8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report: July 29, 2021

Professional Holding Corp.

(Exact name of registrant as specified in its charter)

Florida	001-39215	46-5144312
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
396 Alhambra Circle, Suite 255		33134
Coral Gables, Florida,		(Zip Code)
(Address of principal executive offices)

(786) 483-1757

(Registrant's telephone number, including area code)

Not applicable.

(Former name or former address, if changed since last report)

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Class	Trading Symbol(s)	Name of Exchange on which registered
Class A Common Stock, par value $0.01 per share	PFHD	NASDAQ Stock Market, LLC

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition

On July 29, 2021, Professional Holding Corp. (the “Company”), the parent company of Professional Bank, issued a press release containing information on earnings results for the quarter ended June 30, 2021. A copy of the press release is furnished with this report as Exhibit 99.1 and incorporated herein by reference.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(b) Director Resignation - No Disagreement with the Company

On July 27, 2021, Anton Schutz tendered his resignation to the Board of Directors (the “Board”) of the Company effective immediately. His decision to resign from the Board was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices.

Item 7.01    Regulation FD Disclosure

A slide presentation (available on the Company’s website at https://proholdco.com) containing supplemental information regarding earnings results for the quarter ended June 30, 2021, is being furnished in accordance with Regulation FD of the Securities and Exchange Commission. A copy of the slide presentation is included as Exhibit 99.2 to this report.

Item 9.01    Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1 and Exhibit 99.2 are furnished pursuant to Items 2.02 and 7.01 and are not to be considered “filed” under the Securities Exchange Act of 1934, as amended (“Exchange Act”), and shall not be incorporated by reference into any of the Company’s previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in any such future filing.

Exhibit No.	Description
99.1	Press Release dated July 29, 2021, with respect to Professional Holding Corp.’s earnings results for the quarter ended June 30, 2021
99.2	Slide presentation containing supplemental information regarding earnings results for the quarter ended June 30, 2021

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Professional Holding Corp.
Date: July 29, 2021	By:	/s/ Michael C. Sontag
		Michael C. Sontag
		Corporate Secretary

EX-99.1

Exhibit 99.1

Professional Holding Corp. Reports Second-Quarter Results

Quarterly Net Income of $6.3 Million as Assets Approach $2.6 Billion

Coral Gables, Fla., July 29, 2021 – Professional Holding Corp. (the “Company”) (NASDAQ:PFHD), the parent company of Professional Bank (the “Bank”), today reported net income of $6.3 million, or $0.47 per share, for the second quarter of 2021 compared to net income of $4.8 million, or $0.36 per share, for the first quarter of 2021, and net income of $3.1 million, or $0.22, for the second quarter of 2020.

“The Company had a strong quarter of asset and net income growth.” said Daniel R. Sheehan, Chairman and Chief Executive Officer. “These results were a product of continued scale and noninterest income improvement.”

Results of Operations for the Three Months Ended June 30, 2021

● Net income increased $1.5 million, or 32.3%, to $6.3 million compared to the prior quarter.  The increase was primarily due to balance sheet expansion and increases in service charges on deposit accounts associated with acting as a correspondent bank for a Payroll Protection Program lender (the “Correspondent Banking Relationship”).

● During the quarter we recognized $1.4 million from the reduction of fees associated with the Bank’s Payroll Protection Program (“Professional Bank PPP”) and $0.7 million in deposit correspondent fees from the Correspondent Banking Relationship.

● Net interest income decreased $0.7 million, or 3.8%, to $17.2 million compared to the prior quarter primarily due to a decrease in Professional Bank PPP loan fees coupled with payoffs of higher yielding loans.

● Noninterest income increased $1.1 million, or 105.7%, to $2.3 million, compared to the prior quarter primarily due to increases in service charges from the Correspondent Banking Relationship, secondarily to an increase in SWAP fees, and to a one-time credit to an unwinding fee of a Federal Home Loan Bank advance.

● Noninterest expense decreased $0.8 million, or 7.1%, to $11.0 million compared to the prior quarter primarily due to the payment of change-in-control obligations paid in the prior quarter.

Results of Operations for the Six Months Ended June 30, 2021

● The variance in the six-month Results of Operations for 2021 compared to 2020 occurred in part due to the March 26, 2020, closing date of the Marquis Bancorp, Inc. (“MBI”) acquisition as there were 95 days of MBI integration in the first six months of 2020 compared to 181 days in the first six month of 2021 (the “MBI Variance”).

● Net income increased $9.3 million, or 512.8%, to $11.1 million compared to the prior year. The increase was primarily due to the MBI Variance, Professional Bank PPP loan fees recognized, and deposit fees associated with the Correspondent Banking Relationship.

● Net interest income increased $10.7 million, or 44.1%, to $35.1 million from the prior year primarily due to loan growth.

● Noninterest income increased $1.6 million, or 87.6%, to $3.4 million, compared to the prior year primarily due to increases in service charges on deposit accounts associated with the Correspondent Banking Relationship, $0.5 million increase in SWAP referral fees, $0.3 million increase in Bank Owned Life Insurance (“BOLI”), and $0.2 million increase in fees generated from loans held for sale, offset by a $0.3 million decrease in SBA loan origination fees.

● Noninterest expense increased $1.7 million, or 8.1%, to $22.7 million compared to the prior year. The year over year increase was due to increased salaries and investment in digital infrastructure. The Bank’s number of employees increased from 137 as of December 31, 2019, to 179 as of June 30, 2020, which increase was due to the MBI merger, and further increased to 194 as of June 30, 2021.

Financial Condition:

At June 30, 2021:

● Total assets increased 14.7%, or $0.4 billion, to $2.6 billion compared to the prior quarter primarily due to increases in customer deposit accounts associated with the Correspondent Banking Relationship and investments in taxable securities available-for-sale. Additionally, total assets increased 26.0%, or $0.5 billion, compared to June 30, 2020.

● Total loans were flat at $1.7 billion compared to the prior quarter. New loan originations were $186.8 million ($169.2 million of conventional loans, of which $118.0 million funded, coupled with $17.6 million of Professional Bank PPP loans). The Professional Bank PPP loan balance decreased $66.7 million, or 31.7%, from the prior quarter.

● Total Deposits increased 19.7%, or $0.4 billion, to $2.3 billion compared to the prior quarter primarily due to increases in noninterest bearing demand deposit accounts. Additionally, average assets for the quarter increased due to large balances associated with the Correspondent Banking Relationship.

● Nonperforming assets remained unchanged at $2.8 million compared to the prior quarter. As of June 30, 2020, the Company had nonperforming assets of $6.2 million.

Capital

The Company continues to remain well capitalized per regulatory requirements. As of June 30, 2021, the Company had a total risk-based capital ratio of 14.1% and a leverage capital ratio of 7.8%. During the quarter, the Company infused $15.0 million of capital into the Bank in order support asset growth and maintain well capitalized ratios at the Bank.

On March 2, 2020, the Company’s Board of Directors authorized the repurchase from time to time of the Company’s Class A Common Stock. Under this program, shares may be repurchased in open market transactions, including plans complying with Rule 10b5-1 under the Exchange Act. On May 5, 2021, the Company issued a press release announcing that the Board of Directors of the Company authorized an increase in the amount available under its existing stock repurchase program such that, effective May 6, 2021, $10.0 million of additional funds were made available to repurchase outstanding shares of the Company’s Class A Common Stock. For the three months ended June 30, 2021, the Company repurchased 193,289 shares of Class A Common Stock, at an average price of $17.88 per share. As of June 30, 2021, year to date, the Company repurchased 247,768 shares of Class A Common Stock, at an average price of $17.50 per share.

Liquidity

The Company maintains a strong liquidity position. At June 30, 2021, in addition to its balance sheet liquidity, the Company had the ability to generate approximately $370.9 million in liquidity through available resources. Additionally, the Company retained $20.2 million in cash held at the holding company.

Net Interest Income and Net Interest Margin Analysis

Net interest income was $17.2 million for the three months ended June 30, 2021. The following table shows the average outstanding balance of each principal category of the Company’s assets, liabilities, and shareholders’ equity, together with the average yields on assets and the average costs of liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the respective periods. For the three months ended June 30, 2021, the Company’s cost of funds was 0.30%.

	For the Three Months Ended June 30,
	2021						2020
	Average		Interest				Average		Interest
	Outstanding		Income/		Average		Outstanding		Income/		Average
(Dollars in thousands)	Balance		Expense(4)		Yield/Rate		Balance		Expense(4)		Yield/Rate
Assets
Interest earning assets
Interest-bearing deposits	$	580,632	$	178	0.12	%	$	170,658	$	44	0.10	%
Federal funds sold		69,506		24	0.14	%		32,965		12	0.15	%
Federal Reserve Bank stock, FHLB stock and other corporate stock		7,391		99	5.37	%		7,598		131	6.93	%
Investment securities - taxable		70,137		161	0.92	%		88,365		241	1.10	%
Investment securities - tax exempt		20,172		189	3.76	%		20,973		197	3.78	%
Loans(1)		1,699,403		18,311	4.32	%		1,501,590		17,897	4.79	%
Total interest earning assets		2,447,241		18,962	3.11	%		1,822,149		18,522	4.09	%
Loans held for sale		2,638						—
Noninterest earning assets		115,358						102,663
Total assets	$	2,565,237					$	1,924,812
Liabilities and stockholders’ equity
Interest-bearing liabilities
Interest-bearing deposits		1,377,712		1,430	0.42	%		994,972		1,617	0.65	%
Borrowed funds		56,347		330	2.35	%		230,516		614	1.07	%
Total interest-bearing liabilities		1,434,059		1,760	0.49	%		1,225,488		2,231	0.73	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		890,292						475,613
Other noninterest-bearing liabilities		17,690						19,540
Stockholders’ equity		223,196						204,171
Total liabilities and stockholders’ equity	$	2,565,237					$	1,924,812
Net interest spread(2)					2.62	%					3.36	%
Net interest income			$	17,202					$	16,291
Net interest margin(3)					2.82	%					3.60	%

(1) Includes nonaccrual loans.

(2) Net interest spread is the difference between interest earned on interest earning assets and interest paid on interest-bearing liabilities.

(3) Net interest margin is a ratio of net interest income to average interest earning assets for the same period.

(4) Interest income on loans includes loan fees of $1.8 million and $0.9 million for the three months ended June 30, 2021, and 2020, respectively.

Provision for Loan Losses

The Company’s provision for loan losses amounted to $0.8 million for the quarter ended June 30, 2021, a decrease of $0.2 million compared to the prior quarter. The decrease in the provision expense was due primarily to loan payoffs in higher risk categories offset by an increase in loan originations.

Investment Securities

The Company’s investment portfolio increased $40.9 million, or 47.1%, to $127.7 million compared to the prior quarter. The increase was primarily due to $41.1 million in purchase of securities available for sale, offset by paydowns and maturities. To supplement interest income earned on the Company’s loan portfolio, the Company invests in high quality mortgage-backed securities, government agency bonds, corporate bonds, community development district bonds, and equity securities (including mutual funds).

Loan Portfolio

The Company’s primary source of income is derived from interest earned on loans. The Company’s loan portfolio consists of loans secured by real estate as well as commercial business loans, construction and development loans, and other consumer loans. The Company’s loan clients primarily consist of small to medium sized businesses, the owners and operators of those businesses, and other professionals, entrepreneurs and high net worth individuals. The Company’s owner-occupied and investment commercial real estate loans, residential construction loans, and commercial business loans provide higher risk-adjusted returns, shorter maturities, and more sensitivity to interest rate fluctuations and are complemented by the relatively lower risk residential real estate loans to individuals. The Company’s lending activities

are principally directed to the Miami-Dade MSA. The following table summarizes and provides additional information about certain segments of the Company’s loan portfolio as of June 30, 2021:

	June 30, 2021				December 31, 2020
(Dollars in thousands)	Amount		Percent		Amount		Percent
Commercial real estate	$	875,453	51.4	%	$	777,776	46.7	%
Owner Occupied		305,854	—			286,992	—
Non-Owner Occupied		569,599	—			490,784	—
Residential real estate		361,946	21.3	%		380,491	22.8	%
Commercial (Non-PPP)		229,215	13.5	%		206,665	12.4	%
Commercial (PPP)		144,118	8.5	%		189,977	11.4	%
Construction and development		74,175	4.4	%		99,883	6.0	%
Consumer and other loans		14,575	0.9	%		11,688	0.7	%
Total loans	$	1,699,482	100.0	%	$	1,666,480	100.0	%
Unearned loan origination (fees) costs, net		(1,984)				(1,323)
Unearned PPP loan origination (fees) costs, net		(4,855)				(4,255)
Allowance for loan loss		(10,418)				(16,259)
Loans held for sale		(2,039)				(1,270)
Loans, net(1)	$	1,680,186			$	1,643,373

(1) Does not include loan control, loan participation control or loans in process.

During the quarter ended June 30, 2021, the Company funded 172 loans representing $17.6 million under Round 3 of the Small Business Association’s (“SBA”) Payroll Protection Program (“PPP”). As of June 30, 2021, the Company participated in all three rounds of the PPP and funded 2,287 small business loans representing approximately $340.5 million in relief proceeds, of which 1,362 loans totaling $196.9 million were forgiven by the SBA. Most of the Professional Bank PPP loans were initially pledged to the Federal Reserve as part of the Payroll Protection Program Liquidity Facility ("PPPLF"). The PPPLF pledged loans are non-recourse to the Company. However, the Company paid off all of the PPPLF advances during the first and second quarter of 2021 and the balance of PPPLF advances made by the Company was $0 as of June 30, 2021.

As a result of the COVID-19 pandemic the Company has reviewed and processed numerous debt service relief requests in accordance with Section 4013 of the CARES Act and interagency guidelines published by federal banking regulators on March 13, 2020. As currently interpreted by the agencies, the guidelines assert that short-term modifications made on good faith for reasons related to the COVID-19 pandemic to borrowers who were current prior to such relief are not considered Troubled Debt Restructurings (“TDRs”). These modifications include deferrals of principal and interest, modification to interest only, and deferrals to escrow requirements. The modifications had varying terms up to six months. As of June 30, 2021, all these loans had returned to normal payment schedules.

Non-Performing Assets

As of June 30, 2021, the Company had nonperforming assets of $2.8 million, or 0.11% of total assets, compared to nonperforming assets of $2.8 million, or 0.13% of total assets, at March 31, 2021. As of June 30, 2020, the Company had nonperforming assets of $6.2 million, or 0.30% of total assets.

Allowance for Loan and Lease Loss (“ALLL”)

The Company’s allowance for loan losses increased $0.7 million, or 7.2%, to $10.4 million compared to the prior quarter. An appropriate level of reserve was maintained as a precaution against potential economic weakening related to COVID-19 variants. The Company’s allowance for loan losses as a percentage of total gross loans plus loans held for sale (net of overdrafts and excluding Professional Bank PPP loans) was 0.67% at June 30, 2021, compared to 1.10% at December 31, 2020.  The December 31, 2020, ALLL included the reserve for Coex Coffee International, Inc., see Reconciliation of non-GAAP Financial Measures.

PROFESSIONAL HOLDING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollar amounts in thousands, except share data)

	June 30,		December 31,
	2021		2020
ASSETS
Cash and due from banks	$	29,803	$	62,305
Interest-bearing deposits		586,377		129,291
Federal funds sold		36,156		25,376
Cash and cash equivalents		652,336		216,972
Securities available for sale, at fair value - taxable		100,735		65,110
Securities available for sale, at fair value - tax exempt		19,761		22,398
Securities held to maturity (fair value June 30, 2021 – $1,296, December 31, 2020 – $1,561)		1,285		1,547
Equity securities		5,942		6,005
Loans, net of allowance of $10,418 and $16,259 as of June 30, 2021, and December 31, 2020, respectively		1,680,168		1,643,373
Loans held for sale		2,039		1,270
Federal Home Loan Bank stock, at cost		2,341		3,229
Federal Reserve Bank stock, at cost		4,954		4,762
Accrued interest receivable		5,449		6,666
Premises and equipment, net		4,000		4,370
Bank owned life insurance		37,923		37,360
Deferred tax asset		9,446		10,525
Goodwill		24,621		24,621
Core deposit intangibles		1,280		1,422
Other assets		8,738		7,640
Total assets	$	2,561,018	$	2,057,270
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Demand – non-interest bearing	$	854,673	$	475,598
Demand – interest bearing		286,173		232,367
Money market and savings		874,637		715,003
Time deposits		261,680		236,575
Total deposits		2,277,163		1,659,543
Official checks		3,289		4,447
Federal Home Loan Bank advances		35,000		40,000
Other borrowings		—		114,573
Subordinated debt		10,062		10,153
Accrued interest and other liabilities		12,476		12,989
Total liabilities		2,337,990		1,841,705
Stockholders’ equity
Preferred stock, 10,000,000 shares authorized, none issued		—		—
Class A Voting Common stock, $0.01 par value; authorized 50,000,000 shares, issued 14,289,480 and outstanding 13,475,781 shares as of June 30, 2021, and authorized 50,000,000 shares, issued 14,100,760 and outstanding 13,534,829 shares at December 31, 2020		143		141
Class B Non-Voting Common stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding at June 30, 2021, and December 31, 2020		—		—
Treasury stock, at cost		(13,544)		(9,209)
Additional paid-in capital		210,274		208,995
Retained earnings		25,872		14,756
Accumulated other comprehensive income (loss)		283		882
Total stockholders’ equity		223,028		215,565
Total liabilities and stockholders' equity	$	2,561,018	$	2,057,270

PROFESSIONAL HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

(Dollar amounts in thousands, except share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Interest income
Loans, including fees	$	18,311	$	17,897	$	37,544	$	27,912
Investment securities - taxable		161		232		340		434
Investment securities - tax exempt		189		206		392		226
Dividend income on restricted stock		99		131		194		210
Other		202		56		264		760
Total interest income		18,962		18,522		38,734		29,542
Interest expense
Deposits		1,430		1,617		2,747		4,243
Federal Home Loan Bank advances		190		287		386		565
Subordinated debt		77		59		207		189
Other borrowings		63		268		313		193
Total interest expense		1,760		2,231		3,653		5,190
Net interest income		17,202		16,291		35,081		24,352
Provision for loan losses		762		1,750		1,800		2,595
Net interest income after provision for loan losses		16,440		14,541		33,281		21,757
Non-interest income
Service charges on deposit accounts		1,199		307		1,594		529
Income from Bank owned life insurance		281		126		563		255
SBA origination fees		—		84		145		114
SWAP fees		364		210		573		473
Third party loan sales		226		157		301		267
Gain on sale and call of securities		21		11		22		15
Other		211		73		223		171
Total non-interest income		2,302		968		3,421		1,824
Non-interest expense
Salaries and employee benefits		7,099		6,912		13,883		12,175
Occupancy and equipment		905		1,081		2,007		1,855
Data processing		276		421		566		597
Marketing		165		151		318		288
Professional fees		770		806		1,398		1,161
Acquisition expenses		—		560		684		2,223
Regulatory assessments		418		300		767		514
Other		1,321		1,317		3,119		2,221
Total non-interest expense		10,954		11,548		22,742		21,034
Income before income taxes		7,788		3,961		13,960		2,547
Income tax provision		1,457		830		2,844		733
Net income		6,331		3,131		11,116		1,814
Earnings per share:
Basic	$	0.47	$	0.23	$	0.83	$	0.16
Diluted	$	0.45	$	0.22	$	0.80	$	0.15
Other comprehensive income:
Unrealized holding gain (loss) on securities available for sale		(505)		743		(794)		1,068
Tax effect		124		(188)		195		(271)
Other comprehensive gain (loss), net of tax		(381)		555		(599)		797
Comprehensive income	$	5,950	$	3,686	$	10,517	$	2,611

Explanation of Certain Unaudited Non-GAAP Financial Measures

This press release contains financial information determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”), including adjusted net income and adjusted net income per share, which we refer to “non-GAAP financial measures.” The table below provides a reconciliation between these non-GAAP measures and net income and net income per share, which are the most comparable GAAP measures.

Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these measures are useful supplemental information that can enhance investors’ understanding of the Company’s business and performance without considering taxes or provisions for loan losses and can be useful when comparing performance with other financial institutions. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures.

Reconciliation of non-GAAP Financial Measures

	Three Months Ended						Three Months Ended			Six Months Ended
	June 30,						March 31,			June 30,
(Dollar amounts in thousands, except per share data)	2021			2020			2021			2021			2020
Net interest income (GAAP)	$	17,202		$	16,291		$	17,879		$	35,081		$	24,352
Total non-interest income		2,302			968			1,119			3,421			1,824
Total non-interest expense		10,954			11,548			11,788			22,742			21,034
Pre-tax pre-provision earnings (non-GAAP)	$	8,550		$	5,711		$	7,210		$	15,760		$	5,142
Total adjustments to non-interest expense		—			(560)			(684)			(684)			(2,223)
Adjusted pre-tax pre-provision earnings (non-GAAP)	$	8,550		$	6,271		$	7,894		$	16,444		$	7,365
Return on average assets (GAAP)		0.99	%		0.38	%		0.90	%		0.95	%		0.24	%
Adjusted return on average assets (non-GAAP)
Annualized pre-tax pre-provision ROAA (non-GAAP)		1.33	%		1.19	%		1.36	%		1.35	%		0.67	%
Adjusted annualized pre-tax pre-provision ROAA (non-GAAP)		1.33	%		1.30	%		1.45	%		1.40	%		0.96	%

	June 30, 2021			December 31, 2020
Total loans (GAAP)	$	1,680,186		$	1,643,373
Add allowance for loan loss		10,418			16,259
Add unearned loan origination fees (costs), net		6,839			5,578
Add loans held for sale		2,039			1,270
Total gross loans	$	1,699,482		$	1,666,480
Less PPP loans		144,118			189,977
Total gross loans excluding Professional Bank PPP loans (non-GAAP)	$	1,555,364		$	1,476,503
Add purchase accounting loan marks		16,133			18,835
Total gross loans excluding PPP loans and loan marks (non-GAAP)	$	1,571,497		$	1,495,338
Allowance for loan loss as a % of total loans + loans held for sale (GAAP)		0.62	%		0.99	%
Allowance for loan loss as a % of total gross loans excluding Professional Bank PPP loans (non-GAAP)		0.67	%		1.10	%
Loan marks + allowance for loan loss / total gross loans excluding PPP loans and loan marks (non-GAAP)		1.69	%		2.35	%

Certain Performance Metrics

The following table shows the return on average assets (computed as annualized net income divided by average total assets), return on average equity (computed as annualized net income divided by average equity) and average equity to average assets ratios for the three months ended June 30, 2021 and 2020, the six months ended June 30, 2021, and for the year ended December 31, 2020.

	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Return on Average Assets	0.99	%	0.65	%	0.95	%	0.24	%
Return on Average Equity	11.35	%	6.13	%	10.05	%	2.31	%
Average Equity to Average Assets	8.70	%	10.61	%	9.44	%	10.24	%

Additional Materials

There is also a slide presentation with supplemental financial information relating to this release that can be accessed at https://myprobank.com/ir/.

Forward Looking Statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements preceded by, followed by or including words such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project” or “expect,” “may,” “will,” “would,” “could” or “should” and similar expressions. Forward-looking statements represent the Company’s current expectations, plans or forecasts and involve significant risks and uncertainties. Several important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, without limitation, current and future economic and market conditions, including those that could impact credit quality and the ability to generate loans and gather deposits; the duration, extent and impact of the COVID-19 pandemic, including the governments’ responses to the pandemic and the potential worsening of the pandemic resulting from variants of COVID-19, on our and our customers’ operations, personnel, and business activity (including developments and volatility), as well as COVID-19’s impact on the credit quality of our loan portfolio and financial markets and general economic conditions; the effects of our lack of a diversified loan portfolio and concentration in the South Florida market; the impact of current and future interest rates and expectations concerning the actual timing and amount of interest rate movements; competition; our ability to execute business plans; geopolitical developments; legislative and regulatory developments; inflation or deflation; market fluctuations; natural disasters (including pandemics such as COVID-19); critical accounting estimates; and other factors described in our Form 10-K for the year ended December 31, 2020, Form 10-Q for the quarter ended March 31, 2021, and other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any of the forward-looking statements included herein to reflect future events or developments or changes in expectations, except as may be required by law.

About Professional Bank and Professional Holding Corp.:

Professional Holding Corp. (NASDAQ:PFHD) is the financial holding company for Professional Bank, a Florida state-chartered bank established in 2008 and based in Coral Gables, Florida. Professional Bank focuses on providing creative, relationship-driven commercial banking products and services designed to meet the needs of small to medium-sized businesses, the owners and operators of these businesses, professionals and entrepreneurs. Professional Bank currently operates its Florida network through nine branch locations and two loan production offices in the regional areas of Miami, Broward, Palm Beach, Duval (Jacksonville), Hillsborough and Pinellas (Tampa Bay) counties. It also has a Digital Innovation Center located in Cleveland, Ohio and a loan production office in New England. For more information, visit www.myprobank.com. Member FDIC. Equal Housing Lender.

EX-99.2

Exhibit 99.2

EARNINGS PRESENTATION SECOND QUARTER 2021 NASDAQ:PFHD FOURTH QUARTER 2020 EARNINGS PRESENTATION PAGE

FORWARD LOOKING STATEMENTS 8 This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that are not statements of historical fact may be deemed to looking statements, including, without limitation, statements preceded by, followed by or including words such as “intend,” “believe,”“estimate,” “plan,” “seek,”“project” or“expect,”“may,”“will,”“would,” “could” or “should” expressions.Forward-looking statements representthe Company’s current expectations, plans or forecasts significant risks and uncertainties. Several important factors could cause actual results to differ materially f rom be forward-“anticipate,” and similar and involve those in the forward-looking statements. Those factors include, without limitation, current and future economic and market conditions, including those that could impact credit quality and the ability to generate loans and gather deposits; the duration, extent and impact of the COVID-19 pandemic, including the governments’ responses to the pandemic and the potential worsening of the pandemic resulting f rom variants of COVID-19, on our and our customers’ operations, personnel, and business activity (including developments and volatility), as well as COVID-19’s impact on the credit quality of our loan portfolio and financial markets and general economic conditions; the effects of our lack of a diversified loan portfolio and concentration in the South Florida market; the impact of current and movements; competition; developments; inflation or accounting estimates; and future interest rates and expectations concerning the actual timing and amount of interest rate our abilityto executebusiness plans;geopoliticaldevelopments; deflation; market fluctuations; natural disasters (including pandemics other factors described in our Form 10-K for the year ended December legislativeand regulatory such as COVID-19); critical 31, 2020, Form 10-Q for the quarter ended March 31, 2021, and other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any of the forward-looking statements included herein to reflect future events or developments or changes in expectations, except as may be required by law. NOTES: - SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 2

A GROWING FRANCHISE IN SOUTH FLORIDA NEW JACKSONVILLE LPO � Professional Bank founded in 2008 in Coral Gables, FL NEW ENGLAND LPO � Expanded f rom one location in South Miami eleven locations throughout South Florida, one in New England and one in Cleveland to CLEVELAND DIGITAL INNOVATION CENTER � 11th largest independent community bank in Florida* � Successfully recruited seasoned bankers and banking teams f rom local, regional and national financial institutions growth NEW TAMPA LPO We’ve added two new Loan Production Offices across the state of Florida � Senior management has significant and long term expertise in the Florida real estate market PALM BEACH GARDENS � Lending and credit philosophy centers on maintaining a low basis in collateral and avoiding concentrations WELLINGTON 't BOCA RATON 5th FORT LAUDERDALE � Technology team of experienced leaders supporting the bank’s investment in inf rastructure, enhancing service offerings, and improving operational eff iciency AVENTURA CORAL GABLES (HEADQUARTERS) largest bank headquartered South Florida DORAL in SOUTH MIAMI DADELAND * Does not include Investment Banks, Savings and Loan Associations or non-US parent banks SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 3

� SECOND QUARTER 2021 HIGHLIGHTS Q2 Net Income Return on Average Assets* 0.99% $6.3 million YTD Net Income Return on Average Equity* 11.3% $11.1 million Tangible Book Value per Share $14.63 Efficiency Ratio 56.2% Earnings per Share $0.47 Total Risk-Based Capital Ratio 14.1% * Based on Q2 annualized figures NOTES: - I’ve moved this up in the presentation because it seems like an ‘executive summary’ slide… but let me know where you want me to put it. SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 4

EARNINGS AND ADJUSTED ($ in thousands) EARNINGS $8,701 $8,550 Adjustments to Non-Earnings per share increased $0.11, or 30.6% quarter-over-quarter and increased $0.24, or 104.3% year-over-year. erest Expense ($0) -tax Pre-vision Earnings Actual Earnings Reported Tangible book value per share for the second quarter of 2021 is $14.63. $0 Please refer to the non-GAAP Reconciliation Table on page 17 NOTES: SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 5 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 $0.23 $0.07 $0.41 $0.36 $0.47 Earnings per share (GAAP) 0.65% 0.18% 1.08% 0.90% 0.99% Return on average annualized assets (GAAP) 1.19% 1.30% 1.69% 1.36% 1.33% Annualized pre-tax pre-provision ROAA (non-GAAP) 1.30% 1.51% 1.69% 1.49% 1.33% Adjusted annualized pre-tax pre-provision ROAA (non-GAAP) $7,788 $7,894 int Pre pro $684 $6,271 $1,078 $6,710 $560 $8,550 $6,331 $8,674 $5,541 $7,210 $4,785 $5,711 $3,131 $950

NET INTEREST INCOME AND MARGIN Net Interest ($ in thousands) Income $17,460 $18,241 0 Net interest income totaled $17.2 million for the second quarter of 2021, down $0.7 million, or 3.8% f rom the prior quarter primarily due to higher yielding loan payoffs and a decrease in loan fees associated with PPP loan forgiveness. $17,879 $17,202 $16,291 Net Interest Income 0 Net interest margin decreased 83 basis points quarter-over-quarter to 2.82% for the second quarter of 2021 due to an increase in low yielding cash assets and loan payoffs on higher yielding assets. NIM NIM (ex. PPP, and inc. PA) NIM (ex. PPP and PA) 0 Weighted average roll-off rate (loans paid off) was 4.72% and the weighted average roll-on rate (loans originated) was 3.85%. 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 NIM = Net Interest Margin PPP = Paycheck Protection Program PA = Purchase Accounting NOTES: - SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 6 3.72% 3.60% 3.19% 2.82% 2.73% 2.50% 3.68% 3.53% 3.01% 3.65% 3.36% 3.04% 3.73% 3.70% 3.06%

CONSISTENT LOAN GROWTH Total Loans ($ in millions) Outstanding $1,739 $1,699 $1,667 $1,611 $1,577 PPP Loans Second quarter loans totaled $1.7 billion, a decrease of $39.1 million, or 2.2% f rom the prior quarter due to a reduction in PPP loans. Loan growth, net of PPP loans, was up $27.6 million, or 1.8% quarter-over-quarter. $1,351 Marquis Acquisition $793 $608 * We experienced strong originations across all loan types due to new loan originations of $186.8 million ($169.2 million of conventional loans, of which $118.0 million funded, coupled with $17.6 million of PPP loans) partially offset by payoffs of $162.2 million ($77.9 million of conventional loans and $84.3 million of PPP loans forgiven). Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 54.4% 53.8% 52.9% 52.6% 52.4% 52.4% 51.7% 51.6% Weighted Average LTV Does not include PPP loans NOTES: - - New Data Request from RANDY: Prepaid/matured loans WA rates In the top box, is $1.7 billion correct? I think that’s the same as last quarter… SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 7 $224 $1,353 $226 $1,385 $190 $1,477 $144 $1,555 $211 $1,528

STRONG DEPOSIT FRANCHISE Deposits Outstanding ($ in millions) Total deposits were $2.28 billion, an increase of $371.5 million, or 19.5%, compared to Q1 2021 and an increase of $760.7 million, or 50.2%, $2,277 Overall cost for deposits $1,906 decreased 6 basis points f rom 0.31% in the prior quarter to 0.25% in the second quarter of 2021. Non-interest Bearing 38% $1,660 $1,567 $1,516 compared to Q2 2020. Time Deposits 11% � Transaction accounts increased 75.4% f rom Q2 2020 to Q2 2021, reflecting continued growth in core customer balances, and � Core deposits represent 92.3% of total deposits. Money Market and Savings 38% represents 52% of overall funding. deposit Interest Bearing Demand 13% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 NOTES: - SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 8 $495 $258 $593 $170 $490 $237 $628 $212 $476 $237 $715 $232 $589 $249 $798 $270 $855 $262 $874 $286

DEPOSIT BALANCES AND COST Deposit Composition Over Time - Our bank’s funding strategy focuses on building strong core relationships with our clients and providing them with a Non-Interest Bearing robust technological platform support a well-diversified deposit portfolio. to Brokered Deposits* Time Deposit Cost of Deposits Money Market and Savings 0.44% 0.33% 0.31% 0.30% 0.25% Interest Bearing Demand 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 As of the period end date for each quarter indicated NOTES: * Brokered deposits include both time and money market accounts. - - May want to highlight excess cash in the paragraph on the right Previous paSgeEshCowOs 3N8% Dfor NQIB…UneAedRtoTreEconRcile2an0d 2cor1reEct oAneRofNtheIpNagGes S PRESENTATION PAGE 9 38% 11% 36% 13% 33% 17% 37% 11% 31% 13% 40% 14% 31% 15% 38% 14% 29% 14% 41% 14%

ROBUST ASSET ($ in thousands) QUALITY Criticized Assets Nonperforming Loans $542 $547 $558 $453 Non-Classified Total NPL $2,775 $2,775 Classified Total NPL Ratio* 0.16% 0.16% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 * NPL percent of Gross Loans Net Charge-Offs $7,641 NCO 8 Credit quality remains strong with minimal criticized assets and nonperforming loans, coupled with zero charge-offs for Q2 2021. $120 $99 $28 $0 2Q 2021 2Q 2020 3Q 2020 4Q 2020 1Q 2021* % of Total Loans <1 bp <1 bp <1 bp 44 bps 0 bps * The charge off of $7.6 million in 1Q 2021 is related to the Coex Coffee loan and is the amount previously impaired and specifically reserved in the third quarter of 2020. NOTES: - Per Mary: Need something for this text… maybe strong credit quality with zero charge-offs in Q2 2021? SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 10 $5,101 $5,101 $6,172 0.39% $12,273 $12,791 $9,917 0.62% $10,434 0.63% $10,906 $15,590

ALLOWANCE FOR LOAN ($ in thousands) AND LEASE LOSS ALLL + Loan Marks / Total Loans $35,094 $30,664 $26,739 $26,690 $26,551 ALLL / Total Loans ALLL + Loan Marks $16,259 $15,035 $10,418 $9,656 $9,045 ALLL Ratio* ALLL ALLL Ratio* 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 * Does not include PPP Loans * Does not include PPP Loans Marquis Bank Loans are included NOTES: - SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 11 0.67% 0.63% 0.67% 1.09% 1.10% 1.69% 1.73% 1.95% 2.24% 2.35%

LOAN PORTFOLIO HIGHLIGHTS Loan Composition Consumer & Other Loans (1%) 100% Geographic ($ in millions) Mix Construction & Development (4%) Commercial (13%) Broward County 90% .5 80% Residential Real Estate (21%) Palm Beach County $290.9 17% 70% Miami-Dade County $992.6 58% 60% All other FL counties $63.1 4% 50% CRE - Non-owner Occupied (35%) 40% Rest of U.S. 30% $150.4 9% CRE - Owner Occupied (18%) 20% Geographical mix based on collateral location 10% PPP Loans (8%) 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 NOTES: - SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 12 $202 12%

INTEREST RATE SENSITIVITY Impact on NII from Interest Rate Change ($ in millions) $86 $81 The Company remains asset sensitive driven by large cash balances, floating rate loans, and $75 $69 $63 $63 $61 $60 $58 loans maturing in less than a year. -400 bps -300 bps -200 bps -100 bps BASE +100 bps +200 bps +300 bps +400 bps Change from base 36.5% 27.5% 18.4% 9.2% 0.0% As of June 30, 2021 -0.7% -3.4% -5.9% -7.8% NOTES: - Pending from 3rd party - ALCO SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 13

ASSET LIABILITY MANAGEMENT TRENDS Yield/Cost Analysis 4.77% 4.55% 4.2% 4.34% 4.02% 3.11% Yield on Interest-Earning Assets 1.80% 1.30% 0.92% 0.55% 0.30% Cost of Funds 2017 2018 2019 2020 2Q 2021 t) � • • 78% of time deposits mature 10.9% of loans are floating rate ($186 million) within a year.Total time An additional 15.3% of loans are floating to the Bank via interest ($260 million). rate SWAP deposits are $261.7 of total deposits). million (11% • The remaining loans are currently fixed rate ($1.3 billion) which in some cases adjust and reprice periodically. NOTES: - SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 14 +400 bps 36.5% 44.4% +300 bps 27.5% 33.5% 4.0% +200 bps 18.4% 22.4% 3.2% +100 bps 9.2% 11.4% 1.8% Flat - - - - - - -100 bps -0.7% -5.4% -1.6% -200 bps -3.4% -9.1% -0.3% -300 bps -5.9% -12.6% -0.4% -400 bps -7.8% -15.3% -0.4% Change in Interest Rates (Basis Points) % Change in Net Interest Income (12 months) % Change in Net Interest Income (24 months) % Change in Economic Value of Equity

INVESTMENT PORTFOLIO Portfolio Mix ($ in thousands) Duration 4.0 Portfolio Mix for Previous Quarters 70 3.0 20 3.02 2.93 2.87 3% 2.0 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 060 $86,837 8 The increase in duration during Q2 was primarily due to the purchase of several MBS and SBA investment securities with slightly higher durations (all under 5 years). Portfolio Mix for the tal Portfolio by Quarter $127,723 3.0% Book Yield 107,843 2.5% 1% $99,651 $95,060 2.0% 2.17% $86,837 2.0 1.96% 1.79% 5% 1.5% 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Agency SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 15 Percent Years 2% 1.7 31% 1% 6% 1Q 2021 22% 1% 32% 3% 34% 1% 21% 2Q 2020 1% 8% 31%3% 1% 34% 1% 23% 1%3Q 2020 1% 5% 32% 3% 31% 1% 6% 4Q 2020 22% 1% 3% 32% 3% $107,843 $99,651 $95, MBS/CMO 43% Current Quarter To Equity Securities 5%Municipals$ 2Q 2021 CDD Bonds 15% Foreign Bonds SBA 1% 33% $127,723 2% Corporate 1% 3. 3.

PAYCHECK PROTECTION PROGRAM AS OF JUNE 30, 2021 2,287 $340,508,987 in small business loans given through all rounds of the Paycheck Protection Program 782 Loan applications for Round 3 closed (totaling $114.3 million with an average loan size of $146,110) in the second quarter. 949 overall applications were submitted (totaling $132.6 million) to Professional Bank for Round 3 funding. small business loans completed 90.5% of our PPP loans are under $350,000 ., � 1,362 Loans from Rounds 1, 2 & 3 forgiven (a total of $196.9 million) Median Mean (Average) $46,280 $148,762 Smallest Loan Largest Loan $900 $10,000,000 1,185 Loans below $50k 574 Loans between $50k and $150k 528 Loans above $150k SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 16 NOTES: - Is “June 30” the right ‘as of’ date? 52% 25% 23%

SPOTLIGHT:GROWTH LOCATIONS Miami MSA includes Broward and Palm Beach counties Tampa MSA includes Pinellas and Hillsborough counties Jacksonville MSA includes surrounding areas 6,166,000 Population Largest MSA in Florida, 7th largest in the US 3,195,000 Population 2nd largest MSA in Florida, 18th largest in the US 1,560,000 Population 4th largest MSA in Florida, 40th largest in the US $59,100 Average Household Income (City of Miami only) 20th highest in Florida $69,200 Average Household Income 10th highest in Florida $74,800 Average Household Income 5th highest in Florida $276,774,000,000 Total Deposits Largest deposit base in Florida, 13th largest in the US $101,248,000,000 Total Deposits 2nd largest deposit base in Florida, 27th largest in the US $94,188,000,000 Total Deposits 3rd largest deposit base in Florida, 31st largest in the US Sources: Population - census.gov as of 7/2019 Avg HH Income - ffeic.gov as of 2020 Deposits - fdic.gov as of 6/2020 SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 17 NOTES: - Maybe talk about new LPOs? I’ve put placeholder content here, but we can change it or remove it

APPENDIX: NON-GAAP RECONCILIATION ($ in thousands, except per share data) NOTES: - Do we still need this? Leaving it here for now. SECOND QUARTER 2021 EARNINGS PRESENTATION PAGE 18 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net interest income (GAAP) $16,291 $17,460 $18,241 $17,879 $17,202 Total non-interest income (GAAP) $968 $963 $1,519 $1,119 $2,302 Total non-interest expense (GAAP) $11,548 $11,713 $11,086 $11,788 $10,954 Pre-tax pre-provision earnings (non-GAAP)$5,711 $6,710 $8,674 $7,210 $8,550 Total adjustments to non-interest Expense($560) ($1,078) ($27) ($684) - Adjusted pre-tax pre-provision earnings (non-GAAP)$6,271 $7,788 $8,701 $7,894 $8,550 Return on average annualized assets (GAAP) 0.65% 0.18% 1.08% 0.90% 0.99% Adjusted return on average assets (non-GAAP) Annualized pre-tax pre-provision ROAA (non-GAAP) 1.19% Adjusted annualized pre-tax pre-provision ROAA (non-GAAP) 1.30% 1.30% 1.51% 1.69% 1.69% 1.36% 1.49% 1.33% 1.33%