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Westamerica Bancorporation2021 AnnualReport your Partner, your Choice, your Bank Pacific City Bank Headquarters Welcome 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. Moving Forward These tough times showcased our resilience and brought out the best of PCB, prompting us to actively seek and identify new opportunities. Growing with Our Customers and Communities Dear Shareholders: We are pleased to share with you how we successfully operated to benefit our customers, employees, shareholders, and the communities we serve with emphasis on keeping everyone’s health safe, while achieving record financial performance during the past year. During the past two years of global pandemic, we drastically enhanced our ability to work with more flexibility, forged stronger bonds amongst co-workers and with our valued customers. These tough times showcased our resilience and brought out the best of PCB, prompting us to actively seek and identify new opportunities. In 2021, our strength was displayed in various forms as we continued to deliver unmatched services to our customers. 2021 • ANNUAL REPORT / 01 We will continue to make smart investments in technology to enhance digital banking and cyber-security, expand our branch network, and retain and hire talented professionals. During the past two years of global pandemic, we drastically enhanced our ability to work with more flexibility, forged stronger bonds amongst co-workers and with our valued customers. Henry Kim President & Chief Executive Officer In addition to providing the convenience of digital banking, we also earnestly accommodated our customers who preferred face-to-face meetings through our branch network and even on-site client visits by our dedicated professionals. As the pandemic-related shutdowns declined, and consumer and business sentiment gradually improved during the year, we experienced an increase in business activity that resulted in more deposit inflows and an increase in loan demands. Regarding our credit costs, our conservative and vigilance in overall credit monitoring at the peak of global pandemic in 2020 has provided us with an opportunity to release $4.6 million in provision for loan losses during 2021 as the economic outlook improved and our credit quality maintained a historically low problem loans. Our conservative and vigilance in overall credit monitoring in 2020 has provided us with an opportunity to release $4.6 million in provision for loan losses during 2021 as the economic outlook improved and our credit quality maintained a historically low problem loans. 2021 • ANNUAL REPORT / 02 2021 • ANNUAL REPORT / 03 ≠≠–≠≠ Even with a global pandemic on our backdrop, we earned a record $40.1 million 11.8% increased 17.1% increased 9.8% increased s t e s s A l a t o T s t i s o p e D o i l o f t r o P n a o L t e N In all aspects of financial performance, 2021 was a tremendous year. Even with a global pandemic on our backdrop, we earned a record $40.1 million, or $2.62 per diluted share, and our return on assets was 1.96%. We increased total assets by $226.9 million, or 11.8%, to $2,149.7 million and grew our deposits by $272.3 million, or 17.1%, to $1,867.1 million, and our net loan portfolio increased by $152.8 million, or 9.8%, to $1,709.8 million. For the year, our stock price increased by 117%, and we increased our quarterly cash dividend by 20%. Including the share repurchase, we returned $17.5 million in capital back to our shareholders in 2021. Despite such a significant capital return to our shareholders, we maintained an extremely strong capital position with a total-capital-ratio of 16.04% at 2021 year-end. (Left to Right) Sang Young Lee Chairman of the Board / Henry Kim President & Chief Executive Officer 2021 • ANNUAL REPORT / 04 2021 • ANNUAL REPORT / 05 Additionally, compared to the 2020 year-end figure, our book value increased by 13.5% to $17.24 at 2021 year-end compared with 2020 year-end. As we head into 2022, our top priority is disciplined growth. We will continue to make smart investments in technology to enhance digital banking and cyber- security, expand our branch network, and retain and hire talented professionals. As we move forward to the post-pandemic “new normal,” we are well- positioned to deliver unmatched growth and benefit to our shareholders for the next several years. We are delighted by our accomplishments, and our Delivering Consistently Strong Financial Performance In all aspects of financial performance, 2021 was a tremendous year. Looking Forward to a Greater Tomorrow goals are clear. We will be relentless in striving for the success of our customers, be socially responsible to the communities in our marketplace, keep investing in the resources our professionals need to better serve our customers, and always make decisions that benefit our shareholders in the long term. We are well-positioned to make the right moves for disciplined growth ahead and have the right professionals to make it possible. On behalf of our professionals, our management, and the board of directors, we thank you for your partnership and investing in us. Sincerely, Sang Young Lee Chairman of the Board Henry Kim President & Chief Executive Officer Enhancing Stockholder Returns Our stock price increased by 117%, and we increased our quarterly cash dividend by 20%. 2021 • ANNUAL REPORT / 06 2021 • ANNUAL REPORT / 07 Financial Highlights AS OF OR FOR THE YEARS ENDED DECEMBER 31, (dollars in thousands except share and per share data) 2021 2020 2019 2018 2017 BALANCE SHEET DATA Total assets Net loans* Total deposits Shareholders’ equity STATEMENT OF INCOME DATA $ 2,149,735 $ 1,922,853 1,746,328 $ 1,697,028 $ 1,441,999 1,746,850 1,559,047 1,438,426 1,331,296 1,183,072 1,867,134 1,594,851 1,479,307 1,443,753 1,251,290 256,286 233,788 226,834 210,296 142,184 Interest income $ 81,472 $ 79,761 $ 92,945 $ 83,699 $ 65,267 Interest expense Net interest income Provision (reverse) for loan losses Noninterest income Noninterest expenses Income tax expense Net income PER SHARE DATA 4,335 77,137 (4,596) 18,434 43,208 16,856 13,572 66,189 13,219 11,740 41,699 6,836 23,911 69,034 4,237 11,869 42,315 10,243 17,951 65,748 1,231 10,454 40,226 10,444 10,097 55,170 1,827 13,894 35,895 14,939 $ 40,103 $ 16,175 $ 24,108 $ 24,301 $ 16,403 Book value per common share at year end $ 17.24 $ 15.19 $ 14.44 $ 13.16 $ 10.60 Basic earnings per common share Diluted earnings per common share 2.66 2.62 1.05 1.04 1.52 1.49 1.69 1.65 1.22 1.21 Weighted-average shares outstanding - basic 15,017,637 15,384,231 15,873,383 14,397,075 13,408,030 Weighted-average shares outstanding - diluted 15,253,820 15,448,892 16,172,282 14,691,370 13,540,293 Shares of common stock outstanding 14,865,825 15,385,878 15,707,016 15,977,754 13,417,899 * includes loans held-for-sale Net Loans* $ in millions 7 4 7 1 $ , 9 5 5 1 $ , 1 3 3 1 $ , 8 3 4 1 $ , 3 8 1 1 $ , 2017 2018 2019 2020 2021 * Includes loans held for sale Total Assets $ in millions 0 5 1 2 $ , 3 2 9 1 $ , 7 9 6 1 $ , 6 4 7 1 $ , 2 4 4 1 $ , 2017 2018 2019 2020 2021 Net Income $ in thousands 3 0 1 0 4 $ , 1 0 3 4 2 $ , , 8 0 1 4 2 $ , 3 0 4 6 1 $ 5 7 1 6 1 $ , 2017 2018 2019 2020 2021 Total Deposits $ in millions 7 6 8 1 $ , 5 9 5 1 $ , 4 4 4 1 $ , 9 7 4 1 $ , 2 5 2 1 $ , 2017 2018 2019 2020 2021 Financial Highlights 2021 • ANNUAL REPORT / 08 2021 • ANNUAL REPORT / 09 Corporate Information Branches & Loan Production Offices Board of Directors Executive Officers Corporate Offices Regional Offices Shareholder Information Branches 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 Janice Chung President & CEO BIC Technologies Group Sarah Jun Attorney Law Offices of Sarah Jun, Inc. 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 Brian Bang Executive Vice President & Chief Credit Officer David W. Kim Executive Vice President & Chief Banking Officer John Ju Executive Vice President & Chief Lending Officer Justin Chon Executive Vice President & Chief Consumer Lending Officer Michael A. Kwon Senior Vice President & Chief Technology 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 409 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 Warehouse Lending Division 3550 George Busbee Pkwy. Kennesaw, GA 30144 425.519.3736 • Joy Beam-Bums Senior Vice President & 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 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 Cerritos 17709 Pioneer Blvd. Artesia, CA 90701 562.207.3060 • Woo Young Choung Senior Vice President & OC Regional Manager Little Tokyo 333 S. Alameda St., Suite 109 Los Angeles, CA 90013 213.694.4360 • Michael Cho Senior Vice President & Branch Manager 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 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 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 Loan Production Offices 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 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 Georgia LPO 11555 Medlock Bridge Rd., Suite 100 Johns Creek, GA 30097 678.458.4420 • Karl Chang 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 Los Angeles LPO 3701 Wilshire Blvd., Suite 310 Los Angeles, CA 90010 213.210.2027 • Peter Han 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 2021 • ANNUAL REPORT / 10 2021 • ANNUAL REPORT / 11 Kijun Ahn Project Manager Moffatt & Nichol Daniel Cho President & CEO Maya Tech. Board Board of of Directors Directors Haeyoung Cho Former President & CEO PCB Bancorp & Pacific City Bank Branches & Loan Production Office (As of March 31, 2022) • Washington Bellevue LPO Sarah Jun Attorney Law Offices of Sarah Jun, Inc. Sang Young Lee Chairman of the Board President & CEO Lee’s Gold & Diamond Import, Inc. Don Rhee President & CEO Active USA, Inc. Henry Kim President & Chief Executive Officer PCB Bancorp & Pacific City Bank Hong Kyun “Daniel” Park Partner KNP, LLP Janice Chung President & CEO BIC Technologies Group • Denver LPO • Chicago LPO • Bayside, New York • Englewood Cliffs, New Jersey • Virginia LPO The complete PCB 2021 Form 10-K is saved in the attached USB (64GB USB) • 11 Southern California Branches • Los Angeles LPO • Orange County LPO • Texas LPO • Georgia LPO 2021 • ANNUAL REPORT / 12 2021 • ANNUAL REPORT / 13 3701 Wilshire Blvd., Suite 900, Los Angeles, CA 90010 Tel: (213)210-2000 / www.paccitybank.com
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