pcb-20230727

Exhibit 10.1

PCB BANCORP

STOCK OPTION AGREEMENT

2023 EQUITY BASED COMPENSATION PLAN


To:			Award Date:

We are pleased to notify you that PCB Bancorp, a California corporation (the “Company”), hereby grants to you an option to purchase any or all of _______ shares of the Common Stock of the Company (the “Shares”) at the exercise price of $_______ per share (the “Exercise Price”) pursuant to PCB Bancorp’s 2023 Equity Based Compensation Plan (the “Plan”).

This Stock Option Agreement (this “Agreement”) is subject to all the provisions of the Plan, and any term defined in the Plan and used herein with capitalized initials shall have the meaning given it in the Plan.

THIS OPTION IS:

A. AN INCENTIVE STOCK OPTION ONLY IF THIS BLANK IS INITIALED BY THE COMPANY AT THE SAME TIME THIS AGREEMENT IS DELIVERED TO YOU _______.

OTHERWISE, IT IS A NON-QUALIFIED OPTION.

B. A “DIRECTOR OPTION” ONLY IF THIS BLANK IS INITIALED AT THE TIME THIS AGREEMENT IS DELIVERED TO YOU_______. ALL DIRECTOR OPTIONS ARE NON-QUALIFIED OPTIONS, REGARDLESS OF ANY OTHER TERMS SET FORTH HEREIN.

The option may be exercised only in accordance with the terms of the Plan and this Agreement.

1. Purpose of the Option.

The purposes of this option are to encourage you to high achievement in the service of the Company, to reward such achievement with a financial interest in the progress of the business, and to retain your valuable services for the benefit of the Company.

2. Signature on Option Agreement.

This option cannot be exercised unless you first sign this document in the place provided and return it to Chief Financial Officer the Company. Signing and delivering this letter will not bind you to purchase any Shares. You can only become obligated to purchase Shares by exercising this option in the manner set forth in Section 3, below.

3. Terms of Option and Exercise of Option.

Subject to the provisions of Section 4 and this Section 3, this option shall vest and become exercisable as to the following Shares on the following dates, subject to your continuous service with the Company:


Anniversary of Award Date	Options Vesting	Total Percentage of Shares as to which Options May be Exercised
1 year	20%	20%
2 years	20%	40%
3 years	20%	60%
3 years	20%	80%
5 years	20%	100%

Any portion of this option that you do not exercise will accumulate and can be exercised by you any time after vesting and before the 10th anniversary of the Award Date (the “Termination Date”). Any unexercised portion of this option will expire on Termination Date.

This option may be exercised by delivering to the Chief Financial Officer of the Company the following items:

(1) Your notice in writing, in a form satisfactory to the Company and signed by you, that you are exercising your option under the Plan. Such notice shall state the number of Shares you are purchasing..

(2) Payment to the Company of the aggregate Exercise Price for the number of Shares with respect to which the Option is then being exercised and any required withholding taxes with respect to such exercise. Payment shall be made (a) by the delivery of cash or check, including an amount to cover the withholding taxes with respect to such exercise, (b) by means of the withholding of Shares held or otherwise issuable upon exercise, (c) any other form of consideration approved by the Committee and permitted by applicable laws, or (d) any combination of the foregoing.

Upon receipt of all these items in proper form, the Company will issue and deliver to you, at its principal office a certificate for the Shares you purchased. Your new share certificate will be dated the same date that your option was validly exercised. The time for delivery may be postponed by the Company for such period as may be required for it with reasonable diligence to comply with any requirement of law. No fractional shares may be issued or delivered.

4. Termination of Office or Employment.

If this option was granted to you while you were an employee or director of the Company or of an Affiliate, you may only exercise it if you have maintained continuous service from the date of the grant of this option until the date you seek to exercise it. For purposes of this Agreement, “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms are defined in Sections 424 of the Code. For purposes of this Agreement, your service shall be continuous for so long as you remains an employee or director of either the Company or any successor corporation or any Affiliate of the Company or any successor corporation. Any question as to whether and when there has been a termination of your Continuous Service, and the cause of such termination, shall be determined by the Committee, or its delegate, as appropriate, and its determination shall be final.

You may also exercise any vested portion of your option for up to 90 days after termination of Continuous Service (but not later than the date on which this option would otherwise expire), except as follows:

(a) If your Continuous Service terminates for Just Cause, your rights to exercise this option expire on your termination date. For purposes of this section, the term “Just Cause” means any of the following: (i) material dishonesty with respect to any aspect of the Company’s or an Affiliate’s affairs or business, (ii) incompetence which actually results in substantial harm to the Company or an Affiliate or which could reasonably be expected to result in such harm, (iii) willful misconduct, (iv) breach of fiduciary duty involving personal profit,(v) intentional failure to perform stated duties, or (vi) willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final court order.

(b) If your Continuous Service terminates by reason of your death, this option will be exercisable only as to those Shares vested at the time of your death and may be exercised within one year from the date of your death (but not later than the date on which the option would otherwise expire) by your executor or administrator or by the heirs to whom your rights under this option have passed by will or by the laws of descent and distribution.

(c) If your Continuous Service terminates by reason of Permanent and Total Disability, as that term is defined in Section 22(e)(3) of the Code, this option will be exercisable only as to those Shares vested at the time of your Permanent and Total Disability and may be exercised within one year from the date such Permanent and Total Disability began, but not later than the date on which the option would otherwise expire.

5. Nontransferability of Option.

Your option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent and distribution, or pursuant to the terms of a “qualified domestic relations order” (within the meaning of Section 414(p) of the Code and the regulations and rulings thereunder). This option may be exercised only by you, your personal representative or heirs, or a permitted transferee. Any person who obtains the right to exercise this option will be subject to and bound by the terms of this Agreement and of the Plan.

6. Adjustment of and Changes in the Shares.

(a) Recapitalizations, Stock Splits and Other Changes to Capital. The number and kind of shares reserved for issuance under the Plan, and the number and kind of shares subject to outstanding Awards (and the Exercise Price thereof), shall be proportionately adjusted for any increase, decrease, change or exchange of Shares for a different number or kind of shares or other securities of the Company which results from a merger, consolidation, recapitalization, reorganization, reclassification, stock dividend, stock split, combination of shares, or similar event in which the number or kind of shares is changed without the receipt or payment of consideration by the Company.

(b) Transactions in which the Company is Not the Surviving Entity. In the event of (i) the liquidation or dissolution of the Company, (ii) a merger or consolidation in which the Company is not the surviving entity, (iii) the sale or disposition of all or substantially all of the Company’s assets or (iv) a tender offer or acquisition by one person or a group of persons acting in concert of more than 50% of the Company’s outstanding Shares (any of the foregoing to be referred to herein as a “Transaction”) that occurs while this Plan remains in force or any part of your option has not been exercised, the Committee will notify you of the pendency of the Transaction. Upon delivery of that notice and provided that the date of the Transactions is more than three years after the granting of your option, you will be entitled to purchase all Shares covered by your option but not previously purchased, whether your option to purchase them was previously vested or unvested. At the close of business on the 30th day after such notice is given, this option will terminate to the extent you have not exercised it, unless provision is made in connection with the Transaction for a successor to assume existing options, pay for them or grant substitute options on its own stock or that of its parent or subsidiary. The Company has no obligation to make any such provision. The provisions of this subsection (b) shall not apply if the Company is the surviving entity in any such Transaction or if the Transaction occurs within three years of the grant of your option.

(c) Special Rule for Incentive Stock Options. Any adjustment made pursuant to subsections (a) or (b) hereof shall be made in such a manner as not to constitute a modification, within the meaning of Section 424(h) of the Code, of outstanding Incentive Stock Options.

(d) Conditions and Restrictions on New, Additional or Different Shares or Securities. If, by reason of any adjustment made pursuant to this Section 6, a Participant becomes entitled to new, additional or different shares of stock or securities, such new, additional or different shares of stock or securities shall thereupon be subject to all of the conditions and restrictions which were applicable to the Shares pursuant to the Award before the adjustment was made.

(e) Other Issuances. Except as expressly provided in this Section 6, the issuance by the Company of shares of stock of any class, or of securities convertible in to Shares or securities of another class, for cash, property or any lawful consideration, either upon direct sale or upon the exercise of rights or warrants to purchase the same, shall have no effect upon, and no adjustment shall be made with respect to, the number, class, Exercise Price or other characteristics of Shares then subject to this option or reserved for issuance under the Plan.

7. Subject to Terms of the Plan.

This Agreement and the option granted hereby are subject in all respects to the terms and conditions of the Plan. In the event of any conflict or inconsistency between this Agreement and the terms of the Plan, the terms of the Plan will control. Your signature below represents your acknowledgment of receipt of a copy of the Plan and your agreement to the terms of the Plan and of this Agreement. Any determination of the Committee with respect to any questions concerning the application, administration or interpretation of the Plan will be conclusive and binding on the Company and you. Ay dispute or disagreement which shall arise under, or as a result of, or pursuant to, this Agreement, shall be finally and conclusively determined by the Committee in its sole discretion, and such determination shall be binding upon all parties.

8. Tax Effects.

THE FEDERAL TAX CONSEQUENCES OF STOCK OPTIONS ARE COMPLEX AND SUBJECT TO CHANGE. A TAXPAYER’S PARTICULAR SITUATION MAY BE SUCH THAT SOME VARIATION OF THE GENERAL RULE IS APPLICABLE. ACCORDINGLY, A PARTICIPANT SHOULD CONSULT WITH HIS OR HER OWN TAX ADVISOR BEFORE EXERCISING ANY OPTION OR DISPOSING OF ANY SHARES ACQUIRED UPON THE EXERCISE OF AN OPTION.

9. Rights as a Shareholder or Employee.

You have no rights as a shareholder of the Company with respect to any Shares until the date of the issuance and delivery to you of a stock certificate for such Shares. The existence of this option shall neither create nor imply a right to continued employment with the Company.

10. Notification of Sale.

You agree that you will notify the Company not more than five (5) days before any sale or disposition of any Shares acquired upon exercise of this option.

11. Entire Agreement.

This Agreement, the Plan, your election notice(s) executed and properly delivered to the Company, and, if applicable, any employment agreement between you and the Company or any Affiliate, together contain the entire agreement of the parties with respect to the subject matter hereof, and supersede any prior agreements. No representation, understanding, assurance or other agreement of any kind will have any effect if not set forth herein or in the Plan.

12. Amendment.

This Agreement may only be amended by means of a writing signed by you and by a duly authorized representative of the Company.

13. Choice of Law; Venue.

This Agreement is made in California and shall be interpreted and applied under the laws of this state. Subject to Section 14, any legal action or proceeding of any kind arising out of or in connection with this Agreement must be brought in a court located in the County of Los Angeles, California.

14. Arbitration.

Any dispute arising out of or in connection with this Agreement shall be resolved by binding arbitration at Los Angeles, California, in accordance with the Commercial Arbitration Rules of the American Arbitration Association.

15. Clawback Policy.

Notwithstanding any other provision of this Agreement to the contrary, any cash incentive compensation, any option and/or Shares issued hereunder, and/or any amount received with respect to any sale of any such Shares, shall be subject to potential cancellation, recoupment, rescission, payback or other action in accordance with terms of any clawback policy adopted by the Company under the terms of the rules of Securities and Exchange Commission or to comply with the rules of the Nasdaq Stock Market as may be amended from time to time (collectively, the “Policy”). You agree and consent to the Company’s application, implementation and enforcement of (i) the Policy or any similar policy established by the Company that may apply to you and (ii) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, and you expressly agree that the Company may take such actions as are permitted under the Policy or any similar policy (as applicable to you) or applicable law without further consent or action being required by you. To the extent that the terms of this Agreement and the Policy or any similar policy conflict, then the terms of the policy shall prevail.

PCB Bancorp,

A California corporation

By:

Name:

Title:

Agreed to as of this ___th day

of ______________

Participant:

Exhibit 10.2

PCB BANCORP

RESTRICTED STOCK AWARD AGREEMENT

2023 EQUITY BASED COMPENSATION PLAN

This Restricted Stock Agreement (“Agreement”) is made as of , between PCB Bancorp, a California corporation (the “Company”), and [name of employee], an employee of the Company or a subsidiary of the Company (“Recipient”), with reference to the following:

A. On May 25, 2023 the shareholders of the Company adopted the PCB Bancorp 2023 Equity Based Compensation Plan, (the “Plan”), pursuant to which the Compensation Committee of the Board of Directors (the “Committee”) may grant Eligible Employees Restricted Stock.

B. The Committee has determined to grant to Recipient an award of Restricted Stock pursuant to the terms and conditions of this Agreement and the Plan.

NOW, THEREFORE, in consideration of the foregoing recitals and the performance of the mutual covenants contained herein, it is hereby agreed as follows:

1. Grant of Restricted Stock Award.

(a) Details of Award. The Company hereby grants an Award of Restricted Stock, upon the terms and conditions set forth in this Agreement and the Plan, with the following terms:

(i)Number of Shares of Restricted Stock to be issued: Shares (the “Restricted Shares”);

(ii)The date of issuance: , (the “Award Date”); and

(iii)The consideration, if any, for the Restricted Shares: Recipient’s employment with the Company

(b) Issuance of Restricted Shares. The Restricted Shares shall be issued upon acceptance hereof by Recipient and upon satisfaction of the conditions of this Agreement.

2. Restricted Shares. Recipient hereby accepts the Restricted Shares when issued and agrees with respect thereto as follows:

(a) Forfeiture Restrictions. The Restricted Shares may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of (the “Forfeiture Restrictions”) to the extent that Forfeiture Restrictions have not lapsed. In the event of termination of Recipient’s employment with the Company or employing subsidiary for any reason other than (i) Retirement, (ii) death, or (iii) Total Disability, except as otherwise provided in the last sentence of subparagraph (b) of this Paragraph 2, Recipient shall, for no consideration, forfeit to the Company all Restricted Shares to the extent then subject to the Forfeiture Restrictions. The Forfeiture Restrictions shall be binding upon and enforceable against any transferee of Restricted Shares.

(b) Lapse of Forfeiture Restrictions. The Forfeiture Restrictions shall lapse as to the Restricted Shares in accordance with the following schedule provided that Recipient has been continuously employed by the Company from the Award Date through the lapse date:


Number of Shares Vesting						Lapse Date and/or Performance Criteria
Shares
Shares
Shares
Shares
Shares

[Modify the foregoing table as desired.]

Notwithstanding the foregoing, the Forfeiture Restrictions shall lapse as to all of the Restricted Shares on the earlier of (i) subject to the discretion of the Committee, the provision of notice of a Change in Control Event (as provided for in the Plan), or (ii) the date Recipient’s employment with the Company is terminated by reason of death, Total Disability or Retirement. In the event Recipient’s employment is terminated for any other reason, with the approval of the Company or employing subsidiary, the Committee or its delegate, as appropriate, may, in the Committee’s or such delegate’s sole discretion, approve the lapse of Forfeiture Restrictions as to any or all Restricted Shares still subject to such restrictions, such lapse to be effective on the date of such approval or Recipient’s termination date, if later.

(c) Certificates/Shareholder Rights. Shares of Restricted Stock will be evidenced by memorandum entries on the records of the Company’s transfer agent. Recipient shall have voting rights and shall be entitled to receive all dividends unless and until the Restricted Shares are forfeited pursuant to the provisions of this Agreement. Upon request of the Committee or its delegate, Recipient shall deliver to the Company a stock power, endorsed in blank, relating to the Restricted Shares then subject to the Forfeiture Restrictions. Upon the lapse of the Forfeiture Restrictions, the Company shall cause a certificate or certificates to be issued in the name of Recipient, or such other name as provided in the Plan, for the shares upon which Forfeiture Restrictions lapsed. Notwithstanding any other provisions of this Agreement, the issuance or delivery of any shares of Stock (whether subject to restrictions or unrestricted) may be postponed for such period as may be required to comply with applicable requirements of any national securities exchange or any requirements under any law or regulation applicable to the issuance or delivery of such shares. The Company shall not be obligated to issue or deliver any shares of Stock if the issuance or delivery thereof shall constitute a violation of any provision of any law or of any regulation of any governmental authority, any national securities exchange or Nasdaq.

3. Withholding of Tax. The receipt of Restricted Shares or the lapse of any Forfeiture Restrictions may result in income to Recipient for federal or state tax purposes. To the extent Recipient becomes subject to taxation, Recipient shall deliver to the Company at the time of such receipt or lapse, as the case may be, such amount of money or unrestricted Shares, as the Company may require to meet its withholding obligation under applicable tax laws or regulations. If Recipient fails to do so, the Company is authorized to withhold from any cash or stock remuneration then or thereafter payable to Recipient any tax required to be withheld by reason of such resulting compensation income. Recipient’s delivery of Shares to meet the tax withholding obligation is subject to the Company’s Securities Trading Policy as may be in effect from time to time. Recipient must have owned any Shares Recipient delivers for at least six months. Any stock Recipient delivers or which is withheld by the Company will be valued on the date on which the amount of tax to be withheld is determined. Any fractional Shares resulting from withholding of taxes will be paid to Recipient in cash.

4. Status of Stock. Recipient agrees that the Restricted Shares to which the Forfeiture Restrictions have lapsed will not be sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state securities laws. Recipient also agrees (i) that the certificates representing the Shares may bear such legend or legends as the Company deems appropriate in order to assure compliance with applicable securities laws, (ii) that the Company may refuse to register the transfer of the Shares on the stock transfer records of the Company if such proposed transfer would be in the opinion of counsel satisfactory to the Company constitute a violation of any applicable securities law and (iii) that the Company may give related instructions to its transfer agent, if any, to stop registration of the transfer of the Shares.

5. Limitation on Transfer. Other than upon death or pursuant to a DRO, the Restricted Shares and all rights granted under this Agreement are personal to Recipient and cannot be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to execution, attachment or similar processes, except as otherwise provided in Section 1.9 of the Plan.

6. Employment Relationship. For purposes of this Agreement, Recipient shall be considered to be in the employment of the Company as long as Recipient remains an employee or director of either the Company, any successor corporation or a parent or subsidiary corporation (as defined in section 424 of the Internal Revenue Code) of the Company or any successor corporation. Any question as to whether and when there has been a termination of such employment, and the cause of such termination, shall be determined by the Committee, or its delegate, as appropriate, and its determination shall be final.

The Plan and this Agreement shall not constitute a contract of employment between the Company, including, any successor corporation or a parent or subsidiary corporation of the Company or any successor corporation and Recipient. Recipient is an at-will employee except as provided in any other written agreement. Nothing contained in the Plan or the Agreement (or any Award made pursuant to the Plan) shall confer upon any eligible Participant any right to continue in the employment of the Company, or guarantee of payment of future incentives, or shall interfere with, affect or restrict in any way, the rights of the Company, which are expressly reserved, to discharge Recipient, any time for any reason whatsoever, with or without cause.

7. Availability of Plan/Plan Incorporated. Recipient acknowledges that the Company has made available a copy of the Plan, and agrees that this Award of Restricted Shares shall be subject to all of the terms and conditions set forth in the Plan, including future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated herein by reference as a part of this Agreement. In the event of any conflict between the Plan and this Agreement, the provisions of the Plan will prevail. Recipient’s rights hereunder are subject to modification or termination in certain events, as provided in the Plan, including without limitation such rules and regulations as may from time to time be adopted or promulgated in accordance with Section 1.3 of the Plan. Capitalized terms not defined in this Agreement shall have the meanings set forth in the Plan.

8. Committee’s Powers. No provision contained in this Agreement shall in any way terminate, modify or alter, or be construed or interpreted as terminating, modifying or altering any of the powers, rights or authority vested in the Committee or, to the extent delegated, in its delegate pursuant to the terms of the Plan or resolutions adopted in furtherance of the Plan, including, without limitation, the right to make certain determinations and elections with respect to the Restricted Shares. All decisions of the Committee (as established pursuant to the Plan) with respect to any questions concerning the application, administration or interpretation of the Plan will be conclusive and binding on the Company and Recipient.

9. Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under Recipient.

10. Dispute Resolution. If a dispute arises between Recipient and Company in connection with the Restricted Stock Award, the dispute will be resolved by binding arbitration with the American Arbitration Association (“AAA”) in accordance with the AAA’s Commercial Arbitration Rules then in effect.

11. Governing Law; Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Any legal action or proceeding of any kind arising out of or in connection with this Agreement must be brought in a court located in the County of Los Angeles, California.

12. Clawback Policy. Notwithstanding any other provision of this Agreement to the contrary, any cash incentive compensation, any Restricted Shares and/or Shares issued hereunder, and/or any amount received with respect to any sale of any such Shares, shall be subject to potential cancellation, recoupment, rescission, payback or other action in accordance with terms of any clawback policy adopted by the Company under the rules of Securities and Exchange Commission or to comply with the rules of the Nasdaq Stock Market, as may amended from time to time (collectively, the “Policy”). Recipient agrees and consents to the Company’s application, implementation and enforcement of (i) the Policy or any similar policy established by the Company that may apply to Recipient and (ii) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, and Recipient expressly agrees that the Company may take such actions as are permitted under the Policy any similar policy (as applicable to Recipient) or applicable law without further consent or action being required by Recipient. To the extent that the terms of this Agreement and the Policy or any similar policy conflict, then the terms of such policy shall prevail.

[Signatures appear on next page]

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and Recipient has executed this Agreement, all as of the date first above written.

PCB Bancorp,

A California corporation



By:
						Name:
						Title:

Recipient:



						(signature)
						(print name)

PLEASE RETURN ONE COPY OF THE SIGNED AGREEMENT TO

[Signature Page to Restricted Stock Award Agreement]

Exhibit 99.1

PCB Bancorp Reports Earnings of $7.5 million for Q2 2023

Los Angeles, California - July 27, 2023 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income of $7.5 million, or $0.52 per diluted common share, for the second quarter of 2023, compared with $10.3 million, or $0.70 per diluted common share, for the previous quarter and $9.1 million, or $0.60 per diluted common share, for the year-ago quarter.

Q2 2023 Highlights

•Net income totaled $7.5 million, or $0.52 per diluted common share, for the current quarter;

•Recorded a provision (reversal) for credit losses(1),(2) of $197 thousand for the current quarter compared with $(2.8) million for the previous quarter and $(109) thousand for the year-ago quarter;

•Allowance for Credit Losses (“ACL”)(1) on loans to loans held-for-investment ratio was 1.17% at June 30, 2023 compared with 1.18% at March 31, 2023 and 1.15% at June 30, 2022;

•Net interest income was $21.7 million for the current quarter compared with $22.4 million for the previous quarter and $21.4 million for the year-ago quarter. Net interest margin was 3.55% for the current quarter compared with 3.79% for the previous quarter and 4.01% for the year-ago quarter;

•Gain on sale of loans was $769 thousand for the current quarter compared with $1.3 million for the previous quarter and $2.0 million for the year-ago quarter;

•Total assets were $2.56 billion at June 30, 2023, an increase of $55.8 million, or 2.2%, from $2.50 billion at March 31, 2023, an increase of $136.3 million, or 5.6%, from $2.42 billion at December 31, 2022, and an increase of $211.8 million, or 9.0%, from $2.34 billion at June 30, 2022;

•Loans held-for-investment were $2.12 billion at June 30, 2023, an increase of $30.0 million, or 1.4%, from $2.09 billion at March 31, 2023, an increase of $76.4 million, or 3.7%, from $2.05 billion at December 31, 2022, and an increase of $289.4 million, or 15.8%, from $1.83 billion at June 30, 2022; and

•Total deposits were $2.19 billion at June 30, 2023, an increase of $46.5 million, or 2.2%, from $2.14 billion at March 31, 2023, an increase of $142.2 million, or 7.0%, from $2.05 billion at December 31, 2022, and an increase of $190.6 million, or 9.5%, from $2.00 billion at June 30, 2022.

“I am pleased with our solid results in the second quarter,” said Henry Kim, President and Chief Executive Officer. “In spite of the challenging macroeconomic environment, our continued focus on maintaining fundamentals in our institution provided stable level of liquidity, robust capital, and strong asset quality.”

“During the second quarter, our cash and cash equivalents to total assets increased to 8.7% of total assets and our deposit balances increased $46.5 million, or 2.2%. Several days after June 30, 2023, we established Borrower-in Custody Program with Federal Reserve Bank that provided an additional borrowing capacity of $268.9 million. Such additional borrowing capacity in combination of other borrowing capacities and cash and cash equivalent would have covered approximately 117.1% of deposits not covered by deposit insurance compared with 91.1% without the additional borrowing capacity at June 30, 2023.”

“Tangible common equity per share increased to $18.94 and our total capital ratio was 17.57%. Our loan balance increased 1.4% to $2.12 billion compared with $2.09 billion at March 31, 2023, and our asset quality continues to be strong with non-performing assets to total asset ratio of 0.15% and classified assets to total assets ratio of 0.27%.”

“Our commitment to deliver exceptional service with precise banking products to our customers and the opportunities to expand our geographical footprint gives us motivation to be excited about our prospects for continued growth in the second half of 2023 and beyond,” concluded Kim.

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(1) Provision (reversal) for credit losses and ACL for reporting periods beginning with January 1, 2023 are presented under ASC 326, while prior period comparisons continue to be presented under legacy ASC 450 and ASC 310 in this release.

(2) Provision for credit losses on off-balance sheet credit exposures of $36 thousand and $38 thousand, respectively, for the year-ago quarter and previous year-to-date period were recorded in Other Expense on Consolidated Statements of Income (Unaudited).

Financial Highlights (Unaudited)


($ in thousands, except per share data)	Three Months Ended													Six Months Ended
	6/30/2023			3/31/2023			% Change		6/30/2022			% Change		6/30/2023			6/30/2022			% Change
Net income	$	7,477		$	10,297		(27.4)	%	$	9,092		(17.8)	%	$	17,774		$	19,332		(8.1)	%
Diluted earnings per common share	$	0.52		$	0.70		(25.7)	%	$	0.60		(13.3)	%	$	1.22		$	1.27		(3.9)	%

Net interest income	$	21,717		$	22,414		(3.1)	%	$	21,351		1.7	%	$	44,131		$	41,344		6.7	%
Provision (reversal) for credit losses (1)	197			(2,778)			NM		(109)			NM		(2,581)			(1,300)			98.5	%
Noninterest income	2,657			3,021			(12.0)	%	3,648			(27.2)	%	5,678			8,934			(36.4)	%
Noninterest expense	13,627			13,754			(0.9)	%	12,245			11.3	%	27,381			24,316			12.6	%

Return on average assets (2)	1.19		%	1.69		%			1.65		%			1.44		%	1.78		%
Return on average shareholders’ equity (2)	8.82		%	12.46		%			12.48		%			10.62		%	14.13		%
Return on average tangible common equity (“TCE”) (2),(3)	11.08		%	15.70		%			13.85		%			13.35		%	14.92		%
Net interest margin (2)	3.55		%	3.79		%			4.01		%			3.67		%	3.94		%
Efficiency ratio (4)	55.91		%	54.08		%			48.98		%			54.97		%	48.36		%


($ in thousands, except per share data)	6/30/2023			3/31/2023			% Change		12/31/2022			% Change		6/30/2022			% Change
Total assets	$	2,556,345		$	2,500,524		2.2	%	$	2,420,036		5.6	%	$	2,344,560		9.0	%
Net loans held-for-investment	2,097,560			2,067,748			1.4	%	2,021,121			3.8	%	1,811,939			15.8	%
Total deposits	2,188,232			2,141,689			2.2	%	2,045,983			7.0	%	1,997,607			9.5	%
Book value per common share (5)	$	23.77		$	23.56				$	22.94				$	22.36
TCE per common share (3)	$	18.94		$	18.72				$	18.21				$	17.73
Tier 1 leverage ratio (consolidated)	13.84		%	13.90		%			14.33		%			15.37		%
Total shareholders’ equity to total assets	13.32		%	13.47		%			13.86		%			14.26		%
TCE to total assets (3), (6)	10.61		%	10.71		%			11.00		%			11.31		%

(1)Provision for credit losses on off-balance sheet credit exposures of $36 thousand and $38 thousand, respectively, for the year-ago quarter and previous year-to-date period were recorded in Other Expense on Consolidated Statements of Income (Unaudited). See Provision (reversal) for credit losses included in the Result of Operations discussion for additional information.

(2)Ratios are presented on an annualized basis.

(3)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.

(4)Calculated by dividing noninterest expense by the sum of net interest income and noninterest income.

(5)Calculated by dividing total shareholders’ equity by the number of outstanding common shares.

(6)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)	6/30/2023			3/31/2023			% Change		6/30/2022			% Change		6/30/2023			6/30/2022			% Change
Interest income/expense on
Loans	$	32,960		$	31,229		5.5	%	$	21,243		55.2	%	$	64,189		$	41,433		54.9	%
Investment securities	1,136			1,102			3.1	%	668			70.1	%	2,238			1,144			95.6	%
Other interest-earning assets	2,742			2,205			24.4	%	535			412.5	%	4,947			763			548.4	%
Total interest-earning assets	36,838			34,536			6.7	%	22,446			64.1	%	71,374			43,340			64.7	%
Interest-bearing deposits	15,121			11,913			26.9	%	1,041			1,352.5	%	27,034			1,891			1,329.6	%
Borrowings	—			209			(100.0)	%	54			(100.0)	%	209			105			99.0	%
Total interest-bearing liabilities	15,121			12,122			24.7	%	1,095			1,280.9	%	27,243			1,996			1,264.9	%
Net interest income	$	21,717		$	22,414		(3.1)	%	$	21,351		1.7	%	$	44,131		$	41,344		6.7	%
Average balance of
Loans	$	2,097,489		$	2,072,415		1.2	%	$	1,804,368		16.2	%	$	2,085,021		$	1,788,958		16.5	%
Investment securities	142,136			142,079			—	%	135,324			5.0	%	142,107			129,310			9.9	%
Other interest-earning assets	213,883			186,809			14.5	%	195,633			9.3	%	200,420			197,267			1.6	%
Total interest-earning assets	$	2,453,508		$	2,401,303		2.2	%	$	2,135,325		14.9	%	$	2,427,548		$	2,115,535		14.7	%
Interest-bearing deposits	$	1,527,522		$	1,410,812		8.3	%	$	1,001,424		52.5	%	$	1,469,490		$	1,017,629		44.4	%
Borrowings	—			15,811			(100.0)	%	11,132			(100.0)	%	7,862			10,768			(27.0)	%
Total interest-bearing liabilities	$	1,527,522		$	1,426,623		7.1	%	$	1,012,556		50.9	%	$	1,477,352		$	1,028,397		43.7	%
Total funding (1)	$	2,155,649		$	2,114,198		2.0	%	$	1,902,247		13.3	%	$	2,135,039		$	1,893,691		12.7	%
Annualized average yield/cost of
Loans	6.30		%	6.11		%			4.72		%			6.21		%	4.67		%
Investment securities	3.21		%	3.15		%			1.98		%			3.18		%	1.78		%
Other interest-earning assets	5.14		%	4.79		%			1.10		%			4.98		%	0.78		%
Total interest-earning assets	6.02		%	5.83		%			4.22		%			5.93		%	4.13		%
Interest-bearing deposits	3.97		%	3.42		%			0.42		%			3.71		%	0.37		%
Borrowings	—		%	5.36		%			1.95		%			5.36		%	1.97		%
Total interest-bearing liabilities	3.97		%	3.45		%			0.43		%			3.72		%	0.39		%
Net interest margin	3.55		%	3.79		%			4.01		%			3.67		%	3.94		%
Cost of total funding (1)	2.81		%	2.33		%			0.23		%			2.57		%	0.21		%
Supplementary information
Net accretion of discount on loans	$	751		$	671		11.9	%	$	907		(17.2)	%	$	1,422		$	1,815		(21.7)	%
Net amortization of deferred loan fees	$	247		$	175		41.1	%	$	606		(59.2)	%	$	422		$	1,771		(76.2)	%

(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 increases in average yield for the current quarter and year-to-date period compared with the same periods of 2022 were primarily due to an increase in overall interest rates on loans from the rising interest rate environment, partially offset by decreases in net accretion of discount on loans and net amortization of deferred loan fees from the decreased amount of SBA PPP loan payoffs.

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:


	6/30/2023				3/31/2023				12/31/2022				6/30/2022
	% 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	22.6	%	4.64	%	23.4	%	4.64	%	23.2	%	4.51	%	24.5	%	4.35	%
Hybrid rate loans	39.2	%	4.62	%	39.0	%	4.51	%	39.1	%	4.40	%	37.0	%	4.11	%
Variable rate loans	38.2	%	8.39	%	37.6	%	8.23	%	37.7	%	7.86	%	38.5	%	5.12	%

Investment Securities. The increases in average yield for the current quarter and year-to-date period were primarily due to a decrease in net amortization of premiums on securities and higher yield on newly purchased investment securities.

Other Interest-Earning Assets. The increases in average yield for the current quarter and year-to-date period were primarily due to an increased interest rate on cash held at the Federal Reserve Bank account.

Interest-Bearing Deposits. The increases in average cost for the current quarter and year-to-date period were primarily due to an increase in market rates and the migration of noninterest-bearing demand deposits to interest-bearing deposits attributable to the rising market rates. To retain existing and attract new customers, the Bank offers competitive rates on deposit products in the rising interest rate environment.

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)	6/30/2023		3/31/2023		% Change	6/30/2022		% Change		6/30/2023		6/30/2022		% Change
Provision (reversal) for credit losses on loans	$	157	$	(2,417)	NM	$	(109)	NM		$	(2,260)	$	(1,300)	73.8	%
Provision (reversal) for credit losses on off-balance sheet credit exposure (1)	40		(361)		NM	36		11.1	%	(321)		38		NM
Total provision (reversal) for credit losses	$	197	$	(2,778)	NM	$	(73)	NM		$	(2,581)	$	(1,262)	104.5	%

(1)Provision for credit losses on off-balance sheet credit exposures for previous and year-ago quarters were recorded in Other Expense on Consolidated Statements of Income (Unaudited).

On January 1, 2023, the Company adopted the provisions of ASC 326 through the application of the modified retrospective transition approach. Provision (reversal) for credit losses and ACL for reporting periods beginning with January 1, 2023 are presented under ASC 326, while prior period comparisons continue to be presented under legacy ASC 450 and ASC 310 in this release. See CECL Adoption and Allowance for Credit Losses sections included in the Balance Sheet section of this release for additional information.

The reversal for credit losses for the current year-to-date period was primarily due to net recoveries and the improvement in the economic forecast.

Noninterest Income

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


	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2023		3/31/2023		% Change		6/30/2022		% Change		6/30/2023		6/30/2022		% Change
Gain on sale of loans	$	769	$	1,309	(41.3)	%	$	2,039	(62.3)	%	$	2,078	$	5,816	(64.3)	%

Service charges and fees on deposits	369		344		7.3	%	330		11.8	%	713		633		12.6	%
Loan servicing income	868		860		0.9	%	755		15.0	%	1,728		1,455		18.8	%
Bank-owned life insurance income	184		180		2.2	%	175		5.1	%	364		347		4.9	%
Other income	467		328		42.4	%	349		33.8	%	795		683		16.4	%
Total noninterest income	$	2,657	$	3,021	(12.0)	%	$	3,648	(27.2)	%	$	5,678	$	8,934	(36.4)	%

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)	6/30/2023		3/31/2023		% Change		6/30/2022		% Change		6/30/2023		6/30/2022		% Change
Gain on sale of SBA loans
Sold loan balance	$	16,762	$	27,133	(38.2)	%	$	38,442	(56.4)	%	$	43,895	$	78,125	(43.8)	%
Premium received	1,209		2,041		(40.8)	%	2,600		(53.5)	%	3,250		6,806		(52.2)	%
Gain recognized	769		1,309		(41.3)	%	2,039		(62.3)	%	2,078		5,816		(64.3)	%

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


	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2023		3/31/2023		% Change		6/30/2022		% Change		6/30/2023		6/30/2022		% Change
Loan servicing income
Servicing income received	$	1,317	$	1,284	2.6	%	$	1,287	2.3	%	$	2,601	$	2,517	3.3	%
Servicing assets amortization	(449)		(424)		5.9	%	(532)		(15.6)	%	(873)		(1,062)		(17.8)	%
Loan servicing income	$	868	$	860	0.9	%	$	755	15.0	%	$	1,728	$	1,455	18.8	%
Underlying loans at end of period	$	539,160	$	540,502	(0.2)	%	$	537,990	0.2	%	$	539,160	$	537,990	0.2	%

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)	6/30/2023		3/31/2023		% Change		6/30/2022		% Change		6/30/2023		6/30/2022		% Change
Salaries and employee benefits	$	8,675	$	8,928	(2.8)	%	$	8,125	6.8	%	$	17,603	$	16,720	5.3	%
Occupancy and equipment	1,919		1,896		1.2	%	1,537		24.9	%	3,815		2,934		30.0	%
Professional fees	772		732		5.5	%	642		20.2	%	1,504		1,045		43.9	%
Marketing and business promotion	203		372		(45.4)	%	310		(34.5)	%	575		517		11.2	%
Data processing	380		412		(7.8)	%	441		(13.8)	%	792		845		(6.3)	%
Director fees and expenses	217		180		20.6	%	182		19.2	%	397		351		13.1	%
Regulatory assessments	382		155		146.5	%	147		159.9	%	537		288		86.5	%
Other expense	1,079		1,079		—	%	861		25.3	%	2,158		1,616		33.5	%
Total noninterest expense	$	13,627	$	13,754	(0.9)	%	$	12,245	11.3	%	$	27,381	$	24,316	12.6	%

Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to decreases in vacation accrual and other employee benefit expenses, partially offset by increases in salaries and bonus accrual. The increases for the current quarter and year-to-date period compared with the same periods of 2022 were primarily due to increases in salaries and other employee benefit expense, partially offset by decreases in bonus and vacation accruals, and incentives tied to sales of SBA loans originated at loan production offices. The number of full-time equivalent employees was 272, 276 and 271 as of June 30, 2023, March 31, 2023 and June 30, 2022, respectively.

Occupancy and Equipment. The increases for the current quarter and year-to-date period compared with the same periods of 2022 were primarily due to new branch openings during the second half of 2022. The Company opened 3 new full-service branches in Dallas and Carrollton, Texas and Palisades Park, New Jersey.

Professional Fees. The increases for the current quarter and year-to-date period were primarily due to increases in internal audit and consulting fees.

Marketing and Business Promotion. The decreases for the current quarter compared with the previous and year-ago quarters were primarily due to the decreased marketing activities and advertisements.

Regulatory Assessments. The increases in the current quarter and year-to-date period were due to an increase in FDIC assessment rates and an adjustment of $113 thousand made for the previous quarter. The FDIC increased the initial base deposit insurance assessment rate schedules by two basis points beginning in the first quarterly assessment period of 2023.

Other Expense. The increases for the current quarter and year-to-date period compared with the same periods of 2022 were primarily due to increases in office expenses, other loan related expenses and armed guard expenses attributable to the branch network expansion. Provision for credit losses on off-balance credit exposures of $36 thousand and $38 thousand was included in other expense for the year-ago quarter and previous year-to-date period, respectively, while the current quarter and year-to-date period provision was included in provision (reversal) for credit losses.

Balance Sheet (Unaudited)

Total assets were $2.56 billion at June 30, 2023, an increase of $55.8 million, or 2.2%, from $2.50 billion at March 31, 2023, an increase of $136.3 million, or 5.6%, from $2.42 billion at December 31, 2022, and an increase of $211.8 million, or 9.0%, from $2.34 billion at June 30, 2022. The increases for the current quarter and year-to-date period were primarily due to increases in cash and cash equivalents and loans held-for-investment, partially offset by a decrease in loans held-for-sale.

CECL Adoption

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 reflects the expected lifetime credit losses associated with the composition of financial assets within in 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. As a part of the adoption of ASC 326, the Company reviewed and revised certain loan segments for the Company’s ACL model. See Loan Segments Revision section of this release for a reconciliation of revised loan segments to legacy loan segments, which were utilized before the adoption of ASC 326.

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)	6/30/2023		3/31/2023		% Change		12/31/2022		% Change		6/30/2022		% Change
Commercial real estate:
Commercial property	$	793,946	$	780,282	1.8	%	$	772,020	2.8	%	$	692,817	14.6	%
Business property	533,592		521,965		2.2	%	526,513		1.3	%	524,406		1.8	%
Multifamily	124,029		127,012		(2.3)	%	124,751		(0.6)	%	118,339		4.8	%
Construction	16,942		15,930		6.4	%	17,054		(0.7)	%	12,595		34.5	%
Total commercial real estate	1,468,509		1,445,189		1.6	%	1,440,338		2.0	%	1,348,157		8.9	%
Commercial and industrial	272,278		267,674		1.7	%	249,250		9.2	%	204,369		33.2	%
Consumer:
Residential mortgage	359,655		356,967		0.8	%	333,726		7.8	%	258,259		39.3	%
Other consumer	21,985		22,612		(2.8)	%	22,749		(3.4)	%	22,225		(1.1)	%
Total consumer	381,640		379,579		0.5	%	356,475		7.1	%	280,484		36.1	%
Loans held-for-investment	2,122,427		2,092,442		1.4	%	2,046,063		3.7	%	1,833,010		15.8	%
Loans held-for-sale	13,065		14,352		(9.0)	%	22,811		(42.7)	%	9,627		35.7	%
Total loans	$	2,135,492	$	2,106,794	1.4	%	$	2,068,874	3.2	%	$	1,842,637	15.9	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding and advances on lines of credit of $252.8 million, partially offset by pay-downs and pay-offs of $222.8 million. The increase for the current year-to-date period was primarily due to new funding and advances on lines of credit of $457.7 million and purchases of residential mortgage loans of $15.7 million, partially offset by pay-downs and pay-offs of $397.1 million.

The decrease in loans held-for-sale for the current quarter was primarily due to sales of $16.8 million, partially offset by new funding of $15.6 million. The decrease for the current year-to-date was primarily due to sales of $43.9 million and pay-downs and pay-offs of $4.1 million, partially offset by new funding of $38.3 million.

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


($ in thousands)	6/30/2023		3/31/2023		% Change		12/31/2022		% Change		6/30/2022		% Change
Commercial property	$	11,118	$	6,811	63.2	%	$	7,006	58.7	%	$	8,587	29.5	%
Business property	9,487		12,307		(22.9)	%	8,396		13.0	%	10,603		(10.5)	%
Multifamily	4,500		4,500		—	%	4,500		—	%	5,500		(18.2)	%
Construction	30,865		16,563		86.3	%	18,211		69.5	%	12,080		155.5	%
Commercial and industrial	279,584		279,543		—	%	254,668		9.8	%	221,580		26.2	%
Other consumer	445		399		11.5	%	692		(35.7)	%	1,086		(59.0)	%
Total commitments to extend credit	335,999		320,123		5.0	%	293,473		14.5	%	259,436		29.5	%
Letters of credit	6,027		5,400		11.6	%	5,392		11.8	%	4,984		20.9	%
Total off-balance sheet credit exposure	$	342,026	$	325,523	5.1	%	$	298,865	14.4	%	$	264,420	29.3	%

Credit Quality

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


($ in thousands)	6/30/2023			3/31/2023			% Change		12/31/2022			% Change		6/30/2022			% Change
Nonaccrual loans
Commercial real estate:
Commercial property	$	699		$	—		—	%	$	—		—	%	$	—		—	%
Business property	3,007			2,904			3.5	%	2,985			0.7	%	564			433.2	%


Total commercial real estate	3,706			2,904			27.6	%	2,985			24.2	%	564			557.1	%
Commercial and industrial	88			11			700.0	%	—			—	%	185			(52.4)	%
Consumer:
Residential mortgage	—			—			—	%	372			(100.0)	%	450			(100.0)	%
Other consumer	51			45			13.3	%	3			1,600.0	%	24			112.5	%
Total consumer	51			45			13.3	%	375			(86.4)	%	474			(89.2)	%
Total nonaccrual loans held-for-investment	3,845			2,960			29.9	%	3,360			14.4	%	1,223			214.4	%
Loans past due 90 days or more and still accruing	—			—			—	%	—			—	%	—			—	%
Non-performing loans (“NPLs”) held-for-investment	3,845			2,960			29.9	%	3,360			14.4	%	1,223			214.4	%
NPLs held-for-sale	—			—			—	%	4,000			(100.0)	%	—			—	%
Total NPLs	3,845			2,960			29.9	%	7,360			(47.8)	%	1,223			214.4	%
Other real estate owned (“OREO”)	—			—			—	%	—			—	%	808			(100.0)	%
Non-performing assets (“NPAs”)	$	3,845		$	2,960		29.9	%	$	7,360		(47.8)	%	$	2,031		89.3	%
Loans past due and still accruing
Past due 30 to 59 days	$	428		$	779		(45.1)	%	$	47		810.6	%	$	682		(37.2)	%
Past due 60 to 89 days	—			13			(100.0)	%	87			(100.0)	%	—			—	%
Past due 90 days or more	—			—			—	%	—			—	%	—			—	%
Total loans past due and still accruing	$	428		$	792		(46.0)	%	134			219.4	%	$	682		(37.2)	%




Special mention loans	$	5,406		$	5,527		(2.2)	%	$	6,857		(21.2)	%	$	6,313		(14.4)	%
Classified assets
Classified loans held-for-investment	$	6,901		$	6,060		13.9	%	$	6,211		11.1	%	$	3,980		73.4	%
Classified loans held-for-sale	—			—			—	%	4,000			(100.0)	%	—			—	%
OREO	—			—			—	%	—			—	%	808			(100.0)	%
Classified assets	$	6,901		$	6,060		13.9	%	$	10,211		(32.4)	%	$	4,788		44.1	%
NPLs held-for-investment to loans held-for-investment	0.18		%	0.14		%			0.16		%			0.07		%
NPAs to total assets	0.15		%	0.12		%			0.30		%			0.09		%
Classified assets to total assets	0.27		%	0.24		%			0.42		%			0.20		%

During the previous quarter, NPLs held-for-sale of $4.0 million were paid-off.

Allowance for Credit Losses

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


	Three Months Ended													Six Months Ended
($ in thousands)	6/30/2023			3/31/2023			% Change		6/30/2022			% Change		6/30/2023		6/30/2022			% Change
ACL on loans
Balance at beginning of period	$	24,694		$	24,942		(1.0)	%	$	21,198		16.5	%	$	24,942	$	22,381		11.4	%
Impact of ASC 326 adoption	—			1,067			NM		—			NM		1,067		—			NM
Charge-offs	(7)			—			—	%	(47)			(85.1)	%	(7)		(59)			(88.1)	%
Recoveries	23			1,102			(97.9)	%	29			(20.7)	%	1,125		49			2,195.9	%
Provision (reversal) for credit losses on loans	157			(2,417)			NM		(109)			NM		(2,260)		(1,300)			73.8	%
Balance at end of period	$	24,867		$	24,694		0.7	%	$	21,071		18.0	%	$	24,867	$	21,071		18.0	%
Percentage to loans held-for-investment at end of period	1.17		%	1.18		%			1.15		%					1.15		%
ACL on off-balance sheet credit exposure (1)
Balance at beginning of period	$	1,545		$	299		416.7	%	$	216		615.3	%	$	299	$	214		39.7	%
Impact of ASC 326 adoption	—			1,607			NM		—			NM		1,607		—			NM
Provision (reversal) for credit losses on off-balance sheet credit exposure	40			(361)			NM		36			11.1	%	(321)		38			NM
Balance at end of period	$	1,585		$	1,545		2.6	%	$	252		529.0	%	$	1,585	$	252		529.0	%

(1)ACL on off-balance sheet credit exposures was recorded in Accrued Interest Payable and Other Liabilities on Consolidated Balance Sheets (Unaudited).

Investment Securities

Total investment securities were $138.7 million at June 30, 2023, a decrease of $6.0 million, or 4.1%, from $144.7 million at March 31, 2023, a decrease of $3.2 million, or 2.2%, from $141.9 million at December 31, 2022, and a decrease of $394 thousand, or 0.3%, from $139.1 million at June 30, 2022. The decrease for the current quarter was primarily due to principal pay-downs and calls of $4.6 million, a fair value decrease of $2.3 million and net premium amortization of $59 thousand, partially offset by purchases of $1.0 million. The decrease for the current year-to-date period was primarily due to principal pay-downs and calls of $8.7 million, a fair value decrease of $312 thousand and net premium amortization of $116 thousand, partially offset by purchases of $5.9 million.

Deposits

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


	6/30/2023				3/31/2023				12/31/2022				6/30/2022
($ in thousands)	Amount		% to Total		Amount		% to Total		Amount		% to Total		Amount		% to Total
Noninterest-bearing demand deposits	$	635,329	29.0	%	$	653,970	30.5	%	$	734,989	35.9	%	$	988,454	49.5	%
Interest-bearing deposits
Savings	7,504		0.3	%	7,584		0.4	%	8,579		0.4	%	14,686		0.7	%
NOW	16,993		0.8	%	15,696		0.7	%	11,405		0.6	%	18,881		0.9	%
Retail money market accounts	464,655		21.1	%	436,906		20.3	%	494,749		24.1	%	458,605		22.9	%
Brokered money market accounts	1		0.1	%	1		0.1	%	8		0.1	%	1		0.1	%
Retail time deposits of
$250,000 or less	392,012		17.9	%	356,049		16.6	%	295,354		14.4	%	235,956		11.8	%
More than $250,000	451,590		20.7	%	454,464		21.3	%	353,876		17.3	%	186,024		9.3	%

State and brokered time deposits	220,148		10.1	%	217,019		10.1	%	147,023		7.2	%	95,000		4.8	%
Total interest-bearing deposits	1,552,903		71.0	%	1,487,719		69.5	%	1,310,994		64.1	%	1,009,153		50.5	%
Total deposits	$	2,188,232	100.0	%	$	2,141,689	100.0	%	$	2,045,983	100.0	%	$	1,997,607	100.0	%

Estimated total deposits not covered by deposit insurance	$	1,034,148	47.3	%	$	1,019,689	47.6	%	$	1,062,111	51.9	%	$	1,199,502	60.0	%

The decrease in noninterest-bearing demand deposits was primarily due to strong deposit market competition and the migration of noninterest-bearing demand deposits to money market accounts and time deposits attributable to the rising market rates. To retain existing and attract new customers, the Bank offers competitive rates on deposit products in the rising interest rate environment.

The increase in retail time deposits for the current quarter was primarily due to new accounts of $107.9 million, renewals of the matured accounts of $88.8 million and balance increases of $4.9 million, partially offset by matured and closed accounts of $168.5 million. The increase for the current year-to-date period was primarily due to new accounts of $408.2 million, renewals of the matured accounts of $206.2 million and balance increases of $11.9 million, partially offset by matured and closed accounts of $431.9 million.

Liquidity

The following table presents a summary of the Company’s liquidity position as of June 30, 2023:


($ in thousands)	6/30/2023			12/31/2022			% Change
Cash and cash equivalents	$	222,146		$	147,031		51.1	%
Cash and cash equivalents to total assets	8.7		%	6.1		%

Available borrowing capacity
FHLB advances	$	625,115		$	561,745		11.3	%
Federal Reserve Discount Window	30,285			23,902			26.7	%

Overnight federal funds lines	65,000			65,000			—	%
Total	$	720,400		$	650,647		10.7	%
Total available borrowing capacity to total assets	28.2		%	26.9		%

During the current year-to-date period, the Company increased cash and cash equivalents by $75.1 million, or 51.1%, to $222.1 million and available borrowing capacity by $69.8 million, or 10.7%, to $720.4 million. As of June 30, 2023, the Company's cash and cash equivalents and available borrowing capacity cover approximately 91.1% of deposits not covered by deposit insurance compared to 75.1% at December 31, 2022.

Shareholders’ Equity

Shareholders’ equity was $340.4 million at June 30, 2023, an increase of $3.6 million, or 1.1%, from $336.8 million at March 31, 2023, an increase of $5.0 million, or 1.5%, from $335.4 million at December 31, 2022, and an increase of $6.0 million, or 1.8%, from $334.4 million at June 30, 2022. 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 and an increase in other comprehensive loss of $1.6 million. The increase for the current year-to-date period was primarily due to net income, partially offset by cash dividend declared on common stock of $4.8 million, repurchase of 385,381 shares of common stock at a weighted-average price of $17.76, totaling $6.8 million, and cumulative effect adjustment upon adoption of ASC 326 of $1.9 million.

Stock Repurchase

On July 28, 2022, the Company’s Board of Directors approved a repurchase program authorizing for the repurchase of up to 5% of the Company’s outstanding common stock, which represented 747,938 shares, through February 1, 2023. On January 26, 2023, the Company announced the amendment to the repurchase program, which extended the program expiration from February 1, 2023 to February 1, 2024. The Company completed the repurchase program during the previous quarter. Under this repurchase program, the Company repurchased and retired 747,938 shares of common stock at a weighted-average price of $18.15 per share, totaling $13.6 million.

Issuance of 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”). ECIP investment is treated as tier 1 capital for regulatory capital purposes.

The Series C Preferred Stock bears no dividend for the first 24 months following the investment date. Thereafter, the dividend rate will be adjusted based on the lending growth criteria listed in the terms of the ECIP investment with an annual dividend rate up to 2%. After the tenth anniversary of the investment date, the dividend rate will be fixed based on average annual amount of lending in years 2 through 10.

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:


	6/30/2023		3/31/2023		12/31/2022		6/30/2022		Well Capitalized Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)	13.12	%	13.09	%	13.29	%	14.44	%	N/A
Total capital (to risk-weighted assets)	17.57	%	17.61	%	17.83	%	19.25	%	N/A
Tier 1 capital (to risk-weighted assets)	16.34	%	16.37	%	16.62	%	18.11	%	N/A
Tier 1 capital (to average assets)	13.84	%	13.90	%	14.33	%	15.37	%	N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)	16.00	%	16.03	%	16.30	%	17.79	%	6.5	%
Total capital (to risk-weighted assets)	17.23	%	17.27	%	17.52	%	18.92	%	10.0	%
Tier 1 capital (to risk-weighted assets)	16.00	%	16.03	%	16.30	%	17.79	%	8.0	%
Tier 1 capital (to average assets)	13.55	%	13.62	%	14.05	%	15.09	%	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 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, 2022 and other filings the Company makes with the SEC, which are available at the SEC’s Internet site (http://www.sec.gov) or from the Company without charge. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

Contact:

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

PCB Bancorp and Subsidiary

Consolidated Balance Sheets (Unaudited)

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


	6/30/2023			3/31/2023			% Change		12/31/2022			% Change		6/30/2022			% Change
Assets
Cash and due from banks	$	22,159		$	25,801		(14.1)	%	$	23,202		(4.5)	%	$	23,125		(4.2)	%
Interest-bearing deposits in other financial institutions	199,987			164,718			21.4	%	123,829			61.5	%	276,785			(27.7)	%
Total cash and cash equivalents	222,146			190,519			16.6	%	147,031			51.1	%	299,910			(25.9)	%
Securities available-for-sale, at fair value	138,673			144,665			(4.1)	%	141,863			(2.2)	%	139,067			(0.3)	%
Loans held-for-sale	13,065			14,352			(9.0)	%	22,811			(42.7)	%	9,627			35.7	%
Loans held-for-investment	2,122,427			2,092,442			1.4	%	2,046,063			3.7	%	1,833,010			15.8	%
Allowance for credit losses on loans	(24,867)			(24,694)			0.7	%	(24,942)			(0.3)	%	(21,071)			18.0	%
Net loans held-for-investment	2,097,560			2,067,748			1.4	%	2,021,121			3.8	%	1,811,939			15.8	%
Premises and equipment, net	6,394			6,473			(1.2)	%	6,916			(7.5)	%	3,633			76.0	%
Federal Home Loan Bank and other bank stock	12,716			10,183			24.9	%	10,183			24.9	%	10,183			24.9	%
Other real estate owned, net	—			—			—	%	—			—	%	808			(100.0)	%
Bank-owned life insurance	30,428			30,244			0.6	%	30,064			1.2	%	29,705			2.4	%
Deferred tax assets, net	4,342			3,753			15.7	%	3,115			39.4	%	11,869			(63.4)	%
Servicing assets	7,142			7,345			(2.8)	%	7,347			(2.8)	%	7,716			(7.4)	%
Operating lease assets	5,182			5,854			(11.5)	%	6,358			(18.5)	%	6,512			(20.4)	%
Accrued interest receivable	8,040			7,998			0.5	%	7,472			7.6	%	5,212			54.3	%
Other assets	10,657			11,390			(6.4)	%	15,755			(32.4)	%	8,379			27.2	%
Total assets	$	2,556,345		$	2,500,524		2.2	%	$	2,420,036		5.6	%	$	2,344,560		9.0	%
Liabilities
Deposits
Noninterest-bearing demand	$	635,329		$	653,970		(2.9)	%	$	734,989		(13.6)	%	$	988,454		(35.7)	%
Savings, NOW and money market accounts	489,153			460,187			6.3	%	514,741			(5.0)	%	492,173			(0.6)	%
Time deposits of $250,000 or less	552,160			513,068			7.6	%	382,377			44.4	%	270,956			103.8	%
Time deposits of more than $250,000	511,590			514,464			(0.6)	%	413,876			23.6	%	246,024			107.9	%
Total deposits	2,188,232			2,141,689			2.2	%	2,045,983			7.0	%	1,997,607			9.5	%
Federal Home Loan Bank advances	—			—			—	%	20,000			(100.0)	%	—			—	%
Operating lease liabilities	5,495			6,238			(11.9)	%	6,809			(19.3)	%	7,067			(22.2)	%
Accrued interest payable and other liabilities	22,207			15,767			40.8	%	11,802			88.2	%	5,511			303.0	%
Total liabilities	2,215,934			2,163,694			2.4	%	2,084,594			6.3	%	2,010,185			10.2	%
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock	69,141			69,141			—	%	69,141			—	%	69,141			—	%
Common stock	143,686			143,356			0.2	%	149,631			(4.0)	%	155,842			(7.8)	%
Retained earnings	138,315			133,415			3.7	%	127,181			8.8	%	115,992			19.2	%
Accumulated other comprehensive loss, net	(10,731)			(9,082)			18.2	%	(10,511)			2.1	%	(6,600)			62.6	%
Total shareholders’ equity	340,411			336,830			1.1	%	335,442			1.5	%	334,375			1.8	%
Total liabilities and shareholders’ equity	$	2,556,345		$	2,500,524		2.2	%	$	2,420,036		5.6	%	$	2,344,560		9.0	%

Outstanding common shares	14,318,890			14,297,870					14,625,474					14,956,760
Book value per common share (1)	$	23.77		$	23.56				$	22.94				$	22.36
TCE per common share (2)	$	18.94		$	18.72				$	18.21				$	17.73
Total loan to total deposit ratio	97.59		%	98.37		%			101.12		%			92.24		%
Noninterest-bearing deposits to total deposits	29.03		%	30.54		%			35.92		%			49.48		%

(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
	6/30/2023			3/31/2023			% Change		6/30/2022			% Change		6/30/2023			6/30/2022			% Change
Interest and dividend income
Loans, including fees	$	32,960		$	31,229		5.5	%	$	21,243		55.2	%	$	64,189		$	41,433		54.9	%
Investment securities	1,136			1,102			3.1	%	668			70.1	%	2,238			1,144			95.6	%
Other interest-earning assets	2,742			2,205			24.4	%	535			412.5	%	4,947			763			548.4	%
Total interest income	36,838			34,536			6.7	%	22,446			64.1	%	71,374			43,340			64.7	%
Interest expense
Deposits	15,121			11,913			26.9	%	1,041			1,352.5	%	27,034			1,891			1,329.6	%
Other borrowings	—			209			(100.0)	%	54			(100.0)	%	209			105			99.0	%
Total interest expense	15,121			12,122			24.7	%	1,095			1,280.9	%	27,243			1,996			1,264.9	%
Net interest income	21,717			22,414			(3.1)	%	21,351			1.7	%	44,131			41,344			6.7	%
Provision (reversal) for credit losses	197			(2,778)			NM		(109)			NM		(2,581)			(1,300)			98.5	%
Net interest income after provision (reversal) for credit losses	21,520			25,192			(14.6)	%	21,460			0.3	%	46,712			42,644			9.5	%
Noninterest income
Gain on sale of loans	769			1,309			(41.3)	%	2,039			(62.3)	%	2,078			5,816			(64.3)	%

Service charges and fees on deposits	369			344			7.3	%	330			11.8	%	713			633			12.6	%
Loan servicing income	868			860			0.9	%	755			15.0	%	1,728			1,455			18.8	%
Bank-owned life insurance income	184			180			2.2	%	175			5.1	%	364			347			4.9	%
Other income	467			328			42.4	%	349			33.8	%	795			683			16.4	%
Total noninterest income	2,657			3,021			(12.0)	%	3,648			(27.2)	%	5,678			8,934			(36.4)	%
Noninterest expense
Salaries and employee benefits	8,675			8,928			(2.8)	%	8,125			6.8	%	17,603			16,720			5.3	%
Occupancy and equipment	1,919			1,896			1.2	%	1,537			24.9	%	3,815			2,934			30.0	%
Professional fees	772			732			5.5	%	642			20.2	%	1,504			1,045			43.9	%
Marketing and business promotion	203			372			(45.4)	%	310			(34.5)	%	575			517			11.2	%
Data processing	380			412			(7.8)	%	441			(13.8)	%	792			845			(6.3)	%
Director fees and expenses	217			180			20.6	%	182			19.2	%	397			351			13.1	%
Regulatory assessments	382			155			146.5	%	147			159.9	%	537			288			86.5	%
Other expense	1,079			1,079			—	%	861			25.3	%	2,158			1,616			33.5	%
Total noninterest expense	13,627			13,754			(0.9)	%	12,245			11.3	%	27,381			24,316			12.6	%
Income before income taxes	10,550			14,459			(27.0)	%	12,863			(18.0)	%	25,009			27,262			(8.3)	%
Income tax expense	3,073			4,162			(26.2)	%	3,771			(18.5)	%	7,235			7,930			(8.8)	%
Net income	$	7,477		$	10,297		(27.4)	%	$	9,092		(17.8)	%	$	17,774		$	19,332		(8.1)	%

Earnings per common share
Basic	$	0.52		$	0.71				$	0.61				$	1.24		$	1.29
Diluted	$	0.52		$	0.70				$	0.60				$	1.22		$	1.27
Average common shares
Basic	14,271,200			14,419,155					14,883,768					14,344,769			14,865,990
Diluted	14,356,776			14,574,929					15,122,452					14,468,981			15,138,493

Dividend paid per common share	$	0.18		$	0.15				$	0.15				$	0.33		$	0.30
Return on average assets (1)	1.19		%	1.69		%			1.65		%			1.44		%	1.78		%
Return on average shareholders’ equity (1)	8.82		%	12.46		%			12.48		%			10.62		%	14.13		%
Return on average TCE (1), (2)	11.08		%	15.70		%			13.85		%			13.35		%	14.92		%
Efficiency ratio (3)	55.91		%	54.08		%			48.98		%			54.97		%	48.36		%

(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
	6/30/2023						3/31/2023						6/30/2022
	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)	$	2,097,489	$	32,960	6.30	%	$	2,072,415	$	31,229	6.11	%	$	1,804,368	$	21,243	4.72	%
Mortgage-backed securities	98,971		713		2.89	%	97,578		683		2.84	%	88,032		416		1.90	%
Collateralized mortgage obligation	26,228		262		4.01	%	26,743		256		3.88	%	25,929		125		1.93	%
SBA loan pool securities	8,364		81		3.88	%	9,027		82		3.68	%	11,164		43		1.54	%
Municipal bonds (2)	4,234		33		3.13	%	4,221		34		3.27	%	5,347		37		2.78	%
Corporate bonds	4,339		47		4.34	%	4,510		47		4.23	%	4,852		47		3.89	%
Other interest-earning assets	213,883		2,742		5.14	%	186,809		2,205		4.79	%	195,633		535		1.10	%
Total interest-earning assets	2,453,508		36,838		6.02	%	2,401,303		34,536		5.83	%	2,135,325		22,446		4.22	%
Noninterest-earning assets
Cash and due from banks	20,754						21,155						20,801
ACL on loans	(24,710)						(26,757)						(21,204)
Other assets	71,200						75,175						73,137
Total noninterest-earning assets	67,244						69,573						72,734
Total assets	$	2,520,752					$	2,470,876					$	2,208,059
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	465,564	3,929		3.38	%	$	485,962	3,445		2.87	%	$	464,829	430		0.37	%
Savings	7,767		5		0.26	%	8,099		5		0.25	%	14,989		2		0.05	%
Time deposits	1,054,191		11,187		4.26	%	916,751		8,463		3.74	%	521,606		609		0.47	%
Total interest-bearing deposits	1,527,522		15,121		3.97	%	1,410,812		11,913		3.42	%	1,001,424		1,041		0.42	%
Other borrowings	—		—		0.00	%	15,811		209		5.36	%	11,132		54		1.95	%
Total interest-bearing liabilities	1,527,522		15,121		3.97	%	1,426,623		12,122		3.45	%	1,012,556		1,095		0.43	%
Noninterest-bearing liabilities
Noninterest-bearing demand	628,127						687,575						889,691
Other liabilities	25,234						21,509						13,677
Total noninterest-bearing liabilities	653,361						709,084						903,368
Total liabilities	2,180,883						2,135,707						1,915,924
Total shareholders’ equity	339,869						335,169						292,135
Total liabilities and shareholders’ equity	$	2,520,752					$	2,470,876					$	2,208,059
Net interest income			$	21,717					$	22,414					$	21,351
Net interest spread (3)					2.05	%					2.38	%					3.79	%
Net interest margin (4)					3.55	%					3.79	%					4.01	%
Total deposits	$	2,155,649	$	15,121	2.81	%	$	2,098,387	$	11,913	2.30	%	$	1,891,115	$	1,041	0.22	%
Total funding (5)	$	2,155,649	$	15,121	2.81	%	$	2,114,198	$	12,122	2.33	%	$	1,902,247	$	1,095	0.23	%

(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
	6/30/2023						6/30/2022
	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)	$	2,085,021	$	64,189	6.21	%	$	1,788,958	$	41,433	4.67	%
Mortgage-backed securities	98,278		1,396		2.86	%	86,138		723		1.69	%
Collateralized mortgage obligation	26,484		518		3.94	%	22,106		173		1.58	%
SBA loan pool securities	8,693		163		3.78	%	10,633		81		1.54	%
Municipal bonds (2)	4,228		67		3.20	%	5,489		73		2.68	%
Corporate bonds	4,424		94		4.28	%	4,944		94		3.83	%
Other interest-earning assets	200,420		4,947		4.98	%	197,267		763		0.78	%
Total interest-earning assets	2,427,548		71,374		5.93	%	2,115,535		43,340		4.13	%
Noninterest-earning assets
Cash and due from banks	20,953						20,594
ACL on loans	(25,727)						(21,787)
Other assets	73,177						70,384
Total noninterest-earning assets	68,403						69,191
Total assets	$	2,495,951					$	2,184,726
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	475,707	7,374		3.13	%	$	448,496	743		0.33	%
Savings	7,932		10		0.25	%	15,315		4		0.05	%
Time deposits	985,851		19,650		4.02	%	553,818		1,144		0.42	%
Total interest-bearing deposits	1,469,490		27,034		3.71	%	1,017,629		1,891		0.37	%
Other borrowings	7,862		209		5.36	%	10,768		105		1.97	%
Total interest-bearing liabilities	1,477,352		27,243		3.72	%	1,028,397		1,996		0.39	%
Noninterest-bearing liabilities
Noninterest-bearing demand	657,687						865,294
Other liabilities	23,382						15,194
Total noninterest-bearing liabilities	681,069						880,488
Total liabilities	2,158,421						1,908,885
Total shareholders’ equity	337,530						275,841
Total liabilities and shareholders’ equity	$	2,495,951					$	2,184,726
Net interest income			$	44,131					$	41,344
Net interest spread (3)					2.21	%					3.74	%
Net interest margin (4)					3.67	%					3.94	%
Total deposits	$	2,127,177	$	27,034	2.56	%	$	1,882,923	$	1,891	0.20	%
Total funding (5)	$	2,135,039	$	27,243	2.57	%	$	1,893,691	$	1,996	0.21	%

(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.

(6)Annualized.

PCB Bancorp and Subsidiary

Loan Segments Revision (Unaudited)

($ in thousands)

As a part of the adoption of ASC 326, the Company reviewed and revised certain loan segments for the Company’s ACL model. Before the adoption of ASC 326, commercial property and SBA property loans were separately presented and represented 63.0% and 6.6% of loans held-for-investment at December 31, 2022, respectively. The Company re-divided these loan segments into commercial property (non-owner occupied), business property (owner occupied) and multifamily loans as these new loan segments are determined to share similar characteristics under the Company’s ACL model. In addition, four loan segments before the adoption of ASC 326 (commercial term loans, commercial lines of credit, SBA term loans and SBA PPP loans), which represented 12.2% of loans held-for-investment at December 31, 2022, are combined into a single loan segment, commercial and industrial loans, as these loans are determined to share similar risk characteristics under the Company’s ACL model. In this release, loan segments on loan related disclosures for prior period comparisons are revised accordingly in order to be comparable to the Company’s new loan segments.

The following table presents a reconciliation of revised loan segments to legacy loan segments, which were utilized before the adoption of ASC 326:


($ in thousands)	6/30/2023		3/31/2023		12/31/2022		6/30/2022
Revision for commercial real estate loans
Revised loan segments:
Commercial property	$	793,946	$	780,282	$	772,020	$	692,817
Business property	533,592		521,965		526,513		524,406
Multifamily	124,029		127,012		124,751		118,339
Total	$	1,451,567	$	1,429,259	$	1,423,284	$	1,335,562
Legacy loan segments:
Commercial property	$	1,320,110	$	1,300,719	$	1,288,392	$	1,204,142
SBA property	131,457		128,540		134,892		131,420
Total	$	1,451,567	$	1,429,259	$	1,423,284	$	1,335,562

Revision for commercial and industrial loans
Revised loan segments:
Commercial and industrial	$	272,278	$	267,674	$	249,250	$	204,369
Legacy loan segments:
Commercial term	$	90,213	$	91,740	$	77,700	$	73,885
Commercial lines of credit	165,162		159,268		154,142		111,916
SBA commercial term	15,900		15,566		16,211		16,985
SBA PPP	1,003		1,100		1,197		1,583
Total	$	272,278	$	267,674	$	249,250	$	204,369

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
		6/30/2023			3/31/2023			6/30/2022			6/30/2023			6/30/2022
Average total shareholders' equity	(a)	$	339,869		$	335,169		$	292,135		$	337,530		$	275,841
Less: average preferred stock	(b)	69,141			69,141			28,872.00			69,141			14,516
Average TCE	(c)=(a)-(b)	$	270,728		$	266,028		$	263,263		$	268,389		$	261,325
Net income	(d)	$	7,477		$	10,297		$	9,092		$	17,774		$	19,332
Return on average shareholder's equity (1)	(d)/(a)	8.82		%	12.46		%	12.48		%	10.62		%	14.13		%
Return on average TCE (1)	(d)/(c)	11.08		%	15.70		%	13.85		%	13.35		%	14.92		%

(1) Annualized.


($ in thousands, except per share data)		6/30/2023			3/31/2023			12/31/2022			6/30/2022
Total shareholders' equity	(a)	$	340,411		$	336,830		$	335,442		$	334,375
Less: preferred stock	(b)	69,141			69,141			69,141			69,141
TCE	(c)=(a)-(b)	$	271,270		$	267,689		$	266,301		$	265,234
Outstanding common shares	(d)	14,318,890			14,297,870			14,625,474			14,956,760
Book value per common share	(a)/(d)	$	23.77		$	23.56		$	22.94		$	22.36
TCE per common share	(c)/(d)	$	18.94		$	18.72		$	18.21		$	17.73
Total assets	(e)	$	2,556,345		$	2,500,524		$	2,420,036		$	2,344,560
Total shareholders' equity to total assets	(a)/(e)	13.32		%	13.47		%	13.86		%	14.26		%
TCE to total assets	(c)/(e)	10.61		%	10.71		%	11.00		%	11.31		%

Earnings Results Second Quarter 2023 July 27, 2023

Forward-Looking Statement & Non-GAAP Forward-Looking Statement This presentation 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 our financial performance and our 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; the success of acquisitions and branch expansion; 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 various securities law filings made periodically by the Company, copies of which are available without charge on the SEC’s website at www.sec.gove and the 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 presentation, and we do 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. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. For purposes of SEC Regulation G, a non-GAAP financial measure is a numerical measure of the historical or future financial performance, financial position or cash flows that excludes amounts or is subject to adjustments that have the effect of excluding amounts that are included in the most directly comparable measure calculated and presented in accordance with GAAP. Pursuant to the requirements of the SEC Regulation G, reconciliation of non-GAAP measures to the most directly comparable GAAP measures are provided in the Non-GAAP Measures of this presentation. References to the “Company,” “we,” or “us” refer to PCB Bancorp and references to the “Bank” refer to the Company’s subsidiary, PCB Bank.

Market Information 7/25/23 Market Cap $235.8 million Stock Price Per Share $16.44 52-Week Range $13.11 - $20.19 Dividend Yield 4.38% Dividend Payout Ratio (3Q22 – Q223) 27.51% Outstanding Shares 14,343,590 Stock Information 2Q23 or 6/30/23 Diluted Earnings Per Share (“Diluted EPS”) $0.52 Cash Dividend Per Share $0.18 Book Value (“BV”) Per Share $23.77 Tangible Common Equity (“TCE”) Per Share (1) $18.94 Number of Repurchased Stock (2) 0 (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of these measures to their most comparable GAAP measures (2) Stock repurchase plan announced on 7/28/22 was completed in 1Q23. Repurchased and retired 747,938 shares at a weighted-average purchase price of $18.15 per share totaling $13.6 million PCB Footprint Corporate Profile

Historical Performance (1) At period end (2) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of these measures to their most comparable GAAP measures

2Q23 Highlights Operating Results • Net income of $7.5 million, or $0.52 per diluted share • Provision for credit losses of $197 thousand • ROAA of 1.19% & ROATCE (1) of 11.08%, net interest margin of 3.55%, and efficiency ratio of 55.9% Loans • Loans held-for-investment (“HFI loans”) Increased $30.0 million, or 1.4%, to $2.12 billion • Loans held-for-sale (“HFS loans”) decreased $1.3 million, or 9.0%, to $13.1 million. • Average loans yield was 6.30% compared to 6.11% for 1Q23 • Total loans to deposits ratio was 97.6% • Quarterly loan production was $123.3 million compared to $111.7 million for 1Q23 Asset Quality • ACL for loans was $24.9 million, or 1.17% to HFI loans • Past due loans were $428 thousand, or 0.02% to HFI loans, and NPLs were $3.8 million, or 0.18% to HFI loans Deposits • Total deposits increased $46.5 million, or 2.2%, to $2.19 billion • Core deposits(1) were $1.52 billion, or 69.3% of total deposits • Non-interest bearing deposits were $635.3 million, or 29.0% of total deposits • Uninsured deposits were $1.03 billion, or 47.3% of total deposits • Cost of average interest-bearing deposits and total deposits were 3.97% and 2.81%, respectively Capital & Liquidity • Declared and paid quarterly cash dividend of $0.18 per share compared to $0.15 per share for 1Q23 • TBV per share increased to $18.94 • Total cash and available borrowing capacity covers 91.1% of uninsured deposits compared to 75.1% at 12/31/22 (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of these measures to their most comparable GAAP measures

Selected Financial As of or For the Three Months Ended Compared to 3/31/23 Compared to 6/30/22 ($ in Thousands, Except Per Share Data) 6/30/23 3/31/23 6/30/22 Amount Percentage Amount Percentage Income Statement Summary: Interest Income $ 36,838 $ 34,536 $ 22,446 $ 2,302 6.7% $ 14,392 64.1% Interest Expense 15,121 12,122 1,095 2,999 24.7% 14,026 1280.9% Net Interest Income 21,717 22,414 21,351 (697) -3.1% 366 1.7% Noninterest Income 2,657 3,021 3,648 (364) -12.0% (991) -27.2% Noninterest Expense 13,627 13,754 12,245 (127) -0.9% 1,382 11.3% Provision (Reversal) for Credit Losses (1) 197 (2,778) (109) 2,975 -107.1% 306 -280.7% Pretax Income 10,550 14,459 12,863 (3,909) -27.0% (2,313) -18.0% Income Tax Expense 3,073 4,162 3,771 (1,089) -26.2% (698) -18.5% Net Income 7,477 10,297 9,092 (2,820) -27.4% (1,615) -17.8% Diluted Earnings Per Share $ 0.52 $ 0.70 $ 0.60 $ (0.18) -25.7% $ (0.08) -13.3% Selected Balance Sheet Items: HFI loans $ 2,122,427 $ 2,092,442 $ 1,833,010 $ 29,985 1.4% $ 289,417 15.8% HFS loans 13,065 14,352 9,627 (1,287) -9.0% 3,438 35.7% Total Deposits 2,188,232 2,141,689 1,997,607 46,543 2.2% 190,625 9.5% Total Assets 2,556,345 2,500,524 2,344,560 55,821 2.2% 211,785 9.0% Shareholders’ Equity 340,411 336,830 334,375 3,581 1.1% 6,036 1.8% TCE (2) 271,270 267,689 265,234 3,581 1.3% 6,036 2.3% Key Metrics: Book Value Per Share $ 23.77 $ 23.56 $ 22.36 $ 0.21 0.9% $ 1.41 6.3% TCE Per Share (2) $ 18.94 $ 18.72 $ 17.73 $ 0.22 1.2% $ 1.21 6.8% Return on Average Assets (“ROAA”) (3) 1.19% 1.69% 1.65% -0.50% -0.46% Return on Average Equity (“ROAE”) (3) 8.82% 12.46% 12.48% -3.64% -3.66% Return on Average TCE (“ROATCE”) (2), (3) 11.08% 15.70% 13.85% -4.62% -2.77% Net Interest Margin (3) 3.55% 3.79% 4.01% -0.24% -0.46% Efficiency Ratio (4) 55.91% 54.08% 48.98% 1.83% 6.93% (1) Provision (reversal) for credit losses and ACL for reporting periods beginning with 1/1/23 are presented under ASC 326, while prior period comparisons continue to be presented under legacy ASC 450 and ASC 310 (2) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of these measures to their most comparable GAAP measures (3) Annualized (4) Calculated by dividing noninterest expense by the sum of net interest income and noninterest income

Loan Overview (1) Per regulatory definition in the Commercial Real Estate (“CRE”) Concentration Guidance 2Q23 Highlights • HFI loans Increased $30.0 million, or 1.4%, to $2.12 billion • CRE loans increased $23.3MM (1.6%), C&I loans increased $4.6MM (1.7%) & residential mortgage loans increased $2.7MM (0.8%)

Loan Production & Rate/Yield Analysis (1) Total commitment basis (2) Excluding SBA PPP loans (3) Include both HFI and HFS loans (4) Annualized Repricing Schedule (6/30/23) HFI Loans HFS Loans Total Loans ($ in thousands) Carrying Value WA Rate Carrying Value WA Rate Carrying Value WA Rate Less Than 3 Months $ 711,657 8.73% $ 13,065 9.62% $ 724,722 8.75% 3 to 12 Months 118,469 5.13% 0 118,469 5.13% 1 to 3 Years 401,553 4.54% 0 401,553 4.54% 3 to 5 Years 785,649 4.75% 0 785,649 4.75% More than 5 Years 105,099 4.76% 0 105,099 4.76% Total $ 2,122,427 6.07% $ 13,065 9.62% $ 2,135,492 6.09% Loan Yield Analysis 2Q23 06/23 YTD ($ in thousands) Amount(3) Yield(4) Amount(3) Yield(4) Average Carrying Value $ 2,097,489 $ 2,085,021 Interest on Loans $ 31,962 6.11% $ 62,345 6.03% Fee (Cost) 179 0.03% 301 0.03% Prepayment Penalty & Late Charges 68 0.01% 121 0.01% Discount (Premium) 751 0.14% 1,422 0.14% Total Interest & Fees $ 32,960 6.30% $ 64,189 6.21%

Carrying Value % to Total Count WA LTV(1) WA Rate Maturing ($ in thousands) <= 1 Year 2-3 Years 3-5 Years > 5 Years Retail (More than 50%) $ 316,290 21.4% 293 48.1% 5.85% $ 26,687 $ 92,026 $ 72,954 $ 124,623 Industrial 270,268 18.4% 166 50.7% 5.81% 42,919 50,670 60,527 116,152 Mixed Use 160,937 11.0% 146 45.3% 5.61% 13,462 36,687 56,948 53,840 Motel & Hotel 109,411 7.5% 111 49.8% 7.05% 10,298 3,591 24,238 71,284 Apartments 104,149 7.1% 53 52.2% 4.63% 4,133 8,543 39,066 52,407 Gas Station 101,471 6.9% 122 54.7% 6.46% 3,006 5,083 24,184 69,198 Office 81,149 5.5% 51 54.0% 5.46% 6,383 12,502 29,376 32,888 Medical 57,031 3.9% 29 41.5% 7.39% 11,999 490 29,963 14,579 Auto (Sales, Repair, & etc.) 39,174 2.7% 33 54.6% 5.52% 690 10,826 741 26,917 Car Wash 36,954 2.5% 31 50.7% 5.84% 1,485 11,821 8,189 15,459 Spa, Sauna, & Other Self-Care 29,904 2.0% 9 50.8% 5.00% - 13,578 434 15,892 Condominium (Commercial) 28,624 1.9% 37 47.8% 5.76% 2,897 8,287 7,502 9,938 Golf Course 27,670 1.9% 6 48.1% 4.37% 1,743 18,075 5,624 2,228 Wholesale 23,214 1.6% 17 43.5% 5.65% 3,435 4,384 1,999 13,396 Construction 16,942 1.2% 8 48.5% 9.25% 16,942 0 0 0 Church 9,686 0.7% 14 35.8% 4.89% 664 1,429 5,296 2,297 Others 55,635 3.8% 76 53.7% 6.19% 7,361 12,410 9,833 26,031 Total $ 1,468,509 100.0% 1,202 49.6% 5.89% $ 154,104 $ 290,402 $ 376,874 $ 647,129 Loan Concentration (1) Collateral value at origination Commercial Real Estate Loans by Property Type (6/30/23) ($ in thousands) Carrying Value WA LTV(1) WA FICO Residential Mortgage $ 359,655 59.7% 760 Residential Mortgage Loans (3/31/23)

Loan Concentration Carrying Value % to Total WA Rate WA Month to Maturity($ in thousands) Finance & Insurance $ 70,683 26.0% 7.82% 4 General Manufacturing & Wholesale Trade 52,526 19.3% 8.57% 20 Food Services 43,300 15.9% 8.92% 45 Retail Trade 33,730 12.4% 9.08% 57 Real Estate Related 32,302 11.9% 7.66% 20 Professional, Scientific, & Technical Services 15,489 5.7% 8.73% 17 Entertainment & Recreation 8,880 3.3% 6.99% 42 Transportation & Warehousing 4,621 1.7% 8.33% 12 Other Services 4,406 1.6% 8.07% 48 Health Care & Social Assistance 4,215 1.5% 9.01% 29 All Other 2,126 0.8% 7.70% 29 Total $ 272,278 100.0% 8.33% 26 Commercial & Industrial Loans by Industry Type (6/30/23)

Credit Quality & Peer(1) Comparison (1) Korean-American banks operating in Southern California (2) Source: UBPR (3) PCB Bank’s Peer Group per UBPR (4) Source: press releases concerning financial performance

Deposits (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure. Time Deposit Maturity Schedule (6/30/23) Retail Wholesale Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 89,413 3.59% $ 127,827 4.95% $ 217,240 4.39% 3 to 6 Months 302,013 4.20% 87,608 4.68% 389,621 4.31% 6 to 9 Months 317,428 4.51% 3,756 3.90% 321,184 4.50% 9 to 12 Months 130,096 4.55% 957 4.35% 131,053 4.55% More than 12 Months 4,652 2.87% 0 4,652 2.87% Total $ 843,602 4.30% $ 220,148 4.82% $ 1,063,750 4.41% 2Q23 Highlights • Total deposits increased $46.5MM (2.2%) and retail deposits increased $43.4MM (2.3%) • Uninsured deposits were $1.03B (47.3% of total deposits) compared to $1.02B (47.6% of total deposits) at 03/31/23

Profitability (1) PTPP (Pre-Tax Pre-Provision) income, and adjusted EPS, ROAA and ROAE for PTPP are not presented in accordance with GAAP. See “Non-GAAP measure” for reconciliations of these measures to their most comparable GAAP measures. 2Q23 Highlights • The decrease in PTPP income was primarily due to decreases in gain on sale of loans of $540K and net interest income of $697K. • PTPP income for 1Q23 included reversal for credit losses of $2.8MM, which the Company recognized provision for credit losses of $197K for 2Q23.

Noninterest Income & Expense (1) Annualized (2) Calculated by dividing noninterest expense by the sum of net interest income and noninterest income. Peer average data from UBPR (3) Full-time equivalent

Net Interest Margin (1) Annualized 2Q23 Highlights • Net interest income decreased $697K to $21.7MM from $22.4MM for 1Q23. • Net interest margin decreased to 3.55% from 3.79% for 1Q23 mainly due to an increase in cost of average interest-bearing liabilities, partially offset by an increase in yield on average interest- earning assets.

Capital (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.

Non-GAAP Measures To supplement the financial information presented in accordance with GAAP, we use certain non-GAAP financial measures. Management believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. Risks associated with non-GAAP measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. In the information below, we provide reconciliations of the non-GAAP financial measures used in this presentation to the most direct comparable GAAP measures. Core Deposits Core Deposits are a non-GAAP measure that we use to measure the portion of our total deposits that are thought to be more stable, lower cost and reprice less frequently on average in a rising rate environment. We calculate core deposits as total deposits less time deposits greater than $250,000 and brokered deposits. Management tracks its core deposits because management believes it is a useful measure to help assess the Company’s deposit base and, among other things, potential volatility therein. ROATCE, TCE Per Share and TCE to Total Assets ROATCE, TCE per share and TCE to total assets measures that we use to measure the Company’s performance. We calculated TCE as total shareholders’ equity excluding preferred stock. Management believes the non-GAAP measures provide useful supplemental information, and a clearer understanding of the Company’s performance. PTPP Income, and Adjusted ROAA, ROAE and Diluted EPS for PTPP PTPP income, and adjusted ROAA, ROAE and Diluted EPS are non-GAAP measures that we use to measure the Company’s performance and believe these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. We calculated PTPP income as net income excluding income tax provision and provision for loan losses.

Non-GAAP Measures The following table reconciles core deposits to their most comparable GAAP measures: ($ in thousands) Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Total Deposits (d) $ 1,832,666 $ 1,867,134 $ 1,910,379 $ 1,997,607 $ 1,978,098 $ 2,045,983 $ 2,141,689 $ 2,188,231 Less: Time Deposits Greater Than $250K (263,127) (272,269) (273,844) (246,024) (299,271) (413,876) (514,464) (511,590) Less: Brokered Deposits (65,004) (85,001) (35,001) (35,001) (79,131) (87,031) (157,020) (160,149) Core Deposits (e) $ 1,504,535 $ 1,509,864 $ 1,601,534 $ 1,716,582 $ 1,599,696 $ 1,545,076 $ 1,470,205 $ 1,516,492 Core Deposits to Total Deposits (e)/(d) 82.1% 80.9% 83.8% 85.9% 80.9% 75.5% 68.6% 69.3% The following table reconciles ROATCE to its most comparable GAAP measure: ($ in thousands) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Q123 Q223 Average Total Shareholders' Equity (a) $ 243,185 $ 251,477 $ 259,367 $ 292,135 $ 338,248 $ 334,832 $ 335,169 $ 339,869 Less: Average Preferred Stock 0 0 0 28,872 69,141 69,141 69,141 69,141 Average TCE (Non-GAAP) (b) $ 243,185 $ 251,477 $ 259,367 $ 263,263 $ 269,107 $ 265,691 $ 266,028 $ 270,728 Net Income (c) $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 $ 8,702 $ 10,297 $ 7,477 ROAE (1) (c)/(a) 17.98% 16.84% 16.01% 12.48% 8.16% 10.31% 12.46% 8.82% ROATCE (Non-GAAP)(1) (c)/(b) 17.98% 16.84% 16.01% 13.85% 10.25% 12.99% 15.70% 11.08% The following table reconciles TCE per share and TCE to total assets to their most comparable GAAP measures: ($ in thousands, except per share data) Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Total Shareholders' Equity (a) $ 247,598 $ 256,286 $ 261,058 $ 334,375 $ 332,719 $ 335,442 $ 336,830 $ 340,411 Less: Preferred Stock 0 0 0 69,141 69,141 69,141 69,141 69,141 TCE (Non-GAAP) (b) $ 247,598 $ 256,286 $ 261,058 $ 265,234 $ 263,578 $ 266,301 $ 267,689 $ 271,270 Outstanding Shares (c) 14,841,626 14,865,825 14,944,663 14,956,760 14,853,140 14,625,474 14,297,870 14,318,890 Book Value Per Share (a)/(c) $ 16.68 $ 17.24 $ 17.47 $ 22.36 $ 22.40 $ 22.94 $ 23.56 $ 23.77 TCE Per Share (Non-GAAP) (b)/(c) $ 16.68 $ 17.24 $ 17.47 $ 17.73 $ 17.75 $ 18.21 $ 18.72 $ 18.94 Total Assets (d) $ 2,104,699 $ 2,149,735 $ 2,199,742 $ 2,344,560 $ 2,327,051 $ 2,420,036 $ 2,500,524 $ 2,556,345 Total Shareholders’ Equity to Total Assets (a)/(d) 11.76% 11.92% 11.87% 14.26% 14.30% 13.86% 13.47% 13.32% TCE to Total Assets (Non-GAAP) (b)/(d) 11.76% 11.92% 11.87% 11.31% 11.33% 11.00% 10.71% 10.61%

Non-GAAP Measures (1) Provision (reversal) for credit losses does not include provision (reversal) for off-balance sheet credit exposures for periods prior to January 1, 2023. (2) Annualized. The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: ($ in thousands) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Net Income (a) $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 $ 8,702 $ 10,297 $ 7,477 Add: Provision (Reversal) for Credit Losses(1) (1,053) (1,462) (1,191) (109) 3,753 1,149 (2,778) 197 Add: Income Tax Provision 4,613 4,551 4,159 3,771 2,798 3,688 4,162 3,073 PTPP Income (Non-GAAP) (b) $ 14,583 $ 13,765 $ 13,208 $ 12,754 $ 13,504 $ 13,539 $ 11,681 $ 10,747 Average Total Assets (c) $ 2,070,365 $ 2,111,834 $ 2,161,132 $ 2,208,059 $ 2,319,439 $ 2,395,712 $ 2,470,876 $ 2,520,752 ROAA (2) (a)/(c) 2.11% 2.01% 1.92% 1.65% 1.19% 1.44% 1.69% 1.19% Adjusted ROAA (Non-GAAP)(2) (b)/(c) 2.79% 2.59% 2.48% 2.32% 2.31% 2.24% 1.92% 1.71% Average Total Shareholders' Equity (d) $ 243,185 $ 251,477 $ 259,367 $ 292,135 $ 338,248 $ 334,832 $ 335,169 $ 339,869 ROAE (2) (a)/(d) 17.98% 16.84% 16.01% 12.48% 8.16% 10.31% 12.46% 8.82% Adjusted ROAE (Non-GAAP)(2) (b)/(d) 23.79% 21.72% 20.65% 17.51% 15.84% 16.04% 14.13% 12.68% Net Income $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 $ 8,702 $ 10,297 $ 7,477 Less: Income Allocated to Participating Securities (43) (40) (48) (42) (30) (37) (33) (24) Net Income Allocated to Common Stock (e) 10,980 10,636 10,192 9,050 6,923 8,665 10,264 7,453 Add: Provision for Loan Losses (1,053) (1,462) (1,191) (109) 3,753 1,149 (2,778) 197 Add: Income Tax Provision 4,613 4,551 4,159 3,771 2,798 3,688 4,162 3,073 PTPP Income Allocated to Common Stock (f) $ 14,540 $ 13,725 $ 13,160 $ 12,712 $ 13,474 $ 13,502 $ 11,648 $ 10,723 WA common shares outstanding, diluted (g) 15,031,558 15,093,351 15,141,693 15,122,452 15,088,089 14,904,106 14,574,929 14,356,776 Diluted EPS (e)/(g) $ 0.73 $ 0.70 $ 0.67 $ 0.60 $ 0.46 $ 0.58 $ 0.70 $ 0.52 Adjusted Diluted EPS (Non-GAAP) (f)/(g) $ 0.97 $ 0.91 $ 0.87 $ 0.84 $ 0.89 $ 0.91 $ 0.80 $ 0.75 ($ in thousands) 2018 2019 2020 2021 2022 06/22 YTD Net Income $ 24,301 $ 24,108 $ 16,175 $ 40,103 $ 34,987 $ 17,774 Add: Provision (Reversal) for Credit Losses(1) 1,231 4,237 13,219 (4,596) 3,602 (2,581) Add: Income Tax Provision 10,444 10,243 6,836 16,856 14,416 7,235 PTPP Income (Non-GAAP) $ 35,976 $ 38,588 $ 36,230 $ 52,363 $ 53,005 $ 22,428


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value	PCB	Nasdaq Global Select Market


Exhibit No.						Description

10.1						Form of Stock Option Agreement under 2023 Equity Based Compensation Plan
10.2						Form of Restricted Stock Award Agreement under 2023 Equity Based Compensation Plan
99.1						Press release of PCB Bancorp, issued July 2 7 , 2023, concerning the results of operations and financial condition for the second quarter of 2023
99.2						Investor presentation of PCB Bancorp concerning the unaudited results for the second quarter of 2023
99.3						Press release of PCB Bancorp, issued July 27, 2023, announcing the declaration of a quarterly cash dividend


		PCB Bancorp

Date:	July 27, 2023	/s/ Timothy Chang
		Timothy Chang
		Executive Vice President and Chief Financial Officer