Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (February 2018)
30 slides from Rbb Bancorp's investor presentation, Feb 1, 2018
Slide 1: January 2018 Investor Presentation
January 2018 Investor Presentation Exhibit 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 the Company’s current business plans and expe
Slide 3: Experienced Leadership Team
Experienced Leadership Team Average 32 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 36 years Chairman, President and Chief Executive Officer (“CEO”)
Slide 4: RBB Bancorp – Who We Are
Balance Sheet (Dollars in millions) Total Assets $1,691 Total Loans, Including Held for Sale $1,375 Total Deposits $1,337 Tangible Common Equity1 $234 Tangible Common Equity / Tangible Assets1 14.09% NPAs / Assets2 0.17% Profitability Return on Average Assets (Adjusted)1 1.48% Return on Average Comm
Slide 5: Investment highlights
High-performing community bank with defined and proven strategy to grow both organically and through acquisitions High level of insider ownership and deposit concentration aligns interest with investors Experienced management team and Board of Directors with demonstrated industry knowledge, regulato
Slide 6: Our History and Strategy
September: Acquired July: Acquired January: Established 2011 Our History and Strategy Historical Timeline May: Acquired Received Outstanding Overseas Taiwanese SME Award 2013 Earned Findley Reports’ “Super Premier” status 2015 Opened 2008 Opened SBA banking unit 2010 Raised over $54mm in private off
Slide 7: Our Current Footprint
Our Current Footprint Branches (13) LPO (1) Los Angeles County, California Clark County, Nevada Ventura County, California Arcadia Cerritos Diamond Bar Los Angeles (Downtown) Los Angeles (Westwood) Los Angeles (Silver Lake) Monterey Park Rowland Heights San Gabriel Torrance City of Industry* *Loan P
Slide 8: Key Highlights of Our Current Markets
Key Highlights of Our Current Markets: Los Angeles County, CA | Ventura County, CA | Clark County, NV Source: U.S. Census Bureau Los Angeles County, California Part of the Los Angeles-Long Beach-Anaheim, California Metropolitan Statistical Area (“MSA”) Largest MSA in California with over 13 million
Slide 9: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. Chinese-American bank universe as defined by RBB’s management team Count refers to total number of Chinese-American banks that are headquartered in the indicated MSA Source: SNL Financial, 2010 Census Chinese-American
Slide 10: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Non-GAAP reconciliation in Appendix on page 27 Total Assets ($mm) Total Loans ($mm) Total Deposits ($mm) Adjusted Earnings¹ ($mm) 2012 – 2017 CAGR = 24.0% 2012 – 2017 CAGR = 33.3% 2012 – 2017 CAGR = 24.7% 2012 – 2017 CAGR = 57.0%
Slide 11: Diversified Loan Portfolio
Diversified across industry lines and minimal demand for non-mortgage consumer credit $1.25 billion total loans as of December 31, 2017 84% originated vs. 16% acquired Average yield on loans of 6.30% for the fourth quarter of 2017 Diversified Loan Portfolio Excludes purchased loan discounts and defe
Slide 12: Business Line Profile
Business Line Profile Between $1 million and $25 million annual revenue CRE Lending Real estate loans for owner occupied and non-owner occupied commercial property; includes construction and land development (“C&D”) loans High quality credits Low LTV ratios (policy limit of 75%) Income-producing pro
Slide 13: Business Line Profile: CRE Lending | C&D Lending
~8.5% fixed rate Business Line Profile: CRE Lending | C&D Lending CRE Loans CRE and C&D Portfolio Growth C&D Loans C&D 2012 – 2017 CAGR = 10.2% CRE 2012 – 2017 CAGR = 23.8% (Dollars in millions) As of December 31, 2017: $496.0 million $91.9 million
Slide 14: 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 December 31, 2017: $280.8 million $131.4 million C&I and SBA Portfolio Growth (Dollars in
Slide 15: Business Line Profile: 1-4 Single Family Residential Lending
As of December 31, 2017: No nonperforming loans¹ in the SFR portfolio Average: LTV of 59.6%; FICO score of 751; duration of 4.7 years Current start rate of 4.50%; reprices after 7 years to one-year LIBOR plus 2.75% Business Line Profile: 1-4 Single Family Residential Lending SFR Loans Nonperforming
Slide 16: CRE Concentration Below Interagency Guidance
CRE Concentration¹ Below Interagency Guidance CRE for the purpose of the CRE concentration ratio measured as total commercial real estate loans less owner-occupied commercial real estate loans plus construction and land development loans; CRE concentration measures this value as a percentage of tota
Slide 17: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming loans include nonaccrual loans, loans past due 90 days or more and still accruing interest and loans modified under troubled debt restructurings; nonperforming loans exclude PCI loans acquired in prior acquisitions Nonperforming assets include nonperforming l
Slide 18: Deposit Portfolio as of December 31, 2017
Avg. Balance Weighted ($mm) Avg. Rate Noninterest-Bearing Demand $268.6 0.00% NOW $21.6 0.22% Savings $35.1 0.47% Money Market $336.4 0.74% Retail Time¹ $295.9 1.22% Jumbo Time² $349.3 1.22% Total Deposits $1,306.9 0.81% Deposit Portfolio as of December 31, 2017 Strongest growth coming in DDAs Top 1
Slide 19: Attractive Net Interest Spread
Attractive Net Interest Spread Note: 2017Q3 profitability metrics reflect annualized values for the quarter Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabilities Net Interest Spread Net Interest Margin (FTE)
Slide 20: Outstanding Financial Performance
Outstanding Financial Performance Note: 2017Q3 profitability metrics reflect annualized values for the quarter Non-GAAP reconciliation in Appendix on page 27 for RBB’s calculation of core, or “adjusted,” earnings metrics Core Return on Average Assets¹ Core Return on Average Tangible Common Equity¹ E
Slide 21: Well-Diversified Revenue Streams
(Dollars in thousands) For the Three Months Ended December 31, 2016 2017 Change Noninterest Income: Service Charges, Fees and Other $573 $487 (15.0%) Gain on Sale of Loans 1,711 2,949 70.0% Loan Servicing Fees, Net Amortization 231 151 (34.6%) Recoveries on Aquired Loans¹ 31 7 (77.4%) BOLI Income² 1
Slide 22: Capitalization
(Dollars in millions, except per share amounts) As of December 31, 2017 Actual Long-Term Debt Long-Term Debt1 $49.5 Subordinated Debentures2 3.4 Total Long-Term Debt $52.9 Shareholders' Equity Common Stock $205.9 Additional Paid-in Capital 8.4 Retained Earnings 51.3 Accumulated Other Comprehensive L
Slide 23: Outlook
Loan pipeline expected to support double-digit loan growth Residential mortgage loan production positively impacted by expansion of lending activity in Las Vegas, Northern California and San Diego SBA loan production will remain at lower level until additional loan officers are hired Finalizing the
Slide 24: Appendix
Appendix
Slide 25: Board of Directors
Board of Directors Yee Phong (Alan) Thian Chairman of the Board Chairman, President and CEO of the Company and the Bank since the Bank began operations in 2008 Peter M. Chang President of Yao Yang Enterprises LLC, which purchases and exports waste paper Wendell Chen CEO of US Development LLC, a real
Slide 26: Interest Rate Risk Analysis
(Dollars in thousands) Net Interest Income September 30, 2017 December 31, 2016 December 31, 2015 December 31, 2014 Scenario $ Change % Change $ Change % Change $ Change % Change $ Change % Change -100bps Shock ($1,204) (2.75%) ($650) (1.30%) ($362) (1.00%) $736 2.20% +100bps Shock $4,870 7.85% $3,3
Slide 27: 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 28: Non-GAAP Reconciliation: Adjusted Earnings
Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. These non-GAAP financial measures include “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” and “adjusted return on average tangib
Slide 29: Core Deposits Measurement
Some of the financial measures included in this prospectus 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 performance. The Bank measures core deposits by review
Slide 30: How We Measure Core Deposits
How We Measure Core Deposits Demand Deposits Savings Deposits Time Deposits < $250,000 Relationship with RBB Director or shareholder? Deposits within the Bank’s market area? Additional non-deposit services with the Bank? Electronic banking services with the Bank? Active demand deposit account with t