Pcb Bancorp · NASDAQ:PCB
Pcb Bancorp — Q1 2023 Earnings Presentation
28 slides from Pcb Bancorp's earnings presentation, Apr 21, 2023
Slide 1: Earnings Results First Quarter 2023
fF PCB BANCORP Earnings Results First Quarter 2023 April 21, 2023
Slide 2: Forward-looking statements and non-GAAP disclaimer
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
SAHGORP Franchise Footprint +2. New Jersey Branches = Englewood Ciffs ~ Palisades Park + Washington LPO Virginia LPO *Los Angeles LPO * Orange County LPO +11 Southern * Colorado LPO California Branches +2 Texas Branches ; = Buena Park ~ Carroliton *Georgia LPO -Ceritos -Dallas - Downtown Fashion Dis
Slide 5: Common Stock, Dividends and Book Value
As of April 18, 2023 Common Stock Ticker PCB Market Cap $188.3 million Price Per Share $13.15 52 Week Range $13.15 - $21.95 Dividend Yield (Dividend Payout Ratio) 4.56% (25.21% 2Q22-1Q23) Number of Shares 14,317,390 Shares Preferred Stock Senior Non-Cumulative Perpetual, Series C 69,141 Shares ($69.
Slide 6: Loans, Deposits, Net Income and Diluted EPS
Held-For-Investment Loans ($bn) Deposits ($bn) 2.5 00 CAGR +9.1% 2.5 00 CAGR +11.2% 2.0 00 2.0 00 1.5 00 1.5 00 1.0 00 $2.05 $2.14 $2.05 $2.09 $1.87 $1.59 1.0 00 $1.58 $1.73 $1.44 $1.48 $1.34 $1.45 0.5 00 0.5 00 0.0 00 0.0 00 2018 2019 2020 2021 2022 Mar-23 2018 2019 2020 2021 2022 Mar-23 Net Income
Slide 7: ROAA, ROAE, Efficiency Ratio and Net Interest Margin
Return on Average Assets Return on Average Equity/TCE (1) 2.5 0% 0.1 8 0.1 6 15.70%(1) 13.23%(1) 2.0 0% 0.1 4 0.1 2 1.5 0% 0.1 0.0 8 16.52% 1.0 0% 1.96% 14.26% 1.69% 11.41% 12.46% 1.54% 0.0 6 1.53% 1.40% 10.88% 7.08% 0.0 4 0.5 0% 0.84% 0.0 2 0.0 0% 0 (2) (2) 2018 2019 2020 2021 2022 1Q23 2018 2019 2
Slide 8: Recent Financial Performance
PCB BANCORP Recent Financial Performance
Slide 9: Quarterly Income Statement Summary and Highlights
As of or For the Quarter Ended • Adopted Current Expected Credit Losses ($ in thousands except per share data) 03/31/23 12/31/22 03/31/22 (“CECL”) accounting standard effective Income Statement Summary: January 1, 2023, resulting in an initial Interest Income $ 34,536 $ 31,576 $ 20,894 adjustment to
Slide 10: HFI Loan Trend and Composition
HFI Loan Trend HFI Loan Composition 2,50 0 ($ in millions) March 31, 2023 Multifamily 6% YoY +20.1% Business Property Construction 25% $2,046 $2,092 1% $1,959 Commercial Property 2,00 0 $1,833 $379 Commercial $1,720 $1,708 $1,732 $1,743 $321 $357 37% and Industrial Consumer 13% $280 $231 $237 18% $2
Slide 11: Interest Rate Mix
Interest Rate Mix(2) (1),(2) New Production by Rate Type ($ in millions) March 31, 2023 300 .0 8.04% Variable (WA Rate: 8.26%) 7.17% 38% 7.00 % Hybrid (WA Rate: 4.51%) 250 .0 5.92% 39% 5.23% Fixed (WA Rate: 5.95%) 23% $129 4.26% 5.00 % 200 .0 3.90% 3.95% 4.01% $169 $105 150 .0 $105 3.00 % $97 $110 $
Slide 12: Loan Repricing Schedule and Interest and Fee Income
Loan Repricing Schedule as of March 31, 2023 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 $ 680,595 8.62% $ 14,352 9.34% $ 694,947 8.63% 3 to 12 Months 97,887 5.18% 0 97,887 5.18% 1 to 3 Years 371,425
Slide 13: Commercial Real Estate Loans By Property Type
Commercial Real Estate Loans By Property Type as of March 31, 2023 Carrying % to WA WA Maturing ($ in thousands) Value Total Count LTV(1) Rate <= 1 Year 2-3 Years 3-5 Years > 5 Years Retail (More than 50%) $ 307,690 21.1% 289 48.8% 5.72% $ 25,297 $ 92,783 $ 73,364 $ 116,246 Industrial 267,314 18.5%
Slide 14: Commercial and Industrial Loans by Industry; Residential Mortgage
Commercial and Industrial Loans – By Industry Type as of March 31, 2023 WA Remaining Months to ($ in thousands) Carrying Value % to Total WA Rate Maturity General Manufacturing & Wholesale Trade $ 57,800 21.6% 8.27% 19 Finance & Insurance 47,381 17.7% 7.69% 7 Food Services 43,003 16.1% 8.65% 47 Real
Slide 15: Geographic Concentration
Geographic Concentration as of March 31, 2023 Commercial Real Estate Commercial & Industrial Residential Mortgage Total (1) ($ in thousands) Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total California $ 1,165,780 80.8% $ 215,844 80.6% $ 355,356
Slide 16: Non-Performing Assets and ACL to HFI Loans
Non-Performing Assets (“NPAs”) NPAs to Total Assets 8.0 ($ in millions) 0.3 5% 7.0 0.3 0% 6.0 0.2 5% 5.0 0.2 0% 4.0 $7.4 $7.4 0.1 5% 0.32% 0.30% 3.0 0.1 0% 2.0 $3.0 0.12% 1.0 $1.4 $1.1 $1.0 $1.4 $2.0 0.0 5% 0.07% 0.05% 0.05% 0.06% 0.09% 0.0 0.0 0% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar
Slide 17: NPAs and Classified Assets Peer Comparison
(1) (2) (3) NPAs / (Total Loans + OREO) Classified Assets to Total Assets March 31, 2023 March 31, 2023 0.8 0% Peer Data as of December 31, 2022 Peer Data as of December 31, 2022 0.72% 0.7 0% 0.7 0% 0.63% 0.64% 0.56% 0.6 0% 0.6 0% 0.5 0% 0.5 0% 0.45% 0.40% 0.4 0% 0.4 0% 0.3 0% 0.26% 0.24% 0.3 0% 0.2
Slide 18: Deposit Trend, Composition and Core Deposits
Deposit Trend Deposit Composition ($ in millions) March 31, 2023 YoY +12.1% Retail Time Deposits $2,142 38% State and Brokered Retail Other Interest- $1,998 $1,978 $2,046 Deposits Bearing 10% 2,00 0 $1,867 $1,911 $95 $147 $217 Noninterest $1,798 $1,833 $139 21% DDA $135 $185 31% $165 $165 $422 $420
Slide 19: Time Deposits
Time Deposits as of March 31, 2023 State and Brokered Retail Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 105,751 3.20% $ 136,871 4.13% $ 242,622 3.73% 3 to 6 Months 67,166 3.06% 47,827 4.39% 114,993 3.61% 6 to 9 Months 307,184
Slide 20: Net Income, PTPP Income, 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 $0.80 $12.8 15. 0 13. 0 $11.7 11. 0 9.0 7.0 $11.0 $10.7 $0.64 $0.73 $0.70 $0.67 $0.70 5.0 $9.8 $10.2 $9.1 $8.7 $10.3 $0.60 $0.58 3.0 $7.0 $0
Slide 21: Noninterest Income, SBA Loan Sales and Production
Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 12.2% 10.8% 10.0% 10.6% 7.0 77% 76% 80% 65. 0 6.8% 7.5% 6.3% 7.5% 10. 0% 55. 0 70% 71% 11.6% 9.5% 9.5% 5.0 % 45. 0 9.1% 70% 35. 0 5.3% 5.2% 4.4% 4.8% 0.0 % -5.0% 6.0 -10.0% $45.0 25. 0 $34.1 $36.8 $39.7 $38.4 -15.0% 56% 60%
Slide 22: Noninterest Expense, Efficiency Ratio and FTE Employees
(2) Noninterest Expense Trend Efficiency Ratio ($ in millions) 70.0 0% 59.4% 59.2% 59.8% 62.1% 60.5% 59.2% 58.9% 16. 0 2.36% 2.5 0% 60.0 0% 2.21% 2.23% 2.22% 2.19% 2.23% 2.17% 50.0 0% 14. 0 2.12% 40.0 0% 54.1% 30.0 0% 2.0 0% 20.0 0% 46.1% 43.5% 44.8% 47.8% 49.0% 50.4% 49.2% 12. 0 10.0 0% $5.2 $4.8 0
Slide 23: Yield & Cost
(1) Yield & Cost 7.00 % 6.11% 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% 3.70% 3.83% 3.79% 4.00 % 3.00 % 3.45% 2.28% 2.33% 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
Slide 24: Bank Regulatory Capital Ratios and Book Value/TCE
Bank Regulatory Capital Ratios Book Value/TCE Per Share 20.0 0% March 31, 2023 $26 .00 $24 .00 $22.36 $22.40 $22.94 $23.56 $22 .00 18.0 0% $20 .00 $18 .00 $18.72 16.0 0% $18.21 $17.24 $17.47 $17.73 $17.75 $16 .00 14.0 0% $14 .00 $16.09 $16.68 $12 .00 12.0 0% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22
Slide 25: Non-GAAP Measures
Adjusted ACL to HFI Loans Ratio Adjusted ACL to HFI loans ratio is a non-GAAP measure that we use to enhance comparability to prior periods and provide supplemental information regarding the Company’s credit trends. We calculate adjusted ACL to HFI loan ratio as ACL divided by loans held-for-investm
Slide 26: Reconciliation of Adjusted ACL Ratio and Core Deposits
The following table reconciles adjusted ACL to HFI loans ratio and core deposits to their most comparable GAAP measures: ($ in thousands) Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 HFI Loans (a) $ 1,719,656 $ 1,707,878 $ 1,732,205 $ 1,742,955 $ 1,833,010 $ 1,959,237 $ 2,046,063 $ 2,092,
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) 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Net Income (a) $ 9,844 $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 $ 8,702 $ 10,297 Add: Provision (Reversal) f
Slide 28: Reconciliation of ROATCE and TCE Measures
The following table reconciles ROATCE to its most comparable GAAP measure: ($ in thousands) 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Q123 2022 Average Total Shareholders' Equity (a) $ 239,448 $ 243,185 $ 251,477 $ 259,367 $ 292,135 $ 338,248 $ 334,832 $ 335,169 $ 306,440 Less: Average Preferred Stock 0 0