RBB Bancorp: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 20, 2026, RBB Bancorp (NASDAQ:RBB) reported a 25% quarterly net income increase to $12.6 million driven by higher net interest income and loan growth. The bank is expanding commercial lending and resolving legacy nonperforming assets to strengthen long-term core earning power. Three things management said stand out.

1. Commercial Lending Momentum Shifts Loan Mix Away From Residential Mortgages

Expanding into Northern California through a new loan production office (LPO)--an office dedicated to commercial loan origination without deposit-taking facilities--allows the bank to diversify into commercial and industrial (C&I) and construction loans while single-family residential (SFR) mortgage activity slows.

So, yeah, Q3, I would say, approximately 2/3 of the growth was contributed by SFRs. But we also see growth in C&I and C&D loans, so your construction loans.
-- Johnny Lee, President and Chief Executive Officer

2. Credit Quality Improvements Clear Path to Exit Legacy Problem Assets

Management continues to reduce nonperforming assets (NPAs)--loans where borrowers have stopped making scheduled interest or principal payments--and plans to divest its sole remaining real estate owned (REO) property acquired via foreclosure in Los Angeles during early 2027.

Given the size of the project, we are expecting that we will have an opportunity to exit it the first half of next year.
-- Lynn Hopkins, Chief Financial Officer

3. Loan Portfolio Repricing Offsets Pressure From Rising Deposit Costs

Although elevated deposit interest rates press liquidity costs higher in the near term, roughly two-thirds of the bank's variable-rate loans reprice within a year, helping defend net interest margin (NIM)--the spread between interest earned on assets and paid on deposits.

But the way it is getting addressed is through the repricing of our loan portfolio. But the long end of the curve is not moving up quite as aggressively, so curve seems to potentially be flattening out.
-- Lynn Hopkins, Chief Financial Officer

Looking Ahead

Commercial pipelines are gaining traction across Northern California, with leadership looking forward to finishing the year on a positive trajectory. RBB Bancorp leverages an 11.1% tangible common equity ratio and asset repricing to navigate deposit cost pressures while expanding commercial relationships.

Our pipelines remain strong across the franchise, and we expect to continue these positive trends to finish the year.
-- Johnny Lee, President and Chief Executive Officer

By keeping more loan production on the balance sheet and paring wholesale deposits below 2% of total funding, the company continues positioning itself for durable earning power.

Overall, we believe the third quarter reflected the progress we have made in improving RBB's earning power. And we are well positioned as we head into the end of 2026.
-- Johnny Lee, President and Chief Executive Officer

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