Slide 1: 2024 Second Quarter Earnings Results
NASDAQ: RBB 2024 Second Quarter Earnings Results July 22, 2024
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: 2nd Quarter 2024 | Financial Highlights
2nd Quarter 2024 | Financial Highlights ($ in thousands, except per share data) 3Q23 4Q23 1Q24 2Q24 2Q24 Highlights Earnings & Profitability Diluted Earnings Per Share (EPS) $ 0.45 $ 0.64 $ 0.43 $ 0.39 Net Income Net Interest Income before Provision for $ 24,589 $ 25,669 $ 24,877 $ 23,965 $7.2 milli
Slide 4: Strategically Managed Balance Sheet
Strategically Managed Balance Sheet ($ in thousands, except per share data) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Cash and Due From Banks $ 331,391 $ 431,973 $ 269,843 $ 253,369 Net loans to deposits ratio Available for Sale (AFS) Securities 354,378 318,961 335,194 325,582 97.6% 98.6% 99.4% $ in
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio Diversified across business lines Loan Portfolio Composition as of 6/30/24 SFR - Mainly non-qualified mortgage loans CRE – loans secured by commercial real estate; mainly Other multifamily, owner occupied CRE and non-owner occupied CRE 0% C&I - Majority secured by as
Slide 6: Business Line Profile: CRE | C&D
Business Line Profile: CRE | C&D CRE Loans ($ in thousands) 2Q24 % $1,190.2 million $ 171,673 14.4% Warehouse Single Family Other Hotel/Motel 126,883 10.7% 3.7% Owner Occupied Office 47,245 4.0% 16.4% Other 215,020 18.1% CRE Owner Occupied & Non- 560,821 47.1% Multifamily Other Non-Owner Owner Occup
Slide 7: Business Line Profile: Residential Mortgage Portfolio
Business Line Profile: Residential Mortgage Portfolio Distribution by Geography Distribution by LTV <50% 50%-54% 55% - 59% SoCal NY NorCal IL NJ NV Other 60% - 64% 65% - 70% >70% NV Other IL 1% 2% 3% >70% NJ <50% 2% 9% 16% NorCal 7% 50%-54% SoCal 40% 8% $1.47 billion 65% - 70% $470,721 Residential 3
Slide 8: Business Line Profile: C&I | SBA
Business Line Profile: C&I | SBA C&I Loans SBA Loans C&I and SBA Portfolio ($mm) Shared $126.6 million Nat'l $50.3 million Guaranteed Credits 4.8% 2.0% $50.4 $52.1 $54.7 $50.3 Commercial Term 21.3% 504 Loans (1) Unguaranteed 37.9% $127.7 $130.1 $121.4 $126.6 Secured by RE 53.7% Credit Lines 76.7% Un
Slide 9: Asset Quality Metrics: Non-Performing Assets (NPAs)
Asset Quality Metrics: Non-Performing Assets (NPAs) Non-Performing Loans NPAs / Total Assets 2Q24 % $54,589 ($ in thousands) SFR $ 19,623 35.9% $ in Thousands $40,430 1.41% 17,617 32.3% $37,006 CRE $31,619 C&D 10,000 18.3% 0.99% 0.95% C&I 6,472 11.9% 0.79% SBA 871 1.6% Other 6 0.0% Total Non-Perform
Slide 10: Non-Performing Loan Rollforward
NON-PERFORMING LOAN ROLLFORWARD TOP 10 RELATIONSHIPS Non-Performing Loans ($ in thousands) Non-performing loans increased 2Q 1Q $18.7 million to $54.6 million Incr Loan due mostly to the addition of 6 # 2Q24 1Q24 Delinquency Accrual (Decr) Category Status Status loans totaling $22.5 million and 1 $1
Slide 11: Asset Quality Metrics: Loan Classifications and Delinquencies
Asset Quality Metrics : Loan Classifications and Delinquencies Special Mention Loans & Substandard Loans Special Mention Loans & Substandard Loans by Type $ in Thousands $63,076 $102,613 $20,374 $93,941 $77,750 $82,596 $11,392 $71,401 $19,520 $61,099 $57,170 $63,076 $1,002 $31,310 $18,518 $31,212 $3
Slide 12: Allowance for Credit Losses, Credit Cost Provisions and Credit Metrics
Allowance for Credit Losses, Credit Cost Provisions and Credit Metrics Allowance for Loan Losses (ALL) The allowance for loan losses (ALL) was $41.7 million and a reserve for unfunded commitments (RUC) was $624,000 at 6/30/24. The allowance for $ in Thousands 1.38% 1.38% 1.37% credit losses (ACL) to
Slide 13: Deposits
Deposits Total Deposits Deposit Mix – QoQ Annualized $ in millions Wholesale -3% +3% -18% -1% $3,021 million deposits $3,175 $3,154 $3,175 $3,024 4.0% $3,028 $598 $608 $632 $643 $648 Time deposits, DDA 502 437 406 198 121 greater 18.0% $746 $790 than $662 $736 $812 $250,000 26.1% Savings, $827 $922
Slide 14: Operating Expense & Efficiency
Operating Expense & Efficiency Noninterest Expense Total Revenue & Efficiency Ratio $17.12 $ in millions $16.88 $16.39 $16.97 $2.38 $2.50 $2.30 $2.43 60.07% 62.38% $1.02 $0.88 $1.26 55.59% $1.32 $1.29 $1.42 $1.47 $ in millions $1.36 49.58% $2.41 $2.44 $2.44 $2.39 $30.36 $33.06 $28.25 $27.45 $9.74 $8
Slide 15: Accumulation of Strong Company Capital Ratios
Accumulation of Strong Company Capital Ratios CET1 Capital Ratio Tangible Common Equity Ratio(1) 19.07% 19.10% 18.89% The Company's capital 17.65% 11.06% 11.56% 11.53% levels are higher than 10.71% most peer banks 6.50% 6.50% 6.50% 6.50% Invested $8.1 million in the stock buyback program with the re
Slide 16: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations 16
Slide 17: 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