What RBB Bancorp told the SEC could break it.

RBB is California-based and concentrated there: at December 31, 2025, approximately 58.8% of its total loan portfolio was secured by California real estate or California businesses (and 66.8% of its unguaranteed SBA portfolio was in California), and the computer systems running its websites and some back-ups are in California — a state historically vulnerable to earthquakes, wildfires and other natural disasters — so a downturn in California real estate/economy or a major disaster would disproportionately raise credit losses and could disrupt operations.

“We are based in California and at December 31, 2025, approximately 58.8% of the aggregate outstanding principal of our total loan portfolio was secured by real estate located in California or businesses in California.”

RBB's funding has some concentration and leverage constraints: its ten largest depositor relationships were ~12.5% of deposits at December 31, 2025 (largest ~2.0%) and these can fluctuate, and it relies on FHLB long-/short-term advances ($130.0M outstanding) alongside deposits for liquidity; it also carries subordinated notes that limit its ability to pay common dividends (and bar dividends if interest payments are not current), and as a holding company Bancorp depends on the separate Bank for funds, so deposit runoff or capital constraints would pressure liquidity and distributions.

“our ten largest depositor relationships accounted for approximately 12.5% of our deposits at December 31, 2025. Our largest depositor relationship accounted for approximately 2.0% of our deposits at December 31, 2025. These deposits can and do fluctuate.”

RBB is subject to extensive bank regulation, including the Dodd-Frank Act, FDIC insurance assessments and regulatory capital requirements (where regulators can set institution-specific minimums above industry guidelines, constraining growth and dividends), and — given its international correspondent-banking and trade-finance activity across China and Asia — heightened anti-money-laundering and OFAC economic-sanctions examination; failure to maintain adequate AML/OFAC programs or to comply could bring serious legal and reputational consequences.

“Banking regulators also examine banks for compliance with the economic sanctions regulations administered by OFAC. Failure of a financial institution to maintain and implement adequate anti-money laundering and OFAC programs, or to comply with all of the relevant laws or regulations, could have serious legal and reputational consequences for the institution.”

RBB serves Asian-American (heavily Chinese) communities and provides trade finance, letters of credit, SWIFT and foreign exchange, maintaining correspondent relationships with many of the largest banks in China, Taiwan, Vietnam, Hong Kong and Singapore; consequently, a trade war or governmental action on tariffs/international trade agreements, and military or geopolitical conflicts — including rising tensions between China and Taiwan — could negatively affect its customers' costs, product demand and the broader economy, adversely affecting its credit quality and results.

“A trade war or other governmental action related to tariffs or international trade agreements or policies, as well as military conflicts, including the military actions between Ukraine and Russia, war and conflicts in the Middle East and tension between China and Taiwan, or other potential epidemics or pandemics, have the potential to negatively impact our and/or our customers' costs, demand for our customers' products”