Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Q2 2021 Earnings Presentation
30 slides from Pcb Bancorp's earnings presentation, Jul 22, 2021
Slide 1: Earnings Results Second Quarter 2021
Earnings Results Second Quarter 2021 July 22, 2021
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 7 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 July 20, 2021 Ticker PCB Market Cap $238.6 million Price Per Share $16.10 52 Week Range $8.29 - $16.64 Dividend Yield (Dividend Payout Ratio) 2.98% (22.23% 3Q20-2Q21) Number of Shares 14,820,380 Stock Repurchase Announced on April 8, 2021 to repurchase up to 5% of outstandin
Slide 6: Historical Performance
Historical Performance Held-For-Investment Loans ($bn) Deposits ($bn) 2.0 00 CAGR +11.3% 2.0 00 CAGR +9.9% 1.8 00 1.8 00 1.6 00 1.6 00 1.4 00 1.4 00 1.2 00 1.2 00 1.0 00 1.0 00 $1.72 $1.80 0.8 00 $1.58 0.8 00 $1.48 $1.59 $1.34 $1.45 $1.44 0.6 00 $1.19 0.6 00 $1.25 $1.03 $1.09 0.4 00 0.4 00 0.2 00 0.
Slide 7: Historical Performance
Historical Performance Return on Average Assets Return on Average Equity 2.0 0% 0.1 80 1.8 0% 0.1 60 1.6 0% 0.1 40 1.4 0% 0.1 20 1.2 0% 0.1 00 1.0 0% 1.85% 0.0 80 15.59% 0.8 0% 1.53% 14.26% 1.40% 12.47% 12.00% 1.25% 0.0 60 0.6 0% 1.22% 10.88% 0.4 0% 0.84% 0.0 40 7.08% 0.0 20 0.2 0% 0.0 0% 0.0 00 (1)
Slide 8: COVID-19 Update
COVID-19 Update As of June 30, 2021 o SBA PPP Loans • 1,746 loans with aggregated carrying value of $181.0 million • Second round PPP: 1,153 loans with aggregated contractual loan balance of $110.9 million (carrying value: $107.0 million) • Forgiveness: 1,061 loans for $65.6 million o Loan Modificat
Slide 9: Recent Financial Performance
Recent Financial Performance your Partner • Choice • Bank | 9
Slide 10: 2Q21 Highlights
2Q21 Highlights As of or For the Quarter Ended o Recorded a reversal for loan losses of ($ in thousands except per share data) 06/30/21 03/31/21 06/30/20 $934 thousand in 2Q21 primarily due Income Statement Summary: to improvement in historical loss Interest Income $ 20,051 $ 19,258 $ 18,973 factors
Slide 11: Loan Overview
Loan Overview HFI Loan Trend HFI Loan Composition ($ in millions) June 30, 2021 Other Commercial and Industrial Consumer SBA PPP Residential Property 11% 1% 11% 11% 2,00 0 YoY +10.7% 1,80 0 $1,686 $1,720 Commercial Property - Non-Owner Occupied Commercial Property - $1,554 $1,579 $1,584 $181 38% Own
Slide 12: Loan Interest Rate Mix
Loan Interest Rate Mix Interest Rate Mix(2) (1),(2) New Production by Rate Type ($ in millions) June 30, 2021 250 .0 5.92% Variable (WA Rate: 3.99%) 6.00 % 49% 5.20% 5.20% 5.00 % Hybrid (WA Rate: 4.52%) 200 .0 4.15% 4.14% 4.02% Fixed (WA Rate: 4.71%) 25% 3.94% 3.90% 4.00 % 26% $105 3.00 % 150 .0 2.0
Slide 13: SBA PPP Loans
SBA PPP Loans Summary of SBA PPP loans as of June 30, 2021: Unpaid Principal Balance (“UPB”) Remaining ($ in thousands) # of Loans Carrying Value 2-Year Maturity 5-Year Maturity Deferred Fee Funded in 2020 $50K or Under 349 $ 6,140 $ 5,510 $ 630 $ (1) Between $50K and $150K 91 7,803 7,665 214 76 Bet
Slide 14: Loan Modification
Loan Modification As of June 30, 2021 Summary of loans with modifications related to the COVID-19 pandemic: Currently Modified Previously Carrying Value Weighted-Average Modified Interest Accrued Accrued Payment Only Interest Loan-to- Interest Carrying Interest ($ in thousands) Deferment (1) Payment
Slide 15: Loan Modification
Loan Modification From December 31, 2020 to June 30, 2021 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 Jun-21 Commercial property Payment deferment (1)
Slide 16: Credit Quality
Credit Quality Non-Performing Assets (“NPAs”) NPAs to Total Assets 6.0 ($ in millions) 0.3 0% 5.0 0.2 5% 4.0 0.2 0% 3.0 0.1 5% $4.5 $4.8 $4.6 0.25% 0.24% 0.24% 2.0 $4.0 $3.8 0.1 0% 0.20% 0.19% $2.8 0.16% 1.0 $1.8 0.0 5% 0.11% $1.4 0.07% 0.0 0.0 0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun
Slide 17: Loan Concentration
Loan Concentration Real Estate Loans – Commercial By Property Type as of June 30, 2021 Total Loans With Modification Related to COVID-19 % to Carrying Carrying Property ($ in thousands) Value % to Total LTV(1) Value % to Total Type Total LTV(1) Industrial $ 226,702 19.9% 50.7% $ 0 Retail (More Than
Slide 18: Loan Concentration
Loan Concentration Commercial and Industrial Loans – By Industry Type as of June 30, 2021 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 G
Slide 19: Loan Concentration
Loan Concentration Geographic Concentration as of June 30, 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 California $
Slide 20: Credit Quality vs. Peers
(1) Credit Quality vs. Peers (2) (3) NPAs / (Total Loans + OREO) Classified Assets to Total Assets June 30, 2021 June 30, 2021 1.4 0% Peer Data as of March 31, 2021 Peer Data as of March 31, 2021 2.5 0% 2.31% 2.31% 1.2 0% 1.17% 1.12% 2.0 0% 1.0 0% 0.81% 0.79% 0.8 0% 1.5 0% 0.70% 0.6 0% 1.0 0% 0.4 0%
Slide 21: Deposit Overview
Deposit Overview Deposit Trend Deposit Composition ($ in millions) June 30, 2021 Retail Other Interest- Retail Time Deposits YoY +9.2% Bearing 25% 2,00 0 22% $1,754 $1,798 State and Brokered 1,80 0 $1,647 $1,647 Noninterest Deposits $1,595 $165 9% $165 $0 DDA 1,60 0 $1,479 $1,477 $172 $182 $18 44% $
Slide 22: Maturity Schedule
Maturity Schedule Time Deposits as of June 30, 2021 State and Brokered Retail Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Month $ 115,385 0.60% $ 100,000 0.06% $ 215,385 0.35% 3 to 6 Month 98,322 0.49% 15,000 0.05% 113,322 0.44% 6 to 9
Slide 23: Profitability
Profitability 15.0 Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ($ in millions) $13.0 $0.85 13.0 $10.4 $11.0 11.0 $9.6 $10.0 $0.71 $8.6 $9.2 $0.67 $8.0 $0.59 $0.63 $0.60 9.0 $0.56 $0.51 7.0 5.0 $8.6 $9.8 $0.64 $6.8 $0.55 3.0 $5.8 $0.42 $0.38 $4.2 $3.6 $3.4 $3.4 $0.26 $0.23 $0.22
Slide 24: Noninterest Income
Noninterest Income Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 77% 77% 12.0% 12.2% 5.0 80% 65. 00 10.7% 10.5% 9.3% 9.0% 55. 00 7.6% 7.5% 10. 0% 4.5 70% 45. 00 10.9% 11.6% 8.0% 5.0 % 62% 35. 00 6.8% 7.5% 4.0 25. 00 5.3% 6.0% 5.3% 0.0 % $42.4 55% 60% 15. 00 $27.1 $27.1
Slide 25: Noninterest Expense
Noninterest Expense (2) Noninterest Expense Trend Efficiency Ratio ($ in millions) 64.1% 70.0 0% 61.9% 62.1% 61.2% 60.4% 60.4% 58.5% 16.0 60.0 0% 3.0 0% 50.0 0% 40.0 0% 14.0 2.48% 2.40% 2.39% 2.38% 30.0 0% 53.0% 56.8% 53.0% 51.7% 52.7% 2.5 0% 50.7% 46.8% 46.1% 2.21% 20.0 0% 12.0 10.0 0% 1.98% 1.99%
Slide 26: Net Interest Margin
Net Interest Margin (1) Yield & Cost 7.00 % 6.22% 5.85% 6.00 % 5.64% 4.73% 4.81% 4.73% 5.00 % 4.63% 4.63% 4.11% 3.96% 3.85% 3.83% 4.00 % 3.64% 3.70% 3.43% 3.22% 3.00 % 2.13% 1.99% 2.00 % 1.77% 1.17% 1.64% 1.53% 0.92% 1.00 % 1.34% 0.73% 0.52% 0.40% 0.85% 0.63% 0.00 % 0.49% 0.34% 0.24% 3Q19 4Q19 1Q20
Slide 27: Capital Ratios & BV Per Share
Capital Ratios & BV Per Share Bank Regulatory Capital Ratios 16.5 0 BV Per Share 18.0 0% June 30, 2021 16.0 0 15.5 0 16.0 0% 15.0 0 14.0 0% 14.5 0 $16.09 $15.53 $15.19 14.0 0 $14.91 $14.58 $14.78 12.0 0% 13.5 0 $14.30 $14.44 13.0 0 10.0 0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 8.00
Slide 28: Non-GAAP Measures
Non-GAAP Measures Core Deposits Core Deposits are a non-GAAP measure that we use to measure the portion of our total deposits that are thought to be more stable, lower cost and reprice less frequently on average in a rising rate environment. We calculate core deposits as total deposits less time dep
Slide 29: Non-GAAP Measures
Non-GAAP Measures The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ in thousands) 09/30/19 12/31/19 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 Total Deposits $ 1,432,262 $ 1,479,307 $ 1,477,442 $ 1,646,930 $ 1,647,107 $ 1,594,851 $ 1,75
Slide 30: 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) 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Net Income (a)$ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 $ 5,787 $ 8,560 $ 9,844 Add: Provision