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In a challenging economic climate, RBB Bancorp (NASDAQ:RBB)’s stock has marked a new 52-week low, dipping to $16.38. This latest price level reflects the ongoing volatility in the banking sector, as investors weigh various market pressures. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, with the price dropping over 23% in the past six months. Despite the downward trend, RBB Bancorp has experienced a relatively stable year-over-year performance, with a marginal 1-year change of just -0.06%. This suggests that while the stock has faced recent headwinds, its overall value has remained largely resilient in the face of broader market fluctuations. The company maintains a healthy 3.81% dividend yield and trades at a P/E ratio of 11.49. Investors are closely monitoring the company’s fundamentals and sector trends to gauge the potential for recovery or further lows. InvestingPro subscribers can access additional insights, including 7 more ProTips and a comprehensive analysis of RBB Bancorp’s financial health.
In other recent news, RBB Bancorp’s fourth-quarter 2024 earnings report revealed an operational earnings per share (EPS) of $0.25, which fell short of the anticipated $0.36. However, the company’s revenue exceeded expectations, reaching $28.71 million, surpassing the forecast of $28.12 million. Analyst Andrew Terrell from Stephens revised the price target for RBB Bancorp shares to $23.00 from $25.00, maintaining an Equal Weight rating. This adjustment followed the earnings miss and a significant increase in the provision for credit losses, which rose to $6 million from $3.3 million. RBB Bancorp’s credit quality faced challenges, notably with a $26 million construction and development loan moving to non-performing status, contributing to a total of 2.65% of the bank’s loan portfolio being classified as non-performing loans.
Despite these issues, RBB Bancorp completed its previous share buyback authorization in 2024 and is expected to pursue further buybacks if there is improvement in non-performing loans. The bank’s net interest margin saw a modest increase of 8 basis points to 2.76%, with analysts predicting further expansion in the first quarter of 2025. Additionally, there was a leadership transition with Johnny Lee taking over as CEO, emphasizing a strategic focus on resolving non-performing assets by the end of 2025. Looking ahead, analysts from Stephens have revised the 2026 operational EPS estimate for RBB Bancorp to $2.02, up from the previous $1.91, reflecting a cautiously optimistic outlook.
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