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 23, 2020

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 23, 2020, PCB Bancorp, a California corporation (the “Company”), issued a press release concerning its unaudited results for the second quarter of 2020. 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 99.2, and incorporated herein by reference, is a copy of an investor presentation that may be utilized by management at future discussions with investors.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press release of PCB Bancorp concerning the unaudited results for the second quarter of 2020, issued July 23, 2020

99.2 Investor presentation of PCB Bancorp concerning the unaudited results for the second quarter of 2020

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of PCB Bancorp concerning the unaudited results for the second quarter of 2020, issued July 23 , 2020
99.2	Investor presentation of PCB Bancorp concerning the unaudited results for the second quarter of 2020

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 23, 2020	/s/ Timothy Chang
		Timothy Chang
		Executive Vice President and Chief Financial Officer

Document

Exhibit 99.1

PCB Bancorp Reports Earnings of $3.4 million for Q2 2020

Los Angeles, California - July 23, 2020 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of Pacific City Bank (the “Bank”), today reported net income of $3.4 million, or $0.22 per diluted common share for the second quarter of 2020, compared with $3.6 million, or $0.23 per diluted common share, for the previous quarter and $6.6 million, or $0.40 per diluted common share, for the year-ago quarter.

Q2 2020 Financial Highlights

•Net income totaled $3.4 million or $0.22 per diluted common share;

◦The Company recorded a provision for loan losses of $3.9 million primarily due to an increase in the economic uncertainty due to the COVID-19 pandemic.

◦Allowance for loan losses to total loans held-for-investment ratio was 1.30% at June 30, 2020 compared with 1.15% at March 31, 2020 and 0.96% at June 30, 2019. Excluding SBA Paycheck Protection Program (“PPP”) loans, allowance for loan losses to total loans held-for-investment ratio was 1.43% at June 30, 2020.

◦Net interest margin was 3.22% for the second quarter of 2020 compared with 3.85% for the previous quarter and 4.17% for the year-ago quarter.

•Total assets were $2.02 billion at June 30, 2020, an increase of $220.8 million, or 12.3%, from $1.80 billion at March 31, 2020, an increase of $274.4 million, or 15.7%, from $1.75 billion at December 31, 2019, and an increase of $294.3 million, or 17.0%, from $1.73 billion at June 30, 2019;

•Loans held-for-investment, net of deferred costs (fees), were $1.55 billion at June 30, 2020, an increase of $102.6 million, or 7.1%, from $1.45 billion at March 31, 2020, an increase of $102.8 million, or 7.1%, from $1.45 billion at December 31, 2019, and an increase of $158.0 million, or 11.3%, from $1.40 billion at June 30, 2019;

◦PPP loans totaled $133.7 million at June 30, 2020.

◦Loans with modifications related to COVID-19 totaled $484.0 million at June 30, 2020.

•Total deposits were $1.65 billion at June 30, 2020, an increase of $169.5 million, or 11.5%, from $1.48 billion at March 31, 2020, an increase of $167.6 million, or 11.3%, from $1.48 billion at December 31, 2019, and an increase of $200.4 million, or 13.9%, from $1.45 billion at June 30, 2019; and

•The Company declared and paid a cash dividend of $0.10 per common share for the second quarter of 2020 compared with $0.10 per common share for the first quarter of 2020 and $0.06 per common share for the second quarter of 2019.

“We earned $3.4 million of net income in the second quarter despite building $3.9 million in loan loss provision related to the economic impact of COVID-19 pandemic,” commented Henry Kim, President and Chief Executive Officer. “During the quarter, we have maintained robust capital ratios and plenty of liquidity by the increase in our deposit balance by $169.5 million, or 11.5%, primarily due to the funding of PPP loans.”

“We continue to maintain procedures to promote the safety of our employees and customers. We remain steadfast in our commitment to assist the communities we serve by helping them through the difficult financial challenges from the ongoing COVID-19 crisis by keeping the dialogue open and extending 1,551 PPP loans totaling $133.7 million to our customers.”

Financial Highlights (Unaudited)

($ in thousands, except per share data)	Three Months Ended
		6/30/2020			3/31/2020			% Change			6/30/2019			% Change			6/30/2020			6/30/2019			% Change
Net income	$	3,367		$	3,572		(5.7)		%	$	6,601		(49.0)		%	$	6,939		$	13,165		(47.3)		%
Diluted earnings per common share	$	0.22		$	0.23		(4.3)		%	$	0.40		(45.0)		%	$	0.45		$	0.81		(44.4)		%
Net interest income	$	15,363		$	16,566		(7.3)		%	$	17,692		(13.2)		%	$	31,929		$	34,845		(8.4)		%
Provision for loan losses	3,855			2,896			33.1		%	394			878.4		%	6,751			309			2084.8		%
Noninterest income	2,918			2,026			44.0		%	3,054			(4.5)		%	4,944			5,463			(9.5)		%
Noninterest expense	9,696			10,567			(8.2)		%	10,984			(11.7)		%	20,263			21,273			(4.7)		%
Return on average assets ^(1)^	0.69		%	0.81		%				1.52		%				0.75		%	1.55		%
Return on average shareholders’ equity ^(1), (2)^	5.98		%	6.35		%				12.01		%				6.17		%	12.22		%
Net interest margin ^(1)^	3.22		%	3.85		%				4.17		%				3.52		%	4.19		%
Efficiency ratio ^(3)^	53.04		%	56.84		%				52.95		%				54.95		%	52.78		%
($ in thousands, except per share data)	6/30/2020			3/31/2020			% Change		12/31/2019			% Change		6/30/2019			% Change
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Total assets	$	2,020,777		$	1,799,937		12.3	%	$	1,746,328		15.7	%	$	1,726,486		17.0	%
Net loans held-for-investment	1,533,341			1,434,364			6.9	%	1,436,451			6.7	%	1,382,229			10.9	%
Total deposits	1,646,930			1,477,442			11.5	%	1,479,307			11.3	%	1,446,526			13.9	%
Book value per common share ^(2), (4)^	$	14.78		$	14.58		1.4	%	$	14.44		2.4	%	$	13.98		5.7	%
Tier 1 leverage ratio (consolidated)	11.49		%	12.57		%			13.23		%			12.74		%
Total shareholders’ equity to total assets ^(2)^	11.24		%	12.45		%			12.99		%			12.94		%

(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.

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. Since the launch of PPP, the Company has extended 1,551 PPP loans totaling $133.7 million as of June 30, 2020. The Company also provided modifications, including interest only payments or payment deferrals, to 467 loan customers for the aggregated carrying value of $484.0 million as of June 30, 2020 that are adversely affected by the COVID-19 pandemic.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provided for relief on existing and new SBA loans disbursed prior to September 27, 2020 with the SBA paying six months of principal, interest, and any associated fees on these loans. As of June 30, 2020, the Company had 938 loans for the aggregated carrying value of $140.9 million that are qualified for this relief program.

In addition, the Company has been monitoring its liquidity and capital closely. As of June 30, 2020, the Company maintained $307.6 million, or 15.2% of total assets, of cash and cash equivalents and $425.3 million, or 21.0% of total assets, of available borrowing capacity. All regulatory capital ratios were also well above the regulatory well capitalized requirements as of June 30, 2020.

At this time, the Company cannot estimate the long term impact of the COVID-19 pandemic, but these conditions impacted and 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
($ in thousands)	6/30/2020			3/31/2020			% Change		6/30/2019			% Change		6/30/2020			6/30/2019			% Change
Interest income/expense on:
Loans	$	18,273		$	20,406		(10.5)	%	$	21,969		(16.8)	%	$	38,679		$	42,903		(9.8)	%
Investment securities	539			644			(16.3)	%	1,062			(49.2)	%	1,183			2,155			(45.1)	%
Other interest-earning assets	161			610			(73.6)	%	999			(83.9)	%	771			1,924			(59.9)	%
Total interest-earning assets	18,973			21,660			(12.4)	%	24,030			(21.0)	%	40,633			46,982			(13.5)	%
Interest-bearing deposits	3,409			4,992			(31.7)	%	6,200			(45.0)	%	8,401			11,865			(29.2)	%
Borrowings	201			102			97.1	%	138			45.7	%	303			272			11.4	%
Total interest-bearing liabilities	3,610			5,094			(29.1)	%	6,338			(43.0)	%	8,704			12,137			(28.3)	%
Net interest income	$	15,363		$	16,566		(7.3)	%	$	17,692		(13.2)	%	$	31,929		$	34,845		(8.4)	%
Average balance of:
Loans	$	1,554,011		$	1,454,727		6.8	%	$	1,378,910		12.7	%	$	1,504,369		$	1,360,641		10.6	%
Investment securities	120,336			118,502			1.5	%	167,991			(28.4)	%	119,419			167,727			(28.8)	%
Other interest-earning assets	245,447			158,793			54.6	%	154,661			58.7	%	202,120			147,601			36.9	%
Total interest-earning assets	$	1,919,794		$	1,732,022		10.8	%	$	1,701,562		12.8	%	$	1,825,908		$	1,675,969		8.9	%
Interest-bearing deposits	$	1,109,307		$	1,129,699		(1.8)	%	$	1,143,678		(3.0)	%	$	1,119,503		$	1,129,741		(0.9)	%
Borrowings	130,330			25,117			418.9	%	30,166			332.0	%	77,723			30,120			158.0	%
Total interest-bearing liabilities	$	1,239,637		$	1,154,816		7.3	%	$	1,173,844		5.6	%	$	1,197,226		$	1,159,861		3.2	%
Total funding ^(1)^	$	1,713,812		$	1,524,334		12.4	%	$	1,500,657		14.2	%	$	1,619,073		$	1,477,354		9.6	%
Annualized average yield/cost of:
Loans	4.73		%	5.64		%			6.39		%			5.17		%	6.36		%
Investment securities	1.80		%	2.19		%			2.54		%			1.99		%	2.59		%
Other interest-earning assets	0.26		%	1.55		%			2.59		%			0.77		%	2.63		%
Total interest-earning assets	3.97		%	5.03		%			5.66		%			4.48		%	5.65		%
Interest-bearing deposits	1.24		%	1.78		%			2.17		%			1.51		%	2.12		%
Borrowings	0.62		%	1.63		%			1.83		%			0.78		%	1.82		%
Total interest-bearing liabilities	1.17		%	1.77		%			2.17		%			1.46		%	2.11		%
Net interest margin	3.22		%	3.85		%			4.17		%			3.52		%	4.19		%
Cost of total funding ^(1)^	0.85		%	1.34		%			1.69		%			1.08		%	1.66		%
Supplementary information
Net accretion of discount on loans included in interest on loans	$	530		$	1,028		(48.4)	%	$	1,194		(55.6)	%	$	1,558		$	2,052		(24.1)	%

(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. The increase in average balance for the current quarter compared with the previous quarter was primarily due to the PPP loans production. The decreases in average yield for the current quarter and year were primarily due to the lower market rates, PPP loans, reset of interest rates on SBA loans, and a decrease in net accretion of discount. The Wall Street Journal prime rate decreased to 3.25% during the previous quarter compared to 4.75% at December 31, 2019 and 5.50% at June 30, 2019. On PPP loans, the Company expects to earn an annualized yield of approximately 2.7% assuming the expected term of 24 months and no prepayments. SBA loans, excluding PPP loans, had a weighted-average contractual rate of 4.67% and 6.17%, respectively, at June 30, 2020 and March 31, 2020. The decreases in net accretion of discount for the current quarter and year were primarily due to a decrease in prepayment speed on SBA loans.

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:

	6/30/2020						3/31/2020						12/31/2019
	% 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	38.4	%	4.18	%	30.2	%	5.19	%	28.2	%	5.29	%	21.2	%	5.40	%
Hybrid rate loans	13.3	%	4.99	%	14.6	%	5.01	%	15.2	%	5.03	%	16.6	%	5.03	%
Variable rate loans	48.3	%	4.11	%	55.2	%	4.41	%	56.6	%	5.51	%	62.2	%	6.29	%

Investment Securities. The decrease in average yield for the current quarter compared with the previous quarter was primarily due to new investment securities purchased under the lower market rates. The decreases in average yield for the current quarter and year compared with the same periods of 2019 were primarily due to new investment securities purchased, as well as sales of securities available-for-sale of $32.8 million with a weighted-average book yield of 3.02% during the forth quarter of 2019. During the current quarter and year, and past 12-month period, the Company purchased investment securities of $16.9 million, $24.4 million and $30.1 million, respectively.

Other Interest-Earning Assets. The decreases in average yield for the current quarter and year were primarily due to the lower market rates. The average balance for the current quarter increased primarily due to increases in deposits and other borrowings during the current quarter as the Company maintains most of its cash at the Federal Reserve Bank account. See the balance change discussion for the current quarter in “Deposits” under the “Balance Sheet” discussion.

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

Borrowings. The Company maintained a higher balance of Federal Home Loan Bank (“FHLB”) advances during the current quarter as a part of the Company’s liquidity management. At June 30, 2020, the Company had a total outstanding FHLB advances of $130.0 million with a weighted-average rate of 0.51%.

Provision for Loan Losses

Provision for loan losses was $3.9 million for the current quarter compared with $2.9 million for the previous quarter and $394 thousand for the year-ago quarter. For the six months ended June 30, 2020 and 2019, provision for loan losses was $6.8 million and $309 thousand, respectively. The provision was primarily driven by the increase in risks associated with economic and business conditions as a result of the COVID-19 pandemic, which required an additional provision for loan losses of $4.2 million and $6.8 million, respectively, for the current quarter and year. The Company recorded net charge-offs of $281 thousand for the current quarter compared with $602 thousand for the previous quarter and $203 thousand for the year-ago quarter. For the six months ended June 30, 2020 and 2019, the Company recorded net charge-offs of $883 thousand and $148 thousand, respectively. Allowance for loan losses to total loans held-for-investment ratio was 1.30% at June 30, 2020, 1.15% at March 31, 2020, 0.99% at December 31, 2019 and 0.96% at June 30, 2019. Excluding PPP loans, allowance for loan losses to total loans held-for-investment ratio was 1.43% at June 30, 2020.

Noninterest Income

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

	Three Months Ended
($ in thousands)	6/30/2020		3/31/2020		% Change		6/30/2019		% Change		6/30/2020		6/30/2019		% Change
Gain on sale of loans	$	1,498	$	725	106.6	%	$	1,891	(20.8)	%	$	2,223	$	3,011	(26.2)	%
Service charges and fees on deposits	275		390		(29.5)	%	368		(25.3)	%	665		732		(9.2)	%
Loan servicing income	902		554		62.8	%	492		83.3	%	1,456		1,123		29.7	%
Other income	243		357		(31.9)	%	303		(19.8)	%	600		597		0.5	%
Total noninterest income	$	2,918	$	2,026	44.0	%	$	3,054	(4.5)	%	$	4,944	$	5,463	(9.5)	%

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

	Three Months Ended
($ in thousands)	6/30/2020		3/31/2020		% Change		6/30/2019		% Change		6/30/2020		6/30/2019		% Change
Gain on sale of SBA loans
Sold loan balance	$	27,066	$	11,715	131.0	%	$	29,168	(7.2)	%	$	38,781	$	50,351	(23.0)	%
Premium received	2,042		1,056		93.4	%	2,665		(23.4)	%	3,098		4,227		(26.7)	%
Gain recognized	1,448		704		105.7	%	1,884		(23.1)	%	2,152		2,988		(28.0)	%
Gain on sale of residential property loans
Sold loan balance	$	6,118	$	2,079	194.3	%	$	375	1,531.5	%	$	8,197	$	2,771	195.8	%
Gain recognized	50		21		138.1	%	7		614.3	%	71		23		208.7	%

Loan Servicing Income. The Company services SBA loans and certain residential property loans that are sold to the secondary market. The increases were primarily due to a decrease in servicing asset amortization from a lower prepayment speed. The following table presents information on loan servicing income for the periods indicated.

	Three Months Ended
($ in thousands)	6/30/2020		3/31/2020		% Change		6/30/2019		% Change		6/30/2020		6/30/2019		% Change
Loan servicing income:
Servicing income received	$	1,294	$	1,158	11.7	%	$	1,190	8.7	%	$	2,452	$	2,337	4.9	%
Servicing assets amortization	(392)		(604)		(35.1)	%	(698)		(43.8)	%	(996)		(1,214)		(18.0)	%
Loan servicing income	$	902	$	554	62.8	%	$	492	83.3	%	$	1,456	$	1,123	29.7	%
Underlying loans at end of period	$	494,000	$	478,748	3.2	%	$	502,124	(1.6)	%	$	494,000	$	502,124	(1.6)	%

Noninterest Expense

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

	Three Months Ended
($ in thousands)	6/30/2020		3/31/2020		% Change		6/30/2019		% Change		6/30/2020		6/30/2019		% Change
Salaries and employee benefits	$	5,761	$	6,551	(12.1)	%	$	6,600	(12.7)	%	$	12,312	$	13,222	(6.9)	%
Occupancy and equipment	1,400		1,380		1.4	%	1,407		(0.5)	%	2,780		2,720		2.2	%
Professional fees	509		797		(36.1)	%	686		(25.8)	%	1,306		1,444		(9.6)	%
Marketing and business promotion	548		179		206.1	%	529		3.6	%	727		757		(4.0)	%
Data processing	366		358		2.2	%	338		8.3	%	724		656		10.4	%
Director fees and expenses	107		221		(51.6)	%	185		(42.2)	%	328		374		(12.3)	%
Regulatory assessments	242		219		10.5	%	309		(21.7)	%	461		425		8.5	%
Other expenses	763		862		(11.5)	%	930		(18.0)	%	1,625		1,675		(3.0)	%
Total noninterest expense	$	9,696	$	10,567	(8.2)	%	$	10,984	(11.7)	%	$	20,263	$	21,273	(4.7)	%

Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to an increase in direct loan origination cost, which defers the recognition of salaries and benefits expense. PPP loan production incurred direct loan origination cost of approximately $1.1 million. The decreases for the current quarter and year compared with the same periods of 2019 were primarily due to the increase in direct loan origination cost and a decrease in bonus accrual, partially offset by increases in wages, other employee benefits and vacation accrual.

Professional Fees. The decreases for the current quarter and year compared with the same periods of 2019 were primarily due to a decrease in expenses related to the BSA/AML compliance enhancements.

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

Director Fees and Expenses. The Company's Board of Directors temporarily reduced directors fees during the current quarter.

Regulatory Assessments. The decrease for the current quarter compared with the year-ago quarter was primarily due to an adjustment made during the year-ago quarter for the assessment rate increase, partially offset by an increase in balance sheet.

Balance Sheet (Unaudited)

Loans

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)	6/30/2020		3/31/2020		% Change		12/31/2019		% Change		6/30/2019		% Change
Real estate loans:
Commercial property	$	813,409	$	812,484	0.1	%	$	803,014	1.3	%	$	748,526	8.7	%
Residential property	223,923		227,492		(1.6)	%	235,046		(4.7)	%	240,630		(6.9)	%
SBA property	122,675		125,322		(2.1)	%	129,837		(5.5)	%	128,208		(4.3)	%
Construction	20,432		19,178		6.5	%	19,164		6.6	%	22,455		(9.0)	%
Commercial and industrial loans:
Commercial term	98,936		101,943		(2.9)	%	103,380		(4.3)	%	105,651		(6.4)	%
Commercial lines of credit	96,339		116,873		(17.6)	%	111,768		(13.8)	%	101,531		(5.1)	%
SBA commercial term	22,650		24,745		(8.5)	%	25,332		(10.6)	%	24,762		(8.5)	%
SBA PPP	133,675		—		—	%	—		—	%	—		—	%
Other consumer loans	21,550		23,001		(6.3)	%	23,290		(7.5)	%	23,794		(9.4)	%
Loans held-for-investment	1,553,589		1,451,038		7.1	%	1,450,831		7.1	%	1,395,557		11.3	%
Loans held-for-sale	4,102		16,191		(74.7)	%	1,975		107.7	%	440		832.3	%
Total loans	$	1,557,691	$	1,467,229	6.2	%	$	1,452,806	7.2	%	$	1,395,997	11.6	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding of $170.4 million and advances on lines of credit of $19.4 million, partially offset by pay-downs and pay-offs of $87.6 million. The increase for the current year was primarily due to new funding of $234.3 million and advances on lines of credit of $56.5 million, partially offset by pay-downs and pay-offs of $186.2 million.

The decrease in loans held-for-sale for the current quarter was primarily due to sales of $33.2 million, partially offset by new funding of $21.9 million. The increase for the current year was primarily due to new funding of $48.6 million, partially offset by sales of $47.0 million.

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

($ in thousands)	6/30/2020		3/31/2020		% Change		12/31/2019		% Change		6/30/2019		% Change
Real estate loans:
Commercial property	$	16,962	$	14,393	17.8	%	$	15,836	7.1	%	$	18,129	(6.4)	%
SBA property	220		421		(47.7)	%	1,405		(84.3)	%	1,585		(86.1)	%
Construction	16,451		17,761		(7.4)	%	11,557		42.3	%	8,166		101.5	%
Commercial and industrial loans:
Commercial term	1,000		1,034		(3.3)	%	1,243		(19.5)	%	3,024		(66.9)	%
Commercial lines of credit	159,753		143,228		11.5	%	140,690		13.5	%	122,957		29.9	%
SBA commercial term	—		912		(100.0)	%	762		(100.0)	%	574		(100.0)	%
Other consumer loans	45		38		18.4	%	115		(60.9)	%	18		150.0	%
Total commitments to extend credit	$	194,431	$	177,787	9.4	%	$	171,608	13.3	%	$	154,453	25.9	%

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)	6/30/2020			3/31/2020			% Change		12/31/2019			% Change		6/30/2019			% Change
Nonaccrual loans:
Real estate loans:
SBA property	$	1,351		$	1,461		(7.5)	%	$	442		205.7	%	$	1,372		(1.5)	%
Commercial and industrial loans:
Commercial lines of credit	1,968			2,182			(9.8)	%	1,888			4.2	%	—			—	%
SBA commercial term	381			430			(11.4)	%	159			139.6	%	16			2,281.3	%
Other consumer loans	70			10			600.0	%	48			45.8	%	41			70.7	%
Total nonaccrual loans held-for-investment	3,770			4,083			(7.7)	%	2,537			48.6	%	1,429			163.8	%
Loans past due 90 days or more and still accruing	696			—			—	%	287			142.5	%	—			—	%
Non-performing loans (“NPLs”)	4,466			4,083			9.4	%	2,824			58.1	%	1,429			212.5	%
Other real estate owned (“OREO”)	376			376			—	%	—			—	%	395			(4.8)	%
Non-performing assets (“NPAs”)	$	4,842		$	4,459		8.6	%	$	2,824		71.5	%	$	1,824		165.5	%
Loans past due and still accruing:
Past due 30 to 59 days	$	311		$	1,584		(80.4)	%	$	893		(65.2)	%	$	804		(61.3)	%
Past due 60 to 89 days	113			46			145.7	%	925			(87.8)	%	5			2,160.0	%
Past due 90 days or more	696			—			—	%	287			142.5	%	—			—	%
Total loans past due and still accruing	$	1,120		$	1,630		(31.3)	%	2,105			(46.8)	%	$	809		38.4	%
Troubled debt restructurings (“TDRs”):
Accruing TDRs	$	669		$	679		(1.5)	%	$	700		(4.4)	%	$	391		71.1	%
Nonaccrual TDRs	40			145			(72.4)	%	121			(66.9)	%	131			(69.5)	%
Total TDRs	$	709		$	824		(14.0)	%	$	821		(13.6)	%	$	522		35.8	%
Classified assets
Classified loans	$	5,809		$	6,519		(10.9)	%	$	8,862		(34.5)	%	$	7,484		(22.4)	%
OREO	376			376			—	%	—			—	%	395			(4.8)	%
Classified assets	$	6,185		$	6,895		(10.3)	%	$	8,862		(30.2)	%	$	7,879		(21.5)	%
NPLs to loans held-for-investment	0.29		%	0.28		%			0.19		%			0.10		%
NPAs to total assets	0.24		%	0.25		%			0.16		%			0.11		%
Classified assets to total assets	0.31		%	0.38		%			0.51		%			0.46		%

The Company had a residential property loan past due 90 days or more and still accruing at June 30, 2020, which management believes that the loan is well secured and the Bank is in the process of collection.

Accommodations Related to Loan Modifications from the Effects of 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. In accordance with the CARES Act, these loans will not be considered restructured for the purpose of risk-based capital rules, nor would they be reported as past due or nonaccrual during the period of the modification term.

The following table presents a summary of loans with such modifications as of June 30, 2020:

	Modification Type								Weighted-Average Contractual Rate
($ in thousands)	Payment Deferment		Interest Only		Total
Real estate loans:
Commercial property	$	369,716	$	9,850	$	379,566	4.60	%	$	5,123
Residential property	44,804		—		44,804		5.02	%	664
Commercial and industrial loans:
Commercial term	53,277		4,882		58,159		4.77	%	786
Other consumer loans	1,507		—		1,507		7.28	%	24
Total	$	469,304	$	14,732	$	484,036	4.66	%	$	6,597

Investment Securities

During the current quarter, the Company transferred securities held-to-maturity to securities available-for-sale as a part of the Company’s liquidity management plan in response to the COVID-19 pandemic. Management determined that the COVID-19 pandemic was an extremely remote disaster, which could not have been anticipated when deciding whether it has the positive intent and ability to hold these debt securities to maturity. The Company transferred all of securities held-to-maturity of $18.8 million to securities available-for-sale, which resulted in a pre-tax increase to accumulated other comprehensive income of $787 thousand.

Total investment securities were $128.0 million at June 30, 2020, an increase of $9.8 million, or 8.3%, from $118.3 million at March 31, 2020 and an increase of $10.3 million, or 8.8%, from $117.7 million at December 31, 2019 but a decrease of $37.2 million, or 22.5%, from $165.2 million at June 30, 2019.

The increase for the current quarter was primarily due to purchases of $16.9 million and an increase in fair value of securities available-for-sale of $1.5 million, partially offset by principal pay-downs and calls of $8.4 million and net premium amortization of $224 thousand. The increase for the current year was primarily due to purchases of $24.4 million and an increase in fair value of securities available-for-sale of $2.8 million, partially offset by principal pay-downs and calls of $16.5 million and net premium amortization of $413 thousand.

Deposits

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

	6/30/2020						3/31/2020						12/31/2019
($ in thousands)	Amount		% to Total		Amount		% to Total		Amount		% to Total		Amount		% to Total
Noninterest-bearing demand deposits	$	551,415	33.5	%	$	394,084	26.7	%	$	360,039	24.3	%	$	339,603	23.5	%
Interest-bearing deposits:
Savings	8,258		0.5	%	6,569		0.4	%	6,492		0.4	%	6,844		0.5	%
NOW	21,173		1.3	%	18,608		1.3	%	17,673		1.2	%	12,638		0.9	%
Retail money market accounts	339,444		20.6	%	338,850		22.9	%	307,980		20.8	%	311,865		21.6	%
Brokered money market accounts	10		0.1	%	10,006		0.7	%	30,034		2.0	%	10		0.1	%
Retail time deposits of:
$250,000 or less	347,382		21.0	%	362,408		24.5	%	405,004		27.5	%	453,286		31.2	%
More than $250,000	170,180		10.3	%	176,970		12.0	%	199,726		13.5	%	204,780		14.2	%
Time deposits from internet rate service providers	37,068		2.3	%	5,447		0.4	%	—		—	%	—		—	%
State and brokered time deposits	172,000		10.4	%	164,500		11.1	%	152,359		10.3	%	117,500		8.0	%
Total interest-bearing deposits	1,095,515		66.5	%	1,083,358		73.3	%	1,119,268		75.7	%	1,106,923		76.5	%
Total deposits	$	1,646,930	100.0	%	$	1,477,442	100.0	%	$	1,479,307	100.0	%	$	1,446,526	100.0	%

The increase in noninterest-bearing demand deposits for the current quarter was primarily due to the deposit increases from customers with PPP loans as well as the overall liquid deposit market. Deposits held with customers with PPP loans increased $120.0 million to $270.1 million at June 30, 2020 compared with $150.5 million at March 31, 2020.

The decrease in retail time deposits for the current quarter was primarily due to matured and closed accounts of $117.8 million, partially offset by new accounts of $16.0 million and renewals of the matured accounts of $76.7 million. The decrease in retail time deposits for the current year was primarily due to matured and closed accounts of $353.1 million, partially offset by new accounts of $49.6 million and renewals of the matured accounts of $208.5 million.

Liquidity

The following table presents a summary of the Company’s liquidity position as of June 30, 2020:

($ in thousands)	6/30/2020
Cash and cash equivalents	$	307,603
Cash and cash equivalents to total assets	15.2		%
Available borrowing capacity:
FHLB advances	$	319,970
Federal Reserve Discount Window	40,346
Overnight federal funds lines	65,000
Total	$	425,316
Total available borrowing capacity to total assets	21.0		%

Shareholders’ Equity

Shareholders’ equity was $227.2 million at June 30, 2020, an increase of $3.1 million, or 1.4%, from $224.1 million at March 31, 2020, an increase of $399 thousand, or 0.2%, from $226.8 million at December 31, 2019, and an increase of $3.8 million, or 1.7%, from $223.4 million at June 30, 2019. The increase for the current quarter was primarily due to net income for the current quarter and an increase in accumulated other comprehensive income, partially offset by cash dividend declared on common stock of $1.5 million. The increase for the current year was primarily due to net income for the current year and an increase in accumulated other comprehensive income, partially offset by repurchases of common stock of $6.5 million and cash dividend declared on common stock of $3.1 million.

On November 22, 2019, the Company’s Board of Directors approved a new $6.5 million stock repurchase program to commence upon the opening of the Company’s trading window for the first quarter of 2020 and continue through November 20, 2021. The Company completed this program in March 2020 and had repurchased and retired 428,474 shares.

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:

	6/30/2020		3/31/2020		12/31/2019		6/30/2019
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)	15.83	%	15.53	%	15.87	%	16.20	%
Total capital (to risk-weighted assets)	17.09	%	16.71	%	16.90	%	17.18	%
Tier 1 capital (to risk-weighted assets)	15.83	%	15.53	%	15.87	%	16.20	%
Tier 1 capital (to average assets)	11.49	%	12.57	%	13.23	%	12.74	%
Pacific City Bank
Common tier 1 capital (to risk-weighted assets)	15.58	%	15.28	%	15.68	%	16.07	%
Total capital (to risk-weighted assets)	16.83	%	16.47	%	16.71	%	17.05	%
Tier 1 capital (to risk-weighted assets)	15.58	%	15.28	%	15.68	%	16.07	%
Tier 1 capital (to average assets)	11.30	%	12.37	%	13.06	%	12.64	%

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 the 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)

	6/30/2020			3/31/2020			% Change		12/31/2019			% Change		6/30/2019			% Change
Assets
Cash and due from banks	$	18,255		$	14,880		22.7	%	$	17,808		2.5	%	$	19,080		(4.3)	%
Interest-bearing deposits in financial institutions	289,348			174,039			66.3	%	128,420			125.3	%	114,205			153.4	%
Total cash and cash equivalents	307,603			188,919			62.8	%	146,228			110.4	%	133,285			130.8	%
Securities available-for-sale, at fair value	128,049			98,568			29.9	%	97,566			31.2	%	142,539			(10.2)	%
Securities held-to-maturity	—			19,711			(100.0)	%	20,154			(100.0)	%	22,685			(100.0)	%
Total investment securities	128,049			118,279			8.3	%	117,720			8.8	%	165,224			(22.5)	%
Loans held-for-sale	4,102			16,191			(74.7)	%	1,975			107.7	%	440			832.3	%
Loans held-for-investment, net of deferred loan costs (fees)	1,553,589			1,451,038			7.1	%	1,450,831			7.1	%	1,395,557			11.3	%
Allowance for loan losses	(20,248)			(16,674)			21.4	%	(14,380)			40.8	%	(13,328)			51.9	%
Net loans held-for-investment	1,533,341			1,434,364			6.9	%	1,436,451			6.7	%	1,382,229			10.9	%
Premises and equipment, net	4,542			4,797			(5.3)	%	3,760			20.8	%	4,334			4.8	%
Federal Home Loan Bank and other bank stock	8,447			8,345			1.2	%	8,345			1.2	%	8,345			1.2	%
Other real estate owned, net	376			376			—	%	—			—	%	395			(4.8)	%
Deferred tax assets, net	6,347			5,140			23.5	%	5,288			20.0	%	3,241			95.8	%
Servicing assets	6,399			6,358			0.6	%	6,798			(5.9)	%	7,230			(11.5)	%
Operating lease assets	7,843			8,393			(6.6)	%	8,991			(12.8)	%	10,105			(22.4)	%
Accrued interest receivable	9,498			4,706			101.8	%	5,136			84.9	%	5,314			78.7	%
Other assets	4,230			4,069			4.0	%	5,636			(24.9)	%	6,344			(33.3)	%
Total assets	$	2,020,777		$	1,799,937		12.3	%	$	1,746,328		15.7	%	$	1,726,486		17.0	%
Liabilities
Deposits:
Noninterest-bearing demand	$	551,415		$	394,084		39.9	%	$	360,039		53.2	%	$	339,603		62.4	%
Savings, NOW and money market accounts	368,885			374,033			(1.4)	%	362,179			1.9	%	331,357			11.3	%
Time deposits of $250,000 or less	466,450			442,355			5.4	%	467,363			(0.2)	%	480,786			(3.0)	%
Time deposits of more than $250,000	260,180			266,970			(2.5)	%	289,726			(10.2)	%	294,780			(11.7)	%
Total deposits	1,646,930			1,477,442			11.5	%	1,479,307			11.3	%	1,446,526			13.9	%
Federal Home Loan Bank advances	130,000			80,000			62.5	%	20,000			550.0	%	35,000			271.4	%
Operating lease liabilities	8,758			9,349			(6.3)	%	9,990			(12.3)	%	11,131			(21.3)	%
Accrued interest payable and other liabilities	7,856			9,021			(12.9)	%	10,197			(23.0)	%	10,429			(24.7)	%
Total liabilities	1,793,544			1,575,812			13.8	%	1,519,494			18.0	%	1,503,086			19.3	%
Commitments and contingent liabilities
Shareholders’ equity
Common stock, no par value	163,759			163,532			0.1	%	169,221			(3.2)	%	174,135			(6.0)	%
Retained earnings	61,532			59,702			3.1	%	57,670			6.7	%	48,927			25.8	%
Accumulated other comprehensive income (loss), net	1,942			891			118.0	%	(57)			NM		338			474.6	%
Total shareholders’ equity	227,233			224,125			1.4	%	226,834			0.2	%	223,400			1.7	%
Total liabilities and shareholders’ equity	$	2,020,777		$	1,799,937		12.3	%	$	1,746,328		15.7	%	$	1,726,486		17.0	%
Outstanding common shares	15,377,935			15,370,086					15,707,016					15,980,655
Book value per common share ^(1)^	$	14.78		$	14.58				$	14.44				$	13.98
Total loan to total deposit ratio	94.58		%	99.31		%			98.21		%			96.51		%
Noninterest-bearing deposits to total deposits	33.48		%	26.67		%			24.34		%			23.48		%

(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
	6/30/2020			3/31/2020			% Change		6/30/2019			% Change		6/30/2020			6/30/2019			% Change
Interest income:
Interest and fees on loans	$	18,273		$	20,406		(10.5	%)	$	21,969		(16.8	%)	$	38,679		$	42,903		(9.8	%)
Interest on investment securities	539			644			(16.3	%)	1,062			(49.2	%)	1,183			2,155			(45.1	%)
Interest and dividend on other interest-earning assets	161			610			(73.6	%)	999			(83.9	%)	771			1,924			(59.9	%)
Total interest income	18,973			21,660			(12.4	%)	24,030			(21.0	%)	40,633			46,982			(13.5	%)
Interest expense:
Interest on deposits	3,409			4,992			(31.7	%)	6,200			(45.0	%)	8,401			11,865			(29.2	%)
Interest on other borrowings	201			102			97.1	%	138			45.7	%	303			272			11.4	%
Total interest expense	3,610			5,094			(29.1	%)	6,338			(43.0	%)	8,704			12,137			(28.3	%)
Net interest income	15,363			16,566			(7.3	%)	17,692			(13.2	%)	31,929			34,845			(8.4	%)
Provision for loan losses	3,855			2,896			33.1	%	394			878.4	%	6,751			309			2084.8	%
Net interest income after provision for loan losses	11,508			13,670			(15.8	%)	17,298			(33.5	%)	25,178			34,536			(27.1	%)
Noninterest income:
Gain on sale of loans	1,498			725			106.6	%	1,891			(20.8	%)	2,223			3,011			(26.2	%)
Service charges and fees on deposits	275			390			(29.5	%)	368			(25.3	%)	665			732			(9.2	%)
Loan servicing income	902			554			62.8	%	492			83.3	%	1,456			1,123			29.7	%
Other income	243			357			(31.9	%)	303			(19.8	%)	600			597			0.5	%
Total noninterest income	2,918			2,026			44.0	%	3,054			(4.5	%)	4,944			5,463			(9.5	%)
Noninterest expense:
Salaries and employee benefits	5,761			6,551			(12.1	%)	6,600			(12.7	%)	12,312			13,222			(6.9	%)
Occupancy and equipment	1,400			1,380			1.4	%	1,407			(0.5	%)	2,780			2,720			2.2	%
Professional fees	509			797			(36.1	%)	686			(25.8	%)	1,306			1,444			(9.6	%)
Marketing and business promotion	548			179			206.1	%	529			3.6	%	727			757			(4.0	%)
Data processing	366			358			2.2	%	338			8.3	%	724			656			10.4	%
Director fees and expenses	107			221			(51.6	%)	185			(42.2	%)	328			374			(12.3	%)
Regulatory assessments	242			219			10.5	%	309			(21.7	%)	461			425			8.5	%
Other expenses	763			862			(11.5	%)	930			(18.0	%)	1,625			1,675			(3.0	%)
Total noninterest expense	9,696			10,567			(8.2	%)	10,984			(11.7	%)	20,263			21,273			(4.7	%)
Income before income taxes	4,730			5,129			(7.8	%)	9,368			(49.5	%)	9,859			18,726			(47.4	%)
Income tax expense	1,363			1,557			(12.5	%)	2,767			(50.7	%)	2,920			5,561			(47.5	%)
Net income	$	3,367		$	3,572		(5.7	%)	$	6,601		(49.0	%)	$	6,939		$	13,165		(47.3	%)
Earnings per common share
Basic	$	0.22		$	0.23				$	0.41				$	0.45		$	0.82
Diluted	$	0.22		$	0.23				$	0.40				$	0.45		$	0.81
Average shares
Basic	15,337,405			15,505,699					16,017,089					15,421,552			16,008,325
Diluted	15,373,655			15,700,144					16,330,039					15,522,626			16,303,274
Dividend paid per common share	$	0.10		$	0.10				$	0.06				$	0.20		$	0.11
Return on average assets ^(1)^	0.69		%	0.81		%			1.52		%			0.75		%	1.55		%
Return on average shareholders’ equity^(1), (2)^	5.98		%	6.35		%			12.01		%			6.17		%	12.22		%
Efficiency ratio^(3)^	53.04		%	56.84		%			52.95		%			54.95		%	52.78		%

(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
	6/30/2020										3/31/2020								6/30/2019
	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)^	$	1,554,011	$	18,273	4.73	%	$	1,454,727	$	20,406	5.64	%	$	1,378,910	$	21,969	6.39	%
Mortgage-backed securities	63,692		317		2.00	%	57,503		329		2.30	%	87,787		559		2.55	%
Collateralized mortgage obligation	37,745		122		1.30	%	41,408		198		1.92	%	53,027		325		2.46	%
SBA loan pool securities	13,189		62		1.89	%	13,872		79		2.29	%	21,297		140		2.64	%
Municipal bonds ^(2)^	5,710		38		2.68	%	5,719		38		2.67	%	5,880		38		2.59	%
Other interest-earning assets	245,447		161		0.26	%	158,793		610		1.55	%	154,661		999		2.59	%
Total interest-earning assets	1,919,794		18,973		3.97	%	1,732,022		21,660		5.03	%	1,701,562		24,030		5.66	%
Noninterest-earning assets:
Cash and cash equivalents	16,031						18,850						18,342
Allowance for loan losses	(17,320)						(14,399)						(13,163)
Other assets	37,959						34,312						35,843
Total noninterest-earning assets	36,670						38,763						41,022
Total assets	$	1,956,464					$	1,770,785					$	1,742,584
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Deposits:
NOW and money market accounts	$	371,992	548		0.59	%	$	364,604	1,119		1.23	%	$	323,285	1,339		1.66	%
Savings	6,966		3		0.17	%	6,614		3		0.18	%	9,146		14		0.61	%
Time deposits	730,349		2,858		1.57	%	758,481		3,870		2.05	%	811,247		4,847		2.40	%
Total interest-bearing deposits	1,109,307		3,409		1.24	%	1,129,699		4,992		1.78	%	1,143,678		6,200		2.17	%
Federal Home Loan Bank advances	130,330		201		0.62	%	25,117		102		1.63	%	30,166		138		1.83	%
Total interest-bearing liabilities	1,239,637		3,610		1.17	%	1,154,816		5,094		1.77	%	1,173,844		6,338		2.17	%
Noninterest-bearing liabilities
Noninterest-bearing demand	474,175						369,518						326,813
Other liabilities	16,198						20,365						21,441
Total noninterest-bearing liabilities	490,373						389,883						348,254
Total liabilities	1,730,010						1,544,699						1,522,098
Total shareholders’ equity	226,454						226,086						220,486
Total liabilities and shareholders’ equity	$	1,956,464					$	1,770,785					$	1,742,584
Net interest income			$	15,363					$	16,566					$	17,692
Net interest spread^(3)^					2.80	%					3.26	%					3.49	%
Net interest margin ^(4)^					3.22	%					3.85	%					4.17	%
Total deposits	$	1,583,482	$	3,409	0.87	%	$	1,499,217	$	4,992	1.34	%	$	1,470,491	$	6,200	1.69	%
Total funding ^(5)^	$	1,713,812	$	3,610	0.85	%	$	1,524,334	$	5,094	1.34	%	$	1,500,657	$	6,338	1.69	%

(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, Continued (Unaudited)

($ in thousands)

	Six Months Ended
	6/30/2020										6/30/2019
	Average Balance		Interest Income/ Expense		Avg. Yield/Rate		Average Balance		Interest Income/ Expense		Avg. Yield/Rate
Assets
Interest-earning assets:
Total loans ^(1)^	$	1,504,369	$	38,679	5.17	%	$	1,360,641	$	42,903	6.36	%
Mortgage-backed securities	60,597		646		2.14	%	86,164		1,108		2.59	%
Collateralized mortgage obligation	39,577		320		1.63	%	53,962		683		2.55	%
SBA loan pool securities	13,531		141		2.10	%	21,717		287		2.66	%
Municipal bonds ^(2)^	5,714		76		2.67	%	5,884		77		2.64	%
Other interest-earning assets	202,120		771		0.77	%	147,601		1,924		2.63	%
Total interest-earning assets	1,825,908		40,633		4.48	%	1,675,969		46,982		5.65	%
Noninterest-earning assets:
Cash and cash equivalents	17,441						18,509
Allowance for loan losses	(15,860)						(13,141)
Other assets	36,136						35,215
Total noninterest-earning assets	37,717						40,583
Total assets	$	1,863,625					$	1,716,552
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Deposits:
NOW and money market accounts	$	368,298	1,667		0.91	%	$	308,348	2,471		1.62	%
Savings	6,790		6		0.18	%	8,810		22		0.50	%
Time deposits	744,415		6,728		1.82	%	812,583		9,372		2.33	%
Total interest-bearing deposits	1,119,503		8,401		1.51	%	1,129,741		11,865		2.12	%
Federal Home Loan Bank advances	77,723		303		0.78	%	30,120		272		1.82	%
Total interest-bearing liabilities	1,197,226		8,704		1.46	%	1,159,861		12,137		2.11	%
Noninterest-bearing liabilities
Noninterest-bearing demand	421,847						317,493
Other liabilities	18,281						21,880
Total noninterest-bearing liabilities	440,128						339,373
Total liabilities	1,637,354						1,499,234
Total shareholders’ equity	226,271						217,318
Total liabilities and shareholders’ equity	$	1,863,625					$	1,716,552
Net interest income			$	31,929					$	34,845
Net interest spread^(3)^					3.02	%					3.54	%
Net interest margin ^(4)^					3.52	%					4.19	%
Total deposits	$	1,541,350	$	8,401	1.10	%	$	1,447,234	$	11,865	1.65	%
Total funding ^(5)^	$	1,619,073	$	8,704	1.08	%	$	1,477,354	$	12,137	1.66	%

(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.

pcbinvestordeckq220c

Earnings Results Second Quarter 2020 July 23, 2020

Safe Harbor Statement This presentation (and oral statements made regarding the subject of this presentation) contains certain “forward- looking statements” that are based on various facts and derived utilizing numerous important assumptions and are subject to known and unknown risks, uncertainties 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 | 2

Introduction your Partner • Choice • Bank | 3

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

Equity Information As of July 17, 2020 Ticker PCB Market Cap $145 million Price Per Share $9.40 52 Week Range $7.97 - $17.55 Dividend Yield (Dividend Payout Ratio) 4.26% (29.8% 3Q19-2Q20) Number of Shares 15,377,935 Historical Quarterly Cash Dividend Per Share 0.120 0.100 25% 0.080 33% 20% 0.060 $0.100 $0.100 67% $0.080 0.040 $0.060 $0.060 $0.050 $0.030 $0.030 $0.030 $0.030 $0.030 $0.030 $0.030 $0.030 $0.025 $0.025 $0.025 $0.027 $0.027 $0.027 $0.027 0.020 0.000 (1) (1) 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 (1) Retrospectively adjusted for 10% stock dividend payouts on March 20, 2015, February 22, 2016 and January 15, 2017 your Partner • Choice • Bank | 5

Historical Performance Held-For-Investment Loans ($bn) Deposits ($bn) 1.800 CAGR +14.5% 1.800 CAGR +12.0% 1.600 1.600 1.400 1.400 1.200 1.200 1.000 1.000 0.800 0.800 $1.65 $1.55 $1.48 $1.34 $1.45 $1.44 0.600 0.600 $1.25 $1.19 $1.09 $1.03 $0.94 0.400 $0.84 0.400 0.200 0.200 0.000 0.000 2015 2016 2017 2018 2019 Jun-20 2015 2016 2017 2018 2019 Jun-20 Net Income ($mm) Diluted Earnings Per Share 30.000 1.800 25.000 1.600 1.400 20.000 1.200 1.000 15.000 0.800 $1.65 $24.3 $24.1 $1.49 10.000 0.600 $1.21 $16.4 $1.02 $1.11 $12.2 $14.0 0.400 5.000 $6.9 0.200 $0.45 0.000 0.000 2015 2016 2017 2018 2019 06/20 YTD 2015 2016 2017 2018 2019 06/20 YTD your Partner • Choice • Bank | 6

Historical Performance Return on Average Assets Return on Average Equity 0.018 0.160 0.016 0.140 0.014 0.120 0.012 0.100 0.010 0.080 0.008 1.53% 14.26% 1.40% 0.060 13.10% 12.47% 12.00% 0.006 1.25% 1.25% 1.22% 10.88% 0.040 0.004 0.75% 6.17% 0.020 0.002 0.000 0.000 2015 2016 2017 2018 2019 06/20 YTD 2015 2016 2017 2018 2019 06/20 YTD Efficiency Ratio Net Interest Margin 0.580 0.045 0.570 0.040 0.560 0.035 0.550 0.030 0.540 0.025 0.530 0.020 4.22% 4.23% 56.9% 3.89% 4.18% 4.11% 3.52% 0.520 54.9% 55.0% 0.015 0.510 52.8% 0.010 52.0% 52.3% 0.500 0.005 0.490 0.000 2015 2016 2017 2018 2019 06/20 YTD 2015 2016 2017 2018 2019 06/20 YTD your Partner • Choice • Bank | 7

COVID-19 Update As of June 30, 2020 o SBA PPP Loans • 1,551 loans with aggregated contractual loan balance of $137.8 million • Origination fee income of $5.6 million and cost of $1.1 million o Loan Modification Related to COVID-19 • 467 customers for aggregated loan balance of $484.0 million o SBA Payment Relief Program Qualified Loans • 938 loans with aggregated loan balance of $140.9 million o Allowance for Loan Losses • Maintained 1.30% of total loans held-for-investment (1.43% excluding SBA PPP loans) o Liquidity • Maintained cash and cash equivalents of $308 million, or 15% of total assets • Maintained available borrowing capacity of $425 million, or 21% of total assets o Capital • Bank’s Tier 1 leverage capital ratio of 11.30% and CET 1 capital ratio of 15.58% your Partner • Choice • Bank | 8

Recent Financial Performance your Partner • Choice • Bank | 9

2Q20 Highlights As of or For the Quarter Ended o Recorded a provision for loan losses ($ in thousands except per share data) 06/30/20 03/31/20 06/30/19 of $3.9 million in 2Q20 primarily due Income Statement Summary: to an increase in the economic Interest Income $ 18,973 $ 21,660 $ 24,030 uncertainty due to the COVID-19 Interest Expense 3,610 5,094 6,338 pandemic Net Interest Income 15,363 16,566 17,692 Noninterest Income 2,918 2,026 3,054 o Allowance for loan losses to HFI loans Noninterest Expense 9,696 10,567 10,984 ratio was 1.30% at June 30, 2020 Provision for Loan Losses 3,855 2,896 394 compared with 1.15% at March 31, Pretax Income 4,730 5,129 9,368 2020. Excluding PPP loans, the ratio Income Tax Expense 1,363 1,557 2,767 was 1.43% at June 30, 2020 Net Income 3,367 3,572 6,601 o Declared cash dividend of $0.10 per Diluted Earnings Per Share (“EPS”) $ 0.22 $ 0.23 $ 0.40 share in 2Q20 Selected Balance Sheet Items: o SBA PPP loans totaled $134 million Loans held-for-investment (“HFI”) $ 1,553,589 $ 1,451,038 $ 1,395,557 (1,551 loans), net of deferred fees Loans held-for-sale (“HFS”) 4,102 16,191 440 and costs. Total Deposits 1,646,930 1,477,442 1,446,526 o Provided loan modifications to 467 Total Assets 2,020,777 1,799,937 1,726,486 customers with an aggregated Shareholders’ Equity 227,233 224,125 223,400 balance of $484 million that are adversely affected by the COVID-19 Key Metrics: Book Value (“BV”) Per Share $ 14.78 $ 14.58 $ 13.98 pandemic as of June 30, 2020 Return on Average Assets (“ROAA”) (1) 0.69% 0.81% 1.52% Return on Average Equity (“ROAE”) (1) 5.98% 6.35% 12.01% Net Interest Margin (“NIM”) 3.22% 3.85% 4.17% Efficiency Ratio 53.04% 56.84% 52.95% (1) Annualized. your Partner • Choice • Bank | 10

Loan Overview HFI Loan Trend HFI Loan Composition ($ in millions) June 30, 2020 Other Commercial Residential Consumer and Industrial SBA PPP Property YoY +7.1% 1% 14% 9% 14% 1,800 Commercial $1,554 Commercial 1,600 Property - Non- Property - $1,451 $1,451 Owner Owner $1,396 $1,390 $134 Occupied Occupied 1,400 $1,309 $1,339 $1,343 $23 $23 $22 $24 $23 37% 25% $28 $26 $25 $235 $227 $241 $236 $224 1,200 $215 $234 $237 $240 $244 $218 1,000 $232 $227 $207 $221 $221 800 Commercial Real Estate(1) Loan Trend ($ in millions) 600 700.0 420.0% $953 $957 $956 650.0 265% 254% 245% 250% 242% 244% 249% 247% $899 $904 320.0% 400 $859 $858 $860 600.0 220.0% 550.0 120.0% 500.0 200 20.0% 450.0 $572 $565 $559 $584 $565 $580 $587 $590 -80.0% 400.0 -180.0% 0 350.0 -280.0% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 300.0 -380.0% Commercial Property Commercial and Industrial Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Residential Property Other Consumer SBA PPP CRE Loans % to the Bank's Total Risk-Based Capital (1) Per regulatory definitions in the Commercial Real Estate (“CRE”) Concentration Guidance your Partner • Choice • Bank | 11

Loan Interest Rate Mix New Production(1),(2) by Rate Type Interest Rate Mix(2) ($ in millions) June 30, 2020 6.31% 200.0 6.02% 5.91% 5.92% Variable (WA Rate: 4.11%) 5.52% 6.00% 53% 180.0 5.20% 5.20% 5.00% Fixed (WA Rate:5.10%) 160.0 4.15% 32% Hybrid (WA Rate: 4.99%) 4.00% 15% 140.0 $87 3.00% 120.0 $83 $104 2.00% 100.0 $64 1.00% (2) 80.0 $65 $57 Interest Rate Mix Trend 100% $33 0.00% $78 90% 60.0 $31 $25 80% 70% 57% 55% 53% -1.00% 62% 60% 40.0 68% 66% 65% $34 60% $32 $20 $19 $19 50% $50 -2.00% 20.0 $45 40% $13 15% 15% 15% $24 $25 $29 30% 16% $23 $21 17% 17% 17% $13 20% 16% 0.0 -3.00% 33% 10% 28% 30% 16% 17% 18% 21% 24% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 0% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Fixed Hybrid Variable WA Rate Fixed Hybrid Variable (1) Total commitment basis your Partner • Choice • Bank | 12 (2) Excluding SBA PPP loans.

SBA PPP Loans Summary of SBA PPP loans as of June 30, 2020: Unpaid Principal Balance (“UPB”) Remaining Balance of ($ in thousands) # of Loans Carrying Value 2-Year Maturity 5-Year Maturity Origination Fee Origination Cost $150K or Under 1,338 $ 49,363 $ 49,651 $ 1,143 $ 2,296 $ 862 Between $150K and $350K 142 30,937 32,046 259 1,457 90 Between $350K and $2MM 68 45,021 46,232 0 1,253 43 $2MM or More 3 8,354 8,427 0 75 2 Total 1,551 133,675 $ 136,356 $ 1,402 $ 5,081 $ 997 Summary of relationships of SBA PPP loan customers as of June 30, 2020: SBA PPP Loans Demand Deposit Accounts (“DDAs”) ($ in thousands) # of Loans UPB Jun-20 Mar-20 Change Existing relationships 1,114 $ 102,199 $ 256,602 $ 152,173 $ 104,429 New customers with new DDA relationships 185 22,572 15,680 0 15,680 No other relationships 252 12,987 0 0 0 Total 1,551 137,758 $ 272,282 $ 152,173 $ 120,109 your Partner • Choice • Bank | 13

Loan Modification Summary of loans with modifications related to the COVID-19 pandemic as of June 30, 2020: Carrying Value Weighted-Average Payment Accrued Interest ($ in thousands) Deferment Interest Only Total Interest Rate Loan-to-Value (1) Receivable Commercial property $ 369,716 $ 9,850 $ 379,566 4.60% 48.4% $ 5,123 Commercial term 53,277 4,882 58,159 4.77% 786 Residential property 44,804 0 44,804 5.02% 57.4% 664 Other consumer 1,507 0 1,507 7.28% 24 Total $ 469,304 $ 14,732 $ 484,036 4.66% $ 6,597 Summary of modification expiration as of June 30, 2020: During the Month of ($ in thousands) Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total Commercial property Principal Deferment $ 8,340 $ 41,899 $ 28,383 $ 77,436 $ 197,137 $ 16,521 $ 0 $ 369,716 Interest Only 0 0 0 0 8,565 1,285 0 9,850 Commercial term Principal Deferment 0 5,754 2,599 7,551 35,230 2,143 0 53,277 Interest Only 0 446 0 486 3,950 0 0 4,882 Residential property 0 30,537 11,696 1,861 710 0 0 44,804 Other consumer 175 779 319 209 20 0 5 1,507 Total $ 8,515 $ 79,415 $ 42,997 $ 87,543 $ 245,612 $ 19,949 $ 5 $ 484,036 (1) Collateral value at origination your Partner • Choice • Bank | 14

Credit Quality Non-Performing Assets (“NPAs”) NPAs to Total Assets 6.0 ($ in millions) 0.30% 5.0 0.25% 4.0 0.20% 3.0 0.15% $4.8 0.25% 0.24% 2.0 $4.5 0.10% $2.8 0.16% 1.0 $1.7 $1.8 $1.8 0.05% 0.09% 0.10% 0.11% 0.11% $1.6 $1.1 0.06% 0.0 0.00% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Allowance(1) to HFI Loans Allowance(1) to Non-Performing Loans 1.60% 1400% 1.43% (2) 1.40% 1200% 1.20% 1000% 1.00% 800% 0.80% 600% 1241% 0.60% 1.30% 1.15% 1034% 933% 1.00% 0.98% 0.98% 0.96% 0.99% 400% 833% 0.40% 0.94% 710% 200% 509% 0.20% 408% 453% 0.00% 0% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 (1) Allowance for Loan Losses your Partner • Choice • Bank | 15 (2) Excluding SBA PPP loans

Loan Concentration Real Estate Loans – Commercial By Property Type Total Loans With Modification Related to COVID-19 % to Carrying Carrying Property ($ in thousands) Value % to Total LTV(1) Value % to Total Type Total LTV(1) Retail (More Than 50%) $ 179,072 18.7% 50.8% $ 87,741 23.1% 49.0% 46.5% Industrial 166,580 17.4% 49.8% 82,487 21.7% 49.5% 50.1% Mixed Use 132,719 13.9% 47.5% 68,677 18.1% 51.7% 46.6% Gas Station 72,855 7.6% 53.2% 8,961 2.4% 12.3% 44.0% Office 66,643 7.0% 54.7% 25,770 6.8% 38.7% 51.6% Motel / Hotel 65,042 6.8% 50.7% 26,311 6.9% 40.5% 49.4% Medical 61,351 6.4% 54.4% 4,901 1.3% 8.0% 55.3% Apartments 46,885 4.9% 44.7% 8,552 2.3% 18.2% 47.7% Auto - Sales, Repair, & etc. 22,377 2.3% 50.6% 7,740 2.0% 34.6% 46.3% Car Wash 20,584 2.2% 52.3% 9,094 2.4% 44.2% 40.4% Construction 20,432 2.1% 62.1% 0 0% 0% 0% Health Spa / Sauna 16,220 1.7% 57.5% 14,852 3.9% 91.6% 56.2% Church 13,918 1.5% 47.1% 10,688 2.8% 76.8% 53.7% Condominium - Commercial 13,431 1.4% 51.0% 7,313 1.9% 54.4% 50.1% Supermarket 9,635 1.0% 60.4% 314 0.1% 3.3% 51.4% Golf Course 9,300 1.0% 56.3% 3,379 0.9% 36.3% 49.7% Other 39,472 4.1% 51.4% 12,786 3.4% 32.4% 45.4% Total $ 956,516 100.0% 51.1% $ 379,566 100.0% 39.7% 48.4% Real Estate Loans - Residential Total Loans With Modification Related to COVID-19 Carrying Carrying ($ in thousands) Value LTV(1) FICO Value % to Total LTV(1) FICO Residential Property $ 223,923 57.1% 754 $ 44,804 20.0% 57.4% 745 (1) Collateral value at origination your Partner • Choice • Bank | 16

Loan Concentration Commercial and Industrial Loans – By Industry Type Total, Excluding Loans with Modification SBA PPP Loans Related to COVID-19 SBA PPP Loans % to Carrying Carrying Industry Carrying ($ in thousands) Value % to Total Value % to Total Type Total Value % to Total General Manufacturing & Wholesale Trade $ 75,048 34.3% $ 17,512 23.1% 23.3% $ 35,394 26.5% Food Services 31,698 14.5% 20,461 21.7% 64.5% 33,107 24.8% Retail Trade 31,395 14.4% 3,300 18.1% 10.5% 16,059 12.0% Real Estate Related 18,212 8.4% 1,061 2.4% 5.8% 7,629 5.7% Professional, Scientific, & Technical Services 15,868 7.3% 100 6.8% 0.6% 10,214 7.6% Health Care & Social Assistance 9,942 4.6% 2,121 6.9% 21.3% 4,172 3.1% Other Services 9,481 4.4% 4,616 1.3% 48.7% 9,612 7.2% Finance & Insurance 8,806 4.0% - 2.3% 0.0% 2,040 1.5% Entertainment & Recreation 7,001 3.2% 5,250 2.0% 75.0% 1,694 1.3% Transportation & Warehousing 6,867 3.2% 1,165 2.4% 17.0% 6,454 4.8% Other 3,607 1.7% 2,573 3.4% 71.3% 7,300 5.5% Total $ 217,925 100.0% $ 58,159 100.0% 26.7% $ 133,675 100.0% (1) Collateral value at origination your Partner • Choice • Bank | 17

Loan Concentration Geographic Concentration Commercial & Industrial, Real Estate - Commercial Real Estate – Residential Excluding SBA PPP SBA PPP Carrying Carrying Carrying Carrying ($ in thousands) Value % to Total Value % to Total Value % to Total Value % to Total California $ 801,634 83.7% $ 217,982 97.3% $ 178,615 82.1% $ 103,023 77.1% New York 36,453 3.8% 0 0% 11,960 5.5% 5,861 4.4% New Jersey 23,757 2.5% 5,941 2.7% 11,525 5.3% 8,089 6.1% Washington 33,227 3.5% 0 0% 592 0.3% 1,468 1.1% Texas 16,857 1.8% 0 0% 4,331 2.0% 2,588 1.9% Nevada 13,712 1.4% 0 0% 1,564 0.7% 2,779 2.1% Georgia 4,420 0.5% 0 0% 1,358 0.6% 2,793 2.1% Colorado 4,032 0.4% 0 0% 743 0.3% 174 0.1% Illinois 2,948 0.3% 0 0% 1,604 0.7% 1,216 0.9% Virginia 3,363 0.4% 0 0% 258 0.1% 793 0.6% Pennsylvania 2,837 0.3% 0 0% 19 0.0% 35 0.0% Maryland 1,465 0.2% 0 0% 1,351 0.6% 847 0.6% Oregon 2,241 0.2% 0 0% 47 0.0% 372 0.3% Other 9,570 1.0% 0 0% 3,958 1.8% 3,637 2.7% Total $ 956,516 100.0% $ 223,923 100.0% $ 217,925 100.0% $ 133,675 100.0% (1) Collateral value at origination your Partner • Choice • Bank | 18

Credit Quality vs. Peers(1) NPAs / (Total Loans + OREO)(2) Classified Assets to Total Assets(3) June 30, 2020 June 30, 2020 1.40% Peer Information as of March 31, 2020 Peer Information as of March 31, 2020 2.00% 1.88% 1.20% 1.15% 1.80% 1.57% 0.99% 1.60% 1.00% 1.40% 0.83% 0.79% 0.80% 1.20% 1.14% 1.00% 0.60% 0.80% 0.40% 0.60% 0.31% 0.22% 0.40% 0.31% 0.29% 0.20% 0.12% 0.20% 0.03% 0.02% 0.00% 0.00% Hanmi Hope CBB Peer PCB US Open Woori Shinhan Hope Hanmi CBB PCB Open Group Metro AmericaAmerica $1 to $3BN (1) Korean-American banks operating in Southern California your Partner • Choice • Bank | 19 (2) Source: UBPR (3) Source: 10Q or press release concerning financial performance

Deposit Overview Deposit Trend Deposit Composition ($ in millions) June 30, 2020 Internet Time YoY +11.3% Retail Time Deposits Deposits 1,800 32% 2% Retail Other Interest- $1,647 State and Brokered Bearing 1,600 Deposits $1,479 $1,477 $172 22% Noninterest $1,420 $1,444 $1,448 $1,447 $1,432 10% $37 DDA 1,400 $118 $182 $175 34% $148 $143 $158 $123 $5 1,200 $518 1,000 $658 $624 $605 $539 $638 $658 $664 800 (1) $369 Core Deposits ($ in millions) 600 $364 78% 78% 78% 79% $284 $331 $332 $332 75% 77% 74% 76% $314 $295 1,400 80% 400 1,300 70% 1,200 60% $551 1,100 50% 200 $394 1,000 $350 $329 $331 $340 $353 $360 40% 900 $1,305 30% 800 $1,110 $1,120 $1,124 $1,103 $1,097 $1,126 - $1,081 20% 700 10% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 600 500 0% Noninterest DDA Retail Other Interest-Bearing Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Retail Time Deposits Internet Time Deposits State and Brokered Deposits Core Deposits % to Total Deposits (1) Core Deposits are not presented in accordance with U.S. generally accepted accounting principles your Partner • Choice • Bank | 20 (“GAAP”). See “Non-GAAP measure” for a reconciliation of this measure to its most comparable GAAP measure.

Maturity Schedule Time Deposits State and Brokered Retail Time Deposits Internet Time Deposits Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Month $ 144,741 2.10% $ 5,216 0.65% $ 110,000 0.43% $ 259,957 1.36% 3 to 6 Month 101,220 1.80% 6,950 0.71% 47,000 1.64% 155,170 1.70% 6 to 9 Month 164,534 1.64% 7,286 0.69% 15,000 0.55% 186,820 1.51% 9 to 12 Month 88,227 0.85% 17,616 0.73% 0 0.00% 105,843 0.83% More than 12 Month 18,840 2.08% 0 0.00% 0 0.00% 18,840 2.08% Total $ 517,562 1.68% $ 37,068 0.71% $ 172,000 0.77% $ 726,630 1.42% FHLB Advances FHLB Advances ($ in thousands) Amount WA Rate Less Than 3 Month $ 0 0.00% 3 to 6 Month 50,000 0.26% 6 to 9 Month 40,000 0.59% 9 to 12 Month 30,000 0.32% More than 12 Month 10,000 2.07% Total $ 130,000 0.51% (1) Collateral value at origination your Partner • Choice • Bank | 21

Profitability 15.0 Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) 13.0 ($ in millions) 11.0 $10.0 $10.0 $0.66 $0.63 $9.8 $9.3 $9.8 $9.6 $0.61 $0.60 $0.59 $8.6 $0.57 $0.56 9.0 $8.0 $0.51 7.0 5.0 3.0 $6.5 $6.7 $6.6 $6.6 $6.8 $0.44 $0.41 $0.40 $0.40 $0.42 $4.2 $3.6 $3.4 $0.26 $0.23 $0.22 1.0 (1.0) 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Net Income PTPP Diluted EPS Adjusted Diluted EPS ROAA & Adjusted ROAA(1) ROAE & Adjusted ROAE(1) 3.00% 25.00% 21.66% 2.39% 2.37% 2.50% 2.32% 19.11% 2.22% 2.25% 2.18% 20.00% 17.55% 17.76% 16.93% 17.44% 2.00% 1.82% 1.76% 14.28% 15.25% 15.00% 1.50% 10.00% 1.00% 1.60% 1.60% 1.57% 1.52% 1.55% 14.50% 12.92% 5.00% 12.43% 12.01% 12.02% 0.50% 0.96% 0.81% 0.69% 7.25% 6.35% 5.98% 0.00% 0.00% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 ROAA Adjusted ROAA ROAE Adjusted ROAE (1) PTPP (Pre-Tax Pre-Provision) income, and adjusted EPS, ROAA and ROAE for PTPP are not presented in your Partner • Choice • Bank | 22 accordance with GAAP. See “Non-GAAP measure” for reconciliations of these measures to their most comparable GAAP measure.

Noninterest Income Noninterest Income Trend SBA Loan Sale Trend ($ in millions) ($ in millions) 5.0 70% 9.1% 9.3% 65.00 8.3% 7.4% 7.6% 9.0% 7.5% 6.2% 10.0% 62% 62% 55.00 5.0% 4.5 45.00 6.8% 6.5% 0.0% 60% 5.7% 5.2% 5.3% 6.0% 5.3% 55% 35.00 4.0% -5.0% 4.0 51% 51% 25.00 -10.0% 48% 15.00 $29.2 50% $23.1 $26.2 $27.1 $27.1 3.5 46% $21.2 $22.2 -15.0% 5.00 $11.7 $0.8 -5.00 -20.0% 3.0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 40% SBA Loan Sold $ Premium % Gain % 2.5 36% $1.9 $1.5 30% (1) 2.0 $1.5 $1.4 SBA 7(a) Loan Production $1.3 $1.1 $1.0 $0.7 40.00 ($ in millions) 1.5 20% 35.00 30.00 1.0 25.00 $1.4 $1.4 10% $1.3 $1.3 $1.3 $1.3 20.00 0.5 $1.2 $1.2 $35.1 $37.9 15.00 $26.9 $30.6 10.00 $22.4 0.0 0% $22.2 $14.5 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 5.00 $10.7 0.00 Gain on Sale of AFS Securities Gain on Sale of Loans 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 All Other Income Gain % to Total (1) Total commitment basis your Partner • Choice • Bank | 23

Noninterest Expense Noninterest Expense Trend Efficiency Ratio(2) ($ in millions) 64.7% 70.00% 61.7% 61.8% 62.4% 62.5% 61.9% 62.1% 16.0 60.00% 3.00% 50.00% 40.00% 14.0 2.52% 2.48% 2.43% 2.43% 2.40% 30.00% 2.39% 2.50% 2.35% 49.3% 50.4% 52.6% 53.0% 53.0% 50.7% 56.8% 53.0% 20.00% 12.0 10.00% 1.98% 0.00% 2.00% 10.0 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 $4.4 $3.9 PCB Peer Average $3.7 $4.0 8.0 $3.9 $4.3 $3.7 $3.9 1.50% 6.0 Number of FTE Employees 1.00% 260 4.0 255 $6.9 $6.2 $6.6 $6.6 $6.0 $6.6 $5.8 $5.8 0.50% 250 2.0 259 245 255 252 249 251 - 0.00% 248 240 246 247 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 235 Compensation All Other Expenses Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 (1) % to Average Total Assets (1) Annualized your Partner • Choice • Bank | 24 (2) Source: Peer $1 to $3 billion per UBPR

Net Interest Margin Yield & Cost(1) 7.00% 6.34% 6.33% 6.39% 6.10% 6.22% 5.85% 6.00% 5.64% 5.00% 4.73% 4.33% 4.17% 4.22% 4.17% 4.11% 3.96% 3.85% 4.00% 3.22% 3.00% 2.06% 2.17% 2.13% 1.89% 1.99% 2.00% 1.72% 1.77% 1.17% 1.69% 1.62% 1.64% 1.53% 1.00% 1.47% 1.32% 1.34% 0.85% 0.00% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Loan Yield NIM Cost of Int-Bearing Liab Cost of Funds (1) Annualized your Partner • Choice • Bank | 25

Capital Ratios & BV Per Share Bank Regulatory Capital Ratios 15.00 BV Per Share 18.00% June 30, 2020 14.50 14.00 16.00% 13.50 $14.78 13.00 14.00% $14.58 $14.30 $14.44 $13.98 12.50 $13.57 $13.16 12.00% 12.00 $12.71 11.50 10.00% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 16.83% 8.00% 15.58% 15.58% Total Equity to Total Assets (1) 13.50% 6.00% 11.30% 13.00% 10.00% 12.50% 4.00% 8.00% 6.50% 12.00% 5.00% 2.00% 11.50% 13.22% 12.94% 12.99% 12.39% 12.64% 12.45% 11.00% 12.20% 0.00% 10.50% 11.24% Tier 1 Leverage CET 1 Capital Tier 1 Capital Total Capital 10.00% Actual Minimum Requirement For Well-Capitalized Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 (1) The Company did not have any intangible equity components for the presented periods. your Partner • Choice • Bank | 26

Non-GAAP Measures Core Deposits Core Deposits are a non-GAAP measure that we use to measure the portion of our total deposits that are thought to be more stable, lower cost and reprice less frequently on average in a rising rate environment. We calculate core deposits as total deposits less time 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 your Partner • Choice • Bank | 27

Non-GAAP Measures The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ in thousands) 09/30/18 12/31/18 03/31/19 06/30/19 09/30/19 12/31/19 03/31/20 06/30/20 Total Deposits $ 1,419,526 $ 1,443,753 $ 1,447,758 $ 1,446,526 $ 1,432,262 $ 1,479,307 $ 1,477,442 $ 1,646,930 Less: Time Deposits Greater Than $250K (261,551) (281,239) (329,693) (284,780) (296,785) (289,726) (266,970) (260,180) Less: Brokered Deposits (47,500) (42,500) (37,510) (27,510) (32,503) (92,393) (84,506) (82,010) Core Deposits $ 1,110,475 $ 1,120,014 $ 1,080,555 $ 1,124,236 $ 1,102,974 $ 1,097,188 $ 1,125,966 $ 1,304,740 Core Deposits to Total Deposits 78.2% 77.6% 74.6% 77.7% 77.0% 74.2% 76.2% 79.2% your Partner • Choice • Bank | 28

Non-GAAP Measures The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: ($ in thousands) 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Net Income (a)$ 6,543 $ 6,732 $ 6,564 $ 6,601 $ 6,785 $ 4,158 $ 3,572 $ 3,367 Add: Provision for Loan Losses 417 294 (85) 394 (102) 4,030 2,896 3,855 Add: Income Tax Provision 2,816 2,934 2,794 2,767 2,871 1,811 1,557 1,363 PTPP Income (Non-GAAP) (b)$ 9,776 $ 9,960 $ 9,273 $ 9,762 $ 9,554 $ 9,999 $ 8,025 $ 8,585 Average Total Assets (c)$ 1,623,853 $ 1,669,770 $ 1,690,349 $ 1,742,584 $ 1,734,957 $ 1,710,370 $ 1,770,785 $ 1,956,464 ROAA (1) (a)/(c) 1.60% 1.60% 1.57% 1.52% 1.55% 0.96% 0.81% 0.69% Adjusted ROAA (Non-GAAP)(1) (b)/(c) 2.39% 2.37% 2.22% 2.25% 2.18% 2.32% 1.82% 1.76% Average Total Shareholders' Equity (d)$ 179,074 $ 206,740 $ 214,234 $ 220,486 $ 223,932 $ 227,472 $ 226,086 $ 226,454 ROAE (1) (a)/(d) 14.50% 12.92% 12.43% 12.01% 12.02% 7.25% 6.35% 5.98% Adjusted ROAE (Non-GAAP)(1) (b)/(d) 21.66% 19.11% 17.55% 17.76% 16.93% 17.44% 14.28% 15.25% Net Income $ 6,543 $ 6,732 $ 6,564 $ 6,601 $ 6,785 $ 4,158 $ 3,572 $ 3,367 Less: Income Allocated to Participating Securities 0 0 0 0 0 (10) (9) (8) Net Income Allocated to Common Stock (e) 6,543 6,732 6,564 6,601 6,785 4,148 3,563 3,359 Add: Provision for Loan Losses 417 294 (85) 394 (102) 4,030 2,896 3,855 Add: Income Tax Provision 2,816 2,934 2,794 2,767 2,871 1,811 1,557 1,363 PTPP Income Allocated to Common Stock (f)$ 9,776 $ 9,960 $ 9,273 $ 9,762 $ 9,554 $ 9,989 $ 8,016 $ 8,577 WA common shares outstanding, diluted (g) 14,924,546 16,244,837 16,271,269 16,330,039 16,099,598 15,948,793 15,700,144 15,373,655 Diluted EPS (e)/(g)$ 0.44 $ 0.41 $ 0.40 $ 0.40 $ 0.42 $ 0.26 $ 0.23 $ 0.22 Adjusted Diluted EPS (Non-GAAP) (f)/(g)$ 0.66 $ 0.61 $ 0.57 $ 0.60 $ 0.59 $ 0.63 $ 0.51 $ 0.56 (1) Annualized. your Partner • Choice • Bank | 29