RBB Bancorp (RBB) Stock Forecast & Price Target

RBB Bancorp is demonstrating signs of financial strength, with net interest income (NII) increasing by 5.8% quarter-over-quarter, bolstered by an 8 basis point expansion in net interest margin (NIM) to 2.76%. The company has also successfully reduced deposit costs, which contributed to a 2.2% growth in average non-interest-bearing deposits. Despite experiencing an increase in non-performing assets, RBB's core profitability is expected to improve, and positive earnings per share growth is anticipated to resume in 2025 and accelerate into 2026.

RBB Bancorp has experienced a decline in loan balances by 5% in the last quarter, contributing to a negative outlook as overall earnings estimates were lowered by 2-4%, primarily due to a reduced net interest income outlook. Additionally, the elevated levels of non-performing assets (NPAs) are anticipated to continue pressuring the company's credit profile, presenting a persistent overhang on stock performance until the resolution of these issues. The company's risk factors, including potential increases in credit costs, reduced loan demand, and margin pressures, further exacerbate the uncertainty surrounding its financial stability and future growth prospects.