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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 Delivers Strong Q2 Earnings with Loan Growth and Improved Margins

RBB Bancorp reported a solid second-quarter performance, with net income reaching $9.3 million, or $0.52 per share, surpassing analyst estimates of $0.36 per share. The earnings included a $2.9 million after-tax benefit from an employee retention tax credit refund. The company's net interest income rose by $1.2 million, driven by a 12% annualized increase in loans held for investment, which grew by $92 million. The net interest margin expanded to 2.92%, a 25-basis-point improvement over the past four quarters, reflecting strong demand for loans and stable earning asset yields. Tangible book value per share increased to $25.11, underpinning the bank's strong capital position.

Publication Date: Jul -23

📋 Highlights
  • Net Income: $9.3 million or $0.52 per share, including a $2.9 million after-tax refund from an employee retention tax credit.
  • Loan Growth: Loans held for investment grew $92 million, representing a 12% annualized increase.
  • Net Interest Margin: Increased to 2.92%, a 25-basis-point rise over the last four quarters.
  • Tangible Book Value: Rose to $25.11 per share, with strong capital levels maintained.
  • Buyback Program: $18 million program announced, with modest usage in the second quarter.

Asset Quality Shows Improvement

RBB Bancorp's asset quality improved during the quarter, with nonperforming loans declining by $3.6 million, or 6%, to $56.8 million. While criticized and classified assets increased, most of these remained on accrual status, indicating manageable risk levels. The allowance for loan losses to total loans held for investment ratio stood at 1.58%, providing a buffer against potential credit losses. Management emphasized a more conservative approach to credit monitoring, with loan-to-value ratios and global cash flow remaining healthy.

Deposit Growth and Funding Strategy

Deposits grew at a 6% annualized rate, reaching $3.2 billion, driven by deepening commercial relationships and promotional efforts. The loan-to-deposit ratio remains elevated, but management expressed confidence in managing it through organic deposit growth and potential loan sales. The company highlighted opportunities in single-family and SBA loan portfolios but did not provide specific guidance for modeling purposes. Deposit costs are expected to stabilize, even without Fed rate cuts, as competition for deposits remains steady.

Valuation and Investor Appeal

Trading at a price-to-tangible book value (P/TBV) of 0.67 and offering a dividend yield of 3.29%, RBB Bancorp's stock appears attractive relative to its peers. The current valuation reflects the company's strong capital position and improving profitability metrics. With a net interest margin of 2.92% and a robust dividend yield, the stock offers a compelling blend of income and capital appreciation potential. Analysts expect revenue growth of 8.9% next year, further supporting the positive outlook for the bank.

3. NewsRoom

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Summit State Bank (NASDAQ:SSBI) vs. RBB Bancorp (NASDAQ:RBB) Financial Analysis

Nov -25

Source: defenseworld.net

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Reviewing RBB Bancorp (NASDAQ:RBB) and Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL)

Nov -19

Source: defenseworld.net

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Can RBB (RBB) Run Higher on Rising Earnings Estimates?

Nov -07

Source: zacks.com

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Top Chinese Stocks To Follow Now – October 28th

Oct -30

Source: defenseworld.net

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RBB Bancorp (RBB) Q3 2025 Earnings Call Transcript

Oct -21

Source: seekingalpha.com

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RBB (RBB) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -21

Source: zacks.com

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RBB (RBB) Q3 Earnings and Revenues Surpass Estimates

Oct -20

Source: zacks.com

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

Oct -20

Source: globenewswire.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: 6.7/10

Value: 6.4

Growth: 4.2

Quality: 7.6

Yield: 7.0

Momentum: 7.0

Volatility: 8.0

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Capital Bancorp

A-Score: 6.5/10

Value: 6.8

Growth: 6.3

Quality: 7.0

Yield: 3.0

Momentum: 8.0

Volatility: 8.0

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TowneBank

A-Score: 6.1/10

Value: 5.2

Growth: 5.2

Quality: 7.0

Yield: 6.0

Momentum: 5.0

Volatility: 8.3

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Amalgamated Financial

A-Score: 6.0/10

Value: 7.6

Growth: 7.2

Quality: 8.2

Yield: 4.0

Momentum: 2.0

Volatility: 6.7

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Financial Institutions

A-Score: 5.9/10

Value: 6.4

Growth: 3.6

Quality: 3.8

Yield: 9.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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RBB Bank

A-Score: 5.5/10

Value: 8.4

Growth: 5.0

Quality: 5.6

Yield: 6.0

Momentum: 2.0

Volatility: 6.0

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

21.37$

Current Price

21.37$

Potential

-0.00%

Expected Cash-Flows