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Rbb Bancorp (RBB)
NASDAQ:RBB
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Rbb Bancorp
(NASDAQ:RBB)
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Rating:71Outperform
Price Target:
$24.00
▲(8.11% Upside)
Overall score reflects a solid earnings-call outlook and improving credit trends, supported by reasonable valuation and a constructive technical setup. These are tempered by mixed financial statements, notably declining revenue and free cash flow growth and weak ROE.
Positive Factors
Improving asset quality
Significant reductions in NPLs, NPAs and criticized assets materially lower expected future credit costs and provisioning needs. This durable credit improvement frees capital, improves earnings visibility and supports sustained capital returns and underwriting capacity over several quarters.
Low leverage and strong capital
A very low debt-to-equity ratio and solid equity base provide resilience to shocks and flexibility to absorb losses without forcing asset sales. This structural strength supports dividend and buyback capacity, conservative funding, and options to rightsize capital through planned repricing actions.
Consistent loan growth and strong originations
Sustained high-single-digit loan growth and a robust origination pipeline underpin recurring interest income expansion. Durable loan growth leverages the bank's community niche, supports NII expansion if funding costs improve, and enhances long-term franchise value and fee opportunities.
Negative Factors
Concentrated CD maturities create funding risk
A large, concentrated cohort of CD maturities within a year forces frequent repricing of liabilities. If deposit beta rises or competitors price aggressively, funding costs could climb and compress NIM for multiple quarters, constraining earnings and capital deployment during the rollover period.
Declining revenue and free cash flow growth
Persistent declines in top-line growth and materially weaker free cash flow growth reduce internal funding for lending, investments, and capital returns. Over several quarters this limits strategic flexibility, may force higher reliance on external funding, and pressures long-term profitability.
Weak return on equity
A sub-2% ROE signals low efficiency converting equity into earnings and limits shareholder return potential. Unless NIMs expand, loan yields improve or capital is optimized, the low ROE will persist and may constrain investor confidence and the pace of sustainable buybacks/dividends.
Rbb Bancorp (RBB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$376.57M
Dividend Yield2.98%
Average Volume (3M)56.46K
Price to Earnings (P/E)12.1
Beta (1Y)0.83
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 Ratio-0.41
Price to Book (P/B)0.73
Price to Sales (P/S)1.60
P/FCF Ratio6.43
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue2.83
Enterprise Value/Gross Profit6.07
Enterprise Value/Ebitda15.34
Forecast
1Y Price Target
$22.00Price Target Upside-0.90% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Mixed fundamentals: profitability is decent (net margin 11.82%, EBIT margin 15.57%) and leverage is low (debt-to-equity 0.03), but revenue growth is declining (-5.77% TTM), ROE is weak (1.88%), and free cash flow growth fell (-30.93% TTM).Income Statement
Rbb Bancorp's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth at -5.77%, which is concerning. However, the company maintains a healthy net profit margin of 11.82% and an EBIT margin of 15.57%. The gross profit margin has decreased significantly from previous years, indicating pressure on profitability. Overall, while profitability metrics remain decent, the declining revenue trend poses a risk.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.03 in the TTM period, indicating low leverage. However, the return on equity has decreased to 1.88%, suggesting reduced efficiency in generating returns from equity. The equity ratio remains strong, indicating a solid capital structure. The company appears financially stable but needs to improve its return metrics.70
Positive
Cash Flow
Cash flow analysis shows a decline in free cash flow growth at -30.93% in the TTM period, which is a concern. The free cash flow to net income ratio remains high at 98.92%, indicating good cash conversion. However, the operating cash flow to net income ratio is low, suggesting potential issues in cash generation from operations. Overall, while cash conversion is strong, the decline in free cash flow growth is a risk factor.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 235.28M | 232.00M | 236.13M | 191.47M | 165.81M | 153.08M |
| Gross Profit | 109.79M | 104.84M | 130.91M | 155.11M | 139.13M | 106.97M |
| EBITDA | 43.42M | 44.93M | 69.87M | 102.36M | 94.47M | 55.28M |
| Net Income | 26.16M | 26.66M | 42.47M | 64.33M | 56.91M | 32.93M |
Balance Sheet | ||||||
| Total Assets | 4.21B | 3.99B | 4.03B | 3.92B | 4.23B | 3.35B |
| Cash, Cash Equivalents and Short-Term Investments | 646.16M | 345.55M | 508.11M | 340.98M | 870.23M | 349.12M |
| Total Debt | 291.20M | 364.39M | 315.28M | 434.83M | 360.79M | 268.67M |
| Total Liabilities | 3.69B | 3.48B | 3.51B | 3.43B | 3.76B | 2.92B |
| Stockholders Equity | 514.26M | 507.81M | 511.19M | 484.49M | 466.61M | 428.42M |
Cash Flow | ||||||
| Free Cash Flow | 48.15M | 57.71M | 50.64M | 91.75M | 200.19M | 120.31M |
| Operating Cash Flow | 49.02M | 58.49M | 51.29M | 93.81M | 202.18M | 124.51M |
| Investing Cash Flow | -342.74M | -160.39M | 243.31M | -260.17M | -504.18M | -446.01M |
| Financing Cash Flow | 179.26M | -71.74M | 53.22M | -444.46M | 801.72M | 334.38M |
Rbb Bancorp Technical Analysis
Positive
22.20
Price Trends
21.44
Positive
20.10
Positive
18.97
Positive
Market Momentum
0.30
Negative
59.58
Neutral
46.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBB, the sentiment is Positive. The current price of 22.2 is above the 20-day moving average (MA) of 21.64, above the 50-day MA of 21.44, and above the 200-day MA of 18.97, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 46.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $467.03M | 10.50 | 15.69% | 2.00% | 8.90% | 18.23% | |
76 Outperform | $331.73M | 13.98 | 7.07% | 2.91% | 1.25% | -0.07% | |
74 Outperform | $417.99M | 16.11 | 7.54% | 5.43% | 5.76% | 21.85% | |
73 Outperform | $352.53M | 13.45 | 10.19% | 2.61% | -14.00% | 73.85% | |
71 Outperform | $376.57M | 12.10 | 5.11% | 2.98% | -0.70% | -19.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $369.19M | 17.60 | 6.79% | ― | 28.90% | 31.84% |
* Financial Sector Average
RBB
Rbb Bancorp
22.20
5.69
34.46%
CZNC
Citizens & Northern
23.84
4.27
21.80%
BCML
BayCom
30.24
4.24
16.30%
MVBF
MVB Financial
28.45
10.17
55.64%
PBFS
Pioneer Bancorp
14.45
2.72
23.19%
OBT
Orange County Bancorp
35.00
10.07
40.39%
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.