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LOS ANGELES - RBB Bancorp (NASDAQ: RBB), along with its subsidiaries Royal Business Bank and RBB Asset Management Company, announced the authorization of a stock repurchase plan. The plan allows for the repurchase of up to $18 million of the company’s outstanding common stock through June 30, 2026. This move aligns with management’s recent share buyback strategy, as identified by InvestingPro analysis, and represents approximately 6% of the company’s current market capitalization of $291 million.
The repurchases can be conducted in open market or private transactions, including block trades, and may follow a trading plan in accordance with SEC Rules 10b5-1 and 10b-18. However, the company clarified that the repurchase plan could be altered, suspended, or terminated at any time based on various factors such as market conditions, share price, alternative investment opportunities, and liquidity.
RBB Bancorp, a community-based financial holding company headquartered in Los Angeles, reported total assets of $4.0 billion as of March 31, 2025. The bank operates 24 full-service branches across six states, providing services such as remote deposit, E-banking, mobile banking, and a variety of loan and depository account products, as well as wealth management services. Trading at a price-to-book ratio of 0.57 and offering a 3.93% dividend yield, which it has maintained for 9 consecutive years, the stock appears slightly overvalued according to InvestingPro Fair Value metrics. For deeper insights into RBB’s valuation and 7 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
The repurchase plan does not obligate RBB Bancorp to acquire any specific number of shares, and the timing and volume of repurchases will depend on several factors. This announcement comes as the stock has experienced a significant 30% decline over the past six months, currently trading at $16.42.
The announcement is based on a press release statement from RBB Bancorp, which also contains forward-looking statements regarding the company’s plans and potential future financial performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from projections. The company does not undertake any obligation to update forward-looking statements after the date of the press release, except as required by law.
In other recent news, RBB Bancorp reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.13, which fell short of the forecasted $0.38. The company’s revenue also slightly missed expectations, coming in at $28.46 million against a forecast of $28.98 million. Despite the earnings miss, RBB Bancorp demonstrated resilience with a net income of $2.3 million and an increase in net interest income for the third consecutive quarter, reaching $26.2 million. The bank also saw strong loan growth, with total loan originations amounting to $211 million at a 6.77% blended yield. Analysts from firms such as Hovde Group and Piper Sandler engaged in discussions about the company’s potential for share repurchases and the impact of trade tariffs, with management confirming that share repurchases are being actively considered. Additionally, RBB Bancorp’s total deposits rose at an 8% annualized rate, reaching $3.14 billion, and the company reduced non-performing assets by 20%. Looking ahead, RBB Bancorp anticipates continued loan growth and a reduction in funding costs, while targeting a resolution of non-performing loans by the second half of 2025.
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