RBB Bancorp

Greetings and welcome to the RBB Bank Corp fourth quarter 2025 earnings conference 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. And please note, this conference is being recorded. I will now turn the conference over to your host, Rebecca Rico, financial analyst. Ma'am, the floor is yours.

Thank you, Ali. Good day, everyone, and thank you for joining us to discuss RBB Bancorp's results for the fourth quarter of 2025. With me today, our president and CEO, Johnny Lee, Chief Financial Officer Lynn Hopkins, Chief Credit Officer Jeffrey Yeh, and Chief Operations Officer Gary Fan. Johnny and Lynn will briefly summarize the results, which can be found in the earnings press release 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. The fourth quarter was a strong finish to 2025 with solid loan growth, improving performance ratios, and normalizing credit. The entire RBV team continues to work hard to return the bank to its historic performance, and I'm very proud of what the team has accomplished. We still have work to do with respect to resolving remaining non-performing assets, but we're confident that we've turned the corner on credit and that performance will continue to improve in future quarters. Fourth quarter net income totaled $10.2 million, or 59 cents per share, which was stable from the third quarter, but more than doubled our earnings for the same quarter a year ago. ROA and NIN show similar trends and were stable from the third quarter, while increasing sharply from a year ago. 40-year loan grew at a solid 8.6%, which we believe demonstrate the progress we have made returning RBB to a historical rate of growth. We had another quarter of strong originations at $145 million, In 40 years, loan originations were 32% higher than they were in 2024. Our pipeline remains healthy and in line with this. Same time last year, so we are optimistic we will see another year of high single-digit growth in 2026. We continue to maintain pricing and structuring discipline with fourth quarter originations yielding 31 basis points above our current loan portfolio yield. Despite the rate cuts of Sun 5 basis points in 2025, we were able to drive our fourth quarter yield on loans up four basis points to 6.07% compared to the same quarter a year ago. Deposits were another bright spot of Sun 25 and show the progress we made by focusing on community outreach to attract retail deposits and expanding relationships with our business clients. Fourth quarter total deposits increased 8.6% compared to the fourth quarter a year ago, with strong growth in interest-bearing non-maturity deposits supporting long growth and a reduction in FHLB advances. Average demand deposits remain stable in 2025 and currently comprise 16% of total deposits. The fourth quarter rate on average interest-bearing deposits declined by a 55 basis point from the fourth quarter of 2024. or 73% of the rate cuts we saw last year. While we were successful reducing funding costs last year, competition for deposits has been increasing and recent rate cuts have not delivered the same pace of reductions in our deposit costs. We made significant progress addressing our non-performing assets during 2025. Non-performing loans decreased 45% and non-performing assets decreased 34% since the end of last year and included ongoing improvement during the fourth quarter. Criticized and classified assets also improved during 2025, decreasing by 43% for the full year and 25% since the end of the third quarter. With that, I'll hand it over to Lynn to talk about the results in more detail. Lynn?