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Rbb Bancorp (RBB)
NASDAQ:RBB
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Rbb Bancorp (RBB) AI Stock Analysis

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RBB

Rbb Bancorp

(NASDAQ:RBB)

Rating:79Outperform
Price Target:
$22.00
▲(16.96%Upside)
RBB Bancorp's stock is bolstered by strong technical indicators and a healthy valuation. The financial performance remains stable with operational efficiencies, despite challenges in revenue growth. Positive earnings call insights on loan growth and net interest margin improvements further support the stock’s outlook, although increased substandard loans and noninterest expenses pose risks.

Rbb Bancorp (RBB) vs. SPDR S&P 500 ETF (SPY)

Rbb Bancorp Business Overview & Revenue Model

Company DescriptionRBB Bancorp (RBB) is a financial holding company headquartered in Los Angeles, California. It operates primarily through its wholly-owned subsidiary, Royal Business Bank, which provides commercial banking services to businesses and individuals. The bank focuses on serving the Asian-American community, offering a wide range of financial products and services including loans, deposit accounts, and other financial services tailored to meet the needs of its clients. RBB Bancorp is committed to fostering economic growth and supporting the financial well-being of its clientele.
How the Company Makes MoneyRBB Bancorp makes money primarily through its subsidiary, Royal Business Bank, which generates revenue from interest income on loans and leases, as well as fees from deposit accounts and other banking services. The bank offers various loan products, including commercial real estate loans, commercial and industrial loans, and small business loans, which constitute a significant portion of its income. Additionally, RBB Bancorp earns non-interest income from service charges, fees, and other financial services. The bank's focus on the Asian-American community allows it to leverage relationships and expertise in this niche market, contributing to its revenue growth. Strategic partnerships and community involvement also play a role in enhancing the company's market presence and profitability.

Rbb Bancorp Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: 3.07%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong loan growth, improved net interest margins, and increased deposits. However, there were concerns about increased substandard loans, higher noninterest expenses, and net charge-offs. The company remains optimistic about future loan growth and addressing criticized assets.
Q2-2025 Updates
Positive Updates
Increased Net Income and Loan Growth
Second quarter net income totaled $9.3 million or $0.52 per share, supported by solid loan growth and stable asset yields. Loans held for investment grew by $92 million, or 12% on an annualized basis.
Strong Mortgage Origination Business
The in-house mortgage origination business originated $120 million of mortgages in the second quarter, contributing to total loan originations of $183 million at a blended yield of 6.76%.
Net Interest Margin Expansion
Net interest margin increased to 2.92%, marking an increase of 25 basis points over the last four quarters.
Employee Retention Credit Refund
Second quarter results benefited from a $5.2 million employee retention credit refund included in other income.
Deposit Growth
Total deposits increased at a 6% annualized rate from the first quarter to $3.2 billion, with growth in noninterest-bearing deposits and CDs.
Negative Updates
Increased Criticized and Classified Assets
Criticized and classified assets increased, although the majority of the additions this quarter remain on accrual status.
Higher Noninterest Expenses
Second quarter noninterest expenses increased by $2 million to $20.5 million, driven by executive management transitions and incentive payments.
Increased Substandard Loans
Substandard loans increased by $14.6 million to $91 million at the end of the quarter, primarily due to downgrades.
Net Charge-Offs
Net charge-offs amounted to $3.3 million, related almost entirely to one lending relationship.
Past Due Loans Increase
Past due loans increased by $12.1 million to $18 million, though some have since been brought current.
Company Guidance
During the RBB Bancorp Second Quarter 2025 earnings call, the company provided guidance on several financial metrics. The second quarter net income was reported at $9.3 million, or $0.52 per share, with a significant contribution from a $2.9 million after-tax net income from an employee retention tax credit refund. RBB Bancorp experienced a 12% annualized growth in loans held for investment, with total second quarter loan originations reaching $183 million at a blended yield of 6.76%. The net interest margin (NIM) increased by 4 basis points to 2.92%, marking the fourth consecutive quarter of NIM expansion. The company also noted that absent rate cuts, funding costs are likely to stabilize. Nonperforming loans did not increase, though criticized and classified assets saw some growth. The bank's total deposits rose at a 6% annualized rate, reaching $3.2 billion. A notable emphasis was placed on maintaining a strong loan origination pipeline and managing deposit growth to support funding needs.

Rbb Bancorp Financial Statement Overview

Summary
RBB Bancorp demonstrates strong cash flow management and operational efficiency, but faces challenges in revenue growth and net income decline. The balance sheet is stable, yet asset and liability management requires attention for sustained growth.
Income Statement
72
Positive
RBB Bancorp's TTM (Trailing-Twelve-Months) shows a decline in revenue and net income compared to previous years, indicating challenges in maintaining growth. The gross profit margin has decreased, reflecting potential cost management issues. However, the company maintains a positive EBIT and EBITDA margin, showcasing operational efficiency despite revenue pressures.
Balance Sheet
68
Positive
The balance sheet reflects a stable equity base with a debt-to-equity ratio that suggests moderate leverage. The equity ratio is healthy, indicating a strong capital position. However, fluctuations in total assets and liabilities could indicate future stability concerns.
Cash Flow
75
Positive
RBB Bancorp demonstrates strong cash flow management with a positive free cash flow and a robust operating cash flow to net income ratio. The free cash flow has grown over the period, indicating effective cash generation capabilities despite fluctuating capital expenditures and financing activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue232.00M236.13M191.47M165.81M153.08M
Gross Profit104.84M130.94M155.11M139.13M106.97M
EBITDA44.93M69.87M102.36M94.47M55.28M
Net Income26.66M42.47M64.33M56.91M32.93M
Balance Sheet
Total Assets4.01B4.03B3.92B4.23B3.35B
Cash, Cash Equivalents and Short-Term Investments345.55M508.11M340.98M870.23M349.12M
Total Debt364.39M315.28M434.83M360.79M268.67M
Total Liabilities3.48B3.51B3.43B3.76B2.92B
Stockholders Equity507.88M511.19M484.49M466.61M428.42M
Cash Flow
Free Cash Flow57.71M50.64M91.75M200.19M120.31M
Operating Cash Flow58.49M51.29M93.81M202.18M124.51M
Investing Cash Flow-160.39M243.31M-260.17M-504.18M-446.01M
Financing Cash Flow-71.74M53.22M-444.46M801.72M334.38M

Rbb Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.81
Price Trends
50DMA
17.52
Positive
100DMA
16.81
Positive
200DMA
18.88
Negative
Market Momentum
MACD
0.43
Positive
RSI
58.46
Neutral
STOCH
54.90
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 18.81 is above the 20-day moving average (MA) of 18.59, above the 50-day MA of 17.52, and below the 200-day MA of 18.88, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$301.37M11.189.74%5.76%8.59%14.56%
79
Outperform
$335.46M14.654.47%3.38%-0.13%-32.16%
75
Outperform
$275.60M9.689.62%3.43%9.53%63.45%
74
Outperform
$303.02M12.637.50%2.18%1.75%2.76%
69
Neutral
$344.42M20.243.42%17.80%86.24%
65
Neutral
£5.01B10.906.90%6.17%24.10%4.50%
50
Neutral
$337.36M-0.06%-20.44%99.91%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RBB
Rbb Bancorp
18.81
-4.22
-18.32%
CZNC
Citizens & Northern
19.19
-0.68
-3.42%
CZFS
Citizens Financial Services
54.45
2.59
4.99%
BCML
BayCom
27.53
3.80
16.01%
PDLB
Ponce Financial Group Inc
14.45
4.48
44.93%
BRBS
Blue Ridge Bankshares
3.66
0.91
33.09%

Rbb Bancorp Corporate Events

DividendsFinancial Disclosures
RBB Bancorp Announces Cash Dividend Amid Strong Q2 Results
Positive
Jul 22, 2025

On July 21, 2025, RBB Bancorp announced a cash dividend of $0.16 per share, payable on August 12, 2025. The company reported strong financial results for the second quarter of 2025, with a net income of $9.3 million, a significant increase from the previous quarter. Key highlights include a rise in net interest income, a decrease in nonperforming assets, and an increase in loan growth. The company also benefited from a $5.2 million Employee Retention Credit, which contributed to the increase in noninterest income. These results reflect RBB Bancorp’s strategic focus on loan growth and efficient management of nonperforming assets, positioning it well in the financial sector.

The most recent analyst rating on (RBB) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Rbb Bancorp stock, see the RBB Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
RBB Bancorp Announces $18M Stock Repurchase Plan
Positive
May 29, 2025

On May 29, 2025, RBB Bancorp announced a stock repurchase plan authorized by its Board of Directors, allowing for the buyback of up to $18 million of its outstanding common stock through June 30, 2026. The repurchase plan is flexible, permitting purchases in open market or private transactions, and can be modified or terminated based on market conditions and other factors. This move could potentially impact the company’s stock value and shareholder returns, reflecting RBB Bancorp’s strategic financial management and market positioning.

The most recent analyst rating on (RBB) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Rbb Bancorp stock, see the RBB Stock Forecast page.

Executive/Board ChangesShareholder Meetings
RBB Bancorp’s Annual Shareholder Meeting Highlights Key Decisions
Neutral
May 23, 2025

On May 21, 2025, RBB Bancorp held its Annual Meeting of Shareholders where key decisions were made, including the election of eleven directors to the board, approval of executive compensation, and ratification of Crowe LLP as the independent auditor for the fiscal year 2025. The meeting saw participation from shareholders holding 11,231,147 shares out of the 17,738,627 shares entitled to vote, reflecting significant shareholder engagement in the company’s governance and strategic direction.

The most recent analyst rating on (RBB) stock is a Hold with a $19.00 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.Date of analysis: Jul 24, 2025