RBB Bancorp Reports $9.3 Million Net Income in Q2 2025, Driven by ERC Refund

RBB Bancorp reported a significant increase in its financial performance for the second quarter of 2025, with net income reaching $9.3 million, or $0.52 per diluted share, compared to $2.3 million, or $0.13 per diluted share, in the previous quarter. This marks a notable rise from the $7.2 million, or $0.39 per diluted share, reported in the same quarter of the previous year. The increase in net income was bolstered by a $5.2 million refund from the Employee Retention Credit (ERC), which was partially offset by $1.2 million in associated advisory costs. Total interest and dividend income for the quarter was $54.2 million, up from $52.3 million in the first quarter of 2025, while interest expense increased slightly to $26.9 million from $26.2 million.

In terms of operational metrics, RBB Bancorp's total assets grew to $4.1 billion, an increase of $97.6 million from the end of 2024. This growth was primarily driven by a $181.5 million increase in gross loans held for investment, which reached $3.2 billion. The loan portfolio saw increases across various categories, including single-family residential mortgages, which rose by $109.1 million, and commercial real estate loans, which increased by $72.0 million. Total deposits also increased by $104.4 million to $3.2 billion, with a notable rise in interest-bearing deposits.

The company’s allowance for credit losses (ACL) stood at $51.6 million as of June 30, 2025, reflecting a slight decrease from $52.6 million at the end of the previous quarter. The provision for credit losses for the second quarter was $2.4 million, down from $6.7 million in the first quarter of 2025, indicating improved credit quality. Nonperforming assets decreased to $61.0 million, or 1.49% of total assets, down from $81.0 million at the end of 2024. The decrease was attributed to net charge-offs and paydowns, despite some loans migrating to nonaccrual status.

Strategically, RBB Bancorp continues to focus on its minority depository institution (MDI) designation, which allows it to serve predominantly Asian-centric communities through its 24 branches across several states. The company has also been active in managing its capital structure, with total shareholders' equity increasing to $517.7 million, reflecting a book value per share of $29.25. The board has authorized a stock repurchase program of up to $18 million, with $16.5 million remaining as of June 30, 2025. Looking ahead, RBB Bancorp remains committed to maintaining its capital adequacy and liquidity, with no anticipated need for additional liquidity sources in the near term.