8-K - PCB - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): July 22, 2021

PCB BANCORP

(Exact name of registrant as specified in its charter)

California<br><br>(State or other jurisdiction of<br><br>incorporation)	001-38621<br><br>(Commission<br><br>File Number)	20-8856755<br><br>(I.R.S. Employer<br><br>Identification No.)
3701 Wilshire Boulevard, Suite 900<br><br>Los Angeles, California<br><br>(Address of principal offices)		90010<br><br>(Zip Code)

Registrant’s telephone number, including area code: (213) 210-2000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value	PCB	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02 Results of Operations and Financial Condition

On July 22, 2021, PCB Bancorp, a California corporation (the “Company”), issued a press release concerning its unaudited results for the second quarter of 2021. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

The information in this report set forth under this Item 2.02 shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly stated by specific reference in such filing.

Item 7.01 Regulation FD Disclosure

Attached as Exhibit 99.3, and incorporated herein by reference, is a copy of an investor presentation that may be utilized by management at future discussions with investors.

Item 8.01 Other Events

On July 22, 2021, the Company issued a press release announcing that on July 22, 2021, its Board of Directors declared a quarterly cash dividend of $0.12 per common share. The dividend will be paid on or about August 13, 2021, to shareholders of record as of the close of business on August 6, 2021. A copy of the press release is attached as Exhibit 99.2 to this Current Report and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press release of PCB Bancorp, issued July 22, 2021, concerning the result of operations and financial condition for the second quarter of 2021

99.2 Press release of PCB Bancorp, issued July 22, 2021, announcing the declaration of a quarterly cash dividend

99.3 Investor presentation of PCB Bancorp concerning the unaudited results for the second quarter of 2021

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press r elease of PCB Bancorp, issued July 22, 202 1 ,pcber20210722.htmc o n cerning the result s of operations and financial condition for the second quarter of 2021
99.2	Press release of PCB Bancorp, issued July 2 2 , 2021, announcing the declaration of a quarterly cash dividend
99.3	Investor presentation of PCB Bancorp concerning the unaudited results for the second quarter of 2021

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		PCB Bancorp
Date:	July 22, 2021	/s/ Timothy Chang
		Timothy Chang
		Executive Vice President and Chief Financial Officer

Document

Exhibit 99.1

PCB Bancorp Reports Record Earnings of $9.8 million for Q2 2021

Los Angeles, California - July 22, 2021 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of Pacific City Bank (the “Bank”), today reported net income of $9.8 million, or $0.64 per diluted common share for the second quarter of 2021, compared with $8.6 million, or $0.55 per diluted common share, for the previous quarter and $3.4 million, or $0.22 per diluted common share, for the year-ago quarter.

Q2 2021 Highlights

•Net income totaled $9.8 million or $0.64 per diluted common share;

◦The Company recorded a provision (reversal) for loan losses of $(934) thousand for the current quarter compared with $(1.1) million for the previous quarter and $3.9 million for the year-ago quarter.

◦Allowance for loan losses to total loans held-for-investment ratio was 1.45% at June 30, 2021 compared with 1.51% at March 31, 2021 and 1.30% at June 30, 2020. Excluding U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, allowance for loan losses to total loans held-for-investment ratio was 1.62% and 1.74% at June 30, 2021 and March 31, 2021, respectively.

◦Net interest income was $19.0 million for the current quarter compared with $17.8 million for the previous quarter and $15.4 million for the year-ago quarter. Net interest margin was 3.83% for the second quarter of 2021 compared with 3.70% for the previous quarter and 3.22% for the year-ago quarter.

◦Gain on sale of loans was $4.0 million for the current quarter compared with $1.3 million for the previous quarter and $1.5 million for the year-ago quarter.

•Total assets were $2.06 billion at June 30, 2021, an increase of $9.3 million, or 0.5%, from $2.05 billion at March 31, 2021 and an increase of $39.2 million, or 1.9%, from $2.02 billion at June 30, 2020;

•Loans held-for-investment, net of deferred costs (fees), were $1.72 billion at June 30, 2021, an increase of $33.7 million, or 2.0%, from $1.69 billion at March 31, 2021 and an increase of $166.1 million, or 10.7%, from $1.55 billion at June 30, 2020;

◦SBA PPP loans totaled $181.0 million and $218.7 million at June 30, 2021 and March 31, 2021, respectively.

◦Loans under modified terms related to COVID-19 totaled $16.2 million and $19.8 million at June 30, 2021 and March 31, 2021, respectively.

•Total deposits were $1.80 billion at June 30, 2021, an increase of $43.9 million from $1.75 billion at March 31, 2021 and an increase of $150.7 million, or 9.2%, from $1.65 billion at June 30, 2020;

•Announced a repurchase program on April 8, 2021 for the repurchase up to 5% of outstanding common stock, which represented 775,000 shares, through September 7, 2021. As of June 30, 2021, the Company repurchased and retired 646,334 shares of common stock; and

•Declared an increased cash dividend of $0.12 per share on July 22, 2021. This represents the 26th consecutive quarterly dividend paid by PCB Bancorp.

Henry Kim, President and Chief Executive Officer, commented, "We are pleased to announce another record quarter with net income of $9.8 million for the second quarter of 2021, an increase from $8.6 million in the first quarter of 2021. On a year-to-date basis, net income totaled $18.4 million for the first six months of 2021, up from $6.9 million in the first six months of 2020, a 165% increase. We continue to experience positive credit trends and improving economic conditions that resulted in additional release of loan loss reserves in the quarter. Our total loan portfolio excluding SBA PPP loans increased to $1.55 billion at June 30, 2021, an increase of $79.1 million, compared to March 31, 2021 and an increase of $125.9 million compared to June 30, 2020. During the second quarter of 2021, we prudently took advantage of our market opportunities to deploy excess liquidity into organic loans.”

Mr. Kim continued, "Net interest margin improved by thirteen basis points in the second quarter of 2021 as compared to the first quarter of 2021 primarily due to an expansion in loan interest income and a twelve basis point decline on average cost on total interest bearing liabilities. Although there are persistent uncertainties related to the evolving pandemic, our loan pipeline continues to be solid coupled with ample liquidity to expand our net interest income, and we remain positive in our outlook in delivering strong financial performance for the remainder of the year.

Financial Highlights (Unaudited)

( in thousands, except per share data)	Three Months Ended																		Six Months Ended
				3/31/2021				% Change			6/30/2020				% Change			6/30/2021				6/30/2020				% Change
Net income	$	9,844			$	8,560			15.0	%		$	3,367			192.4	%		$	18,404			$	6,939			165.2	%
Diluted earnings per common share	$	0.64			$	0.55			16.4	%		$	0.22			190.9	%		$	1.19			$	0.45			164.4	%
Net interest income	$	18,996			$	17,819			6.6	%		$	15,363			23.6	%		$	36,815			$	31,929			15.3	%
Provision (reversal) for loan losses	(934)				(1,147)				(18.6)	%		3,855				(124.2)	%		(2,081)				6,751				(130.8)	%
Noninterest income	5,151				2,857				80.3	%		2,918				76.5	%		8,008				4,944				62.0	%
Noninterest expense	11,139				9,669				15.2	%		9,696				14.9	%		20,808				20,263				2.7	%
Return on average assets (1)	1.96		%		1.75		%					0.69		%					1.85		%		0.75		%
Return on average shareholders’ equity (1), (2)	16.49		%		14.66		%					5.98		%					15.59		%		6.17		%
Net interest margin (1)	3.83		%		3.70		%					3.22		%					3.77		%		3.52		%
Efficiency ratio (3)	46.13		%		46.76		%					53.04		%					46.42		%		54.95		%

All values are in US Dollars.

($ in thousands, except per share data)	6/30/2021			3/31/2021			% Change		12/31/2020			% Change		6/30/2020			% Change
Total assets	$	2,060,003		$	2,050,672		0.5	%	$	1,922,853		7.1	%	$	2,020,777		1.9	%
Net loans held-for-investment	1,694,767			1,660,402			2.1	%	1,557,068			8.8	%	1,533,341			10.5	%
Total deposits	1,797,648			1,753,771			2.5	%	1,594,851			12.7	%	1,646,930			9.2	%
Book value per common share (2), (4)	$	16.09		$	15.53		3.6	%	$	15.19		5.9	%	$	14.78		8.9	%
Tier 1 leverage ratio (consolidated)	11.76		%	12.03		%			11.94		%			11.49		%
Total shareholders’ equity to total assets (2)	11.60		%	11.72		%			12.16		%			11.24		%

(1)Ratios are presented on an annualized basis.

(2)The Company did not have any intangible equity components for the presented periods.

(3)The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.

(4)The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares.

COVID-19 Pandemic

The ongoing COVID-19 pandemic, and governmental and societal responses thereto, have had a severe impact on recent global economic and market conditions, including significant disruption of, and volatility in, financial markets; global supply chain disruptions; and the institution of social distancing and shelter-in-place requirements that have resulted in temporary closures of many businesses, lost revenues, and increased unemployment throughout the U.S., but also specifically in California, where most of the Company’s operations and a large majority of its customers are located. While California’s and New York’s shelter-at-home limits were largely lifted in June 2021, the local economies in the Company’s primary markets have not yet fully recovered.

Since the beginning of the crisis, the Company has taken a number of steps to protect the safety of its employees and to support its customers. The Company has enabled its staff to work remotely and established safety measures within its bank premises and branches for both employees and customers.

In order to support its customers, the Company has been in close contact with its customers, assessing the level of impact on their businesses, and putting a process in place to evaluate each client’s specific situation and provide relief programs where appropriate. SBA PPP loans totaled $181.0 million (1,746 loans) and loans under modified terms related to the COVID-19 pandemic totaled $16.2 million (6 loan customers) as of June 30, 2021. The Company recognized $65.6 million in forgiveness for 1,061 SBA PPP loans as of June 30, 2021. On January 13, 2021, SBA began accepting applications for second draw PPP loans and the Company had funded $107.3 million (1,160 loans), net of origination fees and costs, as of June 30, 2021.

In addition, the Company has been monitoring its liquidity and capital closely. As of June 30, 2021, the Company maintained $174.6 million, or 8.5% of total assets, of cash and cash equivalents and $601.9 million, or 29.2% of total assets, of available borrowing capacity. All regulatory capital ratios were also well above the regulatory well capitalized requirements as of June 30, 2021.

At this time, the Company cannot estimate the long term impact of the COVID-19 pandemic, but these conditions are expected to impact its business, results of operations, and financial condition negatively.

Result of Operations (Unaudited)

Net Interest Income and Net Interest Margin

The following table presents the components of net interest income for the periods indicated:

	Three Months Ended													Six Months Ended
($ in thousands)	6/30/2021			3/31/2021			% Change		6/30/2020			% Change		6/30/2021			6/30/2020			% Change
Interest income/expense on
Loans	$	19,511		$	18,744		4.1	%	$	18,273		6.8	%	$	38,255		$	38,679		(1.1)	%
Investment securities	375			360			4.2	%	539			(30.4)	%	735			1,183			(37.9)	%
Other interest-earning assets	165			154			7.1	%	161			2.5	%	319			771			(58.6)	%
Total interest-earning assets	20,051			19,258			4.1	%	18,973			5.7	%	39,309			40,633			(3.3)	%
Interest-bearing deposits	1,000			1,311			(23.7)	%	3,409			(70.7)	%	2,311			8,401			(72.5)	%
Borrowings	55			128			(57.0)	%	201			(72.6)	%	183			303			(39.6)	%
Total interest-bearing liabilities	1,055			1,439			(26.7)	%	3,610			(70.8)	%	2,494			8,704			(71.3)	%
Net interest income	$	18,996		$	17,819		6.6	%	$	15,363		23.6	%	$	36,815		$	31,929		15.3	%
Average balance of
Loans	$	1,691,704		$	1,641,634		3.1	%	$	1,554,011		8.9	%	$	1,666,808		$	1,504,369		10.8	%
Investment securities	132,249			123,851			6.8	%	120,336			9.9	%	128,073			119,419			7.2	%
Other interest-earning assets	164,710			189,153			(12.9)	%	245,447			(32.9)	%	176,864			202,120			(12.5)	%
Total interest-earning assets	$	1,988,663		$	1,954,638		1.7	%	$	1,919,794		3.6	%	$	1,971,745		$	1,825,908		8.0	%
Interest-bearing deposits	$	1,026,937		$	1,053,845		(2.6)	%	$	1,109,307		(7.4)	%	$	1,040,316		$	1,119,503		(7.1)	%
Borrowings	19,012			75,556			(74.8)	%	130,330			(85.4)	%	47,128			77,723			(39.4)	%
Total interest-bearing liabilities	$	1,045,949		$	1,129,401		(7.4)	%	$	1,239,637		(15.6)	%	$	1,087,444		$	1,197,226		(9.2)	%
Total funding (1)	$	1,766,054		$	1,736,477		1.7	%	$	1,713,812		3.0	%	$	1,751,346		$	1,619,073		8.2	%
Annualized average yield/cost of
Loans	4.63		%	4.63		%			4.73		%			4.63		%	5.17		%
Investment securities	1.14		%	1.18		%			1.80		%			1.16		%	1.99		%
Other interest-earning assets	0.40		%	0.33		%			0.26		%			0.36		%	0.77		%
Total interest-earning assets	4.04		%	4.00		%			3.97		%			4.02		%	4.48		%
Interest-bearing deposits	0.39		%	0.50		%			1.24		%			0.45		%	1.51		%
Borrowings	1.16		%	0.69		%			0.62		%			0.78		%	0.78		%
Total interest-bearing liabilities	0.40		%	0.52		%			1.17		%			0.46		%	1.46		%
Net interest margin	3.83		%	3.70		%			3.22		%			3.77		%	3.52		%
Cost of total funding (1)	0.24		%	0.34		%			0.85		%			0.29		%	1.08		%
Supplementary information
Net accretion of discount on loans	$	1,012		$	745		35.8	%	$	530		90.9	%	$	1,757		$	1,558		12.8	%
Net amortization of deferred loan fees (costs)	$	1,459		$	1,220		19.6	%	$	649		124.8	%	$	2,679		$	770		247.9	%

(1)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

Loans. Average yields for the current and previous quarters were maintained at 4.63% as increases in net accretion of discount on loans from an increase in loan payoffs and net amortization of deferred loan fees were mostly offset by an increase in SBA PPP loans and lower interest rates on newly originated loans. Excluding SBA PPP loans, weighted-average interest rates on total loans and new loans funded during the current quarter were 4.31% and 3.77%, respectively, at June 30, 2021. The decreases in average yield for the current quarter and year-to-date period compared with the same periods of 2020 were primarily due to an increase in SBA PPP loans and a decrease in overall interest rates on loans from lower market rates, partially offset by increases in net accretion of discount on loans and net amortization of deferred loan fees.

The following table presents a composition of total loans by interest rate type accompanied with the weighted-average contractual rates as of the dates indicated:

	6/30/2021				3/31/2021				12/31/2020				6/30/2020
	% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate
Fixed rate loans	33.9	%	3.56	%	36.3	%	3.44	%	31.7	%	3.86	%	38.4	%	4.18	%
Hybrid rate loans	22.5	%	4.52	%	19.3	%	4.77	%	20.8	%	4.82	%	13.3	%	4.99	%
Variable rate loans	43.6	%	3.99	%	44.4	%	4.04	%	47.5	%	4.06	%	48.3	%	4.11	%

Investment Securities. The decreases in average yield for the current quarter and year-to-date period were primarily due to new investment securities purchased at lower market rates. During the current quarter and past 12-month period, the Company purchased investment securities of $19.3 million and $54.5 million, respectively.

Other Interest-Earning Assets. The increases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to an increase in dividend income on Federal Reserve Bank stock. The decrease in average yield for the current year-to-date period compared with the previous year-to-date period was primarily due to lower market rates. The decreases in average balance for the current quarter and year-to-date period were primarily due to an increase in loans, partially offset by an increase in deposits. The Company maintains most of its cash at the Federal Reserve Bank account. For additional detail, please see the discussion in “Loans” and “Deposits” under the “Balance Sheet” discussion.

Interest-Bearing Deposits. The decreases in average cost for the current quarter and year-to-date period were primarily due to the decreases in market rates.

Borrowings. The increases in average cost for the current quarter compared with the previous and year-ago quarters were primarily due to matured borrowings with lower interest rates during the current quarter. Matured FHLB advances totaled $30.0 million and $40.0 million, respectively, with a weighted-average rate of 0.32% and 0.47%, respectively, for the current quarter and year-to-date period. At June 30, 2021, the Company had a term FHLB advance of $10.0 million with an interest rate of 2.07% that matures on June 29, 2022.

Provision (reversal) for Loan Losses

Provision (reversal) for loan losses was $(934) thousand for the current quarter compared with $(1.1) million for the previous quarter and $3.9 million for the year-ago quarter. For the current and previous year-to-date periods, provision (reversal) for loan losses was $(2.1) million and $6.8 million, respectively. The reversals for the current and previous quarters were primarily due to a decrease in historical loss and qualitative adjustment factor allocations as a result of improving economic conditions. The Company recorded net charge-offs (recoveries) of $(309) thousand for the current quarter compared with $(151) thousand for the previous quarter and $281 thousand for the year-ago quarter. For the current and previous year-to-date periods, net charge-offs (recoveries) were $(460) thousand and $883 thousand, respectively.

The following table presents allowance for loan losses to total loans held-for-investment ratio for the dates indicated:

($ in thousands)	6/30/2021			3/31/2021			12/31/2020			6/30/2020
Total loans held-for-investment	$	1,719,656		$	1,685,916		$	1,583,578		$	1,553,589
Less: SBA PPP loans	181,019			218,709			135,654			133,675
Total loans held-for-investment, excluding SBA PPP loans	$	1,538,637		$	1,467,207		$	1,447,924		$	1,419,914
Allowance for loan losses	$	24,889		$	25,514		$	26,510		$	20,248
Allowance for loan losses to total loans held-for-investment	1.45		%	1.51		%	1.67		%	1.30		%
Allowance for loan losses to total loans held-for-investment, excluding SBA PPP loans	1.62		%	1.74		%	1.83		%	1.43		%

Noninterest Income

The following table presents the components of noninterest income for the periods indicated:

	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2021		3/31/2021		% Change		6/30/2020		% Change		6/30/2021		6/30/2020		% Change
Gain on sale of loans	$	3,967	$	1,322	200.1	%	$	1,498	164.8	%	$	5,289	$	2,223	137.9	%
Service charges and fees on deposits	302		293		3.1	%	275		9.8	%	595		665		(10.5)	%
Loan servicing income	545		882		(38.2)	%	902		(39.6)	%	1,427		1,456		(2.0)	%
Other income	337		360		(6.4)	%	243		38.7	%	697		600		16.2	%
Total noninterest income	$	5,151	$	2,857	80.3	%	$	2,918	76.5	%	$	8,008	$	4,944	62.0	%

Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:

	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2021		3/31/2021		% Change		6/30/2020		% Change		6/30/2021		6/30/2020		% Change
Gain on sale of SBA loans
Sold loan balance	$	34,107	$	10,919	212.4	%	$	27,066	26.0	%	$	45,026	$	38,781	16.1	%
Premium received	4,172		1,309		218.7	%	2,042		104.3	%	5,481		3,098		76.9	%
Gain recognized	3,954		1,195		230.9	%	1,448		173.1	%	5,149		2,152		139.3	%
Gain on sale of residential property loans
Sold loan balance	$	1,615	$	7,907	(79.6)	%	$	6,118	(73.6)	%	$	9,522	$	8,197	16.2	%
Gain recognized	13		127		(89.8)	%	50		(74.0)	%	140		71		97.2	%

The increases in gain on sale of SBA loans for the current quarter and year-to-date period were primarily due to increased origination and sales of SBA loans and higher premiums from the secondary market. The Company sold certain commercial property loans of $1.7 million at par during the current quarter.

Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:

	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2021		3/31/2021		% Change		6/30/2020		% Change		6/30/2021		6/30/2020		% Change
Loan servicing income
Servicing income received	$	1,124	$	1,273	(11.7)	%	$	1,294	(13.1)	%	$	2,397	$	2,452	(2.2)	%
Servicing assets amortization	(579)		(391)		48.1	%	(392)		47.7	%	(970)		(996)		(2.6)	%
Loan servicing income	$	545	$	882	(38.2)	%	$	902	(39.6)	%	$	1,427	$	1,456	(2.0)	%
Underlying loans at end of period	$	492,130	$	492,981	(0.2)	%	$	494,000	(0.4)	%	$	492,130	$	494,000	(0.4)	%

The Company services SBA loans and certain residential property loans that are sold to the secondary market. The decreases for the current quarter and year-to-date period were primarily due to a decrease in servicing income received and an increase in servicing asset amortization from an increase in loan payoffs.

Noninterest Expense

The following table presents the components of noninterest expense for the periods indicated:

	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2021		3/31/2021		% Change		6/30/2020		% Change		6/30/2021		6/30/2020		% Change
Salaries and employee benefits	$	7,125	$	6,182	15.3	%	$	5,761	23.7	%	$	13,307	$	12,312	8.1	%
Occupancy and equipment	1,388		1,371		1.2	%	1,400		(0.9)	%	2,759		2,780		(0.8)	%
Professional fees	658		494		33.2	%	509		29.3	%	1,152		1,306		(11.8)	%
Marketing and business promotion	516		138		273.9	%	548		(5.8)	%	654		727		(10.0)	%
Data processing	396		377		5.0	%	366		8.2	%	773		724		6.8	%
Director fees and expenses	151		138		9.4	%	107		41.1	%	289		328		(11.9)	%
Regulatory assessments	179		208		(13.9)	%	242		(26.0)	%	387		461		(16.1)	%
Other expenses	726		761		(4.6)	%	763		(4.8)	%	1,487		1,625		(8.5)	%
Total noninterest expense	$	11,139	$	9,669	15.2	%	$	9,696	14.9	%	$	20,808	$	20,263	2.7	%

Salaries and Employee Benefits. The increase for the current quarter compared with the previous quarter was primarily due to a decrease in direct loan origination costs, which offsets the recognition of salaries and benefits expense, and an increase in other employee benefits, partially offset by a decrease in vacation accrual. The increases for the current quarter and year-to-date period compared with the same periods of 2020 were primarily due to a decrease in direct loan origination costs and an increase in bonus accrual, partially offset by decreases in vacation accrual and other employee benefits. Direct loan origination costs related to SBA PPP loan production totaled $62 thousand, $750 thousand, and $1.1 million for the current, previous, and year-ago quarters, respectively, and $812 thousand and $1.1 million for the current and previous year-to-date periods, respectively.

Professional Fees. The increases for the current quarter compared with the previous and year-ago quarter were primarily due to increases in expenses related to internal audit. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to decreases in expenses related to the Bank’s Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”) compliance enhancements. The consent order related to the BSA/AML compliance was terminated on September 30, 2020.

Marketing and business promotion. The increase for the current quarter compared with the previous quarter was primarily due to an increase in advertisement during the current quarter.

Director fees and expense. The increase for the current quarter compared with the year-ago quarter was primarily due to the Board of Directors’ decision to temporarily decrease fees during the year-ago quarter. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to a severance payment for a former director in the first quarter of 2020.

Regulatory Assessments. The decreases for the current quarter and year-to-date period were primarily due to a decrease in assessment rate and the exclusion of SBA PPP loans from the assessment base, partially offset by an increase in balance sheet growth.

Balance Sheet (Unaudited)

Total assets were $2.06 billion at June 30, 2021, an increase of $9.3 million, or 0.5%, from $2.05 billion at March 31, 2021 and an increase of $39.2 million, or 1.9%, from $2.02 billion at June 30, 2020. The increases for the current quarter and year-to-date period were primarily due to increases in loans held-for-investment and investment securities, partially offset by a decrease in cash and cash equivalents.

The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment, net of deferred costs (fees)) as of the dates indicated:

($ in thousands)	6/30/2021		3/31/2021		% Change		12/31/2020		% Change		6/30/2020		% Change
Real estate loans
Commercial property	$	997,918	$	922,536	8.2	%	$	880,736	13.3	%	$	813,409	22.7	%
Residential property	196,983		190,990		3.1	%	198,431		(0.7)	%	223,923		(12.0)	%
SBA property	124,251		125,989		(1.4)	%	126,570		(1.8)	%	122,675		1.3	%
Construction	13,475		13,151		2.5	%	15,199		(11.3)	%	20,432		(34.0)	%
Commercial and industrial loans
Commercial term	74,503		80,361		(7.3)	%	87,250		(14.6)	%	98,936		(24.7)	%
Commercial lines of credit	90,286		91,970		(1.8)	%	96,087		(6.0)	%	96,339		(6.3)	%
SBA commercial term	19,614		21,078		(6.9)	%	21,878		(10.3)	%	22,650		(13.4)	%
SBA PPP	181,019		218,709		(17.2)	%	135,654		33.4	%	133,675		35.4	%
Other consumer loans	21,607		21,132		2.2	%	21,773		(0.8)	%	21,550		0.3	%
Loans held-for-investment	1,719,656		1,685,916		2.0	%	1,583,578		8.6	%	1,553,589		10.7	%
Loans held-for-sale	11,255		3,569		215.4	%	1,979		468.7	%	4,102		174.4	%
Total loans	$	1,730,911	$	1,689,485	2.5	%	$	1,585,557	9.2	%	$	1,557,691	11.1	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding of $171.1 million and advances on lines of credit of $28.6 million, partially offset by pay-downs and pay-offs of $164.1 million. The increase in loans held-for-investment for the current year-to-date period was primarily due to new funding of $361.5 million and advances on lines of credit of $56.4 million, partially offset by pay-downs and pay-offs of $279.9 million. SBA PPP loan and commercial property loan production contributed significantly to the Company’s loan growth for the current year-to-date period.

The increase in loans held-for-sale for the current quarter was primarily due to new funding of $43.2 million, partially offset by sales of $37.4 million. The increase in loans held-for-sale for the current year-to-date period was primarily due to new funding of $63.6 million, partially offset by sales of $56.3 million.

The following table presents a composition of commitments to extend credit as of the dates indicated:

($ in thousands)	6/30/2021		3/31/2021		% Change		12/31/2020		% Change		6/30/2020		% Change
Real estate loans
Commercial property	$	15,277	$	20,003	(23.6)	%	$	21,016	(27.3)	%	$	16,962	(9.9)	%
SBA property	6,191		3,677		68.4	%	540		1,046.5	%	220		2,714.1	%
Construction	6,233		13,588		(54.1)	%	13,986		(55.4)	%	16,451		(62.1)	%
Commercial and industrial loans
Commercial term	2,950		1,000		195.0	%	1,000		195.0	%	1,000		195.0	%
Commercial lines of credit	164,648		168,381		(2.2)	%	156,870		5.0	%	159,753		3.1	%
SBA commercial term	—		—		—	%	—		—	%	—		—	%
Other consumer loans	118		96		22.9	%	84		40.5	%	45		162.2	%
Total commitments to extend credit	$	195,417	$	206,745	(5.5)	%	$	193,496	1.0	%	$	194,431	0.5	%

Credit Quality

The following table presents a summary of non-performing loans, non-performing assets and classified assets as of the dates indicated:

($ in thousands)	6/30/2021			3/31/2021			% Change		12/31/2020			% Change		6/30/2020			% Change
Nonaccrual loans
Real estate loans
Commercial property	$	—		$	—		—	%	$	524		(100.0)	%	$	—		—	%
Residential property	—			—			—	%	189			(100.0)	%	—			—	%
SBA property	781			841			(7.1)	%	885			(11.8)	%	1,351			(42.2)	%
Commercial and industrial loans
Commercial lines of credit	—			—			—	%	904			(100.0)	%	1,968			(100.0)	%
SBA commercial term	600			568			5.6	%	595			0.8	%	381			57.5	%
Other consumer loans	65			52			25.0	%	66			(1.5)	%	70			(7.1)	%
Total nonaccrual loans held-for-investment	1,446			1,461			(1.0)	%	3,163			(54.3)	%	3,770			(61.6)	%
Loans past due 90 days or more and still accruing	—			—			—	%	—			—	%	696			(100.0)	%
Non-performing loans (“NPLs”)	1,446			1,461			(1.0)	%	3,163			(54.3)	%	4,466			(67.6)	%
Other real estate owned (“OREO”)	—			2,336			(100.0)	%	1,401			(100.0)	%	376			(100.0)	%
Non-performing assets (“NPAs”)	$	1,446		$	3,797		(61.9)	%	$	4,564		(68.3)	%	$	4,842		(70.1)	%
Loans past due and still accruing
Past due 30 to 59 days	$	227		$	56		305.4	%	$	302		(24.8)	%	$	311		(27.0)	%
Past due 60 to 89 days	—			52			(100.0)	%	36			(100.0)	%	113			(100.0)	%
Past due 90 days or more	—			—			—	%	—			—	%	696			(100.0)	%
Total loans past due and still accruing	$	227		$	108		110.2	%	338			(32.8)	%	$	1,120		(79.7)	%
Troubled debt restructurings (“TDRs”)
Accruing TDRs	$	605		$	620		(2.4)	%	$	634		(4.6)	%	$	669		(9.6)	%
Nonaccrual TDRs	30			33			(9.1)	%	5			500.0	%	40			(25.0)	%
Total TDRs	$	635		$	653		(2.8)	%	$	639		(0.6)	%	$	709		(10.4)	%
Special mention loans	$	18,238		$	17,997		1.3	%	$	16,461		10.8	%	$	71		25,587.3	%
Classified assets
Classified loans	$	9,666		$	7,090		36.3	%	$	10,130		(4.6)	%	$	5,809		66.4	%
OREO	—			2,336			(100.0)	%	1,401			(100.0)	%	376			(100.0)	%
Classified assets	$	9,666		$	9,426		2.5	%	$	11,531		(16.2)	%	$	6,185		56.3	%
NPLs to loans held-for-investment	0.08		%	0.09		%			0.20		%			0.29		%
NPAs to total assets	0.07		%	0.19		%			0.24		%			0.24		%
Classified assets to total assets	0.47		%	0.46		%			0.60		%			0.31		%

Loans that are granted modifications related to the COVID-19 pandemic in excess of 6 months, on a cumulative basis, are classified as special mention or classified.

Special mention loans included $14.7 million, $16.4 million and $14.9 million of loans under modified terms related to the COVID-19 pandemic at June 30, 2021, March 31, 2021 and December 31, 2020, respectively. The special mention loans under modified terms related to the COVID-19 pandemic included commercial property loans of $11.8 million and commercial term loans of $2.9 million at June 30, 2021.

Classified loans included $1.2 million, $1.2 million and $1.9 million of loans under modified terms related to the COVID-19 pandemic at June 30, 2021, March 31, 2021 and December 31, 2020, respectively.

Loan Modifications Related to the COVID-19 Pandemic

The Company provided modifications, including interest only payments or payment deferrals, to customers that were adversely affected by the COVID-19 pandemic. The loan modifications met all criteria under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Therefore, the modified loans were not considered TDRs. Total loans under modified terms related to the COVID-19 pandemic were $16.2 million at June 30, 2021, a decrease of $19.9 million, or 55.1%, from $36.1 million at December 31, 2020 and a decrease of $467.8 million, or 96.7%, from $484.0 million at June 30, 2020.

The following table presents a summary of loans under modified terms related to the COVID-19 pandemic by portfolio segment as of June 30, 2021:

	Modification Type						Weighted-Average Contractual Rate		Accrued Interest Receivable
($ in thousands)	Payment Deferment		Interest Only Payment		Total
Real estate loans
Commercial property	$	—	$	11,831	$	11,831	3.59	%	$	74
Residential property	328		—		328		4.75	%	8
Commercial and industrial loans
Commercial term	—		4,042		4,042		3.77	%	84
Total	$	328	$	15,873	$	16,201	3.65	%	$	166

Investment Securities

Total investment securities were $135.5 million at June 30, 2021, an increase of $8.4 million, or 6.6%, from $127.1 million at March 31, 2021 and an increase of $7.4 million, or 5.8%, from $128.0 million at June 30, 2020. The increase in investment securities for the current quarter was primarily due to purchases of $19.3 million, partially offset by principal pay-downs and calls of $11.1 million and net premium amortization of $280 thousand. The increase in investment securities for the current year-to-date period was primarily due to purchases of $39.5 million, partially offset by principal pay-downs and calls of $22.8 million and net premium amortization of $590 thousand.

Deposits

The following table presents the Company’s deposit mix as of the dates indicated:

	6/30/2021				3/31/2021				12/31/2020				6/30/2020
($ in thousands)	Amount		% to Total		Amount		% to Total		Amount		% to Total		Amount		% to Total
Noninterest-bearing demand deposits	$	795,741	44.3	%	$	715,719	40.8	%	$	538,009	33.7	%	$	551,415	33.5	%
Interest-bearing deposits
Savings	11,671		0.6	%	11,271		0.6	%	10,481		0.7	%	8,258		0.5	%
NOW	21,725		1.2	%	19,380		1.1	%	21,604		1.4	%	21,173		1.3	%
Retail money market accounts	358,575		19.9	%	381,704		21.7	%	351,739		22.0	%	339,444		20.6	%
Brokered money market accounts	4		0.1	%	4		0.1	%	25,002		1.6	%	10		0.1	%
Retail time deposits of
$250,000 or less	271,531		15.1	%	276,232		15.8	%	299,431		18.7	%	347,382		21.0	%
More than $250,000	173,401		9.6	%	166,845		9.5	%	168,683		10.6	%	170,180		10.3	%
Time deposits from internet rate service providers	—		—	%	17,616		1.0	%	24,902		1.6	%	37,068		2.3	%
State and brokered time deposits	165,000		9.2	%	165,000		9.4	%	155,000		9.7	%	172,000		10.4	%
Total interest-bearing deposits	1,001,907		55.7	%	1,038,052		59.2	%	1,056,842		66.3	%	1,095,515		66.5	%
Total deposits	$	1,797,648	100.0	%	$	1,753,771	100.0	%	$	1,594,851	100.0	%	$	1,646,930	100.0	%

The increase in noninterest-bearing demand deposits for the current year-to-date period was primarily due to the overall liquid deposit market. During the current year-to-date period, a total of $93.9 million of SBA PPP loans were funded through the Bank’s noninterest-bearing demand deposits and deposit customers also received $93.6 million of SBA Economic Injury Disaster Loans and SBA Revitalization Funds.

The increase in retail time deposits for the current quarter was primarily due to new accounts of $27.6 million, renewals of the matured accounts of $96.6 million, and balance increases of $4.0 million, partially offset by matured and closed accounts of $126.3 million. The decrease in retail time deposits for the current year-to-date period was primarily due to matured and closed accounts of $321.9 million, partially offset by new accounts of $59.3 million, renewals of the matured accounts of $232.7 million, and balance increases of $6.7 million.

Liquidity

The following table presents a summary of the Company’s liquidity position as of June 30, 2021:

($ in thousands)	6/30/2021
Cash and cash equivalents	$	174,621
Cash and cash equivalents to total assets	8.5		%
Available borrowing capacity
FHLB advances	$	502,653
Federal Reserve Discount Window	34,224
Overnight federal funds lines	65,000
Total	$	601,877
Total available borrowing capacity to total assets	29.2		%

Shareholders’ Equity

Shareholders’ equity was $238.9 million at June 30, 2021, a decrease of $1.3 million, or 0.6%, from $240.3 million at March 31, 2021 and an increase of $11.7 million, or 5.2%, from $227.2 million at June 30, 2020. The decrease for the current quarter was primarily due to repurchases of common stock of $10.3 million and cash dividends declared on common stock of $1.5 million, partially offset by net income and an increase in accumulated other comprehensive income. The increase for the current year-to-date period was primarily due to net income, partially offset by repurchases of common stock of $10.3 million, cash dividends declared on common stock of $3.1 million and a decrease in accumulated other comprehensive income.

On April 8, 2021, the Company’s Board of Directors approved a repurchase program authorizing the repurchase of up to 5% of the Company’s outstanding common stock as of the date of the board meeting, which represented 775,000 shares, through September 7, 2021. As of June 30, 2021, the Company repurchased and retired 646,334 shares of common stock totaling $10.3 million at a weighted-average price of $15.99 per share.

Capital Ratios

Based on changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets in August 2018, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion. The following table presents capital ratios for the Company and the Bank as of dates indicated:

	6/30/2021		3/31/2021		12/31/2020		6/30/2020		Well Capitalized Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)	15.17	%	15.92	%	15.97	%	15.83	%	N/A
Total capital (to risk-weighted assets)	16.43	%	17.17	%	17.22	%	17.09	%	N/A
Tier 1 capital (to risk-weighted assets)	15.17	%	15.92	%	15.97	%	15.83	%	N/A
Tier 1 capital (to average assets)	11.76	%	12.03	%	11.94	%	11.49	%	N/A
Pacific City Bank
Common tier 1 capital (to risk-weighted assets)	14.88	%	15.62	%	15.70	%	15.58	%	6.5	%
Total capital (to risk-weighted assets)	16.13	%	16.88	%	16.95	%	16.83	%	10.0	%
Tier 1 capital (to risk-weighted assets)	14.88	%	15.62	%	15.70	%	15.58	%	8.0	%
Tier 1 capital (to average assets)	11.53	%	11.81	%	11.74	%	11.30	%	5.0	%

About PCB Bancorp

PCB Bancorp, formerly known as Pacific City Financial Corporation, is the bank holding company for Pacific City Bank, a California state chartered bank, offering a full suite of commercial banking services to small to medium-sized businesses, individuals and professionals, primarily in Southern California, and predominantly in Korean-American and other minority communities.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to our borrowers’ actual payment performance as loan deferrals related to the COVID-19 pandemic expire, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to the COVID-19 pandemic, including the potential adverse impact of loan modifications and payment deferrals implemented consistent with recent regulatory guidance, and the general economic uncertainty caused by the COVID-19 pandemic, and government and societal responses thereto. These and other important factors are detailed in various securities law filings made periodically by the Company, copies of which are available from the Company without charge. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

Contact:

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

PCB Bancorp and Subsidiary

Consolidated Balance Sheets (Unaudited)

($ in thousands, except share and per share data)

	6/30/2021			3/31/2021			% Change		12/31/2020			% Change		6/30/2020			% Change
Assets
Cash and due from banks	$	18,417		$	16,764		9.9	%	$	19,605		(6.1)	%	$	18,255		0.9	%
Interest-bearing deposits in other financial institutions	156,204			195,016			(19.9)	%	174,493			(10.5)	%	289,348			(46.0)	%
Total cash and cash equivalents	174,621			211,780			(17.5)	%	194,098			(10.0)	%	307,603			(43.2)	%
Securities available-for-sale, at fair value	135,479			127,114			6.6	%	120,527			12.4	%	128,049			5.8	%
Loans held-for-sale	11,255			3,569			215.4	%	1,979			468.7	%	4,102			174.4	%
Loans held-for-investment, net of deferred loan costs (fees)	1,719,656			1,685,916			2.0	%	1,583,578			8.6	%	1,553,589			10.7	%
Allowance for loan losses	(24,889)			(25,514)			(2.4)	%	(26,510)			(6.1)	%	(20,248)			22.9	%
Net loans held-for-investment	1,694,767			1,660,402			2.1	%	1,557,068			8.8	%	1,533,341			10.5	%
Premises and equipment, net	3,576			3,774			(5.2)	%	4,048			(11.7)	%	4,542			(21.3)	%
Federal Home Loan Bank and other bank stock	8,577			8,447			1.5	%	8,447			1.5	%	8,447			1.5	%
Other real estate owned, net	—			2,336			(100.0)	%	1,401			(100.0)	%	376			(100.0)	%
Deferred tax assets, net	7,892			8,170			(3.4)	%	8,120			(2.8)	%	6,347			24.3	%
Servicing assets	6,482			6,253			3.7	%	6,400			1.3	%	6,399			1.3	%
Operating lease assets	6,595			7,145			(7.7)	%	7,616			(13.4)	%	7,843			(15.9)	%
Accrued interest receivable	6,741			7,523			(10.4)	%	9,334			(27.8)	%	9,498			(29.0)	%
Other assets	4,018			4,159			(3.4)	%	3,815			5.3	%	4,230			(5.0)	%
Total assets	$	2,060,003		$	2,050,672		0.5	%	$	1,922,853		7.1	%	$	2,020,777		1.9	%
Liabilities
Deposits
Noninterest-bearing demand	$	795,741		$	715,719		11.2	%	$	538,009		47.9	%	$	551,415		44.3	%
Savings, NOW and money market accounts	391,975			412,359			(4.9)	%	408,826			(4.1)	%	368,885			6.3	%
Time deposits of $250,000 or less	336,531			358,848			(6.2)	%	379,333			(11.3)	%	466,450			(27.9)	%
Time deposits of more than $250,000	273,401			266,845			2.5	%	268,683			1.8	%	260,180			5.1	%
Total deposits	1,797,648			1,753,771			2.5	%	1,594,851			12.7	%	1,646,930			9.2	%
Federal Home Loan Bank advances	10,000			40,000			(75.0)	%	80,000			(87.5)	%	130,000			(92.3)	%
Operating lease liabilities	7,338			7,935			(7.5)	%	8,455			(13.2)	%	8,758			(16.2)	%
Accrued interest payable and other liabilities	6,076			8,703			(30.2)	%	5,759			5.5	%	7,856			(22.7)	%
Total liabilities	1,821,062			1,810,409			0.6	%	1,689,065			7.8	%	1,793,544			1.5	%
Commitments and contingent liabilities
Shareholders’ equity
Common stock, no par value	154,796			164,698			(6.0)	%	164,140			(5.7)	%	163,759			(5.5)	%
Retained earnings	83,002			74,707			11.1	%	67,692			22.6	%	61,531			34.9	%
Accumulated other comprehensive income, net	1,143			858			33.2	%	1,956			(41.6)	%	1,942			(41.1)	%
Total shareholders’ equity	238,941			240,263			(0.6)	%	233,788			2.2	%	227,233			5.2	%
Total liabilities and shareholders’ equity	$	2,060,003		$	2,050,672		0.5	%	$	1,922,853		7.1	%	$	2,020,777		1.9	%
Outstanding common shares	14,854,315			15,468,242					15,385,878					15,377,935
Book value per common share (1)	$	16.09		$	15.53				$	15.19				$	14.78
Total loan to total deposit ratio	96.29		%	96.33		%			99.42		%			94.58		%
Noninterest-bearing deposits to total deposits	44.27		%	40.81		%			33.73		%			33.48		%

(1)The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company did not have any intangible equity components for the presented periods.

PCB Bancorp and Subsidiary

Consolidated Statements of Income (Unaudited)

($ in thousands, except share and per share data)

	Three Months Ended													Six Months Ended
	6/30/2021			3/31/2021			% Change		6/30/2020			% Change		6/30/2021			6/30/2020			% Change
Interest and dividend income
Loans, including fees	$	19,511		$	18,744		4.1	%	$	18,273		6.8	%	$	38,255		$	38,679		(1.1)	%
Investment securities	375			360			4.2	%	539			(30.4)	%	735			1,183			(37.9)	%
Other interest-earning assets	165			154			7.1	%	161			2.5	%	319			771			(58.6)	%
Total interest income	20,051			19,258			4.1	%	18,973			5.7	%	39,309			40,633			(3.3)	%
Interest expense
Deposits	1,000			1,311			(23.7)	%	3,409			(70.7)	%	2,311			8,401			(72.5)	%
Other borrowings	55			128			(57.0)	%	201			(72.6)	%	183			303			(39.6)	%
Total interest expense	1,055			1,439			(26.7)	%	3,610			(70.8)	%	2,494			8,704			(71.3)	%
Net interest income	18,996			17,819			6.6	%	15,363			23.6	%	36,815			31,929			15.3	%
Provision (reversal) for loan losses	(934)			(1,147)			(18.6)	%	3,855			(124.2)	%	(2,081)			6,751			(130.8)	%
Net interest income after provision (reversal) for loan losses	19,930			18,966			5.1	%	11,508			73.2	%	38,896			25,178			54.5	%
Noninterest income
Gain on sale of loans	3,967			1,322			200.1	%	1,498			164.8	%	5,289			2,223			137.9	%
Service charges and fees on deposits	302			293			3.1	%	275			9.8	%	595			665			(10.5)	%
Loan servicing income	545			882			(38.2)	%	902			(39.6)	%	1,427			1,456			(2.0)	%
Other income	337			360			(6.4)	%	243			38.7	%	697			600			16.2	%
Total noninterest income	5,151			2,857			80.3	%	2,918			76.5	%	8,008			4,944			62.0	%
Noninterest expense
Salaries and employee benefits	7,125			6,182			15.3	%	5,761			23.7	%	13,307			12,312			8.1	%
Occupancy and equipment	1,388			1,371			1.2	%	1,400			(0.9)	%	2,759			2,780			(0.8)	%
Professional fees	658			494			33.2	%	509			29.3	%	1,152			1,306			(11.8)	%
Marketing and business promotion	516			138			273.9	%	548			(5.8)	%	654			727			(10.0)	%
Data processing	396			377			5.0	%	366			8.2	%	773			724			6.8	%
Director fees and expenses	151			138			9.4	%	107			41.1	%	289			328			(11.9)	%
Regulatory assessments	179			208			(13.9)	%	242			(26.0)	%	387			461			(16.1)	%
Other expenses	726			761			(4.6)	%	763			(4.8)	%	1,487			1,625			(8.5)	%
Total noninterest expense	11,139			9,669			15.2	%	9,696			14.9	%	20,808			20,263			2.7	%
Income before income taxes	13,942			12,154			14.7	%	4,730			194.8	%	26,096			9,859			164.7	%
Income tax expense	4,098			3,594			14.0	%	1,363			200.7	%	7,692			2,920			163.4	%
Net income	$	9,844		$	8,560		15.0	%	$	3,367		192.4	%	$	18,404		$	6,939		165.2	%
Earnings per common share
Basic	$	0.65		$	0.55				$	0.22				$	1.20		$	0.45
Diluted	$	0.64		$	0.55				$	0.22				$	1.19		$	0.45
Average common shares
Basic	15,115,561			15,384,343					15,337,405					15,249,210			15,421,552
Diluted	15,309,873			15,533,608					15,373,655					15,425,308			15,522,626
Dividend paid per common share	$	0.10		$	0.10				$	0.10				$	0.20		$	0.20
Return on average assets (1)	1.96		%	1.75		%			0.69		%			1.85		%	0.75		%
Return on average shareholders’ equity (1), (2)	16.49		%	14.66		%			5.98		%			15.59		%	6.17		%
Efficiency ratio (3)	46.13		%	46.76		%			53.04		%			46.42		%	54.95		%

(1)Ratios are presented on an annualized basis.

(2)The Company did not have any intangible equity components for the presented periods.

(3)The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.

PCB Bancorp and Subsidiary

Average Balance, Average Yield, and Average Rate (Unaudited)

($ in thousands)

	Three Months Ended
	6/30/2021						3/31/2021						6/30/2020
	Average Balance		Interest Income/ Expense		Avg. Yield/Rate		Average Balance		Interest Income/ Expense		Avg. Yield/Rate		Average Balance		Interest Income/ Expense		Avg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)	$	1,691,704	$	19,511	4.63	%	$	1,641,634	$	18,744	4.63	%	$	1,554,011	$	18,273	4.73	%
Mortgage-backed securities	92,732		233		1.01	%	81,486		215		1.07	%	63,692		317		2.00	%
Collateralized mortgage obligation	22,929		54		0.94	%	24,888		57		0.93	%	37,745		122		1.30	%
SBA loan pool securities	10,828		51		1.89	%	11,673		52		1.81	%	13,189		62		1.89	%
Municipal bonds (2)	5,760		37		2.58	%	5,804		36		2.52	%	5,710		38		2.68	%
Other interest-earning assets	164,710		165		0.40	%	189,153		154		0.33	%	245,447		161		0.26	%
Total interest-earning assets	1,988,663		20,051		4.04	%	1,954,638		19,258		4.00	%	1,919,794		18,973		3.97	%
Noninterest-earning assets
Cash and cash equivalents	19,080						19,072						16,031
Allowance for loan losses	(25,559)						(26,870)						(17,320)
Other assets	36,605						40,377						37,959
Total noninterest-earning assets	30,126						32,579						36,670
Total assets	$	2,018,789					$	1,987,217					$	1,956,464
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	400,314	317		0.32	%	$	407,623	333		0.33	%	$	371,992	548		0.59	%
Savings	11,588		1		0.03	%	10,609		1		0.04	%	6,966		3		0.17	%
Time deposits	615,035		682		0.44	%	635,613		977		0.62	%	730,349		2,858		1.57	%
Total interest-bearing deposits	1,026,937		1,000		0.39	%	1,053,845		1,311		0.50	%	1,109,307		3,409		1.24	%
Federal Home Loan Bank advances	19,012		55		1.16	%	75,556		128		0.69	%	130,330		201		0.62	%
Total interest-bearing liabilities	1,045,949		1,055		0.40	%	1,129,401		1,439		0.52	%	1,239,637		3,610		1.17	%
Noninterest-bearing liabilities
Noninterest-bearing demand	720,105						607,076						474,175
Other liabilities	13,287						13,950						16,198
Total noninterest-bearing liabilities	733,392						621,026						490,373
Total liabilities	1,779,341						1,750,427						1,730,010
Total shareholders’ equity	239,448						236,790						226,454
Total liabilities and shareholders’ equity	$	2,018,789					$	1,987,217					$	1,956,464
Net interest income			$	18,996					$	17,819					$	15,363
Net interest spread (3)					3.64	%					3.48	%					2.80	%
Net interest margin (4)					3.83	%					3.70	%					3.22	%
Total deposits	$	1,747,042	$	1,000	0.23	%	$	1,660,921	$	1,311	0.32	%	$	1,583,482	$	3,409	0.87	%
Total funding (5)	$	1,766,054	$	1,055	0.24	%	$	1,736,477	$	1,439	0.34	%	$	1,713,812	$	3,610	0.85	%

(1)Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan costs (fees).

(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.

(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.

(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.

(5)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

PCB Bancorp and Subsidiary

Average Balance, Average Yield, and Average Rate (Unaudited)

($ in thousands)

	Six Months Ended
	6/30/2021						6/30/2020
	Average Balance		Interest Income/ Expense		Avg. Yield/Rate		Average Balance		Interest Income/ Expense		Avg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)	$	1,666,808	$	38,255	4.63	%	$	1,504,369	$	38,679	5.17	%
Mortgage-backed securities	87,140		448		1.04	%	60,597		646		2.14	%
Collateralized mortgage obligation	23,903		111		0.94	%	39,577		320		1.63	%
SBA loan pool securities	11,248		103		1.85	%	13,531		141		2.10	%
Municipal bonds (2)	5,782		73		2.55	%	5,714		76		2.67	%
Other interest-earning assets	176,864		319		0.36	%	202,120		771		0.77	%
Total interest-earning assets	1,971,745		39,309		4.02	%	1,825,908		40,633		4.48	%
Noninterest-earning assets
Cash and cash equivalents	19,076						17,441
Allowance for loan losses	(26,211)						(15,860)
Other assets	38,481						36,136
Total noninterest-earning assets	31,346						37,717
Total assets	$	2,003,091					$	1,863,625
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	403,948	650		0.32	%	$	368,298	1,667		0.91	%
Savings	11,101		2		0.04	%	6,790		6		0.18	%
Time deposits	625,267		1,659		0.54	%	744,415		6,728		1.82	%
Total interest-bearing deposits	1,040,316		2,311		0.45	%	1,119,503		8,401		1.51	%
Federal Home Loan Bank advances	47,128		183		0.78	%	77,723		303		0.78	%
Total interest-bearing liabilities	1,087,444		2,494		0.46	%	1,197,226		8,704		1.46	%
Noninterest-bearing liabilities
Noninterest-bearing demand	663,902						421,847
Other liabilities	13,618						18,281
Total noninterest-bearing liabilities	677,520						440,128
Total liabilities	1,764,964						1,637,354
Total shareholders’ equity	238,127						226,271
Total liabilities and shareholders’ equity	$	2,003,091					$	1,863,625
Net interest income			$	36,815					$	31,929
Net interest spread (3)					3.56	%					3.02	%
Net interest margin (4)					3.77	%					3.52	%
Total deposits	$	1,704,218	$	2,311	0.27	%	$	1,541,350	$	8,401	1.10	%
Total funding (5)	$	1,751,346	$	2,494	0.29	%	$	1,619,073	$	8,704	1.08	%

(1)Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan costs (fees).

(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.

(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.

(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.

Document

Exhibit 99.2

PCB Bancorp Declares Increased Quarterly Cash Dividend of $0.12 Per Common Share

Los Angeles, California - July 22, 2021 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of Pacific City Bank (the “Bank”), announced that on July 22, 2021, its Board of Directors declared a quarterly cash dividend of $0.12 per common share. The dividend will be paid on or about August 13, 2021, to shareholders of record as of the close of business on August 6, 2021.

“I am pleased to announce another increase in our quarterly cash dividend to $0.12 per common share from $0.10 per common share for the third quarter of 2021,” said Henry Kim, President and Chief Executive Officer. “We are committed to making corporate decisions that directly benefit our shareholders.”

About PCB Bancorp

Contact:

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

pcbinvestordeckq221

Earnings Results Second Quarter 2021 July 22, 2021

Safe Harbor Statement your Partner • Choice • Bank | 2 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 may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include information about our future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Forward-looking statements are based on management’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from the Company’s historical results or those described in our forward-looking statements. PCB Bancorp disclaims any obligation to update any forward-looking statement. This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding.

your Partner • Choice • Bank | 3 Introduction

Franchise Footprint your Partner • Choice • Bank | 4 • Servicing 7 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.

Equity Information your Partner • Choice • Bank | 5(1) Retrospectively adjusted for 10% stock dividend payouts on February 22, 2016 and January 15, 2017 As of July 20, 2021 Ticker PCB Market Cap $238.6 million Price Per Share $16.10 52 Week Range $8.29 - $16.64 Dividend Yield (Dividend Payout Ratio) 2.98% (22.23% 3Q20-2Q21) Number of Shares 14,820,380 $0.025 $0.025 $0.025 $0.027 $0.027 $0.027 $0.027 $0.030 $0.030 $0.030 $0.030 $0.030 $0.030 $0.030 $0.030 $0.050 $ 0 .0 6 0 $ 0 .0 6 0 $0.080 $0.100 $0.100 $0.100 $0.100 $0.100 $0.100 $0.120 0.0 00 0.0 20 0.0 40 0.0 60 0.0 80 0.1 00 0.1 20 0.1 40 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 67% 20% Historical Quarterly Cash Dividend Per Share (1) (1) 33% 25% Stock Repurchase Announced on April 8, 2021 to repurchase up to 5% of outstanding stocks, which represents 775,000 shares, through September 7, 2021. As of June 30, 2021, 646,334 shares of common stock were repurchased and retired. 20%

Historical Performance your Partner • Choice • Bank | 6 $1.03 $1.19 $1.34 $1.45 $1.58 $1.72 0.0 00 0.2 00 0.4 00 0.6 00 0.8 00 1.0 00 1.2 00 1.4 00 1.6 00 1.8 00 2.0 00 2016 2017 2018 2019 2020 Jun-21 Held-For-Investment Loans ($bn) $1.09 $1.25 $1.44 $1.48 $1.59 $1.80 0.0 00 0.2 00 0.4 00 0.6 00 0.8 00 1.0 00 1.2 00 1.4 00 1.6 00 1.8 00 2.0 00 2016 2017 2018 2019 2020 Jun-21 Deposits ($bn) $14.0 $16.4 $24.3 $24.1 $16.2 $18.4 0.0 00 5.0 00 10. 000 15. 000 20. 000 25. 000 30. 000 2016 2017 2018 2019 2020 06/21 YTD Net Income ($mm) $1.11 $1.21 $1.65 $1.49 $1.04 $1.19 0.0 00 0.2 00 0.4 00 0.6 00 0.8 00 1.0 00 1.2 00 1.4 00 1.6 00 1.8 00 2016 2017 2018 2019 2020 06/21 YTD Diluted Earnings Per Share CAGR +11.3% CAGR +9.9%

Historical Performance your Partner • Choice • Bank | 7 1.25% 1.22% 1.53% 1.40% 0.84% 1.85% 0.0 0% 0.2 0% 0.4 0% 0.6 0% 0.8 0% 1.0 0% 1.2 0% 1.4 0% 1.6 0% 1.8 0% 2.0 0% 2016 2017 2018 2019 2020 06/21 YTD Return on Average Assets 12.47% 12.00% 14.26% 10.88% 7.08% 15.59% 0.0 00 0.0 20 0.0 40 0.0 60 0.0 80 0.1 00 0.1 20 0.1 40 0.1 60 0.1 80 2016 2017 2018 2019 2020 06/21 YTD Return on Average Equity 54.9% 52.0% 52.8% 52.3% 53.5% 46.4% 0.4 20 0.4 40 0.4 60 0.4 80 0.5 00 0.5 20 0.5 40 0.5 60 2016 2017 2018 2019 2020 06/21 YTD Efficiency Ratio 4.18% 4.22% 4.23% 4.11% 3.53% 3.77% 0.0 30 0.0 32 0.0 34 0.0 36 0.0 38 0.0 40 0.0 42 0.0 44 2016 2017 2018 2019 2020 06/21 YTD Net Interest Margin (1) Annualized (1) (1) (1)

COVID-19 Update your Partner • Choice • Bank | 8 As of June 30, 2021 o SBA PPP Loans • 1,746 loans with aggregated carrying value of $181.0 million • Second round PPP: 1,153 loans with aggregated contractual loan balance of $110.9 million (carrying value: $107.0 million) • Forgiveness: 1,061 loans for $65.6 million o Loan Modification Related to COVID-19 • 6 customers for aggregated loan balance of $16.2 million o Allowance for Loan Losses • Established 1.45% of total loans held-for-investment (1.62% excluding SBA PPP loans) o Liquidity • Maintained cash and cash equivalents of $174.6 million, or 8.5% of total assets • Maintained available borrowing capacity of $601.9 million, or 29.2% of total assets o Capital • Bank’s Tier 1 leverage capital ratio of 11.53% and CET 1 capital ratio of 14.88%

your Partner • Choice • Bank | 9 Recent Financial Performance

2Q21 Highlights your Partner • Choice • Bank | 10 As of or For the Quarter Ended ($ in thousands except per share data) 06/30/21 03/31/21 06/30/20 Income Statement Summary: Interest Income $ 20,051 $ 19,258 $ 18,973 Interest Expense 1,055 1,439 3,610 Net Interest Income 18,996 17,819 15,363 Noninterest Income 5,151 2,857 2,918 Noninterest Expense 11,139 9,669 9,696 Provision for Loan Losses (934) (1,147) 3,855 Pretax Income 13,942 12,154 4,730 Income Tax Expense 4,098 3,594 1,363 Net Income 9,844 8,560 3,367 Diluted Earnings Per Share (“EPS”) $ 0.64 $ 0.55 $ 0.22 Selected Balance Sheet Items: Loans held-for-investment (“HFI”) $ 1,719,656 $ 1,685,916 $ 1,553,589 Loans held-for-sale (“HFS”) 11,255 3,569 4,102 Total Deposits 1,797,648 1,753,771 1,646,930 Total Assets 2,060,003 2,050,672 2,020,777 Shareholders’ Equity 238,941 240,263 227,233 Key Metrics: Book Value (“BV”) Per Share $ 16.09 $ 15.53 $ 14.78 Return on Average Assets (“ROAA”) (1) 1.96% 1.75% 0.69% Return on Average Equity (“ROAE”) (1) 16.49% 14.66% 5.98% Net Interest Margin (“NIM”) 3.83% 3.70% 3.22% Efficiency Ratio 46.13% 46.76% 53.04% o Recorded a reversal for loan losses of $934 thousand in 2Q21 primarily due to improvement in historical loss factors and qualitative adjustment factors reflecting general economic condition o Allowance for loan losses to HFI loans ratio was 1.45% at June 30, 2021 compared with 1.51% at March 31, 2021. Excluding PPP loans, the ratio was 1.62% and 1.74% at June 30, 2021 and March 31, 2021, respectively o Declared cash dividend of $0.10 per share in 2Q21 o SBA PPP loans totaled $181.0 million (1,746 loans), net of deferred fees and costs o Loans with modifications related to the COVID-19 pandemic totaled $16.2 million (6 customers) (1) Annualized.

Commercial Property - Owner Occupied 28% Commercial Property - Non-Owner Occupied 38% Commercial and Industrial 11% SBA PPP 11% Residential Property 11% Other Consumer 1% HFI Loan Composition Loan Overview your Partner • Choice • Bank | 11 $904 $953 $957 $956 $1,002 $1,023 $1,062 $1,136 $227 $240 $244 $218 $206 $205 $193 $184$236 $235 $227 $224 $213 $198 $191 $197$23 $23 $23 $22 $22 $22 $21 $22$134 $136 $136 $219 $181 $1,390 $1,451 $1,451 $1,554 $1,579 $1,584 $1,686 $1,720 0 200 400 600 800 1,00 0 1,20 0 1,40 0 1,60 0 1,80 0 2,00 0 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 HFI Loan Trend Commercial Property Commercial and Industrial Residential Property Other Consumer SBA PPP ($ in millions) June 30, 2021 YoY +10.7% $565 $580 $587 $590 $619 $629 $636 $679 242% 244% 249% 247% 257% 256% 251% 269% 0.0% 50.0 % 100 .0% 150 .0% 200 .0% 250 .0% 300 .0% 300 .0 350 .0 400 .0 450 .0 500 .0 550 .0 600 .0 650 .0 700 .0 750 .0 800 .0 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Commercial Real Estate (1) Loan Trend CRE Loans % to the Bank's Total Risk-Based Capital ($ in millions) (1) Per regulatory definitions in the Commercial Real Estate (“CRE”) Concentration Guidance

Fixed (WA Rate: 4.71%) 26% Variable (WA Rate: 3.99%) 49% Hybrid (WA Rate: 4.52%) 25% Interest Rate Mix(2) $25 $50 $29 $21 $52 $32 $49 $17 $20 $33 $19 $19 $22 $24 $23 $85 $65 $87 $57 $25 $53 $45 $51 $105 5.92% 5.20% 5.20% 4.15% 4.14% 3.94% 4.02% 3.90% -3.00% -2.00% -1.00% 0.00 % 1.00 % 2.00 % 3.00 % 4.00 % 5.00 % 6.00 % 0.0 50.0 100 .0 150 .0 200 .0 250 .0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 New Production (1),(2) by Rate Type Fixed Hybrid Variable WA Rate Loan Interest Rate Mix your Partner • Choice • Bank | 12(1) Total commitment basis (2) Excluding SBA PPP loans. June 30, 2021($ in millions) 17% 20% 22% 24% 25% 25% 27% 26% 23% 23% 23% 23% 23% 23% 22% 25% 60% 57% 55% 53% 52% 52% 51% 49% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 % Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Interest Rate Mix Trend (2) Fixed Hybrid Variable

SBA PPP Loans your Partner • Choice • Bank | 13 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 349 $ 6,140 $ 5,510 $ 630 $ (1) Between $50K and $150K 91 7,803 7,665 214 76 Between $150K and $350K 101 22,170 22,155 259 244 Between $350K and $2MM 51 34,720 34,478 486 246 $2MM or More 1 3,180 3,187 0 7 Total 593 $ 74,013 $ 72,995 $ 1,589 $ 572 Summary of SBA PPP loans as of June 30, 2021: Summary of relationships of SBA PPP loan customers as of June 30, 2021: SBA PPP Loans Demand Deposit Accounts (“DDAs”) ($ in thousands) # of Loans UPB Jun-21 Mar-20 Change Existing relationships 1,441 $ 165,440 $ 238,844 $ 121,072 $ 117,772 New customers with new DDA relationships 132 13,312 8,040 0 8,040 No other relationships 173 6,747 0 0 0 Total 1,746 $ 185,499 $ 246,884 $ 121,072 $ 125,812 Funded in 2021 $50K or Under 701 $ 14,005 $ 0 $ 15,020 $ 1.016 Between $50K and $150K 279 24,502 0 25,385 883 Between $150K and $350K 101 22,140 0 23,024 884 Between $350K and $2MM 72 46,359 0 47,486 1.126 $2MM or More 0 0 0 0 0 Total 1,153 $ 107,006 $ 0 $ 110,915 $ 3,909

Loan Modification your Partner • Choice • Bank | 14 Currently Modified Previously ModifiedCarrying Value Weighted-Average ($ in thousands) Payment Deferment (1) Interest Only Payment Total Interest Rate Loan-to- Value (1) Accrued Interest Receivable Carrying Value Accrued Interest Receivable Commercial property $ 0 $ 11,831 $ 11,831 3.59% 45.6% $ 74 $ 340,378 $ 1,609 SBA property 0 0 0 4,213 25 Commercial term 0 4,042 4,042 3.77% 84 39,665 95 SBA commercial term 0 0 0 1,868 4 Residential property 328 0 328 4.75% 54.7% 8 33,293 708 Other consumer 0 0 0 967 3 Total $ 328 $ 15,873 $ 16,201 3.82% $ 166 $ 420,384 $ 2,444 0 Summary of loans with modifications related to the COVID-19 pandemic: Summary of modification expiration: (1) Collateral value at origination (2) Payment deferment of both principal and interest As of June 30, 2021 During the Month of ($ in thousands) Jul-21 Aug-21 Sep-21 Total Commercial property $ 8,985 $ 2,846 $ 0 $ 11,831 Commercial term 3,625 417 0 4,042 Residential property 0 328 0 328 Total $ 12,610 $ 3,591 $ 0 $ 16,201

Loan Modification your Partner • Choice • Bank | 15 Migration of loans with modifications related to the COVID-19 pandemic: From December 31, 2020 to June 30, 2021 ($ in thousands) Dec-20 Early Termination Expired Re- Modification New Modification Modification Type Change Amortization Jun-21 Commercial property Payment deferment (1) $ 9,688 $ 0 (8,983) 8,983 $ 0 (8,983) (705) $ 0 Interest only payment 14,444 0 (13,129) 2,846 0 8,983 (1,313) 11,831 SBA property 4,192 (2,576) (1,627) 0 0 0 11 0 Commercial term Payment deferment (1) 2,462 0 (2,461) 2,461 0 (2,461) (1) 0 Interest only payment 3,065 0 (1,827) 417 0 2,461 (74) 4,042 SBA commercial term 1,841 (1,338) (513) 0 0 0 10 0 Residential property 425 0 (772) 328 349 0 (2) 328 Total $ 36,117 $ (3,914) $ (29,312) $ 15,035 $ 349 $ 0 $ (2,074) $ 16,201 HFI loans $ 1,583,578 $ 1,719,656 SBA PPP loans 135,654 181,019 HFI loans, excluding SBA PPP loans $ 1,447,826 $ 1,538,637 Total modified loans to HFI loans, excluding SBA PPP loans 2.5% 1.1% (1) Payment deferment of both principal and interest

Credit Quality your Partner • Choice • Bank | 16 $1.8 $2.8 $4.5 $4.8 $4.0 $4.6 $3.8 $1.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Non-Performing Assets (“NPAs”) 0.11% 0.16% 0.25% 0.24% 0.20% 0.24% 0.19% 0.07% 0.0 0% 0.0 5% 0.1 0% 0.1 5% 0.2 0% 0.2 5% 0.3 0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 NPAs to Total Assets 0.94% 0.99% 1.15% 1.30% 1.55% 1.67% 1.51% 1.45% 0.0 0% 0.2 0% 0.4 0% 0.6 0% 0.8 0% 1.0 0% 1.2 0% 1.4 0% 1.6 0% 1.8 0% 2.0 0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Allowance (1) to HFI Loans 1.83% (2) 710% 509% 408% 453% 683% 838% 1746% 1721% 0% 200 % 400 % 600 % 800 % 100 0% 120 0% 140 0% 160 0% 180 0% 200 0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Allowance (1) to Non-Performing Loans (1) Allowance for Loan Losses (2) Excluding SBA PPP loans ($ in millions) 1.43% (2) 1.70% (2) 1.74% (2) 1.62% (2)

Loan Concentration your Partner • Choice • Bank | 17 Real Estate Loans – Commercial By Property Type as of June 30, 2021 Total Loans With Modification Related to COVID-19 ($ in thousands) Carrying Value % to Total LTV(1) Carrying Value % to Total % to Property Type Total LTV(1) Industrial $ 226,702 19.9% 50.7% $ 0 Retail (More Than 50%) 188,279 16.6% 49.2% 0 Mixed Use 130,084 11.5% 45.2% 0 Gas Station 76,531 6.7% 55.1% 0 Office 80,741 7.1% 54.0% 2,846 24.1% 3.5% 56.4% Motel / Hotel 78,572 6.9% 50.1% 8,985 75.9% 11.4% 42.2% Apartments 63,045 5.6% 46.2% 0 Medical 56,902 5.0% 52.9% 0 Car Wash 32,235 2.8% 51.7% 0 Golf Course 27,865 2.5% 49.3% 0 Auto (Sales, Repair, & etc.) 44,896 4.0% 58.8% 0 Church 17,494 1.5% 49.3% 0 Spa, Sauna, & other self-care 26,527 2.3% 56.1% 0 Condominium – Commercial 14,476 1.3% 47.5% 0 Construction 13,475 1.2% 61.3% 0 Supermarket 9,946 0.9% 63.2% 0 Others 47,874 4.2% 46.8% 0 Total $ 1,135,644 100.0% 50.6% $ 11,831 100.0% 1.0% 45.6% Real Estate Loans – Residential as of June 30, 2021 (1) Collateral value at origination Total Loans With Modification Related to COVID-19 ($ in thousands) Carrying Value LTV(1) FICO Carrying Value % to Total LTV(1) FICO Residential Property $ 196,983 56.7% 756 $ 328 0.2% 54.7% 770

Loan Concentration your Partner • Choice • Bank | 18 Commercial and Industrial Loans – By Industry Type as of June 30, 2021 Total, Excluding SBA PPP Loans Loans with Modification Related to COVID-19 SBA PPP Loans ($ in thousands) Carrying Value % to Total Carrying Value % to Total % to Industry Type Total Carrying Value % to Total General Manufacturing & Wholesale Trade $ 56,920 30.9% $ 0 $ 41,763 23.1% Retail Trade 31,857 17.3% 0 14,628 8.1% Food Services 25,568 13.9% 0 64,088 35.5% Real Estate Related 16,503 8.9% 0 9,282 5.1% Professional, Scientific, & Technical Services 13,970 7.6% 0 8,627 4.8% Other Services 8,875 4.8% 3,625 89.7% 40.8% 13,802 7.6% Health Care & Social Assistance 8,157 4.4% 0 4,915 2.7% Transportation & Warehousing 7,205 3.9% 0 6,193 3.4% Entertainment & Recreation 5,955 3.2% 0 2,555 1.4% Finance & Insurance 4,412 2.4% 0 3,151 1.7% All Other 4,981 2.7% 417 10.3% 8.4% 12,015 6.6% Total $ 184,403 100.0% $ 4,042 100.0% 2.5% $ 181,019 100.0%

Loan Concentration your Partner • Choice • Bank | 19 Geographic Concentration as of June 30, 2021 Real Estate - Commercial Real Estate – Residential Commercial & Industrial, Excluding SBA PPP SBA PPP ($ in thousands) Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total California $ 937,891 82.7% $ 193,283 98.1% $ 154,811 83.9% $ 141,976 78.5% New Jersey 37,543 3.3% 3,700 1.9% 14,015 7.6% 7,429 4.1% Texas 42,400 3.7% 0 2,678 1.5% 3,466 1.9% Washington 32,219 2.8% 0 535 0.3% 870 0.5% New York 41,368 3.6% 0 4,483 2.4% 10,033 5.5% Nevada 15,176 1.3% 0 868 0.5% 4,497 2.5% Georgia 2,022 0.2% 0 1,118 0.6% 4,409 2.4% Virginia 3,325 0.3% 0 130 0.1% 1,034 0.6% Colorado 4,710 0.4% 0 615 0.3% 134 0.1% Illinois 3,850 0.3% 0 1,346 0.7% 1,566 0.9% Maryland 1,753 0.2% 0 1,237 0.7% 933 0.5% Oregon 2,402 0.2% 0 122 0.1% 583 0.3% Pennsylvania 2,774 0.2% 0 18 0.0% 57 0.0% Other States 8,211 0.8% 0 2,427 1.3% 4,032 2.2% Total $ 1,135,644 100.0% $ 196,983 100.0% $ 184,403 100.0% $ 181,019 100.0%

Credit Quality vs. Peers (1) your Partner • Choice • Bank | 20 1.17% 1.12% 0.81% 0.79% 0.70% 0.28% 0.17% 0.10% 0.08% 0.0 0% 0.2 0% 0.4 0% 0.6 0% 0.8 0% 1.0 0% 1.2 0% 1.4 0% Hanmi Hope Shinhan America Woori America Peer Group $1 to $3BN US Metro CBB Open PCB NPAs / (Total Loans + OREO) (2) 2.31% 2.31% 0.69% 0.47% 0.47% 0.0 0% 0.5 0% 1.0 0% 1.5 0% 2.0 0% 2.5 0% Hanmi Hope CBB Open PCB Classified Assets to Total Assets (3) (1) Korean-American banks operating in Southern California (2) Source: UBPR (3) Source: Press release concerning financial performance June 30, 2021 Peer Data as of March 31, 2021 June 30, 2021 Peer Data as of March 31, 2021

Deposit Overview your Partner • Choice • Bank | 21 $1,124 $1,103 $1,097 $1,126 $1,305 $1,298 $1,246 $1,422 $1,459 78% 77% 74% 76% 79% 79% 78% 81% 81% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 500 700 900 1,10 0 1,30 0 1,50 0 1,70 0 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Core Deposits (1) Core Deposits % to Total Deposits Noninterest DDA 44% Retail Other Interest- Bearing 22% Retail Time Deposits 25% State and Brokered Deposits 9% Deposit Composition (1) Core Deposits are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). See “Non-GAAP measure” for a reconciliation of this measure to its most comparable GAAP measure. $353 $360 $394 $551 $576 $538 $716 $796 $332 $332 $364 $369 $378 $384 $412 $392$624 $605 $539 $518 $479 $468 $443 $445 $5 $37 $32 $25 $18 $0 $123 $182 $175 $172 $182 $180 $165 $165 $1,432 $1,479 $1,477 $1,647 $1,647 $1,595 $1,754 $1,798 - 200 400 600 800 1,00 0 1,20 0 1,40 0 1,60 0 1,80 0 2,00 0 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Deposit Trend Noninterest DDA Retail Other Interest-Bearing Retail Time Deposits Internet Time Deposits State and Brokered Deposits YoY +9.2% ($ in millions) ($ in millions) June 30, 2021

Maturity Schedule your Partner • Choice • Bank | 22 Time Deposits as of June 30, 2021 Retail Time Deposits State and Brokered Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Month $ 115,385 0.60% $ 100,000 0.06% $ 215,385 0.35% 3 to 6 Month 98,322 0.49% 15,000 0.05% 113,322 0.44% 6 to 9 Month 136,704 0.51% 50,000 0.05% 186,704 0.38% 9 to 12 Month 83,575 0.43% 0 83,575 0.43% More than 12 Month 10,946 1.88% 0 10,946 1.88% Total $ 444,932 0.55% $ 165,000 0.06% $ 609,932 0.42% FHLB Advances as of June 30, 2021 FHLB Advances ($ in thousands) Amount WA Rate Less Than 3 Month $ 0 3 to 6 Month 0 6 to 9 Month 0 9 to 12 Month 10,000 2.07% More than 12 Month 0 Total $ 10,000 2.07%

Profitability your Partner • Choice • Bank | 23 $6.8 $4.2 $3.6 $3.4 $3.4 $5.8 $8.6 $9.8 $9.6 $10.0 $8.0 $8.6 $9.2 $10.4 $11.0 $13.0 (1 .0) 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Net Income PTPP 1.55% 0.96% 0.81% 0.69% 0.69% 1.19% 1.75% 1.96% 2.18% 2.32% 1.82% 1.76% 1.85% 2.13% 2.25% 2.58% 0.0 0% 0.5 0% 1.0 0% 1.5 0% 2.0 0% 2.5 0% 3.0 0% 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 ROAA Adjusted ROAA $0.42 $0.26 $0.23 $0.22 $0.22 $0.38 $0.55 $0.64 $0.59 $0.63 $0.51 $0.56 $0.60 $0.67 $0.71 $0.85 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Diluted EPS Adjusted Diluted EPS 12.02% 7.25% 6.35% 5.98% 5.98% 9.92% 14.66% 16.49% 16.93% 17.44% 14.28% 15.25% 16.02% 17.79% 18.85% 21.79% 0.0 0% 5.0 0% 10. 00% 15. 00% 20. 00% 25. 00% 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 ROAE Adjusted ROAE ($ in millions) Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ROAA & Adjusted ROAA(1) ROAE & Adjusted ROAE(1) (1) PTPP (Pre-Tax Pre-Provision) income, and adjusted EPS, ROAA and ROAE for PTPP are not presented in accordance with GAAP. See “Non-GAAP measure” for reconciliations of these measures to their most comparable GAAP measure.

Noninterest Income your Partner • Choice • Bank | 24 $22.2 $27.1 $11.7 $27.1 $8.6 $42.4 $10.9 $34.1 9.3% 7.6% 9.0% 7.5% 10.7% 10.5% 12.0% 12.2% 6.8% 5.3% 6.0% 5.3% 8.0% 7.5% 10.9% 11.6% -10.0% -5.0% 0.0 % 5.0 % 10. 0% -5.00 5.0 0 15. 00 25. 00 35. 00 45. 00 55. 00 65. 00 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 SBA Loan Sale Trend SBA Loan Sold $ Premium % Gain % ($ in millions) ($ in millions) $30.6 $37.9 $30.0 $10.7 $40.1 $25.3 $19.2 $53.0 0.0 0 10. 00 20. 00 30. 00 40. 00 50. 00 60. 00 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 SBA 7(a) Loan Production (1) $1.3 $1.4 $1.3 $1.4 $1.5 $1.0 $1.5 $1.2 $1.5 $1.4 $0.7 $1.5 $0.8 $3.5 $1.3 $4.0 55% 62% 36% 51% 36% 77% 46% 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Noninterest Income Trend Gain on Sale of AFS Securities All Other Income Gain % to Total (1) Total commitment basis ($ in millions) $0.8 Gain on Sale of Loans

Noninterest Expense your Partner • Choice • Bank | 25 $6.9 $6.0 $6.6 $5.8 $6.4 $7.4 $6.2 $7.1 $3.9 $4.3 $4.0 $3.9 $3.5 $4.2 $3.5 $4.0 2.48% 2.40% 2.39% 1.98% 1.99% 2.38% 1.95% 2.21% 0.0 0% 0.5 0% 1.0 0% 1.5 0% 2.0 0% 2.5 0% 3.0 0% - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Noninterest Expense Trend Compensation All Other Expenses % to Average Total Assets 53.0% 50.7% 56.8% 53.0% 51.7% 52.7% 46.8% 46.1% 61.9% 62.1% 64.1% 61.2% 60.4% 60.4% 58.5% 0.00 % 10.0 0% 20.0 0% 30.0 0% 40.0 0% 50.0 0% 60.0 0% 70.0 0% 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Efficiency Ratio (2) PCB Peer Average 249 255 259 251 252 246 246 248 235 240 245 250 255 260 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Number of FTE(3) Employees (1) (1) Annualized (2) Source: Peer $1 to $3 billion per UBPR (3) Full-time equivalent ($ in millions)

Net Interest Margin your Partner • Choice • Bank | 26 6.22% 5.85% 5.64% 4.73% 4.81% 4.73% 4.63% 4.63% 4.11% 3.96% 3.85% 3.22% 3.43% 3.64% 3.70% 3.83% 2.13% 1.99% 1.77% 1.17% 0.92% 0.73% 0.52% 0.40% 1.64% 1.53% 1.34% 0.85% 0.63% 0.49% 0.34% 0.24% 0.00 % 1.00 % 2.00 % 3.00 % 4.00 % 5.00 % 6.00 % 7.00 % 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Yield & Cost (1) Loan Yield NIM Cost of Int-Bearing Liab Cost of Funds (1) Annualized

Capital Ratios & BV Per Share your Partner • Choice • Bank | 27 11.53% 14.88% 14.88% 16.13% 5.00% 6.50% 8.00% 10.00% 0.00 % 2.00 % 4.00 % 6.00 % 8.00 % 10.0 0% 12.0 0% 14.0 0% 16.0 0% 18.0 0% Tier 1 Leverage CET 1 Capital Tier 1 Capital Total Capital Bank Regulatory Capital Ratios Actual Minimum Requirement For Well-Capitalized $14.30 $14.44 $14.58 $14.78 $14.91 $15.19 $15.53 $16.09 13.0 0 13.5 0 14.0 0 14.5 0 15.0 0 15.5 0 16.0 0 16.5 0 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 BV Per Share June 30, 2021 13.22% 12.99% 12.45% 11.24% 11.35% 12.16% 11.72% 11.60% 10.0 0% 10.5 0% 11.0 0% 11.5 0% 12.0 0% 12.5 0% 13.0 0% 13.5 0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Total Equity to Total Assets (1) (1) The Company did not have any intangible equity components for the presented periods.

Non-GAAP Measures your Partner • Choice • Bank | 28 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 deposits greater than $250,000 and brokered deposits. Management tracks its core deposits because management believes it is a useful measure to help assess the Company’s deposit base and, among other things, potential volatility therein. Pre-Tax Pre-Provision Income, and Adjusted ROAA, ROAE and Diluted EPS for PTPP PTPP income, and adjusted ROAA, ROAE and Diluted EPS are non-GAAP measures that we use to measure the Company’s performance and believe these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. We calculated PTPP income as net income excluding income tax provision and provision for loan losses. Management believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently

Non-GAAP Measures your Partner • Choice • Bank | 29 The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ in thousands) 09/30/19 12/31/19 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 Total Deposits $ 1,432,262 $ 1,479,307 $ 1,477,442 $ 1,646,930 $ 1,647,107 $ 1,594,851 $ 1,753,772 $ 1,797,648 Less: Time Deposits Greater Than $250K (296,785) (289,726) (266,970) (260,180) (257,208) (268,683) (266,845) (273,401) Less: Brokered Deposits (32,503) (92,393) (84,506) (82,010) (92,001) (80,002) (65,004) (65,004) Core Deposits $ 1,102,974 $ 1,097,188 $ 1,125,966 $ 1,304,740 $ 1,297,898 $ 1,246,166 $ 1,421,923 $ 1,459,243 Core Deposits to Total Deposits 77.0% 74.2% 76.2% 79.2% 78.8% 78.1% 81.1% 81.2%

Non-GAAP Measures your Partner • Choice • Bank | 30 The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: (1) Annualized. ($ in thousands) 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Net Income $ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 $ 5,787 $ 8,560 $ 9,844 Add: Provision (rever for Loan Losses (102) 4,030 2,896 3,855 4,326 2,142 (1,147) (934) Add: Income Tax Provision 2,871 1,811 1,557 1,363 1,464 2,452 3,594 4,098 PTPP Income (Non-GAAP) $ 9,554 $ 9,999 $ 8,025 $ 8,585 $ 9,239 $ 10,381 $ 11,007 $ 13,008 Average Total Assets $ 1,734,957 $ 1,710,370 $ 1,770,785 $ 1,956,464 $ 1,991,614 $ 1,939,326 $ 1,987,217 $ 2,018,789 ROAA (1) 1.55% 0.96% 0.81% 0.69% 0.69% 1.19% 1.75% 1.96% Adjusted ROAA (Non-GAAP)(1) 2.18% 2.32% 1.82% 1.76% 1.85% 2.13% 2.25% 2.58% Average Total Shareholders' Equity $ 223,932 $ 227,472 $ 226,086 $ 226,454 $ 229,463 $ 232,156 $ 236,790 $ 239,448 ROAE (1) 12.02% 7.25% 6.35% 5.98% 5.98% 9.92% 14.66% 16.49% Adjusted ROAE (Non-GAAP)(1) 16.93% 17.44% 14.28% 15.25% 16.02% 17.79% 18.85% 21.79% Net Income $ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 $ 5,787 $ 8,560 $ 9,844 Less: Income Allocated to Participating Securities (8) (10) (9) (8) (8) (11) (33) (41) Net Income Allocated to Common Stock 6,777 4,148 3,563 3,359 3,441 5,776 8,527 9,803 Add: Provision for Loan Losses (102) 4,030 2,896 3,855 4,326 2,142 (1,147) (934) Add: Income Tax Provision 2,871 1,811 1,557 1,363 1,464 2,452 3,594 4,098 PTPP Income Allocated to Common Stock $ 9,546 $ 9,989 $ 8,016 $ 8,577 $ 9,231 $ 10,370 $ 10,974 $ 12,967 WA common shares outstanding, diluted 16,099,598 15,948,793 15,700,144 15,373,655 15,377,531 15,392,355 15,533,608 15,309,873 Diluted EPS $ 0.42 $ 0.26 $ 0.23 $ 0.22 $ 0.22 $ 0.38 $ 0.55 $ 0.64 Adjusted Diluted EPS (Non-GAAP) $ 0.59 $ 0.63 $ 0.51 $ 0.56 $ 0.60 $ 0.67 $ 0.71 $ 0.85 (a) (b) (c) (a)/(c) (b)/(c) (d) (a)/(d) (b)/(d) (e) (f) (g) (e)/(g) (f)/(g)