RBB Bancorp in Los Angeles lowered its third-quarter earnings after deferring income from a grant.
The $4.1 billion-asset company said in a press release that it determined that the $5 million it received from the Community Development Financial Institution Equitable Recovery Program should not count toward third-quarter noninterest income.
The decision will lower RBB’s net income by 29%, to $8.5 million.
The company also determined that there was a material weakness tied to how it reports “infrequent transactions.”