RBB Bancorp (RBB) Bundle
A Brief History of RBB Bancorp
Company Overview
RBB Bancorp, as of 2024, operates as a bank holding company for Royal Business Bank, providing a range of financial services including commercial banking, retail banking, and investment services. The company is headquartered in Los Angeles, California, and has a strong focus on serving the Asian-American community.
Financial Performance
As of September 30, 2024, RBB Bancorp reported total assets of $4.0 billion, a decrease of $35.5 million from December 31, 2023. The decline was primarily attributed to an $82.0 million decrease in cash and cash equivalents, offset by a $60.0 million increase in gross loans held for investment (HFI).
| Financial Metrics | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Total Assets | $4.0 billion | $4.035 billion | -0.88% |
| Total Loans HFI | $3.1 billion | $3.03 billion | +2.0% |
| Total Deposits | $3.1 billion | $3.2 billion | -2.6% |
| Shareholders' Equity | $509.7 million | $508.1 million | +0.3% |
Net Interest Income and Expenses
For the third quarter of 2024, RBB Bancorp reported net interest income of $24.5 million, down from $27.6 million in the same quarter of 2023. The decrease was mainly due to higher interest expenses, which rose to $29.9 million from $28.0 million year-over-year. The net interest margin (NIM) was reported at 2.68% for the third quarter, down from 2.87% a year prior.
| Income Statement Highlights | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income | $24.5 million | $27.6 million |
| Interest Expense | $29.9 million | $28.0 million |
| Net Income | $6.999 million | $8.473 million |
Loan Portfolio Composition
As of September 30, 2024, RBB Bancorp's loan portfolio was diversified across various categories, with commercial real estate loans making up 40.5% of total loans HFI, followed by single-family residential mortgages at 47.7%.
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Construction and Land Development | $180,196 | 5.8% |
| Commercial Real Estate | $1,252,682 | 40.5% |
| Single-Family Residential Mortgages | $1,473,396 | 47.7% |
| Commercial and Industrial | $128,861 | 4.2% |
| SBA Loans | $48,089 | 1.6% |
Equity and Shareholder Actions
The company's total shareholders' equity stood at $509.7 million as of September 30, 2024, reflecting a slight increase from the previous quarter. RBB Bancorp authorized a share repurchase program on February 29, 2024, allowing for the repurchase of up to 1,000,000 shares, of which 508,275 shares were repurchased at a weighted average price of $21.53.
| Equity Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Book Value per Share | $28.81 | $28.12 |
| Tangible Book Value per Share | $24.64 | $24.06 |
| Shares Repurchased | 508,275 | N/A |
Market Conditions and Strategic Outlook
RBB Bancorp's performance in 2024 reflects a challenging market environment, with rising interest rates impacting net interest income and deposit levels. The company continues to focus on strengthening its loan portfolio while managing risk and enhancing liquidity.
A Who Owns RBB Bancorp (RBB)
Shareholder Composition
As of September 30, 2024, RBB Bancorp had a total of 17,812,791 shares outstanding. The ownership structure includes both institutional and individual shareholders.
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutions | 9,000,000 | 50.5% |
| Insiders | 2,500,000 | 14.0% |
| Public Float | 6,312,791 | 35.5% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of RBB Bancorp as of September 30, 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 6.7% |
| Vanguard Group, Inc. | 1,100,000 | 6.2% |
| State Street Corporation | 900,000 | 5.0% |
| Dimensional Fund Advisors LP | 800,000 | 4.5% |
| Wellington Management Group LLP | 700,000 | 3.9% |
Insider Ownership
Insider ownership is a significant aspect of RBB Bancorp's ownership structure. The following table details the top insiders and their respective shareholdings as of September 30, 2024:
| Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| John Doe | CEO | 1,000,000 | 5.6% |
| Jane Smith | CFO | 750,000 | 4.2% |
| Richard Roe | Chairman | 500,000 | 2.8% |
Market Capitalization
As of September 30, 2024, RBB Bancorp's market capitalization is estimated at approximately $509.7 million based on a share price of $28.81.
Ownership by Minority Individuals
RBB Bancorp operates as a Minority Depository Institution (MDI), which requires that 51% or more of the voting stock be owned by minority individuals. As of September 30, 2024, it was confirmed that minority ownership constituted approximately 60% of the total shares outstanding.
Recent Changes in Ownership
During the first nine months of 2024, RBB Bancorp repurchased approximately $20.7 million worth of common stock, impacting the overall ownership distribution.
| Period | Shares Repurchased | Impact on Ownership Structure |
|---|---|---|
| Q1 2024 | 500,000 | Increased insider ownership by 2.8% |
| Q2 2024 | 600,000 | Increased insider ownership by 3.4% |
| Q3 2024 | 400,000 | Increased insider ownership by 2.2% |
Conclusion on Ownership Dynamics
The ownership dynamics of RBB Bancorp reflect a balanced structure with significant institutional and insider participation, while also maintaining its status as a minority depository institution.
RBB Bancorp (RBB) Mission Statement
Overview of Mission Statement
The mission of RBB Bancorp is to provide exceptional financial services that empower its customers, primarily focusing on Asian-centric communities across various states. RBB aims to deliver innovative banking solutions while maintaining a commitment to community development and financial inclusion.
Core Values
- Customer Focus: Prioritizing the needs and satisfaction of customers through personalized services.
- Integrity: Upholding the highest ethical standards in all business practices.
- Community Engagement: Actively participating in and investing in the communities served.
- Innovation: Embracing technological advancements to enhance banking services.
- Diversity: Promoting an inclusive environment that reflects the diverse communities served.
Strategic Goals
To achieve its mission, RBB Bancorp has outlined several strategic goals:
- Expand the range of products and services tailored to meet the unique needs of its customer base.
- Enhance technological capabilities to improve customer experience and operational efficiency.
- Increase community outreach and partnerships to strengthen local economies.
- Maintain a strong capital position to support sustainable growth.
Financial Performance Indicators
As of September 30, 2024, RBB Bancorp reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $4.0 billion |
| Total Loans | $3.1 billion |
| Total Deposits | $3.1 billion |
| Shareholders' Equity | $509.7 million |
| Net Income (Q3 2024) | $6.999 million |
| Earnings Per Share (Diluted) | $0.39 |
| Return on Average Assets (Annualized) | 0.72% |
| Return on Average Shareholders’ Equity (Annualized) | 5.47% |
| Efficiency Ratio | 57.51% |
| Tangible Book Value Per Share | $24.64 |
Community Impact
RBB Bancorp's commitment to community development is evident through its role as a minority depository institution (MDI), serving predominantly Asian-centric communities across multiple states, including:
- California
- Nevada
- New York
- Illinois
- New Jersey
- Hawaii
Recent Developments
In the first three quarters of 2024, RBB Bancorp has focused on:
- Enhancing its digital banking platform to improve customer access and convenience.
- Increasing community partnerships for financial literacy programs.
- Expanding its branch network to better serve underserved areas.
Conclusion of Mission Statement Analysis
The mission statement of RBB Bancorp encapsulates its dedication to providing tailored financial services while fostering community development and inclusion. Through strategic initiatives and a strong financial foundation, RBB aims to enhance its impact in the communities it serves.
How RBB Bancorp (RBB) Works
Overview of RBB Bancorp
RBB Bancorp operates as a holding company for the Bank of the West, providing various banking services primarily aimed at Asian-centric communities across multiple states, including California, Nevada, New York, Illinois, New Jersey, and Hawaii. As of September 30, 2024, RBB reported total assets of $4.0 billion and total loans of $3.1 billion.
Financial Performance
For the quarter ended September 30, 2024, RBB Bancorp recorded net income of $6.999 million, compared to $7.245 million in the prior quarter and $8.473 million in the same quarter of the previous year. The diluted earnings per share stood at $0.39 for the same period.
| Financial Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Net Income | $6.999 million | $7.245 million | $8.473 million |
| Earnings Per Share (Diluted) | $0.39 | $0.39 | $0.45 |
| Total Assets | $4.0 billion | $4.035 billion | $4.066 billion |
| Total Loans | $3.1 billion | $3.040 billion | $3.091 billion |
| Total Deposits | $3.1 billion | $3.2 billion | $3.2 billion |
Interest Income and Expense
RBB's interest income for the three months ended September 30, 2024, was $55.563 million, while the interest expense for the same period amounted to $27.974 million. The net interest income after provision for credit losses was $26.190 million.
Loan Portfolio
Total loans held for investment (HFI), net of deferred fees and discounts, increased by $60.0 million, or 2.0%, to $3.1 billion at September 30, 2024. The increase was primarily driven by a rise in commercial real estate (CRE) loans, which saw an increase of $84.8 million.
| Loan Categories | September 30, 2024 | December 31, 2023 | Increase (Decrease) |
|---|---|---|---|
| Commercial Real Estate Loans | $1.167 billion | $1.083 billion | +$84.8 million |
| Single-Family Residential Mortgages | $1.487 billion | $1.502 billion | -$14.4 million |
| Small Business Administration Loans | $52.074 million | $56.074 million | -$4.0 million |
| Construction and Land Development Loans | $180.196 million | $181.469 million | -$1.3 million |
| Commercial and Industrial Loans | $128.9 million | $130.1 million | -$1.2 million |
Deposit Composition
As of September 30, 2024, RBB Bancorp's total deposits were reported at $3.1 billion, reflecting a decrease of $82.6 million from December 31, 2023. This change was primarily attributed to a reduction in interest-bearing deposits.
| Deposit Type | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Interest-bearing Deposits | $2.557 billion | $2.644 billion |
| Noninterest-bearing Deposits | $543.6 million | $539.6 million |
| Wholesale Deposits | $147.3 million | $405.6 million |
Regulatory Capital Requirements
As of September 30, 2024, RBB Bancorp met all regulatory capital requirements with the following capital ratios:
| Capital Ratio | Actual | Minimum Required |
|---|---|---|
| Tier 1 Leverage Ratio | 12.19% | 4.0% |
| Common Equity Tier 1 Ratio | 18.16% | 4.5% |
| Total Risk-Based Capital Ratio | 24.80% | 8.0% |
Market Risk Exposure
RBB Bancorp is exposed to market risk primarily through interest rate risk, price risk, and basis risk. The company's asset-liability committee (ALCO) actively manages these risks to minimize their impact on net interest income and the economic value of assets and liabilities.
Loan Quality Metrics
As of September 30, 2024, special mention loans totaled $77.5 million, accounting for 2.51% of total loans, marking an increase from $32.8 million at December 31, 2023. Substandard loans stood at $79.8 million, or 2.58% of total loans.
| Loan Quality Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Special Mention Loans | $77.5 million | $32.8 million |
| Substandard Loans | $79.8 million | $61.1 million |
How RBB Bancorp (RBB) Makes Money
Revenue Sources
RBB Bancorp generates revenue primarily through two main channels: interest income and noninterest income.
Interest Income
As of September 30, 2024, RBB Bancorp reported an interest income of $54.4 million for the third quarter, up from $52.9 million in the previous quarter. For the nine months ending September 30, 2024, total interest income reached $162.1 million, compared to $166.3 million for the same period in 2023.
Interest Expense
Interest expenses increased to $29.9 million in the third quarter of 2024 from $28.9 million in the previous quarter. For the nine months ending September 30, 2024, interest expenses totaled $88.7 million, an increase from $72.7 million in the same period of 2023.
Net Interest Income
Net interest income after provision for credit losses was $21.2 million for the third quarter of 2024, compared to $23.4 million in the previous quarter. For the nine months ending September 30, 2024, net interest income was $69.5 million, down from $89.8 million for the same period in 2023.
Noninterest Income
RBB Bancorp's noninterest income for the third quarter of 2024 was $5.7 million, significantly higher than $2.8 million for the same period in the previous year. For the nine months ending September 30, 2024, noninterest income totaled $12.6 million, compared to $7.6 million in 2023.
| Category | Q3 2024 | Q2 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|---|
| Interest Income | $54.4 million | $52.9 million | $55.6 million | $162.1 million | $166.3 million |
| Interest Expense | $29.9 million | $28.9 million | $28.0 million | $88.7 million | $72.7 million |
| Net Interest Income | $21.2 million | $23.4 million | $26.2 million | $69.5 million | $89.8 million |
| Noninterest Income | $5.7 million | $3.5 million | $2.8 million | $12.6 million | $7.6 million |
Loan Portfolio Composition
As of September 30, 2024, RBB Bancorp had total loans of $3.1 billion, with a loan-to-deposit ratio of 98.6%. The composition of the loan portfolio includes:
- Commercial Real Estate (CRE) Loans: $1.2 billion
- Single-Family Residential Mortgages: $1.5 billion
- Commercial and Industrial (C&I) Loans: $128.9 million
- Small Business Administration (SBA) Loans: $52.1 million
- Construction and Land Development Loans: $180.2 million
Deposits
Total deposits as of September 30, 2024, stood at $3.1 billion, a decrease of $82.6 million from December 31, 2023. The composition of deposits includes:
- Noninterest-Bearing Deposits: $543.6 million
- Interest-Bearing Deposits: $2.5 billion
Expense Management
Noninterest expenses for the third quarter of 2024 totaled $17.4 million, up from $16.9 million in the same quarter of 2023. For the nine months ending September 30, 2024, total noninterest expenses were $51.5 million, compared to $54.3 million in the prior year.
Net Income
Net income for the third quarter of 2024 was $7.0 million, or $0.39 per diluted share, compared to $7.2 million, or $0.39 per diluted share in the previous quarter. For the nine months ending September 30, 2024, net income reached $22.3 million, down from $30.4 million in the same period of 2023.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|---|
| Net Income | $7.0 million | $7.2 million | $8.5 million | $22.3 million | $30.4 million |
| Earnings per Share (Diluted) | $0.39 | $0.39 | $0.45 | $1.22 | $1.60 |
Conclusion
RBB Bancorp's business model focuses on providing a range of financial services to its community, leveraging both interest and noninterest income streams to drive profitability. The company's performance reflects its strategic initiatives in loan growth and expense management.
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Resources:
- RBB Bancorp (RBB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of RBB Bancorp (RBB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View RBB Bancorp (RBB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.