RBB Bancorp Reports Q1 2025 Earnings

Rbb Bancorp ( (RBB) ) has released its Q1 earnings. Here is a breakdown of the information Rbb Bancorp presented to its investors.

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California, primarily serving Asian-centric communities across several states. It operates through its subsidiary, Royal Business Bank, offering a range of banking services including commercial and residential loans, trade finance, and wealth management services.

In the first quarter of 2025, RBB Bancorp reported a net income of $2.3 million, or $0.13 per diluted share, a decrease from the previous quarter. The company focused on reducing exposure to nonperforming loans, which impacted its earnings. Despite the challenging market environment, the company achieved a 12% annualized growth in net loans held for investment.

Key financial highlights include a net interest margin increase to 2.88% and a significant reduction in nonperforming assets by 20.3% to $64.6 million. The company also saw a $6.7 million provision for credit losses, primarily due to increased specific reserves and net charge-offs. Total assets grew to $4.0 billion, with a notable increase in interest-bearing deposits.

The company faced higher noninterest expenses, mainly due to increased salaries and benefits, resulting in a higher efficiency ratio of 65.1%. The effective tax rate rose to 28.2%, reflecting lower tax credits and higher estimated pre-tax net income.

Looking ahead, RBB Bancorp’s management remains focused on resolving nonperforming loans while anticipating continued loan growth, albeit at a more moderate pace. The company aims to navigate the volatile market environment while maintaining financial stability.