PCB Bancorp : Earnings Results Third Quarter 2023

PCB BANCORP

Earnings Results

3Q23

October 25, 2023

Forward-Looking Statement & Non-GAAP

Forward-Looking Statement

This presentation contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to the health of the national and local economies including the impact to the Company and its customers resulting from changes to, and the level of, inflation and interest rates; the Company's ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect our financial performance and our stock price; changes to valuations of the Company's assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber security risks; the Company's ability to successfully deploy new technology; the success of acquisitions and branch expansion; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company's enterprise risk management framework; costs related to litigation; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in various securities law filings made periodically by the Company, copies of which are available without charge on the SEC's website at www.sec.govand the on the investor relations section of the Company's website at www.mypcbbank.com. 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 presentation, 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.

Non-GAAP Financial Measures

This presentation contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of the historical or future financial performance, financial position or cash flows that excludes amounts or is subject to adjustments that have the effect of excluding amounts that are included in the most directly comparable measure calculated and presented in accordance with GAAP. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided in the Non-GAAP Measures section of this presentation.

References to the "Company," "we," or "us" refer to PCB Bancorp and references to the "Bank" refer to the Company's subsidiary, PCB Bank.

2

Corporate Profile

Market Information 10/23/23

Market Cap	$213.6 million
Stock Price Per Share	$14.97
52-Week Range	$13.11 - $20.03
Dividend Yield	4.81%
Dividend Payout Ratio (4Q22 - 3Q23)	28.57%
Outstanding Shares	14,266,216

Stock Information 3Q23 or 9/30/23

Diluted Earnings Per Share ("Diluted EPS")	$0.49
Cash Dividend Per Share	$0.18
Book Value ("BV") Per Share	$23.87
Tangible Common Equity ("TCE") Per Share (1)	$19.05
Number of Repurchased Shares (2)	67,202

1. Not presented in accordance with GAAP. See "Non-GAAP Measures" for reconciliation of these measures to their most comparable GAAP measures
2. Stock repurchase plan announced on 8/2/23

PCB Footprint

3

Historical Performance

Cash Dividend/Diluted EPS & BV/TCE Per Share

					$22.94	$23.87
$4.00							$25.00
$3.50				$17.24
		$14.44	$15.19			$20.00
	$13.16
$3.00
				$18.21
					$19.05	$15.00
$2.50
$2.00							$10.00
$1.50
				$2.62	$2.31		$5.00
$1.00	$1.65				$1.71
	$1.49	$0.40 $1.05			$0.00
$0.50	$0.12	$0.25	$0.44	$0.60	$0.51
$0.00							-$5.00

2018	2019	2020	2021	2022	09/23 YTD
	Cash Dividend Per Share				Diluted EPS		BV Per Share(1)		TCE Per Share (1), (2)

60.000

50.000

40.000

30.000

20.000

10.000

0.000

Net Income/PTPP Income ($mm)

								$52.4			$53.0
	$36.0		$38.6		$36.2		$40.1			$35.0				$33.2
$24.3	$24.1									$24.8
		$16.2
2018	2019	2020		2021		2022		09/23 YTD
				Net Income	PTPP Income (2)

		Held-For-Investment Loans ($bn)
					Annualized
2.500		CAGR +11.2%			+7.9%
2.000
1.500
1.000				$2.05	$2.17
			$1.73
$1.34	$1.45	$1.58
0.500
0.000
2018	2019	2020	2021	2022	Sep-23

		Deposits ($bn)		Annualized
2.500					+9.5%
		CAGR +9.1%
2.000
1.500
1.000			$1.87	$2.05	$2.19
		$1.59
$1.44	$1.48
0.500
0.000
2018	2019	2020	2021	2022	Sep-23

1. At period end
2. Not presented in accordance with GAAP. See "Non-GAAP Measures" for reconciliation of these measures to their most comparable GAAP measures

4

3Q23 Highlights

	• Net income of $7.0 million, or $0.49 per diluted share
Operating Results	• Provision for credit losses of $751 thousand
	• ROAA of 1.09% & ROATCE (1) of 10.17%, net interest margin of 3.57%, and efficiency ratio of 56.9%
	• Loans held-for-investment ("HFI loans") increased $45.2 million, or 2.1%, to $2.17 billion
	• Loans held-for-sale ("HFS loans") decreased $6.4 million, or 48.8%, to $6.7 million
Loans	• Average loan yield was 6.43% compared to 6.30% for 2Q23
	• Total loans to deposits ratio was 99.2%
	• Quarterly loan production was $157.8 million compared to $123.3 million for 2Q23
Asset Quality	• ACL for loans was $25.6 million, or 1.18% to HFI loans
• Past due loans were $708 thousand, or 0.03% to HFI loans, and NPLs were $3.7 million, or 0.17% to HFI loans
	• Total deposits increased $3.9 million, or 0.2%, to $2.19 billion
	• Core deposits(1) were $1.48 billion, or 67.4% of total deposits
Deposits	• Non-interest bearing deposits were $611.0 million, or 27.9% of total deposits
	• Uninsured deposits were $983.9 million, or 44.9% of total deposits
	• Cost of average interest-bearing deposits and total deposits were 4.17% and 2.97%, respectively
	• Declared and paid quarterly cash dividend of $0.18 per share
Capital & Liquidity	• TBV per share increased to $19.05

1. • Total cash and available borrowing capacity covers 141.0% of uninsured deposits compared to 75.1% at 12/31/22
2. Not presented in accordance with GAAP. See "Non-GAAP Measures" for reconciliation to most comparable GAAP measures

5

Selected Financial
		As of or For the Three Months Ended			Compared to 6/30/23		Compared to 9/30/22
($ in Thousands, Except Per Share Data)		9/30/23		6/30/23		9/30/22		Amount	Percentage		Amount	Percentage
Income Statement Summary:							$
Interest Income	$	38,852	$	36,838	$	26,835	2,014	5.5%	$	12,017	44.8%
Interest Expense		16,403		15,121		2,812		1,282	8.5%		13,591	483.3%
Net Interest Income		22,449		21,717		24,023		732	3.4%		(1,574)	-6.6%
Noninterest Income		2,502		2,657		3,176		(155)	-5.8%		(674)	-21.2%
Noninterest Expense		14,207		13,627		13,695		580	4.3%		512	3.7%
Provision (Reversal) for Credit Losses (1)		751		197		3,753		554	281.2%		(3,002)	-80.0%
Pretax Income		9,993		10,550		9,751		(557)	-5.3%		242	2.5%
Income Tax Expense		2,970		3,073		2,798		(103)	-3.4%		172	6.1%
Net Income		7,023		7,477		6,953	$	(454)	-6.1%		70	1.0%
Diluted Earnings Per Share	$	0.49	$	0.52	$	0.46	(0.03)	-5.8%	$	0.03	6.5%
Selected Balance Sheet Items:
HFI loans	$	2,167,605	$	2,122,427	$	1,959,237	$	45,178	2.1%	$	208,368	10.6%
HFS loans		6,693		13,065		18,982		(6,372)	-48.8%		(12,289)	-64.7%
Total Deposits		2,192,129		2,188,232		1,978,098		3,897	0.2%		214,031	10.8%
Total Assets		2,567,974		2,556,345		2,327,051		11,629	0.5%		240,923	10.4%
Shareholders' Equity		341,852		340,411		332,719		1,441	0.4%		9,133	2.7%
TCE (2)		272,711		271,270		263,578		1,441	0.5%		9,133	3.5%
Key Metrics:
Book Value Per Share	$	23.87	$	23.77	$	22.40	$	0.10	0.4%	$	1.47	6.6%
TCE Per Share (2)	$	19.05	$	18.94	$	17.75	$	0.11	0.6%	$	1.30	7.3%
Return on Average Assets ("ROAA") (3)		1.09%		1.19%		1.19%		-0.10%			-0.10%
Return on Average Equity ("ROAE") (3)		8.12%		8.82%		8.16%		-0.70%			-0.04%
Return on Average TCE ("ROATCE") (2), (3)		10.17%		11.08%		10.25%		-0.91%			-0.08%
Net Interest Margin (3)		3.57%		3.55%		4.25%		0.02%			-0.68%
Efficiency Ratio (4)		56.94%		55.91%		50.35%		1.03%			6.59%

1. Provision (reversal) for credit losses and ACL for reporting periods beginning with 1/1/23 are presented under ASC 326, while prior period comparisons continue to be presented under legacy ASC 450 and ASC 310
2. Not presented in accordance with GAAP. See "Non-GAAP Measures" for reconciliation of these measures to their most comparable GAAP measures
3. Annualized
4. Calculated by dividing noninterest expense by the sum of net interest income and noninterest income

6

Loan Overview

		HFI Loan Trend ($mm)
					YoY +10.6%
					$2,092	$2,122	$2,168
				$2,046
			$1,959
		$1,833			$379	$382	$384
$1,732	$1,743	$321	$357
		$280					$280
$231	$237		$216	$249	$268	$272
1,500		$205
$257	$217
1,000
	$1,289	$1,348	$1,422	$1,440	$1,445	$1,469	$1,504
$1,244
500
-
Dec-21Mar-22Jun-22	Sep-22Dec-22Mar-23Jun-23Sep-23
Commercial Real Estate	Commercial & Industrial	Consumer

1. Per regulatory definition in the Commercial Real Estate ("CRE") Concentration Guidance

HFI Loan Composition

September 30, 2023	Consumer
	18%

Commercial Property

				Commercial &			37%
				$2.17B
				Industrial
				13%
	Construction
		1%
			Multifamily		Business Property
				6%
						25%
		Commercial Real Estate(1) Loan Trend ($mm)
	270%	270%			249%	254%	259%	255%	257%
1,200.0			230%	300%
1,100.0
											250%
1,000.0
900.0											200%
800.0
											150%
700.0
600.0	$733	$756	$819		$898	$925	$943	$941	$961	100%
500.0
											50%
400.0
300.0											0%
	Dec-21	Mar-22Jun-22Sep-22	Dec-22Mar-23Jun-23	Sep-23
		CRE Loans			% to the Bank's Total Risk-Based Capital

3Q23 Highlights

• HFI loans Increased $45.2 million, or 2.1%, to $2.17 billion
• CRE loans increased $35.2MM (2.4%), C&I loans increased $7.3MM (2.7%) & residential mortgage loans increased $3.7MM (1.0%)

7

Loan Production & Rate/Yield Analysis

New Production(1),(2) by Rate Type ($mm)

				8.04%	8.18%	7.95%
400				7.17%
						8%
				5.92%
350			5.23%
									6%
	4.01%	4.26%
		$278
300
			$266
								4%
250
										2%
	$186			$190
200
			$129							0%
		$154	$169					$158

HFI Loans Interest Rate Mix(2)

September 30, 2023

Variable (WA Rate: 8.52%)

39%

HFI Loans

WA Rate

6.19%

Fixed (WA Rate: 4.75%)	Hybrid (WA Rate: 4.71%)
22%	39%

HFI Loans Interest Rate Mix Trend(2)

100%
90%
80%		44%			42%		39%		38%		38%			38%		38%		39%
70%
60%
50%
40%		30%			32%		37%		38%		39%			39%		39%		39%
30%
20%
10%	26%		26%	24%		24%	23%	23%	23%	22%
0%
	Dec-21	Mar-22Jun-22Sep-22Dec-22Mar-23Jun-2330-Sep
							Fixed	Hybrid	Variable

150																						$123			-2%
		$97											$110	$112
			$62
100																									$114
						$126		$68								$71			$83		-4%
		$69		$67
50											$64									-6%
																				$27
																				$27		$37
										$29
			$25
				$23
		$19															$17
				$15	$14
0												$4	-8%
		4Q21		1Q22	2Q22			3Q22				4Q22		1Q23		2Q23		3Q23
				Fixed						Hybrid						Variable				WA Rate

1. Total commitment basis
2. Excluding SBA PPP loans
3. Include both HFI and HFS loans
4. Annualized

Repricing Schedule (9/30/23)			HFI Loans		HFS Loans				Total Loans
($ in thousands)			Carrying Value	WA Rate				Carrying Value	WA Rate				Carrying Value	WA Rate
Less Than 3 Months		$	739,014		8.87%			$	6,693		9.88%			$	745,707		8.88%
3 to 12 Months			127,718		5.22%				0						127,718		5.22%
1 to 3 Years			520,374		4.32%				0						520,374		4.32%
3 to 5 Years			674,368		5.09%				0						674,368		5.09%
More than 5 Years			106,131		4.89%				0						106,131		4.89%
Total		$	2,167,605		6.19%			$	6,693		9.88%			$	2,174,298		6.20%
Loan Yield Analysis									3Q23					09/23 YTD
($ in thousands)									Amount(3)	Yield(4)				Amount(3)	Yield(4)
Average Carrying Value								$	2,137,184					$	2,102,600
Interest on Loans								$	33,650		6.25%		$	95,995		6.10%
Fee (Cost)									187		0.03%				488		0.03%
Prepayment Penalty & Late Charges									39		0.01%				160		0.01%
Discount (Premium)									775		0.14%				2,197		0.14%
Total Interest & Fees								$	34,651		6.43%			$	98,840		6.29%
																	8

Loan Concentration
Commercial Real Estate Loans by Property Type (9/30/23)
		Carrying	% to		WA	WA				Maturing
($ in thousands)		Value	Total	Count	LTV(1)	Rate		<= 1 Year		2-3 Years		3-5 Years		> 5 Years
Retail (More than 50%)	$	325,238	21.6%	296	48.1%	5.98%	$	32,496	$	101,449	$	77,551	$	113,742
Industrial		270,541	18.0%	163	49.8%	5.92%		63,640		45,325		80,820		80,757
Mixed Use		161,469	10.7%	145	45.7%	5.72%		27,249		39,788		62,746		31,686
Apartments		112,803	7.5%	53	53.0%	4.88%		6,467		16,783		56,989		32,564
Hotel & Motel		106,738	7.1%	108	49.8%	7.17%		10,777		5,282		37,423		53,256
Gas Station		102,736	6.8%	120	55.2%	6.58%		6,512		6,957		24,999		64,268
Office		90,692	6.0%	52	53.8%	5.73%		5,241		12,922		40,653		31,876
Medical		56,818	3.8%	29	41.3%	7.56%		11,991		5,894		29,118		9,815
Auto (Sales, Repair & etc.)		38,610	2.6%	33	54.1%	5.43%		3,069		8,322		21,738		5,481
Car Wash		36,776	2.4%	31	50.6%	5.93%		1,472		16,897		2,989		15,418
Commercial Condominium		34,041	2.3%	41	47.8%	5.97%		5,159		6,281		7,903		14,698
Golf Course		31,072	2.1%	7	49.0%	4.68%		1,732		17,961		10,921		458
Spa, Sauna, & Other Selfcare		29,669	2.0%	9	50.4%	5.02%		0		13,444		9,364		6,861
Wholesale		21,655	1.4%	16	43.1%	5.72%		4,068		4,115		3,931		9,541
Construction		19,246	1.3%	8	50.6%	9.51%		19,246		-		-		-
Church		10,664	0.7%	15	33.1%	5.11%		969		1,965		4,318		3,412
Others		54,934	3.7%	75	53.5%	6.30%		10,106		11,767		15,840		17,221
Total	$	1,503,702	100.0%	1,201	49.5%	6.01%	$	210,194	$	315,152	$	487,303	$	491,054

Residential Mortgage Loans (9/30/23)

			Carrying		WA		WA
($ in thousands)			Value		LTV(1)		FICO
Residential Mortgage	$	363,369	59.5%	760

1. Collateral value at origination

Commercial Real Estate Loans

Geographic Concentration (9/30/23)

Los Angeles County

63%

	$1.50B
	CA: $1.21B,
	(80%)
Other States
3%
Washington			Orange County
3% Texas			7%
5%	NY/NJ
Nevada	8%
1%
	Other	Ventura	San Bernardino
	Califronia	County
	County
	Counties	4%
	4%
	2%

9

Loan Concentration

Commercial & Industrial Loans by Industry Type (9/30/23)

($ in thousands) Finance and Insurance

General Manufacturing & Wholesale Trade Real Estate Related

Retail Trade

Food Services

Professional, Scientific, & Technical Services Entertainment & Recreation

Health Care & Social Assistance Other Services Transportation & Warehousing All Other

Total

	Carrying	% to	WA	WA Month to
	Value	Total	Rate	Maturity
$	89,905	32.2%	7.98%	5
	53,059	19.0%	8.78%	19
	33,375	11.9%	7.82%	18
	31,470	11.3%	9.30%	58
	31,246	11.2%	9.20%	68
	14,308	5.1%	9.01%	14
	9,500	3.4%	7.30%	37
	4,246	1.5%	9.16%	27
	3,910	1.4%	8.34%	43
	3,750	1.3%	8.62%	13
	4,839	1.7%	7.79%	54
$	279,608	100.0%	8.46%	25

Commercial & Industrial Loans

Geographic Concentration (9/30/23)

Los Angeles County

61%

$280MM

CA: $221MM

(79%)

Other States
7%	Orange County
Texas	12%
NY/NJ
2%
9%

Washington

1%

Nevada	Other		San Bernardino
		Ventura
2%	Califronia	County
		County
	Counties	2%
		1%
	3%

10