Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (January 2019)
30 slides from Rbb Bancorp's investor presentation, Jan 30, 2019
Slide 1: January 2019 Investor Presentation
January 2019 Investor Presentation Exhibit 99.1
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 Source: Experience: Page 6 in S-1 Background: Pages 143, 145-146 in the S-1 Name / Title Experience Background Yee Phong (Alan) Thian President & Chief Executi
Slide 4: Experienced Leadership Team (continued)
Experienced Leadership Team Average 32 years of bank management experience in finance, lending, credit, risk, strategy and branch operations Source: Experience: Page 6 in S-1 Background: Pages 143, 145-146 in the S-1 Simon Pang Executive Vice President & Chief Credit Officer 36 years (19 years with
Slide 5: RBB Bancorp – Who We Are
Balance Sheet (Dollars in millions) Total Assets $2,975 Total Loans, Including Held for Sale $2,577 Total Deposits $2,144 Tangible Common Equity1 $307 Tangible Common Equity / Tangible Assets1 10.56% NPAs / Assets2 0.21% Profitability Return on Average Assets 1.41% Return on Average Common Equity 11
Slide 6: 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 industry knowledge, regulato
Slide 7: Our History and Strategy
September: Acquired July: Acquired January: Established 2011 Our History and Strategy Historical Timeline May: Acquired Received Outstanding Overseas Taiwanese SME Award 2013 Earned Findley Reports’ “Super Premier” status 2015 Opened 2008 Opened SBA banking unit 2010 Raised over $54mm in private off
Slide 8: Our Current Footprint
Our Current Footprint Orange County, California Irvine Branches (22) Los Angeles County, California Clark County, Nevada Ventura County, California Arcadia Cerritos Diamond Bar Los Angeles (Downtown) Los Angeles (Westwood) Los Angeles (Silver Lake) Monterey Park Rowland Heights San Gabriel Torrance
Slide 9: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. Chinese-American bank universe as defined by RBB’s management team Count refers to total number of Chinese-American banks that are headquartered in the indicated MSA Source: SNL Financial, 2010 Census Chinese-American
Slide 10: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Total Assets ($mm) Total Loans ($mm) Total Deposits ($mm) Net Income ($mm) 2012 – 2018 CAGR = 31.5% 2012 – 2018 CAGR = 41.1% 2012 – 2018 CAGR = 30.1% 2012 – 2018 CAGR = 44.6%
Slide 11: Diversified Loan Portfolio
Diversified across industry lines and minimal demand for non-mortgage consumer credit $2.58 billion total loans as of December 31, 2018 72% originated vs. 28% acquired Average yield on loans of 5.63% for the fourth quarter of 2018 Diversified Loan Portfolio Excludes purchased loan discounts and defe
Slide 12: Business Line Profile
Business Line Profile Between $1 million and $25 million annual revenue 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 pro
Slide 13: Business Line Profile: CRE Lending | C&D Lending
~18.2% fixed rate Business Line Profile: CRE Lending | C&D Lending CRE Loans CRE and C&D Portfolio Growth C&D Loans C&D 2012 – 2018 CAGR = 12.2% CRE 2012 – 2018 CAGR = 28.3% (Dollars in millions) As of December 31, 2018: $758.7 million $113.2 million
Slide 14: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&I Lending | SBA Lending Credit Lines include commercial and industrial lines of credit, term loans, mortgage warehouse lines and international trade discounts C&I Loans SBA Loans As of December 31, 2018: $304.4 million $84.5 million C&I and SBA Portfolio Growth (Dollars in m
Slide 15: Business Line Profile: 1-4 Single Family Residential Lending
As of December 31, 2018: $415,000 nonperforming loans¹ in the SFR portfolio Average: LTV of 58.0%; FICO score of 752; duration of approximately 4.5 years Average current start rates: 5.50% - 5.875%; 0% - 1% in points; reprices between 5 and 7 years to one-year LIBOR plus 3.00% Business Line Profile:
Slide 16: CRE Concentration Below Interagency Guidance
CRE Concentration¹ Below Interagency Guidance CRE for the purpose of the CRE concentration ratio measured as total commercial real estate loans less owner-occupied commercial real estate loans plus construction and land development loans; CRE concentration measures this value as a percentage of tota
Slide 17: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming loans include nonaccrual loans, loans past due 90 days or more and still accruing interest and loans modified under troubled debt restructurings; nonperforming loans exclude PCI loans acquired in prior acquisitions Nonperforming assets include nonperforming l
Slide 18: Deposit Portfolio as of December 31, 2018
Avg. Balance Weighted ($mm) Avg. Rate Noninterest-Bearing Demand $423.1 0.00% NOW $27.4 0.26% Savings $93.4 0.34% Money Market $453.0 1.27% Retail Time¹ $499.8 1.76% Jumbo Time² $460.6 1.98% Brokered Time3 $105.7 2.17% Total Deposits $2,063.0 1.28% Deposit Portfolio as of December 31, 2018 Strongest
Slide 19: Attractive Net Interest Spread
Attractive Net Interest Spread Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabilities Net Interest Spread Net Interest Margin (FTE)
Slide 20: Outstanding Financial Performance
Outstanding Financial Performance Non-GAAP reconciliation in Appendix on page 28 Return on Average Assets Return on Average Tangible Common Equity1 Efficiency Ratio (FTE) Noninterest Income / Average Assets
Slide 21: Capitalization and Consolidated Capital Ratios
(Dollars in millions, except per share amounts) As of December 31, 2018 Actual Long-Term Debt Long-Term Debt $103.7 Subordinated Debentures 9.5 Total Long-Term Debt $113.2 Shareholders' Equity Common Stock $288.6 Additional Paid-in Capital 5.7 Retained Earnings 82.0 Accumulated Other Comprehensive L
Slide 22: Asset Sensitive Balance Sheet
Asset Sensitive Balance Sheet Note: Assumes parallel shifts in market interest rates; Note: Financial data is not presented pro forma reflecting the acquisition of FAIT completed on October 15, 2018 12-Month Net Interest Income Sensitivity Immediate Change in Rates September 30, 2018 Economic Value
Slide 23: 2019 Outlook
Loan production expected to support long-term loan growth Residential mortgage loan production positively impacted by expansion of lending activity in existing markets and the addition of FAIC Mortgage pipeline volume remains healthy Portfolio loan growth will moderate in first half Opportunistic se
Slide 24: First American International Corp. Merger Rationale
Expanded 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 Created ~$3.0 billion institution with improved scale and efficiencies Enhances residential mortgage loan production platfo
Slide 25: Appendix
Appendix
Slide 26: 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, a real
Slide 27: Board of Directors (continued)
Board of Directors Paul Lin Founder and CEO of Drill Spot, LLC Named one of Inc. Magazine’s Top 10 Asian Entrepreneurs in 2010 Fui Ming Thian Worked in the real estate management business for over 30 years Responsible for operating and accounting for multiple apartment complexes Raymond Yu Former Ch
Slide 28: 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 per share,” and “return on average tangible common equity.” Our manag
Slide 29: Core Deposits Reconciliation
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 management uses this financial measure in its analysis of our performa
Slide 30: How We Measure Core Deposits
How We Measure Core Deposits Demand Deposits Savings Deposits Time Deposits < $250,000 Relationship with RBB Director or shareholder? Deposits within the Bank’s market area? Additional non-deposit services with the Bank? Electronic banking services with the Bank? Active demand deposit account with t