Monday, July 12, 2021

RBB Bancorp entering Hawaii with branch acquisition

RBB Bancorp in Los Angeles has agreed to buy a branch in Honolulu from Bank of the Orient.

The $3.7 billion-asset RBB said in a press release Monday that it will also gain $77.8 million of deposits and $10 million of performing loans.

RBB said the total consideration is $2.8 million. The deal is expected to close by Dec. 31.

“This transaction accelerates our goal of expanding our presence in vibrant Asian-American communities,” Alan Thian, RBB’s president and CEO, said in the release. “We are excited to enter this new market and bring our relationship-based banking model to Hawaii.”

"We are not surprised to see RBB enter Hawaii, as this has long been identified as a potential market of expansion and a logical fit with the company's business model," Nicholas Cucharale, an analyst at Piper Sandler, said in a client note.

"A one-branch deal strikes us as low-risk for the franchise with the possibility of increased scale over time," Cucharale added.

Janney Montgomery Scott and Loren P. Hansen advised RBB. Stephens and Morrison & Foerster advised Bank of the Orient.

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