Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (November 2020)
25 slides from Rbb Bancorp's investor presentation, Nov 17, 2020
Slide 1: Investor Presentation November 2020
Investor Presentation November 2020 NASDAQ: RBB
Slide 2: Forward-Looking Statements
Forward-Looking Statements ee Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning ofthe Private Securities Litigation Reform Act of 1995, including {forward-looking statements relating to RBB Bancorp’s (“RBB"’) current business pl
Slide 3: Experienced Leadership Team
Experienced Leadership Team @ Average 33 years of bank management expe + Chairman, Presidentand Chief Executive Officer ("CEO") since Royal Business Bank the “Bank") began Yee Phong (Alan) Thian Cesena) Reeve Be + Appointed to the FDIC community bankadvisory committee twice rar ere one + Presentiyon
Slide 4: RBB Bancorp — Who We Are
RBB Bancorp — Who We Are Overview @ Established in 2008 and headquartered in Los Angeles, California + $3.4billion asset Chinese-American, business- oriented community bank @® 22traditional branches + 12 located in Southern California * 6 located in New York + located in Chicago + Lin Nevada @ Four
Slide 5: Investment Highlights
Investment Highlights @® High-performing community bank with defined and proven strategy to grow both organically and through acquisitions + Insider ownership (including family holdings) at 36% and high deposit balances, aligns interests with public shareholders + Experienced management team and Boa
Slide 6: COVID-19 Loan Modification Update
COVID-19 Loan Modification Update oe * As of October 23, 2020, total deferred loans were $104.6 million or 4.8% of loans outstanding? * Total deferred loans decreased $329.3 million, or 76% from June 30, 2020 to October 23, 2020 + The large majority of remaining deferrals are real-estate secured Jun
Slide 7: SBA Loan Deferral Update
SBA Loan Deferral Update oe + Under the CARES Act, SBA loan payments were made by the SBA between April 1, 2020 through September 30, 2020. + Inaccordance with SOP 5057 2 and 13 C.F.R§ 120.530, Lenders may assist borrowers experiencing temporary cash flow issues by deferring payments for up to six (
Slide 8: Our History
Our History Historical Progression of Franchise Growth January: Established D SENET May: Acquired Ne Re oi July: Acquired , Received Outstanding Raised $62 million in IPO Opened @ September: Acaui Overseas Taiwanese SME | {Earned FindleyReports’ | [ Earned Findley Reports wpterstes || Sb buses bax |
Slide 9: Our Current Footprint
Our Current Footprint (092) RBB BANCORP ae” Sane @ Branches 24) i 2tE mW KX SUE 2 eth , N@re (Downtown) (Silver Lake) Oxnard Westlake Village Las Vegas New York, NY 2 Brooklyn, NY 1 Manhattan, NY 3 Queens, NY Chicago, IL 2 Chinatown Bridgeport
Slide 10: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. a a Chinese-American Bank' Locations in the U.S. (as of June 2019) @ Chinese-American bank universe comprised of over West Coast _ Texas, Midwestand East Coast 35 banks!: pee xe soe + Publicly-traded ‘ + Locally-owned
Slide 11: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Total Deposits ($mm) fda bite ed Noninterex-bearing Deposts - $2,436 montanes Lonrs Hele fey Sale $2,779 1 Inter est-bearing Deposits Spann $2289 $2,577 = $2,305 $1,387 $1375 $1,153 9115s — 5 = afl L : af if 2014 2018 ©2019 -«3q20 2014 2
Slide 12: Profitability Drivers
Profitability Drivers Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabi ee View on Earning Assets w= Cost of Interest-Bearing Libilities Yield on Total Loans —e=Cos of Total Deposits ae 5.75% 0.5956 2420152062017, 2018S 2019S 3020 20142015, 2016S 2017208209320 Net Inter
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio @ $2.76 billion total HFI loans as of September 30, 2020 Diversified across industry lines + Single Family Residential- Mainly non-QM mortgages By + Commercial Real Estate- Owner occupied and Investor owned Business Line’: + Commercial and industrial- Majority secured by a
Slide 14: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming Loans’ / Total Loans Nonperforming Assets? / Total Assets 07% 0.65% 058% re 021% 053% 0.15% bana 0.50% il || | 028% oe | ry 2a 2015S 2016—=S207S2018=S2019S «3020 2a 2015201602018 2019«=—«3020 Allowance for Loan Losses / Total Loans Net Charge-Offs / Average L
Slide 15: Deposit Portfolio as of September 30, 2020
Deposit Portfolio as of September 30, 2020 @ Strongest growth coming in DDAs @ Top 10 Deposit Relationships = $385.3 million a @ @) (3) (14.7% of total deposits) * 30fthe Top 10 Relationships are with Directors and shareholders of the Company; $61.5 million, or ~16% of Top 10 total For the Three Mon
Slide 16: Consolidated Capital Ratios
Consolidated Capital Ratios Consolidated Capital Ratios 20.05% TCE/TA* Tier 1 Leverage Tier 1 Common Tier 1 Risk- Total Risk- Ratio Capital Ratio Based Capital Based Capital Ratio Ratio EE As Reported June 30, 2020 === Basel Ill Fully Phased in Well-Capitalized Level (2) Non-GAAP reconciliation in A
Slide 17: Interest Rate Risk Profile
Interest Rate Risk Profile @ 12month Nil sensitivity is neutral to slightly liability sensitive @ Economic Value of Equity (“EVE”) sensitivity is neutral to slightly liability sensitive in a flat to declining environment 12-Month Net Interest Income Sensitivity Economic Value of Equity Sensitivity I
Slide 18: Outlook
Outlook ‘@ Net interest margin expected to see modest expansion + Average CD costs will decrease due to rollover of higher cost CDs * Loan and deposit rate environment will rem: * Tight yield curve will limit NIM expansion @ Do not expect loan sales to return until the 1* or 2" quarter of 2021 @Q ig
Slide 19: Appendix
Appendix
Slide 20: Business Line Profile: 1-4 Single Family Residential Lending
Business Line Profile: 1-4 Single Family Residential Lending SS As of September 30, 2020: @® Average: LTV of 60.0%; FICO score of 749; duration of approximately 1.7 years @® Average current start rates: + 5.00% (Western region); 4.375% plus 1% in points (Eastern region); reprices at 7 years to one-y
Slide 21: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of June 30, 2020: CRE Loans C&D Loans CRE and C&D Portfolio Growth $975.2 million $150.4 million (Dollars in milions) Land Acq. & Development 3.9% Residential Construction 57.7% ‘D ~22.8% fixed rate 2014-2015 2016-2017 2018-2019 3020 CRE Loans C&D
Slide 22: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&I Lending | SBA Lending As of September 30, 2020: C&I Loans SBA Loans $317.9 million $111.2 million Bank Sub Debt 13% [ouoranteed 94% Unguaranteed Unsecured 43.1% Unguaranteed SBA Loan: By Business: By Location: Other 13.7% 2014 2015-2016 2017-2018 +2019 3020 C&I Loans SBA L
Slide 23: Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets
Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets SS ‘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 val
Slide 24: 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 25: 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 Savings Time Deposits Deposits Deposits its? > $250,000? Bese J if ye