RBB Bancorp Reports Mixed Financial Results for Q1 2025

RBB Bancorp, the parent company of Royal Business Bank and RBB Asset Management Company, has released its financial results for the first quarter of 2025. The bank, which specializes in serving Asian-centric communities through a network of 24 branches across California, Nevada, New York, Illinois, New Jersey, and Hawaii, reported total assets of approximately $4.0 billion as of March 31, 2025. Notably, the company has seen a rise in gross loans held for investment, which reached $3.1 billion, mirroring the growth in total deposits, also at $3.1 billion.

For the quarter ending March 31, 2025, RBB Bancorp reported a net income of $2.3 million, translating to $0.13 diluted earnings per share. This marks a notable decline from the previous quarter’s net income of $4.3 million and a significant drop from $8.0 million reported in the same quarter of the prior year.

The provision for credit losses for Q1 2025 was $6.7 million, indicating an increase from $6.0 million in the fourth quarter of 2024. In contrast, there was no provision for credit losses in the first quarter of 2024.

RBB Bancorp’s loan portfolio remains a vital component of its earning assets. As of Q1 2025, loans held for investment reached $3.1 billion, with significant growth observed in single-family residential (SFR) loans, commercial real estate (CRE) loans, and commercial and industrial (C&I) loans. However, the bank reported a decrease of $14.4 million in construction and land development (C&D) loans.

The allowance for credit losses rose to $52.6 million, up from $48.5 million at the end of 2024. This increase reflects the provision for credit losses of $6.7 million, offset by net charge-offs of $2.6 million. Encouragingly, nonperforming assets decreased to $64.6 million, or 1.61% of total assets, down from $81.0 million at the end of 2024.

RBB Bancorp reported noninterest income of $2.3 million for Q1 2025, a decline from $2.7 million in the previous quarter and down from $3.4 million in the same quarter of last year. The decrease was primarily attributed to lower gains on the sale of loans and a reduction in other income sources.

Noninterest expenses increased to $18.5 million, compared to $17.6 million in Q4 2024 and $17.0 million in Q1 2024. This uptick is primarily due to higher salaries and employee benefits, reflecting annual pay increases and increases in payroll taxes.

RBB Bancorp maintains a strong market presence in California, where a significant portion of its loan portfolio is secured by collateral located. The bank is also well-established in New York, focusing on the Asian-centric communities in these regions. As a minority depository institution (MDI), RBB Bancorp receives support from federal regulatory agencies, which has been instrumental in its growth and community engagement.

As of March 31, 2025, total shareholders' equity stood at $510.3 million, reflecting a slight increase from the previous quarter. This growth can be attributed to lower net unrealized losses on available-for-sale securities and net income, which was offset by cash dividends paid. The book value per share rose to $28.77.

RBB Bancorp is maintaining a strong liquidity position, supported by a mix of liquid assets and access to alternative funding sources. The company has expressed confidence in its capital position and does not anticipate needing additional liquidity sources in the near term.

RBB Bancorp's financial performance in the first quarter of 2025 presents a mixed outlook. While the bank has achieved growth in loans and deposits, challenges remain evident in net income and noninterest income. The company continues to focus on its core markets and leverage its status as a minority depository institution to support growth and stability. With a robust capital position and commitment to serving low-to-moderate income communities, RBB Bancorp appears poised to navigate the complexities of the current financial landscape.