On October 23, 2023, RBB Bancorp (RBB, Financial) released its financial results for the third quarter of 2023. The company reported a net income of $12.0 million, or $0.63 diluted earnings per share, compared to $10.9 million, or $0.58 diluted earnings per share, for the previous quarter. This represents a significant increase in net income, demonstrating the company's strong financial performance.
Financial Performance and Highlights
The company's net interest income decreased to $27.6 million, while noninterest income increased to $7.7 million. Noninterest expense also decreased to $16.9 million. RBB Bancorp (RBB, Financial) also announced plans to redeem $55 million of outstanding Fixed-to-Floating Subordinated Notes due in 2028 on December 1, 2023.
We were pleased to be awarded with a $5 million Community Development Financial Institution (“CDFI”) Equitable Recovery Program (“ERP”) award by the US Treasury," said David Morris, CEO of RBB Bancorp. "We believe it is a testament to our ongoing efforts to support the communities in which we operate."
Income Statement Analysis
Net interest income before provision for credit losses was $27.6 million for the third quarter of 2023, compared to $31.9 million for the second quarter of 2023. The decrease was primarily attributable to an increase in interest expense on time deposits and a decrease in interest and fees on loans.
Balance Sheet Summary
Loans held for investment, net of deferred fees and discounts, totaled $3.1 billion as of September 30, 2023, a decrease of $75.0 million from June 30, 2023, and a decrease of $100.0 million from September 30, 2022. Total deposits were $3.2 billion as of September 30, 2023, reflecting a decrease of $21.3 million or 0.7% compared to June 30, 2023.
Cash Flow Statement and Capital Position
The company's capital position remained strong with a ratio of 17.8% tier 1 common equity to risk-weighted assets. As of September 30, 2023, the Company had $330.8 million in cash on the balance sheet, which is an increase of $84.5 million or 34.3% from June 30, 2023.
For the third quarter of 2023, the Board of Directors declared a common stock cash dividend of $0.16 per share, payable on November 10, 2023 to stockholders of record on October 30, 2023.
In conclusion, RBB Bancorp (RBB, Financial) has demonstrated a strong financial performance for the third quarter of 2023, with a significant increase in net income and a strong capital position. The company's commitment to supporting the communities in which it operates is evident in its receipt of a $5 million CDFI ERP award from the US Treasury.
