Slide 1: Investor Presentation
Investor Presentation August 2021 NASDAQ: RBB
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,” “expect,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “pot
Slide 3: RBB Bancorp — Who We Are
RBB Bancorp — Who We Are Overview ©@ Established in 2008 and headquartered in Los Angeles, California + $3.9 billion asset Chinese-American, business- oriented community bank @ 22traditional branches * 12 located in Southern California * 6 located in New York * 2 located in Chicago * Lin Nevada + Li
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 36% and high deposit balances, aligns interests with public shareholders + Experienced management team and Boa
Slide 5: Experienced Leadership Team
Experienced Leadership Team SE @ Average 34 years of bank management experience in finance, lending, credit, risk, strategy and branch operations + President and hiefExecutive Officer (“CEO”) since Royal BusinessBank (the “Bank”) began operations in2008 Yee Phong (Alan) Thian + Appointedto the FDIC
Slide 6: Our History
Our History Historical Progression of Franchise Growth January: Established GD NERETS | | Mev: Acouteed a July: Acquired , Raised $62 million in IPO Received Outstanding Opened @ September: Acaui Overseas Taiwanese SME | {Earned FindleyReports’ | [ Earned Findley Reports wpterstes || Sb buses bax |
Slide 7: Our Current Footprint
Our Current Footprint @ Coast-to-Coast footprint of 22 branches provide banking services to the largest Asian- American communities in the nation Southern California & Nevada New York and Edison, NJ Arcadia san Gabriel Cerritos Torrance Brooklyn, NY (2) Diamond Bar vine Manhattan, NY Los Angeles (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. en ©® Chinese-American bank universe comprised of over 37 banks!: + Publicly-traded + Locally-owned * Subsidiaries of Taiwanese or Chinese banks ® Other Asian-American banks also represent compelling acquisition oppor
Slide 9: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth sm Loans Held for Investment ("H Mortgage Loans Held For Sale ("HFS") Noninterest-bearing Deposits $2,577 $2,757 $2,718 1 interest-bearing Deposits $3,070 $2,305 $2,635 $2,144 $2,249 $1,375 1s suasa 52337 all l 201520172018 201920202021
Slide 10: Profitability Drivers
Profitability Drivers Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabi me Vieid on Earning Assets =-Cost of Interest- Bearing Liabilities 2.28% =e=Yield on TotalLoans —e=Cos of Total Deposits 5.15% 566% 557% 5.58% SS 5.35% 3 3 5.13% Se 041% 2016 2017 2018 2019 2020 202
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio TE Loan Portfolio Composition (June 30, 2021) @ $2.71 billion total HFI loans as of June 30, 20211 @ Diversified across industry lines + SFR - Mainlynon-QM mortgages? By + CRE- Owner occupied and Investor owned? Business Line’: + C&i- Majority secured by assets + SBA- Prim
Slide 12: Business Line Profile: SFR Lending
Business Line Profile: SFR Lending As of June 30, 2021: @D Average: LTV of 56.2%; FICO score of 756; duration of approximately 2.83 years @® Average current start rates: Our non-qualified SFR loan productis a 7 year hybrid adjustable mortgage, which re-prices at 7 years to the 1 year CMT plus 2.50%,
Slide 13: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of June 30, 2021: CRE Loans C&D Loans CRE and C&D Portfolio Growth (Smm) $1,102 million $237.0 million Land Acq. & Development 7.6% Single Family owner 74% — occupied 16.7% Multifamily 38.1% ‘® ~15.4% of CRE loans are fixed rate or hybrid loans 201
Slide 14: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&I Lending | SBA Lending As of June 30, 2021: C&I Loans SBA Loans $277.1 million $98.6 million Bank Sub Debt 3.8% Guaranteed 36.1% Ungderanteed Unguaranteed SBA Loan: By Business: By Location: Other 17.0% California 48.2% (2) Credit Lines include commercial ad industrial i 20
Slide 15: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming Loans’ / Total Loans Nonperforming Assets? / Total Assets 0.72% o71% SR 0.59% 0.21% a 05% 016% 0.15% 2016 2017 2019 2020 2021 2016 2017 2019 2020 2021 Allowance for Loan Losses / Total Loans Net Charge-Offs (Recoveries) / Average Loans 1.10% 1.08% pa 005% = 0
Slide 16: Deposit Portfolio as of March 31, 2021
Deposit Portfolio as of March 31, 2021 @ Strongest growth coming in DDAs @ Top 10 Deposit Relationships = $545.3 million a @ @) i (17.3% of total deposits) + 3 ofthe Top 10 Relationships are with directors and shareholders of the Company, $111.4 million, or ~20% of Top 10 total For the Three Months
Slide 17: Interest Rate Risk Profile
Interest Rate Risk Profile @ 12month net interest income (“NII”) sensitivity is neutral to slightly asset sensitive @ Economic Value of Equity (“EVE”) sensitivity is neutral to slightly liability sensitive in a flat to declining environment 12-Month Nil Sensitivity EVE Sensitivity Immediate Change i
Slide 18: Consolidated Capital Ratios
Consolidated Capital Ratios Consolidated Capital Ratios Consolidated Capitalization Table TCE/TA* Tier 1 Leverage Tier 1 Common Tier 1 Risk- Ratio Capital Ratio Based Capital Ratio MEE As Reported June 30, 2021 === Basel Ill Fully Phased in Well-Capitalized Level (2) Non-GAAP reconciliation in Appen
Slide 19: Outlook
Outlook ‘@ Net interest margin expected to remain stable or contract modestly * Average CD costs will decrease due to rollover of higher cost CDs through 2021 * Loan and deposit rate environment will rem: competitive + Excess liq expected to run off over the next 12 months @ Continued Balance Sheet
Slide 20: Appendix A: Non-GAAP Reconciliations
Appendix A: Non-GAAP Reconciliations
Slide 21: 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 22: Regulatory Reporting to Financial Statements: Adjusted Core Deposits
Regulatory Reporting to Financial Statements: Adjusted Core Deposits Se ‘Some of the financial measures includedin this presentation and in forms 10-Q& 10-Kfiled with the SEC differ from those reported on the FRB Y-9(c) report. These financial measures include “core deposits to total deposits.” Qurm