Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Merger or Acquisition (September 2019)
28 slides from Rbb Bancorp's merger presentation, Sep 24, 2019
Slide 1: Investor Presentation
September 24, 2019 Investor Presentation Exhibit 99.1 Rbb Bancorp Nasdaq: rrb
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 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
Balance Sheet (Dollars in millions) Total Assets $2,802 Gross Loans, Including Held for Sale $2,342 Total Deposits $2,235 Tangible Common Equity1 $329 Tangible Common Equity / Tangible Assets1 12.01% NPAs / Assets2 0.30% Profitability Return on Average Assets 1.43% Return on Average Tangible Common
Slide 5: High-performing community bank with defined and 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: Historical Progression of Franchise Growth
September: Acquired July: Acquired January: Established 2011 Our History Historical Progression of Franchise Growth 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 p
Slide 7: 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 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 $223.8 million 1-4 family residential loans comprise 83% of total loans 18.3% non-interest bearing deposits Overview of PGB Holdings Financial Highlights Franchise Highlights (as of 6/30
Slide 10: Transaction Overview
Acquisition consideration of $32.5 million, all cash Price / tangible book: 1.70x as of June 30, 2019, and 1.66x estimated at close Transaction includes two owned branches with an estimated fair market value of $2 million greater than book value Price / EPS (LTM): 10.0x Core deposit premium: 9.1% Cl
Slide 11: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. Chinese-American bank universe as defined by RBB’s management team Count refers to total number of Chinese-American banks that are headquartered in the indicated MSA Source: SNL Financial, Census Bureau 2018 estimates
Slide 12: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth (1) Non-GAAP reconciliation in Appendix Total Loans ($mm) Total Deposits ($mm) Net Income ($mm) Return on Average Tangible Common Equity1 2013 – 2018 CAGR = 34.9% 2013 – 2018 CAGR = 31.2% 2013 – 2018 CAGR = 38.8% Demonstrated Track Recor
Slide 13: Profitability Drivers
Profitability Drivers Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabilities Net Interest Margin (FTE) Efficiency Ratio (FTE) Yield on Earning Assets Yield on total loans 6.19% 5.52% 5.10% 5.75% 5.66% 5.57% 5.57% 5.14% 5.01% 4.44% 5.35% 5.13% 5.36% 5.37% Cost of intere
Slide 14: Diversified Loan Portfolio
$2.34 billion total loans as of June 30, 2019 Diversified across industry lines Single Family Residential - Mainly non-QM mortgages Commercial Real Estate - Owner occupied and Investor owned Commercial and Industrial - Majority secured by assets SBA - Primarily SBA 7(a) loans for business acquisitio
Slide 15: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming loans include nonaccrual loans, loans past due 90 days or more and still accruing interest and loans modified under troubled debt restructurings; nonperforming loans exclude PCI loans acquired in prior acquisitions Nonperforming assets include nonperforming l
Slide 16: Deposit Portfolio Composition
Avg. Balance Weighted ($mm) Avg. Rate Noninterest-Bearing Demand $408.2 0.00% NOW $24.0 0.29% Savings $97.6 0.21% Money Market $363.4 1.23% Retail Time¹ $592.2 2.24% Jumbo Time² $568.8 2.38% Brokered Time3 $117.6 2.53% Total Deposits $2,171.6 1.62% Deposit Portfolio as of June 30, 2019 Retail Time i
Slide 17: Consolidated Capitalization Table and Capital Ratios
(Dollars in millions, except per share amounts) As of June 30, 2019 Actual Long-Term Debt Long-Term Debt $103.9 Subordinated Debentures 9.6 Total Long-Term Debt $113.5 Shareholders' Equity Common Stock $289.6 Additional Paid-in Capital 6.1 Retained Earnings 98.2 Accumulated Other Comprehensive Loss
Slide 18: 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 June 30, 2019 Economic Value of Equity Sensitivity Immediate Change in Rates June 30, 2019 12 month NII sensitivity is neutral to slightly liability se
Slide 19: Appendix
Appendix RBB Banconr LEGTeR 1B
Slide 20: Transaction Assumptions and Pro Forma Impacts
Transaction Assumptions and Pro Forma Impacts Accretion/Dilution Pro Forma Capital Ratios Transaction Assumptions Estimated cost savings of 30% of PGB’s non-interest expense, phased-in during 2020 Loan mark of 1.5%, or $2.6 million CDI of approximately 1.25% Pre-tax one-time merger-related expenses
Slide 21: Pro Forma Loan Portfolio
Pro Forma Loan Portfolio (as of June 30, 2019) Note: Regulatory data shown, does not include purchase accounting adjustments Source: Company estimates, FIG Partners RBB PGB Pro Forma Composition Composition Composition Loan Type ($000) % of Total Loan Type ($000) % of Total Loan Type ($000) % of Tot
Slide 22: Pro Forma Deposit Mix
RBB PGB Pro Forma Pro Forma Deposit Mix (as of June 30, 2019) Note: Regulatory data shown, does not include purchase accounting adjustments Source: Company estimate, FIG Partners Composition Composition Composition Deposit Type ($000) % of Total Deposit Type ($000) % of Total Deposit Type ($000) % o
Slide 23: Business Line Profile: 1-4 Single Family Residential Lending
As of June 30, 2019: Average: LTV of 53.4%; FICO score of 759; duration of approximately 5.23 years Average current start rates: 5.00% - 5.375%; 0% - 1% in points; reprices between 5 and 7 years to one-year LIBOR plus 2.75% -3.00% Business Line Profile: 1-4 Single Family Residential Lending SFR Loan
Slide 24: Business Line Profile: CRE Lending | C&D Lending
~19.8% 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 June 30, 2019: $756.5 million $118.8 million 2012 2013 2014 2015 2016 2017 2018 CRE Loans C&D Loan
Slide 25: 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 June 30, 2019: $283.9 million $79.5 million C&I and SBA Portfolio Growth (Dollars in milli
Slide 26: 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 27: Core Deposits Measure
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 28: 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