From The Motley Fool · Motley Fool Transcribing · · 2m
RBB Bancorp Q3 2:26 Earnings Boost
RBB Bancorp reports 25% higher net income and 90% EPS growth as it reduces wholesale deposits to under 2% of total deposits.
In brief
RBB Bancorp reports 25% higher net income and 90% EPS growth as it reduces wholesale deposits to under 2% of total deposits. RBB Bancorp's Q3 2026 earnings show 25% higher net income and 90% EPS growth from a year ago, driven by loan growth and improved credit quality. Originally reported by The Motley Fool.
Q3 2026 Results
RBB Bancorp reported net income of $12.6 million, a 25% increase from the prior quarter.
Diluted EPS Growth
Diluted earnings per share rose to $0.74, a 90% increase over a two-year period.
Net Interest Margin
Net interest margin expanded 10 basis points to 3.16% driven by higher loan yields.
Loan Growth
Loans held for investment increased $89.8 million or 10.8% annualized from the prior quarter.
Retail Deposits
Retail deposits grew $63.3 million, reducing wholesale funding to less than 2% of total deposits.
Capital Strength
CET1 capital ratio remained at 17.9%, and tangible book value increased 6% compared to the prior year.
Share Repurchases
Share repurchases totaled $4.5 million, reducing shares outstanding by approximately 1%.
Nonperforming Assets
Nonperforming assets decreased 11.3% to $38.7 million, representing 0.91% of total assets.
Building Sale Gain
RBB reported a $2.7 million gain from the sale of an office building in Brooklyn.
Loan Originations
Loan originations reached $154 million with an average interest rate of 6.30%.
Subordinated Debt Redemption
RBB redeemed $40 million in subordinated debt on July 1, 2026, to reduce interest expense.
Credit Quality
Substandard loans declined $4.2 million primarily through payoffs and paydowns.
Efficiency Ratio
Efficiency ratio improved to 53.0% from 57.5% in the prior quarter due to higher net revenues.
Loan to Deposit Ratio
Loan to deposit ratio reached 100%, a level RBB is comfortable maintaining with current capital levels.
New LPO Operations
RBB completed its first full quarter of operations at a new loan production office in the San Francisco Bay Area.
Future Outlook
RBB expects quarterly noninterest expense to be approximately $19 million for the remainder of the year.
What it means
RBB Bancorp's Q3 2026 earnings show 25% higher net income and 90% EPS growth from a year ago, driven by loan growth and improved credit quality.
