RBB

This article first appeared on GuruFocus. - Net Income: $12.6 million, up 25% from the prior quarter. - Earnings Per Share: $0.74 diluted; up 90% versus Q3 2024; nine-month diluted EPS up 60% year-over-year. - Return on Average Assets: 1.17%, improved 63% versus Q3 2024. - Return on Average Tangible Common Equity: Improved 69% versus Q3 2024. - Net Interest Income: $31.8 million, up 6% quarter-over-quarter and 8% year-over-year. - Net Interest Margin: 3.16%, up 10 basis points linked-quarter and 18 basis points year-over-year. - Loan Yield: 6.23%, up 10 basis points; new loan production average yield of 6.30%. - Cost of Funds: 2.97%, down 3 basis points. - Cost of Deposits: 2.79%, down 2 basis points; period-end weighted average rate on total deposits 2.82%. - Noninterest Income: $5.1 million, up $2.1 million quarter-over-quarter, driven mostly by the Brooklyn building sale gain. - Gain on Sale of Building: $2.7 million pre-tax; ~$7.4 million net proceeds; added ~$0.12 to diluted EPS. - Noninterest Expense: $19.5 million, up $526,000 from the prior quarter; guidance ~$19 million per quarter ahead. - Efficiency Ratio: 53%, 434 basis points better than the same quarter last year. - Effective Tax Rate: ~25% for Q3; full-year estimate 27%. - Pre-Tax, Pre-Provision Income: Up 23% quarter-over-quarter and 25% year-over-year (including building gain). - Loans Held for Investment: Increased $90 million, or 11% annualized; originations totaled $154 million; payoffs/paydowns down 24% quarter-over-quarter. - Single-Family Residential Mortgages: Increased $78 million. - Construction and Land Development Loans: Increased $8 million. - Total Deposits: $3.4 billion, stable versus prior quarter; retail deposit growth of $63 million; wholesale deposits reduced by $59 million (now under 2% of total deposits). - Non-Maturity Interest-Bearing Deposits: Increased $47 million; retail time deposits up $52 million; non-interest-bearing deposits declined $35 million. - Loan-to-Deposit Ratio: ~100%. - Non-Performing Assets: $38.7 million, or 91 basis points of total assets; down 11% during the quarter and 36% over two years. - Non-Performing Loans: Declined $4.9 million to 55 basis points of total loans; OREO unchanged at $19.8 million. - Allowance for Loan Losses: $44 million, or 1.30% of loans held for investment; coverage of non-performing loans 234%. - Provision for Credit Losses: $500,000, driven mainly by loan growth, partially offset by improved credit quality. - Net Charge-Offs: $122,000, or 1 basis point of average loans annualized. - Tangible Book Value Per Share: $2,744, up 6% year-over-year (11% over two years). - Share Repurchases: $4.5 million in the quarter, reducing shares outstanding ~1% (down 5% over two years). - Capital Ratios: Tangible common equity to tangible assets 11.05%; CET1 ratio 17.9%. - Warning! 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Release Date: October 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Net income increased 25% from the prior quarter to $12.6 million, with EPS of $0.74 and return on average assets improving to 1.17%. - Loan growth resumed, with loans held for investment increasing $90 million or 11% annualized, driven by steady originations and lower payoffs. - Credit quality continued to improve, with non-performing assets declining 11% during the quarter and 36% over the past two years. - Net interest margin expanded 10 basis points to 3.16%, supported by higher loan yields and a lower cost of funds. - Capital position remains strong with tangible common equity to tangible assets ratio of 11.05% and CET1 ratio of 17.9%. - Noninterest income declined $600,000 excluding the building sale gain, due to lower gains on sale of loans as more production was retained on the balance sheet. - Noninterest expense increased $526,000 from the prior quarter, mainly due to higher compensation and occupancy costs from the new San Francisco Bay Area LPO and the Brooklyn building sale. - The net interest margin included benefits from non-accrual interest recoveries and an FHLB special dividend, which may not recur, potentially pressuring future margins. - Deposit costs are expected to face upward pressure in the near term due to competition and the higher rate environment, with interest-bearing deposit betas likely to be higher than the historical 50%. - The loan-to-deposit ratio is approximately 100%, which may limit flexibility for further loan growth without additional deposit gathering or loan sales. Q: With the loan-to-deposit ratio around 100%, where are you comfortable keeping that ratio moving forward, and how do loan sales factor in? A: CFO Lynn Hopkins said the company has been managing the ratio around 100%, maybe high 90s, and remains comfortable at that level given its capital strength. She noted less loan sales in Q3 pushed the ratio up slightly and expects Q4 loan sales to be higher than Q3. Q: How should we think about the normalized net interest margin ex the interest recoveries and the FHLB special dividend will it hold around 3% or dip below? A: CFO Lynn Hopkins declined to give a precise forecast but said several factors support the margin: about two-thirds of the variable-rate portfolio can reprice within a year, and new C&I and construction originations are being made in the current rate environment. She sees an opportunity for the NIM to stay above 3%, though funding costs will rise in the near term. Q: Can you quantify the interest recovery that impacted NIM this quarter, and what are the remaining credit work-out items? A: CFO Lynn Hopkins said the interest recovery was around $700,000, recaptured on the payoff of a nonperforming loan. On credit, she said NPAs are down to three primary assets that are well understood, and criticized and classified loans continue to decrease; she sees that risk as under control with no common threads among problem credits. Q: What is the outlook for the expense run rate, and where are you investing? A: CFO Lynn Hopkins guided to roughly $19 million per quarter, plus or minus $100,000-$200,000. She expects OREO costs to moderate, some professional fees tied to production tax credits to fall, and data processing costs to improve potentially in Q4 but more likely Q1 2027. The first full quarter of the Northern California LPO is now in the run rate, and January brings typical raises and insurance resets. Q: With a strong capital position and stock trading below tangible book value, would you consider a tender offer or other ways to leverage capital? A: CFO Lynn Hopkins acknowledged the ample capital and the attractive valuation but said a stock tender offer is not under consideration at this point. She noted consistent participation in the buyback program and said the company is looking at the subordinated debt as a possible opportunity to right-size it relative to the balance sheet. Q: Has the recent rate hike impacted borrower demand, and do you expect further hikes to affect originations? A: CEO Johnny Lee said higher rates are a bit of a headwind, but commercial borrowers increasingly recognize the environment, which reduces pressure to compete against sub-6% rates. Some borrowers are stepping back and seeking to renegotiate terms, but overall the dynamic is more helpful than in the first half of the year. Q: Payoffs declined substantially this quarter do you expect them to remain near current levels? A: CEO Johnny Lee expects payoffs to stay tempered and trend downward over the next couple of quarters given the high-rate environment. CFO Lynn Hopkins added that the strategic payoffs made in the first half to improve credit quality have also tempered. Q: On the $154 million of new originations at a 6.30% yield, what types of loans are included, and what is the loan growth outlook? A: CEO Johnny Lee said roughly two-thirds of Q3 growth came from single-family residential loans, with additional growth in C&I and construction/land development. He highlighted a larger number of new C&I and C&D borrowers, and said the strong commercial pipeline should help shift the mix as SFR seasonally slows in Q4. Q: How much of the loan portfolio resets with the Fed, and how should we think about interest-bearing deposit betas if there is another hike in December? A: CFO Lynn Hopkins said about 52% of loans are variable rate, with roughly two-thirds of that eligible to reprice within the first year, which shifts the balance sheet toward asset sensitivity as rates rise. Deposit betas have run around 50% over the past year, but she expects them to be somewhat higher near term given rate-hike expectations and brokerage CD pricing, then moderate over time. Q: Where is new deposit pricing today, particularly on time deposits, to maintain or grow balances? A: CFO Lynn Hopkins said 12-month money is popular, with six-month brokered CDs just over 4% and one-year brokered money above 4.50%. She said RBB is well over 4% in that area, and while funding costs will rise in the near term, loan repricing and new production provide a natural hedge, especially as the long end of the curve flattens. Q: Can you describe the large OREO property, its status, and expected timing of an exit? A: CFO Lynn Hopkins said the OREO is a roughly 60% completed construction project in the Los Angeles area near a major sports venue. It is now listed for sale above carrying value, and given its size, the company expects an opportunity to exit in the first half of next year. Q: How is the new San Francisco Bay Area loan production office performing, and do you expect to add to the securities portfolio given higher bond yields? A: CEO Johnny Lee said the Bay Area LPO is tracking very positively and the team is already making great contributions. On securities, CFO Lynn Hopkins said the portfolio is actively managed with commercial paper retained for flexibility, and she agreed that higher market yields present an opportunity to add to the portfolio. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, Oct. 20, 2026 - President and Chief Executive Officer - Johnny Lee - Chief Financial Officer - Lynn Hopkins - Chief Credit Officer - Jeffrey Yeh - Investor Relations - Rebecca Rico Operator: Good afternoon, and welcome to the RBB Bancorp Third Quarter 2026 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. And we will open the floor for your questions after the presentation. If you wish to join the queue to ask a question at any time, you can press star 1. Should you wish to remove yourself from the queue, press star 2. It is now my pleasure to turn the floor over to your host, Rebecca Rico. The floor is yours. Rebecca Rico: Thank you, Soe. Good day, everyone, and thank you for joining us to discuss RBB Bancorp's results for the third quarter of 2026. With me today are President and CEO, Johnny Lee, Chief Financial Officer, Lynn Hopkins, and Chief Credit Officer, Jeffrey Yeh. Johnny and Lynn will briefly summarize the results, which can be found in the earnings press release and investor presentation that are available on our Investor Relations website and then we will open the call to your questions. I would ask that everyone please refer to the disclaimer regarding forward-looking statement in the investor presentation and the company's SEC. Filings. Now I would like to turn the call over to RBB Bancorp's President and Chief Executive Officer Johnny Lee. Johnny? Johnny Lee: Thank you, Rebecca. Good day, everyone, and thank you for joining us today. We are pleased to report a strong third quarter. Net income increased 25% from the prior quarter to $12.6 million or $0.74 per share and our return on average assets improved to 1.17%. Our results included a gain on sale of our office building in Brooklyn, but the underlying drivers of our performance were higher net interest income, solid loan growth, and continued improvement in credit quality. These results also show how far RBB has come over the past 2 years. Compared to third quarter of 2024 earnings per share has increased 90% Our return on average assets has improved 63%. And our return on average tangible common equity has improved 69%. For the 9 months of the year, diluted earnings per share is up 60% from the same period last year. Loan growth returned in the third quarter as we expected. Loans held for investment increased $90 million or 11% annualized driven by steady origination volume and lower payoffs in loan sales. We also completed our first full quarter of operations at our new LPO the San Francisco Bay Area. And we are encouraged by the early response from clients in that market. Our pipelines remain strong across the franchise, and we expect to continue these positive trends to finish the year. Credit quality continue to improve. Nonperforming assets declined 11% during the quarter, and over the past 2 years NPAs are down 36%, while criticized and classified loans are down 48%. We continue to work toward the resolution of our only OREO property which migrated from nonperforming loan to-- last quarter. The funding side, retail deposit growth of $63 million allowed us to reduce wholesale deposits by $59 million and wholesale funding now represent less than 2% of total deposits. Over the past 2 years, we have grown savings and money market balances by 86% and reduce our cost of interest bearing deposits by more than 100 basis points. Our capital position remains a source of strength During the quarter, we completed the partial redemption of our subordinate debt and continue to repurchase shares under our buyback program. Over the past 2 years, tangible book value per share has increased 11% while shares outstanding have declined by 5%. Overall, we believe the third quarter reflected the progress we have made in improving RBB's earning power. And we are well positioned as we head into the end of 2026. With that, I will hand it over to Lynn to talk about results in more detail. Lynn? Lynn Hopkins: Thank you, Johnny. Please feel free to refer to the investor presentation we have provided as I discuss the company's third quarter 2026 financial performance. The $2.5 million increase in net income in the third quarter compared to the second quarter was primarily driven by higher net interest income, $2.7 million pretax gain on the sale of our Brooklyn office building, and a lower effective tax rate. The building gain added approximately $0.12 to diluted earnings per share. Apart from the gain, our core earnings continued to strengthen, supported by loan growth and a wider net interest margin. Including the gain, pretax, pre provision income increased 23% from the second quarter and 25% from the third quarter of 2025. I would like to take a moment to provide some additional detail on the building sale. During the quarter, we had an opportunity to sell a building we owned in Brooklyn that housed our New York loan operations center. We occupied 2 of the building's 5 floors so the property was larger than what we needed for our operations. The sale generated net proceeds of approximately $7.4 million that we have been able to redeploy. We are leasing back the space we currently occupy through the end of the year after which we will transition our loan operations team to a new location. This was an opportunistic transaction for the benefit of our future operations. Net interest income was $31.8 million for the third quarter, an increase of 6% from the second quarter and 8% from the third quarter of 2025. Higher average loan balances and higher interest recoveries on nonaccrual loans accounted for $1.5 million of the $1.7 million linked quarter increase. The remainder came from a special dividend of $320 thousand and 1 more day in the quarter. Our net interest margin expanded 10 basis points to 3.6% for the third quarter and increased 18 basis points from the third quarter of 2025. The yield on average loans increased 10 basis points to 23, and our average cost of funds declined 3 basis points to 2.97. Which reflected the July 1 redemption of $40 million of our subordinated debt. We estimate the FHLB special dividend contributed approximately 3 basis points to the margin this quarter, and nonaccrual interest recoveries contributed approximately 7 basis points. Our average cost of deposits declined 2 basis points to 2.79 for the quarter, with the federal funds rate increasing 25 basis points during the third quarter our period end weighted average rate on total deposits increased a few basis points to 2.82. We continue to manage deposit pricing carefully while new loan production at an average yield of 4.36 during the third quarter continues to support overall earning asset yields. Noninterest income was $5.1 million for the third quarter, an increase $2.1 million from the second quarter due mostly to the gain on the sale of the Brooklyn building. Excluding that gain, noninterest income declined $100 thousand due mostly to lower gains on sale of loans as we retained more of our loan production on the balance sheet this quarter. Noninterest expense was $19.5 million for the third quarter, an increase of $526 thousand from the second quarter due mainly to higher compensation and occupancy costs. These increases reflect a full quarter of our operations, for our new San Francisco Bay Area LPO and the impact of the Brooklyn building sale. Our efficiency ratio improved to 53% which is 434 basis points better than the same quarter last year. Looking ahead, we expect our quarterly noninterest expense rate to be around $19 million Our effective tax rate was approximately 25% for the third quarter, reflecting the benefit of federal production tax credits purchased during the quarter we now estimate our effective tax rate will be approximately 27% for the full year. Turning quickly to the balance sheet. Loan growth during the quarter was led by single family residential mortgages, which increased $78 million along with an $8 million increase in construction and land development loans. Third quarter originations totaled $154 million and payoffs and paydowns declined 24% from the second quarter. We ended the quarter with a loan to deposit ratio of approximately 100%. Total deposits for $3.4 billion at September 30 and were stable compared to the prior quarter. Nonmaturity interest bearing deposits increased $47 million and retail time deposits increased $52 million while our noninterest bearing deposits declined $35 million partially reflecting the movement of balances into interest bearing accounts during the quarter. On average, noninterest bearing deposits increased from the second quarter to approximately 17% of average total deposits for the third quarter. Nonperforming assets $38.7 million or 91 basis points of total assets at September 30. Nonperforming loans declined $4.9 million, mostly through payoffs and paydowns. to 55 basis points of total loans, and REO was unchanged at $19.8 million. The allowance for loan losses stood at $44 million or 1.30% of loans held for investment. At quarter end and our allowance coverage of nonperforming loans increased to 234%. We recorded a $500 thousand provision for credit losses in the quarter, due mainly to loan growth partially offset by improved credit quality trends. Net charge offs were $122 thousand or 1 basis point of average loans on an annualized basis. Our tangible book value per share increased to $27.44 at September 30, an increase of 6% from a year ago. Even as we continued to return capital to shareholders, through share repurchases and dividends, We repurchased $4.5 million of common stock in the quarter, reducing shares outstanding by approximately 1%. Our capital ratios remain strong with tangible common equity to tangible assets ratio of 11.05%. And a CET1 ratio of 17.9%. This concludes my prepared remarks. Operator, we are now ready to take questions. Operator: The floor is now open for questions. If you wish to join the queue to ask. We do ask if listening on speakerphone today, please pick up your handset while asking your question to provide optimal sound quality. And if you press star 1 earlier during the call today, please press star 1 again to ensure our equipment has captured your signal. Please hold 1 moment while we poll for questions. And your first question will be from Liam Colehill at Hub Group. Please go ahead, Liam. Analyst: Hi. Thanks for taking my questions. Here's the recent rate hike impacted borrower demand? And do you expect further hikes to impact originations moving forward? Johnny Lee: Hi, Liam. This is Johnny. Yeah. Certainly, little bit of headwind, but overall, I think many of our borrowers are now on commercial side particularly recognizes the high rate environment. At least we are not faced with the sort of, I will just say, lesser or so, the challenges that we had encountered during the first half and maybe first part of Q3 where we were challenged with trying to compete with the below 6, sort of rate and the fire fix. We see lesser of that. So it allows us the ability to have to defend or, you know, go as aggressively as, you know, as we may have to compete for deals. So that is helpful. But at the same time, certainly, with the high rate environment, some borrowers are just kind of stepping back, taking a closer look at the landscape, and sometimes they want to renegotiate certain terms and conditions. Thank you. I guess moving to the other side of your origination question, I noticed payoffs declined substantially this quarter. Do you anticipate payoffs remain near current levels especially given how low they are? Lynn Hopkins: Yeah. And maybe I can chime in as well. Johnny Lee: So, yeah, we do, expect payoffs to slow-- to, get tempered, kind of trending downward. Given, again, you know, the high rate environment. I think some that typically may want aggressive-- more aggressive rates are not pushing those below 6 anymore out there as much. So we do see. We do anticipate pay downs and payoffs to-- I would just add to Johnny's comment regarding being temporary is appropriate. Lynn Hopkins: I think the other thing that we observed in the first half of this year was some strategic payoffs as we have continued to improve credit quality and those have also tempered as well. Oh, that makes sense. Thank you. And last 1 for me. And with the loan to deposit ratio kind of in that 100% realm right now, Where are you comfortable keeping that ratio moving forward? Sure. So we have been managing the loan to deposit ratio around the 100% mark maybe call it high 90s. I think we, with our capital levels, continue to remain comfortable at 100%. And I think that is managed to a large extent with our production levels that we just kinda talked about and also some loan sales. We had a little bit less in loan sales in the third quarter, which I think pushed up on our loan to deposit ratio a little bit. I think we expect loan sales in the fourth quarter to maybe be higher than what we saw in the third quarter. Analyst: Great. Well, thank you for taking my questions. I will step back. Johnny Lee: Thank you. Thanks, Liam. Operator: Next question is from Matthew Clark at Piper Sandler. Please go ahead. Matthew Clark: Good morning, everyone. Johnny Lee: Hi, Matthew. Lynn Hopkins: Hi, Matthew. Just on that point, Matthew Clark: On that point on gain on sale, expecting it to step back up, Roughly $500 thousand is the right way maybe to think about it from a run rate perspective. Just trying to make sure in the ballpark. Lynn Hopkins: So a couple of things. I think everyone knows that our loan sales are combined between our SBA loan sales, which you can sell a little and get a lot because the premiums are there in the marketplace. So we would expect to participate there. And then on the mortgage loan sales, I think that we have to sell quite a bit. The premiums continue to be very thin. I think that the way we look at it, there is probably an opportunity to return to the levels that we saw in the first part of this year. Maybe first quarter, but not necessarily the second quarter. Which is a little bit outsized. So you know, we are a taker in the market there. We believe our mortgage product continues to be priced competitively. So it should give us an opportunity to sell some of our loans. Matthew Clark: Got it. Okay. Great. And then on the new originations, $154 million, 6.3%. Can you give us a sense of you know, types of loans that are in there? Just thinking through kind of the growth in loans this quarter was largely SFR. So I just want to get a sense for and it sounded like you felt like there was some good momentum going into Q4. Just your thoughts on loan growth in general. Johnny Lee: Hi, Matthew. This is Johnny. So, yeah, Q3, I would say, approximately 2/3 of the growth was contributed by SFRs. But we also see growth in C&I and C&D loans, so your construction loans. 1 positive thing we see on C&I is. and C&D loans is that by number of counts, if you will. You know, we have much larger number of new borrowers or new loans. Hopefully, you know, as they utilize these C&I, C&D credits that hopefully that can contribute to our next loan growth source here in the near future. Okay. Matthew Clark: And then just on the margin, and kind of digging into it a little bit, I know you have got, what, 52% of your loans are variable rate, but those include ARMs. And so trying to get at what portion of your loan portfolio, you know, you know, resets with the Fed? And then how should we think about your interest bearing deposit beta, assuming we get another rate hike here in December? Lynn Hopkins: Sure. So thanks for starting with the loan portfolio. So about 52% is variable. We do kind of look at what reprices over the next 2 years. I would share that about 2/3 of that population is eligible to reprice in the first year. So they do not all immediately reprice. there is various repricing dates. But based on the structure of our loans, they do have the opportunity over the next year. This does help contribute to what we tend to be liability sensitive in the near term. It does shift us to something that looks a little bit more asset sensitive as rates rise and our loans continue to reprice into a higher rate environment. So turning to the liability side, we think about our interest bearing deposits and the betas there. I think over the last year, our betas have been maybe around 50%. But given the expectation of rate increases and kind of looking at the brokered CD market, I think things have priced in the rate increases. So I expect the near term to be a little bit higher than that. And then we will moderate over time. So you know, there is a lot of pressure on the cost of liquidity right now. Is my general comment. So I think over time, it will moderate, Matthew. But in the near term, it is gonna provide a little bit of pressure. Matthew Clark: Okay. Lynn Hopkins: So thinking about that 3.06 kind of adjusted margin ex the interest recoveries and the special FHLB divvy, a little pressure on that. Kind of normalized margin maybe hanging around 3%, or do you think you might start getting below 3? Matthew Clark: I do not have a crystal ball. Lynn Hopkins: I think there is a lot of there is a lot of things that are going to support our net interest margin. So in addition to the fact that we have about so out of the 52%, I would say 2/3 reprices over the 1-year. We are also participating in new loan originations in the current environment. I think there will be comments on, you know, the pipeline looks strong. I think to Johnny's point, we have C and I and construction loans that will be originating in the current rate environment. So there are things that continue to push up on the loan yield and the earning asset yield in the absence of interest recoveries or a special FHLB dividend. And then on the funding side, yes, I think that things will be more expensive, but it does take time for that to come through. I think there is an opportunity for our net interest margins to be above 3%, but it does know, take participating in the current interest rate environment on the earning asset side. Yep. Got it. Matthew Clark: Thank you. Operator: Next question comes from Kelly Motta at KBW. Please go ahead. Kelly Motta: Hi. Thank you so much for the question. I apologize if missed it here. Lynn, can you just quantify the amount of the interest recovery that impacted NIM in the quarter? Lynn Hopkins: Kelly, it was around $700 thousand we were able to recapture some interest on the payoff of a nonperforming loan. Kelly Motta: Got it. that is helpful. And then as I think about, you guys have continued to make progress on credit recovery story. In higher for longer, as you kind of look at what is left to be done, how are you guys thinking through whether at the margin, if you are seeing any incremental headwinds on the credit side from borrowers and the potential to slow there. Thanks. Operator: Kelly, if I am understanding your question, I think at this point, RBB's nonperforming assets at this point are very well understood that they are kind of down to 3 primary assets. Lynn Hopkins: And we are looking carefully at, you know, what we would classify as criticized and classified and criticized loans. Is that. Am I understanding your question correctly? Kelly Motta: Yeah. I mean, I guess you still have what is left to work out there, I guess, the potential. If you are seeing any kind of, like, potential incremental headwinds from, I guess, you know, the rest of the portfolio. Lynn Hopkins: Right. So I think that is how we would look at criticized and classified loans. And those have continued to decrease, and we monitor them carefully in the current environment. I would say, generally, you know, no. there is always some credit that you have to be managing that risk. But that is an area that we think is you know, under control. Dare I say. Got it. Kelly Motta: that is helpful. And then I guess a lot of the growth here was driven by single family residential during the quarter. Obviously, you guys have a differentiated product that is as you say, very competitively priced. But as you look ahead, what is the overall pipeline for growth And is there any changes in mix given kind of the rate environment we are in? Johnny Lee: Hi, Kelly. This is Johnny. So I would say, obviously with our Northern California LPO now the teams are sort of completely in place. We see a great deal of momentum there, and much of the growth from there is going to be very much all commercial. Loans of the CNI, CRE, even including construction. So we do see that contribution is making very you know, making a very positive contribution. For us. So that hopefully will help us sort of, you know, change the mix a little bit, I guess, overall. So, especially single family resi loans are, you know, typically Q4, you know, regardless, even without the rate hike, if you will, typically Q4 does, you know, seasonally, seasonality-wise, it is up to a degree slower. On the SFRs, but we do have a very strong pipeline on the commercial side right now. That I think will hopefully be able to change our mix a little bit. Kelly Motta: Great. Thank you. I will step back. Lynn Hopkins: Thank you. Operator: Next question comes from Andrew Terrell at Stephens. Please go ahead. Analyst: Hey. Good afternoon. Lynn Hopkins: Hey, Andrew. Maybe I just wanted to start just checking in on kind of the expectation around the expense run rate. And you guys have managed expenses very well throughout this year. Just what type of expense growth you are targeting? And if you could talk about any specific drivers, like, where you are most focused from an investment perspective right now? Andrew, I was tracking the first half of your question. Was the second half related to noninterest expense as well? Can you just repeat that? Yeah. Sorry. Just, you know, expectation kinda near term on expense run rate. And then just bigger picture, you guys have managed low single-digit expense growth this year so far. Is that still kind of the right ballpark? And can you talk about what areas of investment you are most focused in right now? Great. Okay. Thank you. Sorry. I did not hear the end of the. it is the first time. No problem. So the expectation of our run rate based on where we have been making investments and able to grow, as we mentioned, this is our first full quarter with the loan production office in Northern California, so those are included in our run rate at this point in time. I think there is an expectation that our REO costs can moderate a little bit. We were catching up as we brought that onto the balance sheet this quarter. We also had some costs associated with bringing in the production tax credits. And that translated to more income to the bottom line. But showed up maybe in some of our professional fees. We also think that some of our compensation costs will be reflective of our. Reflective of our growth. But we had a couple of things in there this quarter that might show that going down a little bit in the fourth quarter. Obviously, January is always a big month between raises, insurance premiums resetting, and tax, there is definitely some things that we expect to go down. The last 1 I would comment on is our data processing. We have spoken a bit about those costs. there is an expectation that we will have an opportunity to improve our run rate in that particular category. And that should show up potentially in the fourth quarter but more likely, first quarter of 2027. The building sale we have a little bit of additional cost in that particular line item as we are leasing space instead of owning it. The offset to that was higher interest income. We will deploy the proceeds there. So there is a lot of different things that add up to our expectations of being around $19 million, call it plus or minus, you know, $100 thousand-$200 thousand. So sorry. it is not a short answer, but a lot going on. And to your point, we work very hard to manage our overhead Yeah. No. I really do appreciate all the all the added color there. If I go back to just 1 question around the margin, if I look at your time deposit costs as of the third quarter, 3.60ish or so. Lynn, it sounded like pretty, you know, intense competition if you are looking against kind of the brokered market, or I would just imagine, in some of your local markets as well? Can you help frame just where new deposits are at today or where you feel like pricing, specifically on the time deposit side, needs to be in order to maintain or grow balances? Sure. So to your point, CD balances or CD rates, what we are observing in the market, 12-month money is very popular. 6 month money is priced probably just over 4%. 6-month, 1-year money given the expectation of rate hikes. Is up over. In the brokered market, up over 4.50. So competing for those dollars relative to our balance sheet, you know, we are definitely well over 4%. In that area. But as I mentioned earlier, a big part of our loan portfolio in addition to loan production is able to also participate in repricing So it is moving up significantly. In the deposit pricing category. Yep. Got it. Okay. Then just last 1 for me. it is good to see go ahead. I think 1 additional comment, which I think speaks to loan production. We focus on short term rates, which does impact call it, funding, right? The liabilities tend to reprice more immediately. And can create a bit of a headwind But the way it is getting addressed is through the repricing of our loan portfolio. But the long end of the curve is not moving up quite as aggressively, so curve seems to potentially be flattening out. Not perfect, but that does support additional production to then move generally this environment. So that is, I think, what will be a natural hedge against some of the deposit pricing. But you know, funding costs, will go up. That is unavoidable in the near term. Yep. Got it. And if I could just ask 1 last 1. Mean, it was good to see the sub debt redemption this quarter as a use of capital. You still got a pretty incredible capital position. The asset quality has improved significantly over the past couple of years. You know, your margins are better. ROA is better, but your stock is still trading, you know, a little bit below tangible book value. I guess when you when you put all that together, I know you are you are limited by liquidity a bit, but would you ever consider a tender offer? Are there other means to you know, rightsize or leverage the capital base a bit? Just would love to hear your thoughts there. Sure. No, thanks for the question. To your point, we do have a lot of capital. There is potential for leveraging that. I am not sure that I think we needed to put a few things in place, which is getting our credits to be think, better understood to your point, sustainable earnings I think the participation in our stock buyback program has been you know, consistent. And we are looking, I think, at the sub debt as well as maybe an opportunity to know, rightsize that relative to our balance sheet. But I do not know if I would say a tender offer on our stock at this point in time. Appreciate that we are trading below tangible book, so it is an attractive investment Got it. Thanks for taking the questions. Yeah. Johnny Lee: Thank you. Operator: Thank you. Next question comes from David Feaster at Raymond Private Wealth Management. Please go ahead. Analyst: Morning, and I am pleased to see what a solid quarter it was. I like the way that things continue to improve. I did have a couple of questions that have been answered already, but I have a couple of more on the asset quality on the balance sheet. First 1 is, the large REO item. Can you describe that further? What sort of mixed use project it is? How far along is it towards completion, what are your what are your expectations for the timing and exit from that? Lynn Hopkins: Hi, David. it is Lynn. I think we have shared that this REO is or was a 60% or so completed construction project in the Los Angeles area by 1 of the major sports venues. it is now moving through its nonperforming asset life as an REO It is now listed for sale above the carrying value that we have on our books. And given the size of the project, we are expecting that we will have an opportunity to exit it the first half of next year. Well, that would be a positive. Moving on more into the asset quality, You noticing any common threads among substandard and other criticized loans, for example, are they, running into problems due to fuel prices or other things rather? I am just asking if there is any common themes or threads it is a good question, and we look at that as well. And at this point, we have not identified any common threads for the assets that we are looking at or managing. Last question. The somewhat of a decline, not major, but notable decline in securities held. Seems to be a little bit puzzling given the way that, the bond yields have risen in the recent quarter? Do you expect to start adding back to the securities to take advantage of the higher bond yields? Or is there a plan on that at all? So, yes, I did notice we are down just a little bit quarter over quarter. So we do actively manage the portfolio. I appreciate that there is higher yields. I think that we made a concerted effort and put the duration on inside of our loan portfolio. We always keep a bit of commercial paper, which gives us flexibility I think, in the securities portfolio. But your comment regarding higher yields in the market and taking an opportunity to add something in securities portfolio. Is a good 1. Analyst: Last question. Any comments Are you pleased or disappointed? Any other comments on the new San Francisco Bay Area loan production office? How is that 1 going? Johnny Lee: No. Hi there. This is Johnny. No. So far so good. Everything's tracking very positively. We are very pleased with the team. Yeah. They are making great contributions already right out of the gate. I am all done, and thank you for posting a great quarter. Thanks, David. Lynn Hopkins: Thank you, David. Operator: At this time, we have no other questions registered. I will turn the call back to Johnny Lee. Johnny Lee: Thank you. Once again, Thank you for joining us today. We look forward to speaking to many of you in the coming days and weeks. Have a great day, everyone. Lynn Hopkins: Thank you. Operator: Thank you, sir. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you again for your participation. Before you buy stock in Rbb Bancorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rbb Bancorp wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $376,696!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,333,920!* Now, it's worth noting Stock Advisor's total average return is 925% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. RBB Bancorp (RBB) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

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 was primarily driven by higher net interest income, solid loan originations, and a $2.7 million pretax gain from the opportunistic sale of a Brooklyn office building. - Management attributed the 10 basis point net interest margin expansion to a special dividend from the FHLB and interest recoveries on nonaccrual loans. - Loan growth of 11% annualized was fueled by steady origination volume and a 24% decline in payoffs and paydowns compared to the prior quarter. - The bank successfully transitioned its funding mix by growing retail deposits by $63 million, allowing for a reduction in wholesale funding to less than 2% of total deposits. - Credit quality showed continued improvement with nonperforming assets declining 11% sequentially and criticized/classified loans down 48% over a two-year period. - The new San Francisco Bay Area loan production office completed its first full quarter, contributing to a strong commercial pipeline in C&I and construction lending. - Management emphasized a shift toward asset sensitivity as approximately two-thirds of the variable-rate loan portfolio is eligible to reprice within the next year. - Management expects quarterly noninterest expenses to stabilize around $19 million, with potential efficiency improvements in data processing costs by early 2027. - Loan sales are anticipated to increase in the fourth quarter to help manage the loan-to-deposit ratio, which management intends to maintain near the 100% mark. - The bank expects to exit its largest OREO asset—a partially completed construction project in Los Angeles—during the first half of 2027, as it is currently listed above carrying value. - Guidance for the effective tax rate has been set at approximately 27% for the full year 2026, following the purchase of federal production tax credits. - Management anticipates continued upward pressure on deposit costs due to competition in the 6-to-12-month CD market, though this is expected to be hedged by loan repricing. - The sale of the Brooklyn office building generated $7.4 million in net proceeds and added approximately $0.12 to diluted earnings per share. - A $40 million redemption of subordinated debt on July 1 contributed to a 3 basis point decline in the average cost of funds. - The bank continued its capital return strategy by repurchasing $4.5 million of common stock, reducing shares outstanding by approximately 1% during the quarter. - Net interest margin was bolstered by a one-time FHLB special dividend and $700 thousand in interest recoveries from a nonperforming loan payoff. - Management noted that while high rates are a headwind, the competitive landscape has improved as fewer lenders are offering aggressive sub-6% rates. - Borrowers are increasingly accepting the high-rate environment, though some are stepping back to renegotiate terms or conditions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - The bank is comfortable maintaining a ratio near 100% given its high capital levels but will use loan sales to prevent it from exceeding that threshold. - Management expects higher mortgage loan sales in the fourth quarter compared to the third quarter to balance the portfolio. - Historical deposit betas were around 50%, but management expects near-term betas to be higher due to intense competition in the brokered CD market. - Management believes the margin can stay above 3% as the loan portfolio reprices and new originations capture current market yields. - The asset is a 60% completed construction project near a major Los Angeles sports venue, currently listed for sale above book value. - Management expects a full exit from this position in the first half of next year. - Management acknowledged the stock trades below tangible book value but indicated they are not currently considering a tender offer. - The focus remains on consistent share repurchases and rightsizing the balance sheet through sub-debt redemptions.

- Interested in RBB Bancorp? Here are five stocks we like better. - Third-quarter earnings rose sharply: Net income increased 25% from the prior quarter to $12.6 million, or $0.74 per share, supported by higher net interest income, loan growth and a $2.7 million gain on the sale of RBB's Brooklyn office building. - Loan growth and margins improved: Loans held for investment grew 11% annualized, led by single-family mortgages, while net interest margin increased to 3.16% as loan yields rose and funding costs declined. - Credit and capital remained strong: Non-performing assets fell 11% to $38.7 million, deposits were stable at $3.4 billion, and RBB reported a 17.9% CET1 ratio after repurchasing $4.5 million of common stock. - Regional Bank Buybacks: 5 Institutions Making Big Moves RBB Bancorp (NASDAQ:RBB) reported third-quarter net income of $12.6 million, or $0.74 per share, up 25% from the prior quarter, as higher net interest income, loan growth and an office-building sale supported results. President and Chief Executive Officer Johnny Lee said the company's return on average assets improved to 1.17%. The quarter included a gain from the sale of RBB's Brooklyn office building, though Lee said underlying performance was also aided by improved net interest income, loan growth and credit trends. → Berkshire Just Backed This Little-Known Stock—Should You Chase It? - 3 Penny Stocks Analysts Believe Are Headed Higher Compared with the third quarter of 2024, earnings per share increased 90%, return on average assets improved 63%, and return on average tangible common equity increased 69%, according to Lee. For the first nine months of 2026, diluted earnings per share rose 60% from the same period a year earlier. Chief Financial Officer Lynn Hopkins said the linked-quarter increase in net income was driven principally by higher net interest income, a $2.7 million pre-tax gain on the Brooklyn building sale and a lower effective tax rate. The building transaction added about $0.12 to diluted earnings per share. → These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington RBB sold the Brooklyn property, which housed its New York loan operations center, after determining that the five-floor building was larger than needed. The company occupied two floors and generated approximately $7.4 million in net proceeds from the sale. RBB will lease its current space through year-end before moving the loan operations team to a new location. Net interest income totaled $31.8 million, increasing 6% from the second quarter and 8% from a year earlier. Higher average loan balances and interest recoveries on non-accrual loans contributed $1.5 million of the $1.7 million linked-quarter increase. A $320,000 special dividend and an additional day in the quarter accounted for the remainder. → Broadcom's CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom Net interest margin rose 10 basis points from the prior quarter to 3.16% and increased 18 basis points from the prior-year quarter. The yield on average loans increased 10 basis points to 6.23%, while average funding costs fell 3 basis points to 2.97%, reflecting the July 1 redemption of $40 million of subordinated debt. Hopkins said the special dividend contributed about 3 basis points to margin, while non-accrual interest recoveries contributed about 7 basis points. The company's average cost of deposits declined 2 basis points to 2.79%, although its period-end weighted average rate on total deposits increased slightly to 2.82% after the federal funds rate rose 25 basis points during the quarter. Management said deposit pricing remains competitive. Hopkins noted that six-month certificates of deposit were priced just above 4% in the market, while one-year brokered deposits were above 4.5%. She said funding costs are expected to rise in the near term, though repricing loans and new loan production could support earning-asset yields. Loans held for investment increased $90 million during the quarter, representing 11% annualized growth. Third-quarter originations totaled $154 million, while payoffs and paydowns declined 24% from the second quarter. Growth was led by single-family residential mortgages, which increased $78 million, along with an $8 million increase in construction and land development loans. Lee told analysts that about two-thirds of quarterly loan growth came from single-family residential lending, while commercial and industrial and construction lending also increased. The company ended the quarter with a loan-to-deposit ratio of about 100%. Hopkins said management remains comfortable operating around that level or in the high-90% range, with loan sales serving as one tool for managing the ratio. RBB expects loan sales in the fourth quarter to be higher than in the third quarter. Lee said borrower demand faces some pressure from higher interest rates, but commercial borrowers have become more accustomed to the environment. He said competition from loans priced below 6% on a five-year fixed-rate basis had eased. Management also expects payoffs and paydowns to remain tempered over the next several quarters. RBB's new San Francisco Bay Area loan production office completed its first full quarter of operations. Lee said the bank was encouraged by the client response and expects the office to contribute commercial lending, including commercial and industrial, commercial real estate and construction loans. He described the team's early contribution as positive. Non-performing assets declined 11% during the quarter to $38.7 million, or 91 basis points of total assets. Non-performing loans fell $4.9 million, primarily through payoffs and paydowns, to 55 basis points of total loans. Real estate owned was unchanged at $19.8 million. The company recorded a $500,000 provision for credit losses, mainly due to loan growth and partly offset by improved credit quality trends. Net charge-offs were $122,000, or 1 basis point of average loans on an annualized basis. The allowance for loan losses was $44 million, or 1.30% of loans held for investment, with allowance coverage of non-performing loans at 234%. Management said its sole REO property is a roughly 60%-completed construction project near a major sports venue in Los Angeles. The property is listed for sale above its carrying value, and Hopkins said RBB expects an opportunity to exit the investment in the first half of next year. Total deposits stood at $3.4 billion at Sept. 30, largely unchanged from the prior quarter. Retail deposit growth of $63 million enabled RBB to reduce wholesale deposits by $59 million, leaving wholesale funding at less than 2% of total deposits, Lee said. RBB repurchased $4.5 million of common stock during the quarter, reducing shares outstanding by approximately 1%, and completed a partial subordinated-debt redemption. Tangible book value per share rose to $27.44, up 6% from a year earlier. The company reported a tangible common equity-to-tangible assets ratio of 11.05% and a CET1 ratio of 17.9%. Looking ahead, Hopkins said RBB expects quarterly non-interest expense of roughly $19 million, plus or minus $100,000 to $200,000. She said the company expects some expense moderation, including potential improvements in data-processing costs, while compensation and other costs may reflect continued growth. RBB Bancorp is a bank holding company headquartered in Los Angeles, California. Its principal subsidiary, Royal Business Bank, provides commercial banking and financial services to businesses, professionals and individuals, with a focus on serving small and mid-sized companies and the communities in which they operate. Royal Business Bank offers business and consumer deposit accounts, certificates of deposit, cash-management services, online banking and other treasury-management solutions. 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 "What RBB Bancorp (RBB) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

LOS ANGELES, Oct. 19, 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 September 30, 2026. Third Quarter 2026 Highlights - Net income totaled $12.6 million, or $0.74 diluted earnings per share - Return on average assets of 1.17%, compared to 0.97% for the prior quarter - Net interest margin of 3.16%, up from 3.06% for the prior quarter - Nonperforming assets of $38.7 million, a $4.9 million, or 11.3%, decrease compared to prior quarter end - Book value and tangible book value per share(1) increased to $31.75 and $27.44 at September 30, 2026, up from $31.51 and $27.23 at June 30, 2026 - $2.7 million gain on the sale of an office building in Brooklyn, New York - Partial redemption of subordinated notes of $40 million was completed on July 1, 2026 The Company reported net income of $12.6 million, or $0.74 diluted earnings per share, for the quarter ended September 30, 2026, compared to net income of $10.1 million, or $0.59 diluted earnings per share, for the quarter ended June 30, 2026. "Our third quarter results reflected the continued strength of our core banking franchise as the partial redemption of our subordinated notes and the continued resolution of nonperforming assets contributed to higher net interest income," 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, which allowed us to reduce our reliance on wholesale deposits. Credit quality continued to improve, with nonperforming assets declining 11% from the prior quarter. Strong loan production drove double-digit annualized loan growth in the quarter, and with healthy pipelines and business activity in our markets, we believe we are well positioned to continue these positive trends to finish the year." _____________________________ 1 Reconciliations of the non–U.S. generally accepted accounting principles ("GAAP") measures included at the end of this press release. Net Interest Income and Net Interest Margin Net interest income was $31.8 million for the third quarter of 2026, compared to $30.1 million for the second quarter of 2026. The $1.7 million increase was due to a $2.1 million increase in interest income, partially offset by a $473,000 increase in interest expense. The increase in interest income was due to the combination of a $1.5 million increase in loan interest income as average loans and nonaccrual interest recoveries increased, one additional day in the quarter and a special dividend of $320,000 from the Federal Home Loan Bank ("FHLB") in the third quarter of 2026. There was no special dividend from the FHLB in the second quarter of 2026. The increase in interest expense was due mainly to a $239,000 increase in interest on total borrowings due to higher average balances partially offset by lower rates and a $234,000 increase in interest on deposits due mainly to one additional day in the quarter. The net interest margin ("NIM") increased 10 basis points to 3.16% for the third quarter of 2026 from 3.06% for the second quarter of 2026. The NIM increase included a 9 basis point increase in the yield on average total interest-earning assets and a 3 basis point decrease in the overall cost of funds. The yield on average total interest-earning assets increased to 5.90% for the third quarter of 2026 from 5.81% for the second quarter of 2026, due mostly to the impact of higher nonaccrual interest recoveries on loans and the FHLB special dividend received in the third quarter. The average total cost of funds decreased 3 basis points to 2.97% for the third quarter of 2026 from 3.00% for the second quarter of 2026, due mostly to a decrease in the cost of borrowings due to the partial redemption of $40.0 million of subordinated notes on July 1, 2026. Average noninterest-bearing deposits increased to approximately 17% of average total deposits for the third quarter of 2026 from 16% for the second quarter of 2026. The period end weighted average interest rate for total deposits increased to 2.82% at September 30, 2026 from 2.75% at June 30, 2026. The increase is due in part to the impact of the recent 25 basis point increase to the Federal funds rate. Provision for Credit Losses The provision for credit losses was $500,000 for the third quarter of 2026 compared to no provision for the second quarter of 2026. The third quarter 2026 provision for credit losses reflected a provision for loan losses of $500,000 and no provision for unfunded loan commitments. The third quarter provision for loan losses was due mainly to the impact of net loan growth, partially offset by improved credit quality trends and underlying economic forecast indicators. Net charge-offs in both the third quarter and second quarter of 2026 represented 0.01% of average loans on an annualized basis. Noninterest Income Noninterest income for the third quarter of 2026 was $5.1 million, an increase of $2.1 million from $3.0 million for the second quarter of 2026. The increase in noninterest income was mainly due to higher other income of $2.7 million, offset partially by lower gain on sale of loans of $875,000 due to lower sale volume. The increase in other income was primarily due to a $2.7 million gain on the sale of the Bank's office building in Brooklyn, New York. As part of the sale, the Bank entered into a four month lease to house its loan operations center through the end of 2026. These operations will relocate to new leased space, also located in Brooklyn, starting in 2027. Noninterest Expense Noninterest expense for the third quarter of 2026 was $19.5 million, an increase of $526,000 from $19.0 million for the second quarter of 2026. The increase was due mainly to higher salaries and benefits and occupancy costs. Both of these categories increased due to a full quarter of operations for the Northern California loan production office and occupancy costs also included rent for the Brooklyn loan operations center after the sale of the building. The efficiency ratio was 53.0% for the third quarter of 2026, compared to 57.5% for the second quarter of 2026. The improvement in the efficiency ratio is attributed mostly to higher net revenues. Income Taxes The effective tax rate was 24.9% for the third quarter of 2026 and 28.0% for the second quarter of 2026. The decrease in the effective tax rate for the third quarter of 2026 was due to higher benefits from purchased Federal tax credits recognized in the quarter. The effective tax rate for 2026 is estimated to be 26.9% 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 mainly to a higher multi-state blended tax rate and lower benefits from purchased Federal tax credits for the full year. Balance Sheet At September 30, 2026, total assets were $4.3 billion, a $23.7 million, or 2.2% annualized, decrease compared to total assets of $4.3 billion at June 30, 2026, and a $42.8 million, or 1.0%, increase compared to total assets of $4.2 billion at September 30, 2025. Loan and Securities Portfolio Loans held for investment ("HFI") totaled $3.4 billion as of September 30, 2026, an increase of $89.8 million, or 10.8% annualized, compared to June 30, 2026 and an increase of $96.6 million, or 2.9%, compared to September 30, 2025. The increase in loans in the third quarter of 2026 included $154.0 million of originations with an average yield of 6.30%, $30.5 million in advances, and $21.9 million in purchases, offset by payoffs/paydowns of $113.8 million and loans sold of $2.7 million. The loan to deposit ratio was 100.1% at September 30, 2026, compared to 97.6% at June 30, 2026 and 98.1% at September 30, 2025. As of September 30, 2026, available for sale securities ("AFS") totaled $381.3 million, a decrease of $25.8 million from June 30, 2026, primarily related to maturities and paydowns of $52.7 million, offset by purchases of $36.4 million during the third quarter of 2026. As of September 30, 2026, net unrealized pre-tax losses totaled $30.6 million, a $9.7 million increase due to increased market interest rates when compared to net unrealized pre-tax losses of $20.9 million as of June 30, 2026. Deposits Total deposits were $3.4 billion as of September 30, 2026, an increase of $4.6 million, or 0.5% annualized, compared to June 30, 2026 and an increase of $28.8 million, or 0.9%, compared to September 30, 2025. The increase in total deposits during the third quarter of 2026 was due to a $63.3 million increase in retail deposits, offset by a $58.7 million decrease in wholesale deposits. The increase in retail deposits included a $46.5 million increase in non-maturity interest-bearing accounts and a $51.6 million increase in time deposits, offset by a $34.7 million decrease in demand deposits. Noninterest-bearing deposits totaled $556.8 million, or 16.4% of total deposits, at September 30, 2026, a decrease of $34.7 million compared to June 30, 2026, and an increase of $6.4 million compared to September 30, 2025. Credit Quality Nonperforming assets totaled $38.7 million, or 0.91% of total assets, at September 30, 2026, down from $43.6 million, or 1.02% of total assets, at June 30, 2026, and down from $54.3 million, or 1.29% of total assets, at September 30, 2025. The decrease in nonperforming assets during the third quarter of 2026 was due to a decrease of $4.9 million in nonperforming loans ("NPL"). Other real estate owned ("OREO") totaled $19.8 million at September 30, 2026 and June 30, 2026, and $8.8 million at September 30, 2025. NPLs totaled $18.8 million, or 0.55% of total loans, at September 30, 2026, down $4.9 million from $23.8 million, or 0.72% of total loans, at June 30, 2026 and down $26.6 million from $45.5 million, or 1.38% of total loans, at September 30, 2025. The $4.9 million decrease in NPLs during the third quarter of 2026 was due mostly to $5.3 million in payoffs/paydowns partially offset by additions of $522,000. Substandard loans totaled $57.3 million, or 1.69% of total loans, at September 30, 2026, down from $61.5 million, or 1.86% of total loans, at June 30, 2026 and $76.9 million, or 2.33% of total loans, at September 30, 2025. The $4.2 million decrease in substandard loans during the third quarter of 2026 was primarily due to $5.4 million in payoffs/paydowns, partially offset by additions of $1.2 million. Of the total substandard loans outstanding at September 30, 2026, there were $38.5 million, or 67% of such loans, on accrual status. Special mention loans totaled $24.3 million, or 0.72% of total loans, at September 30, 2026, up from $20.3 million, or 0.61% of total loans, at June 30, 2026, and down from $49.3 million, or 1.49% of total loans, at September 30, 2025. The $4.1 million increase for the third quarter of 2026 was primarily due to additions of $7.0 million, partially offset by payoffs/paydowns of $1.5 million, and upgrades of $1.4 million to pass-rated loans. As of September 30, 2026, all special mention loans were on accural status. 30-89 day delinquent loans, excluding NPLs, totaled $7.2 million, or 0.21% of total loans, at September 30, 2026, down from $9.0 million, or 0.27% of total loans, at June 30, 2026, and up from $6.5 million, or 0.20% of total loans, at September 30, 2025. The $1.7 million decrease for the third quarter of 2026 was mainly due to $5.7 million in loans returning to current status, payoffs/paydowns of $0.7 million, and $0.5 million in loans which migrated to nonperforming, offset by $5.4 million in new delinquent loans. As of September 30, 2026, the allowance for credit losses totaled $44.4 million and was comprised of an allowance for loan losses of $44.0 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 $44.1 million, comprised of an allowance for loan losses of $43.7 million and a reserve for unfunded loan commitments of $407,000 at June 30, 2026. The $378,000 increase in the allowance for credit losses for the third quarter of 2026 was due to a provision for credit losses of $500,000 offset by net charge-offs of $122,000. The allowance for loan losses as a percentage of loans HFI totaled 1.30% at September 30, 2026, compared to 1.32% at June 30, 2026. The allowance for loan losses as a percentage of nonperforming loans HFI was 234% at September 30, 2026, up from 184% at June 30, 2026. | For the Three Months Ended September 30, 2026 | | For the Nine Months Ended September 30, 2026 (dollars in thousands) | Allowance for loan losses | | Reserve for unfunded loan commitments | | Allowance for credit losses | | Allowance for loan losses | | Reserve for unfunded loan commitments | | Allowance for credit losses Beginning balance | $ | 43,660 | | | $ | 407 | | | $ | 44,067 | | | $ | 43,888 | | | $ | 484 | | | $ | 44,372 | Provision for/(reversal of) credit losses | | 500 | | | | — | | | | 500 | | | | 377 | | | | (77 | ) | | | 300 | Less loans charged-off | | (137 | ) | | | — | | | | (137 | ) | | | (283 | ) | | | — | | | | (283 | ) Recoveries on loans charged-off | | 15 | | | | — | | | | 15 | | | | 56 | | | | — | | | | 56 | Ending balance | $ | 44,038 | | | $ | 407 | | | $ | 44,445 | | | $ | 44,038 | | | $ | 407 | | | $ | 44,445 | Shareholders' Equity At September 30, 2026, total shareholders' equity was $534.2 million, a $934,000 decrease compared to June 30, 2026, and a $19.9 million increase compared to September 30, 2025. The decrease in shareholders' equity for the third quarter of 2026 was due mostly to an increase in unrealized losses on AFS securities, net of tax, of $6.8 million, common stock repurchases of $4.5 million and common stock cash dividends paid of $2.7 million, offset by net income of $12.6 million and stock-based compensation activity of $450,000. Dividend Announcement The Board of Directors has declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on November 12, 2026 to shareholders of record on October 30, 2026. Contact: Lynn Hopkins, Chief Financial Officer (213) 716-8066 [email protected] Corporate Overview RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of September 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 business banking products and services predominately to Asian-centric communities through 24 branches and one loan production office located in California, Nevada, New York, Illinois, New Jersey and Hawaii. Bank products and services include 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, wealth management and a full range of depository accounts, including specialized services such as remote deposit, E-banking, mobile banking and treasury management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, and one loan production office in the San Francisco Bay area in California; one branch in Las Vegas, Nevada; three branches and one loan operations 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, October 20, 2026, to discuss the Company's third 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 889260, conference ID RBBQ326. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 54597, approximately one hour after the conclusion of the call and will remain available through November 3, 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 constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include 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 ineffective management of the United States ("U.S.") federal budget or debt or turbulence or uncertainty 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; the impact of adverse developments in the banking industry, including 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; fluctuations in interest rates; 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, the Board of Governors of the Federal Reserve System, 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. There can be no assurance that other factors not currently anticipated by us will not materially and adversely affect our business, financial condition and results of operations. 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. You are cautioned not to place undue reliance on our forward-looking statements, which reflect management's analysis and expectations only as of the date of such statements. 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. RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 Assets | | | | | | | | | Cash and due from banks | $ | 24,697 | | | $ | 25,363 | | | $ | 23,893 | | | $ | 27,086 | | | $ | 24,251 | Interest-earning deposits with financial institutions | | 165,593 | | | | 257,652 | | | | 173,017 | | | | 185,231 | | | | 210,679 | Cash and cash equivalents | | 190,290 | | | | 283,015 | | | | 196,910 | | | | 212,317 | | | | 234,930 | Interest-earning time deposits with financial institutions | | 600 | | | | 600 | | | | 600 | | | | 600 | | | | 600 | Investment securities available for sale | | 381,344 | | | | 407,160 | | | | 415,789 | | | | 407,204 | | | | 410,631 | Investment securities held to maturity | | 4,179 | | | | 4,181 | | | | 4,182 | | | | 4,184 | | | | 4,185 | Loans held for sale | | — | | | | — | | | | — | | | | 2,067 | | | | 756 | Loans held for investment | | 3,399,214 | | | | 3,309,459 | | | | 3,325,232 | | | | 3,314,301 | | | | 3,302,577 | Allowance for loan losses | | (44,038 | ) | | | (43,660 | ) | | | (43,666 | ) | | | (43,888 | ) | | | (44,892 | ) Net loans held for investment | | 3,355,176 | | | | 3,265,799 | | | | 3,281,566 | | | | 3,270,413 | | | | 3,257,685 | Premises and equipment, net | | 17,950 | | | | 22,868 | | | | 23,204 | | | | 23,540 | | | | 23,851 | Federal Home Loan Bank (FHLB) stock | | 15,000 | | | | 15,000 | | | | 15,000 | | | | 15,000 | | | | 15,000 | Cash surrender value of bank owned life insurance | | 63,290 | | | | 62,841 | | | | 62,403 | | | | 61,972 | | | | 61,538 | Goodwill | | 71,498 | | | | 71,498 | | | | 71,498 | | | | 71,498 | | | | 71,498 | Net deferred tax assets | | 18,174 | | | | 15,115 | | | | 15,242 | | | | 16,347 | | | | 14,935 | Income tax receivable | | 12,754 | | | | 7,296 | | | | 5,554 | | | | 17,483 | | | | 9,827 | Right-of-use assets | | 20,754 | | | | 22,068 | | | | 22,601 | | | | 23,026 | | | | 24,305 | Accrued interest and other assets | | 100,287 | | | | 97,561 | | | | 79,763 | | | | 82,643 | | | | 78,714 | Total assets | $ | 4,251,296 | | | $ | 4,275,002 | | | $ | 4,194,312 | | | $ | 4,208,294 | | | $ | 4,208,455 | Liabilities and shareholders' equity | | | | | | | | | Deposits: | | | | | | | | | Noninterest-bearing demand | $ | 556,848 | | | $ | 591,556 | | | $ | 526,882 | | | $ | 526,538 | | | $ | 550,488 | Savings, NOW and money market accounts | | 1,237,657 | | | | 1,191,198 | | | | 1,175,735 | | | | 956,299 | | | | 721,697 | Time deposits, $250,000 and under | | 755,509 | | | | 815,528 | | | | 863,717 | | | | 974,670 | | | | 1,119,258 | Time deposits, greater than $250,000 | | 845,266 | | | | 792,359 | | | | 773,550 | | | | 892,891 | | | | 975,054 | Total deposits | | 3,395,280 | | | | 3,390,641 | | | | 3,339,884 | | | | 3,350,398 | | | | 3,366,497 | FHLB advances | | 180,000 | | | | 160,000 | | | | 130,000 | | | | 130,000 | | | | 130,000 | Long-term debt, net of issuance costs | | 80,000 | | | | 120,000 | | | | 120,000 | | | | 119,911 | | | | 119,815 | Subordinated debentures | | 15,538 | | | | 15,484 | | | | 15,429 | | | | 15,375 | | | | 15,320 | Lease liabilities - operating leases | | 22,513 | | | | 23,836 | | | | 24,379 | | | | 24,800 | | | | 26,066 | Accrued interest and other liabilities | | 23,722 | | | | 29,864 | | | | 33,566 | | | | 44,400 | | | | 36,422 | Total liabilities | | 3,717,053 | | | | 3,739,825 | | | | 3,663,258 | | | | 3,684,884 | | | | 3,694,120 | Shareholders' equity: | | | | | | | | | Common stock | | 248,374 | | | | 250,590 | | | | 251,050 | | | | 250,694 | | | | 250,362 | Additional paid-in capital | | 3,199 | | | | 3,004 | | | | 3,649 | | | | 3,941 | | | | 3,734 | Retained earnings | | 303,994 | | | | 296,119 | | | | 290,566 | | | | 282,024 | | | | 274,608 | Non-controlling interest | | 72 | | | | 72 | | | | 72 | | | | 72 | | | | 72 | Accumulated other comprehensive loss, net | | (21,396 | ) | | | (14,608 | ) | | | (14,283 | ) | | | (13,321 | ) | | | (14,441 | ) Total shareholders' equity | | 534,243 | | | | 535,177 | | | | 531,054 | | | | 523,410 | | | | 514,335 | Total liabilities and shareholders' equity | $ | 4,251,296 | | | $ | 4,275,002 | | | $ | 4,194,312 | | | $ | 4,208,294 | | | $ | 4,208,455 | RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except share and per share data) | For the Three Months Ended | | For the Nine Months Ended | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | September 30, 2026 | | September 30, 2025 Interest and dividend income: | | | | | | | | | | | | | Interest and fees on loans | $ | 52,200 | | | $ | 50,663 | | | $ | 50,094 | | | $ | 152,801 | | | $ | 143,402 | Interest on interest-earning deposits | | 2,296 | | | | 1,708 | | | | 2,140 | | | | 5,887 | | | | 5,904 | Interest on investment securities | | 4,027 | | | | 4,259 | | | | 4,592 | | | | 12,255 | | | | 12,941 | Dividend income on FHLB stock | | 539 | | | | 222 | | | | 327 | | | | 1,521 | | | | 981 | Interest on federal funds sold and other | | 245 | | | | 307 | | | | 239 | | | | 805 | | | | 705 | Total interest and dividend income | | 59,307 | | | | 57,159 | | | | 57,392 | | | | 173,269 | | | | 163,933 | Interest expense: | | | | | | | | | | | | | Interest on savings deposits, NOW and money market accounts | | 9,045 | | | | 9,197 | | | | 4,674 | | | | 25,589 | | | | 13,709 | Interest on time deposits | | 14,783 | | | | 14,397 | | | | 20,152 | | | | 45,401 | | | | 58,486 | Interest on long-term debt and subordinated debentures | | 1,749 | | | | 2,428 | | | | 1,635 | | | | 5,776 | | | | 4,901 | Interest on FHLB advances | | 1,969 | | | | 1,051 | | | | 1,654 | | | | 4,153 | | | | 4,063 | Total interest expense | | 27,546 | | | | 27,073 | | | | 28,115 | | | | 80,919 | | | | 81,159 | Net interest income before provision for credit losses | | 31,761 | | | | 30,086 | | | | 29,277 | | | | 92,350 | | | | 82,774 | Provision for credit losses | | 500 | | | | — | | | | 625 | | | | 300 | | | | 9,758 | Net interest income after provision for credit losses | | 31,261 | | | | 30,086 | | | | 28,652 | | | | 92,050 | | | | 73,016 | Noninterest income: | | | | | | | | | | | | | Service charges and fees | | 1,110 | | | | 1,104 | | | | 1,099 | | | | 3,246 | | | | 3,176 | Gain on sale of loans | | 89 | | | | 964 | | | | 260 | | | | 1,377 | | | | 699 | Loan servicing fees, net of amortization | | 525 | | | | 533 | | | | 564 | | | | 1,562 | | | | 1,693 | Increase in cash surrender value of life insurance | | 449 | | | | 438 | | | | 427 | | | | 1,318 | | | | 1,241 | (Loss)/gain on OREO | | — | | | | (221 | ) | | | — | | | | 669 | | | | — | Other income | | 2,932 | | | | 200 | | | | 943 | | | | 4,202 | | | | 7,257 | Total noninterest income | | 5,105 | | | | 3,018 | | | | 3,293 | | | | 12,374 | | | | 14,066 | Noninterest expense: | | | | | | | | | | | | | Salaries and employee benefits | | 11,467 | | | | 11,045 | | | | 10,600 | | | | 33,773 | | | | 32,323 | Occupancy and equipment expenses | | 2,587 | | | | 2,449 | | | | 2,425 | | | | 7,547 | | | | 7,209 | Data processing | | 1,722 | | | | 1,690 | | | | 1,805 | | | | 5,120 | | | | 5,120 | Legal and professional | | 1,306 | | | | 1,311 | | | | 1,450 | | | | 4,120 | | | | 5,869 | Office expenses | | 394 | | | | 377 | | | | 444 | | | | 1,130 | | | | 1,257 | Marketing and business promotion | | 193 | | | | 178 | | | | 252 | | | | 586 | | | | 661 | Insurance and regulatory assessments | | 743 | | | | 746 | | | | 732 | | | | 2,238 | | | | 2,171 | Core deposit premium | | 126 | | | | 127 | | | | 172 | | | | 387 | | | | 516 | Other expenses | | 1,010 | | | | 1,099 | | | | 803 | | | | 2,927 | | | | 2,572 | Total noninterest expense | | 19,548 | | | | 19,022 | | | | 18,683 | | | | 57,828 | | | | 57,698 | Income before income taxes | | 16,818 | | | | 14,082 | | | | 13,262 | | | | 46,596 | | | | 29,384 | Income tax expense | | 4,181 | | | | 3,942 | | | | 3,114 | | | | 12,519 | | | | 7,613 | Net income | $ | 12,637 | | | $ | 10,140 | | | $ | 10,148 | | | $ | 34,077 | | | $ | 21,771 | | | | | | | | | | | | | | Net income per share | | | | | | | | | | | | | Basic | $ | 0.75 | | | $ | 0.60 | | | $ | 0.59 | | | $ | 2.01 | | | $ | 1.24 | Diluted | $ | 0.74 | | | $ | 0.59 | | | $ | 0.59 | | | $ | 1.99 | | | $ | 1.24 | Cash dividends declared per common share | $ | 0.16 | | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.48 | | | $ | 0.48 | Weighted-average common shares outstanding | | | | | | | | | | | | | Basic | | 16,910,452 | | | | 17,011,624 | | | | 17,225,702 | | | | 16,994,716 | | | | 17,564,835 | Diluted | | 17,027,686 | | | | 17,141,742 | | | | 17,301,627 | | | | 17,114,113 | | | | 17,621,599 | RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited) | For the Three Months Ended | September 30, 2026 | | June 30, 2026 | | September 30, 2025 (tax-equivalent basis, dollars in thousands) | Average Balance | | Interest & Fees | | Yield / Rate | | Average Balance | | Interest & Fees | | Yield / Rate | | Average Balance | | Interest & Fees | | Yield / Rate | | | | | | | Interest-earning assets | | | | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents (1) | $ | 253,494 | | | $ | 2,541 | | | 3.98 | % | | $ | 194,256 | | | $ | 2,015 | | | 4.16 | % | | $ | 202,317 | | | $ | 2,380 | | | 4.67 | % FHLB Stock | | 15,000 | | | | 539 | | | 14.26 | % | | | 15,000 | | | | 222 | | | 5.94 | % | | | 15,000 | | | | 327 | | | 8.65 | % Securities | | | | | | | | | | | | | | | | | | | | | | | Available for sale (2) | | 388,267 | | | | 4,013 | | | 4.10 | % | | | 419,191 | | | | 4,245 | | | 4.06 | % | | | 429,936 | | | | 4,578 | | | 4.22 | % Held to maturity (2) | | 4,180 | | | | 38 | | | 3.61 | % | | | 4,182 | | | | 38 | | | 3.64 | % | | | 4,186 | | | | 38 | | | 3.60 | % Total loans (3) | | 3,326,368 | | | | 52,200 | | | 6.23 | % | | | 3,315,864 | | | | 50,663 | | | 6.13 | % | | | 3,245,193 | | | | 50,094 | | | 6.12 | % Total interest-earning assets | | 3,987,309 | | | $ | 59,331 | | | 5.90 | % | | | 3,948,493 | | | $ | 57,183 | | | 5.81 | % | | | 3,896,632 | | | $ | 57,417 | | | 5.85 | % Total noninterest-earning assets | | 279,828 | | | | | | | | | 262,546 | | | | | | | | | 255,052 | | | | | | Total average assets | $ | 4,267,137 | | | | | | | | $ | 4,211,039 | | | | | | | | $ | 4,151,684 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | NOW | $ | 91,562 | | | $ | 549 | | | 2.38 | % | | $ | 83,681 | | | $ | 478 | | | 2.29 | % | | $ | 69,800 | | | $ | 406 | | | 2.31 | % Money market | | 585,542 | | | | 4,513 | | | 3.06 | % | | | 556,084 | | | | 4,189 | | | 3.02 | % | | | 491,561 | | | | 3,861 | | | 3.12 | % Savings deposits | | 521,545 | | | | 3,983 | | | 3.03 | % | | | 589,187 | | | | 4,529 | | | 3.08 | % | | | 138,344 | | | | 407 | | | 1.17 | % Time deposits, $250,000 and under | | 796,245 | | | | 7,011 | | | 3.49 | % | | | 837,026 | | | | 7,322 | | | 3.51 | % | | | 1,050,682 | | | | 10,312 | | | 3.89 | % Time deposits, greater than $250,000 | | 826,196 | | | | 7,772 | | | 3.73 | % | | | 768,027 | | | | 7,076 | | | 3.70 | % | | | 960,094 | | | | 9,840 | | | 4.07 | % Total interest-bearing deposits | | 2,821,090 | | | | 23,828 | | | 3.35 | % | | | 2,834,005 | | | | 23,594 | | | 3.34 | % | | | 2,710,481 | | | | 24,826 | | | 3.63 | % FHLB advances | | 197,174 | | | | 1,969 | | | 3.96 | % | | | 116,813 | | | | 1,051 | | | 3.61 | % | | | 185,217 | | | | 1,654 | | | 3.54 | % Long-term debt | | 80,000 | | | | 1,434 | | | 7.11 | % | | | 120,000 | | | | 2,118 | | | 7.08 | % | | | 119,752 | | | | 1,295 | | | 4.29 | % Subordinated debentures | | 15,502 | | | | 315 | | | 8.06 | % | | | 15,448 | | | | 310 | | | 8.05 | % | | | 15,284 | | | | 340 | | | 8.83 | % Total borrowings | | 292,676 | | | | 3,718 | | | 5.04 | % | | | 252,261 | | | | 3,479 | | | 5.53 | % | | | 320,253 | | | | 3,289 | | | 4.07 | % Total interest-bearing liabilities | | 3,113,766 | | | | 27,546 | | | 3.51 | % | | | 3,086,266 | | | | 27,073 | | | 3.52 | % | | | 3,030,734 | | | | 28,115 | | | 3.68 | % Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | Noninterest-bearing deposits | | 564,033 | | | | | | | | | 535,756 | | | | | | | | | 541,083 | | | | | | Other noninterest-bearing liabilities | | 52,345 | | | | | | | | | 56,608 | | | | | | | | | 66,993 | | | | | | Total noninterest-bearing liabilities | | 616,378 | | | | | | | | | 592,364 | | | | | | | | | 608,076 | | | | | | Shareholders' equity | | 536,993 | | | | | | | | | 532,409 | | | | | | | | | 512,874 | | | | | | Total liabilities and shareholders' equity | $ | 4,267,137 | | | | | | | | $ | 4,211,039 | | | | | | | | $ | 4,151,684 | | | | | | Net interest income / interest rate spreads | | | | $ | 31,785 | | | 2.39 | % | | | | | $ | 30,110 | | | 2.29 | % | | | | | $ | 29,302 | | | 2.17 | % Net interest margin | | | | | | | 3.16 | % | | | | | | | | 3.06 | % | | | | | | | | 2.98 | % | | | | | | | | | | | | | | | | | | | | | | | Total cost of deposits | $ | 3,385,123 | | | $ | 23,828 | | | 2.79 | % | | $ | 3,369,761 | | | $ | 23,594 | | | 2.81 | % | | $ | 3,251,564 | | | $ | 24,826 | | | 3.03 | % Total cost of funds | $ | 3,677,799 | | | $ | 27,546 | | | 2.97 | % | | $ | 3,622,022 | | | $ | 27,073 | | | 3.00 | % | | $ | 3,571,817 | | | $ | 28,115 | | | 3.12 | % _____________________________ | (1) | Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets. | (2) | Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis. | (3) | Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments. | | RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited) | For the Nine Months Ended September 30, | 2026 | | 2025 | Average | | Interest | | Yield / | | Average | | Interest | | Yield / (tax-equivalent basis, dollars in thousands) | Balance | | & Fees | | Rate | | Balance | | & Fees | | Rate Interest-earning assets | | | | | | | | | | | | | | | Cash and cash equivalents (1) | $ | 221,364 | | | $ | 6,692 | | | 4.04 | % | | $ | 186,827 | | | $ | 6,609 | | | 4.73 | % FHLB Stock | | 15,000 | | | | 1,521 | | | 13.56 | % | | | 15,000 | | | | 981 | | | 8.74 | % Securities | | | | | | | | | | | | | | | Available for sale (2) | | 403,963 | | | | 12,214 | | | 4.04 | % | | | 406,655 | | | | 12,880 | | | 4.23 | % Held to maturity (2) | | 4,182 | | | | 113 | | | 3.61 | % | | | 4,797 | | | | 135 | | | 3.76 | % Total loans (3) | | 3,312,910 | | | | 152,801 | | | 6.17 | % | | | 3,165,937 | | | | 143,402 | | | 6.06 | % Total interest-earning assets | | 3,957,419 | | | $ | 173,341 | | | 5.86 | % | | | 3,779,216 | | | $ | 164,007 | | | 5.80 | % Total noninterest-earning assets | | 270,171 | | | | | | | | | 256,509 | | | | | | Total average assets | $ | 4,227,590 | | | | | | | | $ | 4,035,725 | | | | | | | | | | | | | | | | | | | | | Interest-bearing liabilities | | | | | | | | | | | | | | | NOW | $ | 83,026 | | | $ | 1,425 | | | 2.29 | % | | $ | 65,957 | | | $ | 1,095 | | | 2.22 | % Money market | | 557,087 | | | | 12,497 | | | 3.00 | % | | | 479,328 | | | | 11,260 | | | 3.14 | % Savings deposits | | 517,579 | | | | 11,667 | | | 3.01 | % | | | 144,895 | | | | 1,354 | | | 1.25 | % Time deposits, $250,000 and under | | 852,689 | | | | 22,645 | | | 3.55 | % | | | 1,012,408 | | | | 30,126 | | | 3.98 | % Time deposits, greater than $250,000 | | 813,265 | | | | 22,756 | | | 3.74 | % | | | 916,162 | | | | 28,360 | | | 4.14 | % Total interest-bearing deposits | | 2,823,646 | | | | 70,990 | | | 3.36 | % | | | 2,618,750 | | | | 72,195 | | | 3.69 | % FHLB advances | | 148,242 | | | | 4,153 | | | 3.75 | % | | | 173,810 | | | | 4,063 | | | 3.13 | % Long-term debt | | 106,502 | | | | 4,841 | | | 6.08 | % | | | 119,658 | | | | 3,887 | | | 4.34 | % Subordinated debentures | | 15,449 | | | | 935 | | | 8.09 | % | | | 15,230 | | | | 1,014 | | | 8.90 | % Total borrowings | | 270,193 | | | | 9,929 | | | 4.91 | % | | | 308,698 | | | | 8,964 | | | 3.88 | % Total interest-bearing liabilities | | 3,093,839 | | | | 80,919 | | | 3.50 | % | | | 2,927,448 | | | | 81,159 | | | 3.71 | % Noninterest-bearing liabilities | | | | | | | | | | | | | | | Noninterest-bearing deposits | | 542,119 | | | | | | | | | 529,190 | | | | | | Other noninterest-bearing liabilities | | 58,677 | | | | | | | | | 66,142 | | | | | | Total noninterest-bearing liabilities | | 600,796 | | | | | | | | | 595,332 | | | | | | Shareholders' equity | | 532,955 | | | | | | | | | 512,945 | | | | | | Total liabilities and shareholders' equity | $ | 4,227,590 | | | | | | | | $ | 4,035,725 | | | | | | Net interest income / interest rate spreads | | | | $ | 92,422 | | | 2.36 | % | | | | | $ | 82,848 | | | 2.09 | % Net interest margin | | | | | | | 3.12 | % | | | | | | | | 2.93 | % | | | | | | | | | | | | | | | Total cost of deposits | $ | 3,365,765 | | | $ | 70,990 | | | 2.82 | % | | $ | 3,147,940 | | | $ | 72,195 | | | 3.07 | % Total cost of funds | $ | 3,635,958 | | | $ | 80,919 | | | 2.98 | % | | $ | 3,456,638 | | | $ | 81,159 | | | 3.14 | % _____________________________ | (1) | Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets. | (2) | Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis. | (3) | Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments. | | RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) | At or for the Three Months Ended | | At or for the Nine Months Ended September 30, | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | 2026 | | 2025 Per share data (common stock) | | | | | | | | | Book value | $ | 31.75 | | | $ | 31.51 | | | $ | 30.18 | | | $ | 31.75 | | | $ | 30.18 | Tangible book value (1) | $ | 27.44 | | | $ | 27.23 | | | $ | 25.89 | | | $ | 27.44 | | | $ | 25.89 | Performance ratios | | | | | | | | | Return on average assets, annualized | | 1.17 | % | | | 0.97 | % | | | 0.97 | % | | | 1.08 | % | | | 0.72 | % Return on average shareholders' equity, annualized | | 9.34 | % | | | 7.64 | % | | | 7.85 | % | | | 8.55 | % | | | 5.67 | % Return on average tangible common equity, annualized (1) | | 10.79 | % | | | 8.85 | % | | | 9.16 | % | | | 9.90 | % | | | 6.62 | % Noninterest income to average assets, annualized | | 0.47 | % | | | 0.29 | % | | | 0.31 | % | | | 0.39 | % | | | 0.47 | % Noninterest expense to average assets, annualized | | 1.82 | % | | | 1.81 | % | | | 1.79 | % | | | 1.83 | % | | | 1.91 | % Yield on average earning assets | | 5.90 | % | | | 5.81 | % | | | 5.85 | % | | | 5.86 | % | | | 5.80 | % Yield on average loans | | 6.23 | % | | | 6.13 | % | | | 6.12 | % | | | 6.17 | % | | | 6.06 | % Cost of average total deposits (2) | | 2.79 | % | | | 2.81 | % | | | 3.03 | % | | | 2.82 | % | | | 3.07 | % Cost of average interest-bearing deposits | | 3.35 | % | | | 3.34 | % | | | 3.63 | % | | | 3.36 | % | | | 3.69 | % Cost of average interest-bearing liabilities | | 3.51 | % | | | 3.52 | % | | | 3.68 | % | | | 3.50 | % | | | 3.71 | % Net interest spread | | 2.39 | % | | | 2.29 | % | | | 2.17 | % | | | 2.36 | % | | | 2.09 | % Net interest margin | | 3.16 | % | | | 3.06 | % | | | 2.98 | % | | | 3.12 | % | | | 2.93 | % Efficiency ratio (3) | | 53.02 | % | | | 57.46 | % | | | 57.36 | % | | | 55.22 | % | | | 59.58 | % Common stock dividend payout ratio | | 21.33 | % | | | 26.67 | % | | | 27.12 | % | | | 23.88 | % | | | 38.71 | % _____________________________ | (1) | Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release. | (2) | Total deposits include noninterest-bearing deposits and interest-bearing deposits. | (3) | Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income. | | RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands) | At or for the quarter ended | September 30, 2026 | | June 30, 2026 | | September 30, 2025 Credit Quality Data: | | | | | Special mention loans | $ | 24,328 | | | $ | 20,275 | | | $ | 49,349 | Special mention loans to total loans HFI | | 0.72 | % | | | 0.61 | % | | | 1.49 | % Substandard loans HFI | $ | 57,326 | | | $ | 61,529 | | | $ | 76,880 | Substandard loans HFI to total loans HFI | | 1.69 | % | | | 1.86 | % | | | 2.33 | % Loans 30-89 days past due, excluding nonperforming loans | $ | 7,229 | | | $ | 8,970 | | | $ | 6,533 | Loans 30-89 days past due, excluding nonperforming loans, to total loans | | 0.21 | % | | | 0.27 | % | | | 0.20 | % | | | | | Nonperforming loans HFI | $ | 18,835 | | | $ | 23,759 | | | $ | 45,484 | OREO (included in "accrued interest and other assets") | | 19,820 | | | | 19,820 | | | | 8,830 | Nonperforming assets | $ | 38,655 | | | $ | 43,579 | | | $ | 54,314 | Nonperforming loans to total loans HFI | | 0.55 | % | | | 0.72 | % | | | 1.38 | % Nonperforming assets to total assets | | 0.91 | % | | | 1.02 | % | | | 1.29 | % | | | | | Allowance for loan losses | $ | 44,038 | | | $ | 43,660 | | | $ | 44,892 | Allowance for loan losses to total loans HFI | | 1.30 | % | | | 1.32 | % | | | 1.36 | % Allowance for loan losses to nonperforming loans HFI | | 233.81 | % | | | 183.76 | % | | | 98.70 | % Net charge-offs | $ | 122 | | | $ | 83 | | | $ | 6,872 | Net charge-offs to average loans | | 0.01 | % | | | 0.01 | % | | | 0.84 | % | | | | | Capital ratios (1) | | | | | Tangible common equity to tangible assets (2) | | 11.05 | % | | | 11.01 | % | | | 10.67 | % Tier 1 leverage ratio | | 11.82 | % | | | 11.86 | % | | | 11.50 | % Tier 1 common capital to risk-weighted assets | | 17.87 | % | | | 18.00 | % | | | 17.28 | % Tier 1 capital to risk-weighted assets | | 18.43 | % | | | 18.57 | % | | | 17.85 | % Total capital to risk-weighted assets | | 22.05 | % | | | 23.44 | % | | | 23.64 | % _____________________________ | (1) | September 30, 2026 capital ratios are preliminary. | (2) | Non-GAAP measure. See non-GAAP reconciliations set forth at the end of this press release. | | RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) Loan Portfolio Detail | As of September 30, 2026 | | As of June 30, 2026 | | As of September 30, 2025 (dollars in thousands) | $ | | % | | $ | | % | | $ | | % Loans: | | | | | | | | | | | Single-family residential mortgages | $ | 1,761,352 | | | 51.8 | % | | $ | 1,680,635 | | | 50.8 | % | | $ | 1,650,989 | | | 50.0 | % Commercial real estate (1) | | 1,280,028 | | | 37.7 | % | | | 1,277,559 | | | 38.6 | % | | | 1,286,603 | | | 39.0 | % Construction and land development | | 154,620 | | | 4.5 | % | | | 146,273 | | | 4.4 | % | | | 159,152 | | | 4.8 | % Commercial and industrial | | 151,796 | | | 4.5 | % | | | 151,961 | | | 4.6 | % | | | 146,667 | | | 4.4 | % SBA | | 48,525 | | | 1.4 | % | | | 49,667 | | | 1.5 | % | | | 54,033 | | | 1.6 | % Other loans | | 2,893 | | | 0.1 | % | | | 3,364 | | | 0.1 | % | | | 5,133 | | | 0.2 | % Total loans held for investment | $ | 3,399,214 | | | 100.0 | % | | $ | 3,309,459 | | | 100.0 | % | | $ | 3,302,577 | | | 100.0 | % Allowance for loan losses | | (44,038 | ) | | | | | (43,660 | ) | | | | | (44,892 | ) | | Total loans held for investment, net | $ | 3,355,176 | | | | | $ | 3,265,799 | | | | | $ | 3,257,685 | | | _____________________________ | (1) | Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans. | | Deposits | As of September 30, 2026 | | As of June 30, 2026 | | As of September 30, 2025 (dollars in thousands) | $ | | % | | $ | | % | | $ | | % Deposits: | | | | | | | | | | | | | | Noninterest-bearing demand | $ | 556,848 | | | 16.4 | % | | $ | 591,556 | | | 17.5 | % | | $ | 550,488 | | | 16.4 | % Savings, NOW and money market accounts | | 1,237,657 | | | 36.5 | % | | | 1,191,198 | | | 35.1 | % | | | 721,697 | | | 21.4 | % Time deposits, $250,000 and under | | 734,757 | | | 21.6 | % | | | 736,102 | | | 21.7 | % | | | 872,463 | | | 25.9 | % Time deposits, greater than $250,000 | | 804,500 | | | 23.7 | % | | | 751,600 | | | 22.2 | % | | | 953,785 | | | 28.3 | % Wholesale deposits (1) | | 61,518 | | | 1.8 | % | | | 120,185 | | | 3.5 | % | | | 268,064 | | | 8.0 | % Total deposits | $ | 3,395,280 | | | 100.0 | % | | $ | 3,390,641 | | | 100.0 | % | | $ | 3,366,497 | | | 100.0 | % _____________________________ | (1) | Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services. | | 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 an additional tool 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 the dates indicated. (dollars in thousands, except share and per share data) | September 30, 2026 | | June 30, 2026 | | September 30, 2025 Tangible common equity: | | | | | Total shareholders' equity | $ | 534,243 | | | $ | 535,177 | | | $ | 514,335 | Adjustments | | | | | Goodwill | | (71,498 | ) | | | (71,498 | ) | | | (71,498 | ) Core deposit intangible | | (951 | ) | | | (1,078 | ) | | | (1,495 | ) Tangible common equity | $ | 461,794 | | | $ | 462,601 | | | $ | 441,342 | Tangible assets: | | | | | Total assets-GAAP | $ | 4,251,296 | | | $ | 4,275,002 | | | $ | 4,208,455 | Adjustments | | | | | Goodwill | | (71,498 | ) | | | (71,498 | ) | | | (71,498 | ) Core deposit intangible | | (951 | ) | | | (1,078 | ) | | | (1,495 | ) Tangible assets | $ | 4,178,847 | | | $ | 4,202,426 | | | $ | 4,135,462 | Common shares outstanding | | 16,827,168 | | | | 16,985,919 | | | | 17,043,897 | Common equity to assets ratio | | 12.57 | % | | | 12.52 | % | | | 12.22 | % Tangible common equity to tangible assets ratio | | 11.05 | % | | | 11.01 | % | | | 10.67 | % Book value per share | $ | 31.75 | | | $ | 31.51 | | | $ | 30.18 | Tangible book value per share | $ | 27.44 | | | $ | 27.23 | | | $ | 25.89 | 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: | Three Months Ended | | Nine Months Ended September 30, (dollars in thousands) | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | 2026 | | 2025 Net income available to common shareholders | $ | 12,637 | | | $ | 10,140 | | | $ | 10,148 | | | $ | 34,077 | | | $ | 21,771 | | | | | | | | | | Average shareholders' equity | | 536,993 | | | | 532,409 | | | | 512,874 | | | | 532,955 | | | | 512,945 | Adjustments: | | | | | | | | | Average goodwill | | (71,498 | ) | | | (71,498 | ) | | | (71,498 | ) | | | (71,498 | ) | | | (71,498 | ) Average core deposit intangible | | (1,035 | ) | | | (1,161 | ) | | | (1,608 | ) | | | (1,160 | ) | | | (1,779 | ) Adjusted average tangible common equity | $ | 464,460 | | | $ | 459,750 | | | $ | 439,768 | | | $ | 460,297 | | | $ | 439,668 | Return on average common equity, annualized | | 9.34 | % | | | 7.64 | % | | | 7.85 | % | | | 8.55 | % | | | 5.67 | % Return on average tangible common equity, annualized | | 10.79 | % | | | 8.85 | % | | | 9.16 | % | | | 9.90 | % | | | 6.62 | % 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. 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. PTPP income is calculated by subtracting noninterest expense from the sum of net interest income and noninterest income, as shown in the following table. | Three Months Ended | | Nine Months Ended September 30, (dollars in thousands) | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | 2026 | | 2025 Net interest income before provision for credit losses | $ | 31,761 | | | $ | 30,086 | | | $ | 29,277 | | | $ | 92,350 | | | $ | 82,774 | Add: Noninterest income | | 5,105 | | | | 3,018 | | | | 3,293 | | | | 12,374 | | | | 14,066 | Less: Noninterest expense | | (19,548 | ) | | | (19,022 | ) | | | (18,683 | ) | | | (57,828 | ) | | | (57,698 | ) Pre-tax pre-provision income | $ | 17,318 | | | $ | 14,082 | | | $ | 13,887 | | | $ | 46,896 | | | $ | 39,142 | | | | | | | | | | | | | | | | | | | |

RBB (RBB) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +29.83%. A quarter ago, it was expected that this bank holding company would post earnings of $0.53 per share when it actually produced earnings of $0.59, delivering a surprise of +11.32%. 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 $36.87 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 8.30%. This compares to year-ago revenues of $32.57 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 24.8% since the beginning of the year versus the S&P 500's gain of 11.9%. 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $0.60 on $34.72 million in revenues for the coming quarter and $2.42 on $135.55 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. One other stock from the same industry, CVB Financial (CVBF), is yet to report results for the quarter ended September 2026. The results are expected to be released on October 21. This bank holding company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +18.4%. The consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. CVB Financial's revenues are expected to be $193.44 million, up 50.4% 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 CVB Financial Corporation (CVBF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RBB (RBB) reported $36.87 million in revenue for the quarter ended September 2026, representing a year-over-year increase of 13.2%. EPS of $0.74 for the same period compares to $0.59 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $34.04 million, representing a surprise of +8.3%. The company delivered an EPS surprise of +29.83%, with the consensus EPS estimate being $0.57. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. 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: - Net charge-offs to average loans: 0% versus 0.1% estimated by three analysts on average. - Efficiency Ratio: 53% compared to the 55.3% average estimate based on three analysts. - Net interest margin: 3.2% versus 3.1% estimated by three analysts on average. - Tier 1 risk-based capital ratio: 18.4% compared to the 18.2% average estimate based on two analysts. - Tier 1 leverage ratio: 11.8% versus the two-analyst average estimate of 12%. - Total risk-based capital ratio: 22.1% compared to the 23.5% average estimate based on two analysts. - Net interest income before provision for credit losses: $31.76 million versus $31.09 million estimated by three analysts on average. - Gain on sale of loans: $0.09 million versus $0.57 million estimated by three analysts on average. - Total noninterest income: $5.11 million versus the three-analyst average estimate of $2.84 million. - Net interest income/interest rate spreads (tax-equivalent basis): $31.79 million compared to the $31.4 million average estimate based on two analysts. - Loan servicing fees, net of amortization: $0.53 million compared to the $0.54 million average estimate based on two analysts. - Increase in cash surrender value of life insurance: $0.45 million versus $0.44 million estimated by two analysts on average. View all Key Company Metrics for RBB here>>> Shares of RBB have returned -3.6% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with 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

Wall Street expects a year-over-year increase in earnings on higher revenues when Cathay General (CATY) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 21, 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 the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This holding company for Cathay Bank is expected to post quarterly earnings of $1.44 per share in its upcoming report, which represents a year-over-year change of +27.4%. Revenues are expected to be $228.21 million, up 8.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 13.06% 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 Cathay, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.54%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Cathay will most likely 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 Cathay would post earnings of $1.33 per share when it actually produced earnings of $1.37, delivering a surprise of +3.01%. Over the last four quarters, the company has beaten consensus EPS estimates three 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. Cathay appears 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. Among the stocks in the Zacks Banks - West industry, RBB (RBB), is soon expected to post earnings of $0.57 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -3.4%. This quarter's revenue is expected to be $34.07 million, up 4.6% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for RBB has been revised 0.3% down to the current level. Nevertheless, the company now has an Earnings ESP of -6.61%, reflecting a lower Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that RBB will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. 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 Cathay General Bancorp (CATY) : Free Stock Analysis Report RBB Bancorp (RBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

In its upcoming report, RBB (RBB) is predicted by Wall Street analysts to post quarterly earnings of $0.57 per share, reflecting a decline of 3.4% compared to the same period last year. Revenues are forecasted to be $34.07 million, representing a year-over-year increase of 4.6%. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective. In light of this perspective, let's dive into the average estimates of certain RBB metrics that are commonly tracked and forecasted by Wall Street analysts. The consensus estimate for 'Efficiency Ratio' stands at 55.3%. The estimate is in contrast to the year-ago figure of 57.4%. Based on the collective assessment of analysts, 'Tier 1 risk-based capital ratio' should arrive at 18.2%. Compared to the present estimate, the company reported 17.9% in the same quarter last year. Analysts forecast 'Tier 1 leverage ratio' to reach 12.0%. The estimate compares to the year-ago value of 11.5%. It is projected by analysts that the 'Total risk-based capital ratio' will reach 23.5%. The estimate compares to the year-ago value of 23.6%. The collective assessment of analysts points to an estimated 'Total noninterest income' of $2.84 million. The estimate compares to the year-ago value of $3.29 million. The combined assessment of analysts suggests that 'Net interest income before provision for credit losses' will likely reach $31.09 million. Compared to the present estimate, the company reported $29.28 million in the same quarter last year. View all Key Company Metrics for RBB here>>> Shares of RBB have experienced a change of -3.9% in the past month compared to the +2.1% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), RBB is expected to mirror the overall market performance in the near future. 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