Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (June 2018)
31 slides from Rbb Bancorp's investor presentation, Jun 12, 2018
Slide 1: RBB Bancorp Investor Presentation May 2018
Exhibit 99.1 RBB BANCORP Investor Presentation May 2018 NASDAQ: RBB
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to RBB’s current business plans, its future fina
Slide 3: Experienced Leadership Team
Experienced Leadership Team Average 32 years of bank management experience in finance, lending, credit, risk, strategy and branch operations Name / Title Experience Background Yee Phong (Alan) Thian President & Chief Executive Officer 36 years • Chairman, President and Chief Executive Officer (“CEO”
Slide 4: RBB Bancorp – Who We Are
RBB Bancorp – Who We Are Overview Established in 2008 and headquartered in Los Angeles, California • $1.7 billion asset Chinese-American, business- oriented community bank 13 traditional branches • 12 located in Southern California • 1 in Nevada Four principal business lines: • Commercial Real Estat
Slide 5: Investment Highlights
Investment Highlights High-performing community bank with defined and proven strategy to grow both organically and through acquisitions • High level of insider ownership and deposit concentration aligns interest with investors • Experienced management team and Board of Directors with demonstrated in
Slide 6: Our History and Strategy
Our History and Strategy Historical Timeline Raised $61.8 million in IPO Earned Findley Reports’ “Super Premier” status 2017 Earned Findley Reports’ “Super Premier” status 2015 May: Acquired Received Outstanding Overseas Taiwanese SME Award 2013 January: Established July: Acquired September: Acquire
Slide 7: Our Current Footprint
Our Current Footprint Branches (13) LPO (1) Los Angeles County, California Arcadia Cerritos Diamond Bar Los Angeles (Downtown) Los Angeles (Westwood) Los Angeles (Silver Lake) Monterey Park Rowland Heights San Gabriel Torrance City of Industry* *Loan Production Office Ventura County, California Oxna
Slide 8: Key Highlights of Our Current Markets
Key Highlights of Our Current Markets: Los Angeles County, CA | Ventura County, CA | Clark County, NV Part of the Los Angeles-Long Beach-Anaheim, California Metropolitan Statistical Area (“MSA”) • Largest MSA in California with over 13 million residents, second largest MSA in the United States Los A
Slide 9: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. Chinese-American Bank¹ Locations in the U.S. (as of June 2017) Chinese-American bank universe, including RBB, comprised of 38 banks¹: • 4 publicly-traded • 30 locally-owned • 4 subsidiaries of Taiwanese or Chinese ban
Slide 10: First American International Bank Proposed Transaction
First American International Bank Proposed Transaction RBB BANCORP + FIRST AMERICAN INTERNATIONAL BANK Expands the RBB franchise to the New York market • Grants RBB access to the largest Asian-American population in the US with 2.3 million Asian-Americans in the New York City MSA Creates $2.5+ billi
Slide 11: Franchise Highlights
Franchise Highlights ($ in millions) California Branch Locations Branches (8) Pro Forma Financial Highlights(1) New York City Branch Locations Assets $2,564 Loans $2,086 Deposits $1,967 Equity $345 Market Cap.(1) $529 Branches 21 1) Pro forma as of December 31, 2017, with the exception of market cap
Slide 12: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Total Assets ($mm) 2012 - Q1 2018 CAGR = 23.1% $1,715 $1,691 $1,396 $1,023 $926 $723 $576 2012 2013 2014 2015 2016 2017 Q1 2018 Total Loans ($mm) Gross Loans (Excluding Held for Sale) Mortgage Loans Held For Sale 2012 - Q1 2018 CAGR = 32
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio Diversified across industry lines and minimal demand for non-mortgage consumer credit $1.26 billion total loans as of March 31, 2018 • 84% originated vs. 16% acquired Average yield on loans of 5.69% for the first quarter of 2018 Loan Portfolio Growth: Originated vs. Acquir
Slide 14: Business Line Profile
Business Line Profile CRE Lending Real estate loans for owner occupied and non-owner occupied commercial property; includes construction and land development (“C&D”) loans High quality credits • Low LTV ratios (policy limit of 75%) • Income-producing properties; strong cash-flow characteristics • St
Slide 15: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of March 31, 2018: CRE Loans C&D Loans $500.1 million $101.2 million As of March 31, 2018: CRE Loans C&D Loans $500.1 million $101.2 million Single Family 6.8% Land Acq. & Development 9.1% Multifamily 21.5% Owner Occupied 39.9% Commercial Construct
Slide 16: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&I Lending | SBA Lending As of March 31, 2018: C&I Loans SBA Loans $278.4 million $114.7 million Purchased Receivables 3.5% Bank Sub Debt 1.3% Unguaranteed Unsecured 3.3% Unguaranteed Secured by RE 60.6% Shared Nat. Credits 29.3% Credit Lines¹ 65.9% Guaranteed 36.1% Unguarant
Slide 17: Business Line Profile: 1-4 Single Family Residential Lending
Business Line Profile: 1-4 Single Family Residential Lending As of March 31, 2018: No nonperforming loans¹ in the SFR portfolio Average: LTV of 59.5%; FICO score of 752; duration of approximately 4 years Current start rate of 4.75%; reprices after 7 years to one-year LIBOR plus 2.75% SFR Loans $451.
Slide 18: CRE Concentration Below Interagency Guidance
CRE Concentration¹ Below Interagency Guidance RBB has demonstrated the ability to pursue acquisitions, including targets with significant CRE concentrations, then immediately manage down their CRE concentration post transaction closing • Los Angeles National Bank: Acquisition completed May 2013 • To
Slide 19: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming Loans¹ / Total Loans 2.56% 0.91% 0.77% 0.58% 0.55% 0.35% 0.21% 2012 2013 2014 2015 2016 2017 Q1 2018 Allowance for Loan Losses / Total Loans 2.18% 1.31% 1.26% 1.26% 1.28% 1.10% 1.11% 2012 2013 2014 2015 2016 2017 Q1 2018 Nonperforming Assets² / Total Assets 1
Slide 20: Deposit Portfolio as of March 31, 2018
Deposit Portfolio as of March 31, 2018 Strongest growth coming in DDAs Top 10 Deposit Relationships = $338.6 million (24.6% of total deposits) • 5 of the Top 10 Relationships are with Directors and shareholders of the Company; $115.4 million, or ~34% of Top 10 total For the Three Months Ended March
Slide 21: Attractive Net Interest Spread
Attractive Net Interest Spread Yield on Average Interest-Earning Assets 5.35% 5.14% 5.23% 5.13% 5.01% 4.44% 4.41% 2012 2013 2014 2015 2016 2017 Q1 2018 Net Interest Spread 4.37% 4.19% 4.20% 3.85% 3.87% 3.48% 3.32% 2012 2013 2014 2015 2016 2017 Q1 2018 Cost of Average Interest-Bearing Liabilities 1.3
Slide 22: Outstanding Financial Performance
Outstanding Financial Performance Return on Average Assets 2.15% 1.41% 1.66% 1.29% 1.29% 1.06% 0.70% 2012 2013 2014 2015 2016 2017 Q1 2018 Efficiency Ratio (FTE) 67.87% 62.69% 56.07% 48.73% 43.86% 42.69% 37.65% 2012 2013 2014 2015 2016 2017 Q1 2018 Return on Average Tangible Common Equity1 15.01% 13
Slide 23: Consolidated Capital Ratios
Consolidated Capital Ratios 22.9% 18.0% 18.2% 15.2% 14.6% 10.50% 8.50% 7.00% 4.00% 3 TCE / TA Tier 1 Leverage Tier 1 Common Tier 1 Risk- Total Risk-Ratio Capital Ratio Based Capital Based Capital Ratio Ratio As Reported March 31, 2018 Basel III Fully Phased in Well-Capitalized Level Consolidated Cap
Slide 24: Outlook
Outlook Loan pipeline expected to support double-digit loan growth • Residential mortgage loan production positively impacted by expansion of lending activity in Las Vegas, Northern California and San Diego • Hired a new SBA manager who will lead business development efforts • SBA loan production ex
Slide 25: Appendix
Appendix
Slide 26: RBB Bancorp and First American International Corporation Pro Forma Loan Portfolio
RBB Bancorp and First American International Corporation Pro Forma Loan Portfolio (as of December 31, 2017) RBB Consr & Other 7.7% C&D 6.6% C&I 12.7% 1-4 Fam 30.3% Multifam 7.4% Other CRE OwnOcc 21.1% CRE 14.1% HELOC 0.3% Composition Loan Type ($000) % of Total Construction & Dev. 95,858 6.6% 1-4 Fa
Slide 27: RBB Bancorp and First American International Corporation Pro Forma Deposit Mix
RBB Bancorp and First American International Corporation Pro Forma Deposit Mix (as of December 31, 2017) RBB Non Int. Bearing NOW Accts Time 24.1% Deposits > 1.6% $100k 43.1% MMDA & Sav Time 28.1% Deposits < $100k 3.1% Composition Deposit Type ($000) % of Total Non Interest Bearing 334,711 24.1% NOW
Slide 28: Board of Directors
Board of Directors Yee Phong (Alan) Thian Chairman of the Board • Chairman, President and CEO of the Company and the Bank since the Bank began operations in 2008 Peter M. Chang • President of Yao Yang Enterprises LLC, which purchases and exports waste paper Wendell Chen • CEO of US Development LLC,
Slide 29: 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 30: 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
Slide 31: 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: Demand Deposits Savings Deposits Time Deposits < $250,000 if yes, Internet Outside