RBB Bancorp (RBB) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $9.3 million ($0.52 per share), up from $2.3 million in Q1 2025, aided by a $5.2 million Employee Retention Credit (ERC) refund and strong loan growth.

• Adjusted net income, excluding the tax credit and related fees, was $6.5 million ($0.36 per share).

• Tangible book value per share increased to $25.11, and book value per share rose to $29.25 at June 30, 2025.

• Return on average assets rose to 0.93% and return on average equity to 7.29% in Q2 2025.

• Quarterly cash dividend of $0.16 per share declared, payable August 12, 2025.

Financial highlights

• Net interest income for Q2 2025 was $27.3 million, up from $26.2 million in Q1 2025 and $24.0 million in Q2 2024.

• Net interest margin expanded to 2.92% in Q2 2025, up from 2.88% in Q1 2025 and 2.67% in Q2 2024.

• Efficiency ratio improved to 57.22% in Q2 2025 from 65.09% in Q1 2025.

• Noninterest income surged to $8.5 million in Q2 2025, mainly due to the ERC refund.

• Noninterest expense was $20.5 million in Q2 2025, up from $18.5 million in Q1 2025, driven by higher legal/professional and compensation costs.

Outlook and guidance

• Loan growth expected to continue, though at a more moderate pace in the second half.

• Management expects the recent change in California tax law to reduce the annual effective tax rate in future periods.

• Non-interest expenses projected to normalize to an $18 million annualized run rate.

• Focus remains on credit quality, liquidity, and capital adequacy.

• Anticipated increase in loan sale activity in the second half to manage loan-to-deposit ratio.