RBB Bancorp

Greetings and welcome to the RBB Bancorp second quarter 2025 earnings call. At this time, all participants are on a listen-only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Rebecca Rico. Mom, the floor is yours.

Thank you, Ali. Good day, everyone, and thank you for joining us to discuss RBB Bancorp's results for the second quarter of 2025. With me today are President and CEO, Johnny Lee, Chief Financial Officer, Ben Hopkins, and Chief Credit Officer, Jeffrey Yeh. Johnny and Lynn will briefly summarize the results, which can be found in the earnings personis and investor presentation. They're 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 filings. Now, I'd like to turn the call over to RBB Bancorp's President and Chief Executive Officer, Johnny Lee. Johnny?

Thank you, Rebecca. Good day, everyone, and thank you for joining us today. Second quarter net income totaled $9.3 million, or 52 cents per share, and included $2.9 million of after-tax net income for an employee retention tax credit refund. The increase in net income was also driven by another quarter of solid loan growth in stable earning asset yields, which supported a $1.2 million increase in net interest income and a four basis point increase in net. Loan's healthful investment grew by $92 million, or 12% on an annualized basis, with growth in almost all categories. We continue to see strong results from our in-house mortgage origination business, which originated $120 million of mortgages in the second quarter. These contributed to our total second quarter loan originations of $183 million at a blended yield of 6.76%, which will continue to support our asset yields and margins going forward. Our pipelines remain full, so we expect to continue to see loan growth, though likely at a more moderate pace than we experienced in the first and second quarters. We're pleased with our loan growth so far this year and believe we're making good progress on our efforts to expand originations. Net interest margin increased to 2.92% and has increased by 25 basis points over the last four quarters. As some rate cuts, our funding costs are likely close to stabilizing at this level. And at the same time, we may see increases in yields on earning assets, which should support incremental margin increases over the next few quarters. We remain focused on resolving our non-performing loans as quickly as possible while minimizing the impact to earnings and capital. We did have some charge-offs, which Lynn will discuss in more detail, but we did not see any increase in our total non-performing loans in the second quarter. Criticized and classified assets increased. However, the majority of the additions this quarter are loans that remain on accrual status. We continue to work through our remaining non-performing, criticized, and classified assets and expect to be able to report additional progress in the coming quarters. With that, I'll hand it over to Lynn to talk about the results in more detail.