Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (November 2021)
22 slides from Rbb Bancorp's investor presentation, Nov 4, 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 2021 NASDAQ: RBB
Slide 2: Disclosure Statement
Disclosure Statement This presenteton conten forwordslookng statements within the meaning of the Private Secures Litigation Reform Act of 1995. Forward-looking statements often include the words “Believes,” “expec,” “anticipate,” “estimates,” “forecasts,” “Intends,” “plons,” “targes,” “potential,” “
Slide 3: RBB Bancorp — Who We Are
RBB Bancorp — Who We Are @ Established in 2008 and headquartered in Los Angeles, California + $3.8 billion asset Chinese-American, business- oriented community bank ® 22 traditional branches? * 12 located in Southern California * 6 located in New York * 2 located in Chicago * Lin Nevada * 1in New Je
Slide 4: Investment Highlights
Investment Highlights cn ‘@ 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
Slide 5: Experienced Leadership Team
Experienced Leadership Team ee ‘D Average 34 years of bank management experience in finance, lending, credit, risk, strategy and branch operations President andChietExecutve Otfcer(“CEO" since Royal BusinessBenk (the Bank") began operationsin2008 ‘Appointedto the FDICcommunity ankadvisoycommitee twi
Slide 6: Our History
Our History eee Historical Progression of Franchise Growth January: Established oD BEse,| [Mave Acquires, SOeeee is eauired, Raised $62 million nO Received Outstanding meena Overseas TaivaneseSME |/Earned Findley Reports’ || Earned Findley Reports op peegten award “super Premier” status _|| “Super P
Slide 7: Our Current Footprint
Our Current Footprint ®DCoast-to-Coast footprint of 22 branches provide banking services to the largest Asian- American communities in the nation Southern California & Nevada Arcadia Sen Gabriel Cerritos Torrance Brooklyn, NY (2) Diamond Bar levine Manhattan, NY Los Angeles (2) Oxnard Queens, NY (3)
Slide 8: Substantial Opportunities for Acquisitions
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. A ‘@ Chinese-American bank universe comprised of over 37 banks’: * Publicly-traded * Locally-owned * Subsidiaries of Taiwanese or Chinese banks ‘® Other Asian-American banks also represent compelling acquisition oppor
Slide 9: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Total Loans ($mm) Total Deposits ($mm) 1 Loans Held for Invesmens (HF) Mortgage Loans Held For Sale ("HS $2,577 Noninterea-besring Depests $2,968 a irterex-bewrg Depots s27s7 $2856 re Dees 52,635 s2taq $2289 $1,337 $1,153 2016 © 2017,— 2
Slide 10: Profitability Drivers
Profitability Drivers sss eee Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabilities me Viet on Esring Assets a0 of rcerese- Bearing Lites 2.20% —eView on TeralLoans eos of ToxalDepesits 575% 586K SSH 5.50% 413% 2016 2017 2018 2019 2020 saz 2016 2017 2018 2019 2020 302
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Composition (September 30, 2021) ® $2.84 billion total HFI loans as of September30, 2021" @ Diversified across industry lines + SFR-Mainlynon-OM mortgages By + CRE- Owneroccupiedand investorowned* Business Line’: + CBi- Majority secured by assets + SBA- Prim
Slide 12: Business Line Profile: SFR Lending
Business Line Profile: SFR Lending As of September 30, 2021: @D Average: LTV of 56.2%; FICO score of 758; duration of approximately 2.75 years @ Average current start rates: Our non-qualified SFR loan products a 7 year hybrid adjustable mortgage, which re-prices at 7 years to the 1year CMT plus 2.50
Slide 13: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of September 30, 2021: CRE Loans C&D Loans CRE and C&D Portfolio Growth ($mm) $1,206 million $271.8 million Land Acq. & Development 73% owner Occupied SD 14.0% of CRE loans are fixed rate or hybrid loans 2016 «2017, 201820192020 sat CRE Loans mCRO
Slide 14: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&I Lending | SBA Lending As of June 30, 2021: C&l Loans SBA Loans C& and SBA Portfolio Growth ($mm) $276.4 million $88.8 million Bank Sub Debt A Unguaranteed SBA Loans: By Busines: By Location: 2018 2015 2016 2017 2018 2019-2020 202021 MCR Loans SBA Loans “
Slide 15: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming Loans' / Total Loans Nonperforming Assets? / Total Assets 07% aie 0.59% 0.50% aa 038% 21% aan 045% 016% = oa5%. 2019 220 2016 2019 Allowance for Loan Losses / Total Loans Net Charge-Offs (Recoveries) / Average Loans 1.28% 005% = 00s% 0S 05H (0.06%) 2016 2017
Slide 16: Deposit Portfolio as of September 30, 2021
Deposit Portfolio as of September, 2021 ee Deposit Portfolio Compos @® Strongest growth coming in MMDAs @ Top 10 Deposit Relationships = $448.9 million Total: $2.97 billion (15.1% of total deposits) + Lofthe Top 10 Relationships are with directors and shareholders of the Company, $39.1 million, or ~
Slide 17: Interest Rate Risk Profile
Interest Rate Risk Profile ‘@ 12 month net interest income (“NII”) sensitivity is neutral to slightly asset sensitive @ Economic Value of Equity (“EVE”) sensitivity is neutral to slightly liability sensitivein a flat to declining environment 12-Month Nill Sensitivity EVE Sensitivity Immediate Change
Slide 18: Consolidated Capital Ratios
Consolidated Capital Ratios Consolidated Capital Ratios Consolidated Capitalization Table 23.30% ng-Term Det Long-termFHLB Advance frustPreferreaSecurties otal Long-Term Debt Shareholders’ Equity “ommon Stock $2832 \dditionalPaisinCapitat a4 Treasury Stock tained Earnings 1690 cumulated Other Compre
Slide 19: Outlook
Outlook ‘@ Netinterest 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 remain compet fe + Excess liquidity is expected to run off over the next 12 months ‘@ Continued Balance
Slide 20: Appendix
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Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible Common Equity and Tangible Assets Se ‘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 valu
Slide 22: Regulatory Reporting to Financial Statements
Regulatory Reporting to Financial Statements. Adjusted Core Deposits See ‘Some of the financial measures includedin this presentation and in forms 10-0 & 10-Kfiled with the SEC differ from those reported on the FRB Y-9(c)report. These financial measures include “core deposits to total deposit.” Ourm