LOS ANGELES, Jan. 26, 2026 (GLOBE NEWSWIRE) -- RBB Bancorp $(RBB)$ 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 and fiscal year ended December 31, 2025.
Fourth Quarter 2025 Highlights
-- Net income totaled $10.2 million, or $0.59 diluted earnings per share
-- Return on average assets of 0.96%, compared to 0.97% for the quarter
ended September 30, 2025
-- Net interest margin increased to 2.99%, from 2.98% for the quarter ended
September 30, 2025
-- Loans held for investment growth of $11.7 million, or 1.4% annualized
-- Classified and criticized loans decreased $31.8 million, or 25.2%, to
$94.4 million at December 31, 2025, compared to prior quarter end
-- Nonperforming assets decreased $852,000, or 1.6%, to $53.5 million at
December 31, 2025, compared to prior quarter end
-- Book value and tangible book value per share(1) increased to $30.69 and
$26.42 at December 31, 2025, up from $30.18 and $25.89 at September 30,
2025
Fiscal 2025 Highlights
-- Net income totaled $31.9 million, or $1.83 diluted earnings per share,
increased 19.8% and 24.5%, respectively, compared to fiscal 2024
-- Pre-tax pre-provision income (1) totaled $52.5 million, a 15.3% increase
compared to fiscal 2024
-- Loans held for investment growth of $261.1 million, or 8.6%
-- Classified and criticized loans decreased $71.3 million, or 43.0%, to
$94.4 million at December 31, 2025, compared to year-end 2024
-- Nonperforming assets decreased $27.6 million, or 34.0%, to $53.5 million
at December 31, 2025, compared to year-end 2024
-- Returned $25.3 million to shareholders through quarterly dividends and
common stock repurchases, while increasing book value and tangible book
value per share (1) 7.1% and 7.8% compared to prior year end
The Company reported net income of $10.2 million, or $0.59 diluted earnings per share, for the quarter ended December 31, 2025, compared to net income of $10.1 million, or $0.59 diluted earnings per share, for the quarter ended September 30, 2025. Net income for the year ended December 31, 2025 totaled $31.9 million, or $1.83 diluted earnings per share, compared to net income of $26.7 million, or $1.47 diluted earnings per share, for the year ended December 31, 2024. Net income for the year ended December 31, 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).
"The fourth quarter was a strong finish to a year with solid loan growth, improving performance ratios, and normalizing credit," said Johnny Lee, President and Chief Executive Officer of RBB Bancorp. "2025 net interest income increased 13% year-over-year and drove return on assets, net interest margin, and earnings per share for the year. I am grateful to the entire RBB team for the work they have done to return the Bank to its historical performance. We continue to work on resolving our remaining non-performing assets and remain optimistic that credit will continue to improve in future quarters."
(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 $29.5 million for the fourth quarter of 2025, compared to $29.3 million for the third quarter of 2025. The $231,000 increase was due to a $430,000 decrease in interest expense, offset by a $199,000 decrease in interest income. The decrease in interest expense was due mainly to a $496,000 decrease in interest on Federal Home Loan Bank ("FHLB") advances as a result of lower average balances while the cost remained similar. The decrease in interest income was due to the combination of a $565,000 decrease in interest on cash and investment securities, offset by a $353,000 increase in loan interest income as average loans increased.
The net interest margin ("NIM") increased 1 basis point to 2.99% for the fourth quarter of 2025 from 2.98% for the third quarter of 2025. The NIM increase included an 8 basis point decrease in the overall cost of funds combined with a 7 basis point decrease in the yield on average interest-earning assets as shorter term market interest rates moved lower. With three rate cuts in the last four months of 2025, the average overnight Federal Funds Rate was 3.90% for the fourth quarter of 2025 compared to 4.30% for the third quarter of 2025. The yield on average interest-earning assets decreased to 5.78% for the fourth quarter of 2025 from 5.85% for the third quarter of 2025 due mostly to the 5 basis point decrease of the yield on average loans to 6.07%. Average loans represented 84.0% of average interest-earning assets in the fourth quarter of 2025, as compared to 83.3% in the third quarter of 2025.
The average total cost of funds decreased 8 basis points to 3.04% for the fourth quarter of 2025 from 3.12% for the third quarter of 2025, due mostly to a 7 basis point decrease in the overall cost of deposits to 2.96% for the fourth quarter of 2025. The total cost of deposits decreased due to a 12 basis point decrease in the cost of average interest-bearing deposits to 3.51%, offset by the impact of the mix of average total deposits. Average noninterest-bearing deposits represented 15.9% of average total deposits for the fourth quarter of 2025 compared to 16.6% for the prior quarter. In addition, the overall funding mix for the fourth quarter of 2025 included higher average total deposits as maturing FHLB advances were replaced with retail and wholesale deposits. Average total deposits represented 92.7% of average total funding for the fourth quarter of 2025 compared to 91.0% for the prior quarter. The spot rate for total deposits was 2.90% at December 31, 2025.
Net interest income was $112.3 million for the year ended December 31, 2025, compared to $99.4 million for the year ended December 31, 2024. The $12.9 million increase was due to an $8.5 million decrease in interest expense and a $4.5 million increase in interest income. The increase in interest income was due mainly to a $9.3 million increase in interest and fees on loans and a $2.8 million increase in interest on investment securities, offset by a $7.5 million decrease in interest on cash balances. The decrease in interest expense was due mainly to an $11.3 million decrease in interest on deposits, offset partially by a $3.0 million increase in interest on FHLB advances.
NIM was 2.95% for fiscal 2025, an increase of 25 basis points from 2.70% for fiscal 2024. The NIM expansion included a 38 basis point decrease in the overall cost of funds, offset by an 8 basis point decrease in the yield on average interest-earning assets. With three rate cuts in the last four months of 2025, the average overnight Fed funds rate was 4.21% for fiscal 2025 compared to 5.14% for fiscal 2024. The yield on average interest-earning assets decreased 8 basis points to 5.80% for fiscal 2025 from 5.88% for fiscal 2024. Total net loan growth of $261.1 million during 2025 improved the earning-asset mix as average loans represented 83.8% of average interest-earning assets during 2025, up from 82.6% during 2024.
The average total cost of funds decreased 38 basis points to 3.11% for fiscal 2025 from 3.49% for fiscal 2024, due mostly to a 50 basis point decrease in the overall cost of deposits to 3.04%, offset partially by a 94 basis point increase in the cost of average total borrowings to 3.94%, while the overall average funding mix remained relatively unchanged year over year. The cost of total deposits decreased due to a 64 basis point decrease in the cost of average interest-bearing deposits to 3.64%, offset by the impact of the mix of average total deposits. Average noninterest-bearing deposits represented 16.6% of average total deposits for 2025 compared to 17.3% for 2024.
Provision for Credit Losses
The provision for credit losses was $600,000 for the fourth quarter of 2025 compared to $625,000 for the third quarter of 2025. The fourth quarter 2025 provision for credit losses reflected a provision for loan losses of $620,000 and a negative provision for unfunded commitments of $20,000 due to a lower volume of unfunded commitments. The fourth quarter provision for loan losses was due mainly to charge-offs and loan growth during the quarter, partially offset by positive changes in the economic forecast, and 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 totaled $1.6 million in the fourth quarter of 2025, of which $1.4 million related to an $8.4 million substandard commercial real estate loan that was paid off through a short sale of the underlying collateral. Net charge-offs on an annualized basis represented 0.20% of average loans for the fourth quarter of 2025 compared to 0.84% for the third quarter of 2025.
The provision for credit losses was $10.4 million for the year ended December 31, 2025 compared to $9.9 million for the year ended December 31, 2024. The 2025 provision for credit losses reflected a provision for loan losses of $10.6 million and a negative provision for unfunded commitments of $245,000 due to a lower volume of unfunded commitments. The 2025 provision for loan losses was due to 8.6% annual loan growth in 2025 and the resolution of certain nonperforming assets resulting in charge-offs during the year. The 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. Net charge-offs totaled $14.4 million for fiscal 2025, compared to $3.9 million for fiscal 2024. Net charge-offs represented 0.45% of average loans for fiscal 2025 compared to 0.13% for fiscal 2024.
Noninterest Income
Noninterest income for the fourth quarter of 2025 was $2.8 million, a decrease of $486,000 from $3.3 million for the third quarter of 2025. The decrease in noninterest income was mainly due to lower income from equity investments of $609,000, offset partially by higher gain on sale of loans of $197,000 in the fourth quarter of 2025. The sale of $22.0 million of mortgage loans and $2.9 million of Small Business Administration ("SBA") loans resulted in gains of $457,000 for the fourth quarter of 2025 compared to the sale of mortgage loans of $14.2 million and SBA loans of $1.9 million for gains of $260,000 for the third quarter of 2025.
Noninterest income for fiscal 2025 was $16.9 million, an increase of $1.5 million from $15.3 million for fiscal 2024. The increase was mostly due to 2025 including other income of $5.2 million for the receipt of ERC funds from the IRS. There were no such ERC amounts received or associated advisory costs recognized during 2024. This increase was offset in part by lower recoveries on a fully charged-off loan relationship of $2.5 million, lower gain on other real estate owned ("OREO") of $1.0 million, and lower gain on sale of loans of $430,000. Recoveries on this fully charged-off loan relationship totaled $365,000 for 2025, down from $2.9 million for 2024. The sale of $58.1 million of mortgage loans and $10.8 million of SBA loans resulted in gains of $1.2 million for fiscal 2025 compared to the sale of mortgage loans of $47.7 million and SBA loans of $13.8 million for gains of $1.6 million for fiscal 2024.
Noninterest Expense
Noninterest expense for the fourth quarter of 2025 was $19.0 million, an increase of $282,000 from $18.7 million for the third quarter of 2025. The increase was mainly due to higher legal and professional expenses of $151,000 and higher salaries and employee benefits of $133,000. The efficiency ratio was 58.69% for the fourth quarter of 2025, compared to 57.36% for the third quarter of 2025.
Noninterest expense for fiscal 2025 was $76.7 million, an increase of $7.5 million from $69.2 million for fiscal 2024. The increase included higher salaries and employee benefits of $3.7 million, higher legal and professional expenses of $3.0 million, of which $1.2 million related to the ERC advisory costs, and higher data processing costs of $1.0 million. The increase in compensation costs was due to the impact of raises, higher incentives due to higher production, higher health insurance premiums, and executive management transition costs. The efficiency ratio was 59.36% for the year ended December 31, 2025, compared to 60.30% for the year ended December 31, 2024.
Income Taxes
The effective tax rate was 20.2% for the fourth quarter of 2025 and 23.5% for the third quarter of 2025. The decrease in the effective tax rate for the fourth quarter of 2025 was due mostly to a reduction in the multi-state blended tax rate and benefits from state tax planning.
The effective tax rate was 24.2% for the year ended December 31, 2025 and 25.3% for the year ended December 31, 2024. The decrease in the effective tax rate for 2025 was due largely to a change in California tax law (Senate Bill 132), which changes the way banks and financial institutions apportion income for California tax purposes. This reduced the Company's blended state tax rate. In addition, other state tax planning favorably decreased the Company's tax rate in 2025.
Balance Sheet
At December 31, 2025, total assets were $4.2 billion, a $161,000 decrease compared to total assets at September 30, 2025, and a $215.8 million, or 5.4%, increase compared to total assets of $4.0 billion at December 31, 2024.
Loan and Securities Portfolio
Loans held for investment ("HFI") totaled $3.3 billion as of December 31, 2025, an increase of $11.7 million, or 1.4% annualized, compared to September 30, 2025 and an increase of $261.1 million, or 8.6%, compared to December 31, 2024. Net loan growth for the fourth quarter of 2025 included $145.0 million in originations with an average yield of 6.38%, offset mostly by payoffs/paydowns of $149.3 million, loans sold of $26.4 million, and charge-offs of $1.6 million. Net loan growth for 2025 included $712.7 million in originations and advances on existing loans of $135.9 million, offset by payoffs/paydowns of $499.6 million, loan sales of $74.0 million, and charge-offs of $14.7 million. The loan to deposit ratio was 99.0% at December 31, 2025, compared to 98.1% at September 30, 2025 and 99.4% at December 31, 2024.
As of December 31, 2025, available for sale securities ("AFS") totaled $407.2 million, a decrease of $3.4 million from September 30, 2025, primarily related to maturities and paydowns of $49.0 million, offset by purchases of $44.0 million during the fourth quarter of 2025. As of December 31, 2025, net unrealized pre-tax losses totaled $18.9 million, a $1.6 million decrease when compared to net unrealized pre-tax losses of $20.5 million as of September 30, 2025.
Deposits
Total deposits were $3.4 billion as of December 31, 2025, a decrease of $16.1 million, or 1.9% annualized, compared to September 30, 2025 and an increase of $266.6 million, or 8.6%, compared to December 31, 2024. The decrease in total deposits during the fourth quarter of 2025 was due to a $42.4 million decrease in wholesale deposits, offset by a $26.3 million increase in retail deposits. The increase in retail deposits included a shift to non-maturity deposits from traditional time deposits as interest-bearing non-maturity deposits increased $234.6 million, while retail time deposits and noninterest-bearing deposits decreased $184.4 million and $24.0 million, respectively.
The increase in total deposits during 2025 was due to a $188.4 million increase in retail deposits and $78.2 million increase in wholesale deposits, in support of loan growth and lowering reliance on maturing FHLB advances. The 2025 retail deposit growth included a shift to non-maturity deposits from traditional time deposits as interest-bearing non-maturity deposits increased $293.3 million, while retail time deposits and noninterest-bearing deposits decreased $68.4 million and $36.5 million, respectively. Noninterest-bearing deposits totaled $526.5 million, or 15.7% of total deposits, at December 31, 2025 compared to $550.5 million, or 16.4% of total deposits, at September 30, 2025, and $563.0 million, or 18.3% of total deposits, at December 31, 2024.
Credit Quality
Nonperforming assets totaled $53.5 million, or 1.27% of total assets, at December 31, 2025, down from $54.3 million, or 1.29% of total assets, at September 30, 2025, and down from $81.0 million, or 2.03% of total assets, at December 31, 2024. Nonperforming assets included the same $8.8 million of OREO (included in "accrued interest and other assets") at December 31, 2025 and September 30, 2025, and there was no OREO outstanding at December 31, 2024.
Nonperforming loans ("NPLs") totaled $44.6 million at December 31, 2025, down from $45.5 million at September 30, 2025 and down from $81.0 million at December 31, 2024. The $852,000 decrease in NPLs during the fourth quarter of 2025 was due to $1.1 million in payoffs and paydowns and $186,000 in net charge-offs, partially offset by additions of $408,000. The $36.4 million decrease in NPLs during 2025 was due to the Company's focus on resolving problem loans. The decrease in NPLs included $15.3 million in payoffs and paydowns, $7.0 million in loan sales, $6.0 million in upgrades and internal refinance, $5.3 million in net loans which migrated to and remain in OREO, $1.3 million in charge-offs of fully resolved loans, and $10.4 million in partial charge-offs for outstanding NPLs. These decreases were offset by additions to NPLs of $8.9 million.
Substandard loans, also referred to as classified loans, totaled $75.2 million at December 31, 2025, down from $76.9 million at September 30, 2025 and $100.3 million at December 31, 2024. The $1.7 million decrease in substandard loans during the fourth quarter of 2025 was primarily due to payoffs and paydowns totaling $9.1 million, charge-offs of $1.6 million, and upgrades to pass-rated loans of $1.2 million, partially offset by downgrades to substandard totaling $10.1 million.
The $25.2 million decrease in substandard loans during fiscal 2025 was primarily due to payoffs and paydowns totaling $12.1 million, loans which migrated to OREO totaling $12.9 million, charge-offs of $11.7 million, loan sales of $7.6 million, and upgrades to pass-rated loans and internal refinances of $7.3 million, partially offset by downgrades to substandard loans totaling $26.4 million. Of the total substandard loans outstanding at December 31, 2025, there were $30.5 million, or 40% of such loans, on accrual status.
Special mention loans, also referred to as criticized loans, totaled $19.2 million, or 0.58% of total loans, at December 31, 2025, down from $49.3 million, or 1.49% of total loans, at September 30, 2025, and down from $65.3 million, or 2.14% of total loans, at December 31, 2024. The $30.1 million decrease for the fourth quarter of 2025 was primarily due to upgrades of $21.7 million to pass-rated loans, downgrades to substandard-rated loans of $9.1 million, and payoffs and paydowns of $3.4 million, partially offset by downgrades to special mention of $4.1 million. The $46.1 million decrease during fiscal 2025 was primarily due to upgrades of $45.9 million to pass-rated loans, downgrades to substandard-rated loans of $3.9 million, payoffs and paydowns of $7.9 million, and charge-offs of $1.3 million, partially offset by downgrades to special mention of $12.9 million. As of December 31, 2025, all special mention loans were paying current.
30-89 day delinquent loans, excluding nonperforming loans, totaled $8.8 million, or 0.27% of total loans, at December 31, 2025, up from $6.5 million, or 0.20% of total loans, at September 30, 2025, and down from $22.1 million, or 0.72% of total loans at December 31, 2024. The $2.3 million increase for the fourth quarter of 2025 was mainly due to $5.9 million in new delinquent loans, offset by $3.5 million in loans returning to current status. The $13.3 million decrease during 2025 was mainly due to $14.6 million in loans returning to current status, offset by $7.5 million in new delinquent loans.
As of December 31, 2025, the allowance for credit losses totaled $44.4 million and was comprised of an allowance for loan losses of $43.9 million and a reserve for unfunded commitments of $484,000 (included in "accrued interest and other liabilities"). This compares to the allowance for credit losses of $45.4 million, comprised of an allowance for loan losses of $44.9 million and a reserve for unfunded commitments of $504,000 at September 30, 2025. The $1.0 million decrease in the allowance for credit losses for the fourth quarter of 2025 was due to net charge-offs of $1.6 million, offset by a $600,000 provision for credit losses. The allowance for loan losses as a percentage of loans HFI totaled 1.32% at December 31, 2025, compared to 1.36% at September 30, 2025. The allowance for loan losses as a percentage of nonperforming loans HFI was 98.3% at December 31, 2025, down from 98.7% at September 30, 2025.
For the Three Months Ended December
31, 2025 For the Year Ended December 31, 2025
------------------------------------- -------------------------------------
Reserve for Allowance Reserve for Allowance
Allowance unfunded for Allowance unfunded for
for loan loan credit for loan loan credit
(dollars in thousands) losses commitments losses losses commitments losses
---------- ------------ --------- ---------- ------------ ---------
Beginning balance $ 44,892 $ 504 $ 45,396 $ 47,729 $ 729 $ 48,458
Provision for (reversal
of) credit losses 620 (20) 600 10,603 (245) 10,358
Less loans charged-off (1,628) -- (1,628) (14,712) -- (14,712)
Recoveries on loans
charged-off 4 -- 4 268 -- 268
--------- ----------- -------- --------- ----------- --------
Ending balance $ 43,888 $ 484 $ 44,372 $ 43,888 $ 484 $ 44,372
========= =========== ======== ========= =========== ========
Shareholders' Equity
At December 31, 2025, total shareholders' equity was $523.4 million, a $9.1 million increase compared to September 30, 2025, and a $15.5 million increase compared to December 31, 2024. The increase in shareholders' equity for the fourth quarter of 2025 was due mostly to net income of $10.2 million and lower net unrealized losses on AFS securities of $1.1 million, offset by common stock cash dividends paid of $2.8 million.
The increase in shareholders' equity during 2025 was due to net income of $31.9 million, lower net unrealized losses on AFS securities of $6.9 million, and equity compensation activity of $1.9 million, offset by common stock repurchases totaling $14.0 million and common stock cash dividends paid of $11.3 million. Book value per share and tangible book value per share(1) increased to $30.69 and $26.42 at December 31, 2025, up from $30.18 and $25.89 at September 30, 2025 and up from $28.66 and $24.51 at December 31, 2024, respectively.
Dividend Announcement
The Board of Directors has declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on February 13, 2026 to shareholders of record on January 30, 2026.
Contact:
Lynn Hopkins, Chief Financial Officer
(213) 716-8066
lhopkins@rbbusa.com
(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 December 31, 2025, the Company had total assets of $4.2 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, January 27, 2026, to discuss the Company's fourth quarter and fiscal year 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 762691, conference ID RBBQ425. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 53450, approximately one hour after the conclusion of the call and will remain available through February 10, 2026.
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; federal government shutdowns and uncertainty regarding the federal government's debt limit; 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; 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)
December September December
31, 30, June 30, March 31, 31,
2025 2025 2025 2025 2024
---------- ---------- ---------- ---------- ----------
Assets
Cash and due from banks $ 27,086 $ 24,251 $ 27,338 $ 25,315 $ 27,747
Interest-earning
deposits with
financial
institutions 185,231 210,679 164,514 213,508 229,998
--------- --------- --------- --------- ---------
Cash and cash
equivalents 212,317 234,930 191,852 238,823 257,745
Interest-earning time
deposits with
financial
institutions 600 600 600 600 600
Investment securities
available for sale 407,204 410,631 413,142 378,188 420,190
Investment securities
held to maturity 4,184 4,185 4,186 5,188 5,191
Loans held for sale 2,067 756 -- 655 11,250
Loans held for
investment 3,314,301 3,302,577 3,234,695 3,143,063 3,053,230
Allowance for loan
losses (43,888) (44,892) (51,014) (51,932) (47,729)
--------- --------- --------- --------- ---------
Net loans held for
investment 3,270,413 3,257,685 3,183,681 3,091,131 3,005,501
Premises and equipment,
net 23,540 23,851 23,945 24,308 24,601
Federal Home Loan Bank
(FHLB) stock 15,000 15,000 15,000 15,000 15,000
Cash surrender value of
bank owned life
insurance 61,972 61,538 61,111 60,699 60,296
Goodwill 71,498 71,498 71,498 71,498 71,498
Servicing assets 6,041 6,252 6,482 6,766 6,985
Core deposit
intangibles 1,338 1,495 1,667 1,839 2,011
Right-of-use assets 23,026 24,305 25,554 26,779 28,048
Accrued interest and
other assets 109,094 95,729 91,322 87,926 83,561
--------- --------- --------- --------- ---------
Total assets $4,208,294 $4,208,455 $4,090,040 $4,009,400 $3,992,477
========= ========= ========= ========= =========
Liabilities and
shareholders' equity
Deposits:
Noninterest-bearing
demand $ 526,538 $ 550,488 $ 543,885 $ 528,205 $ 563,012
Savings, NOW and
money market
accounts 956,299 721,697 691,679 721,216 663,034
Time deposits,
$250,000 and under 974,670 1,119,258 1,010,674 1,000,106 1,007,452
Time deposits,
greater than
$250,000 892,891 975,054 941,993 893,101 850,291
--------- --------- --------- --------- ---------
Total deposits 3,350,398 3,366,497 3,188,231 3,142,628 3,083,789
FHLB advances 130,000 130,000 180,000 160,000 200,000
Long-term debt, net of
issuance costs 119,911 119,815 119,720 119,624 119,529
Subordinated debentures 15,375 15,320 15,265 15,211 15,156
Lease liabilities -
operating leases 24,800 26,066 27,294 28,483 29,705
Accrued interest and
other liabilities 44,400 36,422 41,877 33,148 36,421
--------- --------- --------- --------- ---------
Total liabilities 3,684,884 3,694,120 3,572,387 3,499,094 3,484,600
--------- --------- --------- --------- ---------
Shareholders' equity:
Common stock 250,694 250,362 259,863 260,284 259,957
Additional paid-in
capital 3,941 3,734 3,579 3,360 3,645
Retained earnings 282,024 274,608 270,152 263,885 264,460
Non-controlling
interest 72 72 72 72 72
Accumulated other
comprehensive loss,
net (13,321) (14,441) (16,013) (17,295) (20,257)
--------- --------- --------- --------- ---------
Total shareholders'
equity 523,410 514,335 517,653 510,306 507,877
--------- --------- --------- --------- ---------
Total liabilities
and
shareholders'
equity $4,208,294 $4,208,455 $4,090,040 $4,009,400 $3,992,477
========= ========= ========= ========= =========
RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except share and per share data)
For the Twelve Months
For the Three Months Ended Ended
December September December December December
31, 2025 30, 2025 31, 2024 31, 2025 31, 2024
Interest and dividend
income:
Interest and fees on
loans $ 50,447 $ 50,094 $ 46,374 $ 193,849 $ 184,567
Interest on
interest-earning
deposits 2,027 2,140 3,641 7,931 15,422
Interest on
investment
securities 4,140 4,592 3,962 17,081 14,331
Dividend income on
FHLB stock 331 327 330 1,312 1,314
Interest on federal
funds sold and
other 248 239 248 953 1,027
Total interest and
dividend income 57,193 57,392 54,555 221,126 216,661
Interest expense:
Interest on savings
deposits, NOW and
money market
accounts 5,316 4,674 4,671 19,025 19,295
Interest on time
deposits 19,588 20,152 21,361 78,074 89,086
Interest on
long-term debt and
subordinated
debentures 1,623 1,635 1,660 6,524 6,699
Interest on FHLB
advances 1,158 1,654 886 5,221 2,217
Total interest
expense 27,685 28,115 28,578 108,844 117,297
Net interest
income before
provision for
credit losses 29,508 29,277 25,977 112,282 99,364
Provision for credit
losses 600 625 6,000 10,358 9,857
Net interest
income after
provision for
credit losses 28,908 28,652 19,977 101,924 89,507
Noninterest income:
Service charges and
fees 1,011 1,099 988 4,187 4,115
Gain on sale of
loans 457 260 376 1,156 1,586
Loan servicing fees,
net of
amortization 556 564 492 2,249 2,265
Increase in cash
surrender value of
life insurance 435 427 407 1,676 1,577
Gain on OREO -- -- -- -- 1,016
Other income 348 943 466 7,605 4,776
Total noninterest
income 2,807 3,293 2,729 16,873 15,335
Noninterest expense:
Salaries and
employee benefits 10,733 10,600 9,927 43,056 39,395
Occupancy and
equipment expenses 2,435 2,425 2,403 9,644 9,803
Data processing 1,750 1,805 1,499 6,870 5,857
Legal and
professional 1,601 1,450 1,355 7,470 4,453
Office expenses 477 444 399 1,734 1,455
Marketing and
business promotion 202 252 251 863 864
Insurance and
regulatory
assessments 753 732 677 2,924 3,298
Core deposit premium 156 172 182 672 784
Other expenses 858 803 956 3,430 3,254
Total noninterest
expense 18,965 18,683 17,649 76,663 69,163
Income before
income taxes 12,750 13,262 5,057 42,134 35,679
Income tax expense 2,573 3,114 672 10,186 9,014
Net income $ 10,177 $ 10,148 $ 4,385 $ 31,948 $ 26,665
Net income per
share
Basic $ 0.60 $ 0.59 $ 0.25 $ 1.83 $ 1.47
Diluted $ 0.59 $ 0.59 $ 0.25 $ 1.83 $ 1.47
Cash dividends
declared per
common share $ 0.16 $ 0.16 $ 0.16 $ 0.64 $ 0.64
Weighted-average
common shares
outstanding
Basic 17,049,834 17,225,702 17,704,992 17,435,027 18,121,764
Diluted 17,140,478 17,301,627 17,796,840 17,500,330 18,183,319
RBB BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
(Unaudited)
For the Three Months Ended
December 31, 2025 September 30, 2025 December 31, 2024
(tax-equivalent basis, Yield
dollars in thousands) Average Interest Yield / Average Interest Yield / Average Interest /
Balance & Fees Rate Balance & Fees Rate Balance & Fees Rate
Interest-earning assets
Cash and cash
equivalents (1) $ 209,899 $ 2,275 4.30% $ 202,317 $ 2,380 4.67% $ 308,455 $ 3,890 5.02%
FHLB Stock 15,000 331 8.75% 15,000 327 8.65% 15,000 330 8.75%
Securities
Available for sale (2) 399,805 4,127 4.10% 429,936 4,578 4.22% 361,253 3,939 4.34%
Held to maturity (2) 4,184 38 3.60% 4,186 38 3.60% 5,194 48 3.68%
Total loans (3) 3,295,603 50,447 6.07% 3,245,193 50,095 6.12% 3,059,786 46,374 6.03%
Total
interest-earning
assets 3,924,491 $ 57,218 5.78% 3,896,632 $ 57,418 5.85% 3,749,688 $ 54,581 5.79%
Total
noninterest-earning
assets 264,604 255,052 244,609
Total average assets $4,189,095 $4,151,684 $3,994,297
Interest-bearing
liabilities
NOW $ 78,039 456 2.32% $ 69,800 $ 406 2.31% $ 53,879 $ 254 1.88%
Money market 525,828 3,987 3.01% 491,561 3,861 3.12% 463,850 3,735 3.20%
Saving deposits 191,841 873 1.81% 138,344 407 1.17% 162,351 682 1.67%
Time deposits, $250,000
and under 1,044,315 9,927 3.77% 1,050,682 10,312 3.89% 1,034,946 11,583 4.45%
Time deposits, greater
than $250,000 972,354 9,661 3.94% 960,094 9,840 4.07% 835,583 9,778 4.66%
Total interest-bearing
deposits 2,812,377 24,904 3.51% 2,710,481 24,826 3.63% 2,550,609 26,032 4.06%
FHLB advances 130,000 1,158 3.53% 185,217 1,654 3.54% 200,000 886 1.76%
Long-term debt 119,848 1,295 4.29% 119,752 1,295 4.29% 119,466 1,295 4.31%
Subordinated debentures 15,339 328 8.48% 15,284 340 8.83% 15,121 365 9.60%
Total borrowings 265,187 2,781 4.16% 320,253 3,289 4.07% 334,587 2,546 3.03%
Total
interest-bearing
liabilities 3,077,564 27,685 3.57% 3,030,734 28,115 3.68% 2,885,196 28,578 3.94%
Noninterest-bearing
liabilities
Noninterest-bearing
deposits 531,017 541,083 539,900
Other
noninterest-bearing
liabilities 61,320 66,993 56,993
Total
noninterest-bearing
liabilities 592,337 608,076 596,893
Shareholders' equity 519,194 512,874 512,208
Total liabilities
and shareholders'
equity $4,189,095 $4,151,684 $3,994,297
Net interest income /
interest rate spreads $ 29,533 2.21% $ 29,303 2.17% $ 26,003 1.85%
Net interest margin 2.99% 2.98% 2.76%
Total cost of deposits $3,343,394 $ 24,904 2.96% $3,251,564 $ 24,826 3.03% $3,090,509 $ 26,032 3.35%
Total cost of funds $3,608,581 $ 27,685 3.04% $3,571,817 $ 28,115 3.12% $3,425,096 $ 28,578 3.32%
_____________________
(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)
For the Year Ended December 31,
------------------------------------------------------------
2025 2024
--------------------------- ---------------------------
Yield Yield
Average Interest / Average Interest /
(tax-equivalent basis,
dollars in thousands) Balance & Fees Rate Balance & Fees Rate
---------- -------- ----- ---------- -------- -----
Interest-earning assets
Cash and cash equivalents
(1) $ 192,642 $ 8,885 4.61% $ 297,331 $ 16,449 5.53%
FHLB Stock 15,000 1,312 8.75% 15,000 1,314 8.76%
Securities
Available for sale (2) 404,929 17,006 4.20% 324,644 14,242 4.39%
Held to maturity (2) 4,643 172 3.70% 5,200 188 3.62%
Total loans (3) 3,198,619 193,849 6.06% 3,041,337 184,567 6.07%
--------- ------- --------- -------
Total interest-earning
assets 3,815,833 $221,224 5.80% 3,683,512 $216,760 5.88%
======= =======
Total
noninterest-earning
assets 258,550 243,258
--------- ---------
Total average assets $4,074,383 $3,926,770
========= =========
Interest-bearing
liabilities
NOW $ 69,003 1,551 2.25% $ 56,158 $ 1,105 1.97%
Money market 491,048 15,247 3.10% 436,925 15,231 3.49%
Saving deposits 156,728 2,227 1.42% 162,243 2,959 1.82%
Time deposits, $250,000
and under 1,020,451 40,053 3.93% 1,074,291 50,059 4.66%
Time deposits, greater
than $250,000 930,325 38,021 4.09% 803,187 39,027 4.86%
--------- ------- --------- -------
Total interest-bearing
deposits 2,667,555 97,099 3.64% 2,532,804 108,381 4.28%
FHLB advances 162,767 5,221 3.21% 162,705 2,217 1.36%
Long-term debt 119,706 5,182 4.33% 119,324 5,182 4.34%
Subordinated debentures 15,257 1,342 8.80% 15,039 1,517 10.09%
--------- ------- --------- -------
Total borrowings 297,730 11,745 3.94% 297,068 8,916 3.00%
Total
interest-bearing
liabilities 2,965,285 108,844 3.67% 2,829,872 117,297 4.14%
--------- ------- --------- -------
Noninterest-bearing
liabilities
Noninterest-bearing
deposits 529,651 531,458
Other noninterest-bearing
liabilities 64,927 53,970
--------- ---------
Total
noninterest-bearing
liabilities 594,578 585,428
--------- ---------
Shareholders' equity 514,520 511,470
--------- ---------
Total liabilities and
shareholders'
equity $4,074,383 $3,926,770
========= =========
Net interest income /
interest rate spreads $112,380 2.13% $ 99,463 1.74%
======= =======
Net interest margin 2.95% 2.70%
===== =====
Total cost of deposits $3,197,206 $ 97,099 3.04% $3,064,262 $108,381 3.54%
Total cost of funds $3,494,936 $108,844 3.11% $3,361,330 $117,297 3.49%
_____________________
(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 Year
Ended December
At or for the Three Months Ended 31,
----------------------------------- ------------------
December
December 31, September 30, 31,
2025 2025 2024 2025 2024
------------ ------------- ---------- ---------- ----------
Per share data
(common stock)
Book value $30.69 $ 30.18 $28.66 $30.69 $28.66
Tangible book
value (1) $26.42 $ 25.89 $24.51 $26.42 $24.51
Performance
ratios
Return on average
assets,
annualized 0.96% 0.97% 0.44% 0.78% 0.68%
Return on average
shareholders'
equity,
annualized 7.78% 7.85% 3.41% 6.21% 5.21%
Return on average
tangible common
equity,
annualized (1) 9.05% 9.16% 3.98% 7.24% 6.09%
Noninterest income
to average
assets,
annualized 0.27% 0.31% 0.27% 0.41% 0.39%
Noninterest
expense to
average assets,
annualized 1.80% 1.79% 1.76% 1.88% 1.76%
Yield on average
earning assets 5.78% 5.85% 5.79% 5.80% 5.88%
Yield on average
loans 6.07% 6.12% 6.03% 6.06% 6.07%
Cost of average
total deposits
(2) 2.96% 3.03% 3.35% 3.04% 3.54%
Cost of average
interest-bearing
deposits 3.51% 3.63% 4.06% 3.64% 4.28%
Cost of average
interest-bearing
liabilities 3.57% 3.68% 3.94% 3.67% 4.14%
Net interest
spread 2.21% 2.17% 1.85% 2.13% 1.74%
Net interest
margin 2.99% 2.98% 2.76% 2.95% 2.70%
Efficiency ratio
(3) 58.69% 57.36% 61.48% 59.36% 60.30%
Common stock
dividend payout
ratio 26.67% 27.12% 64.00% 34.97% 43.54%
_____________________
(1) Non-GAAP measure. See Non--GAAP reconciliations set
forth at the end of this press release.
(2) Total deposits include noninterest-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
---------------------------------------------------
December 31, September 30, December 31,
2025 2025 2024
------------- ------------- -------------
Credit Quality
Data:
Special mention
loans $ 19,237 $ 49,349 $ 65,329
Special mention
loans to total
loans HFI 0.58% 1.49% 2.14%
Substandard
loans HFI $ 75,175 $ 76,880 $ 89,141
Substandard
loans HFS $ -- $ -- $ 11,195
Substandard
loans HFI to
total loans
HFI 2.27% 2.33% 2.92%
Loans 30-89
days past due,
excluding
nonperforming
loans $ 8,789 $ 6,533 $ 22,086
Loans 30-89
days past due,
excluding
nonperforming
loans, to
total loans 0.27% 0.20% 0.72%
Nonperforming
loans HFI $ 44,632 $ 45,484 $ 69,843
Nonperforming
loans HFS -- -- 11,195
OREO 8,830 8,830 --
--------- --------- ---------
Nonperforming
assets $ 53,462 $ 54,314 $ 81,038
========= ========= =========
Nonperforming
loans to total
loans HFI 1.35% 1.38% 2.29%
Nonperforming
assets to
total assets 1.27% 1.29% 2.03%
Allowance for
loan losses $ 43,888 $ 44,892 $ 47,729
Allowance for
loan losses to
total loans
HFI 1.32% 1.36% 1.56%
Allowance for
loan losses to
nonperforming
loans HFI 98.33% 98.70% 68.34%
Net charge-offs $ 1,624 $ 6,872 $ 2,006
Net charge-offs
to average
loans 0.20% 0.84% 0.26%
Capital ratios
(1)
Tangible common
equity to
tangible
assets (2) 10.90% 10.67% 11.08%
Tier 1 leverage
ratio 11.60% 11.50% 11.92%
Tier 1 common
capital to
risk-weighted
assets 17.49% 17.28% 17.94%
Tier 1 capital
to
risk-weighted
assets 18.06% 17.85% 18.52%
Total capital
to
risk-weighted
assets 23.83% 23.64% 24.49%
_____________________
(1) December 31, 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)
As of December 31, As of September As of December 31,
Loan Portfolio Detail 2025 30, 2025 2024
------------------ ------------------ ------------------
(dollars in thousands) $ % $ % $ %
---------- ----- ---------- ----- ---------- -----
Loans:
Single-family
residential
mortgages $1,655,382 50.0% $1,650,989 50.0% $1,494,022 48.9%
Commercial real estate
(1) 1,303,019 39.3% 1,286,603 39.0% 1,201,420 39.3%
Construction and land
development 155,464 4.7% 159,152 4.8% 173,290 5.7%
Commercial and
industrial 140,061 4.2% 146,667 4.4% 129,585 4.2%
SBA 55,978 1.7% 54,033 1.6% 47,263 1.5%
Other loans 4,397 0.1% 5,133 0.2% 7,650 0.4%
--------- ----- --------- ----- --------- -----
Total loans held for
investment $3,314,301 100.0% $3,302,577 100.0% $3,053,230 100.0%
===== ===== =====
Allowance for loan
losses (43,888) (44,892) (47,729)
--------- --------- ---------
Total loans held
for investment,
net $3,270,413 $3,257,685 $3,005,501
========= ========= =========
_____________________
(1) Includes non-farm and non-residential loans, multi-family
residential loans and non-owner occupied single family
residential loans.
As of December 31, As of September 30, As of December 31,
Deposits 2025 2025 2024
--------------------- -------------------- -------------------
(dollars in thousands) $ % $ % $ %
---------- --------- ---------- -------- ---------- -------
Deposits:
Noninterest-bearing
demand $ 526,538 15.7% $ 550,488 16.4% $ 563,012 18.3%
Savings, NOW and money
market accounts 956,299 28.6% 721,697 21.4% 663,034 21.5%
Time deposits,
$250,000 and under 790,225 23.6% 872,463 25.9% 882,438 28.6%
Time deposits, greater
than $250,000 851,637 25.4% 953,785 28.3% 827,854 26.8%
Wholesale deposits (1) 225,699 6.7% 268,064 8.0% 147,451 4.8%
--------- ----- --------- -------- --------- -------
Total deposits $3,350,398 100.0% $3,366,497 100.0% $3,083,789 100.0%
========= ===== ========= ======== ========= =======
_____________________
(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 December September December
share data) 31, 2025 30, 2025 31, 2024
----------- ----------- -----------
Tangible common equity:
Total shareholders'
equity $ 523,410 $ 514,335 $ 507,877
Adjustments
Goodwill (71,498) (71,498) (71,498)
Core deposit
intangible (1,338) (1,495) (2,011)
---------- ---------- ----------
Tangible common equity $ 450,574 $ 441,342 $ 434,368
========== ========== ==========
Tangible assets:
Total assets-GAAP $ 4,208,294 $ 4,208,455 $ 3,992,477
Adjustments
Goodwill (71,498) (71,498) (71,498)
Core deposit
intangible (1,338) (1,495) (2,011)
---------- ---------- ----------
Tangible assets $ 4,135,458 $ 4,135,462 $ 3,918,968
========== ========== ==========
Common shares
outstanding 17,057,397 17,043,897 17,720,416
Common equity to assets
ratio 12.44% 12.22% 12.72%
Tangible common equity
to tangible assets
ratio 10.90% 10.67% 11.08%
Book value per share $ 30.69 $ 30.18 $ 28.66
Tangible book value per
share $ 26.42 $ 25.89 $ 24.51
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 Year Ended December 31,
--------------------------------------- -----------------------
December
December September 31,
(dollars in thousands) 31, 2025 30, 2025 2024 2025 2024
--------- ---------- -------- -------- ---------
Net income available to
common shareholders $ 10,177 $ 10,148 $ 4,385 $ 31,948 $ 26,665
Average shareholders'
equity $ 519,194 $ 512,874 $512,208 $514,520 $ 511,470
Adjustments:
Average goodwill (71,498) (71,498) (71,498) (71,498) (71,498)
Average core
deposit
intangible (1,440) (1,608) (2,129) (1,693) (2,425)
-------- --------- ------- ------- --------
Adjusted average
tangible common equity $ 446,256 $ 439,768 $438,581 $441,329 $ 437,547
======== ========= ======= ======= ========
Return on average common
equity, annualized 7.78% 7.85% 3.41% 6.21% 5.21%
Return on average
tangible common equity,
annualized 9.05% 9.16% 3.98% 7.24% 6.09%
Pre-Tax Pre-Provision Income
Management believes that pre-tax pre-provision ("PTPP") income is a useful measure for investors to evaluate core operating performance, excluding the volatility of credit provision expenses. PTPP income is calculated by subtracting noninterest expense from the sum of net interest income and noninterest income, as shown in the following table.
Year Ended December
Three Months Ended 31,
--------------------------------- --------------------
December
December September 31,
(dollars in thousands) 31, 2025 30, 2025 2024 2025 2024
--------- ---------- -------- -------- ---------
Net interest income
before provision for
credit losses $ 29,508 $ 29,277 $ 25,977 $112,282 $ 99,364
Add: Noninterest income 2,807 3,293 2,729 16,873 15,335
Less: Noninterest
expense (18,965) (18,683) (17,649) (76,663) (69,163)
-------- --------- ------- ------- --------
Pre-tax pre-provision
income $ 13,350 $ 13,887 $ 11,057 $ 52,492 $ 45,536
======== ========= ======= ======= ========
(END) Dow Jones Newswires
January 26, 2026 16:23 ET (21:23 GMT)