RBB Bancorp announced that it has entered into a definitive agreement to acquire Gateway Bank, F.S.B. in a cash transaction valued at approximately $22.9 million, 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 $172.4 million, total gross loans of $123.1 million, total deposits of $147.5 million, and total tangible equity of $15.5 million 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.
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“We are very pleased to announce this transaction with Gateway Bank and our entry into the San Francisco Bay Area,” said Mr. Alan Thian, President and CEO of RBB Bancorp. “Expansion into the Bay Area, with one of the largest Asian-American communities in the United States, has long been a goal of ours. We are excited to enter this market and bring our relationship-based banking model to the Bay Area.”
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“With our acquisition of Gateway Bank, Royal Business Bank will have a physical presence in six of our nine target markets,” said Dr. James Kao, Chairman of RBB Bancorp. “Gateway Bank provides a profitable base from which to continue our growth in the Bay Area.”
“After 31 years of serving the Chinatown Community of Oakland and the broader Bay Area as an independent community bank, we are excited for the opportunity to join Royal Business Bank,” said Glen Terry, CEO of Gateway Bank. “We believe their community bank model, culture and commitment to high-quality client service make Royal Business Bank an excellent partner for Gateway Bank.”
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