RBB Bancorp Q2 2025 Earnings Call Transcript

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Provided by Quartr
July 22, 2025

Key Takeaways

  • Positive Sentiment: Strong loan growth of $92 M (12% annualized) and $183 M in second-quarter originations at a 6.76% blended yield drove a $1.2 M increase in net interest income and lifted NIM to 2.92%, its fourth straight quarterly gain.
  • Neutral Sentiment: Reported net income was $9.3 M ($0.52/share), boosted by a $2.9 M after-tax employee retention credit refund, with adjusted earnings of $6.5 M ($0.36/share) after related advisory costs.
  • Negative Sentiment: Nonperforming loans remained elevated at $56.8 M (1.76% of loans) with $3.3 M in net charge-offs and a rise in criticized and classified assets, though most stayed on accrual status.
  • Neutral Sentiment: Noninterest expenses rose to $20.5 M, partly due to $1.2 M in ERC-related fees and executive transition costs, but management expects expenses to normalize to an annualized run rate of about $18 M.
  • Positive Sentiment: Total deposits grew 6% annualized to $3.2 B with spot deposit costs down to 2.95%, supporting funding stability despite a loan-to-deposit ratio above 100%.
AI Generated. May Contain Errors.
Earnings Conference Call
RBB Bancorp Q2 2025
00:00 / 00:00

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Operator

Greetings, and welcome to the RBB Bancorp Second Quarter twenty twenty five Earnings Call. Please note this conference is being recorded. I will now turn the conference over to your host, Rebecca Rico. Ma'am, the floor is yours.

Rebeca Rico
AVP & Financial Analyst at Royal Business Bank

Thank you, Ali. Good day, everyone, and thank you for joining us to discuss RBB Bancorp's results for the second quarter of two thousand twenty five. With me today are president and CEO, Johnny Lee chief financial officer, Vin Hopkins and chief Credit Officer, Jeffrey Yeh. Johnny and Lynn will briefly summarize our 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 filings. Now I'd like to turn the call over to RBB Bancorp's President and Chief Executive Officer, Johnny Lee. Johnny?

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Thank you, Rebecca. Good day, everyone, and thank you for joining us today. Second quarter net income totaled $9,300,000 or $0.52 per share and included $2,900,000 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 and stable earning asset yields, which supported a $1,200,000 increase in net interest income and a four basis point increase in NIM. Loan held for investment grew by $92,000,000 or 12% on an annualized basis with growth in almost all categories.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

We continue to see strong results from our in house mortgage origination business, which originated $120,000,000 of mortgages in the second quarter. These contribute to our total second quarter loan originations of $183,000,000 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.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Absent 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 nonperforming 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.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

We continue to work through our remaining nonperforming 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. Lynn?

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Thanks, Johnny. Please feel free to refer to the investor presentation we have provided as I share my comments on the company's 2025 financial performance. Slide three of our investor presentation has a summary of our second quarter results. As Johnny mentioned, net income was $9,300,000 or $0.52 per diluted share. Second quarter results benefited from the recognition of a $5,200,000 employee retention credit or ERC refund, which is included in other income.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

We also recognized related ERC advisory costs of $1,200,000 which are included in professional service fees. There is no similar income or expense in any of the other quarterly periods presented. Adjusted for the ERC refund and associated fees, net income would have been $6,500,000 or $0.36 per diluted share. Also excluding ERC related income and expense, pretax pre provision income increased $1,400,000 due to higher net interest income of 1,200,000.0 and higher non interest income items of $1,000,000 offset by higher non interest expense items of approximately $800,000 Net interest income increased for the fourth consecutive quarter to 27,300,000.0 and was driven by loan growth and stable asset yields. The overall loan yield remained above 6% and was supported by the quarter's average production yield of 6.76% and loans repricing in the current higher interest rate environment.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

As Johnny mentioned, we had another quarter of net interest margin expansion, our fourth in a row, driven primarily by an eight basis point reduction in total deposit costs. Our spot rate on deposits on June 30 was 2.95%, which was 10 basis points below the second quarter's average of 3.05%, so we may get incremental improvement in the fourth quarter. But until we get some rate cuts, we are likely to see big reductions in our funding costs. The second quarter also included a full quarter of more expensive FHLB term advances after they were refinanced late in the first quarter. Second quarter noninterest expenses increased by $2,000,000 to 20,500,000.0 of which $1,200,000 was directly related to the receipt of the ERC refund from the IRS.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Higher compensation expenses related to executive management transitions and incentive payments for increased loan production also contributed to the increase. We expect noninterest expenses to return to an annualized run rate of about $18,000,000 in future quarters. Slides five and six have additional color on our loan portfolio and yields. The loan portfolio yield was relatively stable at just over 6% when compared to the last two quarters. Slide seven has details about our 1,600,000,000 residential mortgage portfolio, which increased modestly and consists of well secured non QM mortgages, primarily in New York and California with an average LTV of 55%.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Slides nine through 11 have details on asset quality and I'll make a couple of specific points. The 2,400,000 provision for credit losses was due to $1,500,000 for net loan growth and the impact of economic forecasts, and a $924,000 increase in specific reserves for a loan on a partially completed construction project. Net charge offs of $3,300,000 which had previously been established as a specific reserve, were related almost entirely to one lending relationship. NPLs decreased $3,600,000 or 6% to $56,800,000 and represented 1.76% of loans held for investment at quarter end. Accounting for our specific reserves of $7,400,000 our net NPL exposure decreased 3% to $49,400,000 Substandard loans increased $14,600,000 and totaled $91,000,000 at the end of the quarter.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

The increase was primarily due to a couple of downgrades totaling $20,600,000 partially offset by charge offs of $3,300,000 and payoffs and paydowns totaling $2,700,000 Of the total substandard loans at June 30, dollars 30,200,000.0 were on accrual status. Past due loans increased $12,100,000 to $18,000,000 due mostly to additions and include $18,500,000.0 CRE loan, which has since been brought current. And it gets worth noting that with the 1.58 percent allowance for loan losses to total loans held for investment ratio, we believe we have appropriately addressed the risk in our nonperforming loans. Slide 12 has details about our deposit franchise. Total deposits increased at a 6% annualized rate from the first quarter to $3,200,000,000 with growth in non interest bearing deposits and CDs more than offsetting a decline in money market accounts.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Our tangible book value per share increased to 25.11. Our capital levels remain strong with all capital ratios above regulatory well capitalized levels. With that, we are happy to take your questions. Operator, please open up the line.

Operator

Thank you. At this time, we will be conducting our question and answer session. Our first question is coming from Brendan Nosal with Hofde Group. Your line is live.

Brendan Nosal
Director at Hovde Group

Hey, everybody. Thanks for taking the question. Hope you're doing well.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Yes.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Hi, Brendan.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Brendan.

Brendan Nosal
Director at Hovde Group

Maybe just starting off here on capital and the buyback. I think you announced the $18,000,000 buyback in the middle of the second quarter. You used a little bit of it in the month or so you had it. Can you maybe just speak to how active you want to be with that new program, just given where shares are trading, but also factoring in credit workouts? Thanks.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Sure. Thanks, Brendan, for the question. So based on the timing of when we had the opportunity to announce the buyback, I think that's a little bit why you've seen the modest participation. We obviously view our stock attractive at its current trading price relative to our tangible book value. The amount that got approved based on current trading prices would represent about 5% of our stock.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

So we view it as a modest amount of cash. I think we have sufficient liquidity and affordability. And with respect to how it relates to the fact that we have been working through our higher elevated NPL levels, we've had plenty of capital to support that initiative, plus our high coverage ratio I just kind of concluded my comments with. So I think we're able to do both.

Brendan Nosal
Director at Hovde Group

Okay. All right. Great. And then maybe turning to asset quality. Can you offer a little more color on the loans that were downgraded both to substandard and special mention for the quarter?

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Maybe Jeffrey can.

Jeffrey Yeh
Jeffrey Yeh
EVP & Chief Credit Officer at RBB Bancorp

Over the week over the quarters and then we have we have about $27,000,000 of their downgrade to special mention mainly because of the bank actually is enhancing our credit quality control. The difference is that we have more frequent control for those credit. Those credit are mainly bridge and gate loan that they have, they see a little bit delay in stabilizing their income. They are paying the degree and then the LTV are still manageable. However, this is one of the management's efforts to enhance our credit control on that.

Jeffrey Yeh
Jeffrey Yeh
EVP & Chief Credit Officer at RBB Bancorp

So you can see an increase of the special mention that is notable to the information that compared to the previous quarter, but we consider it as credit enhancement.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

And then on the few downgrades to substandard, I mentioned it was mostly driven by two credits that remain on accrual status. And they're examples of, one, transitioning to the higher interest rate environment and working with a borrower. So again, current and going through transition. So we believe there's some conservatism in our view. But nonetheless, felt that that was the appropriate classification for the June for those couple of credits.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

There were some smaller ones as well, but those are two main credits that got added during the second quarter.

Brendan Nosal
Director at Hovde Group

Okay. Okay. That's helpful. Maybe I'll just sneak one more in here. This year, you've been kind of pursuing this dual path of growing loans again and trying to kind of move the top line higher while also working through asset quality issues.

Brendan Nosal
Director at Hovde Group

I mean, like, for how long is that dual path sustainable for, like, we're still seeing inflows into criticized presumably takes a little longer to work that out? Is there still the ability to, you know, a desire to keep growing loans at the same time as you you work through credit issues?

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Yeah. I think and this is Johnny. I I I think we certainly can continue to do that. We're obviously continuing to be very laser focused on resolving some of the NPL that's on our on our hand. I think we're we're, you know, making good progress in that respect.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

At the same time, the growth side, just as the comment in previous quarters, it's always very healthy, always have a very healthy pipeline. Certainly we feel that we can manage that well with a dual path that we're taking.

Brendan Nosal
Director at Hovde Group

Okay. Great. Thank you for taking the questions.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Yeah. So, Brandon, I would just add to Johnny's comments. I think we're executing on the business model, right? So healthy pipeline, able to convert them into 12% annualized loan growth. We've shown strength in both our mortgage portfolio and commercial portfolio.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

I think you saw some additional loan sales this quarter. We would expect potentially some of that to increase in the second half of the year, which I think speaks to how we continue to manage our loan to deposit ratio. And then we're already covering when we had our loan growth this quarter, when you exclude our specific reserves, our coverage ratio is up at about 136, 138.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Given that it's future looking, I think there's still opportunity for maybe that would actually come down a little bit as we finish resolving some of these larger credits that have taken center stage the last couple of quarters.

Brendan Nosal
Director at Hovde Group

Okay. Thank you, Lynn. That's helpful.

Operator

Thank you. Our next question is coming from Matthew Clark with Piper Sandler. Your line is live.

Matthew Clark
Matthew Clark
MD & Senior Research Analyst at Piper Sandler Companies

Hey, good morning. Thanks for the questions. Just the first one, on the kind of loan and deposit growth, deposits trailing loans here, loan to deposit ratio obviously up over 100 now. But it does sound like the pipeline on the loan side remains healthy and you also expect maybe a more measured pace of growth going forward. So just trying to kind of think through those moving parts.

Matthew Clark
Matthew Clark
MD & Senior Research Analyst at Piper Sandler Companies

And is there some deliberate effort to maybe tighten the screws a little bit on the pipeline? And just any commentary around your outlook for deposits.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Well, can comment on loan. Hi, Matthew. This is John. Well, we we I I guess we've been trying to screw on the loans because, you know, we we've always focused quality first, know, with all the new loans that we are bringing to the bank or new relationships. So we always been very selective so far as far as the new loans that we new relationship we're bringing to the bank.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Obviously, the deposit side, we're continuously trying to find ways to originate more organically new deposits through various, you know, for example, we recently launched a special promotion program on money market, the sort of bundle package that's bringing in pretty good, know, a pretty good traction as far as bringing in new new deposits as well to support the, you know, our our funding. We're we're we're, you know, recognize the loan deposit ratio is high, but I think towards the second half as we continue to grow the loan, there's certainly potential opportunities for us to maybe sell some loans to take the pressure off a little bit. But, know, we we again, we will continue to manage that. This you know, we're trying to keep that in a good balance.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Matthew, I think in the investor materials we've shared, our new production levels is over $180,000,000 this quarter at a rate of kind of $675,000,000 and how that compares to prior quarter. So our annualized growth rate up at 12%, I think was slightly higher than that in the first quarter. I think it's been strong, and we've kept our origination rates fairly high given the current market. So I think we're evaluating that. I think that there's probably some net loan growth.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

We would expect potentially some loan sale activity to pick up in the second half of the year. And then just a comment on deposits. I think that we have been very successful in growing organic deposits. And we have plenty of capacity for wholesale funding. So there's room to bring the loan to deposit ratio down a little bit if need be.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

So I think we're watching it closely, but very comfortable with where we ended the quarter.

Matthew Clark
Matthew Clark
MD & Senior Research Analyst at Piper Sandler Companies

Okay, great. And then on the deposit cost side, an expectation for maybe some stabilization without Fed rate cuts, spot rate obviously down, which is helpful going into 3Q. But do you feel like even when the Fed does start to cut that deposit costs might not come down as much as you previously thought just because you need to keep rates up to generate the deposit growth?

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

That I would like a crystal ball for. Look, I think there's competition for liquidity, and I don't think that's going to change even when rates come down. But we were successful in moving our deposit rates down almost 100% after rates moved down 100 basis points. So while there could be somewhat of a lag, I would expect we would be successful in moving down our cost of funds should rates decrease. We remain liability sensitive.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

But it doesn't happen overnight, and it would stair step down. But that would be our expectation that we would be able to push down on our deposit costs. I think historically we've shared, to the extent helpful, if we look out over the next quarter or so, we have about a third of our CDs that are maturing that are coming off at about $4.15, $4.20. And I think those have an opportunity to price down into the current market Not a significant amount because rates are higher for longer, but somewhat.

Matthew Clark
Matthew Clark
MD & Senior Research Analyst at Piper Sandler Companies

Okay. And just to clarify, the amount of CDs that are coming due this quarter and I assume new pricing is around 4%?

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Yes. Yes. So it's basically all of our CDs. So all of our CDs mature within twelve months, think like 99.5%. And then onethree of them mature next quarter.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

And we've had a pretty even CD ladder over a twelve month horizon. And those have continued to just reprice into the current market.

Matthew Clark
Matthew Clark
MD & Senior Research Analyst at Piper Sandler Companies

Okay, great. And last one for me, just to clarify the expense run rate going forward. I think I may have heard you say $18,000,000 But I think if you exclude some of the noise, it was around 19,000,000 this quarter. So just wondering where the relief is coming from.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Sure. So the rest of it, we had a little bit of extra costs associated with executive management transitions. I think there is some timing items related to, I think, some of our director compensation. We filed some Form four associated with that. And then I think just the timing on some legal costs accumulated this quarter.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

So I think some of that's expected to normalize and bring us back down to about $18,000,000

Matthew Clark
Matthew Clark
MD & Senior Research Analyst at Piper Sandler Companies

Okay. Thanks again.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Yeah. Thanks, Matthew.

Operator

Thank you. Our next question is coming from Andrew Torell with Stephens. Your line is live.

Andrew Terrell
Managing Director at Stephens Inc

Hey, good morning.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Hi, there.

Rebeca Rico
AVP & Financial Analyst at Royal Business Bank

Hey, good morning.

Andrew Terrell
Managing Director at Stephens Inc

I wanted to go back to some of the credit discussion. In some of the I think an answer to a prior question, it sounded like you mentioned you were maybe changing up or tightening kind of the credit control process. I was hoping you could just kind of expand on that point a little bit more. And does that necessitate kind of a more full portfolio review under newer standards? Or could you just maybe kind of elaborate on that a little bit?

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Andrew, it's Lynn. I'm going to turn it over to Jeffrey in a second. I just want to make one comment regarding that. So in the majority in the special mention, it relates to one type of loan, which was our gap and bridge financing. And that is a smaller part of the portfolio.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

So it's not necessarily all the way across all loan categories. And I think the majority have been addressed and are reflected in the results that you see in the second quarter. And then we'll carry that forward, and then we'll move them special mentions expected to be a temporary holding place for them. So Jeffrey can answer it more fully, that was how I would clarify.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Yeah. With this, John. We're just simply taking a more conservative approach Right. To making sure we're safe, you know, keeping an eye on these credits, but they're, you know, very, very matchable loan to value ratio. Global cash flow is strong.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

And, you know, these none of these borrowers here that moved to special mention have passed through. They are all current and accruing. Mhmm.

Andrew Terrell
Managing Director at Stephens Inc

Okay. Understood. I I appreciate that. And then, Lynn, I think you talked about maybe some more loan sales in the back half of the year. I'm assuming that's single family.

Andrew Terrell
Managing Director at Stephens Inc

And do you have the amount that was sold this quarter? See a pickup in the gain on sale line. Just wondering if you have any kind of expectation for the back half.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

I don't know that there's anything that we can share for modeling purposes. I think it's more the level of production, the type of products that we have, and managing the size of the portfolio relative to the whole So we see opportunity there. On the single family portfolio, I would just share that the premiums are pretty small in the market. Obviously, if rates come down, those might have a better opportunity, depending on how prepayment fees play out.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

But we also have opportunity with our SBA loan portfolio. And I believe Johnny's spoken in the past, we've added some resources in that area. So I think that's an area that increased some production, and we usually sell the guaranteed portion. So the combination of the two would be what we'd be generating any gains.

Andrew Terrell
Managing Director at Stephens Inc

Okay. That's it for me. Thank you for taking the questions.

Operator

Our next question is coming from Kelly Motta with KBW. Your line is live.

Kelly Motta
Managing Director at Keefe, Bruyette & Woods (KBW)

Hey. Thank you for the question. Most of mine have been addressed at this point, but I I did want to touch base the deposit side of things. You did have some nice non interest bearing growth this past quarter. I'm wondering if you could provide some color as to the drivers of that.

Kelly Motta
Managing Director at Keefe, Bruyette & Woods (KBW)

I know C and I has been a focus here and you did have some growth now for the last several quarters. So wondering if you could provide your track record with gaining commercial customers and how that's tracking and any sort of color as to what drove the non interest bearing increase this quarter? Thanks.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Hi Kelly, this is Johnny. I can make some comments, maybe colleagues here can also add if they'd like. Thanks for the question. First of all, I think the combination of things. I think to our frontline associates credit bureau branch or commercial lenders, we've been very focused on ways to deepen and expanding the relationships that we have right now.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

And certainly that has brought some additional DDA deposits into us. Also with the new relationships that we bring in, obviously, we're very much focused on particularly on the C and I side, even though overall banks total mix of these loans is still relatively small, but then they do contribute to good DDA deposits for us for any of these new C and I relationships that we bring in as well. So I think the combination of the, I mentioned earlier about, we have certain promotional sort of promotions that we've launched to try to generate more new relationships by bundling money market and DDA sort of product. And we just we only launched it just June, June 1 when we first launched that. And actually that's been building up very good momentum for us as far as bringing new relationships that provide not only money market sort of deposits, but at the same time a combination of including DDA deposits as well.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

And Kelly, I think when you're looking at our trends, what we observed was I think we had a couple or one or a couple larger withdrawals in the first quarter. And I think the composition and more granularity to our noninterest bearing deposits with the efforts that Johnny described. So that's what we're observing.

Kelly Motta
Managing Director at Keefe, Bruyette & Woods (KBW)

Great. That's helpful. And then maybe just one last modeling question from me, Lynn. Your tax rate was a little lower this quarter. I think it was around 28%.

Kelly Motta
Managing Director at Keefe, Bruyette & Woods (KBW)

Is this a good run rate on a go forward basis? And I'm wondering if this change in the California tax law has any material impact on your outlook for the tax rate?

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Sure. So good question on the California tax rates. We did include the impact to our taxes in this quarter. So it did have a small catch up impact in the second quarter, and it won't have a material impact overall, but we will actually have a little bit of a benefit from that. So I think it's a reasonable tax rate.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

We've been below the effective or the statutory rate anyway. But yeah, are in there, Kelly.

Kelly Motta
Managing Director at Keefe, Bruyette & Woods (KBW)

Got it. Thank you. I'll step back.

Lynn Hopkins
Lynn Hopkins
EVP & CFO at RBB Bancorp

Thank

Operator

you. As we have no further questions on the lines at this time, I would like to hand it back to Mr. Lee for any closing comments.

Johnny Lee
Johnny Lee
President & CEO at RBB Bancorp

Thank you. Once again, thank you for joining us today. We look forward to speaking to many of you in the coming days of weeks. Have a great day, everyone.

Operator

Thank you. Ladies and gentlemen, this does conclude today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Executives
    • Johnny Lee
      Johnny Lee
      President & CEO
    • Lynn Hopkins
      Lynn Hopkins
      EVP & CFO
    • Jeffrey Yeh
      Jeffrey Yeh
      EVP & Chief Credit Officer
Analysts
    • Rebeca Rico
      AVP & Financial Analyst at Royal Business Bank
    • Brendan Nosal
      Director at Hovde Group
    • Matthew Clark
      MD & Senior Research Analyst at Piper Sandler Companies
    • Andrew Terrell
      Managing Director at Stephens Inc
    • Kelly Motta
      Managing Director at Keefe, Bruyette & Woods (KBW)
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