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Business Description
9 Months Ended
Sep. 30, 2018
Business Description [Abstract]  
Business Description

NOTE 1 - BUSINESS DESCRIPTION

RBB Bancorp (“RBB”) is a financial holding company registered under the Bank Holding Company Act of 1956, as amended. Our principal business is to serve as the holding company for our wholly-owned subsidiaries, Royal Business Bank, a California-chartered commercial bank (“Bank”), and RBB Asset Management Company (“RAM”), all collectively referred to herein as the “Company”, “we”, “our” or “us”.  All significant intercompany transactions have been eliminated.  RBB Bancorp was formed in January 2011 to be the bank holding company of the Bank.  RAM was formed in 2012 to hold and manage problem assets acquired in business combinations.  RBB Bancorp has no significant business activity other than its investments in the Bank and RAM.  In 2016, the Bank became a Community Development Financial Institution and uses any grants we receive to invest back into the low to moderate income areas in the communities we serve.  

At September 30, 2018, the Company had total assets of $2.1 billion, gross loans of $1.4 billion, total deposits of $1.6 billion and total stockholders' equity of $295.0 million. On July 31, 2017, RBB completed its initial public offering (“IPO”) of 3,750,000 shares of its common stock at a price to the public of $23.00 per share.  RBB’s common stock trades on the Nasdaq Global Select Market under the symbol “RBB”.

The Bank provides business banking services to the Chinese-American communities in Los Angeles County, Orange County and Ventura County in California and in Las Vegas, which is in Clark County, Nevada, including remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, Small Business Administration (“SBA”) 7A and 504 loans, mortgage loans, trade finance and a full range of depository accounts.

The Company operates full-service banking offices in Arcadia, Cerritos, Diamond Bar, Los Angeles, Monterey Park, Oxnard, Rowland Heights, San Gabriel, Silver Lake, Torrance, West LA, and Westlake Village, California and Las Vegas, Nevada.  In October 2018, the Bank opened a branch in Irvine (Orange County), California. In October 2018 the Bank signed a lease for an additional branch in Flushing, New York.

We generate our revenue primarily from interest received on loans and leases to customers, who are predominately small and middle-market businesses and individuals, and to a lesser extent, from interest received on investment securities.  We have also derived income from noninterest sources, such as fees received in connection with various lending and deposit services, residential mortgage loan originations, loan servicing and gain on sales of loans.  Our principle expenses include interest expense on deposits and subordinated debentures, and operating expenses, such as salaries and employee benefits, occupancy and equipment, data processing, and income tax expense.

We have completed five acquisitions since 2011.  Our acquisitions have been accounted for using the acquisition method of accounting and, accordingly, the operating results of the acquired entities have been included in the consolidated financial statements from their respective acquisition dates.  

On October 15, 2018, RBB completed its acquisition of First American International Corp. (“FAIC”) and its wholly-owned subsidiary, First American International Bank (“FAIB”).  FAIB operated three branches in Queens, three in Manhattan, and two in Brooklyn, New York with an operating center and loan production offices in Brooklyn and an administrative center in Manhattan.  See Note 3 – Acquisition, for more information about the FAIC acquisition transactions.