Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (August 2022)
23 slides from Rbb Bancorp's investor presentation, Aug 1, 2022
Slide 1: RBB Bancorp Investor Presentation August 2022
RBB BANCORP SEA KEL Investor Presentation August 2022 NASDAQ: RBB
Slide 2: Disclosure Statement
Disclosure Statement This resentation contin forworiooking stotements within the mening ofthe Private Securities Litigation Reform Act of 1995. Forward-looking stotements often include the words “Relieves,” “expecs,” “anticipates, "estimates," Torecasts,” Intends,” “plans,” “targes,” “potential,” “p
Slide 3: RBB Bancorp — Who We Are
RBB Bancorp — Who We Are a ‘@ Established in 2008 and headquartered in Los For the Three Months Ended June 30, 202: Angeles, California community bank Total Assets $3,964 ‘@ 24traditional branches Gross Loans, Including Held for Sale $3,046 + 12 located in Southern California Total Deposits $3,028 +
Slide 4: 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 37% and high deposit balances, aligns interests with public shareholders + Experienced management team and Boa
Slide 5: Experienced Leadership Team
Experienced Leadership Team ee ‘D Average 33 years of bank management experience in finance, lending, credit, risk, strategy and branch operations Name / Ti Davia Morris = + Appoirtedirterim Presider ard chiet Executive OfcerinFebusy/2022. InterimPresdersChiet 72.759" aygaa) + APPointedEVPandChiet F
Slide 6: Our History
Our History January: Established uly: Acquired @ Sengember: Acquired Busnass BAN Earned Findley Reports" "Super Premier” status May. Acquired Received Outstanding Overseas Taiwanese SME Raised $62 million inPO_ Eerned Findley Reports" ‘Acquired branch in Honolulu, ~- ——— 3 ren ee Earned Findley Repo
Slide 7: Our Current Footprint
Our Current Footprint @D Coast-to-Coast footprint of 24 branches provide banking services to the largest Asian- American communities in the nation arcadia Torrance Cerritos irvine Diamond dar Oxnard Brooklyn, NY (3) los Angeles (2) WestlakeVillage Manhattan, NY Monterey Park LasVegas Queens, NY (2)
Slide 8: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. See ‘@ Chinese-American bank universe comprised of over 23 banks': + Publicly-traded + Locally-owned + Subsidiaries of Taiwanese or Chinese banks @ Other Asian-American banks also represent compelling acquisition oppo
Slide 9: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Mongage Loans Held Fr Sale ("HFS Nonieteres-bearng Deposts 3,086 $3,386 $34 sm cere bearing Deposits $3,028, $2577 = $2,305 32 gaaee $2289 $1,337 2017-2018 2019-2020 012022 201720182019 2020S 0212022 Net Income ($mm) Return on Average Ta
Slide 10: Profitability Drivers
Profitability Drivers Yield on Average Interest-Earning Assets mee View on Earning Assets —eViets on TexaLoans 575% 6% 557% Cost of Average Interest-Bearing Liabilities aco of eres Sexving Lebies, 2.20% —eCos of Teal Deposits 1.60%, cr a a ee i Net Interest Margin (FTE) sass ais” 2017201821902 Effic
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio —<———S$$§_ Loan Portfolio Compos! Other. ® $3.0billion total HF! loans as of June 30, 2022+ By ‘@ Diversified across industry lines di Freee + SFR -Mainlynon-M mortgages? Une: + CRE- Owner occupied and Investor owned? + C&1- Majority secured by assets ‘+ SBA- Primarily SBA
Slide 12: Business Line Profile: SFR Lending
Business Line Pro’ : SFR Lending a As of June 30, 202: @D Average: LTV of 56.7%; FICO score of 763; duration of approximately 2.5 years @ Average current start rates: Our non-qualified SFR loan product are 5 year and 7 year hybrid adjustable mortgage, which re-prices to the 1 year CMT plus 3.00% to
Slide 13: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of June 30, 2022: CRE Loans ‘C&D Loans CRE and C&D Portfolio Growth ($mm) $1,160.4 million $356.8 million Land Aca & Development 10.2% ; 3 ii gue Occupied {@ ~16.5% of CRE loans are fixed rate or hybrid loans 20720 020020202 RE Loans sm c8D Loans R
Slide 14: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&l Lending | SBA Lending As of June 30, 2022: C& Loans SBA Loans $238.0 million $59.3 million ‘Bank sub Debt Unguarantees Unsecured 23% 25% Unguaranteed SBA Loans: By Business: By Location: C& and SBA Portfolio Growth ($mm) 2014 2015 2016 2017 mc Loans 2018 2019 2020 2021 202
Slide 15: Disciplined Credit Culture
Disciplined Credit Culture aS Nonperforming Loans’ / Total Loans Nonperforming Assets” / Total Assets ome one 059% 016% 015% 21s 20170182922 zis 2017201802020 toak 202 Allowance for Loan Losses / Total Loans Net Charge-Offs (Recoveries) / Average Loans 120% 008% (0.06%) 206 2017182019 000220 zoe 207
Slide 16: Deposit Portfolio as of June 30, 2022
Deposit Portfolio as of June 30, 2022 ® Top 10 Deposit Relationships = $600.7 million Papas Reni Gaipecien (19.8% of total deposits) + 2ofthe Top 10 Relationships are with directors and shareholders of the Company, $71.0 million, or ~1.1% of Top 10 total Total: $3.03 billion For the Three Months End
Slide 17: Interest Rate Risk Profile
Interest Rate Risk Profile @ 12 month net interest income (“NII”) sensitivity is asset sensitive ‘@ Economic Value of Equity (“EVE”) sensitivity is neutral 12-Month Nil Sensitivity EVE Sensitivity Immediate Change in Rates Immediate Change in Rates June 30,2022 June 30,2022 200% 500% 150% 14.38% Lic
Slide 18: Interest Rate Risk Management
Interest Rate Risk Management Well positioned for higher rates with a One Year Positive Gap Ratio of 15.6% Loan and Deposit Mix Interest Rate Risk Position (within 12 months! Rate Sensitive Assets at 50.8% of Total Assets HFI Loans $3.0 Total Deposits $3.0 Loan Portfol * $1.49 billion matures or res
Slide 19: Consolidated Capital Ratios
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Slide 20: Outlook
Outlook @ Net {terest margin expected to remain stable or contract modestly + Asset sensitive balance sheet and expect increase in margin * Loan and deposit rate environment will remain competitive *+ Expect deposit pricings to increase in the 3° quarter @ Continued balance sheet growth should drive
Slide 21: Appendix: Non-GAAP Reconciliations
Slide 22: 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 23: Regulatory Reporting to Financial Statements: Adjusted Core Deposits
Regulatory Reporting to Financial Statements: Adjusted Core Deposits See ‘Some of the financial measures inludedin this presentation and informs 10-G.& 10-Kfiled withthe SEC differ rom those reported onthe FRB Y-9(c report. Thesefinanciol measures include “core deposits to total deposits“ Our monage