In This Article:
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Net Income: $4.4 million or $0.25 per share.
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Net Interest Margin (NIM): Increased by 8 basis points to 2.76%.
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Loan Production: $126 million in the fourth quarter.
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Non-Interest Income: $2.7 million in the fourth quarter.
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Non-Interest Expenses: Increased by $297,000 to $17.6 million.
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Provision for Credit Losses: $6 million, up from $3.3 million in the prior quarter.
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Non-Performing Assets: Totaled $81 million or 2% of total assets.
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Total Deposits: Stable at $3.1 billion.
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Allowance for Loan Losses to Total Loans: Increased by 15 basis points to 1.56%.
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Tangible Book Value per Share: Decreased slightly to $24.51.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RBB Bancorp (NASDAQ:RBB) reported a net interest margin increase of eight basis points, primarily due to a decline in the cost of interest-bearing deposits.
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The bank achieved $126 million in loan production during the fourth quarter, maintaining a healthy pipeline for future growth.
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RBB Bancorp (NASDAQ:RBB) saw a $20 million increase in non-interest-bearing deposits, indicating strong deposit growth in this category.
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The company has a strong capital position with all capital ratios above regulatory well-capitalized levels.
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RBB Bancorp (NASDAQ:RBB) is actively involved in community support, donating $30,000 to assist families affected by Southern California wildfires.
Negative Points
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Fourth quarter net income decreased to $4.4 million, primarily due to credit issues.
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Non-performing assets increased to $81 million, representing 2% of total assets, with a significant portion attributed to a $26 million loan moving to nonaccrual status.
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The provision for credit losses rose to $6 million, reflecting challenges in credit quality.
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Loan balances declined by $28 million in the fourth quarter, partly due to high levels of paydowns and refinancing by competitors.
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The overall loan portfolio yield decreased by 10 basis points, impacted by lower yields in the commercial real estate loan segment.
Q & A Highlights
Q: Can you provide more details on the $26 million C&D loan that moved to non-accrual status? A: The project is over 50% complete, with $26.5 million outstanding. We have taken a $4.5 million specific reserve to estimate its fair value. (Rebeca Rico, Financial Analyst)
Q: What are your thoughts on capital allocation, particularly regarding stock buybacks? A: We completed a million share buyback in 2024 and are interested in considering another buyback in 2025, focusing on credit in the last quarter. (Rebeca Rico, Financial Analyst)