Slide 1: Earnings Results Second Quarter 2021
Earnings Results Second Quarter 2021 July 22, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement your Partner • Choice • Bank | 2 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
Slide 3: Introduction
your Partner • Choice • Bank | 3 Introduction
Slide 4: Franchise Footprint
Franchise Footprint your Partner • Choice • Bank | 4 • 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.
Slide 5: Equity Information
Equity Information your Partner • Choice • Bank | 5(1) Retrospectively adjusted for 10% stock dividend payouts on February 22, 2016 and January 15, 2017 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)
Slide 6: Historical Performance
Historical Performance your Partner • Choice • Bank | 6 $1.03 $1.19 $1.34 $1.45 $1.58 $1.72 0.0 00 0.2 00 0.4 00 0.6 00 0.8 00 1.0 00 1.2 00 1.4 00 1.6 00 1.8 00 2.0 00 2016 2017 2018 2019 2020 Jun-21 Held-For-Investment Loans ($bn) $1.09 $1.25 $1.44 $1.48 $1.59 $1.80 0.0 00 0.2 00 0.4 00 0.6 00 0.8
Slide 7: Historical Performance
Historical Performance your Partner • Choice • Bank | 7 1.25% 1.22% 1.53% 1.40% 0.84% 1.85% 0.0 0% 0.2 0% 0.4 0% 0.6 0% 0.8 0% 1.0 0% 1.2 0% 1.4 0% 1.6 0% 1.8 0% 2.0 0% 2016 2017 2018 2019 2020 06/21 YTD Return on Average Assets 12.47% 12.00% 14.26% 10.88% 7.08% 15.59% 0.0 00 0.0 20 0.0 40 0.0 60 0.
Slide 8: COVID-19 Update
COVID-19 Update your Partner • Choice • Bank | 8 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: $107.0 million) • Forgiveness: 1,061 loans f
Slide 9: Recent Financial Performance
your Partner • Choice • Bank | 9 Recent Financial Performance
Slide 10: 2Q21 Highlights
2Q21 Highlights your Partner • Choice • Bank | 10 As of or For the Quarter Ended ($ in thousands except per share data) 06/30/21 03/31/21 06/30/20 Income Statement Summary: Interest Income $ 20,051 $ 19,258 $ 18,973 Interest Expense 1,055 1,439 3,610 Net Interest Income 18,996 17,819 15,363 Noninter
Slide 11: Loan Overview
Commercial Property - Owner Occupied 28% Commercial Property - Non-Owner Occupied 38% Commercial and Industrial 11% SBA PPP 11% Residential Property 11% Other Consumer 1% HFI Loan Composition Loan Overview your Partner • Choice • Bank | 11 $904 $953 $957 $956 $1,002 $1,023 $1,062 $1,136 $227 $240 $2
Slide 12: Loan Interest Rate Mix
Fixed (WA Rate: 4.71%) 26% Variable (WA Rate: 3.99%) 49% Hybrid (WA Rate: 4.52%) 25% Interest Rate Mix(2) $25 $50 $29 $21 $52 $32 $49 $17 $20 $33 $19 $19 $22 $24 $23 $85 $65 $87 $57 $25 $53 $45 $51 $105 5.92% 5.20% 5.20% 4.15% 4.14% 3.94% 4.02% 3.90% -3.00% -2.00% -1.00% 0.00 % 1.00 % 2.00 % 3.00 %
Slide 13: SBA PPP Loans
SBA PPP Loans your Partner • Choice • Bank | 13 Unpaid Principal Balance (“UPB”) Remaining ($ 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 Between $150K a
Slide 14: Loan Modification
Loan Modification your Partner • Choice • Bank | 14 Currently Modified Previously ModifiedCarrying Value Weighted-Average ($ in thousands) Payment Deferment (1) Interest Only Payment Total Interest Rate Loan-to- Value (1) Accrued Interest Receivable Carrying Value Accrued Interest Receivable Commerc
Slide 15: Loan Modification
Loan Modification your Partner • Choice • Bank | 15 Migration of loans with modifications related to the COVID-19 pandemic: From December 31, 2020 to June 30, 2021 ($ in thousands) Dec-20 Early Termination Expired Re- Modification New Modification Modification Type Change Amortization Jun-21 Commerc
Slide 16: Credit Quality
Credit Quality your Partner • Choice • Bank | 16 $1.8 $2.8 $4.5 $4.8 $4.0 $4.6 $3.8 $1.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Non-Performing Assets (“NPAs”) 0.11% 0.16% 0.25% 0.24% 0.20% 0.24% 0.19% 0.07% 0.0 0% 0.0 5% 0.1 0% 0.1 5% 0.2 0% 0.2 5% 0.3 0%
Slide 17: Loan Concentration: Commercial Real Estate
Loan Concentration your Partner • Choice • Bank | 17 Real Estate Loans – Commercial By Property Type as of June 30, 2021 Total Loans With Modification Related to COVID-19 ($ in thousands) Carrying Value % to Total LTV(1) Carrying Value % to Total % to Property Type Total LTV(1) Industrial $ 226,702
Slide 18: Loan Concentration: Commercial and Industrial
Loan Concentration your Partner • Choice • Bank | 18 Commercial and Industrial Loans – By Industry Type as of June 30, 2021 Total, Excluding SBA PPP Loans Loans with Modification Related to COVID-19 SBA PPP Loans ($ in thousands) Carrying Value % to Total Carrying Value % to Total % to Industry Type
Slide 19: Loan Concentration: Geographic
Loan Concentration your Partner • Choice • Bank | 19 Geographic Concentration as of June 30, 2021 Real Estate - Commercial Real Estate – Residential Commercial & Industrial, Excluding SBA PPP SBA PPP ($ in thousands) Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total Carry
Slide 20: Credit Quality vs. Peers
Credit Quality vs. Peers (1) your Partner • Choice • Bank | 20 1.17% 1.12% 0.81% 0.79% 0.70% 0.28% 0.17% 0.10% 0.08% 0.0 0% 0.2 0% 0.4 0% 0.6 0% 0.8 0% 1.0 0% 1.2 0% 1.4 0% Hanmi Hope Shinhan America Woori America Peer Group $1 to $3BN US Metro CBB Open PCB NPAs / (Total Loans + OREO) (2) 2.31% 2.31
Slide 21: Deposit Overview
Deposit Overview your Partner • Choice • Bank | 21 $1,124 $1,103 $1,097 $1,126 $1,305 $1,298 $1,246 $1,422 $1,459 78% 77% 74% 76% 79% 79% 78% 81% 81% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 500 700 900 1,10 0 1,30 0 1,50 0 1,70 0 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Core Dep
Slide 22: Maturity Schedule
Maturity Schedule your Partner • Choice • Bank | 22 Time Deposits as of June 30, 2021 Retail Time Deposits State and Brokered Time Deposits Total ($ 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%
Slide 23: Profitability
Profitability your Partner • Choice • Bank | 23 $6.8 $4.2 $3.6 $3.4 $3.4 $5.8 $8.6 $9.8 $9.6 $10.0 $8.0 $8.6 $9.2 $10.4 $11.0 $13.0 (1 .0) 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Net Income PTPP 1.55% 0.96% 0.81% 0.69% 0.69% 1.19% 1.75% 1.96% 2.18% 2.32% 1.82% 1.76
Slide 24: Noninterest Income
Noninterest Income your Partner • Choice • Bank | 24 $22.2 $27.1 $11.7 $27.1 $8.6 $42.4 $10.9 $34.1 9.3% 7.6% 9.0% 7.5% 10.7% 10.5% 12.0% 12.2% 6.8% 5.3% 6.0% 5.3% 8.0% 7.5% 10.9% 11.6% -10.0% -5.0% 0.0 % 5.0 % 10. 0% -5.00 5.0 0 15. 00 25. 00 35. 00 45. 00 55. 00 65. 00 3Q19 4Q19 1Q20 2Q20 3Q20 4Q2
Slide 25: Noninterest Expense
Noninterest Expense your Partner • Choice • Bank | 25 $6.9 $6.0 $6.6 $5.8 $6.4 $7.4 $6.2 $7.1 $3.9 $4.3 $4.0 $3.9 $3.5 $4.2 $3.5 $4.0 2.48% 2.40% 2.39% 1.98% 1.99% 2.38% 1.95% 2.21% 0.0 0% 0.5 0% 1.0 0% 1.5 0% 2.0 0% 2.5 0% 3.0 0% - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1
Slide 26: Net Interest Margin
Net Interest Margin your Partner • Choice • Bank | 26 6.22% 5.85% 5.64% 4.73% 4.81% 4.73% 4.63% 4.63% 4.11% 3.96% 3.85% 3.22% 3.43% 3.64% 3.70% 3.83% 2.13% 1.99% 1.77% 1.17% 0.92% 0.73% 0.52% 0.40% 1.64% 1.53% 1.34% 0.85% 0.63% 0.49% 0.34% 0.24% 0.00 % 1.00 % 2.00 % 3.00 % 4.00 % 5.00 % 6.00 % 7.00
Slide 27: Capital Ratios & BV Per Share
Capital Ratios & BV Per Share your Partner • Choice • Bank | 27 11.53% 14.88% 14.88% 16.13% 5.00% 6.50% 8.00% 10.00% 0.00 % 2.00 % 4.00 % 6.00 % 8.00 % 10.0 0% 12.0 0% 14.0 0% 16.0 0% 18.0 0% Tier 1 Leverage CET 1 Capital Tier 1 Capital Total Capital Bank Regulatory Capital Ratios Actual Minimum Req
Slide 28: Non-GAAP Measures
Non-GAAP Measures your Partner • Choice • Bank | 28 Core Deposits Core Deposits are a non-GAAP measure that we use to measure the portion of our total deposits that are thought to be more stable, lower cost and reprice less frequently on average in a rising rate environment. We calculate core deposi
Slide 29: Non-GAAP Measures: Core Deposits
Non-GAAP Measures your Partner • Choice • Bank | 29 The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ 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,
Slide 30: Non-GAAP Measures: PTPP Income
Non-GAAP Measures your Partner • Choice • Bank | 30 The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: (1) Annualized. ($ in thousands) 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Net Income $ 6,785 $ 4,158 $ 3,572 $ 3,367