RBB Bancorp shares jump as earnings beat expectations

Published 21/07/2025, 21:42
RBB Bancorp shares jump as earnings beat expectations

Investing.com -- RBB Bancorp (NASDAQ:RBB) reported second-quarter earnings that significantly exceeded analyst expectations, driving shares up 4.5% as the company benefited from stronger loan growth and a one-time tax credit.

The California-based bank reported earnings per share of $0.52 for the second quarter of 2025, beating analyst estimates of $0.36 by 44%. Revenue came in at $35.8 million, well above the consensus estimate of $29.62 million. The quarter’s results were boosted by a $5.2 million Employee Retention Credit, which was partially offset by $1.2 million in related professional costs.

Net interest income increased to $27.3 million, up from $26.2 million in the previous quarter, while the net interest margin expanded to 2.92% from 2.88%. The bank reported net loan growth of $91.6 million, representing a 12% annualized increase, with new loan production averaging a yield of 6.76%.

"Another quarter of strong loan growth and stable loan yields drove increasing net interest income and margin expansion in the second quarter," said Johnny Lee, President and CEO of RBB Bancorp. "We continue to work through our nonperforming assets and remain focused on resolving our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital."

Credit quality showed some improvement, with nonperforming assets decreasing by $3.6 million, or 5.5%, to $61.0 million compared to the previous quarter. However, special mention loans increased to $91.3 million from $64.3 million, and 30-89 day delinquent loans rose to $18.0 million from $5.9 million.

The bank’s board declared a quarterly cash dividend of $0.16 per share, payable on August 12, 2025, to shareholders of record on July 31, 2025.

Book value per share increased to $29.25 at the end of the quarter, up from $28.77 in the previous quarter and $28.12 YoY.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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