The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

RBB entering San Francisco market with latest deal

RBB Bancorp in Los Angeles will enter the San Francisco market after it buys Gateway Bank in Oakland.


The $3.8 billion-asset RBB said in a press release Tuesday that it will pay $22.9 million in cash for the $172 million-asset Gateway. The deal is expected to close in the second quarter. 

Gateway has on branch, $123 million of loans and $148 million of deposits. The bank primarily serves Asian-American communities around the San Francisco Bay. 

“Expansion into the Bay Area, with one of the largest Asian-American communities in the United States, has long been a goal of ours,” Alan Thian, RBB’s president and CEO, said in the release. “We are excited to enter this market and bring our relationship-based banking model to the Bay Area.” 

RBB said it expects the transaction to be accretive to its 2022 earnings per share in the mid-single digits. It should take less than two years for RBB to earn back a projected 1.8% dilution to its tangible book value.

RBB plans to cut about 60% of Gateway’s annual noninterest expenses.

Findley Group and Loren P. Hansen advised RBB. Janney Montgomery Scott and Godfrey & Kahn advised Gateway.

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