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UmpquaAnnualReport 2020 your Partner, your Choice, your Bank Pacific City Bank Headquarters Company Profile PCB Bancorp (“PCB”) is the parent company of Pacific City Bank, (the “Bank”) a community bank founded in 2003 with a mission to help first generation Asian-American immigrants realize the American dream through business ownership. The Bank is a full-service bank that offers a broad range of loans along with deposit products focused on individuals, professionals, and small-to-medium sized businesses. The Bank serves a diverse customer base through its thirteen branch locations, 11 full-service branches in the Greater Los Angeles Area, one full-service branch in each of Englewood Cliffs, New Jersey and Bayside, New York, as well as nine loan production offices (“LPOs”) in seven states serving a diverse ethnic background. The Bank is one of the leading banks in the Korean-American community. (Left to Right) Sang Young Lee Chairman of the Board Henry Kim President & Chief Executive Officer PCB ensured the safety of our employees and customers while successfully managing our business and helping our customers navigate the pandemic. Dear Shareholders: At PCB, we believe our success is dependent on the prosperity of our customers, employees, and the communities we serve. Looking back on an unprecedented year, it is clear that this belief is more important now than ever. We are proud of our swift and decisive pandemic responses, which have resulted in positive economic impact. Throughout 2020, PCB ensured the safety of our employees and customers while successfully managing our business and We rapidly adapted to the new normal by remaining flexible and developing helping our customers navigate the pandemic. Specifically, we new procedures shaped by the constantly changing environment. Together, provided our customers with access to much needed capital by we emerged stronger than before. Looking ahead, our dedicated employees, quickly assisting them with the Paycheck Protection Program loyal customers, and strong financial foundation will enable us to continue (“PPP”) loans and by strategically deferring loan payments. to execute on our long-term strategy in these “new normal.” Our hearts 2020 • ANNUAL REPORT / 01 OUR FOUNDING MEMBERS’ COMMITMENT TO IMPARTIALLY/ FAIRLY / EQUITABLY IDENTIFY AND HELP THOSE IN NEED WILL CONTINUE TO LIVE ON. continue to be with all those impacted by the we earned a net income of $16.2 million, our capital ratios remained stronger than ever. COVID-19 pandemic, and our sacred goal or $1.04 per diluted share, and our return As of December 31, 2020, PCB’s total capital of our founding members to indiscriminately on assets was 0.84%. Our deposit balance ratio increased to 17.2% compared with 16.9% identify and help those in need will continue increased by $116 million, or 7.8%, to $1,595 at the end of 2019 and the Bank’s increased to live on. million, and our net loan portfolio increased to 17.0% compared with 16.7%, respectively. by $121 million, or 8.4%, to $1,557 million. With greater optimism than the previous year, Financial Performance Additionally, our total assets increased by we began 2021 stronger than ever before. PCB completed the year with unprecedented $177 million, or 10.1%, to $1,923 million The sound groundwork established to expand strength. In 2020, despite recognizing $13.2 at the end of 2020 compared with $1,746 and the gradual reopening of our economy million in loan loss provisions due to the million in 2019. In addition to our robust have prepared PCB well for what is to come pandemic-induced economic shutdowns, allowance for losses balance at the year-end, in 2021. 2020 • ANNUAL REPORT / 02 2020 • ANNUAL REPORT / 03 Henry Kim President & Chief Executive Officer WE WILL STAY NIMBLE, MOVE QUICKLY, AND STRATEGICALLY MOVE FORWARD WITH PRECISION. Moving Forward more digitally enabled and resilient to meet particularly with processing the tremendous For the past several years, we invested our the needs of our customers and employees. volume of PPP loans. In fact, customers’ digital time and resources on tackling the challenges transactions on our mobile and online platform and opportunities created by the unprec- Our improved digital capabilities have en- have increased to record-levels. Moving for- edented pace of change and disruption in abled us to switch from in-person meetings to ward, we are dedicated to seamlessly adopt community banking. We integrated advancing online or virtual ones. It has also allowed us new technologies to better serve our customers. technologies, build new and maintain to maintain business continuity at the height The opportunities we see in making changes relationships, as well as anticipate and meet of the COVID-19 pandemic and provide to our branch network reflect this changing the needs of customers. As a result, we are solutions to meet the needs of our customers, environment. We know many of our customers 2020 • ANNUAL REPORT / 04 2020 • ANNUAL REPORT / 05 will continue to evolve. Banking industry reputations among our peers and remain disruptions will continue as customers dictate vigilant in upholding our business ethics. Our how transactions are executed. Work and balance sheet and capital levels are stronger workplace environments will continue to than ever, and we are more motivated than ever transform as well. Even with such changes, to help our customers succeed. We thank our relationships remain as the key to our employees for their dedication, commitment, success. We are committed to stand by and professionalism; we thank our customers enjoy visiting our branch network and traffic and support our customers, employees, and for their resiliency and loyalty; and we thank our remains high, validating our belief that they communities. We will stay nimble, agile, shareholders for their continued partnership. are an integral part of our operations. We even and strategically move forward with precision. have plans on expanding our branch network in marketplaces by strengthening existing In Closing Be safe, locations and entering areas where we do not Although the past year has brought have any physical presence. uncertainties and unexpected changes, we Sang Young Lee Chairman of the Board are proud of our efforts and achievements. We anticipate that many of the changes we We believe we are on a course for an even have experienced, as a result of the pandemic, stronger future. We have one of the best Henry Kim President & Chief Executive Officer 2020 • ANNUAL REPORT / 06 2020 • ANNUAL REPORT / 07 AS OF OR FOR THE YEARS ENDED DECEMBER 31, (dollars in thousands except share and per share data) 2020 2019 2018 2017 2016 Total Assets $ in millions Net Loans* $ in millions Financial Highlights BALANCE SHEET DATA Total assets Net loans* Total deposits Shareholders’ equity STATEMENT OF INCOME DATA Interest income Interest expense Net interest income before provision for loan losses Provision for loan losses Noninterest income Noninterest expenses Income tax expense Net income PER SHARE DATA** $ 1,922,853 1,746,328 $ 1,697,028 $ 1,441,999 $ 1,226,642 1,559,047 1,438,426 1,331,296 1,183,072 1,021,942 1,594,851 1,479,307 1,443,753 1,251,290 1,091,812 233,788 226,834 210,296 142,184 127,007 7 9 6 1 $ , 6 4 7 1 $ , 3 2 9 1 $ , 2 4 4 1 $ , 7 2 2 1 $ , 1 3 3 1 $ , 8 3 4 1 $ , 9 5 5 1 $ , 3 8 1 1 $ , 2 2 0 1 $ , $ 79,761 $ 92,945 $ 83,699 $ 65,267 $ 52,595 13,572 23,911 17,951 10,097 7,014 66,189 13,219 11,740 41,699 6,836 69,034 4,237 11,869 42,315 10,243 65,748 1,231 10,454 40,226 10,444 55,170 1,827 13,894 35,895 14,939 45,581 2,283 13,619 32,514 10,401 $ 16,175 $ 24,108 $ 24,301 $ 16,403 $ 14,002 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 * Includes loans held for sale Total Deposits $ in millions Net Income $ in thousands • Denver LPO • Chicago LPO 1 5 5 2 9 5 1 $ 1 $ , , 4 4 4 1 $ , 9 7 4 1 $ , 2 5 2 1 $ , 2 9 0 1 $ , 1 0 3 4 2 $ , 8 0 1 4 2 $ , 5 7 1 6 1 $ , 3 0 4 6 1 $ , 2 0 0 4 1 $ , • 11 Southern California Branches • Los Angeles LPO • Orange County LPO • Artesia LPO • Texas LPO • Washington Bellevue LPO Branches & Loan Production Office Book value per common share at year end $ 15.19 $ 14.44 $ 13.16 $ 10.60 $ 9.48 Basic earnings per common share Diluted earnings per common share 1.05 1.04 1.52 1.49 1.69 1.65 1.22 1.21 1.12 1.11 Weighted-average shares outstanding - basic 15,384,231 15,873,383 14,397,075 13,408,030 12,532,807 Weighted-average shares outstanding - diluted 15,448,892 16,172,282 14,691,370 13,540,293 12,607,990 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Shares of common stock outstanding 15,385,878 15,707,016 15,977,754 13,417,899 13,391,222 * Include loans held for sale ** Adjusted for stock dividend retroactively 2020 • ANNUAL REPORT / 08 • New York LPO • Bayside, New York • Englewood Cliffs, New Jersey • Virginia LPO 2020 • ANNUAL REPORT / 09 Board of Directors Corporate Information Daniel Cho President & CEO Maya Tech. Haeyoung Cho Former President & CEO PCB Bancorp & Pacific City Bank Kijun Ahn Project Manager Moffatt & Nichol Sarah Jun Attorney Law Office of Sarah Jun Sang Young Lee Chairman of the Board President & CEO Lee’s Gold & Diamond Import, Inc. Don Rhee President & CEO Active USA, Inc. Hong Kyun “Daniel” Park Partner KNP, LLP Henry Kim President & Chief Executive Officer PCB Bancorp & Pacific City Bank Board of Directors Executive Officers Corporate Offices Regional Offices Shareholder Information LA Regional Office 3701 Wilshire Blvd., Suite 650 Los Angeles, CA 90010 213.201.5405 • Michael Kang Senior Vice President & LA Regional Manager Orange County Regional Office 17100 Pioneer Blvd., Suite 470 Artesia, CA 90701 562.207.3060 • Woo Young Choung Senior Vice President & OC Regional Manager Independent Public Accountant Crowe LLP Sherman Oaks, CA 91403 Registar and Transfer Agent Computershare Canton, MA Legal Counsel STUART | MOORE | STAUB San Luis Obispo, CA Listing of Common Stock PCB Bancorp’s common stock is traded on the Nasdaq. Its symbol is “PCB”. Kijun Ahn Project Manager Moffatt & Nichol Daniel Cho President & CEO Maya Tech. Haeyoung Cho Former President and CEO PCB Bancorp & Pacific City Bank Sarah Jun Attorney Law Office of Sarah Jun Sang Young Lee Chairman of the Board President & CEO Lee’s Gold & Diamond Import, Inc. Hong Kyun “Daniel” Park Partner KNP, LLP Don Rhee President & CEO Active USA, Inc. Henry Kim President & Chief Executive Officer PCB Bancorp & Pacific City Bank Henry Kim President & Chief Executive Officer Timothy Chang Executive Vice President & Chief Financial Officer Andrew Chung Executive Vice President & Chief Risk Officer Corporate Secretary John Ju Executive Vice President & Chief Lending Officer Brian Bang Senior Vice President & Chief Credit Officer Justin Chon Senior Vice President & Chief Consumer Lending Officer Mimi Lee Senior Vice President & Chief Operations Administrator Headquarters 3701 Wilshire Blvd., Suite 900 Los Angeles, CA 90010 213.210.2000 Consumer Loan Department 3701 Wilshire Blvd., Suite 100 Los Angeles, CA 90010 213.210.2077 • Joon Hee Lee Senior Vice President & Manager Commercial Loan Center 3701 Wilshire Blvd., Suite 409 Los Angeles, CA 90010 213.210.2069 • Brian Kim Senior Vice President & Manager Residential Mortgage Center 3701 Wilshire Blvd., Suite 402 Los Angeles, CA 90010 213.355.8899 • Jay Lee Senior Vice President & RMC Manager SBA Department 3701 Wilshire Blvd., Suite 310 Los Angeles, CA 90010 213.210.2070 • Eunice Kwak Senior Vice President & SBA Manager 2020 • ANNUAL REPORT / 10 2020 • ANNUAL REPORT / 11 Branches & Loan Production Offices Branches Branches Branches Loan Production Offices Loan Production Offices Torrance 2505 Torrance Blvd. Torrance, CA 90503 310.755.6900 • Joanne Oh Senior Vice President & Branch Manager Western 450 S. Western Ave., Suite 213 Los Angeles, CA 90010 213.915.5266 • Young Hoon Jang Senior Vice President & Branch Manager Wilshire 3701 Wilshire Blvd., Suite 100 Los Angeles, CA 90010 213.210.2001 • Annie Jo Senior Vice President & Wilshire Regional Manager Bayside 220-34 Northern Blvd. Bayside, NY 11361 347.220.0001 • Jennifer Kim First Vice President & Branch Manager Buena Park 5400 Beach Blvd., Suite 101 Buena Park, CA 90621 714.367.7990 • Joanne Kim Senior Vice President & Branch Manager Cerritos 17709 Pioneer Blvd. Artesia, CA 90701 562.207.3060 • Michael Cho Senior Vice President & Branch Manager Downtown Fashion District 777 E. 12th St., Suite 200 Los Angeles, CA 90021 213.342.2800 • Thomas Kim Senior Vice President & Downtown Regional Manager Englewood Cliffs 45-47 Sylvan Ave. Englewood Cliffs, NJ 07632 201.849.6000 • Jungwhan Ryu Senior Vice President & NJ/NY Regional Manager Fullerton 5301 Beach Blvd. Buena Park, CA 90621 714.860.7100 • Joanne Kim Senior Vice President & Branch Manager Irvine 13140 Yale Ave. Irvine, CA 92620 714.263.1800 • Kyoung Soo Yim Senior Vice President & Branch Manager Little Tokyo 333 S. Alameda St., Suite 109 Los Angeles, CA 90013 213.694.4360 • Young Hoon Jang Senior Vice President & Branch Manager Olympic 2730 W. Olympic Blvd. Los Angeles, CA 90006 213.201.5600 • Yeon Ho Lee Senior Vice President & Branch Manager Rowland Heights 18160 Colima Rd. Rowland Heights, CA 91748 626.363.6730 • Hyun Hee “Connie” Kim Senior Vice President & Branch Manager Orange County LPO 13140 Yale Ave. Irvine, CA 92620 714.263.1810 • Taeho Kim Senior Vice President & Manager Texas LPO 2625 Old Denton Rd., Suite 404-A Carrollton, TX 75007 214.908.8638 • Simon Lee Senior Vice President & Manager Virginia LPO 7535 Little River Tpke., Suite 204 Annandale, VA 22003 703.256.0119 • Yong Jae Park Senior Vice President & Manager Washington/Bellevue LPO 14205 SE 36th St., Suite 100 Bellevue, WA 98006 425.519.3736 • Steven Yang Senior Vice President & Manager Artesia LPO 17100 Pioneer Blvd., Suite 470 Artesia, CA 90701 562.207.3060 • Woo Young Choung Senior Vice President & OC Regional Manager Chicago LPO 2454 E Dempster St., Suite 402 Des Plaines, IL 60016 847.768.9500 • Seikeun Ahn Senior Vice President & Manager Denver LPO 2851 S. Parker Rd., Suite 540 Aurora, CO 80014 303.905.1181 • Kelvin Huh Senior Vice President & Manager Los Angeles LPO 3701 Wilshire Blvd., Suite 310 Los Angeles, CA 90010 213.210.2027 • Peter Han Senior Vice President & Manager New York LPO 220-34 Northern Blvd. Bayside, NY 11361 917.565.7055 • Seung Jun Lee First Vice President & Manager The complete PCB 2020 Form 10-K is saved in the attached USB 2020 • ANNUAL REPORT / 12 2020 • ANNUAL REPORT / 13 3701 Wilshire Blvd., Suite 900, Los Angeles, CA 90010 Tel: (213)210-2000 / www.paccitybank.com
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