Gary Fan, the Executive Vice President and Chief Operations Officer of RBB Bancorp (NASDAQ:RBB), recently executed a significant transaction involving the company's stock. According to a filing with the Securities and Exchange Commission, Fan sold 12,000 shares of RBB Bancorp stock on December 6, 2024. The shares were sold at an average price of $23.4497, resulting in a total transaction value of approximately $281,396. This transaction comes as RBB Bancorp, with a market capitalization of $411 million, trades near its 52-week high following a notable 36% price increase over the past six months. According to InvestingPro analysis, the stock currently appears slightly overvalued relative to its Fair Value.
This sale was part of a cashless exercise of stock options, where Fan exercised options for 12,000 shares at a price of $21.17 per share before selling the same number of shares. Following these transactions, Fan no longer holds any of the shares acquired through this specific option exercise. The stock currently trades at a P/E ratio of 12.38 and offers a dividend yield of 2.76%.
In addition to this sale, Fan holds various other equity interests in RBB Bancorp, including restricted stock units and performance stock units, which are subject to vesting conditions over the coming years. For deeper insights into RBB Bancorp's insider transactions and comprehensive financial analysis, including additional ProTips and detailed valuation metrics, visit InvestingPro.
In other recent news, RBB Bancorp reported a net income of $7 million, or $0.39 per share, in the third quarter of 2024. This included significant one-time items such as a recovery on a charged-off loan and a credit provision. The bank's net interest margin (NIM) saw a slight increase, with expectations for further expansion as short-term interest rates decline. Loan and deposit portfolios both showed growth, with a notable reduction in reliance on wholesale deposits. However, non-performing loans rose to $60.7 million, but the management is optimistic about resolving these issues by mid-2025.
In recent developments, approximately $800 million in CDs are set for repricing in the next quarter, and the bank anticipates a 6% annualized loan growth rate, largely driven by the commercial real estate sector. Despite an increase in non-performing loans, the bank's liability-sensitive balance sheet presents opportunities for margin expansion. These recent updates from RBB Bancorp provide valuable insights into the bank's financial health and strategic direction.
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