LOS ANGELES, Jan. 07, 2026 (GLOBE NEWSWIRE) -- RBB Bancorp (NASDAQ: RBB) and its subsidiaries, Royal Business Bank (the "Bank") and RBB Asset Management Company ("RAM"), collectively referred to herein as the "Company", today announced that it will release financial results for its fourth quarter and year ended December 31, 2025 after the markets close on Monday, January 26, 2026. Management will hold a conference call at 11:00 a.m. Pacific Time/2:00 p.m. Eastern Time on Tuesday, January 27, 2026, to discus ...

Investors might want to bet on RBB (RBB) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of 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.Since a changing earnin ...

During their recent episode, Taylor, Carlisle, and Tim Melvin discussed Best Small Community Bank Investments Right Now. Here’s an excerpt from the episode:Something about Americans, we love that FDIC insurance, especially small depositors that really don’t maybe not understand the banking system and how it all works. They like the feeling that the government’s going to back them up if things go wrong, and punish the bad guys. I think if you meet them digitally, they’ll stay with you. However, if you cannot ...

Group 1: Community Banks - Community banks remain a strong investment opportunity due to their local focus and lower exposure to large commercial real estate loans compared to big banks [4][17] - Key metrics for evaluating community banks include capital levels, non-performing assets (NPAs), and book value, with a specific focus on maintaining NPAs below 2% [10][12] - The current environment shows that community banks have low commercial real estate loan losses, indicating their resilience during economic downturns [18][20] Group 2: Regulatory Environment and M&A - The regulatory landscape for banks has shifted, with the current administration being more favorable towards bank mergers and acquisitions, leading to an acceleration in consolidation [26][28] - The previous administration's regulatory stance created a hostile environment for bank M&A, which is now changing, allowing for easier consolidation in the community banking sector [26][28] Group 3: Investment Opportunities - Specific community banks are highlighted as attractive investments, such as NSTS Bancorp, which has a high equity-to-asset ratio and trades at 70% of tangible book value [38][39] - RBB Bancorp is noted for its strong ties to the Korean-American community and is considered a potential acquisition target due to its low trading value and solid fundamentals [43][46] Group 4: Global Value Opportunities - Investment opportunities are also identified in international markets, particularly in Japan and Hong Kong, where companies are trading below book value despite strong fundamentals [70][78] - The focus on intangible assets is increasing, with U.S. corporates deploying significant capital towards R&D and other intangible-heavy investments, indicating a shift in capital allocation strategies [53][55]

Financial Performance - Net income for Q3 2025 was $10.1 million, or $0.59 diluted earnings per share, an increase from $9.3 million in Q2 2025 and $7.0 million in Q3 2024[183]. - The company reported a decrease in the effective tax rate contributing to higher net income in Q3 2025 compared to the previous quarter[183]. - Net interest income for the three months ended September 30, 2025, was $29.3 million, an increase from $27.3 million in the previous quarter[191]. - The efficiency ratio improved to 57.36% for the third quarter of 2025, compared to 57.22% in the previous quarter[191]. - The return on average assets was 0.97% for the third quarter of 2025, compared to 0.93% in the previous quarter[191]. - Net interest income increased by $1.9 million to $29.3 million for Q3 2025 compared to Q2 2025, driven by a $3.2 million increase in interest income[204]. - Noninterest income for Q3 2025 decreased to $3.3 million, down $5.2 million from Q2 2025, primarily due to the absence of ERC funds received in the previous quarter[220]. - Noninterest income for the nine months ended September 30, 2025, increased by $1.5 million to $14.1 million compared to $12.6 million in the same period of 2024[222]. Asset and Liability Management - Total assets increased by $216.0 million to $4.2 billion as of September 30, 2025, primarily due to a $249.3 million increase in gross loans held for investment, reaching $3.3 billion[185]. - Total deposits rose by $282.7 million to $3.4 billion, driven by a $295.2 million increase in interest-bearing deposits[185]. - Total liabilities increased by $209.5 million to $3.7 billion at September 30, 2025, primarily due to a $282.7 million increase in deposits[289]. - Total shareholders' equity was $514.3 million, with a book value per share of $30.18, compared to $517.7 million and $29.25 per share at June 30, 2025, primarily due to common stock repurchases of $12.5 million[189]. - Cash and cash equivalents decreased by $22.8 million, or 8.9%, to $234.9 million as of September 30, 2025[236]. Loan Portfolio and Credit Quality - The loan portfolio increased by $249.3 million, or 10.9% annualized, reaching $3.3 billion as of September 30, 2025, primarily driven by increases in SFR mortgage loans ($157.0 million) and CRE loans ($85.2 million)[249]. - Nonperforming assets decreased by $6.7 million to $54.3 million, representing 1.29% of total assets as of September 30, 2025, down from 1.49% at June 30, 2025[187]. - The allowance for credit losses totaled $45.4 million, a decrease of $6.2 million from $51.6 million at June 30, 2025, with the allowance as a percentage of loans HFI decreasing to 1.36%[188]. - The provision for credit losses for Q3 2025 was $625,000, significantly lower than $2.4 million in Q2 2025, reflecting net loan growth and improved credit quality metrics[216]. - Net charge-offs for Q3 2025 totaled $6.9 million, representing 0.84% of average loans, compared to 0.42% in Q2 2025[216]. Interest Income and Expense - The net interest margin (NIM) was 2.98% for Q3 2025, an increase of 6 basis points from 2.92% in Q2 2025, attributed to a 6 basis point increase in yield on average interest-earning assets[205]. - The total cost of deposits was $3,251,564 thousand with a cost of 3.03% for the three months ended September 30, 2025, slightly down from 3.05% in the previous quarter[197]. - Interest expense on deposits decreased by $10.2 million to $72.2 million for the nine months ended September 30, 2025, primarily due to lower average rates paid on interest-bearing deposits[212]. - The average cost of funds decreased to 3.12% for Q3 2025 from 3.14% in Q2 2025, reflecting a decrease in the average cost of interest-bearing deposits[206]. Taxation - The effective tax rate for Q3 2025 was 23.5%, lower than the statutory rate due to the realization of purchased Federal tax credits[232]. - The annual effective tax rate for fiscal 2025 is estimated to be in the range of 26% to 27%[232]. Noninterest Expense - Total noninterest expense for Q3 2025 was $18.7 million, a decrease from $20.5 million in Q2 2025, with salaries and employee benefits accounting for $10.6 million[228]. - For the nine months ended September 30, 2025, noninterest expense was $57.7 million, up $6.2 million from $51.5 million in the same period of 2024, with salaries and employee benefits increasing by $2.9 million[231]. - The increase in salaries and employee benefits expense for the nine months ended September 30, 2025, was $2.9 million, attributed to staffing and incentives[231]. Shareholder Information - Book value per share increased to $30.18 from $28.66 at December 31, 2024, while tangible book value per share rose to $25.89 from $24.51[306]. - Common shares outstanding as of September 30, 2025, are 17,043,897, a decrease from 17,720,416 as of December 31, 2024[322].

Core Viewpoint - RBB is seen as an attractive investment opportunity due to a significant improvement in its earnings outlook, with analysts raising their earnings estimates, which is expected to positively impact the stock price [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding RBB's earnings prospects is leading to higher estimates, which historically correlates with stock price movements [2]. - For the current quarter, RBB is expected to earn $0.49 per share, reflecting a 96.0% increase from the previous year [6]. - The Zacks Consensus Estimate for RBB has risen by 11.36% over the last 30 days, with five estimates moving higher and no negative revisions [6]. - For the full year, the earnings estimate is $1.73 per share, indicating a 17.7% increase from the prior year [7]. - The consensus estimate for the current year has increased by 15.29% due to positive revisions [8]. Zacks Rank and Performance - RBB currently holds a Zacks Rank 1 (Strong Buy), which is based on favorable estimate revisions and has a proven track record of outperforming the market [9]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [9]. Recent Stock Performance - RBB shares have increased by 6.1% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10].

Financial Data and Key Metrics Changes - Net income for the third quarter totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, rising by $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [6][8] - Net interest margin expanded by six basis points to 2.98%, marking a 30 basis point increase over the last four quarters [3][7] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, primarily from the in-house mortgage origination business [4] - Third quarter loan originations totaled $188 million at a blended yield of 6.70%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][9] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178 million from the end of the second quarter to $3.4 billion, with growth across all deposit categories [11] - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, indicating appropriate risk coverage [11] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [20][21] - There is an ongoing effort to shift the loan portfolio mix towards commercial and industrial (C&I) loans while maintaining strong growth in residential mortgages [34][36] - The company is considering opportunities for share buybacks and refinancing sub-debt, while also investing in business growth and technology [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, viewing these as positive signs for the future [3] - The competitive landscape for liquidity remains challenging, impacting the ability to reduce funding costs significantly [7][30] - The company anticipates continued loan growth, although Q4 may see some seasonal moderation [34] Other Important Information - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] - The company repurchased 660,000 shares, or 4% of shares outstanding, during the third quarter [11] Q&A Session Summary Question: Asset quality improvement metrics - Management acknowledged progress in asset quality but indicated that more work is needed, particularly in resolving non-accrual loans [18][19] Question: Capital and share repurchase authorization - Approximately $4 million remains in the current share repurchase program, with management open to future buybacks depending on stock price and market conditions [22][23] Question: Deposit beta and interest rates - Management noted that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on upcoming maturing time deposits [28][30] Question: Loan growth and portfolio mix - The pipeline remains healthy, with a focus on residential mortgages and a gradual shift towards C&I loans, although government shutdowns may impact SBA loan funding [35][36] Question: Interest recovery and FHLB advances - No significant interest recovery was noted in Q3, and FHLB advances were replaced with brokered deposits at higher rates [42][43]

Financial Data and Key Metrics Changes - Net income for the third quarter totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, rising by $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [6][8] - Net interest margin expanded by six basis points to 2.98%, marking a 30 basis point increase over the last four quarters [3][7] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, primarily from the in-house mortgage origination business [4] - Third quarter loan originations totaled $188 million at a blended yield of 6.70%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][9] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178 million from the end of the second quarter to $3.4 billion, with growth across all deposit categories [11] - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, indicating appropriate risk coverage [11] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [20][21] - There is an ongoing effort to deepen relationships in existing markets and explore opportunities for sub-debt refinancing next year [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding core earnings growth and lower credit costs, viewing these as positive signs for the future [3] - The company remains vigilant in addressing credit issues and is focused on maintaining loan growth while managing operating costs [20][21] Other Important Information - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] - The company repurchased 660,000 shares, or 4% of shares outstanding, during the third quarter [11] Q&A Session Summary Question: Asset quality improvement and future expectations - Management acknowledged progress in asset quality but indicated that more work is needed, with a focus on resolving significant non-accrual loans [18][20] Question: Capital and share repurchase authorization - The company has about $4 million left in the current share repurchase program and is considering future buyback opportunities [22][23] Question: Deposit beta and interest rates - Management noted that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on upcoming rate cuts [28][30] Question: Loan growth and portfolio mix - The pipeline remains healthy, with a focus on residential mortgage and commercial loans, although seasonality may moderate growth in Q4 [34][35] Question: Interest recovery and FHLB advances - There was no significant interest recovery in Q3, and FHLB advances were replaced with brokered deposits at a higher rate [42][43] Question: Margin expansion and future rate cuts - Management believes they can continue to expand margins despite potential rate cuts, driven by loan growth and origination yields [48][50]

Financial Data and Key Metrics Changes - Third quarter net income totaled $10,100,000 or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest margin increased by six basis points to 2.98% compared to the prior quarter, and has increased by 30 basis points over the last four quarters [4][6] - Net interest income rose for the fifth consecutive quarter, up $1,900,000 to $29,300,000, driven by higher interest income [6][11] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68,000,000 or 8% on an annualized basis, with significant growth from the in-house mortgage origination business [4][6] - Third quarter loan originations totaled $188,000,000 at a blended yield of 6.7%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][8] - Nonperforming loans decreased by $11,300,000 or 20% to $44,500,000, indicating improved asset quality [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178,000,000 to $3,400,000,000, with growth across all deposit categories [11] - The average loan portfolio yield expanded by nine basis points to 6.12% due to strong origination yields and repricing of loans [8] Company Strategy and Development Direction - The company is focused on addressing nonperforming loans while minimizing the impact on earnings and capital [4][10] - There is an ongoing effort to manage operating costs to be below 2% of average assets while maintaining loan growth [7][11] - The company is considering opportunities for share buybacks and refinancing of subordinated debt in the future [21][53] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, viewing these as positive signs for the future [3][6] - The company remains vigilant in addressing remaining credit issues and is focused on improving asset quality [16][18] - Management indicated that competition for liquidity remains stiff, impacting the ability to reduce funding costs significantly [6][28] Other Important Information - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, which management believes appropriately addresses the risk in the loan portfolio [10] - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] Q&A Session Summary Question: What inning do you think you're in regarding credit resolution? - Management acknowledged that while progress has been made, there is still work to do and they are focused on resolving remaining credit issues [16][18] Question: How much is left in the current share repurchase authorization? - Approximately $4,000,000 remains in the current program, and management is considering future buyback opportunities [21][22] Question: What is the expected deposit beta with potential rate cuts? - Management indicated that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on maturing time deposits [25][28] Question: Was there any interest recovery during the third quarter? - Management confirmed that there were no significant anomalies in net interest income related to interest recovery during the quarter [38] Question: What rates were the FHLB advances maturing at? - The FHLB advances matured at a rate of approximately 3.40%, and were replaced with brokered deposits at rates closer to 4% [40][41]

Financial Data and Key Metrics Changes - Third quarter net income totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, up $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [5][6] - Net interest margin expanded by 6 basis points to 2.98%, a 30 basis point increase over the last four quarters [3][6] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, with third quarter loan originations totaling $188 million at a blended yield of 6.70% [4][5] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] - Total deposits increased by $178 million to $3.4 billion, with growth across all deposit categories [11] Market Data and Key Metrics Changes - The spot rate on deposits was 2.97%, which was six basis points below the third quarter's average of 3.03% [6] - The loan portfolio yield expanded by 9 basis points to 6.12%, primarily due to strong origination yields [9] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [18][19] - There is an ongoing effort to deepen relationships in existing markets and explore opportunities for sub-debt refinancing next year [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, indicating a positive outlook for the future [3][5] - The company remains vigilant in managing credit quality and is focused on maintaining strong loan growth despite competitive pressures [18][19] Other Important Information - The company repurchased 660,000 shares or 4% of shares outstanding in the third quarter, with a tangible book value per share increasing to $25.89 [11][12] - Non-interest expenses decreased by $1.8 million to $18.7 million, primarily due to the absence of ERC-related expenses from the previous quarter [8] Q&A Session Summary Question: What inning do you think you are in regarding credit resolution? - Management acknowledged that while progress has been made, there is still work to do, and they are focused on resolving remaining credit issues [16][17] Question: How much is left in the current share repurchase authorization? - Approximately $4 million remains in the current program, and management is considering future buyback opportunities [20] Question: What is the expected deposit beta with potential rate cuts? - Management indicated that deposit beta may have slowed due to fierce competition for liquidity, but they expect to capitalize on upcoming opportunities [26][27] Question: What is the outlook for loan growth and portfolio mix? - The pipeline remains healthy, with a focus on residential mortgages and a gradual shift towards C&I loans, although seasonality may moderate growth in Q4 [36][37] Question: Was there any interest recovery during the third quarter? - There was no significant interest recovery or anomalies in net interest income during the third quarter [42] Question: What rates were the FHLB advances maturing at? - The FHLB advances matured at a rate of 3.40%, and were replaced with brokered deposits at higher rates [44]