RBB Bancorp : Investor Presentation - May 2022

Investor Presentation

May 2022

NASDAQ: RBB

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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," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would" and "could" and the negative of these terms and similar words, although some forward-looking statements may be expressed differently. Forward-looking statements also include, but are not limited to, statements regarding plans, objectives, expectations or consequences of announced transactions, known trends and statements about future performance, operations, products and services of RBB Bancorp (RBB or the Company) and its subsidiaries.

These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks and uncertainties and other factors include, but are not limited to, adverse developments or conditions related to or arising from: (1) U.S. and international business and economic conditions;(2) possible additional provisions for loan losses and charge-offs; (3) credit risks of lending activities and deterioration in asset or credit quality; (4) extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; (5) increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"); (6) compliance with the Bank Secrecy Act and other money laundering statutes and regulations; (7) potential goodwill impairment; (8) liquidity risk; (9) fluctuations in interest rates; (10) the expected discontinuation of the London Interbank Offering Rate after 2021, and uncertainty regarding potential alternative reference rates, including the Secured Overnight Financing Rate; (11) risks associated with acquisitions and the expansion of our business into new markets; (12) inflation and deflation; (13) real estate market conditions and the value of real estate collateral; (14) environmental liabilities; (15) our ability to compete with larger competitors; (16) our ability to retain key personnel; (17) successful management of reputational risk; (18) severe weather, natural disasters, acts of war or terrorism, public health issues (including novel coronavirus, or COVID-19), or other adverse external events could harm our business; (19) general economic or business conditions in Asia, and other regions where the Bank has operations; (20) failures, interruptions, or security breaches of our information systems; (21) our ability to adapt our systems to the expanding use of technology in banking; (22) risk management processes and strategies; (23) adverse results in legal proceedings; (24) the impact of regulatory enforcement actions, if any; (25) certain provisions in our charter and bylaws that may affect acquisition of RBB; (26) changes in tax laws and regulations; (27) the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters, including Accounting Standards Update 2016-13 (Topic 326), "Measurement of Credit Losses on Financial Instruments," commonly referenced as the Current Expected Credit Loss model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption on December 31, 2022; (28) market disruption and volatility; (29) fluctuations in the Bancorp's stock price; (30) restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; (31) issuances of preferred stock; (32) our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; (33) the soundness of other financial institutions and other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and (34) other risks detailed from time to time in our filings with the Securities and Exchange Commission (the "SEC") including our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K or 10-K/A, all of which could cause actual results to differ from those set forth in the forward-looking statements.

Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results

.

There can be no assurance that other factors not currently anticipated by us will not materially and adversely affect our business, financial condition and results of operations. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the recent outbreak of the COVID-19 pandemic. You are cautioned not to place undue reliance on our forward looking statements, which reflect management's analysis and expectations only as of the date of such statements. Forward looking statements speak only as of the date they are made, and we do not intend, and undertake no obligation, to publicly revise or update forward looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities law.

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RBB Bancorp - Who We Are

Overview

Established in 2008 and headquartered in Los Angeles, California

• $4.0 billion asset Chinese-American,business-oriented community bank

24 traditional branches

• 12 located in Southern California
• 7 located in New York
• 2 located in Chicago
• 1 in Nevada
• 1 in New Jersey
• 1 in Hawaii

Four principal business lines:

• Commercial Real Estate ("CRE")3
• Commercial & Industrial ("C&I")
• 1-4Single Family Residential ("SFR")
• SBA Lending ("SBA")

Six successful acquisitions completed since 2010

Certified Community Development Financial Institution since mid-February 2016

Financial Highlights

For the Three Months Ended March 31, 2022:

Balance Sheet ($mm)

Total Assets	$4,014
Gross Loans, Including Held for Sale	$3,010
Total Deposits	$3,168
Tangible Common Equity1	$389
Tangible Common Equity / Tangible Assets1	9.87%
NPAs / Assets2	0.52%
Profitability
Return on Average Assets, annualized	1.39%
Return on Average Tangible Common Equity1	12.59%
FTE Net Interest Margin	3.49%
Efficiency Ratio	42.90%

(1)	Non-GAAP reconciliation in Appendix A
(2)	Nonperforming assets include nonaccrual loans, loans modified under troubled debt restructurings, and other repossessed assets; excludes purchased
	credit impaired ("PCI") loans acquired in prior acquisitions	3
(3)	Includes construction and land development loans

Investment Highlights

High-performing community bank with defined and proven strategy to grow both organically and through acquisitions

• Insider ownership (including family holdings) at 21% and high deposit balances, aligns interests with public shareholders
• Experienced management team and Board of Directors with demonstrated industry knowledge, regulatory relationships, lending expertise and community involvement
• Niche markets with concentration on Asian-Americans
• • Products structured to address the needs of underserved individuals and businesses within those markets
  • Significant opportunities for future acquisitions across the U.S.

Conservative risk profile with focused and diversified lending strategy

• Solid asset quality from disciplined credit culture and rigorous underwriting standards
• Asset sensitive balance sheet

Track record of attractive returns

• Diversified revenue with four lending products spread across multiple industries and geographies
• Substantial noninterest income and well-managed noninterest expenses

Exceptional investment opportunity to hold an interest in a well-managed, highly profitable institution

• Compelling valuation and consistent dividend payout ratio

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Experienced Leadership Team

Average 34 years of bank management experience in finance, lending, credit, risk, strategy and branch operations

Name / Title	Experience	Background
David Morris	34 years	• Appointed Interim President and Chief Executive Officer in February 2022.
Interim President, Chief	•	Appointed EVP and Chief Financial Officer of the Bank and Company in 2010.
(12 years with RBB)
Executive Officer &	• Formerly President and CEO with MetroPacific Bank and EVP, CFO and Chief Operating Officer with San Diego Community
Chief Financial Officer			Bank.
Jeffrey Yeh	31 years	• Joined the Bank as an executive officer in 2008 and promoted to EVP and Chief Credit Officer in January 2014.
Executive Vice President &	(13 years with RBB)	• Formerly Finance Director and Business Control Manager for Universal Science Industrial Co, Ltd. and Lending and
Chief Credit Officer			Investment Manager for Bank of Overseas Chinese.
I-Ming (Vincent) Liu	33 years	• Joined the Bank as an executive officer in 2008, promoted to COO in January 2011, and promoted to Chief Risk Officer of
Executive Vice President &		the Bank in 2011 and of the Company in 2013.
(13 years with RBB)
Chief Risk Officer	• Formerly SVP and head of southern California branch network for United Commercial Bank.
Simon Pang	39 years	•	Joined the Bank as an executive officer in 2008 as head of commercial lending, promoted to Chief Strategy Officer in May
Executive Vice President &		2012.
(13 years with RBB)
Chief Strategy Officer	• Formerly SVP and commercial and international banking manager with United Commercial Bank.
Tsu Te Huang	35 years	•	Joined the Bank as a SVP and branch regional manager in 2009, and was promoted to branch administrator in 2012, and
Executive Vice President &	(13 years with RBB)		EVP in 2016. In 2019, he started our private banking unit.
Director of Private Banking		• Formerly SVP and branch assistant regional manager for United Commercial Bank.
Ashley Chang	23 Years	• Joined the Bank as a vice president and branch manager in 2009.
Executive Vice President &	• Promoted to EVP and branch administrator in 2021
(13 years with RBB)
Branch Administrator	• Formerly AVP and branch manager for United Commercial Bank.

Source: 2020 Proxy (DEF 14A)	5