RBB Bancorp's FY25 profit rises on loan growth and credit improvement

Overview

• Community bank's fiscal 2025 net income rose 19.8% yr/yr, driven by loan growth and credit improvement

• Q4 net income totaled $10.2 mln, with diluted EPS of $0.59

• Company's nonperforming assets decreased 34% yr/yr to $53.5 mln

Outlook

• Company remains optimistic about credit improvements in future quarters

Result Drivers

• NET INTEREST MARGIN - Increase driven by reduced interest expense, particularly from lower FHLB advances

• CREDIT QUALITY - Significant reduction in classified and criticized loans, indicating improved credit quality

• NONPERFORMING ASSETS - Decrease in nonperforming assets as company resolves problem loans

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for RBB Bancorp is $22.00, about 2.7% above its January 23 closing price of $21.42

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNXcgm0vf

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