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RBB(RBB) - 2024 Q2 - Quarterly Results
RBBRBB(RBB)2024-07-22 21:30

Net Income and Earnings - Net income for Q2 2024 totaled $7.2 million, or $0.39 diluted earnings per share, compared to $8.0 million in Q1 2024[3][18] - Net income available to common shareholders for the six months ended June 30, 2024, was $15,281, compared to $21,919 in the same period in 2023[52] - Net income for the six months ended June 30, 2024, was $15.28 million, down from $21.92 million in the same period in 2023[65] - Basic net income per share for the six months ended June 30, 2024, was $0.83, compared to $1.15 in the same period in 2023[65] Net Interest Margin and Income - Net interest margin (NIM) decreased to 2.67% in Q2 2024, down 2 basis points from 2.69% in Q1 2024[3][5] - Net interest income for the second quarter of 2024 was $23.988 million, with a net interest margin of 2.67%[45] - Net interest income decreased to $48,891 in June 2024 from $66,076 in June 2023, with a net interest margin of 2.68% compared to 3.53% in the previous year[46] - Net interest income for the six months ended June 30, 2024, was $107.68 million, a decrease from $110.75 million in the same period in 2023[65] - Net interest margin was 2.67% for the quarter ended June 30, 2024, compared to 3.37% for the same period in 2023[72] Total Assets and Loans - Total assets decreased to $3.9 billion as of June 30, 2024, a $9.8 million decrease compared to March 31, 2024[10] - Loans held for investment increased by $20.4 million to $3.0 billion as of June 30, 2024, driven by growth in CRE, C&I, C&D, and SFR loans[22] - Total loans held for investment decreased to $3,015,613 in June 2024 from $3,307,157 in June 2023, with a yield of 6.05% compared to 6.14% in the previous year[46] - Total loans as of June 30, 2024, were $3,047,712, with commercial real estate loans making up 39.1% of the portfolio[49] - Net loans held for investment stood at $3,005,971 as of June 30, 2024, showing a slight decrease from $3,152,903 as of June 30, 2023[69] - Total assets decreased to $3,868,186 as of June 30, 2024, compared to $4,075,618 as of June 30, 2023, reflecting a decline of 5.1% year-over-year[69] - Total assets-GAAP declined to $3,868,186 thousand in June 2024 from $4,075,618 thousand in June 2023[77] - Tangible assets decreased to $3,794,294 thousand in June 2024 from $4,000,874 thousand in June 2023[77] Deposits and Funding Costs - Total deposits decreased by $4.7 million to $3.0 billion as of June 30, 2024, with noninterest-bearing deposits increasing by $3.5 million to $543.0 million[23] - Total cost of deposits for the second quarter of 2024 was $26.803 million, with a cost of 3.59%[45] - Total cost of funds for the second quarter of 2024 was $28.921 million, with a cost of 3.54%[45] - Total interest-bearing deposits increased to $2,531,686 in June 2024 from $2,427,265 in June 2023, with a cost of 4.34% compared to 3.13% in the previous year[46] - Total deposits slightly decreased to $3.02 billion as of June 30, 2024, compared to $3.03 billion in March 2024 and $3.18 billion in June 2023[60] - Noninterest-bearing demand deposits accounted for 18.0% ($542.97 million) of total deposits as of June 30, 2024, compared to 17.8% ($539.52 million) in March 2024 and 18.4% ($585.75 million) in June 2023[60] - Time deposits over $250,000 increased to $790.48 million (26.1% of total deposits) as of June 30, 2024, compared to $746.61 million (24.7%) in March 2024 and $662.76 million (20.9%) in June 2023[60] - Total deposits were $3,023,605 as of June 30, 2024, down from $3,175,416 as of June 30, 2023, a decrease of 4.8%[69] - Cost of average total deposits was 3.59% for the quarter ended June 30, 2024, up from 2.80% in the same period last year[72] Credit Quality and Allowances - Substandard loans increased to $63.1 million, or 2.07% of total loans, as of June 30, 2024, up from $57.2 million, or 1.89% of total loans, in Q1 2024[13] - The allowance for credit losses totaled $42.4 million as of June 30, 2024, with the allowance for loan losses as a percentage of nonperforming loans decreasing to 76% from 116% in Q1 2024[14] - Nonperforming assets increased to $54.6 million, or 1.41% of total assets, as of June 30, 2024, up from $37.0 million, or 0.95% of total assets, as of March 31, 2024[35] - 30-89 day delinquent loans decreased by $9.7 million to $11.3 million as of June 30, 2024, compared to $21.0 million as of March 31, 2024[36] - Special mention loans decreased to $19.52 million (0.64% of total loans) as of June 30, 2024, compared to $20.58 million (0.68%) in March 2024 and $24.15 million (0.76%) in June 2023[58] - Substandard loans increased to $63.08 million (2.07% of total loans) as of June 30, 2024, compared to $57.17 million (1.89%) in March 2024 and $74.07 million (2.32%) in June 2023[58] - Nonperforming loans rose to $54.59 million (1.79% of total loans) as of June 30, 2024, compared to $35.94 million (1.19%) in March 2024 and $41.86 million (1.31%) in June 2023[58] - Net charge-offs increased to $551,000 (0.07% of average loans) for the quarter ended June 30, 2024, compared to $184,000 (0.02%) in March 2024 and $580,000 (0.07%) in June 2023[58] - Allowance for loan losses to nonperforming loans decreased to 76.46% as of June 30, 2024, compared to 116.01% in March 2024 and 102.94% in June 2023[58] - Provision for credit losses for the six months ended June 30, 2024, was $557,000, down from $2.39 million in the same period in 2023[65] Shareholder Equity and Share Repurchases - Total shareholders' equity decreased by $2.7 million to $511.3 million as of June 30, 2024, compared to March 31, 2024, due to dividends paid and share repurchases[37] - The company repurchased 448,190 shares of common stock for $8.1 million during Q2 2024[3] - The company repurchased 448,190 shares at a weighted average share price of $18.01 during the second quarter of 2024[38] - Total shareholders' equity increased to $511,291 thousand as of June 30, 2024, compared to $500,290 thousand in June 2023[77] - Tangible common equity decreased slightly to $437,399 thousand in June 2024 from $439,894 thousand in March 2024[77] - Common equity to assets ratio improved to 13.22% in June 2024 from 12.28% in June 2023[77] - Tangible common equity to tangible assets ratio increased to 11.53% in June 2024 from 10.64% in June 2023[77] - Common shares outstanding decreased to 18,182,154 in June 2024 from 18,995,303 in June 2023[77] Noninterest Income and Expense - Noninterest income increased to $3.5 million in Q2 2024, up $116,000 from Q1 2024, driven by higher gains on sale of loans and equity investment income[7] - Total noninterest income for the six months ended June 30, 2024, increased to $6.86 million from $4.86 million in the same period in 2023[65] - Total noninterest expense for the six months ended June 30, 2024, decreased to $34.09 million from $37.43 million in the same period in 2023[65] Book Value and Tangible Equity - Book value per share increased to $28.12 as of June 30, 2024, up from $27.67 at March 31, 2024[3] - Tangible common equity to tangible assets ratio stood at 11.53% as of June 30, 2024, compared to 11.56% in March 2024 and 10.64% in June 2023[58] - Book value per share increased to $28.12 as of June 30, 2024, from $26.34 as of June 30, 2023[72] - Tangible book value per share rose to $24.06 as of June 30, 2024, compared to $22.40 as of June 30, 2023[72] - Book value per share rose to $28.12 in June 2024 from $26.34 in June 2023[77] - Tangible book value per share increased to $24.06 in June 2024 from $22.40 in June 2023[77] Interest Expense and Yields - Total interest expense for the six months ended June 30, 2024, increased to $58.84 million from $44.73 million in the same period in 2023[65] - Interest on savings deposits, NOW, and money market accounts for the six months ended June 30, 2024, was $9.43 million, up from $5.07 million in the same period in 2023[65] - Interest on time deposits for the six months ended June 30, 2024, was $45.17 million, compared to $32.58 million in the same period in 2023[65] - Total interest-earning assets decreased to $3,667,597 in June 2024 from $3,770,997 in June 2023, with a yield of 5.91% compared to 5.93% in the previous year[46] Efficiency and Ratios - Efficiency ratio increased to 62.38% for the quarter ended June 30, 2024, from 53.80% in the same period last year[72] - Return on average tangible common equity was 7.01% for the six months ended June 30, 2024, compared to 10.49% in the same period in 2023[52] - Return on average assets, annualized, was 0.76% for the quarter ended June 30, 2024, compared to 1.08% for the same period in 2023[72] - Return on average shareholders' equity, annualized, was 5.69% for the quarter ended June 30, 2024, down from 8.78% in the same period last year[72] - Tier 1 leverage ratio increased to 12.48% as of June 30, 2024, compared to 12.16% in March 2024 and 11.60% in June 2023[58]