Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Q4 2022 Earnings Presentation
28 slides from Pcb Bancorp's earnings presentation, Jan 26, 2023
Slide 1: Earnings Results Fourth Quarter 2022
fF PCB BANCORP Earnings Results Fourth Quarter 2022 January 26, 2023
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
Q eSB corp Franchise Footprint Bellevue, WA Bayside, NY Los Angeles & Orange Counties, California @ Full-service branch @ Loan production office (1) As of January 24, 2023. 4
Slide 5: Common Stock and Cash Dividend, Book Value Per Share
As of January 24, 2023 Common Stock Ticker PCB Market Cap $260.8 million Price Per Share $17.90 52 Week Range $17.65 - $25.43 Dividend Yield (Dividend Payout Ratio) 3.35% (25.43% 1Q21-4Q22) Number of Shares 14,571,556 Shares Preferred Stock Senior Non-Cumulative Perpetual, Series C 69,141 Shares ($6
Slide 6: Loans, Deposits, Net Income and Diluted EPS Trends
Held-For-Investment Loans ($bn) Deposits ($bn) 2.500 CAGR +9.1% 2.500 CAGR +11.2% 2.000 2.000 1.500 1.500 1.000 $2.05 $2.05 $1.87 $1.59 1.000 $1.58 $1.73 $1.44 $1.48 $1.34 $1.45 0.500 0.500 0.000 0.000 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Net Income ($mm) Diluted Earnings Per Share 45.0
Slide 7: ROAA, ROAE/TCE, Efficiency Ratio and Net Interest Margin
Return on Average Assets Return on Average Equity/TCE (1) 2.50% 0.18 0.16 13.23%(1) 2.00% 0.14 0.12 1.50% 0.1 0.08 16.52% 1.00% 1.96% 14.26% 1.54% 11.41% 0.06 1.53% 1.40% 10.88% 0.04 0.50% 0.84% 7.08% 0.02 0.00% 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Efficiency Ratio Net Interest Margin
Slide 8: Recent Financial Performance
PCB BANCORP Recent Financial Performance
Slide 9: Quarterly Income Statement Summary and Highlights
As of or For the Quarter Ended o Recorded a provision for loan losses ($ in thousands except per share data) 12/31/22 09/30/22 12/31/21 of $1.1 million in 4Q22 primarily due Income Statement Summary: to increases in gross loan balance and Interest Income $ 31,576 $ 26,835 $ 20,995 qualitative adjust
Slide 10: HFI Loan Trend and Composition
2,500 HFI Loan Trend HFI Loan Composition SBA PPP ($ in millions) December 31, 2022 0% Other Commercial and Industrial Residential Consumer YoY +18.1% 12% Property 1% $2,046 17% $1,959 $1 $23 $1 2,000 $1,833 $23 Commercial Property - $1,732 $1,743 $2 $334 Commercial Property - $1,686 $1,720 $1,708 $
Slide 11: New Production and Interest Rate Mix
New Production(1),(2) by Rate Type Interest Rate Mix(2) ($ in millions) December 31, 2022 300.0 7.17% 7.00% Variable (WA Rate: 7.86%) 5.92% 38% Hybrid (WA Rate: 4.40%) 250.0 5.23% 39% 5.00% Fixed (WA Rate: 4.52%) 4.26% 23% 4.02% 3.90% 3.95% 4.01% $129 200.0 $169 $105 3.00% 150.0 $105 $97 $110 $62 1.
Slide 12: Loan Repricing Schedule and Interest and Fee Income
Loan Repricing Schedule as of December 31, 2022 HFI Loans HFS Loans Total Loans (2) Carrying Carrying Carrying ($ in thousands) Value Rate (1) Value Rate (1) Value Rate (1) Less Than 3 Months $ 671,741 8.35% $ 18,811 8.78% $ 690,552 8.35% 3 to 12 Months 84,231 4.32% 0 84,231 4.32% 1 to 3 Years 342,9
Slide 13: Real Estate Loans by Property Type
Real Estate Loans – Commercial By Property Type as of December 31, 2022 ($ in thousands) Carrying Value % to Total LTV(1) Retail (More than 50%) $ 305,480 21.2% 49.8% Industrial 278,319 19.3% 50.4% Mixed Use 149,223 10.4% 48.0% Apartments 104,617 7.3% 53.0% Office 100,733 7.0% 55.0% Motel & Hotel 95
Slide 14: Commercial and Industrial Loans by Industry Type
Commercial and Industrial Loans – By Industry Type as of December 31, 2022 ($ in thousands) Carrying Value % to Total General Manufacturing & Wholesale Trade $ 53,584 21.5% Finance & Insurance 44,208 17.7% Food Services 37,775 15.2% Real Estate Related 29,527 11.8% Retail Trade 28,684 11.5% Entertai
Slide 15: Geographic Concentration
Geographic Concentration as of December 31, 2022 Real Estate - Commercial Real Estate – Residential Commercial & Industrial ($ in thousands) Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total California $ 1,158,763 80.5% $ 332,108 99.5% $ 207,142 83.2% New York 64,713 4.5%
Slide 16: Non-Performing Assets and Allowance
Non-Performing Assets (“NPAs”) NPAs to Total Assets 8.0 ($ in millions) 0.35% 7.0 0.30% 6.0 0.25% 5.0 0.20% 4.0 $7.4 $7.4 0.15% 0.32% 0.30% 3.0 2.0 $3.8 0.10% 0.19% 1.0 $1.4 $1.1 $1.0 $1.4 $2.0 0.05% 0.07% 0.05% 0.05% 0.06% 0.09% 0.0 0.00% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-
Slide 17: NPAs and Classified Assets Peer Comparison
(1) NPAs / (Total Loans + OREO)(2) Classified Assets to Total Assets(3) December 31, 2022 December 31, 2022 0.70% Peer Data as of September 30, 2022 Peer Data as of September 30, 2022 0.65% 1.20% 0.60% 1.08% 0.52% 1.00% 0.50% 0.43% 0.80% 0.40% 0.36% 0.68% 0.60% 0.30% 0.28% 0.51% 0.42% 0.21% 0.40% 0.
Slide 18: Deposit Trend, Composition and Core Deposits
Deposit Trend Deposit Composition ($ in millions) December 31, 2022 Retail Time Deposits YoY +9.6% Retail Other Interest- 32% Bearing $1,998 $1,978 $2,046 25% State and Brokered $1,911 Deposits $1,833 $1,867 $147 2,000 $1,798 $95 $139 Noninterest $1,754 7% $135 DDA $165 $185 $165 $165 $422 36% $0 $4
Slide 19: Time Deposits
Time Deposits as of December 31, 2022 State and Brokered Retail Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 139,048 2.36% $ 70,004 3.65% $ 209,052 2.79% 3 to 6 Months 70,749 2.51% 36,871 3.90% 107,620 2.99% 6 to 9 Months 77,332
Slide 20: Net Income, PTPP, Diluted 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 $0.91 $13.0 $13.8 $13.2 $13.5 $13.5 $0.85 $0.84 $12.8 15.0 13.0 $11.0 $0.71 11.0 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 $8.7 $0.55 $0.60 $0.58 3.0 $7.0 $0.46
Slide 21: Noninterest Income, SBA Loan Sales and Production
Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 12.0% 12.2% 10.8% 10.0% 10.6% 7.0 77% 76% 80% 65.0 6.8% 7.5% 6.3% 10.0% 55.0 70% 71% 10.9% 11.6% 9.5% 9.5% 5.0% 45.0 9.1% 5.3% 5.2% 4.4% 0.0% 70% 35.0 -5.0% 6.0 -10.0% $45.0 25.0 $34.1 $36.8 $39.7 $38.4 -15.0% 56% 60% 15.0
Slide 22: Noninterest Expense, Efficiency Ratio and Employees
Noninterest Expense Trend Efficiency Ratio(2) ($ in millions) 64.1% 70.00% 59.4% 59.2% 59.8% 62.1% 60.5% 59.2% 16.0 2.36% 2.50% 60.00% 2.21% 2.23% 2.22% 2.19% 2.17% 50.00% 14.0 2.12% 40.00% 1.95% 30.00% 2.00% 20.00% 46.8% 46.1% 43.5% 44.8% 47.8% 49.0% 50.4% 49.2% 12.0 10.00% $5.2 0.00% $3.5 $5.2 10.
Slide 23: Yield & Cost
Yield & Cost(1) 7.00% 6.00% 5.70% 5.17% 4.63% 4.63% 4.75% 4.62% 4.72% 5.00% 4.59% 4.25% 4.15% 3.93% 3.87% 3.87% 4.01% 4.00% 3.70% 3.83% 3.00% 2.28% 2.00% 0.98% 1.00% 0.52% 1.42% 0.40% 0.37% 0.35% 0.35% 0.43% 0.57% 0.34% 0.00% 0.24% 0.21% 0.19% 0.19% 0.23% -1.00% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q
Slide 24: Bank Regulatory Capital Ratios and Book Value/TCE
Bank Regulatory Capital Ratios Book Value/TCE Per Share 20.00% December 31, 2022 $24.00 $22.36 $22.40 $22.94 $22.00 18.00% $20.00 $18.00 16.00% $18.21 $16.00 $17.24 $17.47 $17.73 $17.75 $16.68 $15.53 $16.09 $14.00 14.00% $12.00 12.00% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 (1) BV Pe
Slide 25: Adjusted Allowance to HFI Loans Ratio
Adjusted Allowance to HFI Loans Ratio Adjusted allowance to HFI loans ratio is a non-GAAP measure that we use to enhance comparability to prior periods and provide supplemental information regarding the Company’s credit trends. We calculate adjusted allowance to HFI loan ratio as allowance divided b
Slide 26: Reconciliation of Adjusted Allowance Ratio and Core Deposits
The following table reconciles adjusted allowance to HFI loans ratio and core deposits to their most comparable GAAP measures: ($ in thousands) 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 HFI Loans (a) $ 1,685,916 $ 1,719,656 $ 1,707,878 $ 1,732,205 $ 1,742,955 $ 1,833,01
Slide 27: Reconciliation of PTPP Income and Adjusted ROAA, ROAE, EPS
The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: ($ in thousands) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net Income (a) $ 8,560 $ 9,844 $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 $ 8,702 Add: Provision (Reversal) fo
Slide 28: Reconciliation of ROATCE and TCE Per Share
The following table reconciles ROATCE to its most comparable GAAP measure: ($ in thousands) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 2022 Average Total Shareholders' Equity (a) $ 236,790 $ 239,448 $ 243,185 $ 251,477 $ 259,367 $ 292,135 $ 338,248 $ 334,832 $ 306,440 Less: Average Preferred Stock 0 0