Slide 1: Investor Presentation
Investor Presentation October 2022 NASDAQ: RBB 1
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: RBB Bancorp – Who We Are
RBB Bancorp – Who We Are Overview Financial Highlights Established in 2008 and headquartered in Los For the Three Months Ended September 30, 2022: Angeles, California • $3.9 billion asset Chinese‐American, business‐oriented Balance Sheet ($mm) community bank Total Assets $3,905 24 traditional branch
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 36.94% and high deposit balances, aligns interests with public shareholders • Experienced management team and Boa
Slide 5: Experienced Leadership Team
Experienced Leadership Team Average 33 years of bank management experience in finance, lending, credit, risk, strategy and branch operations Name / Title Experience Background David Morris • Appointed President and Chief Executive Officer in October 2022. 35 years President, Chief Executive • Appoin
Slide 6: Our History
Our History Historical Progression of Franchise Growth January: Established July: Acquired Earned Findley Reports’ September: Acquired “Super Premier” status May: Acquired Raised $62 million in IPO Received Outstanding Opened Overseas Taiwanese SME Earned Findley Reports’ Acquired branch in January:
Slide 7: Our Current Footprint
Our Current Footprint Coast‐to‐Coast footprint of 24 branches provide banking services to the largest Asian‐ American communities in the nation So California, Nevada & Hawaii Arcadia Torrance New York and Edison, NJ Cerritos Irvine Diamond Bar Oxnard Brooklyn, NY (3) Los Angeles (2) Westlake Village
Slide 8: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese‐American Banks Across the U.S. Chinese‐American bank universe comprised of over 23 banks¹: • Publicly‐traded • Locally‐owned • Subsidiaries of Taiwanese or Chinese banks Other Asian‐American banks also represent compelling acquisition opportunities
Slide 9: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Total Loans ($mm) Total Deposits ($mm) Loans Held for Investment ("HFI") Noninterest‐bearing Deposits Mortgage Loans Held For Sale ("HFS") $3,222 $3,386 $2,936 Interest‐bearing Deposits $2,960 $2,757 $2,635 $2,577 $2,305 $2,249 $2,144 $1
Slide 10: Profitability Drivers
Profitability Drivers Yield on Average Interest‐Earning Assets Cost of Average Interest‐Bearing Liabilities Yield on Earning Assets Cost of Interest‐Bearing Liabilities 2.24% Yield on Total Loans Cost of Total Deposits 5.75% 5.66% 5.57% 1.69% 5.54% 5.53% 1.57% 5.18% 5.12% 1.28% 1.25% 1.15% 1.56% 5.3
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Composition September 30, 2022 Other $3.2 billion total HFI loans as of September 30, 20221 1% By Diversified across industry lines Business SFR1 • SFR ‐ Mainly non‐QM mortgages2 Line: 42% CRE2 49% • CRE ‐ Owner occupied and Investor owned3 • C&I ‐ Majority
Slide 12: Business Line Profile: SFR Lending
Business Line Profile: SFR Lending As of September 30, 2022: Average: LTV of 57.9%; FICO score of 763; duration of approximately 1.8 years Average current start rates: • Our non‐qualified SFR loan product are 5 year and 7 year hybrid adjustable mortgage, which re‐prices to the 1 year CMT plus 3.00%
Slide 13: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of September 30, 2022: CRE Loans C&D Loans CRE and C&D Portfolio Growth ($mm) $1,220.8 million $353.5 million Land Acq. & $303.1 $353.5 Development 9.5% Single Family Owner $186.7 7.7% Occupied 21.0% Commercial $113.2 $96.0 Multifamily Construction
Slide 14: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&I Lending | SBA Lending As of September 30, 2022: C&I Loans SBA Loans C&I and SBA Portfolio Growth ($mm) $204.8 million $61.9 million Bank Sub Debt Unguaranteed 2.5% Unsecured $131.4 $84.5 $97.8 Shared Guaranteed 2.2% $75.0 $76.1 Nat. Credits 9.9% $159.0 12.8% $61.9 $108.8 $
Slide 15: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming Loans¹ / Total Loans Nonperforming Assets² / Total Assets 0.72% 0.71% 0.60% 0.59% 0.55% 0.50% 0.48% 0.50% 0.36% 0.30% 0.21% 0.15% 0.16% 0.15% 2016 2017 2018 2019 2020 2021 3Q22 2016 2017 2018 2019 2020 2021 3Q22 Allowance for Loan Losses / Total Loans Net Cha
Slide 16: Deposit Portfolio as of September 30, 2022
Deposit Portfolio as of September 30, 2022 Deposit Portfolio Composition Top 10 Deposit Relationships = $539.4 million (18.2% of total deposits) • 2 of the Top 10 Relationships are with directors Total: $2.96 billion 3 and shareholders of the Company, $69.0 million, or ~12.8% of Top 10 total Brokere
Slide 17: Interest Rate Risk Profile
Interest Rate Risk Profile 12 month net interest income (“NII”) sensitivity is asset sensitive Economic Value of Equity (“EVE”) sensitivity is neutral 12‐Month NII Sensitivity EVE Sensitivity Immediate Change in Rates Immediate Change in Rates September 30, 2022 September 30, 2022 12.00% 0.00% 10.96
Slide 18: Interest Rate Risk Management
Interest Rate Risk Management Well positioned for higher rates with a One Year Positive Gap Ratio of 6.6% Loan and Deposit Mix Interest Rate Risk Position (within 12 months) Rate Sensitive Assets at 43.1% of Total Assets HFI Loans $3.2 billion Total Deposits $3.0 billion Loan Portfolio * $1.4 billio
Slide 19: Consolidated Capital Ratios
Consolidated Capital Ratios Consolidated Capital Ratios Consolidated Capitalization Table (Dollars in millions, except per share amounts) As of September 30, 2022 23.72% Actual Long‐Term Debt Long‐Term Debt $173.4 Long‐term FHLB Advance 150.0 Trust Preferred Securities 14.7 Total Long‐Term Debt $338
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 remain competitive • Expect deposit pricings to increase in the 4th quarter Continued balance sheet growth should drive fu
Slide 21: Appendix: Non-GAAP Reconciliations
Appendix: Non‐GAAP Reconciliations 21
Slide 22: 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
Slide 23: Regulatory Reporting to Financial Statements: Adjusted Core Deposits
Regulatory Reporting to Financial Statements: Adjusted Core Deposits Some of the financial measures included in this presentation and in forms 10‐Q & 10‐K filed with the SEC differ from those reported on the FRB Y‐9(c) report. These financial measures include “core deposits to total deposits.” Our m