RBB Bancorp Reports Strong Third Quarter Earnings and Asset Quality Improvements
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LOS ANGELES, Oct. 19, 2026 /CourierPR/ -- RBB Bancorp, a financial institution based in the United States, reported its financial results for the third quarter of 2026, highlighting a series of positive developments in its operations.
For the quarter ending September 30, 2026, the company achieved a net income of $12.6 million, marking a significant increase from the $10.1 million reported in the previous quarter. This growth translated to a diluted earnings per share of $0.74, up from $0.59 in the same period last year. The improvement in earnings reflects the company's robust performance and strategic initiatives.
RBB Bancorp's return on average assets improved to 1.17% for the third quarter of 2026, a notable rise from 0.97% in the prior quarter. The net interest margin also saw a positive shift, increasing to 3.16% from 3.06% in the previous quarter. These figures underscore the bank's ability to enhance its profitability through effective management of its interest income and expenses.
Nonperforming assets, a key indicator of credit quality, decreased by $4.9 million, or 11.3%, from the prior quarter. This reduction brought the total nonperforming assets to $38.7 million, representing 0.91% of total assets. The decline in nonperforming assets indicates a strengthening of the bank's credit portfolio and improved risk management.
The company's book value and tangible book value per share also saw an increase, reaching $31.75 and $27.44, respectively, at the end of the third quarter of 2026. This growth from $31.51 and $27.23 at the end of the second quarter of 2026 reflects the bank's financial health and stability.
RBB Bancorp also benefited from a $2.7 million gain on the sale of an office building in Brooklyn, New York. This transaction not only contributed to the company's financial performance but also allowed the bank to relocate its loan operations center temporarily to the same area.
In terms of debt management, the bank completed the partial redemption of subordinated notes worth $40 million on July 1, 2026. This action further solidified the bank's financial position and reduced its reliance on short-term debt.
The net interest income for the third quarter of 2026 was $31.8 million, up from $30.1 million in the second quarter of 2026. The increase in net interest income was driven by a $2.1 million rise in interest income, partially offset by a $473,000 increase in interest expense. The interest income growth was attributed to a combination of increased loan interest income, one additional day in the quarter, and a special dividend of $320,000 from the Federal Home Loan Bank, which was not present in the previous quarter.
The bank's efficiency ratio improved to 53.0% for the third quarter of 2026, down from 57.5% in the second quarter. This improvement in the efficiency ratio is attributed to higher net revenues, indicating better operational performance.
Overall, RBB Bancorp's third quarter results reflect the continued strength of its core banking franchise. The partial redemption of subordinated notes and the resolution of nonperforming assets contributed to higher net interest income. The bank's focus on improving credit quality and funding base through strong retail deposit growth positions it well for future growth.