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Investor Presentaiton

Non-GAAP Reconciliation (continued): Adjusted Earnings Metrics Some of the financial measures included in this presentation are not measures of financial performance recognized by GAAP. These non-GAAP financial measures include "adjusted earnings," "adjusted diluted earnings per share," "adjusted return on average assets," and "adjusted return on average tangible common equity." Management uses the measure adjusted earnings to assess the performance of our core business and the strength of our capital position. We believe that this non- GAAP financial measure provides meaningful additional information about us to assist investors in evaluating our operating results. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles adjusted earnings, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on average tangible common equity to their most comparable GAAP measures: (Dollars in thousands, except per share data) As of and for the Nine Months Ended September 30, 2012 As of and for the Year Ended December 31, 2013 2014 2015 2016 2017 Income Before Taxes - GAAP Adjustments to Interest Income $7,041 $12,314 $17,565 $21,969 $32,568 $34,429 Accretion of Purchase Discounts (1,899) (3,367) (2,490) (1,081) (7,501) (2,584) Provision for Loan Losses 3,793 (3,488) Adjustments to Noninterest Income Gain on Sale of OREO (761) (460) (493) (1,218) 142 Gain on Sale of Investment Securities, Net (162) (179) (268) (78) (19) Bank Enterprise Award Grant (415) Bargain Purchase Gain Adjustments to Other Expenses Integration and Acquisition Expenses 815 75 1,746 14 Total Adjustments to Income ($2,822) ($3,606) ($3,251) ($2,302) ($1,981) ($5,916) Adjusted Earnings Pre-Tax $4,219 $8,708 $14,314 $19,667 $30,587 $28,513 Adjusted Taxes 1,794 3,518 5,816 8,063 12,663 11,420 Adjusted Earnings - non-GAAP $2,425 $5,190 $8,498 $11,604 $17,924 $17,094 Adjusted Diluted Earnings Per Share $0.27 Weighted Average Diluted Common Shares Outstanding 8,937,413 $0.44 11,874,808 $0.65 13,170,685 $0.86 13,552,682 $1.31 13,695,900 Average Assets Adjusted Return on Average Assets $575,694 0.42% $658,515 0.79% Average Tangible Common Equity $90,083 $120,820 $809,784 1.05% $141,131 Adjusted Return on Average Tangible Common Equity 2.69% 4.30% 6.02% $1,002,422 1.16% $153,088 7.58% $1,357,234 $145,194 1.32% 12.34% $1.17 14,559,043 $1,507,940 1.52% $171,449 13.33% RBB BANCORP 皇佳商業金控 27
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