Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Q2 2022 Earnings Presentation
28 slides from Pcb Bancorp's earnings presentation, Jul 28, 2022
Slide 1: Earnings Results Second Quarter 2022
Earnings Results Second Quarter 2022 July 28, 2022
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
PCB BANCORP Introduction
Slide 4: Franchise Footprint
Franchise Footprint (1) On August 25, 2022, Pacific City Bank’s name will change to PCB Bank. (1) As of July 26, 2022. 4
Slide 5: Equity Information
Equity Information As of July 26, 2022 Common Stock Ticker PCB Market Cap $279.4 million Price Per Share $18.87 52 Week Range $17.68 - $25.43 Dividend Yield (Dividend Payout Ratio) 3.18% (19.57% 3Q21-2Q22) Number of Shares 14,956,760 Shares Preferred Stock Senior Non-Cumulative Perpetual, Series C 6
Slide 6: Historical Performance
Historical Performance Held-For-Investment Loans ($bn) Deposits ($bn) 2.5 00 CAGR +9.8% CAGR +10.5% 2.0 00 2.0 00 1.8 00 1.6 00 1.4 00 1.5 00 1.2 00 1.0 00 $1.73 $1.83 1.0 00 $1.87 $2.00 0.8 00 $1.45 $1.58 $1.59 $1.34 $1.44 $1.48 0.6 00 $1.19 0.5 00 $1.25 0.4 00 0.2 00 0.0 00 0.0 00 2017 2018 2019 2
Slide 7: Historical Performance
Historical Performance Return on Average Assets Return on Average Equity/TCE (1) 2.5 0% 0.1 8 0.1 6 14.92%(1) 2.0 0% 0.1 4 0.1 2 1.5 0% 0.1 0.0 8 16.52% 1.0 0% 1.96% 14.26% 14.13% 1.78% 0.0 6 12.00% 1.53% 1.40% 10.88% 1.22% 7.08% 0.0 4 0.5 0% 0.84% 0.0 2 0.0 0% 0 (2) (2) 2017 2018 2019 2020 2021 06/
Slide 8: Recent Financial Performance
Recent Financial Performance 8
Slide 9: 2Q22 Highlights
2Q22 Highlights As of or For the Quarter Ended o Issued preferred stock of 69,141 ($ in thousands except per share data) 06/30/22 03/31/22 06/30/21 shares for the capital investment of Income Statement Summary: $69.1 million from U.S. Treasury Interest Income $ 22,446 $ 20,894 $ 20,051 under the ECI
Slide 10: Loan Overview
Loan Overview HFI Loan Trend HFI Loan Composition SBA PPP ($ in millions) Commercial and Industrial June 30, 2022 0% Other Residential Consumer YoY +5.8% 11% Property 1% 2,00 0 Commercial Property - 14% $1,833 Non-Owner Occupied $1,732 $1,743 $2 1,80 0 $1,686 $1,720 $1,708 $22 44% Commercial Propert
Slide 11: Loan Interest Rate Mix
Loan Interest Rate Mix Interest Rate Mix(2) (1),(2) New Production by Rate Type ($ in millions) June 30, 2022 300 .0 6.00 % Variable (WA Rate: 5.12%) 39% 250 .0 4.69% 5.00 % Hybrid (WA Rate: 4.11%) 4.14% 4.02% 4.01% 4.18% 37% 3.94% 3.90% 3.95% Fixed (WA Rate: 4.36%) $117 4.00 % 24% 200 .0 3.00 % $10
Slide 12: Loan Yield Analysis
Loan Yield Analysis Loan Repricing Schedule as of June 30, 2022 HFI Loans, Excl. SBA PPP SBA PPP Loans HFS Loans Total Loans (2) Carrying Carrying Carrying Carrying ($ in thousands) Value Rate (1) Value Rate (1) Value Rate (1) Value Rate (1) Less Than 3 Months $ 688,016 5.16% $ 0 $ 9,627 5.40% $ 697
Slide 13: Loan Concentration
Loan Concentration Real Estate Loans – Commercial By Property Type as of June 30, 2022 ($ in thousands) Carrying Value % to Total LTV(1) Industrial $ 268,818 19.9% 50.6% Retail (More Than 50%) 251,539 18.7% 50.1% Mixed Use 149,768 11.1% 48.2% Apartments 98,143 7.3% 52.0% Gas Station 95,343 7.1% 54.6
Slide 14: Loan Concentration
Loan Concentration Commercial and Industrial Loans – By Industry Type as of June 30, 2022 Total, Excluding SBA PPP Loans SBA PPP Loans ($ in thousands) Carrying Value % to Total Carrying Value % to Total General Manufacturing & Wholesale Trade $ 64,328 31.7% $ 191 12.1% Food Services 36,238 17.9% 56
Slide 15: Loan Concentration
Loan Concentration Geographic Concentration as of June 30, 2022 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 16: Credit Quality
Credit Quality Non-Performing Assets (“NPAs”) NPAs to Total Assets 5.0 ($ in millions) 0.3 0% 4.5 0.2 5% 4.0 3.5 0.2 0% 3.0 2.5 0.1 5% $4.6 2.0 $4.0 $3.8 0.24% 1.5 0.1 0% 0.20% 0.19% 1.0 $2.0 $1.4 $1.4 0.09% 0.0 5% 0.5 $1.1 $1.0 0.07% 0.05% 0.05% 0.06% 0.0 0.0 0% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 D
Slide 17: Credit Quality vs. Peers
(1) Credit Quality vs. Peers (2) (3) NPAs / (Total Loans + OREO) Classified Assets to Total Assets June 30, 2022 June 30, 2022 0.9 0% Peer Data as of March 31, 2022 Peer Data as of March 31, 2022 0.83% 1.4 0% 0.8 0% 1.28% 1.2 0% 0.7 0% 0.6 0% 1.0 0% 0.53% 0.86% 0.5 0% 0.48% 0.8 0% 0.4 0% 0.34% 0.52%
Slide 18: Deposit Overview
Deposit Overview Deposit Trend Deposit Composition ($ in millions) Retail Other Interest- June 30, 2022 YoY +4.6% Bearing Retail Time Deposits 24% $1,998 24% $1,911 $1,833 $1,867 2,00 0 $1,798 $95 $1,754 $0 Noninterest State and Brokered $135 $1,647 $165 $185 $0 DDA Deposits $1,595 $165 $165 $0 $0 $
Slide 19: Maturity Schedule
Maturity Schedule Time Deposits as of June 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 $ 175,354 0.49% $ 60,000 0.97% $ 235,354 0.61% 3 to 6 Months 93,978 0.53% 35,000 0.24% 128,978 0.45% 6 to 9
Slide 20: Profitability
Profitability Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ($ in millions) $14.6 $0.97 $13.0 $13.8 $13.2 $0.91 $0.87 $12.8 $0.85 15. 0 $0.84 13. 0 $10.4 $11.0 $0.71 $0.67 11. 0 $9.2 $0.60 9.0 7.0 $9.8 $11.0 $10.7 $10.2 $0.64 $0.73 $0.70 $0.67 5.0 $8.6 $9.1 $0.55 $0.60 3.0 $5.8 $
Slide 21: Noninterest Income
Noninterest Income Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 77% 77% 10.7% 10.5% 12.0% 12.2% 10.8% 10.0% 10.6% 7.0 76% 80% $65 .0 6.8% 10. 0% 70% 71% $55 .0 11.6% 10.9% 9.5% 9.1% 9.5% 5.0 % 70% $45 .0 8.0% 7.5% 5.3% 0.0 % 6.0 $35 .0 -5.0% -10.0% $45.0 $25 .0 56% $4
Slide 22: Noninterest Expense
Noninterest Expense (2) Noninterest Expense Trend Efficiency Ratio ($ in millions) 64.1% 70.0 0% 60.4% 60.4% 59.4% 59.2% 59.8% 62.1% 16. 0 2.38% 2.5 0% 60.0 0% 2.21% 2.23% 2.22% 2.17% 50.0 0% 14. 0 2.12% 40.0 0% 1.99% 1.95% 30.0 0% 51.7% 52.7% 46.8% 46.1% 44.8% 47.8% 49.0% 43.5% 2.0 0% 20.0 0% 12. 0
Slide 23: Net Interest Margin
Net Interest Margin (1) Yield & Cost 6.00 % 4.81% 4.73% 4.75% 4.72% 5.00 % 4.63% 4.63% 4.59% 4.62% 3.93% 4.01% 3.83% 3.87% 3.87% 4.00 % 3.64% 3.70% 3.43% 3.00 % 2.00 % 0.92% 1.00 % 0.73% 0.52% 0.40% 0.43% 0.37% 0.35% 0.35% 0.63% 0.49% 0.00 % 0.34% 0.24% 0.21% 0.23% 0.19% 0.19% -1.00% 3Q20 4Q20 1Q21
Slide 24: Capital
Capital Bank Regulatory Capital Ratios Book Value/TCE Per Share June 30, 2022 $22.36 20.0 0% $24 .00 $22 .00 18.0 0% $20 .00 $18 .00 $17.47 16.0 0% $17.47 $17.73 $16 .00 $16.09 $16.68 $17.24 $14.91 $15.19 $15.53 $14 .00 14.0 0% $12 .00 12.0 0% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22
Slide 25: Non-GAAP Measures
Non-GAAP Measures Adjusted Allowance to HFI Loans Ratio Adjusted allowance to HFI loans ratio is a non-GAAP measure that we use to enhance comparability to prior periods and provide supplemental information regarding the Company’s credit trends. We calculate adjusted allowance to HFI loan ratio as a
Slide 26: Non-GAAP Measures
Non-GAAP Measures The following table reconciles adjusted allowance to HFI loans ratio and core deposits to their most comparable GAAP measures: ($ in thousands) 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 HFI Loans (a) $ 1,578,804 $ 1,583,578 $ 1,685,916 $ 1,719,656 $ 1,
Slide 27: 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) 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Net Income (a) $ 3,449 $ 5,787 $ 8,560 $ 9,844 $ 11,023 $ 10,676 $ 10,240 $ 9,092 Add: Provi
Slide 28: Non-GAAP Measures
Non-GAAP Measures The following table reconciles ROATCE to its most comparable GAAP measure: ($ in thousands) 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 06/22 YTD Average Total Shareholders' Equity (a) $ 229,463 $ 232,156 $ 236,790 $ 239,448 $ 243,185 $ 251,477 $ 259,367 $ 292,135 $ 275,841 Less: Avera