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Rbb Bancorp (RBB)
NASDAQ:RBB
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Rbb Bancorp
(NASDAQ:RBB)
51Neutral
Rbb Bancorp (RBB) vs. S&P 500 (SPY)
Market Cap
$304.24M
Dividend Yield3.73%
Average Volume (3M)31.86K
Price to Earnings (P/E)14.8
Beta (1Y)1.10
Revenue Growth-4.09%
EPS Growth-44.36%
CountryUS
Employees372
SectorFinancial
Sector Strength84
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.13
Shares Outstanding17,739,859
10 Day Avg. Volume32,734
30 Day Avg. Volume31,859
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)0.55
Price to Sales (P/S)0.00
P/FCF Ratio4.84
Enterprise Value/Market Cap1.99
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit4.21
Enterprise Value/Ebitda5.34
Forecast
1Y Price Target
$18.50Price Target Upside7.87% Upside
Rating ConsensusHold
Number of Analyst Covering2
Rbb Bancorp Business Overview & Revenue Model
Company DescriptionRBB Bancorp (RBB) is a financial holding company that operates through its wholly-owned banking subsidiary, Royal Business Bank. The company primarily serves small to medium-sized businesses, as well as individuals, with a focus on the Asian-American community. It offers a variety of banking products and services, including commercial and industrial loans, real estate loans, and deposit products. Headquartered in Los Angeles, California, RBB Bancorp operates branches across several states, providing tailored financial solutions to its diverse clientele.
How the Company Makes MoneyRBB Bancorp generates revenue primarily through the interest income earned from its loan portfolio, which includes commercial and industrial loans, real estate loans, and small business administration (SBA) loans. The company also earns non-interest income from service charges, fees, and other customer-related financial services. RBB Bancorp leverages its strong community ties and understanding of the markets it serves to build lasting partnerships with its clients. Additionally, the company benefits from its strategic focus on the Asian-American community, which provides a niche market that supports its growth and profitability.
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 | EBIT |
| 35.68M | 60.21M | 111.74M | 80.94M | 47.46M | EBITDA |
| 0.00 | 0.00 | 102.36M | 93.44M | 54.30M | Net Income Common Stockholders |
| 26.66M | 42.47M | 64.33M | 56.91M | 32.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 32.10M | 431.37M | 340.98M | 870.23M | 349.12M | Total Assets |
| 4.01B | 4.03B | 3.92B | 4.23B | 3.35B | Total Debt |
| 364.39M | 315.28M | 434.83M | 360.79M | 268.67M | Net Debt |
| 106.05M | -116.70M | 350.68M | -141.18M | 130.42M | 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
17.15
Price Trends
16.10
Positive
17.35
Negative
19.86
Negative
Market Momentum
0.34
Negative
65.70
Neutral
90.36
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 17.15 is above the 20-day moving average (MA) of 16.17, above the 50-day MA of 16.10, and below the 200-day MA of 19.86, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 90.36 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $299.81M | 10.53 | 9.62% | 3.11% | 9.53% | 63.45% | |
73 Outperform | $300.90M | 11.14 | 9.83% | 5.77% | 1.16% | 15.00% | |
71 Outperform | $301.70M | 13.06 | 7.28% | 1.82% | 2.11% | -5.15% | |
66 Neutral | $329.55M | 23.17 | 2.88% | ― | 20.07% | 147.42% | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% | |
51 Neutral | $304.24M | 14.78 | 4.09% | 3.73% | -4.09% | -44.36% | |
44 Neutral | $322.77M | ― | -4.98% | ― | -16.75% | 86.60% |
* Financial Sector Average
Performance Comparison
RBB
Rbb Bancorp
17.15
-1.37
-7.40%
CZNC
Citizens & Northern
19.48
2.11
12.15%
CZFS
Citizens Financial Services
62.71
22.00
54.04%
BCML
BayCom
26.92
6.93
34.67%
PDLB
Ponce Financial Group Inc
13.87
4.64
50.27%
BRBS
Blue Ridge Bankshares
3.50
0.44
14.38%
Rbb Bancorp Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 10.72%|
Next Earnings Date:Jul 28, 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 Corporate Events
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.
Spark’s Take on RBB Stock
According to Spark, TipRanks’ AI Analyst, RBB is a Neutral.
RBB Bancorp faces significant challenges, particularly in declining revenues and increasing non-performing loans, which weigh heavily on its financial performance score. While the stock’s valuation is relatively favorable with a low P/E ratio and attractive dividend yield, technical indicators suggest bearish momentum. The earnings call highlighted mixed results, with positive aspects overshadowed by credit and loan challenges. Overall, the stock’s score reflects these mixed factors, indicating a need for caution.
To see Spark’s full report on RBB stock, click here.
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.
Spark’s Take on RBB Stock
According to Spark, TipRanks’ AI Analyst, RBB is a Neutral.
RBB Bancorp’s overall stock score of 50 reflects significant financial and operational challenges. The primary concern is the declining revenue and profit margins, indicating potential instability. Technical analysis supports a bearish outlook with negative momentum indicators. However, the stock’s low valuation and reasonable dividend yield offer some appeal. Mixed signals from the earnings call highlight both improvements and challenges, including increased non-performing loans and credit losses.
To see Spark’s full report on RBB stock, click here.
Business Operations and Strategy
RBB Bancorp Engages Investors at Piper Sandler Forum
Neutral
Mar 10, 2025
On March 10, 2025, RBB Bancorp’s top executives, including CEO David Morris, President Johnny Lee, and CFO Lynn Hopkins, participated in the Piper Sandler Western Bank Forum Conference in Marina del Rey, California. The company made its investor presentation materials available on its website, highlighting its engagement with institutional investors and its commitment to transparency, although it disclaimed any obligation to update the information provided.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.