Core Insights - RBB Bancorp reported a strong financial performance for the fourth quarter of 2025, with net income of $10.2 million, or $0.59 per diluted share, matching the prior quarter and more than doubling year-ago results [4][7] - The bank experienced a 13% increase in net interest income for the full year, reaching $112 million, supported by loan growth and a decline in funding costs [1] - Management highlighted a significant improvement in asset quality, with non-performing loans decreasing by 45% and non-performing assets falling by 34% [6][15] Financial Performance - Fourth-quarter pre-tax, pre-provision income was $2.3 million, up 21% from the fourth quarter of 2024, with net interest margin improving to 2.99% [3][7] - Deposits rose 8.6% year-over-year, with a notable increase in interest-bearing non-maturity deposits, which supported loan growth [5][11] - The bank's tangible book value increased by 7.8% to $26.42, and over $25 million was returned to shareholders through dividends and share repurchases [5][20] Loan Growth and Credit Quality - Loans grew by 8.6% in 2025, with originations totaling $713 million, a 32% increase from 2024 [6][8] - The bank's loan pipeline remains healthy, and management expects continued high single-digit growth in 2026 [8] - Credit quality improved significantly, with management noting that 90% of non-performing loans are concentrated in four relationships, three of which are making payments under agreements [16] Deposits and Funding Costs - The average rate on interest-bearing deposits declined by 55 basis points from the fourth quarter of 2024, but competition for deposits has increased [12][14] - Management expects some repricing opportunities as a significant portion of the bank's CDs mature within the next 12 months [14] - Total deposits declined in the fourth quarter due to a decrease in brokered deposits, partially offset by an increase in retail deposits [13] Expenses and Capital Management - Non-interest income declined by $486,000 sequentially, while non-interest expenses rose by $282,000 due to year-end accruals [17][18] - The effective tax rate fell by 330 basis points compared to the third quarter, with expectations for an effective tax rate between 27% and 28% for 2026 [19] - The company is evaluating its capital structure, including potential changes to its subordinated debt and increased share repurchases after addressing debt structure [21][22]

Core Insights - Capital Bank, N.A. is expanding its Small Business Administration (SBA) team to enhance its capabilities in small business lending and grow its national presence [1] Group 1: Leadership and Team Expansion - Kirk Beason has been appointed as the Head of SBA, bringing over 20 years of experience in managing government-guaranteed lending programs and known for improving credit discipline and portfolio performance [2] - Heidi Whitesell joins as SBA Sales Executive, recognized for her extensive experience in building national sales teams and previously serving as President and COO of a national SBA lender [3] - Ninel Struzska, with over 25 years of SBA and commercial credit experience, has been appointed as Senior Credit Officer to strengthen lending decision-making [4] - Raquel Zippilli is joining as SBA Relationship Liaison to support due diligence and coordination across SBA loan programs [4] Group 2: Strategic Intent and Company Background - The expansion is described as a deliberate investment in the future of Capital Bank's SBA business, aiming to better serve entrepreneurs with enhanced speed and insight [5] - Capital Bancorp, Inc. operates bank branches in seven locations and had assets of approximately $3.4 billion as of September 30, 2025 [5]