Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Q3 2022 Earnings Presentation
28 slides from Pcb Bancorp's earnings presentation, Oct 27, 2022
Slide 1: Earnings Results Third Quarter 2022
fF PCB BANCORP Earnings Results Third Quarter 2022 October 27, 2022
Slide 2: Forward-looking statements
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 and other factors that
Slide 3: Introduction
PCB BANCORP Introduction
Slide 4: Franchise Footprint
| eco corp Franchise Footprint “ Bellevue, WA Englewood Cliffs, NJ ‘ Aurora, CO Palisades Park, NJ \ ( Bayside, NY Annandale, VA Los Angeles & Orange Counties, California le) V4 Carrollton, TX Carrollton, TX Atlanta, GA os Dallas, TX ea @ Fult-service branch ae O New full-service branch in construct
Slide 5: Common Stock and Dividend Per Share
As of October 25, 2022 Common Stock Ticker PCB Market Cap $291.6 million Price Per Share $19.70 52 Week Range $18.07 - $25.43 Dividend Yield (Dividend Payout Ratio) 3.05% (22.89% 4Q21-3Q22) Number of Shares 14,800,133 Shares Preferred Stock Senior Non-Cumulative Perpetual, Series C 69,141 Shares ($6
Slide 6: Loans, Deposits, Net Income and Diluted EPS
Held-For-Investment Loans ($bn) Deposits ($bn) 2.5 00 CAGR +9.8% CAGR +10.5% 2.5 00 2.0 00 2.0 00 1.5 00 1.5 00 1.0 00 $1.87 $1.98 1.0 00 $1.96 $1.59 $1.58 $1.73 $1.44 $1.48 $1.34 $1.45 $1.25 0.5 00 $1.19 0.5 00 0.0 00 0.0 00 2017 2018 2019 2020 2021 Sep-22 2017 2018 2019 2020 2021 Sep-22 Net Income
Slide 7: ROAE, ROAA, Efficiency Ratio and Net Interest Margin
Return on Average Assets Return on Average Equity/TCE (1) 2.5 0% 0.1 8 0.1 6 13.31%(1) 2.0 0% 0.1 4 0.1 2 1.5 0% 0.1 0.0 8 16.52% 1.0 0% 1.96% 14.26% 1.53% 1.58% 0.0 6 12.00% 10.88% 11.84% 1.40% 1.22% 7.08% 0.0 4 0.5 0% 0.84% 0.0 2 0.0 0% 0 (2) (2) 2017 2018 2019 2020 2021 09/22 YTD 2017 2018 2019 2
Slide 8: Recent Financial Performance
PCB BANCORP Recent Financial Performance
Slide 9: Income Statement Summary
As of or For the Quarter Ended o Recorded a provision for loan losses ($ in thousands except per share data) 09/30/22 06/30/22 09/30/21 of $3.8 million in 3Q22 primarily due Income Statement Summary: to increases in gross loan balance, Interest Income $ 26,835 $ 22,446 $ 21,168 and qualitative adjus
Slide 10: HFI Loan Trend and Composition
2,50 0 HFI Loan Trend HFI Loan Composition SBA PPP ($ in millions) September 30, 2022 0% Other Commercial and Industrial Consumer Residential YoY +14.7% 11% 1% Property 15% $1,959 2,00 0 $1 $1,833 $23 Commercial Property - $1,743 Commercial Property - $1,732 $2 Non-Owner Occupied $1,686 $1,720 $1,70
Slide 11: Interest Rate Mix and New Production
Interest Rate Mix(2) (1),(2) New Production by Rate Type ($ in millions) September 30, 2022 300 .0 5.77% 6.00 % Variable (WA Rate: 6.75%) 38% 250 .0 4.69% 5.00 % Hybrid (WA Rate: 4.23%) 4.02% 4.01% 4.18% 38% 3.94% 3.90% 3.95% Fixed (WA Rate: 4.44%) $117 4.00 % 24% 200 .0 $128 3.00 % $105 $105 2.00 %
Slide 12: Loan Repricing Schedule and Interest Income Breakout
Loan Repricing Schedule as of September 30, 2022 HFI Loans HFS Loans Total Loans (2) Carrying Carrying Carrying ($ in thousands) Value Rate (1) Value Rate (1) Value Rate (1) Less Than 3 Months $ 690,860 6.96% $ 18,982 7.65% $ 709,842 6.96% 3 to 12 Months 75,581 4.66% 0 75,581 4.66% 1 to 3 Years 282,
Slide 13: Real Estate Loans by Property Type
Real Estate Loans – Commercial By Property Type as of September 30, 2022 ($ in thousands) Carrying Value % to Total LTV(1) Retail (More than 50%) $ 300,929 21.1% 49.8% Industrial 271,675 19.1% 50.9% Mixed Use 148,624 10.4% 48.3% Apartments 101,649 7.1% 51.9% Gas Station 98,008 6.9% 55.1% Office 96,1
Slide 14: Commercial and Industrial Loans by Industry Type
Commercial and Industrial Loans – By Industry Type as of September 30, 2022 ($ in thousands) Carrying Value % to Total General Manufacturing & Wholesale Trade $ 58,584 27.1% Food Services 37,080 17.2% Real Estate Related 33,499 15.5% Retail Trade 29,695 13.7% Finance & Insurance 17,216 8.0% Professi
Slide 15: Geographic Concentration
Geographic Concentration as of September 30, 2022 Real Estate - Commercial Real Estate – Residential Commercial & Industrial ($ in thousands) Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total California $ 1,161,281 81.7% $ 295,880 99.5% $ 176,369 81.6% Texas 62,802 4.4% 0
Slide 16: Non-Performing Assets and Allowance
Non-Performing Assets (“NPAs”) NPAs to Total Assets 8.0 ($ in millions) 0.3 5% 7.0 0.3 0% 6.0 0.2 5% 5.0 0.2 0% 4.0 $7.4 0.1 5% 0.32% 0.24% 3.0 $4.6 0.1 0% 0.19% 2.0 $3.8 1.0 $1.4 $1.1 $1.0 $1.4 $2.0 0.0 5% 0.07% 0.05% 0.05% 0.06% 0.09% 0.0 0.0 0% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep
Slide 17: NPAs and Classified Assets Peer Comparison
(1) (2) (3) NPAs / (Total Loans + OREO) Classified Assets to Total Assets September 30, 2022 September 30, 2022 Peer Data as of June 30, 2022 Peer Data as of June 30, 2022 0.66% 0.66% 0.7 0% 1.6 0% 0.6 0% 1.4 0% 1.36% 0.5 0% 1.2 0% 0.41% 0.4 0% 0.37% 1.0 0% 0.31% 0.8 0% 0.77% 0.3 0% 0.63% 0.21% 0.21
Slide 18: Deposit Trend and Composition
Deposit Trend Deposit Composition ($ in millions) September 30, 2022 YoY +7.9% Retail Other Interest- Retail Time Deposits Bearing 24% $1,998 $1,978 $1,911 28% $1,833 $1,867 2,00 0 $1,798 $95 $139 State and Brokered $1,754 $135 Noninterest Deposits $165 $185 DDA $1,595 $165 $165 $422 7% $476 41% $18
Slide 19: Time Deposits
Time Deposits as of September 30, 2022 State and Brokered Retail Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 136,203 1.05% $ 95,000 1.14% $ 231,203 1.23% 3 to 6 Months 100,535 1.26% 10,004 3.60% 110,539 1.47% 6 to 9 Months 68,8
Slide 20: Net Income, PTPP, EPS, ROAA and ROAE
Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ($ in millions) $0.97 $14.6 $0.91 $0.87 $0.89 $13.0 $13.8 $13.2 $13.5 $0.85 $0.84 $12.8 15. 0 13. 0 $11.0 $0.67 $0.71 11. 0 $10.4 9.0 7.0 $11.0 $10.7 $0.64 $0.73 $0.70 $0.67 5.0 $8.6 $9.8 $10.2 $9.1 $0.55 $0.60 $7.0 $0.38 $0.46 3.0 $5
Slide 21: Noninterest Income and SBA Loan Trends
Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 10.5% 12.0% 12.2% 10.8% 10.0% 10.6% 7.0 77% 77% 76% 80% 65. 0 6.8% 7.5% 10. 0% 55. 0 70% 71% 10.9% 11.6% 9.5% 9.5% 5.0 % 45. 0 7.5% 9.1% 70% 5.3% 5.2% 0.0 % 35. 0 -5.0% 6.0 -10.0% $45.0 25. 0 $42.4 $36.8 $39.7 $38.4 $34.1 -
Slide 22: Noninterest Expense and Efficiency Ratio
(2) Noninterest Expense Trend Efficiency Ratio ($ in millions) 64.1% 70.0 0% 60.4% 59.4% 59.2% 59.8% 62.1% 60.5% 16. 0 2.38% 2.36% 2.5 0% 60.0 0% 2.21% 2.23% 2.22% 2.17% 50.0 0% 14. 0 2.12% 40.0 0% 1.95% 30.0 0% 52.7% 46.8% 46.1% 44.8% 47.8% 49.0% 50.4% 43.5% 2.0 0% 20.0 0% 12. 0 10.0 0% $5.2 0.00 %
Slide 23: Yield & Cost
(1) Yield & Cost 6.00 % 5.17% 4.73% 4.63% 4.63% 4.75% 4.62% 4.72% 5.00 % 4.59% 4.25% 3.93% 4.01% 3.83% 3.87% 3.87% 4.00 % 3.64% 3.70% 3.00 % 2.00 % 0.98% 1.00 % 0.73% 0.52% 0.40% 0.43% 0.37% 0.35% 0.35% 0.49% 0.57% 0.00 % 0.34% 0.24% 0.21% 0.23% 0.19% 0.19% -1.00% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Slide 24: Regulatory Capital Ratios and Book Value Per Share
Bank Regulatory Capital Ratios Book Value/TCE Per Share September 30, 2022 $22.36 $22.40 20.0 0% $24 .00 $22 .00 18.0 0% $20 .00 $18 .00 $17.47 $17.73 $17.75 16.0 0% $17.47 $16 .00 $16.09 $16.68 $17.24 $15.19 $15.53 $14 .00 14.0 0% $12 .00 12.0 0% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep
Slide 25: Adjusted Allowance to HFI Loans Ratio
Adjusted Allowance to HFI Loans Ratio Adjusted allowance to HFI loans ratio is a non-GAAP measure that we use to enhance comparability to prior periods and provide supplemental information regarding the Company’s credit trends. We calculate adjusted allowance to HFI loan ratio as allowance divided b
Slide 26: Adjusted Allowance and Core Deposits Reconciliation
The following table reconciles adjusted allowance to HFI loans ratio and core deposits to their most comparable GAAP measures: ($ in thousands) 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 HFI Loans (a) $ 1,583,578 $ 1,685,916 $ 1,719,656 $ 1,707,878 $ 1,732,205 $ 1,742,95
Slide 27: PTPP Income and Adjusted Ratios Reconciliation
The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: ($ in thousands) 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Net Income (a) $ 5,787 $ 8,560 $ 9,844 $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 Add: Provision (Reversal) fo
Slide 28: ROATCE and TCE Reconciliation
The following table reconciles ROATCE to its most comparable GAAP measure: ($ in thousands) 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 09/22 YTD Average Total Shareholders' Equity (a) $ 232,156 $ 236,790 $ 239,448 $ 243,185 $ 251,477 $ 259,367 $ 292,135 $ 338,248 $ 296,871 Less: Average Preferred Stock