RBB Bancorp, founded in 2008 and headquartered in Los Angeles, California, serves as the parent company for Royal Business Bank, a California state-chartered commercial bank. The bank was organized by a group of experienced bankers and has grown into a multi-state community banking platform. It focuses on relationship-based commercial banking ...RBB Bancorp, founded in 2008 and headquartered in Los Angeles, California, serves as the parent company for Royal Business Bank, a California state-chartered commercial bank. The bank was organized by a group of experienced bankers and has grown into a multi-state community banking platform. It focuses on relationship-based commercial banking for small and mid-sized businesses, entrepreneurs, and commercial real estate clients, particularly in Chinese-American, Korean-American, and other Asian-American communities. RBB offers a comprehensive suite of financial products: deposit accounts (checking, savings, money market, CDs), lending solutions (commercial and industrial lines of credit, term loans, mortgage warehouse facilities, trade finance, commercial real estate loans, construction financing, SBA loans, and residential mortgages), and international banking services (letters of credit, SWIFT transfers, export advisory, trade finance discounts, foreign exchange). Modern banking conveniences include remote deposit, online banking, and mobile banking. The bank serves a diverse clientele including individuals, businesses, municipalities, and organizations. As of December 31, 2021, RBB operated 23 branches across California, Nevada, Hawaii, New York, Illinois, and New Jersey. Financially, RBB has total assets of approximately $3.9 billion and total deposits of $3.0 billion as of December 31, 2022. The company went public in 2017 and is listed on NASDAQ under the symbol RBB. Its key people include Johnny Lee, President and CEO, who joined in June 2023, and other executives with extensive banking experience. RBB generates revenue primarily through net interest income from loans and investments, and non-interest income from fees and services. The bank has a price-to-earnings ratio of about 10.98, a price-to-book ratio of 0.852, and a dividend yield of 2.4%. RBB emphasizes community engagement and has been recognized for performance, climbing to 2nd place in S&P Global's ranking of top-performing community banks with assets between $1 billion and $10 billion. The bank aims to grow through strategic acquisitions and organic expansion while maintaining strong credit quality and customer relationships.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$238.0M
+2.6%
-1.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$31.9M
+19.8%
-10.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+49.9%
+10.5%
-3.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+17.7%
+15.1%
-9.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+13.4%
+16.8%
-9.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$42.6M
-26.2%
+14.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+17.9%
-28.1%
+16.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
60.2%
-16.2%
+9.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.13x
+12.3%
—
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Please note this conference is being recorded. I will now turn the conference over to your host, Rebeca Rico, Investor Relations. Ma'am, you may begin.
Johnny Lee: Thank you, Rebeca. Good day, everyone, and thank you for joining us today. We are pleased to report another solid quarter of earnings and continued progress across the key metrics we have been focused on. We generate net income of $10.1 million, or $0.59 per share, which represents a 13% increase from the same quarter in 2025, as we improved credit quality, grew loans and deposits, and took capital actions. While net income decreased $1.2 million compared to the prior quarter, this decrease relates mostly to REO sales during the first half of 2026, as we resolve our non-performing assets. We did make further progress on credit quality during the quarter, with non-performing assets declining 11% to 1.02% of total assets. Loan originations accelerated in the second quarter with $159 million of new loans at an average yield of 6.3%. Our lending pipelines remain healthy across the franchise, and we expect continued progress on loan growth in the second half of the year. On that note, I want to highlight an exciting development in our franchise expansion into Northern California. We recently announced the opening of a loan production office in Burlingame and hiring of a commercial banking team in the San Francisco Bay Area that will be led by John Curtis. John brings over 37 years of financial services experience, including serving as President and CEO of the Bank of the Orient, and has a strong track record of building high-performing lending organizations. The San Francisco Bay Area is home to one of the largest Asian-American communities in the United States, and we believe this team and the loan production office will help us expand our commercial banking business in a market that is a natural fit for RBB. Deposits grew $50.8 million in the quarter. Our deposit mix continued to improve, with non-interest-bearing deposits increasing to 17.5% of total deposits and continued reductions in our reliance on wholesale funding. Our steady growth in core funding, combined with our strong regulatory capital, help position us to redeem $40 million of our subordinate debt on July 1st, which will reduce interest expense in future quarters. Overall, we believe the second quarter demonstrated continued progress in improving RBB's fundamental earnings power. We are on track for a strong second half of 2026. With that, I'll hand it over to Lynn to talk about the results in more detail. Lynn?
Lynn Hopkins: Thank you, Johnny. Please feel free to refer to the investor presentation we have provided as I discuss the company's second quarter of 2026 financial performance. Net income for the second quarter was $10.1 million, or $0.59 per diluted share. This compares to $11.3 million or $0.66 per diluted share in the first quarter. $9.3 million or $0.52 per diluted share in the second quarter of …
