Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (August 2020)
25 slides from Rbb Bancorp's investor presentation, Aug 17, 2020
Slide 1: August 2020 Investor Presentation
August 2020 Investor Presentation Exhibit 99.1 38 57 151 234 176 16 119 119 119 196 0 0 107 1 149 155 222 225 0 176 0 251 251 5 180 234 00 77 rbb bankcorp investor presentation august 2020 nasdaq rbb ehibit 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 $3,136 Gross Loans, Including Held for Sale $2,610 Total Deposits $2,437 Tangible Common Equity1 $339 Tangible Common Equity / Tangible Assets1 11.07% NPAs / Assets2 0.56% Profitability Return on Average Assets, annualized 0.83% Return on Average Tang
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 34% and high deposit balances, aligns interests with public shareholders Experienced management team and Board of Directors with demonstr
Slide 6: COVID-19 Impact and Response
COVID-19 Impact and Response We are actively addressing client needs Enrolling clients in the SBA Paycheck Protection Program As of June 30, 2020, we have received approvals from the SBA for 564 loans in the total amount of $411.0 million The following table as of June 30, 2020 is intended to summar
Slide 7: COVID-19 Impact and Response - Continued
We are actively addressing client needs Offering loan relief to all impacted clients As of June 30, 2020, we have extended payment relief on $411.0 million loans across our entire $2.6 billion loan portfolio, representing 15.8% of the total $219.0 million was for single family residential borrowers
Slide 8: 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 $54mm in private offering of common stock 2012 Opened residential mortgage unit 2014 Earned Findley Reports’ “Super Premier” status February: Acquired Named a CDFI
Slide 9: Our Current Footprint
Our Current Footprint Orange County, California Irvine Branches (24) Los Angeles County, California Clark County, Nevada Ventura County, California Arcadia Cerritos Diamond Bar Los Angeles (Downtown) Los Angeles (Westwood) Los Angeles (Silver Lake) Monterey Park Rowland Heights San Gabriel Torrance
Slide 10: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. Chinese-American bank universe as defined by RBB’s management team Count refers to total number of Chinese-American banks that are headquartered in the indicated MSA Source: SNL Financial, Census Bureau 2018 estimates
Slide 11: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth (1) Non-GAAP reconciliation in Appendix Total Loans ($mm) Total Deposits ($mm) Net Income ($mm) Return on Average Tangible Common Equity1 2014 – 2Q20 CAGR = 25.6% 2014 – 2Q20 CAGR = 23.4% 2014 – 2019 CAGR = 30.4% Demonstrated Track Recor
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) Profitability Drivers rbb Bancorp 11 Yield on Average Interest-Earning AsseCost of Average Interest-Bearing Liabilities Ts8 57 151 234 176 16 1
Slide 13: Diversified Loan Portfolio
$2.59 billion total HFI loans as of June 30, 2020 Diversified across industry lines Single Family Residential - Mainly non-QM mortgages Commercial Real Estate - Owner occupied and Investor owned Commercial and Industrial - Majority secured by assets SBA - Primarily SBA 7(a) loans for business acquis
Slide 14: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming loans include nonaccrual loans, loans past due 90 days or more and still accruing interest and loans modified under troubled debt restructurings; nonperforming loans exclude PCI loans acquired in prior acquisitions Nonperforming assets include nonperforming l
Slide 15: Deposit Portfolio
Avg. Balance Weighted ($mm) Avg. Rate Noninterest-Bearing Demand $557.9 0.00% NOW 57.5 0.42% Savings 123.9 0.11% Money Market 404.5 0.63% Retail Time¹ 659.6 1.71% Jumbo Time² 589.1 1.91% Brokered Time3 32.8 2.07% Total Deposits $2,458.0 1.10% Deposit Portfolio as of June 30, 2020 Retail Time include
Slide 16: Consolidated Capitalization Table and Capital Ratios
(Dollars in millions, except per share amounts) As of June 30, 2020 Actual Long-Term Debt Long-Term Debt $104.2 Subordinated Debentures 14.2 Total Long-Term Debt $118.4 Shareholders' Equity Common Stock $286.4 Additional Paid-in Capital 5.0 Treasury Stock -- Retained Earnings 121.5 Accumulated Other
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 June 30, 2020 Economic Value of Equity Sensitivity Immediate Change in Rates June 30, 2020 12 month NII sensitivity is neutral to slightly liability se
Slide 18: 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 remain competitive Flat yield curve will limit NIM expansion Do not expect loan sales to return until the 4th quarter High single-digit balanc
Slide 19: Appendix
Appendix Appendix
Slide 20: Business Line Profile: 1-4 Single Family Residential Lending
As of June 30, 2020: Average: LTV of 55.7%; FICO score of 758; duration of approximately 2.4 years Average current start rates: 5.00% (Western region); 4.375% plus 1% in points (Eastern region); reprices at 7 years to one-year CMT plus 2.50% Business Line Profile: 1-4 Single Family Residential Lendi
Slide 21: Business Line Profile: CRE Lending | C&D Lending
~24.6% fixed rate Business Line Profile: CRE Lending | C&D Lending CRE Loans CRE and C&D Portfolio Growth C&D Loans C&D 2014 – 2Q20 CAGR = 9.1% CRE 2014 – 2Q20 CAGR = 17.4% (Dollars in millions) As of June 30, 2020: $900.3 million $150.4 million Business Line Profile: CRE Lending | C&D Lending As of
Slide 22: 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, 2020: $267.5 million $104.3 million C&I and SBA Portfolio Growth (Dollars in mill
Slide 23: 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 24: Core Deposits Measure Differences from FRB Y-9(c)
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 25: 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