EX-99.1 2 pcbpr20241024earnings.htm EX-99.1 Document

Exhibit 99.1
pcbbancorp.jpg
PCB Bancorp Reports Earnings for Q3 2024
Los Angeles, California - October 24, 2024 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $7.5 million, or $0.52 per diluted common share, for the third quarter of 2024, compared with $6.1 million, or $0.43 per diluted common share, for the previous quarter and $7.0 million, or $0.49 per diluted common share, for the year-ago quarter.
Q3 2024 Highlights
•Net income available to common shareholders totaled $7.5 million, or $0.52 per diluted common share;
•Recorded a provision for credit losses of $50 thousand for the current quarter compared with $259 thousand for the previous quarter and $751 thousand for the year-ago quarter;
•Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.17% at September 30, 2024 compared with 1.17% at June 30, 2024, 1.19% at December 31, 2023 and 1.18% at September 30, 2023;
•Net interest income was $22.7 million for the current quarter compared with $21.7 million for the previous quarter and $22.4 million for the year-ago quarter. Net interest margin was 3.25% for the current quarter compared with 3.16% for the previous quarter and 3.57% for the year-ago quarter;
•Gain on sale of loans was $750 thousand for the current quarter compared with $763 thousand for the previous quarter and $689 thousand for the year-ago quarter;
•Total assets were $2.89 billion at September 30, 2024, an increase of $36.9 million, or 1.3%, from $2.85 billion at June 30, 2024, an increase of $100.3 million, or 3.6%, from $2.79 billion at December 31, 2023 and an increase of $321.9 million, or 12.5%, from $2.57 billion at September 30, 2023;
•Loans held-for-investment were $2.47 billion at September 30, 2024, an increase of $17.1 million, or 0.7%, from $2.45 billion at June 30, 2024, an increase of $142.7 million, or 6.1% from $2.32 billion at December 31, 2023, and an increase of $298.6 million, or 13.8%, from $2.17 billion at September 30, 2023; and
•Total deposits were $2.46 billion at September 30, 2024, an increase of $53.4 million, or 2.2%, from $2.41 billion at June 30, 2024, an increase of $108.1 million, or 4.6%, from $2.35 billion at December 31, 2023, and an increase of $267.6 million, or 12.2%, from $2.19 billion at September 30, 2023.
“PCB’s third quarter was another solid quarter for us, highlighted by a 21.6% increase in net income available to common shareholders to $7.5 million that was benefited from our solid year-over-year loan growth combined with our expanded net interest margin,” said Henry Kim, President and Chief Executive Officer. “Additionally, we continue to maintain strong credit metrics, solid ACL, and robust capital ratios.”
“During the third quarter, our loan balance increased 0.8% to $2.5 billion, deposits increased 2.2% to $2.5 billion, and we maintained our ACL to loan ratio at 1.17%, while reducing our non-performing assets and classified assets to total assets ratios to 0.24% and 0.32%, respectively.”
Mr. Kim added, “As we look ahead to the fourth quarter and next year, our strategic expansion of our footprint and branch network optimizations will provide us with continued strong balance sheet growth with solid financial results.”
1

Financial Highlights (Unaudited)
($ in thousands, except per share data)
Three Months Ended
Nine Months Ended
9/30/20246/30/2024
% Change
9/30/2023
% Change
9/30/20249/30/2023% Change
Net income$7,814 $6,281 24.4 %$7,023 11.3 %$18,780 $24,797 (24.3)%
Net income available to common shareholders$7,468 $6,139 21.6 %$7,023 6.3 %$18,292 $24,797 (26.2)%
Diluted earnings per common share$0.52 $0.43 20.9 %$0.49 6.1 %$1.27 $1.71 (25.7)%
Net interest income$22,719 $21,735 4.5 %$22,449 1.2 %$65,453 $66,580 (1.7)%
Provision (reversal) for credit losses50 259 (80.7)%751 (93.3)%1,399 (1,830)NM
Noninterest income2,620 2,485 5.4 %2,502 4.7 %8,050 8,180 (1.6)%
Noninterest expense14,602 15,175 (3.8)%14,207 2.8 %46,129 41,588 10.9 %
Return on average assets (1)
1.08 %0.89 %1.09 %0.88 %1.32 %
Return on average shareholders’ equity (1)
8.70 %7.19 %8.12 %7.11 %9.77 %
Return on average tangible common equity (“TCE”) (1),(2)
10.31 %8.75 %10.17 %8.61 %12.27 %
Net interest margin (1)
3.25 %3.16 %3.57 %3.17 %3.63 %
Efficiency ratio (3)
57.63 %62.65 %56.94 %62.76 %55.63 %
($ in thousands, except per share data)9/30/20246/30/2024% Change12/31/2023% Change9/30/2023% Change
Total assets
$2,889,833 $2,852,964 1.3 %$2,789,506 3.6 %$2,567,974 12.5 %
Net loans held-for-investment
2,437,244 2,420,327 0.7 %2,295,919 6.2 %2,142,006 13.8 %
Total deposits
2,459,682 2,406,254 2.2 %2,351,612 4.6 %2,192,129 12.2 %
Book value per common share (4)
$25.39 $24.80 $24.46 $23.87 
TCE per common share (2)
$20.55 $19.95 $19.62 $19.05 
Tier 1 leverage ratio (consolidated)
12.79 %12.66 %13.43 %13.76 %
Total shareholders’ equity to total assets12.54 %12.39 %12.51 %13.31 %
TCE to total assets (2), (5)
10.14 %9.97 %10.03 %10.62 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
(3)Calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
(4)Calculated by dividing total shareholders’ equity by the number of outstanding common shares.
(5)The Company did not have any intangible asset component for the presented periods.


2

Result of Operations (Unaudited)
Net Interest Income and Net Interest Margin
The following table presents the components of net interest income for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20246/30/2024
% Change
9/30/2023% Change9/30/20249/30/2023% Change
Interest income/expense on
Loans
$42,115 $40,626 3.7 %$34,651 21.5 %$121,992 $98,840 23.4 %
Investment securities
1,384 1,310 5.6 %1,170 18.3 %3,940 3,408 15.6 %
Other interest-earning assets
2,499 3,009 (16.9)%3,031 (17.6)%8,566 7,978 7.4 %
Total interest-earning assets
45,998 44,945 2.3 %38,852 18.4 %134,498 110,226 22.0 %
Interest-bearing deposits
23,057 22,536 2.3 %16,403 40.6 %67,560 43,437 55.5 %
Borrowings
222 674 (67.1)%— NM1,485 209 610.5 %
Total interest-bearing liabilities
23,279 23,210 0.3 %16,403 41.9 %69,045 43,646 58.2 %
Net interest income
$22,719 $21,735 4.5 %$22,449 1.2 %$65,453 $66,580 (1.7)%
Average balance of
Loans
$2,456,015 $2,414,824 1.7 %$2,137,184 14.9 %$2,413,777 $2,102,600 14.8 %
Investment securities
147,528 141,816 4.0 %138,993 6.1 %143,283 141,057 1.6 %
Other interest-earning assets
175,711 213,428 (17.7)%219,115 (19.8)%201,951 206,720 (2.3)%
Total interest-earning assets
$2,779,254 $2,770,068 0.3 %$2,495,292 11.4 %$2,759,011 $2,450,377 12.6 %
Interest-bearing deposits
$1,893,006 $1,863,623 1.6 %$1,561,582 21.2 %$1,861,395 $1,500,523 24.0 %
Borrowings
15,848 48,462 (67.3)%— NM35,427 5,212 579.7 %
Total interest-bearing liabilities
$1,908,854 $1,912,085 (0.2)%$1,561,582 22.2 %$1,896,822 $1,505,735 26.0 %
Total funding (1)
$2,443,615 $2,447,593 (0.2)%$2,188,320 11.7 %$2,434,504 $2,152,993 13.1 %
Annualized average yield/cost of 
Loans
6.82 %6.77 %6.43 %6.75 %6.29 %
Investment securities
3.73 %3.72 %3.34 %3.67 %3.23 %
Other interest-earning assets
5.66 %5.67 %5.49 %5.67 %5.16 %
Total interest-earning assets6.58 %6.53 %6.18 %6.51 %6.01 %
Interest-bearing deposits
4.85 %4.86 %4.17 %4.85 %3.87 %
Borrowings
5.57 %5.59 %— %5.60 %5.36 %
Total interest-bearing liabilities4.85 %4.88 %4.17 %4.86 %3.88 %
Net interest margin3.25 %3.16 %3.57 %3.17 %3.63 %
Cost of total funding (1)
3.79 %3.81 %2.97 %3.79 %2.71 %
Supplementary information
Net accretion of discount on loans$773 $791 (2.3)%$775 (0.3)%$2,137 $2,197 (2.7)%
Net amortization of deferred loan fees$246 $339 (27.4)%$226 8.8 %$919 $648 41.8 %
(1)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

3

Loans. The increase in average yield for the current quarter was primarily due to a higher average loan rate throughout the current quarter, partially offset by a decrease in net amortization of deferred loan fees. The increase for the current year-to-date period was primarily due to increases in overall interest rates on loans and net amortization of deferred loan fees.
The following table presents a composition of total loans by interest rate type accompanied with the weighted-average contractual rates as of the dates indicated:
9/30/20246/30/202412/31/20239/30/2023
% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate
Fixed rate loans
18.3 %5.06 %18.8 %5.04 %21.2 %4.86 %22.4 %4.75 %
Hybrid rate loans
37.6 %5.14 %37.2 %5.04 %39.0 %4.93 %38.8 %4.71 %
Variable rate loans
44.1 %8.10 %44.0 %8.45 %39.8 %8.51 %38.8 %8.52 %
On September 18, 2024, the Federal Open Market Committee decreased the Fed Funds rate by 50 bps and this change resulted in an overall decrease in weighted-average contractual rates on variable rate loans in September 2024.
Investment Securities. The increases in average yield for the current quarter and year-to-date periods were primarily due to higher yield on newly purchased investment securities.
Other Interest-Earning Assets. The increases in average yield for the current quarter and year-to-date period compared with the same periods of 2023 were primarily due to increases in interest rate on cash held at the Federal Reserve Bank and dividends received on Federal Home Loan Bank stock.
Interest-Bearing Deposits. The increases in average cost for the current quarter and year-to-date period compared with the same periods of 2023 were primarily due to an increase in market rates.
Provision (Reversal) for Credit Losses
The following table presents a composition of provision (reversal) for credit losses for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20246/30/2024
% Change
9/30/2023
% Change
9/30/20249/30/2023
% Change
Provision (reversal) for credit losses on loans$193 $329 (41.3)%$822 (76.5)%$1,444 $(1,438)NM
Provision (reversal) for credit losses on off-balance sheet credit exposure(143)(70)104.3 %(71)101.4 %(45)(392)(88.5)%
Total provision (reversal) for credit losses$50 $259 (80.7)%$751 (93.3)%$1,399 $(1,830)NM
The provision for credit losses on loans for the current quarter was primarily due to an increase in loans held-for-investment.
4

Noninterest Income
The following table presents the components of noninterest income for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20246/30/2024
% Change
9/30/2023
% Change
9/30/20249/30/2023
% Change
Gain on sale of loans
$750 $763 (1.7)%$689 8.9 %$2,591 $2,767 (6.4)%
Service charges and fees on deposits
399 364 9.6 %371 7.5 %1,141 1,084 5.3 %
Loan servicing income
786 799 (1.6)%851 (7.6)%2,504 2,579 (2.9)%
Bank-owned life insurance income239 236 1.3 %187 27.8 %703 551 27.6 %
Other income
446 323 38.1 %404 10.4 %1,111 1,199 (7.3)%
Total noninterest income
$2,620 $2,485 5.4 %$2,502 4.7 %$8,050 $8,180 (1.6)%
Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20246/30/2024% Change9/30/2023% Change9/30/20249/30/2023% Change
Gain on sale of SBA loans
Sold loan balance
$13,506 $13,619 (0.8)%$17,697 (23.7)%$46,539 $61,592 (24.4)%
Premium received
1,185 1,056 12.2 %1,112 6.6 %3,837 4,362 (12.0)%
Gain recognized
750 763 (1.7)%689 8.9 %2,591 2,767 (6.4)%
Gain on sale of residential mortgage loans
Sold loan balance
$676 $— NM$— NM$676 $— NM
Gain recognized
— — — %— — %— — — %
Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20246/30/2024
% Change
9/30/2023
% Change
9/30/20249/30/2023
% Change
Loan servicing income
Servicing income received
$1,264 $1,318 (4.1)%$1,321 (4.3)%$3,875 $3,922 (1.2)%
Servicing assets amortization
(478)(519)(7.9)%(470)1.7 %(1,371)(1,343)2.1 %
Loan servicing income$786 $799 (1.6)%$851 (7.6)%$2,504 $2,579 (2.9)%
Underlying loans at end of period
$527,062 $527,458 (0.1)%$536,424 (1.7)%$527,062 $536,424 (1.7)%
The Company services SBA loans and certain residential property loans sold to the secondary market.
5

Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20246/30/2024% Change9/30/2023% Change9/30/20249/30/2023% Change
Salaries and employee benefits
$8,801 $9,225 (4.6)%$8,572 2.7 %$27,244 $26,175 4.1 %
Occupancy and equipment
2,261 2,300 (1.7)%1,964 15.1 %6,919 5,779 19.7 %
Professional fees
599 973 (38.4)%685 (12.6)%2,656 2,189 21.3 %
Marketing and business promotion
667 318 109.7 %980 (31.9)%1,304 1,555 (16.1)%
Data processing
397 495 (19.8)%367 8.2 %1,294 1,159 11.6 %
Director fees and expenses
226 221 2.3 %152 48.7 %679 549 23.7 %
Regulatory assessments
309 327 (5.5)%281 10.0 %934 818 14.2 %
Other expense1,342 1,316 2.0 %1,206 11.3 %5,099 3,364 51.6 %
Total noninterest expense
$14,602 $15,175 (3.8)%$14,207 2.8 %$46,129 $41,588 10.9 %
Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to decreases in bonus and vacation accruals. The increase for the current year-to-date period was primarily due to increases in salaries, bonus accrual, incentives tied to sales of SBA loans originated at loan production offices, and other employee benefits, partially offset by a decrease in vacation accrual. The number of full-time equivalent employees was 264, 265 and 270 as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
Occupancy and Equipment. The increases for the current quarter and year-to-date period compared with the same periods of 2023 were primarily due to an expansion of headquarters location in the second half of 2023 and a relocation of a regional office and two branches into one location in Orange County, California.
Professional Fees. During the first half of 2024, the Company incurred additional professional fees related to a core system conversion, which was completed in April 2024.
Marketing and Business Promotion. The increase for the current quarter compared with the previous quarter was primarily due
to an increase in advertisements. The decrease for the current quarter and year-to-date period compared with the same periods of 2023 was primarily due to an increase in advertisements in 2023 periods for the Company’s 20th anniversary celebration.
Other Expense. The increase for the year-to-date period was primarily due to a termination charge for the legacy core system of $508 thousand and an expense of $815 thousand for a reimbursement for an SBA loan guarantee previously paid by the SBA on a loan originated in 2014 that subsequently defaulted and was ultimately determined to be ineligible for the SBA guaranty during the previous quarter. The Company has retained a law firm specializing in SBA recovery demands to seek that SBA reconsider the evidence and allow the Company to recoup all or part of the reimbursement.
6

Balance Sheet (Unaudited)
Total assets were $2.89 billion at September 30, 2024, an increase of $36.9 million, or 1.3%, from $2.85 billion at June 30, 2024, an increase of $100.3 million, or 3.6%, from $2.79 billion at December 31, 2023, and an increase of $321.9 million, or 12.5%, from $2.57 billion at September 30, 2023. The increases for the current quarter and year-to-date period were primarily due to increases in loans held-for-investment and other assets. During the current quarter, the Company invested $5.0 million in a qualified affordable housing project for lower income tenants in California. The recorded investment amount of the investment is included in Other Assets on the Consolidated Balance Sheets (unaudited).
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:
($ in thousands)9/30/20246/30/2024% Change12/31/2023% Change9/30/2023% Change
Commercial real estate:
Commercial property$874,824 $852,677 2.6 %$855,270 2.3 %$814,547 7.4 %
Business property579,461 572,643 1.2 %558,772 3.7 %537,351 7.8 %
Multifamily185,485 177,657 4.4 %132,500 40.0 %132,558 39.9 %
Construction21,150 28,316 (25.3)%24,843 (14.9)%19,246 9.9 %
Total commercial real estate1,660,920 1,631,293 1.8 %1,571,385 5.7 %1,503,702 10.5 %
Commercial and industrial407,024 417,333 (2.5)%342,002 19.0 %279,608 45.6 %
Consumer:
Residential mortgage383,377 384,905 (0.4)%389,420 (1.6)%363,369 5.5 %
Other consumer14,853 15,543 (4.4)%20,645 (28.1)%20,926 (29.0)%
Total consumer398,230 400,448 (0.6)%410,065 (2.9)%384,295 3.6 %
Loans held-for-investment2,466,174 2,449,074 0.7 %2,323,452 6.1 %2,167,605 13.8 %
Loans held-for-sale5,170 2,959 74.7 %5,155 0.3 %6,693 (22.8)%
Total loans
$2,471,344 $2,452,033 0.8 %$2,328,607 6.1 %$2,174,298 13.7 %
SBA loans included in:
Loans held-for-investment$142,819 $144,440 (1.1)%$145,603 (1.9)%$129,866 10.0 %
Loans held-for-sale$5,170 $2,959 74.7 %$5,155 0.3 %$16,272 (68.2)%
The increase in loans held-for-investment for the current quarter was primarily due to new funding and advances on lines of credit of $764.7 million, partially offset by pay-downs and pay-offs of $746.8 million. The increase for the current year-to-date period was primarily due to new funding and advances on lines of credit of $1.83 billion, partially offset by pay-downs and pay-offs of $1.69 billion.
The increase in loans held-for-sale for the current quarter was primarily due to new funding of $15.9 million and a loan transferred from loan held-for-investment of $676 thousand, partially offset by sales of $14.2 million, and pay-downs and pay-offs of $174 thousand. The increase for the current year-to-date period was primarily due to new funding of $48.3 million and a loan transferred from loan held-for-investment of $676 thousand, partially offset by sales of $47.2 million, and pay-downs and pay-offs of $1.8 million.

The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:
($ in thousands)9/30/20246/30/2024% Change12/31/2023% Change9/30/2023% Change
Commercial property$3,291 $6,309 (47.8)%$11,634 (71.7)%$9,827 (66.5)%
Business property12,441 11,607 7.2 %9,899 25.7 %8,388 48.3 %
Multifamily— 1,800 (100.0)%1,800 (100.0)%1,800 (100.0)%
Construction17,810 22,030 (19.2)%23,739 (25.0)%29,293 (39.2)%
Commercial and industrial394,428 336,121 17.3 %351,025 12.4 %283,119 39.3 %
Other consumer5,590 5,192 7.7 %3,421 63.4 %271 1,962.7 %
Total commitments to extend credit433,560 383,059 13.2 %401,518 8.0 %332,698 30.3 %
Letters of credit6,673 6,808 (2.0)%6,583 1.4 %6,083 9.7 %
Total off-balance sheet credit exposure$440,233 $389,867 12.9 %$408,101 7.9 %$338,781 29.9 %
7

Credit Quality
The following table presents a summary of non-performing loans and assets, and classified assets as of the dates indicated:
($ in thousands)9/30/20246/30/2024% Change12/31/2023% Change9/30/2023% Change
Nonaccrual loans
Commercial real estate:
Commercial property$1,633 $1,804 (9.5)%$958 70.5 %$686 138.0 %
Business property2,367 2,440 (3.0)%2,865 (17.4)%2,964 (20.1)%
Multifamily2,038 2,038 — %— NM— NM
Total commercial real estate6,038 6,282 (3.9)%3,823 57.9 %3,650 65.4 %
Commercial and industrial124 112 10.7 %68 82.4 %72 72.2 %
Consumer:
Residential mortgage414 1,100 (62.4)%— NM— NM
Other consumer38 6 533.3 %25 52.0 %8 375.0 %
Total consumer452 1,106 (59.1)%25 1,708.0 %8 5,550.0 %
Total nonaccrual loans held-for-investment
6,614 7,500 (11.8)%3,916 68.9 %3,730 77.3 %
Loans past due 90 days or more and still accruing
— — — %— — %— — %
Non-performing loans (“NPLs”) 6,614 7,500 (11.8)%3,916 68.9 %3,730 77.3 %
NPLs held-for-sale— — — %— — %— — %
Total NPLs6,614 7,500 (11.8)%3,916 68.9 %3,730 77.3 %
Other real estate owned (“OREO”)
466 — NM2,558 (81.8)%— NM
Non-performing assets (“NPAs”)
$7,080 $7,500 (5.6)%$6,474 9.4 %$3,730 89.8 %
Loans past due and still accruing
Past due 30 to 59 days
$2,973 $2,245 32.4 %$1,394 113.3 %$654 354.6 %
Past due 60 to 89 days
21 41 (48.8)%34 (38.2)%54 (61.1)%
Past due 90 days or more
— — — %— — %— — %
Total loans past due and still accruing
$2,994 $2,286 31.0 %1,428 109.7 %$708 322.9 %
Special mention loans$5,057 $5,080 (0.5)%$5,156 (1.9)%$5,281 (4.2)%
Classified assets
Classified loans held-for-investment$8,860 $9,752 (9.1)%$7,000 26.6 %$6,742 31.4 %
Classified loans held-for-sale— — — %— — %— — %
OREO
466 — NM2,558 (81.8)%— NM
Classified assets
$9,326 $9,752 (4.4)%$9,558 (2.4)%$6,742 38.3 %
NPLs to loans held-for-investment0.27 %0.31 %0.17 %0.17 %
NPAs to total assets
0.24 %0.26 %0.23 %0.15 %
Classified assets to total assets
0.32 %0.34 %0.34 %0.26 %


8

Allowance for Credit Losses
The following table presents activities in ACL for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20246/30/2024% Change9/30/2023% Change9/30/20249/30/2023% Change
ACL on loans
Balance at beginning of period$28,747 $28,332 1.5 %$24,867 15.6 %$27,533 $24,942 10.4 %
Impact of ASC 326 adoption— — NM— NM— 1,067 NM
Charge-offs(111)— — %(112)(0.9)%(296)(119)148.7 %
Recoveries101 86 17.4 %22 359.1 %249 1,147 (78.3)%
Provision (reversal) for credit losses on loans193 329 (41.3)%822 (76.5)%1,444 (1,438)(200.4)%
Balance at end of period$28,930 $28,747 0.6 %$25,599 13.0 %$28,930 $25,599 13.0 %
Percentage to loans held-for-investment at end of period1.17 %1.17 %1.18 %1.17 %1.18 %
ACL on off-balance sheet credit exposure
Balance at beginning of period$1,375 $1,445 (4.8)%$1,585 (13.2)%$1,277 $299 327.1 %
Impact of ASC 326 adoption— — NM— NM— 1,607 NM
Provision (reversal) for credit losses on off-balance sheet credit exposure(143)(70)104.3 %(71)101.4 %(45)(392)(88.5)%
Balance at end of period$1,232 $1,375 (10.4)%$1,514 (18.6)%$1,232 $1,514 (18.6)%
On January 1, 2023, the Company adopted the provisions of ASC 326 through the application of the modified retrospective transition approach. The initial adjustment to the ACL reflected the expected lifetime credit losses associated with the composition of financial assets within the scope of ASC 326 as of January 1, 2023, as well as management’s current expectation of future economic conditions. The Company recorded a net decrease of $1.9 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment, reflecting an initial adjustment to the ACL on loans of $1.1 million and the ACL on off-balance sheet credit exposures of $1.6 million, net of related deferred tax assets arising from temporary differences of $788 thousand.
Investment Securities
Total investment securities were $147.6 million at September 30, 2024, a decrease of $374 thousand, or 0.3%, from $148.0 million at June 30, 2024, but an increase of $4.3 million, 3.0%, from $143.3 million at December 31, 2023 and an increase of $8.4 million, or 6.0%, from $139.2 million at September 30, 2023. The decrease for the current quarter was primarily due to principal pay-downs of $5.6 million and net premium amortization of $41 thousand, partially offset by a fair value increase of $5.3 million. The increase for the current year-to-date period was primarily due to purchases of $14.8 million and a fair value increase of $3.5 million, partially offset by principal pay-downs of $13.9 million and net premium amortization of $123 thousand.


9

Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
9/30/20246/30/202412/31/20239/30/2023
($ in thousands)Amount% to TotalAmount% to TotalAmount% to TotalAmount% to Total
Noninterest-bearing demand deposits
$540,068 22.0 %$543,538 22.6 %$594,673 25.3 %$611,021 27.9 %
Interest-bearing deposits
Savings
5,718 0.2 %7,821 0.3 %6,846 0.3 %6,846 0.3 %
NOW
15,873 0.6 %18,346 0.8 %16,825 0.7 %16,076 0.7 %
Retail money market accounts
470,347 19.1 %457,760 18.9 %397,531 16.8 %436,115 19.8 %
Brokered money market accounts
1 0.1 %1 0.1 %1 0.1 %1 0.1 %
Retail time deposits of
$250,000 or less
492,430 20.0 %475,923 19.8 %456,293 19.4 %406,407 18.5 %
More than $250,000
580,166 23.6 %559,832 23.2 %515,702 21.9 %454,406 20.8 %
State and brokered time deposits
355,079 14.4 %343,033 14.3 %363,741 15.5 %261,257 11.9 %
Total interest-bearing deposits
1,919,614 78.0 %1,862,716 77.4 %1,756,939 74.7 %1,581,108 72.1 %
Total deposits
$2,459,682 100.0 %$2,406,254 100.0 %$2,351,612 100.0 %$2,192,129 100.0 %
Estimated total deposits not covered by deposit insurance$1,042,366 42.4 %$1,020,963 42.4 %$954,591 40.6 %$983,851 44.9 %
Total retail deposits were $2.10 billion at September 30, 2024, an increase of $41.4 million, or 2.0%, from $2.06 billion at June 30, 2024, an increase of $116.7 million, or 5.9%, from $1.99 billion at December 31, 2023, and an increase of $173.7 million, or 9.0%, from $1.93 billion at September 30, 2023.
The increase in retail time deposits for the current quarter was primarily due to new accounts of $76.6 million, renewals of the matured accounts of $117.9 million and balance increases of $9.5 million, partially offset by matured and closed accounts of $167.1 million. The increase for the current year-to-date period was primarily due to new accounts of $272.7 million, renewals of the matured accounts of $560.4 million and balance increases of $28.4 million, partially offset by matured and closed accounts of $760.8 million.
Liquidity
The following table presents a summary of the Company’s liquidity position as of the dates indicated:
($ in thousands)9/30/202412/31/2023% Change
Cash and cash equivalents
$193,064 $242,342 (20.3)%
Cash and cash equivalents to total assets
6.7 %8.7 %
Available borrowing capacity
FHLB advances
$702,986 $602,976 16.6 %
Federal Reserve Discount Window
578,713 528,893 9.4 %
Overnight federal funds lines
65,000 65,000 — %
Total
$1,346,699 $1,196,869 12.5 %
Total available borrowing capacity to total assets
46.6 %42.9 %
10

Shareholders’ Equity
Shareholders’ equity was $362.3 million at September 30, 2024, an increase of $8.8 million, or 2.5%, from $353.5 million at June 30, 2024, an increase of $13.4 million, or 3.8%, from $348.9 million at December 31, 2023, and an increase of $20.4 million, or 6.0%, from $341.9 million at September 30, 2023. The increase for the current quarter was primarily due to net income and a decrease in accumulated other comprehensive loss of $3.7 million, partially offset by cash dividends declared on common stock of $2.6 million and preferred stock dividends of $346 thousand. The increase for the current year-to-date period was primarily due to net income and a decrease in accumulated other comprehensive loss of $2.5 million, partially offset by cash dividends declared on common stock of $7.7 million, preferred stock dividends of $488 thousand, and repurchase of common stock of $222 thousand.
Stock Repurchases
In 2023, the Company repurchased and retired 512,657 shares of common stock at a weighted-average price of $17.22, totaling $8.8 million. During the current year-to-date period, the Company repurchased and retired 14,947 shares of common stock at a weighted-average price of $14.88, totaling $222 thousand. As of September 30, 2024, the Company is authorized to purchase 577,777 additional shares under its current stock repurchase program, which expires on August 2, 2025.
Series C Preferred Stock
On May 24, 2022, the Company issued 69,141 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference of $1,000 per share (“Series C Preferred Stock”) for the capital investment of $69.1 million from the U.S. Treasury under the Emergency Capital Investment Program (“ECIP”). The ECIP investment is treated as tier 1 capital for regulatory capital purposes.
The Series C Preferred Stock bore no dividend for the first 24 months following the investment date. Thereafter, the dividend rate will be determined quarterly based on the lending growth criteria listed in the terms of the ECIP investment with an annual dividend rate of up to 2%. After the tenth anniversary of the investment date, the dividend rate will be fixed based on the average annual amount of lending in years 2 through 10.
The Company began paying quarterly dividends on the Series C Preferred Stock at an annualized dividend rate of 2% in the second quarter of 2024. The dividends totaled $346 thousand and $488 thousand for the current quarter and year-to-date period, respectively.
Capital Ratios
Based on the Federal Reserve’s Small Bank Holding Company policy, the Company is not currently subject to consolidated minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will be subject to consolidated capital requirements independent of the Bank. For comparison purposes, the Company’s capital ratios are included in following table, which presents capital ratios for the Company and the Bank as of the dates indicated:
9/30/20246/30/202412/31/20239/30/2023Well Capitalized Minimum Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)
11.92 %11.91 %12.23 %13.07 %N/A
Total capital (to risk-weighted assets)
15.88 %15.94 %16.39 %17.48 %N/A
Tier 1 capital (to risk-weighted assets)
14.68 %14.71 %15.16 %16.24 %N/A
Tier 1 capital (to average assets)
12.79 %12.66 %13.43 %13.76 %N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)
14.33 %14.38 %14.85 %15.87 %6.5 %
Total capital (to risk-weighted assets)
15.54 %15.60 %16.07 %17.11 %10.0 %
Tier 1 capital (to risk-weighted assets)
14.33 %14.38 %14.85 %15.87 %8.0 %
Tier 1 capital (to average assets)
12.49 %12.37 %13.16 %13.44 %5.0 %
11

About PCB Bancorp
PCB Bancorp is the bank holding company for PCB Bank, a California state chartered bank, offering a full suite of commercial banking services to small to medium-sized businesses, individuals and professionals, primarily in Southern California, and predominantly in Korean-American and other minority communities.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to the health of the national and local economies including the impact to the Company and its customers resulting from changes to, and the level of, inflation and interest rates; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect the Company’s liquidity, financial performance and stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber security risks; the Company's ability to successfully deploy new technology; acquisitions and branch and loan production office expansions; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; costs related to litigation; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and other filings the Company makes with the SEC, which are available at the SEC’s Internet site (http://www.sec.gov) or from the Company without charge. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.
Contact:
Timothy Chang
Executive Vice President & Chief Financial Officer
213-210-2000

12

PCB Bancorp and Subsidiary
Consolidated Balance Sheets (Unaudited)
($ in thousands, except share and per share data)
9/30/20246/30/2024% Change12/31/2023% Change9/30/2023% Change
Assets
Cash and due from banks
$29,981 $23,247 29.0 %$26,518 13.1 %$22,691 32.1 %
Interest-bearing deposits in other financial institutions163,083 154,383 5.6 %215,824 (24.4)%169,659 (3.9)%
Total cash and cash equivalents
193,064 177,630 8.7 %242,342 (20.3)%192,350 0.4 %
Securities available-for-sale, at fair value
147,635 148,009 (0.3)%143,323 3.0 %139,218 6.0 %
Loans held-for-sale
5,170 2,959 74.7 %5,155 0.3 %6,693 (22.8)%
Loans held-for-investment2,466,174 2,449,074 0.7 %2,323,452 6.1 %2,167,605 13.8 %
Allowance for credit losses on loans(28,930)(28,747)0.6 %(27,533)5.1 %(25,599)13.0 %
Net loans held-for-investment
2,437,244 2,420,327 0.7 %2,295,919 6.2 %2,142,006 13.8 %
Premises and equipment, net
8,414 8,923 (5.7)%5,999 40.3 %6,229 35.1 %
Federal Home Loan Bank and other bank stock
14,042 14,042 — %12,716 10.4 %12,716 10.4 %
Other real estate owned, net
466 — NM2,558 (81.8)%— NM
Bank-owned life insurance31,520 31,281 0.8 %30,817 2.3 %30,615 3.0 %
Deferred tax assets, net
— — — %— — %4,486 (100.0)%
Servicing assets
5,902 6,205 (4.9)%6,666 (11.5)%6,920 (14.7)%
Operating lease assets
17,932 17,609 1.8 %18,913 (5.2)%5,626 218.7 %
Accrued interest receivable
9,896 10,464 (5.4)%9,468 4.5 %8,731 13.3 %
Other assets
18,548 15,515 19.5 %15,630 18.7 %12,384 49.8 %
Total assets
$2,889,833 $2,852,964 1.3 %$2,789,506 3.6 %$2,567,974 12.5 %
Liabilities
Deposits
Noninterest-bearing demand
$540,068 $543,538 (0.6)%$594,673 (9.2)%$611,021 (11.6)%
Savings, NOW and money market accounts
491,939 483,928 1.7 %421,203 16.8 %459,038 7.2 %
Time deposits of $250,000 or less
787,509 758,956 3.8 %760,034 3.6 %607,664 29.6 %
Time deposits of more than $250,000
640,166 619,832 3.3 %575,702 11.2 %514,406 24.4 %
Total deposits
2,459,682 2,406,254 2.2 %2,351,612 4.6 %2,192,129 12.2 %
Other short-term borrowings— 4,000 (100.0)%— — %— — %
Federal Home Loan Bank advances
— 32,000 (100.0)%39,000 (100.0)%— — %
Deferred tax liabilities, net1,168 577 102.4 %876 33.3 %— NM
Operating lease liabilities
19,301 18,939 1.9 %20,137 (4.2)%5,852 229.8 %
Accrued interest payable and other liabilities
47,382 37,725 25.6 %29,009 63.3 %28,141 68.4 %
Total liabilities
2,527,533 2,499,495 1.1 %2,440,634 3.6 %2,226,122 13.5 %
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock69,141 69,141 — %69,141 — %69,141 — %
Common stock142,926 142,698 0.2 %142,563 0.3 %143,401 (0.3)%
Retained earnings
156,680 151,781 3.2 %146,092 7.2 %142,750 9.8 %
Accumulated other comprehensive loss, net(6,447)(10,151)(36.5)%(8,924)(27.8)%(13,440)(52.0)%
Total shareholders’ equity
362,300 353,469 2.5 %348,872 3.8 %341,852 6.0 %
Total liabilities and shareholders’ equity
$2,889,833 $2,852,964 1.3 %$2,789,506 3.6 %$2,567,974 12.5 %
Outstanding common shares
14,266,725 14,254,024 14,260,440 14,319,014 
Book value per common share (1)
$25.39 $24.80 $24.46 $23.87 
TCE per common share (2)
$20.55 $19.95 $19.62 $19.05 
Total loan to total deposit ratio
100.47 %101.90 %99.02 %99.19 %
Noninterest-bearing deposits to total deposits
21.96 %22.59 %25.29 %27.87 %
(1)The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company did not have any intangible equity components for the presented periods.
(2)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
13

PCB Bancorp and Subsidiary
Consolidated Statements of Income (Unaudited)
($ in thousands, except share and per share data)
Three Months Ended
Nine Months Ended
9/30/20246/30/2024% Change9/30/2023% Change9/30/20249/30/2023% Change
Interest and dividend income
Loans, including fees$42,115 $40,626 3.7 %$34,651 21.5 %$121,992 $98,840 23.4 %
Investment securities1,384 1,310 5.6 %1,170 18.3 %3,940 3,408 15.6 %
Other interest-earning assets2,499 3,009 (16.9)%3,031 (17.6)%8,566 7,978 7.4 %
Total interest income45,998 44,945 2.3 %38,852 18.4 %134,498 110,226 22.0 %
Interest expense
Deposits23,057 22,536 2.3 %16,403 40.6 %67,560 43,437 55.5 %
Other borrowings222 674 (67.1)%— NM1,485 209 610.5 %
Total interest expense
23,279 23,210 0.3 %16,403 41.9 %69,045 43,646 58.2 %
Net interest income
22,719 21,735 4.5 %22,449 1.2 %65,453 66,580 (1.7)%
Provision (reversal) for credit losses50 259 (80.7)%751 (93.3)%1,399 (1,830)NM
Net interest income after provision (reversal) for credit losses22,669 21,476 5.6 %21,698 4.5 %64,054 68,410 (6.4)%
Noninterest income
Gain on sale of loans
750 763 (1.7)%689 8.9 %2,591 2,767 (6.4)%
Service charges and fees on deposits
399 364 9.6 %371 7.5 %1,141 1,084 5.3 %
Loan servicing income
786 799 (1.6)%851 (7.6)%2,504 2,579 (2.9)%
Bank-owned life insurance income239 236 1.3 %187 27.8 %703 551 27.6 %
Other income
446 323 38.1 %404 10.4 %1,111 1,199 (7.3)%
Total noninterest income
2,620 2,485 5.4 %2,502 4.7 %8,050 8,180 (1.6)%
Noninterest expense
Salaries and employee benefits
8,801 9,225 (4.6)%8,572 2.7 %27,244 26,175 4.1 %
Occupancy and equipment
2,261 2,300 (1.7)%1,964 15.1 %6,919 5,779 19.7 %
Professional fees
599 973 (38.4)%685 (12.6)%2,656 2,189 21.3 %
Marketing and business promotion
667 318 109.7 %980 (31.9)%1,304 1,555 (16.1)%
Data processing
397 495 (19.8)%367 8.2 %1,294 1,159 11.6 %
Director fees and expenses
226 221 2.3 %152 48.7 %679 549 23.7 %
Regulatory assessments
309 327 (5.5)%281 10.0 %934 818 14.2 %
Other expense1,342 1,316 2.0 %1,206 11.3 %5,099 3,364 51.6 %
Total noninterest expense
14,602 15,175 (3.8)%14,207 2.8 %46,129 41,588 10.9 %
Income before income taxes
10,687 8,786 21.6 %9,993 6.9 %25,975 35,002 (25.8)%
Income tax expense
2,873 2,505 14.7 %2,970 (3.3)%7,195 10,205 (29.5)%
Net income
7,814 6,281 24.4 %7,023 11.3 %18,780 24,797 (24.3)%
Preferred stock dividends346 142 143.7 %— NM488 — NM
Net income available to common shareholders$7,468 $6,139 21.6 %$7,023 6.3 %$18,292 $24,797 (26.2)%
Earnings per common share
Basic
$0.52 $0.43 $0.49 $1.28 $1.73 
Diluted
$0.52 $0.43 $0.49 $1.27 $1.71 
Average common shares
Basic
14,241,014 14,237,083 14,294,802 14,237,851 14,327,930 
Diluted
14,356,384 14,312,949 14,396,216 14,328,510 14,441,960 
Dividend paid per common share
$0.18 $0.18 $0.18 $0.54 $0.51 
Return on average assets (1)
1.08 %0.89 %1.09 %0.88 %1.32 %
Return on average shareholders’ equity (1)
8.70 %7.19 %8.12 %7.11 %9.77 %
Return on average TCE (1), (2)
10.31 %8.75 %10.17 %8.61 %12.27 %
Efficiency ratio (3)
57.63 %62.65 %56.94 %62.76 %55.63 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
(3)The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
14

PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
Three Months Ended
9/30/20246/30/20249/30/2023
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$2,456,015 $42,115 6.82 %$2,414,824 $40,626 6.77 %$2,137,184 $34,651 6.43 %
Mortgage-backed securities
111,350 1,000 3.57 %104,538 911 3.50 %98,534 750 3.02 %
Collateralized mortgage obligation
22,661 244 4.28 %22,992 249 4.36 %24,959 262 4.16 %
SBA loan pool securities
6,571 69 4.18 %6,891 74 4.32 %7,842 81 4.10 %
Municipal bonds (2)
2,698 24 3.54 %3,238 29 3.60 %3,602 30 3.30 %
Corporate bonds4,248 47 4.40 %4,157 47 4.55 %4,056 47 4.60 %
Other interest-earning assets
175,711 2,499 5.66 %213,428 3,009 5.67 %219,115 3,031 5.49 %
Total interest-earning assets
2,779,254 45,998 6.58 %2,770,068 44,945 6.53 %2,495,292 38,852 6.18 %
Noninterest-earning assets
Cash and due from banks24,098 23,057 21,298 
ACL on loans(28,797)(28,372)(24,869)
Other assets
92,152 88,399 71,512 
Total noninterest-earning assets
87,453 83,084 67,941 
Total assets
$2,866,707 $2,853,152 $2,563,233 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$496,158 5,129 4.11 %$473,557 4,876 4.14 %$481,341 4,398 3.62 %
Savings
6,204 4 0.26 %6,899 4 0.23 %7,197 4 0.22 %
Time deposits
1,390,644 17,924 5.13 %1,383,167 17,656 5.13 %1,073,044 12,001 4.44 %
Total interest-bearing deposits
1,893,006 23,057 4.85 %1,863,623 22,536 4.86 %1,561,582 16,403 4.17 %
Other borrowings15,848 222 5.57 %48,462 674 5.59 %— — — %
Total interest-bearing liabilities
1,908,854 23,279 4.85 %1,912,085 23,210 4.88 %1,561,582 16,403 4.17 %
Noninterest-bearing liabilities
Noninterest-bearing demand
534,761 535,508 626,738 
Other liabilities
65,716 54,338 31,769 
Total noninterest-bearing liabilities
600,477 589,846 658,507 
Total liabilities
2,509,331 2,501,931 2,220,089 
Total shareholders’ equity
357,376 351,221 343,144 
Total liabilities and shareholders’ equity
$2,866,707 $2,853,152 $2,563,233 
Net interest income
$22,719 $21,735 $22,449 
Net interest spread (3)
1.73 %1.65 %2.01 %
Net interest margin (4)
3.25 %3.16 %3.57 %
Total deposits
$2,427,767 $23,057 3.78 %$2,399,131 $22,536 3.78 %$2,188,320 $16,403 2.97 %
Total funding (5)
$2,443,615 $23,279 3.79 %$2,447,593 $23,210 3.81 %$2,188,320 $16,403 2.97 %
(1)Total loans include both loans held-for-sale and loans held-for-investment.
(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
(6)Annualized.


15

PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
Nine Months Ended
9/30/20249/30/2023
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$2,413,777 $121,992 6.75 %$2,102,600 $98,840 6.29 %
Mortgage-backed securities
105,933 2,750 3.47 %98,364 2,146 2.92 %
Collateralized mortgage obligation
23,137 747 4.31 %25,970 780 4.02 %
SBA loan pool securities
6,925 221 4.26 %8,406 244 3.88 %
Municipal bonds (2)
3,077 81 3.52 %4,017 97 3.23 %
Corporate bonds4,211 141 4.47 %4,300 141 4.38 %
Other interest-earning assets
201,951 8,566 5.67 %206,720 7,978 5.16 %
Total interest-earning assets
2,759,011 134,498 6.51 %2,450,377 110,226 6.01 %
Noninterest-earning assets
Cash and due from banks22,845 21,069 
ACL on loans(28,251)(25,438)
Other assets
89,784 72,616 
Total noninterest-earning assets
84,378 68,247 
Total assets
$2,843,389 $2,518,624 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$474,584 14,670 4.13 %$477,605 11,772 3.30 %
Savings
6,432 12 0.25 %7,684 14 0.24 %
Time deposits
1,380,379 52,878 5.12 %1,015,234 31,651 4.17 %
Total interest-bearing deposits
1,861,395 67,560 4.85 %1,500,523 43,437 3.87 %
Other borrowings35,427 1,485 5.60 %5,212 209 5.36 %
Total interest-bearing liabilities
1,896,822 69,045 4.86 %1,505,735 43,646 3.88 %
Noninterest-bearing liabilities
Noninterest-bearing demand
537,682 647,258 
Other liabilities
56,019 26,208 
Total noninterest-bearing liabilities
593,701 673,466 
Total liabilities
2,490,523 2,179,201 
Total shareholders’ equity
352,866 339,423 
Total liabilities and shareholders’ equity
$2,843,389 $2,518,624 
Net interest income
$65,453 $66,580 
Net interest spread (3)
1.65 %2.13 %
Net interest margin (4)
3.17 %3.63 %
Total deposits
$2,399,077 $67,560 3.76 %$2,147,781 $43,437 2.70 %
Total funding (5)
$2,434,504 $69,045 3.79 %$2,152,993 $43,646 2.71 %
(1)Total loans include both loans held-for-sale and loans held-for-investment.
(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
(6)Annualized.



16

PCB Bancorp and Subsidiary
Non-GAAP Measures
($ in thousands)
Return on average tangible common equity, tangible common equity per common share and tangible common equity to total assets ratios
The Company's TCE is calculated by subtracting preferred stock from shareholders’ equity. The Company does not have any intangible assets for the presented periods. Return on average TCE, TCE per common share, and TCE to total assets constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. These non-GAAP measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP measures with financial measures defined by GAAP.
($ in thousands)
Three Months Ended
Nine Months Ended
9/30/20246/30/20249/30/20239/30/20249/30/2023
Average total shareholders' equity(a)$357,376 $351,221 $343,144 $352,866 $339,423 
Less: average preferred stock(b)69,141 69,141 69,141 69,141 69,141 
Average TCE(c)=(a)-(b)$288,235 $282,080 $274,003 $283,725 $270,282 
Net income(d)$7,814 $6,281 $7,023 $18,780 $24,797 
Return on average shareholder's equity (1)
(d)/(a)8.70 %7.19 %8.12 %7.11 %9.77 %
Net income available to common shareholders(e)$7,468 $6,139 $7,023 $18,292 $24,797 
Return on average TCE (1)
(e)/(c)10.31 %8.75 %10.17 %8.61 %12.27 %
(1) Annualized.
($ in thousands, except per share data)9/30/20246/30/202412/31/20239/30/2023
Total shareholders' equity(a)$362,300 $353,469 $348,872 $341,852 
Less: preferred stock(b)69,141 69,141 69,141 69,141 
TCE(c)=(a)-(b)$293,159 $284,328 $279,731 $272,711 
Outstanding common shares
(d)14,266,725 14,254,024 14,260,440 14,319,014 
Book value per common share(a)/(d)$25.39 $24.80 $24.46 $23.87 
TCE per common share(c)/(d)$20.55 $19.95 $19.62 $19.05 
Total assets(e)$2,889,833 $2,852,964 $2,789,506 $2,567,974 
Total shareholders' equity to total assets(a)/(e)12.54 %12.39 %12.51 %13.31 %
TCE to total assets(c)/(e)10.14 %9.97 %10.03 %10.62 %
17