Royal Business Bank Announces Fourth Quarter Financial Results

Los Angeles–Mr. Alan Thian, Chairman of the Board of RBB Bancorp, a single bank holding company headquartered in Los Angeles, California, announced the company’s financial results for the fourth quarter 2016.

Alan Thian is the President and CEO of Royal Business Bank.
Alan Thian is the Chairman of the Board of RBB Bancorp.

The Company reported total assets of $1.4 billion as of December 31, 2016, representing a 36.5% increase compared to December 31, 2015.  The Company acquired TFC Holding Company and its banking subsidiary on February 19, 2016 which added $495.8 million in assets, $390.6 million in loans and $405.3 million in deposits. Deposits closed at $1.2 billion, representing a 35.1% increase, when compared to December 31, 2015.  Gross loans were $1.1 billion as of December 31, 2016, compared to $833.9 million as of December 31, 2015, a 35.8% increase.

The Company sold $40.0 million in mortgage loans for a net gain of $989,000 in the quarter ended December 31, 2016, compared to $39.5 million loans sold and $563,000 net gain for the same period last year. For the twelve months ended December 31, 2016, the Company sold $180.3 million in mortgage loans for a gain of $3.4 million compared to $128.1 million loans sold and a $1.6 million net gain for the same period last year. The Company originated $280.4 million in mortgage loans during the twelve months ending December 31, 2016 and $51.3 million for the quarter ended December 31, 2016. For the same periods last year the Company originated $193.2 million and $63.4 million, respectively, in mortgage loans.

Likewise, the Company sold $10.3 million in SBA loans for a net gain of $723,000 for the quarter ended December 31, 2016 compared to 34.0 million in SBA loans sold and a net gain of $2.0 million for the same period last year. For the twelve months ending December 31, 2016 the company sold $37.9 million in SBA loans for a net gain of $2.4 million compared to $42.7 million in SBA loans sold and a net gain of $2.7 million for the same time period in 2015. SBA loan originations for the twelve months ending December 31, 2016 were $81.4 million compared to $123.6 million for the same period in 2015. SBA loan originations for the quarter ending December 31, 2016 were $13.9 million compared to $28.2 million for the same period in 2015. The decrease in SBA loan originations is due to reducing reliance on SBA brokers to originate loans. The Company’s gross loans are net of the mortgage and SBA loans sold during the quarter.

The Company reported net income of $5.7 million or $0.44 per share for the quarter ended December 31, 2016, compared to a net income of $3.7 million or $0.29 per share for the same time period in 2015. Net income for the twelve months ended December 31, 2016 was $19.1 million or $1.49 per share, compared to $13.0 million or $1.02 per share for the same period of 2015. Included in the December 31, 2016 year-to-date income is $2.0 million in conversion and integration expenses associated with the TFC merger.

Loan quality remains good with non-performing assets as a percent of total assets of 0.32% compared to 0.46% as of December 31, 2015. Non-performing assets are Other Real Estate Owned (foreclosed properties) and non-accrual loans. Allowance for loan losses (ALLL) to gross loans has increased from 1.20% as of December 31, 2015, to 1.25% as of December 31, 2016. The Company’s ALLL does not include the net discounts on purchased loans.

RBB Bancorp is a Bank Holding Company. It owns Royal Business Bank, which  provides business banking services to the Chinese-American communities in Los Angeles County, Orange County, Ventura County and in Las Vegas, including remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, SBA 7A and 504 loans, mortgage loans, trade finance and a full range of depository accounts. It also owns RBB Asset Management Company, which was formed to hold and manage problem assets acquired in business combinations. Its executive office is located at 660 S. Figueroa Street, Suite 1888, Los Angeles, California 90017.

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