RBB Bancorp Reports Second Quarter 2025 Earnings and Declares Quarterly Cash Dividend of $0.16 Per Common Share

LOS ANGELES, July 21, 2025 (GLOBE NEWSWIRE) -- RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the "Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as the "Company," announced financial results for the quarter ended June 30, 2025.

Second Quarter 2025 Highlights

• Net income totaled $9.3 million, or $0.52 diluted earnings per share
• Return on average assets of 0.93%, compared to 0.24% for the quarter ended March 31, 2025
• Net interest margin expanded to 2.92%, up from 2.88% for the quarter ended March 31, 2025
• Net loans held for investment growth of $91.6 million, or 12% annualized
• Nonperforming assets decreased $3.6 million, or 5.5%, to $61.0 million at June 30, 2025, down from $64.6 million at March 31, 2025
• Book value and tangible book value per share⁽¹⁾ increased to $29.25 and $25.11 at June 30, 2025, up from $28.77 and $24.63 at March 31, 2025

The Company reported net income of $9.3 million, or $0.52 diluted earnings per share, for the quarter ended June 30, 2025, compared to net income of $2.3 million, or $0.13 diluted earnings per share, for the quarter ended March 31, 2025. Net income for the second quarter of 2025 included income from an Employee Retention Credit ("ERC") of $5.2 million (pre-tax), which was included in other income, offset partially by professional and advisory costs associated with filing and determining eligibility for the ERC totaling $1.2 million (pre-tax).

"Another quarter of strong loan growth and stable loan yields drove increasing net interest income and margin expansion in the second quarter," said Johnny Lee, President and Chief Executive Officer of RBB Bancorp. "We also benefited from the receipt of a $5.2 million ERC in the second quarter. We continue to work through our nonperforming assets and remain focused on resolving our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital."

(1	)	Reconciliations of the non–U.S. generally accepted accounting principles ("GAAP") measures included at the end of this press release.

Net Interest Income and Net Interest Margin

Net interest income was $27.3 million for the second quarter of 2025, compared to $26.2 million for the first quarter of 2025. The $1.2 million increase was due to a $1.9 million increase in interest income, offset by a $698,000 increase in interest expense. The increase in interest income was mostly due to a $2.1 million increase in interest and fees on loans. The increase in interest expense was due to a $433,000 increase in interest on borrowings and a $265,000 increase in interest on deposits.

The net interest margin ("NIM") was 2.92% for the second quarter of 2025, an increase of 4 basis points from 2.88% for the first quarter of 2025. The NIM expansion was due to a 3 basis point increase in the yield on average interest-earning assets, combined with a 1 basis point decrease in the overall cost of funds. The yield on average interest-earning assets increased to 5.79% for the second quarter of 2025 from 5.76% for the first quarter of 2025 due mainly to a 2 basis point increase in the yield on average loans to 6.03%. Average loans represented 85% of average interest-earning assets in the second quarter of 2025, as compared to 84% in the first quarter of 2025.

The average cost of funds decreased to 3.14% for the second quarter of 2025 from 3.15% for the first quarter of 2025, driven by an 11 basis point decrease in the average cost of interest-bearing deposits, partially offset by a 75 basis point increase in the average cost of total borrowings. The average cost of interest-bearing deposits decreased to 3.66% for the second quarter of 2025 from 3.77% for the first quarter of 2025. The overall funding mix for the second quarter of 2025 remained relatively unchanged from the first quarter of 2025 with total deposits representing 90% of interest bearing liabilities and average noninterest-bearing deposits representing 17% of average total deposits. The average cost of borrowings increased as $150 million in long term FHLB advances matured during the first quarter of 2025, the majority of which were replaced and repriced at current market rates. The all-in average spot rate for total deposits was 2.95% at June 30, 2025.

Provision for Credit Losses

The provision for credit losses was $2.4 million for the second quarter of 2025 compared to $6.7 million for the first quarter of 2025. The second quarter of 2025 provision for credit losses reflected an increase in general reserves of $1.5 million due mainly to net loan growth, and an increase in a specific reserve of $924,000 related to one lending relationship. The second quarter provision also took into consideration factors such as changes in the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including changes in loans 30-89 days past due, nonperforming loans, special mention and substandard loans during the period. Net charge-offs of $3.3 million in the second quarter related to loans which had these specific reserves at March 31, 2025. Net charge-offs on an annualized basis represented 0.42% of average loans for the second quarter of 2025 compared to 0.35% for the first quarter of 2025.

Noninterest Income

Noninterest income for the second quarter of 2025 was $8.5 million, an increase of $6.2 million from $2.3 million for the first quarter of 2025. The second quarter of 2025 included other income of $5.2 million for the receipt of ERC funds from the IRS. The ERC was a grant program established under the Coronavirus Aid, Relief, and Economic Security Act in response to the COVID-19 pandemic and these funds relate to qualifying amended payroll tax returns the Company filed for the first and second quarters of 2021.

Upon receipt of the ERC funds, certain professional and tax advisory costs associated with the assessment and compilation of the ERC refunds became due and payable. These amounts totaled $1.2 million and are included in legal and professional expense in our consolidated statements of income for the second quarter of 2025. There were no such ERC amounts received or associated costs recognized during the first quarter of 2025 or the quarter ended June 30, 2024.

The second quarter of 2025 also included a higher gain on sale of loans of $277,000 and recoveries associated with a fully-charged off loan acquired in a bank acquisition of $350,000, the latter included in "other income."

Noninterest Expense

Noninterest expense for the second quarter of 2025 was $20.5 million, an increase of $2.0 million from $18.5 million for the first quarter of 2025. This increase was mostly due to higher legal and professional expense of $1.4 million, of which $1.2 million was attributed to the aforementioned ERC advisory costs, and a $437,000 increase in salaries and employee benefits expenses. The increase in compensation includes higher incentives related to sustained production levels, the impact of annual pay increases, and approximately $330,000 in costs related to executive management transitions, offset by lower payroll taxes. The efficiency ratio was 57.2% for the second quarter of 2025, down from 65.1% for the first quarter of 2025 due mostly to higher noninterest income related to the ERC, partially offset by higher noninterest expense related to the ERC advisory costs.

Income Taxes

The effective tax rate was 27.8% for the second quarter of 2025 and 28.2% for the first quarter of 2025. 

Balance Sheet

At June 30, 2025, total assets were $4.1 billion, an $80.6 million increase compared to March 31, 2025, and a $221.9 million increase compared to June 30, 2024.

Loan and Securities Portfolio

Loans held for investment ("HFI") totaled $3.2 billion as of June 30, 2025, an increase of $91.6 million, or 12% annualized, compared to March 31, 2025 and an increase of $187.0 million, or 6.1%, compared to June 30, 2024. The second quarter of 2025 net loan growth included $182.8 million in new production with an average yield of 6.76%. The increase from March 31, 2025 was primarily due to a $57.3 million increase in single-family residential ("SFR") mortgage loans, a $28.0 million increase in commercial real estate ("CRE") loans, a $5.3 million increase in Small Business Administration ("SBA") loans and a $2.7 million increase in commercial and industrial ("C&I") loans. The loan to deposit ratio was 101.5% at June 30, 2025, compared to 100.0% at March 31, 2025 and 100.9% at June 30, 2024. 

As of June 30, 2025, available for sale securities ("AFS") totaled $413.1 million, an increase of $35.0 million from March 31, 2025, primarily related to purchases of $68.0 million, offset by maturities and amortization of $33.0 million during the second quarter of 2025. As of June 30, 2025, net unrealized losses totaled $23.1 million, a $1.9 million decrease, when compared to net unrealized losses of $25.0 million as of March 31, 2025.

Deposits

Total deposits were $3.2 billion as of June 30, 2025, an increase of $45.6 million, or 5.8% annualized, compared to March 31, 2025 and an increase of $164.6 million, or 5.4%, compared to June 30, 2024. The increase during the second quarter of 2025 was due to a $29.9 million increase in interest-bearing deposits coupled with a $15.7 million increase in noninterest-bearing deposits. The increase in interest-bearing deposits included increases in time deposits of $59.5 million, offset by decreases in interest-bearing non-maturity deposits of $29.5 million. Wholesale deposits totaled $183.8 million at June 30, 2025, an increase of $25.3 million compared to $158.5 million at March 31, 2025. Noninterest-bearing deposits totaled $543.9 million and represented 17.1% of total deposits at June 30, 2025 compared to $528.2 million and 16.8% at March 31, 2025.

Credit Quality

Nonperforming assets totaled $61.0 million, or 1.49% of total assets, at June 30, 2025, down from $64.6 million, or 1.61% of total assets, at March 31, 2025. The $3.6 million decrease in nonperforming assets was due to $3.3 million in net charge-offs and $1.7 million in payoffs and paydowns, partially offset by $1.4 million in additions from loans migrating to nonaccrual status in the second quarter of 2025. Nonperforming assets included one $4.2 million other real estate owned (included in "accrued interest and other assets") at June 30, 2025 and March 31, 2025.

Special mention loans totaled $91.3 million, or 2.82% of total loans, at June 30, 2025, up from $64.3 million, or 2.05% of total loans, at March 31, 2025. The $27.0 million increase was primarily due to the addition of loans totaling $30.1 million and $1.6 million in balance increases, partially offset by the downgrade of two CRE loans totaling $4.0 million to substandard-rated loans and payoffs and paydowns totaling $660,000. As of June 30, 2025, all special mention loans were paying current.

Substandard loans totaled $91.0 million at June 30, 2025, up from $76.4 million at March 31, 2025. The $14.6 million increase was primarily due to the downgrades totaling $20.6 million, partially offset by net charge-offs totaling $3.3 million and payoffs and paydowns totaling $2.7 million. Of the total substandard loans at June 30, 2025, there were $34.2 million on accrual status.

30-89 day delinquent loans, excluding nonperforming loans, totaled $18.0 million, or 0.56% of total loans, at June 30, 2025, up from $5.9 million, or 0.19% of total loans, at March 31, 2025. The $12.1 million increase was mostly due to $15.5 million in new delinquent loans, offset by $2.2 million in loans returning to current status, $798,000 in loans migrating to nonaccrual status, and $427,000 in paydowns and payoffs. The additions include an $8.5 million CRE loan that has since been brought current.

As of June 30, 2025, the allowance for credit losses totaled $51.6 million and was comprised of an allowance for loan losses of $51.0 million and a reserve for unfunded commitments of $629,000 (included in "accrued interest and other liabilities"). This compares to the allowance for credit losses of $52.6 million, comprised of an allowance for loan losses of $51.9 million and a reserve for unfunded commitments of $629,000 at March 31, 2025. The $918,000 decrease in the allowance for credit losses for the second quarter of 2025 was due to net charge-offs of $3.3 million, offset by a $2.4 million provision for credit losses. The allowance for loan losses as a percentage of loans HFI decreased to 1.58% at June 30, 2025, compared to 1.65% at March 31, 2025, due mainly to net charge-offs of amounts included in specific reserves at March 31, 2025. The allowance for loan losses as a percentage of nonperforming loans HFI was 90% at June 30, 2025, an increase from 86% at March 31, 2025. 

	For the Three Months Ended June 30, 2025												For the Six Months Ended June 30, 2025
(dollars in thousands)	Allowance for loan losses				Reserve for unfunded loan commitments				Allowance for credit losses				Allowance for loan losses				Reserve for unfunded loan commitments				Allowance for credit losses
Beginning balance	$	51,932			$	629			$	52,561			$	47,729			$	729			$	48,458
Provision for (reversal of) credit losses		2,387				—				2,387				9,233				(100	)			9,133
Less loans charged-off		(3,339	)			—				(3,339	)			(6,065	)			—				(6,065	)
Recoveries on loans charged-off		34				—				34				117				—				117
Ending balance	$	51,014			$	629			$	51,643			$	51,014			$	629			$	51,643

Shareholders' Equity

At June 30, 2025, total shareholders' equity was $517.7 million, a $7.3 million increase compared to March 31, 2025, and a $6.4 million increase compared to June 30, 2024. The increase in shareholders' equity for the second quarter of 2025 was due to net income of $9.3 million, lower net unrealized losses on AFS securities of $1.3 million and equity compensation activity of $1.1 million, offset by common stock cash dividends paid totaling $2.9 million and common stock repurchases totaling $1.5 million. The increase in shareholders' equity for the last twelve months was due to net income of $23.0 million, lower net unrealized losses on AFS securities of $4.9 million, and equity compensation activity of $2.5 million, offset by common stock repurchases totaling $12.5 million and common stock cash dividends paid totaling $11.5 million. Book value per share and tangible book value per share⁽¹⁾ increased to $29.25 and $25.11 at June 30, 2025, up from $28.77 and $24.63 at March 31, 2025 and up from $28.12 and $24.06 at June 30, 2024.

Dividend Announcement

The Board of Directors has declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on August 12, 2025 to shareholders of record on July 31, 2025.

	Contact: Lynn Hopkins, Chief Financial Officer
	(213) 716-8066
	[email protected]

(1	)	Reconciliations of the non–U.S. generally accepted accounting principles ("GAAP") measures included at the end of this press release.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of June 30, 2025, the Company had total assets of $4.1 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company's administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, July 22, 2025, to discuss the Company's second quarter 2025 financial results.

To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 710803, conference ID RBBQ225. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 52690, approximately one hour after the conclusion of the call and will remain available through August 05, 2025.

The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the "Investors" tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

Disclosure

This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company's current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company's internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States ("U.S.") federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation ("FDIC") insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; fluctuations in the Company's stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company's public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2024, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company's earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)
	June 30,				March 31,				December 31,				September 30,				June 30,
	2025				2025				2024				2024				2024
Assets
Cash and due from banks	$	27,338			$	25,315			$	27,747			$	26,388			$	23,313
Interest-earning deposits with financial institutions		164,514				213,508				229,998				323,002				229,456
Cash and cash equivalents		191,852				238,823				257,745				349,390				252,769
Interest-earning time deposits with financial institutions		600				600				600				600				600
Investment securities available for sale		413,142				378,188				420,190				305,666				325,582
Investment securities held to maturity		4,186				5,188				5,191				5,195				5,200
Loans held for sale		-				655				11,250				812				3,146
Loans held for investment		3,234,695				3,143,063				3,053,230				3,091,896				3,047,712
Allowance for loan losses		(51,014	)			(51,932	)			(47,729	)			(43,685	)			(41,741	)
Net loans held for investment		3,183,681				3,091,131				3,005,501				3,048,211				3,005,971
Premises and equipment, net		23,945				24,308				24,601				24,839				25,049
Federal Home Loan Bank (FHLB) stock		15,000				15,000				15,000				15,000				15,000
Cash surrender value of bank owned life insurance		61,111				60,699				60,296				59,889				59,486
Goodwill		71,498				71,498				71,498				71,498				71,498
Servicing assets		6,482				6,766				6,985				7,256				7,545
Core deposit intangibles		1,667				1,839				2,011				2,194				2,394
Right-of-use assets		25,554				26,779				28,048				29,283				30,530
Accrued interest and other assets		91,322				87,926				83,561				70,644				63,416
Total assets	$	4,090,040			$	4,009,400			$	3,992,477			$	3,990,477			$	3,868,186
Liabilities and shareholders' equity
Deposits:
Noninterest-bearing demand	$	543,885			$	528,205			$	563,012			$	543,623			$	542,971
Savings, NOW and money market accounts		691,679				721,216				663,034				666,089				647,770
Time deposits, $250,000 and under		1,010,674				1,000,106				1,007,452				1,052,462				1,014,189
Time deposits, greater than $250,000		941,993				893,101				850,291				830,010				818,675
Total deposits		3,188,231				3,142,628				3,083,789				3,092,184				3,023,605
FHLB advances		180,000				160,000				200,000				200,000				150,000
Long-term debt, net of issuance costs		119,720				119,624				119,529				119,433				119,338
Subordinated debentures		15,265				15,211				15,156				15,102				15,047
Lease liabilities - operating leases		27,294				28,483				29,705				30,880				32,087
Accrued interest and other liabilities		41,877				33,148				36,421				23,150				16,818
Total liabilities		3,572,387				3,499,094				3,484,600				3,480,749				3,356,895
Shareholders' equity:
Common stock		259,863				260,284				259,957				259,280				266,160
Additional paid-in capital		3,579				3,360				3,645				3,520				3,456
Retained earnings		270,152				263,885				264,460				262,946				262,518
Non-controlling interest		72				72				72				72				72
Accumulated other comprehensive loss, net		(16,013	)			(17,295	)			(20,257	)			(16,090	)			(20,915	)
Total shareholders' equity		517,653				510,306				507,877				509,728				511,291
Total liabilities and shareholders' equity	$	4,090,040			$	4,009,400			$	3,992,477			$	3,990,477			$	3,868,186

RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except share and per share data)
	For the Three Months Ended												For the Six Months Ended
	June 30, 2025				March 31, 2025				June 30, 2024				June 30, 2025				June 30, 2024
Interest and dividend income:
Interest and fees on loans	$	47,687			$	45,621			$	45,320			$	93,308			$	90,867
Interest on interest-earning deposits		1,750				2,014				3,353				3,764				8,393
Interest on investment securities		4,213				4,136				3,631				8,349				7,242
Dividend income on FHLB stock		324				330				327				654				658
Interest on federal funds sold and other		231				235				255				466				521
Total interest and dividend income		54,205				52,336				52,886				106,541				107,681
Interest expense:
Interest on savings deposits, NOW and money market accounts		4,567				4,468				4,953				9,035				9,431
Interest on time deposits		19,250				19,084				21,850				38,334				45,172
Interest on long-term debt and subordinated debentures		1,634				1,632				1,679				3,266				3,358
Interest on FHLB advances		1,420				989				439				2,409				878
Total interest expense		26,871				26,173				28,921				53,044				58,839
Net interest income before provision for credit losses		27,334				26,163				23,965				53,497				48,842
Provision for credit losses		2,387				6,746				557				9,133				557
Net interest income after provision for credit losses		24,947				19,417				23,408				44,364				48,285
Noninterest income:
Service charges and fees		1,060				1,017				1,064				2,077				2,056
Gain on sale of loans		358				81				451				439				763
Loan servicing fees, net of amortization		541				588				579				1,129				1,168
Increase in cash surrender value of life insurance		411				403				385				814				767
Gain on OREO		—				—				292				—				1,016
Other income		6,108				206				717				6,314				1,090
Total noninterest income		8,478				2,295				3,488				10,773				6,860
Noninterest expense:
Salaries and employee benefits		11,080				10,643				9,533				21,723				19,460
Occupancy and equipment expenses		2,377				2,407				2,439				4,784				4,882
Data processing		1,713				1,602				1,466				3,315				2,886
Legal and professional		2,904				1,515				1,260				4,419				2,140
Office expenses		405				408				352				813				708
Marketing and business promotion		212				197				189				409				361
Insurance and regulatory assessments		709				730				981				1,439				1,963
Core deposit premium		172				172				201				344				402
Other expenses		921				848				703				1,769				1,291
Total noninterest expense		20,493				18,522				17,124				39,015				34,093
Income before income taxes		12,932				3,190				9,772				16,122				21,052
Income tax expense		3,599				900				2,527				4,499				5,771
Net income	$	9,333			$	2,290			$	7,245			$	11,623			$	15,281
Net income per share
Basic	$	0.53			$	0.13			$	0.39			$	0.66			$	0.83
Diluted	$	0.52			$	0.13			$	0.39			$	0.65			$	0.82
Cash dividends declared per common share	$	0.16			$	0.16			$	0.16			$	0.32			$	0.32
Weighted-average common shares outstanding
Basic		17,746,607				17,727,712				18,375,970				17,737,212				18,488,623
Diluted		17,797,735				17,770,588				18,406,897				17,784,237				18,529,299

RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited)
	For the Three Months Ended
	June 30, 2025												March 31, 2025												June 30, 2024
	Average				Interest				Yield /				Average				Interest				Yield /				Average				Interest				Yield /
(tax-equivalent basis, dollars in thousands)	Balance				& Fees				Rate				Balance				& Fees				Rate				Balance				& Fees				Rate
Interest-earning assets
Cash and cash equivalents(1)	$	163,838			$	1,980				4.85	%		$	194,236			$	2,249				4.70	%		$	255,973			$	3,608				5.67	%
FHLB Stock		15,000				324				8.66	%			15,000				330				8.92	%			15,000				327				8.77	%
Securities
Available for sale(2)		399,414				4,189				4.21	%			390,178				4,113				4.28	%			318,240				3,608				4.56	%
Held to maturity(2)		5,028				48				3.83	%			5,189				49				3.83	%			5,203				46				3.56	%
Total loans(3)		3,171,570				47,687				6.03	%			3,079,224				45,621				6.01	%			3,017,050				45,320				6.04	%
Total interest-earning assets		3,754,850			$	54,228				5.79	%			3,683,827			$	52,362				5.76	%			3,611,466			$	52,909				5.89	%
Total noninterest-earning assets		254,029												260,508												240,016
Total average assets	$	4,008,879											$	3,944,335											$	3,851,482
Interest-bearing liabilities
NOW	$	66,755				368				2.21	%		$	61,222			$	321				2.13	%		$	56,081			$	276				1.98	%
Money market		482,669				3,774				3.14	%			463,443				3,625				3.17	%			431,559				3,877				3.61	%
Saving deposits		141,411				425				1.21	%			155,116				522				1.36	%			164,913				800				1.95	%
Time deposits, $250,000 and under		996,249				9,768				3.93	%			989,622				10,046				4.12	%			1,049,666				12,360				4.74	%
Time deposits, greater than $250,000		922,540				9,482				4.12	%			864,804				9,038				4.24	%			772,255				9,490				4.94	%
Total interest-bearing deposits		2,609,624				23,817				3.66	%			2,534,207				23,552				3.77	%			2,474,474				26,803				4.36	%
FHLB advances		159,286				1,420				3.58	%			176,833				989				2.27	%			150,000				439				1.18	%
Long-term debt		119,657				1,296				4.34	%			119,562				1,295				4.39	%			119,275				1,296				4.37	%
Subordinated debentures		15,230				338				8.90	%			15,175				337				9.01	%			15,011				383				10.26	%
Total interest-bearing liabilities		2,903,797				26,871				3.71	%			2,845,777				26,173				3.73	%			2,758,760				28,921				4.22	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		526,113												520,145												529,450
Other noninterest-bearing liabilities		65,278												66,151												51,087
Total noninterest-bearing liabilities		591,391												586,296												580,537
Shareholders' equity		513,691												512,262												512,185
Total liabilities and shareholders' equity	$	4,008,879											$	3,944,335											$	3,851,482
Net interest income / interest rate spreads					$	27,357				2.08	%						$	26,189				2.03	%						$	23,988				1.67	%
Net interest margin										2.92	%											2.88	%											2.67	%
Total cost of deposits	$	3,135,737			$	23,817				3.05	%		$	3,054,352			$	23,552				3.13	%		$	3,003,924			$	26,803				3.59	%
Total cost of funds	$	3,429,910			$	26,871				3.14	%		$	3,365,922			$	26,173				3.15	%		$	3,288,210			$	28,921				3.54	%

___________

(1	)	Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
(2	)	Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
(3	)	Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited)
	Six Months Ended June 30,
	2025												2024
	Average				Interest				Yield /				Average				Interest				Yield /
(tax-equivalent basis, dollars in thousands)	Balance				& Fees				Rate				Balance				& Fees				Rate
Interest-earning assets
Cash and cash equivalents(1)	$	178,953			$	4,230				4.77	%		$	310,476			$	8,914				5.77	%
FHLB Stock		15,000				654				8.79	%			15,000				658				8.82	%
Securities
Available for sale(2)		394,822				8,302				4.24	%			319,127				7,197				4.54	%
Held to maturity(2)		5,108				97				3.83	%			5,205				94				3.63	%
Total loans(3)		3,125,652				93,308				6.02	%			3,017,737				90,867				6.06	%
Total interest-earning assets		3,719,535			$	106,591				5.78	%			3,667,545			$	107,730				5.91	%
Total noninterest-earning assets		257,250												243,178
Total average assets	$	3,976,785											$	3,910,723
Interest-bearing liabilities
NOW	$	64,004				689				2.17	%		$	57,513			$	574				2.01	%
Money market		473,109				7,399				3.15	%			421,655				7,403				3.53	%
Saving deposits		148,225				947				1.29	%			161,070				1,454				1.82	%
Time deposits, $250,000 and under		992,954				19,815				4.02	%			1,112,735				26,165				4.73	%
Time deposits, greater than $250,000		893,832				18,519				4.18	%			778,713				19,007				4.91	%
Total interest-bearing deposits		2,572,124				47,369				3.71	%			2,531,686				54,603				4.34	%
FHLB advances		168,011				2,409				2.89	%			150,000				878				1.18	%
Long-term debt		119,610				2,591				4.37	%			119,228				2,591				4.37	%
Subordinated debentures		15,203				675				8.95	%			14,984				767				10.29	%
Total interest-bearing liabilities		2,874,948				53,044				3.72	%			2,815,898				58,839				4.20	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		523,145												528,898
Other noninterest-bearing liabilities		65,711												53,441
Total noninterest-bearing liabilities		588,856												582,339
Shareholders' equity		512,981												512,486
Total liabilities and shareholders' equity	$	3,976,785											$	3,910,723
Net interest income / interest rate spreads					$	53,547				2.06	%						$	48,891				1.71	%
Net interest margin										2.90	%											2.68	%
Total cost of deposits	$	3,095,269			$	47,369				3.09	%		$	3,060,584			$	54,603				3.59	%
Total cost of funds	$	3,398,093			$	53,044				3.15	%		$	3,344,796			$	58,839				3.54	%

___________

(1	)	Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
(2	)	Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
(3	)	Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
	At or for the Three Months Ended												At or for the Six Months Ended June 30,
	June 30,				March 31,				June 30,
	2025				2025				2024				2025				2024
Per share data (common stock)
Book value	$	29.25			$	28.77			$	28.12			$	29.25			$	28.12
Tangible book value(1)	$	25.11			$	24.63			$	24.06			$	25.11			$	24.06
Performance ratios
Return on average assets, annualized		0.93	%			0.24	%			0.76	%			0.59	%			0.79	%
Return on average shareholders' equity, annualized		7.29	%			1.81	%			5.69	%			4.57	%			6.00	%
Return on average tangible common equity, annualized(1)		8.50	%			2.12	%			6.65	%			5.33	%			7.01	%
Noninterest income to average assets, annualized		0.85	%			0.24	%			0.36	%			0.55	%			0.35	%
Noninterest expense to average assets, annualized		2.05	%			1.90	%			1.79	%			1.98	%			1.75	%
Yield on average earning assets		5.79	%			5.76	%			5.89	%			5.78	%			5.91	%
Yield on average loans		6.03	%			6.01	%			6.04	%			6.02	%			6.06	%
Cost of average total deposits(2)		3.05	%			3.13	%			3.59	%			3.09	%			3.59	%
Cost of average interest-bearing deposits		3.66	%			3.77	%			4.36	%			3.71	%			4.34	%
Cost of average interest-bearing liabilities		3.71	%			3.73	%			4.22	%			3.72	%			4.20	%
Net interest spread		2.08	%			2.03	%			1.67	%			2.06	%			1.71	%
Net interest margin		2.92	%			2.88	%			2.67	%			2.90	%			2.68	%
Efficiency ratio(3)		57.22	%			65.09	%			62.38	%			60.70	%			61.21	%
Common stock dividend payout ratio		30.19	%			123.08	%			41.03	%			48.48	%			38.55	%

___________

(1	)	Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
(2	)	Total deposits include non-interest bearing deposits and interest-bearing deposits.
(3	)	Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.

RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands)
	At or for the quarter ended
	June 30,				March 31,				June 30,
	2025				2025				2024
Credit Quality Data:
Special mention loans	$	91,317			$	64,279			$	19,520
Special mention loans to total loans HFI		2.82	%			2.05	%			0.64	%
Substandard loans	$	91,019			$	76,372			$	63,076
Substandard loans to total loans HFI		2.81	%			2.43	%			2.07	%
Loans 30-89 days past due, excluding nonperforming loans	$	18,003			$	5,927			$	11,270
Loans 30-89 days past due, excluding nonperforming loans, to total loans		0.56	%			0.19	%			0.37	%
Nonperforming loans	$	56,817			$	60,380			$	54,589
OREO	$	4,170			$	4,170			$	—
Nonperforming assets	$	60,987			$	64,550			$	54,589
Nonperforming loans to total loans HFI		1.76	%			1.92	%			1.79	%
Nonperforming assets to total assets		1.49	%			1.61	%			1.41	%
Allowance for loan losses	$	51,014			$	51,932			$	41,741
Allowance for loan losses to total loans HFI		1.58	%			1.65	%			1.37	%
Allowance for loan losses to nonperforming loans HFI		89.79	%			86.01	%			76.46	%
Net charge-offs	$	3,305			$	2,643			$	551
Net charge-offs to average loans		0.42	%			0.35	%			0.07	%
Capitalratios(1)
Tangible common equity to tangible assets(2)		11.07	%			11.10	%			11.53	%
Tier 1 leverage ratio		12.04	%			12.07	%			12.48	%
Tier 1 common capital to risk-weighted assets		17.61	%			17.87	%			18.89	%
Tier 1 capital to risk-weighted assets		18.17	%			18.45	%			19.50	%
Total capital to risk-weighted assets		24.00	%			24.42	%			25.67	%

___________

(1	)	June 30, 2025 capital ratios are preliminary.
(2	)	Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.

RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
Loan Portfolio Detail	As of June 30, 2025								As of March 31, 2025								As of June 30, 2024
(dollars in thousands)	$				%				$				%				$				%
Loans:
Commercial and industrial	$	138,263				4.3	%		$	135,538				4.3	%		$	126,649				4.2	%
SBA		55,984				1.7	%			50,651				1.6	%			50,323				1.7	%
Construction and land development		157,970				4.9	%			158,883				5.1	%			202,459				6.6	%
Commercial real estate(1)		1,273,442				39.4	%			1,245,402				39.6	%			1,190,207				39.1	%
Single-family residential mortgages		1,603,114				49.6	%			1,545,822				49.2	%			1,467,802				48.2	%
Other loans		5,922				0.1	%			6,767				0.2	%			10,272				0.2	%
Total loans	$	3,234,695				100.0	%		$	3,143,063				100.0	%		$	3,047,712				100.0	%
Allowance for loan losses		(51,014	)							(51,932	)							(41,741	)
Total loans, net	$	3,183,681							$	3,091,131							$	3,005,971

 

___________

(1

)

Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.

Deposits	As of June 30, 2025								As of March 31, 2025								As of June 30, 2024
(dollars in thousands)	$				%				$				%				$				%
Deposits:
Noninterest-bearing demand	$	543,885				17.1	%		$	528,205				16.8	%		$	542,971				18.0	%
Savings, NOW and money market accounts		691,679				21.7	%			721,216				22.9	%			647,770				21.4	%
Time deposits, $250,000 and under		848,379				26.6	%			863,962				27.5	%			921,712				30.5	%
Time deposits, greater than $250,000		920,481				28.8	%			870,708				27.8	%			790,478				26.1	%
Wholesale deposits(1)		183,807				5.8	%			158,537				5.0	%			120,674				4.0	%
Total deposits	$	3,188,231				100.0	%		$	3,142,628				100.0	%		$	3,023,605				100.0	%

___________

(1

)

Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

Non-GAAP Reconciliations

Tangible Book Value Reconciliations

Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company's capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders' equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of as of the dates indicated.

(dollars in thousands, except share and per share data)	June 30, 2025				March 31, 2025				June 30, 2024
Tangible common equity:
Total shareholders' equity	$	517,653			$	510,306			$	511,291
Adjustments
Goodwill		(71,498	)			(71,498	)			(71,498	)
Core deposit intangible		(1,667	)			(1,839	)			(2,394	)
Tangible common equity	$	444,488			$	436,969			$	437,399
Tangible assets:
Total assets-GAAP	$	4,090,040			$	4,009,400			$	3,868,186
Adjustments
Goodwill		(71,498	)			(71,498	)			(71,498	)
Core deposit intangible		(1,667	)			(1,839	)			(2,394	)
Tangible assets	$	4,016,875			$	3,936,063			$	3,794,294
Common shares outstanding		17,699,091				17,738,628				18,182,154
Common equity to assets ratio		12.66	%			12.73	%			13.22	%
Tangible common equity to tangible assets ratio		11.07	%			11.10	%			11.53	%
Book value per share	$	29.25			$	28.77			$	28.12
Tangible book value per share	$	25.11			$	24.63			$	24.06

Return on Average Tangible Common Equity

Management measures return on average tangible common equity ("ROATCE") to assess the Company's capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution's capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

	Three Months Ended												Six Months Ended June 30,
(dollars in thousands)	June 30, 2025				March 31, 2025				June 30, 2024				2025				2024
Net income available to common shareholders	$	9,333			$	2,290			$	7,245			$	11,623			$	15,281
Average shareholders' equity		513,691				512,262				512,185				512,981				512,486
Adjustments:
Average goodwill		(71,498	)			(71,498	)			(71,498	)			(71,498	)			(71,498	)
Average core deposit intangible		(1,780	)			(1,951	)			(2,525	)			(1,865	)			(2,625	)
Adjusted average tangible common equity	$	440,413			$	438,813			$	438,162			$	439,618			$	438,363
Return on average common equity, annualized		7.29	%			1.81	%			5.69	%			4.57	%			6.00	%
Return on average tangible common equity, annualized		8.50	%			2.12	%			6.65	%			5.33	%			7.01	%