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Rbb Bancorp (RBB)
:RBB
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Rbb Bancorp
(NASDAQ:RBB)
50Neutral
Rbb Bancorp (RBB) vs. S&P 500 (SPY)
Market Cap
$277.12M
Dividend Yield4.09%
Average Volume (3M)33.20K
Price to Earnings (P/E)10.7
Beta (1Y)1.27
Revenue Growth-1.75%
EPS Growth-34.45%
CountryUS
Employees372
SectorFinancial
Sector Strength80
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.46
Shares Outstanding17,730,122
10 Day Avg. Volume32,881
30 Day Avg. Volume33,201
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.81
Price to Cash Flow (P/CF)4.20
P/FCF Ratio1.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.67Price Target Upside38.64% Upside
Rating ConsensusHold
Number of Analyst Covering4
Rbb Bancorp Business Overview & Revenue Model
Company DescriptionRBB Bancorp (RBB) is a financial holding company that operates through its wholly-owned banking subsidiary, Royal Business Bank. The company primarily serves small to medium-sized businesses, as well as individuals, with a focus on the Asian-American community. It offers a variety of banking products and services, including commercial and industrial loans, real estate loans, and deposit products. Headquartered in Los Angeles, California, RBB Bancorp operates branches across several states, providing tailored financial solutions to its diverse clientele.
How the Company Makes MoneyRBB Bancorp generates revenue primarily through the interest income earned from its loan portfolio, which includes commercial and industrial loans, real estate loans, and small business administration (SBA) loans. The company also earns non-interest income from service charges, fees, and other customer-related financial services. RBB Bancorp leverages its strong community ties and understanding of the markets it serves to build lasting partnerships with its clients. Additionally, the company benefits from its strategic focus on the Asian-American community, which provides a niche market that supports its growth and profitability.
Rbb Bancorp Financial Statement Overview
Summary
RBB Bancorp's financial statements reveal significant challenges. The income statement indicates declining revenues, with a drop from $159.85 million in 2022 to $134.27 million in 2023, and a further decrease to zero in 2024, signaling severe financial instability. The balance sheet shows a strong equity position with zero debt, but the decrease in total assets suggests potential asset liquidation. The cash flow statement highlights a major decline in operating cash flow, reflecting weakening cash generation capabilities.Income Statement
The income statement reflects a declining revenue trend with a significant drop in total revenue from $159.85 million in 2022 to $134.27 million in 2023, and a further drop to zero in 2024. The net profit margin increased sharply in 2024 due to the absence of revenue, which skews the ratio calculation. The company exhibited a strong EBIT margin in 2022 but faced subsequent declines. These trends indicate financial instability and a significant risk in revenue generation.35
Negative
Balance Sheet
The balance sheet displays a robust equity position with zero debt in 2024, leading to a favorable debt-to-equity ratio. The equity ratio improved over time, indicating increasing financial stability. However, the company's total assets decreased substantially from 2023 to 2024, indicating potential asset liquidation or operational downsizing.60
Neutral
Cash Flow
The cash flow statement shows a significant decline in operating cash flow from $51.29 million in 2023 to $15.74 million in 2024. Free cash flow followed a similar trend. The operating cash flow to net income ratio indicates reliance on operational efficiency, but the declining trend suggests weakening cash generation capabilities.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 114.70M | 134.27M | 159.85M | 143.01M | 118.71M | Gross Profit |
| 114.70M | 130.94M | 159.85M | 143.01M | 118.71M | EBIT |
| -162.23M | 60.21M | 111.74M | 80.94M | 47.46M | EBITDA |
| 0.00 | 0.00 | 102.36M | 93.44M | 54.30M | Net Income Common Stockholders |
| 26.66M | 42.47M | 64.33M | 56.91M | 32.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 32.10M | 431.37M | 340.98M | 870.23M | 349.12M | Total Assets |
| 3.99B | 4.03B | 3.92B | 4.23B | 3.35B | Total Debt |
| 364.39M | 315.28M | 434.83M | 360.79M | 268.67M | Net Debt |
| 106.05M | -116.70M | 350.68M | -141.18M | 130.42M | Total Liabilities |
| 3.48B | 3.51B | 3.43B | 3.76B | 2.92B | Stockholders Equity |
| 507.88M | 511.19M | 484.49M | 466.61M | 428.42M |
| Cash Flow | Free Cash Flow | |||
| 15.74M | 50.64M | 91.75M | 200.19M | 120.31M | Operating Cash Flow |
| 15.74M | 51.29M | 93.81M | 202.18M | 124.51M | Investing Cash Flow |
| -103.00K | 243.31M | -260.17M | -504.18M | -446.01M | Financing Cash Flow |
| -30.66M | 53.22M | -444.46M | 801.72M | 334.38M |
Rbb Bancorp Technical Analysis
Negative
15.63
Price Trends
17.56
Negative
19.83
Negative
20.64
Negative
Market Momentum
-0.33
Negative
37.16
Neutral
19.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBB, the sentiment is Negative. The current price of 15.63 is below the 20-day moving average (MA) of 16.73, below the 50-day MA of 17.56, and below the 200-day MA of 20.64, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 19.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBB.
Rbb Bancorp Risk Analysis
Rbb Bancorp disclosed 34 risk factors in its most recent earnings report. Rbb Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rbb Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.02B | 7.88 | 17.92% | 3.75% | 8.03% | -8.05% | |
72 Outperform | $10.25B | 8.89 | 15.89% | 3.04% | 13.84% | 2.04% | |
71 Outperform | $617.37M | 9.96 | 8.60% | 5.00% | 8.33% | -21.76% | |
68 Neutral | $2.68B | 9.64 | 10.25% | 3.57% | 8.05% | -18.64% | |
67 Neutral | $2.45B | 17.78 | 9.73% | 4.55% | 4.63% | -16.29% | |
63 Neutral | $12.86B | 9.19 | 9.16% | 4.78% | 16.31% | -8.97% | |
50 Neutral | $277.12M | 10.66 | 5.23% | 4.09% | -1.75% | -34.45% |
* Financial Sector Average
Performance Comparison
RBB
Rbb Bancorp
15.63
-1.43
-8.38%
BOH
Bank Of Hawaii
61.50
2.94
5.02%
CATY
Cathay General Bancorp
38.10
2.41
6.75%
EWBC
East West Bancorp
74.04
-0.48
-0.64%
HAFC
Hanmi Financial
20.65
5.98
40.76%
PFBC
Preferred Bank
75.32
3.17
4.39%
Rbb Bancorp Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: -15.65% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the bank achieved growth in non-interest bearing deposits and improved net interest margin, challenges with non-performing loans, credit losses, and declining net income overshadowed the positive aspects. The leadership transition is positive but comes amidst these financial challenges.Highlights
Increase in Net Interest Margin
Net interest margin increased by 8 basis points due to a 33 basis point decline in the cost of interest-bearing deposits.
Loan Production Achievements
Achieved $126 million of loan production in the fourth quarter, indicating robust lending activities despite some challenges.
Growth in Non-Interest Bearing Deposits
The bank saw a $20 million increase in non-interest bearing deposits, demonstrating the ability to attract low-cost funding.
Leadership Transition
Johnny Lee appointed as President and CEO, with David Morris retiring but remaining on the Board of Directors.
Lowlights
Decline in Net Income
Net income reported at $4.4 million or $0.25 per share, with a notable decrease compared to the previous quarter due to credit issues.
Increase in Non-Performing Loans
Non-performing loans totaled $81 million, a $20 million increase from the third quarter, primarily due to a $26 million construction and development (C&D) loan migrating to non-accrual status.
Challenges in Loan Balances
Total loans declined by about $28 million due to high levels of paydowns and aggressive refinancing offers from competitors.
Higher Provision for Credit Losses
The provision for credit losses increased to $6 million from $3.3 million in the prior quarter, driven by partial charge-offs and specific reserves for non-performing loans.
Company Guidance
During the fourth quarter of 2024 earnings call for RBB Bancorp, several key metrics and guidance were highlighted. The bank reported a net income of $4.4 million, or $0.25 per share, reflecting a decrease primarily due to credit issues being addressed. The net interest margin saw an improvement by 8 basis points to 2.76%, attributed to a 33 basis point reduction in the cost of interest-bearing deposits. Loan production reached $126 million, although total loans decreased by $28 million due to paydowns and refinancings. Non-performing loans increased by $20.4 million, largely due to a $26.4 million construction and development (C&D) loan moving to non-accrual status. The provision for credit losses rose to $6 million from $3.3 million in the previous quarter, influenced by specific reserves for the C&D loan. The bank's total deposits remained stable at $3.1 million, with a noted $20 million increase in non-interest-bearing deposits. Additionally, the cost of deposits decreased by 30 basis points to an average of 3.35%. Looking forward, the bank anticipates cautious loan growth while focusing on resolving non-performing loans and maintaining capital strength.Rbb Bancorp Corporate Events
Business Operations and Strategy
RBB Bancorp Engages Investors at Piper Sandler Forum
Neutral
Mar 10, 2025
On March 10, 2025, RBB Bancorp’s top executives, including CEO David Morris, President Johnny Lee, and CFO Lynn Hopkins, participated in the Piper Sandler Western Bank Forum Conference in Marina del Rey, California. The company made its investor presentation materials available on its website, highlighting its engagement with institutional investors and its commitment to transparency, although it disclaimed any obligation to update the information provided.
Business Operations and StrategyFinancial Disclosures
RBB Bancorp Reports Decrease in 2024 Earnings
Negative
Feb 4, 2025
RBB Bancorp reported its financial results for the fourth quarter and fiscal year ending December 31, 2024. The company experienced a decrease in net income to $4.4 million for the fourth quarter, compared to $7.0 million in the previous quarter. For the fiscal year, net income totaled $26.7 million, down from $42.5 million in 2023. Despite the earnings decline, the company saw improvements in net interest margin and continues to address nonperforming loans. RBB Bancorp also expressed its commitment to supporting the Los Angeles community following recent fires.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.