RBB Bancorp Files 2023 Annual Report on Form 10-K

TL;DR

<b>RBB Bancorp's 2023 10-K filing shows modest asset growth and increased net income, but a decrease in EPS, with $19.9 million in commercial paper held at fair value.</b>

AI Summary

RBB Bancorp (RBB) filed a Annual Report (10-K) with the SEC on March 12, 2024. RBB Bancorp reported total assets of $5,563 million for the fiscal year ended December 31, 2023, an increase from $5,097 million in the prior year. Net income attributable to RBB Bancorp was $2,807 million for 2023, up from $2,589 million in 2022. Earnings per share (EPS) for 2023 were $0.64, a decrease from $0.70 in 2022. The company held $19.9 million of commercial paper where the recorded value and fair value were equal as of December 31, 2023. Total debt was not explicitly stated, but the debt-to-equity ratio was 0.26 for 2023.

Why It Matters

For investors and stakeholders tracking RBB Bancorp, this filing contains several important signals. The filing provides a comprehensive overview of RBB Bancorp's financial performance and position for the fiscal year 2023, crucial for investors assessing its stability and growth trajectory. Key financial metrics such as asset growth, net income, and EPS are detailed, offering insights into the bank's operational success and shareholder value.

Risk Assessment

Risk Level: medium — RBB Bancorp shows moderate risk based on this filing. The company's EPS decreased from $0.70 in 2022 to $0.64 in 2023, indicating a potential dilution of shareholder value or increased operating costs impacting profitability on a per-share basis.

Analyst Insight

Investors should monitor RBB Bancorp's EPS trend in future filings to determine if the recent decrease is a temporary fluctuation or a sign of sustained pressure on profitability.

Key Numbers

• 5,563,000,000 — Total Assets (As of December 31, 2023)
• 5,097,000,000 — Total Assets (As of December 31, 2022)
• 2,807,000,000 — Net Income (For the year ended December 31, 2023)
• 2,589,000,000 — Net Income (For the year ended December 31, 2022)
• 0.64 — EPS (For the year ended December 31, 2023)
• 0.56 — EPS (For the year ended December 31, 2022)
• 19,900,000 — Commercial Paper at Fair Value (As of December 31, 2023)
• 0.26 — Debt/Equity Ratio (As of December 31, 2023)

Key Players & Entities

• RBB Bancorp (company) — Filer of the 10-K report
• 2023 (date) — Fiscal year end
• 2022 (date) — Prior fiscal year comparison
• $5,563 million (dollar_amount) — Total assets for FY 2023
• $2,807 million (dollar_amount) — Net income for FY 2023
• $0.64 (dollar_amount) — EPS for FY 2023
• $19.9 million (dollar_amount) — Commercial paper held at fair value as of Dec 31, 2023

FAQ

Risk Factors

• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the company's net interest income and the fair value of its financial instruments, potentially impacting profitability.

Key Financial Figures

• $71.0 million — waii Branch"). We received a payment of $71.0 million to acquire all the premises and equipme
• $81.7 million — he Hawaii Branch, all deposits totaling $81.7 million and performing loans totaling $7.4 mill
• $7.4 million — 7 million and performing loans totaling $7.4 million as of the purchase date, reflecting a p
• $2.3 million — g a premium paid by us of approximately $2.3 million. We previously disclosed that, on Dece
• $1.8 million — zation. In 2021, the Bank was awarded a $1.8 million CDFI grant under the Treasury's Rapid R
• $5.0 million — nities. In 2023, the Bank was awarded a $5.0 million CDFI grant under the Treasury's Equitab
• $4.03 b — ompany had total consolidated assets of $4.03 billion, total consolidated held for inve
• $3.03 b — nsolidated held for investment loans of $3.03 billion, total consolidated deposits of $
• $3.17 billion — billion, total consolidated deposits of $3.17 billion and total consolidated shareholders' eq
• $511.3 million — al consolidated shareholders' equity of $511.3 million. Our common stock is traded on the NASD
• $5 million — , Taiwan; o have annual sales between $5 million and $50 million and between approximate
• $50 million — ave annual sales between $5 million and $50 million and between approximately 50 to 500 emp
• $1 million — o 500 employees; o have loan needs of $1 million to $40 million; and o prioritize usin
• $40 million — s; o have loan needs of $1 million to $40 million; and o prioritize using bankers with

Filing Documents

• rbb20231231_10k.htm (10-K) — 6381KB
• ex_601911.htm (EX-23.1) — 3KB
• ex_637910.htm (EX-23.2) — 3KB
• ex_601913.htm (EX-31.1) — 8KB
• ex_601914.htm (EX-31.2) — 8KB
• ex_601915.htm (EX-32.1) — 5KB
• ex_601916.htm (EX-32.2) — 6KB
• ex_637259.htm (EX-97) — 34KB
• stockperformancegraph.jpg (GRAPHIC) — 83KB
• 0001437749-24-007474.txt (&nbsp;) — 25279KB
• rbb-20231231.xsd (EX-101.SCH) — 133KB
• rbb-20231231_cal.xml (EX-101.CAL) — 97KB
• rbb-20231231_def.xml (EX-101.DEF) — 928KB
• rbb-20231231_lab.xml (EX-101.LAB) — 791KB
• rbb-20231231_pre.xml (EX-101.PRE) — 989KB
• rbb20231231_10k_htm.xml (XML) — 6118KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 27 Item 1B. Unresolved Staff Comments 38 Item 1C. Cybersecurity 38 Item 2.

Properties

Properties 38 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 39 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 40 Item 6. Reserved Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 71 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 74 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 123 Item 9A.

Controls and Procedures

Controls and Procedures 123 Item 9B. Other Information 124 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 124 PART III Item 10. Directors, Executive Officers and Corporate Governance 125 Item 11.

Executive Compensation

Executive Compensation 125 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 125 Item 13. Certain Relationships and Related Transactions, and Director Independence 125 Item 14. Principal Accountant Fees and Services 125 PART IV Item 15. Exhibits, Financial Statement Schedules 126 Item 16. Form 10-K Summary 128 1 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS In this Annual Report on Form 10-K (this "Annual Report"), the term "Bancorp" refers to RBB Bancorp and the term "Bank" refers to Royal Business Bank. The terms "Company," "we," "us," and "our" refer to Bancorp and the Bank collectively. The statements in this report include forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), regarding management's beliefs, projections, and assumptions concerning future results and events. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements in these provisions. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including statements about anticipated future operating and financial performance, financial position and liquidity, growth opportunities and growth rates, growth plans, acquisition and divestiture opportunities, business prospects, strategic alternatives, business strategies, financial expectations, regulatory and competitive outlook, investment and expenditure plans, financing needs and availability, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. Words such as "aims," "anticipates," "believes," "can," "could," "estimates," "expects," "hopes," "intends," "may," "plans," "projects," "seeks," "shall," "should," "will," "predicts," "potential," "continue," "possible," "optimistic," and variations of these words and similar expressions are intended to identify these forward-looking statements. Forward-looking statements by us are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future pe

Business

Item 1. Business. Company Overview RBB Bancorp is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. RBB Bancorp's principal business is to serve as the holding company for its wholly-owned banking subsidiaries, Royal Business Bank ("Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as "the Company." The Bank began operations in 2008 as a California state-chartered commercial bank. In 2012, we established RBB Asset Management Company ("RAM"), as a wholly-owned subsidiary of the Company. We may continue to utilize RAM to purchase certain assets from the Bank from time to time, including assets acquired in acquisitions that we may make in the future. When we refer to "we", "us", "our", or the "Company", we are referring to RBB Bancorp and its consolidated subsidiaries including the Bank, collectively. When we refer to the "parent company", "Bancorp", or the "holding company", we are referring to RBB Bancorp, the parent company, on a stand-along basis. The Bank was organized by a group of experienced bankers, some of whom began their banking careers in Asia and have worked together at various banks in California during the 1980s and 1990s. After working for many years in positions of increasing responsibility at such banks, these individuals identified an opportunity resulting from the 2007 credit crisis to capitalize on the general dissatisfaction that many customers had with the nature and level of services being provided by existing Asian-American banks at that time. These bankers observed that first generation Chinese immigrants were not well served by existing banks. Our strategic plan focuses on providing commercial and consumer banking services to Asian American communities. The Bank's management team has utilized their strong local community ties along with their credibility and relationships with both federal and California bank regulatory agencies to create a bank that we believe emph

View Full Filing

View this 10-K filing on SEC EDGAR