Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Q1 2022 Earnings Presentation
30 slides from Pcb Bancorp's earnings presentation, Apr 28, 2022
Slide 1: Earnings Results First Quarter 2022
Earnings Results First Quarter 2022 April 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
Introduction your Partner • Choice • Bank | 3
Slide 4: Franchise Footprint
Franchise Footprint (1) * Palisades Park, New Jersey * Carrollton, Texas s * Dallas, Texas * New Full Service Branches In Construction (1) As of April 26, 2022. your Partner • Choice • Bank | 4
Slide 5: Equity Information
Equity Information As of April 26, 2022 Ticker PCB Market Cap $314.0 million Price Per Share $21.00 52 Week Range $15.10 - $25.43 Dividend Yield (Dividend Payout Ratio) 2.86% (17.50% 2Q21-1Q22) Number of Shares 14,951,760 Cash Dividend & Book Value Per Share $17.47 $0.8 0 $20 .00 $17.24 $18 .00 $0.7
Slide 6: Historical Performance
Historical Performance Held-For-Investment Loans ($bn) Deposits ($bn) 2.5 00 CAGR +10.5% CAGR +9.8% 2.0 00 2.0 00 1.8 00 1.6 00 1.4 00 1.5 00 1.2 00 1.0 00 $1.91 1.0 00 $1.58 $1.73 $1.74 $1.87 $1.59 0.8 00 $1.34 $1.45 $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 2.5 0% 18. 00% 16. 00% 2.0 0% 14. 00% 12. 00% 1.5 0% 10. 00% 8.0 0% 16.52% 16.01% 1.0 0% 1.96% 1.92% 14.26% 1.53% 6.0 0% 12.00% 10.88% 1.40% 1.22% 7.08% 4.0 0% 0.5 0% 0.84% 2.0 0% 0.0 0% 0.0 0% (1) (1) 2017 2018 2019 2020 2021
Slide 8: COVID-19 Update
COVID-19 Update As of March 31, 2022 o SBA PPP Loans • 98 loans with aggregated carrying value of $22.9 million o Loan Modification Related to COVID-19 • No outstanding modifications since September 30, 2021 o Allowance for Loan Losses (1) • Established 1.22% of loans held-for-investment (1.23% excl
Slide 9: Recent Financial Performance
Recent Financial Performance your Partner • Choice • Bank | 9
Slide 10: 1Q22 Highlights
1Q22 Highlights As of or For the Quarter Ended o Recorded a reversal for loan losses of ($ in thousands except per share data) 03/31/22 12/31/21 03/31/21 $1.2 million in 1Q22 primarily due to Income Statement Summary: a decrease in qualitative adjustment Interest Income $ 20,894 $ 20,995 $ 19,258 fa
Slide 11: Loan Overview
Loan Overview HFI Loan Trend HFI Loan Composition SBA PPP ($ in millions) March 31, 2022 1% Other Commercial and Industrial Residential Consumer 11% Property 1% YoY +3.4% 2,00 0 Commercial Property - 13% Non-Owner Occupied $1,732 $1,743 42% 1,80 0 $1,686 $1,720 $1,708 $23 $1,579 $1,584 $65 $22 Comme
Slide 12: Loan Interest Rate Mix
Loan Interest Rate Mix Interest Rate Mix(2) (1),(2) New Production by Rate Type ($ in millions) March 31, 2022 250 .0 Variable (WA Rate: 4.14%) 6.00 % 42% Hybrid (WA Rate: 4.07%) Fixed (WA Rate: 4.41%) 5.00 % 4.15% 4.14% 4.02% 4.01% 4.18% 32% 3.95% 200 .0 3.94% 3.90% 26% 4.00 % $105 $105 3.00 % 150
Slide 13: Loan Yield Analysis
Loan Yield Analysis Loan Repricing Schedule as of March 31, 2022 HFI Loans, Excl. SBA PPP SBA PPP Loans HFS Loans Total Loans (2) Carrying Carrying Carrying Carrying ($ in thousands) Value Rate (1) Value Rate (1) Value Rate (1) Value Rate (1) Less Than 3 Months $ 661,385 4.18% $ 521 1.00% $ 18,340 4
Slide 14: SBA PPP Loans
SBA PPP Loans Summary of SBA PPP loans as of March 31, 2022 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 17 $ 340 $ 279 $ 62 $ 1 Between $50K and $150K 5 468 242 231 5 Between $150K and
Slide 15: Loan Concentration
Loan Concentration Real Estate Loans – Commercial By Property Type as of March 31, 2022 ($ in thousands) Carrying Value % to Total LTV(1) Industrial $ 271,167 21.0% 51.4% Retail (More Than 50%) 230,725 17.9% 49.5% Mixed Use 146,028 11.3% 48.6% Office 89,237 6.9% 55.4% Gas Station 83,248 6.5% 55.3% M
Slide 16: Loan Concentration
Loan Concentration Commercial and Industrial Loans – By Industry Type as of March 31, 2022 Total, Excluding SBA PPP Loans SBA PPP Loans ($ in thousands) Carrying Value % to Total Carrying Value % to Total General Manufacturing & Wholesale Trade $ 70,856 36.5% $ 5,580 24.4% Food Services 33,865 17.4%
Slide 17: Loan Concentration
Loan Concentration Geographic Concentration as of March 31, 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 18: 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% $4.8 $4.6 0.24% 0.24% 2.0 $4.0 $3.8 0.1 0% 0.20% 0.19% 1.0 0.0 5% $1.4 $1.1 $1.0 $1.4 0.07% 0.05% 0.05% 0.06% 0.0 0.0 0% Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar
Slide 19: Credit Quality vs. Peers
(1) Credit Quality vs. Peers (2) (3) NPAs / (Total Loans + OREO) Classified Assets to Total Assets March 31, 2022 March 31, 2022 0.9 0% Peer Data as of December 31, 2021 Peer Data as of December 31, 2021 0.81% 1.6 0% 0.8 0% 1.4 0% 1.37% 0.7 0% 1.2 0% 0.6 0% 0.56% 0.50% 1.0 0% 0.5 0% 0.89% 0.8 0% 0.4
Slide 20: Deposit Overview
Deposit Overview Deposit Trend Deposit Composition ($ in millions) March 31, 2022 Retail Other Interest- YoY +8.9% Bearing Retail Time Deposits 24% 22% $1,911 $1,833 $1,867 2,00 0 $1,798 State and Brokered $1,754 $135 Noninterest Deposits $1,647 $1,647 $165 $185 $0 DDA $1,595 $165 $165 $0 7% $0 $0 4
Slide 21: Maturity Schedule
Maturity Schedule Time Deposits as of March 31, 2022 State and Brokered Retail Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 150,059 0.41% $ 100,000 0.20% $ 250,059 0.33% 3 to 6 Months 131,590 0.42% 0 131,590 0.42% 6 to 9 Months
Slide 22: Profitability
Profitability Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ($ in millions) $14.6 $13.8 $13.2 $0.97 $13.0 15. 0 $0.91 $0.87 13. 0 $11.0 $0.85 $10.4 $9.2 $0.67 $0.71 11. 0 $8.6 $0.60 $0.51 $0.56 9.0 7.0 $9.8 $11.0 $10.7 $10.2 $0.73 $0.70 $0.67 $0.55 $0.64 5.0 $8.6 3.0 $5.8 $0.38 1
Slide 23: Noninterest Income
Noninterest Income Noninterest Income Trend SBA Loan Sale Trend ($ 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 7.5% 70% 10. 0% 71% 55. 0 11.6% 10.9% 9.5% 9.1% 9.5% 5.0 % 45. 0 8.0% 7.5% 5.3% 0.0 % 70% 6.0 35. 0 -5.0% -10.0% $45.0 25. 0 $42.4 $36.8
Slide 24: Noninterest Expense
Noninterest Expense (2) Noninterest Expense Trend Efficiency Ratio ($ in millions) 70.0 0% 61.2% 60.4% 60.4% 58.5% 59.4% 59.2% 59.8% 16. 0 2.38% 2.5 0% 60.0 0% 2.21% 2.23% 2.17% 50.0 0% 14. 0 2.12% 40.0 0% 1.98% 1.99% 1.95% 30.0 0% 53.0% 51.7% 52.7% 46.8% 46.1% 47.8% 2.0 0% 20.0 0% 43.5% 44.8% 12. 0
Slide 25: Net Interest Margin
Net Interest Margin (1) Yield & Cost 6.00 % 4.73% 4.81% 4.73% 4.75% 4.63% 4.63% 4.62% 5.00 % 4.59% 3.83% 3.93% 3.87% 3.87% 4.00 % 3.64% 3.70% 3.43% 3.22% 3.00 % 2.00 % 1.17% 0.92% 1.00 % 0.73% 0.52% 0.40% 0.37% 0.35% 0.35% 0.85% 0.63% 0.49% 0.19% 0.00 % 0.34% 0.24% 0.19% 0.21% 2Q20 3Q20 4Q20 1Q21 2Q
Slide 26: Capital Ratios & BV Per Share
Capital Ratios & BV Per Share Bank Regulatory Capital Ratios 18.0 0 Book Value Per Share March 31, 2022 17.5 0 18.0 0% 17.0 0 16.5 0 16.0 0% 16.0 0 15.5 0 14.0 0% 15.0 0 $17.24 $17.47 $16.68 14.5 0 $16.09 $15.19 $15.53 $14.78 $14.91 14.0 0 12.0 0% 13.5 0 13.0 0 10.0 0% Jun-20 Sep-20 Dec-20 Mar-21 Ju
Slide 27: Non-GAAP Measures
Non-GAAP Measures Adjusted Allowance to HFI Loans Ratio Adjusted allowance to HFI loans ratio is a non-GAAP measure that we use to enhance comparability to prior periods and provide supplemental information regarding the Company’s credit trends. We calculate adjusted allowance to HFI loan ratio as a
Slide 28: Non-GAAP Measures
Non-GAAP Measures The following table reconciles adjusted allowance to HFI loans ratio to its most comparable GAAP measure: ($ in thousands) 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 HFI Loans $ 1,553,589 $ 1,578,804 $ 1,583,578 $ 1,685,916 $ 1,719,656 $ 1,707,878 $ 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) 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 Total Deposits $ 1,646,930 $ 1,647,107 $ 1,594,851 $ 1,753,772 $ 1,797,648 $ 1,832,666 $ 1,86
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) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Net Income (a)$ 3,367 $ 3,449 $ 5,787 $ 8,560 $ 9,844 $ 11,023 $ 10,676 $ 10,240 Add: Provis