Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (May 2021)
24 slides from Rbb Bancorp's investor presentation, May 21, 2021
Slide 1: RBB Bancorp Investor Presentation May 2021
JZ RBB BANCORP SEA KEL Investor Presentation May 2021 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 Fovithe Thirds Months Eided nareh 31202) Angeles, California + $3.7 billion asset Chinese-American, business-_ INN Bslanes|Sheet (srar) NNN) oriented community bank Total Assets $3,664 ® 22 traditional branches Gross Loans, I
Slide 4: Investment Highlights
Investment Highlights —$—— ‘WD 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 a
Slide 5: Earnings Per Share Calculation
Earnings Per Share Calculation (2) RBB BANcorr LERKRER Net Income Number of Shares Outstanding Basic Earning Per Share Diluted Averages Shares Outstanding Diluted Earning Per Share Dividends Declared Total Shareholders’ Equity Tangible Common Equity Book Value per Share Tangible Book Value per Share
Slide 6: COVID-19 Loan Modification Update
COVID-19 Loan Mod! a ation Update + Asof April 15, 2021, total deferred loans were $17.7 million or 0.64% of loans outstanding? * Total deferred loans decreased $393.2 million, or 96% from June 30, 2020to April 15, 2021 + The large majority of remaining deferrals are real-estate secured June 30, 202
Slide 7: Experienced Leadership Team
Experienced Leadership Team i ‘D Average 34 years of bank management experience in finance, lending, credit, risk, strategy and branch operations President andChietExecitve Office "CEO" since Royal BusinessBank(theBank) began operationsin2008 ‘Appoiitedto the FDIC community bank edvisorycommiteetwic
Slide 8: Company history and milestones
January: Established ia Acura, May: Acquired Received Outstanding Raised $62 milion in PO Opened (Overseas TeiwaneseSME award Earned Findley Reports ‘Super Premier” status Earned FindleyReprts’ | [January: Acquired ‘Super Premier” status 2015 2017 2020 2018 Opened 8A banking unit Raised over $54 pri
Slide 9: Our Current Footprint
Our Current Footprint @D Coast-to-Coast footprint of 22 branches provide banking services to the largest Asian- American communities in the nation arcadia senGabrie! Cerritas Torrance Brooklyn, NY (2), iamond dar irvine ‘Manhattan, NY los Angeles (2) Oxnard Queens, NY (3) Monterey Park WestlakeVilla
Slide 10: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. @ Chinese-American bank universe comprised of over 37 banks’ + Publicly-traded * Locally-owned + Subsidiaries of Taiwanese or Chinese banks @ Other Asian-American banks also represent compelling acquisition opportunit
Slide 11: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth Total Loans ($mm) Total Deposits (Smm) Nonieteres-bearng Deposts Moragege Lore Hels For $0 (HFS $2,821 2957 $25 a ccerex bearing eposts a 2 $2782 e 52.635 sats $2249 $1337 $1153, 2016 ©2017, 201820192020 1021 2016 ©2017, 20182019 2020102
Slide 12: Profitability Drivers
Profitability Drivers Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabilities mee View on Earning Assets eco of eres Sering Lebies —eViets on TexaLoans —eCos of Teal Deposits eae ee 449% 2016 2017 2018 2019 2020 1021 2016 2017 2018 2019 2020 saz Net Interest Margin (FTE
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio —<———S$$§_ Loan Portfolio Composition (March 31, 2021) ® $2.72 billion total HFI loans as of March 31, 20212 ® Diversified across industry lines + SFR-Mainlynon-aMmortgages* lynon-OM mortgag By + CRE- Owner occupied and Investor owned? Business Line’: + C&1- Majority secur
Slide 14: Business Line Profile: SFR Lending
Business Line Pro’ : SFR Lending a As of March 31, 2021: @D Average: LTV of 56.4 ICO score of 756; duration of approximately 2.67 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% SFR
Slide 15: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of March 31, 2021: CRE Loans C&D Loans $1,063 million $209.7 million Land Aca. & Development 8.0% ‘Mattifmity 35.3% SD ~19.1% of CRE loans are fixed rate or hybrid loans Residential CRE and C&D Portfolio Growth ($mm) 2016 = 201720182019 2020 tat CR
Slide 16: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&l Lending | SBA Lending As of March 31, 2021: C& Loans SBA Loans C& and SBA Portfolio Growth ($mm) $286.0 million $111.3 million 2015 2016 2017-2018 20192020 mca! S94 Loans D PT
Slide 17: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming Loans’ / Total Loans Nonperforming Assets” / Total Assets one 073% 035% 059% 55% 048% 02% i 015% 016% 05% 2016 ais 2020102 21617 Allowance for Loan Losses / Total Loans Net Charge-Offs (Recoveries) EES Loans 126% anes 005% 0.05% 0.058 (0.06%) wis 07st ois 017
Slide 18: Deposit Portfolio as of March 31, 2021
Deposit Portfolio as of March 31, 2021 @ Strongest growth comingin DDAs Deposit Roc ola Composiiion @ Top 10 Deposit Relationships = $480.4 million Total: $2.82 billion (14.6% of total deposits) + ofthe Top 10 Relationships are with directors and shareholders of the Company, $69.9 million, or ~15% o
Slide 19: 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 liabil ig environment 12-Month Nil Sensitivity EVE Sensitivity Immediate Change in Rates Immediate Change in Ra
Slide 20: Consolidated Capital Ratios
Consolidated Capital Ratios Consolidated Capital Ratios Consolidated Capitalization Table 227% = cetera sine ong temfete Avance woo retorts was tag em De 3369 on Sock sue catoaPencapn ea eons : cnet ares sa ccmaeedome Compre re (oa sca Ey og ta Cpaatn oa ron Ses Onsnng ssaae ok Va restre saat enieto
Slide 21: Outlook
Outlook @ Net interest margin expected to see modest expansion + Average CD costs will decrease due to rollover of higher cost CDs through 2021 + Loan and deposit rate environment will remain competitive + Widening yield curve will increase net interest margin expansion ® High single-digit balance s
Slide 22: Appendix A: Non-GAAP Reconciliations
Slide 23: 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 24: 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