RBB Bancorp (RBB) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $7.2 million ($0.39 per share), down from $8.0 million ($0.43 per share) in Q1 2024 and $11.0 million in Q2 2023.

• Book value per share increased to $28.12 and tangible book value per share to $24.06 at June 30, 2024.

• Repurchased 448,190 shares for $8.1 million in Q2 2024; 508,275 shares remain under authorization.

• Modest net loan growth of $15.9 million to $3.0 billion, driven by CRE and construction loans.

• Deposits declined $151.2 million to $3.0 billion, reflecting a shift from wholesale to retail deposits.

Financial highlights

• Net interest income was $24.0 million, down $912,000 sequentially, with net interest margin declining to 2.67%.

• Noninterest income rose to $3.5 million, driven by equity investment and loan sale gains.

• Noninterest expense was $17.1 million, stable sequentially but down from $18.5 million in Q2 2023.

• Efficiency ratio increased to 62.38% in Q2 2024.

• Provision for credit losses was $557,000 in Q2 2024, with net charge-offs of $551,000.

Outlook and guidance

• Management expects net interest margin to expand in Q3 and Q4, assuming no further large non-accruals.

• Loan growth is expected to be low to mid single digits for the year, with stronger growth in the second half.

• Focus remains on asset quality, capital strength, and managing credit quality amid economic and regulatory headwinds.

• Noninterest expenses are expected to remain stable for the remainder of the year.