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In a challenging economic climate, RBB Bancorp (NASDAQ:RBB)’s stock has reached a 52-week low, dipping to $16.08. Trading at just 0.58 times book value and offering a 3.88% dividend yield, the community bank holding company has seen its shares decline 24.4% over the past six months. According to InvestingPro analysis, analysts see up to 27% upside potential from current levels. Investors are closely monitoring RBB Bancorp as it navigates through the current financial headwinds, assessing the company’s resilience and potential for recovery in a volatile market. The company has maintained dividend payments for 9 consecutive years, demonstrating financial stability. InvestingPro subscribers have access to 8 additional key insights about RBB Bancorp, including management’s recent share buyback activities and detailed analyst forecasts.
In other recent news, RBB Bancorp reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.25, which fell short of the forecasted $0.36. Despite this earnings miss, the company’s revenue exceeded expectations, reaching $28.71 million against a forecast of $28.12 million. The bank’s net income for the quarter was $4.4 million, and it experienced an 8 basis points increase in net interest margin to 2.76%. During the same period, RBB Bancorp faced credit quality challenges, with a $26 million construction and development loan moving to non-performing status, contributing to an increase in the provision for credit losses to $6 million.
Stephens analyst Andrew Terrell responded by lowering the price target for RBB Bancorp shares to $23.00 from $25.00, maintaining an Equal Weight rating on the stock. Despite these challenges, RBB Bancorp completed its previous share buyback authorization in 2024 and is expected to consider further buybacks if there is improvement in non-performing loans. Looking forward, growth for the company is projected to remain in the low to mid-single digits through 2025. Analysts, including those from Stephens, anticipate a solid net interest margin expansion in the first quarter due to positive certificate of deposit repricing, although stability is expected as $150 million in low-cost funds from the Federal Home Loan Banks mature in March.
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