Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Investor Presentation (September 2020)
25 slides from Rbb Bancorp's investor presentation, Sep 23, 2020
Slide 1: Investor Presentation September 2020
Investor Presentation September 2020 NASDAQ: RBB
Slide 2: Forward-Looking Statements
Forward-Looking Statements ee Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning ofthe Private Securities Litigation Reform Act of 1995, including {forward-looking statements relating to RBB Bancorp’s (“RBB"’) current business pl
Slide 3: Experienced Leadership Team
Experienced Leadership Team @ Average 33 years of bank management expe + Chairman, Presidentand Chief Executive Officer ("CEO") since Royal Business Bank the “Bank") began Yee Phong (Alan) Thian Cesena) Reeve Be + Appointed to the FDIC community bankadvisory committee twice rar ere one + Presentiyon
Slide 4: RBB Bancorp — Who We Are
RBB Bancorp — Who We Are Overview @ Established in 2008 and headquartered in Los Angeles, California + $3.1 billion asset Chinese-American, business- oriented community bank @® 24 traditional branches + 13located in Southern California * Tlocated in New York + located in Chicago + Lin Nevada @ Four
Slide 5: 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 34% and high deposit balances, aligns interests with public shareholders + Experienced management team and Boa
Slide 6: COVID-19 Impact and Response
COVID-19 Impact and Response A @® We are actively addressing client needs + Enrolling clients in the SBA Paycheck Protection Program + As of June 30, 2020, we have received approvals from the SBA for 258 loans in the total amount of $32.8 million The following table as of June 30, 2020 major industr
Slide 7: COVID-19 Loan Modification Update
COVID-19 Loan Modification Update i * As of August 26, 2020, total deferred loans were $148.2 million or 5.6% of loans outstanding* * Total deferred loans decreased $267.7 million, or 64% from June 30, 2020 to August 26, 2020 + The large majority of remaining deferrals are real-estate secured * The
Slide 8: Our History
Our History Historical Progression of Franchise Growth January: Established D SENET May: Acquired Ne Re oi July: Acquired , Received Outstanding Raised $62 million in IPO Opened @ September: Acaui Overseas Taiwanese SME | {Earned FindleyReports’ | [ Earned Findley Reports wpterstes || Sa buses bax |
Slide 9: Our Current Footprint
Our Current Footprint (092) RBB BANCORP ZSueARSE Los Angeles County, California Arcadia Los Angeles Cerritos (Silver Lake) Diamond Bar Monterey Park Los Angeles Rowland Heights (Downtown) San Gabriel Los Angeles Torrance (Westwood) Irvine Oxnard Westlake Village Las Vegas 2 Brooklyn, NY 1 Manhattan,
Slide 10: Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S.
Substantial Opportunities for Acquisitions: Chinese-American Banks Across the U.S. ce Chinese-American Bank’ Locations in the U.S. (as of June 2019) @ Chinese-American bank universe comprised of over West Coast, ‘Texas, Midwest and East Coast 35 banks': =e gael i a + Publicly-traded + Locally-owned
Slide 11: Demonstrated Track Record of Balance Sheet and Earnings Growth
Demonstrated Track Record of Balance Sheet and Earnings Growth sm Loans Held for Invesment Mortgage Loans Held For Sale $2,577 $2,610 $2,305 $1,375 $1,155 | : afl L 2014 2018 2019 2020 Total Deposits ($mm) Nonirteres-bearing Deposits 5 $2436 wm interest-beering Deposits Sana $2249 $1,387 on ai a 201
Slide 12: Profitability Drivers
Profitability Drivers Yield on Average Interest-Earning Assets Cost of Average Interest-Bearing Liabi ee View on Earning Assets w= Cost of Interest-Bearing Libilities Yield on Total Loans —e=Cos of Total Deposits ead 5.75% 0.5956 242015, 2062017, 2018 = 2019S 2020 20142015, 2016S 2017202019200 Net I
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio @ $2.59 billion total HFI loans as of June 30, 2020 Diversified across industry lines + Single Family Residential- Mainly non-QM mortgages By + Commercial Real Estate- Owner occupied and Investor owned Business Line’: + Commercial and industrial- Majority secured by assets
Slide 14: Disciplined Credit Culture
Disciplined Credit Culture Nonperforming Loans’ / Total Loans Nonperforming Assets? / Total Assets 07% 0.56% 058% re 021% 053% ie 056% _— 056% il || | 028% oe | i 2a 0152016 207S2018=S2019S2020 2a 0152016072018. 20192020 Allowance for Loan Losses / Total Loans Net Charge-Offs / Average Loans 1.26% 1
Slide 15: Deposit Portfolio as of June 30, 2020
Deposit Portfolio as of June 30, 2020 @ Strongest growth coming in DDAs @ Top 10 Deposit Relationships = $333.0 million a @ @) (3) (13.7% of total deposits) * 4ofthe Top 10 Relationships are with Directors and shareholders of the Company; $116.6 million, or ~35% of Top 10 total For the Three Months
Slide 16: Consolidated Capital Ratios
Consolidated Capital Ratios (Dottars in millions, except per share amounts) ‘As of June 30, 2020, ‘Retual ng-Term Debt Long-Term Devt s1042 Subordinated Debentures 42 Total Long-Term Debt suet Consolidated Capital Ratios Consolidated Capitalization Table 21.10% Shareholders’ Equity "ommon Stock $286
Slide 17: Interest Rate Risk Profile
Interest Rate Risk Profile @® 12 month Nil sensitivity is neutral to slightly liability sensitive @® Economic Value of Equity (“EVE”) sensitivity is neutral to slightly liability sensitive in a flat to declining environment 12-Month Net Interest Income Sensitivity Economic Value of Equity Sensitivit
Slide 18: Outlook
Outlook @ Net interest margin expected to see modest expan: n + Average CD costs will decrease due to rollover of higher cost CDs * Loan and deposit rate environment will rem: * Tight yield curve will limit NIM expansion @ Do not expect loan sales to return until the 4" quarter igh single-digit bala
Slide 19: Appendix
Appendix
Slide 20: Business Line Profile: 1-4 Single Family Residential Lending
Business Line Profile: 1-4 Single Family Residential Lending SS As of June 30, 2020: @® Average: LTV of 55.7%; FICO score of 758; duration of approximately 2.4 years @® Average current start rates: + 5.00% (Western region); 4.375% plus 1% in points (Eastern region); reprices at 7 years to one-year C
Slide 21: Business Line Profile: CRE Lending | C&D Lending
Business Line Profile: CRE Lending | C&D Lending As of June 30, 2020: CRE Loans C&D Loans CRE and C&D Portfolio Growth $900.3 million $150.4 million (Dollars in milions) Single Family Owner Occupied Residential Construction 61.1% DQ 24.6% fixed rate 201420152016 2017-2018. 2019-2020 CRE Loans = C&D
Slide 22: Business Line Profile: C&I Lending | SBA Lending
Business Line Profile: C&I Lending | SBA Lending As of June 30, 2020: C&I Loans SBA Loans $267.5 million $104.3 million Bank Sub Debt 20% Sapranteed 20.1% Unguaranteed SBA Loan: By Business: By Location: 2015 2016 «2017-2018 2019-2020 C&I Loans SBA Loans BB Banconr (2) Credit Lines include commercia
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 Some of the financial measures included in this presentation and in forms 10-Q & 10-K filed with the SEC differ from those reported on the FRB Y-9{c) report. These financial measures include “core deposits to total deposits.” Our m
Slide 25: How We Measure Core Deposits
How We Measure Core Deposits @ RBB reviews all deposits over $250K on a quarterly basis ‘@® Core deposits are traditionally defined as all deposits less time deposits greater than $250K > The Bank measures core deposits as: Demand Savings Time Deposits Deposits Deposits its? > $250,000? Bese J if ye