EX-99.1 2 pcbpr20251023earnings.htm EX-99.1 Document

Exhibit 99.1
pcbbancorp.jpg
PCB Bancorp Reports Record Earnings for Q3 2025
Los Angeles, California - October 23, 2025 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $11.3 million, or $0.78 per diluted common share, for the third quarter of 2025, compared with $9.0 million, or $0.62 per diluted common share, for the previous quarter and $7.5 million, or $0.52 per diluted common share, for the year-ago quarter.
Q3 2025 Highlights
•Net income available to common shareholders totaled $11.3 million, or $0.78 per diluted common share, for the current quarter;
•Provision (reversal) for credit losses was $(381) thousand for the current quarter compared with $1.8 million for the previous quarter and $50 thousand for the year-ago quarter;
•Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.20% at September 30, 2025 compared with 1.20% at June 30, 2025, 1.16% at December 31, 2024 and 1.17% at September 30, 2024;
•Net interest income was $27.0 million for the current quarter compared with $26.0 million for the previous quarter and $22.7 million for the year-ago quarter. Net interest margin was 3.28% for the current quarter compared with 3.33% for the previous quarter and 3.25% for the year-ago quarter;
•Gain on sale of loans was $1.6 million for the current quarter compared with $1.5 million for the previous quarter and $750 thousand for the year-ago quarter;
•Total assets were $3.36 billion at September 30, 2025, an increase of $57.9 million, or 1.8%, from $3.31 billion at June 30, 2025, an increase of $299.5 million, or 9.8%, from $3.06 billion at December 31, 2024, and an increase of $473.7 million, or 16.4%, from $2.89 billion at September 30, 2024;
•Loans held-for-investment were $2.75 billion at September 30, 2025, a decrease of $42.8 million, or 1.5%, from $2.80 billion at June 30, 2025, but an increase of $123.1 million, or 4.7%, from $2.63 billion at December 31, 2024 and an increase of $286.3 million, or 11.6%, from $2.47 billion at September 30, 2024; and
•Total deposits were $2.91 billion at September 30, 2025, an increase of $90.6 million, or 3.2%, from $2.82 billion at June 30, 2025, an increase of $297.7 million, or 11.4%, from $2.62 billion at December 31, 2024, and an increase of $453.8 million, or 18.5%, from $2.46 billion at September 30, 2024.
“We are pleased to report another great quarter with record earnings that is highlighted by solid credit quality and strong deposit growth. Our record earnings for the quarter is primarily from increases in our net interest income and gain on sale of SBA loans combined with well-controlled noninterest expenses and a reversal for credit losses,” said Henry Kim, President and CEO. “Our loan pipeline remains stable, and we continue to build on our strong capital levels.”
Mr. Kim continued, “Heading into the fourth quarter and into 2026, with the U.S. government currently shutdown and unable to resolve the ongoing budget dispute, we are cautiously optimistic in our ability to adapt and continue to serve and meet the unique needs of our customers and deliver consistent returns and long-term growth for our shareholders.”
1

Financial Highlights (Unaudited)
($ in thousands, except per share data)
Three Months Ended
Nine Months Ended
9/30/20256/30/2025
% Change
9/30/2024
% Change
9/30/20259/30/2024% Change
Net income$11,412 $9,071 25.8 %$7,814 46.0 %$28,218 $18,780 50.3 %
Net income available to common shareholders$11,326 $8,984 26.1 %$7,468 51.7 %$28,005 $18,292 53.1 %
Diluted earnings per common share (“EPS”)$0.78 $0.62 25.8 %$0.52 50.0 %$1.94 $1.27 52.8 %
Net interest income$26,978 $25,990 3.8 %$22,719 18.7 %$77,251 $65,453 18.0 %
Provision (reversal) for credit losses(381)1,787 NA50 NA3,004 1,399 114.7 %
Noninterest income3,414 3,297 3.5 %2,620 30.3 %9,291 8,050 15.4 %
Noninterest expense14,869 14,829 0.3 %14,602 1.8 %44,172 46,129 (4.2)%
Return on average assets (“ROAA”) (1)
1.35 %1.13 %1.08 %1.17 %0.88 %
Return on average shareholders’ equity (“ROAE”) (1)
11.92 %9.76 %8.70 %10.10 %7.11 %
Return on average tangible common equity (“ROATCE”) (1),(2)
14.46 %11.87 %10.31 %12.30 %8.61 %
Net interest margin (1)
3.28 %3.33 %3.25 %3.29 %3.17 %
Efficiency ratio (3)
48.92 %50.63 %57.63 %51.04 %62.76 %
($ in thousands, except per share data)9/30/20256/30/2025% Change12/31/2024% Change9/30/2024% Change
Total assets
$3,363,506 $3,305,589 1.8 %$3,063,971 9.8 %$2,889,833 16.4 %
Net loans held-for-investment
2,719,554 2,761,755 (1.5)%2,598,759 4.6 %2,437,244 11.6 %
Total deposits
2,913,502 2,822,915 3.2 %2,615,791 11.4 %2,459,682 18.5 %
Book value per common share (4)
$26.93 $26.26 $25.30 $25.39 
TCE per common share (2)
$22.09 $21.44 $20.49 $20.55 
Tier 1 leverage ratio (consolidated)
11.57 %11.81 %12.45 %12.79 %
Total shareholders’ equity to total assets11.43 %11.39 %11.87 %12.54 %
TCE to total assets (2), (5)
9.38 %9.30 %9.62 %10.14 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a 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)9/30/20256/30/2025
% Change
9/30/2024% Change9/30/20259/30/2024% Change
Interest income/expense on
Loans
$46,193 $45,478 1.6 %$42,115 9.7 %$134,697 $121,992 10.4 %
Investment securities
1,474 1,462 0.8 %1,384 6.5 %4,344 3,940 10.3 %
Other interest-earning assets
3,804 2,368 60.6 %2,499 52.2 %8,630 8,566 0.7 %
Total interest-earning assets
51,471 49,308 4.4 %45,998 11.9 %147,671 134,498 9.8 %
Interest-bearing deposits
23,995 22,505 6.6 %23,057 4.1 %69,064 67,560 2.2 %
Borrowings
498 813 (38.7)%222 124.3 %1,356 1,485 (8.7)%
Total interest-bearing liabilities
24,493 23,318 5.0 %23,279 5.2 %70,420 69,045 2.0 %
Net interest income
$26,978 $25,990 3.8 %$22,719 18.7 %$77,251 $65,453 18.0 %
Average balance of
Loans
$2,784,148 $2,782,200 0.1 %$2,456,015 13.4 %$2,738,957 $2,413,777 13.5 %
Investment securities
152,084 151,055 0.7 %147,528 3.1 %149,914 143,283 4.6 %
Other interest-earning assets
327,637 200,875 63.1 %175,711 86.5 %246,396 201,951 22.0 %
Total interest-earning assets
$3,263,869 $3,134,130 4.1 %$2,779,254 17.4 %$3,135,267 $2,759,011 13.6 %
Interest-bearing deposits
$2,326,170 $2,187,210 6.4 %$1,893,006 22.9 %$2,218,542 $1,861,395 19.2 %
Borrowings
43,109 71,286 (39.5)%15,848 172.0 %39,586 35,427 11.7 %
Total interest-bearing liabilities
$2,369,279 $2,258,496 4.9 %$1,908,854 24.1 %$2,258,128 $1,896,822 19.0 %
Total funding (1)
$2,910,522 $2,792,026 4.2 %$2,443,615 19.1 %$2,788,686 $2,434,504 14.5 %
Annualized average yield/cost of 
Loans
6.58 %6.56 %6.82 %6.58 %6.75 %
Investment securities
3.85 %3.88 %3.73 %3.87 %3.67 %
Other interest-earning assets
4.61 %4.73 %5.66 %4.68 %5.67 %
Total interest-earning assets6.26 %6.31 %6.58 %6.30 %6.51 %
Interest-bearing deposits
4.09 %4.13 %4.85 %4.16 %4.85 %
Borrowings
4.58 %4.57 %5.57 %4.58 %5.60 %
Total interest-bearing liabilities4.10 %4.14 %4.85 %4.17 %4.86 %
Net interest margin3.28 %3.33 %3.25 %3.29 %3.17 %
Cost of total funding (1)
3.34 %3.35 %3.79 %3.38 %3.79 %
Supplementary information
Net accretion of discount on loans$563 $610 (7.7)%$773 (27.2)%$2,045 $2,137 (4.3)%
Net amortization of deferred loan fees$433 $414 4.6 %$246 76.0 %$1,113 $919 21.1 %
(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 compared with the previous quarter was primarily due to increases in the weighted-average interest rate on newly originated loans and net amortization of deferred loan fees, partially offset by a decrease in net accretion of discount on loans. The decreases in average yield for the current quarter and year-to-date period compared with the same periods in 2024 were primarily due to decreases in market rates and net accretion of discount on loans, partially offset by an increase in 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:
9/30/20256/30/202512/31/20249/30/2024
% 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
18.2 %5.60 %18.0 %5.51 %17.4 %5.23 %18.3 %5.06 %
Hybrid rate loans
39.5 %5.51 %38.5 %5.43 %37.3 %5.27 %37.6 %5.14 %
Variable rate loans
42.3 %7.38 %43.5 %7.53 %45.3 %7.63 %44.1 %8.10 %
Investment Securities. The increases for the current quarter and year-to-date period compared with the same periods of 2024 were primarily due to higher yields on newly purchased investment securities.
Other Interest-Earning Assets. The decreases for the current quarter and year-to-date period compared with the same periods of 2024 were primarily due to a decrease in average interest rate on cash held at the Federal Reserve Bank, partially offset by an increase in dividends received on Federal Home Loan Bank (“FHLB”) stock.
Interest-Bearing Deposits. The decreases in average cost for the current quarter and year-to-date period were primarily due to a decrease in market rates.
Provision (reversal) for credit losses
The following table presents a composition of provision for credit losses for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20256/30/2025
% Change
9/30/2024
% Change
9/30/20259/30/2024
% Change
Provision (reversal) for credit losses on loans$(428)$1,721 NA$193 NA$2,884 $1,444 99.7 %
Provision (reversal) for credit losses on off-balance sheet credit exposure47 66 (28.8)%(143)NA120 (45)NA
Total provision (reversal) for credit losses$(381)$1,787 NA$50 NA$3,004 $1,399 114.7 %
The reversal for credit losses on loans for the current quarter was primarily due to a decrease 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)9/30/20256/30/2025
% Change
9/30/2024
% Change
9/30/20259/30/2024
% Change
Gain on sale of loans
$1,617 $1,465 10.4 %$750 115.6 %$3,969 $2,591 53.2 %
Service charges and fees on deposits
377 375 0.5 %399 (5.5)%1,124 1,141 (1.5)%
Loan servicing income
719 760 (5.4)%786 (8.5)%2,204 2,504 (12.0)%
Bank-owned life insurance (“BOLI”) income259 253 2.4 %239 8.4 %759 703 8.0 %
Other income
442 444 (0.5)%446 (0.9)%1,235 1,111 11.2 %
Total noninterest income
$3,414 $3,297 3.5 %$2,620 30.3 %$9,291 $8,050 15.4 %
Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20256/30/2025% Change9/30/2024% Change9/30/20259/30/2024% Change
Gain on sale of SBA loans
Sold loan balance
$29,017 $26,947 7.7 %$13,506 114.8 %$72,569 $46,539 55.9 %
Premium received
1,852 1,750 5.8 %1,185 56.3 %4,810 3,837 25.4 %
Gain recognized
1,617 1,465 10.4 %750 115.6 %3,969 2,591 53.2 %
Gain on sale of residential mortgage loans
Sold loan balance
$— $— — %$676 (100.0)%$— $676 (100.0)%
Gain recognized
— — — %— — %— — — %
Loan Servicing Income. The Company services SBA loans and certain residential property loans sold to the secondary market. The following table presents information on loan servicing income for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20256/30/2025
% Change
9/30/2024
% Change
9/30/20259/30/2024
% Change
Loan servicing income
Servicing income received
$1,247 $1,251 (0.3)%$1,264 (1.3)%$3,771 $3,875 (2.7)%
Servicing assets amortization
(528)(491)7.5 %(478)10.5 %(1,567)(1,371)14.3 %
Loan servicing income$719 $760 (5.4)%$786 (8.5)%$2,204 $2,504 (12.0)%
Underlying loans at end of period
$518,309 $514,974 0.6 %$527,062 (1.7)%$518,309 $527,062 (1.7)%

5

Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20256/30/2025% Change9/30/2024% Change9/30/20259/30/2024% Change
Salaries and employee benefits
$9,293 $8,844 5.1 %$8,801 5.6 %$27,212 $27,244 (0.1)%
Occupancy and equipment
2,372 2,379 (0.3)%2,261 4.9 %7,040 6,919 1.7 %
Professional fees
541 805 (32.8)%599 (9.7)%1,974 2,656 (25.7)%
Marketing and business promotion
669 597 12.1 %667 0.3 %1,509 1,304 15.7 %
Data processing
333 317 5.0 %397 (16.1)%983 1,294 (24.0)%
Director fees and expenses
223 225 (0.9)%226 (1.3)%674 679 (0.7)%
Regulatory assessments
373 358 4.2 %309 20.7 %1,075 934 15.1 %
Other expense1,065 1,304 (18.3)%1,342 (20.6)%3,705 5,099 (27.3)%
Total noninterest expense
$14,869 $14,829 0.3 %$14,602 1.8 %$44,172 $46,129 (4.2)%
Salaries and Employee Benefits. The increase for the current quarter compared with the previous quarter was primarily due to increases in salaries and bonus accrual, and a decrease in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense. The increase for the current quarter compared with the year-ago quarter was primarily due to increases in salaries and bonus accrual, partially offset by an increase in direct loan origination cost. The decrease for the current year compared with the previous year-to-date period was primarily due to a decrease in salaries and an increase in direct loan origination cost, partially offset by an increase in bonus accrual. The number of full-time equivalent employees was 270, 266 and 264 as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
Professional Fees. The decrease for the current quarter compared with the previous quarter was primarily due to professional fees related to evaluating the accounting for a preferred stock purchase option incurred during the previous quarter. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to other professional fees for the 2024 periods related to a core system conversion that was completed in April 2024, partially offset the professional fees related to a preferred stock purchase option.
Marketing and Business Promotion. The increases for the current quarter and year-to-date periods were primarily due to an increase in advertising.
Data Processing. The decreases for the current quarter and year-to-date periods compared with the same periods of 2024 were primarily due to a decrease in overall service charges after the core system conversion.
Other Expense. The decrease for the current quarter compared with the previous quarter was primarily due to a decrease in impairment on operating lease assets. The Company recognized impairments on operating lease assets of $10 thousand and $228 thousand for the current and previous quarters, respectively, for sublease contracts. The decrease for the current year-to-date period compared with the previous 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 year-to-date period, partially offset by the impairment on operating lease assets of $238 thousand and contingent accrual for legal settlements of $190 thousand for the current year-to-date period.
6

Balance Sheet (Unaudited)
Total assets were $3.36 billion at September 30, 2025, an increase of $57.9 million, or 1.8%, from $3.31 billion at June 30, 2025, an increase of $299.5 million, or 9.8%, from $3.06 billion at December 31, 2024, and an increase of $473.7 million, or 16.4%, from $2.89 billion at September 30, 2024. The increase for the current quarter was primarily due to an increase in cash and cash equivalents, partially offset by a decrease in loans held-for-investment. The increase for the current year-to-date period was primarily due to increases in loans held-for-investment and cash and cash equivalents.
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:
($ in thousands)9/30/20256/30/2025% Change12/31/2024% Change9/30/2024% Change
Commercial real estate:
Commercial property$1,039,965 $1,010,780 2.9 %$940,931 10.5 %$874,824 18.9 %
Business property639,596 635,648 0.6 %595,547 7.4 %579,461 10.4 %
Multifamily172,098 212,738 (19.1)%194,220 (11.4)%185,485 (7.2)%
Construction25,911 27,294 (5.1)%21,854 18.6 %21,150 22.5 %
Total commercial real estate1,877,570 1,886,460 (0.5)%1,752,552 7.1 %1,660,920 13.0 %
Commercial and industrial465,424 492,857 (5.6)%472,763 (1.6)%407,024 14.3 %
Consumer:
Residential mortgage401,653 406,682 (1.2)%392,456 2.3 %383,377 4.8 %
Other consumer7,867 9,310 (15.5)%11,616 (32.3)%14,853 (47.0)%
Total consumer409,520 415,992 (1.6)%404,072 1.3 %398,230 2.8 %
Loans held-for-investment2,752,514 2,795,309 (1.5)%2,629,387 4.7 %2,466,174 11.6 %
Loans held-for-sale9,634 8,133 18.5 %6,292 53.1 %5,170 86.3 %
Total loans
$2,762,148 $2,803,442 (1.5)%$2,635,679 4.8 %$2,471,344 11.8 %
SBA loans included in:
Loans held-for-investment$151,766 $150,688 0.7 %$146,940 3.3 %$142,819 6.3 %
Loans held-for-sale$9,634 $8,133 18.5 %$6,292 53.1 %$5,170 86.3 %
ACL on loans$32,960 $33,554 (1.8)%$30,628 7.6 %$28,930 13.9 %
ACL on loans to loans held-for-investment1.20 %1.20 %1.16 %1.17 %
The decrease in loans held-for-investment for the current quarter was primarily due to pay-downs and pay-offs of term loans of $103.4 million, net decrease of lines of credit of $36.1 million and charge-offs of $454 thousand, partially offset by new funding of term loans of $97.2 million. The increase for the current year-to-date period was primarily due to new funding of term loans of $443.1 million, partially offset by pay-downs and pay-offs of term loans of $299.8 million, net decrease of lines of credit of $19.3 million, and charge-offs of $927 thousand.
The increase in loans held-for-sale for the current quarter was primarily due to new funding of $30.6 million, partially offset by sales of $29.0 million and pay-downs of $82 thousand. The increase for the current year-to-date period was primarily due to new funding of $76.2 million, partially offset by sales of $72.6 million and pay-downs of $248 thousand.

The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:
($ in thousands)9/30/20256/30/2025% Change12/31/2024% Change9/30/2024% Change
Commercial property$13,772 $10,851 26.9 %$8,888 55.0 %$3,291 318.5 %
Business property10,740 10,364 3.6 %11,058 (2.9)%12,441 (13.7)%
Construction7,688 8,985 (14.4)%14,423 (46.7)%17,810 (56.8)%
Commercial and industrial373,560 342,467 9.1 %364,731 2.4 %394,428 (5.3)%
Other consumer1,357 2,274 (40.3)%1,475 (8.0)%5,590 (75.7)%
Total commitments to extend credit407,117 374,941 8.6 %400,575 1.6 %433,560 (6.1)%
Letters of credit7,074 7,418 (4.6)%6,795 4.1 %6,673 6.0 %
Total off-balance sheet credit exposure$414,191 $382,359 8.3 %$407,370 1.7 %$440,233 (5.9)%

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)9/30/20256/30/2025% Change12/31/2024% Change9/30/2024% Change
Nonaccrual loans
Commercial real estate:
Commercial property$1,448 $1,497 (3.3)%$1,851 (21.8)%$1,633 (11.3)%
Business property962 1,654 (41.8)%2,336 (58.8)%2,367 (59.4)%
Multifamily— — — %— — %2,038 (100.0)%
Total commercial real estate2,410 3,151 (23.5)%4,187 (42.4)%6,038 (60.1)%
Commercial and industrial378 255 48.2 %79 378.5 %124 204.8 %
Consumer:
Residential mortgage5,370 5,526 (2.8)%403 1,232.5 %414 1,197.1 %
Other consumer— — — %24 (100.0)%38 (100.0)%
Total consumer5,370 5,526 (2.8)%427 1,157.6 %452 1,088.1 %
Total nonaccrual loans held-for-investment
8,158 8,932 (8.7)%4,693 73.8 %6,614 23.3 %
Loans past due 90 days or more and still accruing
— — — %— — %— — %
Non-performing loans (“NPLs”) 8,158 8,932 (8.7)%4,693 73.8 %6,614 23.3 %
NPLs held-for-sale— — — %— — %— — %
Total NPLs8,158 8,932 (8.7)%4,693 73.8 %6,614 23.3 %
Other real estate owned (“OREO”)
— — — %— — %466 (100.0)%
Non-performing assets (“NPAs”)
$8,158 $8,932 (8.7)%$4,693 73.8 %$7,080 15.2 %
Loans past due and still accruing
Past due 30 to 59 days
$1,548 $2,327 (33.5)%$4,599 (66.3)%$2,973 (47.9)%
Past due 60 to 89 days
— 226 (100.0)%303 (100.0)%21 (100.0)%
Past due 90 days or more
— — — %— — %— — %
Total loans past due and still accruing
$1,548 $2,553 (39.4)%4,902 (68.4)%$2,994 (48.3)%
Special mention loans$6,477 $6,838 (5.3)%$5,034 28.7 %$5,057 28.1 %
Classified assets
Classified loans held-for-investment$10,172 $16,433 (38.1)%$6,930 46.8 %$8,860 14.8 %
Classified loans held-for-sale— — — %— — %— — %
OREO
— — — %— — %466 (100.0)%
Classified assets
$10,172 $16,433 (38.1)%$6,930 46.8 %$9,326 9.1 %
NPLs to loans held-for-investment0.30 %0.32 %0.18 %0.27 %
NPAs to total assets
0.24 %0.27 %0.15 %0.24 %
Classified assets to total assets
0.30 %0.50 %0.23 %0.32 %
Allowance for Credit Losses
The following table presents activity in ACL for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20256/30/2025% Change9/30/2024% Change9/30/20259/30/2024% Change
ACL on loans
Balance at beginning of period$33,554 $31,942 5.0 %$28,747 16.7 %$30,628 $27,533 11.2 %
Charge-offs(454)(120)278.3 %(111)309.0 %(927)(296)213.2 %
Recoveries288 11 2,518.2 %101 185.1 %375 249 50.6 %
Provision (reversal) for credit losses on loans(428)1,721 NA193 NA2,884 1,444 99.7 %
Balance at end of period$32,960 $33,554 (1.8)%$28,930 13.9 %$32,960 $28,930 13.9 %
ACL on off-balance sheet credit exposure
Balance at beginning of period$1,263 $1,197 5.5 %$1,375 (8.1)%$1,190 $1,277 (6.8)%
Provision (reversal) for credit losses on off-balance sheet credit exposure47 66 (28.8)%(143)NA120 (45)NA
Balance at end of period$1,310 $1,263 3.7 %$1,232 6.3 %$1,310 $1,232 6.3 %
8

Investment Securities
Total investment securities were $150.3 million at September 30, 2025, a decrease of $4.3 million, or 2.8%, from $154.6 million at June 30, 2025, but an increase of $3.9 million, or 2.7%, from $146.3 million at December 31, 2024 and an increase of $2.6 million, or 1.8%, from $147.6 million at September 30, 2024.
The decrease for the current quarter was primarily due to principal pay-downs of $5.9 million and net premium amortization of $43 thousand, partially offset by a fair value increase of $1.6 million. The increase for the current year-to-date period was primarily due to purchases of $14.9 million and a fair value increase of $5.6 million, partially offset by principal pay-downs of $16.4 million and net premium amortization of $108 thousand.
Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
9/30/20256/30/202512/31/20249/30/2024
($ in thousands)Amount% to TotalAmount% to TotalAmount% to TotalAmount% to Total
Noninterest-bearing demand deposits
$551,312 18.9 %$575,905 20.4 %$547,853 20.9 %$540,068 22.0 %
Interest-bearing deposits
Savings
5,287 0.2 %5,695 0.2 %5,765 0.2 %5,718 0.2 %
NOW
13,411 0.5 %12,765 0.5 %13,761 0.5 %15,873 0.6 %
Retail money market accounts
650,675 22.2 %533,032 18.7 %447,360 17.1 %470,347 19.1 %
Brokered money market accounts
1 0.1 %1 0.1 %1 0.1 %1 0.1 %
Retail time deposits of
$250,000 or less
580,300 19.9 %555,357 19.7 %493,644 18.9 %492,430 20.0 %
More than $250,000
671,516 23.1 %649,160 23.0 %605,124 23.1 %580,166 23.6 %
State and brokered time deposits
441,000 15.1 %491,000 17.4 %502,283 19.2 %355,079 14.4 %
Total interest-bearing deposits
2,362,190 81.1 %2,247,010 79.6 %2,067,938 79.1 %1,919,614 78.0 %
Total deposits
$2,913,502 100.0 %$2,822,915 100.0 %$2,615,791 100.0 %$2,459,682 100.0 %
Estimated total deposits not covered by deposit insurance$1,275,127 43.8 %$1,164,592 41.3 %$1,036,451 39.6 %$1,042,366 42.4 %
Total retail deposits were $2.47 billion at September 30, 2025, an increase of $140.6 million, or 6.0%, from $2.33 billion at June 30, 2025, an increase of $359.0 million, or 17.0%, from $2.11 billion at December 31, 2024, and an increase of $367.9 million, or 17.5%, from $2.10 billion at September 30, 2024.
The increase in retail time deposits for the current quarter was primarily due to new accounts of $115.0 million, renewals of the matured accounts of $240.8 million and balance increases of $7.5 million, partially offset by matured and closed accounts of $316.0 million. The increase for the current year-to-date period was primarily due to new accounts of $394.8 million, renewals of the matured accounts of $845.2 million and balance increases of $31.9 million, partially offset by matured and closed accounts of $1.12 billion.
Liquidity
The following table presents a summary of the Company’s liquidity position as of the dates indicated:
($ in thousands)9/30/202512/31/2024% Change
Cash and cash equivalents
$369,498 $198,792 85.9 %
Cash and cash equivalents to total assets
11.0 %6.5 %
Available borrowing capacity
FHLB advances
$826,136 $722,439 14.4 %
Federal Reserve Discount Window
808,651 586,525 37.9 %
Overnight federal funds lines
65,000 50,000 30.0 %
Total
$1,699,787 $1,358,964 25.1 %
Total available borrowing capacity to total assets
50.5 %44.4 %
9

Shareholders’ Equity
Shareholders’ equity was $384.5 million at September 30, 2025, an increase of $8.0 million, or 2.1%, from $376.5 million at June 30, 2025, an increase of $20.7 million, or 5.7%, from $363.8 million at December 31, 2024, and an increase of $22.2 million, or 6.1%, from $362.3 million at September 30, 2024. The increase for the current quarter was primarily due to net income, a decrease in accumulated other comprehensive loss of $1.1 million and proceeds from stock option exercises of $450 thousand, partially offset by repurchases of common stock of $2.2 million, cash dividends declared on common stock of $2.9 million and preferred stock dividends of $86 thousand. The increase for the current year-to-date period was primarily due to net income, a decrease in accumulated other comprehensive loss of $3.9 million and proceeds from stock option exercises of $1.7 million, partially offset by repurchases of common stock of $5.0 million, cash dividends declared on common stock of $8.6 million and preferred stock dividends of $213 thousand.
Stock Repurchases
During the current year-to-date period, the Company repurchased and retired 255,767 shares of common stock at a weighted-average price of $19.41, totaling $5.0 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 September 30, 2025, the Company is authorized to purchase 322,010 additional shares under its current stock repurchase program, which expires on July 31, 2026.
Series C Preferred Stock
The Company began paying quarterly dividends on the Series C Preferred Stock in the second quarter of 2024. The Company paid dividends of $86 thousand and $213 thousand for the current quarter and year-to-date period, respectively.
Capital Ratios
The following table presents capital ratios for the Company and the Bank as of the dates indicated:
9/30/20256/30/202512/31/20249/30/2024Well Capitalized Minimum Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)
11.52 %11.14 %11.44 %11.92 %6.50 %
Total capital (to risk-weighted assets)
15.24 %14.84 %15.24 %15.88 %10.00 %
Tier 1 capital (to risk-weighted assets)
14.00 %13.60 %14.04 %14.68 %8.00 %
Tier 1 capital (to average assets)
11.57 %11.81 %12.45 %12.79 %5.00 %
PCB Bank
Common tier 1 capital (to risk-weighted assets)
13.61 %13.23 %13.72 %14.33 %6.5 %
Total capital (to risk-weighted assets)
14.85 %14.47 %14.92 %15.54 %10.0 %
Tier 1 capital (to risk-weighted assets)
13.61 %13.23 %13.72 %14.33 %8.0 %
Tier 1 capital (to average assets)
11.25 %11.50 %12.16 %12.49 %5.0 %
10

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 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, inflation levels and interest rates; the impacts of the restatement of our consolidated financial statements at and for the quarter ended March 31, 2025; material weaknesses in the Company’s internal control over financial reporting that we have identified or may identify; the impacts of sanctions, tariffs and other trade policies of the United States and its global trading partners and tensions related to the same; 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, 2024 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

11

PCB Bancorp and Subsidiary
Consolidated Balance Sheets (Unaudited)
($ in thousands, except share and per share data)
9/30/20256/30/2025% Change12/31/2024% Change9/30/2024% Change
Assets
Cash and due from banks
$24,366 $41,614 (41.4)%$27,100 (10.1)%$29,981 (18.7)%
Interest-bearing deposits in other financial institutions345,132 221,953 55.5 %171,692 101.0 %163,083 111.6 %
Total cash and cash equivalents
369,498 263,567 40.2 %198,792 85.9 %193,064 91.4 %
Securities available-for-sale, at fair value
150,279 154,620 (2.8)%146,349 2.7 %147,635 1.8 %
Loans held-for-sale
9,634 8,133 18.5 %6,292 53.1 %5,170 86.3 %
Loans held-for-investment2,752,514 2,795,309 (1.5)%2,629,387 4.7 %2,466,174 11.6 %
Allowance for credit losses on loans(32,960)(33,554)(1.8)%(30,628)7.6 %(28,930)13.9 %
Net loans held-for-investment
2,719,554 2,761,755 (1.5)%2,598,759 4.6 %2,437,244 11.6 %
Premises and equipment, net
8,604 8,942 (3.8)%8,280 3.9 %8,414 2.3 %
Federal Home Loan Bank and other bank stock
14,978 14,978 — %14,042 6.7 %14,042 6.7 %
Bank-owned life insurance32,525 32,266 0.8 %31,766 2.4 %31,520 3.2 %
Deferred tax assets, net
7,164 7,032 1.9 %7,249 (1.2)%— NA
Servicing assets
5,883 5,756 2.2 %5,837 0.8 %5,902 (0.3)%
Operating lease assets
17,136 17,861 (4.1)%17,254 (0.7)%17,932 (4.4)%
Accrued interest receivable
10,829 10,879 (0.5)%10,466 3.5 %9,896 9.4 %
Other assets
17,422 19,800 (12.0)%18,885 (7.7)%18,548 (6.1)%
Total assets
$3,363,506 $3,305,589 1.8 %$3,063,971 9.8 %$2,889,833 16.4 %
Liabilities
Deposits
Noninterest-bearing demand
$551,312 $575,905 (4.3)%$547,853 0.6 %$540,068 2.1 %
Savings, NOW and money market accounts
669,374 551,493 21.4 %466,887 43.4 %491,939 36.1 %
Time deposits of $250,000 or less
961,299 986,357 (2.5)%935,927 2.7 %787,509 22.1 %
Time deposits of more than $250,000
731,517 709,160 3.2 %665,124 10.0 %640,166 14.3 %
Total deposits
2,913,502 2,822,915 3.2 %2,615,791 11.4 %2,459,682 18.5 %
Other short-term borrowings— — — %15,000 (100.0)%— — %
Federal Home Loan Bank advances
— 45,000 (100.0)%— — %— — %
Deferred tax liabilities, net— — — %— — %1,168 (100.0)%
Operating lease liabilities
18,961 19,652 (3.5)%18,671 1.6 %19,301 (1.8)%
Accrued interest payable and other liabilities
46,542 41,522 12.1 %50,695 (8.2)%47,382 (1.8)%
Total liabilities
2,979,005 2,929,089 1.7 %2,700,157 10.3 %2,527,533 17.9 %
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock69,141 69,141 — %69,141 — %69,141 — %
Common stock140,580 142,152 (1.1)%143,195 (1.8)%142,926 (1.6)%
Retained earnings
180,189 171,735 4.9 %160,797 12.1 %156,680 15.0 %
Accumulated other comprehensive loss, net(5,409)(6,528)(17.1)%(9,319)(42.0)%(6,447)(16.1)%
Total shareholders’ equity
384,501 376,500 2.1 %363,814 5.7 %362,300 6.1 %
Total liabilities and shareholders’ equity
$3,363,506 $3,305,589 1.8 %$3,063,971 9.8 %$2,889,833 16.4 %
Outstanding common shares
14,277,164 14,336,602 14,380,651 14,266,725 
Book value per common share (1)
$26.93 $26.26 $25.30 $25.39 
TCE per common share (2)
$22.09 $21.44 $20.49 $20.55 
Total loan to total deposit ratio
94.81 %99.31 %100.76 %100.47 %
Noninterest-bearing deposits to total deposits
18.92 %20.40 %20.94 %21.96 %
(1)The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company had no intangible equity components for the presented periods.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
12

PCB Bancorp and Subsidiary
Consolidated Statements of Income (Unaudited)
($ in thousands, except share and per share data)
Three Months Ended
Nine Months Ended
9/30/20256/30/2025% Change9/30/2024% Change9/30/20259/30/2024% Change
Interest and dividend income
Loans, including fees$46,193 $45,478 1.6 %$42,115 9.7 %$134,697 $121,992 10.4 %
Investment securities1,474 1,462 0.8 %1,384 6.5 %4,344 3,940 10.3 %
Other interest-earning assets3,804 2,368 60.6 %2,499 52.2 %8,630 8,566 0.7 %
Total interest income51,471 49,308 4.4 %45,998 11.9 %147,671 134,498 9.8 %
Interest expense
Deposits23,995 22,505 6.6 %23,057 4.1 %69,064 67,560 2.2 %
Other borrowings498 813 (38.7)%222 124.3 %1,356 1,485 (8.7)%
Total interest expense
24,493 23,318 5.0 %23,279 5.2 %70,420 69,045 2.0 %
Net interest income
26,978 25,990 3.8 %22,719 18.7 %77,251 65,453 18.0 %
Provision (reversal) for credit losses(381)1,787 NA50 NA3,004 1,399 114.7 %
Net interest income after provision (reversal) for credit losses27,359 24,203 13.0 %22,669 20.7 %74,247 64,054 15.9 %
Noninterest income
Gain on sale of loans
1,617 1,465 10.4 %750 115.6 %3,969 2,591 53.2 %
Service charges and fees on deposits
377 375 0.5 %399 (5.5)%1,124 1,141 (1.5)%
Loan servicing income
719 760 (5.4)%786 (8.5)%2,204 2,504 (12.0)%
BOLI income259 253 2.4 %239 8.4 %759 703 8.0 %
Other income
442 444 (0.5)%446 (0.9)%1,235 1,111 11.2 %
Total noninterest income
3,414 3,297 3.5 %2,620 30.3 %9,291 8,050 15.4 %
Noninterest expense
Salaries and employee benefits
9,293 8,844 5.1 %8,801 5.6 %27,212 27,244 (0.1)%
Occupancy and equipment
2,372 2,379 (0.3)%2,261 4.9 %7,040 6,919 1.7 %
Professional fees
541 805 (32.8)%599 (9.7)%1,974 2,656 (25.7)%
Marketing and business promotion669 597 12.1 %667 0.3 %1,509 1,304 15.7 %
Data processing
333 317 5.0 %397 (16.1)%983 1,294 (24.0)%
Director fees and expenses
223 225 (0.9)%226 (1.3)%674 679 (0.7)%
Regulatory assessments
373 358 4.2 %309 20.7 %1,075 934 15.1 %
Other expense1,065 1,304 (18.3)%1,342 (20.6)%3,705 5,099 (27.3)%
Total noninterest expense
14,869 14,829 0.3 %14,602 1.8 %44,172 46,129 (4.2)%
Income before income taxes
15,904 12,671 25.5 %10,687 48.8 %39,366 25,975 51.6 %
Income tax expense
4,492 3,600 24.8 %2,873 56.4 %11,148 7,195 54.9 %
Net income
11,412 9,071 25.8 %7,814 46.0 %28,218 18,780 50.3 %
Preferred stock dividends86 87 (1.1)%346 (75.1)%213 488 (56.4)%
Net income available to common shareholders$11,326 $8,984 26.1 %$7,468 51.7 %$28,005 $18,292 53.1 %
Earnings per common share
Basic
$0.79 $0.63 $0.52 $1.95 $1.28 
Diluted
$0.78 $0.62 $0.52 $1.94 $1.27 
Average common shares
Basic
14,201,054 14,213,032 14,241,014 14,228,524 14,237,851 
Diluted
14,325,956 14,326,011 14,356,384 14,354,284 14,328,510 
Dividend paid per common share
$0.20 $0.20 $0.18 $0.60 $0.54 
ROAA (1)
1.35%1.13%1.08 %1.17 %0.88 %
ROAE (1)
11.92%9.76%8.70 %10.10 %7.11 %
ROATCE (1), (2)
14.46%11.87%10.31 %12.30 %8.61 %
Efficiency ratio (3)
48.92%50.63%57.63 %51.04 %62.76 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a 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.
13

PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
Three Months Ended
9/30/20256/30/20259/30/2024
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)
$2,784,148 $46,193 6.58%$2,782,200 $45,478 6.56 %$2,456,015 $42,115 6.82 %
Mortgage-backed securities
120,226 1,167 3.85%117,987 1,145 3.89 %111,350 1,000 3.57 %
Collateralized mortgage obligation
19,957 197 3.92%20,616 203 3.95 %22,661 244 4.28 %
SBA loan pool securities
4,686 41 3.47%5,368 46 3.44 %6,571 69 4.18 %
Municipal bonds (2)
2,411 22 3.62%2,379 21 3.54 %2,698 24 3.54 %
Corporate bonds4,804 47 3.88%4,705 47 4.01 %4,248 47 4.40 %
Other interest-earning assets
327,637 3,804 4.61%200,875 2,368 4.73 %175,711 2,499 5.66 %
Total interest-earning assets
3,263,869 51,471 6.26%3,134,130 49,308 6.31 %2,779,254 45,998 6.58 %
Noninterest-earning assets
Cash and due from banks23,539 23,267 24,098 
ACL on loans(33,548)(31,932)(28,797)
Other assets
100,728 100,930 92,152 
Total noninterest-earning assets
90,719 92,265 87,453 
Total assets
$3,354,588 $3,226,395 $2,866,707 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$612,527 5,698 3.69%$532,842 4,772 3.59 %$496,158 5,129 4.11 %
Savings
5,519 3 0.22%5,334 4 0.30 %6,204 4 0.26 %
Time deposits
1,708,124 18,294 4.25%1,649,034 17,729 4.31 %1,390,644 17,924 5.13 %
Total interest-bearing deposits
2,326,170 23,995 4.09%2,187,210 22,505 4.13 %1,893,006 23,057 4.85 %
Other borrowings43,109 498 4.58%71,286 813 4.57 %15,848 222 5.57 %
Total interest-bearing liabilities
2,369,279 24,493 4.10%2,258,496 23,318 4.14 %1,908,854 23,279 4.85 %
Noninterest-bearing liabilities
Noninterest-bearing demand
541,243 533,530 534,761 
Other liabilities
64,232 61,740 65,716 
Total noninterest-bearing liabilities
605,475 595,270 600,477 
Total liabilities
2,974,754 2,853,766 2,509,331 
Total shareholders’ equity
379,834 372,629 357,376 
Total liabilities and shareholders’ equity
$3,354,588 $3,226,395 $2,866,707 
Net interest income
$26,978 $25,990 $22,719 
Net interest spread (3)
2.16%2.17 %1.73 %
Net interest margin (4)
3.28%3.33 %3.25 %
Total deposits
$2,867,413 $23,995 3.32%$2,720,740 $22,505 3.32 %$2,427,767 $23,057 3.78 %
Total funding (5)
$2,910,522 $24,493 3.34%$2,792,026 $23,318 3.35 %$2,443,615 $23,279 3.79 %
(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.

14

PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
Nine Months Ended
9/30/20259/30/2024
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$2,738,957 $134,697 6.58%$2,413,777 $121,992 6.75 %
Mortgage-backed securities
117,040 3,387 3.87%105,933 2,750 3.47 %
Collateralized mortgage obligation
20,530 610 3.97%23,137 747 4.31 %
SBA loan pool securities
5,322 141 3.54%6,925 221 4.26 %
Municipal bonds (2)
2,405 65 3.61%3,077 81 3.52 %
Corporate bonds4,617 141 4.08%4,211 141 4.47 %
Other interest-earning assets
246,396 8,630 4.68%201,951 8,566 5.67 %
Total interest-earning assets
3,135,267 147,671 6.30%2,759,011 134,498 6.51 %
Noninterest-earning assets
Cash and due from banks23,817 22,845 
ACL on loans(32,063)(28,251)
Other assets
100,101 89,784 
Total noninterest-earning assets
91,855 84,378 
Total assets
$3,227,122 $2,843,389 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$543,570 14,767 3.63%$474,584 14,670 4.13 %
Savings
5,488 10 0.24%6,432 12 0.25 %
Time deposits
1,669,484 54,287 4.35%1,380,379 52,878 5.12 %
Total interest-bearing deposits
2,218,542 69,064 4.16%1,861,395 67,560 4.85 %
Other borrowings39,586 1,356 4.58%35,427 1,485 5.60 %
Total interest-bearing liabilities
2,258,128 70,420 4.17%1,896,822 69,045 4.86 %
Noninterest-bearing liabilities
Noninterest-bearing demand
530,558 537,682 
Other liabilities
64,997 56,019 
Total noninterest-bearing liabilities
595,555 593,701 
Total liabilities
2,853,683 2,490,523 
Total shareholders’ equity
373,439 352,866 
Total liabilities and shareholders’ equity
$3,227,122 $2,843,389 
Net interest income
$77,251 $65,453 
Net interest spread (3)
2.13%1.65 %
Net interest margin (4)
3.29%3.17 %
Total deposits
$2,749,100 $69,064 3.36%$2,399,077 $67,560 3.76 %
Total funding (5)
$2,788,686 $70,420 3.38%$2,434,504 $69,045 3.79 %
(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
Non-GAAP Financial 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 had no intangible assets for the presented periods. ROATCE, TCE per common share, and TCE to total assets constitute supplemental financial information determined by methods other than in accordance with Generally Accepted Accounting Principles, or GAAP. These non-GAAP financial measures are used by management in its analysis of the Company's performance. These non-GAAP financial measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP financial measures with financial measures defined by GAAP.

($ in thousands)
Three Months Ended
Nine Months Ended
9/30/20256/30/20259/30/20249/30/20259/30/2024
Average total shareholders' equity(a)$379,834 $372,629 $357,376 $373,439 $352,866 
Less: average preferred stock(b)69,141 69,141 69,141 69,141 69,141 
Average TCE(c)=(a)-(b)310,693 303,488 288,235 304,298 283,725 
Net income(d)$11,412 $9,071 $7,814 $28,218 $18,780 
ROAE (1)
(d)/(a)11.92 %9.76 %8.70 %10.10 %7.11 %
Net income available to common shareholders(e)11,326 8,984 7,468 28,005 18,292 
ROATCE (1)
(e)/(c)14.46 %11.87 %10.31 %12.30 %8.61 %
(1) Annualized.
($ in thousands, except per share data)9/30/20256/30/202512/31/20249/30/2024
Total shareholders' equity(a)$384,501 $376,500 $363,814 $362,300 
Less: preferred stock(b)69,141 69,141 69,141 69,141 
TCE(c)=(a)-(b)315,360 307,359 294,673 293,159 
Outstanding common shares
(d)14,277,164 14,336,602 14,380,651 14,266,725 
Book value per common share(a)/(d)$26.93 $26.26 $25.30 $25.39 
TCE per common share(c)/(d)22.09 21.44 20.49 20.55 
Total assets(e)$3,363,506 $3,305,589 $3,063,971 $2,889,833 
Total shareholders' equity to total assets(a)/(e)11.43 %11.39 %11.87 %12.54 %
TCE to total assets(c)/(e)9.38 %9.30 %9.62 %10.14 %
16