Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (March 2021)
24 slides from Rbb Bancorp's investor presentation, Mar 1, 2021
Slide 1: RBB Bancorp Investor Presentation March 2021
RBB BANCORP SEA KEE Investor Presentation March 2021 NASDAQ: RBB
Slide 2: Forward-Looking Statements
Forward-Looking Statements SS cemain matters et forth herein iniusng the exis hereto) constitute forward-looking statements within the meoning of the Privote Secures iigaton Reform Aetof 2995, inlusing {Jorwarooking statements reatng to RBB Bancorp's("RBB"curen business plans, fture irarcal position
Slide 3: Experienced Leadership Team
Experienced Leadership Team @ Average 34 years of bank management experience in finance, lending, credit, risk, strategy and branch operations SS oer os cess wee Ler eer es Seen eer eg ere oe he ee bovis More see + sopaintes Ev? and Chie Finacial Officer‘) ofthe Sank and Company in 2030 Erceutve vee
Slide 4: RBB Bancorp — Who We Are
RBB Bancorp — Who We Are ‘@ Established in 2008 and headquartered in Los For the Three Months Ended December 31, 202¢ Angeles, California + $3.abillonasset Chinese-American, business. (ENERO TCT oriented community bank Total Assets $3,350 @ 22 traditional branches Gross Loans, Including Held for Sal
Slide 5: Investment Highlights
Investment Highlights ‘@ High-performing community bank with defined and proven strategy to grow both organically and through acquisitions + Insider ownership (including family holdings) at 36% and high deposit balances, aligns interests with public shareholders + Experienced management team and Boa
Slide 6: COVID-19 Loan Modification Update
COVID-19 Loan Modification Update + Asof January 15, 2021, total deferred loans were $49.8 million or 1.8% of loans outstanding* * Total deferred loans decreased $384.2 million, or 89% from June 30, 2020 to January 15, 2021. + The large majority of remaining deferrals are real-estate secured June 30
Slide 7: Our History
Our History SS SSS SSS SS Historical Progression of Franchise Growth January: Established on © Moy: Acquired Raised $62 milion in PO Received Outstanding Opened Sepigmber: Acaul Overseas TaiwanesesME | [Earned FindleyReports’ | [Earned indleyReports’ | [Janvary-Acquired Basses Box | [2 ‘Super Premie
Slide 8: Our Current Footprint
Our Current Footprint ‘@DCoast-to-Coast footprint of 22 branches provide banking services to the largest Asian- American communities in the nation arcadio senGabrie Cerritos Torrance Brooklyn, MY (2) biamend ar Invine ten, NY los Angeles (2) Oxnard (3) Monterey Park WestlakeVilloge lmhurst, NY Rowla
Slide 9: Substantial Opportunities for Acquisitions
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. ooo @ Chinese-American bank universe comprised of over 35 banks’: * Publicly-traded * Locally-owned + Subsidiaries of Taiwanese or Chinese banks ©® Other Asian-American banks also represent compelling acquisition oppo
Slide 10: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Total Loans ($mm) Total Deposits (Smm) Mortgage Loans Neninteres-besrng Osposts - $2,635 sircere-besrieg Deposks ian $2249 $2,757 2014 201520162017 2018-2019 2020 2014 20152016 2017-2018 2019-2020 Net Income ($mm) Return on Average Tangi
Slide 11: Profitability Drivers
Profitability Drivers SE Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabilities eet on arming assets eco of meres sexing Lables eet on TexaLoans e003 of TexaiDeposts ise (089% —ogo% 082% Be 069% za" 205” 2016 | 2017 ao 20192020 pois” 21s. === S010 Net Interest Margin (
Slide 12: Loan Portfolio Composition (December 31, 2020)
n (December 31, 2020) ® $2.71 billion total HFI loans as of December 31, 2020? ® Diversified across industry lines + Single Family Residential-Mainly non-OM mortgages? By + Commercial Real Estate Owneroccupied and investorowned® Business Line’: + Commercial andindustral- Majority securedby assets +
Slide 13: Disciplined Credit Culture
Disciplined Credit Culture SSS————————————————————————————————— Nonperforming Loans’ / Total Loans Nonperforming Assets? / Total Assets 077% osm OK cae 0% Big... (0.06%) ee ee ee ee ee) mu 21S aS] 020 (8) Nongertorming lars nciseranallan loans pa dua 0 deytr more and sllacning interes andloansmedBad
Slide 14: Deposit Portfolio
Depo: @ Strongest growth comingin DDAs @ Top 10 Deposit Relationships = $385.3 million ) @ (14.7% of total deposits) + 3 ofthe Top 10 Relationships are with Directors and shareholders of the Company; $61.5 million, or ~16% of Top 10 total For the Three Months Ended December 31, 2020 Noninterest-Bear
Slide 15: Consolidated Capital Ratios
Consolidated Capital Ratios Consolidated Capital Ratios Consolidated Capitalization Table Teal Long-Term Debt ng Term Date sions Long-terments advance 1500 uboroinatad bane 143 otal Long-Term Debt 32587 hatenoiers Eauity ommon Stock 52643 \deivonalPaicincapsal 49 reasury Stock t ieteined Earoinge a2
Slide 16: Interest Rate Risk Profile
Interest Rate Risk Profile ® 12 month Nil sensitivity is neutral to slightly asset sensitive ein a flat to declit @ Economic Value of Equity (“EVE”) sensitivity is neutral to slightly ig environment 12-Month Net Interest Income Sensitivity Economic Value of Equity Sensitivity Immediate Change in Rat
Slide 17: Outlook
Outlook ® Net interest margin expected to see modest expansion + Average CD costs will decrease due to rollover of higher cost CDs in the 1** quarter + Loan and deposit rate environment will remain competitive + Widening yield curve will increase NIM expansion ® Do not expect loan sales to return to
Slide 18: Appendix
Slide 19: Business Line Profile: 1-4 Single Family Residential Lending
Business Line Profile: 1-4 Single Family Residential Lending SS As of December 31, 2020: @ Average: LTV of 56.6: ICO score of 757; duration of approximately 4 years @ Average current start rates: + 4.00% plus 0-1% in points; reprices at 7 years to one-year CMT plus 2.50% SFR Loans SFR Portfolio Grow
Slide 20: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of December 31, 2020: CRE Loans C&D Loans CRE and C&D Portfolio Growth $1,004 million $186.7 million (Dollars in millions) Land Aca. & Development 9.4% Occupied 198% SD ~21.9% fixed rate Hybrid loans are considered fixed rate loans 20m 201520162017
Slide 21: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&l Lending | SBA Lending As of December 31, 2020: C&l Loans SBA Loans C& and SBA Portfolio Growth $290.1 million $97.8 million (ollors in mitions) ‘Bank Sub Debt 28% 196% 2015 20162072018 «2019-2020 Cai Loens 18598 Loons D LT
Slide 22: Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets
Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets SS SS ‘Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. These non-GAAP financial measures ‘include “tangible common equity to tangible assets,” “tangible Book
Slide 23: Regulatory Reporting to Financial Statements: Adjusted Core Deposits
Regulatory Reporting to Financial Statements: Adjusted Core Deposits SSS ‘Some of the financial measures included in this presentation and in forms 10-Q & 10-K fled with the EC differ from those reported on the FRB Y-9{c) report. These {financial measures include “core deposits to total deposit.” Ou
Slide 24: How We Measure Core Deposits
How We Measure Core Deposits @® RBB reviews all deposits over $250K on a quarterly basis @® Core deposits are traditionally defined as all deposits less time deposits greater than $250K > The Bank measures core deposits as: < $250,000 Time Deposits Demand Deposits Savings Deposits | vee of the follo