RBB Bancorp

For the period ended Sep 30, 2024. Filed Nov 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.

Sep 30, 2024 · Filed Nov 8, 2024

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

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1.	CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

(Unaudited)
	September 30,	December 31,
	2024	2023
Assets
Cash and due from banks	$26,388	$22,671
Interest-earning deposits with financial institutions	323,002	408,702
Cash and cash equivalents	349,390	431,373
Interest-earning time deposits in other financial institutions	600	600
Securities:
Available for sale	305,666	318,961
Held to maturity (fair value of $5,087 and $5,097 at September 30, 2024 and December 31, 2023)	5,195	5,209
Mortgage loans held for sale	812	1,911
Loans held for investment	3,091,896	3,031,861
Allowance for loan losses	(43,685)	(41,903)
Loans held for investment, net of allowance for loan losses	3,048,211	2,989,958
Premises and equipment, net	24,839	25,684
Federal Home Loan Bank (FHLB) stock	15,000	15,000
Net deferred tax assets	15,026	15,765
Cash surrender value of bank owned life insurance (BOLI)	59,889	58,719
Goodwill	71,498	71,498
Servicing assets	7,256	8,110
Core deposit intangibles	2,194	2,795
Right-of-use assets- operating leases	29,283	29,803
Accrued interest and other assets	55,618	50,639
Total assets	$3,990,477	$4,026,025
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing demand	$543,623	$539,621
Savings, NOW and money market accounts	666,089	632,729
Time deposits $250,000 and under	1,052,462	1,190,821
Time deposits over $250,000	830,010	811,589
Total deposits	3,092,184	3,174,760
FHLB advances	200,000	150,000
Long-term debt, net of issuance costs	119,433	119,147
Subordinated debentures, net	15,102	14,938
Lease liabilities - operating leases	30,880	31,191
Accrued interest and other liabilities	23,150	24,729
Total liabilities	3,480,749	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; 17,693,416 shares issued and outstanding at September 30, 2024 and 18,609,179 shares issued and outstanding at December 31, 2023	259,280	271,925
Additional paid-in capital	3,520	3,623
Retained earnings	262,946	255,152
Non-controlling interest	72	72
Accumulated other comprehensive loss, net	(16,090)	(19,512)
Total shareholders’ equity	509,728	511,260
Total liabilities and shareholders’ equity	$3,990,477	$4,026,025

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

(In thousands, except per share amounts)

Three Months Ended · Nine Months Ended September 30,
	September 30, 2024	June 30, 2024	September 30, 2023	2024	2023
Interest and dividend income:
Interest and fees on loans	$47,326	$45,320	$47,617	$138,193	$148,369
Interest on interest-earning deposits	3,388	3,353	3,193	11,781	6,096
Interest on investment securities	3,127	3,631	4,211	10,369	10,321
Dividend income on FHLB stock	326	327	290	984	814
Interest on federal funds sold and other	258	255	252	779	716
Total interest and dividend income	54,425	52,886	55,563	162,106	166,316
Interest expense:
Interest on savings deposits, NOW and money market accounts	5,193	4,953	3,106	14,624	8,180
Interest on time deposits	22,553	21,850	21,849	67,725	54,424
Interest on long-term debt and subordinated debentures	1,681	1,679	2,579	5,039	7,668
Interest on other borrowed funds	453	439	440	1,331	2,428
Total interest expense	29,880	28,921	27,974	88,719	72,700
Net interest income before provision for credit losses	24,545	23,965	27,589	73,387	93,616
Provision for credit losses	3,300	557	1,399	3,857	3,793
Net interest income after provision for credit losses	21,245	23,408	26,190	69,530	89,823
Noninterest income:
Service charges and fees	1,071	1,064	1,057	3,127	3,200
Gain on sale of loans	447	451	212	1,210	258
Loan servicing income, net of amortization	605	579	623	1,773	1,959
Increase in cash surrender value of life insurance	403	385	356	1,170	1,036
Gain on other real estate owned	—	292	190	1,016	190
Other income	3,220	717	332	4,310	982
Total noninterest income	5,746	3,488	2,770	12,606	7,625
Noninterest expense:
Salaries and employee benefits	10,008	9,533	9,744	29,468	28,935
Occupancy and equipment expenses	2,518	2,439	2,414	7,400	7,242
Data processing	1,472	1,466	1,315	4,358	3,969
Legal and professional	958	1,260	1,022	3,098	6,907
Office expenses	348	352	437	1,056	1,163
Marketing and business promotion	252	189	340	613	892
Insurance and regulatory assessments	658	981	730	2,621	2,043
Core deposit intangible	200	201	236	602	708
Other expenses	1,007	703	638	2,298	2,445
Total noninterest expense	17,421	17,124	16,876	51,514	54,304
Net income before income taxes	9,570	9,772	12,084	30,622	43,144
Income tax expense	2,571	2,527	3,611	8,342	12,752
Net income	$6,999	$7,245	$8,473	$22,280	$30,392
Net income per share
Basic	$0.39	$0.39	$0.45	$1.22	$1.60
Diluted	$0.39	$0.39	$0.45	$1.22	$1.60
Weighted-average common shares outstanding
Basic	17,812,791	18,375,970	18,995,303	18,261,702	18,991,579
Diluted	17,885,359	18,406,897	18,997,304	18,313,086	19,013,838

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

(In thousands)

Three Months Ended · Nine Months Ended
	September 30, 2024	June 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Net income	$6,999	$7,245	$8,473	$22,280	$30,392
Other comprehensive income/(loss):
Unrealized gain/(loss) on securities available for sale	6,936	43	(4,824)	4,894	(5,838)
Related income tax effect	(2,111)	24	1,468	(1,472)	1,742
Total other comprehensive income/(loss)	4,825	67	(3,356)	3,422	(4,096)
Total comprehensive income	$11,824	$7,312	$5,117	$25,702	$26,296

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

(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 June 30, 2024	18,182,154	$266,160	$3,456	$262,518	$72	$(20,915)	$511,291
Net income	—	—	—	6,999	—	—	6,999
Stock-based compensation, net	—	—	264	—	—	—	264
Restricted stock units vested	3,537	79	(123)	—	—	—	(44)
Cash dividends on common stock ($0.16 per share)	—	—	—	(2,871)	—	—	(2,871)
Stock options exercised	16,000	384	(77)	—	—	—	307
Repurchase of common stock	(508,275)	(7,343)	—	(3,700)	—	—	(11,043)
Other comprehensive income, net of taxes	—	—	—	—	—	4,825	4,825
Balance at September 30, 2024	17,693,416	$259,280	$3,520	$262,946	$72	$(16,090)	$509,728
Balance at June 30, 2023	18,995,303	$277,508	$3,390	$241,725	$72	$(22,405)	$500,290
Net income	—	—	—	8,473	—	—	8,473
Stock-based compensation, net	—	—	143	—	—	—	143
Cash dividends on common stock ($0.16 per share)	—	—	—	(3,039)	—	—	(3,039)
Other comprehensive loss, net of taxes	—	—	—	—	—	(3,356)	(3,356)
Balance at September 30, 2023	18,995,303	$277,508	$3,533	$247,159	$72	$(25,761)	$502,511

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	—	—	—	22,280	—	—	22,280
Stock-based compensation, net	—	—	1,092	—	—	—	1,092
Restricted stock units vested	35,737	672	(780)	—	—	—	(108)
Cash dividends on common stock ($0.48 per share)	—	—	—	(8,857)	—	—	(8,857)
Stock options exercised	85,250	1,721	(415)	—	—	—	1,306
Repurchase of common stock	(1,036,750)	(15,038)	—	(5,629)	—	—	(20,667)
Other comprehensive income, net of taxes	—	—	—	—	—	3,422	3,422
Balance at September 30, 2024	17,693,416	$259,280	$3,520	$262,946	$72	$(16,090)	$509,728
Balance at January 1, 2023	18,965,776	$276,912	$3,361	$225,883	$72	$(21,665)	$484,563
Net income	—	—	—	30,392	—	—	30,392
Stock-based compensation, net	—	—	609	—	—	—	609
Restricted stock units vested	20,374	391	(391)	—	—	—	—
Cash dividends on common stock ($0.48 per share)	—	—	—	(9,116)	—	—	(9,116)
Stock options exercised	9,153	205	(46)	—	—	—	159
Other comprehensive loss, net of taxes	—	—	—	—	—	(4,096)	(4,096)
Balance at September 30, 2023	18,995,303	$277,508	$3,533	$247,159	$72	$(25,761)	$502,511

CONSOLIDATED STATEMENTS OF CASH FLOWS – (UNAUDITED)

(In thousands)

	Nine Months Ended
	September 30,
	2024	2023
Operating activities
Net income	$22,280	$30,392
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of premises and equipment	1,424	1,520
Net accretion of securities, loans, deposits, and other	(3,617)	(4,257)
Amortization of investment in affordable housing tax credits	969	846
Amortization of intangible assets	1,735	1,976
Amortization of right-of-use asset	3,749	3,765
Change in operating lease liabilities	(3,540)	(3,525)
Provision for credit losses	3,857	3,793
Stock-based compensation	1,092	609
Deferred tax (benefit) expense	(733)	395
Gain on sale of loans	(1,210)	(258)
Gain on sale and transfer of OREO	(1,016)	(190)
Gain on sale of fixed assets	—	(32)
Increase in cash surrender value of life insurance	(1,170)	(1,036)
Loans originated and purchased for sale, net	(26,302)	(10,236)
Proceeds from loans sold	49,996	14,626
Other items	(6,493)	21,716
Net cash provided by operating activities	41,021	60,104
Investing activities
Securities available for sale:
Purchases	(259,383)	(592,177)
Maturities, repayments and calls	280,247	493,220
Securities held to maturity:
Maturities, repayments and calls	—	500
Net decrease (increase) in other equity securities	343	(378)
Net increase of investment in qualified affordable housing projects	(1,540)	(72)
Net (increase) decrease in loans	(84,072)	188,856
Proceeds from sales of OREO	2,936	483
Proceeds from sale of fixed assets	—	32
Purchases of premises and equipment	(555)	(614)
Net cash (used in) provided by investing activities	(62,024)	89,850
Financing activities
Net increase (decrease) in demand deposits and savings accounts	37,362	(233,667)
Net (decrease) increase in time deposits	(120,016)	409,913
Proceeds from FHLB advances	50,000	80,000
Repayments of FHLB Advances	—	(150,000)
Cash dividends paid	(8,857)	(9,116)
Restricted stock units vesting	(108)	—
Common stock repurchased, net of repurchase costs	(20,667)	—
Exercise of stock options	1,306	159
Net cash (used in) provided by financing activities	(60,980)	97,289
Net (decrease) increase in cash and cash equivalents	(81,983)	247,243
Cash and cash equivalents at beginning of period	431,373	83,548
Cash and cash equivalents at end of period	$349,390	$330,791
Supplemental disclosure of cash flow information
Cash paid during the period:
Interest paid	$94,328	$64,936
Taxes paid	4,831	2,829
Non-cash investing and financing activities:
Transfer from loans to other real estate owned	1,920	—
Loans transfer to held for sale, net	20,094	4,194
Additions to servicing assets	280	186
Net change in unrealized holding gain on securities available for sale	4,894	(5,838)
Recognition of operating lease right-of-use assets	(3,229)	(8,267)
Recognition of operating lease liabilities	3,229	8,267

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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.