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: January 27, 2022

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 Coral Gables, Florida,		33134
(Address of principal executive offices)		(Zip Code)

(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 x

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 January 27, 2022, Professional Holding Corp. (the “Company”), the parent company of Professional Bank, issued a press release containing information on earnings results for the quarter ended December 31, 2021. A copy of the press release is furnished with this report as Exhibit 99.1 and incorporated herein by reference.

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 December 31, 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 January 27, 2022, with respect to Professional Holding Corp.’s earnings results for the quarter ended December 31, 2021
99.2	Slide presentation containing supplemental information regarding earnings results for the quarter ended December 31, 2021
104	Cover Page Interactive Data File (embedded within the Inline XBRL Document).

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: January 27, 2022	By:	/s/ Michael C. Sontag
		Michael C. Sontag
		Corporate Secretary

EX-99.1

Exhibit 99.1

Professional Holding Corp. Reports Fourth-Quarter and Annual 2021 Results

Quarterly Net Income of $4.0 million Leads to Net Income of $21.4 million for the Year Ended December 31, 2021.

Coral Gables, FL., January 27, 2022 – Professional Holding Corp. (the “Company”) (NASDAQ:PFHD), the parent company of Professional Bank (the “Bank”), today reported net income of $4.0 million, or $0.30 per share, for the fourth quarter of 2021 compared to net income of $6.3 million, or $0.48 per share, for the third quarter of 2021, and net income of $5.5 million, or $0.41, for the fourth quarter of 2020. For the year ended December 31, 2021, net income totaled $21.4 million, or $1.61 per share, compared to net income of $8.3 million, or $0.69 per share for the year ended December 31, 2020.

Daniel R. Sheehan, Chairman and CEO of Professional Holding Corp., said: "Our loan portfolio continues to expand nicely, largely due to our increasing gross loan production. I am particularly proud of our bankers who delivered outsized origination volume in 2021, and look forward to continuing that momentum into 2022 across our new and existing markets.”

Results of Operations for the Three Months Ended December 31, 2021

•Net income decreased $2.3 million, or 37.0%, to $4.0 million compared to the prior quarter. The decrease was comprised of lower net interest income of $1.0 million, a decrease in noninterest income of $0.2 million, an increase in noninterest expense of $1.3 million, and a higher provision expense of $0.8 million.

•Net interest income decreased $1.0 million, or 5.1%, to $18.1 million compared to the prior quarter primarily due to a decrease in loan yield in our commercial real estate loan portfolio. The loan yield decrease was due to prior quarter’s acceleration of the Bank’s Payroll Protection Program (“Professional Bank PPP”) loan fees and acceleration of purchase accounting loan marks from the Marquis Bancorp, Inc. (“MBI”) acquisition. The Company remains asset sensitive and net interest income is expected to increase in a rising interest rate environment. Net interest income, excluding Professional Bank PPP income and purchase accounting marks from the MBI acquisition, increased $0.4 million, or 2.9%, to $15.4 million, compared to the prior quarter, see Reconciliation of non-GAAP Financial Measures.

•Provision expense increased $0.8 million, or 77.4%, to $1.9 million compared to the prior quarter primarily due to loan growth during the quarter, and, to a lesser extent, a specific reserve on a non-performing impaired loan.

•Noninterest income decreased $0.2 million, or 12.6%, to $1.3 million compared to the prior quarter primarily due to a decrease in service charges associated with deposit correspondent fees from service charges on deposit accounts associated with acting as a correspondent bank for a Payroll Protection Program lender (the “Correspondent Banking Relationship”) Correspondent Banking Relationship, lower SWAP fee income due to a lower volume of SWAP transactions, and a decrease in fees generated from loans held for sale, partially offset by higher Small Business Administration (“SBA”) loan origination fees.

•Noninterest expense increased $1.3 million, or 11.0%, to $12.9 million compared to the prior quarter primarily due to increases in salary and benefits of $0.7 million to support scalable growth, $0.5 million loss attributable to a wire erroneously sent by the Bank in reliance on instructions that appear to have originated from a client's compromised computer system, and an increase of $0.2 million in the provision for unfunded off-balance sheet items, partially offset by a $0.3 million charitable contribution expense in prior quarter.

Results of Operations for the Year Ended December 31, 2021

•The variance in the Results of Operations for 2021 compared to 2020 occurred in part due to the March 26, 2020, closing date of the MBI acquisition as there were 281 days of MBI integration in 2020 compared to a full year in 2021 (the “MBI Variance”).

•Net income increased $13.1 million, or 157.2%, to $21.4 million compared to the prior year. The increase was primarily due to an increase in net interest income resulting from the MBI Variance, the acceleration of Professional Bank PPP loan fees, deposit fees associated with the Correspondent Banking Relationship, as well as lower provision for loan losses primarily due to the macro environment stabilization following the increased reserves at the early stages

of COVID-19 pandemic in 2020 and having addressed the impairment of a previously disclosed loan in the third quarter of 2020.

•Net interest income increased $12.3 million, or 20.4%, to $72.3 million compared to the prior year primarily due to loan growth and an increase in forgiveness of Professional Bank PPP loans resulting in a higher amount of loan fees recognized in addition to a reduction in interest expense on deposit accounts. Net interest income, excluding Professional Bank PPP income and purchase accounting marks from the MBI acquisition increased $9.0 million, or 18.4%, to $58.0 million, compared to the prior year, see Reconciliation of non-GAAP Financial Measures.

•Noninterest income increased $1.9 million, or 43.7%, to $6.2 million, compared to the prior year primarily due to an increase of $0.9 million in service charges associated with the Correspondent Banking Relationship, $0.6 million in service charges on other deposit accounts, a $0.6 million increase in Bank Owned Life Insurance income, and a $0.1 million increase in SBA loan origination fees, partially offset by a $0.3 million decrease in fees generated from loans held for sale, and a $0.1 million decrease in SWAP fee income.

•Noninterest expense increased $3.6 million, or 8.4%, to $47.3 million compared to the prior year. The year-over-year increase was due to increased salaries and employee benefits resulting from our opening of LPOs in Tampa Bay and Jacksonville, investments in digital infrastructure, and higher regulatory and professional fees related to accounting and regulatory compliance, partially offset by prior year MBI acquisition expenses. The Bank’s number of employees increased from 182 as of December 31, 2020, to 208 as of December 31, 2021.

Financial Condition:

On December 31, 2021:

•Total assets remained relatively unchanged at $2.7 billion compared to the prior quarter. Total assets increased 29.5%, or $0.6 billion, compared to December 31, 2020, primarily as a result of increases in cash and cash equivalents, net loans, and taxable securities available-for-sale.

•Total loans increased $89.9 million, or 5.3%, to $1.8 billion compared to the prior quarter. The increase was driven by loan originations of approximately $304.3 million, of which $226.6 million funded, partially offset by loan paydowns and prepayments. The Professional Bank PPP loan balance decreased $26.5 million, or 31.1%, to $58.6 million from the prior quarter.

•Total deposits remained relatively unchanged at $2.4 billion compared to the prior quarter. An increase in money market deposit accounts were mostly offset by a decrease in noninterest bearing demand deposit accounts due to SBA loan forgiveness payments related to the Correspondent Banking Relationship.

•Nonperforming assets decreased $0.7 million to $2.1 million compared to the prior quarter due to a charge-off of a previously disclosed impaired loan. As of December 31, 2020, the Company had nonperforming assets of $10.4 million. There were no charge-offs during the three months ended December 31, 2020.

Capital

The Company continues to remain well capitalized per regulatory requirements. As of December 31, 2021, the Company had a total risk-based capital ratio of 12.7% and a leverage capital ratio of 7.7%.

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. Effective May 6, 2021, the Company’s Board of Directors authorized an increase in the amount available under its existing stock repurchase program such that $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 December 31, 2021, the Company repurchased 40,052 shares of Class A Common Stock, at an average price of $18.90 per share. As of December 31, 2021, year to date, the Company repurchased 381,419 shares of Class A Common Stock, at an average price of 17.81 per share. Under the stock repurchase program $4.1 million remained available as of December 31, 2021.

Liquidity

The Company maintains a strong liquidity position. On December 31, 2021, in addition to its balance sheet liquidity, the Company had the ability to generate approximately $449.9 million in liquidity through available resources. Additionally, the Company retained $5.8 million in cash at the holding company. During the fourth quarter of 2021, the Company redeemed in full, the amount of its subordinated notes payable of $10.0 million, in accordance with its contractual terms. On December 31, 2021, the Company had $10.0 million of outstanding borrowings at Valley National Bank, N.A. (“Valley”). As previously disclosed, during the first quarter of 2022, the Company completed both a private placement transaction, pursuant to which the Company issued and sold a subordinated note due 2032 in the principal amount of $25.0 million, and increased the availability under its revolving line of credit at Valley from $10.0 million to $25.0 million.

Net Interest Income and Net Interest Margin Analysis

Net interest income was $18.1 million for the three months ended December 31, 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 December 31, 2021, the Company’s cost of funds was 0.30%.

(Dollars in thousands)	For the Three Months Ended December 31,
	2021						2020
	Average Outstanding Balance		Interest Income/ Expense (4)		Average Yield/Rate		Average Outstanding Balance		Interest Income/ Expense (4)		Average Yield/Rate
Assets
Interest earning assets
Interest-bearing deposits	$	700,741	$	263	0.15	%	$	177,707	$	46	0.10	%
Federal funds sold	21,969		13		0.23	%	60,070		29		0.19	%
Federal Reserve Bank stock, FHLB stock and other corporate stock	7,760		106		5.42	%	8,079		101		4.96	%
Investment securities - taxable	129,602		290		0.89	%	75,094		172		0.91	%
Investment securities - tax exempt	18,694		166		3.52	%	22,468		212		3.74	%
Loans (1)	1,705,563		19,159		4.46	%	1,600,163		19,896		4.93	%
Total interest earning assets	2,584,329		19,997		3.07	%	1,943,581		20,456		4.18	%
Loans held for sale	802						—
Noninterest earning assets	136,892						109,178
Total assets	$	2,722,023					$	2,052,759
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits	1,619,355		1,634		0.40	%	1,147,211		1,369		0.47	%
Borrowed funds	39,796		240		2.39	%	201,202		846		1.67	%
Total interest-bearing liabilities	1,659,151		1,874		0.45	%	1,348,413		2,215		0.65	%
Noninterest-bearing liabilities
Noninterest-bearing deposits	814,767						480,372
Other noninterest-bearing liabilities	18,514						18,962
Shareholders’ equity	229,591						207,677
Total liabilities and shareholders’ equity	$	2,722,023					$	2,055,424
Net interest spread (2)					2.62	%					3.52	%
Net interest income			$	18,123					$	18,241
Net interest margin (3)					2.78	%					3.73	%

_________________________________________

(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 $1.7 million and $2.0 million for the three months ended December 31, 2021, and 2020, respectively.

Provision for Loan Losses

The Company’s provision for loan losses amounted to $1.9 million for the quarter ended December 31, 2021, an increase of $0.8 million compared to the prior quarter. The increase in the provision expense was due to loan growth during the quarter, and to a lesser extent, a specific reserve on a non-performing impaired loan.

Investment Securities

The Company’s investment portfolio increased $80.5 million, or 66.8%, to $201.2 million compared to the prior quarter. The increase was due to purchases of approximately $91.0 million in high quality MBS/CMO, SBA, and CDD bonds in our available for sale portfolio, partially offset by $6.2 million in MBS and SBA principal paydowns, in addition to $2.6 million in investment calls during the quarter. 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). Equity securities include $0.8 million of investments, made through our subsidiary Pro Opp Fund LLC, in businesses directly and indirectly related to the Company’s core business as permitted under the U.S. Bank Holding Company Act. Additionally, Pro Opp Fund LLC has an additional $0.9 million of unfunded investments outstanding.

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 December 31, 2021:

(Dollars in thousands)	December 31, 2021			December 31, 2020 (1)
	Amount		Percent	Amount		Percent
Loans held for investment:
Commercial real estate	$	902,654	50.8%	$	777,025	46.9%
Residential real estate	377,511		21.3%	379,534		22.9%
Commercial (Non-PPP)	325,415		18.3%	206,095		12.4%
Commercial (PPP)	58,615		3.3%	185,748		11.2%
Construction and land development	91,520		5.1%	99,590		6.0%
Consumer and other	21,449		1.2%	9,689		0.6%
Total loans held for investment, gross	1,777,164		100.0%	1,657,681		100.0%
Allowance for loan losses	(12,704)			(16,259)
Loans held for investment, net	$	1,764,460		$	1,641,422
Loans held for sale:
Loans held for sale	$	165	100.0%	$	1,270	100.0%
Total loans held for sale	$	165		$	1,270

___________________________________________

(1)Certain prior period amounts have been reclassified to conform to the current period presentation.

As of December 31, 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 1,931 loans totaling $280.6 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 on December 31, 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 December 31, 2021, all of these loans had returned to normal payment schedules.

Non-Performing Assets

As of December 31, 2021, the Company had nonperforming assets of $2.1 million, or 0.08% of total assets, compared to nonperforming assets of $2.8 million, or 0.10% of total assets, on September 30, 2021. As of December 31, 2020, the Company had nonperforming assets of $10.4 million, or 0.51% of total assets.

Allowance for Loan and Lease Loss (“ALLL”)

The Company’s allowance for loan losses increased $1.2 million, or 10.7%, to $12.7 million compared to the prior quarter due to growth in our loan portfolio, partially offset by a partial charge-off of a previously impaired loan. The Company’s allowance for loan losses as a percentage of total loans held for investment (excluding Professional Bank PPP loans) was 0.74% on December 31, 2021, compared to 1.10% on December 31, 2020. The December 31, 2020, ALLL included the reserve for a previously disclosed impaired loan, see Reconciliation of non-GAAP Financial Measures.

PROFESSIONAL HOLDING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollar amounts in thousands, except share data)

	December 31, 2021		December 31, 2020
ASSETS
Cash and due from banks	$	38,469	$	62,305
Interest-bearing deposits	545,521		129,291
Federal funds sold	13,477		25,376
Cash and cash equivalents	597,467		216,972
Securities available for sale, at fair value - taxable	175,536		65,110
Securities available for sale, at fair value - tax exempt	18,765		22,398
Securities held to maturity (fair value December 31, 2021 – $242, December 31, 2020 – $1,561)	236		1,547
Equity securities	6,638		6,005
Loans, net of allowance of $12,704 and $16,259 as of December 31, 2021, and December 31, 2020, respectively	1,764,460		1,641,422
Loans held for sale	165		1,270
Federal Home Loan Bank stock, at cost	2,341		3,229
Federal Reserve Bank stock, at cost	5,426		4,762
Accrued interest receivable	5,272		6,666
Premises and equipment, net	3,871		4,370
Bank owned life insurance	38,485		37,360
Deferred tax asset	9,510		10,525
Goodwill	24,621		24,621
Core deposit intangibles	1,145		1,422
Other assets	10,173		9,591
Total assets	$	2,664,111	$	2,057,270
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Demand – non-interest bearing	$	674,003	$	475,598
Demand – interest bearing	310,362		232,367
Money market and savings	1,121,330		715,003
Time deposits	265,693		236,575
Total deposits	2,371,388		1,659,543
Federal Home Loan Bank advances	35,000		40,000
Official Checks	4,125		4,447
Other borrowings	10,000		114,573
Subordinated debt	—		10,153
Accrued interest and other liabilities	12,074		12,989
Total liabilities	2,432,587		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 14,393,750 and outstanding 13,446,400 shares as of December 31, 2021, and authorized 50,000,000 shares, issued 14,100,760 and outstanding 13,534,829 shares on December 31, 2020	144		141
Class B Non-Voting Common stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding on December 31, 2021, and December 31, 2020	—		—
Treasury stock, at cost	(16,003)		(9,209)
Additional paid-in capital	212,012		208,995
Retained earnings	36,120		14,756
Accumulated other comprehensive income (loss)	(749)		882
Total stockholders’ equity	231,524		215,565
Total liabilities and stockholders' equity	$	2,664,111	$	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 December 31,				Year Ended December 31,
	2021		2020		2021		2020
Interest income
Loans, including fees	$	19,159	$	19,896	$	76,912	$	66,296
Investment securities - taxable	290		172		816		835
Investment securities - tax exempt	166		212		735		642
Dividend income on restricted stock	107		101		397		414
Other	275		75		761		912
Total interest income	19,997		20,456		79,621		69,099
Interest expense
Deposits	1,634		1,369		5,857		6,777
Federal Home Loan Bank advances	183		202		751		964
Subordinated debt	43		—		378		—
Other borrowings	14		644		327		1,305
Total interest expense	1,874		2,215		7,313		9,046
Net interest income	18,123		18,241		72,308		60,053
Provision for loan losses	1,880		1,252		4,740		10,017
Net interest income after provision for loan losses	16,243		16,989		67,568		50,036
Non-interest income
Service charges on deposit accounts	504		348		2,741		1,196
Income from Bank owned life insurance	281		124		1,125		502
SBA origination fees	94		—		260		114
SWAP fee income	128		404		909		1,026
Loans held for sale income	89		289		551		808
Gain on sale and call of securities	16		21		39		37
Other	178		333		562		623
Total non-interest income	1,290		1,519		6,187		4,306
Non-interest expense
Salaries and employee benefits	8,044		6,971		29,277		25,579
Occupancy and equipment	987		1,241		3,929		4,292
Data processing	313		305		1,182		1,276
Marketing	(103)		(178)		635		545
Professional fees	743		650		2,830		2,373
Acquisition expenses	—		27		684		3,328
Regulatory assessments	433		348		1,681		1,112
Other	2,483		1,722		7,048		5,115
Total non-interest expense	12,900		11,086		47,266		43,620
Income before income taxes	4,633		7,422		26,489		10,722
Income tax provision	673		1,881		5,125		2,417
Net income	3,960		5,541		21,364		8,305
Earnings per share:
Basic	$	0.30	$	0.41	$	1.61	$	0.69
Diluted	$	0.29	$	0.40	$	1.54	$	0.67
Other comprehensive income:
Unrealized holding gain (loss) on securities available for sale	(1,080)		40		(2,161)		1,265
Tax effect	265		(10)		530		(310)
Other comprehensive gain (loss), net of tax	(815)		30		(1631)		955
Comprehensive income	$	3,145	$	5,571	$	19,733	$	9,260

PROFESSIONAL HOLDING CORP.

EARNINGS PER COMMON SHARE (Unaudited)

(Dollar amounts in thousands, except share data)

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding plus the effect of employee stock options during the year.

	Three Months Ended December 31,				Year Ended	Year Ended December 31,
	2021		2020			2021		2020
Basic earnings per share:
Net income	$	3,960	$	5,541		$	21,364	$	8,305
Total weighted average common stock outstanding	13,202,477		13,373,516			13,308,682		12,042,477
Net income per share	$	0.30	$	0.41		$	1.61	$	0.69
Diluted earnings per share:
Net income	$	3,960	$	5,541		$	21,364	$	8,305
Total weighted average common stock outstanding	13,202,477		13,373,516			13,308,682		12,042,477
Add: dilutive effect of employee restricted stock and options	666,908		330,801			592,168		390,040
Total weighted average diluted stock outstanding	13,869,385		13,704,317			13,900,850		12,432,517
Net income per share	$	0.29	$	0.40		$	1.54	$	0.67
Anti-dilutive stock options and restricted stock	4,380		604,393			285,487		442,838

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”), 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

(Dollar amounts in thousands)	Three Months Ended
	December 31, 2021			September 30, 2021			December 31, 2020
Adjusted earnings return on average assets
Net interest income (GAAP)	$	18,123		$	19,104		$	18,241
Total non-interest income	1,290			1,476			1,519
Total non-interest expense	12,900			11,624			11,086
Pre-tax pre-provision earnings (non-GAAP)	$	6,513		$	8,956		$	8,674
Total adjustments to non-interest expense	—			—			(27)
Adjusted pre-tax pre-provision earnings (non-GAAP)	$	6,513		$	8,956		$	8,701
Return on average assets (GAAP)	0.58		%	0.97		%	1.07		%
Annualized pre-tax pre-provision ROAA (non-GAAP)	0.95		%	1.39		%	1.68		%
Adjusted annualized pre-tax pre-provision ROAA (non-GAAP)	0.95		%	1.39		%	1.69		%

(Dollar amounts in thousands)	Year Ended December 31,
	2021			2020
Adjusted earnings return on average assets
Net interest income (GAAP)	$	72,308		$	60,053
Total non-interest income	6,187			4,306
Total non-interest expense	47,266			43,620
Pre-tax pre-provision earnings (non-GAAP)	$	31,229		$	20,739
Total adjustments to non-interest expense	—			(3,328)
Adjusted pre-tax pre-provision earnings (non-GAAP)	$	31,229		$	24,067
Return on average assets (GAAP)	0.86		%	0.46		%
Annualized pre-tax pre-provision ROAA (non-GAAP)	1.25		%	1.14		%
Adjusted annualized pre-tax pre-provision ROAA (non-GAAP)	1.25		%	1.33		%

(Dollar amounts in thousands)	December 31, 2021			December 31, 2020
PPP and PA marks adjustment
Total loans held for investment (GAAP)	$	1,764,460		$	1,641,422
Add allowance for loan loss ("ALLL")	12,704			16,259
Total gross loans held for investment ("LHFI")	1,777,164			1,657,681
Less Professional Bank PPP loans ("PPP")	58,615			185,748
Total LHFI excluding PPP loans (non-GAAP)	1,718,549			1,471,933
Add purchase accounting loan marks ("PA")	13,003			18,835
Total LHFI excluding PPP loans (non-GAAP) + PA marks	$	1,731,552		$	1,490,768
ALLL as a % of LHFI (GAAP)	0.72		%	0.99		%
ALLL as a % of total LHFI excluding PPP loans (non-GAAP)	0.74		%	1.10		%
PA marks + ALLL / LHFI excluding PPP loans (non-GAAP)	1.48		%	2.35		%

(Dollar amounts in thousands)	Three Months Ended
	December 31, 2021			September 30, 2021			December 31, 2020
Net interest margin adjustment
Net interest income (GAAP)	$	18,123		$	19,104		$	18,241
Less: PPP net interest income recognized	1,269			2,151			2,040
Net interest income excluding PPP (non-GAAP)	16,854			16,953			16,201
Less: PA premium/discounts	1,442			1,969			2,669
Net interest income excluding PPP and PA (non-GAAP)	$	15,412		$	14,984		$	13,532
Average interest earning assets (GAAP)	2,584,329			2,431,904			1,943,581
Less: average PPP loans	72,728			117,256			206,272
Average interest earning assets, excluding PPP (non-GAAP)	2,511,601			2,314,648			1,737,309
Less: average PA marks	(14,051)			(14,317)			(17,047)
Average interest earning assets, excluding PPP and PA (non-GAAP)	$	2,525,652		$	2,328,965		$	1,754,356
Net interest margin (GAAP)	2.78		%	3.12		%	3.73		%
Net interest margin excluding PPP (non-GAAP)	2.66		%	2.91		%	3.71		%
Net interest margin excluding PPP and PA (non-GAAP)	2.42		%	2.55		%	3.07		%

(Dollar amounts in thousands)	Year Ended
	December 31, 2021			December 31, 2020
Net interest margin adjustment
Net interest income (GAAP)	$	72,308		$	60,053
Less: PPP net interest income recognized	8,246			3,605
Net interest income excluding PPP (non-GAAP)	64,062			56,448
Less: PA premium/discounts	6,024			7,418
Net interest income excluding PPP and PA (non-GAAP)	$	58,038		$	49,030
Average interest earning assets (GAAP)	2,364,294			1,713,043
Less: average PPP loans	141,511			142,020
Average interest earning assets, excluding PPP (non-GAAP)	2,222,783			1,571,023
Less: average PA marks	(16,124)			(13,160)
Average interest earning assets, excluding PPP and PA (non-GAAP)	$	2,238,907		$	1,584,183
Net interest margin (GAAP)	3.06		%	3.51		%
Net interest margin excluding PPP (non-GAAP)	2.88		%	3.59		%
Net interest margin excluding PPP and PA (non-GAAP)	2.59		%	3.09		%

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 and twelve months ended December 31, 2021.

	Three Months Ended				Year Ended
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Return on Average Assets	0.58	%	1.07	%	0.86	%	0.46	%
Return on Average Equity	6.84	%	10.61	%	9.58	%	4.30	%
Average Equity to Average Assets	8.43	%	10.12	%	8.95	%	10.64	%

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; damage resulting from pending future litigation; competition; our ability to execute business plans; geopolitical developments; legislative and regulatory developments; inflation or deflation; market fluctuations; risks related to the discontinuation of the London Interbank Offered Rate; natural disasters (including pandemics such as COVID-19); critical

accounting estimates; a failure or disruption in or breach of our operational or securities systems or infrastructure, or those of third parties, including as a result of cyber fraud; the composition of our workforce and our ability to attract and retain key personnel; and other factors described in our Form 10-K for the year ended December 31, 2020, Form 10-Qs for the quarters ended March 31, 2021, June 30, 2021, September 30, 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-size 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

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 1 EARNINGS PRESENTATION FOURTH QUARTER 2021 NASDAQ:PFHD

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 2 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; damage resulting from pending or future litigation; competition; our ability to execute business plans; geopolitical developments; legislative and regulatory developments; inflation or deflation; market fluctuations; risks related to the discontinuation of the London Interbank Offered Rate; natural disasters (including pandemics such as COVID-19); critical accounting estimates; a failure or disruption in or breach of our operational or securities systems or infrastructure, or those of third parties, including as a result of cyber fraud; the composition of our workforce and our ability to attract and retain key personnel; and other factors described in our Form 10-K for the year ended December 31, 2020, Form 10-Qs for the quarters ended March 31, 2021, June 30, 2021, and September 30, 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: -

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE CLEVELAND DIGITAL INNOVATION CENTER NEW ENGLAND LPO CORAL GABLES (HEADQUARTERS) SOUTH MIAMI FORT LAUDERDALE BOCA RATON WELLINGTON DADELAND PALM BEACH GARDENS DORAL AVENTURA TAMPA LPO JACKSONVILLE LPO 3 A GROWING FRANCHISE IN SOUTH FLORIDA Professional Bank founded in 2008 in Coral Gables, FL Expanded from one location in South Miami to eleven locations throughout Florida, one in New England and one in Cleveland 12th largest independent community bank in Florida* Successfully recruited seasoned bankers and banking teams from local, regional and national financial institutions Senior management has significant and long term expertise in the Florida real estate market Lending and credit philosophy centers on maintaining a low basis in collateral and avoiding concentrations Technology team of experienced leaders supporting the bank’s investment in infrastructure, enhancing service offerings, and improving operational efficiency " " " " " " * Does not include Investment Banks or Savings and Loan Associations 5th largest bank headquartered in South Florida # " Gross loan originations in 2021 of $804 million, representing almost 50% $ of today’s loan portfolio Excludes PPP originations

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 4 FOURTH QUARTER 2021 HIGHLIGHTS Q4 Net Income $4.0 million YTD Net Income $21.4 million Tangible Book Value per Share $15.30 Earnings per Share $0.30 Return on Average Assets 0.58% Return on Average Equity 6.8% Efficiency Ratio 66.5% Total Risk-Based Capital Ratio 12.7% 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.

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 5 2021 ANNUAL HIGHLIGHTS YTD Net Income $21.4 million Tangible Book Value per Share $15.30 Earnings per Share $1.61 Return on Average Assets 0.86% Return on Average Equity 9.58% Efficiency Ratio 60.2% 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.

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE $684 $27 $6,513 $8,956$8,550 $7,210 $8,674 6 EARNINGS AND ADJUSTED EARNINGS $0 Actual Earnings Reported 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $0.41 $0.36 $0.47 $0.48 $0.30 Earnings per share (GAAP) 1.07% 0.90% 0.99% 0.97% 0.58% Return on average annualized assets (GAAP) 1.68% 1.36% 1.33% 1.39% 0.95% Annualized pre-tax pre-provision ROAA (non-GAAP) 1.69% 1.49% 1.33% 1.39% 0.95% Adjusted annualized pre-tax pre-provision ROAA (non-GAAP) ($ in thousands) % Earnings per share decreased $0.18, or 38%, quarter-over-quarter and increased $0.92, or 133%, year-over-year. & Tangible book value per share for the fourth quarter of 2021 was $15.30. Please refer to the non-GAAP Reconciliation Table on page 19 $8,701 $7,894 NOTES: $8,550 $8,956 Adjustments to Non- interest Expense ($0) Pre-tax Pre- provision Earnings $3,960 $6,288$6,331 $4,785 $5,541 $6,513

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE ' 7 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $18,123 $19,104 $17,202 $17,879$18,241 NET INTEREST INCOME AND MARGIN Net Interest Income ($ in thousands) Net Interest Income NIM Net interest income totaled $18.1 million for the fourth quarter of 2021, down $1.0 million, or 5.1%, from the prior quarter primarily due to a decrease in loan fees and purchase accounting marks. ( Net interest income excluding PPP and PA totaled $15.4 million, up $0.4 million, or 2.9%, from the prior quarter. NIM (ex. PPP, and inc. PA) NIM (ex. PPP and PA) NIM = Net Interest Margin PPP = Paycheck Protection Program PA = Purchase Accounting 3.65% 3.04% 3.36% 3.73% 3.07% 3.71% NOTES: - 2.82% 2.50% 2.73% ) Weighted average roll-off rate (loans paid off) was 4.1% and the weighted average roll-on rate (loans originated) was 3.9%. Does not include PPP loans. 3.12% 2.55% 2.91% 2.78% 2.42% 2.66% ' Net interest margin decreased 34 basis points quarter-over-quarter to 2.78% for the fourth quarter of 2021.

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 8 CONSISTENT LOAN GROWTH Total Loans Outstanding ($ in millions) & Fourth quarter loans totaled $1.8 billion, an increase of $89.9 million, or 5.3%, from the prior quarter due to very strong production in the 4th quarter. Net loan growth, exclusive of PPP loans, was up $116.4 million, or 7.3%, quarter-over-quarter. * We experienced strong originations across all loan types due to new loan originations of $304.3 million (of which $226.6 million funded), partially offset by payoffs of $131.6 million* ($103.9 million of conventional loans and $27.6 million of PPP loans forgiven). * Not including scheduled amortization and unscheduled partial paydowns PPP Loans $59 Certain prior period amounts have been reclassified to conform to the current period presentation. 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $59 $85$139$205 $186 $1,719 $1,602$1,551$1,522$1,472 $1,658 $1,727 $1,690 $1,687 $1,777 51.1%51.2% 51.7%51.6% 52.4% + For the year 2021, the Bank produced gross loan originations of $803.5 million (excluding PPP loan activity). Net loan growth of $119.5 million, or 7.2% for 2021 ($246.6 million, or 16.75% without the impact of PPP originations and forgiveness). Weighted Average LTV Does not include PPP loans

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 9 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $674 $799 $855 $589 $476 $266 $268 $262 $249 $237 $1,121 $959 $874 $798 $715 $310$329$286$270$232 STRONG DEPOSIT FRANCHISE Deposits Outstanding ($ in millions) Interest Bearing Demand 13% Money Market and Savings 47% Time Deposits 11% , Total deposits were $2.37 billion, an increase of $16.6 million, or 1.0%, compared to Q3 2021 and an increase of $711.8 million, or 42.9%, compared to Q4 2020. Overall cost for deposits increased 1 basis point from 0.26% in the prior quarter to 0.27% in the fourth quarter of 2021. - Core deposits represent 92.3% of total deposits. . $1,660 $1,906 NOTES: - $2,355 Non-interest Bearing 28% $2,277 $2,371

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 10 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 28% 34%38% 31%29% 3% 2% 2% 2%2% 11% 11% 11% 13%14% 45%39%36% 40%41% 13%14%13%14%14% Deposit Composition Over Time Interest Bearing Demand Money Market and Savings Time Deposit Our bank’s funding strategy focuses on building strong core relationships with our clients and providing them with a robust technological platform to support a well-diversified deposit portfolio. / 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 0.27%0.26%0.25% 0.31% 0.33% Cost of Deposits Brokered Deposits* Non-Interest Bearing DEPOSIT BALANCES AND COST NOTES: - May want to highlight excess cash in the paragraph on the right - Previous page shows 38% for NIB… need to reconcile and correct one of the pages As of the period end date for each quarter indicated * Brokered deposits include both time and money market accounts.

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 1Q 2021* 2Q 2021 3Q 2021 4Q 2021 $654$0$0 $7,641 11 ROBUST ASSET QUALITY Net Charge-Offs NCO 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $373$464$558$453 $542 $4,416$5,085$5,101$5,101 $12,791 Criticized Assets Classified Non-Classified 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $2,122 $2,775$2,775$2,775 $10,434 Nonperforming Loans Total NPL Total NPL Ratio* * NPL percent of Gross Loans ($ in thousands) 0.12%0.16%0.16%0.16% 0.63% ! Credit quality remains strong with minimal criticized assets and nonperforming loans. 4Q 2020 $28 * The charge off of $7.6 million in 1Q 2021 is related to a loan to a borrower that was previously disclosed 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? % of Total Loans <1 bp 44 bps 4 bps0 bps 0 bps

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 12 ALLOWANCE FOR LOAN AND LEASE LOSS 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $12,704 $11,478 $10,418 $9,656 $16,259 ALLL / Total Loans 0.74%0.72%0.67%0.63% 1.10% * Does not include PPP Loans ($ in thousands) 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $25,708$25,795$26,551$26,690 $35,094 ALLL + Loan Marks ALLL Ratio* 1.48% 1.60%1.69%1.73% 2.35% * Does not include PPP Loans Marquis Bank Loans are included Certain prior period amounts have been reclassified to conform to the current period presentation NOTES: - ALLL ALLL Ratio* ALLL + Loan Marks / Total Loans

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 13 Geographic Mix ($ in millions) Miami-Dade County $1,029.4 58% Broward County $184.6 11% Palm Beach County $282.6 16% LOAN PORTFOLIO HIGHLIGHTS 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Loan Composition CRE - Owner Occupied (19%) CRE - Non-owner Occupied (32%) Residential Real Estate (21%) Commercial (19%) Construction & Development (5%) Consumer & Other Loans (1%) Rest of U.S. $202.3 11%Geographical mix based on collateral location PPP Loans (3%) All other FL counties $78.3 4% NOTES: -

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 14 -400 bps -300 bps -200 bps -100 bps BASE +100 bps +200 bps +300 bps +400 bps $84$82$79$76$73$74$72$70$68 INTEREST RATE SENSITIVITY Impact on NII from Interest Rate Change ($ in millions) & The Company remains asset sensitive driven by large cash balances, floating rate loans, and loans maturing in less than a year. 16.2% 12.4% 8.4% 4.2% 0.0%1.3% -1.5%-4.0%-6.0% Change from base As of December 31, 2021 NOTES: - Pending from 3rd party - ALCO

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 15 ASSET LIABILITY MANAGEMENT TRENDS • 16.4% of loans are floating rate ($292 million). • An additional 16.2% of loans are floating to the Bank via interest rate SWAP ($285 million). • The remaining loans are currently fixed rate ($1.2 billion) which in some cases adjust and reprice periodically. 097% of time deposits mature within a year. Total time deposits are $265.7 million (11% of total deposits). 1 2017 2018 2019 2020 2021 0.30% 0.55% 1.80% 1.30% 0.92% 3.07% 4.02% 4.77% 4.55% 4.34% Yield/Cost Analysis Yield on Interest- Earning Assets Cost of Funds 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 +400 bps 16.2% 24.4% -15.4% +300 bps 12.4% 18.6% -11.1% +200 bps 8.4% 12.7% -7.3% +100 bps 4.2% 6.5% 3.7% Flat - - - - - - -100 bps 1.3% -4.7% 4.8% -200 bps -1.5% -9.1% 5.9% -300 bps -4.0% -12.5% 6.2% -400 bps -6.0% -15.6% 6.7% NOTES: -

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 16 1.3% 1.9% 2.4% 3.0% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1.67%1.72%1.75% 2.17% 2.02% INVESTMENT PORTFOLIO 1.0 3.0 5.0 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 4.08 3.43 3.70 3.203.02 Book Yield Duration Ye ar s P er ce n t Portfolio Mix ($ in thousands) $201,176 4Q 2021 Corporate 1% Agency 2% CDD Bonds 9% Municipals 1% MBS/CMO 64% Equity Securities 3% SBA 20% 4Q 2020 3% 3% 1% 22% 1% 31% 6% 32% $95,060 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $201,176 $120,642$127,723 $86,837 $95,060 Total Portfolio by QuarterPortfolio Mix for the Current Quarter Portfolio Mix for Previous Quarters ! During the quarter, there were purchases of approximately $91 million in high quality MBS/CMO, SBA, and CDD Bonds in our available for sale portfolio, resulting in an increase in duration. 2Q 2021 1% 2% 1% 15% 1% 43% 5% 33% $127,723 1Q 2021 3% 3% 1% 22% 1% 31% 6% 32% $86,837 3Q 2021 1% 2% 15% 1% 42% 6% 33% $120,642

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 17 PAYCHECK PROTECTION PROGRAM AS OF DECEMBER 31, 2021 2,287 small business loans completed 2$340,508,987 in small business loans given through all rounds of the Paycheck Protection Program * 90.5% of our originated PPP loans were under $350,0003 Smallest Loan $900 Largest Loan $10,000,000 1,185 Loans below $50k 52% 25% 23% 528 Loans above $150k 574 Loans between $50k and $150k 1,931 Loans from Rounds 1, 2 & 3 forgiven (a total of $279.9 million, or 82.2%) 4 Median $46,280 Mean (Average) $148,762 NOTES: - Is “June 30” the right ‘as of’ date? $58.6 million in unforgiven PPP Loans mature in 5 years. $2.0 million mature in 2 years. 5 1Q 2021 2Q 2021 3Q 2021 4Q 2021 $60.6 $88.2 $139.3 $204.2 $279.9 $252.3 $201.3 $117.8 PPP Balances ($ in millions) Forgiven PPP Loan Balances 82.2% $340.5 Number of forgiven PPP Loans 1,931 Loans 1,745 Loans 1,362 Loans 1,062 Loans $340.5 $322.5 Unforgiven PPP Loan Balances 17.8% $340.5

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 18 APPENDIX: NON-GAAP RECONCILIATION Adjusted Earnings and ROAA 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net interest income (GAAP) $ 18,241 $ 17,879 $ 17,202 $ 19,104 $ 18,123 Total non-interest income (GAAP) $ 1,519 $ 1,119 $ 2,302 $ 1,476 $ 1,290 Total non-interest expense (GAAP) $ 11,086 $ 11,788 $ 10,954 $ 11,624 $ 12,900 Pre-tax pre-provision earnings (non-GAAP) $ 8,674 $ 7,210 $ 8,550 $ 8,956 $ 6,513 Total adjustments to non-interest Expense $ (27) $ (684) - - - Adjusted pre-tax pre-provision earnings (non-GAAP) $ 8,701 $ 7,894 $ 8,550 $ 8,956 $ 6,513 Return on average annualized assets (GAAP) 1.07% 0.90% 0.99% 0.97% 0.58% Adjusted return on average assets (non-GAAP) Annualized pre-tax pre-provision ROAA (non-GAAP) 1.68% 1.36% 1.33% 1.39% 0.95% Adjusted annualized pre-tax pre-provision ROAA (non-GAAP) 1.69% 1.49% 1.33% 1.39% 0.95% ($ in thousands, except per share data) NOTES: - Do we still need this? Leaving it here for now.

FOURTH QUARTER 2021 EARNINGS PRESENTATION PAGE 19 Net Interest Margin Adjustment 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net interest income (GAAP) $ 18,241 $ 17,879 $ 17,202 $ 19,104 $ 18,123 Less: PPP net interest income recognized $ 2,040 $ 2,982 $ 1,844 $ 2,151 $ 1,269 Net interest income excluding PPP (non-GAAP) $ 16,201 $ 14,897 $ 15,358 $ 16,953 $ 16,854 Less: PA premium/discounts $ 2,669 $ 1,269 $ 1,192 $ 1,969 $ 1,442 Net interest income excluding PPP and PA (non-GAAP) $ 13,532 $ 13,628 $ 14,166 $ 14,984 $ 15,412 Average interest earning assets (GAAP) $ 1,943,581 $ 1,986,324 $ 2,447,242 $ 2,431,904 $ 2,584,329 Less: average PPP loans $ 206,272 $ 190,713 $ 186,912 $ 117,256 $ 72,728 Average interest earning assets, excluding PPP (non-GAAP) $ 1,737,309 $ 1,795,611 $ 2,260,330 $ 2,314,648 $ 2,511,601 Less: average PA marks $ (17,047) $ (18,459) $ (16,649) $ (14,317) $ (14,051) Average interest earning assets, excluding PPP and PA (non-GAAP) $ 1,754,356 $ 1,814,070 $ 2,276,979 $ 2,328,965 $ 2,525,652 Net interest margin (GAAP) 3.73% 3.65% 2.82% 3.12% 2.78% Net interest margin excluding PPP (non-GAAP) 3.71% 3.36% 2.73% 2.91% 2.66% Net interest margin excluding PPP and PA (non-GAAP) 3.07% 3.04% 2.50% 2.55% 2.42% ($ in thousands, except per share data) NOTES: - Do we still need this? Leaving it here for now. APPENDIX: NON-GAAP RECONCILIATION

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Cover Page	Jan. 27, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 27, 2022
Entity Registrant Name	Professional Holding Corp.
Entity Incorporation, State or Country Code	FL
Entity File Number	001-39215
Entity Tax Identification Number	46-5144312
Entity Address, Address Line One	396 Alhambra Circle
Entity Address, Address Line Two	Suite 255
Entity Address, City or Town	Coral Gables
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33134
City Area Code	786
Local Phone Number	483-1757
Title of 12(b) Security	Class A Common Stock, par value $0.01 per share
Trading Symbol	PFHD
Security Exchange Name	NASDAQ
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Amendment Flag	false
Entity Central Index Key	0001630856