Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (May 2022)
23 slides from Rbb Bancorp's investor presentation, May 20, 2022
Slide 1: Investor Presentation May 2022
Investor Presentation May 2022 NASDAQ: RBB
Slide 2: Disclosure Statement
Disclosure Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words “believes,” “expect,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “pot
Slide 3: RBB Bancorp — Who We Are
RBB Bancorp — Who We Are ® Established in 2008 and headquartered in Los For the Three Months Ended March 31, 2022° Angeles, California + $4.0 billion asset Chinese-American, business-oriented community Bank Total Assets $4,014 @ 24 traditional branches Gross Loans, Including Held for Sale $3,010 * 1
Slide 4: 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 21% and high deposit balances, aligns interests with public shareholders + Experienced management team and Boa
Slide 5: Experienced Leadership Team
Experienced Leadership Team SE @ Average 34 years of bank management experience in finance, lending, credit, risk, strategy and branch operations David Morris eee ‘+ Appointed Interim President and Chief Executive Officer in February 2022. Interim President, Chief ee Tearswith Res) | APPOInted EVP a
Slide 6: Our History
Our History Historical Progression of Franchise Growth January: Established D Beye | [Mov Acauiegd ie Raised $62 million in IPO Received Outstanding a) Overseas TaiwaneseSME | Earned FindleyReports’ || Earned Findley Reports ropa Award “Super Premier” status || “Super Premier” status ~— fin, bie. 8
Slide 7: Our Current Footprint
Our Current Footprint @ Coast-to-Coast footprint of 24 branches provide banking services to the largest Asian- American communities in the nation So California, Nevada & Hawaii Arcadia Torrance New York and Edison, NJ Cerritos vine Diamond Bar Oxnard Brooklyn, NY (3) Los Angeles (2) Westlake Village
Slide 8: Substantial Opportunities for Acquisitions
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. en ©® Chinese-American bank universe comprised of over 37 banks!: + Publicly-traded + Locally-owned * Subsidiaries of Taiwanese or Chinese banks ® Other Asian-American banks also represent compelling acquisition oppor
Slide 9: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth sm Loans Held for Investment ("H Noninterest-bearing Deposits Mortgage Loans Held For Sale ("HFS") sens 2887 $3,010 nielesienae $3386 6s seg $2,577 $2,305 $2,635 52,14q $2289 1,375 | ll l 7 ill U l l i 2017 2018 2019 2020 2021 1Q22 2017
Slide 10: Profitability Drivers
Profitability Drivers Se Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabilities ee View on Earning Assets w-Cos of Interest-Bearing Liabilities 224% —eYield on Total Loans —e=Cos of Total Deposits 5.15% 5.66% 5.57% 1.69%, 1.15% 0.84% 409% 4.00% 0.40% 027% 201s 2017S 20
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio @ $3.0billion total HFI loans as of March 31, 2022? Diversified across industry lines + SFR - Mainlynon-QM mortgages? + CRE- Owner occupied and Investor owned + C8d-- Majority secured by assets + SBA- Primarily SBA 7(a) loans for business acquisition or working capital @ 4
Slide 12: Business Line Profile: SFR Lending
Business Line Profile: SFR Lending As of March 31, 2022: @® Average: LTV of 57%; FICO score of 761; duration of approximately 2.5 years @® Average current start rates: Our non-qualified SFR loan productis a 7 year hybrid adjustable mortgage, which re-prices at 7 years to the 1 year CMT plus 2.50%, a
Slide 13: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of March 31, 2022: CRE Loans C&D Loans CRE and C&D Portfolio Growth (Smm) $1,218.0 million $346.8 million Land Acq. & Development 9.6% Owner Occupied 173% Multifamily 43.2: Residential Construction ‘D ~14.7% of CRE loans are fixed rate or hybrid lo
Slide 14: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&I Lending | SBA Lending As of March 31, 2022: C&I Loans SBA Loans C&I and SBA Portfolio Growth ($mm) $268.7 million $67.7 million Unguaranteed Unsecured 22% Bank Sub Debt 25% Glorantees 88% Unguaranteed SBA Loan: By Business: By Location: C&I Loans SBA Loans BB Baxconr @ Lat
Slide 15: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming Loans’ / Total Loans Nonperforming Assets? / Total Assets 0% OTK —g.60%6 055% cuit 021% | 0.15% 016% 0.15% 201s «2017S 2018 = 2019S 2020S 20211022 201s = «2017S 2018S 20192020202. Allowance for Loan Losses / Total Loans Net Charge-Offs (Recoveries) / Average
Slide 16: Deposit Portfolio as of March 31, 2022
Deposit Portfolio as of March 31, 2022 @ Top 10 Deposit Relationships = $730.0 million (23% Deposit Portfolio Compo: of total deposits) + Lofthe Top 10 Relationships are with directors Total: $3.17 billion and shareholders of the Company, $39.5 million, or ~1% of Top 10 total Br jumbo Time* 17.5% No
Slide 17: Interest Rate Risk Profile
Interest Rate Risk Profile @ 12month net interest income (“NII”) sensitivity is asset sensitive @ Economic Value of Equity (“EVE”) sensitivity is neutral 12-Month Nil Sensitivity EVE Sensitivity Immediate Change in Rates Immediate Change in Rates March 31, 2022 March 31, 2022 20.00% 17.86% ania 4.69
Slide 18: Interest Rate Risk Management
Interest Rate Risk Management Well positioned for higher rates with a One Year Positive Gap Ratio of 23% Interest Rate 12 months Rate Sensitive Assets at 56% of Total Assets Loan Portfoli * $1.58 billion matures or resets within 12 months * $1.02 billion of loans are at or below their floors Given a
Slide 19: Consolidated Capital Ratios
Consolidated Capital Ratios Consolidated Capital Ratios Consolidated Capitalization Table (Dottars in millions, except per share amounts) ‘As of March 31, 2022 ‘etual 21.96% Long-Term Debt Long-Term Debt $1732 Long-termFHLB Advance 150.0 TTrustPreferred Securities 146 [Total Long-Term Debt 33378 sha
Slide 20: Outlook
Outlook ‘@ Net interest margin expected to remain stable or contract modestly * Asset sensitive balance sheet and expect increase in margin * Loan and deposit rate environment will rem: competitive @ Continued balance sheet growth should drive furthet provement in profitability + Growth will be slow
Slide 21: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 22: Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets
Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets 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 val
Slide 23: Regulatory Reporting to Financial Statements: Adjusted Core Deposits
Regulatory Reporting to Financial Statements: Adjusted Core Deposits Se ‘Some of the financial measures includedin this presentation and in forms 10-Q& 10-Kfiled with the SEC differ from those reported on the FRB Y-9(c) report. These financial measures include “core deposits to total deposits.” Qurm