RBB Bancorp (RBB) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 was $10.2 million ($0.59 per share), up 132% year-over-year and stable sequentially, with full-year net income at $31.9 million ($1.83 per share), up 24.5% from 2024.

• Annual loan growth reached 8.6%, with originations up 32% year-over-year and a healthy pipeline supporting optimism for continued high single-digit growth in 2026.

• Deposit growth was robust at 8.6–9% year-over-year, driven by retail and business relationships, supporting loan growth and reducing reliance on FHLB advances.

• Asset quality improved, with nonperforming loans down 45% and nonperforming assets down 34% year-over-year.

• Tangible book value per share rose 7.8% to $26.42, with over $25 million returned to shareholders via dividends and buybacks.

Financial highlights

• Net interest income for Q4 2025 was $29.5 million, up 13.6% year-over-year; full-year net interest income grew 13% to $112.3 million.

• Net interest margin for Q4 was 2.99%, up 23 bps year-over-year; full-year NIM was 2.95%.

• Pre-tax, pre-provision income for Q4 2025 was $13.4 million, up 21% year-over-year; full-year PTPP income rose 15.3%.

• Efficiency ratio improved to 58.7% in Q4 2025 and 59.36% for the year.

• Loans held for investment grew $261.1 million (8.6%) year-over-year.

Outlook and guidance

• Management expects continued high single-digit loan growth and incremental improvement in deposit costs in 2026, though competition remains intense.

• First quarter expenses will rise due to seasonal factors, then stabilize at $18–$19 million per quarter.

• Effective tax rate for 2026 is expected between 27% and 28%; 2025 effective tax rate was 24.2%.

• Ongoing resolution of non-performing assets is expected to further improve credit metrics and support NIM expansion.

• Management remains optimistic about future quarters and credit quality improvement.