RBB Bancorp

Good day and welcome to the RBB Bancorp Q3 2024 earnings call. At this time, all participants are on a listen-only mode. After management's prepared remarks, there will be a question and answer session. I would now like to turn the call over to Rebecca Rudow. The floor is yours.

Thank you, Kelly. Good day, everyone, and thank you for joining us to discuss RBB Bancorp's results for the third quarter of 2024. With me today, are Chief Executive Officer David Morris, President Johnny Lee, Chief Financial Officer Lynn Hopkins, Chief Credit Officer Jeffrey Yeh, Chief Operations Officer Gary Phan, and Chief Risk Officer Vincent Liu. David and Lynn will briefly summarize the results, which can be found in the earnings press release and investor presentation that are available on our investor relations website. And then we'll open up the call to your questions. I would ask that everyone please refer to the disclaimer regarding forward-looking statements in the investor presentation and the company's SEC filing. Now I'd like to turn the call over to RBB's Chief Executive Officer, David Morris. David?

Thank you, Rebecca. Good day, everyone, and thank you for joining us today. We reported third quarter net income of $7 million, or 39 cents per share, with results including a pretax $2.8 million recovery on a fully charged-off loan and a $3.3 million credit provision. Net interest margin increased by one basis point, which was less than we expected, but we remain optimistic that it will have the opportunity to expand over the next few quarters with the expected decline in short-term market interest rates. we began to see some of the deposit-funded loan growth we referenced last quarter. Loans increased by $44 million in the third quarter, supported by $175 million of loan production at a weighted average rate of 7.26 percent. Johnny will talk more about our expectations for loan growth over the next few quarters. Deposits increased by $69 million from the last quarter, with non-interest-bearing deposits remaining stable. We continue to focus on attracting and retaining core deposits to fund our loan growth. We did increase wholesale deposits in the third quarter as they were less expensive than retail deposits, but at 4.8% of total deposits, We are significantly less reliant on them than a year ago when they were at 13.9% of total deposits. Non-performing loans increased in the third quarter, and Johnny will share more information about that. But we continue to work through these loans and believe we will be able to resolve the majority of them by mid-next year. We were pleased to announce the resolution and termination of our consent order in August. Our directors and staff worked very hard to address our regulatory concerns and to strengthen our compliance programs. With this hard work behind us, we believe we have the opportunity to focus on growth and other value-creating opportunities for the bank. With that, I hand it over to Johnny.