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): October 27, 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 October 27, 2020, PCB Bancorp, a California corporation (the “Company”), issued a press release concerning its unaudited results for the third 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 third quarter of 2020, issued October 27, 2020

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

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of PCB Bancorp concerning the unaudited results for the third quarter of 2020, issued Octoberpcber20201027.htm2 7 , 2020
99.2	Investor presentation of PCB Bancorp concerning the unaudited results for the third 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:	October 27, 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 Q3 2020

Los Angeles, California - October 27, 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 third quarter of 2020, compared with $3.4 million, or $0.22 per diluted common share, for the previous quarter and $6.8 million, or $0.42 per diluted common share, for the year-ago quarter.

Q3 2020 Highlights

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

◦The Company recorded a provision for loan losses of $4.3 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 1.55% at September 30, 2020 compared with 1.30% at June 30, 2020 and 0.94% at September 30, 2019. Excluding U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, allowance for loan losses to total loans held-for-investment ratio was 1.70% and 1.43% at September 30, 2020 and June 30, 2020, respectively.

◦Net interest margin was 3.43% for the third quarter of 2020 compared with 3.22% for the previous quarter and 4.11% for the year-ago quarter.

•Total assets were $2.02 billion at September 30, 2020, an increase of $410 thousand from $2.02 billion at June 30, 2020, an increase of $274.9 million, or 15.7%, from $1.75 billion at December 31, 2019, and an increase of $321.7 million, or 18.9%, from $1.70 billion at September 30, 2019;

•Loans held-for-investment, net of deferred costs (fees), were $1.58 billion at September 30, 2020, an increase of $25.2 million, or 1.6%, from $1.55 billion at June 30, 2020, an increase of $128.0 million, or 8.8%, from $1.45 billion at December 31, 2019, and an increase of $189.0 million, or 13.6%, from $1.39 billion at September 30, 2019;

◦SBA PPP loans totaled $136.4 million and $133.7 million at September 30, 2020 and June 30, 2020, respectively.

◦Loans with modifications related to COVID-19 totaled $171.6 million at September 30, 2020 compared with $484.0 million at June 30, 2020.

•Total deposits were $1.65 billion at September 30, 2020, an increase of $177 thousand from $1.65 billion at June 30, 2020, an increase of $167.8 million, or 11.3%, from $1.48 billion at December 31, 2019, and an increase of $214.8 million, or 15.0%, from $1.43 billion at September 30, 2019;

•The consent order with the Federal Deposit Insurance Corporation (“FDIC”) and California Department of Financial Protection and Innovation (“CDFPI”, formerly California Department of Business Oversight) related to the Bank's Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”) compliance was terminated; and

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

“We continued to successfully manage the challenging environment as evidenced by earning $3.4 million of net income while building additional $4.3 million of allowance for loan losses related to the economic impact of the COVID-19 pandemic in the third quarter to bring it to 1.70% of total loans held-for-investment, excluding SBA PPP loans,” commented Henry Kim, President and Chief Executive Officer. “We expanded our net interest margin to 3.43% in the third quarter compared with 3.22% in the second quarter primarily by reducing 0.25% in cost of total interest-bearing liabilities. In addition, we continued to gradually reduce our excess liquidity that was accumulated at the onset of the COVID-19 pandemic.”

“Our asset quality remained stable as we continued to help navigate our borrowers manage through the impact of the COVID-19 pandemic. Our loans with modifications related to the COVID-19 pandemic decreased to 11.9% of total loans held-for-investment at September 30, 2020 compared with 34.1% at June 30, 2020.”

“During the quarter, the FDIC and CDFPI also terminated the consent order related to the Bank’s BSA/AML compliance program by our successful resolution of the deficiencies and enhancement of our program. We believe we are successfully managing the current challenging environment and remain confident in our strategy to continue supporting our customers while delivering consistent financial performance.”

Financial Highlights (Unaudited)

($ in thousands, except per share data)	Three Months Ended
		9/30/2020			6/30/2020			% Change			9/30/2019			% Change			9/30/2020			9/30/2019			% Change
Net income	$	3,449		$	3,367		2.4		%	$	6,785		(49.2)		%	$	10,388		$	19,950		(47.9)		%
Diluted earnings per common share	$	0.22		$	0.22		—		%	$	0.42		(47.6)		%	$	0.67		$	1.23		(45.5)		%
Net interest income	$	16,853		$	15,363		9.7		%	$	17,529		(3.9)		%	$	48,782		$	52,374		(6.9)		%
Provision (reversal) for loan losses	4,326			3,855			12.2		%	(102)			NM			11,077			207			5251.2		%
Noninterest income	2,272			2,918			(22.1)		%	2,802			(18.9)		%	7,216			8,265			(12.7)		%
Noninterest expense	9,886			9,696			2.0		%	10,777			(8.3)		%	30,149			32,050			(5.9)		%
Return on average assets ^(1)^	0.69		%	0.69		%				1.55		%				0.73		%	1.55		%
Return on average shareholders’ equity ^(1), (2)^	5.98		%	5.98		%				12.02		%				6.10		%	12.15		%
Net interest margin ^(1)^	3.43		%	3.22		%				4.11		%				3.49		%	4.16		%
Efficiency ratio ^(3)^	51.69		%	53.04		%				53.01		%				53.84		%	52.85		%
($ in thousands, except per share data)	9/30/2020			6/30/2020			% Change		12/31/2019			% Change		9/30/2019			% Change
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Total assets	$	2,021,187		$	2,020,777		—	%	$	1,746,328		15.7	%	$	1,699,446		18.9	%
Net loans held-for-investment	1,554,258			1,533,341			1.4	%	1,436,451			8.2	%	1,376,736			12.9	%
Total deposits	1,647,107			1,646,930			—	%	1,479,307			11.3	%	1,432,262			15.0	%
Book value per common share ^(2), (4)^	$	14.91		$	14.78		0.9	%	$	14.44		3.3	%	$	14.30		4.3	%
Tier 1 leverage ratio (consolidated)	11.40		%	11.49		%			13.23		%			12.87		%
Total shareholders’ equity to total assets ^(2)^	11.35		%	11.24		%			12.99		%			13.22		%

(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. SBA PPP loans totaled $136.4 million (1,614 loans) and loans with modifications related to the COVID-19 pandemic totaled $171.6 million (154 loan customers) as of September 30, 2020.

In addition, the Company has been monitoring its liquidity and capital closely. As of September 30, 2020, the Company maintained $257.4 million, or 12.7% of total assets, of cash and cash equivalents and $419.9 million, or 20.8% of total assets, of available borrowing capacity. All regulatory capital ratios were also well above the regulatory well capitalized requirements as of September 30, 2020, while establishing additional allowance for loan losses of $4.3 million and $11.1 million, respectively, for the current quarter and year for the increase in risks associated with economic and business conditions as a result of the COVID-19 pandemic.

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)	9/30/2020			6/30/2020			% Change		9/30/2019			% Change		9/30/2020			9/30/2019			% Change
Interest income/expense on:
Loans	$	18,938		$	18,273		3.6	%	$	21,876		(13.4)	%	$	57,617		$	64,779		(11.1)	%
Investment securities	515			539			(4.5)	%	978			(47.3)	%	1,698			3,133			(45.8)	%
Other interest-earning assets	167			161			3.7	%	833			(80.0)	%	938			2,757			(66.0)	%
Total interest-earning assets	19,620			18,973			3.4	%	23,687			(17.2)	%	60,253			70,669			(14.7)	%
Interest-bearing deposits	2,599			3,409			(23.8)	%	6,060			(57.1)	%	11,000			17,925			(38.6)	%
Borrowings	168			201			(16.4)	%	98			71.4	%	471			370			27.3	%
Total interest-bearing liabilities	2,767			3,610			(23.4)	%	6,158			(55.1)	%	11,471			18,295			(37.3)	%
Net interest income	$	16,853		$	15,363		9.7	%	$	17,529		(3.9)	%	$	48,782		$	52,374		(6.9)	%
Average balance of:
Loans	$	1,564,704		$	1,554,011		0.7	%	$	1,396,437		12.0	%	$	1,524,628		$	1,372,704		11.1	%
Investment securities	128,212			120,336			6.5	%	161,528			(20.6)	%	122,371			165,638			(26.1)	%
Other interest-earning assets	260,426			245,447			6.1	%	135,774			91.8	%	221,698			143,616			54.4	%
Total interest-earning assets	$	1,953,342		$	1,919,794		1.7	%	$	1,693,739		15.3	%	$	1,868,697		$	1,681,958		11.1	%
Interest-bearing deposits	$	1,063,962		$	1,109,307		(4.1)	%	$	1,126,376		(5.5)	%	$	1,100,855		$	1,128,606		(2.5)	%
Borrowings	130,000			130,330			(0.3)	%	20,326			539.6	%	95,276			26,820			255.2	%
Total interest-bearing liabilities	$	1,193,962		$	1,239,637		(3.7)	%	$	1,146,702		4.1	%	$	1,196,131		$	1,155,426		3.5	%
Total funding ^(1)^	$	1,746,217		$	1,713,812		1.9	%	$	1,488,560		17.3	%	$	1,661,765		$	1,481,130		12.2	%
Annualized average yield/cost of:
Loans	4.81		%	4.73		%			6.22		%			5.05		%	6.31		%
Investment securities	1.60		%	1.80		%			2.40		%			1.85		%	2.53		%
Other interest-earning assets	0.26		%	0.26		%			2.43		%			0.57		%	2.57		%
Total interest-earning assets	4.00		%	3.97		%			5.55		%			4.31		%	5.62		%
Interest-bearing deposits	0.97		%	1.24		%			2.13		%			1.33		%	2.12		%
Borrowings	0.51		%	0.62		%			1.91		%			0.66		%	1.84		%
Total interest-bearing liabilities	0.92		%	1.17		%			2.13		%			1.28		%	2.12		%
Net interest margin	3.43		%	3.22		%			4.11		%			3.49		%	4.16		%
Cost of total funding ^(1)^	0.63		%	0.85		%			1.64		%			0.92		%	1.65		%
Supplementary information
Net accretion of discount on loans included in interest on loans	$	743		$	530		40.2	%	$	1,031		(27.9)	%	$	2,301		$	3,083		(25.4)	%
Net amortization of deferred loan fees (costs)	$	1,218		$	649		87.7	%	$	118		932.2	%	$	1,988		$	327		508.0	%

(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 and year compared with the same periods of 2019 was primarily due to the SBA PPP loan production in the previous quarter as well as an increase in commercial property loans. The increase in average yield for the current quarter compared with the previous quarter was primarily due to an increase in net accretion of discount on loans from the increase in loan payoffs and an increase in amortization of net deferred fees on SBA PPP loans. The decreases in average yield for the current quarter and year compared with the same periods of 2019 were primarily due to the lower market rates, the low interest rate on SBA PPP loans, and a decrease in net accretion of discount.

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:

	9/30/2020						6/30/2020						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	40.6	%	4.12	%	38.4	%	4.18	%	28.2	%	5.29	%	24.2	%	5.40	%
Hybrid rate loans	12.2	%	4.98	%	13.3	%	4.99	%	15.2	%	5.03	%	16.3	%	5.04	%
Variable rate loans	47.2	%	4.10	%	48.3	%	4.11	%	56.6	%	5.51	%	59.5	%	5.88	%

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 the 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 fourth quarter of 2019. During the current quarter and year, and past 12-month period, the Company purchased investment securities of $12.2 million, $36.6 million and $42.4 million, respectively.

Other Interest-Earning Assets. The decreases in average yield for the current quarter and year compared with the same periods of 2019 were primarily due to the lower market rates. The increases in average balance for the current quarter and year compared with the same periods of 2019 were primarily due to increases in deposits and other borrowings during the current quarter and year 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 year as a part of the Company’s liquidity management. At September 30, 2020, the Company had a total outstanding FHLB advances of $130.0 million with a weighted-average rate of 0.51%.

Provision (reversal) for Loan Losses

Provision (reversal) for loan losses was $4.3 million for the current quarter compared with $3.9 million for the previous quarter and $(102) thousand for the year-ago quarter. For the nine months ended September 30, 2020 and 2019, provision for loan losses was $11.1 million and $207 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 $4.3 million and $11.1 million for the current quarter and year, respectively. The Company recorded net charge-offs of $28 thousand for the current quarter compared with $281 thousand for the previous quarter and $132 thousand for the year-ago quarter. For the nine months ended September 30, 2020 and 2019, the Company recorded net charge-offs of $911 thousand and $280 thousand, respectively.

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

	9/30/2020			6/30/2020			12/31/2019			9/30/2019
Total loans held-for-investment	$	1,578,804		$	1,553,589		$	1,450,831		$	1,389,830
Less: SBA PPP loans	136,418			133,675			—			—
Total loans held-for-investment, excluding SBA PPP loans	$	1,442,386		$	1,419,914		$	1,450,831		$	1,389,830
Allowance for loan losses	$	24,546		$	20,248		$	14,380		$	13,094
Allowance for loan losses to total loans held-for-investment	1.55		%	1.30		%	0.99		%	0.94		%
Allowance for loan losses to total loans held-for-investment, excluding SBA PPP loans	1.70		%	1.43		%	0.99		%	0.94		%

Noninterest Income

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

	Three Months Ended
($ in thousands)	9/30/2020		6/30/2020		% Change		9/30/2019		% Change		9/30/2020		9/30/2019		% Change
Gain on sale of loans	$	821	$	1,498	(45.2)	%	$	1,540	(46.7)	%	$	3,044	$	4,551	(33.1)	%
Service charges and fees on deposits	280		275		1.8	%	405		(30.9)	%	945		1,137		(16.9)	%
Loan servicing income	856		902		(5.1)	%	534		60.3	%	2,312		1,657		39.5	%
Other income	315		243		29.6	%	323		(2.5)	%	915		920		(0.5)	%
Total noninterest income	$	2,272	$	2,918	(22.1)	%	$	2,802	(18.9)	%	$	7,216	$	8,265	(12.7)	%

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)	9/30/2020		6/30/2020		% Change		9/30/2019		% Change		9/30/2020		9/30/2019		% Change
Gain on sale of SBA loans
Sold loan balance	$	8,582	$	27,066	(68.3)	%	$	22,186	(61.3)	%	$	47,363	$	72,537	(34.7)	%
Premium received	917		2,042		(55.1)	%	2,061		(55.5)	%	4,015		6,288		(36.1)	%
Gain recognized	689		1,448		(52.4)	%	1,498		(54.0)	%	2,841		4,487		(36.7)	%
Gain on sale of residential property loans
Sold loan balance	$	16,585	$	6,118	171.1	%	$	4,661	255.8	%	$	24,782	$	7,432	233.4	%
Gain recognized	132		50		164.0	%	42		214.3	%	203		64		217.2	%

The Company maintained SBA loans held-for-sale of $26.8 million and residential property loans held-for-sale of $4.0 million at September 30, 2020. All of these loans held-for-sale were sold subsequent to the balance sheet date.

Loan Servicing Income. The Company services SBA loans and certain residential property loans that are sold to the secondary market. The increases for current quarter and year compared with the same period of 2019 were primarily due to a decrease in servicing asset amortization from a lower loan payoffs. The following table presents information on loan servicing income for the periods indicated.

	Three Months Ended
($ in thousands)	9/30/2020		6/30/2020		% Change		9/30/2019		% Change		9/30/2020		9/30/2019		% Change
Loan servicing income:
Servicing income received	$	1,244	$	1,294	(3.9)	%	$	1,195	4.1	%	$	3,696	$	3,532	4.6	%
Servicing assets amortization	(388)		(392)		(1.0)	%	(661)		(41.3)	%	(1,384)		(1,875)		(26.2)	%
Loan servicing income	$	856	$	902	(5.1)	%	$	534	60.3	%	$	2,312	$	1,657	39.5	%
Underlying loans at end of period	$	484,651	$	494,000	(1.9)	%	$	493,923	(1.9)	%	$	484,651	$	493,923	(1.9)	%

Noninterest Expense

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

	Three Months Ended
($ in thousands)	9/30/2020		6/30/2020		% Change		9/30/2019		% Change		9/30/2020		9/30/2019		% Change
Salaries and employee benefits	$	6,438	$	5,761	11.8	%	$	6,901	(6.7)	%	$	18,750	$	20,123	(6.8)	%
Occupancy and equipment	1,416		1,400		1.1	%	1,408		0.6	%	4,196		4,128		1.6	%
Professional fees	325		509		(36.1)	%	664		(51.1)	%	1,631		2,108		(22.6)	%
Marketing and business promotion	193		548		(64.8)	%	292		(33.9)	%	920		1,049		(12.3)	%
Data processing	373		366		1.9	%	348		7.2	%	1,097		1,004		9.3	%
Director fees and expenses	125		107		16.8	%	188		(33.5)	%	453		562		(19.4)	%
Regulatory assessments	267		242		10.3	%	—		—	%	728		425		71.3	%
Other expenses	749		763		(1.8)	%	976		(23.3)	%	2,374		2,651		(10.4)	%
Total noninterest expense	$	9,886	$	9,696	2.0	%	$	10,777	(8.3)	%	$	30,149	$	32,050	(5.9)	%

Salaries and Employee Benefits. The increase for the current quarter compared with the previous quarter was primarily due to a direct loan origination cost of $1.1 million related to SBA PPP loan production during the previous quarter, which offsets the recognition of salaries and benefits expense, partially offset by a decrease in vacation accrual. The decrease for the current quarter compared with the year-ago quarter was primarily due to a decrease in bonus accrual, partially offset by increases in wages and other employee benefits. The decrease for the current year compared with the previous year was primarily due to the increase in direct loan origination cost related to the SBA PPP loan production 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. During the current quarter, the consent order related to the Bank's BSA/AML was terminated.

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

Regulatory Assessments. The increases for the current quarter and year compared with the same periods of 2019 were primarily due to a small bank credit received from the FDIC during the year-ago quarter, as well as an increase in balance sheet. The Company would have recognized regulatory assessments expense of $228 thousand without the small bank credit for the year-ago quarter

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)	9/30/2020		6/30/2020		% Change		12/31/2019		% Change		9/30/2019		% Change
Real estate loans:
Commercial property	$	853,708	$	813,409	5.0	%	$	803,014	6.3	%	$	759,881	12.3	%
Residential property	212,804		223,923		(5.0)	%	235,046		(9.5)	%	236,382		(10.0)	%
SBA property	128,038		122,675		4.4	%	129,837		(1.4)	%	126,347		1.3	%
Construction	19,803		20,432		(3.1)	%	19,164		3.3	%	17,175		15.3	%
Commercial and industrial loans:
Commercial term	90,867		98,936		(8.2)	%	103,380		(12.1)	%	105,433		(13.8)	%
Commercial lines of credit	92,222		96,339		(4.3)	%	111,768		(17.5)	%	95,997		(3.9)	%
SBA commercial term	23,011		22,650		1.6	%	25,332		(9.2)	%	25,326		(9.1)	%
SBA PPP	136,418		133,675		2.1	%	—		—	%	—		—	%
Other consumer loans	21,933		21,550		1.8	%	23,290		(5.8)	%	23,289		(5.8)	%
Loans held-for-investment	1,578,804		1,553,589		1.6	%	1,450,831		8.8	%	1,389,830		13.6	%
Loans held-for-sale	30,878		4,102		652.8	%	1,975		1,463.4	%	1,583		1,850.6	%
Total loans	$	1,609,682	$	1,557,691	3.3	%	$	1,452,806	10.8	%	$	1,391,413	15.7	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding of $61.0 million and advances on lines of credit of $20.5 million, partially offset by pay-downs and pay-offs of $56.1 million. The increase for the current year was primarily due to new funding of $295.3 million and advances on lines of credit of $77.0 million, partially offset by pay-downs and pay-offs of $242.3 million.

The increase in loans held-for-sale for the current quarter was primarily due to new funding of $51.9 million, partially offset by sales of $25.2 million. The increase for the current year was primarily due to new funding of $100.5 million, partially offset by sales of $72.1 million.

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

($ in thousands)	9/30/2020		6/30/2020		% Change		12/31/2019		% Change		9/30/2019		% Change
Real estate loans:
Commercial property	$	17,621	$	16,962	3.9	%	$	15,836	11.3	%	$	17,519	0.6	%
SBA property	—		220		(100.0)	%	1,405		(100.0)	%	1,523		(100.0)	%
Construction	15,366		16,451		(6.6)	%	11,557		33.0	%	10,254		49.9	%
Commercial and industrial loans:
Commercial term	1,000		1,000		—	%	1,243		(19.5)	%	1,826		(45.2)	%
Commercial lines of credit	173,080		159,753		8.3	%	140,690		23.0	%	139,412		24.2	%
SBA commercial term	—		—		—	%	762		(100.0)	%	391		(100.0)	%
Other consumer loans	75		45		66.7	%	115		(34.8)	%	25		200.0	%
Total commitments to extend credit	$	207,142	$	194,431	6.5	%	$	171,608	20.7	%	$	170,950	21.2	%

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)	9/30/2020			6/30/2020			% Change		12/31/2019			% Change		9/30/2019			% Change
Nonaccrual loans:
Real estate loans:
SBA property	$	923		$	1,351		(31.7)	%	$	442		108.8	%	$	1,441		(35.9)	%
Commercial and industrial loans:
Commercial lines of credit	1,525			1,968			(22.5)	%	1,888			(19.2)	%	327			366.4	%
SBA commercial term	378			381			(0.8)	%	159			137.7	%	68			455.9	%
Other consumer loans	67			70			(4.3)	%	48			39.6	%	7			857.1	%
Total nonaccrual loans held-for-investment	2,893			3,770			(23.3)	%	2,537			14.0	%	1,843			57.0	%
Loans past due 90 days or more and still accruing	699			696			0.4	%	287			143.6	%	—			—	%
Non-performing loans (“NPLs”)	3,592			4,466			(19.6)	%	2,824			27.2	%	1,843			94.9	%
Other real estate owned (“OREO”)	376			376			—	%	—			—	%	—			—	%
Non-performing assets (“NPAs”)	$	3,968		$	4,842		(18.1)	%	$	2,824		40.5	%	$	1,843		115.3	%
Loans past due and still accruing:
Past due 30 to 59 days	$	298		$	311		(4.2)	%	$	893		(66.6)	%	$	664		(55.1)	%
Past due 60 to 89 days	3			113			(97.3)	%	925			(99.7)	%	59			(94.9)	%
Past due 90 days or more	699			696			0.4	%	287			143.6	%	—			—	%
Total loans past due and still accruing	$	1,000		$	1,120		(10.7)	%	2,105			(52.5)	%	$	723		38.3	%
Troubled debt restructurings (“TDRs”):
Accruing TDRs	$	649		$	669		(3.0)	%	$	700		(7.3)	%	$	713		(9.0)	%
Nonaccrual TDRs	38			40			(5.0)	%	121			(68.6)	%	249			(84.7)	%
Total TDRs	$	687		$	709		(3.1)	%	$	821		(16.3)	%	$	962		(28.6)	%
Criticized loans	$	4,746		$	71		6,584.5	%	$	1,783		166.2	%	$	1,763		169.2	%
Classified assets
Classified loans	$	4,860		$	5,809		(16.3)	%	$	8,862		(45.2)	%	$	7,878		(38.3)	%
OREO	376			376			—	%	—			—	%	—			—	%
Classified assets	$	5,236		$	6,185		(15.3)	%	$	8,862		(40.9)	%	$	7,878		(33.5)	%
NPLs to loans held-for-investment	0.23		%	0.29		%			0.19		%			0.13		%
NPAs to total assets	0.20		%	0.24		%			0.16		%			0.11		%
Classified assets to total assets	0.26		%	0.31		%			0.51		%			0.46		%

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

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”) Act. Therefore, the modified loans were not considered TDRs. The following table presents a summary of loans with modifications related to the COVID-19 pandemic by portfolio segment as of September 30, 2020:

	Modification Type								Weighted-Average Contractual Rate
($ in thousands)	Payment Deferment		Interest Only		Total
Real estate loans:
Commercial property	$	135,165	$	2,397	$	137,562	4.49	%	$	3,048
Residential property	19,233		—		19,233		4.91	%	519
Commercial and industrial loans:
Commercial term	11,797		2,960		14,757		4.29	%	309
SBA commercial term	—		72		72		5.25	%	1
Total	$	166,195	$	5,429	$	171,624	4.52	%	$	3,877

Investment Securities

During the previous 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. 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 $129.0 million at September 30, 2020, an increase of $933 thousand, or 0.7%, from $128.0 million at June 30, 2020 and an increase of $11.3 million, or 9.6%, from $117.7 million at December 31, 2019, but a decrease of $27.2 million, or 17.4%, from $156.2 million at September 30, 2019.

The increase for the current quarter was primarily due to purchases of $12.2 million, partially offset by principal pay-downs and calls of $11.1 million and net premium amortization of $243 thousand. The increase for the current year was primarily due to purchases of $36.6 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 $27.6 million and net premium amortization of $656 thousand.

Deposits

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

	9/30/2020						6/30/2020						12/31/2019
($ in thousands)	Amount		% to Total		Amount		% to Total		Amount		% to Total		Amount		% to Total
Noninterest-bearing demand deposits	$	576,086	35.0	%	$	551,415	33.5	%	$	360,039	24.3	%	$	353,448	24.7	%
Interest-bearing deposits:
Savings	11,124		0.7	%	8,258		0.5	%	6,492		0.4	%	8,206		0.6	%
NOW	21,726		1.3	%	21,173		1.3	%	17,673		1.2	%	16,108		1.1	%
Retail money market accounts	344,939		20.9	%	339,444		20.6	%	307,980		20.8	%	307,663		21.5	%
Brokered money market accounts	30,001		1.9	%	10		0.1	%	30,034		2.0	%	10,003		0.7	%
Retail time deposits of:
$250,000 or less	312,171		18.9	%	347,382		21.0	%	405,004		27.5	%	417,549		29.1	%
More than $250,000	167,208		10.2	%	170,180		10.3	%	199,726		13.5	%	206,785		14.4	%
Time deposits from internet rate service providers	31,852		1.9	%	37,068		2.3	%	—		—	%	—		—	%
State and brokered time deposits	152,000		9.2	%	172,000		10.4	%	152,359		10.3	%	112,500		7.9	%
Total interest-bearing deposits	1,071,021		65.0	%	1,095,515		66.5	%	1,119,268		75.7	%	1,078,814		75.3	%
Total deposits	$	1,647,107	100.0	%	$	1,646,930	100.0	%	$	1,479,307	100.0	%	$	1,432,262	100.0	%

The increase in noninterest-bearing demand deposits for the current quarter was primarily due to the deposit increases from customers with SBA PPP loans and SBA Economic Injury Disaster Loans, as well as the overall liquid deposit market. A total of $117.3 million of SBA PPP loans were funded through the Bank's noninterest-bearing demand deposits and deposit customers also received $93.5 million of SBA Economic Injury Disaster Loans during the past 6-month period.

The decrease in retail time deposits for the current quarter was primarily due to matured and closed accounts of $157.4 million, partially offset by new accounts of $24.1 million and renewals of the matured accounts of $91.9 million. The decrease in retail time deposits for the current year was primarily due to matured and closed accounts of $515.5 million, partially offset by new accounts of $73.8 million and renewals of the matured accounts of $305.1 million.

Liquidity

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

($ in thousands)	9/30/2020
Cash and cash equivalents	$	257,382
Cash and cash equivalents to total assets	12.7		%
Available borrowing capacity:
FHLB advances	$	321,067
Federal Reserve Discount Window	33,801
Overnight federal funds lines	65,000
Total	$	419,868
Total available borrowing capacity to total assets	20.8		%

Shareholders’ Equity

Shareholders’ equity was $229.3 million at September 30, 2020, an increase of $2.1 million, or 0.9%, from $227.2 million at June 30, 2020, an increase of $2.5 million, or 1.1%, from $226.8 million at December 31, 2019, and an increase of $4.7 million, or 2.1%, from $224.6 million at September 30, 2019. The increase for the current quarter was primarily due to net 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 and an increase in accumulated other comprehensive income, partially offset by repurchases of common stock of $6.5 million (repurchased and retired 428,474 shares) and cash dividend declared on common stock of $4.6 million.

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:

	9/30/2020		6/30/2020		12/31/2019		9/30/2019		Well Capitalized Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)	15.60	%	15.83	%	15.87	%	16.30	%	N/A
Total capital (to risk-weighted assets)	16.86	%	17.09	%	16.90	%	17.27	%	N/A
Tier 1 capital (to risk-weighted assets)	15.60	%	15.83	%	15.87	%	16.30	%	N/A
Tier 1 capital (to average assets)	11.40	%	11.49	%	13.23	%	12.87	%	N/A
Pacific City Bank
Common tier 1 capital (to risk-weighted assets)	15.34	%	15.58	%	15.68	%	16.11	%	6.5	%
Total capital (to risk-weighted assets)	16.60	%	16.83	%	16.71	%	17.08	%	10.0	%
Tier 1 capital (to risk-weighted assets)	15.34	%	15.58	%	15.68	%	16.11	%	8.0	%
Tier 1 capital (to average assets)	11.21	%	11.30	%	13.06	%	12.72	%	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 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)

	9/30/2020			6/30/2020			% Change		12/31/2019			% Change		9/30/2019			% Change
Assets
Cash and due from banks	$	13,572		$	18,255		(25.7)	%	$	17,808		(23.8)	%	$	22,546		(39.8)	%
Interest-bearing deposits in financial institutions	243,810			289,348			(15.7)	%	128,420			89.9	%	99,366			145.4	%
Total cash and cash equivalents	257,382			307,603			(16.3)	%	146,228			76.0	%	121,912			111.1	%
Securities available-for-sale, at fair value	128,982			128,049			0.7	%	97,566			32.2	%	134,602			(4.2)	%
Securities held-to-maturity	—			—			—	%	20,154			(100.0)	%	21,601			(100.0)	%
Total investment securities	128,982			128,049			0.7	%	117,720			9.6	%	156,203			(17.4)	%
Loans held-for-sale	30,878			4,102			652.8	%	1,975			1,463.4	%	1,583			1,850.6	%
Loans held-for-investment, net of deferred loan costs (fees)	1,578,804			1,553,589			1.6	%	1,450,831			8.8	%	1,389,830			13.6	%
Allowance for loan losses	(24,546)			(20,248)			21.2	%	(14,380)			70.7	%	(13,094)			87.5	%
Net loans held-for-investment	1,554,258			1,533,341			1.4	%	1,436,451			8.2	%	1,376,736			12.9	%
Premises and equipment, net	4,355			4,542			(4.1)	%	3,760			15.8	%	4,008			8.7	%
Federal Home Loan Bank and other bank stock	8,447			8,447			—	%	8,345			1.2	%	8,345			1.2	%
Other real estate owned, net	376			376			—	%	—			—	%	—			—	%
Deferred tax assets, net	7,454			6,347			17.4	%	5,288			41.0	%	3,389			119.9	%
Servicing assets	6,166			6,399			(3.6)	%	6,798			(9.3)	%	6,899			(10.6)	%
Operating lease assets	7,329			7,843			(6.6)	%	8,991			(18.5)	%	9,561			(23.3)	%
Accrued interest receivable	11,246			9,498			18.4	%	5,136			119.0	%	4,906			129.2	%
Other assets	4,314			4,230			2.0	%	5,636			(23.5)	%	5,904			(26.9)	%
Total assets	$	2,021,187		$	2,020,777		—	%	$	1,746,328		15.7	%	$	1,699,446		18.9	%
Liabilities
Deposits:
Noninterest-bearing demand	$	576,086		$	551,415		4.5	%	$	360,039		60.0	%	$	353,448		63.0	%
Savings, NOW and money market accounts	407,790			368,885			10.5	%	362,179			12.6	%	341,980			19.2	%
Time deposits of $250,000 or less	406,023			466,450			(13.0)	%	467,363			(13.1)	%	440,049			(7.7)	%
Time deposits of more than $250,000	257,208			260,180			(1.1)	%	289,726			(11.2)	%	296,785			(13.3)	%
Total deposits	1,647,107			1,646,930			—	%	1,479,307			11.3	%	1,432,262			15.0	%
Federal Home Loan Bank advances	130,000			130,000			—	%	20,000			550.0	%	20,000			550.0	%
Operating lease liabilities	8,204			8,758			(6.3)	%	9,990			(17.9)	%	10,574			(22.4)	%
Accrued interest payable and other liabilities	6,537			7,856			(16.8)	%	10,197			(35.9)	%	11,967			(45.4)	%
Total liabilities	1,791,848			1,793,544			(0.1)	%	1,519,494			17.9	%	1,474,803			21.5	%
Commitments and contingent liabilities
Shareholders’ equity
Common stock, no par value	163,960			163,759			0.1	%	169,221			(3.1)	%	169,224			(3.1)	%
Retained earnings	63,443			61,532			3.1	%	57,670			10.0	%	54,768			15.8	%
Accumulated other comprehensive income (loss), net	1,936			1,942			(0.3)	%	(57)			NM		651			197.4	%
Total shareholders’ equity	229,339			227,233			0.9	%	226,834			1.1	%	224,643			2.1	%
Total liabilities and shareholders’ equity	$	2,021,187		$	2,020,777		—	%	$	1,746,328		15.7	%	$	1,699,446		18.9	%
Outstanding common shares	15,379,538			15,377,935					15,707,016					15,710,287
Book value per common share ^(1)^	$	14.91		$	14.78				$	14.44				$	14.30
Total loan to total deposit ratio	97.73		%	94.58		%			98.21		%			97.15		%
Noninterest-bearing deposits to total deposits	34.98		%	33.48		%			24.34		%			24.68		%

(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
	9/30/2020			6/30/2020			% Change		9/30/2019			% Change		9/30/2020			9/30/2019			% Change
Interest income:
Interest and fees on loans	$	18,938		$	18,273		3.6	%	$	21,876		(13.4)	%	$	57,617		$	64,779		(11.1)	%
Interest on investment securities	515			539			(4.5)	%	978			(47.3)	%	1,698			3,133			(45.8)	%
Interest and dividend on other interest-earning assets	167			161			3.7	%	833			(80.0)	%	938			2,757			(66.0)	%
Total interest income	19,620			18,973			3.4	%	23,687			(17.2)	%	60,253			70,669			(14.7)	%
Interest expense:
Interest on deposits	2,599			3,409			(23.8)	%	6,060			(57.1)	%	11,000			17,925			(38.6)	%
Interest on other borrowings	168			201			(16.4)	%	98			71.4	%	471			370			27.3	%
Total interest expense	2,767			3,610			(23.4)	%	6,158			(55.1)	%	11,471			18,295			(37.3)	%
Net interest income	16,853			15,363			9.7	%	17,529			(3.9)	%	48,782			52,374			(6.9)	%
Provision (reversal) for loan losses	4,326			3,855			12.2	%	(102)			NM		11,077			207			5,251.2	%
Net interest income after provision (reversal) for loan losses	12,527			11,508			8.9	%	17,631			(28.9)	%	37,705			52,167			(27.7)	%
Noninterest income:
Gain on sale of loans	821			1,498			(45.2)	%	1,540			(46.7)	%	3,044			4,551			(33.1)	%
Service charges and fees on deposits	280			275			1.8	%	405			(30.9)	%	945			1,137			(16.9)	%
Loan servicing income	856			902			(5.1)	%	534			60.3	%	2,312			1,657			39.5	%
Other income	315			243			29.6	%	323			(2.5)	%	915			920			(0.5)	%
Total noninterest income	2,272			2,918			(22.1)	%	2,802			(18.9)	%	7,216			8,265			(12.7)	%
Noninterest expense:
Salaries and employee benefits	6,438			5,761			11.8	%	6,901			(6.7)	%	18,750			20,123			(6.8)	%
Occupancy and equipment	1,416			1,400			1.1	%	1,408			0.6	%	4,196			4,128			1.6	%
Professional fees	325			509			(36.1)	%	664			(51.1)	%	1,631			2,108			(22.6)	%
Marketing and business promotion	193			548			(64.8)	%	292			(33.9)	%	920			1,049			(12.3)	%
Data processing	373			366			1.9	%	348			7.2	%	1,097			1,004			9.3	%
Director fees and expenses	125			107			16.8	%	188			(33.5)	%	453			562			(19.4)	%
Regulatory assessments	267			242			10.3	%	—			—	%	728			425			71.3	%
Other expenses	749			763			(1.8)	%	976			(23.3)	%	2,374			2,651			(10.4)	%
Total noninterest expense	9,886			9,696			2.0	%	10,777			(8.3)	%	30,149			32,050			(5.9)	%
Income before income taxes	4,913			4,730			3.9	%	9,656			(49.1)	%	14,772			28,382			(48.0)	%
Income tax expense	1,464			1,363			7.4	%	2,871			(49.0)	%	4,384			8,432			(48.0)	%
Net income	$	3,449		$	3,367		2.4	%	$	6,785		(49.2)	%	$	10,388		$	19,950		(47.9)	%
Earnings per common share
Basic	$	0.22		$	0.22				$	0.43				$	0.67		$	1.25
Diluted	$	0.22		$	0.22				$	0.42				$	0.67		$	1.23
Average shares
Basic	15,343,888			15,337,405					15,816,269					15,395,475			15,943,603
Diluted	15,377,531			15,373,655					16,099,598					15,466,207			16,231,848
Dividend paid per common share	$	0.10		$	0.10				$	0.06				$	0.20		$	0.17
Return on average assets ^(1)^	0.69		%	0.69		%			1.55		%			0.73		%	1.55		%
Return on average shareholders’ equity^(1), (2)^	5.98		%	5.98		%			12.02		%			6.10		%	12.15		%
Efficiency ratio^(3)^	51.69		%	53.04		%			53.01		%			53.84		%	52.85		%

(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
	9/30/2020										6/30/2020								9/30/2019
	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)^	$	1,564,704	$	18,938	4.81	%	$	1,554,011	$	18,273	4.73	%	$	1,396,437	$	21,876	6.22	%
Mortgage-backed securities	75,832		339		1.78	%	63,692		317		2.00	%	84,052		521		2.46	%
Collateralized mortgage obligation	33,393		82		0.98	%	37,745		122		1.30	%	50,891		286		2.23	%
SBA loan pool securities	12,996		57		1.74	%	13,189		62		1.89	%	20,751		133		2.54	%
Municipal bonds ^(2)^	5,991		37		2.46	%	5,710		38		2.68	%	5,834		38		2.58	%
Other interest-earning assets	260,426		167		0.26	%	245,447		161		0.26	%	135,774		833		2.43	%
Total interest-earning assets	1,953,342		19,620		4.00	%	1,919,794		18,973		3.97	%	1,693,739		23,687		5.55	%
Noninterest-earning assets:
Cash and cash equivalents	17,094						16,031						18,927
Allowance for loan losses	(21,268)						(17,320)						(13,273)
Other assets	42,446						37,959						35,564
Total noninterest-earning assets	38,272						36,670						41,218
Total assets	$	1,991,614					$	1,956,464					$	1,734,957
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Deposits:
NOW and money market accounts	$	365,093	391		0.43	%	$	371,992	548		0.59	%	$	351,581	1,432		1.62	%
Savings	9,517		2		0.08	%	6,966		3		0.17	%	7,043		6		0.34	%
Time deposits	689,352		2,206		1.27	%	730,349		2,858		1.57	%	767,752		4,622		2.39	%
Total interest-bearing deposits	1,063,962		2,599		0.97	%	1,109,307		3,409		1.24	%	1,126,376		6,060		2.13	%
Federal Home Loan Bank advances	130,000		168		0.51	%	130,330		201		0.62	%	20,326		98		1.91	%
Total interest-bearing liabilities	1,193,962		2,767		0.92	%	1,239,637		3,610		1.17	%	1,146,702		6,158		2.13	%
Noninterest-bearing liabilities
Noninterest-bearing demand	552,255						474,175						341,858
Other liabilities	15,934						16,198						22,465
Total noninterest-bearing liabilities	568,189						490,373						364,323
Total liabilities	1,762,151						1,730,010						1,511,025
Total shareholders’ equity	229,463						226,454						223,932
Total liabilities and shareholders’ equity	$	1,991,614					$	1,956,464					$	1,734,957
Net interest income			$	16,853					$	15,363					$	17,529
Net interest spread^(3)^					3.08	%					2.80	%					3.42	%
Net interest margin ^(4)^					3.43	%					3.22	%					4.11	%
Total deposits	$	1,616,217	$	2,599	0.64	%	$	1,583,482	$	3,409	0.87	%	$	1,468,234	$	6,060	1.64	%
Total funding ^(5)^	$	1,746,217	$	2,767	0.63	%	$	1,713,812	$	3,610	0.85	%	$	1,488,560	$	6,158	1.64	%

(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)

	Nine Months Ended
	9/30/2020										9/30/2019
	Average Balance		Interest Income/ Expense		Avg. Yield/Rate		Average Balance		Interest Income/ Expense		Avg. Yield/Rate
Assets
Interest-earning assets:
Total loans ^(1)^	$	1,524,628	$	57,617	5.05	%	$	1,372,704	$	64,779	6.31	%
Mortgage-backed securities	65,713		985		2.00	%	85,452		1,629		2.55	%
Collateralized mortgage obligation	37,500		402		1.43	%	52,927		969		2.45	%
SBA loan pool securities	13,351		198		1.98	%	21,392		420		2.62	%
Municipal bonds ^(2)^	5,807		113		2.60	%	5,867		115		2.62	%
Other interest-earning assets	221,698		938		0.57	%	143,616		2,757		2.57	%
Total interest-earning assets	1,868,697		60,253		4.31	%	1,681,958		70,669		5.62	%
Noninterest-earning assets:
Cash and cash equivalents	17,324						18,650
Allowance for loan losses	(17,676)						(13,185)
Other assets	38,255						35,370
Total noninterest-earning assets	37,903						40,835
Total assets	$	1,906,600					$	1,722,793
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Deposits:
NOW and money market accounts	$	367,222	2,058		0.75	%	$	322,917	3,903		1.62	%
Savings	7,706		8		0.14	%	8,214		28		0.46	%
Time deposits	725,927		8,934		1.64	%	797,475		13,994		2.35	%
Total interest-bearing deposits	1,100,855		11,000		1.33	%	1,128,606		17,925		2.12	%
Federal Home Loan Bank advances	95,276		471		0.66	%	26,820		370		1.84	%
Total interest-bearing liabilities	1,196,131		11,471		1.28	%	1,155,426		18,295		2.12	%
Noninterest-bearing liabilities
Noninterest-bearing demand	465,634						325,704
Other liabilities	17,493						22,077
Total noninterest-bearing liabilities	483,127						347,781
Total liabilities	1,679,258						1,503,207
Total shareholders’ equity	227,342						219,586
Total liabilities and shareholders’ equity	$	1,906,600					$	1,722,793
Net interest income			$	48,782					$	52,374
Net interest spread^(3)^					3.03	%					3.50	%
Net interest margin ^(4)^					3.49	%					4.16	%
Total deposits	$	1,566,489	$	11,000	0.94	%	$	1,454,310	$	17,925	1.65	%
Total funding ^(5)^	$	1,661,765	$	11,471	0.92	%	$	1,481,130	$	18,295	1.65	%

(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.

pcbinvestordeckq320

Earnings Results Third Quarter 2020 October 27, 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 6 of top 10 Korean-American MSAs in the U.S. through our branches and LPOs (1) (1) Based on total population projected for 2018 by S&P Global Market Intelligence. your Partner • Choice • Bank | 4

Equity Information As of October 23, 2020 Ticker PCB Market Cap $147.6 million Price Per Share $9.60 52 Week Range $7.97 - $17.55 Dividend Yield (Dividend Payout Ratio) 4.17% (40.4% 4Q19-3Q20) Number of Shares 15,379,538 Historical Quarterly Cash Dividend Per Share 0.120 0.100 25% 0.080 33% 20% 0.060 $0.100 $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 3Q20 (1) Retrospectively adjusted for 10% stock dividend payouts on 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 $1.58 $1.48 $1.34 $1.45 $1.44 0.600 0.600 $1.25 $1.19 $1.09 $1.03 $0.94 0.400 $0.84 0.400 0.200 0.200 0.000 0.000 2015 2016 2017 2018 2019 Sep-20 2015 2016 2017 2018 2019 Sep-20 Net Income ($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 $10.4 $0.67 0.200 0.000 0.000 2015 2016 2017 2018 2019 09/20 YTD 2015 2016 2017 2018 2019 09/20 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 0.73% 6.10% 0.020 0.002 0.000 0.000 2015 2016 2017 2018 2019 09/20 YTD 2015 2016 2017 2018 2019 09/20 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% 3.49% 0.520 54.9% 0.015 53.8% 0.510 52.8% 0.010 52.0% 52.3% 0.500 0.005 0.490 0.000 2015 2016 2017 2018 2019 09/20 YTD 2015 2016 2017 2018 2019 09/20 YTD your Partner • Choice • Bank | 7

COVID-19 Update As of September 30, 2020 o SBA PPP Loans • 1,614 loans with aggregated contractual loan balance of $139.4 million • Origination fee income of $5.7 million and cost of $1.1 million o Loan Modification Related to COVID-19 • 154 customers for aggregated loan balance of $171.6 million o Allowance for Loan Losses • Established 1.55% of total loans held-for-investment (1.70% excluding SBA PPP loans) o Liquidity • Maintained cash and cash equivalents of $257.4 million, or 12.7% of total assets • Maintained available borrowing capacity of $419.9 million, or 20.8% of total assets o Capital • Bank’s Tier 1 leverage capital ratio of 11.21% and CET 1 capital ratio of 15.34% your Partner • Choice • Bank | 8

Recent Financial Performance your Partner • Choice • Bank | 9

3Q20 Highlights As of or For the Quarter Ended o Recorded a provision for loan losses ($ in thousands except per share data) 09/30/20 06/30/20 09/30/19 of $4.3 million in 3Q20 primarily due Income Statement Summary: to an increase in the economic Interest Income $ 19,620 $ 18,973 $ 23,687 uncertainty due to the COVID-19 Interest Expense 2,767 3,610 6,158 pandemic Net Interest Income 16,853 15,363 17,529 Noninterest Income 2,272 2,918 2,802 o Allowance for loan losses to HFI loans Noninterest Expense 9,886 9,696 10,777 ratio was 1.55% at September 30, Provision for Loan Losses 4,326 3,855 (102) 2020 compared with 1.30% at June Pretax Income 4,913 4,730 9,656 30, 2020. Excluding PPP loans, the Income Tax Expense 1,464 1,363 2,871 ratio was 1.70% and 1.43% at Net Income 3,449 3,367 6,785 September 30, 2020 and June 30, Diluted Earnings Per Share (“EPS”) $ 0.22 $ 0.22 $ 0.42 2020, respectively o Declared cash dividend of $0.10 per Selected Balance Sheet Items: Loans held-for-investment (“HFI”) $ 1,578,804 $ 1,553,589 $ 1,389,830 share in 3Q20 Loans held-for-sale (“HFS”) 30,878 4,102 1,583 o SBA PPP loans totaled $136 million Total Deposits 1,647,107 1,646,930 1,432,262 (1,614 loans), net of deferred fees Total Assets 2,021,187 2,020,777 1,699,446 and costs Shareholders’ Equity 229,339 227,233 224,643 o Loans with modifications related to the COVID-19 pandemic totaled $172 Key Metrics: Book Value (“BV”) Per Share $ 14.91 $ 14.78 $ 14.30 million (154 customers) Return on Average Assets (“ROAA”) (1) 0.69% 0.69% 1.55% o Termination of the consent order Return on Average Equity (“ROAE”) (1) 5.98% 5.98% 12.02% related to the Bank’s BSA/AML Net Interest Margin (“NIM”) 3.43% 3.22% 4.11% compliance Efficiency Ratio 51.69% 53.04% 53.01% (1) Annualized. your Partner • Choice • Bank | 10

Loan Overview HFI Loan Trend HFI Loan Composition ($ in millions) September 30, 2020 Other Consumer Commercial and Industrial SBA PPP Residential Property 1% YoY +13.6% 13% 13% 1,800 9% $1,554 $1,579 1,600 Commercial Property - Commercial Property - $1,451 $1,451 Owner Occupied $1,396 $1,390 $134 $136 Non-Owner Occupied 25% 1,400 $1,339 $1,343 $23 $23 $22 $24 $23 $22 39% $26 $25 $235 $227 $213 $241 $236 $224 1,200 $234 $237 $206 $240 $244 $218 1,000 $232 $227 $221 $221 800 Commercial Real Estate(1) Loan Trend ($ in millions) 600 700.0 $1,002 420.0% $953 $957 $956 650.0 254% 245% 250% 242% 244% 249% 247% 257% $899 $904 320.0% 400 $858 $860 600.0 220.0% 550.0 120.0% 500.0 200 20.0% 450.0 $619 -80.0% $565 $559 $584 $565 $580 $587 $590 400.0 -180.0% 0 350.0 -280.0% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 300.0 -380.0% Commercial Property Commercial and Industrial Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-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) September 30, 2020 6.31% 200.0 5.91% 6.02% 5.92% Variable (WA Rate: 4.10%) 6.00% 52% 180.0 5.20% 5.20% Fixed (WA Rate:4.96%) 5.00% 35% 160.0 4.15% 4.14% Hybrid (WA Rate: 4.98%) 4.00% 13% 140.0 $87 3.00% 120.0 $83 2.00% 100.0 $53 $64 1.00% (2) 80.0 $65 $57 Interest Rate Mix Trend 100% $33 0.00% $78 90% 60.0 $31 $22 $25 80% 70% 57% 55% 53% 52% -1.00% 62% 60% 40.0 66% 65% $32 $20 $19 60% $19 50% $52 $50 -2.00% 20.0 $45 40% 13% $13 15% 15% 15% $25 $29 30% 16% $23 $21 17% 17% 17% $13 20% 0.0 -3.00% 33% 35% 10% 28% 30% 17% 18% 21% 24% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 0% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-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 September 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 $50K or Under 1,043 $ 21,551 $ 20,080 $ 1,671 $ 759 $ 559 Between $50K and $150K 357 29,375 29,571 630 989 165 Between $150K and $350K 142 31,304 32,046 259 1,066 65 Between $350K and $2MM 69 45,813 46,232 486 937 32 $2MM or More 3 8,375 8,427 0 54 1 Total 1,614 $ 136,418 $ 136,356 $ 3,046 $ 3,805 $ 822 Summary of relationships of SBA PPP loan customers as of September 30, 2020: SBA PPP Loans Demand Deposit Accounts (“DDAs”) ($ in thousands) # of Loans UPB Sep-20 Mar-20 Change Existing relationships 1,148 $ 103,760 $ 240,483 $ 152,769 $ 87,714 New customers with new DDA relationships 205 22,806 10,566 0 10,566 No other relationships 261 12,836 0 0 0 Total 1,614 $ 139,402 $ 251,049 $ 152,769 $ 98,280 your Partner • Choice • Bank | 13

Loan Modification As of September 30, 2020 Summary of loans with modifications related to the COVID-19 pandemic: Currently Modified Previously Carrying Value Weighted-Average Modified Accrued Accrued Payment Interest Interest Loan-to- Interest Carrying Interest ($ in thousands) Deferment Only Total Rate Value (1) Receivable Value Receivable Commercial property $ 135,165 $ 2,397 $ 137,562 4.49% 48.5% $ 3,048 $ 240,472 $ 3,485 Commercial term 11,797 2,960 14,757 4.29% 309 40,259 387 SBA commercial term 0 72 72 5.25% 1 0 0 Residential property 19,233 0 19,233 4.91% 54.6% 519 25,231 361 Other consumer 0 0 0 0.00% 0 1,442 6 Total $ 166,195 $ 5,429 $ 171,624 4.52% $ 3,877 $ 307,404 $ 4,239 Summary of modification expiration: During the Month of ($ in thousands) Oct-20 Nov-20 Dec-20 Jan-21 Total Commercial property Principal deferment $ 122,564 $ 12,601 $ 0 $ 0 $ 135,165 Interest only 0 1,285 1,112 0 2,397 Commercial term Principal deferment 9,937 1,860 0 0 11,797 Interest only 1,795 0 0 1,165 2,960 SBA commercial term 0 0 0 72 72 Residential property 13,045 5,317 871 0 19,233 Total $ 147,341 $ 21,063 $ 1,983 $ 1,237 $ 171,624 (1) Collateral value at origination your Partner • Choice • Bank | 14

Loan Modification From June 30, 2020 to September 30, 2020 Migration of loans with modifications related to the COVID-19 pandemic: Early Re- New Modification ($ in thousands) Jun-20 Termination Expired Modification Modification Type Change Amortization Sep-20 Commercial property Principal deferment $ 369,716 $ (68,277) $ (162,737) $ 343 $ 0 $ (1,282) $ (2,598) $ 135,165 Interest only 9,850 (9,800) 0 0 1,112 1,282 (47) 2,397 Commercial term Principal deferment 53,277 (25,620) (13,743) 0 0 (1,165) (952) 11,797 Interest only 4,882 0 (2,060) 1,165 0 1,165 (2,192) 2,960 SBA commercial term 0 0 0 0 72 0 0 72 Residential property 44,804 (2,958) (40,534) 18,262 668 0 (1,009) 19,233 Other consumer 1,507 (5) (1,436) 0 7 0 (73) 0 Total $ 484,036 $ (106,660) $ (220,510) $ 19,770 $ 1,859 $ 0 $ (6,871) $ 171,624 HFI loans $ 1,553,589 $ 1,578,804 SBA PPP loans 133,675 136,418 HFI loans, excluding SBA PPP loans $ 1,419,914 $ 1,442,386 Total modified loans to HFI loans, excluding SBA PPP loans 34.1% 11.9% your Partner • Choice • Bank | 15

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% $4.0 0.20% $2.8 0.16% 1.0 $1.7 $1.8 $1.8 0.05% 0.10% 0.11% 0.11% $1.1 0.06% 0.0 0.00% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Allowance(1) to HFI Loans Allowance(1) to Non-Performing Loans 1.80% 1.70% (2) 1400% 1.60% 1.43% (2) 1200% 1.40% 1000% 1.20% 800% 1.00% 0.80% 1.55% 600% 1241% 0.60% 1.30% 1034% 933% 1.15% 400% 0.98% 0.98% 0.99% 0.40% 0.96% 0.94% 710% 683% 200% 509% 453% 0.20% 408% 0.00% 0% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 (1) Allowance for Loan Losses your Partner • Choice • Bank | 16 (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%) $ 185,050 18.5% 51.0% $ 22,656 16.4% 12.2% 46.5% Industrial 174,492 17.4% 49.8% 33,358 24.1% 19.1% 47.5% Mixed Use 136,061 13.6% 47.1% 17,846 13.0% 13.1% 46.6% Motel / Hotel 74,117 7.4% 51.9% 19,787 14.4% 26.7% 50.2% Gas Station 71,878 7.2% 54.0% 3,269 2.4% 4.5% 48.7% Office 69,900 7.0% 54.4% 2,588 1.9% 3.7% 49.2% Apartments 59,714 6.0% 47.4% 5,760 4.2% 9.6% 46.7% Medical 57,033 5.7% 54.2% 351 0.3% 0.6% 62.8% Car Wash 23,059 2.3% 51.6% 2,555 1.9% 11.1% 47.8% Auto - Sales, Repair, etc. 22,246 2.2% 50.6% 254 0.2% 1.1% 24.1% Construction 19,803 2.0% 60.9% 0 0% 0.0% 0.0% Church 16,689 1.7% 50.3% 2,493 1.8% 14.9% 40.3% Spa 16,217 1.6% 57.4% 14,853 10.8% 91.6% 56.2% Condominium - Commercial 13,849 1.4% 52.1% 1,404 1.0% 10.1% 44.6% Supermarket 9,577 1.0% 60.1% 0 0.0% 0.0% 0.0% Golf Course 9,244 0.9% 55.9% 3,379 2.5% 36.6% 49.7% Other 42,620 4.3% 48.6% 7,009 5.1% 16.4% 47.5% Total $ 1,001,549 100.0% 51.1% $ 137,562 100.0% 13.7% 48.5% 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 $ 212,804 56.8% 754 $ 19,233 9.0% 54.6% 730 (1) Collateral value at origination your Partner • Choice • Bank | 17

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 $ 69,231 33.5% $ 2,732 18.3% 3.9% $ 36,325 26.6% Food Services 31,697 15.3% 560 3.8% 1.8% 16,254 11.9% Retail Trade 30,648 14.9% 2,693 18.2% 8.8% 33,694 24.7% Real Estate Related 16,563 8.0% 233 1.6% 1.4% 7,897 5.8% Professional, Scientific, & Technical Services 14,970 7.3% 100 0.7% 0.7% 10,359 7.6% Health Care & Social Assistance 8,823 4.3% 680 4.6% 7.7% 4,301 3.2% Other Services 9,221 4.5% 4,607 31.1% 50.0% 9,864 7.2% Finance & Insurance 7,891 3.8% 0 0.0% 0.0% 2,111 1.5% Entertainment & Recreation 6,909 3.4% 1,326 8.9% 19.2% 1,718 1.3% Transportation & Warehousing 4,889 2.4% 677 4.6% 13.8% 5,972 4.4% Other 5,258 2.6% 1,221 8.2% 23.2% 7,923 5.8% Total $ 206,100 100.0% $ 14,829 100.0% 7.2% $ 136,418 100.0% your Partner • Choice • Bank | 18

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 $ 833,879 83.4% $ 207,325 97.4% $ 170,824 82.7% $ 105,284 77.1% New Jersey 34,420 3.4% 5,479 2.6% 10,972 5.3% 8,221 6.0% New York 37,570 3.8% 0 0% 9,797 4.8% 6,001 4.4% Washington 33,173 3.3% 0 0% 575 0.3% 1,480 1.1% Texas 17,522 1.7% 0 0% 4,244 2.1% 2,610 1.9% Nevada 13,083 1.3% 0 0% 1,309 0.6% 2,803 2.1% Georgia 4,264 0.4% 0 0% 1,321 0.6% 2,834 2.1% Illinois 3,083 0.3% 0 0% 1,554 0.8% 1,225 0.9% Colorado 4,335 0.4% 0 0% 724 0.4% 175 0.1% Virginia 3,455 0.3% 0 0% 249 0.1% 799 0.6% Maryland 1,862 0.2% 0 0% 1,495 0.7% 854 0.6% Oregon 2,491 0.2% 0 0% 174 0.1% 376 0.3% Pennsylvania 2,820 0.3% 0 0% 18 0.1% 35 0.1% Other 9,592 1.0% 0 0% 2,844 1.4% 3,721 2.7% Total $ 1,001,549 100.0% $ 212,804 100.0% $ 206,100 100.0% $ 136,418 100.0% your Partner • Choice • Bank | 19

Credit Quality vs. Peers(1) NPAs / (Total Loans + OREO)(2) Classified Assets to Total Assets(3) September 30, 2020 September 30, 2020 1.40% Peer Data as of June 30, 2020 Peer Data as of June 30, 2020 2.00% 1.21% 1.87% 1.20% 1.80% 1.04% 1.60% 1.51% 1.00% 1.40% 0.80% 0.74% 1.20% 0.63% 1.00% 0.60% 0.48% 0.80% 0.74% 0.40% 0.60% 0.25% 0.40% 0.26% 0.20% 0.17% 0.15% 0.22% 0.07% 0.20% 0.00% 0.00% Hanmi Hope Peer Woori CBB PCB Shinhan US Open Hope Hanmi CBB PCB Open Group America America Metro $1 to $3BN (1) Korean-American banks operating in Southern California your Partner • Choice • Bank | 20 (2) Source: UBPR (3) Source: 10Q or press release concerning financial performance

Deposit Overview Deposit Trend Deposit Composition ($ in millions) September 30, 2020 Internet Time Deposits YoY +15.0% Retail Time Deposits 1,800 2% Retail Other Interest- 29% $1,647 $1,647 Bearing State and Brokered 1,600 23% Deposits $1,479 $1,477 Noninterest $1,444 $1,448 $1,447 $1,432 $172 $182 11% DDA $37 $32 1,400 $143 $158 $118 $123 $182 $175 35% $5 1,200 $518 $479 1,000 $658 $624 $539 $658 $664 $605 800 (1) $369 $378 Core Deposits ($ in millions) 600 $364 79% $331 $332 $332 78% 78% 75% 78% 77% 74% 76% 79% $314 $295 1,400 80% 400 1,300 70% 1,200 $576 60% $551 1,100 50% 200 $394 1,000 $329 $331 $340 $353 $360 40% 900 $1,305 $1,298 30% 800 $1,110 $1,120 $1,124 $1,103 $1,097 $1,126 - $1,081 20% 700 10% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-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 Sep-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 | 21 (“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 $ 107,427 1.69% $ 6,950 0.71% $ 137,000 0.67% $ 251,377 1.11% 3 to 6 Month 170,194 1.58% 7,286 0.69% 15,000 0.55% 192,480 1.46% 6 to 9 Month 84,618 0.86% 17,616 0.73% 0 0.00% 102,234 0.84% 9 to 12 Month 101,333 0.65% 0 0.00% 0 0.00% 101,333 0.65% More than 12 Month 15,807 2.01% 0 0.00% 0 0.00% 15,807 2.01% Total $ 479,379 1.29% $ 31,852 0.72% $ 152,000 0.65% $ 663,231 1.12% FHLB Advances FHLB Advances ($ in thousands) Amount WA Rate Less Than 3 Month $ 50,000 0.26% 3 to 6 Month 40,000 0.59% 6 to 9 Month 30,000 0.32% 9 to 12 Month 0 0.00% More than 12 Month 10,000 2.07% Total $ 130,000 0.51% your Partner • Choice • Bank | 22

Profitability (1) 15.0 Net Income & PTPP Income Diluted EPS & Adjusted Diluted EPS(1) ($ in millions) 13.0 $0.61 $0.63 11.0 $10.0 $10.0 $0.60 $0.59 $0.60 $9.3 $9.8 $9.6 $0.57 $0.56 $8.6 $9.2 $0.51 9.0 $8.0 7.0 5.0 3.0 $6.7 $6.6 $6.6 $6.8 $0.41 $0.40 $0.40 $0.42 $4.2 $3.6 $3.4 $3.4 $0.26 $0.23 $0.22 $0.22 1.0 (1.0) 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Net Income PTPP Diluted EPS Adjusted Diluted EPS ROAA & Adjusted ROAA(1) ROAE & Adjusted ROAE(1) 25.00% 2.50% 2.37% 2.25% 2.32% 2.22% 2.18% 19.11% 20.00% 17.55% 17.76% 17.44% 2.00% 1.82% 1.76% 1.85% 16.93% 16.02% 14.28% 15.25% 15.00% 1.50% 10.00% 1.00% 1.60% 1.57% 1.52% 1.55% 12.92% 5.00% 12.43% 12.01% 12.02% 0.50% 0.96% 0.81% 0.69% 0.69% 7.25% 6.35% 5.98% 5.98% 0.00% 0.00% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 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 | 23 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) 10.7% 5.0 70% 9.1% 9.3% 65.00 7.4% 7.6% 9.0% 7.5% 6.2% 10.0% 62% 62% 55.00 5.0% 4.5 45.00 6.8% 8.0% 6.5% 0.0% 60% 5.2% 5.3% 6.0% 5.3% 55% 35.00 4.0% -5.0% 4.0 51% 25.00 -10.0% 48% 15.00 $29.2 50% $26.2 $27.1 $27.1 3.5 46% $21.2 $22.2 -15.0% 5.00 $11.7 $8.6 $0.8 -5.00 -20.0% 3.0 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 40% SBA Loan Sold $ Premium % Gain % 2.5 36% 36% $1.9 $1.5 30% (1) 2.0 $1.5 $1.4 SBA 7(a) Loan Production $1.1 $0.8 $1.0 $0.7 45.00 ($ in millions) 1.5 20% 40.00 35.00 1.0 30.00 10% $1.5 25.00 $1.3 $1.3 $1.4 $1.3 $1.4 0.5 $1.2 $1.2 20.00 $40.1 $35.1 $37.9 15.00 $26.9 $30.6 0.0 0% 10.00 $22.2 5.00 $14.5 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 $10.7 0.00 Gain on Sale of AFS Securities Gain on Sale of Loans 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 All Other Income Gain % to Total (1) Total commitment basis your Partner • Choice • Bank | 24

Noninterest Expense Noninterest Expense Trend Efficiency Ratio(2) ($ in millions) 64.1% 70.00% 61.8% 62.4% 62.5% 61.9% 62.1% 61.1% 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% 50.4% 52.6% 53.0% 53.0% 50.7% 56.8% 53.0% 51.7% 20.00% 12.0 10.00% 1.98% 1.99% 0.00% 2.00% 10.0 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 $4.4 $3.9 PCB Peer Average $3.7 $4.0 8.0 $3.9 $4.3 $3.5 $3.9 1.50% 6.0 Number of FTE Employees 1.00% 260 258 4.0 256 $6.9 254 $6.2 $6.6 $6.6 $6.0 $6.6 $6.4 $5.8 0.50% 252 2.0 250 259 248 255 246 252 252 - 0.00% 251 244 249 247 248 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 242 240 Compensation All Other Expenses Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 (1) % to Average Total Assets (1) Annualized your Partner • Choice • Bank | 25 (2) Source: Peer $1 to $3 billion per UBPR

Net Interest Margin Yield & Cost(1) 7.00% 6.39% 6.34% 6.33% 6.22% 5.85% 6.00% 5.64% 4.81% 5.00% 4.73% 4.33% 4.22% 4.17% 4.11% 3.96% 3.85% 4.00% 3.43% 3.22% 3.00% 2.06% 2.17% 2.13% 1.89% 1.99% 2.00% 1.77% 1.17% 1.69% 1.62% 1.64% 1.53% 0.92% 1.00% 1.47% 1.34% 0.85% 0.63% 0.00% 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Loan Yield NIM Cost of Int-Bearing Liab Cost of Funds (1) Annualized your Partner • Choice • Bank | 26

Capital Ratios & BV Per Share Bank Regulatory Capital Ratios 15.50 BV Per Share 18.00% September 30, 2020 15.00 14.50 16.00% 14.00 13.50 14.00% $14.91 $14.58 $14.78 $14.30 $14.44 13.00 $13.98 $13.57 12.00% 12.50 $13.16 12.00 10.00% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 8.00% 16.60% 15.34% 15.34% Total Equity to Total Assets (1) 13.50% 6.00% 11.21% 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% 0.00% 11.35% 10.50% 11.24% Tier 1 Leverage CET 1 Capital Tier 1 Capital Total Capital 10.00% Actual Minimum Requirement For Well-Capitalized Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 (1) The Company did not have any intangible equity components for the presented periods. your Partner • Choice • Bank | 27

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 | 28

Non-GAAP Measures The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ in thousands) 12/31/18 03/31/19 06/30/19 09/30/19 12/31/19 03/31/20 06/30/20 09/30/20 Total Deposits $ 1,443,753 $ 1,447,758 $ 1,446,526 $ 1,432,262 $ 1,479,307 $ 1,477,442 $ 1,646,930 $ 1,647,107 Less: Time Deposits Greater Than $250K (281,239) (329,693) (284,780) (296,785) (289,726) (266,970) (260,180) (257,208) Less: Brokered Deposits (42,500) (37,510) (27,510) (32,503) (92,393) (84,506) (82,010) (92,001) Core Deposits $ 1,120,014 $ 1,080,555 $ 1,124,236 $ 1,102,974 $ 1,097,188 $ 1,125,966 $ 1,304,740 $ 1,297,898 Core Deposits to Total Deposits 77.6% 74.6% 77.7% 77.0% 74.2% 76.2% 79.2% 78.8% your Partner • Choice • Bank | 29

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) 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Net Income (a)$ 6,732 $ 6,564 $ 6,601 $ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 Add: Provision for Loan Losses 294 (85) 394 (102) 4,030 2,896 3,855 4,326 Add: Income Tax Provision 2,934 2,794 2,767 2,871 1,811 1,557 1,363 1,464 PTPP Income (Non-GAAP) (b)$ 9,960 $ 9,273 $ 9,762 $ 9,554 $ 9,999 $ 8,025 $ 8,585 $ 9,239 Average Total Assets (c)$ 1,669,770 $ 1,690,349 $ 1,742,584 $ 1,734,957 $ 1,710,370 $ 1,770,785 $ 1,956,464 $ 1,991,614 ROAA (1) (a)/(c) 1.60% 1.57% 1.52% 1.55% 0.96% 0.81% 0.69% 0.69% Adjusted ROAA (Non-GAAP)(1) (b)/(c) 2.37% 2.22% 2.25% 2.18% 2.32% 1.82% 1.76% 1.85% Average Total Shareholders' Equity (d)$ 206,740 $ 214,234 $ 220,486 $ 223,932 $ 227,472 $ 226,086 $ 226,454 $ 229,463 ROAE (1) (a)/(d) 12.92% 12.43% 12.01% 12.02% 7.25% 6.35% 5.98% 5.98% Adjusted ROAE (Non-GAAP)(1) (b)/(d) 19.11% 17.55% 17.76% 16.93% 17.44% 14.28% 15.25% 16.02% Net Income $ 6,732 $ 6,564 $ 6,601 $ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 Less: Income Allocated to Participating Securities 0 0 0 0 (10) (9) (8) (8) Net Income Allocated to Common Stock (e) 6,732 6,564 6,601 6,785 4,148 3,563 3,359 3,441 Add: Provision for Loan Losses 294 (85) 394 (102) 4,030 2,896 3,855 4,326 Add: Income Tax Provision 2,934 2,794 2,767 2,871 1,811 1,557 1,363 1,464 PTPP Income Allocated to Common Stock (f)$ 9,960 $ 9,273 $ 9,762 $ 9,554 $ 9,989 $ 8,016 $ 8,577 $ 9,231 WA common shares outstanding, diluted (g) 16,244,837 16,271,269 16,330,039 16,099,598 15,948,793 15,700,144 15,373,655 15,377,531 Diluted EPS (e)/(g)$ 0.41 $ 0.40 $ 0.40 $ 0.42 $ 0.26 $ 0.23 $ 0.22 $ 0.22 Adjusted Diluted EPS (Non-GAAP) (f)/(g)$ 0.61 $ 0.57 $ 0.60 $ 0.59 $ 0.63 $ 0.51 $ 0.56 $ 0.60 (1) Annualized. your Partner • Choice • Bank | 30