Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Piper Sandler 2021 Western Financial Services Conference
30 slides from Pcb Bancorp's conference presentation, Mar 2, 2021
Slide 1: Piper Sandler 2021 Western Financial Services Conference
Piper Sandler 2021 Western Financial Services Conference March 2, 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 6 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 February 25, 2021 Ticker PCB Market Cap $216.2 million Price Per Share $13.99 52 Week Range $7.97 - $14.90 Dividend Yield (Dividend Payout Ratio) 2.86% (38.13% 1Q20-4Q20) Number of Shares 15,454,242 Historical Quarterly Cash Dividend Per Share 0.1 20 0.1 00 25% 0.0 80 33% 0.
Slide 6: Historical Performance
Historical Performance Held-For-Investment Loans ($bn) Deposits ($bn) 1.8 00 CAGR +11.3% 1.8 00 CAGR +9.9% 1.6 00 1.6 00 1.4 00 1.4 00 1.2 00 1.2 00 1.0 00 1.0 00 0.8 00 $1.58 0.8 00 $1.48 $1.59 $1.34 $1.45 $1.44 0.6 00 $1.19 0.6 00 $1.25 $1.03 $1.09 0.4 00 0.4 00 0.2 00 0.2 00 0.0 00 0.0 00 2016 20
Slide 7: Historical Performance
Historical Performance Return on Average Assets Return on Average Equity 1.8 0% 0.1 60 1.6 0% 0.1 40 1.4 0% 0.1 20 1.2 0% 0.1 00 1.0 0% 0.0 80 0.8 0% 1.53% 14.26% 1.40% 0.0 60 12.47% 12.00% 0.6 0% 1.25% 1.22% 10.88% 0.84% 0.0 40 0.4 0% 7.08% 0.0 20 0.2 0% 0.0 0% 0.0 00 2016 2017 2018 2019 2020 2016
Slide 8: COVID-19 Update
COVID-19 Update As of December 31, 2020 (unless otherwise indicated) o SBA PPP Loans • 1,585 loans with aggregated carrying value of $135.7 million • Origination fee income of $5.7 million and cost of $1.1 million • Received debt forgiveness of $16.8 million as of February 25, 2021 • Second round PP
Slide 9: Recent Financial Performance
Recent Financial Performance your Partner • Choice • Bank | 9
Slide 10: 4Q20 Highlights
4Q20 Highlights As of or For the Quarter Ended o Recorded a provision for loan losses ($ in thousands except per share data) 12/31/20 09/30/20 12/31/19 of $2.1 million in 4Q20 primarily due Income Statement Summary: to an increase in the economic Interest Income $ 19,508 $ 19,620 $ 22,276 uncertaint
Slide 11: Loan Overview
Loan Overview HFI Loan Trend HFI Loan Composition ($ in millions) December 31, 2020 Other Consumer Commercial and Industrial SBA PPP Residential Property 1% YoY +9.1% 13% 1,80 0 9% 12% $1,554 $1,579 $1,584 1,60 0 Commercial Property - Commercial Property - $1,451 $1,451 $136 $136 Owner Occupied $1,3
Slide 12: Loan Interest Rate Mix
Loan Interest Rate Mix Interest Rate Mix(2) (1),(2) New Production by Rate Type ($ in millions) December 31, 2020 6.31% 200 .0 6.02% 5.92% Variable (WA Rate: 4.06%) 6.00 % 52% 180 .0 5.20% 5.20% 5.00 % Hybrid (WA Rate: 4.82%) 160 .0 4.15% 4.14% Fixed (WA Rate:4.92%) 23% 3.94% 4.00 % 25% 140 .0 $87 3
Slide 13: SBA PPP Loans
SBA PPP Loans Summary of SBA PPP loans as of December 31, 2020: Unpaid Principal Balance (“UPB”) Remaining Balance of ($ in thousands) # of Loans Carrying Value 2-Year Maturity 5-Year Maturity Origination Fee Origination Cost $50K or Under 1,017 $ 20,518 $ 18,961 $ 1,671 $ 572 $ 457 Between $50K and
Slide 14: Loan Modification
Loan Modification As of December 31, 2020 Summary of loans with modifications related to the COVID-19 pandemic: Currently Modified Previously Carrying Value Weighted-Average Modified Interest Accrued Accrued Payment Only Interest Loan-to- Interest Carrying Interest ($ in thousands) Deferment (1) Pay
Slide 15: Loan Modification
Loan Modification From June 30, 2020 to December 31, 2020 Migration of loans with modifications related to the COVID-19 pandemic: Early Re- New Modification ($ in thousands) Jun-20 Termination Expired Modification Modification Type Change Amortization Dec-20 Commercial property Payment deferment (1)
Slide 16: 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 0.1 0% 0.20% $2.8 0.16% 1.0 $1.7 $1.8 $1.8 0.0 5% 0.10% 0.11% 0.11% 0.0 0.0 0% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec
Slide 17: Loan Concentration
Loan Concentration Real Estate Loans – Commercial By Property Type as of December 31, 2020 Total Loans With Modification Related to COVID-19 % to Carrying Carrying Property ($ in thousands) Value % to Total LTV(1) Value % to Total Type Total LTV(1) Industrial $ 199,112 19.5% 50.5% $ 830 2.9% 0.4% 72
Slide 18: Loan Concentration
Loan Concentration Commercial and Industrial Loans – By Industry Type as of December 31, 2020 Total, Excluding Loans with Modification SBA PPP Loans Related to COVID-19 SBA PPP Loans % to Carrying Carrying Industry Carrying ($ in thousands) Value % to Total Value % to Total Type Total Value % to Tot
Slide 19: Loan Concentration
Loan Concentration Geographic Concentration as of December 31, 2020 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 Californi
Slide 20: Credit Quality vs. Peers
(1) Credit Quality vs. Peers (2) (3) NPAs / (Total Loans + OREO) Classified Assets to Total Assets December 31, 2020 December 31, 2020 2.0 0% 2.5 0% 1.75% 2.30% 2.26% 1.8 0% 1.6 0% 2.0 0% 1.4 0% 1.2 0% 1.5 0% 1.38% 1.0 0% 0.97% 0.8 0% 0.74% 0.65% 1.0 0% 0.6 0% 0.60% 0.54% 0.4 0% 0.31% 0.29% 0.27% 0.
Slide 21: Deposit Overview
Deposit Overview Deposit Trend Deposit Composition ($ in millions) December 31, 2020 Internet Time YoY +7.8% Deposits Retail Time Deposits 2% 1,80 0 Retail Other Interest- 29% $1,647 $1,647 State and Brokered $1,595 Bearing 24% Deposits $1,448 $1,447 $1,432 $1,479 $1,477 Noninterest 1,60 0 $172 $182
Slide 22: Maturity Schedule
Maturity Schedule Time Deposits as of December 31, 2020 State and Brokered Retail Time Deposits Internet Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Month $ 169,699 1.51% $ 7,286 0.69% $ 155,000 0.15% $ 331,985 0.86% 3 to
Slide 23: Profitability
Profitability 15.0 Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) 13.0 ($ in millions) $9.8 $10.0 $10.4 $0.67 11.0 $9.3 $9.6 $9.2 $0.60 $0.63 $0.60 $8.6 $0.57 $0.59 $0.56 9.0 $8.0 $0.51 7.0 5.0 3.0 $6.6 $6.6 $6.8 $5.8 $0.40 $0.40 $0.42 $0.38 $4.2 $3.6 $3.4 $3.4 $0.26 $0.23 $0.22 $
Slide 24: Noninterest Income
Noninterest Income Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 77% 9.1% 9.3% 9.0% 10.7% 10.5% 5.0 80% 65. 00 7.4% 7.6% 7.5% 10. 0% 55. 00 5.0 % 4.5 45. 00 6.5% 6.8% 8.0% 7.5% 70% 5.2% 5.3% 6.0% 5.3% 0.0 % 62% 62% 35. 00 -5.0% 4.0 25. 00 $42.4 55% $29.2 60% -10.0% 15.
Slide 25: Noninterest Expense
Noninterest Expense (2) Noninterest Expense Trend Efficiency Ratio ($ in millions) 64.1% 70.0 0% 62.4% 62.5% 61.9% 62.1% 61.2% 60.4% 60.4% 16.0 60.0 0% 3.0 0% 50.0 0% 2.52% 40.0 0% 14.0 2.43% 2.48% 2.40% 2.39% 2.38% 30.0 0% 52.6% 53.0% 53.0% 56.8% 53.0% 51.7% 52.7% 2.5 0% 20.0 0% 50.7% 12.0 10.0 0%
Slide 26: Net Interest Margin
Net Interest Margin (1) Yield & Cost 7.00 % 6.33% 6.39% 6.22% 5.85% 6.00 % 5.64% 5.00 % 4.73% 4.81% 4.73% 4.22% 4.17% 4.11% 3.96% 3.85% 4.00 % 3.64% 3.43% 3.22% 3.00 % 2.06% 2.17% 2.13% 1.99% 2.00 % 1.77% 1.17% 1.62% 1.69% 1.64% 0.92% 1.53% 0.73% 1.00 % 1.34% 0.85% 0.63% 0.00 % 0.49% 1Q19 2Q19 3Q19
Slide 27: Capital Ratios & BV Per Share
Capital Ratios & BV Per Share Bank Regulatory Capital Ratios 15.5 0 BV Per Share 18.0 0% December 31, 2020 15.0 0 14.5 0 16.0 0% 14.0 0 $15.19 $14.91 $14.58 $14.78 14.0 0% $14.30 $14.44 13.5 0 $13.98 12.0 0% 13.0 0 $13.57 12.5 0 10.0 0% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 16.95%
Slide 28: Non-GAAP Measures
Non-GAAP Measures Core Deposits Core Deposits are a non-GAAP measure that we use to measure the portion of our total deposits that are thought to be more stable, lower cost and reprice less frequently on average in a rising rate environment. We calculate core deposits as total deposits less time dep
Slide 29: Non-GAAP Measures
Non-GAAP Measures The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ in thousands) 03/31/19 06/30/19 09/30/19 12/31/19 03/31/20 06/30/20 09/30/20 12/31/20 Total Deposits $ 1,447,758 $ 1,446,526 $ 1,432,262 $ 1,479,307 $ 1,477,442 $ 1,646,930 $ 1,64
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) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Net Income (a)$ 6,564 $ 6,601 $ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 $ 5,787 Add: Provision
PCB Bancorp — Piper Sandler 2021 Western Financial Services Conference on 6ix