RBB Bancorp (RBB) investor relations material

Executive summary

• Net income was $12.6 million, or $0.74 per diluted share, up 25% QoQ and YoY; ROAA improved to 1.17%.

• Results benefited from higher net interest income, loan growth, retail deposit gains and improving credit quality; a $2.7 million office-sale gain contributed $0.12 per diluted share.

Financial highlights

• Net interest income was $31.8 million, up 6% QoQ and 8% YoY; pre-tax, pre-provision income was $17.3 million, up 23% QoQ and 25% YoY.

• Noninterest income was $5.1 million, including a $2.7 million pre-tax Brooklyn office-sale gain; noninterest expense was $19.5 million.

• Provision for credit losses was $500,000, versus none in Q2; net charge-offs were $122,000, or 1 bp of average loans annualized.

• Nine-month net income was $34.1 million versus $21.8 million; diluted EPS was $1.99 versus $1.24.

• Total deposits were $3.395 billion, up 1% QoQ and YoY; retail deposits rose $63.3 million as wholesale deposits fell $58.7 million QoQ.

Segment performance

• HFI loans grew $90 million, or 11% annualized QoQ, and were up 3% YoY; Q3 originations totaled $154.0 million at a 6.30% yield.

• Portfolio mix was 52% SFR, 38% CRE, 5% C&D, 4% C&I and 1% SBA; 52% of loans were variable rate.

• SFR mortgage balances rose $80.7 million QoQ; average weighted LTV was 54%, with over 96% of loans below 70% LTV.

• CRE loans totaled $1.28 billion, including 49.5% multifamily; average LTVs were 46% for office and 56% for multifamily.