RBB Bancorp (NASDAQ:RBB) Q1 2024 Earnings Call Transcript

Lynn Hopkins: Sure. Thanks for that question. We have been successful in originating loans and participating in the secondary market and selling them. I think we see that growing a bit as we move forward into 2024. So that would be our expectation and what the team is working on.

Nathan Race: Okay. Great. And then just one last one. Just thinking about the reserve or ACL level going forward, obviously, there’s a nice improvement in credit quality when you look at substandard and classified loans in the quarter. Just any thoughts on just kind of the appetite to just continue to operate with this above average ACL cushion or do you guys kind of see that trending down or do you kind of want to keep it where it is come out of the first quarter, just given expectations for loan growth going forward?

Lynn Hopkins: Right. Right. We do spend a lot of time analyzing it and we go through our process. I think some of it is going to be dependent on how the credit cycle continues to unfold, how the economic environment that we have. I think our portfolio is well protected. I think the expectation is generally we like the level that it’s at based on all the information that we have now. To the extent that we have some growth, I think, we would potentially have some reserves. But I think we got to continue to evaluate it going forward. We have a lot of capital. I think it’s a healthy reserve, but we will have to monitor the year as it unfolds.

Nathan Race: Okay. Great. I appreciate you guys taking the follow-ups. Thanks again.

Lynn Hopkins: Yeah. No. Thanks, Nathan.

Operator: Thank you. As we have no further questions on the line at this time, I would hand the call back over to Mr. David Morris for any closing remarks.

David Morris: Once again, thank you for joining us today. We look forward to speaking to many of you in the coming days and weeks. Have a nice day. Bye-bye.

Operator: Thank you, ladies and gentlemen. This does conclude today’s event. You may disconnect your lines at this time and have a wonderful day, and we thank you for your participation.