Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Q3 2021 Earnings Presentation
30 slides from Pcb Bancorp's earnings presentation, Oct 28, 2021
Slide 1: Earnings Results Third Quarter 2021
Earnings Results Third Quarter 2021 October 28, 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 October 25, 2021 Ticker PCB Market Cap $311.8 million Price Per Share $21.01 52 Week Range $8.82 - $21.25 Dividend Yield (Dividend Payout Ratio) 2.28% (18.13% 4Q20-3Q21) Number of Shares 14,841,626 Stock Repurchase Announced on April 8, 2021 to repurchase up to 5% of outstan
Slide 6: Historical Performance
Historical Performance Held-For-Investment Loans ($bn) Deposits ($bn) 1.8 00 CAGR +11.3% 2.0 00 CAGR +9.9% 1.8 00 1.6 00 1.6 00 1.4 00 1.4 00 1.2 00 1.2 00 1.0 00 $1.71 1.0 00 0.8 00 $1.58 $1.83 $1.34 $1.45 0.8 00 $1.48 $1.59 $1.19 $1.44 $1.25 0.6 00 $1.03 0.6 00 $1.09 0.4 00 0.4 00 0.2 00 0.2 00 0.
Slide 7: Historical Performance
Historical Performance Return on Average Assets Return on Average Equity 2.5 0% 0.1 80 0.1 60 2.0 0% 0.1 40 0.1 20 1.5 0% 0.1 00 0.0 80 16.40% 1.0 0% 1.94% 14.26% 0.0 60 12.47% 12.00% 1.53% 1.40% 10.88% 1.25% 1.22% 7.08% 0.0 40 0.5 0% 0.84% 0.0 20 0.0 0% 0.0 00 (1) (1) 2016 2017 2018 2019 2020 09/21
Slide 8: COVID-19 Update
COVID-19 Update As of September 30, 2021 o SBA PPP Loans • 800 loans with aggregated carrying value of $101.9 million • Second round PPP: 766 loans with aggregated contractual loan balance of $94.5 million (carrying value: $91.8 million) • Forgiveness: 1,992 loans for $145.4 million o Loan Modificat
Slide 9: Recent Financial Performance
Recent Financial Performance your Partner • Choice • Bank | 9
Slide 10: 3Q21 Highlights
3Q21 Highlights As of or For the Quarter Ended o Recorded a reversal for loan losses of ($ in thousands except per share data) 09/30/21 06/30/21 09/30/20 $1.1 million in 3Q21 primarily due to Income Statement Summary: a decrease in historical loss and Interest Income $ 21,168 $ 20,051 $ 19,620 quali
Slide 11: Loan Overview
Loan Overview HFI Loan Trend HFI Loan Composition ($ in millions) September 30, 2021 Other Commercial and Industrial Consumer SBA PPP Residential Property 11% 1% 6% 12% 2,00 0 YoY +8.2% Commercial Property - 1,80 0 $1,686 $1,720 $1,708 Non-Owner Occupied 40% $1,554 $1,579 $1,584 $181 $102 Commercial
Slide 12: Loan Interest Rate Mix
Loan Interest Rate Mix Interest Rate Mix(2) (1),(2) New Production by Rate Type ($ in millions) September 30, 2021 250 .0 Variable (WA Rate: 3.96%) 6.00 % 47% 5.20% 5.20% Fixed (WA Rate: 4.57%) 5.00 % 4.15% 4.14% Hybrid (WA Rate: 4.28%) 200 .0 3.94% 4.02% 3.90% 3.95% 25% 28% 4.00 % $105 $105 3.00 %
Slide 13: SBA PPP Loans
SBA PPP Loans Summary of SBA PPP loans as of September 30, 2021: Unpaid Principal Balance (“UPB”) Remaining ($ in thousands) # of Loans Carrying Value 2-Year Maturity 5-Year Maturity Deferred Fee Funded in 2020 $50K or Under 4 $ 43 $ 23 $ 20 $ 0 Between $50K and $150K 14 1,106 1,129 0 23 Between $15
Slide 14: Loan Modification
Loan Modification From December 31, 2020 to September 30, 2021 Migration of loans with modifications related to the COVID-19 pandemic: Early Re- New Modification ($ in thousands) Dec-20 Termination Expired Modification Modification Type Change Amortization Sep-21 Commercial property Payment defermen
Slide 15: 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 0.0 5% $1.4 $1.1 0.07% 0.05% 0.0 0.0 0% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep
Slide 16: Loan Concentration
Loan Concentration Real Estate Loans – Commercial By Property Type as of September 30, 2021 ($ in thousands) Carrying Value % to Total LTV(1) Industrial $ 237,184 19.9% 50.8% Retail (More Than 50%) 194,855 16.4% 48.9% Mixed Use 146,474 12.3% 47.9% Office 82,530 6.9% 54.7% Gas Station 80,400 6.8% 55.
Slide 17: Loan Concentration
Loan Concentration Commercial and Industrial Loans – By Industry Type as of September 30, 2021 Total, Excluding SBA PPP Loans SBA PPP Loans ($ in thousands) Carrying Value % to Total Carrying Value % to Total General Manufacturing & Wholesale Trade $ 67,538 34.9% $ 22,235 21.8% Food Services 29,041
Slide 18: Loan Concentration
Loan Concentration Geographic Concentration as of September 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 Californ
Slide 19: Credit Quality vs. Peers
(1) Credit Quality vs. Peers (2) (3) NPAs / (Total Loans + OREO) Classified Assets to Total Assets September 30, 2021 September 30, 2021 1.4 0% Peer Data as of June 30, 2021 Peer Data as of June 30, 2021 2.5 0% 1.16% 2.28% 1.2 0% 1.09% 2.0 0% 1.0 0% 0.86% 1.68% 0.8 0% 1.5 0% 0.65% 0.6 0% 0.53% 1.0 0
Slide 20: Deposit Overview
Deposit Overview Deposit Trend Deposit Composition ($ in millions) September 30, 2021 Retail Other Interest- Retail Time Deposits YoY +11.3% Bearing 23% 2,00 0 22% $1,798 $1,833 State and Brokered $1,754 Noninterest Deposits 1,80 0 $1,647 $1,647 $165 $165 $1,595 $165 $0 DDA 9% $0 1,60 0 $1,479 $1,47
Slide 21: Maturity Schedule
Maturity Schedule Time Deposits as of September 30, 2021 State and Brokered Retail Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Month $ 107,006 0.48% $ 115,000 0.07% $ 222,006 0.27% 3 to 6 Month 150,075 0.49% 50,000 0.05% 200,075 0.38% 6
Slide 22: Profitability
Profitability Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ($ in millions) $14.6 $13.0 $0.97 15. 0 13. 0 $11.0 $0.85 $10.0 $10.4 $0.71 11. 0 $8.6 $9.2 $0.63 $0.67 $8.0 $0.56 $0.60 $0.51 9.0 7.0 $9.8 $11.0 $0.73 $0.64 5.0 $8.6 $0.55 3.0 $5.8 $0.38 1.0 $4.2 $3.6 $3.4 $3.4 $0.26 $0
Slide 23: Noninterest Income
Noninterest Income Noninterest Income Trend SBA Loan Sale Trend ($ in millions) 77% ($ in millions) 77% 10.7% 10.5% 12.0% 12.2% 10.8% 5.0 76% 80% 65. 0 7.6% 9.0% 7.5% 10. 0% 55. 0 10.9% 11.6% 9.5% 5.0 % 4.5 45. 0 6.0% 8.0% 7.5% 5.3% 5.3% 0.0 % 70% 62% 35. 0 -5.0% 4.0 -10.0% $45.0 25. 0 $42.4 $34.1 -
Slide 24: Noninterest Expense
Noninterest Expense (2) Noninterest Expense Trend Efficiency Ratio ($ in millions) 64.1% 70.0 0% 62.1% 61.2% 60.4% 60.4% 58.5% 59.4% 16. 0 60.0 0% 3.0 0% 50.0 0% 40.0 0% 14. 0 2.40% 2.39% 2.38% 30.0 0% 56.8% 53.0% 51.7% 52.7% 2.5 0% 50.7% 46.8% 46.1% 43.5% 2.21% 20.0 0% 12. 0 2.17% 10.0 0% 1.98% 1.9
Slide 25: Net Interest Margin
Net Interest Margin (1) Yield & Cost 7.00 % 5.85% 6.00 % 5.64% 4.73% 4.81% 4.73% 4.75% 5.00 % 4.63% 4.63% 3.96% 3.85% 3.83% 3.93% 4.00 % 3.64% 3.70% 3.43% 3.22% 3.00 % 1.99% 2.00 % 1.77% 1.17% 1.53% 0.92% 1.00 % 1.34% 0.73% 0.52% 0.40% 0.37% 0.85% 0.63% 0.49% 0.21% 0.00 % 0.34% 0.24% 4Q19 1Q20 2Q20
Slide 26: Capital Ratios & BV Per Share
Capital Ratios & BV Per Share Bank Regulatory Capital Ratios 17.0 0 BV Per Share 18.0 0% September 30, 2021 16.5 0 16.0 0 16.0 0% 15.5 0 15.0 0 $16.68 $16.09 14.0 0% 14.5 0 $15.53 $15.19 $14.78 $14.91 14.0 0 12.0 0% 13.5 0 $14.44 $14.58 13.0 0 10.0 0% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
Slide 27: Non-GAAP Measures
Non-GAAP Measures Adjusted Allowance to HFI Loans Ratio Adjusted allowance to HFI loans ratio is a non-GAAP measure that we use to enhance comparability to prior periods and provide supplemental information regarding the Company’s credit trends. We calculate adjusted allowance to HFI loan ratio as a
Slide 28: Non-GAAP Measures
Non-GAAP Measures The following table reconciles adjusted allowance to HFI loans ratio to its most comparable GAAP measure: ($ in thousands) 12/31/19 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 HFI Loans $ 1,450,831 $ 1,451,038 $ 1,553,589 $ 1,578,804 $ 1,583,578 $ 1,685,916 $ 1,7
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) 12/31/19 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 Total Deposits $ 1,479,307 $ 1,477,442 $ 1,646,930 $ 1,647,107 $ 1,594,851 $ 1,753,772 $ 1,79
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) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Net Income (a)$ 4,158 $ 3,572 $ 3,367 $ 3,449 $ 5,787 $ 8,560 $ 9,844 $ 11,023 Add: Provisio