RBB Bancorp (RBB) closed FY 2025 with fourth quarter total revenue of US$31.7 million and basic EPS of US$0.60, setting the tone for how investors may look at the year just finished. Over the past few quarters, total revenue has moved from US$22.7 million in Q4 2024 to US$31.7 million in Q4 2025, while basic EPS has shifted from US$0.25 to US$0.60 across the same stretch, giving you a clear view of how the top line and per share earnings have tracked into the latest release. With that backdrop, the focus now turns to whether the bank's margins and profitability profile line up with the story investors have been telling themselves about RBB.
See our full analysis for RBB Bancorp.With the headline numbers on the table, the next step is to stack them against the most common narratives around RBB to see which views the results back up and which may need a rethink.
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Margins and costs steady around 57%
- Across FY 2025, RBB’s reported cost to income ratio sat around the high 50s, at 57.36% in Q3 2025 and 57.22% in Q2 2025, compared with 60.3% on a trailing basis in Q4 2024.
- What stands out for the bullish view is that profitability metrics are lining up with the reported 26.9% trailing net margin, up from 25.4%, even while expenses stay a little above half of income.
- Supporters pointing to 19.8% earnings growth over the last year can reference that this happened while the quarterly cost to income ratio held near the mid to high 50% range rather than at the higher 65.09% seen in Q1 2025.
- This combination of a mid 20s net margin and a P/E of 11.4x, slightly below the 11.8x US Banks industry and well below the 38.1x peer average, is the type of setup bullish investors often highlight.
Credit quality: non performing loans ease
- Non performing loans were reported at US$81.0 million in Q4 2024, then at US$60.7 million in Q3 2024 on a trailing basis, and US$45.5 million in Q3 2025 on a quarterly basis, with the allowance for bad loans noted at 99% of that exposure.
- Bears often focus on credit risk, and the commentary about a below 100% allowance for bad loans gives them data to work with even as the reported non performing loan balances move from higher levels in late 2024 to lower figures in 2025.
- Critics highlight that a 99% allowance is described as low provisioning, which they see as a risk factor alongside the longer term 12.5% per year earnings decline over five years.
- At the same time, the shift from US$81.0 million of non performing loans in Q4 2024 to US$45.5 million by Q3 2025 shows that the raw problem loan balance has been smaller in recent quarters, which challenges the most cautious interpretations of the credit story.
Earnings growth vs longer term drag
- On a trailing basis, RBB reported Basic EPS of US$1.83 and net income of US$31.9 million in Q4 2025, compared with Basic EPS of US$1.47 and net income of US$26.7 million a year earlier, while five year earnings are described as having declined by 12.5% per year.
- Investors weighing the optimistic angle against the more cautious one can see a clear tension between the 19.8% earnings growth over the last year and that longer term decline in earnings.
- Supporters of the optimistic view point to low double digit forecasts, with revenue growth of 11.4% per year and earnings growth of 10.9% per year, as consistent with the recent trailing EPS and net income figures.
- More cautious investors counter that the unstable dividend record and that 12.5% per year earnings decline over five years make the recent year of growth something to track carefully, especially with the stock at US$21.41 versus a DCF fair value of about US$32.62.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on RBB Bancorp's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
See What Else Is Out There
RBB’s recent uptick in earnings sits alongside a 12.5% per year earnings decline over five years and an unstable dividend record that some investors may question.
If that longer term drag and patchy income stream concern you, shift your attention to stable growth stocks screener (2179 results) and focus on companies built around steadier, more predictable earnings profiles.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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