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RBB Bancorp to Acquire Gateway Bank in Oakland, California.

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Vincent

MANews-(C)2009-2021

Los Angeles-based bank holding company RBB Bancorp (NASDAQ: RBB) has entered into a definitive agreement to acquire Oakland, California-based Gateway Bank, F.S.B. in a cash transaction valued at approximately USD 22.9m, the company said.

The deal is subject to certain terms and conditions, including customary holdbacks if certain contingencies are not met, and other possible adjustments as contained in the definitive agreement.

Gateway Bank, a commercial bank based in Oakland, California, had total assets of USD 172.4m, total gross loans of USD 123.1m, total deposits of USD 147.5m, and total tangible equity of USD 15.5m as of September 30, 2021.

Principally serving the Asian-American communities in the San Francisco Bay Area, Gateway Bank has one branch located in Oakland's vibrant Chinatown neighborhood, offering consumer and business banking and loan products and services.

Under the terms of the definitive agreement, RBB will pay to Gateway Bank shareholders approximately USD 22.9m in cash.

RBB expects the transaction to be accretive to earnings per share in 2022 in the mid-single digit range.

RBB also expects to incur tangible book value per share dilution of approximately 1.8% upon closing of the transaction, with a tangible book value dilution payback period of approximately 1.8 years.

The earnings per share accretion estimates are based on estimated cost savings of approximately 60% of Gateway Bank's non-interest expense, with the cost savings phased in during 2022.

The...

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