RBB Bancorp (RBB) Stock Forecast & Price Target

RBB Bancorp is demonstrating an encouraging improvement in its core earnings power, as evidenced by a sequential increase in net interest income (NII) of 5.8% and an expansion of net interest margin (NIM) to 2.76%. The company has successfully reduced deposit costs by 33 basis points, while average non-interest-bearing deposits grew by 2.2%, indicating strong operational efficiency. Despite a negative migration to non-performing assets, RBB Bancorp is poised for positive earnings per share (EPS) growth resumption in 2025, with accelerating progress anticipated in 2026, supported by a robust common equity tier 1 (CET1) capital ratio of 17.9%.

RBB Bancorp has experienced a 5% decline in loan balances on a last quarter annualized basis, along with a reduction in net interest income outlook, leading to lowered earnings estimates of $1.57 to $1.90 per share. The company's elevated level of non-performing assets (NPAs) continues to pose a challenge, likely creating a persistent overhang on stock performance as it undergoes a workout process. Furthermore, the risks related to increased credit costs, reduced loan demand, and margin pressure, combined with the challenges of potential mergers and acquisitions, further contribute to a negative outlook for the stock.