Form 4: RBB Bancorp Interim EVP/CFO Lynn Hopkins Granted Restricted and Performance Stock Units

Lynn Hopkins, Interim EVP/CFO of RBB Bancorp, was granted 5,634 restricted stock units (RSUs) and a maximum of 8,451 performance stock units (PSUs) on March 20, 2024.

Summary

• On March 20, 2024, Lynn Hopkins, the Interim EVP/CFO of RBB Bancorp, received a grant of stock units.
• The grant includes 5,634 restricted stock units (RSUs).
• The grant also includes a maximum of 8,451 performance stock units (PSUs).
• The RSUs will vest in three equal annual installments starting one year after the grant date.
• The PSUs will vest conditionally based on the achievement of certain performance goals and continued employment over a three-year period starting on March 20, 2024.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of stock units is a standard practice and suggests confidence in the executive and the company's future performance. The performance-based vesting adds a layer of positive incentive.

Positives

• The grant of RSUs and PSUs aligns the interests of the Interim EVP/CFO with the long-term performance of RBB Bancorp.
• The vesting schedule for the RSUs encourages continued service over a three-year period.
• The performance-based vesting of the PSUs incentivizes the achievement of specific performance goals.

Risks

• The PSUs are subject to performance conditions, and there is no guarantee that these conditions will be met, potentially resulting in fewer units vesting than the maximum amount.
• The vesting of both RSUs and PSUs is contingent on continued employment, meaning that if Lynn Hopkins leaves the company before the vesting dates, she may forfeit the unvested units.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedules of the RSUs and PSUs.

Industry Context

Granting stock units to executives is a common practice in the banking industry to incentivize performance and align management's interests with those of shareholders. The specific terms of the grant, such as the vesting schedule and performance conditions, are tailored to the company's specific goals and circumstances.

Comparison to Industry Standards

• Equity compensation is a standard practice across the financial industry.
• Companies like JPMorgan Chase, Bank of America, and Citigroup regularly grant stock options, restricted stock units, and performance-based equity to their executives.
• The vesting schedules and performance metrics associated with these grants vary widely based on company size, performance goals, and individual executive roles.
• Without more detailed information on RBB Bancorp's specific performance metrics and vesting terms, it's difficult to directly compare this grant to industry benchmarks.

Stakeholder Impact

• Shareholders may view the grant positively as it aligns executive interests with company performance.
• Employees may see the grant as a sign of confidence in the company's leadership.
• The grant has no immediate impact on customers, suppliers, or creditors.

Next Steps

• The RSUs will vest in three equal annual installments beginning one year after the grant date.
• The PSUs will vest conditionally based on the achievement of certain performance goals and continued employment over a three-year period starting on March 20, 2024.

Key Dates