RBB Bancorp reported net income of $10.2 million in the fourth quarter, translating to diluted earnings per share of $0.59. Return on average assets was 0.96%, nearly unchanged from the prior quarter’s 0.97%. The company declared a quarterly cash dividend of $0.16 per common share, marking the 25th consecutive quarter of dividends. Loans held for investment grew by $11.7 million, or 1.4% annualized, while classified and criticized loans fell by $31.8 million, a 25.2% reduction to $94.4 million. Nonperforming assets decreased by $852,000 to $53.5 million, reflecting successful workouts and collateral recoveries.

Net interest income rose modestly to $29.5 million, up $231,000 from the prior quarter. This increase was driven by a $430,000 reduction in interest expense—primarily lower costs on Federal Home Loan Bank advances—partially offset by a $199,000 decline in interest income on securities. The net interest margin widened by one basis point to 2.99%, supported by an 8-basis-point drop in funding costs and stable asset yields despite three Federal Reserve rate cuts in the quarter. Loans represented 84.0% of interest-earning assets, up from 83.3%, reflecting continued portfolio growth.

Provision for credit losses totaled $600,000 in Q4, slightly below the prior quarter’s $625,000. Net charge-offs were $1.6 million, annualized at 0.20% of average loans, down from 0.84%. The reduction was led by pay-downs and collateral recoveries on a substandard commercial real estate loan, which accounted for $1.4 million of charge-offs. Classified and criticized loans declined by a quarter, while unfunded commitments provisions turned slightly negative, reflecting a lower pipeline of new commitments and improving risk metrics.

For the full year, RBB Bancorp delivered net income of $31.9 million, or $1.83 per diluted share, increases of 19.8% and 24.5% versus 2024. Pre-tax pre-provision income rose 15.3% to $52.5 million. Loan balances grew by $261.1 million, an 8.6% increase, and nonperforming assets fell by $27.6 million, or 34.0%, to $53.5 million. Shareholders received $25.3 million through dividends and share repurchases, while book value per share climbed 7.1% to $30.69 and tangible book value per share increased 7.8% to $26.42.