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Rbb Bancorp (RBB)
NASDAQ:RBB
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Rbb Bancorp
(NASDAQ:RBB)
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Rating:66Neutral
Price Target:
$23.00
▲(8.80% Upside)
Action:DowngradedDate:03/10/26
Overall score reflects stable but not fully recovered financial performance (profits and ROE still well below prior-cycle peaks, and 2025 free cash flow declined), balanced by clearly attractive valuation (low P/E and ~3% yield) and a generally positive earnings outlook driven by improving credit trends and continued loan growth. Technicals are a modest headwind, with price below key short-term moving averages and muted momentum.
Positive Factors
Improving Asset Quality
Large, sustained reductions in NPLs and NPAs materially lower credit volatility and expected future provisioning. This improvement supports steadier earnings, frees capital for growth or returns, and reduces loan-loss reserve pressure, improving long-term profitability resilience.
Consistent Loan Growth and Strong Originations
High-single-digit loan growth with a materially larger origination pipeline sustains core interest income expansion. Durable organic growth in commercial lending underpins revenue predictability, supports NII growth as deposits normalize, and builds franchise scale over multiple quarters.
Stronger Balance Sheet and Capital Position
Improving leverage and steady equity build bolster regulatory capital buffers and financial flexibility. A healthier capital structure enables continued dividend and buyback capacity, supports loss absorption, and allows more deliberate capital allocation over the medium term.
Negative Factors
Sub‑par Profitability / ROE
ROE materially below prior peaks signals weaker earnings power relative to the capital base. Persistently subdued returns reduce internal capital generation, constrain reinvestment and shareholder distributions, and suggest structural margin or efficiency headwinds that may take multiple quarters to reverse.
Concentrated Remaining Credit Risk
High concentration of remaining problem loans raises the risk of outsized losses if resolution is prolonged. Concentration makes loss timing and magnitude uncertain, potentially requiring elevated provisioning or slow recoveries that impair earnings and capital flexibility over several quarters.
Near‑term Funding and Deposit Repricing Risk
A large tranche of maturing CDs forces the bank to reprice liabilities in a competitive market, likely raising funding costs and pressuring NIM. Sustained deposit competition and required higher rates could compress net interest margin and limit capital available for growth or buybacks across multiple quarters.
Rbb Bancorp (RBB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$360.78M
Dividend Yield2.98%
Average Volume (3M)56.46K
Price to Earnings (P/E)11.0
Beta (1Y)0.85
Revenue Growth-0.70%
EPS Growth-19.65%
CountryUS
Employees372
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.59
Shares Outstanding17,046,898
10 Day Avg. Volume71,151
30 Day Avg. Volume56,461
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)0.67
Price to Sales (P/S)1.48
P/FCF Ratio8.94
Enterprise Value/Market Cap1.80
Enterprise Value/Revenue2.72
Enterprise Value/Gross Profit5.46
Enterprise Value/Ebitda13.29
Forecast
1Y Price Target
$22.00Price Target Upside4.07% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.09
Revenue Forecast (FY)$135.12M
Rbb Bancorp Business Overview & Revenue Model
Company DescriptionRBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company primarily offers its products and services to individuals, businesses, municipalities, and other entities. As of December 31, 2021, it operated 23 branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.
How the Company Makes MoneyRBB Bancorp generates revenue primarily through interest income from loans and investments, alongside non-interest income from fees associated with its banking services. The company’s main revenue streams include interest earned on commercial and consumer loans, which typically constitute the largest portion of its income. Additionally, RBB earns fees from deposit accounts, transaction services, and various banking solutions provided to its customers. The bank's focus on the Asian-American market and its personalized service approach help build strong relationships, leading to customer loyalty and repeat business. Strategic partnerships with local businesses and community organizations also enhance its visibility and customer base, contributing to its overall earnings.
Rbb Bancorp Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call presented numerous substantive improvements: strong YoY earnings growth, solid loan growth and originations, meaningful reductions in nonperforming assets and criticized/classified loans, and improved funding costs and capital returns. Management acknowledged remaining credit work (a few large NPLs, including a partial construction project), deposit competition and deposit-cost pressure, near-term repricing of subordinated debt, and some muted margin expansion in Q4. Overall, the positive operational and credit trends and capital actions outweigh the headwinds, but the company faces near-term funding and repricing challenges that management is actively addressing.Q4-2025 Updates
Positive Updates
Net Income and EPS Improvement
Q4 net income of $10.2 million, or $0.59 diluted EPS, stable vs Q3 and more than double year-ago quarter results (>100% YoY increase).
Loan Growth and Strong Originations
Full-year loans grew 8.6%. Q4 loan originations were $145 million, and year-to-date originations were 32% higher than 2024, supporting expectations for another year of high single-digit loan growth in 2026.
Net Interest Income and Margin Trends
Net interest income rose 13% for the year to $112 million. Q4 net interest margin was 2.99%, a 1 basis point increase quarter-over-quarter, marking the sixth consecutive quarterly NII increase.
Improving Asset Quality
Nonperforming loans decreased 45% and nonperforming assets decreased 34% since the end of prior year; criticized and classified assets decreased 43% for the full year and 25% since the end of Q3, with management confident credit has 'turned the corner.'
Pre-Tax, Pre-Provision Income Growth
Q4 pretax pre-provision income was $2.3 million, 21% higher than a year ago, outpacing asset growth (4x the asset growth rate over same period).
Deposit and Funding Improvements
Total deposits were up 6.6% YoY in Q4 with growth in interest-bearing non-maturing deposits supporting loan growth and enabling a reduction in FHLB advances; average demand deposits stable at 16% of total deposits.
Capital Returns and Book Value
Tangible book value per share increased 7.8% during 2025 to $26.42. Returned over $25 million of capital via dividends and share repurchases (repurchased ~4% of outstanding shares). Capital ratios remain above regulatory well-capitalized levels.
Lower Funding Costs and Tax Rate Benefits
Average funding costs declined 38 basis points for the year; Q4 saw an 8 basis point decline in average funding costs. Effective tax rate reduced meaningfully in Q4 (330 bps vs Q3) and 2026 effective tax rate guidance of 27-28%.
Negative Updates
Deposit Competition and Cost Pressure
Management noted intensified competition for deposits. The fourth quarter rate on average interest-bearing deposits declined 55 basis points YoY but deposit cost reductions have not kept pace with rate cuts, and deposit beta is expected to increase (linked-quarter beta ~30%, higher on a rolling basis).
Mixed Quarter for Deposits and Reliance on Maturing CDs
Q4 saw a $42 million decrease in brokered deposits partly offset by a $26 million retail deposit increase. 99.5% of CDs ($1.7B in mortgages referenced) will mature within 12 months, creating repricing risk and near-term funding uncertainty.
Muted Margin Expansion Near-Term
Margin improvement was described as muted in Q4; asset yields declined 7 basis points (including a 4 bps decline in loan yield) while pressure remains on NIM despite funding cost progress. Management remains liability sensitive with loan-to-deposit ratio near 99%.
Remaining Nonperforming Asset Workload
Although NPAs improved, management still has work resolving remaining NPLs: 90% of NPLs tied to four relationships, and one partially completed construction project represents about half of that remaining balance and may take longest to resolve.
Subordinated Debt Repricing
$120 million of sub debt is eligible to be redeemed/repriced effective April 1; if left to reprice, coupon would be just under ~7%, prompting plans to 'rightsize' the capital stack which may affect capital deployment timing.
Noninterest Income and Expense Volatility
Q4 noninterest income fell $486,000 vs Q3 (which included a $0.5 million equity gain). Noninterest expense rose $282,000 in Q4 (year-end accruals); legal and professional fees were elevated in 2025 but expected to moderate in 2026. Q1 2026 expenses expected slightly higher due to taxes and salary adjustments; run-rate guidance is $18M–$19M.
Potential Pressure from Competitors on Loan Pricing
Management acknowledged competitors pricing aggressively on CRE (examples of peers offering 5-year fixed loans in ~5.5%–5.75% range), and the bank has ceded some business as it maintains higher yields (management quoted >6% on many proposals).
Operational/Reporting Anomalies and Minor Confusion
Some inconsistent comments on origination totals in the prepared remarks (Q4 originations $145M vs an anomalous $73M figure mentioned), suggesting minor internal reporting/communication issues to clarify in future disclosures.
Company Guidance
Management guided to "another year of high‑single‑digit loan growth" in 2026 (after 8.6% loan growth in 2025), supported by a healthy pipeline and strong originations ($145M in Q4; 2025 originations 32% above 2024), and sees room for NIM expansion from the Q4 NIM of 2.99% and loan yield of 6.7% as deposit costs improve (spot deposit rate 290), noting a linked‑quarter deposit beta near 30% (historically closer to 70% y/y) and that 99.5% of $1.7B in CDs mature within 12 months (40% in Q1, average price in the high‑3% range) which should allow repricing; they expect incremental deposit cost improvement in Q1, an effective tax rate of 27–28% in 2026, quarterly noninterest expenses roughly $18–19M (Q1 ~ $0.75M higher for taxes/salary), lower annual credit costs as NPAs/NPLs continue to resolve (NPLs down 45% YoY; NPAs down 34% YoY; criticized/classified assets down 43% YoY), plans to rightsize $120M of sub debt re‑pricing on April 1, and the potential to resume buybacks once capital is optimized.Rbb Bancorp Financial Statement Overview
Summary
Mid-range fundamentals: revenue stability and modest 2025 rebound, improving leverage (lower debt-to-equity) and steady equity growth, but profitability/ROE remain well below 2021–2022 levels and free cash flow declined meaningfully in 2025, indicating uneven earnings power and choppy cash generation.Income Statement
Revenue has been relatively stable with a modest rebound in 2025 (annual revenue up ~3% vs. 2024) after a flat-to-down 2024, but profitability has structurally stepped down from the 2021–2022 peak. Net margin improved in 2025 vs. 2024 (about 13% vs. 11%), yet remains well below 2022 levels (~34%), reflecting pressure on earnings power. Operating profitability also recovered year over year in 2025, but the multi-year margin compression keeps the overall income-statement quality in the mid-range.62
Positive
Balance Sheet
Leverage looks reasonable and improving: debt-to-equity declined to ~0.60 in 2025 from ~0.72 in 2024 (and below the ~0.90 seen in 2022), suggesting a more conservative capital posture. Equity has grown steadily (roughly $523M in 2025 vs. $507M in 2024), supporting balance-sheet resilience. That said, returns have softened versus prior years, with return on equity around 6% in 2025 compared with low-teens in 2021–2022, indicating weaker profitability on the capital base.67
Positive
Cash Flow
Cash generation remains positive, with free cash flow matching net income in 2025 (free cash flow to net income ~1.0), which is a constructive quality signal. However, free cash flow declined materially in 2025 (down ~18% year over year) after stronger 2024, and operating cash flow has been lower than the early-2020s period. Overall, cash flow is adequate but shows volatility and a weakening trend versus prior peaks.55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 238.00M | 232.00M | 236.13M | 191.47M | 165.81M |
| Gross Profit | 118.80M | 104.84M | 130.91M | 155.11M | 139.13M |
| EBITDA | 48.77M | 44.93M | 69.87M | 102.36M | 94.47M |
| Net Income | 31.95M | 26.66M | 42.47M | 64.33M | 56.91M |
Balance Sheet | |||||
| Total Assets | 4.21B | 3.99B | 4.03B | 3.92B | 4.23B |
| Cash, Cash Equivalents and Short-Term Investments | 434.29M | 345.55M | 508.11M | 340.98M | 870.23M |
| Total Debt | 314.89M | 364.39M | 315.28M | 434.83M | 360.79M |
| Total Liabilities | 3.68B | 3.48B | 3.51B | 3.43B | 3.76B |
| Stockholders Equity | 523.41M | 507.81M | 511.19M | 484.49M | 466.61M |
Cash Flow | |||||
| Free Cash Flow | 39.38M | 57.71M | 50.64M | 91.75M | 200.19M |
| Operating Cash Flow | 39.38M | 58.49M | 51.29M | 93.81M | 202.18M |
| Investing Cash Flow | 257.00K | -160.39M | 243.31M | -260.17M | -504.18M |
| Financing Cash Flow | -25.09M | -71.74M | 53.22M | -444.46M | 801.72M |
Rbb Bancorp Technical Analysis
Neutral
21.14
Price Trends
21.45
Negative
20.57
Positive
19.31
Positive
Market Momentum
-0.05
Positive
42.68
Neutral
34.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBB, the sentiment is Neutral. The current price of 21.14 is below the 20-day moving average (MA) of 21.91, below the 50-day MA of 21.45, and above the 200-day MA of 19.31, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $420.65M | 8.58 | 16.51% | 2.00% | 8.90% | 18.23% | |
76 Outperform | $313.31M | 11.68 | 7.07% | 2.91% | 1.25% | -0.07% | |
73 Outperform | $324.41M | 19.30 | 8.46% | 2.61% | -14.00% | 73.85% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $399.58M | 19.95 | 7.79% | 5.43% | 5.76% | 21.85% | |
66 Neutral | $360.78M | 11.02 | 6.19% | 2.98% | -0.70% | -19.65% | |
66 Neutral | $345.61M | 21.68 | 6.79% | ― | 28.90% | 31.84% |
* Financial Sector Average
RBB
Rbb Bancorp
21.14
4.79
29.33%
CZNC
Citizens & Northern
22.31
3.31
17.45%
BCML
BayCom
28.75
4.43
18.24%
MVBF
MVB Financial
25.50
8.52
50.22%
PBFS
Pioneer Bancorp
13.78
1.98
16.78%
OBT
Orange County Bancorp
31.47
7.80
32.95%
Rbb Bancorp Corporate Events
DividendsFinancial Disclosures
RBB Bancorp reports strong 2025 results, declares dividend
Positive
Jan 27, 2026
On January 26, 2026, RBB Bancorp reported its fourth-quarter and full-year 2025 results, highlighting net income of $10.2 million, or $0.59 per diluted share, for the quarter and $31.9 million, or $1.83 per diluted share, for the year, representing year-over-year earnings growth supported by a 13% rise in net interest income and an expanded net interest margin. The bank posted 2025 loan growth of $261.1 million, or 8.6%, while significantly reducing classified and criticized loans by 43% and cutting nonperforming assets by 34% versus year-end 2024, improvements that helped lift book value and tangible book value per share and prompted the board on January 26, 2026 to declare a quarterly cash dividend of $0.16 per common share, payable February 13, 2026 to shareholders of record on January 30, 2026, underscoring management’s confidence in the company’s credit normalization and capital-return capacity.
The most recent analyst rating on (RBB) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Rbb Bancorp stock, see the RBB Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.