Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Q4 2021 Earnings Presentation
31 slides from Pcb Bancorp's earnings presentation, Jan 27, 2022
Slide 1: Earnings Results Fourth Quarter 2021
Earnings Results Fourth Quarter 2021 January 27, 2022
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 your Partner • Choice • Bank | 4
Slide 5: Equity Information
Equity Information As of January 25, 2021 Ticker PCB Market Cap $341.2 million Price Per Share $22.94 52 Week Range $11.21 - $24.58 Dividend Yield (Dividend Payout Ratio) 2.62% (16.54% 1Q21-4Q21) Number of Shares 14,873,725 Stock Repurchase Announced on April 8, 2021 a repurchase program for the rep
Slide 6: Historical Performance
Historical Performance Held-For-Investment Loans ($bn) Deposits ($bn) 2.000 CAGR +10.5% CAGR +9.8% 1.800 2.000 1.600 1.800 1.400 1.600 1.400 1.200 1.200 1.000 1.000 $1.87 $1.73 0.800 $1.48 $1.59 0.800 $1.58 $1.44 $1.34 $1.45 0.600 $1.25 0.600 $1.19 0.400 0.400 0.200 0.200 0.000 0.000 2017 2018 2019
Slide 7: Historical Performance
Historical Performance Return on Average Assets Return on Average Equity 2.50% 0.180 0.160 2.00% 0.140 0.120 1.50% 0.100 0.080 16.52% 1.00% 1.96% 14.26% 1.53% 0.060 12.00% 10.88% 1.40% 1.22% 0.040 0.50% 0.84% 7.08% 0.020 0.00% 0.000 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Efficiency Ratio
Slide 8: COVID-19 Update
COVID-19 Update As of December 31, 2021 o SBA PPP Loans • 354 loans with aggregated carrying value of $65.3 million • Forgiveness: 2,438 loans for $181.8 million o Loan Modification Related to COVID-19 • No outstanding modifications since September 30, 2021 o Allowance for Loan Losses • Established
Slide 9: Recent Financial Performance
Recent Financial Performance your Partner • Choice • Bank | 9
Slide 10: 4Q21 Highlights
4Q21 Highlights As of or For the Quarter Ended o Recorded a reversal for loan losses of ($ in thousands except per share data) 12/31/21 09/30/21 12/31/20 $1.5 million in 4Q21 primarily due to Income Statement Summary: a decrease in qualitative adjustment Interest Income $ 20,995 $ 21,168 $ 19,508 fa
Slide 11: Loan Overview
Loan Overview HFI Loan Trend HFI Loan Composition ($ in millions) December 31, 2021 Residential Other Commercial and Industrial Property Consumer SBA PPP 11% 12% 1% 4% 2,000 YoY +9.4% Commercial Property - Non-Owner Occupied $1,732 1,800 $1,686 $1,720 $1,708 41% Commercial Property - $1,554 $1,579 $
Slide 12: Loan Interest Rate Mix
Loan Interest Rate Mix New Production(1),(2) by Rate Type Interest Rate Mix(2) ($ in millions) December 31, 2021 250.0 Variable (WA Rate: 3.95%) 6.00% 44% 5.20% 5.00% Fixed (WA Rate: 4.44%) Hybrid (WA Rate: 4.16%) 200.0 4.15% 4.14% 4.02% 4.01% 30% 3.94% 3.90% 3.95% 26% 4.00% $105 $105 3.00% 150.0 $9
Slide 13: Loan Yield Analysis
Loan Yield Analysis Loan Repricing Schedule as of December 31, 2021 HFI Loans, Excl. SBA PPP SBA PPP Loans HFS Loans Total Loans (2) Carrying Carrying Carrying Carrying ($ in thousands) Value Rate (1) Value Rate (1) Value Rate (1) Value Rate (1) Less Than 3 Months $ 668,969 3.94% $ 0 $ 37,026 4.45%
Slide 14: SBA PPP Loans
SBA PPP Loans Summary of SBA PPP loans as of December 31, 2021: Unpaid Principal Balance (“UPB”) Remaining ($ in thousands) # of Loans Carrying Value 2-Year Maturity 5-Year Maturity Deferred Fee Funded in 2020 $50K or Under 10 $ 344 $ 282 $ 67 $ 5 Between $50K and $150K 10 846 761 96 11 Between $150
Slide 15: Loan Modification
Loan Modification From December 31, 2020 to September 30, 2021 (1) Migration of loans with modifications related to the COVID-19 pandemic: Early Re- New Modification ($ in thousands) Dec-20 Termination Expired Modification Modification Type Change Amortization Sep-21 Commercial property Payment defe
Slide 16: Loan Concentration
Loan Concentration Real Estate Loans – Commercial By Property Type as of December 31, 2021 ($ in thousands) Carrying Value % to Total LTV(1) Industrial $ 265,875 21.5% 51.4% Retail (More Than 50%) 216,450 17.4% 49.8% Mixed Use 144,281 11.6% 48.2% Gas Station 80,912 6.5% 55.0% Motel / Hotel 81,059 6.
Slide 17: Loan Concentration
Loan Concentration Commercial and Industrial Loans – By Industry Type as of December 31, 2021 Total, Excluding SBA PPP Loans SBA PPP Loans ($ in thousands) Carrying Value % to Total Carrying Value % to Total General Manufacturing & Wholesale Trade $ 71,469 37.3% $ 16,763 25.7% Food Services 26,085 1
Slide 18: Loan Concentration
Loan Concentration Geographic Concentration as of December 31, 2021 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 Californi
Slide 19: 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% $4.5 $4.8 $4.6 0.25% 0.24% 0.24% 2.0 $4.0 $3.8 0.10% 0.20% 0.19% 1.0 0.05% $1.4 $1.1 $1.0 0.07% 0.05% 0.05% 0.0 0.00% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar
Slide 20: Credit Quality vs. Peers
(1) Credit Quality vs. Peers NPAs / (Total Loans + OREO)(2) Classified Assets to Total Assets(3) December 31, 2021 December 31, 2021 0.90% Peer Data as of September 30, 2021 Peer Data as of September 30, 2021 0.83% 1.60% 0.80% 1.45% 0.70% 1.40% 0.70% 1.23% 0.60% 0.59% 1.20% 0.48% 1.00% 0.45% 0.50% 0
Slide 21: Deposit Overview
Deposit Overview Deposit Trend Deposit Composition ($ in millions) December 31, 2021 YoY +17.1% Retail Other Interest- Retail Time Deposits Bearing 23% 23% 2,000 $1,867 $1,798 $1,833 State and Brokered $1,754 1,800 $1,647 $1,647 $185 Noninterest Deposits $165 $165 $1,595 $165 $0 $0 DDA 10% $0 1,600
Slide 22: Maturity Schedule
Maturity Schedule Time Deposits as of December 31, 2021 State and Brokered Retail Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 160,096 0.48% $ 140,000 0.06% $ 300,096 0.28% 3 to 6 Months 107,987 0.42% 10,000 0.08% 117,987 0.39%
Slide 23: Profitability
Profitability Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ($ in millions) $14.6 $13.8 $0.97 $13.0 15.0 $0.91 13.0 $11.0 $0.85 $10.4 $0.71 11.0 $8.6 $9.2 $0.67 $8.0 $0.56 $0.60 $0.51 9.0 7.0 $9.8 $11.0 $10.7 $0.73 $0.70 $0.64 5.0 $8.6 $0.55 3.0 $5.8 $0.38 1.0 $3.6 $3.4 $3.4 $0.2
Slide 24: Noninterest Income
Noninterest Income Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 76% 10.7% 10.5% 12.0% 12.2% 10.8% 77% 77% 9.0% 10.0% 7.0 80% 65.0 7.5% 10.0% 55.0 70% 10.9% 11.6% 9.1% 5.0% 45.0 8.0% 7.5% 9.5% 6.0 70% 6.0% 5.3% 0.0% 35.0 -5.0% -10.0% $45.0 25.0 $42.4 $36.8 $34.1 -15.0%
Slide 25: Noninterest Expense
Noninterest Expense Noninterest Expense Trend Efficiency Ratio(2) ($ in millions) 64.1% 61.2% 60.4% 60.4% 58.5% 59.4% 59.2% 2.39% 70.00% 16.0 2.38% 2.50% 60.00% 2.21% 2.17% 50.00% 14.0 2.12% 40.00% 1.98% 1.99% 1.95% 56.8% 30.00% 53.0% 51.7% 52.7% 46.8% 46.1% 2.00% 20.00% 43.5% 44.8% 12.0 10.00% 0.00
Slide 26: Net Interest Margin
Net Interest Margin Yield & Cost(1) 5.64% 6.00% 4.73% 4.81% 4.73% 4.75% 4.63% 4.63% 5.00% 4.59% 3.85% 3.83% 3.93% 3.87% 4.00% 3.64% 3.70% 3.43% 3.22% 3.00% 2.00% 1.77% 1.17% 0.92% 1.00% 1.34% 0.73% 0.52% 0.40% 0.37% 0.35% 0.85% 0.63% 0.49% 0.19% 0.00% 0.34% 0.24% 0.21% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 27: Capital Ratios & BV Per Share
Capital Ratios & BV Per Share Bank Regulatory Capital Ratios 17.50 Book Value Per Share 18.00% December 31, 2021 17.00 16.50 16.00 16.00% 15.50 15.00 $17.24 14.00% $16.68 14.50 $16.09 $15.53 $15.19 $14.58 $14.78 $14.91 14.00 12.00% 13.50 13.00 10.00% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
Slide 28: Non-GAAP Measures
Non-GAAP Measures Adjusted Allowance to HFI Loans Ratio Adjusted allowance to HFI loans ratio is a non-GAAP measure that we use to enhance comparability to prior periods and provide supplemental information regarding the Company’s credit trends. We calculate adjusted allowance to HFI loan ratio as a
Slide 29: Non-GAAP Measures
Non-GAAP Measures The following table reconciles adjusted allowance to HFI loans ratio to its most comparable GAAP measure: ($ in thousands) 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 HFI Loans $ 1,451,038 $ 1,553,589 $ 1,578,804 $ 1,583,578 $ 1,685,916 $ 1,719,656 $ 1,7
Slide 30: Non-GAAP Measures
Non-GAAP Measures The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ in thousands) 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 Total Deposits $ 1,477,442 $ 1,646,930 $ 1,647,107 $ 1,594,851 $ 1,753,772 $ 1,797,648 $ 1,83
Slide 31: Non-GAAP Measures
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) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Net Income (a)$ 3,572 $ 3,367 $ 3,449 $ 5,787 $ 8,560 $ 9,844 $ 11,023 $ 10,676 Add: Provisi