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2023 ReportPeers and competitors of PCB Bancorp:
Community Bancorp2022 ANNUAL REPORT 3701 Wilshire Blvd., Suite 900, Los Angeles, CA 90010 Tel: (213)210-2000 / www.mypacbank.com New Name PEOPLE We invest in each customer’s unlimited possibilties and vision COMMUNITY We are rooted in our community. We embrace our responsibilities as a member of the community. BUSINESS we design our products and services to help our customers achieve their business goals in the ever-changing financial environments. 2022 • ANNUAL REPORT / 01 2022 • ANNUAL REPORT / 01 Company Profile PCB Bank Headquarters PCB Bancorp (“PCB”) is the parent company of PCB 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 16 branch locations, 11 full-service branches in Los Angeles and Orange counties, California, three full-service branches on the East Coast (Bayside, New York, and Englewood Cliffs and Palisade Park, New Jersey), two full-service branches in Texas (Carrollton and Dallas), as well as nine loan production offices (“LPOs”) in six states serving a diverse ethnic background. The Bank is one of the leading banks in the Korean-American community. Dear Shareholders: Year 2022 has been a busy and challenging time for all of us. In spite of the lingering aftermath of the global pandemic and recent turmoil in the regional banking sector, we are pleased to share some of our notable accomplishments we achieved during the year. • Recognition as the Best Performing Bank – In 2022, PCB was recognized as the #1 performing bank among the 300 largest publicly-traded banks in the U.S. by BankDirector based on our overall fiscal year 2021 performance. • Rebranding – We unveiled our new name “PCB BANK” along with a new logo. Our former name “Pacific City Bank” served its purpose over the past 19 years, but given our strategic plans to expand in multiple states and go beyond our current marketplaces, we believed it was the optimal time to demonstrate our commitment to “People, Community, and Business banking” and expand beyond our West Coast footprint. • Strong Financial Performance - We earned a $35.0 million, or $2.31 per diluted share, for 2022, and our return on assets was 1.54%. Our total assets increased by $270.3 million, or 12.6%, to $2,420.0 million and our deposits increased by 2022 • ANNUAL REPORT / 02 2022 • ANNUAL REPORT / 03 Left to Right Justin Chon Executive Vice President & Chief Consumer Lending Officer, Andrew Chung Executive Vice President, Chief Risk Officer & Corporate Secretary, David W. Kim Executive Vice President & Chief Banking Officer, John Ju Executive Vice President & Chief Lending Officer, Henry Kim President & Chief Executive Officer, Michael A. Kwon Senior Vice President & Chief Technology Officer, Mimi Lee Senior Vice President & Chief Operations Administrator , Timothy Chang Executive Vice President & Chief Financial Officer, Brian Bang Executive Vice President & Chief Credit Officer We have never wavered on our pledge to strive for the success of our clients, be socially responsible to the communities in our marketplace, invest generously in the resources to better serve our customers, and always make decisions that benefit our shareholders in the long term. $178.8 million, or 9.6%, to $2,046.0 million, and our net loan This has increased our Bank’s Total Capital to Risk-Weighted portfolio increased by $311.3 million, or 18.2%, to $2,021.1 million. Assets ratio to 17.5%, a robust position that is providing assurances to our deposit customers who are concerned from • Full-Service Branch Expansion – After opening our second the recent instability surrounding certain regional banks. This New Jersey branch in Palisades Park in August, we entered additional level of substantial capital buffer will help us safely the Texas market with two new full-service branches; one in navigate through turbulent economic periods and provide us Dallas and the other in Carrollton. with significant growth opportunities during and after such • Establishment of Mortgage Warehouse Lending Division in economic downturn. Georgia – We launched a new mortgage warehouse lending • Social Responsibility to Our Community – In addition to the division in Georgia that specializes in providing credit to home numerous volunteering hours we have generously contributed mortgage lenders nationwide. In spite of the recent slowdown to our community, we awarded $75,000 in scholarships to 25 in overall home mortgage volume, we experienced a steady students to assist them in their pursuit of higher education. increase in lending activity in this new division. When the This was our 5th continuous year of generously awarding cycles of home mortgage market improve, we anticipate this scholarships to such qualified and well deserving students. division will take full advantage of improving market conditions in the coming years. 2023 is expected to be another difficult and challenging year for us. In fact, most economists are predicting some level of a • Robust Capital Levels – In May 2022, we received $69.1 recession. It is rather difficult for us to disagree with such an million in new capital from the holding company, as part of the assessment based on the economic indicators. However, based U.S. Treasury’s Emergency Capital Investment Program (“ECIP”). on our solid balance sheet and robust capital levels, we believe that (Left to Right) Sang Young Lee Chairman of the Board / Henry Kim President & Chief Executive Officer 2022 • ANNUAL REPORT / 04 2022 • ANNUAL REPORT / 05 PCB Bancorp 1st Rank In 2022, BankDirector selected “PCB Bancorp” as the 1st Rank. Over the years, our dedicated and resilient PCB professional members have repeatedly proven to quickly adapt to changing circumstances and rise above difficult challenges. the difficult challenges ahead may provide us with a strong relationship banking philosophy will remain unique opportunities to take advantage of and absolutely critical during these times, and it will be elevate us to the next level by uncovering rare and more than ever obvious that community banks outstanding business prospects our competitors with a solid diversified relationship banking may be unable to see. platform will continue to flourish. With inflation reaching its highest levels of the The rising interest rates will drive our net interest past 40 years, the Fed has implemented a series margins higher over the long term, but the current of aggressive interest rate hikes from 2022 as a economic uncertainty and the extraordinary speed measure to slow the economy and bring inflation of rate hikes will pressure our margins in the short under control. With such a dreary backdrop, we will, term. To remain competitive and thrive in this more than ever, be disciplined, methodical, and economic environment, we will continue to focus decisive in executing our 2023 strategic initiatives. on adopting the latest technology and financial innovations to stay ahead of our competition, to In times of economic uncertainties and growing improve efficiencies from automations, and to pessimistic outlook, we will be vigilant and remain enhance our digital capabilities. proactive in monitoring our loan portfolio to maintain our exceptional asset quality. Maintaining The successful execution of our strategic initiatives Palisades Park, Dallas, Carrollton Branch Opening We will provide more convenient services through a wider branch network. The global pandemic and the recent turmoil in the regional banking sector has brought out the best in PCB. We are stronger now than before the start of the pandemic. largely depends on our dedicated employees. regional banking sector has brought out the best Over the years, our dedicated and resilient PCB in PCB. We are stronger now than before the start professional members have repeatedly proven to of the pandemic. We have never wavered on our quickly adapt to changing circumstances and rise pledge to strive for the success of our clients, be above difficult challenges. We take great pride in socially responsible to the communities in our the tenacious characteristics of our employees marketplace, invest generously in the resources and corporate culture that promotes the spirit of to better serve our customers, and always make teamwork to provide the exceptional customer decisions that benefit our shareholders in the long experience. This has separated us from our term. competitors. We will continue to invest in our people by attracting and retaining talented On behalf of our Board of Directors and employees, professionals and challenge all of our employees thank you for your continued support, trust, and to be diligent and persistent in the pursuit of confidence in PCB. improving professional skills and subject matter expertise to respond quickly with creative and Sincerely, flexible solutions in satisfying all of our customers’ financial needs. The global pandemic and the recent turmoil in the Sang Young Lee Chairman of the Board Henry Kim President & Chief Executive Officer Scholarship Awarded Scholarships are awarded along with community development. 2022 • ANNUAL REPORT / 06 2022 • ANNUAL REPORT / 07 Financial Highlights AS OF OR FOR THE YEARS ENDED DECEMBER 31, (dollars in thousands except share and per share data) 2022 2021 2020 2019 2018 BALANCE SHEET DATA Total assets $ 2,420,036 $ 2,149,735 $ 1,922,853 $ 1,746,328 $ 1,697,028 Net loans * Total deposits 2,043,932 1,746,850 1,559,047 1,438,426 1,331,296 2,045,983 1,867,134 1,594,851 1,479,307 1,443,753 Shareholders’ equity 335,442 256,286 233,788 226,834 210,296 0 2 4 2 $ , 0 5 1 2 $ , 3 2 9 1 $ , 7 9 6 1 $ , 6 4 7 1 $ , 6 4 0 2 $ , 7 6 8 1 $ , 4 4 4 1 $ , 9 7 4 1 $ , 5 9 5 1 $ , 4 4 0 2 $ , 7 4 7 1 $ , 9 5 5 1 $ , 8 3 4 1 $ , 1 3 3 1 $ , , 3 0 1 0 4 $ , 7 8 9 4 3 $ , 1 0 3 4 2 $ , 8 0 1 4 2 $ 5 7 1 6 1 $ , 2018 2019 2020 2021 2022 Total Aseet 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Total Deposit Net Loans* Net Income Financial Highlights AS OF OR FOR THE YEARS ENDED DECEMBER 31, (dollars in thousands except share and per share data) 2022 2021 2020 2019 2018 STATEMENT OF INCOME DATA Interest income $ 101,751 $ 81,472 $ 79,761 $ 92,945 $ 83,699 Interest expense Net interest income Provision (reverse) for loan losses Noninterest income Noninterest expenses Income tax expense 12,119 89,632 3,602 14,499 51,126 14,416 4,335 13,572 77,137 (4,596) 18,434 43,208 16,856 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 Net income $ 34,987 $ 40,103 $ 16,175 $ 24,108 $ 24,301 PER SHARE DATA Book value per common share at year end $ 22.94 $ 17.24 $ 15.19 $ 14.44 $ 13.16 Tangible common equity per common share ** $ 18.21 $ 17.24 $ 15.19 $ 14.44 $ 13.16 Basic earnings per common share Diluted earnings per common share 2.35 2.31 2.66 2.62 1.05 1.04 1.52 1.49 1.69 1.65 Weighted-average shares outstanding - basic 14,822,018 15,017,637 15,384,231 15,873,383 14,397,075 Weighted-average shares outstanding - diluted 15,065,175 15,253,820 15,448,892 16,172,282 14,691,370 Shares of common stock outstanding 14,625,474 14,865,825 15,385,878 15,707,016 15,977,754 * includes loans held-for-sale ** Non-GAAP ratio. See See “Non-GAAP Measures” in the accompanying Annual Report on Form 10-K for reconciliation of this measure to its most comparable GAAP measure. 2022 • ANNUAL REPORT / 08 2022 • ANNUAL REPORT / 09 Sang Young Lee Chairman of the Board President & CEO Lee’s Gold & Diamond Import, Inc. Daniel Cho President & CEO Maya Tech. Daniel Park Partner KNP, LLP Branches & Loan Production Offices Broader branch network and convenient services Board of Directors PCB Bancorp’s Board of Directors is supported by a distinguished group of leaders and corporate professionals from various market sectors and industry groups. Don Rhee President & CEO Active USA, Inc. Haeyoung Cho Former President & CEO PCB Bancorp & PCB Bank Janice Chung President & CEO BIC Technologies Group Kijun Ahn Project Manager Moffatt & Nichol Henry Kim President & Chief Executive Officer PCB Bancorp & PCB Bank • 1 New York Branch - Bayside •2 New Jersey Branches - Englewood Cliffs - Palisades Park • Virginia LPO The complete PCB 2022 Form 10-K is saved in the attached USB (64GB USB) • Colorado LPO • 2 Texas Branches - Carrolltonk - Dallas • Texas LPO • Georgia LPO • Washington LPO • Los Angeles LPO • Orange County LPO • 11 Southern California Branches - Buena Park - Cerritos - Downtown Fashion District - Fullerton - Irvine - Little Tokyo - Olympic - Rowland Heights - Torrance - Western - Wilshire 2022 • ANNUAL REPORT / 10 2022 • ANNUAL REPORT / 11 Board of Directors Executive Officers Corporate Offices Daniel Cho President & CEO Maya Tech. Daniel Park Partner KNP, LLP Don Rhee President & CEO Active USA, Inc. Haeyoung Cho Former President and CEO PCB Bancorp & PCB Bank Henry Kim President & Chief Executive Officer PCB Bancorp & PCB Bank Janice Chung President & CEO BIC Technologies Group Kijun Ahn Project Manager Moffatt & Nichol Sang Young Lee Chairman of the Board President & CEO Lee’s Gold & Diamond Import, Inc. Sarah Jun Attorney Law Offices of Sarah Jun, Inc. 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 Commercial Loan Center 3701 Wilshire Blvd., Suite 409 Los Angeles, CA 90010 213.210.2069 • Brian Kim Senior Vice President & Manager Consumer Loan Department 3701 Wilshire Blvd., Suite 409 Los Angeles, CA 90010 213.210.2077 • Joon Hee Lee Senior Vice President & Manager Residential Mortgage Center 3701 Wilshire Blvd., Suite 401 Los Angeles, CA 90010 213.355.8899 • Jay Lee Senior Vice President & Manager SBA Department 3701 Wilshire Blvd., Suite 310 Los Angeles, CA 90010 213.210.2070 • Eunice Kwak Senior Vice President & Manager Trade Finance Department 777 E. 12th St., Suite 200 Los Angeles, CA 90021 213.210.2025 • Yoo Sun Song First Vice President & Trade Finance Operations Officer Corporate Information Regional Offices Shareholder Information 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”. Regional Office- Los Angeles 3701 Wilshire Blvd., Suite 650 Los Angeles, CA 90010 213.201.5405 • Michael Kang Senior Vice President & LA Regional Manager Regional Office- Orange County 17100 Pioneer Blvd., Suite 440 Artesia, CA 90701 562.207.3060 • Woo Young Choung Senior Vice President & OC Regional Manager Mortgage Warehouse Lending Department 3550 George Busbee Pkwy., NW Suite 110 Kennesaw, GA 30144 770.212.3020 • Joy Beam-Bums Senior Vice President & Manager Englewood Cliffs 45-47 Sylvan Ave. Englewood Cliffs, NJ 07632 201.849.6000 • Jungwhan Ryu Senior Vice President & NJ/NY Regional Manager Palisades Park 201 Broad Ave., Suite 1S Palisades Park, NJ 07650 201.849.4240 • Marie Lee First Vice President & Branch Manager Texas Carrollton 2630 Old Denton Rd., Suite 120 Carrollton, TX 75007 469.557.8330 • Young Hoon Kim Assistant Vice President & Deputy Branch Manager Dallas 2144 Royal Ln., Suite 102 Dallas, TX 75229 214.550.7660 • Lois Kim Senior Vice President & Texas Regional Manager Branches California 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 • Woo Young Choung Senior Vice President & OC 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 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 • Michael Cho 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 Torrance 21303 Hawthorne Blvd. Torrance, CA 90503 310.755.6900 • Joanne Oh Senior Vice President & Branch Manager Western 450 S. Western Ave., Suite 213 Los Angeles, CA 90020 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 New York/New Jersey Bayside 220-34 Northern Blvd. Bayside, NY 11361 347.220.0001 • Jennifer Kim First Vice President & Branch Manager Branches & Loan Production Offices Texas LPO 2625 Old Denton Rd., Suite 404-A Carrollton, TX 75007 214.908.8638 • Simon Lee Senior Vice President & Manager Virginia LPO 4000 Legato Rd., Suite 1100 Fairfax, VA 22033 703.314.0301 • Yong Jae Park Senior Vice President & Manager Washington LPO 14205 SE 36th St., Suite 100 Bellevue, WA 98006 425.519.3736 • Steven Yang Senior Vice President & Manager Loan Production Offices Colorado LPO 2851 S. Parker Rd., Suite 540 Aurora, CO 80014 303.905.1181 • Kelvin Huh 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 678.541.3333 • Seikeun Ahn 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 Orange County LPO 13140 Yale Ave. Irvine, CA 92620 714.263.1810 • Taeho Kim Senior Vice President & Manager 2022 • ANNUAL REPORT / 12 2022 • ANNUAL REPORT / 13 3701 Wilshire Blvd., Suite 900, Los Angeles, CA 90010 Tel: (213)210-2000 / www.mypacbank.com
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