2.88%, up from 2.76% in Q4 2024, due to a decrease in the overall cost of funds[8] - Net interest income before provision for credit losses was $26,163 thousand for the three months ended March 31, 2025, up from $25,977 thousand in the previous quarter, an increase of 0.72%[36] - The cost of average total deposits for Q1 2025 was 3.13%, down from 3.35% in Q4 2024[41] - Interest on loans was $45,621 thousand for the quarter, slightly down from $46,374 thousand in the previous quarter, a decrease of 1.62%[36] Operational Overview - RBB Bancorp operates primarily in Asian-centric communities across multiple states, including California, Nevada, New York, New Jersey, and Illinois[27] - The company provides a range of banking services, including commercial and industrial loans, SBA loans, and wealth management services[27] - Management will hold a conference call on April 29, 2025, to discuss Q1 2025 financial results[28] - The company utilizes non-GAAP financial measures to enhance understanding of its operational performance[31] - Forward-looking statements are subject to various risks and uncertainties that could materially affect actual results[32]

Core Viewpoint - RBB reported quarterly earnings of $0.13 per share, significantly missing the Zacks Consensus Estimate of $0.38 per share, marking a 65.79% earnings surprise to the downside [1]. Financial Performance - The company posted revenues of $28.46 million for the quarter ended March 2025, which was 1.11% below the Zacks Consensus Estimate and a slight increase from $28.25 million a year ago [2]. - Over the last four quarters, RBB has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2]. Stock Performance - RBB shares have declined approximately 22.8% since the beginning of the year, contrasting with the S&P 500's decline of 6.1% [3]. - The current Zacks Rank for RBB is 4 (Sell), indicating expectations of underperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $29.14 million, and for the current fiscal year, it is $1.60 on revenues of $118.77 million [7]. - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6]. Industry Context - The Banks - West industry, to which RBB belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges for stock performance [8].

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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-38149 RBB BANCORP (Exact name of registrant as specified in its charter) California 27-2776416 ...