NasdaqGS:RBB

Stock Analysis Report

Executive Summary

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American communities.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has RBB Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RBB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

RBB

-1.0%

US Banks

0.5%

US Market


1 Year Return

-10.2%

RBB

10.6%

US Banks

20.3%

US Market

Return vs Industry: RBB underperformed the US Banks industry which returned 10.6% over the past year.

Return vs Market: RBB underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

RBBIndustryMarket
7 Day-2.9%-1.0%0.5%
30 Day-3.7%-1.2%2.0%
90 Day-1.2%0.4%9.4%
1 Year-8.3%-10.2%13.8%10.6%22.8%20.3%
3 Yearn/a23.5%14.6%50.1%40.4%
5 Yearn/a74.0%54.2%73.1%54.1%

Price Volatility Vs. Market

How volatile is RBB Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RBB Bancorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RBB ($19.71) is trading below our estimate of fair value ($42.44)

Significantly Below Fair Value: RBB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RBB is good value based on its PE Ratio (10.1x) compared to the Banks industry average (12.6x).

PE vs Market: RBB is good value based on its PE Ratio (10.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: RBB is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: RBB is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is RBB Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBB's forecast earnings growth (7% per year) is above the savings rate (1.7%).

Earnings vs Market: RBB's earnings (7% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: RBB's earnings are forecast to grow, but not significantly.

Revenue vs Market: RBB's revenue (7.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: RBB's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RBB's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has RBB Bancorp performed over the past 5 years?

27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBB has high quality earnings.

Growing Profit Margin: RBB's current net profit margins (34.8%) are lower than last year (41.6%).


Past Earnings Growth Analysis

Earnings Trend: RBB's earnings have grown significantly by 27.6% per year over the past 5 years.

Accelerating Growth: RBB's earnings growth over the past year (8.6%) is below its 5-year average (27.6% per year).

Earnings vs Industry: RBB earnings growth over the past year (8.6%) underperformed the Banks industry 12.3%.


Return on Equity

High ROE: RBB's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RBB Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RBB has a low level of unsold assets or inventory.

Debt Coverage by Assets: RBB's debt is covered by short term assets (assets are 2.9x debt).


Financial Institutions Analysis

Asset Level: RBB's level of assets compared to its equity is low.

Allowance for Bad Loans: RBB has a sufficient allowance for bad loans.

Low Risk Liabilities: RBB's liabilities are made up of primarily low risk sources of funding.

Loan Level: RBB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RBB's loans are broadly funded by customer deposits.

Level of Bad Loans: RBB has an appropriate level of bad loans (0.6%)


Next Steps

Dividend

What is RBB Bancorp's current dividend yield, its reliability and sustainability?

2.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RBB's dividend (2.44%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: RBB's dividend (2.44%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RBB has been paying a dividend for less than 10 years.

Growing Dividend: RBB's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.4%), RBB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RBB's dividends in 3 years are forecast to be well covered by earnings (22.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.7yrs

Average management tenure


CEO

Alan Thian (66yo)

12.1yrs

Tenure

US$3,526,541

Compensation

Mr. Yee Phong Thian, also known as Alan, has been the Chairman, Chief Executive Officer and President of RBB Bancorp and Royal Business Bank since 2008. Mr. Thian served as an Executive Vice President and  ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD3.53M) is above average for companies of similar size in the US market ($USD1.66M).

Compensation vs Earnings: Alan's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yee Thian
Chairman12.1yrsUS$3.53m2.91% $11.5m
David Morris
Executive VP & CFO9.7yrsUS$424.74k0.064% $251.8k
I-Ming Liu
Executive VP & Chief Risk Officer0yrsno data0.34% $1.3m
Pei-Chin Huang
Secretary0yrsUS$92.36k2.41% $9.5m
Erik Grier
First VP & Chief Information Officer0yrsno datano data
Sophy Chu
Senior VP & Compliance Officer0yrsno datano data
Alberto Alverado
Senior Advisor & Legal Counsel0yrsno datano data
Michele Rocha
Senior VP & HR Director0yrsno datano data
Simon C. Pang
Executive VP & Chief Strategy Officer0yrsUS$343.13k0.12% $487.9k
Jeffrey Yeh
Executive VP & Chief Credit Officer6.1yrsno data0.26% $1.0m

9.7yrs

Average Tenure

63yo

Average Age

Experienced Management: RBB's management team is seasoned and experienced (9.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yee Thian
Chairman12.1yrsUS$3.53m2.91% $11.5m
Ko-Yen Lin
Independent Director9.1yrsUS$96.40k0.47% $1.9m
Fui Ming Thian
Director9.1yrsUS$99.83k0.38% $1.5m
Chie-Min Koo
Independent Director9.1yrsUS$96.23k0.10% $396.2k
Chuang-I Lin
Independent Director9.1yrsUS$94.40k0.33% $1.3m
Peter M. Chang
Independent Director9.1yrsUS$94.63k6.69% $26.4m
Wendell Chen
Independent Director0yrsUS$97.72k3.04% $12.0m
Raymond Yu
Vice Chairman1.3yrsUS$3.60k1.25% $4.9m
Feng Lin
Independent Director9.1yrsUS$89.91k5.43% $21.5m
Paul Lin
Independent Director8.1yrsUS$96.13k3.76% $14.8m

9.1yrs

Average Tenure

56yo

Average Age

Experienced Board: RBB's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RBB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.7%.


Top Shareholders

Company Information

RBB Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RBB Bancorp
  • Ticker: RBB
  • Exchange: NasdaqGS
  • Founded: 2008
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$394.808m
  • Shares outstanding: 20.03m
  • Website: https://www.royalbusinessbankusa.com

Number of Employees


Location

  • RBB Bancorp
  • 1055 Wilshire Boulevard
  • 12th Floor
  • Los Angeles
  • California
  • 90017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBBNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJul 2017

Biography

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential construction, commercial construction, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and trust, remote deposit, e-banking, and mobile banking services, as well as operates a loan production office in California. The company primarily offers its products and services to individuals, businesses, municipalities, and other entities. As of January 27, 2020, it operated 10 branches in Los Angeles County; 2 branches in Ventura County; 1 branch in Irvine, California; 1 branch in Las Vegas, Nevada; 8 branches and 1 loan operation center in Brooklyn, Queens, and Manhattan in New York; and 3 branches in Chicago, Illinois. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:55
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.