Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Pacific City Financial — IPO Roadshow (August 2018)
27 slides from Pcb Bancorp's IPO roadshow presentation, Aug 2, 2018
Slide 1: Initial Public Offering August 2018
Initial Public Offering August 2018 Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-226208 Dated August 2, 2018
Slide 2: Disclaimer / Safe Harbor
Disclaimer / Safe Harbor Pacific City Financial Corporation (“Pacific City,” “PCB,” the “Company,” “we,” “us” or “our”) has filed a registration statement (including a prospectus, which is preliminary and subject to completion) with the U.S. Securities and Exchange Commission (the “SEC”) for the off
Slide 3: Today's Presenters
Today’s Presenters Timothy Chang Executive Vice President, Chief Financial Officer Henry Kim President, Chief Executive Officer, and Director Brian Bang Senior Vice President, Chief Credit Officer
Slide 4: Offering Summary
Based on the midpoint of the filing range, before deducting underwriting discounts and estimated offering expenses. Based on 15,821,214 common shares outstanding as of July 11, 2018 which includes the proposed issuance of 2,385,000 primary shares, excluding the overallotment option at the midpoint o
Slide 5: Company Overview
Company Overview Founded in 2003 Headquartered in Los Angeles, CA Delivers personalized service to ethnic communities, particularly to Korean-American communities Located in major metropolitan cities with high Asian-American and Korean-American population growth: Eleven branches in Southern CA Two o
Slide 6: Investment Highlights
Investment Highlights 1 2 5 4 3 6 Cohesive and Experienced Management Team History of Organic Growth and Proven Financial Performance Proven Branch and LPO Network Covering Top Korean-American Markets Conservative Credit Culture and Risk Profile with Diversified Loan Portfolio Customer Service Focus
Slide 7: Cohesive Management Team and Board
** Represents less than 1% of shares outstanding. Cohesive Management Team and Board
Slide 8: Corporate Timeline
Corporate Timeline December 2016 Olympic Branch Relocation 2005 2010 2015 – Present 2000 September 2003 Wilshire Branch Opening June 2006 Rowland Heights Branch Opening November 2006 Downtown LA Branch Opening September 2003 Pacific City Bank was founded with a $17.9 million private placement March
Slide 9: Franchise Footprint
Source: S&P Global Market Intelligence. Note: Table sorted by 2018 Korean – American Population. Franchise Footprint Bellevue & Lynwood LPOs New York LPO Bayside, New York Fort Lee, New Jersey Virginia LPO Georgia LPO Texas LPO Orange County LPO Los Angeles LPO Colorado LPO 11 Southern California Br
Slide 10: Competitive Landscape
Competitive Landscape We believe that the Korean-American banking landscape is comprised of eighteen banks across the U.S. Of the U.S- headquartered Korean- American banks, we are the third largest by total assets Attract and retain customers from competitors by delivering diverse product offerings
Slide 11: Deposit Market Share
Deposit Market Share Expanded our network of banking offices from nine to thirteen locations in the last three years Third largest Korean-American bank by deposit market share in the Los Angeles-Long Beach-Anaheim MSA Growing presence in the New York-Newark-Jersey City MSA Service seven of the top t
Slide 12: Loan Portfolio Overview
Loan Portfolio Overview Portfolio consists of three major categories of loans which are divided into: Real Estate Commercial and Industrial Consumer Our loan beta(1) from 2017Q1 to 2018Q1 was approximately 63% 2013 – 2018Q1 gross loan CAGR: 18.1% Ten largest loan relationships accounted for $155.7 m
Slide 13: Commercial Real Estate (CRE) Concentration
Note: Data as of or for the three months ended March 31, 2018 unless otherwise indicated. Refer to Appendix for additional details. As adjusted for the proposed issuance of 2,385,000 primary shares (excluding the overallotment option) at the midpoint of the price range, less the underwriting discoun
Slide 14: SBA Lending Supplements Profitability
SBA Lending Supplements Profitability Small Business Administration (SBA) Preferred Lender Primarily consists of SBA 7(a) and 504 loans The SBA guarantees are primarily 75% to 85% of the principal amount of each qualifying SBA loan originated under the SBA’s 7(a) loan program Originated $38.2 millio
Slide 15: Conservative Credit Culture
Conservative Credit Culture We maintain a conservative credit culture with strict underwriting standards Our credit departments have robust internal controls and lending policies to identify both inherent and emerging credit risks in a timely manner Loans are monitored on an ongoing basis in accorda
Slide 16: Deposit Portfolio Overview
Deposit Portfolio Overview Relationship-based approach to banking enhances our ability to source core deposits to fund organic growth Adjusted core deposits(1) constituted 78.7% of total deposits Noninterest-bearing deposits accounted for 23.2% of total deposits Ten largest depositor relationships a
Slide 17: Interest Rate Sensitivity
Interest Rate Sensitivity Our profitability is highly dependent on the difference between interest income and interest expense Our asset sensitive balance sheet will benefit from anticipated rate increases due to: High percentage of adjustable rate loans Low-cost core deposit funding We generated an
Slide 18: Consistent and Growing Profitability
Note: Annual financial data as of December 31 of each respective year. Quarterly financial data as of or for the three months ended March 31 of each respective quarter. Return on average assets, return on average tangible common equity and noninterest expense to average assets are annualized for the
Slide 19: Consolidated Capital Position
Tier 1 Leverage Ratio Tangible Common Equity to Tangible Assets(1) Note: Annual financial data as of December 31 of each respective year. Quarterly financial data as of March 31 of each respective quarter. Refer to “Non-GAAP Reconciliation” for additional details. As adjusted for the proposed issuan
Slide 20: Investment Highlights
Investment Highlights 1 2 5 4 3 6 Cohesive and Experienced Management Team History of Organic Growth and Proven Financial Performance Proven Branch and LPO Network Covering Top Korean-American Markets Conservative Credit Culture and Risk Profile with Diversified Loan Portfolio Customer Service Focus
Slide 21: Appendix
Appendix |S | PACIFIC CITY FINANCIAL CORPORATION
Slide 22: Recent Developments (unaudited)
Recent Developments (unaudited)
Slide 23: Real Estate Loan Portfolio Detail
Note: Financial data as of or for the three months ended March 31, 2018 unless otherwise indicated. Real Estate Loan Portfolio Detail Commercial property loans (excluding SBA property) Include owner-occupied and non-owner occupied commercial property and multifamily residential property Majority are
Slide 24: Commercial and Industrial Portfolio Detail
Note: Financial data as of or for the three months ended March 31, 2018 unless otherwise indicated. Commercial and Industrial Portfolio Detail Commercial and Industrial loans (excluding SBA commercial term) Typically made to small- and medium-sized manufacturing, wholesale, retail and service busine
Slide 25: Selected Financials
Nonperforming loans include nonaccrual loans and loans past due 90 days or more and still accruing. Nonperforming assets include nonperforming loans and other real estate owned. Refer to “Non-GAAP Reconciliation” for additional details. Ratios for the three months ended March 31, 2018 and 2017 are a
Slide 26: Non-GAAP Reconciliation
Note: The capital letters following certain line items in the table above are used to identify the components of the calculated performance metrics to aid the reader. At December 31, 2013, the Company had $8.4 million of preferred stock and warrants held by the U.S. Treasury through the Troubled Ass
Slide 27: Non-GAAP Reconciliation (continued)
Note: The capital letters following certain line items in the table above are used to identify the components of the calculated performance metrics to aid the reader. Non-GAAP Reconciliation (continued) Return on Average Tangible Common Equity. Management measures return on average tangible common e