Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (January 2020)
24 slides from Rbb Bancorp's investor presentation, Jan 29, 2020
Slide 1: January 2020 Investor Presentation
January 2020 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 Bancorp’s (“RBB”) current business plans,
Slide 3: 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 Yee Phong (Alan) Thian President & Chief Executive Officer 37 years Chairman, President and Chief Executive Officer (“CEO”)
Slide 4: RBB Bancorp – Who We Are
Balance Sheet (Dollars in millions) Total Assets $2,789 Gross Loans, Including Held for Sale $2,305 Total Deposits $2,249 Tangible Common Equity1 $343 Tangible Common Equity / Tangible Assets1 12.59% NPAs / Assets2 0.48% Profitability Return on Average Assets 1.51% Return on Average Tangible Common
Slide 5: Investment highlights: high-performing community bank with proven strategy
High-performing community bank with defined and proven strategy to grow both organically and through acquisitions Insider ownership (including family holdings) at 48% and high deposit balances, aligns interests with public shareholders Experienced management team and Board of Directors with demonstr
Slide 6: Our History
Our History Historical Progression of Franchise Growth Opened 2008 Source: Pages 3-4 in the S-1 Opened SBA banking unit 2010 Raised over $54mm in private offering of common stock 2012 Opened residential mortgage unit 2014 Earned Findley Reports’ “Super Premier” status February: Acquired Named a CDFI
Slide 7: Our Current Footprint
Our Current Footprint Orange County, California Irvine Branches (25) 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 8: Transaction Highlights
Expands the RBB franchise to the Chicago market Gives RBB access to Chicago’s Asian-American population of approximately 500,000 Enables Pacific Global to benefit from RBB’s scale and efficiencies Enhances residential mortgage loan production platform Enables RBB to bring its C&I lending platform to
Slide 9: Overview of PGB Holdings
Founded in 1995 3 full service branches principally serving Asian-American communities in Chicago Total assets of $224.5 million 1-4 family residential loans comprise 83% of total loans 21.4% non-interest bearing deposits Overview of PGB Holdings Financial Highlights Franchise Highlights (as of 9/30
Slide 10: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. Chinese-American bank universe as defined by RBB’s management team Count refers to total number of Chinese-American banks that are headquartered in the indicated MSA Source: SNL Financial, Census Bureau 2018 estimates
Slide 11: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth (1) Non-GAAP reconciliation in Appendix Total Loans ($mm) Total Deposits ($mm) Net Income ($mm) Return on Average Tangible Common Equity1 2013 – 2019 CAGR = 26.0% 2013 – 2019 CAGR = 25.6% 2013 – 2019 CAGR = 33.3% 10 $7.0 $10.4 $13.0 $19.
Slide 12: Profitability Drivers
Profitability Drivers Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabilities Net Interest Margin (FTE) Efficiency Ratio (FTE) 11 4.60% 4.41% 3.72% 4.43% 4.16% 4.12% 3.63% 2013 2014 2015 2016 2017 2018 2019 Profitability Drivers Yield on Average Interest‐Earning Assets
Slide 13: Diversified Loan Portfolio
$2.30 billion total loans as of December 31, 2019 Diversified across industry lines Single Family Residential - Mainly non-QM mortgages Commercial Real Estate - Owner occupied and Investor owned Commercial and Industrial - Majority secured by assets SBA - Primarily SBA 7(a) loans for business acquis
Slide 14: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming loans include nonaccrual loans, loans past due 90 days or more and still accruing interest and loans modified under troubled debt restructurings; nonperforming loans exclude PCI loans acquired in prior acquisitions Nonperforming assets include nonperforming l
Slide 15: Deposit Portfolio Composition
Avg. Balance Weighted ($mm) Avg. Rate Noninterest-Bearing Demand $445.9 0.00% NOW $25.7 0.26% Savings $96.8 0.20% Money Market $390.7 1.14% Retail Time¹ $595.1 2.26% Jumbo Time² $599.5 2.37% Brokered Time3 $101.8 2.34% Total Deposits $2,255.5 1.55% Deposit Portfolio as of December 31, 2019 Retail Ti
Slide 16: Consolidated Capitalization Table and Capital Ratios
(Dollars in millions, except per share amounts) As of December 31, 2019 Actual Long-Term Debt Long-Term Debt $104.0 Subordinated Debentures 9.7 Total Long-Term Debt $113.7 Shareholders' Equity Common Stock $289.4 Additional Paid-in Capital 6.0 Treasury Stock -- Retained Earnings 112.0 Accumulated Ot
Slide 17: Interest Rate Risk Profile
Interest Rate Risk Profile Note: Assumes parallel shifts in market interest rates 12-Month Net Interest Income Sensitivity Immediate Change in Rates December 31, 2019 Economic Value of Equity Sensitivity Immediate Change in Rates December 31, 2019 12 month NII sensitivity is neutral to slightly liab
Slide 18: Appendix
Appendix
Slide 19: Business Line Profile: 1-4 Single Family Residential Lending
As of December 31, 2019: Average: LTV of 57.3%; FICO score of 760; duration of approximately 4.0 years Average current start rates: 4.75%; 0% - 1% in points; reprices between 5 and 7 years to one-year CMT plus 2.50% Business Line Profile: 1-4 Single Family Residential Lending SFR Loans SFR Portfolio
Slide 20: Business Line Profile: CRE Lending | C&D Lending
~12.7% 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 = 7.8% CRE 2012 – 2018 CAGR = 24.6% (Dollars in millions) As of December 31, 2019: $793.3 million $96.0 million $170.4 $315.2 $372.8 $343.4 $501.8 $496.0 $756.5 $7
Slide 21: 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, 2019: $274.6 million $75.0 million C&I and SBA Portfolio Growth (Dollars in m
Slide 22: 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 23: Core deposits measurement note
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 24: How We Measure Core Deposits
How We Measure Core Deposits Source: “Study on Core Deposits and Brokered Deposits, Submitted to Congress pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, FDIC, July 8, 2011”: https://www.fdic.gov/regulations/reform/coredeposit-study.pdf Demand Deposits Savings Deposits Tim