Investor Presentation November 2019
Disclosures Where to Find Additional Information FORWARD LOOKING STATEMENTS In addition to historical information, certain matters set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to management’s beliefs, projections and assumptions concerning future results and events. Forward-looking statements, include descriptions of management’s plans or objectives for future operations, products or services, and forecasts of the Company’s revenues, earnings or other measures of economic performance. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this presentation was prepared and can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words or phrases such as “aim,” “can,” "may," "could," "predict," "should," "will," "would," "believe," "anticipate," "estimate," "expect," “hope,” "intend," "plan," "potential," ‘project,” "will likely result," "continue," "seek," “shall,” “possible,” "projection," “optimistic,” and "outlook," and variations of these words and similar expressions or the negative version of those words or phrases. Forward looking statements involve substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. There are many factors that could cause actual results to differ materially from those contemplated by these forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company's earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations and projections expressed in forward-looking statements include those set forth in our filings with the SEC, including under Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. NON-GAAP FINANCIAL MEASURES This presentation presents certain “non-GAAP” financial measures for: (1) efficiency ratio, (2) adjusted efficiency ratio, (3) net interest income excluding discount accretion on acquired loans, (4) net interest margin excluding discount accretion on acquired loans, (5) adjusted net income, (6) adjusted return on average assets, (7) adjusted return on average equity, (8) average tangible common equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per share. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented herein to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. A reconciliation of non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measures is included at the end of this presentation. No non-GAAP metric should be considered as an alternative to any other measure derived in accordance with GAAP. 2 Third Quarter of 2019
Corporate Overview Where to Find Additional Information Highlights – 9 / 3 0 / 1 9 Market Footprint Total Assets $1.7 billion Total Loans (incl. Loans HFS) $1.3 billion Total Deposits $1.3 billion ROAA and ROTCE 1.86% and 16.95% Corporate Headquarters Cerritos, CA Dividend Yield 1 3.58% Market Capitalization 1 $261 million • First Choice Bank founded in 2 0 0 5 , First Choice Bancorp organized in 2 0 1 7 • Full service com m ercial bank • Attractive Southern California footprint w ith 9 branches and 2 loan production offices 1 7 th largest publicly-traded bank headquartered in • Southern California • Evolved from an Asian-Am erican focused bank to becom e a m ainstream bank • Strong com m itm ent to relationship banking 1. As of October 31, 2019 3 Third Quarter of 2019
Investment Highlights Where to Find Additional Information • Attractive Southern California m arkets in one of the w orld’s largest econom ies • Dem onstrated ability to generate strong organic balance sheet grow th • Above peer group net interest m argin • Extrem ely attractive non-interest DDA base ( alm ost 5 0 % of total deposits) • Historical track record of outstanding asset quality • Highly accretive acquisition driving strong earnings grow th in 2 0 1 9 • I nitiated Share Repurchase Program in Decem ber 2 0 1 8 – Shares available for repurchase total 7 4 7 ,4 4 7 • Recent developm ents enhancing m arketability of stock I ncreased m arket cap resulting from m erger NASDAQ listing in May 2 0 1 8 Addition to Russell I ndexes in June 2 0 1 8 Sell-side analyst coverage ( Hovde) starting in August 2 0 1 8 4 Third Quarter of 2019
3Q19 Financial Summary Where to Find Additional Information Profitability • Net incom e of $ 8 .1 m illion, or $ 0 .6 8 per diluted share • ROAA of 1 .9 8 % , ROAE of 1 2 .4 5 % and ROTCE of 1 8 .0 3 % ( annualized) • NI M increased 3 8 bps to 5 .5 2 % due to higher discount accretion and low er funding costs • Efficiency ratio of 4 6 .9 % Balance Sheet Grow th • Total loans decreased $ 1 9 .4 m illion from the prior quarter due to low er credit line utilization ( YTD annualized grow th of 5 .2 % ) • Noninterest-bearing deposits increased to 4 9 .7 % of total deposits Credit Quality • Annualized net charge-offs of 0 .1 2 % of average loans • NPAs/ Asset ratio of 0 .4 5 % • ALLL/ NPAs ratio of 1 6 7 % 5 Third Quarter of 2019
Where to Find Additional Information Experienced Management Team Years in FCB Executive Position Background Banking Tenure • CEO of PacTrust Bank Robert Franko President & CEO 30+ 6 • CEO of Beach Business Bank • CFO of Commercial Bank of California Lynn Hopkins Chief Financial Officer • Chief Accounting Officer of PacWest 25+ 1 Bancorp Various management positions at: • Torrey Pines Bank Gene May Chief Credit Officer 30+ 8 • Pacific Western Bank • First Pacific Bancorp • Part of original founding team of First Chief Operations Yolanda Su Choice Bank 30+ 14 Administrator • SVP at First Continental Bank • Partner, Duane Morris, LLP Started Khoi Dang General Counsel • Partner, Horgan, Rosen, Beckham & 13+ in Mar. Coren 2019 6 Third Quarter of 2019
Major Lines of Business Where to Find Additional Information Size Custom er and Market Focus/ Portfolio Data ( as of 9 / 3 0 / 1 9 ) Well-diversified portfolio across property types $ 4 0 2 m illion Com m ercial investor-ow ned Strong niche in hospitality; BOD serves as a significant source of Real Estate referrals $ 1 7 1 m illion ow ner-occupied Avg. yield of 6.59% 1 . No non-performing CRE Loans at 9/ 30/ 19 Well diversified portfolio across customer types including manufacturers, distributors, and professionals Com m ercial and $ 3 1 1 m illion I ndustrial Specialty deposit group focusing on deposit-rich verticals Avg. yield of 6.06% ; NPL/ Total C&I Loans of 0.23% at 9/ 30/ 19 Residential construction primarily related to coastal properties where valuations tend to be supported by supply constraints and $ 1 7 9 m illion strong demand construction Construction and Land $ 4 3 m illion land Prime-based loans with maturities of less than three years Avg. yield of 7.56% . No non-performing Construction Loans at 9/ 30/ 19 Preferred SBA Lender; new funding of $50 million through first nine months of 2019 $ 1 6 2 m illion All loan officers originate SBA loans SBA Average gain-on-sale margin of 5.45% over net carrying value in 3Q19 Avg. yield of 7.52% ; NPL/ SBA Loans of 4.13% at 9/ 30/ 19 1. A purchased credit impaired loan payoff increased the average yield by 38 basis points in 3Q19. 7 Third Quarter of 2019
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