RBB Bancorp in Los Angeles reported lower quarterly profit due to elevated credit costs.
The $4 billion-asset company said in a press release that its first-quarter earnings fell by 72% from a year earlier, to $2.3 million. The quarter included a $6.7 million loan-loss provision.
RBB said the provision was due to a $2.8 million increase in specific reserves, largely tied to a pair of lending relationships, and $2.6 million of chargeoffs that included the bulk sale of underperforming single-family mortgages and another loan that was sold. RBB also set funds aside to cover net loan growth.
Net chargeoffs on an annualized basis represented 0.35% of average loans on March 31, an increase from 0.26% at the end of last year.