Earnings Overview
RBB Bancorp (NASDAQ:RBB) reported second‑quarter adjusted earnings per share of $0.59, surpassing analyst consensus of $0.53 by $0.06. Net income for the quarter ended June 30, 2026, was $10.1 million, down from $11.3 million in the prior quarter, and the stock fell 0.6% in after‑hours trading.
Net Interest Income and Margin
Net interest income declined to $30.1 million from $30.5 million in the first quarter, primarily because interest expense rose by $773,000. The expense increase stemmed from the repricing of subordinated notes from 4.00% to 6.98% effective April 1, 2026. Consequently, the net interest margin compressed by nine basis points to 3.06% from 3.15%.
Credit Quality
The bank’s credit quality improved, with non‑performing assets falling $5.3 million (a 10.8% reduction) to $43.6 million versus the prior quarter. Non‑performing loans decreased to $23.8 million, representing 0.72% of total loans, down from $44.6 million or 1.34% at March 31, 2026.
Deposit Growth
Total deposits increased by $50.8 million, an annualized growth rate of 6.1%, reaching $3.4 billion at June 30, 2026. Retail deposits contributed a $94.4 million rise. Non‑interest‑bearing deposits grew to $591.6 million, accounting for 17.5% of total deposits.
Shareholder Returns and Capital Actions
The Board declared a quarterly cash dividend of $0.16 per common share, payable on August 11, 2026 to shareholders of record on July 31, 2026. On July 1, 2026, RBB Bancorp completed a partial redemption of $40.0 million of its subordinated notes, leaving $80.0 million outstanding. Additionally, the Board approved a new stock repurchase program authorizing the buyback of up to 1 million shares through June 30, 2028.
Management Commentary
President and Chief Executive Officer Johnny Lee stated that the results reflected the continued strength of the core banking franchise, citing stable loan yields, strong loan originations, and ongoing growth in retail deposits as drivers of solid profitability.