RBB Bancorp announces the completion of the acquisition of certain assets and liabilities of the Honolulu, Hawaii branch of Bank of the Orient
LOS ANGELES–(BUSINESS WIRE)–RBB Bancorp (NASDAQ: RBB) today announced that Royal Business Bank, the wholly-owned subsidiary of RBB, has completed the acquisition of the Honolulu, Hawaii branch of Bank of the Orient on 14 January 2022. Royal Business Bank acquired all branch premises and equipment, all deposits totaling approximately $81.7 million, some performing loans totaling approximately $7.4 million, estimated premium of approximately $3.0 million dollars, for a total consideration of approximately $71.0 million. The transaction has obtained all necessary regulatory approvals.
Janney Montgomery Scott LLC served as financial advisor and Loren P. Hansen, APC served as legal advisor to RBB Bancorp. Stephens Inc. acted as financial advisor and Morrison & Foerster LLP acted as legal advisor to Bank of the Orient.
RBB Bancorp is a community financial holding company headquartered in Los Angeles, California. As of September 30, 2021, the company had total assets of $3.8 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full-service commercial bank, which provides business banking services to Asian-American communities in Los Angeles County, Orange County and Ventura County in California; Las Vegas in Nevada; Brooklyn, Queens and Manhattan in New York; Edison in New Jersey; in the Chicago, Illinois neighborhoods of Chinatown and Bridgeport; and in Honolulu, Hawaii. The services of the Royal Business Bank include remote deposit, online banking, mobile banking, commercial property and investor loans, business loans and lines of credit, commercial and industrial loans, loans SBA 7A and 504, residential loans for 1 to 4 families, car loans. , trade finance, a full range of deposit account products and wealth management services. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its financial and operations center is located at 7025 Orangethorpe Avenue, Buena Park, California 90621. The Company’s website address Company is www.royalbusinessbankusa.com.
This press release contains statements that are deemed to be forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by them. Forward-looking statements often include the words “believes”, “expects”, “anticipates”, “estimates”, “plans”, “intends”, “plans”, “targets”, “potentially”, “probably”, “plans”, “prospect” or similar expressions or future or conditional verbs such as “may”, “will”, “should”, “would” and “could” and the negative form of these similar terms and words , although some forward-looking statements may be expressed differently. Forward-looking statements also include, but are not limited to, statements regarding plans, objectives, expectations or consequences of announced transactions, known trends, and statements regarding future performance, operations, products and services of RBB and its subsidiaries.
These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s historical experience and current expectations or projections. These risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions relating to or arising from: (1) U.S. and international business and economic conditions; (2) possible additional provisions for losses on loans and write-offs; (3) credit risks of lending activities and deterioration in asset or credit quality; (4) extensive laws and regulations and oversight to which RBB is subject, including potential oversight actions by banking supervisory authorities; (5) increased compliance costs and other risks associated with regulatory changes, including changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act; (6) compliance with the Bank Secrecy Act and other money laundering laws and regulations; (7) potential impairment of goodwill; (8) liquidity risk; (9) interest rate fluctuations; (10) the expected discontinuation of the London Interbank Offer Rate after 2021 and uncertainty regarding potential alternative benchmark rates, including the Overnight Collateral Funding Rate; (11) risks associated with acquisitions and expansion of RBB’s business into new markets; (12) inflation and deflation; (13) real estate market conditions and the value of real estate collateral; (14) environmental liabilities; (15) our ability to compete with larger competitors; (16) RBB’s ability to retain key personnel; (17) successful management of reputational risk; (18) severe weather, natural disasters, acts of war or terrorism, public health concerns (including novel coronavirus or COVID-19) or other adverse external events could adversely affect RBB’s business; (19) general economic or business conditions in Asia and other regions where the Bank does business; (20) failures, interruptions or security breaches of RBB’s information systems; (21) RBB’s ability to adapt its systems to the increasing use of technology in the banking industry; (22) risk management processes and strategies; (23) adverse results in legal proceedings; (24) the impact of regulatory enforcement actions, if any; (25) certain provisions of RBB’s charter and bylaws that may affect the acquisition of RBB; (26) changes in tax laws and regulations; (27) the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time to time by banking regulators, the United States Securities and Exchange Commission (“SEC”) , the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, or other accounting standard setters, including Accounting Standards Update 2016-13 (Topic 326),”Measurement of credit losses on financial instruments”, commonly referred to as the current expected credit loss model, which will change the way we estimate credit losses and may increase the required level of RBB’s allowance for credit losses after its adoption on December 31, 2022; (28) market disruption and volatility; (29) fluctuations in the price of RBB shares; (30) restrictions on dividends and other distributions by laws and regulations and by regulators of RBB and its capital structure; (31) preferred stock issues; (32) RBB’s ability to raise additional capital, if needed, and the potential dilution of the interests of holders of its common stock as a result; (33) the strength of other financial institutions and other economic, competitive, governmental, regulatory and technological factors affecting RBB’s operations, prices, products and services; and (34) other risks detailed from time to time in RBB’s filings with the SEC, including RBB’s Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K, for the fiscal year ended December 31, 2020, as amended, all of which actual results may differ from those set forth in the forward-looking statements.
There can be no assurance that other factors not currently anticipated by RBB will not materially and adversely affect its business, financial condition and results of operations. In addition, many of these risks and uncertainties are currently magnified by and may continue to be magnified by or may, in the future, be magnified by the recent outbreak of the COVID-19 pandemic. Readers are cautioned not to place undue reliance on the Company’s forward-looking statements, which reflect management’s analysis and expectations only as of the date of such statements. Forward-looking statements speak only as of the date they are made, and RBB does not intend and undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result new information, future events or otherwise, except as required by federal securities law.