RBB Bancorp Segments Disclosure

NOTE 21 – SEGMENT INFORMATION

 

Our reportable segments are determined by the Chief Executive Officer and Chief Financial Officer, who are the designated chief operating decision makers ("CODM"), based upon information provided by our products and services offered, primarily banking operations. The segments are also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business, which are aggregated if operating performance, products/services, and customers are similar. The CODM will evaluate the financial performance of our business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing our segment and in the determination of allocating resources. The CODM uses consolidated net income, total assets, total loans, and total deposits to benchmark us against our competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment performance and in establishing compensation. Loans, investments, and deposits provide the revenues in the banking operation. Interest expense, provisions for credit losses and payroll provide the significant expenses in the banking operation. All operations are domestic.

 

Accounting policies for segments are the same as those described in Note 2 — Summary of Significant Accounting Policies. Segment performance is evaluated using consolidated net income, total assets, total loans, and total deposits. Information reported internally for performance assessment by the CODM follows:

 

		For the Year Ended December 31,
		2025				2024
Banking Segment		(dollars in thousands)
Interest and dividend income		$	221,126			$	216,661
Reconciliation of revenue
Other revenues			16,873				15,335
Total consolidated revenues		$	237,999			$	231,996
Less:
Interest expense			108,844				117,297
Segment net interest income and noninterest income		$	129,155			$	114,699
Less:
Provision for credit losses			10,358				9,857
Salaries and benefits expense			43,056				39,395
Other segment items (1)			33,607				29,768
Income tax expense			10,186				9,014
Consolidated net income		$	31,948			$	26,665
Total Assets		$	4,208,294			$	3,992,477
Total Loans		$	3,316,368			$	3,064,480
Total Deposits		$	3,350,398			$	3,083,789

 

(1)	Other segment items include expenses for occupancy and equipment, data processing, legal and professional, office, marketing and business promotion, insurance and regulatory assessments, core deposit premium amortization and other expenses.