RBB Bancorp (RBB): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how RBB Bancorp makes its money, especially with their unique niche. Honestly, after two decades analyzing banks, what stands out here is their deep cultural alignment-they aren't just a bank; they are a CDFI serving Asian-American markets across CA, NY, and beyond. With total assets hitting about $4.2 billion as of Q3 2025 and a core loan book of $3.3 billion, their model hinges on high-touch, relationship-driven lending, evidenced by their $29.3 million Net Interest Income that quarter. Their strategy is simple: specialized service drives sticky deposits and high-quality loans. Dive into the nine blocks below to see the full architecture behind this focused growth.

RBB Bancorp (RBB) - Canvas Business Model: Key Partnerships

You're looking at the external relationships RBB Bancorp relies on to execute its business plan, especially those that provide funding, community access, and essential technology. These partnerships are critical for a community bank operating across several states.

Federal Home Loan Bank (FHLB) for wholesale funding and liquidity

RBB Bancorp actively uses the Federal Home Loan Bank (FHLB) for wholesale funding to manage liquidity. This relationship is dynamic, adjusting based on deposit flows and market conditions. For instance, during the first quarter of 2025, \$150.0 million in FHLB advances matured, which carried an average cost of 1.18%. RBB Bancorp largely replaced this funding with new FHLB advances totaling \$110.0 million, but at a significantly higher average rate of 3.88%. By the second quarter of 2025, another \$150 million in long-term FHLB advances matured, with the majority being replaced and repriced at current market rates. This shows a clear, quantifiable reliance on the FHLB for balance sheet management.

Community Development Financial Institution (CDFI) partners for grants

RBB Bancorp maintains a broad network to support its community mission. The bank reports having over 60 community partners. This network is central to RBB Bancorp's commitment to creating positive change for low to moderate-income individuals and families in its operating areas. The scale of this partnership base is a key resource for community outreach.

Non-profit organizations for VITA and scholarship programs

The partnership with non-profit organizations directly translates into measurable community impact, particularly through the Volunteer Income Tax Assistance (VITA) program and scholarship initiatives. Here are the concrete results from recent periods:

Specific non-profit partners mentioned in connection with VITA services include the Mexican American Opportunity Fund, Northern Manhattan Improvement Corporation, and Central City Neighborhood Partners. The scholarship funding aims to support economically challenged youth.

Technology vendors for E-banking and mobile platforms

RBB Bancorp's service offering explicitly includes E-banking and mobile banking platforms. These digital channels are part of the full suite of services Royal Business Bank provides to its customer base. While the specific names of the technology vendors powering these platforms and any direct financial commitments to them in 2025 aren't publicly detailed in the earnings reports, the operational capability itself represents a key dependency on external technology providers.

• Bank services include remote deposit.
• Mobile banking is a core offering.
• E-banking supports client transactions.

Correspondent banks for interbank services and transactions

As a community-based financial holding company, RBB Bancorp relies on correspondent banking relationships to facilitate interbank services and transactions that extend beyond its direct branch network and capabilities. This is a standard operational necessity for banks of its size, allowing for broader reach in areas like trade finance or specialized clearing. Specific financial volumes or the exact roster of correspondent banks for 2025 aren't itemized in the readily available financial summaries, but the function is integral to supporting its national footprint across California, Nevada, New York, New Jersey, Illinois, and Hawaii. The total assets of RBB Bancorp stood at \$4.2 billion as of September 30, 2025, providing the scale that necessitates these external banking connections.

RBB Bancorp (RBB) - Canvas Business Model: Key Activities

The core of RBB Bancorp's operations centers on its lending and deposit-taking functions, supported by rigorous internal management processes.

Commercial and residential loan origination and servicing

RBB Bancorp actively originates loans across several categories, driving asset growth. Loans held for investment increased by $67.9 million during the third quarter of 2025, reflecting an 8.3% annualized growth rate. The total loan originations for the third quarter of 2025 amounted to $187.8 million, achieved at a blended average yield of 6.70%. The bank's total assets stood at $4.2 billion as of September 30, 2025.

The composition of net loan growth from June 30, 2025, to September 30, 2025, shows focus areas:

For comparison, in the second quarter of 2025, total new production was $182.8 million, with SFR mortgages increasing by $57.3 million over the prior quarter.

Deposit gathering and liability management

Gathering stable and cost-effective funding is a primary activity. Total deposits for RBB Bancorp grew to $3.4 billion at September 30, 2025, which represented a 22.2% annualized increase from the end of the second quarter. The bank's loan-to-deposit ratio was managed down to 98.1% as of September 30, 2025.

The liability structure includes:

• Total deposits of $3.4 billion as of September 30, 2025.
• Noninterest-bearing deposits totaled $550.5 million, making up 16.4% of total deposits at that date.
• Average total interest-bearing deposits represented 89.4% of average interest-bearing liabilities in Q3 2025.

Net interest income for the third quarter of 2025 was $29.3 million, with the Net Interest Margin (NIM) expanding to 2.98%. The average cost of interest-bearing deposits decreased to 3.63% for the third quarter of 2025.

Managing and resolving nonperforming assets (NPLs)

Active credit quality management is crucial. Nonperforming assets (NPA) totaled $54.3 million at September 30, 2025, which equates to 1.29% of total assets. This represented a decrease of $6.7 million, or 11.0%, from the prior quarter's NPA level. The resolution of these assets involved $6.9 million in net charge-offs during the third quarter.

Other key credit quality metrics include:

• Classified and criticized loans totaled $126.2 million at September 30, 2025.
• This figure marked a decrease of approximately 30.8% from the prior period.
• Other Real Estate Owned (OREO) was $8.8 million at September 30, 2025.

Regulatory compliance and risk management

Maintaining strong capital levels is a continuous activity. RBB Bancorp reported that all capital ratios remained above regulatory and well-capitalized levels following the third quarter of 2025. The bank also executed a share repurchase program, buying back 660,000 shares, or 4% of shares outstanding, in the third quarter.

Wealth management and trade finance services

RBB Bancorp's subsidiary, Royal Business Bank, offers specialized services alongside its core lending. These activities include:

• Trade finance services.
• Wealth management services.

The focus on relationship-driven lending, specifically Commercial and Industrial (C&I) and Small Business Administration (SBA) loans, supports these broader service offerings.

RBB Bancorp (RBB) - Canvas Business Model: Key Resources

You're looking at the foundational assets that make RBB Bancorp's business run, the stuff they can't easily replace or replicate. Honestly, for a community bank, these tangible and human resources are everything.

The balance sheet strength as of September 30, 2025, provides a clear picture of their scale. Total assets hit $4.2 billion, showing solid growth year-over-year. That asset base supports the core lending engine of the organization. That's a good anchor point for any analysis you're doing.

The loan portfolio, which is what generates the bulk of their interest income, is substantial. Gross loans held for investment totaled $3.30 billion at the end of the third quarter of 2025. This portfolio is strategically diversified, with single-family residential (SFR) loans making up 50% of the total, followed by commercial real estate (CRE) at 39%, commercial and industrial (C&I) at 5%, and Small Business Administration (SBA) loans at 2%.

Funding this lending requires a stable deposit base. The total deposit base reached $3.37 billion as of September 30, 2025. A key component of this funding strength is the noninterest-bearing deposits, which stood at $550.5 million, representing 16.4% of total deposits at that date.

Here's a quick look at those primary financial resources:

The human capital is just as critical, especially given RBB Bancorp's specific market niche. The organization relies on an experienced management team, including CEO Johnny Lee, who has guided the bank through recent performance improvements. This team possesses deep, established ties to the Asian-American markets, which is the primary focus for Royal Business Bank, serving communities including Chinese-American and Korean-American clients.

Physical infrastructure supports the relationship-driven business model. The multi-state branch network is geographically positioned to serve its target clientele across key markets. You find their presence in:

• California (CA)
• New York (NY)
• Nevada (NV)
• New Jersey (NJ)
• Illinois (IL)
• Hawaii (HI)

As of early 2025, the bank operated 24 full-service branches across these six states. This physical footprint, combined with services like remote deposit and E-banking, helps them deliver their value proposition across geographies.

To align with your outline points, here is the summary of the key resource figures you requested:

• Total assets of approximately $4.2 billion as of Q3 2025.
• Loan portfolio held for investment totaling $3.3 billion.
• Experienced management team with deep ties to Asian-American markets.
• Multi-state branch network across CA, NY, NV, NJ, IL, and HI, totaling 24 branches as of Q1 2025.
• Core deposit base of approximately $3.2 billion (Total deposits were $3.2 billion at Q2 2025).

Finance: draft 13-week cash view by Friday.

RBB Bancorp (RBB) - Canvas Business Model: Value Propositions

You're looking at the core things RBB Bancorp offers its clients, the things that make them choose Royal Business Bank over the next option. It's about specialized focus and local execution, which you can see reflected in their recent balance sheet movements.

Culturally sensitive, bilingual service for Asian-centric communities

Royal Business Bank focuses its consumer and business banking services predominantly on Asian-centric communities. This service footprint spans several key US markets, including:

• Los Angeles County, Orange County, and Ventura County in California.
• Las Vegas, Nevada.
• Brooklyn, Queens, and Manhattan in New York.
• Edison, New Jersey.
• Chicago neighborhoods of Chinatown and Bridgeport, Illinois.
• Oahu, Hawaii.

As of September 30, 2025, RBB Bancorp reported total assets of $4.2 billion.

Relationship-driven commercial and industrial (C&I) lending

The bank emphasizes C&I lending, which shows consistent, albeit smaller, growth quarter-over-quarter, suggesting steady relationship maintenance rather than massive, one-off deals. Here's a look at the net increase in C&I loans held for investment:

Specialized Small Business Administration (SBA) 7A and 504 loans

RBB Bancorp explicitly offers SBA 7A and 504 loans as part of its service suite. This specialization caters to small businesses needing government-backed financing structures. The growth in this segment during the first half of 2025 was:

• SBA loan increase from December 31, 2024, to March 31, 2025: $3.4 million.
• SBA loan increase from March 31, 2025, to June 30, 2025: $5.3 million.

Quick, local decision-making on loan originations

While the exact decision timeline isn't quantified, the value proposition is supported by the volume of new production and the stated focus on local service delivery across its nine branches in Los Angeles County, two in Ventura County, and one in Orange County, among others. New loan production volume shows activity:

• Total loan originations for the quarter ended March 31, 2025: $201 million at a blended yield of 6.77%.
• Total loan originations for the quarter ended September 30, 2025: $187.8 million at an average yield of 6.70%.

Full suite of commercial real estate (CRE) and residential mortgage products

The bank actively grows its CRE and Single-Family Residential (SFR) mortgage portfolios, which are key components of its full-service offering. Loans held for investment (HFI) reached $3.3 billion as of September 30, 2025. The quarterly growth in these specific asset classes illustrates this focus:

Finance: draft 13-week cash view by Friday.

RBB Bancorp (RBB) - Canvas Business Model: Customer Relationships

You're looking at how RBB Bancorp maintains its connection with its clients as of late 2025. The approach blends deep, localized personal service with necessary digital tools, all centered around specific community demographics.

Dedicated relationship managers for commercial clients are a cornerstone, especially given the background of the executive team. For instance, President and CEO Johnny Lee previously headed International and Commercial Banking at East West Bank, where he oversaw a commercial loan portfolio nearing $7.0 billion and managed $4.5 billion in deposits. This experience informs the high-touch approach for commercial and industrial loans, commercial real estate (CRE) loans, and SBA lending that RBB Bancorp provides. The focus is on structuring, underwriting, and managing complex credit relationships directly with the client.

The high-touch, personalized service model at branch level is supported by a deliberate physical footprint across key markets. As of early 2025, RBB Bancorp maintained a presence across multiple states, including a significant concentration in California. The branch network details show a commitment to in-person access:

• California: 9 branches in Los Angeles County, 2 in Ventura County, and 1 in Orange County.
• New York: 3 branches in Queens, 3 branches and 1 loan operation center in Brooklyn, and 1 branch in Manhattan.
• Other Locations: 1 branch each in Las Vegas, Nevada; Edison, New Jersey; Honolulu, Hawaii; and 2 branches in Chicago, Illinois.

RBB Bancorp's operations are grounded in community accountability, serving predominantly the Asian-centric communities across its operational footprint in California, Nevada, New York, New Jersey, Illinois, and Hawaii. While the search results confirm RBB BANCORP is listed in the CDFI Fund registry, specific 2025 financial commitments tied to CDFI lending are not explicitly detailed here, but the geographic focus aligns with community development principles.

The service delivery is a blended digital (E-banking) and in-person service model. While the physical branches offer personalized service, the Bank also offers modern conveniences. Bank services explicitly include remote deposit, E-banking, and mobile banking, ensuring clients can manage routine transactions digitally. This blend supports the relationship managers by handling transactional volume, allowing them to focus on complex needs.

A key differentiator is the culturally shared background with key customer segments. Royal Business Bank explicitly provides consumer and business banking services predominantly to the Asian-centric communities in its operating areas. This cultural alignment is critical for building the deep trust required for commercial and investor real estate lending, as well as wealth management services.

Here's a snapshot of the scale of the customer base RBB Bancorp supports, based on mid-2025 financial reporting:

Finance: draft 13-week cash view by Friday.

RBB Bancorp (RBB) - Canvas Business Model: Channels

You're looking at how RBB Bancorp gets its value proposition to its customer segments, and honestly, it's a mix of traditional brick-and-mortar presence and necessary digital tools. The scale of their physical footprint is quite specific, serving their core Asian-centric communities across multiple states.

The physical branch locations are spread across six key states as of the second quarter of 2025 reporting period. This network is the backbone for high-touch service, which is a core part of the Royal Business Bank value proposition.

The total asset base that these channels support was reported at $4.1 billion as of June 30, 2025, giving you a sense of the financial scale being managed through these distribution points.

Digital channels are definitely in play, supporting the physical network. You see these mentioned as standard bank services, meaning they are essential for modern client interaction, especially for transactional needs.

• E-banking services use.
• Mobile banking applications for on-the-go access.
• Remote deposit capture for business clients to streamline cash flow management.

The in-house mortgage origination capability is a key part of the lending channel. This internal structure allows RBB Bancorp to control the process and decision-making speed, which is important for their target clientele. For context on the output from this channel, the first quarter of 2025 saw $201 million in total new loan production, with the in-house mortgage origination business alone originating $112 million of mortgages during that same quarter.

Finally, wealth services flow through a dedicated entity, RBB Asset Management Company (RAM). While I don't have the specific Assets Under Management (AUM) for RAM as of late 2025, its existence shows a clear channel for high-net-worth services, separate from the core commercial banking branch operations.

Finance: draft Q3 2025 channel utilization report by next Tuesday.

RBB Bancorp (RBB) - Canvas Business Model: Customer Segments

You're looking at the core groups RBB Bancorp serves, which are heavily concentrated in the specific geographic and ethnic markets where Royal Business Bank operates.

The primary customer base is defined by its geographic and cultural focus, serving predominantly Asian-centric communities across key metropolitan areas.

• Geographic footprint includes California (Los Angeles County, Orange County, Ventura County), Las Vegas, Nevada, New York (Brooklyn, Queens, Manhattan), Edison, New Jersey, Chicago (Chinatown and Bridgeport), and Oahu, Hawaii.
• The bank's services are explicitly tailored to these communities.

Lending activity clearly segments the business focus, with significant growth in both commercial and residential real estate, alongside business lending.

As of September 30, 2025, Loans Held for Investment (HFI) totaled $3.3 billion.

Here's a quick look at the loan portfolio composition based on recent growth drivers:

RBB Bancorp also serves affluent individuals through its wealth management arm, RBB Asset Management Company.

The total asset base supporting these segments was $4.1 billion as of June 30, 2025.

• Total deposits were $3.2 billion as of June 30, 2025.
• Noninterest-bearing deposits represented 17.1% of total deposits at June 30, 2025.

The bank's loan-to-deposit ratio stood at 98.1% at September 30, 2025.

RBB Bancorp (RBB) - Canvas Business Model: Cost Structure

You're looking at the expense side of the ledger for RBB Bancorp, which is heavily influenced by funding costs and operating efficiency, especially given their multi-state footprint. The cost structure is where the rubber meets the road for profitability, so let's break down the key drivers based on late 2025 figures.

Interest expense on deposits and borrowings remains a primary cost. The average cost of total borrowings saw a decrease in the third quarter of 2025, dropping by 9 basis points from the prior quarter, even after $150 million in long term FHLB advances matured in the first quarter of 2025 and were replaced at current market rates. The all-in average spot rate for total deposits was 2.95% at June 30, 2025, moving slightly to 2.97% by September 30, 2025. The increase in total interest expense in Q3 2025 was mainly due to a $1.0 million increase in interest on deposits.

Non-interest expense is a major operational cost. Management expects this category to be in the $18 million to $19 million quarterly range, which aligns closely with the actual reported $18.7 million for the third quarter of 2025. This was an improvement from the $20.5 million reported in the second quarter of 2025, which included one-time advisory costs.

The Provision for credit losses fluctuates based on economic outlook and asset quality. You saw the provision was $2.4 million in Q2 2025, reflecting management's assessment at that time. However, credit costs normalized significantly in the third quarter, with the provision dropping to just $625,000 as credit stabilized and nonperforming assets declined.

Salaries and employee benefits are a consistent component of operating costs. We saw significant increases earlier in the year; for instance, the first quarter of 2025 included a $716,000 increase attributed to payroll taxes and annual pay increases. The second quarter also saw a $437,000 increase in salaries and employee benefits expenses, reflecting the cost of specialized, bilingual staff necessary for RBB Bancorp's community focus.

Occupancy and equipment costs for the multi-state branch network are baked into the overall non-interest expense figure. With 24 branches across California, Nevada, New York, New Jersey, Illinois, and Hawaii, maintaining this physical presence is a fixed cost that management must keep in check to maintain their efficiency ratio, which was just over 57% in Q3 2025.

Key cost components driving the structure include:

• Interest expense on deposits, with a spot rate of 2.97% at September 30, 2025.
• Salaries and benefits reflecting specialized staff needs.
• Non-interest expense management, targeting below 2% of average assets.
• Fluctuating provision for credit losses, which was $2.4 million in Q2 2025.
• Costs related to the physical network of 24 branches.

The efficiency ratio was 57.2% for the second quarter of 2025, improving to just over 57% in the third quarter, showing that controlling these operating expenses is a key focus for RBB Bancorp. Finance: draft 13-week cash view by Friday.

RBB Bancorp (RBB) - Canvas Business Model: Revenue Streams

You're looking at the core ways RBB Bancorp generates cash as of late 2025. The bank's revenue streams are heavily weighted toward traditional lending activities, which is typical for a community-focused bank like Royal Business Bank, the main subsidiary.

The primary driver is clearly Net Interest Income (NII). For the third quarter ended September 30, 2025, RBB Bancorp reported NII of $29.3 million. This figure marked an increase from $27.3 million in the second quarter of 2025. The expansion in NII was supported by a higher yield on average loans, which reached 6.12% in Q3 2025.

The engine behind this NII growth is the loan portfolio. As of September 30, 2025, loans held for investment totaled $3.3 billion. The increase in NII was largely due to a $3.2 million rise in total interest income, with the primary contributor being a $2.4 million boost in interest and fees on loans for the quarter. The bank reported $187.8 million in new loan originations during Q3 2025, carrying an average yield of 6.70%.

Here's a quick look at the scale of the key revenue-generating assets and results for Q3 2025:

Beyond the core lending operations, RBB Bancorp also pulls in revenue from other sources, though specific dollar amounts for all these components for Q3 2025 aren't explicitly broken out in the latest summaries. You know the bank has these streams in place, though:

• Non-interest income from service charges and fees.
• Gain on sale of loans, including SBA and residential mortgages; the bank originated $187.8 million in loans in the quarter.
• Wealth management fees generated from RBB Asset Management Company (RAM).

To be fair, the total reported revenue for the quarter was $31.95 million, which means the non-interest income sources combined with NII make up that total. Finance: draft the breakdown of non-interest income for the Q4 2025 earnings preview by next Wednesday.