RBB Bancorp (RBB) Q2 2025 Earnings Call Transcript

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Tuesday, July 22, 2025 astatine 2 p.m. ET

• President and CEO — Johnny Lee

• EVP and CFO — Lynn Hopkins

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Johnny Lee: Thank you, Rebecca. Good day, everyone, and convey you for joining america today. Second 4th nett income totaled $9.3 cardinal oregon $0.52 per stock and included $2.9 cardinal of after-tax nett income for an worker retention taxation recognition refund. The summation successful nett income was besides driven by different 4th of coagulated indebtedness maturation and unchangeable earning plus yields, which supported a $1.2 cardinal summation successful nett involvement income and a 4 ground constituent summation successful NIM. Loans held for concern grew by $92 cardinal oregon 12% connected an annualized basis, with maturation successful astir each categories. We proceed to spot beardown results from our in-house owe origination business, which originated $120 cardinal of mortgages successful the 2nd quarter.

These contributed to our full 2nd 4th indebtedness originations of $183 cardinal astatine a blended output of 6.76%, which volition proceed to enactment our plus yields and margins going forward. Our pipelines stay full, truthful we expect to proceed to spot indebtedness growth, though apt astatine a much mean gait than we experienced successful the archetypal and 2nd quarters. We're pleased with our indebtedness maturation truthful acold this twelvemonth and judge we're making bully advancement connected our efforts to grow originations. Net involvement borderline accrued to 2.92% and has accrued by 25 ground points implicit the past 4 quarters. Absent complaint cuts, our backing costs are apt adjacent to stabilizing astatine this level.

And astatine the aforesaid time, we whitethorn spot increases successful yields connected earning assets, which should enactment incremental borderline increases implicit the adjacent fewer quarters. We stay focused connected resolving our nonperforming loans arsenic rapidly arsenic imaginable portion minimizing the interaction to net and capital. We did person immoderate charge-offs, which Lynn volition sermon successful much detail, but we bash not spot immoderate summation successful our full nonperforming loans successful the 2nd quarter. Criticized and classified assets increased. However, bulk of the additions this 4th are loans stay connected accrual status. We proceed to enactment done our remaining nonperforming criticized and classified assets and expect to beryllium capable to study further advancement successful the coming quarters.

With that, I volition manus it implicit to Lynn to speech astir the results successful much detail. Lynn?

Lynn Hopkins: Thanks, Jhonny. Please consciousness escaped to notation to the capitalist presumption we person provided, arsenic I stock my comments connected the company's 2nd 4th of 2025 fiscal performance. Slide 3 of our capitalist presumption has a summary of our 2nd 4th results. As Johnny mentioned, nett income was $9.3 cardinal oregon $0.52 per diluted share. Second 4th results benefited from the designation of a $5.2 cardinal worker retention recognition oregon ERC refund, which is included successful different income. We besides recognized related ERC advisory costs of $1.2 million, which are included successful nonrecreational work fees. There is nary akin income oregon disbursal successful immoderate of the different quarterly periods presented.