Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Q3 2023 Earnings Presentation
19 slides from Rbb Bancorp's earnings presentation, Oct 24, 2023
Slide 1: 2023 Third Quarter Earnings Results
NASDAQ: RBB 2023 Third Quarter Earnings Results November 14, 2023
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,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “po
Slide 3: 3rd Quarter 2023 Financial Highlights
3rd Quarter 2023 | Financial Highlights ($ in thousands, except per share data) 4Q22 1Q23 2Q23 3Q23 Highlights Earnings & Profitability EPS $0.92 $0.58 $0.58 $0.45 Net Income EPS Net Income $17,581 $10,970 $10,949 $8,473 Pre-Provision Net Revenue* $27,189 $17,552 $15,902 $13,483 $8.5 million $0.45 N
Slide 4: Strategically Managed Balance Sheet
Strategically Managed Balance Sheet ($ in thousands, except per share Net loans to deposits ratio 12/31/22 3/31/23 6/30/23 9/30/23 data) $ in Millions Cash and cash equivalents & ST 110.7% $ 84,148 $ 231,303 $ 246,925 $331, 391 investments $3,295 $3,299 $3,153 $3,079 AFS debt securities 256,830 293,
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio Diversified across business lines Loan Portfolio Composition as of 9/30/23 SFR1 - Mainly non-QM loans By Business Line: C&I - Majority secured by assets SBA - Primarily SBA 7(a) loans for business acquisition or working capital SFR1 CRE2 46% 48% 56.1% Fixed rate and 43.9%
Slide 6: Commercial Real Estate: Office Portfolio
Commercial Real Estate : Office Portfolio as of September 30, 2023 LTV Distribution $ in Thousands $19,127 CRE Office exposure is $44.7 million: 3.4% of CRE portfolio and 1.4% of total loans $9,361 $8,910 $3,783 $3,362 LTV distribution: $129 <45% 45%-55% 55%-65% 65%-75% 75%-85% >85% • Average weight
Slide 7: Business Line Profile: CRE | C&D
Business Line Profile: CRE | C&D As of September 30, 2023: CRE Loans C&D Loans CRE and C&D Portfolio ($mm) $1,164.2 million $259.8 million $276.9 $281.2 $256.9 $259.8 Single Land Family Development 6.5% Other Owner 12.1% Occupied 17.7% Commercial Residential Other Non-Owner Construction Construction
Slide 8: Residential Mortgage Portfolio
Residential Mortgage Portfolio as of September 30, 2023 Distribution by Geography Distribution by LTV <=50 >50, <=55 >55, <=60 SoCal NY NorCal IL NJ NV Other >60, <=65 >65, <=70 >70 NV Other IL 1% 1% 3% NJ 2% >70 NorCal 9% <=50 6% 16% SoCal >50, <=55 $1.50 billion 41% 8% Residential >65, <=70 $460,4
Slide 9: Business Line Profile: C&I | SBA
Business Line Profile: C&I | SBA As of September 30, 2023: C&I Loans SBA Loans C&I and SBA Portfolio ($mm) $127.7 million $50.4 million Unguaranteed Unsecured 2.4% Shared Guaranteed Nat'l Credits 7.5% $61.4 3.7% $58.5 $53.5 $50.4 $201.2 $156.0 $131.5 $127.7 Credit Lines Unguaranteed 96.3% Secured by
Slide 10: Deposits
Deposits Total Deposits Average Deposit Growth – QoQ Annualized $ in thousands +2% $3,154 million $2,899 $2,972 +19% $3,017 +17% $3,141 $60 $3,155 $55 -2% $63 $111 $124 $75 $68 $137 $121 $403 $147 $432 $459 $562 IB $613 $710 $717 Savings MMA $763 $632 6.0% 13.3% $532 Time Deposits, $567 $250,000 and
Slide 11: Allowance for Credit Losses & Credit Costs
Allowance for Credit Losses & Credit Costs Allowance for Credit Losses $43,071 $43,092 1.36% $ in Thousands $42,430 1.35% $41,076 1.29% 1.23% Provision for credit losses of $1.4mm in 3Q23, increased from $380,000 in 2Q23; and allowance for credit losses decreased to $42.4mm from $43.1mm: • ~$792,000
Slide 12: Asset Quality Metrics: Non-Performing Assets
Asset Quality Metrics : Non-Performing Assets Total NPAs / Total Assets Non-Performing Loans Non-Performing Loans $42,439 By Region By Type $40,430 $ in Thousands Other 1.04% NY Regions $27,013 0.99% 2.8% 4.5% $24,100 Mortgage & IL Consumer 26.20% CRE 0.66% 16,918 0.61% 42% 20,458 51% CA 66.5% C&I C
Slide 13: Asset Quality Metrics: Loan Classifications and Delinquencies
Asset Quality Metrics : Loan Classifications and Delinquencies Special Mention Loans & Substandard Loans Special Mention Loans & Substandard Loans by Type $66,233 $ in Thousands $166,745 $ in Thousands $77,716 $104,178 $98,222 $102,613 $21,293 $61,966 $71,401 $15,087 $74,072 $89,029 $42,212 $31,212
Slide 14: Noninterest Income Detail
Noninterest Income Detail $ in millions 3Q23 noninterest income of $2.8mm, increased from $2.5mm in 2Q23, mainly $2.77 due to gain on sale of OREO and gain on $2.36 $2.49 $2.35 sale of loans, partially offset by decrease $0.02 $0.40 in letter of credit commissions, wealth $0.13 $0.04 $0.34 $0.34 $0.
Slide 15: Operating Expense & Efficiency
Operating Expense & Efficiency Noninterest Expense Total Revenue & Efficiency Ratio $18.91 $18.52 $ in millions $ in millions $2.34 $16.88 $2.53 55.59% 53.80% $14.16 $3.01 $2.38 51.86% $2.87 $1.02 $2.61 $1.30 $1.36 $1.32 $1.05 $2.40 $2.43 $2.41 34.24% $1.20 $2.36 $9.86 $9.33 $9.74 $41.35 $36.46 $34.
Slide 16: Accumulation of Strong Company Capital Ratios
Accumulation of Strong Company Capital Ratios CET1 Capital Ratio Tangible Common Equity Ratio* 17.65% 16.33% 16.91% 16.03% Accumulation of capital 10.65% 10.71% over quarters 10.40% 10.64% Remains some of the 6.50% 6.50% 6.50% 6.50% strongest capital ratios among peer banks 12/31/22 3/31/23 6/30/23
Slide 17: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations 17
Slide 18: Non-GAAP Reconciliation: Pre-Provision Net Revenue
Non-GAAP Reconciliation: Pre-Provision Net Revenue Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. These non-GAAP financial measures include “pre-provision net revenue.” Our management uses these non-GAAP financial measures i
Slide 19: Non-GAAP Reconciliation: Tangible Common Equity and Tangible Assets
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 p