Rbb Bancorp · NASDAQ:RBB
Rbb Bancorp — Q3 2023 Earnings Presentation
19 slides from Rbb Bancorp's earnings presentation, Oct 23, 2023
Slide 1: RBB Bancorp 2023 Third Quarter Earnings Results
09) RBB BANCORP NASDAQ: RBB 2023 Third Quarter Earnings Results October 23, 2023
Slide 2: Disclosure Statement
Disclosure Statement ‘This presentation contains forward-looking statements within We mearing of the Pavate Secuties Ligation Reform Act of 1995, Fontarilootng stalemenis often clude the words bellevesy “epecty” “anticipates” “estimates,” forecasts," intends,"-plans," “targets, -potertially,"-probab
Slide 3: 3rd Quarter 2023 Financial Highlights
3'4 Quarter 2023 | Financial Highlights (§ in thousands, except per share data) Earnings & Profitability iets SS oe oe ROAA, annualized 1.80% 1.12% 1.08% 1.17% Total Gross HFI Loans: $3,336,449 $3,342,416 $3,195,995 $3,120,952 Provision for Credit Losses $1,887 $2,014 $380 $1,398 Net Loan Charge-off
Slide 4: Strategically Managed Balance Sheet
Strategically Managed Balance Sheet ($ in thousands, except per share data) Net loans to deposits ratio Cech ond cash eauvaleis 4ST. S sade § 22130 § 246905 sams g | HOT HTM debt securities 5,729 5,722 5718 5204 = = 7 Total assets $3,919,058 §$ 4,110,084 $ 4,075,618 $4,069,354 Other liabilities 48,5
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio ® Diversified across business lines Loan Portfolio Composition as of 9/30/23 SFR*- Mainly non-QM loans By Business Line: C&- Majority secured by assets SBA - Primarily SBA 7(a) loans for business acquisition or working capital om mae ‘D 56.1% Fixed rate and 43.9% Variable
Slide 6: Commercial Real Estate: Office Portfolio as of September 30, 2023
Commercial Real Estate : Office Portfolio as of September 30, 2023 LTV Distribution Hy si,z7 @ CRE Office exposure is $44.7 million: Z 3.4% of CRE portfolio and 1.4% of total < loans $9,361 a0 $3783 53.362 | a ® L1Wdistribution: ASN ASSO SENG GENTS TENE >85N + Average weighted LTV ~62% * Over 70% of
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 mi Land Development 2% Multifamily 4.8% 9/30/2003, CRE Loans CBD Loans
Slide 8: Residential Mortgage Portfolio as of September 30, 2023
Residential Mortgage Portfolio as of September 30, 2023 ribution by Geography Distribution by LTV m<=50 m>50, m>55, <=60 mSoCal MNY mNorCal MIL MNJ mNV mOther 565, 288 wees, pee nvother Le 1% 1% $1.50billion Residential Mortgage avg. loansize tears, 61% Avg. LTV
Slide 9: Business Line Profile: C&I | SBA
Business Line Profile: C&l| SBA As of September 30, 2023: SBALoans Cal and SBA Pott (Smm) $50.4 million $127.7 mi Unguaranteed Unsecured 2456 shfiee Nat fgpedite 12/31/22 3/31/23 6/30/23 9/30/2023 mI C&I Loans |= SBA Loans By Business: California 61.7% MeT ei
Slide 10: Deposits
Deposits Total Deposits Average Deposit Growth - QoQ Annualized Sin thousands $3,154 million aes ee ge bel ere ose a @ = 60% = 2 ss71 3022 4022 1923 2023 3923 NionsinterestBearing mCoreTime Non-Core Time QoQ annualized growth (2%) anna mw iBSavings = 0D8 Average Cost of Deposits by Type in bps su7 e
Slide 11: Allowance for Credit Losses & Credit Costs
Allowance for Credit Losses & Credit Costs Sin Thousands cm) Allowance for Credit Losses sasors 543.092 35 $42,430 $41,076. ==" ® Provision for credit losses of $1.4mm in 3023, increased from $380,000 in 2923; and allowancefor credit losses decreased to $42.4mm from $43.1mm: + ~$792,000 increase res
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 3 os é- cx a any 1ysy2 —3/81/23.——/80/23. 9/30/2023 Other Regions sm Mortzage& ME Non-performingloans mmm OREO NPAs / Total Assets amma ‘D_Non-performing assets
Slide 13: Asset Quality Metrics: Loan Classifications and Delinquencies
Asset Quality Metrics : Loan Classifications and Delinquencies SAP, Special Mention Loans & Substandard Loans $104,178 Sin Thousands 12/31/22 $166,745 $98,222 3/31/23 6/30/23 mSpecial Mention _m Substandard $15,249 Sin Thousands 12/31/22 RBS BANCO RARE 30-89 days delinquent loans $14,288 P| 242 3/31
Slide 14: Noninterest Income Detail
Noninterest Income Detail | $7.73 | $0.40 2 Ss ‘@ _3Q23noninterestincome of $7.7mm, = increased from $2.5mm in 2Q23, mainly due E to receipt of CDFI ERP award of $5 million. & $2.36 @ 3Q23 loanservicing fees increased from $2.35 f 2Q23, mainly dueto increase in loans that the Bank services $1.31 492
Slide 15: Operating Expense & Efficiency
Operating Expense & Efficiency $in millions @Q OD ESE Noninterest Expense $18.91 $18.52 $2.87 4Q22 1923 2923 3Q23 Salaries and employee benefits m Occupancy and equipment wm Dataprocessing Legal and professional mother 3Q23 noninterest expense of $16.9mm, decreased from $18.5mm in 2923 Noninterest e
Slide 16: Accumulation of Strong Company Capital Ratios
Accumulation of Strong Company Capital Ratios CET1 Capital Ratio (ir76% [isos | [163s] | 159%) Tangible Common Equity Ratio” } (a08s% ) (aoaom} [106 ) [040% | 12/31/22 3/31/23 6/30/23 9/30/2023 : ; a 2PSZ2s niaulzs sSFaNZS: arSn/ZAEs Tangible Common Equity Ratio mm CET: CapitalRatio —=— Well cpitali
Slide 17: Appendix: Non-GAAP Reconciliations
CD *? BANCORP wees 2 eH RSE Appendix: Non-GAAP Reconciliations
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. Thesenon-GAAP financial measures include “tangible common equity to tangible assets, “tangible book value per