Education
About Us
Working with TipRanks
Follow Us
Rbb Bancorp (RBB)
:RBB
Top Page
Rbb Bancorp
(NASDAQ:RBB)
Rating:71Outperform
Price Target:
$18.50
▲(0.00%Upside)
Rbb Bancorp (RBB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$328.19M
Dividend Yield3.46%
Average Volume (3M)56.10K
Price to Earnings (P/E)15.9
Beta (1Y)1.14
Revenue Growth-4.09%
EPS Growth-44.36%
CountryUS
Employees372
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.13
Shares Outstanding17,739,859
10 Day Avg. Volume87,496
30 Day Avg. Volume56,099
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)0.82
Price to Sales (P/S)0.00
P/FCF Ratio4.34
Enterprise Value/Market Cap2.28
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit5.21
Enterprise Value/Ebitda6.60
Forecast
1Y Price Target
$18.33Price Target Upside-0.92% Downside
Rating ConsensusHold
Number of Analyst Covering3
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:Apr 28, 2025
(Q1-2025)
| % Change Since: 19.43%|
Next Earnings Date:Jul 21, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong loan growth, reduction in non-performing assets, and deposit growth as positive aspects. However, it also acknowledged a decline in net income, increased non-interest expenses, and continued challenges with non-performing loans. While there is optimism for future improvements, the challenges faced indicate a balanced outlook.Q1-2025 Updates
Positive Updates
Loan Growth and Margin Expansion
Loan investment grew by $90 million or 12% on an annualized basis, driven by growth in commercial, SBA, and SFR balances. Net interest margin increased by 12 basis points to 2.88% due to a decline in the cost of interest-bearing deposits.
Successful Mortgage Origination
The in-house mortgage origination business originated $112 million in mortgages in the first quarter, contributing to total first quarter loan originations of $201 million at a blended yield of 6.77%.
Reduction in Non-Performing Assets
Non-performing assets were reduced by 20%, with net exposure to non-performing loans decreasing by 32% to $51 million. NPLs decreased by $20.7 million or 25%, representing 1.92% of loans held for investment at quarter end.
Strong Deposit Growth
Total deposits increased at an 8% annualized rate from the fourth quarter to $3.14 billion, with growth in money market accounts and CDs more than offsetting the decline in non-interest-bearing accounts.
Negative Updates
Decline in Net Income
First quarter net income declined to $2.3 million or $0.13 per share, negatively impacted by a $6.7 million pre-tax provision for credit losses.
Increase in Non-Interest Expenses
Non-interest expenses increased by $873,000 to $18.5 million due to a seasonal increase in compensation and benefits, higher data processing fees, and an increase in legal and professional expenses.
Continued Challenges with Non-Performing Loans
A $5.3 million New York CRE loan was downgraded to non-performing, and there was an increase in specific reserves of $2.8 million, with net charge-offs of $2.6 million.
Decrease in Non-Interest Income
Non-interest income declined by 4.34% to $2.3 million in the first quarter due to lower gain on sale of loans and other income.
Company Guidance
During the first quarter of 2025, RBB Bancorp provided detailed guidance on various financial metrics and strategic actions. Net income fell to $2.3 million or $0.13 per share, impacted by strategic efforts to reduce non-performing assets by 20% and net exposure to non-performing loans by 32% to $51 million. This involved selling $18 million in loans, recognizing $6.7 million in provisions, and receiving $1.8 million in paydowns. The bank achieved a 12% annualized growth in loans and a 12 basis point increase in net interest margin, which reached 2.88%. Total first-quarter loan originations were $201 million, with a blended yield of 6.77%. The cost of interest-bearing deposits decreased by 29 basis points, contributing to a 17-basis-point decline in the overall cost of funds. Non-interest income decreased by 4.34% to $2.3 million, while non-interest expenses rose by $873,000 to $18.5 million. The allowance for loan losses to total loans increased by 9 basis points to 1.65%, and deposits grew at an 8% annualized rate to $3.14 billion. RBB Bancorp remains focused on resolving non-performing loans and expects further progress in upcoming quarters.Rbb Bancorp Financial Statement Overview
Summary
RBB Bancorp's financial performance is challenged by declining revenues and profits, raising concerns about revenue generation and operational sustainability. Despite a strong equity position, decreasing assets and cash flow suggest strategic challenges.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 |
| EBITDA | 0.00 | 0.00 | 102.36M | 93.44M | 54.30M |
| Net Income | 26.66M | 42.47M | 64.33M | 56.91M | 32.93M |
Balance Sheet | |||||
| Total Assets | 4.01B | 4.03B | 3.92B | 4.23B | 3.35B |
| Cash, Cash Equivalents and Short-Term Investments | 32.10M | 431.37M | 340.98M | 870.23M | 349.12M |
| Total Debt | 364.39M | 315.28M | 434.83M | 360.79M | 268.67M |
| 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 | 57.71M | 50.64M | 91.75M | 200.19M | 120.31M |
| Operating Cash Flow | 58.49M | 51.29M | 93.81M | 202.18M | 124.51M |
| Investing Cash Flow | -160.39M | 243.31M | -260.17M | -504.18M | -446.01M |
| Financing Cash Flow | -71.74M | 53.22M | -444.46M | 801.72M | 334.38M |
Rbb Bancorp Technical Analysis
Positive
18.50
Price Trends
16.62
Positive
16.61
Positive
19.18
Negative
Market Momentum
0.37
Negative
69.05
Neutral
95.42
Negative
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 18.5 is above the 20-day moving average (MA) of 17.09, above the 50-day MA of 16.62, and below the 200-day MA of 19.18, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 69.05 is Neutral, neither overbought nor oversold. The STOCH value of 95.42 is Negative, 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $317.99M | 13.76 | 7.28% | 2.77% | 2.11% | -5.15% | |
73 Outperform | $309.78M | 10.88 | 9.62% | 3.04% | 9.53% | 63.45% | |
71 Outperform | $328.19M | 15.95 | 4.09% | 3.46% | -4.09% | -44.36% | |
70 Outperform | $311.44M | 11.53 | 9.83% | 5.57% | 1.17% | 15.00% | |
70 Outperform | $311.44M | 11.53 | 9.83% | 5.57% | 1.17% | 15.00% | |
68 Neutral | $343.70M | 23.94 | 2.88% | ― | 20.07% | 147.42% | |
67 Neutral | $17.07B | 11.91 | 9.69% | 3.75% | 11.66% | -9.47% | |
44 Neutral | $327.33M | ― | -4.98% | ― | -16.75% | 86.60% |
* Financial Sector Average
Performance Comparison
RBB
Rbb Bancorp
18.50
0.67
3.76%
CZNC
Citizens & Northern
20.10
3.81
23.39%
CZNC
Citizens & Northern
20.10
3.81
23.39%
CZFS
Citizens Financial Services
64.44
23.68
58.10%
BCML
BayCom
28.89
9.64
50.08%
PDLB
Ponce Financial Group Inc
14.33
5.20
56.96%
BRBS
Blue Ridge Bankshares
3.59
0.97
37.02%
Rbb Bancorp Corporate Events
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.
Business Operations and StrategyFinancial Disclosures
RBB Bancorp Reports Q1 2025 Net Income Decline
Negative
Apr 29, 2025
RBB Bancorp reported a net income of $2.3 million for the first quarter of 2025, a decrease from the previous quarter, largely due to a $6.7 million provision for credit losses aimed at reducing exposure to nonperforming loans. Despite the decline in net income, the company achieved a 12% annualized growth in net loans and improved its net interest margin, reflecting strong loan production and strategic financial management.
Executive/Board ChangesShareholder Meetings
RBB Bancorp CEO Retirement Announcement
Neutral
Apr 11, 2025
On February 26, 2025, RBB Bancorp announced the retirement of its CEO, David Morris, effective after the annual shareholders’ meeting on May 21, 2025. The Retirement Agreement includes a comprehensive package for Mr. Morris, ensuring financial support and equity vesting, which may impact the company’s leadership transition and stakeholder interests.
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.