RBB Bancorp Q2 Net Interest Income Drops on Higher Funding Costs
RBB sits 60% above its 52-week low of $16.74.
Summary
RBB Bancorp's Q2 net interest income fell to $30.1M from the prior quarter, driven by higher interest expense as subordinated notes repriced upward. EPS of $0.59 and net income of $10.1M also declined sequentially. The net interest margin compressed to 3.06%. Noninterest income dropped due to the absence of one-time items that boosted Q1. The company expects a higher 2026 effective tax rate of 28%, up from 24.2% in 2025, which will pressure future earnings. This follows a strong Q1 where margin expansion drove significant EPS growth; the reversal in funding costs now threatens that momentum. The new 1M share buyback plan announced in June provides some support, but the core earnings trend is deteriorating.
At the time of this announcement, RBB was trading at $26.74 on NASDAQ in the Finance sector, with a market capitalization of approximately $452.9M. The 52-week trading range was $16.74 to $28.24. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.