RBB Bancorp in Los Angeles announced Tuesday that President and CEO Alan Thian has taken an immediate leave of absence pending an internal investigation conducted by a special committee of RBB’s board. Chief Financial Officer David Morris takes over as interim president and CEO while continuing to perform his CFO duties.
RBB did not disclose the subject of its investigation. Morris had not returned a reporter’s call by deadline.
Thian is the only chief executive the $4.2 billion-asset RBB has ever known. He has served as president and CEO of the holding company since its creation in 2011. He has also been president and CEO of its operating subsidiary, Royal Business Bank, since it opened in November 2008.
On Jan. 24, RBB reported a record annual profit of $56.9 million, capping what Chairman James Kao called “a tremendous year for the bank.” On Tuesday, however, news of Thian’s leave prompted Ben Gerlinger, an analyst who covers RBB for Hovde, to downgrade its stock and slash his price target by $5, to $30.
“We do not anticipate a long investigation, but nevertheless we remain sidelined in our rating until there is more clarity in the company's leadership," Gerlinger wrote in a research note Tuesday.
RBB shares fell 15% to $21.90 in early trading Tuesday.
In May, RBB, which has expressed interest in acquiring Asian American banks, raised $120 million in a subordinated debt offering. In December, the company moved to expand to the San Francisco Bay region, announcing a deal to acquire Oakland-based Gateway Bank for $22.9 million in cash.
RBB has completed four deals in its 13-year history. Its
Thian’s leave comes a week after RBB announced the resignation of Chief Lending Officer Tammy Song. Song, who joined RBB in 2012 as a commercial lender, was appointed chief lending officer in 2021.
