RBB Bancorp

For the period ended Jun 30, 2024. Filed Aug 8, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 8, 2024

RBB$26.09+0.2%Stored close · as of Nov 10, 2026

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Contents

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1.	CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

** JUNE 30, 2024**** AND DECEMBER 31, 2023**

(In thousands, except share amounts)

(Unaudited)
	June 30,	December 31,
	2024	2023
Assets
Cash and due from banks	$23,313	$22,671
Interest-earning deposits with financial institutions	229,456	408,702
Cash and cash equivalents	252,769	431,373
Interest-earning time deposits in other financial institutions	600	600
Securities:
Available for sale	325,582	318,961
Held to maturity (fair value of $4,928 and $5,097 at June 30, 2024 and December 31, 2023)	5,200	5,209
Mortgage loans held for sale	3,146	1,911
Loans held for investment	3,047,067	3,031,319
Unaccreted discount on acquired loans	(866)	(970)
Deferred loan costs, net	1,511	1,512
Total loans held for investment, net of deferred loan costs and unaccreted discounts on acquired loans	3,047,712	3,031,861
Allowance for loan losses	(41,741)	(41,903)
Total loans held for investment, net	3,005,971	2,989,958
Premises and equipment, net	25,049	25,684
Federal Home Loan Bank (FHLB) stock	15,000	15,000
Net deferred tax assets	16,577	15,765
Cash surrender value of bank owned life insurance (BOLI)	59,486	58,719
Goodwill	71,498	71,498
Servicing assets	7,545	8,110
Core deposit intangibles	2,394	2,795
Right-of-use assets- operating leases	30,530	29,803
Accrued interest and other assets	46,839	50,639
Total assets	$3,868,186	$4,026,025
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing demand	$542,971	$539,621
Savings, NOW and money market accounts	647,770	632,729
Time deposits $250,000 and under	1,014,189	1,190,821
Time deposits over $250,000	818,675	811,589
Total deposits	3,023,605	3,174,760
Reserve for unfunded commitments	624	640
FHLB advances	150,000	150,000
Long-term debt, net of issuance costs	119,338	119,147
Subordinated debentures, net	15,047	14,938
Lease liabilities - operating leases	32,087	31,191
Accrued interest and other liabilities	16,194	24,089
Total liabilities	3,356,895	3,514,765
Shareholders' equity:
Preferred Stock - 100,000,000 shares authorized, no par value; none outstanding	—	—
Common Stock - 100,000,000 shares authorized, no par value; 18,182,154 shares issued and outstanding at June 30, 2024 and 18,609,179 shares issued and outstanding at December 31, 2023	266,160	271,925
Additional paid-in capital	3,456	3,623
Retained earnings	262,518	255,152
Non-controlling interest	72	72
Accumulated other comprehensive loss, net	(20,915)	(19,512)
Total shareholders’ equity	511,291	511,260
Total liabilities and shareholders’ equity	$3,868,186	$4,026,025

CONSOLIDATED STATEMENTS OF INCOME–** (UNAUDITED)**

FOR THE THREE MONTHS ENDED JUNE 30, 2024, MARCH 31, 2024, AND JUNE 30, 2023 AND THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(In thousands, except per share amounts)

Three Months Ended · Six Months Ended June 30,
	June 30, 2024	March 31, 2024	June 30, 2023	2024	2023
Interest and dividend income:
Interest and fees on loans	$45,320	$45,547	$50,810	$90,867	$100,752
Interest on interest-earning deposits	3,353	5,040	2,112	8,393	2,903
Interest on investment securities	3,631	3,611	3,574	7,242	6,110
Dividend income on FHLB stock	327	331	259	658	524
Interest on federal funds sold and other	255	266	247	521	464
Total interest and dividend income	52,886	54,795	57,002	107,681	110,753
Interest expense:
Interest on savings deposits, NOW and money market accounts	4,953	4,478	2,778	9,431	5,074
Interest on time deposits	21,850	23,322	19,169	45,172	32,575
Interest on long-term debt and subordinated debentures	1,679	1,679	2,550	3,358	5,089
Interest on other borrowed funds	439	439	579	878	1,988
Total interest expense	28,921	29,918	25,076	58,839	44,726
Net interest income before provision for credit losses	23,965	24,877	31,926	48,842	66,027
Provision for credit losses	557	—	380	557	2,394
Net interest income after provision for credit losses	23,408	24,877	31,546	48,285	63,633
Noninterest income:
Service charges and fees	1,064	992	1,120	2,056	2,143
Gain on sale of loans	451	312	18	763	47
Loan servicing income, net of amortization	579	589	606	1,168	1,337
Increase in cash surrender value of life insurance	385	382	344	767	679
Gain on other real estate owned	292	724	—	1,016	—
Other income	717	373	405	1,090	649
Total noninterest income	3,488	3,372	2,493	6,860	4,855
Noninterest expense:
Salaries and employee benefits	9,533	9,927	9,327	19,460	19,191
Occupancy and equipment expenses	2,439	2,443	2,430	4,882	4,828
Data processing	1,466	1,420	1,356	2,886	2,655
Legal and professional	1,260	880	2,872	2,140	5,885
Office expenses	352	356	350	708	725
Marketing and business promotion	189	172	252	361	552
Insurance and regulatory assessments	981	982	809	1,963	1,313
Core deposit premium	201	201	235	402	472
Other expenses	703	588	886	1,291	1,807
Total noninterest expense	17,124	16,969	18,517	34,093	37,428
Net income before income taxes	9,772	11,280	15,522	21,052	31,060
Income tax expense	2,527	3,244	4,573	5,771	9,141
Net income	$7,245	$8,036	$10,949	$15,281	$21,919
Net income per share
Basic	$0.39	$0.43	$0.58	$0.83	$1.15
Diluted	0.39	0.43	0.58	0.82	1.15
Weighted-average common shares outstanding
Basic	18,375,970	18,601,277	18,993,483	18,488,623	18,989,686
Diluted	18,406,897	18,651,702	18,995,100	18,529,299	19,022,242

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME–** (UNAUDITED)**

FOR THE THREE MONTHS ENDED JUNE 30, 2024, MARCH 31, 2024, AND JUNE 30, 2023, AND THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(In thousands)

Three Months Ended · Six Months Ended
	June 30, 2024	March 31, 2024	June 30, 2023	June 30, 2024	June 30, 2023
Net income	$7,245	$8,036	$10,949	$15,281	$21,919
Other comprehensive income/(loss):
Unrealized gain/(loss) on securities available for sale	43	(2,085)	(3,591)	(2,042)	(1,014)
Related income tax effect	24	615	1,064	639	274
Total other comprehensive income/(loss)	67	(1,470)	(2,527)	(1,403)	(740)
Total comprehensive income	$7,312	$6,566	$8,422	$13,878	$21,179

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’** EQUITY**–** (UNAUDITED)**

FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(In thousands, except share amounts)

Common Stock · Accumulated
	Shares	Amount	Additional Paid-in Capital	Retained Earnings	Non- Controlling Interest	Other Comprehensive Loss, net	Total
Balance at March 31, 2024	18,578,132	$271,645	$3,348	$259,903	$72	$(20,982)	$513,986
Net income	—	—	—	7,245	—	—	7,245
Stock-based compensation, net	—	—	688	—	—	—	688
Restricted stock units vested	23,962	448	(448)	—	—	—	—
Cash dividends on common stock ($0.16 per share)	—	—	—	(3,010)	—	—	(3,010)
Stock options exercised	28,250	590	(132)	—	—	—	458
Repurchase of common stock	(448,190)	(6,523)	—	(1,620)	—	—	(8,143)
Other comprehensive income, net of taxes	—	—	—	—	—	67	67
Balance at June 30, 2024	18,182,154	$266,160	$3,456	$262,518	$72	$(20,915)	$511,291
Balance at March 31, 2023	18,992,903	$277,478	$3,270	$233,815	$72	$(19,878)	$494,757
Net income	—	—	—	10,949	—	—	10,949
Stock-based compensation, net	—	—	150	—	—	—	150
Restricted stock units vested	2,400	30	(30)	—	—	—	—
Cash dividends on common stock ($0.16 per share)	—	—	—	(3,039)	—	—	(3,039)
Other comprehensive loss, net of taxes	—	—	—	—	—	(2,527)	(2,527)
Balance at June 30, 2023	18,995,303	$277,508	$3,390	$241,725	$72	$(22,405)	$500,290

Common Stock · Accumulated
	Shares	Amount	Additional Paid-in Capital	Retained Earnings	Non- Controlling Interest	Other Comprehensive Loss, net	Total
Balance at January 1, 2024	18,609,179	$271,925	$3,623	$255,152	$72	$(19,512)	$511,260
Net income	—	—	—	15,281	—	—	15,281
Stock-based compensation, net	—	—	828	—	—	—	828
Restricted stock units vested	32,200	593	(657)	—	—	—	(64)
Cash dividends on common stock ($0.32 per share)	—	—	—	(5,986)	—	—	(5,986)
Stock options exercised	69,250	1,337	(338)	—	—	—	999
Repurchase of common stock	(528,475)	(7,695)	—	(1,929)	—	—	(9,624)
Other comprehensive loss, net of taxes	—	—	—	—	—	(1,403)	(1,403)
Balance at June 30, 2024	18,182,154	$266,160	$3,456	$262,518	$72	$(20,915)	$511,291
Balance at January 1, 2023	18,965,776	$276,912	$3,361	$225,883	$72	$(21,665)	$484,563
Net income	—	—	—	21,919	—	—	21,919
Stock-based compensation, net	—	—	466	—	—	—	466
Restricted stock units vested	20,374	391	(391)	—	—	—	—
Cash dividends on common stock ($0.32 per share)	—	—	—	(6,077)	—	—	(6,077)
Stock options exercised	9,153	205	(46)	—	—	—	159
Other comprehensive loss, net of taxes	—	—	—	—	—	(740)	(740)
Balance at June 30, 2023	18,995,303	$277,508	$3,390	$241,725	$72	$(22,405)	$500,290

CONSOLIDATED STATEMENTS OF CASH FLOWS – (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(In thousands)

	Six Months Ended
	June 30,
	2024	2023
Operating activities
Net income	$15,281	$21,919
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of premises and equipment	951	1,019
Net accretion of securities, loans, deposits, and other	(2,890)	(2,470)
Amortization of investment in affordable housing tax credits	602	564
Amortization of intangible assets	1,173	1,319
Amortization of right-of-use asset	2,494	2,541
Change in operating lease liabilities	(2,325)	(2,379)
Provision for credit losses	557	2,394
Stock-based compensation	828	466
Deferred tax (benefit) expense	(173)	395
Gain on sale of loans	(763)	(47)
Gain on sale and transfer of OREO	(1,016)	—
Increase in cash surrender value of life insurance	(767)	(679)
Loans originated and purchased for sale, net	(20,332)	(2,759)
Proceeds from loans sold	27,758	2,382
Other items	(4,857)	10,161
Net cash provided by operating activities	16,521	34,826
Investing activities
Securities available for sale:
Purchases	(222,220)	(376,015)
Maturities, repayments and calls	215,711	243,115
Net decrease (increase) in other equity securities	393	(341)
Net increase of investment in qualified affordable housing projects	(251)	(71)
Net (increase) decrease in loans	(25,509)	140,124
Proceeds from sales of OREO	2,936	—
Purchases of premises and equipment	(298)	(589)
Net cash (used in) provided by investing activities	(29,238)	6,223
Financing activities
Net increase (decrease) in demand deposits and savings accounts	18,391	(229,788)
Net (decrease) increase in time deposits	(169,603)	427,434
Proceeds from FHLB advances	—	80,000
Repayments of FHLB Advances	—	(150,000)
Cash dividends paid	(5,986)	(6,077)
Restricted stock units vesting	(64)	—
Common stock repurchased, net of repurchased costs	(9,624)	—
Exercise of stock options	999	159
Net cash (used in) provided by financing activities	(165,887)	121,728
Net (decrease) increase in cash and cash equivalents	(178,604)	162,777
Cash and cash equivalents at beginning of period	431,373	83,548
Cash and cash equivalents at end of period	$252,769	$246,325
Supplemental disclosure of cash flow information
Cash paid during the period:
Interest paid	$64,426	$41,115
Taxes paid	3,771	2,304
Non-cash investing and financing activities:
Transfer from loans to other real estate owned	1,920	—
Loans transfer to held for sale, net	7,898	132
Additions to servicing assets	207	28
Net change in unrealized holding gain on securities available for sale	(2,042)	(1,014)
Recognition of operating lease right-of-use assets	(3,221)	(5,771)
Recognition of operating lease liabilities	3,221	5,771

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.