Equibles

8-K

PCB BANCORP (PCB)

8-K 2021-01-28 For: 2021-01-28
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Added on April 06, 2026

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): January 28, 2021

PCB BANCORP

(Exact name of registrant as specified in its charter)

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

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

Not Applicable

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

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

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

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

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

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

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

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

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

Emerging growth company ☒

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

Item 2.02 Results of Operations and Financial Condition.

On January 28, 2021, PCB Bancorp, a California corporation (the “Company”), issued a press release concerning its unaudited results for the fourth 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 8.01 Other Events.

on January 28, 2021, its Board of Directors declared a quarterly cash dividend of $0.10 per common share. The dividend will be paid on or about February 19, 2021, to shareholders of record as of the close of business on February 10, 2021. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1    Press release of PCB Bancorp, issued January 28, 2021

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

EXHIBIT INDEX

Exhibit No. Description
99.1 Press Release of PCB Bancorp, issuedpcber20210128.htmJanuary 28, 2021
99.2 Investor presentation of PCB Bancorp concerning the unaudited results for thefourthquarter 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: January 28, 2021 /s/ Timothy Chang
Timothy Chang
Executive Vice President and Chief Financial Officer

4

Document

Exhibit 99.1

pcbbancorplogo011.jpg

PCB Bancorp Reports Earnings of $5.8 million for Q4 2020 and Declares $0.10 Quarterly Cash Dividend

Los Angeles, California - January 28, 2021 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of Pacific City Bank (the “Bank”), today reported net income of $5.8 million, or $0.38 per diluted common share for the fourth quarter of 2020, compared with $3.4 million, or $0.22 per diluted common share, for the previous quarter and $4.2 million, or $0.26 per diluted common share, for the year-ago quarter.

Q4 2020 Highlights

•Net income totaled $5.8 million or $0.38 per diluted common share;

◦The Company recorded a provision for loan losses of $2.1 million primarily due to increases in special mention and classified loans as a result of the ongoing COVID-19 pandemic.

◦Allowance for loan losses to total loans held-for-investment ratio was 1.67% at December 31, 2020 compared with 1.55% at September 30, 2020 and 0.99% at December 31, 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 1.83% and 1.70% at December 31, 2020 and September 30, 2020, respectively.

◦Net interest margin was 3.64% for the fourth quarter of 2020 compared with 3.43% for the previous quarter and 3.96% for the year-ago quarter.

•Total assets were $1.92 billion at December 31, 2020, a decrease of $98.3 million, or 4.9%, from $2.02 billion at September 30, 2020, but an increase of $176.5 million, or 10.1%, from $1.75 billion at December 31, 2019;

•Loans held-for-investment, net of deferred costs (fees), were $1.58 billion at December 31, 2020, an increase of $4.8 million, or 0.3%, from $1.58 billion at September 30, 2020 and an increase of $132.7 million, or 9.1%, from $1.45 billion at December 31, 2019;

◦SBA PPP loans totaled $135.7 million and $136.4 million at December 31, 2020 and September 30, 2020, respectively.

◦Loans under modified terms related to COVID-19 totaled $36.1 million at December 31, 2020 compared with $171.6 million at September 30, 2020.

•Total deposits were $1.59 billion at December 31, 2020, a decrease of $52.3 million from $1.65 billion at September 30, 2020, but an increase of $115.5 million, or 7.8%, from $1.48 billion at December 31, 2019;

•The Company declared and paid a cash dividend of $0.10 per common share for the fourth quarter of 2020 compared with $0.10 per common share for the third quarter of 2020 and $0.08 per common share for the fourth quarter of 2019.

“In a year of the most challenging financial environment since the great financial crisis, I am proud of the way we have immediately responded to the needs of our valued customers by modifying their loans proactively at the onset of COVID-19 pandemic, and originating more than 1,600 PPP loans totaling $140 million. We have successfully managed to end the year stronger by delivering a solid fourth quarter net income of $5.8 million, or $0.38 per diluted common share. We have also continuously elevated our allowance coverage ratio to 1.67% in spite of reducing modified loans under the CARES Act to $36.1 million, or 2.5% of our loan balance (excluding SBA PPP loans), and maintaining a solid credit portfolio where nonperforming assets were 0.24% of total assets at year-end,” commented Henry Kim, President and Chief Executive Officer.

“As a result of reduction in the cost of our deposits and gradual reduction of our excess liquidity that was accumulated at the onset of COVID-19 pandemic, our net interest margin expanded to 3.64% in the fourth quarter compared with 3.43% in the third quarter.”

“Looking ahead, with additional government economic assistance programs and a wider distribution of the vaccines, I am confident that our solid balance sheet combined with strong capital levels that is complemented by our robust allowance coverage ratio will safely lead our institution pass this unprecedented period and deliver even more value to our shareholders.”

Financial Highlights (Unaudited)

( in thousands, except per share data) Three Months Ended Year Ended
9/30/2020 % Change 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Net income $ 5,787 $ 3,449 67.8 % $ 4,158 39.2 % $ 16,175 $ 24,108 (32.9) %
Diluted earnings per common share $ 0.38 $ 0.22 72.7 % $ 0.26 46.2 % $ 1.04 $ 1.49 (30.2) %
Net interest income $ 17,407 $ 16,853 3.3 % $ 16,660 4.5 % $ 66,189 $ 69,034 (4.1) %
Provision for loan losses 2,142 4,326 (50.5) % 4,030 (46.8) % 13,219 4,237 212.0 %
Noninterest income 4,524 2,272 99.1 % 3,604 25.5 % 11,740 11,869 (1.1) %
Noninterest expense 11,550 9,886 16.8 % 10,265 12.5 % 41,699 42,315 (1.5) %
Return on average assets (1) 1.19 % 0.69 % 0.96 % 0.84 % 1.40 %
Return on average shareholders’ equity (1), (2) 9.92 % 5.98 % 7.25 % 7.08 % 10.88 %
Net interest margin (1) 3.64 % 3.43 % 3.96 % 3.53 % 4.11 %
Efficiency ratio (3) 52.67 % 51.69 % 50.66 % 53.51 % 52.30 %

All values are in US Dollars.

($ in thousands, except per share data) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change
Total assets $ 1,922,853 $ 2,021,187 (4.9) % $ 1,746,328 10.1 %
Net loans held-for-investment 1,557,068 1,554,258 0.2 % 1,436,451 8.4 %
Total deposits 1,594,851 1,647,107 (3.2) % 1,479,307 7.8 %
Book value per common share (2), (4) $ 15.19 $ 14.91 1.9 % $ 14.44 5.2 %
Tier 1 leverage ratio (consolidated) 11.94 % 11.40 % 13.23 %
Total shareholders’ equity to total assets (2) 12.16 % 11.35 % 12.99 %

(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 $135.7 million (1,585 loans) and loans under modified terms related to the COVID-19 pandemic totaled $36.1 million (39 loan customers) as of December 31, 2020. During the current quarter, the Company received SBA PPP forgiveness of $1.8 million for 57 SBA PPP loans. On January 13, 2021, SBA began accepting applications for second draw PPP loans. The Company is accepting applications and will continue to receive applications as long as funding remains available.

In addition, the Company has been monitoring its liquidity and capital closely. As of December 31, 2020, the Company maintained $194.1 million, or 10.1% of total assets, of cash and cash equivalents and $526.1 million, or 27.4% of total assets, of available borrowing capacity. All regulatory capital ratios were also well above the regulatory well capitalized requirements as of December 31, 2020, while establishing provision for loan losses of $13.2 million for the current year.

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 Year Ended
($ in thousands) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Interest income/expense on:
Loans $ 18,929 $ 18,938 — % $ 20,888 (9.4) % $ 76,546 $ 85,667 (10.6) %
Investment securities 429 515 (16.7) % 823 (47.9) % 2,127 3,956 (46.2) %
Other interest-earning assets 150 167 (10.2) % 565 (73.5) % 1,088 3,322 (67.2) %
Total interest-earning assets 19,508 19,620 (0.6) % 22,276 (12.4) % 79,761 92,945 (14.2) %
Interest-bearing deposits 1,958 2,599 (24.7) % 5,514 (64.5) % 12,958 23,439 (44.7) %
Borrowings 143 168 (14.9) % 102 40.2 % 614 472 30.1 %
Total interest-bearing liabilities 2,101 2,767 (24.1) % 5,616 (62.6) % 13,572 23,911 (43.2) %
Net interest income $ 17,407 $ 16,853 3.3 % $ 16,660 4.5 % $ 66,189 $ 69,034 (4.1) %
Average balance of:
Loans $ 1,592,705 $ 1,564,704 1.8 % $ 1,415,781 12.5 % $ 1,541,740 $ 1,383,562 11.4 %
Investment securities 123,785 128,212 (3.5) % 146,454 (15.5) % 122,726 160,803 (23.7) %
Other interest-earning assets 187,592 260,426 (28.0) % 108,919 72.2 % 213,124 134,870 58.0 %
Total interest-earning assets $ 1,904,082 $ 1,953,342 (2.5) % $ 1,671,154 13.9 % $ 1,877,590 $ 1,679,235 11.8 %
Interest-bearing deposits $ 1,050,369 $ 1,063,962 (1.3) % $ 1,097,957 (4.3) % $ 1,088,164 $ 1,120,880 (2.9) %
Borrowings 91,467 130,000 (29.6) % 21,141 332.7 % 94,319 25,388 271.5 %
Total interest-bearing liabilities $ 1,141,836 $ 1,193,962 (4.4) % $ 1,119,098 2.0 % $ 1,182,483 $ 1,146,268 3.2 %
Total funding (1) $ 1,691,758 $ 1,746,217 (3.1) % $ 1,460,781 15.8 % $ 1,669,303 $ 1,475,999 13.1 %
Annualized average yield/cost of:
Loans 4.73 % 4.81 % 5.85 % 4.96 % 6.19 %
Investment securities 1.38 % 1.60 % 2.23 % 1.73 % 2.46 %
Other interest-earning assets 0.32 % 0.26 % 2.06 % 0.51 % 2.46 %
Total interest-earning assets 4.08 % 4.00 % 5.29 % 4.25 % 5.53 %
Interest-bearing deposits 0.74 % 0.97 % 1.99 % 1.19 % 2.09 %
Borrowings 0.62 % 0.51 % 1.91 % 0.65 % 1.86 %
Total interest-bearing liabilities 0.73 % 0.92 % 1.99 % 1.15 % 2.09 %
Net interest margin 3.64 % 3.43 % 3.96 % 3.53 % 4.11 %
Cost of total funding (1) 0.49 % 0.63 % 1.53 % 0.81 % 1.62 %
Supplementary information
Net accretion of discount on loans $ 991 $ 743 33.4 % $ 938 5.7 % $ 3,292 $ 4,022 (18.2) %
Net amortization of deferred loan fees (costs) $ 913 $ 1,218 (25.0) % $ 125 630.4 % $ 2,901 $ 452 541.8 %

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

12/31/2020 9/30/2020 12/31/2019
% to Total Loans Weighted-Average Contractual Rate % to Total Loans Weighted-Average Contractual Rate % to Total Loans Weighted-Average Contractual Rate
Fixed rate loans 31.7 % 3.86 % 32.0 % 3.92 % 20.6 % 5.34 %
Hybrid rate loans 20.8 % 4.82 % 20.8 % 4.93 % 22.8 % 5.07 %
Variable rate loans 47.5 % 4.06 % 47.2 % 4.10 % 56.6 % 5.51 %

Investment Securities. The decrease in average yield for the current quarter compared with the previous quarter was primarily due to new investment securities purchased at lower market rates and an increase in premium amortization on mortgage backed securities. 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, the Company purchased investment securities of $2.7 million and $39.4 million, respectively.

Other Interest-Earning Assets. The increase in average yield for the current quarter compared with the previous quarter was primarily due to a decrease in proportion of interest-bearing deposits in other financial institutions that had an average yield of 0.10%. 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. For additional detail, please see the 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 increase in average cost for the current quarter compared with the previous quarter was primarily due to matured borrowings with lower interest rates during the current quarter. During the current quarter, FHLB advances of $50.0 million with a weighted-average rate of 0.26% matured. During the current year, the Company maintained a higher balance of Federal Home Loan Bank (“FHLB”) advances as a part of the Company’s liquidity management plan. At December 31, 2020, the Company had a total outstanding FHLB advances of $80.0 million with a weighted-average rate of 0.67%.

Provision for Loan Losses

Provision for loan losses was $2.1 million for the current quarter compared with $4.3 million for the previous quarter and $4.0 million for the year-ago quarter. For the years ended December 31, 2020 and 2019, provision for loan losses was $13.2 million and $4.2 million, respectively. The provision for the current quarter was primarily due to increases in special mention and classified loans as a result of the ongoing COVID-19 pandemic. The provision for the current year was primarily driven by the increase in risks associated with economic and business conditions, as well as the increases in special mention and classified loans, as a result of the COVID-19 pandemic. The Company recorded net charge-offs of $178 thousand for the current quarter compared with $28 thousand for the previous quarter and $2.7 million for the year-ago quarter. For the years ended December 31, 2020 and 2019, the Company recorded net charge-offs of $1.1 million and $3.0 million, respectively.

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

($ in thousands) 12/31/2020 9/30/2020 12/31/2019
Total loans held-for-investment $ 1,583,578 $ 1,578,804 $ 1,450,831
Less: SBA PPP loans 135,654 136,418 —
Total loans held-for-investment, excluding SBA PPP loans $ 1,447,924 $ 1,442,386 $ 1,450,831
Allowance for loan losses $ 26,510 $ 24,546 $ 14,380
Allowance for loan losses to total loans held-for-investment 1.67 % 1.55 % 0.99 %
Allowance for loan losses to total loans held-for-investment, excluding SBA PPP loans 1.83 % 1.70 % 0.99 %

Noninterest Income

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

Three Months Ended Year Ended
($ in thousands) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Gain on sale of loans $ 3,483 $ 821 324.2 % $ 1,445 141.0 % $ 6,527 $ 5,996 8.9 %
Gain on sale of securities available-for-sale — — — % 786 (100.0) % — 786 (100.0) %
Service charges and fees on deposits 311 280 11.1 % 407 (23.6) % 1,256 1,544 (18.7) %
Loan servicing income 398 856 (53.5) % 652 (39.0) % 2,710 2,309 17.4 %
Other income 332 315 5.4 % 314 5.7 % 1,247 1,234 1.1 %
Total noninterest income $ 4,524 $ 2,272 99.1 % $ 3,604 25.5 % $ 11,740 $ 11,869 (1.1) %

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

Three Months Ended Year Ended
($ in thousands) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Gain on sale of SBA loans
Sold loan balance $ 42,413 $ 8,582 394.2 % $ 27,072 56.7 % $ 89,776 $ 99,609 (9.9) %
Premium received 4,441 917 384.3 % 2,067 114.9 % 8,456 8,355 1.2 %
Gain recognized 3,197 689 364.0 % 1,428 123.9 % 6,038 5,915 2.1 %
Gain on sale of residential property loans
Sold loan balance $ 27,139 $ 16,585 63.6 % $ 2,636 929.6 % $ 51,921 $ 10,068 415.7 %
Gain recognized 286 132 116.7 % 17 1,582.4 % 489 81 503.7 %

The increase in sale of SBA loans was primarily due to SBA loans held-for-sale of $26.8 million at September 30, 2020, which were sold during the current quarter. The increase in sale of residential property loans was primarily due to residential property loans held-for-sale of $4.0 million at September 30, 2020, which were sold during the current quarter, and an increased demand for refinancing from the lower market rates.

Gain on Sale of Securities Available-For-Sale. The Company sold securities available-for-sale of $32.8 million during the year-ago quarter. The Company did not sell any investment securities during the current year.

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

Three Months Ended Year Ended
($ in thousands) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Loan servicing income:
Servicing income received $ 961 $ 1,244 (22.7) % $ 1,159 (17.1) % $ 4,657 $ 4,691 (0.7) %
Servicing assets amortization (563) (388) 45.1 % (507) 11.0 % (1,947) (2,382) (18.3) %
Loan servicing income $ 398 $ 856 (53.5) % $ 652 (39.0) % $ 2,710 $ 2,309 17.4 %
Underlying loans at end of period $ 498,795 $ 484,651 2.9 % $ 498,616 — % $ 498,795 $ 498,616 — %

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

Noninterest Expense

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

Three Months Ended Year Ended
($ in thousands) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Salaries and employee benefits $ 7,397 $ 6,438 14.9 % $ 6,016 23.0 % $ 26,147 $ 26,139 — %
Occupancy and equipment 1,424 1,416 0.6 % 1,417 0.5 % 5,620 5,545 1.4 %
Professional fees 625 325 92.3 % 622 0.5 % 2,256 2,730 (17.4) %
Marketing and business promotion 440 193 128.0 % 501 (12.2) % 1,360 1,550 (12.3) %
Data processing 375 373 0.5 % 361 3.9 % 1,472 1,365 7.8 %
Director fees and expenses 146 125 16.8 % 189 (22.8) % 599 751 (20.2) %
Regulatory assessments 250 267 (6.4) % 126 98.4 % 978 551 77.5 %
Other expenses 893 749 19.2 % 1,033 (13.6) % 3,267 3,684 (11.3) %
Total noninterest expense $ 11,550 $ 9,886 16.8 % $ 10,265 12.5 % $ 41,699 $ 42,315 (1.5) %

Salaries and Employee Benefits. The increases for the current quarter compared with the previous and year-ago quarters were primarily due to increases in bonus accrual and other employee benefits. The increase for the current year compared with the previous year was primarily due to increases in wages, other employee benefits and vacation accrual, partially offset by direct loan origination costs of $1.1 million related to SBA PPP loan production and a decrease in bonus accrual.

Professional Fees. The increase for the current quarter compared with the previous quarter was primarily due to an increased other professional fees as a part of the year-end processes. The decrease for the current year compared with the previous year was primarily due to a decrease in expenses related to the Bank’s Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”) compliance enhancements. The consent order with the Federal Deposit Insurance Corporation (“FDIC”) and California Department of Financial Protection and Innovation (“CDFPI”) related to the BSA/AML compliance was terminated during the previous quarter.

Marketing and business promotion. The increase for the current quarter compared with the previous quarter was primarily due to the year-end promotion and an increase in advertisement. The decreases for the current quarter and year compared with the same periods of 2019 were primarily due to fewer marketing activities related to the COVID-19 pandemic.

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 and previous year, as well as an increase in balance sheet. The Company would have recognized regulatory assessments expense of $242 thousand and $895 thousand without the small bank credit for the year-ago quarter and previous year, respectively.

Balance Sheet (Unaudited)

Total assets were $1.92 billion at December 31, 2020, a decrease of $98.3 million, or 4.9%, from $2.02 billion at September 30, 2020, but an increase of $176.5 million, or 10.1%, from $1.75 billion at December 31, 2019. The decrease for the current quarter was primarily due to decreases in cash and cash equivalents, loans held-for-sale and investment securities. The decrease in cash and cash equivalents for the current quarter was primarily due to decreases in deposits and other borrowings, partially offset by cash proceeds from sales of loans held-for-sale and paydowns from investment securities. The increase for the current year was primarily due to increases in loans held-for-investment and cash and cash equivalents. The increase in cash and cash equivalents for the current year was primarily due to increases in deposits and other borrowings, partially offset by cash utilized to support the loan growth.

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) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change
Real estate loans:
Commercial property $ 880,736 $ 853,708 3.2 % $ 803,014 9.7 %
Residential property 198,431 212,804 (6.8) % 235,046 (15.6) %
SBA property 126,570 128,038 (1.1) % 129,837 (2.5) %
Construction 15,199 19,803 (23.2) % 19,164 (20.7) %
Commercial and industrial loans:
Commercial term 87,250 90,867 (4.0) % 103,380 (15.6) %
Commercial lines of credit 96,087 92,222 4.2 % 111,768 (14.0) %
SBA commercial term 21,878 23,011 (4.9) % 25,332 (13.6) %
SBA PPP 135,654 136,418 (0.6) % — — %
Other consumer loans 21,773 21,933 (0.7) % 23,290 (6.5) %
Loans held-for-investment 1,583,578 1,578,804 0.3 % 1,450,831 9.1 %
Loans held-for-sale 1,979 30,878 (93.6) % 1,975 0.2 %
Total loans $ 1,585,557 $ 1,609,682 (1.5) % $ 1,452,806 9.1 %

The increase in loans held-for-investment for the current quarter was primarily due to new funding of $50.7 million and advances on lines of credit of $23.5 million, partially offset by pay-downs and pay-offs of $69.2 million. The increase for the current year was primarily due to new funding of $345.9 million and advances on lines of credit of $100.5 million, partially offset by pay-downs and pay-offs of $311.5 million.

The decrease in loans held-for-sale for the current quarter was primarily due to sales of $69.6 million, partially offset by new funding of $40.7 million. The increase for the current year was primarily due to new funding of $141.2 million and transfers of loans from loans held-for-investment of $1.4 million, partially offset by sales of $141.7 million and a transfer to loans held-for-investment of $697 thousand.

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

($ in thousands) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change
Real estate loans:
Commercial property $ 21,016 $ 17,621 19.3 % $ 15,836 32.7 %
SBA property 540 — — % 1,405 (61.6) %
Construction 13,986 15,366 (9.0) % 11,557 21.0 %
Commercial and industrial loans:
Commercial term 1,000 1,000 — % 1,243 (19.5) %
Commercial lines of credit 156,870 173,080 (9.4) % 140,690 11.5 %
SBA commercial term — — — % 762 (100.0) %
Other consumer loans 84 75 12.0 % 115 (27.0) %
Total commitments to extend credit $ 193,496 $ 207,142 (6.6) % $ 171,608 12.8 %

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) 12/31/2020 9/30/2020 % Change 12/31/2019 % Change
Nonaccrual loans:
Real estate loans:
Commercial property $ 524 $ — — % $ — — %
Residential property 189 — — % — — %
SBA property 885 923 (4.1) % 442 100.2 %
Commercial and industrial loans:
Commercial lines of credit 904 1,525 (40.7) % 1,888 (52.1) %
SBA commercial term 595 378 57.4 % 159 274.2 %
Other consumer loans 66 67 (1.5) % 48 37.5 %
Total nonaccrual loans held-for-investment 3,163 2,893 9.3 % 2,537 24.7 %
Loans past due 90 days or more and still accruing — 699 (100.0) % 287 (100.0) %
Non-performing loans (“NPLs”) 3,163 3,592 (11.9) % 2,824 12.0 %
Other real estate owned (“OREO”) 1,401 376 272.6 % — — %
Non-performing assets (“NPAs”) $ 4,564 $ 3,968 15.0 % $ 2,824 61.6 %
Loans past due and still accruing:
Past due 30 to 59 days $ 302 $ 298 1.3 % $ 893 (66.2) %
Past due 60 to 89 days 36 3 1,100.0 % 925 (96.1) %
Past due 90 days or more — 699 (100.0) % 287 (100.0) %
Total loans past due and still accruing $ 338 $ 1,000 (66.2) % 2,105 (83.9) %
Troubled debt restructurings (“TDRs”):
Accruing TDRs $ 634 $ 649 (2.3) % $ 700 (9.4) %
Nonaccrual TDRs 5 38 (86.8) % 121 (95.9) %
Total TDRs $ 639 $ 687 (7.0) % $ 821 (22.2) %
Special mention loans $ 16,461 $ 4,746 246.8 % $ 1,783 823.2 %
Classified assets
Classified loans $ 10,130 $ 4,860 108.4 % $ 8,862 14.3 %
OREO 1,401 376 272.6 % — — %
Classified assets $ 11,531 $ 5,236 120.2 % $ 8,862 30.1 %
NPLs to loans held-for-investment 0.20 % 0.23 % 0.19 %
NPAs to total assets 0.24 % 0.20 % 0.16 %
Classified assets to total assets 0.60 % 0.26 % 0.51 %

The increases in special mention and classified loans were primarily due to downgrades of loans under modified terms related to the COVID-19 pandemic. Loans that are granted modifications related to the COVID-19 pandemic in excess of 6 months, on a cumulative basis, are classified as special mention or classified. As of December 31, 2020, special mention and classified loans included $14.9 million and $1.9 million of loans under modified terms related to the COVID-19 pandemic, respectively. The special mention loans under modified terms related to the COVID-19 pandemic included 2 commercial property loans totaling $10.3 million, 4 commercial term loans totaling $4.4 million, and a SBA property loan of $251 thousand. The classified loans under modified terms related to the COVID-19 pandemic included 2 commercial term loans totaling $1.2 million, a commercial property loan of $706 thousand, and a SBA commercial term loan of $72 thousand.

Loan Modifications Related to the COVID-19 Pandemic

The Company provided modifications, including interest only payments or payment deferrals, to customers that were adversely affected by the COVID-19 pandemic. The loan modifications met all criteria under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Therefore, the modified loans were not considered TDRs. Total loans under modified terms related to the COVID-19 pandemic were $36.1 million at December 31, 2020, a decrease of $135.5 million, or 79.0%, from $171.6 million at September 30, 2020 and a decrease of $447.9 million, or 92.5%, from $484.0 million at June 30, 2020.

The following table presents a summary of loans under modified terms related to the COVID-19 pandemic by portfolio segment as of December 31, 2020:

Modification Type Weighted-Average Contractual Rate Accrued Interest Receivable
($ in thousands) Payment Deferment Interest Only Payment Total
Real estate loans:
Commercial property $ 9,688 $ 14,444 $ 24,132 4.10 % $ 151
Residential property 425 — 425 4.75 % 12
SBA property — 4,192 4,192 4.79 % 26
Commercial and industrial loans:
Commercial term 2,462 3,065 5,527 3.88 % 98
SBA commercial term — 1,841 1,841 5.41 % 7
Total $ 12,575 $ 23,542 $ 36,117 4.22 % $ 294

Investment Securities

On June 30, 2020, 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 $120.5 million at December 31, 2020, a decrease of $8.5 million, or 6.6%, from $129.0 million at September 30, 2020, but an increase of $2.8 million, or 2.4%, from $117.7 million at December 31, 2019.

The decrease for the current quarter was primarily due to principal pay-downs and calls of $10.9 million and net premium amortization of $282 thousand, partially offset by purchases of $2.7 million. The increase for the current year was primarily due to purchases of $39.4 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 $38.5 million and net premium amortization of $938 thousand.

Deposits

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

12/31/2020 9/30/2020 12/31/2019
($ in thousands) Amount % to Total Amount % to Total Amount % to Total
Noninterest-bearing demand deposits $ 538,009 33.7 % $ 576,086 35.0 % $ 360,039 24.3 %
Interest-bearing deposits:
Savings 10,481 0.7 % 11,124 0.7 % 6,492 0.4 %
NOW 21,604 1.4 % 21,726 1.3 % 17,673 1.2 %
Retail money market accounts 351,739 22.0 % 344,939 20.9 % 307,980 20.8 %
Brokered money market accounts 25,002 1.6 % 30,001 1.9 % 30,034 2.0 %
Retail time deposits of:
$250,000 or less 299,431 18.7 % 312,171 18.9 % 405,004 27.5 %
More than $250,000 168,683 10.6 % 167,208 10.2 % 199,726 13.5 %
Time deposits from internet rate service providers 24,902 1.6 % 31,852 1.9 % — — %
State and brokered time deposits 155,000 9.7 % 152,000 9.2 % 152,359 10.3 %
Total interest-bearing deposits 1,056,842 66.3 % 1,071,021 65.0 % 1,119,268 75.7 %
Total deposits $ 1,594,851 100.0 % $ 1,647,107 100.0 % $ 1,479,307 100.0 %

The increase in noninterest-bearing demand deposits for the current year was primarily due to the overall liquid deposit market. A total of $117.9 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 9-month period; however, the Company believes that most of these funds have been utilized by the customers as of December 31, 2020.

The decrease in retail time deposits for the current quarter was primarily due to matured and closed accounts of $124.0 million, partially offset by new accounts of $23.2 million and renewals of the matured accounts of $86.6 million. The decrease in retail time deposits for the current year was primarily due to matured and closed accounts of $639.5 million, partially offset by new accounts of $97.0 million and renewals of the matured accounts of $391.7 million.

Liquidity

The following table presents a summary of the Company’s liquidity position as of December 31, 2020:

($ in thousands) 12/31/2020
Cash and cash equivalents $ 194,098
Cash and cash equivalents to total assets 10.1 %
Available borrowing capacity:
FHLB advances $ 425,280
Federal Reserve Discount Window 35,799
Overnight federal funds lines 65,000
Total $ 526,079
Total available borrowing capacity to total assets 27.4 %

Shareholders’ Equity

Shareholders’ equity was $233.8 million at December 31, 2020, an increase of $4.4 million, or 1.9%, from $229.3 million at September 30, 2020 and an increase of $7.0 million, or 3.1%, from $226.8 million at December 31, 2019. The increase for the current quarter was primarily due to net income, partially offset by a 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 dividends declared on common stock of $6.2 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:

12/31/2020 9/30/2020 12/31/2019 Well Capitalized Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets) 15.97 % 15.60 % 15.87 % N/A
Total capital (to risk-weighted assets) 17.22 % 16.86 % 16.90 % N/A
Tier 1 capital (to risk-weighted assets) 15.97 % 15.60 % 15.87 % N/A
Tier 1 capital (to average assets) 11.94 % 11.40 % 13.23 % N/A
Pacific City Bank
Common tier 1 capital (to risk-weighted assets) 15.70 % 15.34 % 15.68 % 6.5 %
Total capital (to risk-weighted assets) 16.95 % 16.60 % 16.71 % 10.0 %
Tier 1 capital (to risk-weighted assets) 15.70 % 15.34 % 15.68 % 8.0 %
Tier 1 capital (to average assets) 11.74 % 11.21 % 13.06 % 5.0 %

Declaration of Quarterly Cash Dividend

On January 28, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per common share. The dividend will be paid on or about February 19, 2021, to shareholders of record as of the close of business on February 10, 2021.

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)

12/31/2020 9/30/2020 % Change 12/31/2019 % Change
Assets
Cash and due from banks $ 19,605 $ 13,572 44.5 % $ 17,808 10.1 %
Interest-bearing deposits in financial institutions 174,493 243,810 (28.4) % 128,420 35.9 %
Total cash and cash equivalents 194,098 257,382 (24.6) % 146,228 32.7 %
Securities available-for-sale, at fair value 120,527 128,982 (6.6) % 97,566 23.5 %
Securities held-to-maturity — — — % 20,154 (100.0) %
Total investment securities 120,527 128,982 (6.6) % 117,720 2.4 %
Loans held-for-sale 1,979 30,878 (93.6) % 1,975 0.2 %
Loans held-for-investment, net of deferred loan costs (fees) 1,583,578 1,578,804 0.3 % 1,450,831 9.1 %
Allowance for loan losses (26,510) (24,546) 8.0 % (14,380) 84.4 %
Net loans held-for-investment 1,557,068 1,554,258 0.2 % 1,436,451 8.4 %
Premises and equipment, net 4,048 4,355 (7.0) % 3,760 7.7 %
Federal Home Loan Bank and other bank stock 8,447 8,447 — % 8,345 1.2 %
Other real estate owned, net 1,401 376 272.6 % — — %
Deferred tax assets, net 8,120 7,454 8.9 % 5,288 53.6 %
Servicing assets 6,400 6,166 3.8 % 6,798 (5.9) %
Operating lease assets 7,616 7,329 3.9 % 8,991 (15.3) %
Accrued interest receivable 9,334 11,246 (17.0) % 5,136 81.7 %
Other assets 3,815 4,314 (11.6) % 5,636 (32.3) %
Total assets $ 1,922,853 $ 2,021,187 (4.9) % $ 1,746,328 10.1 %
Liabilities
Deposits:
Noninterest-bearing demand $ 538,009 $ 576,086 (6.6) % $ 360,039 49.4 %
Savings, NOW and money market accounts 408,826 407,790 0.3 % 362,179 12.9 %
Time deposits of $250,000 or less 379,333 406,023 (6.6) % 467,363 (18.8) %
Time deposits of more than $250,000 268,683 257,208 4.5 % 289,726 (7.3) %
Total deposits 1,594,851 1,647,107 (3.2) % 1,479,307 7.8 %
Federal Home Loan Bank advances 80,000 130,000 (38.5) % 20,000 300.0 %
Operating lease liabilities 8,455 8,204 3.1 % 9,990 (15.4) %
Accrued interest payable and other liabilities 5,759 6,537 (11.9) % 10,197 (43.5) %
Total liabilities 1,689,065 1,791,848 (5.7) % 1,519,494 11.2 %
Commitments and contingent liabilities
Shareholders’ equity
Common stock, no par value 164,140 163,960 0.1 % 169,221 (3.0) %
Retained earnings 67,692 63,443 6.7 % 57,670 17.4 %
Accumulated other comprehensive income (loss), net 1,956 1,936 1.0 % (57) NM
Total shareholders’ equity 233,788 229,339 1.9 % 226,834 3.1 %
Total liabilities and shareholders’ equity $ 1,922,853 $ 2,021,187 (4.9) % $ 1,746,328 10.1 %
Outstanding common shares 15,385,878 15,379,538 15,707,016
Book value per common share (1) $ 15.19 $ 14.91 $ 14.44
Total loan to total deposit ratio 99.42 % 97.73 % 98.21 %
Noninterest-bearing deposits to total deposits 33.73 % 34.98 % 24.34 %

(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 Year Ended
12/31/2020 9/30/2020 % Change 12/31/2019 % Change 12/31/2020 12/31/2019 % Change
Interest income:
Interest and fees on loans $ 18,929 $ 18,938 — % $ 20,888 (9.4) % $ 76,546 $ 85,667 (10.6) %
Interest on investment securities 429 515 (16.7) % 823 (47.9) % 2,127 3,956 (46.2) %
Interest and dividend on other interest-earning assets 150 167 (10.2) % 565 (73.5) % 1,088 3,322 (67.2) %
Total interest income 19,508 19,620 (0.6) % 22,276 (12.4) % 79,761 92,945 (14.2) %
Interest expense:
Interest on deposits 1,958 2,599 (24.7) % 5,514 (64.5) % 12,958 23,439 (44.7) %
Interest on other borrowings 143 168 (14.9) % 102 40.2 % 614 472 30.1 %
Total interest expense 2,101 2,767 (24.1) % 5,616 (62.6) % 13,572 23,911 (43.2) %
Net interest income 17,407 16,853 3.3 % 16,660 4.5 % 66,189 69,034 (4.1) %
Provision for loan losses 2,142 4,326 (50.5) % 4,030 (46.8) % 13,219 4,237 212.0 %
Net interest income after provision for loan losses 15,265 12,527 21.9 % 12,630 20.9 % 52,970 64,797 (18.3) %
Noninterest income:
Gain on sale of loans 3,483 821 324.2 % 1,445 141.0 % 6,527 5,996 8.9 %
Gain on sale of securities available-for-sale — — — % 786 (100.0) % — 786 (100.0) %
Service charges and fees on deposits 311 280 11.1 % 407 (23.6) % 1,256 1,544 (18.7) %
Loan servicing income 398 856 (53.5) % 652 (39.0) % 2,710 2,309 17.4 %
Other income 332 315 5.4 % 314 5.7 % 1,247 1,234 1.1 %
Total noninterest income 4,524 2,272 99.1 % 3,604 25.5 % 11,740 11,869 (1.1) %
Noninterest expense:
Salaries and employee benefits 7,397 6,438 14.9 % 6,016 23.0 % 26,147 26,139 — %
Occupancy and equipment 1,424 1,416 0.6 % 1,417 0.5 % 5,620 5,545 1.4 %
Professional fees 625 325 92.3 % 622 0.5 % 2,256 2,730 (17.4) %
Marketing and business promotion 440 193 128.0 % 501 (12.2) % 1,360 1,550 (12.3) %
Data processing 375 373 0.5 % 361 3.9 % 1,472 1,365 7.8 %
Director fees and expenses 146 125 16.8 % 189 (22.8) % 599 751 (20.2) %
Regulatory assessments 250 267 (6.4) % 126 98.4 % 978 551 77.5 %
Other expenses 893 749 19.2 % 1,033 (13.6) % 3,267 3,684 (11.3) %
Total noninterest expense 11,550 9,886 16.8 % 10,265 12.5 % 41,699 42,315 (1.5) %
Income before income taxes 8,239 4,913 67.7 % 5,969 38.0 % 23,011 34,351 (33.0) %
Income tax expense 2,452 1,464 67.5 % 1,811 35.4 % 6,836 10,243 (33.3) %
Net income $ 5,787 $ 3,449 67.8 % $ 4,158 39.2 % $ 16,175 $ 24,108 (32.9) %
Earnings per common share
Basic $ 0.38 $ 0.22 $ 0.26 $ 1.05 $ 1.52
Diluted $ 0.38 $ 0.22 $ 0.26 $ 1.04 $ 1.49
Average shares
Basic 15,350,742 15,343,888 15,665,010 15,384,231 15,873,383
Diluted 15,392,355 15,377,531 15,948,793 15,448,892 16,172,282
Dividend paid per common share $ 0.10 $ 0.10 $ 0.08 $ 0.40 $ 0.25
Return on average assets (1) 1.19 % 0.69 % 0.96 % 0.84 % 1.40 %
Return on average shareholders’ equity (1), (2) 9.92 % 5.98 % 7.25 % 7.08 % 10.88 %
Efficiency ratio (3) 52.67 % 51.69 % 50.66 % 53.51 % 52.30 %

(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
12/31/2020 9/30/2020 12/31/2019
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) $ 1,592,705 $ 18,929 4.73 % $ 1,564,704 $ 18,938 4.81 % $ 1,415,781 $ 20,888 5.85 %
Mortgage-backed securities 76,787 275 1.42 % 75,832 339 1.78 % 75,121 452 2.39 %
Collateralized mortgage obligation 28,743 60 0.83 % 33,393 82 0.98 % 47,032 216 1.82 %
SBA loan pool securities 12,432 57 1.82 % 12,996 57 1.74 % 18,572 116 2.48 %
Municipal bonds (2) 5,823 37 2.53 % 5,991 37 2.46 % 5,729 39 2.70 %
Other interest-earning assets 187,592 150 0.32 % 260,426 167 0.26 % 108,919 565 2.06 %
Total interest-earning assets 1,904,082 19,508 4.08 % 1,953,342 19,620 4.00 % 1,671,154 22,276 5.29 %
Noninterest-earning assets:
Cash and cash equivalents 18,188 17,094 18,507
Allowance for loan losses (25,699) (21,268) (13,232)
Other assets 42,755 42,446 33,941
Total noninterest-earning assets 35,244 38,272 39,216
Total assets $ 1,939,326 $ 1,991,614 $ 1,710,370
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Deposits:
NOW and money market accounts $ 383,507 327 0.34 % $ 365,093 391 0.43 % $ 349,282 1,259 1.43 %
Savings 11,037 1 0.04 % 9,517 2 0.08 % 7,227 4 0.22 %
Time deposits 655,825 1,630 0.99 % 689,352 2,206 1.27 % 741,448 4,251 2.27 %
Total interest-bearing deposits 1,050,369 1,958 0.74 % 1,063,962 2,599 0.97 % 1,097,957 5,514 1.99 %
Federal Home Loan Bank advances 91,467 143 0.62 % 130,000 168 0.51 % 21,141 102 1.91 %
Total interest-bearing liabilities 1,141,836 2,101 0.73 % 1,193,962 2,767 0.92 % 1,119,098 5,616 1.99 %
Noninterest-bearing liabilities
Noninterest-bearing demand 549,922 552,255 341,683
Other liabilities 15,412 15,934 22,117
Total noninterest-bearing liabilities 565,334 568,189 363,800
Total liabilities 1,707,170 1,762,151 1,482,898
Total shareholders’ equity 232,156 229,463 227,472
Total liabilities and shareholders’ equity $ 1,939,326 $ 1,991,614 $ 1,710,370
Net interest income $ 17,407 $ 16,853 $ 16,660
Net interest spread (3) 3.35 % 3.08 % 3.30 %
Net interest margin (4) 3.64 % 3.43 % 3.96 %
Total deposits $ 1,600,291 $ 1,958 0.49 % $ 1,616,217 $ 2,599 0.64 % $ 1,439,640 $ 5,514 1.52 %
Total funding (5) $ 1,691,758 $ 2,101 0.49 % $ 1,746,217 $ 2,767 0.63 % $ 1,460,781 $ 5,616 1.53 %

(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)

Year Ended
12/31/2020 12/31/2019
Average Balance Interest Income/ Expense Avg. Yield/Rate Average Balance Interest Income/ Expense Avg. Yield/Rate
Assets
Interest-earning assets:
Total loans (1) $ 1,541,740 $ 76,546 4.96 % $ 1,383,562 $ 85,667 6.19 %
Mortgage-backed securities 68,496 1,260 1.84 % 82,848 2,081 2.51 %
Collateralized mortgage obligation 35,299 462 1.31 % 51,441 1,185 2.30 %
SBA loan pool securities 13,120 255 1.94 % 20,681 536 2.59 %
Municipal bonds (2) 5,811 150 2.58 % 5,833 154 2.64 %
Other interest-earning assets 213,124 1,088 0.51 % 134,870 3,322 2.46 %
Total interest-earning assets 1,877,590 79,761 4.25 % 1,679,235 92,945 5.53 %
Noninterest-earning assets:
Cash and cash equivalents 17,542 18,614
Allowance for loan losses (19,693) (13,197)
Other assets 39,385 35,010
Total noninterest-earning assets 37,234 40,427
Total assets $ 1,914,824 $ 1,719,662
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Deposits:
NOW and money market accounts $ 371,315 2,385 0.64 % $ 329,562 5,162 1.57 %
Savings 8,543 9 0.11 % 7,965 32 0.40 %
Time deposits 708,306 10,564 1.49 % 783,353 18,245 2.33 %
Total interest-bearing deposits 1,088,164 12,958 1.19 % 1,120,880 23,439 2.09 %
Federal Home Loan Bank advances 94,319 614 0.65 % 25,388 472 1.86 %
Total interest-bearing liabilities 1,182,483 13,572 1.15 % 1,146,268 23,911 2.09 %
Noninterest-bearing liabilities
Noninterest-bearing demand 486,820 329,731
Other liabilities 16,968 22,087
Total noninterest-bearing liabilities 503,788 351,818
Total liabilities 1,686,271 1,498,086
Total shareholders’ equity 228,553 221,576
Total liabilities and shareholders’ equity $ 1,914,824 $ 1,719,662
Net interest income $ 66,189 $ 69,034
Net interest spread (3) 3.10 % 3.44 %
Net interest margin (4) 3.53 % 4.11 %
Total deposits $ 1,574,984 $ 12,958 0.82 % $ 1,450,611 $ 23,439 1.62 %
Total funding (5) $ 1,669,303 $ 13,572 0.81 % $ 1,475,999 $ 23,911 1.62 %

(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.

15

pcbinvestordeckq420

Earnings Results Fourth Quarter 2020 January 28, 2021

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

your Partner • Choice • Bank | 3 Introduction

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

Equity Information your Partner • Choice • Bank | 5 (1) Retrospectively adjusted for 10% stock dividend payouts on February 22, 2016 and January 15, 2017 As of January 25, 2021 Ticker PCB Market Cap $192.4 million Price Per Share $12.45 52 Week Range $7.97 - $15.63 Dividend Yield (Dividend Payout Ratio) 3.21% (38.13% 1Q20-4Q20) Number of Shares 15,451,022 $ 0 .0 2 5 $ 0 .0 2 5 $ 0 .0 2 5 $ 0 .0 2 7 $ 0 .0 2 7 $ 0 .0 2 7 $ 0 .0 2 7 $ 0 .0 3 0 $ 0 .0 3 0 $ 0 .0 3 0 $ 0 .0 3 0 $ 0 .0 3 0 $ 0 .0 3 0 $ 0 .0 3 0 $ 0 .0 3 0 $ 0 .0 5 0 $ 0 .0 6 0 $ 0 .0 6 0 $ 0 .0 8 0 $ 0 .1 0 0 $ 0 .1 0 0 $ 0 .1 0 0 $ 0 .1 0 0 0.0 00 0.0 20 0.0 40 0.0 60 0.0 80 0.1 00 0.1 20 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Q420 67% 20% Historical Quarterly Cash Dividend Per Share (1) (1) 33% 25%

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

Historical Performance your Partner • Choice • Bank | 7 1.25% 1.22% 1.53% 1.40% 0.84% 0.0 0% 0.2 0% 0.4 0% 0.6 0% 0.8 0% 1.0 0% 1.2 0% 1.4 0% 1.6 0% 1.8 0% 2016 2017 2018 2019 2020 Return on Average Assets 12.47% 12.00% 14.26% 10.88% 7.08% 0.0 00 0.0 20 0.0 40 0.0 60 0.0 80 0.1 00 0.1 20 0.1 40 0.1 60 2016 2017 2018 2019 2020 Return on Average Equity 54.9% 52.0% 52.8% 52.3% 53.5% 0.5 00 0.5 05 0.5 10 0.5 15 0.5 20 0.5 25 0.5 30 0.5 35 0.5 40 0.5 45 0.5 50 0.5 55 2016 2017 2018 2019 2020 Efficiency Ratio 4.18% 4.22% 4.23% 4.11% 3.53% 0.0 30 0.0 32 0.0 34 0.0 36 0.0 38 0.0 40 0.0 42 0.0 44 2016 2017 2018 2019 2020 Net Interest Margin

COVID-19 Update your Partner • Choice • Bank | 8 As of December 31, 2020 o SBA PPP Loans • 1,585 loans with aggregated contractual loan balance of $135.7 million • Origination fee income of $5.7 million and cost of $1.1 million o Loan Modification Related to COVID-19 • 39 customers for aggregated loan balance of $36.1 million o Allowance for Loan Losses • Established 1.67% of total loans held-for-investment (1.83% excluding SBA PPP loans) o Liquidity • Maintained cash and cash equivalents of $194.1 million, or 10.1% of total assets • Maintained available borrowing capacity of $526.1 million, or 27.4% of total assets o Capital • Bank’s Tier 1 leverage capital ratio of 11.74% and CET 1 capital ratio of 15.70%

your Partner • Choice • Bank | 9 Recent Financial Performance

4Q20 Highlights your Partner • Choice • Bank | 10 As of or For the Quarter Ended ($ in thousands except per share data) 12/31/20 09/30/20 12/31/19 Income Statement Summary: Interest Income $ 19,508 $ 19,620 $ 22,276 Interest Expense 2,101 2,767 5,616 Net Interest Income 17,407 16,853 16,660 Noninterest Income 4,524 2,272 3,604 Noninterest Expense 11,550 9,886 10,265 Provision for Loan Losses 2,142 4,326 4,030 Pretax Income 8,239 4,913 5,969 Income Tax Expense 2,452 1,464 1,811 Net Income 5,787 3,449 4,158 Diluted Earnings Per Share (“EPS”) $ 0.38 $ 0.22 $ 0.26 Selected Balance Sheet Items: Loans held-for-investment (“HFI”) $ 1,583,578 $ 1,578,804 $ 1,450,831 Loans held-for-sale (“HFS”) 1,979 30,878 1,975 Total Deposits 1,594,851 1,647,107 1,479,307 Total Assets 1,922,853 2,021,187 1,746,328 Shareholders’ Equity 233,788 229,339 226,834 Key Metrics: Book Value (“BV”) Per Share $ 15.19 $ 14.91 $ 14.44 Return on Average Assets (“ROAA”) (1) 1.19% 0.69% 0.96% Return on Average Equity (“ROAE”) (1) 9.92% 5.98% 7.25% Net Interest Margin (“NIM”) 3.64% 3.43% 3.96% Efficiency Ratio 52.67% 51.69% 50.66% o Recorded a provision for loan losses of $2.1 million in 4Q20 primarily due to an increase in the economic uncertainty, as well as increases in criticized and classified loans, due to the COVID-19 pandemic o Allowance for loan losses to HFI loans ratio was 1.67% at December 31, 2020 compared with 1.55% at September30, 2020. Excluding PPP loans, the ratio was 1.83% and 1.70% at December 31, 2020 and September 30, 2020, respectively o Declared cash dividend of $0.10 per share in 4Q20 o SBA PPP loans totaled $136 million (1,585 loans), net of deferred fees and costs o Loans with modifications related to the COVID-19 pandemic totaled $36 million (39 customers) (1) Annualized.

Commercial Property - Owner Occupied 26% Commercial Property - Non-Owner Occupied 39% Commercial and Industrial 13% SBA PPP 9% Residential Property 12% Other Consumer 1% HFI Loan Composition Loan Overview your Partner • Choice • Bank | 11 $860 $899 $904 $953 $957 $956 $1,002 $1,023 $221 $232 $227 $240 $244 $218 $206 $205 $237 $241 $236 $235 $227 $224 $213 $198$25 $24 $23 $23 $23 $22 $22 $22 $134 $136 $136 $1,343 $1,396 $1,390 $1,451 $1,451 $1,554 $1,579 $1,584 0 200 400 600 800 1,00 0 1,20 0 1,40 0 1,60 0 1,80 0 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 HFI Loan Trend Commercial Property Commercial and Industrial Residential Property Other Consumer SBA PPP ($ in millions) December 31, 2020 YoY +9.1% $559 $584 $565 $580 $587 $590 $619 $629 245% 250% 242% 244% 249% 247% 257% 256% -380.0% -280.0% -180.0% -80.0% 20.0 % 120 .0% 220 .0% 320 .0% 420 .0% 300 .0 350 .0 400 .0 450 .0 500 .0 550 .0 600 .0 650 .0 700 .0 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Commercial Real Estate (1) Loan Trend CRE Loans % to the Bank's Total Risk-Based Capital ($ in millions) (1) Per regulatory definitions in the Commercial Real Estate (“CRE”) Concentration Guidance

Fixed (WA Rate:4.92%) 25% Variable (WA Rate: 4.06%) 52% Hybrid (WA Rate: 4.82%) 23% Interest Rate Mix (2) $13 $45 $25 $50 $29 $21 $52 $32$13 $31 $20 $33 $19 $19 $22 $24 $78 $83 $65 $87 $57 $25 $53 $45 6.31% 6.02% 5.92% 5.20% 5.20% 4.15% 4.14% 3.94% -3.00% -2.00% -1.00% 0.00 % 1.00 % 2.00 % 3.00 % 4.00 % 5.00 % 6.00 % 0.0 20.0 40.0 60.0 80.0 100 .0 120 .0 140 .0 160 .0 180 .0 200 .0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 New Production (1),(2) by Rate Type Fixed Hybrid Variable WA Rate Loan Interest Rate Mix your Partner • Choice • Bank | 12(1) Total commitment basis (2) Excluding SBA PPP loans. December 31, 2020($ in millions) 13% 16% 17% 20% 22% 24% 25% 25% 22% 22% 23% 23% 23% 23% 23% 23% 65% 62% 60% 57% 55% 53% 52% 52% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 % Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Interest Rate Mix Trend (2) Fixed Hybrid Variable

SBA PPP Loans your Partner • Choice • Bank | 13 Unpaid Principal Balance (“UPB”) Remaining Balance of ($ in thousands) # of Loans Carrying Value 2-Year Maturity 5-Year Maturity Origination Fee Origination Cost $50K or Under 1,017 $ 20,518 $ 18,961 $ 1,671 $ 572 $ 457 Between $50K and $150K 355 29,306 29,270 630 711 118 Between $150K and $350K 141 31,386 31,852 259 771 47 Between $350K and $2MM 69 46,054 46,232 486 688 24 $2MM or More 3 8,390 8,427 0 39 1 Total 1,585 $ 135,654 $ 134,742 $ 3,046 $ 2,781 $ 647 Summary of SBA PPP loans as of December 31, 2020: Summary of relationships of SBA PPP loan customers as of December 31, 2020: SBA PPP Loans Demand Deposit Accounts (“DDAs”) ($ in thousands) # of Loans UPB Dec-20 Mar-20 Change Existing relationships 1,126 $ 102,759 $ 204,577 $ 152,295 $ 52,282 New customers with new DDA relationships 200 22,806 9,659 0 9,659 No other relationships 259 12,223 0 0 0 Total 1,585 $ 137,788 $ 214,236 $ 152,295 $ 61,941

Loan Modification your Partner • Choice • Bank | 14 Currently Modified Previously ModifiedCarrying Value Weighted-Average ($ in thousands) Payment Deferment (1) Interest Only Payment Total Interest Rate Loan-to- Value (1) Accrued Interest Receivable Carrying Value Accrued Interest Receivable Commercial property $ 9,688 $ 14,444 $ 24,132 4.10% 44.2% $ 151 $ 349,006 $ 4,308 SBA property 0 4,192 4,192 4.79% 65.5% 26 0 0 Commercial term 2,462 3,065 5,527 3.88% 98 46,956 134 SBA commercial term 0 1,841 1,841 5.41% 7 0 0 Residential property 425 0 425 4.75% 65.5% 12 40,647 792 Other consumer 0 0 0 0.00% 0 1,256 5 Total $ 12,575 $ 23,542 $ 36,117 4.22% $ 294 $ 437,865 $ 5,239 0 Summary of loans with modifications related to the COVID-19 pandemic: Summary of modification expiration: (1) Collateral value at origination (2) Payment deferment of both principal and interest As of December 31, 2020 During the Month of ($ in thousands) Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Total Commercial property Payment deferment (2) $ 0 $ 0 $ 706 $ 8,982 $ 0 $ 0 $ 0 $ 9,688 Interest only payment 0 1,285 13,159 0 0 0 0 14,444 SBA property 0 0 0 1,622 1,489 1,081 0 4,192 Commercial term Payment deferment (2) 2,462 0 0 0 0 0 0 2,462 Interest only payment 0 0 0 0 1,085 815 1,165 3,065 SBA commercial term 0 0 0 510 26 1,014 291 1,841 Residential property 425 0 0 0 0 0 0 425 Total $ 2,887 $ 1,285 $ 13,865 $ 11,114 $ 2,600 $ 2,910 $ 1,456 $ 36,117

Loan Modification your Partner • Choice • Bank | 15 Migration of loans with modifications related to the COVID-19 pandemic: From June 30, 2020 to December 31, 2020 ($ in thousands) Jun-20 Early Termination Expired Re- Modification New Modification Modification Type Change Amortization Dec-20 Commercial property Payment deferment (1) $ 369,716 $ (58,247) $ (289,589) $ 9,688 $ 0 $ (1,282) $ (20,598) $ 9,688 Interest only payment 9,850 (9,750) (2,394) 1,285 14,269 1,282 (98) 14,444 SBA property 0 0 0 0 4,192 0 0 4,192 Commercial term Payment deferment (1) 53,277 (24,734) (22,773) 2,461 0 (2,441) (3,328) 2,462 Interest only payment 4,882 0 (4,975) 3,065 0 2,441 (2,348) 3,065 SBA commercial term 0 0 (72) 72 1,841 0 0 1,841 Residential property 44,804 (1,019) (40,053) 425 260 0 (3,992) 425 Other consumer 1,507 (4) (1,252) 0 6 0 (257) 0 Total $ 484,036 $ (93,754) $ (361,108) $ 16,996 $ 20,568 $ 0 $ (30,621) $ 36,117 HFI loans $ 1,553,589 $ 1,583,578 SBA PPP loans 133,675 135,654 HFI loans, excluding SBA PPP loans $ 1,419,914 $ 1,447,826 Total modified loans to HFI loans, excluding SBA PPP loans 34.1% 2.5% (1) Payment deferment of both principal and interest

Credit Quality your Partner • Choice • Bank | 16 $1.7 $1.8 $1.8 $2.8 $4.5 $4.8 $4.0 $4.6 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Non-Performing Assets (“NPAs”) 0.10% 0.11% 0.11% 0.16% 0.25% 0.24% 0.20% 0.24% 0.0 0% 0.0 5% 0.1 0% 0.1 5% 0.2 0% 0.2 5% 0.3 0% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 NPAs to Total Assets 0.98% 0.96% 0.94% 0.99% 1.15% 1.30% 1.55% 1.67% 0.0 0% 0.2 0% 0.4 0% 0.6 0% 0.8 0% 1.0 0% 1.2 0% 1.4 0% 1.6 0% 1.8 0% 2.0 0% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Allowance (1) to HFI Loans 1.83% (2) 1034% 933% 710% 509% 408% 453% 683% 838% 0% 200 % 400 % 600 % 800 % 100 0% 120 0% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Allowance (1) to Non-Performing Loans (1) Allowance for Loan Losses (2) Excluding SBA PPP loans ($ in millions) 1.43% (2) 1.70% (2)

Loan Concentration your Partner • Choice • Bank | 17 Real Estate Loans – Commercial By Property Type as of December 31, 2020 Total Loans With Modification Related to COVID-19 ($ in thousands) Carrying Value % to Total LTV(1) Carrying Value % to Total % to Property Type Total LTV(1) Industrial $ 199,112 19.5% 50.5% $ 830 2.9% 0.4% 72.2% Retail (More Than 50%) 173,063 16.9% 50.9% 1,023 3.6% 0.6% 61.4% Mixed Use 122,318 12.0% 46.3% 0 Gas Station 78,484 7.7% 54.8% 0 Motel / Hotel 71,782 7.0% 52.0% 9,950 35.1% 13.9% 43.0% Office 70,081 6.9% 54.0% 0 Apartments 68,637 6.7% 48.0% 1,285 4.5% 1.9% 47.6% Medical 60,790 5.9% 54.8% 13,159 46.6% 21.6% 44.7% Auto (Sales, Repair, & etc.) 23,526 2.3% 51.3% 0 Car Wash 23,160 2.3% 51.3% 0 Church 16,623 1.6% 50.3% 0 Spa, Sauna, & Other Self-Care 16,356 1.6% 57.6% 742 2.6% 4.5% 75.4% Construction 15,199 1.5% 61.0% 0 Condominium (Commercial) 13,150 1.3% 51.8% 0 Supermarket 10,498 1.0% 64.4% 0 Golf Course 8,984 0.9% 56.1% 0 Other 50,742 5.0% 47.9% 1,335 4.7% 2.6% 63.9% Total $ 1,022,505 100.0% 51.2% $ 28,324 100.0% 2.8% 47.5% Real Estate Loans – Residential as of December 31, 2020 (1) Collateral value at origination Total Loans With Modification Related to COVID-19 ($ in thousands) Carrying Value LTV(1) FICO Carrying Value % to Total LTV(1) FICO Residential Property $ 198,431 56.6% 754 $ 425 0.2% 65.5% 758

Loan Concentration your Partner • Choice • Bank | 18 Commercial and Industrial Loans – By Industry Type as of December 31, 2020 Total, Excluding SBA PPP Loans Loans with Modification Related to COVID-19 SBA PPP Loans ($ in thousands) Carrying Value % to Total Carrying Value % to Total % to Industry Type Total Carrying Value % to Total General Manufacturing & Wholesale Trade $ 73,781 35.9% $ 0 $ 36,259 26.8% Retail Trade 31,009 15.1% 15 0.2% 0.1% 16,193 11.9% Food Services 30,529 14.9% 2,057 27.9% 6.7% 33,658 24.8% Real Estate Related 15,532 7.6% 0 7,896 5.8% Professional, Scientific, &Technical Services 14,674 7.2% 0 10,347 7.6% Other Services 9,021 4.4% 4,192 56.9% 46.5% 9,769 7.2% Health Care & Social Assistance 7,723 3.8% 0 4,117 3.0% Finance & Insurance 6,570 3.2% 0 2,079 1.5% Entertainment & Recreation 5,391 2.6% 0 1,731 1.3% Transportation & Warehousing 5,363 2.6% 669 9.1% 12.5% 5,803 4.3% Other 5,622 2.7% 435 5.9% 7.7% 7,802 5.8% Total $ 205,215 100.0% $ 7,368 100.0% 3.6% $ 135,654 100.0%

Loan Concentration your Partner • Choice • Bank | 19 Geographic Concentration as of December 31, 2020 Real Estate - Commercial Real Estate – Residential Commercial & Industrial, Excluding SBA PPP SBA PPP ($ in thousands) Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total California $ 854,990 83.5% $ 193,628 97.6% $ 175,571 85.5% $ 104,861 77.2% New Jersey 34,640 3.4% 4,803 2.4% 9,216 4.5% 8,163 6.0% New York 38,574 3.8% 0 7,126 3.5% 6,020 4.4% Washington 32,514 3.2% 0 561 0.3% 1,436 1.1% Texas 17,615 1.7% 0 3,588 1.7% 2,575 1.9% Nevada 12,985 1.3% 0 1,270 0.6% 2,821 2.1% Georgia 4,218 0.4% 0 1,226 0.6% 2,850 2.1% Illinois 2,987 0.3% 0 1,487 0.7% 1,231 0.9% Colorado 4,640 0.5% 0 692 0.3% 122 0.1% Virginia 3,419 0.3% 0 239 0.1% 804 0.6% Maryland 1,760 0.2% 0 1,349 0.7% 670 0.5% Oregon 2,431 0.2% 0 171 0.1% 379 0.3% Pennsylvania 2,803 0.3% 0 18 0.1% 35 0.1% Other 8,929 0.9% 0 2,701 1.3% 3,687 2.7% Total $ 1,022,505 100.0% $ 198,431 100.0% $ 205,215 100.0% $ 135,654 100.0%

Credit Quality vs. Peers (1) your Partner • Choice • Bank | 20 1.35% 0.88% 0.74% 0.73% 0.44% 0.36% 0.29% 0.14% 0.00% 0.0 0% 0.2 0% 0.4 0% 0.6 0% 0.8 0% 1.0 0% 1.2 0% 1.4 0% 1.6 0% Hanmi Hope Peer Group $1 to $3BN Woori America CBB US Metro PCB Shinhan America Open NPAs / (Total Loans + OREO) (2) 1.98% 1.76% 1.47% 0.60% 0.16% 0.0 0% 0.5 0% 1.0 0% 1.5 0% 2.0 0% 2.5 0% Hope Hanmi CBB PCB Open Classified Assets to Total Assets (3) (1) Korean-American banks operating in Southern California (2) Source: UBPR (3) Source: 10Q or press release concerning financial performance December 31, 2020 Peer Data as of September 30, 2020 December 31, 2020 Peer Data as of September 30, 2020

Deposit Overview your Partner • Choice • Bank | 21 $1,120 $1,081 $1,124 $1,103 $1,097 $1,126 $1,305 $1,298 $1,246 78% 75% 78% 77% 74% 76% 79% 79% 78% 0% 10% 20% 30% 40% 50% 60% 70% 80% 500 600 700 800 900 1,00 0 1,10 0 1,20 0 1,30 0 1,40 0 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Core Deposits (1) Core Deposits % to Total Deposits Noninterest DDA 34% Retail Other Interest- Bearing 24% Retail Time Deposits 29% Internet Time Deposits 2% State and Brokered Deposits 11% Deposit Composition (1) Core Deposits are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). See “Non-GAAP measure” for a reconciliation of this measure to its most comparable GAAP measure. $331 $340 $353 $360 $394 $551 $576 $538 $295 $331 $332 $332 $364 $369 $378 $384 $664 $658 $624 $605 $539 $518 $479 $468 $5 $37 $32 $25$158 $118 $123 $182 $175 $172 $182 $180 $1,448 $1,447 $1,432 $1,479 $1,477 $1,647 $1,647 $1,595 - 200 400 600 800 1,00 0 1,20 0 1,40 0 1,60 0 1,80 0 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Deposit Trend Noninterest DDA Retail Other Interest-Bearing Retail Time Deposits Internet Time Deposits State and Brokered Deposits YoY +7.8% ($ in millions) ($ in millions) December 31, 2020

Maturity Schedule your Partner • Choice • Bank | 22 Time Deposits as of December 31, 2020 Retail Time Deposits Internet Time Deposits State and Brokered Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Month $ 169,699 1.51% $ 7,286 0.69% $ 155,000 0.15% $ 331,985 0.86% 3 to 6 Month 93,581 0.82% 17,616 0.73% 0 111,197 0.80% 6 to 9 Month 96,043 0.66% 0 0 96,043 0.66% 9 to 12 Month 90,243 0.55% 0 0 90,243 0.55% More than 12 Month 18,547 1.43% 0 0 18,547 1.43% Total $ 468,114 1.01% $ 24,902 0.72% $ 155,000 0.15% $ 648,016 0.79% FHLB Advances as of December 31, 2020 FHLB Advances ($ in thousands) Amount WA Rate Less Than 3 Month $ 40,000 0.59% 3 to 6 Month 30,000 0.32% 6 to 9 Month 0 9 to 12 Month 0 More than 12 Month 10,000 2.07% Total $ 80,000 0.67%

Profitability your Partner • Choice • Bank | 23 $6.6 $6.6 $6.8 $4.2 $3.6 $3.4 $3.4 $5.8 $9.3 $9.8 $9.6 $10.0 $8.0 $8.6 $9.2 $10.4 (1 .0) 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Net Income PTPP 1.57% 1.52% 1.55% 0.96% 0.81% 0.69% 0.69% 1.19% 2.22% 2.25% 2.18% 2.32% 1.82% 1.76% 1.85% 2.13% 0.0 0% 0.5 0% 1.0 0% 1.5 0% 2.0 0% 2.5 0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 ROAA Adjusted ROAA $0.40 $0.40 $0.42 $0.26 $0.23 $0.22 $0.22 $0.38 $0.57 $0.60 $0.59 $0.63 $0.51 $0.56 $0.60 $0.67 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Diluted EPS Adjusted Diluted EPS 12.43% 12.01% 12.02% 7.25% 6.35% 5.98% 5.98% 9.92% 17.55% 17.76% 16.93% 17.44% 14.28% 15.25% 16.02% 17.79% 0.0 0% 2.0 0% 4.0 0% 6.0 0% 8.0 0% 10. 00% 12. 00% 14. 00% 16. 00% 18. 00% 20. 00% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 ROAE Adjusted ROAE ($ in millions) Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ROAA & Adjusted ROAA(1) ROAE & Adjusted ROAE(1) (1) PTPP (Pre-Tax Pre-Provision) income, and adjusted EPS, ROAA and ROAE for PTPP are not presented in accordance with GAAP. See “Non-GAAP measure” for reconciliations of these measures to their most comparable GAAP measure.

Noninterest Income your Partner • Choice • Bank | 24 $21.2 $29.2 $22.2 $27.1 $11.7 $27.1 $8.6 $42.4 7.4% 9.1% 9.3% 7.6% 9.0% 7.5% 10.7% 10.5% 5.2% 6.5% 6.8% 5.3% 6.0% 5.3% 8.0% 7.5% -20.0% -15.0% -10.0% -5.0% 0.0 % 5.0 % 10. 0% -5.00 5.0 0 15. 00 25. 00 35. 00 45. 00 55. 00 65. 00 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 SBA Loan Sale Trend SBA Loan Sold $ Premium % Gain % ($ in millions) ($ in millions) $26.9 $35.1 $30.6 $37.9 $30.0 $10.7 $40.1 $25.3 0.0 0 5.0 0 10. 00 15. 00 20. 00 25. 00 30. 00 35. 00 40. 00 45. 00 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 SBA 7(a) Loan Production (1) $1.3 $1.2 $1.3 $1.4 $1.3 $1.4 $1.5 $1.0 $1.1 $1.9 $1.5 $1.4 $0.7 $1.5 $0.8 $3.5 46% 62% 55% 62% 36% 51% 36% 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Noninterest Income Trend Gain on Sale of AFS Securities All Other Income Gain % to Total (1) Total commitment basis ($ in millions) $0.8 Gain on Sale of Loans

Noninterest Expense your Partner • Choice • Bank | 25 $6.6 $6.6 $6.9 $6.0 $6.6 $5.8 $6.4 $7.4 $3.7 $4.4 $3.9 $4.3 $4.0 $3.9 $3.5 $4.2 2.43% 2.52% 2.48% 2.40% 2.39% 1.98% 1.99% 2.38% 0.0 0% 0.5 0% 1.0 0% 1.5 0% 2.0 0% 2.5 0% 3.0 0% - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Noninterest Expense Trend Compensation All Other Expenses % to Average Total Assets 52.6% 53.0% 53.0% 50.7% 56.8% 53.0% 51.7% 52.7% 62.4% 62.5% 61.9% 62.1% 64.1% 61.2% 60.4% 0.00 % 10.0 0% 20.0 0% 30.0 0% 40.0 0% 50.0 0% 60.0 0% 70.0 0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Efficiency Ratio (2) PCB Peer Average 252 248 249 255 259 251 252 246 235 240 245 250 255 260 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Number of FTE(3) Employees (1) (1) Annualized (2) Source: Peer $1 to $3 billion per UBPR (3) Full-time equivalent ($ in millions)

Net Interest Margin your Partner • Choice • Bank | 26 6.33% 6.39% 6.22% 5.85% 5.64% 4.73% 4.81% 4.73% 4.22% 4.17% 4.11% 3.96% 3.85% 3.22% 3.43% 3.64% 2.06% 2.17% 2.13% 1.99% 1.77% 1.17% 0.92% 0.73% 1.62% 1.69% 1.64% 1.53% 1.34% 0.85% 0.63% 0.49% 0.00 % 1.00 % 2.00 % 3.00 % 4.00 % 5.00 % 6.00 % 7.00 % 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Yield & Cost (1) Loan Yield NIM Cost of Int-Bearing Liab Cost of Funds (1) Annualized

Capital Ratios & BV Per Share your Partner • Choice • Bank | 27 11.74% 15.70% 15.70% 16.95% 5.00% 6.50% 8.00% 10.00% 0.00 % 2.00 % 4.00 % 6.00 % 8.00 % 10.0 0% 12.0 0% 14.0 0% 16.0 0% 18.0 0% Tier 1 Leverage CET 1 Capital Tier 1 Capital Total Capital Bank Regulatory Capital Ratios Actual Minimum Requirement For Well-Capitalized $13.57 $13.98 $14.30 $14.44 $14.58 $14.78 $14.91 $15.19 12.5 0 13.0 0 13.5 0 14.0 0 14.5 0 15.0 0 15.5 0 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 BV Per Share December 31, 2020 12.64% 12.94% 13.22% 12.99% 12.45% 11.24% 11.35% 12.16% 10.0 0% 10.5 0% 11.0 0% 11.5 0% 12.0 0% 12.5 0% 13.0 0% 13.5 0% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Total Equity to Total Assets (1) (1) The Company did not have any intangible equity components for the presented periods.

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

Non-GAAP Measures your Partner • Choice • Bank | 29 The following table reconciles core deposits to total deposits to its most comparable GAAP measure: ($ in thousands) 03/31/19 06/30/19 09/30/19 12/31/19 03/31/20 06/30/20 09/30/20 12/31/20 Total Deposits $ 1,447,758 $ 1,446,526 $ 1,432,262 $ 1,479,307 $ 1,477,442 $ 1,646,930 $ 1,647,107 $ 1,594,851 Less: Time Deposits Greater Than $250K (329,693) (284,780) (296,785) (289,726) (266,970) (260,180) (257,208) (268,683) Less: Brokered Deposits (37,510) (27,510) (32,503) (92,393) (84,506) (82,010) (92,001) (80,002) Core Deposits $ 1,080,555 $ 1,124,236 $ 1,102,974 $ 1,097,188 $ 1,125,966 $ 1,304,740 $ 1,297,898 $ 1,246,166 Core Deposits to Total Deposits 74.6% 77.7% 77.0% 74.2% 76.2% 79.2% 78.8% 78.1%

Non-GAAP Measures your Partner • Choice • Bank | 30 The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: (1) Annualized. ($ in thousands) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Net Income $ 6,564 $ 6,601 $ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 $ 5,787 Add: Provision for Loan Losses (85) 394 (102) 4,030 2,896 3,855 4,326 2,142 Add: Income Tax Provision 2,794 2,767 2,871 1,811 1,557 1,363 1,464 2,452 PTPP Income (Non-GAAP) $ 9,273 $ 9,762 $ 9,554 $ 9,999 $ 8,025 $ 8,585 $ 9,239 $ 10,381 Average Total Assets $ 1,690,349 $ 1,742,584 $ 1,734,957 $ 1,710,370 $ 1,770,785 $ 1,956,464 $ 1,991,614 $ 1,939,326 ROAA (1) 1.57% 1.52% 1.55% 0.96% 0.81% 0.69% 0.69% 1.19% Adjusted ROAA (Non-GAAP)(1) 2.22% 2.25% 2.18% 2.32% 1.82% 1.76% 1.85% 2.13% Average Total Shareholders' Equity $ 214,234 $ 220,486 $ 223,932 $ 227,472 $ 226,086 $ 226,454 $ 229,463 $ 232,156 ROAE (1) 12.43% 12.01% 12.02% 7.25% 6.35% 5.98% 5.98% 9.92% Adjusted ROAE (Non-GAAP)(1) 17.55% 17.76% 16.93% 17.44% 14.28% 15.25% 16.02% 17.79% Net Income $ 6,564 $ 6,601 $ 6,785 $ 4,158 $ 3,572 $ 3,367 $ 3,449 $ 5,787 Less: Income Allocated to Participating Securities 0 0 0 (10) (9) (8) (8) (11) Net Income Allocated to Common Stock 6,564 6,601 6,785 4,148 3,563 3,359 3,441 5,776 Add: Provision for Loan Losses (85) 394 (102) 4,030 2,896 3,855 4,326 2,142 Add: Income Tax Provision 2,794 2,767 2,871 1,811 1,557 1,363 1,464 2,452 PTPP Income Allocated to Common Stock $ 9,273 $ 9,762 $ 9,554 $ 9,989 $ 8,016 $ 8,577 $ 9,231 $ 10,370 WA common shares outstanding, diluted 16,271,269 16,330,039 16,099,598 15,948,793 15,700,144 15,373,655 15,377,531 15,392,355 Diluted EPS $ 0.40 $ 0.40 $ 0.42 $ 0.26 $ 0.23 $ 0.22 $ 0.22 $ 0.38 Adjusted Diluted EPS (Non-GAAP) $ 0.57 $ 0.60 $ 0.59 $ 0.63 $ 0.51 $ 0.56 $ 0.60 $ 0.67 (a) (b) (c) (a)/(c) (b)/(c) (d) (a)/(d) (b)/(d) (e) (f) (g) (e)/(g) (f)/(g)

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