RBB Bancorp Receives NASDAQ Notice on Late Filing of its Form 10-Q

Rhea-AI Summary

RBB Bancorp (NASDAQ: RBB) received a Notice from Nasdaq on November 21, 2022, for failing to file its 2022 Q3 Form 10-Q by the November 9 deadline. The delay is due to the appointment of Crowe LLP as its new CPA, requiring time for Sarbanes-Oxley Act control reviews. While Nasdaq has granted RBB 60 days to submit a compliance plan, the company expects to regain compliance by December 15, 2022. The firm currently holds total assets of $3.9 billion as of September 30, 2022.

Positive

• The Company expects to file the overdue 10-Q by December 15, 2022.
• Assets totaled $3.9 billion as of September 30, 2022.

Negative

• Failure to file the 10-Q by the deadline raises compliance risks with Nasdaq.
• The delay indicates potential operational issues with the newly appointed CPA.

LOS ANGELES--(BUSINESS WIRE)-- RBB Bancorp (Nasdaq: RBB or the “Company”), the bank holding company for Royal Business Bank ("the Bank") and RBB Asset Management Company, announced today that it has received a Notice from the Nasdaq Stock Market on November 21, 2022 notifying the Company that, because its Form 10-Q for the third quarter ended September 30, 2022 (the "2022 3Q 10-Q") was not filed with the Securities and Exchange Commission by the required due date of November 9, 2022, the Company is therefore not in compliance with the periodic filing requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1). This Notice received has no immediate effect on the listing or trading of the Company's shares on the Nasdaq Global Select Market, although there can be no assurances that further delays in the filing of the Forms 10-Q will not have an impact on the listing or trading of the Company's common stock.

As previously disclosed on the Company's Form 12b-25 filed on November 9, 2022, the Company is unable to file, without unreasonable effort and expense, its Form 10-Q for the quarterly period ended September 30, 2022 (the “Report”) as the Company recently appointed Crowe LLP ("Crowe") as its new independent registered public accounting firm ("CPA") on September 26, 2022. Crowe needs more time to complete the Sarbanes-Oxley Act ("SOX") control reviews with the Company, its review of the interim financial statements and the Report, and other matters. Notwithstanding the foregoing, the Company expects to file no later than December 15, 2022.

Nasdaq has provided the Company with 60 calendar days, until January 20, 2023, to submit a plan to regain compliance. The compliance plan is required to submit a plan to regain compliance. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date for the filing of the 10-Q for the third quarter ended September 30, 2022, or May 8, 2023, to regain compliance.

The Company expects to be in compliance by December 15, 2022 and if necessary, intends to submit to Nasdaq the compliance plan by January 20, 2022.

This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification.

About RBB Bancorp

RBB Bancorp is a community-based bank holding company headquartered in Los Angeles, California. As of September 30, 2022, the Company had total assets of $3.9 billion. Its wholly-owned subsidiary, the Bank is a full service commercial bank, which provides business banking services to the Chinese-American communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, automobile lending, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company's administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its finance and operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company's website address is www.royalbusinessbankusa.com.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, local, regional, national and international economic and market conditions and events and the impact they may have on us, our customers and our assets and liabilities; our ability to attract deposits and other sources of funding or liquidity; supply and demand for real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend, including both residential and commercial real estate; a prolonged slowdown or decline in real estate construction, sales or leasing activities; changes in the financial performance and/or condition of our borrowers, depositors or key vendors or counterparties; changes in our levels of delinquent loans, nonperforming assets, allowance for loan losses and charge-offs; expectations regarding the impact of the COVID-19 pandemic; the costs or effects of acquisitions or dispositions we may make, whether we are able to obtain any required governmental or shareholder approvals in connection with any such acquisitions or dispositions, and/or our ability to realize the contemplated financial or business benefits associated with any such acquisitions or dispositions; the effect of changes in laws, regulations and applicable judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, banking capital levels, consumer, commercial or secured lending, securities and securities trading and hedging, compliance, employment, executive compensation, insurance, vendor management and information security) with which we and our subsidiaries must comply or believe we should comply; changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting requirements, including changes in the Basel Committee framework establishing capital standards for credit, operations and market risk; inflation, interest rate, securities market and monetary fluctuations; changes in government interest rates or monetary policies; changes in the amount and availability of deposit insurance; cyber-security threats, including loss of system functionality or theft or loss of Company or customer data or money; political instability; acts of war or terrorism, or natural disasters, such as earthquakes, drought, or the effects of pandemic diseases; the timely development and acceptance of new banking products and services and the perceived overall value of these products and services by our customers and potential customers; the Company’s relationships with and reliance upon vendors with respect to the operation of certain of the Company’s key internal and external systems and applications; changes in commercial or consumer spending, borrowing and savings preferences or behaviors; technological changes and the expanding use of technology in banking (including the adoption of mobile banking and funds transfer applications); the ability to retain and increase market share, retain and grow customers and control expenses; changes in the competitive and regulatory environment among financial and bank holding companies, banks and other financial service providers; volatility in the credit and equity markets and its effect on the general economy or local or regional business conditions; fluctuations in the price of the Company’s common stock or other securities; and the resulting impact on the Company’s ability to raise capital or make acquisitions, the effect of changes in accounting policies and practices, as may be adopted from time-to-time by our regulatory agencies, as well as by the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard-setters, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”, commonly referenced as the Current Expected Credit Loss (“CECL”) model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption; changes in our organization, management, compensation and benefit plans, and our ability to retain or expand our workforce, management team and/or our board of directors; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (such as securities, consumer or employee class action litigation), regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California DFPI (formerly DBO); our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K/A and Form 10-K for the year ended December 31, 2021, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

There can be no assurance that other factors not currently anticipated by RBB will not materially and adversely affect its business, financial condition and results of operations. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by the recent outbreak of the COVID-19 pandemic. Readers are cautioned not to place undue reliance on the Company’s forward-looking statements, which reflect management’s analysis and expectations only as of the date of such statements. Forward looking statements speak only as of the date they are made, and RBB does not intend, and undertake no obligation, to publicly revise or update forward looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221125005387/en/

David Morris

President and Chief Executive Officer

Chief Financial Officer

(714) 670-2488

Source: RBB Bancorp

FAQ

What does the Nasdaq notice mean for RBB Bancorp?

The Nasdaq notice indicates RBB Bancorp is currently not in compliance due to a late filing of its Form 10-Q.

What is RBB's plan to regain Nasdaq compliance?

RBB plans to submit a compliance plan to Nasdaq by January 20, 2023, and aims to file the overdue 10-Q by December 15, 2022.

What are the financial assets of RBB Bancorp?

As of September 30, 2022, RBB Bancorp had total assets of $3.9 billion.

When was RBB Bancorp's Form 10-Q due?

The Form 10-Q for the third quarter was due on November 9, 2022.