RBB Bancorp ($RBB)

All right. Good morning, everyone. I'm Christina Kao, Chair of the Board of RBB Bancorp. I'd like to welcome you and express thanks on behalf of the Board of Directors for your attendance today. Will the meeting please come to order. Before moving to our formal agenda, I'd like to introduce our Board members and nominees who are present here by phone or presently here. Bob Franko, to the right, myself, Dr. James Kao, Johnny Lee, Joyce Wong, David Morris over here, Geraldine Pannu, Scott Polakoff by phone and Frank Wong over the corner. Mr. David Morris ,you can be acting as Secretary of the meeting. Ms. Diana Hanson, over there has been appointed as an inspector of election. So is [ Loren ] present at the meeting? On route, okay, to be here shortly. And then Lynn Hopkins, CFO of the company. She'll be available during the Q&A period at the end of this meeting to answer any questions concerning the company's financial statements. At this time, I'd like to introduce Mr. Johnny Lee, President and CEO, who'll conduct all the [ rest of the meeting ].

Thank you, Christina. When you check in a time of your arrival, you should have been handed an agenda that also contains rule of conduct and procedures, which you intend to follow. At this time, Mr. David Morris, Secretary of the company will present proof of the due calling of the meeting. David?

Thank you, Johnny. I present the following: A copy of the printed notice of Annual Meeting of Shareholders stating the time, place and purpose of this meeting and a copy of the proxy statement furnished in the connection with the solicitation of proxies for the lease at this meeting as shown on my iPad. A complete list of shareholders of the company of record as of March 24, 2026, each of whom is entitled to notice of and to vote at this meeting. This list, which will be available for inspection throughout the course of this meeting, shows that as of March 24, 2026, there were 17,074,159 common shares of the company issued and outstanding shares. An affidavit of distribution from Broadridge Financial Solutions showing that it caused to be mailed or and on about April 10, 2026, to each shareholder of record a copy of the notice of Annual Meeting of Shareholders, the proxy statement in the proxy. In addition, shareholders were notified that they can access the notice proxy statement and annual report on Form 10-K online and a shareholder can receive a free paper or e-mail copy of the materials by making a request. However, such requests would need to have been made prior to May 7, 2026, with respect to this meeting. Now I would like to hand the meeting back over to Johnny.

Thank you, David. Please file a copy of the notice of annual meeting, together with the affidavit distribution in the mine as part of the minutes of this meeting. The minute is here and be kept open for inspection for shareholders throughout the course of this meeting. The Board of Directors of the company has appointed Diana Hanson, as the inspector of election for this meeting. The Board has also appointed Johnny Lee and Christina Kao, as management's proxy holder for this meeting. The Inspector of Election has duly taken her out of office I direct to be filed with the minutes of this meeting. At this time, to be certain a quorum is present, I ask the Inspector of Election to now take a call of the shareholders' shares representing the meeting in person or by proxy to report the results. Diana?

Is anyone voting at the meeting? Seeing none. There are present in person or by proxy at this meeting of shareholders that have subscribed for an aggregate of 11,882,478 common shares or 69.59% of the issued and outstanding common shares of the company.

By leasing a fact that shareholders owning a majority of issued and outstanding shares of the company entitled to vote at this meeting are present and or by proxy, a quorum is present for all purposes. The meeting is now declared legally comping and ready to transact business. After the meeting has been adjourned, we will present our report as to condition and operation of the company. We ask that you hold all your questions until we have completed this report and you will then be provided with ample opportunities to ask questions. Proposal 1 is election of directors. The first manner business will be the election of nine directors to the Board of Directors of the company to serve until the next annual meeting of shareholders our shareholders and until their successors are elected and qualified. On behalf of the Board of Directors, I hereby nominate the following individuals: Robert Bob Franco, Christina Kao, Dr. James Kao, Johnny Lee, Joyce Wong Lee, David Morris, Geraldine Pannu, Scott Polakoff and Mr. Frank Wong. Is there a second for the proposal? Thank you. Is there shareholders present who wishes to revoke his or her proxy? Are there shareholders present who did not submit proxies and wish to vote by written ballot? The nine nominees receiving the highest number of votes will be elected. I hereby declared closed. It appears that the inspector of election has finished counting the votes in connection with the election of directors for the inspector of election, please report the results of the election.

All director nominees have been elected.

The report of the inspector of election shows that the shareholders of the company have voted for the election of Robert Bob Franko, Christina Kao, Dr. James Kao, Johnny Lee, Joyce Wong Lee, David Morris, Geraldine Pannu , Scott Polakoff, Frank Wong. You are hereby declared elected to serve as directors of the company until the next Annual Meeting of Shareholders and until their successors are elected and have all [indiscernible]. We report of the inspector of election is approved. Our Proposal #2 is [indiscernible] we vote on named Executive Officer compensation. The second matter of business will be to approve on an advisory and nonbinding basis the compensation paid to the company's main executive officers as described in proposal 2 of the proxy statement dated April 10, 2026. On behalf of the Board of Directors, I hereby move the proposal 2, contain a proxy statement dated April 10, 2026, be approved, is there a secondary motion? Thank you. The proposal must receive at least a majority of the shares present in person or represented by proxy and voting at this meeting and as such, shares also constitute a majority of the required quorum are required to approve on a nonbinding advisory basis, the 2025 compensation of our named executive officers as described in our April 10, 2026 proxy statement. Is there any shareholder present who wishes to revoke his or her proxy? Are there shareholders present who did not submit proxies and wish to vote by [indiscernible]? I hereby declare the voting closed with the Inspector of Election, please report the results of the vote.

The advisory vote on named executive officers' compensation proposal has been approved by the affirmative vote of a majority of the shares present in person or represented by proxy and voting at this meeting and such shares constitute a majority of the required quorum for the meeting.

We reported the inspector of election shows that the stockholders of the company approved on a nonbinding advisory basis the company's 2025 compensation and -- of our named executive officers, the report at the Inspector Relations is approved. As sub numeration appointment of independent directors -- auditors, I'm sorry. Auditor matter of business will be to ratify the appointment of Crowe LLP as the company's independent auditors for the fiscal year ending December 31, 2026, as described in Proposal 3 of the proxy statement dated April 10, 2026. On behalf of the Board of Directors, I hereby move Proposal 3 contained in the proxy statement dated April 10, 2026 be approved. Is your secondary motion? Thank you. The proposal must receive at least a majority of the shares present in person or represented by proxy and voting at this meeting and such shares also constitute a majority of required or are required to ratify the appointment of Crowe LLP as our independent auditors for the fiscal year ending December 31, 2026, as described in our April 10, 2026 proxy statement. Is there any shareholders present who wishes to revoke his or her proxy? Are there any shareholders present, we did not submit proxies in which to go [indiscernible] ballot? I hereby declare the voting closed. For the Inspector of Election, please report the results of the vote.

Proposal #3 has been approved by a majority of the shares present in person or represented by proxy and voting at this meeting. And that such shares also constitute a majority of the required quorum.

We reported inspector of election shows that the stockholders of the company have ratified the appointment of Crowe LLP as our independent auditors for the fiscal year ending December 31, 2026, and as described in our April 10, 2026 proxy statement. The report of the inspector of election is approved. Thank you for attending today's meeting. The meeting is adjourned. At this time, we will share some highlights on our financial performance. After we have finished this report, there will be a question-and-answer session. If you have any questions, please stand up, introduce yourself prior to asking the question if you are calling in, we will allow audio at this time. And please state your name clearly, your status as a shareholder or proxy holder and present your question in comment.

Thank you, Johnny. Hello, everybody today. I want to start with a couple of introductions. Myself on behalf of the management team, joining us at the shareholder meeting today. Mr. Vincent Liu, Chief of Staff; [indiscernible] Wong, Executive Vice President, Brand Administration Director of [indiscernible] Banking, [indiscernible] Chang. ;[indiscernible] over here, our Chief Credit Officer; [indiscernible] Diana Hanson, our Chief Accounting Officer; and Mr. Gary Fan, who is our Chief Operations Officer. So it is my privilege to think to get up here and share a couple of highlights from 2025, 2026 and to take any questions, whether it's here or online. So the 3 slides, and I wanted to share some highlights. So for 2025, we generated $31.9 million in net income. It's a 20% increase over 2024. That was driven mostly by our loan growth that we experienced during 2025, which was 8.6% in loan growth. We have equally strong deposit growth during that same period of time. Our earnings per share was $1.83 in 2025, which is a 25% increase over 2024. During 2025, we were able to reduce our nonperforming assets by 34%. We maintained robust capital ratios, and they are well exceed our well-capitalized regulatory well capitalized levels. Shouldn't necessarily put a slide together for it, but we maintained good expense discipline, and we were able to grow top line revenue at a pace above our expense growth. We can move to Slide 3, please. During 2025, we returned $25.3 million to our shareholders in the form of dividends and accretive share repurchases that also contributed to the higher EPS numbers. Our net interest margin increased by 25 basis points to $2.95, and we continue to increase that to 3.15% in the first quarter of this year. So the balance sheet is well positioned I'd also point out our net interest margin increased for the sixth consecutive quarter most recently. If you can move to Slide 3, please. So we've included a trend and really a picture is worth of thousand words. While this shows 2024, where we address some credit issues and then we needed to address them in the early part of 2025, what this shows is net income in 2025 and then into the first quarter of 2026. Our average quarterly...

[Audio Gap] Thank you all again for attending this year's shareholder meeting. Thank you.