RBB Bancorp (RBB) investor relations material

Executive summary

• Net income for Q1 2026 was $11.3 million ($0.66 per diluted share), up 11% sequentially and 393% year-over-year, marking the highest in two years and driven by higher net interest income, lower credit costs, and increased noninterest income.

• Pre-tax pre-provision income reached $15.5 million, up 16% sequentially and 56% year-over-year.

• Return on average assets improved to 1.09% from 0.96% in the prior quarter.

• Net interest margin expanded for the fifth consecutive quarter, reaching 3.15% from 2.99% in the prior quarter.

• Nonperforming assets declined 9% sequentially and 24% year-over-year to $48.8 million.

Financial highlights

• Net interest income was $30.5 million, up $1 million sequentially and 17% year-over-year, despite a shorter quarter.

• Noninterest income rose $1.4 million to $4.3 million, driven by OREO gains, loan recoveries, and tax refund interest.

• Noninterest expense increased to $19.3 million, mainly from higher payroll taxes, salaries, and benefits.

• Efficiency ratio improved to 55.41% from 58.69% in Q4 2025 and 65.09% in Q1 2025.

• Book value per share was $31.10; tangible book value per share rose to $26.84, up 2% sequentially and 9% year-over-year.

Outlook and guidance

• Management expects continued focus on disciplined loan growth, deposit gathering, and credit quality improvement to enhance shareholder value through 2026.

• Noninterest expense is expected to remain in the $18 to mid-$19 million range for upcoming quarters.

• Loan growth for the year is projected in the mid to high single digits, with a healthy pipeline and seasonal acceleration expected.

• Net interest margin is expected to normalize just above 3%, with further modest expansion possible.

• Estimated effective tax rate for 2026 is 28.0%, higher than 2025's 24.2%.