Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Q2 2023 Earnings Presentation
20 slides from Rbb Bancorp's earnings presentation, Jul 25, 2023
Slide 1: 2023 Second Quarter Earnings Results
NASDAQ: RBB 2023 Second Quarter Earnings Results July 24, 2023
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,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “po
Slide 3: Corporate Governance Enhancements
Corporate Governance Enhancements Strengthened Senior Management Bench Transformed Board of Directors Former senior executives including CEO and CLO 9 out of 12 Independent Directors who served prior to the Board-directed resigned in 2022 internal investigation did not stand for re-election or were
Slide 4: 2nd Quarter 2023 Financial Highlights
2nd Quarter 2023 | Financial Highlights ($ in thousands, except per share data) 4Q22 1Q23 2Q23 Highlights Earnings & Profitability EPS $0.92 $0.58 $0.58 Net Income EPS Net Income $17,581 $10,970 $10,949 Pre-Provision Net Revenue* $27,189 $17,552 $15,902 $10.9 million $0.58 Net Interest Margin 4.26%
Slide 5: Strategically Well Managed Balance Sheet
Strategically Well Managed Balance Sheet Net loans to deposits ratio ($ in thousands, except per share data) 12/31/22 3/31/23 6/30/23 $ in Millions Cash and cash equivalents & ST investments $ 84,148 $ 231,303 $ 246,925 110.7% AFS debt securities 256,830 293,371 391,116 $3,295 $3,299 $3,153 HTM debt
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio $3.2 billion total HFI loans as of 6/30/23 Loan Portfolio Composition as of 6/30/23 By Business Diversified across industry lines Line: SFR1 - Mainly non-QM loans C&I - Majority secured by assets CRE2 SFR1 45% 49% SBA - Primarily SBA 7(a) loans for business acquisition or
Slide 7: Commercial Real Estate: Office Portfolio
Commercial Real Estate : Office Portfolio LTV Distribution $ in Thousands $19,273 CRE Office exposure is $45 million : 3.8% of CRE portfolio and 1.4% of total loans $9,158 $8,910 $4,066 $3,376 LTV distribution: $130 <45% 45%-55% 55%-65% 65%-75% 75%-85% >85% • Average weighted LTV ~57% • Over 70% of
Slide 8: Business Line Profile: CRE | C&D
Business Line Profile: CRE | C&D As of 6/30/23 CRE Loans C&D Loans CRE and C&D Portfolio ($mm) $1,183.4 million $256.9 million $276.9 $281.2 $256.9 Single Land Family Development 6.9% Other Owner 12.5% Occupied 22.1% Commercial Residential Construction Construction $1,312 Multifamily $1,288 43.7% 28
Slide 9: Residential Mortgage Portfolio
Residential Mortgage Portfolio as of 6/30/23 Distribution by Geography Distribution by LTV <=50 >50, <=55 >55, <=60 SoCal NY NorCal IL NJ NV Other >60, <=65 >65, <=70 >70 NV Other IL 1% 1% 4% NJ 2% >70 NorCal 9% <=50 6% 16% SoCal 40% >50, <=55 $1.55 billion 8% Residential >65, <=70 $457,782 Mortgage
Slide 10: Business Line Profile: C&I | SBA
Business Line Profile: C&I | SBA As of 6/30/23: C&I Loans SBA Loans C&I and SBA Portfolio ($mm) $131.5 million $53.5 million Unguaranteed Unsecured 1.9% Shared Guaranteed Nat'l Credits 11.0% $61.4 3.6% $58.5 $53.5 $201.2 $156.0 $131.5 Credit Lines Unguaranteed 96.4% Secured by RE 87.0% 12/31/22 3/31
Slide 11: Deposits
Deposits Uninsured Deposits Solid organic growth from retail deposit 12/31/22 3/31/23 6/30/23 Uninsured deposits decreased to 29% of total deposits as of 6/30/23 35% 29% 41% $394.7 million or 12.4% of deposit 59% 65% 71% accounts have banking relationships with RBB exceeding 10 years Uninsured Depos
Slide 12: Allowance for Credit Losses & Credit Costs
Allowance for Credit Losses & Credit Costs Allowance for Credit Losses $43,071 $43,092 $ in Thousands 1.35% Provision for credit losses of $380 thousand in 2Q23, 1.29% decreased from $2 million in 1Q23: $41,076 1.23% • ~$2.1 million decrease resulting mainly from $146 million decrease in loan portfo
Slide 13: Asset Quality Metrics: Non-Performing Assets
Asset Quality Metrics : Non-Performing Assets Total NPA / Total Assets Non-Performing Loans Non-Performing Loans by Region $42,439 by Type $ in Thousands Other Regions 1.04% 6% $27,013 $24,100 NY 1% Mortgage & Consume CRE 0.66% r $16,553 $22,498 0.61% 39% CA 54% CRE 93% CA C&I C&I NY $2,811 7% 12/31
Slide 14: Asset Quality Metrics: Loan Classifications and Delinquencies
Asset Quality Metrics : Loan Classifications and Delinquencies Special Mention Loans & Classified Loans by Special Mention Loans & Classified Loans Type $62,395 $ in Thousands $166,745 $ in Thousands $77,716 $104,178 $98,222 $20,991 $61,966 $14,836 $74,072 $89,029 $42,212 $24,150 CRE C&I Mortgage &
Slide 15: Noninterest Income Detail
Noninterest Income Detail $2.49 $2.35 $0.02 $2.36 $0.13 $0.04 $0.34 $ in millions $0.34 $0.34 2Q23 noninterest income of $2.5mm, up from $2.4mm in 1Q23, mainly due to $0.61 increase in wealth management $0.58 commissions and fees on deposit $0.73 accounts 2Q23 loan servicing fees decreased from $1.5
Slide 16: Operating Expense & Efficiency
Operating Expense & Efficiency Noninterest Expense Total Revenue & Efficiency Ratio $18.91 $18.52 $ in millions $ in millions $2.34 $2.53 53.80% $14.16 51.86% $3.01 $2.87 $2.61 $1.30 $1.36 $1.05 $2.40 $2.43 34.24% $1.20 $2.36 $9.86 $9.33 $41.35 $36.46 $34.42 $6.93 4Q22 1Q23 2Q23 Total Revenue Effici
Slide 17: Accumulation of Strong Capital Ratios
Accumulation of Strong Capital Ratios CET1 Capital Ratio Tangible Common Equity Ratio* 16.33% 16.91% 16.03% Accumulation of capital 10.65% 10.64% over quarters 10.40% Remains some of the 6.50% 6.50% 6.50% strongest capital ratios among peer banks 12/31/22 3/31/23 6/30/23 No stock buybacks 12/31/22 3
Slide 18: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations 18
Slide 19: Non-GAAP Reconciliation: Pre-Provision Net Revenue
Non-GAAP Reconciliation: Pre-Provision Net Revenue Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. These non-GAAP financial measures include “pre-provision net revenue.” Our management uses these non-GAAP financial measures i
Slide 20: Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets
Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets 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 value p