RBB Bancorp Releases Q3 10-Q Report Highlighting Financial and Operational Performance
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RBB Bancorp, a financial institution primarily serving Asian-centric communities through its 24 full-service branches across various regions in the United States, has released its Form 10-Q report for the third quarter. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting both challenges and strategic initiatives.
Financial Highlights
- Total Interest and Dividend Income: $52.336 million, reflecting a decrease from the previous quarter due to lower interest on interest-earning deposits.
- Total Interest Expense: $26.173 million, showing a reduction compared to the previous quarter, primarily due to decreased interest on time deposits.
- Net Interest Income Before Provision for Credit Losses: $26.163 million, indicating a slight increase from the previous quarter.
- Provision for Credit Losses: $6.746 million, reflecting an increase in provisions compared to the previous quarter.
- Net Interest Income After Provision for Credit Losses: $19.417 million, showing a decrease due to higher provisions for credit losses.
- Total Noninterest Income: $2.295 million, decreased from the previous quarter, impacted by lower gains on the sale of loans.
- Total Noninterest Expense: $18.522 million, increased from the previous quarter, driven by higher salaries and employee benefits.
- Net Income Before Income Taxes: $3.190 million, significantly lower than the previous quarter due to increased noninterest expenses and provisions for credit losses.
- Income Tax Expense: $0.900 million, resulting in an effective tax rate of 28.2%.
- Net Income: $2.290 million, a decrease from the previous quarter, reflecting higher expenses and provisions.
- Basic Net Income Per Share: $0.13, down from the previous quarter.
- Diluted Net Income Per Share: $0.13, consistent with basic earnings per share.
Business Highlights
- Revenue Segments: RBB Bancorp generates revenue primarily from interest received on loans, with additional income from investment securities and noninterest sources such as fees from lending and deposit services, loan servicing, and wealth management services.
- Geographical Performance: The company operates 24 full-service branches across various regions including Los Angeles County, Orange County, Ventura County in California, Las Vegas (Nevada), New York City metropolitan areas, Chicago (Illinois), Edison (New Jersey), and Honolulu (Hawaii), predominantly serving Asian-centric communities.
- Sales Units: The loan portfolio consists mainly of real estate loans, including construction and land development, commercial real estate, and single-family residential mortgages. The company also offers commercial and industrial loans, SBA loans, and other loan types.
- Future Outlook: RBB Bancorp intends to maintain its designation as a Minority Depository Institution (MDI) and Community Development Financial Institution (CDFI), which has historically been beneficial. The company plans to continue leveraging these designations for technical assistance and support low-to-moderate income individuals through its CDFI advisory board.