EX-99.1 2 pcbpr20250130earnings.htm EX-99.1 Document

Exhibit 99.1
pcbbancorp.jpg
PCB Bancorp Reports Earnings for Q4 2024 and Full Year 2024
Los Angeles, California - January 30, 2025 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $6.7 million, or $0.46 per diluted common share, for the fourth quarter of 2024, compared with $7.5 million, or $0.52 per diluted common share, for the previous quarter and $5.9 million, or $0.41 per diluted common share, for the year-ago quarter. For 2024, net income available to common shareholders was $25.0 million, or $1.74 per diluted common share, compared with $30.7 million, or $2.12 per diluted common share, for the previous year.
Q4 2024 and Full Year Highlights
•Net income available to common shareholders totaled $6.7 million, or $0.46 per diluted common share, for the current quarter and $25.0 million, or $1.74 per diluted common share, for the current year;
•Provision for credit losses was $2.0 million for the current quarter compared with $50 thousand for the previous quarter and $1.7 million for the year-ago quarter. For the current year, provision (reversal) for credit losses was $3.4 million compared with $(132) thousand for the previous year;
•Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.16% at December 31, 2024 compared with 1.17% at September 30, 2024 and 1.19% at December 31, 2023;
•Net interest income was $23.2 million for the current quarter compared with $22.7 million for the previous quarter and $21.9 million for the year-ago quarter. Net interest margin was 3.18% for the current quarter compared with 3.25% for the previous quarter and 3.40% for the year-ago quarter. For the current year, net interest income and net interest margin were $88.6 million and 3.17%, respectively, compared with $88.5 million and 3.57%, respectively, for the previous year;
•Gain on sale of loans was $1.2 million for the current quarter compared with $750 thousand for the previous quarter and $803 thousand for the year-ago quarter. For the current year, gain on sale of loans was $3.8 million compared with $3.6 million for the previous year;
•Total assets were $3.06 billion at December 31, 2024, an increase of $174.1 million, or 6.0%, from $2.89 billion at September 30, 2024 and an increase of $274.5 million, or 9.8%, from $2.79 billion at December 31, 2023;
•Loans held-for-investment were $2.63 billion at December 31, 2024, an increase of $163.2 million, or 6.6%, from $2.47 billion at September 30, 2024 and an increase of $305.9 million, or 13.2%, from $2.32 billion at December 31, 2023; and
•Total deposits were $2.62 billion at December 31, 2024, an increase of $156.1 million, or 6.3%, from $2.46 billion at September 30, 2024 and an increase of $264.2 million, or 11.2%, from $2.35 billion at December 31, 2023.
Henry Kim, President and CEO, commented, “Over the past few weeks, we are saddened by the unspeakable devastation caused by the wildfires in Southern California. We are currently in the process of determining the overall impact on our customers. Fortunately, our assessment of the current situation does not indicate any significant losses to any of our customers at this time.”
Mr. Kim continued, “Our strong fourth quarter results reflect strong loan growth combined with another solid credit metrics. Additionally, we successfully maintained an efficiency ratio of 53% for the quarter that was primarily driven by our bank-wide cost saving measures and ongoing branch network optimizations.”
“During the past couple of years, we made significant steps in strengthening our balance sheet and core earnings capacity. As we look ahead in 2025 and beyond, we believe we are well positioned to generate further growth in balance sheet, continue to operate efficiently while expanding our branch network, and expand profitability to create ongoing value for our shareholders.”
1

Financial Highlights (Unaudited)
($ in thousands, except per share data)
Three Months Ended
Year Ended
12/31/20249/30/2024
% Change
12/31/2023
% Change
12/31/202412/31/2023% Change
Net income$7,030 $7,814 (10.0)%$5,908 19.0 %$25,810 $30,705 (15.9)%
Net income available to common shareholders$6,684 $7,468 (10.5)%$5,908 13.1 %$24,976 $30,705 (18.7)%
Diluted earnings per common share$0.46 $0.52 (11.5)%$0.41 12.2 %$1.74 $2.12 (17.9)%
Net interest income$23,164 $22,719 2.0 %$21,924 5.7 %$88,617 $88,504 0.1 %
Provision (reversal) for credit losses2,002 50 3,904.0 %1,698 17.9 %3,401 (132)NM
Noninterest income3,043 2,620 16.1 %2,503 21.6 %11,093 10,683 3.8 %
Noninterest expense13,894 14,602 (4.8)%14,469 (4.0)%60,023 56,057 7.1 %
Return on average assets (1)
0.94 %1.08 %0.89 %0.90 %1.20 %
Return on average shareholders’ equity (1)
7.69 %8.70 %6.82 %7.26 %9.02 %
Return on average tangible common equity (“TCE”) (1),(2)
9.02 %10.31 %8.54 %8.72 %11.31 %
Net interest margin (1)
3.18 %3.25 %3.40 %3.17 %3.57 %
Efficiency ratio (3)
53.02 %57.63 %59.23 %60.20 %56.52 %
($ in thousands, except per share data)12/31/20249/30/2024% Change12/31/2023% Change
Total assets
$3,063,971 $2,889,833 6.0 %$2,789,506 9.8 %
Net loans held-for-investment
2,598,759 2,437,244 6.6 %2,295,919 13.2 %
Total deposits
2,615,791 2,459,682 6.3 %2,351,612 11.2 %
Book value per common share (4)
$25.30 $25.39 $24.46 
TCE per common share (2)
$20.49 $20.55 $19.62 
Tier 1 leverage ratio (consolidated)
12.45 %12.79 %13.43 %
Total shareholders’ equity to total assets11.87 %12.54 %12.51 %
TCE to total assets (2), (5)
9.62 %10.14 %10.03 %
(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
Year Ended
($ in thousands)12/31/20249/30/2024
% Change
12/31/2023% Change12/31/202412/31/2023% Change
Interest income/expense on
Loans
$42,309 $42,115 0.5 %$37,189 13.8 %$164,301 $136,029 20.8 %
Investment securities
1,388 1,384 0.3 %1,271 9.2 %5,328 4,679 13.9 %
Other interest-earning assets
2,622 2,499 4.9 %2,491 5.3 %11,188 10,469 6.9 %
Total interest-earning assets
46,319 45,998 0.7 %40,951 13.1 %180,817 151,177 19.6 %
Interest-bearing deposits
22,927 23,057 (0.6)%18,728 22.4 %90,487 62,165 45.6 %
Borrowings
228 222 2.7 %299 (23.7)%1,713 508 237.2 %
Total interest-bearing liabilities
23,155 23,279 (0.5)%19,027 21.7 %92,200 62,673 47.1 %
Net interest income
$23,164 $22,719 2.0 %$21,924 5.7 %$88,617 $88,504 0.1 %
Average balance of
Loans
$2,538,310 $2,456,015 3.4 %$2,242,457 13.2 %$2,445,080 $2,137,851 14.4 %
Investment securities
147,943 147,528 0.3 %139,227 6.3 %144,455 140,596 2.7 %
Other interest-earning assets
207,234 175,711 17.9 %175,336 18.2 %203,279 198,809 2.2 %
Total interest-earning assets
$2,893,487 $2,779,254 4.1 %$2,557,020 13.2 %$2,792,814 $2,477,256 12.7 %
Interest-bearing deposits
$1,986,901 $1,893,006 5.0 %$1,650,132 20.4 %$1,892,944 $1,538,234 23.1 %
Borrowings
17,946 15,848 13.2 %21,000 (14.5)%31,033 9,192 237.6 %
Total interest-bearing liabilities
$2,004,847 $1,908,854 5.0 %$1,671,132 20.0 %$1,923,977 $1,547,426 24.3 %
Total funding (1)
$2,548,818 $2,443,615 4.3 %$2,249,026 13.3 %$2,463,240 $2,177,200 13.1 %
Annualized average yield/cost of 
Loans
6.63 %6.82 %6.58 %6.72 %6.36 %
Investment securities
3.73 %3.73 %3.62 %3.69 %3.33 %
Other interest-earning assets
5.03 %5.66 %5.64 %5.50 %5.27 %
Total interest-earning assets6.37 %6.58 %6.35 %6.47 %6.10 %
Interest-bearing deposits
4.59 %4.85 %4.50 %4.78 %4.04 %
Borrowings
5.05 %5.57 %5.65 %5.52 %5.53 %
Total interest-bearing liabilities4.59 %4.85 %4.52 %4.79 %4.05 %
Net interest margin3.18 %3.25 %3.40 %3.17 %3.57 %
Cost of total funding (1)
3.61 %3.79 %3.36 %3.74 %2.88 %
Supplementary information
Net accretion of discount on loans$645 $773 (16.6)%$806 (20.0)%$2,782 $3,003 (7.4)%
Net amortization of deferred loan fees$295 $246 19.9 %$449 (34.3)%$1,214 $1,097 10.7 %
(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 decrease in average yield for the current quarter compared with the previous quarter was primarily due to a decrease in market rates. The Federal Open Market Committee decreased the Fed Funds rate by 50 bps, 25bps, and 25bps on September 18, November 7, and December 18, 2024, respectively. The increase for the current year was primarily due to increases in average interest rates on loans and net amortization of deferred loan fees, partially offset by the decrease in market interest rates during the second half of 2024.
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:
12/31/20249/30/202412/31/2023
% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate
Fixed rate loans
17.4 %5.23 %18.3 %5.06 %21.2 %4.86 %
Hybrid rate loans
37.3 %5.27 %37.6 %5.14 %39.0 %4.93 %
Variable rate loans
45.3 %7.63 %44.1 %8.10 %39.8 %8.51 %
Investment Securities. The increases in average yield for the current quarter and year compared with the same periods of 2023 were primarily due to higher yields on newly purchased investment securities and a decrease in net amortization of premium.
Other Interest-Earning Assets. The decrease in average yield for the current quarter compared with the previous and year-ago quarters was primarily due to a decrease in average interest rate on cash held at the Federal Reserve Bank (“FRB”), partially offset by an increase in dividends received on Federal Home Loan Bank (“FHLB”) stock. The increase for the current year was primarily due to increases in average interest rate on cash held at the FRB and dividends received on FHLB stock.
Interest-Bearing Deposits. The decrease in average cost for the current quarter compared with the previous was primarily due to a decrease in market rates. The increases in average cost for the current quarter and year compared with the same periods of 2023 were primarily due to increases in market rates throughout 2024.
Provision (Reversal) for Credit Losses
The following table presents a composition of provision (reversal) for credit losses for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20249/30/2024
% Change
12/31/2023
% Change
12/31/202412/31/2023
% Change
Provision for credit losses on loans$2,044 $193 959.1 %$1,935 5.6 %$3,488 $497 601.8 %
Reversal for credit losses on off-balance sheet credit exposure(42)(143)(70.6)%(237)(82.3)%(87)(629)(86.2)%
Total provision (reversal) for credit losses$2,002 $50 3,904.0 %$1,698 17.9 %$3,401 $(132)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
Year Ended
($ in thousands)12/31/20249/30/2024
% Change
12/31/2023
% Change
12/31/202412/31/2023
% Change
Gain on sale of loans
$1,161 $750 54.8 %$803 44.6 %$3,752 $3,570 5.1 %
Service charges and fees on deposits
404 399 1.3 %391 3.3 %1,545 1,475 4.7 %
Loan servicing income
861 786 9.5 %751 14.6 %3,365 3,330 1.1 %
Bank-owned life insurance income246 239 2.9 %202 21.8 %949 753 26.0 %
Other income
371 446 (16.8)%356 4.2 %1,482 1,555 (4.7)%
Total noninterest income
$3,043 $2,620 16.1 %$2,503 21.6 %$11,093 $10,683 3.8 %
Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20249/30/2024% Change12/31/2023% Change12/31/202412/31/2023% Change
Gain on sale of SBA loans
Sold loan balance
$24,518 $13,506 81.5 %$20,751 18.2 %$71,057 $82,343 (13.7)%
Premium received
1,910 1,185 61.2 %1,250 52.8 %5,747 5,612 2.4 %
Gain recognized
1,161 750 54.8 %803 44.6 %3,752 3,570 5.1 %
Gain on sale of residential mortgage loans
Sold loan balance
$— $676 (100.0)%$— — %$676 $— NM
Gain recognized
— — — %— — %— — — %
Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20249/30/2024
% Change
12/31/2023
% Change
12/31/202412/31/2023
% Change
Loan servicing income
Servicing income received
$1,255 $1,264 (0.7)%$1,290 (2.7)%$5,130 $5,212 (1.6)%
Servicing assets amortization
(394)(478)(17.6)%(539)(26.9)%(1,765)(1,882)(6.2)%
Loan servicing income$861 $786 9.5 %$751 14.6 %$3,365 $3,330 1.1 %
Underlying loans at end of period
$523,797 $527,062 (0.6)%$532,231 (1.6)%$523,797 $532,231 (1.6)%
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
Year Ended
($ in thousands)12/31/20249/30/2024% Change12/31/2023% Change12/31/202412/31/2023% Change
Salaries and employee benefits
$8,417 $8,801 (4.4)%$8,397 0.2 %$35,661 $34,572 3.1 %
Occupancy and equipment
2,198 2,261 (2.8)%2,145 2.5 %9,117 7,924 15.1 %
Professional fees
752 599 25.5 %898 (16.3)%3,408 3,087 10.4 %
Marketing and business promotion
582 667 (12.7)%772 (24.6)%1,886 2,327 (19.0)%
Data processing
205 397 (48.4)%393 (47.8)%1,499 1,552 (3.4)%
Director fees and expenses
227 226 0.4 %207 9.7 %906 756 19.8 %
Regulatory assessments
322 309 4.2 %285 13.0 %1,256 1,103 13.9 %
Other expense1,191 1,342 (11.3)%1,372 (13.2)%6,290 4,736 32.8 %
Total noninterest expense
$13,894 $14,602 (4.8)%$14,469 (4.0)%$60,023 $56,057 7.1 %
Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to decreases in salaries and vacation accruals and an increase in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense. The increase for the current year was primarily due to increases in salaries, bonus accrual, and incentives tied to sales of SBA loans originated at loan production offices, partially offset by a decrease in vacation accrual. The number of full-time equivalent employees was 262, 264 and 270 as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
Occupancy and Equipment. The increases for the current quarter and year 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 in 2024.
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 decrease for the current quarter compared with the previous and year-ago quarters were primarily due to a decrease in advertisements. The decrease for the current year compared to 2023 was primarily due to a higher, nonrecurring volume of advertisements in 2023 related to the Company’s 20th anniversary celebration.
Data processing. The decrease for the current quarter and year compared with the same periods of 2023 were primarily due to one-time new relationship credit from the core system conversion completed in April 2024.
Other Expense. The increase for the year 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 second quarter of 2024. The Company has retained a law firm specializing in SBA recovery and intends to seek that SBA reconsider its decision so that the Company may recoup all or part of the reimbursement.
6

Balance Sheet (Unaudited)
Total assets were $3.06 billion at December 31, 2024, an increase of $174.1 million, or 6.0%, from $2.89 billion at September 30, 2024 and an increase of $274.5 million, or 9.8%, from $2.79 billion at December 31, 2023. The increases for the current quarter and year were primarily due to increases in loans held-for-investment and deferred tax assets.
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:
($ in thousands)12/31/20249/30/2024% Change12/31/2023% Change
Commercial real estate:
Commercial property$940,931 $874,824 7.6 %$855,270 10.0 %
Business property595,547 579,461 2.8 %558,772 6.6 %
Multifamily194,220 185,485 4.7 %132,500 46.6 %
Construction21,854 21,150 3.3 %24,843 (12.0)%
Total commercial real estate1,752,552 1,660,920 5.5 %1,571,385 11.5 %
Commercial and industrial472,763 407,024 16.2 %342,002 38.2 %
Consumer:
Residential mortgage392,456 383,377 2.4 %389,420 0.8 %
Other consumer11,616 14,853 (21.8)%20,645 (43.7)%
Total consumer404,072 398,230 1.5 %410,065 (1.5)%
Loans held-for-investment2,629,387 2,466,174 6.6 %2,323,452 13.2 %
Loans held-for-sale6,292 5,170 21.7 %5,155 22.1 %
Total loans
$2,635,679 $2,471,344 6.6 %$2,328,607 13.2 %
SBA loans included in:
Loans held-for-investment$146,940 $142,819 2.9 %$145,603 0.9 %
Loans held-for-sale$6,292 $5,170 21.7 %$5,155 22.1 %
The increase in loans held-for-investment for the current quarter was primarily due to new funding of term loans of $189.9 million and net increase of lines of credit of $57.6 million, partially offset by pay-downs and pay-offs of term loans of $83.8 million and charge-offs of $395 thousand. The increase for the current year was primarily due to new funding of term loans of $411.6 million and net increase of lines of credit of $163.6 million, partially offset by pay-downs and pay-offs of term loans of $267.8 million, charge-offs of $691 thousand, a loan transferred to loans held-for-sale of $676 thousand, and a loan transferred to OREO of $94 thousand.
The increase in loans held-for-sale for the current quarter was primarily due to new funding of $25.6 million, partially offset by sales of $24.5 million and pay-downs of $7 thousand. The increase for the current year was primarily due to new funding of $74.0 million and a loan transferred from loan held-for-investment of $676 thousand, partially offset by sales of $71.7 million and pay-downs of $1.8 million.


7

The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:
($ in thousands)12/31/20249/30/2024% Change12/31/2023% Change
Commercial property$8,888 $3,291 170.1 %$11,634 (23.6)%
Business property11,058 12,441 (11.1)%9,899 11.7 %
Multifamily— — — %1,800 (100.0)%
Construction14,423 17,810 (19.0)%23,739 (39.2)%
Commercial and industrial364,731 394,428 (7.5)%351,025 3.9 %
Other consumer1,475 5,590 (73.6)%3,421 (56.9)%
Total commitments to extend credit400,575 433,560 (7.6)%401,518 (0.2)%
Letters of credit6,795 6,673 1.8 %6,583 3.2 %
Total off-balance sheet credit exposure$407,370 $440,233 (7.5)%$408,101 (0.2)%
Credit Quality
The following table presents a summary of non-performing loans and assets, and classified assets as of the dates indicated:
($ in thousands)12/31/20249/30/2024% Change12/31/2023% Change
Nonaccrual loans
Commercial real estate:
Commercial property$1,851 $1,633 13.3 %$958 93.2 %
Business property2,336 2,367 (1.3)%2,865 (18.5)%
Multifamily— 2,038 (100.0)%— — %
Total commercial real estate4,187 6,038 (30.7)%3,823 9.5 %
Commercial and industrial79 124 (36.3)%68 16.2 %
Consumer:
Residential mortgage403 414 (2.7)%— NM
Other consumer24 38 (36.8)%25 (4.0)%
Total consumer427 452 (5.5)%25 1,608.0 %
Total nonaccrual loans held-for-investment
4,693 6,614 (29.0)%3,916 19.8 %
Loans past due 90 days or more and still accruing
— — — %— — %
Non-performing loans (“NPLs”) 4,693 6,614 (29.0)%3,916 19.8 %
NPLs held-for-sale— — — %— — %
Total NPLs4,693 6,614 (29.0)%3,916 19.8 %
Other real estate owned (“OREO”)
— 466 (100.0)%2,558 (100.0)%
Non-performing assets (“NPAs”)
$4,693 $7,080 (33.7)%$6,474 (27.5)%
Loans past due and still accruing
Past due 30 to 59 days
$4,599 $2,973 54.7 %$1,394 229.9 %
Past due 60 to 89 days
303 21 1,342.9 %34 791.2 %
Past due 90 days or more
— — — %— — %
Total loans past due and still accruing
$4,902 $2,994 63.7 %$1,428 243.3 %
Special mention loans$5,034 $5,057 (0.5)%$5,156 (2.4)%
Classified assets
Classified loans held-for-investment$6,930 $8,860 (21.8)%$7,000 (1.0)%
Classified loans held-for-sale— — — %— — %
OREO
— 466 (100.0)%2,558 (100.0)%
Classified assets
$6,930 $9,326 (25.7)%$9,558 (27.5)%
NPLs to loans held-for-investment0.18 %0.27 %0.17 %
NPAs to total assets
0.15 %0.24 %0.23 %
Classified assets to total assets
0.23 %0.32 %0.34 %


8

Allowance for Credit Losses
The following table presents activities in ACL for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20249/30/2024% Change12/31/2023% Change12/31/202412/31/2023% Change
ACL on loans
Balance at beginning of period$28,930 $28,747 0.6 %$25,599 13.0 %$27,533 $24,942 10.4 %
Impact of ASC 326 adoption— — NM— NM— 1,067 NM
Charge-offs(395)(111)255.9 %(13)2,938.5 %(691)(132)423.5 %
Recoveries49 101 (51.5)%12 308.3 %298 1,159 (74.3)%
Provision for credit losses on loans2,044 193 959.1 %1,935 5.6 %3,488 497 601.8 %
Balance at end of period$30,628 $28,930 5.9 %$27,533 11.2 %$30,628 $27,533 11.2 %
Percentage to loans held-for-investment at end of period1.16 %1.17 %1.19 %1.16 %1.19 %
ACL on off-balance sheet credit exposure
Balance at beginning of period$1,232 $1,375 (10.4)%$1,514 (18.6)%$1,277 $299 327.1 %
Impact of ASC 326 adoption— — NM— NM— 1,607 NM
Reversal for credit losses on off-balance sheet credit exposure(42)(143)(70.6)%(237)(82.3)%(87)(629)(86.2)%
Balance at end of period$1,190 $1,232 (3.4)%$1,277 (6.8)%$1,190 $1,277 (6.8)%
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 $146.3 million at December 31, 2024, a decrease of $1.3 million, or 0.9%, from $147.6 million at September 30, 2024, but an increase of $3.0 million, or 2.1%, from $143.3 million at December 31, 2023. The decrease for the current quarter was primarily due to principal pay-downs of $5.9 million, net premium amortization of $36 thousand, and a fair value decrease of $4.1 million, partially offset by purchases of $8.7 million. The increase for the current year was primarily due to purchases of $23.5 million, partially offset by principal pay-downs of $19.8 million, net premium amortization of $159 thousand and a fair value decrease of $541 thousand.


9

Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
12/31/20249/30/202412/31/2023
($ in thousands)Amount% to TotalAmount% to TotalAmount% to Total
Noninterest-bearing demand deposits
$547,853 20.9 %$540,068 22.0 %$594,673 25.3 %
Interest-bearing deposits
Savings
5,765 0.2 %5,718 0.2 %6,846 0.3 %
NOW
13,761 0.5 %15,873 0.6 %16,825 0.7 %
Retail money market accounts
447,360 17.1 %470,347 19.1 %397,531 16.8 %
Brokered money market accounts
1 0.1 %1 0.1 %1 0.1 %
Retail time deposits of
$250,000 or less
493,644 18.9 %492,430 20.0 %456,293 19.4 %
More than $250,000
605,124 23.1 %580,166 23.6 %515,702 21.9 %
State and brokered time deposits
502,283 19.2 %355,079 14.4 %363,741 15.5 %
Total interest-bearing deposits
2,067,938 79.1 %1,919,614 78.0 %1,756,939 74.7 %
Total deposits
$2,615,791 100.0 %$2,459,682 100.0 %$2,351,612 100.0 %
Estimated total deposits not covered by deposit insurance$1,036,451 39.6 %$1,042,366 42.4 %$954,591 40.6 %
Total retail deposits were $2.11 billion at December 31, 2024, an increase of $8.9 million, or 0.4%, from $2.10 billion at September 30, 2024 and an increase of $125.6 million, or 6.3%, from $1.99 billion at December 31, 2023.
The increase in retail time deposits for the current quarter was primarily due to new accounts of $94.7 million, renewals of the matured accounts of $338.2 million and balance increases of $15.7 million, partially offset by matured and closed accounts of $422.5 million. The increase for the current year was primarily due to new accounts of $367.4 million, renewals of the matured accounts of $898.6 million and balance increases of $44.1 million, partially offset by matured and closed accounts of $1.18 billion.
Liquidity
The following table presents a summary of the Company’s liquidity position as of the dates indicated:
($ in thousands)12/31/202412/31/2023% Change
Cash and cash equivalents
$198,792 $242,342 (18.0)%
Cash and cash equivalents to total assets
6.5 %8.7 %
Available borrowing capacity
FHLB advances
$722,439 $602,976 19.8 %
Federal Reserve Discount Window
586,525 528,893 10.9 %
Overnight federal funds lines
50,000 65,000 (23.1)%
Total
$1,358,964 $1,196,869 13.5 %
Total available borrowing capacity to total assets
44.4 %42.9 %
10

Shareholders’ Equity
Shareholders’ equity was $363.8 million at December 31, 2024, an increase of $1.5 million, or 0.4%, from $362.3 million at September 30, 2024 and an increase of $14.9 million, or 4.3%, from $348.9 million at December 31, 2023. The increase for the current quarter was primarily due to net income and proceeds from stock option exercises of $143 thousand, partially offset by an increase in accumulated other comprehensive loss of $2.9 million, cash dividends declared on common stock of $2.6 million and preferred stock dividends of $346 thousand. The increase for the current year was primarily due to net income and proceeds from stock option exercises of $353 thousand, partially offset by an increase in accumulated other comprehensive loss of $395 thousand, cash dividends declared on common stock of $10.3 million, preferred stock dividends of $834 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. In 2024, the Company repurchased and retired 14,947 shares of common stock at a weighted-average price of $14.88, totaling $222 thousand. As of December 31, 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 is 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 $834 thousand for the current quarter and year, respectively.
Capital Ratios
Historically, the Company has operated under the Federal Reserve’s Small Bank Holding Company Policy Statement, which exempts bank holding companies with total consolidated assets of less than $3.0 billion from the Federal Reserve’s risk-based- and leverage consolidated capital requirements. Because the Company’s total consolidated assets exceeded $3.0 billion as December 31, 2024, the Company is now subject to the Federal Reserve’s consolidated capital requirements. A bank holding company that crosses the $3.0 billion total consolidated assets threshold as of June 30 of a particular year is no longer permitted to file Federal Reserve reports as a small holding company beginning the following March. If the Company’s total assets exceed $3.0 billion as of June 30, 2025, the Company will not be eligible to file financial reports with the Federal Reserve as a small bank holding company beginning in March 2026. The following table presents capital ratios for the Company and the Bank as of the dates indicated:
12/31/20249/30/202412/31/2023Well Capitalized Minimum Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)
11.44 %11.92 %12.23 %N/A
Total capital (to risk-weighted assets)
15.24 %15.88 %16.39 %N/A
Tier 1 capital (to risk-weighted assets)
14.04 %14.68 %15.16 %N/A
Tier 1 capital (to average assets)
12.45 %12.79 %13.43 %N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)
13.72 %14.33 %14.85 %6.5 %
Total capital (to risk-weighted assets)
14.92 %15.54 %16.07 %10.0 %
Tier 1 capital (to risk-weighted assets)
13.72 %14.33 %14.85 %8.0 %
Tier 1 capital (to average assets)
12.16 %12.49 %13.16 %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 on the Company and its customers resulting from any adverse developments in real estate markets 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; litigation costs and outcomes; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, wildfires and other disasters, 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 without charge at the SEC’s website (http://www.sec.gov) and on the investor relations section of the Company’s website at www.mypcbbank.com. 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)
12/31/20249/30/2024% Change12/31/2023% Change
Assets
Cash and due from banks
$27,100 $29,981 (9.6)%$26,518 2.2 %
Interest-bearing deposits in other financial institutions171,692 163,083 5.3 %215,824 (20.4)%
Total cash and cash equivalents
198,792 193,064 3.0 %242,342 (18.0)%
Securities available-for-sale, at fair value
146,349 147,635 (0.9)%143,323 2.1 %
Loans held-for-sale
6,292 5,170 21.7 %5,155 22.1 %
Loans held-for-investment2,629,387 2,466,174 6.6 %2,323,452 13.2 %
Allowance for credit losses on loans(30,628)(28,930)5.9 %(27,533)11.2 %
Net loans held-for-investment
2,598,759 2,437,244 6.6 %2,295,919 13.2 %
Premises and equipment, net
8,280 8,414 (1.6)%5,999 38.0 %
Federal Home Loan Bank and other bank stock
14,042 14,042 — %12,716 10.4 %
Other real estate owned, net
— 466 (100.0)%2,558 (100.0)%
Bank-owned life insurance31,766 31,520 0.8 %30,817 3.1 %
Deferred tax assets, net
7,249 — NM— NM
Servicing assets
5,837 5,902 (1.1)%6,666 (12.4)%
Operating lease assets
17,254 17,932 (3.8)%18,913 (8.8)%
Accrued interest receivable
10,466 9,896 5.8 %9,468 10.5 %
Other assets
18,885 18,548 1.8 %15,630 20.8 %
Total assets
$3,063,971 $2,889,833 6.0 %$2,789,506 9.8 %
Liabilities
Deposits
Noninterest-bearing demand
$547,853 $540,068 1.4 %$594,673 (7.9)%
Savings, NOW and money market accounts
466,887 491,939 (5.1)%421,203 10.8 %
Time deposits of $250,000 or less
935,927 787,509 18.8 %760,034 23.1 %
Time deposits of more than $250,000
665,124 640,166 3.9 %575,702 15.5 %
Total deposits
2,615,791 2,459,682 6.3 %2,351,612 11.2 %
Other short-term borrowings15,000 — NM— NM
Federal Home Loan Bank advances
— — — %39,000 (100.0)%
Deferred tax liabilities, net— 1,168 (100.0)%876 (100.0)%
Operating lease liabilities
18,671 19,301 (3.3)%20,137 (7.3)%
Accrued interest payable and other liabilities
50,695 47,382 7.0 %29,009 74.8 %
Total liabilities
2,700,157 2,527,533 6.8 %2,440,634 10.6 %
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock69,141 69,141 — %69,141 — %
Common stock143,195 142,926 0.2 %142,563 0.4 %
Retained earnings
160,797 156,680 2.6 %146,092 10.1 %
Accumulated other comprehensive loss, net(9,319)(6,447)44.5 %(8,924)4.4 %
Total shareholders’ equity
363,814 362,300 0.4 %348,872 4.3 %
Total liabilities and shareholders’ equity
$3,063,971 $2,889,833 6.0 %$2,789,506 9.8 %
Outstanding common shares
14,380,651 14,266,725 14,260,440 
Book value per common share (1)
$25.30 $25.39 $24.46 
TCE per common share (2)
$20.49 $20.55 $19.62 
Total loan to total deposit ratio
100.76 %100.47 %99.02 %
Noninterest-bearing deposits to total deposits
20.94 %21.96 %25.29 %
(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
Year Ended
12/31/20249/30/2024% Change12/31/2023% Change12/31/202412/31/2023% Change
Interest and dividend income
Loans, including fees$42,309 $42,115 0.5 %$37,189 13.8 %$164,301 $136,029 20.8 %
Investment securities1,388 1,384 0.3 %1,271 9.2 %5,328 4,679 13.9 %
Other interest-earning assets2,622 2,499 4.9 %2,491 5.3 %11,188 10,469 6.9 %
Total interest income46,319 45,998 0.7 %40,951 13.1 %180,817 151,177 19.6 %
Interest expense
Deposits22,927 23,057 (0.6)%18,728 22.4 %90,487 62,165 45.6 %
Other borrowings228 222 2.7 %299 (23.7)%1,713 508 237.2 %
Total interest expense
23,155 23,279 (0.5)%19,027 21.7 %92,200 62,673 47.1 %
Net interest income
23,164 22,719 2.0 %21,924 5.7 %88,617 88,504 0.1 %
Provision (reversal) for credit losses2,002 50 3,904.0 %1,698 17.9 %3,401 (132)NM
Net interest income after provision (reversal) for credit losses21,162 22,669 (6.6)%20,226 4.6 %85,216 88,636 (3.9)%
Noninterest income
Gain on sale of loans
1,161 750 54.8 %803 44.6 %3,752 3,570 5.1 %
Service charges and fees on deposits
404 399 1.3 %391 3.3 %1,545 1,475 4.7 %
Loan servicing income
861 786 9.5 %751 14.6 %3,365 3,330 1.1 %
Bank-owned life insurance income246 239 2.9 %202 21.8 %949 753 26.0 %
Other income
371 446 (16.8)%356 4.2 %1,482 1,555 (4.7)%
Total noninterest income
3,043 2,620 16.1 %2,503 21.6 %11,093 10,683 3.8 %
Noninterest expense
Salaries and employee benefits
8,417 8,801 (4.4)%8,397 0.2 %35,661 34,572 3.1 %
Occupancy and equipment
2,198 2,261 (2.8)%2,145 2.5 %9,117 7,924 15.1 %
Professional fees
752 599 25.5 %898 (16.3)%3,408 3,087 10.4 %
Marketing and business promotion
582 667 (12.7)%772 (24.6)%1,886 2,327 (19.0)%
Data processing
205 397 (48.4)%393 (47.8)%1,499 1,552 (3.4)%
Director fees and expenses
227 226 0.4 %207 9.7 %906 756 19.8 %
Regulatory assessments
322 309 4.2 %285 13.0 %1,256 1,103 13.9 %
Other expense1,191 1,342 (11.3)%1,372 (13.2)%6,290 4,736 32.8 %
Total noninterest expense
13,894 14,602 (4.8)%14,469 (4.0)%60,023 56,057 7.1 %
Income before income taxes
10,311 10,687 (3.5)%8,260 24.8 %36,286 43,262 (16.1)%
Income tax expense
3,281 2,873 14.2 %2,352 39.5 %10,476 12,557 (16.6)%
Net income
7,030 7,814 (10.0)%5,908 19.0 %25,810 30,705 (15.9)%
Preferred stock dividends346 346 — %— NM834 — NM
Net income available to common shareholders$6,684 $7,468 (10.5)%$5,908 13.1 %$24,976 $30,705 (18.7)%
Earnings per common share
Basic
$0.47 $0.52 $0.41 $1.75 $2.14 
Diluted
$0.46 $0.52 $0.41 $1.74 $2.12 
Average common shares
Basic
14,254,584 14,241,014 14,223,831 14,242,057 14,301,691 
Diluted
14,406,756 14,356,384 14,316,581 14,342,361 14,417,938 
Dividend paid per common share
$0.18 $0.18 $0.18 $0.72 $0.69 
Return on average assets (1)
0.94 %1.08 %0.89 %0.90 %1.20 %
Return on average shareholders’ equity (1)
7.69 %8.70 %6.82 %7.26 %9.02 %
Return on average TCE (1), (2)
9.02 %10.31 %8.54 %8.72 %11.31 %
Efficiency ratio (3)
53.02 %57.63 %59.23 %60.20 %56.52 %
(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
12/31/20249/30/202412/31/2023
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)
$2,538,310 $42,309 6.63 %$2,456,015 $42,115 6.82 %$2,242,457 $37,189 6.58 %
Mortgage-backed securities
113,231 1,030 3.62 %111,350 1,000 3.57 %100,500 855 3.38 %
Collateralized mortgage obligation
21,819 228 4.16 %22,661 244 4.28 %23,970 259 4.29 %
SBA loan pool securities
6,253 62 3.94 %6,571 69 4.18 %7,453 81 4.31 %
Municipal bonds (2)
2,440 21 3.42 %2,698 24 3.54 %3,110 29 3.70 %
Corporate bonds4,200 47 4.45 %4,248 47 4.40 %4,194 47 4.45 %
Other interest-earning assets
207,234 2,622 5.03 %175,711 2,499 5.66 %175,336 2,491 5.64 %
Total interest-earning assets
2,893,487 46,319 6.37 %2,779,254 45,998 6.58 %2,557,020 40,951 6.35 %
Noninterest-earning assets
Cash and due from banks23,639 24,098 23,034 
ACL on loans(28,833)(28,797)(25,663)
Other assets
92,348 92,152 87,759 
Total noninterest-earning assets
87,154 87,453 85,130 
Total assets
$2,980,641 $2,866,707 $2,642,150 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$479,238 4,479 3.72 %$496,158 5,129 4.11 %$450,408 4,418 3.89 %
Savings
5,952 4 0.27 %6,204 4 0.26 %6,947 4 0.23 %
Time deposits
1,501,711 18,444 4.89 %1,390,644 17,924 5.13 %1,192,777 14,306 4.76 %
Total interest-bearing deposits
1,986,901 22,927 4.59 %1,893,006 23,057 4.85 %1,650,132 18,728 4.50 %
Other borrowings17,946 228 5.05 %15,848 222 5.57 %21,000 299 5.65 %
Total interest-bearing liabilities
2,004,847 23,155 4.59 %1,908,854 23,279 4.85 %1,671,132 19,027 4.52 %
Noninterest-bearing liabilities
Noninterest-bearing demand
543,971 534,761 577,894 
Other liabilities
67,995 65,716 49,389 
Total noninterest-bearing liabilities
611,966 600,477 627,283 
Total liabilities
2,616,813 2,509,331 2,298,415 
Total shareholders’ equity
363,828 357,376 343,735 
Total liabilities and shareholders’ equity
$2,980,641 $2,866,707 $2,642,150 
Net interest income
$23,164 $22,719 $21,924 
Net interest spread (3)
1.78 %1.73 %1.83 %
Net interest margin (4)
3.18 %3.25 %3.40 %
Total deposits
$2,530,872 $22,927 3.60 %$2,427,767 $23,057 3.78 %$2,228,026 $18,728 3.33 %
Total funding (5)
$2,548,818 $23,155 3.61 %$2,443,615 $23,279 3.79 %$2,249,026 $19,027 3.36 %
(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)
Year Ended
12/31/202412/31/2023
Average BalanceInterest Income/ ExpenseAvg. Yield/RateAverage BalanceInterest Income/ ExpenseAvg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)
$2,445,080 $164,301 6.72 %$2,137,851 $136,029 6.36 %
Mortgage-backed securities
107,768 3,780 3.51 %98,903 3,001 3.03 %
Collateralized mortgage obligation
22,806 975 4.28 %25,466 1,039 4.08 %
SBA loan pool securities
6,756 283 4.19 %8,166 325 3.98 %
Municipal bonds (2)
2,917 102 3.50 %3,788 126 3.33 %
Corporate bonds4,208 188 4.47 %4,273 188 4.40 %
Other interest-earning assets
203,279 11,188 5.50 %198,809 10,469 5.27 %
Total interest-earning assets
2,792,814 180,817 6.47 %2,477,256 151,177 6.10 %
Noninterest-earning assets
Cash and due from banks23,044 21,565 
ACL on loans(28,397)(25,495)
Other assets
90,425 76,433 
Total noninterest-earning assets
85,072 72,503 
Total assets
$2,877,886 $2,549,759 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$475,754 19,149 4.02 %$470,750 16,190 3.44 %
Savings
6,312 16 0.25 %7,499 18 0.24 %
Time deposits
1,410,878 71,322 5.06 %1,059,985 45,957 4.34 %
Total interest-bearing deposits
1,892,944 90,487 4.78 %1,538,234 62,165 4.04 %
Other borrowings31,033 1,713 5.52 %9,192 508 5.53 %
Total interest-bearing liabilities
1,923,977 92,200 4.79 %1,547,426 62,673 4.05 %
Noninterest-bearing liabilities
Noninterest-bearing demand
539,263 629,774 
Other liabilities
59,026 32,051 
Total noninterest-bearing liabilities
598,289 661,825 
Total liabilities
2,522,266 2,209,251 
Total shareholders’ equity
355,620 340,508 
Total liabilities and shareholders’ equity
$2,877,886 $2,549,759 
Net interest income
$88,617 $88,504 
Net interest spread (3)
1.68 %2.05 %
Net interest margin (4)
3.17 %3.57 %
Total deposits
$2,432,207 $90,487 3.72 %$2,168,008 $62,165 2.87 %
Total funding (5)
$2,463,240 $92,200 3.74 %$2,177,200 $62,673 2.88 %
(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.




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
Year Ended
12/31/20249/30/202412/31/202312/31/202412/31/2023
Average total shareholders' equity(a)$363,828 $357,376 $343,735 $355,620 $340,508 
Less: average preferred stock(b)69,141 69,141 69,141 69,141 69,141 
Average TCE(c)=(a)-(b)$294,687 $288,235 $274,594 $286,479 $271,367 
Net income(d)$7,030 $7,814 $5,908 $25,810 $30,705 
Return on average shareholder's equity (1)
(d)/(a)7.69 %8.70 %6.82 %7.26 %9.02 %
Net income available to common shareholders(e)$6,684 $7,468 $5,908 $24,976 $30,705 
Return on average TCE (1)
(e)/(c)9.02 %10.31 %8.54 %8.72 %11.31 %
(1) Annualized.
($ in thousands, except per share data)12/31/20249/30/202412/31/2023
Total shareholders' equity(a)$363,814 $362,300 $348,872 
Less: preferred stock(b)69,141 69,141 69,141 
TCE(c)=(a)-(b)$294,673 $293,159 $279,731 
Outstanding common shares
(d)14,380,651 14,266,725 14,260,440 
Book value per common share(a)/(d)$25.30 $25.39 $24.46 
TCE per common share(c)/(d)$20.49 $20.55 $19.62 
Total assets(e)$3,063,971 $2,889,833 $2,789,506 
Total shareholders' equity to total assets(a)/(e)11.87 %12.54 %12.51 %
TCE to total assets(c)/(e)9.62 %10.14 %10.03 %
17