PCB Bancorp Reports Earnings of $6.3 Million for Q2 2024

PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income of $6.3 million, or $0.43 per diluted common share, for the second quarter of 2024, compared with $4.7 million, or $0.33 per diluted common share, for the previous quarter and $7.5 million, or $0.52 per diluted common share, for the year-ago quarter.

Q2 2024 Highlights

  • Net income totaled $6.3 million, or $0.43 per diluted common share;
  • Recorded a provision for credit losses of $259 thousand for the current quarter compared with $1.1 million for the previous quarter and $197 thousand for the year-ago quarter;
  • Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.17% at June 30, 2024 compared with 1.18% at March 31, 2024, 1.19% at December 31, 2023 and 1.17% at June 30, 2023;
  • Net interest income was $21.7 million for the current quarter compared with $21.0 million for the previous quarter and $21.7 million for the year-ago quarter. Net interest margin was 3.16% for the current quarter compared with 3.10% for the previous quarter and 3.55% for the year-ago quarter;
  • Gain on sale of loans was $763 thousand for the current quarter compared with $1.1 million for the previous quarter and $769 thousand for the year-ago quarter;
  • Total assets were $2.85 billion at June 30, 2024, a decrease of $1.3 million, or 0.1%, from $2.85 billion at March 31, 2024, but an increase of $63.5 million, or 2.3%, from $2.79 billion at December 31, 2023 and an increase of $296.6 million, or 11.6%, from $2.56 billion at June 30, 2023;
  • Loans held-for-investment were $2.45 billion at June 30, 2024, an increase of $51.1 million, or 2.1%, from $2.40 billion at March 31, 2024, an increase of $125.6 million, or 5.4% from $2.32 billion at December 31, 2023, and an increase of $326.6 million, or 15.4%, from $2.12 billion at June 30, 2023;
  • Total deposits were $2.41 billion at June 30, 2024, an increase of $3.4 million, or 0.1%, from $2.40 billion at March 31, 2024, an increase of $54.6 million, or 2.3%, from $2.35 billion at December 31, 2023, and an increase of $218.0 million, or 10.0%, from $2.19 billion at June 30, 2023; and
  • The Company paid the initial quarterly preferred stock dividend at an annualized dividend rate of 2% during the current quarter. Preferred stock dividend for the current quarter was $142 thousand.

“We are pleased to share our strong second quarter results led by solid loan growth and stabilization of core deposit balance which gave rise to an improvement in our net interest margin,” said Henry Kim, President and Chief Executive Officer. Our commitment to focus on relationship banking and strategic expansions, while maintaining our conservative credit culture, has resulted in continued positive results.”

“During the second quarter our loan balance increased 2.1% to $2.5 billion, deposits increased 0.1% to $2.4 billion, and we slightly reduced the brokered deposits. We continued to maintain solid ACL to loan ratio of 1.17%, and non-performing assets and classified assets to total assets ratios of 0.26% and 0.34%, respectively. Even with the challenging high interest rate environment and its effect on our funding costs, our net interest margin expanded during the quarter. We believe our funding costs are currently near the peak and our net interest margin is showing positive sign of coming out from the bottom.”

Mr. Kim added, “As we look ahead into the second half of the year, our expanding bi-coastal branch network is well positioned to deliver continued strong balance sheet growth with solid financial results and sound asset quality that is further strengthened by our robust capital levels.”

Financial Highlights (Unaudited)

($ in thousands, except per share data)

 

Three Months Ended

 

Six Months Ended

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

Net income

 

$

6,281

 

 

$

4,685

 

 

34.1

%

 

$

7,477

 

 

(16.0

)%

 

$

10,966

 

 

$

17,774

 

 

(38.3

)%

Net income available to common shareholders

 

$

6,139

 

 

$

4,685

 

 

31.0

%

 

$

7,477

 

 

(17.9

)%

 

$

10,824

 

 

$

17,774

 

 

(39.1

)%

Diluted earnings per common share

 

$

0.43

 

 

$

0.33

 

 

30.3

%

 

$

0.52

 

 

(17.3

)%

 

$

0.75

 

 

$

1.22

 

 

(38.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

21,735

 

 

$

20,999

 

 

3.5

%

 

$

21,717

 

 

0.1

%

 

$

42,734

 

 

$

44,131

 

 

(3.2

)%

Provision (reversal) for credit losses

 

 

259

 

 

 

1,090

 

 

(76.2

)%

 

 

197

 

 

31.5

%

 

 

1,349

 

 

 

(2,581

)

 

NM

 

Noninterest income

 

 

2,485

 

 

 

2,945

 

 

(15.6

)%

 

 

2,657

 

 

(6.5

)%

 

 

5,430

 

 

 

5,678

 

 

(4.4

)%

Noninterest expense

 

 

15,175

 

 

 

16,352

 

 

(7.2

)%

 

 

13,627

 

 

11.4

%

 

 

31,527

 

 

 

27,381

 

 

15.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

 

0.89

%

 

 

0.67

%

 

 

 

 

1.19

%

 

 

 

 

0.78

%

 

 

1.44

%

 

 

Return on average shareholders’ equity (1)

 

 

7.19

%

 

 

5.39

%

 

 

 

 

8.82

%

 

 

 

 

6.29

%

 

 

10.62

%

 

 

Return on average tangible common equity (“TCE”) (1),(2)

 

 

8.96

%

 

 

6.72

%

 

 

 

 

11.08

%

 

 

 

 

7.84

%

 

 

13.35

%

 

 

Net interest margin (1)

 

 

3.16

%

 

 

3.10

%

 

 

 

 

3.55

%

 

 

 

 

3.13

%

 

 

3.67

%

 

 

Efficiency ratio (3)

 

 

62.65

%

 

 

68.29

%

 

 

 

 

55.91

%

 

 

 

 

65.46

%

 

 

54.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per share data)

 

6/30/2024

 

3/31/2024

 

% Change

 

12/31/2023

 

% Change

 

6/30/2023

 

% Change

Total assets

 

$

2,852,964

 

 

$

2,854,292

 

 

(0.1

)%

 

$

2,789,506

 

 

2.3

%

 

$

2,556,345

 

 

11.6

%

Net loans held-for-investment

 

 

2,420,327

 

 

 

2,369,632

 

 

2.1

%

 

 

2,295,919

 

 

5.4

%

 

 

2,097,560

 

 

15.4

%

Total deposits

 

 

2,406,254

 

 

 

2,402,840

 

 

0.1

%

 

 

2,351,612

 

 

2.3

%

 

 

2,188,232

 

 

10.0

%

Book value per common share (4)

 

$

24.80

 

 

$

24.54

 

 

 

 

$

24.46

 

 

 

 

$

23.77

 

 

 

TCE per common share (2)

 

$

19.95

 

 

$

19.69

 

 

 

 

$

19.62

 

 

 

 

$

18.94

 

 

 

Tier 1 leverage ratio (consolidated)

 

 

12.66

%

 

 

12.73

%

 

 

 

 

13.43

%

 

 

 

 

13.84

%

 

 

Total shareholders’ equity to total assets

 

 

12.39

%

 

 

12.26

%

 

 

 

 

12.51

%

 

 

 

 

13.32

%

 

 

TCE to total assets (2), (5)

 

 

9.97

%

 

 

9.84

%

 

 

 

 

10.03

%

 

 

 

 

10.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 shareholdersequity by the number of outstanding common shares.

(5)

The Company did not have any intangible asset component for the presented periods.

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

 

Six Months Ended

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

Interest income/expense on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

40,626

 

 

$

39,251

 

 

3.5

%

 

$

32,960

 

 

23.3

%

 

$

79,877

 

 

$

64,189

 

 

24.4

%

Investment securities

 

 

1,310

 

 

 

1,246

 

 

5.1

%

 

 

1,136

 

 

15.3

%

 

 

2,556

 

 

 

2,238

 

 

14.2

%

Other interest-earning assets

 

 

3,009

 

 

 

3,058

 

 

(1.6

)%

 

 

2,742

 

 

9.7

%

 

 

6,067

 

 

 

4,947

 

 

22.6

%

Total interest-earning assets

 

 

44,945

 

 

 

43,555

 

 

3.2

%

 

 

36,838

 

 

22.0

%

 

 

88,500

 

 

 

71,374

 

 

24.0

%

Interest-bearing deposits

 

 

22,536

 

 

 

21,967

 

 

2.6

%

 

 

15,121

 

 

49.0

%

 

 

44,503

 

 

 

27,034

 

 

64.6

%

Borrowings

 

 

674

 

 

 

589

 

 

14.4

%

 

 

 

 

%

 

 

1,263

 

 

 

209

 

 

504.3

%

Total interest-bearing liabilities

 

 

23,210

 

 

 

22,556

 

 

2.9

%

 

 

15,121

 

 

53.5

%

 

 

45,766

 

 

 

27,243

 

 

68.0

%

Net interest income

 

$

21,735

 

 

$

20,999

 

 

3.5

%

 

$

21,717

 

 

0.1

%

 

$

42,734

 

 

$

44,131

 

 

(3.2

)%

Average balance of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

2,414,824

 

 

$

2,370,027

 

 

1.9

%

 

$

2,097,489

 

 

15.1

%

 

$

2,392,426

 

 

$

2,085,021

 

 

14.7

%

Investment securities

 

 

141,816

 

 

 

140,459

 

 

1.0

%

 

 

142,136

 

 

(0.2

)%

 

 

141,137

 

 

 

142,107

 

 

(0.7

)%

Other interest-earning assets

 

 

213,428

 

 

 

217,002

 

 

(1.6

)%

 

 

213,883

 

 

(0.2

)%

 

 

215,215

 

 

 

200,420

 

 

7.4

%

Total interest-earning assets

 

$

2,770,068

 

 

$

2,727,488

 

 

1.6

%

 

$

2,453,508

 

 

12.9

%

 

$

2,748,778

 

 

$

2,427,548

 

 

13.2

%

Interest-bearing deposits

 

$

1,863,623

 

 

$

1,827,209

 

 

2.0

%

 

$

1,527,522

 

 

22.0

%

 

$

1,845,417

 

 

$

1,469,490

 

 

25.6

%

Borrowings

 

 

48,462

 

 

 

42,187

 

 

14.9

%

 

 

 

 

%

 

 

45,324

 

 

 

7,862

 

 

476.5

%

Total interest-bearing liabilities

 

$

1,912,085

 

 

$

1,869,396

 

 

2.3

%

 

$

1,527,522

 

 

25.2

%

 

$

1,890,741

 

 

$

1,477,352

 

 

28.0

%

Total funding (1)

 

$

2,447,593

 

 

$

2,412,207

 

 

1.5

%

 

$

2,155,649

 

 

13.5

%

 

$

2,429,900

 

 

$

2,135,039

 

 

13.8

%

Annualized average yield/cost of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

6.77

%

 

 

6.66

%

 

 

 

 

6.30

%

 

 

 

 

6.71

%

 

 

6.21

%

 

 

Investment securities

 

 

3.72

%

 

 

3.57

%

 

 

 

 

3.21

%

 

 

 

 

3.64

%

 

 

3.18

%

 

 

Other interest-earning assets

 

 

5.67

%

 

 

5.67

%

 

 

 

 

5.14

%

 

 

 

 

5.67

%

 

 

4.98

%

 

 

Total interest-earning assets

 

 

6.53

%

 

 

6.42

%

 

 

 

 

6.02

%

 

 

 

 

6.47

%

 

 

5.93

%

 

 

Interest-bearing deposits

 

 

4.86

%

 

 

4.84

%

 

 

 

 

3.97

%

 

 

 

 

4.85

%

 

 

3.71

%

 

 

Borrowings

 

 

5.59

%

 

 

5.62

%

 

 

 

 

%

 

 

 

 

5.60

%

 

 

5.36

%

 

 

Total interest-bearing liabilities

 

 

4.88

%

 

 

4.85

%

 

 

 

 

3.97

%

 

 

 

 

4.87

%

 

 

3.72

%

 

 

Net interest margin

 

 

3.16

%

 

 

3.10

%

 

 

 

 

3.55

%

 

 

 

 

3.13

%

 

 

3.67

%

 

 

Cost of total funding (1)

 

 

3.81

%

 

 

3.76

%

 

 

 

 

2.81

%

 

 

 

 

3.79

%

 

 

2.57

%

 

 

Supplementary information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net accretion of discount on loans

 

$

791

 

 

$

573

 

 

38.0

%

 

$

751

 

 

5.3

%

 

$

1,364

 

 

$

1,422

 

 

(4.1

)%

Net amortization of deferred loan fees

 

$

339

 

 

$

334

 

 

1.5

%

 

$

247

 

 

37.2

%

 

$

673

 

 

$

422

 

 

59.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

Loans. The increase in average yield for the current quarter was primarily due to increases in overall interest rates on loans, accretion of discount on loans and prepayment fees. The increase for the current year-to-date period was primarily due to increases in overall interest rates on loans and net amortization of deferred loan fees.

The following table presents a composition of total loans by interest rate type accompanied with the weighted-average contractual rates as of the dates indicated:

 

 

6/30/2024

 

3/31/2024

 

12/31/2023

 

6/30/2023

 

 

% to Total Loans

 

Weighted-Average Contractual Rate

 

% to Total Loans

 

Weighted-Average Contractual Rate

 

% to Total Loans

 

Weighted-Average Contractual Rate

 

% to Total Loans

 

Weighted-Average Contractual Rate

Fixed rate loans

 

18.8

%

 

5.04

%

 

20.0

%

 

4.92

%

 

21.2

%

 

4.86

%

 

22.6

%

 

4.64

%

Hybrid rate loans

 

37.2

%

 

5.04

%

 

38.6

%

 

5.01

%

 

39.0

%

 

4.93

%

 

39.2

%

 

4.62

%

Variable rate loans

 

44.0

%

 

8.45

%

 

41.4

%

 

8.46

%

 

39.8

%

 

8.51

%

 

38.2

%

 

8.39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities. The increases in average yield for the current quarter and year-to-date periods were primarily due to higher yield on newly purchased investment securities.

Other Interest-Earning Assets. The increase in average yield for the current quarter and year-to-date period compared with the same periods of 2023 were primarily due to increases in interest rate on cash held at the Federal Reserve Bank and dividends received on Federal Home Loan Bank stock.

Interest-Bearing Deposits. The increase in average cost for the current quarter and year-to-date period were primarily due to an increase in market rates.

Provision (Reversal) for Credit Losses

The following table presents a composition of provision (reversal) for credit losses for the periods indicated:

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

Provision (reversal) for credit losses on loans

 

$

329

 

 

$

922

 

(64.3

)%

 

$

157

 

109.6

%

 

$

1,251

 

$

(2,260

)

 

NM

Provision (reversal) for credit losses on off-balance sheet credit exposure

 

 

(70

)

 

 

168

 

NM

 

 

 

40

 

NM

 

 

 

98

 

 

(321

)

 

NM

Total provision (reversal) for credit losses

 

$

259

 

 

$

1,090

 

(76.2

)%

 

$

197

 

31.5

%

 

$

1,349

 

$

(2,581

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The provision for credit losses on loans for the current quarter was primarily due to an increase in loans held-for-investment.

Noninterest Income

The following table presents the components of noninterest income for the periods indicated:

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

Gain on sale of loans

 

$

763

 

$

1,078

 

(29.2

)%

 

$

769

 

(0.8

)%

 

$

1,841

 

$

2,078

 

(11.4

)%

Service charges and fees on deposits

 

 

364

 

 

378

 

(3.7

)%

 

 

369

 

(1.4

)%

 

 

742

 

 

713

 

4.1

%

Loan servicing income

 

 

799

 

 

919

 

(13.1

)%

 

 

868

 

(7.9

)%

 

 

1,718

 

 

1,728

 

(0.6

)%

Bank-owned life insurance income

 

 

236

 

 

228

 

3.5

%

 

 

184

 

28.3

%

 

 

464

 

 

364

 

27.5

%

Other income

 

 

323

 

 

342

 

(5.6

)%

 

 

467

 

(30.8

)%

 

 

665

 

 

795

 

(16.4

)%

Total noninterest income

 

$

2,485

 

$

2,945

 

(15.6

)%

 

$

2,657

 

(6.5

)%

 

$

5,430

 

$

5,678

 

(4.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

Gain on sale of SBA loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sold loan balance

 

$

13,619

 

$

19,414

 

(29.8

)%

 

$

16,762

 

(18.8

)%

 

$

33,033

 

$

43,895

 

(24.7

)%

Premium received

 

 

1,056

 

 

1,596

 

(33.8

)%

 

 

1,209

 

(12.7

)%

 

 

2,652

 

 

3,250

 

(18.4

)%

Gain recognized

 

 

763

 

 

1,078

 

(29.2

)%

 

 

769

 

(0.8

)%

 

 

1,841

 

 

2,078

 

(11.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

Loan servicing income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income received

 

$

1,318

 

 

$

1,293

 

 

1.9

%

 

$

1,317

 

 

0.1

%

 

$

2,611

 

 

$

2,601

 

 

0.4

%

Servicing assets amortization

 

 

(519

)

 

 

(374

)

 

38.8

%

 

 

(449

)

 

15.6

%

 

 

(893

)

 

 

(873

)

 

2.3

%

Loan servicing income

 

$

799

 

 

$

919

 

 

(13.1

)%

 

$

868

 

 

(7.9

)%

 

$

1,718

 

 

$

1,728

 

 

(0.6

)%

Underlying loans at end of period

 

$

527,458

 

 

$

540,039

 

 

(2.3

)%

 

$

539,160

 

 

(2.2

)%

 

$

527,458

 

 

$

539,160

 

 

(2.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company services SBA loans and certain residential property loans sold to the secondary market.

Noninterest Expense

The following table presents the components of noninterest expense for the periods indicated:

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

Salaries and employee benefits

 

$

9,225

 

$

9,218

 

0.1

%

 

$

8,675

 

6.3

%

 

$

18,443

 

$

17,603

 

4.8

%

Occupancy and equipment

 

 

2,300

 

 

2,358

 

(2.5

)%

 

 

1,919

 

19.9

%

 

 

4,658

 

 

3,815

 

22.1

%

Professional fees

 

 

973

 

 

1,084

 

(10.2

)%

 

 

772

 

26.0

%

 

 

2,057

 

 

1,504

 

36.8

%

Marketing and business promotion

 

 

318

 

 

319

 

(0.3

)%

 

 

203

 

56.7

%

 

 

637

 

 

575

 

10.8

%

Data processing

 

 

495

 

 

402

 

23.1

%

 

 

380

 

30.3

%

 

 

897

 

 

792

 

13.3

%

Director fees and expenses

 

 

221

 

 

232

 

(4.7

)%

 

 

217

 

1.8

%

 

 

453

 

 

397

 

14.1

%

Regulatory assessments

 

 

327

 

 

298

 

9.7

%

 

 

382

 

(14.4

)%

 

 

625

 

 

537

 

16.4

%

Other expense

 

 

1,316

 

 

2,441

 

(46.1

)%

 

 

1,079

 

22.0

%

 

 

3,757

 

 

2,158

 

74.1

%

Total noninterest expense

 

$

15,175

 

$

16,352

 

(7.2

)%

 

$

13,627

 

11.4

%

 

$

31,527

 

$

27,381

 

15.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits. The increase for the current quarter compared with the year-ago quarter was primarily due to increases in salaries, and bonus and vacation accruals. The increase for the current year-to-date period was primarily due to increases in salaries and incentives tied to sales of SBA loans originated at loan production offices, partially offset by decreases in bonus and vacation accruals. The number of full-time equivalent employees was 265, 272 and 272 as of June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

Occupancy and Equipment. The increases for the current quarter and year-to-date period were primarily due to an expansion of headquarters location in the second half of 2023 and a relocation of a regional office and two branches into one location in Orange County, California.

Professional Fees. The decrease for the current quarter compared with the previous quarter was primarily due to a decrease in professional fees related to a core system conversion completed in April 2024. The increase for the current year-to-date period was primarily due to the aforementioned.

Other Expense. The decrease for the current quarter compared with the previous quarter was primarily due to a termination charge for the legacy core system of $508 thousand and an expense of $815 thousand for a reimbursement for an SBA loan guarantee previously paid by the SBA on a loan originated in 2014 that subsequently defaulted and was ultimately determined to be ineligible for the SBA guaranty during the previous quarter. The Company has retained a law firm specializing in SBA recovery demands to seek that SBA reconsider the evidence and allow the Company to recoup all or part of the reimbursement. The increase for the current year-to-date period was primarily due to the two aforementioned matters.

Balance Sheet (Unaudited)

Total assets were $2.85 billion at June 30, 2024, a decrease of $1.3 million, or 0.1%, from $2.85 billion at March 31, 2024, an increase of $63.5 million, or 2.3%, from $2.79 billion at December 31, 2023, and an increase of $296.6 million, or 11.6%, from $2.56 billion at June 30, 2023. The increases for the current quarter and year-to-date period were primarily due to increases in loans held-for-investment and securities available-for-sale, partially offset by a decrease in 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)

 

6/30/2024

 

3/31/2024

 

% Change

 

12/31/2023

 

% Change

 

6/30/2023

 

% Change

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

$

852,677

 

$

874,300

 

(2.5

)%

 

$

855,270

 

(0.3

)%

 

$

793,946

 

7.4

%

Business property

 

 

572,643

 

 

578,903

 

(1.1

)%

 

 

558,772

 

2.5

%

 

 

533,592

 

7.3

%

Multifamily

 

 

177,657

 

 

131,742

 

34.9

%

 

 

132,500

 

34.1

%

 

 

124,029

 

43.2

%

Construction

 

 

28,316

 

 

29,212

 

(3.1

)%

 

 

24,843

 

14.0

%

 

 

16,942

 

67.1

%

Total commercial real estate

 

 

1,631,293

 

 

1,614,157

 

1.1

%

 

 

1,571,385

 

3.8

%

 

 

1,468,509

 

11.1

%

Commercial and industrial

 

 

417,333

 

 

371,934

 

12.2

%

 

 

342,002

 

22.0

%

 

 

272,278

 

53.3

%

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

384,905

 

 

389,888

 

(1.3

)%

 

 

389,420

 

(1.2

)%

 

 

359,655

 

7.0

%

Other consumer

 

 

15,543

 

 

21,985

 

(29.3

)%

 

 

20,645

 

(24.7

)%

 

 

21,985

 

(29.3

)%

Total consumer

 

 

400,448

 

 

411,873

 

(2.8

)%

 

 

410,065

 

(2.3

)%

 

 

381,640

 

4.9

%

Loans held-for-investment

 

 

2,449,074

 

 

2,397,964

 

2.1

%

 

 

2,323,452

 

5.4

%

 

 

2,122,427

 

15.4

%

Loans held-for-sale

 

 

2,959

 

 

3,256

 

(9.1

)%

 

 

5,155

 

(42.6

)%

 

 

13,065

 

(77.4

)%

Total loans

 

$

2,452,033

 

$

2,401,220

 

2.1

%

 

$

2,328,607

 

5.3

%

 

$

2,135,492

 

14.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans included in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held-for-investment

 

$

144,440

 

$

148,316

 

(2.6

)%

 

$

145,603

 

(0.8

)%

 

$

147,357

 

(2.0

)%

Loans held-for-sale

 

$

2,959

 

$

3,256

 

(9.1

)%

 

$

5,155

 

(42.6

)%

 

$

13,065

 

(77.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The increase in loans held-for-investment for the current quarter was primarily due to new funding and advances on lines of credit of $597.8 million, partially offset by pay-downs and pay-offs of $546.7 million. The increase for the current year-to-date period was primarily due to new funding and advances on lines of credit of $1.07 billion, partially offset by pay-downs and pay-offs of $940.6 million.

The decrease in loans held-for-sale for the current quarter was primarily due to sales of $13.6 million, and pay-downs and pay-offs of $40 thousand, partially offset by new funding of $13.4 million. The decrease for the current year-to-date period was primarily due to sales of $33.0 million, and pay-downs and pay-offs of $1.6 million, partially offset by new funding of $32.4 million

The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

12/31/2023

 

% Change

 

6/30/2023

 

% Change

Commercial property

 

$

6,309

 

$

8,687

 

(27.4

)%

 

$

11,634

 

(45.8

)%

 

$

11,118

 

(43.3

)%

Business property

 

 

11,607

 

 

10,196

 

13.8

%

 

 

9,899

 

17.3

%

 

 

9,487

 

22.3

%

Multifamily

 

 

1,800

 

 

1,800

 

%

 

 

1,800

 

%

 

 

4,500

 

(60.0

)%

Construction

 

 

22,030

 

 

22,895

 

(3.8

)%

 

 

23,739

 

(7.2

)%

 

 

30,865

 

(28.6

)%

Commercial and industrial

 

 

336,121

 

 

384,034

 

(12.5

)%

 

 

351,025

 

(4.2

)%

 

 

279,584

 

20.2

%

Other consumer

 

 

5,192

 

 

992

 

423.4

%

 

 

3,421

 

51.8

%

 

 

445

 

1,066.7

%

Total commitments to extend credit

 

 

383,059

 

 

428,604

 

(10.6

)%

 

 

401,518

 

(4.6

)%

 

 

335,999

 

14.0

%

Letters of credit

 

 

6,808

 

 

6,558

 

3.8

%

 

 

6,583

 

3.4

%

 

 

6,027

 

13.0

%

Total off-balance sheet credit exposure

 

$

389,867

 

$

435,162

 

(10.4

)%

 

$

408,101

 

(4.5

)%

 

$

342,026

 

14.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality

The following table presents a summary of non-performing loans and assets, and classified assets as of the dates indicated:

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

12/31/2023

 

% Change

 

6/30/2023

 

% Change

Nonaccrual loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

$

1,804

 

 

$

932

 

 

93.6

%

 

$

958

 

 

88.3

%

 

$

699

 

 

158.1

%

Business property

 

 

2,440

 

 

 

3,455

 

 

(29.4

)%

 

 

2,865

 

 

(14.8

)%

 

 

3,007

 

 

(18.9

)%

Multifamily

 

 

2,038

 

 

 

 

 

NM

 

 

 

 

 

NM

 

 

 

 

 

NM

 

Total commercial real estate

 

 

6,282

 

 

 

4,387

 

 

43.2

%

 

 

3,823

 

 

64.3

%

 

 

3,706

 

 

69.5

%

Commercial and industrial

 

 

112

 

 

 

111

 

 

0.9

%

 

 

68

 

 

64.7

%

 

 

88

 

 

27.3

%

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

1,100

 

 

 

436

 

 

152.3

%

 

 

 

 

NM

 

 

 

 

 

NM

 

Other consumer

 

 

6

 

 

 

6

 

 

%

 

 

25

 

 

(76.0

)%

 

 

51

 

 

(88.2

)%

Total consumer

 

 

1,106

 

 

 

442

 

 

150.2

%

 

 

25

 

 

4,324.0

%

 

 

51

 

 

2,068.6

%

Total nonaccrual loans held-for-investment

 

 

7,500

 

 

 

4,940

 

 

51.8

%

 

 

3,916

 

 

91.5

%

 

 

3,845

 

 

95.1

%

Loans past due 90 days or more and still accruing

 

 

 

 

 

 

 

%

 

 

 

 

%

 

 

 

 

%

Non-performing loans (“NPLs”)

 

 

7,500

 

 

 

4,940

 

 

51.8

%

 

 

3,916

 

 

91.5

%

 

 

3,845

 

 

95.1

%

Other real estate owned (“OREO”)

 

 

 

 

 

 

 

%

 

 

2,558

 

 

(100.0

)%

 

 

 

 

%

Non-performing assets (“NPAs”)

 

$

7,500

 

 

$

4,940

 

 

51.8

%

 

$

6,474

 

 

15.8

%

 

$

3,845

 

 

95.1

%

Loans past due and still accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due 30 to 59 days

 

$

2,245

 

 

$

3,412

 

 

(34.2

)%

 

$

1,394

 

 

61.0

%

 

$

428

 

 

424.5

%

Past due 60 to 89 days

 

 

41

 

 

 

1,103

 

 

(96.3

)%

 

 

34

 

 

20.6

%

 

 

 

 

NM

 

Past due 90 days or more

 

 

 

 

 

 

 

%

 

 

 

 

%

 

 

 

 

%

Total loans past due and still accruing

 

$

2,286

 

 

$

4,515

 

 

(49.4

)%

 

 

1,428

 

 

60.1

%

 

$

428

 

 

434.1

%

Special mention loans

 

$

5,080

 

 

$

1,101

 

 

361.4

%

 

$

5,156

 

 

(1.5

)%

 

$

5,406

 

 

(6.0

)%

Classified assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans held-for-investment

 

$

9,752

 

 

$

7,771

 

 

25.5

%

 

$

7,000

 

 

39.3

%

 

$

6,901

 

 

41.3

%

OREO

 

 

 

 

 

 

 

%

 

 

2,558

 

 

(100.0

)%

 

 

 

 

%

Classified assets

 

$

9,752

 

 

$

7,771

 

 

25.5

%

 

$

9,558

 

 

2.0

%

 

$

6,901

 

 

41.3

%

NPLs to loans held-for-investment

 

 

0.31

%

 

 

0.21

%

 

 

 

 

0.17

%

 

 

 

 

0.18

%

 

 

NPAs to total assets

 

 

0.26

%

 

 

0.17

%

 

 

 

 

0.23

%

 

 

 

 

0.15

%

 

 

Classified assets to total assets

 

 

0.34

%

 

 

0.27

%

 

 

 

 

0.34

%

 

 

 

 

0.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

During the fourth quarter of 2023, the Company recognized an OREO of $2.6 million by transferring a SBA 7(a) loan, of which the guaranteed portion was previously sold. The Company’s exposure was 25% of the OREO and the SBA was entitled to 75% of the sale price upon the sale of property. The Company sold the property and recognized a gain of $13 thousand during the first quarter of 2024.

Allowance for Credit Losses

The following table presents activities in ACL for the periods indicated:

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

ACL on loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

28,332

 

 

$

27,533

 

 

2.9

%

 

$

24,694

 

 

14.7

%

 

$

27,533

 

 

$

24,942

 

 

10.4

%

Impact of ASC 326 adoption

 

 

 

 

 

 

 

NM

 

 

 

 

 

NM

 

 

 

 

 

 

1,067

 

 

NM

 

Charge-offs

 

 

 

 

 

(185

)

 

(100.0

)%

 

 

(7

)

 

(100.0

)%

 

 

(185

)

 

 

(7

)

 

2,542.9

%

Recoveries

 

 

86

 

 

 

62

 

 

38.7

%

 

 

23

 

 

273.9

%

 

 

148

 

 

 

1,125

 

 

(86.8

)%

Provision (reversal) for credit losses on loans

 

 

329

 

 

 

922

 

 

(64.3

)%

 

 

157

 

 

109.6

%

 

 

1,251

 

 

 

(2,260

)

 

(155.4

)%

Balance at end of period

 

$

28,747

 

 

$

28,332

 

 

1.5

%

 

$

24,867

 

 

15.6

%

 

$

28,747

 

 

$

24,867

 

 

15.6

%

Percentage to loans held-for-investment at end of period

 

 

1.17

%

 

 

1.18

%

 

 

 

 

1.17

%

 

 

 

 

1.17

%

 

 

1.17

%

 

 

ACL on off-balance sheet credit exposure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

1,445

 

 

$

1,277

 

 

13.2

%

 

$

1,545

 

 

(6.5

)%

 

$

1,277

 

 

$

299

 

 

327.1

%

Impact of ASC 326 adoption

 

 

 

 

 

 

 

NM

 

 

 

 

 

NM

 

 

 

 

 

 

1,607

 

 

NM

 

Provision (reversal) for credit losses on off-balance sheet credit exposure

 

 

(70

)

 

 

168

 

 

NM

 

 

 

40

 

 

NM

 

 

 

98

 

 

 

(321

)

 

NM

 

Balance at end of period

 

$

1,375

 

 

$

1,445

 

 

(4.8

)%

 

$

1,585

 

 

(13.2

)%

 

$

1,375

 

 

$

1,585

 

 

(13.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 $148.0 million at June 30, 2024, an increase of $9.8 million, or 7.1%, from $138.2 million at March 31, 2024, an increase of $4.7 million, 3.3%, from $143.3 million at December 31, 2023, and an increase of $9.3 million, or 6.7%, from $138.7 million at June 30, 2023. The increase for the current quarter was primarily due to purchases of $14.8 million, partially offset by principal pay-downs of $4.8 million, a fair value decrease of $103 thousand, and net premium amortization of $41 thousand. The increase for the current year-to-date period was primarily due to purchases of $14.8 million, partially offset by principal pay-downs of $8.3 million, a fair value decrease of $1.7 million, and net premium amortization of $82 thousand.

Deposits

The following table presents the Company’s deposit mix as of the dates indicated:

 

 

6/30/2024

 

3/31/2024

 

12/31/2023

 

6/30/2023

($ in thousands)

 

Amount

 

% to Total

 

Amount

 

% to Total

 

Amount

 

% to Total

 

Amount

 

% to Total

Noninterest-bearing demand deposits

 

$

543,538

 

22.6

%

 

$

538,380

 

22.4

%

 

$

594,673

 

25.3

%

 

$

635,329

 

29.0

%

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

 

 

7,821

 

0.3

%

 

 

6,153

 

0.3

%

 

 

6,846

 

0.3

%

 

 

7,504

 

0.3

%

NOW

 

 

18,346

 

0.8

%

 

 

16,232

 

0.7

%

 

 

16,825

 

0.7

%

 

 

16,993

 

0.8

%

Retail money market accounts

 

 

457,760

 

18.9

%

 

 

461,221

 

19.0

%

 

 

397,531

 

16.8

%

 

 

464,655

 

21.1

%

Brokered money market accounts

 

 

1

 

0.1

%

 

 

1

 

0.1

%

 

 

1

 

0.1

%

 

 

1

 

0.1

%

Retail time deposits of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$250,000 or less

 

 

475,923

 

19.8

%

 

 

471,528

 

19.6

%

 

 

456,293

 

19.4

%

 

 

392,012

 

17.9

%

More than $250,000

 

 

559,832

 

23.2

%

 

 

549,550

 

22.9

%

 

 

515,702

 

21.9

%

 

 

451,590

 

20.7

%

State and brokered time deposits

 

 

343,033

 

14.3

%

 

 

359,775

 

15.0

%

 

 

363,741

 

15.5

%

 

 

220,148

 

10.1

%

Total interest-bearing deposits

 

 

1,862,716

 

77.4

%

 

 

1,864,460

 

77.6

%

 

 

1,756,939

 

74.7

%

 

 

1,552,903

 

71.0

%

Total deposits

 

$

2,406,254

 

100.0

%

 

$

2,402,840

 

100.0

%

 

$

2,351,612

 

100.0

%

 

$

2,188,232

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated total deposits not covered by deposit insurance

 

$

1,020,963

 

42.4

%

 

$

1,017,696

 

42.4

%

 

$

947,294

 

40.3

%

 

$

1,034,148

 

47.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total retail deposits were $2.06 billion at June 30, 2024, an increase of $20.2 million, or 1.0%, from $2.04 billion at March 31, 2024, an increase of $75.4 million, or 3.8%, from $1.99 billion at December 31, 2023, and an increase of $95.1 million, or 4.8%, from $1.97 billion at June 30, 2023.

The increase in retail time deposits for the current quarter was primarily due to new accounts of $72.9 million, renewals of the matured accounts of $183.4 million and balance increases of $10.2 million, partially offset by matured and closed accounts of $251.8 million. The increase for the current year-to-date period was primarily due to new accounts of $196.1 million, renewals of the matured accounts of $442.5 million and balance increases of $18.8 million, partially offset by matured and closed accounts of $593.7 million.

Liquidity

The following table presents a summary of the Company’s liquidity position as of June 30, 2024:

($ in thousands)

 

6/30/2024

 

12/31/2023

 

% Change

Cash and cash equivalents

 

$

177,630

 

 

$

242,342

 

 

(26.7

)%

Cash and cash equivalents to total assets

 

 

6.2

%

 

 

8.7

%

 

 

 

 

 

 

 

 

 

Available borrowing capacity

 

 

 

 

 

 

FHLB advances

 

$

697,571

 

 

$

602,976

 

 

15.7

%

Federal Reserve Discount Window

 

 

574,245

 

 

 

528,893

 

 

8.6

%

Overnight federal funds lines

 

 

61,000

 

 

 

65,000

 

 

(6.2

)%

Total

 

$

1,332,816

 

 

$

1,196,869

 

 

11.4

%

Total available borrowing capacity to total assets

 

 

46.7

%

 

 

42.9

%

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

Shareholders’ equity was $353.5 million at June 30, 2024, an increase of $3.5 million, or 1.0%, from $350.0 million at March 31, 2024, an increase of $4.6 million, or 1.3%, from $348.9 million at December 31, 2023, and an increase of $13.1 million, or 3.8%, from $340.4 million at June 30, 2023. The increase for the current quarter was primarily due to net income, partially offset by cash dividends declared on common stock of $2.6 million, preferred stock dividends of $142 thousand, and repurchase of common stock of $222 thousand. The increase for the current year-to-date period was primarily due to net income, partially offset by cash dividends declared on common stock of $5.1 million, preferred stock dividends of $142 thousand, repurchase of common stock of $222 thousand, and an increase in accumulated other comprehensive loss of $1.2 million.

Stock Repurchases

In 2023, the Company repurchased and retired 512,657 shares of common stock at a weighted-average price of $17.22, totaling $8.8 million. During the current year-to-date period, the Company repurchased and retired 14,947 shares of common stock at a weighted-average price of $14.88, totaling $222 thousand. As of June 30, 2024, the Company is authorized to purchase 577,777 additional shares under the its current stock repurchase program, which expires on August 2, 2024.

Preferred Stock Under the Emergency Capital Investment Program

On May 24, 2022, the Company issued 69,141 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference of $1,000 per share (“Series C Preferred Stock”) for the capital investment of $69.1 million from the U.S. Treasury under the Emergency Capital Investment Program (“ECIP”). The ECIP investment is treated as tier 1 capital for regulatory capital purposes.

The Series C Preferred Stock bore no dividend for the first 24 months following the investment date. Thereafter, the dividend rate will be measured 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 paid the initial quarterly dividend at an annualized dividend rate of 2% beginning in the second quarter of 2024.

Capital Ratios

Based on the Federal Reserve’s Small Bank Holding Company policy, the Company is not currently subject to consolidated minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will be subject to consolidated capital requirements independent of the Bank. For comparison purposes, the Company’s capital ratios are included in following table, which presents capital ratios for the Company and the Bank as of the dates indicated:

 

 

6/30/2024

 

3/31/2024

 

12/31/2023

 

6/30/2023

 

Well Capitalized Minimum Requirements

PCB Bancorp

 

 

 

 

 

 

 

 

 

 

Common tier 1 capital (to risk-weighted assets)

 

11.91

%

 

11.88

%

 

12.23

%

 

13.12

%

 

N/A

 

Total capital (to risk-weighted assets)

 

15.94

%

 

15.93

%

 

16.39

%

 

17.57

%

 

N/A

 

Tier 1 capital (to risk-weighted assets)

 

14.71

%

 

14.71

%

 

15.16

%

 

16.34

%

 

N/A

 

Tier 1 capital (to average assets)

 

12.66

%

 

12.73

%

 

13.43

%

 

13.84

%

 

N/A

 

PCB Bank

 

 

 

 

 

 

 

 

 

 

Common tier 1 capital (to risk-weighted assets)

 

14.38

%

 

14.37

%

 

14.85

%

 

16.00

%

 

6.5

%

Total capital (to risk-weighted assets)

 

15.60

%

 

15.59

%

 

16.07

%

 

17.23

%

 

10.0

%

Tier 1 capital (to risk-weighted assets)

 

14.38

%

 

14.37

%

 

14.85

%

 

16.00

%

 

8.0

%

Tier 1 capital (to average assets)

 

12.37

%

 

12.44

%

 

13.16

%

 

13.55

%

 

5.0

%

 

 

 

 

 

 

 

 

 

 

 

About PCB Bancorp

PCB Bancorp is the bank holding company for PCB Bank, a California state chartered bank, offering a full suite of commercial banking services to small to medium-sized businesses, individuals and professionals, primarily in Southern California, and predominantly in Korean-American and other minority communities.

Cautionary Note Regarding Forward-Looking Statements

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

PCB Bancorp and Subsidiary

Consolidated Balance Sheets (Unaudited)

($ in thousands, except share and per share data)

 

 

 

6/30/2024

 

3/31/2024

 

% Change

 

12/31/2023

 

% Change

 

6/30/2023

 

% Change

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

23,247

 

 

$

29,432

 

 

(21.0

)%

 

$

26,518

 

 

(12.3

)%

 

$

22,159

 

 

4.9

%

Interest-bearing deposits in other financial institutions

 

 

154,383

 

 

 

210,359

 

 

(26.6

)%

 

 

215,824

 

 

(28.5

)%

 

 

199,987

 

 

(22.8

)%

Total cash and cash equivalents

 

 

177,630

 

 

 

239,791

 

 

(25.9

)%

 

 

242,342

 

 

(26.7

)%

 

 

222,146

 

 

(20.0

)%

Securities available-for-sale, at fair value

 

 

148,009

 

 

 

138,170

 

 

7.1

%

 

 

143,323

 

 

3.3

%

 

 

138,673

 

 

6.7

%

Loans held-for-sale

 

 

2,959

 

 

 

3,256

 

 

(9.1

)%

 

 

5,155

 

 

(42.6

)%

 

 

13,065

 

 

(77.4

)%

Loans held-for-investment

 

 

2,449,074

 

 

 

2,397,964

 

 

2.1

%

 

 

2,323,452

 

 

5.4

%

 

 

2,122,427

 

 

15.4

%

Allowance for credit losses on loans

 

 

(28,747

)

 

 

(28,332

)

 

1.5

%

 

 

(27,533

)

 

4.4

%

 

 

(24,867

)

 

15.6

%

Net loans held-for-investment

 

 

2,420,327

 

 

 

2,369,632

 

 

2.1

%

 

 

2,295,919

 

 

5.4

%

 

 

2,097,560

 

 

15.4

%

Premises and equipment, net

 

 

8,923

 

 

 

8,892

 

 

0.3

%

 

 

5,999

 

 

48.7

%

 

 

6,394

 

 

39.6

%

Federal Home Loan Bank and other bank stock

 

 

14,042

 

 

 

12,716

 

 

10.4

%

 

 

12,716

 

 

10.4

%

 

 

12,716

 

 

10.4

%

Other real estate owned, net

 

 

 

 

 

 

 

%

 

 

2,558

 

 

(100.0

)%

 

 

 

 

%

Bank-owned life insurance

 

 

31,281

 

 

 

31,045

 

 

0.8

%

 

 

30,817

 

 

1.5

%

 

 

30,428

 

 

2.8

%

Deferred tax assets, net

 

 

 

 

 

 

 

%

 

 

 

 

%

 

 

4,348

 

 

(100.0

)%

Servicing assets

 

 

6,205

 

 

 

6,544

 

 

(5.2

)%

 

 

6,666

 

 

(6.9

)%

 

 

7,142

 

 

(13.1

)%

Operating lease assets

 

 

17,609

 

 

 

18,255

 

 

(3.5

)%

 

 

18,913

 

 

(6.9

)%

 

 

5,182

 

 

239.8

%

Accrued interest receivable

 

 

10,464

 

 

 

10,394

 

 

0.7

%

 

 

9,468

 

 

10.5

%

 

 

8,040

 

 

30.1

%

Other assets

 

 

15,515

 

 

 

15,597

 

 

(0.5

)%

 

 

15,630

 

 

(0.7

)%

 

 

10,651

 

 

45.7

%

Total assets

 

$

2,852,964

 

 

$

2,854,292

 

 

(0.1

)%

 

$

2,789,506

 

 

2.3

%

 

$

2,556,345

 

 

11.6

%

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

543,538

 

 

$

538,380

 

 

1.0

%

 

$

594,673

 

 

(8.6

)%

 

$

635,329

 

 

(14.4

)%

Savings, NOW and money market accounts

 

 

483,928

 

 

 

483,607

 

 

0.1

%

 

 

421,203

 

 

14.9

%

 

 

489,153

 

 

(1.1

)%

Time deposits of $250,000 or less

 

 

758,956

 

 

 

771,303

 

 

(1.6

)%

 

 

760,034

 

 

(0.1

)%

 

 

552,160

 

 

37.5

%

Time deposits of more than $250,000

 

 

619,832

 

 

 

609,550

 

 

1.7

%

 

 

575,702

 

 

7.7

%

 

 

511,590

 

 

21.2

%

Total deposits

 

 

2,406,254

 

 

 

2,402,840

 

 

0.1

%

 

 

2,351,612

 

 

2.3

%

 

 

2,188,232

 

 

10.0

%

Other short-term borrowings

 

 

4,000

 

 

 

 

 

NM

 

 

 

 

 

NM

 

 

 

 

 

NM

 

Federal Home Loan Bank advances

 

 

32,000

 

 

 

50,000

 

 

(36.0

)%

 

 

39,000

 

 

(17.9

)%

 

 

 

 

NM

 

Deferred tax liabilities, net

 

 

577

 

 

 

266

 

 

116.9

%

 

 

876

 

 

(34.1

)%

 

 

 

 

NM

 

Operating lease liabilities

 

 

18,939

 

 

 

19,555

 

 

(3.2

)%

 

 

20,137

 

 

(5.9

)%

 

 

5,495

 

 

244.7

%

Accrued interest payable and other liabilities

 

 

37,725

 

 

 

31,626

 

 

19.3

%

 

 

29,009

 

 

30.0

%

 

 

22,207

 

 

69.9

%

Total liabilities

 

 

2,499,495

 

 

 

2,504,287

 

 

(0.2

)%

 

 

2,440,634

 

 

2.4

%

 

 

2,215,934

 

 

12.8

%

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

69,141

 

 

 

69,141

 

 

%

 

 

69,141

 

 

%

 

 

69,141

 

 

%

Common stock

 

 

142,698

 

 

 

142,734

 

 

(0.1

)%

 

 

142,563

 

 

0.1

%

 

 

143,686

 

 

(0.7

)%

Retained earnings

 

 

151,781

 

 

 

148,209

 

 

2.4

%

 

 

146,092

 

 

3.9

%

 

 

138,315

 

 

9.7

%

Accumulated other comprehensive loss, net

 

 

(10,151

)

 

 

(10,079

)

 

0.7

%

 

 

(8,924

)

 

13.7

%

 

 

(10,731

)

 

(5.4

)%

Total shareholders’ equity

 

 

353,469

 

 

 

350,005

 

 

1.0

%

 

 

348,872

 

 

1.3

%

 

 

340,411

 

 

3.8

%

Total liabilities and shareholders’ equity

 

$

2,852,964

 

 

$

2,854,292

 

 

(0.1

)%

 

$

2,789,506

 

 

2.3

%

 

$

2,556,345

 

 

11.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding common shares

 

 

14,254,024

 

 

 

14,263,791

 

 

 

 

 

14,260,440

 

 

 

 

 

14,318,890

 

 

 

Book value per common share (1)

 

$

24.80

 

 

$

24.54

 

 

 

 

$

24.46

 

 

 

 

$

23.77

 

 

 

TCE per common share (2)

 

$

19.95

 

 

$

19.69

 

 

 

 

$

19.62

 

 

 

 

$

18.94

 

 

 

Total loan to total deposit ratio

 

 

101.90

%

 

 

99.93

%

 

 

 

 

99.02

%

 

 

 

 

97.59

%

 

 

Noninterest-bearing deposits to total deposits

 

 

22.59

%

 

 

22.41

%

 

 

 

 

25.29

%

 

 

 

 

29.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

PCB Bancorp and Subsidiary

Consolidated Statements of Income (Unaudited)

($ in thousands, except share and per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

6/30/2024

 

3/31/2024

 

% Change

 

6/30/2023

 

% Change

 

6/30/2024

 

6/30/2023

 

% Change

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

40,626

 

 

$

39,251

 

 

3.5

%

 

$

32,960

 

 

23.3

%

 

$

79,877

 

 

$

64,189

 

 

24.4

%

Investment securities

 

 

1,310

 

 

 

1,246

 

 

5.1

%

 

 

1,136

 

 

15.3

%

 

 

2,556

 

 

 

2,238

 

 

14.2

%

Other interest-earning assets

 

 

3,009

 

 

 

3,058

 

 

(1.6

)%

 

 

2,742

 

 

9.7

%

 

 

6,067

 

 

 

4,947

 

 

22.6

%

Total interest income

 

 

44,945

 

 

 

43,555

 

 

3.2

%

 

 

36,838

 

 

22.0

%

 

 

88,500

 

 

 

71,374

 

 

24.0

%

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

22,536

 

 

 

21,967

 

 

2.6

%

 

 

15,121

 

 

49.0

%

 

 

44,503

 

 

 

27,034

 

 

64.6

%

Other borrowings

 

 

674

 

 

 

589

 

 

14.4

%

 

 

 

 

%

 

 

1,263

 

 

 

209

 

 

504.3

%

Total interest expense

 

 

23,210

 

 

 

22,556

 

 

2.9

%

 

 

15,121

 

 

53.5

%

 

 

45,766

 

 

 

27,243

 

 

68.0

%

Net interest income

 

 

21,735

 

 

 

20,999

 

 

3.5

%

 

 

21,717

 

 

0.1

%

 

 

42,734

 

 

 

44,131

 

 

(3.2

)%

Provision (reversal) for credit losses

 

 

259

 

 

 

1,090

 

 

(76.2

)%

 

 

197

 

 

31.5

%

 

 

1,349

 

 

 

(2,581

)

 

NM

 

Net interest income after provision (reversal) for credit losses

 

 

21,476

 

 

 

19,909

 

 

7.9

%

 

 

21,520

 

 

(0.2

)%

 

 

41,385

 

 

 

46,712

 

 

(11.4

)%

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of loans

 

 

763

 

 

 

1,078

 

 

(29.2

)%

 

 

769

 

 

(0.8

)%

 

 

1,841

 

 

 

2,078

 

 

(11.4

)%

Service charges and fees on deposits

 

 

364

 

 

 

378

 

 

(3.7

)%

 

 

369

 

 

(1.4

)%

 

 

742

 

 

 

713

 

 

4.1

%

Loan servicing income

 

 

799

 

 

 

919

 

 

(13.1

)%

 

 

868

 

 

(7.9

)%

 

 

1,718

 

 

 

1,728

 

 

(0.6

)%

Bank-owned life insurance income

 

 

236

 

 

 

228

 

 

3.5

%

 

 

184

 

 

28.3

%

 

 

464

 

 

 

364

 

 

27.5

%

Other income

 

 

323

 

 

 

342

 

 

(5.6

)%

 

 

467

 

 

(30.8

)%

 

 

665

 

 

 

795

 

 

(16.4

)%

Total noninterest income

 

 

2,485

 

 

 

2,945

 

 

(15.6

)%

 

 

2,657

 

 

(6.5

)%

 

 

5,430

 

 

 

5,678

 

 

(4.4

)%

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,225

 

 

 

9,218

 

 

0.1

%

 

 

8,675

 

 

6.3

%

 

 

18,443

 

 

 

17,603

 

 

4.8

%

Occupancy and equipment

 

 

2,300

 

 

 

2,358

 

 

(2.5

)%

 

 

1,919

 

 

19.9

%

 

 

4,658

 

 

 

3,815

 

 

22.1

%

Professional fees

 

 

973

 

 

 

1,084

 

 

(10.2

)%

 

 

772

 

 

26.0

%

 

 

2,057

 

 

 

1,504

 

 

36.8

%

Marketing and business promotion

 

 

318

 

 

 

319

 

 

(0.3

)%

 

 

203

 

 

56.7

%

 

 

637

 

 

 

575

 

 

10.8

%

Data processing

 

 

495

 

 

 

402

 

 

23.1

%

 

 

380

 

 

30.3

%

 

 

897

 

 

 

792

 

 

13.3

%

Director fees and expenses

 

 

221

 

 

 

232

 

 

(4.7

)%

 

 

217

 

 

1.8

%

 

 

453

 

 

 

397

 

 

14.1

%

Regulatory assessments

 

 

327

 

 

 

298

 

 

9.7

%

 

 

382

 

 

(14.4

)%

 

 

625

 

 

 

537

 

 

16.4

%

Other expense

 

 

1,316

 

 

 

2,441

 

 

(46.1

)%

 

 

1,079

 

 

22.0

%

 

 

3,757

 

 

 

2,158

 

 

74.1

%

Total noninterest expense

 

 

15,175

 

 

 

16,352

 

 

(7.2

)%

 

 

13,627

 

 

11.4

%

 

 

31,527

 

 

 

27,381

 

 

15.1

%

Income before income taxes

 

 

8,786

 

 

 

6,502

 

 

35.1

%

 

 

10,550

 

 

(16.7

)%

 

 

15,288

 

 

 

25,009

 

 

(38.9

)%

Income tax expense

 

 

2,505

 

 

 

1,817

 

 

37.9

%

 

 

3,073

 

 

(18.5

)%

 

 

4,322

 

 

 

7,235

 

 

(40.3

)%

Net income

 

 

6,281

 

 

 

4,685

 

 

34.1

%

 

 

7,477

 

 

(16.0

)%

 

 

10,966

 

 

 

17,774

 

 

(38.3

)%

Preferred stock dividends

 

 

142

 

 

 

 

 

NM

 

 

 

 

 

NM

 

 

 

142

 

 

 

 

 

NM

 

Net income available to common shareholders

 

$

6,139

 

 

$

4,685

 

 

31.0

%

 

$

7,477

 

 

(17.9

)%

 

$

10,824

 

 

$

17,774

 

 

(39.1

)%

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.43

 

 

$

0.33

 

 

 

 

$

0.52

 

 

 

 

$

0.76

 

 

$

1.24

 

 

 

Diluted

 

$

0.43

 

 

$

0.33

 

 

 

 

$

0.52

 

 

 

 

$

0.75

 

 

$

1.22

 

 

 

Average common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

14,237,083

 

 

 

14,235,419

 

 

 

 

 

14,271,200

 

 

 

 

 

14,236,251

 

 

 

14,344,769

 

 

 

Diluted

 

 

14,312,949

 

 

 

14,330,204

 

 

 

 

 

14,356,776

 

 

 

 

 

14,323,171

 

 

 

14,468,981

 

 

 

Dividend paid per common share

 

$

0.18

 

 

$

0.18

 

 

 

 

$

0.18

 

 

 

 

$

0.36

 

 

$

0.33

 

 

 

Return on average assets (1)

 

 

0.89

%

 

 

0.67

%

 

 

 

 

1.19

%

 

 

 

 

0.78

%

 

 

1.44

%

 

 

Return on average shareholders’ equity (1)

 

 

7.19

%

 

 

5.39

%

 

 

 

 

8.82

%

 

 

 

 

6.29

%

 

 

10.62

%

 

 

Return on average TCE (1), (2)

 

 

8.96

%

 

 

6.72

%

 

 

 

 

11.08

%

 

 

 

 

7.84

%

 

 

13.35

%

 

 

Efficiency ratio (3)

 

 

62.65

%

 

 

68.29

%

 

 

 

 

55.91

%

 

 

 

 

65.46

%

 

 

54.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

PCB Bancorp and Subsidiary

Average Balance, Average Yield, and Average Rate (Unaudited)

($ in thousands)

 

 

 

Three Months Ended

 

 

6/30/2024

 

3/31/2024

 

6/30/2023

 

 

Average Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate(6)

 

Average Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate(6)

 

Average Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate(6)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans (1)

 

$

2,414,824

 

 

$

40,626

 

6.77

%

 

$

2,370,027

 

 

$

39,251

 

6.66

%

 

$

2,097,489

 

 

$

32,960

 

6.30

%

Mortgage-backed securities

 

 

104,538

 

 

 

911

 

3.50

%

 

 

101,852

 

 

 

839

 

3.31

%

 

 

98,971

 

 

 

713

 

2.89

%

Collateralized mortgage obligation

 

 

22,992

 

 

 

249

 

4.36

%

 

 

23,763

 

 

 

254

 

4.30

%

 

 

26,228

 

 

 

262

 

4.01

%

SBA loan pool securities

 

 

6,891

 

 

 

74

 

4.32

%

 

 

7,317

 

 

 

78

 

4.29

%

 

 

8,364

 

 

 

81

 

3.88

%

Municipal bonds (2)

 

 

3,238

 

 

 

29

 

3.60

%

 

 

3,300

 

 

 

28

 

3.41

%

 

 

4,234

 

 

 

33

 

3.13

%

Corporate bonds

 

 

4,157

 

 

 

47

 

4.55

%

 

 

4,227

 

 

 

47

 

4.47

%

 

 

4,339

 

 

 

47

 

4.34

%

Other interest-earning assets

 

 

213,428

 

 

 

3,009

 

5.67

%

 

 

217,002

 

 

 

3,058

 

5.67

%

 

 

213,883

 

 

 

2,742

 

5.14

%

Total interest-earning assets

 

 

2,770,068

 

 

 

44,945

 

6.53

%

 

 

2,727,488

 

 

 

43,555

 

6.42

%

 

 

2,453,508

 

 

 

36,838

 

6.02

%

Noninterest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

23,057

 

 

 

 

 

 

 

21,365

 

 

 

 

 

 

 

20,754

 

 

 

 

 

ACL on loans

 

 

(28,372

)

 

 

 

 

 

 

(27,577

)

 

 

 

 

 

 

(24,710

)

 

 

 

 

Other assets

 

 

88,399

 

 

 

 

 

 

 

88,532

 

 

 

 

 

 

 

71,200

 

 

 

 

 

Total noninterest-earning assets

 

 

83,084

 

 

 

 

 

 

 

82,320

 

 

 

 

 

 

 

67,244

 

 

 

 

 

Total assets

 

$

2,853,152

 

 

 

 

 

 

$

2,809,808

 

 

 

 

 

 

$

2,520,752

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

$

473,557

 

 

 

4,876

 

4.14

%

 

$

453,801

 

 

 

4,665

 

4.13

%

 

$

465,564

 

 

 

3,929

 

3.38

%

Savings

 

 

6,899

 

 

 

4

 

0.23

%

 

 

6,196

 

 

 

4

 

0.26

%

 

 

7,767

 

 

 

5

 

0.26

%

Time deposits

 

 

1,383,167

 

 

 

17,656

 

5.13

%

 

 

1,367,212

 

 

 

17,298

 

5.09

%

 

 

1,054,191

 

 

 

11,187

 

4.26

%

Total interest-bearing deposits

 

 

1,863,623

 

 

 

22,536

 

4.86

%

 

 

1,827,209

 

 

 

21,967

 

4.84

%

 

 

1,527,522

 

 

 

15,121

 

3.97

%

Other borrowings

 

 

48,462

 

 

 

674

 

5.59

%

 

 

42,187

 

 

 

589

 

5.62

%

 

 

 

 

 

 

%

Total interest-bearing liabilities

 

 

1,912,085

 

 

 

23,210

 

4.88

%

 

 

1,869,396

 

 

 

22,556

 

4.85

%

 

 

1,527,522

 

 

 

15,121

 

3.97

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

 

535,508

 

 

 

 

 

 

 

542,811

 

 

 

 

 

 

 

628,127

 

 

 

 

 

Other liabilities

 

 

54,338

 

 

 

 

 

 

 

47,957

 

 

 

 

 

 

 

25,234

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

589,846

 

 

 

 

 

 

 

590,768

 

 

 

 

 

 

 

653,361

 

 

 

 

 

Total liabilities

 

 

2,501,931

 

 

 

 

 

 

 

2,460,164

 

 

 

 

 

 

 

2,180,883

 

 

 

 

 

Total shareholders’ equity

 

 

351,221

 

 

 

 

 

 

 

349,644

 

 

 

 

 

 

 

339,869

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,853,152

 

 

 

 

 

 

$

2,809,808

 

 

 

 

 

 

$

2,520,752

 

 

 

 

 

Net interest income

 

 

 

$

21,735

 

 

 

 

 

$

20,999

 

 

 

 

 

$

21,717

 

 

Net interest spread (3)

 

 

 

 

 

1.65

%

 

 

 

 

 

1.57

%

 

 

 

 

 

2.05

%

Net interest margin (4)

 

 

 

 

 

3.16

%

 

 

 

 

 

3.10

%

 

 

 

 

 

3.55

%

Total deposits

 

$

2,399,131

 

 

$

22,536

 

3.78

%

 

$

2,370,020

 

 

$

21,967

 

3.73

%

 

$

2,155,649

 

 

$

15,121

 

2.81

%

Total funding (5)

 

$

2,447,593

 

 

$

23,210

 

3.81

%

 

$

2,412,207

 

 

$

22,556

 

3.76

%

 

$

2,155,649

 

 

$

15,121

 

2.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

PCB Bancorp and Subsidiary

Average Balance, Average Yield, and Average Rate (Unaudited)

($ in thousands)

 

 

 

Six Months Ended

 

 

6/30/2024

 

6/30/2023

 

 

Average

Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate(6)

 

Average

Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate(6)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Total loans (1)

 

$

2,392,426

 

 

$

79,877

 

6.71

%

 

$

2,085,021

 

 

$

64,189

 

6.21

%

Mortgage-backed securities

 

 

103,195

 

 

 

1,750

 

3.41

%

 

 

98,278

 

 

 

1,396

 

2.86

%

Collateralized mortgage obligation

 

 

23,377

 

 

 

503

 

4.33

%

 

 

26,484

 

 

 

518

 

3.94

%

SBA loan pool securities

 

 

7,104

 

 

 

152

 

4.30

%

 

 

8,693

 

 

 

163

 

3.78

%

Municipal bonds (2)

 

 

3,269

 

 

 

57

 

3.51

%

 

 

4,228

 

 

 

67

 

3.20

%

Corporate bonds

 

 

4,192

 

 

 

94

 

4.51

%

 

 

4,424

 

 

 

94

 

4.28

%

Other interest-earning assets

 

 

215,215

 

 

 

6,067

 

5.67

%

 

 

200,420

 

 

 

4,947

 

4.98

%

Total interest-earning assets

 

 

2,748,778

 

 

 

88,500

 

6.47

%

 

 

2,427,548

 

 

 

71,374

 

5.93

%

Noninterest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

22,211

 

 

 

 

 

 

 

20,953

 

 

 

 

 

ACL on loans

 

 

(27,975

)

 

 

 

 

 

 

(25,727

)

 

 

 

 

Other assets

 

 

88,592

 

 

 

 

 

 

 

73,177

 

 

 

 

 

Total noninterest-earning assets

 

 

82,828

 

 

 

 

 

 

 

68,403

 

 

 

 

 

Total assets

 

$

2,831,606

 

 

 

 

 

 

$

2,495,951

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

$

463,679

 

 

 

9,541

 

4.14

%

 

$

475,707

 

 

 

7,374

 

3.13

%

Savings

 

 

6,548

 

 

 

8

 

0.25

%

 

 

7,932

 

 

 

10

 

0.25

%

Time deposits

 

 

1,375,190

 

 

 

34,954

 

5.11

%

 

 

985,851

 

 

 

19,650

 

4.02

%

Total interest-bearing deposits

 

 

1,845,417

 

 

 

44,503

 

4.85

%

 

 

1,469,490

 

 

 

27,034

 

3.71

%

Other borrowings

 

 

45,324

 

 

 

1,263

 

5.60

%

 

 

7,862

 

 

 

209

 

5.36

%

Total interest-bearing liabilities

 

 

1,890,741

 

 

 

45,766

 

4.87

%

 

 

1,477,352

 

 

 

27,243

 

3.72

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

 

539,159

 

 

 

 

 

 

 

657,687

 

 

 

 

 

Other liabilities

 

 

51,123

 

 

 

 

 

 

 

23,382

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

590,282

 

 

 

 

 

 

 

681,069

 

 

 

 

 

Total liabilities

 

 

2,481,023

 

 

 

 

 

 

 

2,158,421

 

 

 

 

 

Total shareholders’ equity

 

 

350,583

 

 

 

 

 

 

 

337,530

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,831,606

 

 

 

 

 

 

$

2,495,951

 

 

 

 

 

Net interest income

 

 

 

$

42,734

 

 

 

 

 

$

44,131

 

 

Net interest spread (3)

 

 

 

 

 

1.60

%

 

 

 

 

 

2.21

%

Net interest margin (4)

 

 

 

 

 

3.13

%

 

 

 

 

 

3.67

%

Total deposits

 

$

2,384,576

 

 

$

44,503

 

3.75

%

 

$

2,127,177

 

 

$

27,034

 

2.56

%

Total funding (5)

 

$

2,429,900

 

 

$

45,766

 

3.79

%

 

$

2,135,039

 

 

$

27,243

 

2.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

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

Six Months Ended

 

 

6/30/2024

 

3/31/2024

 

6/30/2023

 

6/30/2024

 

6/30/2023

Average total shareholders' equity

(a)

 

$

351,221

 

 

$

349,644

 

 

$

339,869

 

 

$

350,583

 

 

$

337,530

 

Less: average preferred stock

(b)

 

 

69,141

 

 

 

69,141

 

 

 

69,141

 

 

 

69,141

 

 

 

69,141

 

Average TCE

(c)=(a)-(b)

 

$

282,080

 

 

$

280,503

 

 

$

270,728

 

 

$

281,442

 

 

$

268,389

 

Net income

(d)

 

$

6,281

 

 

$

4,685

 

 

$

7,477

 

 

$

10,966

 

 

$

17,774

 

Return on average shareholder's equity (1)

(d)/(a)

 

 

7.19

%

 

 

5.39

%

 

 

8.82

%

 

 

6.29

%

 

 

10.62

%

Return on average TCE (1)

(d)/(c)

 

 

8.96

%

 

 

6.72

%

 

 

11.08

%

 

 

7.84

%

 

 

13.35

%

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Annualized.

($ in thousands, except per share data)

 

 

6/30/2024

 

3/31/2024

 

12/31/2023

 

6/30/2023

Total shareholders' equity

(a)

 

$

353,469

 

 

$

350,005

 

 

$

348,872

 

 

$

340,411

 

Less: preferred stock

(b)

 

 

69,141

 

 

 

69,141

 

 

 

69,141

 

 

 

69,141

 

TCE

(c)=(a)-(b)

 

$

284,328

 

 

$

280,864

 

 

$

279,731

 

 

$

271,270

 

Outstanding common shares

(d)

 

 

14,254,024

 

 

 

14,263,791

 

 

 

14,260,440

 

 

 

14,318,890

 

Book value per common share

(a)/(d)

 

$

24.80

 

 

$

24.54

 

 

$

24.46

 

 

$

23.77

 

TCE per common share

(c)/(d)

 

$

19.95

 

 

$

19.69

 

 

$

19.62

 

 

$

18.94

 

Total assets

(e)

 

$

2,852,964

 

 

$

2,854,292

 

 

$

2,789,506

 

 

$

2,556,345

 

Total shareholders' equity to total assets

(a)/(e)

 

 

12.39

%

 

 

12.26

%

 

 

12.51

%

 

 

13.32

%

TCE to total assets

(c)/(e)

 

 

9.97

%

 

 

9.84

%

 

 

10.03

%

 

 

10.61

%

 

 

 

 

 

 

 

 

 

 

 

Contacts

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

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