Company expects 2026 effective tax rate to be 28.0%, up from 24.2% in 2025
Overview
US community bank's Q2 net income and EPS declined from the prior quarter
Net interest income and margin fell due to higher interest expense and lower FHLB dividend income
On June 15, company announced new 1 mln share buyback plan
Analyst coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for RBB Bancorp is $27.00, about 0.2% below its July 17 closing price of $27.06
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
Result drivers and key details
Higher interest expense - Net interest income declined due to increased interest expense, mainly from subordinated notes repricing to a higher rate and one more day in the qtr
Lower noninterest income - Noninterest income fell due to lower gains from OREO and the absence of one-time items such as loan recoveries and tax refund interest seen in the prior qtr
RBB•
