Current Quarter Highlights

● Record Net income of $8.1 million or $0.68 per diluted share ● Net interest margin of 5.52% ● Return on average assets and average equity of 1.98% and 12.45% ● Noninterest-bearing demand deposits increased $118.8 million and represented 49.7% of total deposits at September 30, 2019

Cerritos, CA, Oct. 22, 2019 (GLOBE NEWSWIRE) -- First Choice Bancorp (NASDAQ: FCBP) (the “Company”), the holding company of First Choice Bank (the “Bank”), today reported net income of $8.1 million for the third quarter of 2019, or $0.68 per diluted share, compared to net income of $6.8 million, or $0.58 per diluted share, for the second quarter of 2019.

“In addition to delivering another strong quarter for our shareholders, we are very pleased to be recently recognized as one of the Best Banks to Work For in 2019 by the American Banker,” said Peter Hui, Chairman of the Board. “This is the second consecutive year that First Choice Bank has been the only Southern California bank to be named to this prestigious list. This underscores our commitment to creating a rewarding workplace environment that attracts talented bankers and keeps turnover low, which has strengthened our franchise and has enabled us to generate strong performance for our shareholders.”

“Our third quarter results reflect the attractive deposit franchise that we continue to build,” said Robert M. Franko, President and CEO of the Company. “Our investment in experienced bankers, focusing on deposit-rich industries and treasury management solutions has enabled us to successfully attract clients who appreciate our expertise and the quality of our technology. We have steadily expanded those relationships over time, and we are committed to building upon this success. Growing our low-cost deposit base provides an excellent foundation for continuing to generate strong returns for our shareholders and to further enhance the value of our franchise.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the third quarter of 2019 totaled $21.0 million, an increase of $2.2 million from $18.8 million for the second quarter of 2019 due to higher interest income of $2.1 million, coupled with lower interest expense of $66 thousand. The increase in interest income was due mostly to $1.9 million in higher accelerated discount accretion from loan payoffs and one additional day in the third quarter compared to the second quarter of 2019. The third quarter of 2019 included $1.6 million of accelerated discount accretion related to the early repayment of one purchased credit impaired loan. The decrease in interest expense for the third quarter of 2019 is due primarily to lower average borrowings and the cost of such funds, offset by higher deposit costs in the third quarter. Interest expense on borrowings decreased $237 thousand which was partially offset by higher deposit interest expense of $171 thousand.

Net Interest Margin

Net interest margin for the third quarter of 2019 increased 38 basis points to 5.52% from 5.14% for the second quarter of 2019. The increase in the net interest margin is due primarily to a 51 basis point increase from higher loan yields, including fees and discounts, and a 5 basis points decrease from lower funding costs, offset by a 14 basis point decrease from lower yields on other earning assets, and a 4 basis point decrease from the change in the earning assets mix. The increase in the loan yield is due primarily to higher income from accelerated discount accretion of 57 basis points. The cost of funds decreased to 0.98% for the third quarter of 2019, compared to 1.03% for the second quarter of 2019 due primarily to the change in the funding mix with a lower percentage of borrowings and higher percentage of noninterest-bearing demand deposits. Average borrowings decreased $29.2 million to $48.3 million and the cost of such funds decreased 43 basis points to 2.08%. Average noninterest-bearing demand deposits increased $56.0 million to $590.2 million and represented 45.8% of total average deposits for the third quarter of 2019, compared to $534.2 million, or 43.6% of total average deposits, for the second quarter of 2019. The total cost of deposits remained flat at 0.89%.

The core net interest margin (non-GAAP) decreased 11 basis points to 4.85% for the third quarter of 2019 compared to 4.96% for the second quarter of 2019. The core average loan yield decreased 6 basis points to 6.17% for the third quarter of 2019 compared to 6.23% for the second quarter of 2019. The decrease in the core net interest margin was due in part to the Federal Reserve reducing the target federal funds rate by 50 basis points during the third quarter and the mix of average earnings assets. The following tables show how the net interest margin and average loan yield were impacted by scheduled discount accretion on acquired loans and accelerated accretion and prepayment penalties from early loan payoffs for the periods indicated:

Three Months Ended -------------------------------------------------------- September 30, June 30, 2019 Variance 2019 ---------------- ---------------- ---------------- Net Net Net Net Net Net Net interest income and net interest margin Interest Intere Interest Intere Interest Interes Income st Income st Income t Margin Margin Margin ------------------------------------------- -------- ----- -------- ----- ------- ------ (dollars in thousands) As reported $ 21,026 5.52 % $ 18,836 5.14 % $ 2,190 0.38 % Less: scheduled accretion income 510 0.14 % 499 0.14 % 11 — % Less: accelerated accretion and prepayment 2,028 0.53 % 155 0.04 % 1,873 0.49 % penalties - ------ ---- - ------ ---- - ----- ----- Core (non-GAAP) $ 18,488 4.85 % $ 18,182 4.96 % $ 306 (0.11 )% - ------ ---- - ------ ---- - ----- -----

Three Months Ended --------------------------------------------------------- September 30, June 30, 2019 Variance 2019 ---------------- ---------------- ----------------- Loan Loan Loan Loan Loan Loan Loan interest income and loan yield Interest Yield Interest Yield Interest Yield Income Income Income ------------------------------------------ -------- ----- -------- ----- ------- ------ (dollars in thousands) As reported $ 23,206 6.93 % $ 21,344 6.42 % $ 1,862 0.51 % Less: scheduled accretion income 510 0.15 % 499 0.15 % 11 — % Less: accelerated accretion and prepayment 2,028 0.61 % 155 0.04 % 1,873 0.57 % penalties - ------ ---- - ------ ---- - ----- ----- Core (non-GAAP) $ 20,668 6.17 % $ 20,690 6.23 % $ (22 ) (0.06 )% - ------ ---- - ------ ---- - ----- -----

Noninterest Income

Noninterest income for the third quarter of 2019 was $1.7 million, a decrease of $649 thousand from $2.3 million for the second quarter of 2019 due mostly to lower gains on sale of SBA loans of $743 thousand, partially offset by higher other income of $228 thousand. SBA loans sold totaled $9.7 million resulting in a gain on sale of $528 thousand in the third quarter of 2019 compared to $16.4 million in SBA loans sold and a gain on sale of $1.3 million in the second quarter of 2019. Other income for the third quarter of 2019 included a Bank Enterprise Award of $233 thousand from the U.S. Treasury’s Community Development Financial Institutions Fund to recognize the Bank for providing affordable housing development and small business loans within distressed communities; there was no similar income in the second quarter of 2019.

Noninterest Expense

Noninterest expense increased $46 thousand to $10.7 million for the third quarter of 2019 from $10.6 million for the second quarter of 2019. This increase was due primarily to higher occupancy and equipment, data processing, loan related, and customer service related expenses, offset partially by lower salaries and employee benefits expenses and deposit insurance and regulatory assessments.

The $110 thousand increase in occupancy and equipment expense was due mostly to a $42 thousand refund in common area charges received in the prior quarter; there was no such credit in the current quarter. The $79 thousand increase in data processing was partially due to higher software amortization of new and upgraded technology. The $173 thousand increase in loan related expenses was due to a $59 thousand protective advance for one defaulted loan in the third quarter and higher reimbursements for loan related expenses in the second quarter due to the timing and recovery of these costs. The $164 thousand increase in customer service related expenses was due to higher average demand deposits during the third quarter.The $385 thousand decrease in salaries and employee benefits was due to lower commissions and incentives and seasonally lower payroll taxes in the third quarter, in addition to higher severance costs in the prior quarter. The $90 thousand decrease in deposit insurance and regulatory assessments was due primarily to the Small Bank Assessment Credits received from the FDIC in the third quarter.

The operating efficiency ratio was 46.9% in the third quarter of 2019, compared to 50.1% in the second quarter of 2019. The lower efficiency ratio was favorably impacted by higher accelerated accretion from loan payoffs in the third quarter versus the second quarter.

Income Taxes

Income tax expense was $3.3 million for the third quarter of 2019, compared to $3.2 million for the second quarter of 2019. The effective tax rate was at 28.9% for the third quarter of 2019 and 31.9% for the second quarter of 2019. The effective tax rate for the full year of 2019 is expected to be approximately 31.0%.

STATEMENT OF FINANCIAL CONDITION

Loan Portfolio

Total loans held for investment decreased $19.4 million, or 1.45%, to $1.32 billion at September 30, 2019. The net decrease was attributed to lower net utilization of existing lines of credit and a lower amount of advances related to the new loan commitments made in the third quarter.

New loan commitments totaled $144.2 million for the third quarter, which compared to $139.9 million for the second quarter. The third quarter commitments included $79.2 million in construction and commercial real estate loans, $49.2 million in commercial and industrial loans, $8.4 million in SBA loans held for investment and $7.4 million of SBA loans held for sale. Total unfunded commitments increased $50.4 million to $395.2 million from $344.8 million at June 30, 2019 due to the lower utilization of existing lines of credit combined with a lower amount of advances related to the current quarter’s new loan commitments.

Deposits

Total deposits increased $83.7 million from the prior quarter to $1.34 billion at September 30, 2019 due to higher noninterest-bearing demand deposits of $118.8 million and higher interest-bearing non maturity deposits of $3.6 million, offset by lower time deposits of $38.8 million. The increase in demand deposits related to both new business development and business activity for our current customers. Brokered time deposits decreased $24.0 million to $128.3 million, of which $118.3 million are callable or mature within six months. Noninterest-bearing deposits totaled $666.3 million and represented 49.7% of total deposits at September 30, 2019 compared to $547.4 million and 43.6% of total deposits at June 30, 2019.

Credit Quality

Non-performing loans totaled $7.4 million at September 30, 2019 and $2.7 million at June 30, 2019, and represented 0.45% and 0.15% of total assets, respectively. The increase in non-performing loans included seven SBA loans totaling $4.3 million and a commercial and industrial loan of $497 thousand all of which were placed on non-accrual status. Net charge-offs for the third quarter of 2019 were $413 thousand, or 0.12% of average loans on an annualized basis, compared to net recoveries of $77 thousand for the second quarter of 2019.

Loan delinquencies (30-89 days past due) totaled $4 thousand at September 30, 2019, compared to $909 thousand at June 30, 2019.

The Company recorded a provision for loan losses of $700 thousand for the third quarter of 2019. The provision for loan losses related primarily to the charge-off and specific reserves for one lending relationship, offset in part by the recapture of general reserves from risk rating changes and lower net loan portfolio growth. The allowance for loan losses represented 0.94% of total loans held for investment and 167% of nonperforming loans at September 30, 2019, compared with 0.90% and 450% at June 30, 2019, respectively. At September 30, 2019, the net carrying value of acquired loans totaled $279.2 million and included a remaining net discount of $7.6 million. The discount is available to absorb losses on the acquired loans and represented 0.57% of total gross loans held for investment.

CAPITAL POSITION

Capital Ratios

At September 30, 2019, the Bank exceeded all regulatory capital requirements under Basel III and was considered to be ‘‘well-capitalized’’.

Septemb Decembe Bank Only er 30, r 31, 2019 2018 (1) ---------------------------------------- ------ ------ Total Capital (to Risk-Weighted Assets) 14.27 % 14.18 % Tier 1 Capital (to Risk-Weighted Assets) 13.32 % 13.26 % CET1 Capital (to Risk-Weighted Assets) 13.32 % 13.26 % Tier 1 Capital (to Average Assets) 12.56 % 12.03 %

(1) Preliminary.

Stock Repurchase Program

During the third quarter of 2019, the Company repurchased 87,500 shares of its common stock at an average price of $21.84 and a total cost of $1.9 million under the stock repurchase program announced in December 2018. For the nine months ended September 30, 2019, the Company repurchased 416,270 shares at an average price of $21.60 and a total cost of $9.0 million. The remaining number of shares authorized to be repurchased under this program was 747,447 shares at September 30, 2019.

About First Choice Bancorp

First Choice Bancorp, headquartered in Cerritos, California, is the sole shareholder of, and the registered bank holding company for, First Choice Bank. As of September 30, 2019, First Choice Bancorp had total consolidated assets of $1.66 billion. First Choice Bank, also headquartered in Cerritos, California, is a community-based financial institution that serves primarily commercial and consumer clients in diverse communities and specializes in loans to small- to medium-sized businesses and private banking clients, commercial and industrial loans, and commercial real estate loans with a specialization in providing financial solutions for the hospitality industry. First Choice Bank is a Preferred Small Business Administration (SBA) Lender. First Choice Bank conducts business through 9 full-service branches, and 2 lending offices located in Los Angeles, Orange and San Diego Counties. Founded in 2005, First Choice Bank has quickly become a leading provider of financial services that enable our customers to grow, maintain strength, and achieve their business objectives. We strive to surpass our clients’ expectations through our efficiency, personalized services and financial solutions and professionalism and are committed to being “First in Speed, Service, and Solutions.” First Choice Bancorp stock is traded on the Nasdaq Capital Market under the ticker symbol “FCBP.”

First Choice Bank’s website is www.FirstChoiceBankCA.com.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance, permit investors to effectively analyze financial trends of our business activities, and enhance comparability with peers across the financial services sector. These non-GAAP financial measures are not a substitute for GAAP measures and should be read in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is included in the accompanying financial tables.

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, shareholder value creation and tax rates. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the Securities and Exchange Commission.

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.

ContactsFirst Choice BancorpRobert M. Franko, 562.345.9241President & Chief Executive OfficerorLynn M. Hopkins, 562.263.8327Executive Vice President & Chief Financial Officer

First Choice Bancorp and Subsidiary

Financial Highlights and Selected Ratios (unaudited):

At or for the Three Months At or for the Nine Months Ended Ended ----------------------------------------- -------------------------- September June September September September 30, 2019 30, 2019 30, 2018 30, 2019 30, 2018 ----------- ----------- ----------- ----------- ----------- (dollars in thousands, except per share amounts) Total interest and dividend income $ 24,343 $ 22,219 $ 18,189 $ 68,401 $ 42,293 Total interest expense 3,317 3,383 2,393 9,347 6,127 - --------- - --------- - --------- - --------- - --------- Net interest income 21,026 18,836 15,796 59,054 36,166 Provision for loan losses 700 550 600 1,600 1,120 - --------- - --------- - --------- - --------- - --------- Net interest income after provision 20,326 18,286 15,196 57,454 35,046 for loan losses Total noninterest income 1,673 2,322 712 6,117 2,068 Total noninterest expense 10,651 10,605 12,372 31,956 25,380 - --------- - --------- - --------- - --------- - --------- Income before taxes 11,348 10,003 3,536 31,615 11,734 Income taxes 3,277 3,192 932 9,725 3,317 - --------- - --------- - --------- - --------- - --------- NET INCOME $ 8,071 $ 6,811 $ 2,604 $ 21,890 $ 8,417 - --------- - --------- - --------- - --------- - --------- Total assets $ 1,655,595 $ 1,730,433 $ 1,587,356 $ 1,655,595 $ 1,587,356 Total loans held for investment 1,316,620 1,336,015 1,225,376 1,316,620 1,225,376 Total deposits 1,339,538 1,255,878 1,307,110 1,339,538 1,307,110 Noninterest-bearing deposits 666,271 547,434 553,253 666,271 553,253 Dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.60 $ 0.60 Net income per share-diluted $ 0.68 $ 0.58 $ 0.25 $ 1.85 $ 1.01 Return on average assets 1.98 % 1.73 % 0.77 % 1.86 % 1.06 % Return on average equity 12.45 % 10.86 % 5.18 % 11.60 % 8.09 % Return on average tangible common 18.03 % 15.89 % 7.07 % 16.95 % 9.28 % equity (1) Net interest margin 5.52 % 5.14 % 4.97 % 5.39 % 4.73 % Core net interest margin (1) 4.85 % 4.96 % 4.60 % 4.97 % 4.45 % Average loan yield 6.93 % 6.42 % 6.32 % 6.66 % 6.06 % Core average loan yield (1) 6.17 % 6.23 % 5.90 % 6.20 % 5.74 % Cost of deposits 0.89 % 0.89 % 0.81 % 0.84 % 0.85 % Cost of funds 0.98 % 1.03 % 0.84 % 0.95 % 0.90 % Efficiency ratio (1) 46.9 % 50.1 % 74.9 % 49.0 % 66.4 % Noninterest-bearing deposits to 49.7 % 43.6 % 42.3 % 49.7 % 42.3 % total deposits Equity to assets ratio 15.62 % 14.69 % 15.33 % 15.62 % 15.33 % Tangible common equity ratio (1) 11.37 % 10.57 % 10.83 % 11.37 % 10.83 % Book value per share $ 22.20 $ 21.65 $ 20.76 $ 22.20 $ 20.76 Tangible book value per share (1) $ 15.38 $ 14.87 $ 13.92 $ 15.38 $ 13.92

(1 ) Non-GAAP measure. See GAAP to non-GAAP Reconciliation.

Condensed Consolidated Balance Sheets (unaudited)

September June 30, December 31, 30, 2019 2019 2018 ------------ ------------ ------------ (dollars in thousands, except per share amounts) ASSETS Cash and due from banks $ 13,918 $ 9,340 $ 17,874 Interest-bearing deposits at other banks 166,697 228,263 176,502 Federal funds sold — — 3,000 - ---------- - ---------- - ---------- Total cash and cash equivalents 180,615 237,603 197,376 Investment securities, available-for-sale 27,344 28,558 29,543 Investment securities, held-to-maturity 5,066 5,076 5,322 Equity securities, at fair value 2,681 2,647 2,538 Restricted stock investments, at cost 12,970 12,927 12,855 Loans held for sale 11,906 8,428 28,022 Total loans held for investment 1,316,620 1,336,015 1,250,981 Allowance for loan losses (12,340 ) (12,053 ) (11,056 ) - ---------- - ---------- - ---------- Total loans held for investment, net 1,304,280 1,323,962 1,239,925 Accrued interest receivable 5,477 5,643 5,069 Premises and equipment 1,796 1,742 1,973 Servicing asset 3,370 3,482 3,186 Deferred taxes 6,397 6,625 8,666 Goodwill 73,425 73,425 73,425 Core deposit intangible 5,986 6,183 6,576 Other assets 14,282 14,132 8,025 - ---------- - ---------- - ---------- TOTAL ASSETS $ 1,655,595 $ 1,730,433 $ 1,622,501 - ---------- - ---------- - ---------- LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits: Noninterest-bearing demand $ 666,271 $ 547,434 $ 546,713 Money market, interest checking and savings 404,518 400,943 465,123 Time deposits 268,749 307,501 240,503 - ---------- - ---------- - ---------- Total deposits 1,339,538 1,255,878 1,252,339 Borrowings 30,000 195,000 104,998 Senior secured debt 13,100 12,800 8,450 Accrued interest payable and other liabilities 14,287 12,634 8,645 - ---------- - ---------- - ---------- Total liabilities 1,396,925 1,476,312 1,374,432 Total shareholders’ equity 258,670 254,121 248,069 - ---------- - ---------- - ---------- TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,655,595 $ 1,730,433 $ 1,622,501 - ---------- - ---------- - ---------- Shares outstanding 11,652,582 11,737,441 11,726,074 Book value per share $ 22.20 $ 21.65 $ 21.16 Tangible book value per share (1) $ 15.38 $ 14.87 $ 14.33

(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation.

Condensed Consolidated Statements of Income (unaudited)

Three Months Ended Nine Months Ended September 30, ------------------------------------------ -------------------------- September June September 2019 2018 30, 2019 30, 2019 30, 2018 ------------ ------------ ------------ ------------ ----------- (dollars in thousands, except per share amounts) INTEREST and DIVIDEND INCOME Interest and fees on loans $ 23,206 $ 21,344 $ 17,296 $ 65,466 $ 40,237 Interest on investment securities 208 215 226 659 698 Interest on deposits at other 701 454 621 1,600 1,176 financial institutions Dividends on FHLB and other stock 228 206 46 676 182 - ---------- - ---------- - ---------- - ---------- - --------- Total interest and dividend income 24,343 22,219 18,189 68,401 42,293 INTEREST EXPENSE Interest on savings, interest 1,283 1,254 1,223 3,776 3,012 checking and money market accounts Interest on time deposits 1,605 1,463 1,072 4,073 2,607 Interest on borrowings 429 666 98 1,498 508 - ---------- - ---------- - ---------- - ---------- - --------- Total interest expense 3,317 3,383 2,393 9,347 6,127 - ---------- - ---------- - ---------- - ---------- - --------- Net interest income 21,026 18,836 15,796 59,054 36,166 Provision for loan losses 700 550 600 1,600 1,120 - ---------- - ---------- - ---------- - ---------- - --------- Net interest income after provision 20,326 18,286 15,196 57,454 35,046 for loan losses NONINTEREST INCOME Gain on sale of loans 528 1,271 171 2,727 866 Service charges and fees on deposit 475 564 380 1,579 803 accounts Net servicing fees 242 287 39 763 318 Other income 428 200 122 1,048 81 - ---------- - ---------- - ---------- - ---------- - --------- Total noninterest income 1,673 2,322 712 6,117 2,068 NONINTEREST EXPENSE Salaries and employee benefits 6,472 6,857 5,045 19,552 12,547 Occupancy and equipment 1,097 987 898 3,513 1,999 Data processing 718 639 666 1,961 1,536 Professional fees 392 426 400 1,237 1,082 Office, postage and 253 255 256 780 641 telecommunications Deposit insurance and regulatory 30 120 143 345 339 assessments Loan related 244 71 142 529 327 Customer service related 437 273 208 1,187 448 Merger, integration and public — — 3,797 — 4,527 company registration costs Amortization of core deposit 197 197 133 590 133 intangible Other expenses 811 780 684 2,262 1,801 - ---------- - ---------- - ---------- - ---------- - --------- Total noninterest expense 10,651 10,605 12,372 31,956 25,380 Income before taxes 11,348 10,003 3,536 31,615 11,734 Income taxes 3,277 3,192 932 9,725 3,317 - ---------- - ---------- - ---------- - ---------- - --------- Net income $ 8,071 $ 6,811 $ 2,604 $ 21,890 $ 8,417 - ---------- - ---------- - ---------- - ---------- - --------- Net income per share-diluted $ 0.68 $ 0.58 $ 0.25 $ 1.85 $ 1.01 Weighted average shares - diluted 11,659,146 11,675,057 10,357,069 11,714,020 8,268,763

Average Balance Sheets and Yield Analysis

Three Months Ended -------------------------------------------------------------------------------------------------- September 30, 2019 June 30, 2019 September 30, 2018 ------------------------------ ------------------------------ ------------------------------ Average Interest Yield Average Interest Yield Average Interest Yield Balance Income / / Balance Income / / Balance Income / / Expense Cost Expense Cost Expense Cost ----------- -------- ----- ----------- -------- ----- ----------- -------- ----- (dollars in thousands) Interest-earning assets: Loans (1) $ 1,328,088 $ 23,206 6.93 % $ 1,334,188 $ 21,344 6.42 % $ 1,085,572 $ 17,296 6.32 % Investment 35,651 208 2.31 % 36,337 215 2.37 % 37,064 226 2.42 % securities Deposits at other financial 134,557 701 2.07 % 83,183 442 2.13 % 130,537 611 1.86 % institutions Federal funds sold/resale — — — % 2,018 12 2.39 % 1,989 10 1.99 % agreements FHLB and other bank 13,988 228 6.47 % 13,932 206 5.93 % 6,180 46 2.95 % stock - --------- - ------ ---- - --------- - ------ ---- - --------- - ------ ---- Total interest-earning 1,512,284 24,343 6.39 % 1,469,658 22,219 6.06 % 1,261,342 18,189 5.72 % assets Noninterest-earning 108,520 110,082 81,222 assets - --------- - --------- - --------- Total assets $ 1,620,804 $ 1,579,740 $ 1,342,564 - --------- - --------- - --------- Interest-bearing liabilities: Interest checking $ 116,107 $ 337 1.15 % $ 111,116 $ 298 1.08 % $ 132,492 $ 361 1.08 % Money market 267,493 890 1.32 % 271,067 900 1.33 % 260,468 781 1.19 % accounts Savings accounts 29,070 56 0.76 % 28,825 56 0.78 % 43,465 81 0.74 % Time deposits 147,568 676 1.82 % 150,601 674 1.80 % 210,158 863 1.63 % Brokered time 138,682 929 2.66 % 128,555 789 2.46 % 53,710 209 1.54 % deposits - --------- - ------ ---- - --------- - ------ ---- - --------- - ------ ---- Total interest-bearing 698,920 2,888 1.64 % 690,164 2,717 1.58 % 700,293 2,295 1.30 % deposits Borrowings 48,263 253 2.08 % 77,442 484 2.51 % 5,514 30 2.16 % Senior secured 12,267 176 5.69 % 12,398 182 5.89 % 5,018 68 5.38 % notes - --------- - ------ ---- - --------- - ------ ---- - --------- - ------ ---- Total interest-bearing 759,450 3,317 1.73 % 780,004 3,383 1.74 % 710,825 2,393 1.34 % liabilities Noninterest-bearing liabilities: Demand deposits 590,212 534,192 425,842 Other liabilities 13,984 13,882 6,627 Shareholders’ 257,158 251,662 199,270 equity - --------- - --------- - --------- Total liabilities and shareholders’ $ 1,620,804 $ 1,579,740 $ 1,342,564 equity - --------- - --------- - --------- Net interest spread $ 21,026 4.66 % $ 18,836 4.32 % $ 15,796 4.38 % - ------ - ------ - ------ Net interest margin 5.52 % 5.14 % 4.97 % Total deposits $ 1,289,132 $ 2,888 0.89 % $ 1,224,356 $ 2,717 0.89 % $ 1,126,135 $ 2,295 0.81 % Total funding $ 1,349,662 $ 3,317 0.98 % $ 1,314,196 $ 3,383 1.03 % $ 1,136,667 $ 2,393 0.84 % sources

(1) Average loans include net discounts and deferred costs. Interest income on loans includes $254 thousand, $236 thousand and $143 thousand related to the accretion of net deferred loan fees, $834 thousand, $760 thousand and $1.2 million related to accretion of discounts for the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018. In addition, interest income includes $1.7 million, $83 thousand and $43 thousand of accretion related to purchased impaired loans for the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018.

Nine Months Ended September 30, ---------------------------------------------------------------- 2019 2018 ------------------------------ ------------------------------ Average Interest Yield Average Interest Yield Balance Income / / Balance Income / / Expense Cost Expense Cost ----------- -------- ----- ----------- -------- ----- (dollars in thousands) Interest-earning assets: Loans (1) $ 1,314,513 $ 65,466 6.66 % $ 888,208 $ 40,237 6.06 % Investment securities 36,355 659 2.42 % 38,232 698 2.44 % Deposits at other financial institutions 99,711 1,570 2.11 % 90,874 1,166 1.72 % Federal funds sold/resale agreements 1,662 30 2.41 % 670 10 2.00 % FHLB and other bank stock 13,937 676 6.48 % 4,736 182 5.14 % - --------- - ------ ---- - --------- - ------ ---- Total interest-earning assets 1,466,178 68,401 6.24 % 1,022,720 42,293 5.53 % Noninterest-earning assets 108,782 34,251 - --------- - --------- $ 1,574,960 $ 1,056,971 - --------- - --------- Interest-bearing liabilities: Interest checking $ 115,358 $ 944 1.09 % $ 154,908 $ 1,273 1.10 % Money market accounts 270,163 2,658 1.32 % 168,240 1,401 1.11 % Savings accounts 30,731 174 0.76 % 54,589 338 0.83 % Time deposits 156,095 2,080 1.78 % 168,416 2,049 1.63 % Brokered time deposits 109,598 1,993 2.43 % 52,709 558 1.42 % - --------- - ------ ---- - --------- - ------ ---- Total interest-bearing deposits 681,945 7,849 1.54 % 598,862 5,619 1.25 % Borrowings 53,987 967 2.39 % 29,529 386 1.75 % Senior secured notes 12,190 531 5.82 % 3,134 122 5.20 % - --------- - ------ ---- - --------- - ------ ---- Total interest-bearing liabilities 748,122 9,347 1.67 % 631,525 6,127 1.30 % Noninterest-bearing liabilities: Demand deposits 562,195 281,337 Other liabilities 12,281 4,946 Shareholders’ equity 252,362 139,163 - --------- - --------- Total liabilities and shareholders’ equity $ 1,574,960 $ 1,056,971 - --------- - --------- Net interest spread $ 59,054 4.57 % $ 36,166 4.23 % - ------ - ------ Net interest margin 5.39 % 4.73 % Total deposits $ 1,244,140 $ 7,849 0.84 % $ 880,199 $ 5,619 0.85 % Total funding sources $ 1,310,317 $ 9,347 0.95 % $ 912,862 $ 6,127 0.90 %

(1) Average loans include net discounts and deferred costs. Interest income on loans includes $721 thousand and $315 thousand related to the accretion of net deferred loan fees, $2.6 million and $2.3 million related to accretion of discounts for the nine months ended September 30, 2019 and 2018. In addition, interest income includes $2.0 million and $43 thousand of accretion related to purchased impaired loans for the nine months ended September 30, 2019 and 2018.

Loan Composition

September 30, 2019 June 30, 2019 December 31, 2018 --------------------- --------------------- --------------------- Percent Percent Percent Amount age of Amount age of Amount age of Total Total Total ----------- ------ ----------- ------ ----------- ------ (dollars in thousands) Construction and land development $ 221,857 16.8 % $ 196,034 14.7 % $ 184,177 14.7 % Real estate: Residential 48,896 3.7 % 51,512 3.9 % 57,443 4.6 % Commercial real estate - owner 171,360 13.0 % 180,161 13.5 % 179,494 14.3 % occupied Commercial real estate - non-owner 401,710 30.6 % 404,177 30.2 % 401,665 32.2 % occupied Commercial and industrial 311,205 23.6 % 332,709 24.9 % 281,718 22.5 % SBA loans 161,608 12.3 % 171,300 12.8 % 146,462 11.7 % Consumer 424 — % 159 — % 159 — % - --------- ----- - --------- ----- - --------- ----- Total loans held for investment, $ 1,317,060 100.0 % $ 1,336,052 100.0 % $ 1,251,118 100.0 % net of discounts Net deferred loan fees (440 ) (37 ) (137 ) - --------- - --------- - --------- Total loans held for investment $ 1,316,620 $ 1,336,015 $ 1,250,981 Allowance for loan losses (12,340 ) (12,053 ) (11,056 ) - --------- - --------- - --------- Total loans held for investment, $ 1,304,280 $ 1,323,962 $ 1,239,925 net - --------- - --------- - ---------

Total loans held for investment

September June 30, December 30, 2019 2019 31, 2018 ----------- ----------- ----------- (dollars in thousands) Gross loans held for investment (1) $ 1,328,031 $ 1,347,687 $ 1,263,891 Unamortized net discounts(2) (10,971 ) (11,635 ) (12,773 ) Net unamortized deferred origination fees (440 ) (37 ) (137 ) - --------- - --------- - --------- Total loans held for investment $ 1,316,620 $ 1,336,015 $ 1,250,981 - --------- - --------- - ---------

Gross loans include purchased credit impaired (“PCI”) loans with a net carrying value of $1.2 million, (1 ) or 0.09% of gross loans at September 30, 2019, $2.3 million, or 0.17% of gross loans at June 30, 2019, and $2.6 million, or 0.21% of gross loans at December 31, 2018. Unamortized net discounts include discounts related to the retained portion of SBA loans and net discounts on Non-PCI acquired loans. At September 30, 2019, net discounts related to loans acquired in (2 ) the PCB acquisition totaled $7.6 million that was expected to be accreted into interest income over a weighted average life of 5.1 years. At June 30, 2019 and December 31, 2018, net discounts related to loans acquired in the PCB acquisition totaled $8.1 million and $9.5 million.

Allowance for Loan losses

For the Three Months For the Nine Months Ended Ended --------------------------------- --------------------- September June September September September 30, 2019 30, 2019 30, 2018 30, 2019 30, 2018 -------- -------- -------- -------- -------- (dollars in thousands) Balance, beginning of period $ 12,053 $ 11,426 $ 10,376 $ 11,056 $ 10,497 Provision for loan losses 700 550 600 1,600 1,120 Charge-offs (437 ) (122 ) (358 ) (561 ) (1,133 ) Recoveries 24 199 38 245 172 - ------ - ------ - ------ - ------ - ------ Net (charge-offs) recoveries (413 ) 77 (320 ) (316 ) (961 ) - ------ - ------ - ------ - ------ - ------ Balance, end of period $ 12,340 $ 12,053 $ 10,656 $ 12,340 $ 10,656 - ------ - ------ - ------ - ------ - ------ Annualized net (charge-offs) recoveries to (0.12 )% 0.02 % (0.12 )% (0.03 )% (0.14 )% average loans

Credit Quality (1)

September June 30, December 30, 2019 2019 31, 2018 -------- ---------- -------- (dollars in thousands) Accruing loans past due 90 days or more $ — $ — $ — Non-accrual loans 7,242 2,504 1,128 Troubled debt restructurings on non-accrual 166 175 594 - ------ - - ------ - ------ Total nonperforming loans 7,408 2,679 1,722 Foreclosed assets — — — - ------ - ------ - ------ Total nonperforming assets $ 7,408 $ $ 2,679 $ 1,722 - ------ - - ------ - ------ Troubled debt restructurings - on accrual $ 324 $ 720 $ 327 - ------ - - ------ - ------ Nonperforming loans as a percentage of total loans held for investment 0.56 % 0.20 % 0.14 % Nonperforming loans as a percentage of total assets 0.45 % 0.15 % 0.11 % Allowance for loan losses as a percentage of total loans held for 0.94 % 0.90 % 0.88 % investment Allowance for loan losses as a percentage of nonperforming loans 166.58 % 449.91 % 642.04 % Accruing loans held for investment past due 30 - 89 days $ 4 $ 909 $ 484

(1) Excludes purchased credit impaired loans with a carrying value of $1.2 million, $2.3 million and $2.6 million at September 30, 2019, June 30, 2019 and December 31, 2018. There were no accruing loans past due 90 days or more and no foreclosed assets for any of the periods presented. GAAP to Non-GAAP Reconciliation

This press release contains certain non-GAAP financial disclosures for: (1) efficiency ratio, (2) adjusted efficiency ratio, (3) core net interest income, (4) core net interest margin, (5) core loan interest income, (6) core average loan yield, (7) adjusted net income, (8) adjusted return on average assets, (9) adjusted return on average equity, (10) return on average tangible common equity, (11) adjusted return on average tangible common equity, (12) tangible common equity to tangible asset ratio, and (13) tangible book value per share. The Company believes the presentation of certain non-GAAP financial measures assists investors in evaluating our financial results. In particular, the use of return on average tangible common equity, tangible common equity to tangible asset ratio, and tangible book value per share is prevalent among banking regulators, investors and analysts. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.

The tables below present the reconciliations of certain GAAP financial measures to the related non-GAAP financial measures:

For the Three Months For the Nine Months Ended Ended ----------------------------------------- -------------------------- September June September September September 30, 2019 30, 2019 30, 2018 30, 2019 30, 2018 ----------- ----------- ----------- ----------- ----------- (dollars in thousands) Efficiency Ratio Noninterest expense (numerator) $ 10,651 $ 10,605 $ 12,372 $ 31,956 $ 25,380 Less: merger, integration and — — 3,797 — 4,527 public company registration costs - --------- - --------- - --------- - --------- - --------- Adjusted noninterest expense $ 10,651 $ 10,605 $ 8,575 $ 31,956 $ 20,853 (numerator) - --------- - --------- - --------- - --------- - --------- Net interest income $ 21,026 $ 18,836 $ 15,796 $ 59,054 $ 36,166 Plus: Noninterest income 1,673 2,322 712 6,117 2,068 - --------- - --------- - --------- - --------- - --------- Total net interest income and $ 22,699 $ 21,158 $ 16,508 $ 65,171 $ 38,234 noninterest income (denominator) - --------- - --------- - --------- - --------- - --------- Efficiency ratio (non-GAAP) 46.9 % 50.1 % 74.9 % 49.0 % 66.4 % Adjusted efficiency ratio 46.9 % 50.1 % 51.9 % 49.0 % 54.5 % (non-GAAP) Net Interest Margin Net interest income $ 21,026 $ 18,836 $ 15,796 $ 59,054 $ 36,166 Less: scheduled accretion income 510 499 663 1,535 663 Less: accelerated accretion and 2,028 155 500 2,966 1,454 prepayment penalties - --------- - --------- - --------- - --------- - --------- Core net interest income (non-GAAP) $ 18,488 $ 18,182 $ 14,633 $ 54,553 $ 34,049 - --------- - --------- - --------- - --------- - --------- Average total interest-earning $ 1,512,284 $ 1,469,658 $ 1,261,342 $ 1,466,178 $ 1,022,720 assets Net interest margin 5.52 % 5.14 % 4.97 % 5.39 % 4.73 % Core net interest margin (non-GAAP) 4.85 % 4.96 % 4.60 % 4.97 % 4.45 % Average loan yield Loan interest income $ 23,206 $ 21,344 $ 17,296 $ 65,466 $ 40,237 Less: scheduled accretion income 510 499 663 1,535 663 Less: accelerated accretion and 2,028 155 500 2,966 1,454 prepayment penalties - --------- - --------- - --------- - --------- - --------- Core loan interest income $ 20,668 $ 20,690 $ 16,133 $ 60,965 $ 38,120 (non-GAAP) - --------- - --------- - --------- - --------- - --------- Average loan balance $ 1,328,088 $ 1,334,188 $ 1,085,572 $ 1,314,513 $ 888,208 Average loan yield 6.93 % 6.42 % 6.32 % 6.66 % 6.06 % Core average loan yield (non-GAAP) 6.17 % 6.23 % 5.90 % 6.20 % 5.74 %

For the Three Months For the Nine Months Ended Ended ----------------------------------------- -------------------------- September June September September September 30, 2019 30, 2019 30, 2018 30, 2019 30, 2018 ----------- ----------- ----------- ----------- ----------- (dollars in thousands) Return on Average Assets, Equity, Tangible Equity Net income $ 8,071 $ 6,811 $ 2,604 $ 21,890 $ 8,417 Add: After-tax merger, integration and public company registration — — 2,716 — 3,424 costs - --------- - --------- - --------- - --------- - --------- Adjusted net income (non-GAAP) $ 8,071 $ 6,811 $ 5,320 $ 21,890 $ 11,841 - --------- - --------- - --------- - --------- - --------- Average assets $ 1,620,804 $ 1,579,740 $ 1,342,564 $ 1,574,960 $ 1,056,971 Average shareholders’ equity 257,158 251,662 199,270 252,362 139,163 Less: Average intangible assets 79,535 79,731 53,078 79,730 17,887 - --------- - --------- - --------- - --------- - --------- Average tangible common equity $ 177,623 $ 171,931 $ 146,192 $ 172,632 $ 121,276 (non-GAAP) - --------- - --------- - --------- - --------- - --------- Return on average assets 1.98 % 1.73 % 0.77 % 1.86 % 1.06 % Adjusted return on average assets 1.98 % 1.73 % 1.57 % 1.86 % 1.50 % (non-GAAP) Return on average equity 12.45 % 10.86 % 5.18 % 11.60 % 8.09 % Adjusted return on average equity 12.45 % 10.86 % 10.59 % 11.60 % 11.38 % (non-GAAP) Return on average tangible common 18.03 % 15.89 % 7.07 % 16.95 % 9.28 % equity (non-GAAP) Adjusted return on average tangible 18.03 % 15.89 % 14.44 % 16.95 % 13.05 % common equity (non-GAAP)

September June 30, 2019 December 31, 30, 2019 2018 ------------ --------------- ------------ (dollars in thousands, except per share amounts) Tangible Common Equity Ratio/Tangible Book Value Per Share Shareholders’ equity $ 258,670 $ 254,121 $ 248,069 Less: Intangible assets 79,411 79,608 80,001 - ---------- - ------------- - ---------- Tangible common equity (non-GAAP) $ 179,259 $ 174,513 $ 168,068 - ---------- - ------------- - ---------- Total assets $ 1,655,595 $ 1,730,433 $ 1,622,501 Less: Intangible assets 79,411 79,608 80,001 - ---------- - ------------- - ---------- Tangible assets (non-GAAP) $ 1,576,184 $ 1,650,825 $ 1,542,500 - ---------- - ------------- - ---------- Equity to assets ratio 15.62 % 14.69 % 15.29 % Tangible common equity to tangible asset ratio (non-GAAP) 11.37 % 10.57 % 10.90 % Shares outstanding 11,652,582 11,737,441 11,726,074 Book value per share $ 22.20 $ 21.65 $ 21.16 Tangible book value per share (non-GAAP) $ 15.38 $ 14.87 $ 14.33

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