RBB (RBB) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often find ...

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Core Insights - RBB Bancorp reported a strong financial performance for the fourth quarter of 2025, with net income of $10.2 million, or $0.59 per diluted share, matching the prior quarter and more than doubling year-ago results [4][7] - The bank experienced a 13% increase in net interest income for the full year, reaching $112 million, supported by loan growth and a decline in funding costs [1] - Management highlighted a significant improvement in asset quality, with non-performing loans decreasing by 45% and non-performing assets falling by 34% [6][15] Financial Performance - Fourth-quarter pre-tax, pre-provision income was $2.3 million, up 21% from the fourth quarter of 2024, with net interest margin improving to 2.99% [3][7] - Deposits rose 8.6% year-over-year, with a notable increase in interest-bearing non-maturity deposits, which supported loan growth [5][11] - The bank's tangible book value increased by 7.8% to $26.42, and over $25 million was returned to shareholders through dividends and share repurchases [5][20] Loan Growth and Credit Quality - Loans grew by 8.6% in 2025, with originations totaling $713 million, a 32% increase from 2024 [6][8] - The bank's loan pipeline remains healthy, and management expects continued high single-digit growth in 2026 [8] - Credit quality improved significantly, with management noting that 90% of non-performing loans are concentrated in four relationships, three of which are making payments under agreements [16] Deposits and Funding Costs - The average rate on interest-bearing deposits declined by 55 basis points from the fourth quarter of 2024, but competition for deposits has increased [12][14] - Management expects some repricing opportunities as a significant portion of the bank's CDs mature within the next 12 months [14] - Total deposits declined in the fourth quarter due to a decrease in brokered deposits, partially offset by an increase in retail deposits [13] Expenses and Capital Management - Non-interest income declined by $486,000 sequentially, while non-interest expenses rose by $282,000 due to year-end accruals [17][18] - The effective tax rate fell by 330 basis points compared to the third quarter, with expectations for an effective tax rate between 27% and 28% for 2026 [19] - The company is evaluating its capital structure, including potential changes to its subordinated debt and increased share repurchases after addressing debt structure [21][22]

Financial Data and Key Metrics Changes - Fourth quarter net income totaled $10.2 million, or $0.59 per share, stable from the third quarter but more than double the earnings from the same quarter a year ago [3] - Return on Assets (ROA) and Net Interest Margin (NIM) were stable from the third quarter while increasing sharply from a year ago [3] - For the year, net interest income increased by 13% to $112 million due to loan growth and a 38 basis point decline in funding costs [8] Business Line Data and Key Metrics Changes - Loans grew at a solid 8.6% for the year, with fourth quarter originations at $145 million, 32% higher than in 2024 [4] - Non-performing loans decreased by 45% and non-performing assets decreased by 34% since the end of the previous year [6] - Fourth quarter pre-tax, pre-provision income was $2.3 million, 21% higher than a year ago [7] Market Data and Key Metrics Changes - Total deposits increased by 8.6% compared to the fourth quarter a year ago, with strong growth in interest-bearing non-maturity deposits [5] - Average demand deposits remained stable in 2025, comprising 16% of total deposits [5] - The average interest-bearing deposit rate declined by 55 basis points from the fourth quarter of 2024 [6] Company Strategy and Development Direction - The company aims to return to historic performance levels, focusing on resolving remaining non-performing assets [3] - There is an emphasis on maintaining pricing and structuring discipline in loan originations [4] - The company plans to be more active in buyback programs after addressing sub-debt [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that credit performance will continue to improve in future quarters [3] - The competitive landscape for deposits remains intense, impacting deposit costs [6] - Management expects to see incremental improvement in deposit costs in the first quarter of 2026 [9] Other Important Information - Tangible book value per share increased by 7.8% during 2025, ending the year at $26.42 [14] - The effective tax rate in 2026 is expected to be between 27% and 28% [10] Q&A Session Summary Question: What is the outlook for deposit beta going forward? - Management indicated that the deposit beta is expected to continue increasing due to a large portion of the funding base maturing over the next year [16] Question: Any updates on sub-debt refreshes in April? - Management is looking at opportunities to rightsize the sub-debt for the balance sheet and capital stack [17] Question: How should we think about the buyback this year? - Management expects to be more active in buyback programs after addressing sub-debt [18] Question: Can you discuss the margin outlook for 2026? - Management believes there is an opportunity for deposit costs to continue to come down, which could lead to margin expansion [26] Question: What is the competition like for commercial real estate loans? - Management noted that competition remains intense, but they are focused on maintaining strong relationships with clients [52]

Financial Data and Key Metrics Changes - Fourth quarter net income totaled $10.2 million, or $0.59 per share, stable from the third quarter but more than double the earnings from the same quarter a year ago [3][7] - Return on Assets (ROA) and Net Interest Margin (NIM) were stable from the third quarter while increasing sharply from a year ago [3] - For the year, net interest income increased by 13% to $112 million due to loan growth and a decline in funding costs [8] Business Line Data and Key Metrics Changes - Loans grew at a solid 8.6% for the year, with fourth quarter originations at $145 million, 32% higher than in 2024 [4][11] - Non-performing loans decreased by 45% and non-performing assets decreased by 34% since the end of the previous year [6][12] - Fourth quarter non-interest income declined by $486,000 from the third quarter, but all categories of non-interest income increased compared to the fourth quarter of 2024, except for other income [9] Market Data and Key Metrics Changes - Total deposits increased by 8.6% compared to the fourth quarter a year ago, with strong growth in interest-bearing non-maturity deposits [5] - Average demand deposits remained stable in 2025, comprising 16% of total deposits [5] - The average interest-bearing deposit rate declined by 55 basis points from the fourth quarter of 2024 [6] Company Strategy and Development Direction - The company aims to return to historic performance levels, focusing on resolving remaining non-performing assets [3] - There is an expectation of high single-digit growth in 2026, supported by a healthy loan pipeline [4] - The company is looking to rightsize its subordinated debt and may become more active in share buybacks after addressing this [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that credit performance will continue to improve in future quarters, having turned a corner on credit issues [3] - The competitive landscape for deposits remains intense, but the company is optimistic about maintaining deposit growth [5][16] - Management anticipates that future annual credit costs will be much lower now that credit has stabilized [12] Other Important Information - Tangible book value per share increased by 7.8% during 2025, ending the year at $26.42 [14] - The effective tax rate in 2026 is expected to be between 27% and 28% [10] Q&A Session Summary Question: What is the outlook for deposit beta going forward? - Management indicated that the deposit beta is expected to continue increasing due to a large portion of the funding base maturing over the next year [16] Question: Any updates on subordinated debt refreshes? - The company plans to rightsize its $120 million subordinated debt eligible for redemption in April, looking for more attractive market opportunities [17] Question: How should we think about the buyback this year? - Management suggested that after addressing subordinated debt, there will be opportunities to be more active in buybacks [18] Question: What is the outlook for net interest margin (NIM)? - Management believes there is potential for NIM expansion as deposit costs may decrease with upcoming maturities [26] Question: What is the competition like for commercial real estate loans? - The company is facing competition but remains strategic in its lending relationships, maintaining yields above competitors [52][55]

Financial Data and Key Metrics Changes - Fourth quarter net income totaled $10.2 million, or $0.59 per share, stable from the third quarter but more than double the earnings from the same quarter a year ago [3][7] - Return on Assets (ROA) and Net Interest Margin (NIM) were stable from the third quarter while increasing sharply from a year ago [3] - For the year, loans grew at a solid 8.6%, with loan originations for the year being 32% higher than in 2024 [4][12] - Non-performing loans decreased by 45% and non-performing assets decreased by 34% since the end of last year [6][13] Business Line Data and Key Metrics Changes - Fourth quarter loan originations were $145 million, with a healthy pipeline expected to support high single-digit growth in 2026 [4] - Net interest income increased by 13% to $112 million for the year, driven by loan growth and a decline in funding costs [9] - Non-interest income categories increased except for other income, with a decline in non-interest expenses due to year-end accruals [10][11] Market Data and Key Metrics Changes - Total deposits increased by 8.6% compared to the fourth quarter a year ago, with strong growth in interest-bearing non-maturity deposits [5] - Average demand deposits remained stable in 2025, comprising 16% of total deposits [5] - The average rate on interest-bearing deposits declined by 55 basis points from the fourth quarter of 2024 [6] Company Strategy and Development Direction - The company aims to return to its historic performance levels, focusing on resolving remaining non-performing assets [3] - There is a commitment to maintaining pricing and structuring discipline in loan originations [4] - The company plans to be more active in buyback programs after addressing sub-debt [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in having turned a corner on credit, expecting continued improvement in performance [3] - The competitive landscape for deposits remains intense, impacting deposit costs [6][16] - Management anticipates that credit costs will be much lower now that credit has stabilized [13] Other Important Information - Tangible book value per share increased by 7.8% during 2025, ending the year at $26.42 [14] - The effective tax rate in 2026 is expected to be between 27% and 28% [11] Q&A Session Summary Question: What is the outlook for deposit beta going forward? - Management indicated that the deposit beta is expected to continue increasing due to a large portion of the funding base maturing over the next year [16] Question: Any updates on sub-debt refreshes in April? - Management is looking at opportunities to rightsize the sub-debt for the balance sheet and capital stack [17] Question: How should we think about the buyback this year? - Management expects to be more active in buyback programs after addressing sub-debt [18] Question: Can you discuss the margin outlook for 2026? - Management believes there is an opportunity for deposit costs to continue to come down, which could lead to margin expansion [25][27] Question: What are the expectations for credit metrics in the next 12 months? - Management is optimistic about resolving non-performing loans and expects continued improvement in credit metrics [29][31] Question: What is the current competition like for commercial real estate loans? - Management noted that competition remains intense, but they are strategically focused on relationship-driven lending [54][56]

NASDAQ: RBB 2025 Fourth Quarter Earnings Results This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would" and "could" and the negative of these terms ...

Financial Performance - Net income for Q4 2025 was $10.2 million, or $0.59 diluted earnings per share, compared to $10.1 million, or $0.59 diluted earnings per share in Q3 2025 [4]. - For fiscal 2025, net income totaled $31.9 million, or $1.83 diluted earnings per share, a 19.8% increase compared to fiscal 2024 [6]. - Net income for the three months ended December 31, 2025, was $10,177 million, compared to $4,385 million for the same period in 2024, marking a substantial increase of 132.3% [50]. - Basic net income per share for the three months ended December 31, 2025, was $0.60, up from $0.25 in the same quarter of 2024, representing a growth of 140% [50]. Interest Income and Margin - Net interest income for Q4 2025 was $29.5 million, a slight increase from $29.3 million in Q3 2025, driven by a $430,000 decrease in interest expense [7]. - Total interest and dividend income for the three months ended December 31, 2025, was $57,193 million, an increase from $54,555 million for the same period in 2024, representing a growth of 4.0% [50]. - Net interest income before provision for credit losses for the twelve months ended December 31, 2025, was $112,282 million, compared to $99,364 million for the previous year, reflecting a year-over-year increase of 13.5% [50]. - The net interest margin for the three months ended December 31, 2025, was 2.99%, slightly up from 2.76% in the same quarter of 2024 [52]. - The net interest margin improved to 2.95% for the year ended December 31, 2025, compared to 2.70% for the previous year [59]. Asset Quality - Classified and criticized loans decreased by $31.8 million, or 25.2%, to $94.4 million at December 31, 2025, compared to the prior quarter [6]. - Nonperforming assets decreased by $852,000, or 1.6%, to $53.5 million at December 31, 2025, compared to the prior quarter [6]. - Nonperforming loans totaled $44.6 million at December 31, 2025, down from $45.5 million at September 30, 2025 [28]. - The allowance for loan losses improved to $43,888 from $44,892 in September 2025, indicating better asset quality [48]. - The allowance for loan losses stood at $43,888 thousand, which is 1.32% of total loans HFI [63]. Deposits and Loans - Total deposits were $3.4 billion as of December 31, 2025, a decrease of $16.1 million, or 1.9% annualized, compared to September 30, 2025 [25]. - Total loans held for investment grew by $11.7 million, or 1.4% annualized, in Q4 2025, and by $261.1 million, or 8.6%, for the full year [6]. - Total deposits reached $3,350,398 thousand as of December 31, 2025, a significant increase from $3,083,789 thousand as of December 31, 2024, reflecting a growth of 8.7% [68]. - The single-family residential mortgages segment accounted for 50.0% of total loans, with a total of $1,655,382 thousand as of December 31, 2025, compared to 48.9% and $1,494,022 thousand a year earlier [67]. Equity and Capital - Total shareholders' equity was $523.4 million at December 31, 2025, a $9.1 million increase compared to September 30, 2025 [37]. - Book value per share increased to $30.69 at December 31, 2025, up from $30.18 at September 30, 2025 [38]. - The tangible book value per share increased to $26.42 as of December 31, 2025, compared to $24.51 a year earlier, indicating a growth of 7.8% [70]. - The common equity to assets ratio improved to 12.44% as of December 31, 2025, compared to 12.72% a year earlier [70]. - The Tier 1 capital to risk-weighted assets ratio was 18.06% as of December 31, 2025, indicating strong capital adequacy [63]. Future Outlook - Management will hold a conference call on January 27, 2026, to discuss the Company's fourth quarter and fiscal year 2025 financial results [41]. - The Board of Directors declared a quarterly cash dividend of $0.16 per common share, payable on February 13, 2026 [39].

Core Insights - RBB reported revenue of $32.32 million for Q4 2025, a year-over-year increase of 12.6%, with an EPS of $0.59 compared to $0.25 a year ago, indicating strong growth in profitability [1] - The revenue fell short of the Zacks Consensus Estimate by 1.89%, while the EPS exceeded the consensus estimate by 20.41% [1] Financial Performance Metrics - Non-Performing Assets stood at $53.46 million, higher than the average estimate of $47.68 million from five analysts [4] - Total interest-earning assets averaged $3.92 billion, slightly below the five-analyst average estimate of $3.97 billion [4] - The Efficiency Ratio was reported at 58.7%, above the average estimate of 56.7% from five analysts [4] - Net interest margin was consistent at 3%, matching the average estimate from five analysts [4] - Net charge-offs to average loans were 0.2%, better than the average estimate of 0.3% [4] - Total risk-based capital ratio was 23.8%, exceeding the average estimate of 22.7% from three analysts [4] - Tier 1 leverage ratio was reported at 11.6%, slightly above the average estimate of 11.4% from three analysts [4] - Tier 1 risk-based capital ratio was 18.1%, higher than the average estimate of 17% from three analysts [4] - Total noninterest income was $2.81 million, below the average estimate of $3 million from five analysts [4] - Net interest income before provision for credit losses was $29.51 million, compared to the average estimate of $29.94 million from five analysts [4] - Gain on sale of loans was $0.46 million, exceeding the average estimate of $0.3 million from five analysts [4] - Loan servicing fees, net of amortization, were reported at $0.56 million, matching the average estimate from four analysts [4] Stock Performance - RBB shares returned +1.6% over the past month, outperforming the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - RBB reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, and showing a significant increase from $0.25 per share a year ago, resulting in an earnings surprise of +20.41% [1] - The company posted revenues of $32.32 million for the quarter ended December 2025, which was 1.89% below the Zacks Consensus Estimate, but an increase from $28.71 million in the same quarter last year [2] - RBB has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has gained approximately 3.8% since the beginning of the year, outperforming the S&P 500, which has gained 1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $33.02 million, and for the current fiscal year, it is $2.11 on revenues of $138.48 million [7] - The Zacks Industry Rank for Banks - West is in the top 36% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]