FIG Partners Advised RBB Bancorp In $116.8 Million Acquisition Of First American International Corp.

FIG Has Now Completed 99 M&A Transactions Totaling More Than
$4.5 Billion In Transaction Value To Date

ATLANTA, April 23, 2018 — RBB Bancorp (NASDAQ:RBB) and First American International Corp. (OTCQB:FAIT) have signed a definitive merger agreement in a cash and stock transaction valued at $116.8 million, or $52.32 per share.

FIG Advised RBB Bancorp In $116.8 Million Acquisition Of First American International Corp.Under the terms of the agreement, all of First American International Corp. (First American) common shares will be exchanged for approximately 3 million shares of RBB Bancorp (RBB) common stock and $33.7 million in cash.

Existing RBB shareholders will own approximately 84.6% of the outstanding shares of the combined company, and First American shareholders will own approximately 15.4%.

First American’s subsidiary, First American International Bank, is a community development financial institution and a minority depository institution with total assets of $873 million, total gross loans of $715 million, and total deposits of $630 million as of December 31, 2017. First American serves the Chinese-American communities in the boroughs of Manhattan, Queens and Brooklyn, New York. 

RBB expects the transaction to be accretive to earnings per share in 2019 in the mid-teens. RBB also expects to incur modest tangible book value per share dilution of approximately 4.1% upon closing of the transaction, with a tangible book value dilution payback period of less than two years. The earnings per share accretion estimates are based on estimated cost savings of approximately 30% of First American’s non-interest expense, with 25% of the cost savings phased in during 2018 and 100% phased in during 2019. The earnings per share accretion estimates do not include any assumption of revenue synergies.

“We are very pleased to announce this transaction with First American, which enables us to expand the RBB franchise to the New York market and serve its large community of Asian-Americans,” said Alan Thian, Chairman, President and CEO of RBB Bancorp. “First American is an excellent cultural fit with RBB, as we have complementary business models, strong residential mortgage loan production platforms, and a focus on the Chinese-American market. On a pro forma basis, the addition of First American will enable RBB to surpass $2.5 billion in total assets and provide additional scale that we believe will enhance our overall efficiencies and improve our level of profitability. We believe that the combined company will be well positioned to continue growing the RBB franchise and creating value for our shareholders in the years ahead.”

The FIG team included Greg Gersack, Senior Managing Principal and Co-Head of Investment Banking and Patrick Nicolini, Senior Vice President.

More information is available here.

Since 2003, FIG has been the trusted advisor to community banks and investors. To learn more about FIG’s investment banking services, visit www.figpartners.com.

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