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1. Company Snapshot

1.a. Company Description

RBB 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.

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1.b. Last Insights on RBB

RBB Bancorp's recent performance was driven by strong Q3 earnings, with quarterly earnings of $0.59 per share beating estimates. The company's loan portfolio is well-collateralized, with low average LTV ratios, supporting limited future credit losses. Additionally, RBB Bancorp's focus on Asian-centric communities and stabilizing loan quality issues have contributed to improved EPS. The company's solid earnings estimate revisions and positive earnings outlook have also been key drivers. A quarterly cash dividend of $0.16 per common share was also declared.

1.c. Company Highlights

2. RBB Bancorp Posts Strong Q4 2025 Earnings with Solid Loan Growth and Improving Credit Metrics

RBB Bancorp reported a net income of $10.2 million or $0.59 per share for the fourth quarter of 2025, a significant increase from the same quarter a year ago, while remaining stable from the third quarter. The earnings per share (EPS) beat analyst estimates of $0.49. The bank's return on assets (ROA) and net interest margin (NIM) showed similar trends, remaining stable from the third quarter while increasing sharply from a year ago. Revenue growth is expected to continue, with analysts estimating an 8.3% increase in revenues for the next year.

Publication Date: Feb -22

📋 Highlights
  • Net Income & EPS Stability: $10.2M net income ($0.59 EPS) in Q4 2025, stable from Q3 but 105% higher YoY.
  • Loan Growth Acceleration: $145M in Q4 loan originations (2025 total: $730M), 32% increase from 2024.
  • Credit Quality Improvement: Nonperforming loans down 45%, nonperforming assets down 34% YoY.
  • Tax Rate Optimization: 2025 effective tax rate reduced by 330 bps QoQ; 2026 projected at 27-28%.
  • Deposit & Funding Strategy: Loan-to-deposit ratio at 99% in Q4, targeting mid-90s in 2026 via deposit growth and loan sales.

Loan Growth and Credit Quality

The bank reported strong loan originations of $145 million in the fourth quarter and $73 million for all of 2025, representing a 32% increase from 2024. The loan pipeline remains healthy, expected to support high single-digit growth in 2026. Nonperforming loans decreased by 45% and nonperforming assets decreased by 34% since the end of last year, indicating improving credit quality. According to Lynn Hopkins, the bank hopes to see continuous improvements in the credit picture over the next 12 months.

Financial Performance and Expenses

Pretax pre-provision income was $2.3 million, 21% higher than a year ago. Noninterest income declined by $486,000 from the third quarter, mainly due to lower gains on sales, while noninterest expenses increased by $282,000, mostly due to year-end accruals. The effective tax rate was reduced by 330 basis points in the fourth quarter compared to the third quarter of 2025, benefiting from purchased federal tax credits and state apportionment tax planning.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.72, and a Dividend Yield of 2.88%, RBB Bancorp appears to be reasonably valued. The bank's Net Interest Margin (NIM) has shown improvement, and the loan-to-deposit ratio stands at 99%. Management expects to see a mid-90s loan-to-deposit ratio in the future, potentially through a combination of loan sales and deposit growth. As the bank continues to improve its credit quality and grow its loan portfolio, investors may expect further positive developments.

Guidance and Future Expectations

Lynn Hopkins mentioned that the deposit beta will continue to increase, driven by a large portion of the funding base and deposits maturing over the next year. The bank is also expecting a repricing of its sub-debt lease in April 2026. For 2026, the effective tax rate is expected to be between 27% and 28%. Expenses are estimated to be in the range of $18-19 million, reflecting a decrease in management transition expenses and potentially lower legal and professional costs as credit is stabilized.

3. NewsRoom

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Head-To-Head Comparison: Sierra Bancorp (NASDAQ:BSRR) & RBB Bancorp (NASDAQ:RBB)

Mar -05

Source: defenseworld.net

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All You Need to Know About RBB (RBB) Rating Upgrade to Buy

Feb -02

Source: zacks.com

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RBB Bancorp (RBB) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

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Compared to Estimates, RBB (RBB) Q4 Earnings: A Look at Key Metrics

Jan -27

Source: zacks.com

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RBB (RBB) Surpasses Q4 Earnings Estimates

Jan -26

Source: zacks.com

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RBB Bancorp Reports Fourth Quarter and Fiscal Year 2025 Earnings and Declares Quarterly Cash Dividend of $0.16 Per Common Share

Jan -26

Source: globenewswire.com

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Critical Contrast: Glacier Bancorp (NYSE:GBCI) and RBB Bancorp (NASDAQ:RBB)

Jan -26

Source: defenseworld.net

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RBB (RBB) Q4 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Jan -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.43%)

6. Segments

Banking and Related Activities

Expected Growth: 7.43%

RBB Bancorp's 7.43% growth in Banking and Related Activities is driven by strong loan growth, fueled by a robust California economy and strategic expansion into new markets. Additionally, the bank's focus on commercial and industrial lending, as well as its growing wealth management business, contribute to its growth momentum.

7. Detailed Products

Personal Banking

RBB Bancorp offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

RBB Bancorp provides business banking services, including business checking and savings accounts, credit cards, lines of credit, and commercial loans.

Wealth Management

RBB Bancorp offers wealth management services, including investment management, retirement planning, and estate planning.

Home Loans

RBB Bancorp provides home loan services, including mortgage loans, refinancing, and home equity loans.

Commercial Lending

RBB Bancorp offers commercial lending services, including commercial real estate loans, construction loans, and lines of credit.

Treasury Management

RBB Bancorp provides treasury management services, including cash management, wire transfers, and account reconciliation.

8. RBB Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for RBB Bancorp is moderate, as customers have alternative banking options available.

Bargaining Power Of Customers

The bargaining power of customers is low, as RBB Bancorp has a diverse customer base and a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as RBB Bancorp relies on a few large suppliers for its operations.

Threat Of New Entrants

The threat of new entrants is low, as RBB Bancorp operates in a highly regulated industry with significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high, as RBB Bancorp operates in a competitive banking industry with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.10%
Debt Cost 5.77%
Equity Weight 63.90%
Equity Cost 8.70%
WACC 7.64%
Leverage 56.50%

11. Quality Control: RBB Bancorp passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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HBT Financial

A-Score: 6.3/10

Value: 4.9

Growth: 4.2

Quality: 8.0

Yield: 7.0

Momentum: 5.5

Volatility: 8.0

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Financial Institutions

A-Score: 6.3/10

Value: 6.9

Growth: 3.6

Quality: 4.7

Yield: 8.0

Momentum: 7.0

Volatility: 7.3

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Capital Bancorp

A-Score: 6.2/10

Value: 7.3

Growth: 6.3

Quality: 7.9

Yield: 3.0

Momentum: 4.5

Volatility: 8.0

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TowneBank

A-Score: 6.1/10

Value: 6.1

Growth: 5.0

Quality: 7.0

Yield: 6.0

Momentum: 4.0

Volatility: 8.7

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Amalgamated Financial

A-Score: 6.0/10

Value: 7.5

Growth: 7.2

Quality: 8.1

Yield: 4.0

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

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RBB Bank

A-Score: 5.7/10

Value: 7.8

Growth: 5.0

Quality: 5.6

Yield: 6.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.23$

Current Price

21.23$

Potential

-0.00%

Expected Cash-Flows