RBB

This article first appeared on GuruFocus. Net Income: $10.1 million or $0.59 per share, a 13% increase from the same quarter in 2025. Net Interest Income: $30.1 million for the second quarter, compared to $30.5 million in the first quarter. Net Interest Margin: 3.06% for the second quarter, down 9 basis points from 3.15% in the first quarter. Loan Originations: $150 million of new loans at an average yield of 6.3%. Total Deposits: Grew $51 million to $3.4 billion, with noninterest-bearing deposits increasing to 17.5% of total deposits. Noninterest Income: $3.0 million for the second quarter, compared to $4.3 million in the first quarter. Noninterest Expense: $19 million for the second quarter, a decrease from $19.3 million in the first quarter. Efficiency Ratio: 57.5% for the second quarter, compared to 55.4% in the first quarter. Nonperforming Loans: Declined $20.8 million or 47% from the prior quarter to $23.8 million. Allowance for Credit Losses: $43.7 million, with coverage of nonperforming loans improving to 184%. Book Value Per Share: Increased to $31.15, with tangible book value per share at $27.23. Capital Ratios: CET1 ratio of approximately 18% and TCE to tangible assets ratio of approximately 11%. Warning! GuruFocus has detected 7 Warning Signs with RBB. Is RBB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. RBB Bancorp (NASDAQ:RBB) reported a 13% increase in net income compared to the same quarter in 2025, demonstrating strong financial performance. Loan originations accelerated with $150 million of new loans at an average yield of 6.3%, indicating healthy lending pipelines. The company successfully expanded its franchise into Northern California, opening a loan production office in Burlingame. Deposits grew by $50.8 million, with an improved deposit mix and increased noninterest-bearing deposits. RBB Bancorp (NASDAQ:RBB) redeemed $40 million of subordinated debt, which is expected to reduce future interest expenses. Net income decreased by $1.2 million compared to the prior quarter, primarily due to lower gains from REO sales. Net interest margin decreased by 9 basis points from the previous quarter, affected by the repricing of subordinated debt. Noninterest income decreased by $1.3 million due to lower gains on sale of REO and absence of special items from the previous quarter. The efficiency ratio increased to 57.5% from 55.4% in the previous quarter, driven by lower noninterest income. The company faces a competitive deposit pricing environment, which could impact future funding costs. Q: Can you discuss the net interest margin dynamics and expectations for the third quarter, considering the recent debt repayment? A: Lynn Hopkins, CFO, explained that the net interest margin has potential for improvement due to loan growth opportunities and the retirement of a portion of subordinated debt. Deposit costs are expected to remain stable or slightly improve, and loan production is anticipated to contribute to net loan growth in the second half of the year. Q: How has the competitive landscape for core funding evolved recently? A: Lynn Hopkins noted that the market has seen an increase in deposit rates, with competitors' pricing reflecting this trend. RBB Bancorp has been successful in maintaining competitive rates between 3.75% and 4% and has grown noninterest-bearing deposits. Johnny Lee, CEO, added that their Flex savings product has helped retain customers at lower costs. Q: What are the expectations for the new loan production office and team in Northern California? A: Johnny Lee stated that the new team, with over 80 years of combined experience, is expected to contribute to commercial loan growth in the second half of the year, aiming for mid- to high single-digit growth. Lynn Hopkins added that while production has been strong, refinancing and payoffs have offset some growth, but they expect a positive contribution from the new team. Q: What is the company's approach to the share repurchase program and capital returns? A: Lynn Hopkins mentioned that the company believes investing in itself is a good use of capital, with a healthy appetite for share repurchases. The majority of the new repurchase program remains outstanding, and they are considering increasing the quarterly cash dividend in the future. Q: Can you provide an update on the CDs maturing in the next few quarters and their impact on costs? A: Lynn Hopkins reported that $1.5 billion in CDs will mature within the next 12 months, with an average rate of 3.60%. About 40% of these will mature in the third quarter. The company expects some CDs to reprice into the current environment, potentially impacting cost of funds, but also anticipates higher yields on earning assets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net income growth of 13% year-over-year was primarily driven by improved credit quality, loan and deposit growth, and strategic capital actions. The sequential decline in net income was attributed to lower gains from REO sales as the bank aggressively works to resolve non-performing assets. Management highlighted a strategic pivot toward Northern California with a new loan production office in Burlingame to capture the large Asian-American commercial market. Credit quality improved significantly with non-performing assets declining 11% to 1.02% of total assets, supported by a 47% reduction in non-performing loans. The deposit mix improved as non-interest-bearing deposits rose to 17.5% of total deposits, reducing reliance on expensive wholesale funding. Net interest margin faced temporary pressure from the repricing of $120 million in subordinated debt from a 4% fixed rate to a 6.98% floating rate. Management expects net interest margin to improve in the second half of 2026, aided by the $40 million sub-debt redemption and higher-yielding loan growth. Loan growth is projected to reach the mid-to-high single-digit range for the full year, supported by a healthy pipeline from the new Northern California team. Non-interest expense is expected to remain within the $18 million to $19 million range, trending toward the higher end due to investments in production and technology. The bank anticipates resolving its largest non-performing asset, a $19.4 million credit currently in REO, during the second half of 2026. Guidance assumes a 'higher for longer' interest rate environment, which management believes will have a neutral impact on funding but benefit earning asset yields. Redeemed $40 million of subordinated debt on July 1st to reduce future interest expense and optimize the capital structure. Authorized a new 1 million share repurchase program, representing 6% of shares outstanding, reflecting confidence in the bank's capital position. The $19.4 million transfer to REO represents a large, partially completed construction project requiring a specific buyer for resolution. Efficiency ratio increased to 57.5% due to lower non-interest income, though management views this as temporary during the credit resolution phase. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects margin expansion driven by the partial retirement of sub-debt and the repricing of loans at higher yields. The bank remains liability sensitive, but expects the earning asset side to improve as new production offsets stable deposit costs. The new team brings over 80 years of combined experience and a strong network, which is expected to drive commercial loan growth in the second half of the year. Management declined to give a specific portfolio size for the LPO but noted the pipeline is already very healthy. Management is targeting a resolution in the second half of 2026, acknowledging the complexity of the partially completed construction project. The current OREO valuation is supported by a recent 'as-is' appraisal, and the bank is actively seeking the right buyer. Competition for deposits remains intense, with market rates moving toward the 4% to 4.15% range for wholesale funding. The bank is successfully using a 'Flex savings' product to retain customers at lower costs than wholesale alternatives.

Interested in RBB Bancorp? Here are five stocks we like better. RBB Bancorp reported Q2 2026 net income of $10.1 million, up 13% year over year, while the sequential decline from Q1 was mainly due to lower REO sale gains as the bank continues resolving nonperforming assets. Credit quality improved significantly, with nonperforming loans falling 47% to $23.8 million, no provision for credit losses, and allowance coverage rising to 184% of nonperforming loans. Deposits and growth initiatives strengthened, as total deposits rose to $3.4 billion and RBB expanded into Northern California with a Burlingame loan office and a new Bay Area commercial banking team expected to support second-half loan growth. Regional Bank Buybacks: 5 Institutions Making Big Moves RBB Bancorp (NASDAQ:RBB) reported second-quarter 2026 net income of $10.1 million, or $0.59 per diluted share, as management highlighted improved credit quality, deposit growth and new lending initiatives in Northern California. The Los Angeles-based bank’s earnings increased 13% from the year-earlier quarter, when it earned $9.3 million, or $0.52 per diluted share. Compared with the first quarter of 2026, however, net income declined from $11.3 million, or $0.66 per diluted share. President and Chief Executive Officer Johnny Lee said the sequential decrease was “mostly” tied to lower gains from real estate owned, or REO, sales as the company continues to resolve nonperforming assets. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks 3 Penny Stocks Analysts Believe Are Headed Higher “We are pleased to report another solid quarter of earnings and continued progress across the key metrics we have been focused on,” Lee said on the call. Chief Financial Officer Lynn Hopkins said net interest income was $30.1 million in the second quarter, down from $30.5 million in the first quarter. The decline was driven primarily by lower Federal Home Loan Bank dividend income and higher subordinated debt service, partially offset by lower deposit costs. → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack Hopkins said the company received a special FHLB dividend of $430,000 in the first quarter, with no similar dividend in the second quarter. RBB’s $120 million in subordinated debt also repriced from a fixed 4% rate to a floating rate of 6.98% effective April 1, adding about $830,000 of incremental interest expense in the quarter. RBB’s net interest margin was 3.06% in the second quarter, down nine basis points from 3.15% in the first quarter. On a year-over-year basis, the margin improved 14 basis points, which Hopkins attributed to deposit repricing efforts and improved earning asset yields. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit During the question-and-answer session, Hopkins said the margin has “an opportunity to improve” because of loan growth and the July 1 redemption of $40 million of subordinated notes. She said management expects the margin to be around first-quarter levels and above the second-quarter level, depending on loan growth and deposit costs. Total deposits increased by $50.8 million during the quarter to $3.4 billion. Hopkins said retail deposits rose $94 million, while wholesale deposits declined $44 million. Non-interest-bearing deposits increased to $592 million, or 17.5% of total deposits, up from 15.8% at the end of the first quarter. Lee said the company’s deposit mix continued to improve, with “continued reductions in our reliance on wholesale funding.” Management also said the company’s strong core funding and capital levels helped position it to redeem $40 million of subordinated debt after quarter-end. Asked about deposit competition, Hopkins said the market remains competitive and that rates moved higher during the quarter, with wholesale funding closer to 4% to 4.15% late in the period. Chief Operations Officer Gary Fan said RBB’s Flex savings product, launched in the second quarter, helped retain customers at a lower cost. Hopkins also said some of the second-quarter increase in non-interest-bearing deposits was seasonal, noting that some balances were used shortly after quarter-end. She said average balances should migrate higher, but the quarter-end level may moderate. RBB recorded no provision for credit losses in the second quarter, compared with a $200,000 reversal in the first quarter and a $2.4 million provision in the second quarter of 2025. Net charge-offs totaled $83,000, which Hopkins said was essentially 0% of loans on an annualized basis. Nonperforming loans declined $20.8 million, or 47%, from the prior quarter to $23.8 million. Hopkins said the primary driver was the transfer of a $19.4 million credit to REO. She described that credit as the company’s largest nonperforming asset and said RBB continues to move it through the resolution process. Nonperforming assets declined 11% to 1.02% of total assets, according to Lee. Special mention and substandard loans fell 16% to $82 million from $97 million at March 31. Hopkins said the allowance for credit losses was essentially flat at $43.7 million. Because nonperforming loans declined, allowance coverage of nonperforming loans improved to 184% at June 30. The allowance represented 1.32% of loans held for investment. When asked about the timing for resolving the large REO asset, Hopkins said the bank would like to move “ASAP,” but added that the partially completed construction project will require the right buyer. She said management is looking for a resolution in the second half of 2026 while recognizing the situation remains complicated. RBB said second-quarter new loan originations rose 21% from the first quarter to $159 million, at an average yield of 6.3%. Loans held for investment were stable quarter-over-quarter at $3.3 billion as of June 30. The loan-to-deposit ratio ended the quarter at 98%. Lee highlighted the company’s recently announced loan production office in Burlingame, California, and the hiring of a commercial banking team in the San Francisco Bay Area led by John Curtis. Lee said Curtis has more than 37 years of financial services experience, including serving as president and CEO of Bank of the Orient. Lee said the San Francisco Bay Area is home to one of the largest Asian-American communities in the United States and called the market “a natural fit” for RBB. In response to an analyst question, he said the new team has a healthy pipeline and is expected to contribute to commercial loan growth in the second half of the year. Hopkins said management expects net loan growth in the second half of 2026 after flattish growth in the first half. She said production could be modestly higher, while refinancing and payoff activity is expected to be lower. RBB completed the partial redemption of $40 million of subordinated notes at 100% of par plus accrued interest on July 1, for a total payment of approximately $40.7 million. The company also announced in June that its board authorized the repurchase of up to 1 million shares of common stock, representing about 6% of shares outstanding. Hopkins said the capital actions reflect RBB’s strong capital position and work to resolve nonperforming assets. Book value per share rose to $31.15, and tangible book value per share increased to $27.23, about 1.5% higher than March 31. The company reported a common equity Tier 1 ratio of approximately 18% and a tangible common equity to tangible assets ratio of approximately 11%. Non-interest expense was $19 million in the second quarter, down slightly from $19.3 million in the first quarter. Hopkins reiterated that expenses are expected to remain in the $18 million to $19 million range, though she said the near-term run rate is likely near the higher end. Potential future relief could come from technology decisions and lower professional service fees as credit issues are resolved, she said. Lee concluded that the quarter showed “continued progress in improving RBB’s fundamental earnings power” and said the company is on track for a strong second half of 2026. RBB Bancorp is a bank holding company headquartered in Los Angeles, California, and the parent of Royal Business Bank. Established in 2008, the company focuses on providing a full range of commercial banking services tailored to small- and medium-sized businesses, professionals and real estate investors. Through its subsidiary, RBB Bancorp delivers deposit products, loan facilities and cash management solutions designed to support operations and growth strategies. The company's core offerings include commercial real estate lending, construction and land development loans, Small Business Administration (SBA) lending and trade finance. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "RBB Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. 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LOS ANGELES, July 20, 2026 (GLOBE NEWSWIRE) -- RBB Bancorp (NASDAQ:RBB) and its bank subsidiary, Royal Business Bank (the “Bank”), collectively referred to herein as the “Company,” announced financial results for the quarter ended June 30, 2026. Second Quarter 2026 Highlights Net income totaled $10.1 million, or $0.59 diluted earnings per share Return on average assets of 0.97%, compared to 1.09% for the prior quarter Net interest margin of 3.06%, down from 3.15% for the prior quarter Nonperforming assets of $43.6 million, a $5.3 million, or 10.8%, decrease compared to prior quarter end Book value and tangible book value per share(1) increased to $31.51 and $27.23 at June 30, 2026, up from $31.10 and $26.84 at March 31, 2026 Announced new common stock repurchase plan for up to 1 million shares through June 30, 2028 Announced partial redemption of subordinated notes of $40 million which was completed on July 1, 2026 The Company reported net income of $10.1 million, or $0.59 diluted earnings per share, for the quarter ended June 30, 2026, compared to net income of $11.3 million, or $0.66 diluted earnings per share, for the quarter ended March 31, 2026. “Our second quarter results reflected the continued strength of our core banking franchise as stable loan yields, strong loan originations and continued growth in retail deposits supported another quarter of solid profitability," said Johnny Lee, President and Chief Executive Officer of RBB Bancorp. "We continued to improve the quality of our funding base through strong retail deposit growth while reducing our cost of deposits. Credit quality continued to improve, with nonperforming assets declining 11% from the prior quarter, and we remain focused on disciplined loan growth, relationship banking and resolving problem assets to drive long-term shareholder value." Net Interest Income and Net Interest Margin Net interest income was $30.1 million for the second quarter of 2026, compared to $30.5 million for the first quarter of 2026. The $417,000 decrease was due to a $773,000 increase in interest expense, offset by a $356,000 increase in interest income. The increase in interest expense was due mainly to an $829,000 increase in interest on subordinated notes as a result of the notes repricing from 4.00% to 6.98% effective April 1, 2026 and one more day in the quarter. The increase in interest income was due to the combination of a $725,000 increase in loan interest income as average loans increased and one more day in the quarter, partially offset by lower FHLB dividend income as the first quarter of 2026 included a special dividend of $430,000. There was no special dividend from the FHLB in the second quarter of 2026. The net interest margin (“NIM”) decreased 9 basis points to 3.06% for the second quarter of 2026 from 3.15% for the first quarter of 2026. The NIM decrease included a 5 basis point decrease in the yield on average total interest-earning assets and a 4 basis point increase in the overall cost of funds. The yield on average total interest-earning assets decreased to 5.81% for the second quarter of 2026 from 5.86% for the first quarter of 2026, due mostly to the impact of a 4 basis point decrease from lower FHLB dividends and a 1 basis point decrease in the yield on average total loans. The average total cost of funds increased 4 basis points to 3.00% for the second quarter of 2026 from 2.96% for the first quarter of 2026, due mostly to an increase in the cost of subordinated notes due to their repricing on April 1, 2026, partially offset by a 5 basis point decrease in the cost of average total deposits to 2.81%.  Average noninterest-bearing deposits represented approximately 16% of average total deposits for both the second and first quarters of 2026. The period end weighted average interest rate for total deposits declined to 2.75% at June 30, 2026 from 2.79% at March 31, 2026. Provision for Credit Losses There was no provision for credit losses for the second quarter of 2026 compared to a $200,000 reversal for the first quarter of 2026. The second quarter 2026 provision for credit losses reflected a provision for loan losses of $77,000 and a negative provision for unfunded loan commitments of $77,000 due to a lower volume of unfunded loan commitments. The second quarter provision for loan losses was due mainly to the impact of net charge-offs, while portfolio credit quality trends, underlying economic forecast indicators, and changes in loan portfolio composition remained relatively stable. Net charge-offs in the second quarter of 2026 represented 0.01% of average loans on an annualized basis, compared to 0.00% for the first quarter of 2026. Noninterest Income Noninterest income for the second quarter of 2026 was $3.0 million, a decrease of $1.3 million from $4.3 million for the first quarter of 2026. The decrease in noninterest income was mainly due to lower gains from OREO of $1.1 million, and lower other income of $870,000, offset partially by higher gain on sale of loans of $640,000. The net loss on OREO was $221,000 in the second quarter compared to the net gain on OREO of $890,000 in the first quarter. The decrease in other income was due to the first quarter including a $484,000 recovery of a fully charged-off acquired loan and $360,000 of interest income on the tax refunds related to purchased federal tax credits; there were no similar items in the second quarter of 2026. The sale of $42.1 million of mortgage loans and $8.1 million of Small Business Administration (“SBA”) loans resulted in gains of $964,000 for the second quarter of 2026 compared to the sale of mortgage loans of $4.9 million and SBA loans of $4.0 million for gains of $324,000 for the first quarter of 2026. Noninterest Expense Noninterest expense for the second quarter of 2026 was $19.0 million, a decrease of $236,000 from $19.3 million for the first quarter of 2026. The decrease was mainly due to lower salaries and employee benefits of $216,000 due mostly to lower payroll taxes. The efficiency ratio was 57.46% for the second quarter of 2026, compared to 55.41% for the first quarter of 2026. The increase in the efficiency ratio is attributed mostly to lower net revenues. Income Taxes The effective tax rate was 28.0% for both the second and first quarters of 2026. The effective tax rate for 2026 is estimated to be 28.0% compared to 24.2% for 2025. The estimated effective tax rate for 2026 is expected to be higher than the effective tax rate in 2025 due to a higher multi-state blended tax rate and lower benefits from purchased Federal tax credits. Balance Sheet At June 30, 2026, total assets were $4.3 billion, an $80.7 million, or 8% annualized, increase compared to total assets of $4.2 billion at March 31, 2026, and a $185.0 million, or 4.5%, increase compared to total assets of $4.1 billion at June 30, 2025. Loan and Securities Portfolio Loans held for investment ("HFI") totaled $3.3 billion as of June 30, 2026, a decrease of $15.8 million, or 1.9% annualized, compared to March 31, 2026 and an increase of $74.8 million, or 2.3%, compared to June 30, 2025. The decrease in loans in the second quarter of 2026 included payoffs/paydowns of $149.9 million, loans sold of $50.2 million, and $19.4 million transferred to OREO, offset by $158.9 million of originations with an average yield of 6.31%, $38.9 million in advances, and $6.0 million in purchases. The loan to deposit ratio was 97.6% at June 30, 2026, compared to 99.6% at March 31, 2026 and 101.5% at June 30, 2025. As of June 30, 2026, available for sale securities ("AFS") totaled $407.2 million, a decrease of $8.6 million from March 31, 2026, primarily related to maturities and paydowns of $63.3 million, offset by purchases of $55.0 million during the second quarter of 2026. As of June 30, 2026, net unrealized pre-tax losses totaled $20.9 million, a $0.5 million increase due to changes in market interest rates when compared to net unrealized pre-tax losses of $20.4 million as of March 31, 2026. Deposits Total deposits were $3.4 billion as of June 30, 2026, an increase of $50.8 million, or 6.1% annualized, compared to March 31, 2026 and an increase of $202.4 million, or 6.3%, compared to June 30, 2025. The increase in total deposits during the second quarter of 2026 was due to a $94.4 million increase in retail deposits, offset by a $43.6 million decrease in wholesale deposits. The increase in retail deposits included a $64.7 million increase in demand deposits and a $15.5 million increase in non-maturity interest-bearing accounts. Noninterest-bearing deposits totaled $591.6 million, or 17.5% of total deposits, at June 30, 2026, an increase of $64.7 million compared to March 31, 2026, and an increase of $47.7 million compared to June 30, 2025. Credit Quality Nonperforming assets totaled $43.6 million, or 1.02% of total assets, at June 30, 2026, down from $48.8 million, or 1.16% of total assets, at March 31, 2026, and down from $61.0 million, or 1.49% of total assets, at June 30, 2025. The decrease in nonperforming assets during the second quarter of 2026 included a decrease of $20.8 million in nonperforming loans partially offset by an increase of $15.6 million in OREO (included in “accrued interest and other assets”) to $19.8 million at June 30, 2026. OREO totaled $4.3 million at March 31, 2026, and $4.2 million at June 30, 2025. The increase in OREO during the second quarter of 2026 was primarily due to the transfer of one nonperforming construction loan to OREO, offset by the sale of the existing OREO properties for a net loss. Nonperforming loans (“NPLs”) totaled $23.8 million, or 0.72% of total loans, at June 30, 2026, down $20.8 million from $44.6 million, or 1.34% of total loans, at March 31, 2026 and down $33.0 million from $56.8 million, or 1.76% of total loans, at June 30, 2025. The $20.8 million decrease in NPLs during the second quarter of 2026 was due to $19.4 million transferred to OREO, $1.3 million in payoffs/paydowns and $1.3 million upgraded to performing, partially offset by additions of $1.2 million. Substandard loans totaled $61.5 million, or 1.86% of total loans, at June 30, 2026, down from $72.5 million, or 2.18% of total loans, at March 31, 2026 and $91.0 million, or 2.81% of total loans, at June 30, 2025. The $11.0 million decrease in substandard loans during the second quarter of 2026 was primarily due to $19.4 million transferred to OREO and $4.2 million in payoffs/paydowns, partially offset by additions of $12.6 million. Of the total substandard loans outstanding at June 30, 2026, there were $37.8 million, or 61% of such loans, on accrual status. Special mention loans totaled $20.3 million, or 0.61% of total loans, at June 30, 2026, down from $24.8 million, or 0.75% of total loans, at March 31, 2026, and down from $91.3 million, or 2.82% of total loans, at June 30, 2025. The $4.5 million decrease for the second quarter of 2026 was primarily due to payoffs/paydowns of $3.8 million, downgrades to substandard-rated loans of $1.8 million, and upgrades of $0.4 million to pass-rated loans, partially offset by additions of $1.5 million. As of June 30, 2026, all special mention loans were paying current. 30-89 day delinquent loans, excluding nonperforming loans, totaled $9.0 million, or 0.27% of total loans, at June 30, 2026, up from $7.9 million, or 0.24% of total loans, at March 31, 2026, and down from $18.0 million, or 0.56% of total loans, at June 30, 2025. The $1.1 million increase for the second quarter of 2026 was mainly due to $6.5 million in new delinquent loans, offset by $4.8 million in loans returning to current status and $0.6 million in loans which migrated to nonperforming. As of June 30, 2026, the allowance for credit losses totaled $44.1 million and was comprised of an allowance for loan losses of $43.7 million and a reserve for unfunded loan commitments of $407,000 (included in “accrued interest and other liabilities”). This compares to the allowance for credit losses of $44.2 million, comprised of an allowance for loan losses of $43.7 million and a reserve for unfunded loan commitments of $484,000 at March 31, 2026. The $83,000 decrease in the allowance for credit losses for the second quarter of 2026 was due to net charge-offs of $83,000. The allowance for loan losses as a percentage of loans HFI totaled 1.32% at June 30, 2026, compared to 1.31% at March 31, 2026. The allowance for loan losses as a percentage of nonperforming loans HFI was 183.76% at June 30, 2026, up from 97.98% at March 31, 2026. Shareholders' Equity At June 30, 2026, total shareholders' equity was $535.2 million, a $4.1 million increase compared to March 31, 2026, and a $17.5 million increase compared to June 30, 2025. The increase in shareholders' equity for the second quarter of 2026 was due mostly to net income of $10.1 million and stock-based compensation activity of $1.6 million, offset by common stock repurchases of $4.5 million and common stock cash dividends paid of $2.8 million. On June 15, 2026, the Company announced a new common stock repurchase plan providing for the repurchase of up to 1 million shares of the Company's outstanding common stock through June 30, 2028. Dividend Announcement The Board of Directors has declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on August 11, 2026 to shareholders of record on July 31, 2026. Subordinated Notes Redemption On July 1, 2026, the Company redeemed $40.0 million in aggregate principal amount of its outstanding 4.00% Fixed-to-Floating Rate Subordinated Notes due 2031, originally issued on March 26, 2021 (the “Notes”). On April 1, 2026, the fixed interest rate of 4.00% on the Notes reset to a floating rate equal to three-month term SOFR plus a spread of 329 basis points, which equaled 6.98%, on that date. The Notes were redeemed at a cash redemption price equal to 100% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon, but excluding the redemption date of July 1, 2026, or approximately $40.7 million in aggregate. Upon completion of this $40.0 million redemption, $80.0 million aggregate principal amount of the Notes remain outstanding and the interest rate reset on July 1, 2026 to 7.02%. Contact:Lynn Hopkins, Chief Financial Officer(213) [email protected] Corporate Overview RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of June 30, 2026, the Company had total assets of $4.3 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities through 24 branches located in six states including California, Nevada, New York, Illinois, New Jersey and Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, and one branch in Orange County, California; one branch in Las Vegas, Nevada; three branches and one loan operation center in Brooklyn, three branches in Queens, and one branch in Manhattan in New York; one branch in Edison, New Jersey; two branches in Chicago, Illinois; and, one branch in Honolulu, Hawaii. The Company's administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com. Conference Call Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, July 21, 2026, to discuss the Company’s second quarter 2026 financial results. To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 631029, conference ID RBBQ226. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 54229, approximately one hour after the conclusion of the call and will remain available through August 4, 2026. The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call. Disclosure This press release contains certain non-GAAP financial disclosures, which the Company uses to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this press release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures. Safe Harbor Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; federal government shutdowns and uncertainty regarding the federal government’s debt limit; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the war between Russia and Ukraine, conflict in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (FASB) or other accounting standards setters; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, Federal Reserve Bank, California Department of Financial Protection and Innovation, and Consumer Financial Protection Bureau; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2025, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ. Non-GAAP Reconciliations Tangible Book Value Reconciliations Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of as of the dates indicated. Return on Average Tangible Common Equity Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure: Pre-Tax Pre-Provision Income Management believes that pre-tax pre-provision (“PTPP”) income is a useful measure for investors to evaluate core operating performance, excluding the volatility of credit provision expenses/(reversals). PTPP income is calculated by subtracting noninterest expense from the sum of net interest income and noninterest income, as shown in the following table.

RBB (RBB) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.32%. A quarter ago, it was expected that this bank holding company would post earnings of $0.45 per share when it actually produced earnings of $0.66, delivering a surprise of +46.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. RBB, which belongs to the Zacks Banks - West industry, posted revenues of $33.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $35.81 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. RBB shares have added about 31.1% since the beginning of the year versus the S&P 500's gain of 8.9%. While RBB has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for RBB was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $34.2 million in revenues for the coming quarter and $2.36 on $136.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Cathay General (CATY), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 22. This holding company for Cathay Bank is expected to post quarterly earnings of $1.33 per share in its upcoming report, which represents a year-over-year change of +20.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Cathay General's revenues are expected to be $218.18 million, up 11% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBB Bancorp (RBB) : Free Stock Analysis Report Cathay General Bancorp (CATY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, RBB (RBB) reported revenue of $33.1 million, down 7.6% over the same period last year. EPS came in at $0.59, compared to $0.52 in the year-ago quarter. The reported revenue represents a surprise of +0.15% over the Zacks Consensus Estimate of $33.06 million. With the consensus EPS estimate being $0.53, the EPS surprise was +11.32%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how RBB performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency Ratio: 57.5% versus 56.2% estimated by five analysts on average. Net charge-offs to average loans: 0% compared to the 0.2% average estimate based on five analysts. Non Performing Assets: $43.58 million versus the five-analyst average estimate of $42.76 million. Average Balance - Total interest earning assets: $3.95 billion versus $3.97 billion estimated by five analysts on average. Net interest margin: 3.1% versus the five-analyst average estimate of 3.1%. Non Performing Loans: $23.76 million versus $37.87 million estimated by four analysts on average. Tier 1 risk-based capital ratio: 18.6% versus 18.4% estimated by three analysts on average. Total risk-based capital ratio: 23.4% versus the three-analyst average estimate of 23.7%. Tier 1 leverage ratio: 11.9% versus the three-analyst average estimate of 11.9%. Gain on sale of loans: $0.96 million versus the five-analyst average estimate of $0.34 million. Total noninterest income: $3.02 million versus the five-analyst average estimate of $2.71 million. Loan servicing fees, net of amortization: $0.53 million versus the four-analyst average estimate of $0.51 million. View all Key Company Metrics for RBB here>>> Shares of RBB have returned +6.2% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBB Bancorp (RBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The upcoming report from RBB (RBB) is expected to reveal quarterly earnings of $0.53 per share, indicating an increase of 1.9% compared to the year-ago period. Analysts forecast revenues of $33.06 million, representing a decline of 7.7% year over year. Over the last 30 days, there has been an upward revision of 0.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. That said, let's delve into the average estimates of some RBB metrics that Wall Street analysts commonly model and monitor. The combined assessment of analysts suggests that 'Efficiency Ratio' will likely reach 56.2%. The estimate is in contrast to the year-ago figure of 57.2%. Analysts forecast 'Non Performing Assets' to reach $42.76 million. Compared to the present estimate, the company reported $60.99 million in the same quarter last year. Analysts predict that the 'Average Balance - Total interest earning assets' will reach $3.97 billion. Compared to the current estimate, the company reported $3.75 billion in the same quarter of the previous year. It is projected by analysts that the 'Non Performing Loans' will reach $37.87 million. The estimate compares to the year-ago value of $56.82 million. Based on the collective assessment of analysts, 'Tier 1 risk-based capital ratio' should arrive at 18.4%. Compared to the present estimate, the company reported 18.2% in the same quarter last year. Analysts expect 'Total risk-based capital ratio' to come in at 23.7%. The estimate compares to the year-ago value of 24.0%. According to the collective judgment of analysts, 'Tier 1 leverage ratio' should come in at 11.9%. The estimate compares to the year-ago value of 12.0%. The consensus estimate for 'Total noninterest income' stands at $2.71 million. The estimate compares to the year-ago value of $8.48 million. The average prediction of analysts places 'Net interest income before provision for credit losses' at $30.39 million. The estimate is in contrast to the year-ago figure of $27.33 million. View all Key Company Metrics for RBB here>>> Over the past month, RBB shares have recorded returns of +5.4% versus the Zacks S&P 500 composite's +1.6% change. Based on its Zacks Rank #1 (Strong Buy), RBB will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBB Bancorp (RBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RBB (RBB) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on July 20, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +1.9%. Revenues are expected to be $33.06 million, down 7.7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.35% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For RBB, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.49%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that RBB will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that RBB would post earnings of $0.45 per share when it actually produced earnings of $0.66, delivering a surprise of +46.67%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. RBB doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBB Bancorp (RBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LOS ANGELES, July 01, 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 second quarter ended June 30, 2026 after the markets close on Monday, July 20, 2026. Management will hold a conference call at 11:00 a.m. Pacific Time/2:00 p.m. Eastern Time on Tuesday, July 21, 2026, to discuss the Company's financial results. To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, passcode 631029, Conference ID RBBQ226. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, passcode 54229, approximately one hour after the conclusion of the call and will remain available through August 4, 2026. Additionally, interested parties can listen to a live webcast of the call in the "Investor Relations" section of the Company's website at www.royalbusinessbankusa.com. This webcast will be recorded and available for replay on the Company's website approximately two hours after the conclusion of the conference call. Corporate Overview RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of March 31, 2026, the Company had total assets of $4.2 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominantly to the Asian-centric communities through 24 branches located in six states including California, Nevada, New York, Illinois, New Jersey and Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, and one branch in Orange County, California; one branch in Las Vegas, Nevada; three branches and one loan operation center in Brooklyn, three branches in Queens, and one branch in Manhattan in New York; one branch in Edison, New Jersey; two branches in Chicago, Illinois; and, one branch in Honolulu, Hawaii. The Company's administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com. Contacts Lynn Hopkins, EVP and Chief Financial Officer, (657) 255-3282