RBB Bancorp (NASDAQ:RBB) Q3 2023 Earnings Call Transcript

Kelly Motta: Got it. And then in terms of, now that you’re down to your targeted loan to deposit ratio, just wondering where you’re seeing the best opportunities for growth by category, if there’s any, particular industry or segment where you’re seeing more attractive risk adjusted returns.

David Morris: Yes, go ahead, Johnny.

Johnny Lee: Oh, hi Kelly. This is Johnny. Hi, how are you? While we, there’s no, obviously, there’s still a lot of demand for construction, CRE-related type of loans. And obviously, and probably because there’s not too many lenders right now that are very keen on wanting to do more construction loans. But for us, obviously, that’s an area that we’re still continuing to look at case by case on, opportunistic basis. If there’s good quality, experience, development, good track records, certainly we’ll still look at that. On the non-construction CRE side, on the C&I types of businesses, certainly for example, SBA, where you were SBA lenders certainly there’s, we see demands there, but obviously, we’re very selective even though these are government guarantee types of credits.

But for C&I, there’s certain demand there, but at this, we just reached this 95% loan-to-deposit ratio, and now obviously, we, better positioned now to sort of relaunch our lending. So on the C&I side, certainly, we will be pursuing it a little bit more on an elevated basis, but still very selective at this point.

Kelly Motta: Got it. Thank you so much. I’ll step back.

Operator: Thank you. There are no further questions in the queue.

David Morris: Okay. I would like to thank everybody for joining us today. You all have a good day. Thank you. Bye-bye.

Operator: Thank you, everyone. This concludes today’s event. You may disconnect at this time and have a wonderful day. Thank you for your participation.