Source: Investing Posted 20/12/2024, 00:25
LOS ANGELES – RBB Bancorp (NASDAQ:RBB), a community financial holding company with a market capitalization of $377 million and a price-to-earnings ratio of 11.4, has announced a significant leadership transition next year.
According to InvestingPro data, the company maintains a healthy dividend yield of 2.98% and has consistently raised dividends for three consecutive years. Mr. Johnny Lee, who currently occupies Position as President and Chief Banking Officer of Royal Business Bank, President of RBB Bancorp and President and Chief Executive Officer of the Bank effective January 1, 2025. In addition, Mr. Lee will serve on the Boards of Directors of both the Company and the Bank.
Following this initial appointment, Mr. Lee is scheduled to assume the role of CEO of RBB Bancorp effective May 22, 2025. Mr. Lee has an extensive background of over 35 years in the banking industry with previous senior positions at East West Bank, bringing significant experience to his new roles.
In conjunction with these changes, Mr. David Morris will resign as Chief Executive Officer and Chairman of the Company on January 1, 2025, and will retire as Chief Executive Officer on May 21, 2025. However, Mr. Morris will continue to serve on the respective boards of directors of the Company and the Bank.
The company expressed its gratitude for Mr. Morris’ 15-year service, recognizing his strategic contributions to the growth of RBB Bancorp. The chairwoman, Christina Kao, highlighted the planned succession, noting Mr. Lee’s exceptional executive talent. InvestingPro recent data shows management’s confidence through aggressive stock buybacks, although the stock saw a 7.9% decline over the past week despite a strong gain of 26.5% over the past six months.
In additional leadership shifts, Mr. Mina Rizkallah will progress from Senior Vice President/Bank Secrecy Law Officer and Principal Deputy Chief Risk Officer to the position of Executive Vice President and Chief Risk Officer for both the Company and the Bank. Mr. I-Ming (Vincent) Liu will move from his current role as Chief Risk Officer to the position of Executive Vice President and Chief of Staff of the Bank. RBB Bancorp, headquartered in Los Angeles, California, reported total assets of $4.0 billion as of September 30, 2024.
The company’s subsidiary, Royal Business Bank, offers a range of banking services to Asian American communities and businesses across various locations in the United States.
In other recent news, RBB Bancorp reported stable growth and margin expansion in the third quarter of 2024. The company disclosed net income of $7 million, or $0.39 per share, which included important one-time items such as a write-off loan redemption and a credit provision.
The bank’s net interest margin increased slightly, and analysts expect further expansion as short-term interest rates fall. Loan and deposit portfolios showed growth, with a marked reduction in reliance on bulk. Despite the increase in non-performing loans, management remains confident that they will resolve these problems by mid-2025. RBB Bancorp expects an annual loan growth rate of 6%, driven largely by the commercial real estate sector.
About $800 million in certificates of deposit are scheduled to be repriced in the next quarter.
