RBB Bancorp (RBB) Stock Forecast & Price Target

RBB Bancorp has demonstrated a positive trend in its core earnings power, with net interest income (NII) showing a quarter-over-quarter expansion of 5.8% and net interest margin (NIM) increasing by 8 basis points to 2.76%. The bank's efforts to reduce deposit costs have been effective, with a notable 33 basis point decline in interest-bearing deposits, while average non-interest-bearing accounts grew by 2.2% sequentially. Despite a rise in non-performing assets, the outlook remains favorable, with expectations for earnings per share (EPS) growth to resume in 2025 and accelerate further in 2026.

RBB Bancorp is experiencing a negative outlook primarily due to a 5% decline in loan balances, which has prompted a reduction in net interest income forecasts by 2-4%. Furthermore, the elevated level of non-performing assets (NPAs) is expected to continue as a significant concern, affecting the company's core earnings power, which is projected to be 1.3% PPNRROA in 2026E, below the SMID-cap median by approximately 50 basis points. Additionally, the bank faces fundamental risks including potential increases in credit costs, reduced loan demand, and pressures on profit margins that could negatively impact overall earnings.