Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Keefe, Bruyette & Woods West Coast Field Trip 2020
32 slides from Pcb Bancorp's conference presentation, Nov 17, 2020
Slide 1: KBW West Coast Field Trip, November 19, 2020
Keefe, Bruyette & Wood, Inc. West Coast Field Trip November 19, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation (and oral statements made regarding the subject of this presentation) contains certain “forward- looking statements” that are based on various facts and derived utilizing numerous important assumptions and are subject to known and unknown risks, uncertainties
Slide 3: Introduction
Introduction your Partner • Choice • Bank | 3
Slide 4: Franchise Footprint
Franchise Footprint • Servicing 6 of top 10 Korean-American MSAs in the U.S. through our branches and LPOs (1) (1) Based on total population projected for 2018 by S&P Global Market Intelligence. your Partner • Choice • Bank | 4
Slide 5: Equity Information
Equity Information As of November 13, 2020 Ticker PCB Market Cap $173.3 million Price Per Share $11.27 52 Week Range $7.97 - $17.55 Dividend Yield (Dividend Payout Ratio) 3.55% (40.4% 4Q19-3Q20) Number of Shares 15,381,038 Historical Quarterly Cash Dividend Per Share 0.120 0.100 25% 0.080 33% 20% 0.
Slide 6: Historical Performance
Historical Performance Held-For-Investment Loans ($bn) Deposits ($bn) 1.800 CAGR +14.5% 1.800 CAGR +12.0% 1.600 1.600 1.400 1.400 1.200 1.200 1.000 1.000 0.800 0.800 $1.65 $1.58 $1.48 $1.34 $1.45 $1.44 0.600 0.600 $1.25 $1.19 $1.09 $1.03 $0.94 0.400 $0.84 0.400 0.200 0.200 0.000 0.000 2015 2016 2017
Slide 7: Historical Performance
Historical Performance Return on Average Assets Return on Average Equity 0.018 0.160 0.016 0.140 0.014 0.120 0.012 0.100 0.010 0.080 0.008 1.53% 14.26% 1.40% 0.060 13.10% 12.47% 12.00% 0.006 1.25% 1.25% 1.22% 10.88% 0.040 0.004 0.73% 6.10% 0.020 0.002 0.000 0.000 2015 2016 2017 2018 2019 09/20 YTD 2
Slide 8: COVID-19 Update
COVID-19 Update As of September 30, 2020 (unless otherwise indicated) o SBA PPP Loans • 1,614 loans with aggregated contractual loan balance of $139.4 million • Origination fee income of $5.7 million and cost of $1.1 million o Loan Modification Related to COVID-19 • 154 customers for aggregated loan
Slide 9: Recent Financial Performance
Recent Financial Performance your Partner • Choice • Bank | 9
Slide 10: 3Q20 Highlights
3Q20 Highlights As of or For the Quarter Ended o Recorded a provision for loan losses ($ in thousands except per share data) 09/30/20 06/30/20 09/30/19 of $4.3 million in 3Q20 primarily due Income Statement Summary: to an increase in the economic Interest Income $ 19,620 $ 18,973 $ 23,687 uncertaint
Slide 11: Loan Overview
Loan Overview HFI Loan Trend HFI Loan Composition ($ in millions) September 30, 2020 Other Consumer Commercial and Industrial SBA PPP Residential Property 1% YoY +13.6% 13% 13% 1,800 9% $1,554 $1,579 1,600 Commercial Property - Commercial Property - $1,451 $1,451 Owner Occupied $1,396 $1,390 $134 $1
Slide 12: Loan Interest Rate Mix
Loan Interest Rate Mix New Production(1),(2) by Rate Type Interest Rate Mix(2) ($ in millions) September 30, 2020 6.31% 200.0 5.91% 6.02% 5.92% Variable (WA Rate: 4.10%) 6.00% 52% 180.0 5.20% 5.20% Fixed (WA Rate:4.96%) 5.00% 35% 160.0 4.15% 4.14% Hybrid (WA Rate: 4.98%) 4.00% 13% 140.0 $87 3.00% 12
Slide 13: SBA PPP Loans
SBA PPP Loans Summary of SBA PPP loans as of September 30, 2020: Unpaid Principal Balance (“UPB”) Remaining Balance of ($ in thousands) # of Loans Carrying Value 2-Year Maturity 5-Year Maturity Origination Fee Origination Cost $50K or Under 1,043 $ 21,551 $ 20,080 $ 1,671 $ 759 $ 559 Between $50K an
Slide 14: Loan Modification
Loan Modification As of September 30, 2020 Summary of loans with modifications related to the COVID-19 pandemic: Currently Modified Previously Carrying Value Weighted-Average Modified Accrued Accrued Payment Interest Interest Loan-to- Interest Carrying Interest ($ in thousands) Deferment Only Total
Slide 15: Loan Modification: June 30 to September 30, 2020
Loan Modification From June 30, 2020 to September 30, 2020 Migration of loans with modifications related to the COVID-19 pandemic: Early Re- New Modification ($ in thousands) Jun-20 Termination Expired Modification Modification Type Change Amortization Sep-20 Commercial property Principal deferment
Slide 16: Loan Modification as of November 13, 2020
Loan Modification As of November 13, 2020 Summary of loans with modifications related to the COVID-19 pandemic: Currently Modified Previously Carrying Value Weighted- Modified Average Accrued Accrued Payment Interest Interest Interest Carrying Interest ($ in thousands) Deferment Only Total Rate Rece
Slide 17: Loan Modification: September 30 to November 13, 2020
Loan Modification From September 30, 2020 to November 13, 2020 Migration of loans with modifications related to the COVID-19 pandemic: Early Re- New Modification ($ in thousands) 9/30/20 Termination Expired Modification Modification Type Change Amortization 11/13/20 Commercial property Principal def
Slide 18: Credit Quality
Credit Quality Non-Performing Assets (“NPAs”) NPAs to Total Assets 6.0 ($ in millions) 0.30% 5.0 0.25% 4.0 0.20% 3.0 0.15% $4.8 0.25% 0.24% 2.0 $4.5 0.10% $4.0 0.20% $2.8 0.16% 1.0 $1.7 $1.8 $1.8 0.05% 0.10% 0.11% 0.11% $1.1 0.06% 0.0 0.00% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec
Slide 19: Loan Concentration: Commercial Real Estate by Property Type
Loan Concentration Real Estate Loans – Commercial By Property Type Total Loans With Modification Related to COVID-19 % to Carrying Carrying Property ($ in thousands) Value % to Total LTV(1) Value % to Total Type Total LTV(1) Retail (More Than 50%) $ 185,050 18.5% 51.0% $ 22,656 16.4% 12.2% 46.5% Ind
Slide 20: Loan Concentration: C&I Loans by Industry
Loan Concentration Commercial and Industrial Loans – By Industry Type Total, Excluding Loans with Modification SBA PPP Loans Related to COVID-19 SBA PPP Loans % to Carrying Carrying Industry Carrying ($ in thousands) Value % to Total Value % to Total Type Total Value % to Total General Manufacturing
Slide 21: Loan Concentration: Geographic
Loan Concentration Geographic Concentration Commercial & Industrial, Real Estate - Commercial Real Estate – Residential Excluding SBA PPP SBA PPP Carrying Carrying Carrying Carrying ($ in thousands) Value % to Total Value % to Total Value % to Total Value % to Total California $ 833,879 83.4% $ 207,
Slide 22: Credit Quality vs. Peers
Credit Quality vs. Peers(1) NPAs / (Total Loans + OREO)(2) Classified Assets to Total Assets(3) September 30, 2020 September 30, 2020 1.40% Peer Data as of June 30, 2020 Peer Data as of June 30, 2020 2.00% 1.21% 1.87% 1.20% 1.80% 1.04% 1.60% 1.51% 1.00% 1.40% 0.80% 0.74% 1.20% 0.63% 1.00% 0.60% 0.48
Slide 23: Deposit Overview
Deposit Overview Deposit Trend Deposit Composition ($ in millions) September 30, 2020 Internet Time Deposits YoY +15.0% Retail Time Deposits 1,800 2% Retail Other Interest- 29% $1,647 $1,647 Bearing State and Brokered 1,600 23% Deposits $1,479 $1,477 Noninterest $1,444 $1,448 $1,447 $1,432 $172 $182
Slide 24: Maturity Schedule
Maturity Schedule Time Deposits State and Brokered Retail Time Deposits Internet Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Month $ 107,427 1.69% $ 6,950 0.71% $ 137,000 0.67% $ 251,377 1.11% 3 to 6 Month 170,194 1.58% 7
Slide 25: Profitability
Profitability (1) 15.0 Net Income & PTPP Income Diluted EPS & Adjusted Diluted EPS(1) ($ in millions) 13.0 $0.61 $0.63 11.0 $10.0 $10.0 $0.60 $0.59 $0.60 $9.3 $9.8 $9.6 $0.57 $0.56 $8.6 $9.2 $0.51 9.0 $8.0 7.0 5.0 3.0 $6.7 $6.6 $6.6 $6.8 $0.41 $0.40 $0.40 $0.42 $4.2 $3.6 $3.4 $3.4 $0.26 $0.23 $0.22
Slide 26: Noninterest Income
Noninterest Income Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 10.7% 5.0 70% 9.1% 9.3% 65.00 7.4% 7.6% 9.0% 7.5% 6.2% 10.0% 62% 62% 55.00 5.0% 4.5 45.00 6.8% 8.0% 6.5% 0.0% 60% 5.2% 5.3% 6.0% 5.3% 55% 35.00 4.0% -5.0% 4.0 51% 25.00 -10.0% 48% 15.00 $29.2 50% $26.2 $2
Slide 27: Noninterest Expense
Noninterest Expense Noninterest Expense Trend Efficiency Ratio(2) ($ in millions) 64.1% 70.00% 61.8% 62.4% 62.5% 61.9% 62.1% 61.1% 16.0 60.00% 3.00% 50.00% 40.00% 14.0 2.52% 2.48% 2.43% 2.43% 2.40% 30.00% 2.39% 2.50% 50.4% 52.6% 53.0% 53.0% 50.7% 56.8% 53.0% 51.7% 20.00% 12.0 10.00% 1.98% 1.99% 0.00
Slide 28: Net Interest Margin
Net Interest Margin Yield & Cost(1) 7.00% 6.39% 6.34% 6.33% 6.22% 5.85% 6.00% 5.64% 4.81% 5.00% 4.73% 4.33% 4.22% 4.17% 4.11% 3.96% 3.85% 4.00% 3.43% 3.22% 3.00% 2.06% 2.17% 2.13% 1.89% 1.99% 2.00% 1.77% 1.17% 1.69% 1.62% 1.64% 1.53% 0.92% 1.00% 1.47% 1.34% 0.85% 0.63% 0.00% 4Q18 1Q19 2Q19 3Q19 4Q19
Slide 29: Capital Ratios & BV Per Share
Capital Ratios & BV Per Share Bank Regulatory Capital Ratios 15.50 BV Per Share 18.00% September 30, 2020 15.00 14.50 16.00% 14.00 13.50 14.00% $14.91 $14.58 $14.78 $14.30 $14.44 13.00 $13.98 $13.57 12.00% 12.50 $13.16 12.00 10.00% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 8.00% 16.60%
Slide 30: Non-GAAP Measures
Non-GAAP Measures Core Deposits Core Deposits are a non-GAAP measure that we use to measure the portion of our total deposits that are thought to be more stable, lower cost and reprice less frequently on average in a rising rate environment. We calculate core deposits as total deposits less time dep
Slide 31: Non-GAAP Measures: Core Deposits
Non-GAAP Measures The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ in thousands) 12/31/18 03/31/19 06/30/19 09/30/19 12/31/19 03/31/20 06/30/20 09/30/20 Total Deposits $ 1,443,753 $ 1,447,758 $ 1,446,526 $ 1,432,262 $ 1,479,307 $ 1,477,442 $ 1,64
Slide 32: Non-GAAP Measures: PTPP Income
Non-GAAP Measures The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: ($ in thousands) 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Net Income (a)$ 6,732 $ 6,564 $ 6,601 $ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 Add: Provision
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