LOS ANGELES, Aug. 22, 2024 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to as “the Company,” announced that on August 21, 2024, the Federal Deposit Insurance Corporation (the “FDIC”) and the California Department of Financial Protection and Innovation (the “DFPI”) lifted the consent order issued to the Bank, effective October 25, 2023. The lifting of the consent order follows the successful remediation of deficiencies in the Bank’s Anti-Money Laundering/Combating the Financing of Terrorism (“BSA/CFT”) compliance program that was the subject of the order.
“We are very pleased to announce the satisfactory resolution and lifting of the consent order. Our directors and staff have worked very hard to address the concerns of our regulators and strengthen our BSA/CFT compliance programs,” said David Morris, Chief Executive Officer. “I want to express my sincere thanks and appreciation to our entire team who have worked so diligently to build an enhanced BSA/CFT program for our bank.”
Company overview
RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of June 30, 2024, the company had total assets of $3.9 billion. Its wholly owned subsidiary, Royal Business Bank, is a full-service commercial bank that provides retail and business banking services to primarily the Asian communities in Los Angeles County, Orange County and Ventura County in California; Las Vegas, Nevada; Brooklyn, Queens and Manhattan in New York; Edison, New Jersey; Chicago’s Chinatown and Bridgeport neighborhoods, Illinois; and Oahu, Hawaii. Banking services include remote deposit, electronic banking, mobile banking, commercial and residential real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single-family home loans, commercial finance, a full range of deposit account products, and wealth management services. The bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one credit center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The company’s administrative and credit center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The company’s website is www.royalbusinessbankusa.com.
Safe Harbor
Certain matters set out herein (including the exhibits hereto) constitute forward-looking statements with respect to the Company’s current business plans and expectations and our future financial condition and results of operations. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to: the effectiveness of the company‘s internal control over financial reporting and controls and procedures for disclosure; the potential for further significant weaknesses in the company‘s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been identified; Business and economic conditions generally and in the financial services industry, nationally and in our current and future geographic markets, including the tight labor market, the ineffective administration of the United States (“US”) federal budget or debt or turmoil or uncertainty in domestic or foreign financial markets; the strength of the U.S. economy generally and the strength of the local economies in which we operate; our ability to attract and retain deposits and access other sources of liquidity; possible additional provisions for loan losses and charge-offs; credit risks from lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision to which we are subject, including possible supervisory actions by banking regulators; increased costs of compliance and other risks related to changes in regulations, including any changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act; compliance with the Bank Secrecy Act and other anti-money laundering laws and regulations; possible impairment of goodwill; liquidity risk; interest rate fluctuations; risks related to acquisitions and the expansion of our business into new markets; inflation and deflation; conditions in real estate markets and the value of real estate collateral; environmental liability; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risks; severe weather, natural disasters, earthquakes, fires or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia, Ukraine and the Middle East, which could affect business and economic conditions in the United States and abroad; health crises and pandemics and their impact on the economic and business environment in which we operate, including our credit quality and operations, and the impact on general economic and financial market conditions; general economic or business conditions in Asia and other regions in which the Bank operates; failures, interruptions or breaches of our information systems; climate change, including increased regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the costs of defending against them; our ability to adapt our systems to the increasing use of technology in banking; risk management processes and strategies; adverse outcomes of litigation; the impact of governmental enforcement actions, if any; certain provisions in our charter and bylaws that could affect the acquisition of the Company; changes in tax laws and regulations; the impact of government efforts to restructure the U.S. financial regulatory system; the impact of future or recent changes in the FDIC insurance contribution rate and the rules and regulations related to the calculation of FDIC insurance contributions; the impact of changes in accounting principles and practices or accounting standards as adopted from time to time by banking regulators, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other financial reporting standard setters, including Accounting Standards Update 2016-13 (Topic 326, “Measurement of Current Losses on Financial Instruments,” commonly referred to as the “Current Expected Credit Losses Model”), which changed our estimate of credit losses and may further increase the required amount of our provision for credit losses in future periods; market disruptions and volatility; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by law and regulation and by our regulators and our capital structure; issuance of preferred stock; our ability to raise additional capital when needed and the potential resulting dilution of the interests of holders of our common stock; the soundness of other financial institutions; our ongoing relationships with our various federal and state regulatory agencies, including the SEC, FDIC, FRB and DFPI; our success in managing the risks associated with the foregoing and all other factors set forth in the Company’s public reports, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and particularly the discussion of risk factors in that document. The Company undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements regarding future operating results, such as those regarding the accretion and dilution of the Company’s or shareholders’ earnings, are for illustrative purposes only, are not forecasts, and actual results may differ.
Contact:
Lynn Hopkins, Chief Financial Officer
(213) 716-8066
[email protected]
