PCB 8-K
Pcb Bancorp (PCB)
8-K
2024-10-24
For: 2024-10-24
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Added on
April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): October 24, 2024
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: (213 ) 210-2000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 24, 2024, PCB Bancorp, a California corporation (the “Company”), issued a press release concerning its unaudited results for the third quarter of 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
The information in this report set forth under this Item 2.02 and in Exhibit 99.1 shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly stated by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
Attached as Exhibit 99.2, and incorporated herein by reference, is a copy of an investor presentation that may be utilized by management at future discussions with investors. The information in this report set forth under this Item 7.01 and in Exhibit 99.2 shall not be treated as “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except expressly stated by specific reference in such filing.
Item 8.01 Other Events.
Common Stock Dividend
On October 24, 2024, the Company issued a press release announcing that on October 23, 2024, its Board of Directors declared a quarterly cash dividend of $0.18 per common share. The dividend will be paid on or about November 15, 2024, to shareholders of record as of the close of business on November 8, 2024. A copy of the press release is attached as Exhibit 99.3 to this Current Report and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press release of PCB Bancorp, issued October 24, 2024, concerning the results of operations and financial condition for the third quarter of 2024
99.2 Investor presentation of PCB Bancorp concerning the unaudited results for the third quarter of 2024
99.3 Press release of PCB Bancorp, issued October 24, 2024, announcing the declaration of a quarterly cash dividend
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PCB Bancorp | |||||||||||
| Date: | October 24, 2024 | /s/ Timothy Chang | |||||||||
| Timothy Chang | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
3
Exhibit 99.1
PCB Bancorp Reports Earnings for Q3 2024
Los Angeles, California - October 24, 2024 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $7.5 million, or $0.52 per diluted common share, for the third quarter of 2024, compared with $6.1 million, or $0.43 per diluted common share, for the previous quarter and $7.0 million, or $0.49 per diluted common share, for the year-ago quarter.
Q3 2024 Highlights
•Net income available to common shareholders totaled $7.5 million, or $0.52 per diluted common share;
•Recorded a provision for credit losses of $50 thousand for the current quarter compared with $259 thousand for the previous quarter and $751 thousand for the year-ago quarter;
•Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.17% at September 30, 2024 compared with 1.17% at June 30, 2024, 1.19% at December 31, 2023 and 1.18% at September 30, 2023;
•Net interest income was $22.7 million for the current quarter compared with $21.7 million for the previous quarter and $22.4 million for the year-ago quarter. Net interest margin was 3.25% for the current quarter compared with 3.16% for the previous quarter and 3.57% for the year-ago quarter;
•Gain on sale of loans was $750 thousand for the current quarter compared with $763 thousand for the previous quarter and $689 thousand for the year-ago quarter;
•Total assets were $2.89 billion at September 30, 2024, an increase of $36.9 million, or 1.3%, from $2.85 billion at June 30, 2024, an increase of $100.3 million, or 3.6%, from $2.79 billion at December 31, 2023 and an increase of $321.9 million, or 12.5%, from $2.57 billion at September 30, 2023;
•Loans held-for-investment were $2.47 billion at September 30, 2024, an increase of $17.1 million, or 0.7%, from $2.45 billion at June 30, 2024, an increase of $142.7 million, or 6.1% from $2.32 billion at December 31, 2023, and an increase of $298.6 million, or 13.8%, from $2.17 billion at September 30, 2023; and
•Total deposits were $2.46 billion at September 30, 2024, an increase of $53.4 million, or 2.2%, from $2.41 billion at June 30, 2024, an increase of $108.1 million, or 4.6%, from $2.35 billion at December 31, 2023, and an increase of $267.6 million, or 12.2%, from $2.19 billion at September 30, 2023.
“PCB’s third quarter was another solid quarter for us, highlighted by a 21.6% increase in net income available to common shareholders to $7.5 million that was benefited from our solid year-over-year loan growth combined with our expanded net interest margin,” said Henry Kim, President and Chief Executive Officer. “Additionally, we continue to maintain strong credit metrics, solid ACL, and robust capital ratios.”
“During the third quarter, our loan balance increased 0.8% to $2.5 billion, deposits increased 2.2% to $2.5 billion, and we maintained our ACL to loan ratio at 1.17%, while reducing our non-performing assets and classified assets to total assets ratios to 0.24% and 0.32%, respectively.”
Mr. Kim added, “As we look ahead to the fourth quarter and next year, our strategic expansion of our footprint and branch network optimizations will provide us with continued strong balance sheet growth with solid financial results.”
1
Financial Highlights (Unaudited)
($ in thousands, except per share data) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 7,814 | $ | 6,281 | 24.4 | % | $ | 7,023 | 11.3 | % | $ | 18,780 | $ | 24,797 | (24.3) | % | ||||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 7,468 | $ | 6,139 | 21.6 | % | $ | 7,023 | 6.3 | % | $ | 18,292 | $ | 24,797 | (26.2) | % | ||||||||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.52 | $ | 0.43 | 20.9 | % | $ | 0.49 | 6.1 | % | $ | 1.27 | $ | 1.71 | (25.7) | % | ||||||||||||||||||||||||||||||||||
| Net interest income | $ | 22,719 | $ | 21,735 | 4.5 | % | $ | 22,449 | 1.2 | % | $ | 65,453 | $ | 66,580 | (1.7) | % | ||||||||||||||||||||||||||||||||||
| Provision (reversal) for credit losses | 50 | 259 | (80.7) | % | 751 | (93.3) | % | 1,399 | (1,830) | NM | ||||||||||||||||||||||||||||||||||||||||
| Noninterest income | 2,620 | 2,485 | 5.4 | % | 2,502 | 4.7 | % | 8,050 | 8,180 | (1.6) | % | |||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 14,602 | 15,175 | (3.8) | % | 14,207 | 2.8 | % | 46,129 | 41,588 | 10.9 | % | |||||||||||||||||||||||||||||||||||||||
Return on average assets (1) | 1.08 | % | 0.89 | % | 1.09 | % | 0.88 | % | 1.32 | % | ||||||||||||||||||||||||||||||||||||||||
Return on average shareholders’ equity (1) | 8.70 | % | 7.19 | % | 8.12 | % | 7.11 | % | 9.77 | % | ||||||||||||||||||||||||||||||||||||||||
Return on average tangible common equity (“TCE”) (1),(2) | 10.31 | % | 8.75 | % | 10.17 | % | 8.61 | % | 12.27 | % | ||||||||||||||||||||||||||||||||||||||||
Net interest margin (1) | 3.25 | % | 3.16 | % | 3.57 | % | 3.17 | % | 3.63 | % | ||||||||||||||||||||||||||||||||||||||||
Efficiency ratio (3) | 57.63 | % | 62.65 | % | 56.94 | % | 62.76 | % | 55.63 | % | ||||||||||||||||||||||||||||||||||||||||
| ($ in thousands, except per share data) | 9/30/2024 | 6/30/2024 | % Change | 12/31/2023 | % Change | 9/30/2023 | % Change | |||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,889,833 | $ | 2,852,964 | 1.3 | % | $ | 2,789,506 | 3.6 | % | $ | 2,567,974 | 12.5 | % | ||||||||||||||||||||||||||||||
Net loans held-for-investment | 2,437,244 | 2,420,327 | 0.7 | % | 2,295,919 | 6.2 | % | 2,142,006 | 13.8 | % | ||||||||||||||||||||||||||||||||||
Total deposits | 2,459,682 | 2,406,254 | 2.2 | % | 2,351,612 | 4.6 | % | 2,192,129 | 12.2 | % | ||||||||||||||||||||||||||||||||||
Book value per common share (4) | $ | 25.39 | $ | 24.80 | $ | 24.46 | $ | 23.87 | ||||||||||||||||||||||||||||||||||||
TCE per common share (2) | $ | 20.55 | $ | 19.95 | $ | 19.62 | $ | 19.05 | ||||||||||||||||||||||||||||||||||||
Tier 1 leverage ratio (consolidated) | 12.79 | % | 12.66 | % | 13.43 | % | 13.76 | % | ||||||||||||||||||||||||||||||||||||
| Total shareholders’ equity to total assets | 12.54 | % | 12.39 | % | 12.51 | % | 13.31 | % | ||||||||||||||||||||||||||||||||||||
TCE to total assets (2), (5) | 10.14 | % | 9.97 | % | 10.03 | % | 10.62 | % | ||||||||||||||||||||||||||||||||||||
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
(3)Calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
(4)Calculated by dividing total shareholders’ equity by the number of outstanding common shares.
(5)The Company did not have any intangible asset component for the presented periods.
2
Result of Operations (Unaudited)
Net Interest Income and Net Interest Margin
The following table presents the components of net interest income for the periods indicated:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | ||||||||||||||||||||||||||||||||||||||||||
| Interest income/expense on | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 42,115 | $ | 40,626 | 3.7 | % | $ | 34,651 | 21.5 | % | $ | 121,992 | $ | 98,840 | 23.4 | % | ||||||||||||||||||||||||||||||||||
Investment securities | 1,384 | 1,310 | 5.6 | % | 1,170 | 18.3 | % | 3,940 | 3,408 | 15.6 | % | |||||||||||||||||||||||||||||||||||||||
Other interest-earning assets | 2,499 | 3,009 | (16.9) | % | 3,031 | (17.6) | % | 8,566 | 7,978 | 7.4 | % | |||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 45,998 | 44,945 | 2.3 | % | 38,852 | 18.4 | % | 134,498 | 110,226 | 22.0 | % | |||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 23,057 | 22,536 | 2.3 | % | 16,403 | 40.6 | % | 67,560 | 43,437 | 55.5 | % | |||||||||||||||||||||||||||||||||||||||
Borrowings | 222 | 674 | (67.1) | % | — | NM | 1,485 | 209 | 610.5 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 23,279 | 23,210 | 0.3 | % | 16,403 | 41.9 | % | 69,045 | 43,646 | 58.2 | % | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 22,719 | $ | 21,735 | 4.5 | % | $ | 22,449 | 1.2 | % | $ | 65,453 | $ | 66,580 | (1.7) | % | ||||||||||||||||||||||||||||||||||
| Average balance of | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 2,456,015 | $ | 2,414,824 | 1.7 | % | $ | 2,137,184 | 14.9 | % | $ | 2,413,777 | $ | 2,102,600 | 14.8 | % | ||||||||||||||||||||||||||||||||||
Investment securities | 147,528 | 141,816 | 4.0 | % | 138,993 | 6.1 | % | 143,283 | 141,057 | 1.6 | % | |||||||||||||||||||||||||||||||||||||||
Other interest-earning assets | 175,711 | 213,428 | (17.7) | % | 219,115 | (19.8) | % | 201,951 | 206,720 | (2.3) | % | |||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 2,779,254 | $ | 2,770,068 | 0.3 | % | $ | 2,495,292 | 11.4 | % | $ | 2,759,011 | $ | 2,450,377 | 12.6 | % | ||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 1,893,006 | $ | 1,863,623 | 1.6 | % | $ | 1,561,582 | 21.2 | % | $ | 1,861,395 | $ | 1,500,523 | 24.0 | % | ||||||||||||||||||||||||||||||||||
Borrowings | 15,848 | 48,462 | (67.3) | % | — | NM | 35,427 | 5,212 | 579.7 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 1,908,854 | $ | 1,912,085 | (0.2) | % | $ | 1,561,582 | 22.2 | % | $ | 1,896,822 | $ | 1,505,735 | 26.0 | % | ||||||||||||||||||||||||||||||||||
Total funding (1) | $ | 2,443,615 | $ | 2,447,593 | (0.2) | % | $ | 2,188,320 | 11.7 | % | $ | 2,434,504 | $ | 2,152,993 | 13.1 | % | ||||||||||||||||||||||||||||||||||
| Annualized average yield/cost of | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | 6.82 | % | 6.77 | % | 6.43 | % | 6.75 | % | 6.29 | % | ||||||||||||||||||||||||||||||||||||||||
Investment securities | 3.73 | % | 3.72 | % | 3.34 | % | 3.67 | % | 3.23 | % | ||||||||||||||||||||||||||||||||||||||||
Other interest-earning assets | 5.66 | % | 5.67 | % | 5.49 | % | 5.67 | % | 5.16 | % | ||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 6.58 | % | 6.53 | % | 6.18 | % | 6.51 | % | 6.01 | % | ||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 4.85 | % | 4.86 | % | 4.17 | % | 4.85 | % | 3.87 | % | ||||||||||||||||||||||||||||||||||||||||
Borrowings | 5.57 | % | 5.59 | % | — | % | 5.60 | % | 5.36 | % | ||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 4.85 | % | 4.88 | % | 4.17 | % | 4.86 | % | 3.88 | % | ||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 3.25 | % | 3.16 | % | 3.57 | % | 3.17 | % | 3.63 | % | ||||||||||||||||||||||||||||||||||||||||
Cost of total funding (1) | 3.79 | % | 3.81 | % | 2.97 | % | 3.79 | % | 2.71 | % | ||||||||||||||||||||||||||||||||||||||||
Supplementary information | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net accretion of discount on loans | $ | 773 | $ | 791 | (2.3) | % | $ | 775 | (0.3) | % | $ | 2,137 | $ | 2,197 | (2.7) | % | ||||||||||||||||||||||||||||||||||
| Net amortization of deferred loan fees | $ | 246 | $ | 339 | (27.4) | % | $ | 226 | 8.8 | % | $ | 919 | $ | 648 | 41.8 | % | ||||||||||||||||||||||||||||||||||
(1)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
3
Loans. The increase in average yield for the current quarter was primarily due to a higher average loan rate throughout the current quarter, partially offset by a decrease in net amortization of deferred loan fees. The increase for the current year-to-date period was primarily due to increases in overall interest rates on loans and net amortization of deferred loan fees.
The following table presents a composition of total loans by interest rate type accompanied with the weighted-average contractual rates as of the dates indicated:
| 9/30/2024 | 6/30/2024 | 12/31/2023 | 9/30/2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| % to Total Loans | Weighted-Average Contractual Rate | % to Total Loans | Weighted-Average Contractual Rate | % to Total Loans | Weighted-Average Contractual Rate | % to Total Loans | Weighted-Average Contractual Rate | |||||||||||||||||||||||||||||||||||||||||||
Fixed rate loans | 18.3 | % | 5.06 | % | 18.8 | % | 5.04 | % | 21.2 | % | 4.86 | % | 22.4 | % | 4.75 | % | ||||||||||||||||||||||||||||||||||
Hybrid rate loans | 37.6 | % | 5.14 | % | 37.2 | % | 5.04 | % | 39.0 | % | 4.93 | % | 38.8 | % | 4.71 | % | ||||||||||||||||||||||||||||||||||
Variable rate loans | 44.1 | % | 8.10 | % | 44.0 | % | 8.45 | % | 39.8 | % | 8.51 | % | 38.8 | % | 8.52 | % | ||||||||||||||||||||||||||||||||||
On September 18, 2024, the Federal Open Market Committee decreased the Fed Funds rate by 50 bps and this change resulted in an overall decrease in weighted-average contractual rates on variable rate loans in September 2024.
Investment Securities. The increases in average yield for the current quarter and year-to-date periods were primarily due to higher yield on newly purchased investment securities.
Other Interest-Earning Assets. The increases in average yield for the current quarter and year-to-date period compared with the same periods of 2023 were primarily due to increases in interest rate on cash held at the Federal Reserve Bank and dividends received on Federal Home Loan Bank stock.
Interest-Bearing Deposits. The increases in average cost for the current quarter and year-to-date period compared with the same periods of 2023 were primarily due to an increase in market rates.
Provision (Reversal) for Credit Losses
The following table presents a composition of provision (reversal) for credit losses for the periods indicated:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | ||||||||||||||||||||||||||||||||||||||||||
| Provision (reversal) for credit losses on loans | $ | 193 | $ | 329 | (41.3) | % | $ | 822 | (76.5) | % | $ | 1,444 | $ | (1,438) | NM | |||||||||||||||||||||||||||||||||||
| Provision (reversal) for credit losses on off-balance sheet credit exposure | (143) | (70) | 104.3 | % | (71) | 101.4 | % | (45) | (392) | (88.5) | % | |||||||||||||||||||||||||||||||||||||||
| Total provision (reversal) for credit losses | $ | 50 | $ | 259 | (80.7) | % | $ | 751 | (93.3) | % | $ | 1,399 | $ | (1,830) | NM | |||||||||||||||||||||||||||||||||||
The provision for credit losses on loans for the current quarter was primarily due to an increase in loans held-for-investment.
4
Noninterest Income
The following table presents the components of noninterest income for the periods indicated:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | ||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | $ | 750 | $ | 763 | (1.7) | % | $ | 689 | 8.9 | % | $ | 2,591 | $ | 2,767 | (6.4) | % | ||||||||||||||||||||||||||||||||||
Service charges and fees on deposits | 399 | 364 | 9.6 | % | 371 | 7.5 | % | 1,141 | 1,084 | 5.3 | % | |||||||||||||||||||||||||||||||||||||||
Loan servicing income | 786 | 799 | (1.6) | % | 851 | (7.6) | % | 2,504 | 2,579 | (2.9) | % | |||||||||||||||||||||||||||||||||||||||
| Bank-owned life insurance income | 239 | 236 | 1.3 | % | 187 | 27.8 | % | 703 | 551 | 27.6 | % | |||||||||||||||||||||||||||||||||||||||
Other income | 446 | 323 | 38.1 | % | 404 | 10.4 | % | 1,111 | 1,199 | (7.3) | % | |||||||||||||||||||||||||||||||||||||||
Total noninterest income | $ | 2,620 | $ | 2,485 | 5.4 | % | $ | 2,502 | 4.7 | % | $ | 8,050 | $ | 8,180 | (1.6) | % | ||||||||||||||||||||||||||||||||||
Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | ||||||||||||||||||||||||||||||||||||||||||
Gain on sale of SBA loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sold loan balance | $ | 13,506 | $ | 13,619 | (0.8) | % | $ | 17,697 | (23.7) | % | $ | 46,539 | $ | 61,592 | (24.4) | % | ||||||||||||||||||||||||||||||||||
Premium received | 1,185 | 1,056 | 12.2 | % | 1,112 | 6.6 | % | 3,837 | 4,362 | (12.0) | % | |||||||||||||||||||||||||||||||||||||||
Gain recognized | 750 | 763 | (1.7) | % | 689 | 8.9 | % | 2,591 | 2,767 | (6.4) | % | |||||||||||||||||||||||||||||||||||||||
Gain on sale of residential mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sold loan balance | $ | 676 | $ | — | NM | $ | — | NM | $ | 676 | $ | — | NM | |||||||||||||||||||||||||||||||||||||
Gain recognized | — | — | — | % | — | — | % | — | — | — | % | |||||||||||||||||||||||||||||||||||||||
Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | ||||||||||||||||||||||||||||||||||||||||||
| Loan servicing income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing income received | $ | 1,264 | $ | 1,318 | (4.1) | % | $ | 1,321 | (4.3) | % | $ | 3,875 | $ | 3,922 | (1.2) | % | ||||||||||||||||||||||||||||||||||
Servicing assets amortization | (478) | (519) | (7.9) | % | (470) | 1.7 | % | (1,371) | (1,343) | 2.1 | % | |||||||||||||||||||||||||||||||||||||||
| Loan servicing income | $ | 786 | $ | 799 | (1.6) | % | $ | 851 | (7.6) | % | $ | 2,504 | $ | 2,579 | (2.9) | % | ||||||||||||||||||||||||||||||||||
Underlying loans at end of period | $ | 527,062 | $ | 527,458 | (0.1) | % | $ | 536,424 | (1.7) | % | $ | 527,062 | $ | 536,424 | (1.7) | % | ||||||||||||||||||||||||||||||||||
The Company services SBA loans and certain residential property loans sold to the secondary market.
5
Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | ||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 8,801 | $ | 9,225 | (4.6) | % | $ | 8,572 | 2.7 | % | $ | 27,244 | $ | 26,175 | 4.1 | % | ||||||||||||||||||||||||||||||||||
Occupancy and equipment | 2,261 | 2,300 | (1.7) | % | 1,964 | 15.1 | % | 6,919 | 5,779 | 19.7 | % | |||||||||||||||||||||||||||||||||||||||
Professional fees | 599 | 973 | (38.4) | % | 685 | (12.6) | % | 2,656 | 2,189 | 21.3 | % | |||||||||||||||||||||||||||||||||||||||
Marketing and business promotion | 667 | 318 | 109.7 | % | 980 | (31.9) | % | 1,304 | 1,555 | (16.1) | % | |||||||||||||||||||||||||||||||||||||||
Data processing | 397 | 495 | (19.8) | % | 367 | 8.2 | % | 1,294 | 1,159 | 11.6 | % | |||||||||||||||||||||||||||||||||||||||
Director fees and expenses | 226 | 221 | 2.3 | % | 152 | 48.7 | % | 679 | 549 | 23.7 | % | |||||||||||||||||||||||||||||||||||||||
Regulatory assessments | 309 | 327 | (5.5) | % | 281 | 10.0 | % | 934 | 818 | 14.2 | % | |||||||||||||||||||||||||||||||||||||||
| Other expense | 1,342 | 1,316 | 2.0 | % | 1,206 | 11.3 | % | 5,099 | 3,364 | 51.6 | % | |||||||||||||||||||||||||||||||||||||||
Total noninterest expense | $ | 14,602 | $ | 15,175 | (3.8) | % | $ | 14,207 | 2.8 | % | $ | 46,129 | $ | 41,588 | 10.9 | % | ||||||||||||||||||||||||||||||||||
Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to decreases in bonus and vacation accruals. The increase for the current year-to-date period was primarily due to increases in salaries, bonus accrual, incentives tied to sales of SBA loans originated at loan production offices, and other employee benefits, partially offset by a decrease in vacation accrual. The number of full-time equivalent employees was 264, 265 and 270 as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
Occupancy and Equipment. The increases for the current quarter and year-to-date period compared with the same periods of 2023 were primarily due to an expansion of headquarters location in the second half of 2023 and a relocation of a regional office and two branches into one location in Orange County, California.
Professional Fees. During the first half of 2024, the Company incurred additional professional fees related to a core system conversion, which was completed in April 2024.
Marketing and Business Promotion. The increase for the current quarter compared with the previous quarter was primarily due
to an increase in advertisements. The decrease for the current quarter and year-to-date period compared with the same periods of 2023 was primarily due to an increase in advertisements in 2023 periods for the Company’s 20th anniversary celebration.
Other Expense. The increase for the year-to-date period was primarily due to a termination charge for the legacy core system of $508 thousand and an expense of $815 thousand for a reimbursement for an SBA loan guarantee previously paid by the SBA on a loan originated in 2014 that subsequently defaulted and was ultimately determined to be ineligible for the SBA guaranty during the previous quarter. The Company has retained a law firm specializing in SBA recovery demands to seek that SBA reconsider the evidence and allow the Company to recoup all or part of the reimbursement.
6
Balance Sheet (Unaudited)
Total assets were $2.89 billion at September 30, 2024, an increase of $36.9 million, or 1.3%, from $2.85 billion at June 30, 2024, an increase of $100.3 million, or 3.6%, from $2.79 billion at December 31, 2023, and an increase of $321.9 million, or 12.5%, from $2.57 billion at September 30, 2023. The increases for the current quarter and year-to-date period were primarily due to increases in loans held-for-investment and other assets. During the current quarter, the Company invested $5.0 million in a qualified affordable housing project for lower income tenants in California. The recorded investment amount of the investment is included in Other Assets on the Consolidated Balance Sheets (unaudited).
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 12/31/2023 | % Change | 9/30/2023 | % Change | |||||||||||||||||||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial property | $ | 874,824 | $ | 852,677 | 2.6 | % | $ | 855,270 | 2.3 | % | $ | 814,547 | 7.4 | % | ||||||||||||||||||||||||||||||
| Business property | 579,461 | 572,643 | 1.2 | % | 558,772 | 3.7 | % | 537,351 | 7.8 | % | ||||||||||||||||||||||||||||||||||
| Multifamily | 185,485 | 177,657 | 4.4 | % | 132,500 | 40.0 | % | 132,558 | 39.9 | % | ||||||||||||||||||||||||||||||||||
| Construction | 21,150 | 28,316 | (25.3) | % | 24,843 | (14.9) | % | 19,246 | 9.9 | % | ||||||||||||||||||||||||||||||||||
| Total commercial real estate | 1,660,920 | 1,631,293 | 1.8 | % | 1,571,385 | 5.7 | % | 1,503,702 | 10.5 | % | ||||||||||||||||||||||||||||||||||
| Commercial and industrial | 407,024 | 417,333 | (2.5) | % | 342,002 | 19.0 | % | 279,608 | 45.6 | % | ||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 383,377 | 384,905 | (0.4) | % | 389,420 | (1.6) | % | 363,369 | 5.5 | % | ||||||||||||||||||||||||||||||||||
| Other consumer | 14,853 | 15,543 | (4.4) | % | 20,645 | (28.1) | % | 20,926 | (29.0) | % | ||||||||||||||||||||||||||||||||||
| Total consumer | 398,230 | 400,448 | (0.6) | % | 410,065 | (2.9) | % | 384,295 | 3.6 | % | ||||||||||||||||||||||||||||||||||
| Loans held-for-investment | 2,466,174 | 2,449,074 | 0.7 | % | 2,323,452 | 6.1 | % | 2,167,605 | 13.8 | % | ||||||||||||||||||||||||||||||||||
| Loans held-for-sale | 5,170 | 2,959 | 74.7 | % | 5,155 | 0.3 | % | 6,693 | (22.8) | % | ||||||||||||||||||||||||||||||||||
Total loans | $ | 2,471,344 | $ | 2,452,033 | 0.8 | % | $ | 2,328,607 | 6.1 | % | $ | 2,174,298 | 13.7 | % | ||||||||||||||||||||||||||||||
| SBA loans included in: | ||||||||||||||||||||||||||||||||||||||||||||
| Loans held-for-investment | $ | 142,819 | $ | 144,440 | (1.1) | % | $ | 145,603 | (1.9) | % | $ | 129,866 | 10.0 | % | ||||||||||||||||||||||||||||||
| Loans held-for-sale | $ | 5,170 | $ | 2,959 | 74.7 | % | $ | 5,155 | 0.3 | % | $ | 16,272 | (68.2) | % | ||||||||||||||||||||||||||||||
The increase in loans held-for-investment for the current quarter was primarily due to new funding and advances on lines of credit of $764.7 million, partially offset by pay-downs and pay-offs of $746.8 million. The increase for the current year-to-date period was primarily due to new funding and advances on lines of credit of $1.83 billion, partially offset by pay-downs and pay-offs of $1.69 billion.
The increase in loans held-for-sale for the current quarter was primarily due to new funding of $15.9 million and a loan transferred from loan held-for-investment of $676 thousand, partially offset by sales of $14.2 million, and pay-downs and pay-offs of $174 thousand. The increase for the current year-to-date period was primarily due to new funding of $48.3 million and a loan transferred from loan held-for-investment of $676 thousand, partially offset by sales of $47.2 million, and pay-downs and pay-offs of $1.8 million.
The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 12/31/2023 | % Change | 9/30/2023 | % Change | |||||||||||||||||||||||||||||||||||||
| Commercial property | $ | 3,291 | $ | 6,309 | (47.8) | % | $ | 11,634 | (71.7) | % | $ | 9,827 | (66.5) | % | ||||||||||||||||||||||||||||||
| Business property | 12,441 | 11,607 | 7.2 | % | 9,899 | 25.7 | % | 8,388 | 48.3 | % | ||||||||||||||||||||||||||||||||||
| Multifamily | — | 1,800 | (100.0) | % | 1,800 | (100.0) | % | 1,800 | (100.0) | % | ||||||||||||||||||||||||||||||||||
| Construction | 17,810 | 22,030 | (19.2) | % | 23,739 | (25.0) | % | 29,293 | (39.2) | % | ||||||||||||||||||||||||||||||||||
| Commercial and industrial | 394,428 | 336,121 | 17.3 | % | 351,025 | 12.4 | % | 283,119 | 39.3 | % | ||||||||||||||||||||||||||||||||||
| Other consumer | 5,590 | 5,192 | 7.7 | % | 3,421 | 63.4 | % | 271 | 1,962.7 | % | ||||||||||||||||||||||||||||||||||
| Total commitments to extend credit | 433,560 | 383,059 | 13.2 | % | 401,518 | 8.0 | % | 332,698 | 30.3 | % | ||||||||||||||||||||||||||||||||||
| Letters of credit | 6,673 | 6,808 | (2.0) | % | 6,583 | 1.4 | % | 6,083 | 9.7 | % | ||||||||||||||||||||||||||||||||||
| Total off-balance sheet credit exposure | $ | 440,233 | $ | 389,867 | 12.9 | % | $ | 408,101 | 7.9 | % | $ | 338,781 | 29.9 | % | ||||||||||||||||||||||||||||||
7
Credit Quality
The following table presents a summary of non-performing loans and assets, and classified assets as of the dates indicated:
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 12/31/2023 | % Change | 9/30/2023 | % Change | |||||||||||||||||||||||||||||||||||||
| Nonaccrual loans | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial property | $ | 1,633 | $ | 1,804 | (9.5) | % | $ | 958 | 70.5 | % | $ | 686 | 138.0 | % | ||||||||||||||||||||||||||||||
| Business property | 2,367 | 2,440 | (3.0) | % | 2,865 | (17.4) | % | 2,964 | (20.1) | % | ||||||||||||||||||||||||||||||||||
| Multifamily | 2,038 | 2,038 | — | % | — | NM | — | NM | ||||||||||||||||||||||||||||||||||||
| Total commercial real estate | 6,038 | 6,282 | (3.9) | % | 3,823 | 57.9 | % | 3,650 | 65.4 | % | ||||||||||||||||||||||||||||||||||
| Commercial and industrial | 124 | 112 | 10.7 | % | 68 | 82.4 | % | 72 | 72.2 | % | ||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 414 | 1,100 | (62.4) | % | — | NM | — | NM | ||||||||||||||||||||||||||||||||||||
| Other consumer | 38 | 6 | 533.3 | % | 25 | 52.0 | % | 8 | 375.0 | % | ||||||||||||||||||||||||||||||||||
| Total consumer | 452 | 1,106 | (59.1) | % | 25 | 1,708.0 | % | 8 | 5,550.0 | % | ||||||||||||||||||||||||||||||||||
Total nonaccrual loans held-for-investment | 6,614 | 7,500 | (11.8) | % | 3,916 | 68.9 | % | 3,730 | 77.3 | % | ||||||||||||||||||||||||||||||||||
Loans past due 90 days or more and still accruing | — | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||
| Non-performing loans (“NPLs”) | 6,614 | 7,500 | (11.8) | % | 3,916 | 68.9 | % | 3,730 | 77.3 | % | ||||||||||||||||||||||||||||||||||
| NPLs held-for-sale | — | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||
| Total NPLs | 6,614 | 7,500 | (11.8) | % | 3,916 | 68.9 | % | 3,730 | 77.3 | % | ||||||||||||||||||||||||||||||||||
Other real estate owned (“OREO”) | 466 | — | NM | 2,558 | (81.8) | % | — | NM | ||||||||||||||||||||||||||||||||||||
Non-performing assets (“NPAs”) | $ | 7,080 | $ | 7,500 | (5.6) | % | $ | 6,474 | 9.4 | % | $ | 3,730 | 89.8 | % | ||||||||||||||||||||||||||||||
| Loans past due and still accruing | ||||||||||||||||||||||||||||||||||||||||||||
Past due 30 to 59 days | $ | 2,973 | $ | 2,245 | 32.4 | % | $ | 1,394 | 113.3 | % | $ | 654 | 354.6 | % | ||||||||||||||||||||||||||||||
Past due 60 to 89 days | 21 | 41 | (48.8) | % | 34 | (38.2) | % | 54 | (61.1) | % | ||||||||||||||||||||||||||||||||||
Past due 90 days or more | — | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||
Total loans past due and still accruing | $ | 2,994 | $ | 2,286 | 31.0 | % | 1,428 | 109.7 | % | $ | 708 | 322.9 | % | |||||||||||||||||||||||||||||||
| Special mention loans | $ | 5,057 | $ | 5,080 | (0.5) | % | $ | 5,156 | (1.9) | % | $ | 5,281 | (4.2) | % | ||||||||||||||||||||||||||||||
Classified assets | ||||||||||||||||||||||||||||||||||||||||||||
| Classified loans held-for-investment | $ | 8,860 | $ | 9,752 | (9.1) | % | $ | 7,000 | 26.6 | % | $ | 6,742 | 31.4 | % | ||||||||||||||||||||||||||||||
| Classified loans held-for-sale | — | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||
OREO | 466 | — | NM | 2,558 | (81.8) | % | — | NM | ||||||||||||||||||||||||||||||||||||
Classified assets | $ | 9,326 | $ | 9,752 | (4.4) | % | $ | 9,558 | (2.4) | % | $ | 6,742 | 38.3 | % | ||||||||||||||||||||||||||||||
| NPLs to loans held-for-investment | 0.27 | % | 0.31 | % | 0.17 | % | 0.17 | % | ||||||||||||||||||||||||||||||||||||
NPAs to total assets | 0.24 | % | 0.26 | % | 0.23 | % | 0.15 | % | ||||||||||||||||||||||||||||||||||||
Classified assets to total assets | 0.32 | % | 0.34 | % | 0.34 | % | 0.26 | % | ||||||||||||||||||||||||||||||||||||
8
Allowance for Credit Losses
The following table presents activities in ACL for the periods indicated:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | ||||||||||||||||||||||||||||||||||||||||||
| ACL on loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 28,747 | $ | 28,332 | 1.5 | % | $ | 24,867 | 15.6 | % | $ | 27,533 | $ | 24,942 | 10.4 | % | ||||||||||||||||||||||||||||||||||
| Impact of ASC 326 adoption | — | — | NM | — | NM | — | 1,067 | NM | ||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | (111) | — | — | % | (112) | (0.9) | % | (296) | (119) | 148.7 | % | |||||||||||||||||||||||||||||||||||||||
| Recoveries | 101 | 86 | 17.4 | % | 22 | 359.1 | % | 249 | 1,147 | (78.3) | % | |||||||||||||||||||||||||||||||||||||||
| Provision (reversal) for credit losses on loans | 193 | 329 | (41.3) | % | 822 | (76.5) | % | 1,444 | (1,438) | (200.4) | % | |||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | 28,930 | $ | 28,747 | 0.6 | % | $ | 25,599 | 13.0 | % | $ | 28,930 | $ | 25,599 | 13.0 | % | ||||||||||||||||||||||||||||||||||
| Percentage to loans held-for-investment at end of period | 1.17 | % | 1.17 | % | 1.18 | % | 1.17 | % | 1.18 | % | ||||||||||||||||||||||||||||||||||||||||
| ACL on off-balance sheet credit exposure | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 1,375 | $ | 1,445 | (4.8) | % | $ | 1,585 | (13.2) | % | $ | 1,277 | $ | 299 | 327.1 | % | ||||||||||||||||||||||||||||||||||
| Impact of ASC 326 adoption | — | — | NM | — | NM | — | 1,607 | NM | ||||||||||||||||||||||||||||||||||||||||||
| Provision (reversal) for credit losses on off-balance sheet credit exposure | (143) | (70) | 104.3 | % | (71) | 101.4 | % | (45) | (392) | (88.5) | % | |||||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | 1,232 | $ | 1,375 | (10.4) | % | $ | 1,514 | (18.6) | % | $ | 1,232 | $ | 1,514 | (18.6) | % | ||||||||||||||||||||||||||||||||||
On January 1, 2023, the Company adopted the provisions of ASC 326 through the application of the modified retrospective transition approach. The initial adjustment to the ACL reflected the expected lifetime credit losses associated with the composition of financial assets within the scope of ASC 326 as of January 1, 2023, as well as management’s current expectation of future economic conditions. The Company recorded a net decrease of $1.9 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment, reflecting an initial adjustment to the ACL on loans of $1.1 million and the ACL on off-balance sheet credit exposures of $1.6 million, net of related deferred tax assets arising from temporary differences of $788 thousand.
Investment Securities
Total investment securities were $147.6 million at September 30, 2024, a decrease of $374 thousand, or 0.3%, from $148.0 million at June 30, 2024, but an increase of $4.3 million, 3.0%, from $143.3 million at December 31, 2023 and an increase of $8.4 million, or 6.0%, from $139.2 million at September 30, 2023. The decrease for the current quarter was primarily due to principal pay-downs of $5.6 million and net premium amortization of $41 thousand, partially offset by a fair value increase of $5.3 million. The increase for the current year-to-date period was primarily due to purchases of $14.8 million and a fair value increase of $3.5 million, partially offset by principal pay-downs of $13.9 million and net premium amortization of $123 thousand.
9
Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
| 9/30/2024 | 6/30/2024 | 12/31/2023 | 9/30/2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | Amount | % to Total | Amount | % to Total | Amount | % to Total | Amount | % to Total | ||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 540,068 | 22.0 | % | $ | 543,538 | 22.6 | % | $ | 594,673 | 25.3 | % | $ | 611,021 | 27.9 | % | ||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | 5,718 | 0.2 | % | 7,821 | 0.3 | % | 6,846 | 0.3 | % | 6,846 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||
NOW | 15,873 | 0.6 | % | 18,346 | 0.8 | % | 16,825 | 0.7 | % | 16,076 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||
Retail money market accounts | 470,347 | 19.1 | % | 457,760 | 18.9 | % | 397,531 | 16.8 | % | 436,115 | 19.8 | % | ||||||||||||||||||||||||||||||||||||||
Brokered money market accounts | 1 | 0.1 | % | 1 | 0.1 | % | 1 | 0.1 | % | 1 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||
| Retail time deposits of | ||||||||||||||||||||||||||||||||||||||||||||||||||
$250,000 or less | 492,430 | 20.0 | % | 475,923 | 19.8 | % | 456,293 | 19.4 | % | 406,407 | 18.5 | % | ||||||||||||||||||||||||||||||||||||||
More than $250,000 | 580,166 | 23.6 | % | 559,832 | 23.2 | % | 515,702 | 21.9 | % | 454,406 | 20.8 | % | ||||||||||||||||||||||||||||||||||||||
State and brokered time deposits | 355,079 | 14.4 | % | 343,033 | 14.3 | % | 363,741 | 15.5 | % | 261,257 | 11.9 | % | ||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,919,614 | 78.0 | % | 1,862,716 | 77.4 | % | 1,756,939 | 74.7 | % | 1,581,108 | 72.1 | % | ||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 2,459,682 | 100.0 | % | $ | 2,406,254 | 100.0 | % | $ | 2,351,612 | 100.0 | % | $ | 2,192,129 | 100.0 | % | ||||||||||||||||||||||||||||||||||
| Estimated total deposits not covered by deposit insurance | $ | 1,042,366 | 42.4 | % | $ | 1,020,963 | 42.4 | % | $ | 954,591 | 40.6 | % | $ | 983,851 | 44.9 | % | ||||||||||||||||||||||||||||||||||
Total retail deposits were $2.10 billion at September 30, 2024, an increase of $41.4 million, or 2.0%, from $2.06 billion at June 30, 2024, an increase of $116.7 million, or 5.9%, from $1.99 billion at December 31, 2023, and an increase of $173.7 million, or 9.0%, from $1.93 billion at September 30, 2023.
The increase in retail time deposits for the current quarter was primarily due to new accounts of $76.6 million, renewals of the matured accounts of $117.9 million and balance increases of $9.5 million, partially offset by matured and closed accounts of $167.1 million. The increase for the current year-to-date period was primarily due to new accounts of $272.7 million, renewals of the matured accounts of $560.4 million and balance increases of $28.4 million, partially offset by matured and closed accounts of $760.8 million.
Liquidity
The following table presents a summary of the Company’s liquidity position as of the dates indicated:
| ($ in thousands) | 9/30/2024 | 12/31/2023 | % Change | |||||||||||||||||
Cash and cash equivalents | $ | 193,064 | $ | 242,342 | (20.3) | % | ||||||||||||||
Cash and cash equivalents to total assets | 6.7 | % | 8.7 | % | ||||||||||||||||
| Available borrowing capacity | ||||||||||||||||||||
FHLB advances | $ | 702,986 | $ | 602,976 | 16.6 | % | ||||||||||||||
Federal Reserve Discount Window | 578,713 | 528,893 | 9.4 | % | ||||||||||||||||
Overnight federal funds lines | 65,000 | 65,000 | — | % | ||||||||||||||||
Total | $ | 1,346,699 | $ | 1,196,869 | 12.5 | % | ||||||||||||||
Total available borrowing capacity to total assets | 46.6 | % | 42.9 | % | ||||||||||||||||
10
Shareholders’ Equity
Shareholders’ equity was $362.3 million at September 30, 2024, an increase of $8.8 million, or 2.5%, from $353.5 million at June 30, 2024, an increase of $13.4 million, or 3.8%, from $348.9 million at December 31, 2023, and an increase of $20.4 million, or 6.0%, from $341.9 million at September 30, 2023. The increase for the current quarter was primarily due to net income and a decrease in accumulated other comprehensive loss of $3.7 million, partially offset by cash dividends declared on common stock of $2.6 million and preferred stock dividends of $346 thousand. The increase for the current year-to-date period was primarily due to net income and a decrease in accumulated other comprehensive loss of $2.5 million, partially offset by cash dividends declared on common stock of $7.7 million, preferred stock dividends of $488 thousand, and repurchase of common stock of $222 thousand.
Stock Repurchases
In 2023, the Company repurchased and retired 512,657 shares of common stock at a weighted-average price of $17.22, totaling $8.8 million. During the current year-to-date period, the Company repurchased and retired 14,947 shares of common stock at a weighted-average price of $14.88, totaling $222 thousand. As of September 30, 2024, the Company is authorized to purchase 577,777 additional shares under its current stock repurchase program, which expires on August 2, 2025.
Series C Preferred Stock
On May 24, 2022, the Company issued 69,141 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference of $1,000 per share (“Series C Preferred Stock”) for the capital investment of $69.1 million from the U.S. Treasury under the Emergency Capital Investment Program (“ECIP”). The ECIP investment is treated as tier 1 capital for regulatory capital purposes.
The Series C Preferred Stock bore no dividend for the first 24 months following the investment date. Thereafter, the dividend rate will be determined quarterly based on the lending growth criteria listed in the terms of the ECIP investment with an annual dividend rate of up to 2%. After the tenth anniversary of the investment date, the dividend rate will be fixed based on the average annual amount of lending in years 2 through 10.
The Company began paying quarterly dividends on the Series C Preferred Stock at an annualized dividend rate of 2% in the second quarter of 2024. The dividends totaled $346 thousand and $488 thousand for the current quarter and year-to-date period, respectively.
Capital Ratios
Based on the Federal Reserve’s Small Bank Holding Company policy, the Company is not currently subject to consolidated minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will be subject to consolidated capital requirements independent of the Bank. For comparison purposes, the Company’s capital ratios are included in following table, which presents capital ratios for the Company and the Bank as of the dates indicated:
| 9/30/2024 | 6/30/2024 | 12/31/2023 | 9/30/2023 | Well Capitalized Minimum Requirements | ||||||||||||||||||||||||||||
PCB Bancorp | ||||||||||||||||||||||||||||||||
Common tier 1 capital (to risk-weighted assets) | 11.92 | % | 11.91 | % | 12.23 | % | 13.07 | % | N/A | |||||||||||||||||||||||
Total capital (to risk-weighted assets) | 15.88 | % | 15.94 | % | 16.39 | % | 17.48 | % | N/A | |||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 14.68 | % | 14.71 | % | 15.16 | % | 16.24 | % | N/A | |||||||||||||||||||||||
Tier 1 capital (to average assets) | 12.79 | % | 12.66 | % | 13.43 | % | 13.76 | % | N/A | |||||||||||||||||||||||
| PCB Bank | ||||||||||||||||||||||||||||||||
Common tier 1 capital (to risk-weighted assets) | 14.33 | % | 14.38 | % | 14.85 | % | 15.87 | % | 6.5 | % | ||||||||||||||||||||||
Total capital (to risk-weighted assets) | 15.54 | % | 15.60 | % | 16.07 | % | 17.11 | % | 10.0 | % | ||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 14.33 | % | 14.38 | % | 14.85 | % | 15.87 | % | 8.0 | % | ||||||||||||||||||||||
Tier 1 capital (to average assets) | 12.49 | % | 12.37 | % | 13.16 | % | 13.44 | % | 5.0 | % | ||||||||||||||||||||||
11
About PCB Bancorp
PCB Bancorp is the bank holding company for PCB Bank, a California state chartered bank, offering a full suite of commercial banking services to small to medium-sized businesses, individuals and professionals, primarily in Southern California, and predominantly in Korean-American and other minority communities.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to the health of the national and local economies including the impact to the Company and its customers resulting from changes to, and the level of, inflation and interest rates; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect the Company’s liquidity, financial performance and stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber security risks; the Company's ability to successfully deploy new technology; acquisitions and branch and loan production office expansions; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; costs related to litigation; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and other filings the Company makes with the SEC, which are available at the SEC’s Internet site (http://www.sec.gov) or from the Company without charge. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.
Contact:
Timothy Chang
Executive Vice President & Chief Financial Officer
213-210-2000
12
PCB Bancorp and Subsidiary
Consolidated Balance Sheets (Unaudited)
($ in thousands, except share and per share data)
| 9/30/2024 | 6/30/2024 | % Change | 12/31/2023 | % Change | 9/30/2023 | % Change | ||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 29,981 | $ | 23,247 | 29.0 | % | $ | 26,518 | 13.1 | % | $ | 22,691 | 32.1 | % | ||||||||||||||||||||||||||||||
| Interest-bearing deposits in other financial institutions | 163,083 | 154,383 | 5.6 | % | 215,824 | (24.4) | % | 169,659 | (3.9) | % | ||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | 193,064 | 177,630 | 8.7 | % | 242,342 | (20.3) | % | 192,350 | 0.4 | % | ||||||||||||||||||||||||||||||||||
Securities available-for-sale, at fair value | 147,635 | 148,009 | (0.3) | % | 143,323 | 3.0 | % | 139,218 | 6.0 | % | ||||||||||||||||||||||||||||||||||
Loans held-for-sale | 5,170 | 2,959 | 74.7 | % | 5,155 | 0.3 | % | 6,693 | (22.8) | % | ||||||||||||||||||||||||||||||||||
| Loans held-for-investment | 2,466,174 | 2,449,074 | 0.7 | % | 2,323,452 | 6.1 | % | 2,167,605 | 13.8 | % | ||||||||||||||||||||||||||||||||||
| Allowance for credit losses on loans | (28,930) | (28,747) | 0.6 | % | (27,533) | 5.1 | % | (25,599) | 13.0 | % | ||||||||||||||||||||||||||||||||||
Net loans held-for-investment | 2,437,244 | 2,420,327 | 0.7 | % | 2,295,919 | 6.2 | % | 2,142,006 | 13.8 | % | ||||||||||||||||||||||||||||||||||
Premises and equipment, net | 8,414 | 8,923 | (5.7) | % | 5,999 | 40.3 | % | 6,229 | 35.1 | % | ||||||||||||||||||||||||||||||||||
Federal Home Loan Bank and other bank stock | 14,042 | 14,042 | — | % | 12,716 | 10.4 | % | 12,716 | 10.4 | % | ||||||||||||||||||||||||||||||||||
Other real estate owned, net | 466 | — | NM | 2,558 | (81.8) | % | — | NM | ||||||||||||||||||||||||||||||||||||
| Bank-owned life insurance | 31,520 | 31,281 | 0.8 | % | 30,817 | 2.3 | % | 30,615 | 3.0 | % | ||||||||||||||||||||||||||||||||||
Deferred tax assets, net | — | — | — | % | — | — | % | 4,486 | (100.0) | % | ||||||||||||||||||||||||||||||||||
Servicing assets | 5,902 | 6,205 | (4.9) | % | 6,666 | (11.5) | % | 6,920 | (14.7) | % | ||||||||||||||||||||||||||||||||||
Operating lease assets | 17,932 | 17,609 | 1.8 | % | 18,913 | (5.2) | % | 5,626 | 218.7 | % | ||||||||||||||||||||||||||||||||||
Accrued interest receivable | 9,896 | 10,464 | (5.4) | % | 9,468 | 4.5 | % | 8,731 | 13.3 | % | ||||||||||||||||||||||||||||||||||
Other assets | 18,548 | 15,515 | 19.5 | % | 15,630 | 18.7 | % | 12,384 | 49.8 | % | ||||||||||||||||||||||||||||||||||
Total assets | $ | 2,889,833 | $ | 2,852,964 | 1.3 | % | $ | 2,789,506 | 3.6 | % | $ | 2,567,974 | 12.5 | % | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 540,068 | $ | 543,538 | (0.6) | % | $ | 594,673 | (9.2) | % | $ | 611,021 | (11.6) | % | ||||||||||||||||||||||||||||||
Savings, NOW and money market accounts | 491,939 | 483,928 | 1.7 | % | 421,203 | 16.8 | % | 459,038 | 7.2 | % | ||||||||||||||||||||||||||||||||||
Time deposits of $250,000 or less | 787,509 | 758,956 | 3.8 | % | 760,034 | 3.6 | % | 607,664 | 29.6 | % | ||||||||||||||||||||||||||||||||||
Time deposits of more than $250,000 | 640,166 | 619,832 | 3.3 | % | 575,702 | 11.2 | % | 514,406 | 24.4 | % | ||||||||||||||||||||||||||||||||||
Total deposits | 2,459,682 | 2,406,254 | 2.2 | % | 2,351,612 | 4.6 | % | 2,192,129 | 12.2 | % | ||||||||||||||||||||||||||||||||||
| Other short-term borrowings | — | 4,000 | (100.0) | % | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | — | 32,000 | (100.0) | % | 39,000 | (100.0) | % | — | — | % | ||||||||||||||||||||||||||||||||||
| Deferred tax liabilities, net | 1,168 | 577 | 102.4 | % | 876 | 33.3 | % | — | NM | |||||||||||||||||||||||||||||||||||
Operating lease liabilities | 19,301 | 18,939 | 1.9 | % | 20,137 | (4.2) | % | 5,852 | 229.8 | % | ||||||||||||||||||||||||||||||||||
Accrued interest payable and other liabilities | 47,382 | 37,725 | 25.6 | % | 29,009 | 63.3 | % | 28,141 | 68.4 | % | ||||||||||||||||||||||||||||||||||
Total liabilities | 2,527,533 | 2,499,495 | 1.1 | % | 2,440,634 | 3.6 | % | 2,226,122 | 13.5 | % | ||||||||||||||||||||||||||||||||||
Commitments and contingent liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock | 69,141 | 69,141 | — | % | 69,141 | — | % | 69,141 | — | % | ||||||||||||||||||||||||||||||||||
| Common stock | 142,926 | 142,698 | 0.2 | % | 142,563 | 0.3 | % | 143,401 | (0.3) | % | ||||||||||||||||||||||||||||||||||
Retained earnings | 156,680 | 151,781 | 3.2 | % | 146,092 | 7.2 | % | 142,750 | 9.8 | % | ||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive loss, net | (6,447) | (10,151) | (36.5) | % | (8,924) | (27.8) | % | (13,440) | (52.0) | % | ||||||||||||||||||||||||||||||||||
Total shareholders’ equity | 362,300 | 353,469 | 2.5 | % | 348,872 | 3.8 | % | 341,852 | 6.0 | % | ||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,889,833 | $ | 2,852,964 | 1.3 | % | $ | 2,789,506 | 3.6 | % | $ | 2,567,974 | 12.5 | % | ||||||||||||||||||||||||||||||
Outstanding common shares | 14,266,725 | 14,254,024 | 14,260,440 | 14,319,014 | ||||||||||||||||||||||||||||||||||||||||
Book value per common share (1) | $ | 25.39 | $ | 24.80 | $ | 24.46 | $ | 23.87 | ||||||||||||||||||||||||||||||||||||
TCE per common share (2) | $ | 20.55 | $ | 19.95 | $ | 19.62 | $ | 19.05 | ||||||||||||||||||||||||||||||||||||
Total loan to total deposit ratio | 100.47 | % | 101.90 | % | 99.02 | % | 99.19 | % | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits to total deposits | 21.96 | % | 22.59 | % | 25.29 | % | 27.87 | % | ||||||||||||||||||||||||||||||||||||
(1)The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company did not have any intangible equity components for the presented periods.
(2)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
13
PCB Bancorp and Subsidiary
Consolidated Statements of Income (Unaudited)
($ in thousands, except share and per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2024 | 6/30/2024 | % Change | 9/30/2023 | % Change | 9/30/2024 | 9/30/2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||
| Interest and dividend income | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, including fees | $ | 42,115 | $ | 40,626 | 3.7 | % | $ | 34,651 | 21.5 | % | $ | 121,992 | $ | 98,840 | 23.4 | % | ||||||||||||||||||||||||||||||||||
| Investment securities | 1,384 | 1,310 | 5.6 | % | 1,170 | 18.3 | % | 3,940 | 3,408 | 15.6 | % | |||||||||||||||||||||||||||||||||||||||
| Other interest-earning assets | 2,499 | 3,009 | (16.9) | % | 3,031 | (17.6) | % | 8,566 | 7,978 | 7.4 | % | |||||||||||||||||||||||||||||||||||||||
| Total interest income | 45,998 | 44,945 | 2.3 | % | 38,852 | 18.4 | % | 134,498 | 110,226 | 22.0 | % | |||||||||||||||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 23,057 | 22,536 | 2.3 | % | 16,403 | 40.6 | % | 67,560 | 43,437 | 55.5 | % | |||||||||||||||||||||||||||||||||||||||
| Other borrowings | 222 | 674 | (67.1) | % | — | NM | 1,485 | 209 | 610.5 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest expense | 23,279 | 23,210 | 0.3 | % | 16,403 | 41.9 | % | 69,045 | 43,646 | 58.2 | % | |||||||||||||||||||||||||||||||||||||||
Net interest income | 22,719 | 21,735 | 4.5 | % | 22,449 | 1.2 | % | 65,453 | 66,580 | (1.7) | % | |||||||||||||||||||||||||||||||||||||||
| Provision (reversal) for credit losses | 50 | 259 | (80.7) | % | 751 | (93.3) | % | 1,399 | (1,830) | NM | ||||||||||||||||||||||||||||||||||||||||
| Net interest income after provision (reversal) for credit losses | 22,669 | 21,476 | 5.6 | % | 21,698 | 4.5 | % | 64,054 | 68,410 | (6.4) | % | |||||||||||||||||||||||||||||||||||||||
| Noninterest income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | 750 | 763 | (1.7) | % | 689 | 8.9 | % | 2,591 | 2,767 | (6.4) | % | |||||||||||||||||||||||||||||||||||||||
Service charges and fees on deposits | 399 | 364 | 9.6 | % | 371 | 7.5 | % | 1,141 | 1,084 | 5.3 | % | |||||||||||||||||||||||||||||||||||||||
Loan servicing income | 786 | 799 | (1.6) | % | 851 | (7.6) | % | 2,504 | 2,579 | (2.9) | % | |||||||||||||||||||||||||||||||||||||||
| Bank-owned life insurance income | 239 | 236 | 1.3 | % | 187 | 27.8 | % | 703 | 551 | 27.6 | % | |||||||||||||||||||||||||||||||||||||||
Other income | 446 | 323 | 38.1 | % | 404 | 10.4 | % | 1,111 | 1,199 | (7.3) | % | |||||||||||||||||||||||||||||||||||||||
Total noninterest income | 2,620 | 2,485 | 5.4 | % | 2,502 | 4.7 | % | 8,050 | 8,180 | (1.6) | % | |||||||||||||||||||||||||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 8,801 | 9,225 | (4.6) | % | 8,572 | 2.7 | % | 27,244 | 26,175 | 4.1 | % | |||||||||||||||||||||||||||||||||||||||
Occupancy and equipment | 2,261 | 2,300 | (1.7) | % | 1,964 | 15.1 | % | 6,919 | 5,779 | 19.7 | % | |||||||||||||||||||||||||||||||||||||||
Professional fees | 599 | 973 | (38.4) | % | 685 | (12.6) | % | 2,656 | 2,189 | 21.3 | % | |||||||||||||||||||||||||||||||||||||||
Marketing and business promotion | 667 | 318 | 109.7 | % | 980 | (31.9) | % | 1,304 | 1,555 | (16.1) | % | |||||||||||||||||||||||||||||||||||||||
Data processing | 397 | 495 | (19.8) | % | 367 | 8.2 | % | 1,294 | 1,159 | 11.6 | % | |||||||||||||||||||||||||||||||||||||||
Director fees and expenses | 226 | 221 | 2.3 | % | 152 | 48.7 | % | 679 | 549 | 23.7 | % | |||||||||||||||||||||||||||||||||||||||
Regulatory assessments | 309 | 327 | (5.5) | % | 281 | 10.0 | % | 934 | 818 | 14.2 | % | |||||||||||||||||||||||||||||||||||||||
| Other expense | 1,342 | 1,316 | 2.0 | % | 1,206 | 11.3 | % | 5,099 | 3,364 | 51.6 | % | |||||||||||||||||||||||||||||||||||||||
Total noninterest expense | 14,602 | 15,175 | (3.8) | % | 14,207 | 2.8 | % | 46,129 | 41,588 | 10.9 | % | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | 10,687 | 8,786 | 21.6 | % | 9,993 | 6.9 | % | 25,975 | 35,002 | (25.8) | % | |||||||||||||||||||||||||||||||||||||||
Income tax expense | 2,873 | 2,505 | 14.7 | % | 2,970 | (3.3) | % | 7,195 | 10,205 | (29.5) | % | |||||||||||||||||||||||||||||||||||||||
Net income | 7,814 | 6,281 | 24.4 | % | 7,023 | 11.3 | % | 18,780 | 24,797 | (24.3) | % | |||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | 346 | 142 | 143.7 | % | — | NM | 488 | — | NM | |||||||||||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 7,468 | $ | 6,139 | 21.6 | % | $ | 7,023 | 6.3 | % | $ | 18,292 | $ | 24,797 | (26.2) | % | ||||||||||||||||||||||||||||||||||
Earnings per common share | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.52 | $ | 0.43 | $ | 0.49 | $ | 1.28 | $ | 1.73 | ||||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.52 | $ | 0.43 | $ | 0.49 | $ | 1.27 | $ | 1.71 | ||||||||||||||||||||||||||||||||||||||||
Average common shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 14,241,014 | 14,237,083 | 14,294,802 | 14,237,851 | 14,327,930 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted | 14,356,384 | 14,312,949 | 14,396,216 | 14,328,510 | 14,441,960 | |||||||||||||||||||||||||||||||||||||||||||||
Dividend paid per common share | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.54 | $ | 0.51 | ||||||||||||||||||||||||||||||||||||||||
Return on average assets (1) | 1.08 | % | 0.89 | % | 1.09 | % | 0.88 | % | 1.32 | % | ||||||||||||||||||||||||||||||||||||||||
Return on average shareholders’ equity (1) | 8.70 | % | 7.19 | % | 8.12 | % | 7.11 | % | 9.77 | % | ||||||||||||||||||||||||||||||||||||||||
Return on average TCE (1), (2) | 10.31 | % | 8.75 | % | 10.17 | % | 8.61 | % | 12.27 | % | ||||||||||||||||||||||||||||||||||||||||
Efficiency ratio (3) | 57.63 | % | 62.65 | % | 56.94 | % | 62.76 | % | 55.63 | % | ||||||||||||||||||||||||||||||||||||||||
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
(3)The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
14
PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2024 | 6/30/2024 | 9/30/2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Balance | Interest Income/ Expense | Avg. Yield/Rate(6) | Average Balance | Interest Income/ Expense | Avg. Yield/Rate(6) | Average Balance | Interest Income/ Expense | Avg. Yield/Rate(6) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans (1) | $ | 2,456,015 | $ | 42,115 | 6.82 | % | $ | 2,414,824 | $ | 40,626 | 6.77 | % | $ | 2,137,184 | $ | 34,651 | 6.43 | % | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 111,350 | 1,000 | 3.57 | % | 104,538 | 911 | 3.50 | % | 98,534 | 750 | 3.02 | % | ||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligation | 22,661 | 244 | 4.28 | % | 22,992 | 249 | 4.36 | % | 24,959 | 262 | 4.16 | % | ||||||||||||||||||||||||||||||||||||||||||||
SBA loan pool securities | 6,571 | 69 | 4.18 | % | 6,891 | 74 | 4.32 | % | 7,842 | 81 | 4.10 | % | ||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds (2) | 2,698 | 24 | 3.54 | % | 3,238 | 29 | 3.60 | % | 3,602 | 30 | 3.30 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate bonds | 4,248 | 47 | 4.40 | % | 4,157 | 47 | 4.55 | % | 4,056 | 47 | 4.60 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other interest-earning assets | 175,711 | 2,499 | 5.66 | % | 213,428 | 3,009 | 5.67 | % | 219,115 | 3,031 | 5.49 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 2,779,254 | 45,998 | 6.58 | % | 2,770,068 | 44,945 | 6.53 | % | 2,495,292 | 38,852 | 6.18 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 24,098 | 23,057 | 21,298 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACL on loans | (28,797) | (28,372) | (24,869) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 92,152 | 88,399 | 71,512 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest-earning assets | 87,453 | 83,084 | 67,941 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,866,707 | $ | 2,853,152 | $ | 2,563,233 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOW and money market accounts | $ | 496,158 | 5,129 | 4.11 | % | $ | 473,557 | 4,876 | 4.14 | % | $ | 481,341 | 4,398 | 3.62 | % | |||||||||||||||||||||||||||||||||||||||||
Savings | 6,204 | 4 | 0.26 | % | 6,899 | 4 | 0.23 | % | 7,197 | 4 | 0.22 | % | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 1,390,644 | 17,924 | 5.13 | % | 1,383,167 | 17,656 | 5.13 | % | 1,073,044 | 12,001 | 4.44 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,893,006 | 23,057 | 4.85 | % | 1,863,623 | 22,536 | 4.86 | % | 1,561,582 | 16,403 | 4.17 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Other borrowings | 15,848 | 222 | 5.57 | % | 48,462 | 674 | 5.59 | % | — | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,908,854 | 23,279 | 4.85 | % | 1,912,085 | 23,210 | 4.88 | % | 1,561,582 | 16,403 | 4.17 | % | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | 534,761 | 535,508 | 626,738 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 65,716 | 54,338 | 31,769 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 600,477 | 589,846 | 658,507 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 2,509,331 | 2,501,931 | 2,220,089 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total shareholders’ equity | 357,376 | 351,221 | 343,144 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,866,707 | $ | 2,853,152 | $ | 2,563,233 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 22,719 | $ | 21,735 | $ | 22,449 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread (3) | 1.73 | % | 1.65 | % | 2.01 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (4) | 3.25 | % | 3.16 | % | 3.57 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 2,427,767 | $ | 23,057 | 3.78 | % | $ | 2,399,131 | $ | 22,536 | 3.78 | % | $ | 2,188,320 | $ | 16,403 | 2.97 | % | ||||||||||||||||||||||||||||||||||||||
Total funding (5) | $ | 2,443,615 | $ | 23,279 | 3.79 | % | $ | 2,447,593 | $ | 23,210 | 3.81 | % | $ | 2,188,320 | $ | 16,403 | 2.97 | % | ||||||||||||||||||||||||||||||||||||||
(1)Total loans include both loans held-for-sale and loans held-for-investment.
(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
(6)Annualized.
15
PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
| Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
| 9/30/2024 | 9/30/2023 | |||||||||||||||||||||||||||||||||||||
| Average Balance | Interest Income/ Expense | Avg. Yield/Rate(6) | Average Balance | Interest Income/ Expense | Avg. Yield/Rate(6) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||||||||||
Total loans (1) | $ | 2,413,777 | $ | 121,992 | 6.75 | % | $ | 2,102,600 | $ | 98,840 | 6.29 | % | ||||||||||||||||||||||||||
Mortgage-backed securities | 105,933 | 2,750 | 3.47 | % | 98,364 | 2,146 | 2.92 | % | ||||||||||||||||||||||||||||||
Collateralized mortgage obligation | 23,137 | 747 | 4.31 | % | 25,970 | 780 | 4.02 | % | ||||||||||||||||||||||||||||||
SBA loan pool securities | 6,925 | 221 | 4.26 | % | 8,406 | 244 | 3.88 | % | ||||||||||||||||||||||||||||||
Municipal bonds (2) | 3,077 | 81 | 3.52 | % | 4,017 | 97 | 3.23 | % | ||||||||||||||||||||||||||||||
| Corporate bonds | 4,211 | 141 | 4.47 | % | 4,300 | 141 | 4.38 | % | ||||||||||||||||||||||||||||||
Other interest-earning assets | 201,951 | 8,566 | 5.67 | % | 206,720 | 7,978 | 5.16 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets | 2,759,011 | 134,498 | 6.51 | % | 2,450,377 | 110,226 | 6.01 | % | ||||||||||||||||||||||||||||||
| Noninterest-earning assets | ||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 22,845 | 21,069 | ||||||||||||||||||||||||||||||||||||
| ACL on loans | (28,251) | (25,438) | ||||||||||||||||||||||||||||||||||||
Other assets | 89,784 | 72,616 | ||||||||||||||||||||||||||||||||||||
Total noninterest-earning assets | 84,378 | 68,247 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,843,389 | $ | 2,518,624 | ||||||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||||
NOW and money market accounts | $ | 474,584 | 14,670 | 4.13 | % | $ | 477,605 | 11,772 | 3.30 | % | ||||||||||||||||||||||||||||
Savings | 6,432 | 12 | 0.25 | % | 7,684 | 14 | 0.24 | % | ||||||||||||||||||||||||||||||
Time deposits | 1,380,379 | 52,878 | 5.12 | % | 1,015,234 | 31,651 | 4.17 | % | ||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,861,395 | 67,560 | 4.85 | % | 1,500,523 | 43,437 | 3.87 | % | ||||||||||||||||||||||||||||||
| Other borrowings | 35,427 | 1,485 | 5.60 | % | 5,212 | 209 | 5.36 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,896,822 | 69,045 | 4.86 | % | 1,505,735 | 43,646 | 3.88 | % | ||||||||||||||||||||||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | 537,682 | 647,258 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 56,019 | 26,208 | ||||||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 593,701 | 673,466 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 2,490,523 | 2,179,201 | ||||||||||||||||||||||||||||||||||||
Total shareholders’ equity | 352,866 | 339,423 | ||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,843,389 | $ | 2,518,624 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 65,453 | $ | 66,580 | ||||||||||||||||||||||||||||||||||
Net interest spread (3) | 1.65 | % | 2.13 | % | ||||||||||||||||||||||||||||||||||
Net interest margin (4) | 3.17 | % | 3.63 | % | ||||||||||||||||||||||||||||||||||
Total deposits | $ | 2,399,077 | $ | 67,560 | 3.76 | % | $ | 2,147,781 | $ | 43,437 | 2.70 | % | ||||||||||||||||||||||||||
Total funding (5) | $ | 2,434,504 | $ | 69,045 | 3.79 | % | $ | 2,152,993 | $ | 43,646 | 2.71 | % | ||||||||||||||||||||||||||
(1)Total loans include both loans held-for-sale and loans held-for-investment.
(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
(6)Annualized.
16
PCB Bancorp and Subsidiary
Non-GAAP Measures
($ in thousands)
Return on average tangible common equity, tangible common equity per common share and tangible common equity to total assets ratios
The Company's TCE is calculated by subtracting preferred stock from shareholders’ equity. The Company does not have any intangible assets for the presented periods. Return on average TCE, TCE per common share, and TCE to total assets constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. These non-GAAP measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP measures with financial measures defined by GAAP.
| ($ in thousands) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
| 9/30/2024 | 6/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | |||||||||||||||||||||||||||||||
| Average total shareholders' equity | (a) | $ | 357,376 | $ | 351,221 | $ | 343,144 | $ | 352,866 | $ | 339,423 | ||||||||||||||||||||||||
| Less: average preferred stock | (b) | 69,141 | 69,141 | 69,141 | 69,141 | 69,141 | |||||||||||||||||||||||||||||
| Average TCE | (c)=(a)-(b) | $ | 288,235 | $ | 282,080 | $ | 274,003 | $ | 283,725 | $ | 270,282 | ||||||||||||||||||||||||
| Net income | (d) | $ | 7,814 | $ | 6,281 | $ | 7,023 | $ | 18,780 | $ | 24,797 | ||||||||||||||||||||||||
Return on average shareholder's equity (1) | (d)/(a) | 8.70 | % | 7.19 | % | 8.12 | % | 7.11 | % | 9.77 | % | ||||||||||||||||||||||||
| Net income available to common shareholders | (e) | $ | 7,468 | $ | 6,139 | $ | 7,023 | $ | 18,292 | $ | 24,797 | ||||||||||||||||||||||||
Return on average TCE (1) | (e)/(c) | 10.31 | % | 8.75 | % | 10.17 | % | 8.61 | % | 12.27 | % | ||||||||||||||||||||||||
(1) Annualized.
| ($ in thousands, except per share data) | 9/30/2024 | 6/30/2024 | 12/31/2023 | 9/30/2023 | |||||||||||||||||||||||||
| Total shareholders' equity | (a) | $ | 362,300 | $ | 353,469 | $ | 348,872 | $ | 341,852 | ||||||||||||||||||||
| Less: preferred stock | (b) | 69,141 | 69,141 | 69,141 | 69,141 | ||||||||||||||||||||||||
| TCE | (c)=(a)-(b) | $ | 293,159 | $ | 284,328 | $ | 279,731 | $ | 272,711 | ||||||||||||||||||||
Outstanding common shares | (d) | 14,266,725 | 14,254,024 | 14,260,440 | 14,319,014 | ||||||||||||||||||||||||
| Book value per common share | (a)/(d) | $ | 25.39 | $ | 24.80 | $ | 24.46 | $ | 23.87 | ||||||||||||||||||||
| TCE per common share | (c)/(d) | $ | 20.55 | $ | 19.95 | $ | 19.62 | $ | 19.05 | ||||||||||||||||||||
| Total assets | (e) | $ | 2,889,833 | $ | 2,852,964 | $ | 2,789,506 | $ | 2,567,974 | ||||||||||||||||||||
| Total shareholders' equity to total assets | (a)/(e) | 12.54 | % | 12.39 | % | 12.51 | % | 13.31 | % | ||||||||||||||||||||
| TCE to total assets | (c)/(e) | 10.14 | % | 9.97 | % | 10.03 | % | 10.62 | % | ||||||||||||||||||||
17
Earnings Results 3Q24 October 24, 2024 PCB BANCORP
2 Forward-Looking Statement & Non-GAAP Cautionary Note Regarding Forward-Looking Statements 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.gov 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. A non-GAAP financial measure is a numerical measure of 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. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided in the Non-GAAP Measures section 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 10/22/24 Market Cap $258.4 million Stock Price Per Share $18.11 52-Week Range $14.50 - $20.22 Dividend Yield 3.98% Dividend Payout Ratio (4Q23 – 3Q24) 42.60% Outstanding Shares 14,266,725 Stock Information 3Q24 or 9/30/24 Diluted Earnings Per Share (“Diluted EPS”) $0.52 Cash Dividend Per Share $0.18 Book Value (“BV”) Per Share $25.39 Tangible Common Equity (“TCE”) Per Share (1) $20.55 Number of Repurchased Shares (2) 0 (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure (2) The Company is authorized to purchased additional shares of 577,777 shares under the 2023 stock repurchase program as of 9/30/24. PCB Footprint Corporate Profile 3
Historical Performance $1.45 $1.58 $1.73 $2.05 $2.32 $2.47 0.000 0.500 1.000 1.500 2.000 2.500 3.000 2019 2020 2021 2022 2023 Sep-24 Held-For-Investment Loans ($bn) $1.48 $1.59 $1.87 $2.05 $2.35 $2.46 0.000 0.500 1.000 1.500 2.000 2.500 3.000 2019 2020 2021 2022 2023 Sep-24 Deposits ($bn) $24.1 $16.2 $40.1 $35.0 $30.7 $18.8 $38.6 $36.2 $52.4 $53.0 $43.1 $27.4 0.000 10.000 20.000 30.000 40.000 50.000 60.000 2019 2020 2021 2022 2023 09/24 YTD Net Income/PTPP Income ($mm) Net Income PTPP Income CAGR +12.5% CAGR +12.3% $0.25 $0.40 $0.44 $0.60 $0.69 $0.54 $1.49 $1.05 $2.62 $2.31 $2.12 $1.27 $14.44 $15.19 $17.24 $22.94 $24.46 $25.39 $18.21 $19.62 $20.55 -$5.00 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 2019 2020 2021 2022 2023 09/24 YTD Cash Dividend/Diluted EPS & BV/TCE Per Share Cash Dividend Per Share Diluted EPS BV Per Share TCE Per Share (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 (1), (2)(1) (2) Annualized +8.2% Annualized +6.1% 4
3Q24 Highlights Operating Results • Net income available to common shareholders of $7.5 million, or $0.52 per diluted share • Provision for credit losses of $50 thousand • Return on Average Assets (“ROAA”) of 1.08%, Return on Average TCE (“ROATCE”) (1) of 10.31%, net interest margin of 3.25%, and efficiency ratio of 57.6% Loans • Loans held-for-investment (“HFI loans”) increased $17.1 million, or 0.7%, to $2.47 billion • Average loan yield was 6.82% compared to 6.77% for 2Q24 • Total loans to deposits ratio was 100.5% • Quarterly loan production was $186.6 million compared to $73.3 million for 2Q24 Asset Quality • ACL on loans was $28.9 million, or 1.17% to HFI loans • Past due loans were $3.0 million, or 0.12% of HFI loans and NPLs were $6.6 million, or 0.27% of HFI loans Deposits • Total deposits increased $53.6 million, or 2.2%, to $2.46 billion • Core deposits(1) were $1.52 billion, or 62.0% of total deposits • Non-interest bearing deposits were $540.1 million, or 22.0% of total deposits • Uninsured deposits were $1.04 billion, or 42.4% of total deposits • Cost of average interest-bearing deposits and total deposits were 4.85% and 3.78%, respectively Capital & Liquidity • Declared and paid quarterly cash dividend of $0.18 per share • TCE per share increased to $20.55 • Maintained available borrowing capacity of $1.35 billion, or 46.6% of total assets (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation to most comparable GAAP measure 5
Selected Financial As of or For the Three Months Ended Compared to 6/30/24 Compared to 9/30/23 ($ in Thousands, Except Per Share Data) 9/30/24 6/30/24 9/30/23 Amount Percentage Amount Percentage Income Statement Summary: Interest Income $ 45,998 $ 44,945 $ 38,852 $ 1,053 2.3% $ 7,146 18.4% Interest Expense 23,279 23,210 16,403 69 0.3% 6,876 41.9% Net Interest Income 22,719 21,735 22,449 984 4.5% 270 1.2% Noninterest Income 2,620 2,485 2,502 135 5.4% 118 4.7% Noninterest Expense 14,602 15,175 14,207 (573) -3.8% 395 2.8% Provision (Reversal) for Credit Losses 50 259 751 (209) -80.7% (701) -93.3% Pretax Income 10,687 8,786 9,993 1,901 21.6% 694 6.9% Income Tax Expense 2,873 2,505 2,970 368 14.7% (97) -3.3% Net Income 7,814 6,281 7,023 1,533 24.4% 791 11.3% Preferred Stock Dividends 346 142 0 204 143.7% 346 NM Net Income Available to Common Shareholders 7,468 6,139 7,023 1,329 21.6% 445 6.3% Diluted EPS $ 0.52 $ 0.43 $ 0.49 $ 0.09 20.9% $ 0.03 6.1% Selected Balance Sheet Items: HFI loans $ 2,466,174 $ 2,449,074 $ 2,323,452 $ 17,100 0.7% $ 142,722 6.1% HFS loans 5,170 2,959 5,155 2,211 74.7% 15 0.3% Total Deposits 2,459,682 2,406,254 2,351,612 53,428 2.2% 108,070 4.6% Total Assets 2,889,833 2,852,964 2,789,506 36,869 1.3% 100,327 3.6% Shareholders’ Equity 362,300 353,469 348,872 8,831 2.5% 13,428 3.8% TCE (2) 293,159 284,328 279,731 8,831 3.1% 13,428 4.8% Key Metrics: BV Per Share $ 25.39 $ 24.80 $ 24.46 $ 0.59 2.4% $ 0.93 3.8% TCE Per Share (1) $ 20.55 $ 19.95 $ 19.62 $ 0.60 3.0% $ 0.93 4.7% ROAA (2) 1.08% 0.89% 1.09% 0.19% -0.01% Return on Average Equity (“ROAE”) (2) 8.70% 7.19% 8.12% 1.51% 0.58% ROATCE (1), (2) 10.31% 8.75% 10.17% 1.56% 0.14% Net Interest Margin (2) 3.25% 3.16% 3.57% 0.09% -0.32% Efficiency Ratio (3) 57.63% 62.65% 56.94% -5.02% 0.69% (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of these measures to their most comparable GAAP measures (2) Annualized (3) Calculated by dividing noninterest expense by the sum of net interest income and noninterest income 6
$1,440 $1,445 $1,469 $1,504 $1,571 $1,614 $1,631 $1,661 $249 $268 $272 $280 $342 $372 $417 $407$357 $379 $382 $384 $410 $412 $401 $398 $2,046 $2,092 $2,122 $2,168 $2,323 $2,398 $2,449 $2,466 - 500 1,000 1,500 2,000 2,500 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 HFI Loan Trend ($mm) Commercial Real Estate Commercial & Industrial Consumer 7 Loan Overview YoY +13.8% (1) Per regulatory definition in the Commercial Real Estate (“CRE”) Concentration Guidance $925 $943 $941 $961 $1,063 $1,103 $1,081 $1,100 254% 259% 255% 257% 281% 289% 281% 282% 0% 50% 100% 150% 200% 250% 300% 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1,000.0 1,100.0 1,200.0 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Commercial Real Estate(1) Loan Trend ($mm) CRE Loans % to the Bank's Total Risk-Based Capital Commercial Property 35% Business Property 24% Multifamily 8% Construction 1% Commercial & Industrial 16% Consumer 16% HFI Loan Composition September 30, 2024 $2.47B 3Q24 Highlights • HFI loans Increased $17.1 million, or 0.7%, to $2.47 billion • CRE loans increased $29.6 million (1.8%), but C&I loans decreased $10.3 million (2.5%) & consumer loans decreased $2.2 million (0.6%)
8 Loan Production & Rate/Yield Analysis (1) Total commitment basis (2) Include both HFI and HFS loans (3) Annualized $15 $14 $4 $17 $19 $11 $2 $64 $27 $37 $27 $77 $24 $7 $30 $110 $71 $83 $114 $194 $119 $66 $163 $190 $112 $123 $158 $290 $154 $73 $195 7.17% 8.04% 8.18% 7.95% 7.90% 8.40% 8.78% 7.56% -8% -6% -4% -2% 0% 2% 4% 6% 8% 0 50 100 150 200 250 300 350 400 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 New Production(1) by Rate Type ($mm) Fixed Hybrid Variable WA Rate Fixed (WA Rate: 5.06%) 18% Variable (WA Rate: 8.10%) 44% Hybrid (WA Rate: 5.14%) 38% HFI Loans Interest Rate Mix 23% 23% 23% 22% 21% 20% 19% 18% 39% 39% 39% 39% 39% 39% 37% 38% 38% 38% 38% 39% 40% 41% 44% 44% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 30-Sep HFI Loans Interest Rate Mix Trend Fixed Hybrid Variable September 30, 2024 HFI Loans WA Rate 6.43% Repricing Schedule (09/30/24) HFI Loans HFS Loans Total Loans ($ in thousands) Carrying Value WA Rate Carrying Value WA Rate Carrying Value WA Rate Less Than 3 Months $ 964,030 8.22% $ 5,170 9.59% $ 969,200 8.22% 3 to 12 Months 286,521 6.01% 0 286,521 6.01% 1 to 3 Years 752,887 4.34% 0 752,887 4.34% 3 to 5 Years 402,472 6.56% 0 402,472 6.56% More than 5 Years 60,264 4.75% 0 60,264 4.75% Total $ 2,466,174 6.43% $ 5,170 9.59% $ 2,471,344 6.43% Loan Yield Analysis 3Q24 09/24 YTD ($ in thousands) Amount(2) Yield(3) Amount(2) Yield(3) Average Carrying Value $ 2,456,015 $ 2,413,777 Interest on Loans $ 41,096 6.66% $ 118,936 6.54% Fee (Cost) 160 0.03% 692 0.04% Prepayment Penalty & Late Charges 86 0.01% 227 0.01% Discount (Premium) 773 0.13% 2,137 0.12% Total Interest & Fees $ 42,115 6.82% $ 121,992 6.75%
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%) $ 363,400 21.8% 310 47.9% 6.18% $ 81,378 $ 80,700 $ 110,409 $ 90,913 Industrial 265,223 16.0% 163 49.1% 5.87% 52,392 61,657 77,808 73,366 Mixed Use 175,540 10.6% 142 44.8% 5.98% 37,562 42,099 56,100 39,779 Apartments 166,845 10.0% 59 54.7% 6.01% 53,209 37,509 70,072 6,055 Motel & Hotel 135,709 8.2% 107 47.5% 7.31% 4,717 23,056 33,068 74,868 Gas Station 106,336 6.4% 119 53.5% 6.76% 2,141 15,474 39,895 48,826 Office 100,568 6.1% 58 53.4% 6.03% 20,168 17,870 29,635 32,895 Medical 55,343 3.3% 29 41.2% 7.61% 9,418 32,453 8,923 4,549 Auto (Sales, Repair, & etc.) 37,146 2.2% 32 53.7% 5.47% 10,211 310 21,987 4,638 Golf Course 35,875 2.2% 8 48.9% 5.06% 0 22,965 7,658 5,252 Car Wash 33,945 2.0% 27 48.9% 6.02% 10,808 7,533 8,364 7,240 Commercial Condominium 31,414 1.9% 40 50.5% 5.91% 4,662 7,061 10,193 9,498 Spa, Sauna, & Oher Self-Care 30,805 1.9% 7 49.2% 5.21% 13,384 0 8,432 8,989 Nursing Facility 26,832 1.6% 8 51.7% 7.16% 0 0 19,308 7,524 Construction 21,150 1.3% 6 54.4% 9.20% 21,150 0 0 0 Wholesale 19,178 1.2% 16 41.9% 5.37% 4,241 1,922 12,016 999 Others 55,611 3.3% 79 47.4% 6.44% 9,162 9,327 15,291 21,831 Total $ 1,660,920 100.0% 1,210 49.2% 6.25% $ 334,603 $ 359,936 $ 529,159 $ 437,222 Loan Concentration (1) Collateral value at origination Los Angeles County 61% Orange County 9% San Bernardino County 4% Northern CA Counties 3% Riverside County 3% Other Socal Counties 1% NY/NJ 7% Texas 5% Washington 3% Other States 4% Commercial Real Estate Loans Geographic Concentration (9/30/24) $1.66B CA: $1.34B (81%) Commercial Real Estate Loans by Property Type (9/30/24) ($ in thousands) Carrying Value WA LTV(1) WA FICO Residential Mortgage $ 383,377 59.5% 758 Residential Mortgage Loans (9/30/24) 9
Loan Concentration Carrying Value % to Total WA Rate WA Month to Maturity($ in thousands) Finance & Insurance $ 131,064 32.3% 7.21% 9 General Manufacturing & Wholesale Trade 88,068 21.7% 7.73% 12 Retail Trade 40,183 9.9% 8.57% 45 Food Services 36,807 9.0% 8.95% 56 Real Estate Related 30,264 7.4% 7.55% 16 Arts, Entertainment, & Recreation 25,362 6.2% 8.34% 21 Professional, Scientific, & Technical Services 16,594 4.1% 8.17% 17 Construction 10,332 2.5% 8.16% 4 Transportation & Warehousing 8,337 2.0% 8.74% 28 Health Care & Social Assistance 7,716 1.9% 8.45% 41 All Other 12,297 3.0% 8.20% 46 Total $ 407,024 100.0% 7.86% 21 Los Angeles County 46% Orange County 13% Northern CA Counties… Other Socal Counties 5% San Bernardino County 2% Riverside County 1% Georgia 9% NY/NJ 7% Texas 3% Other States 8% Commercial & Industrial Loans Geographic Concentration (9/30/24) Commercial & Industrial Loans by Industry Type (9/30/24) $407MM CA: $294MM (72%) 10
Credit Quality & Peer(1) Comparison $7.4 $3.0 $3.8 $3.7 $6.5 $4.9 $7.5 $7.1 0 1 2 3 4 5 6 7 8 9 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Non-Performing Assets (“NPAs”) ($mm) 0.30% 0.12% 0.15% 0.15% 0.23% 0.17% 0.26% 0.24% 0% 0% 0% 0% 0% 0% 0% 0% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 NPAs to Total Assets 1.22% 1.18% 1.17% 1.18% 1.19% 1.18% 1.17% 1.17% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 ACL on Loans to HFI Loans 742% 834% 647% 686% 703% 574% 383% 437% -0.5 0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 ACL on Loans to Non-Performing HFI Loans 0.77% 0.57% 0.55% 0.54% 0.54% 0.32% 0.32% 0.29% 0.23% 0% 0% 0% 0% 0% 1% 1% 1% 1% 1% Hope Open CBB Peer Shinhan Hanmi USM PCB Woori NPAs / (Total Loans + OREO)(2) September 30, 2024 Peer Information: June 30, 2024 1.40% 0.77% 0.63% 0.46% 0.32% 0% 0% 0% 1% 1% 1% 1% 1% 2% Hope CBB Open Hanmi PCB Classified Assets to Total Assets(4) September 30, 2024 Peer Information: June 30, 2024 (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 (3) 11
Deposits (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure. $735 $654 $635 $611 $595 $538 $544 $540 $515 $460 $489 $459 $421 $484 $484 $492 $649 $811 $844 $861 $972 $1,021 $1,036 $1,073 $147 $217 $220 $261 $364 $360 $343 $355 $2,046 $2,142 $2,188 $2,192 $2,352 $2,403 $2,407 $2,460 0 500 1,000 1,500 2,000 2,500 3,000 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Deposit Trend ($mm) Noninterest DDA Retail Other Interest-Bearing Retail Time Deposits Wholesale Deposits Noninterest DDA 22% Retail Other Interest-Bearing 20% Retail Time Deposits 44% Whoelsae Deposits 14% Deposit Composition $2.46B $1,545 $1,470 $1,516 $1,476 $1,472 $1,494 $1,503 $1,525 76% 69% 69% 67% 63% 62% 63% 62% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Core Deposits(1) ($mm) Core Deposits % to Total Deposits Time Deposit Maturity Schedule (9/30/24) Retail Wholesale Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 398,341 5.23% $ 192,041 5.34% $ 590,382 5.27% 3 to 6 Months 371,741 5.11% 150,000 4.63% 521,741 4.97% 6 to 9 Months 160,631 5.01% 13,038 5.25% 173,669 5.02% 9 to 12 Months 136,170 4.65% 0 136,170 4.65% More than 12 Months 5,713 3.34% 0 5,713 3.34% Total $ 1,072,596 5.07% $ 355,079 5.04% $ 1,427,675 5.06% YoY +12.2% 3Q24 Highlight • Total deposits increased $53.4 million (2.2%) • Retail deposits increased $41.4 million (2.0%) and wholesale deposits increased $12.0 million (3.5%) • Uninsured deposits were $1.04 billion (42.4% of total deposits) compared to $1.02 billion (42.4% of total deposits) at 6/30/24 September 30, 2024 12
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. $8.7 $10.3 $7.5 $7.0 $5.9 $4.7 $6.3 $7.8 $13.5 $11.7 $10.7 $10.7 $10.0 $7.6 $9.0 $10.7 -1 1 3 5 7 9 11 13 15 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Net Income PTPP Net Income & PTPP(1) Income ($mm) $0.58 $0.70 $0.52 $0.49 $0.41 $0.33 $0.43 $0.52 $0.91 $0.80 $0.75 $0.74 $0.69 $0.53 $0.62 $0.72 0.00 0.20 0.40 0.60 0.80 1.00 1.20 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Diluted EPS Adjusted Diluted EPS Diluted EPS & Adjusted Diluted EPS(1) 1.44% 1.69% 1.19% 1.09% 0.89% 0.67% 0.89% 1.08% 2.24% 1.92% 1.71% 1.66% 1.50% 1.09% 1.28% 1.49% 0% 1% 1% 2% 2% 3% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 ROAA Adjusted ROAA ROAA & Adjusted ROAA(1) 10.31% 12.46% 8.82% 8.12% 6.82% 5.39% 7.19% 8.70% 16.04% 14.13% 12.68% 12.42% 11.49% 8.73% 10.36% 11.95% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 ROAE Adjusted ROAE ROAE & Adjusted ROAE(1) 3Q24 Highlights • Net interest income increased $984 thousand and noninterest expense decreased $722 thousand, but noninterest income decreased $14 thousand. 13
Noninterest Income & Expense $17.4 $27.1 $16.8 $17.7 $20.8 $19.4 $13.6 $13.5 $22.3 $22.5 $19.2 $16.2 $25.1 $20.6 $12.7 $19.8 6.3% 7.5% 7.2% 6.3% 6.0% 8.2% 7.8% 8.8% 4.4% 4.8% 4.6% 3.9% 3.9% 5.6% 5.6% 5.6% -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 0 5 10 15 20 25 30 35 40 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 SBA 7(A) Loans ($mm) Sold Production Premium % Gain % $7.9 $8.9 $8.7 $8.6 $8.4 $9.2 $9.2 $8.8 $5.2 $4.8 $4.9 $5.6 $6.1 $7.2 $6.0 $5.8 2.19% 2.23% 2.16% 2.22% 2.19% 2.33% 2.13% 2.04% 0% 1% 1% 2% 2% 3% 0 2 4 6 8 10 12 14 16 18 20 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Noninterest Expense Trend ($mm) Compensation All Other Expenses % to Average Total Assets 49.2% 54.1% 55.9% 56.9% 59.2% 68.3% 62.7% 57.6% 62.1% 61.0% 61.6% 62.1% 62.8% 66.1% 65.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Efficiency Ratio (2) PCB Peer Average 272 276 272 272 270 272 265 264 258 260 262 264 266 268 270 272 274 276 278 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Number of FTE(3) Employees (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 (1) $1.6 $1.7 $1.9 $1.8 $1.7 $1.8 $1.7 $1.9 $0.8 $1.3 $0.8 $0.7 $0.8 $1.1 $0.8 $0.8 32% 43% 29% 28% 32% 37% 31% 30% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 0 1 1 2 2 3 3 4 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Noninterest Income Trend ($mm) All Other Income Gain on Sale of Loans % of Gain on Sale of Loans
Net Interest Margin (1) Annualized 5.70% 6.11% 6.30% 6.43% 6.58% 6.66% 6.77% 6.82% 4.15% 3.79% 3.55% 3.57% 3.40% 3.10% 3.16% 3.25%2.28% 3.45% 3.97% 4.17% 4.52% 4.85% 4.86% 4.85% 1.42% 2.33% 2.81% 2.97% 3.36% 3.76% 3.81% 3.79% 3.65% 4.52% 4.99% 5.26% 5.33% 5.33% 5.33% 5.26% -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Yield & Cost(1) Loan Yield Net Interest Margin Cost of Interest-Bearing Liabilities Cost of Funds Average Fed Funds Rate 3.16% 3.25% +0.04% -0.01% 0.00% +0.06% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 2Q24 Loan Yield Other Earning Assets Yield Int-Bearing Liabilities Cost Balance Sheet Mix 3Q24 Quarter-over-Quarter Impact to Net Interest Margin(1) 3Q24 Highlights • Net interest income increased $984 thousand to $22.7 million from $21.7 million for 2Q24. • Net interest margin increased to 3.25% from 3.16% for 2Q24 mainly due to increases in loan yield and balance sheet mix. 15
Capital 12.49% 14.33% 15.54% 14.33% 5.00% 6.50% 8.00% 10.00% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Tier 1 Leverage CET 1 Capital Tier 1 Capital Total Capital Bank-Level Regulatory Capital Ratios Actual Minimum Requirement For Well-Capitalized $22.94 $23.56 $23.77 $23.87 $24.46 $24.54 $24.80 $25.39 $18.21 $18.72 $18.94 $19.05 $19.62 $19.69 $19.95 $20.55 $12 $14 $16 $18 $20 $22 $24 $26 $28 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Book Value/TCE(1) Per Share BV Per Share TCE Per Share September 30, 2024 13.86% 13.47% 13.32% 13.31% 12.51% 12.26% 12.39% 12.54% 11.00% 10.71% 10.61% 10.62% 10.03% 9.84% 9.97% 10.14% 8% 9% 10% 11% 12% 13% 14% 15% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Total Equity/TCE(1) to Total Assets Total Equity to Total Assets TCE to Total Assets (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure. 16
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 $250,000 and brokered deposits. Management tracks its core deposits because management believes it is a useful measure to help assess the Company’s deposit base and, among other things, potential volatility therein. ROATCE, TCE Per Share and TCE to Total Assets ROATCE, TCE per share and TCE to total assets measures that we use to measure the Company’s performance. We calculated TCE as total shareholders’ equity excluding preferred stock. Management believes the non-GAAP measures provide useful supplemental information, and a clearer understanding of the Company’s performance. PTPP Income, and Adjusted ROAA, ROAE and Diluted EPS for PTPP PTPP income, and adjusted ROAA, ROAE and Diluted EPS are non-GAAP measures that we use to measure the Company’s performance and believe these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. We calculated PTPP income as net income excluding income tax provision and provision for loan losses. 17
Non-GAAP Measures The following table reconciles core deposits to its most comparable GAAP measure: ($ in thousands) Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Total Deposits (d) $ 2,045,983 $ 2,141,689 $ 2,188,231 $ 2,192,129 $ 2,351,612 $ 2,402,840 $ 2,406,254 $ 2,459,682 Less: Time Deposits Greater Than $250K (413,876) (514,464) (511,590) (514,406) (575,702) (609,550) (619,832) (640,166) Less: Brokered Deposits (87,031) (157,020) (160,149) (201,258) (303,742) (299,776) (283,033) (295,080) Core Deposits (e) $ 1,545,076 $ 1,470,205 $ 1,516,492 $ 1,476,465 $ 1,472,168 $ 1,493,514 $ 1,503,389 $ 1,524,436 Core Deposits to Total Deposits (e)/(d) 75.5% 68.6% 69.3% 67.4% 62.6% 62.2% 62.5% 62.0% The following table reconciles ROATCE to its most comparable GAAP measure: ($ in thousands) 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Average Total Shareholders' Equity (a) $ 334,832 $ 335,169 $ 339,869 $ 343,144 $ 343,735 $ 349,644 $ 351,221 $ 357,376 Less: Average Preferred Stock 69,141 69,141 69,141 69,141 69,141 69,141 69,141 69,141 Average TCE (Non-GAAP) (b) $ 265,691 $ 266,028 $ 270,728 $ 274,003 $ 274,594 $ 280,503 $ 282,080 $ 288,235 Net Income (c) $ 8,702 $ 10,297 $ 7,477 $ 7,023 $ 5,908 $ 4,685 $ 6,281 $ 7,814 ROAE (1) (c)/(a) 10.31% 12.46% 8.82% 8.12% 6.82% 5.32% 7.19% 8.70% Net Income Available to Common Shareholders (d) $ 8,702 $ 10,297 $ 7,477 $ 7,023 $ 5,908 $ 4,685 $ 6,139 $ 7,468 ROATCE (Non-GAAP)(1) (d)/(b) 12.99% 15.70% 11.08% 10.17% 8.54% 6.63% 8.75% 10.31% The following table reconciles TCE per share and TCE to total assets to their most comparable GAAP measures: ($ in thousands, except per share data) Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Total Shareholders' Equity (a) $ 335,442 $ 336,830 $ 340,411 $ 341,852 $ 348,872 $ 350,005 $ 353,469 $ 362,300 Less: Preferred Stock 69,141 69,141 69,141 69,141 69,141 69,141 69,141 69,141 TCE (Non-GAAP) (b) $ 266,301 $ 267,689 $ 271,270 $ 272,711 $ 279,731 $ 280,864 $ 284,328 $ 293,159 Outstanding Shares (c) 14,625,474 14,297,870 14,318,890 14,319,014 14,260,440 14,263,791 14,254,024 14,266,725 Book Value Per Share (a)/(c) $ 22.94 $ 23.56 $ 23.77 $ 23.87 $ 24.46 $ 24.54 $ 24.80 $ 25.39 TCE Per Share (Non-GAAP) (b)/(c) $ 18.21 $ 18.72 $ 18.94 $ 19.05 $ 19.62 $ 19.69 $ 19.95 $ 20.55 Total Assets (d) $ 2,420,036 $ 2,500,524 $ 2,556,345 $ 2,567,974 $ 2,789,506 $ 2,854,292 $ 2,852,964 $ 2,889,833 Total Shareholders’ Equity to Total Assets (a)/(d) 13.86% 13.47% 13.32% 13.31% 12.51% 12.26% 12.39% 12.54% TCE to Total Assets (Non-GAAP) (b)/(d) 11.00% 10.71% 10.61% 10.62% 10.03% 9.84% 9.97% 10.14% (1) Annualized 18
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) 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Net Income (a) $ 8,702 $ 10,297 $ 7,477 $ 7,023 $ 5,908 $ 4,685 $ 6,281 $ 7,814 Add: Provision (Reversal) for Credit Losses(1) 1,149 (2,778) 197 751 1,698 1,090 259 50 Add: Income Tax Provision 3,688 4,162 3,073 2,970 2,352 1,817 2,505 2,873 PTPP Income (Non-GAAP) (b) $ 13,539 $ 11,681 $ 10,747 $ 10,744 $ 9,958 $ 7,592 $ 9,045 $ 10,737 Average Total Assets (c) $ 2,395,712 $ 2,470,876 $ 2,520,752 $ 2,563,233 $ 2,642,175 $ 2,809,808 $ 2,853,152 $ 2,866,707 ROAA (2) (a)/(c) 1.44% 1.69% 1.19% 1.09% 0.89% 0.67% 0.89% 1.08% Adjusted ROAA (Non-GAAP)(2) (b)/(c) 2.24% 1.92% 1.71% 1.66% 1.50% 1.09% 1.28% 1.49% Average Total Shareholders' Equity (d) $ 334,832 $ 335,169 $ 339,869 $ 343,144 $ 343,735 $ 349,644 $ 351,221 $ 357,376 ROAE (2) (a)/(d) 10.31% 12.46% 8.82% 8.12% 6.82% 5.39% 7.19% 8.70% Adjusted ROAE (Non-GAAP)(2) (b)/(d) 16.04% 14.13% 12.68% 12.42% 11.49% 8.73% 10.36% 11.95% Net Income available to common shareholders $ 8,702 $ 10,297 $ 7,477 $ 7,023 $ 5,908 $ 4,685 $ 6,139 $ 7,468 Less: Income Allocated to Participating Securities (37) (33) (24) (21) (17) (9) (11) (11) Net Income Allocated to Common Stock (e) 8,665 10,264 7,453 7,002 5,891 4,676 6,128 7,457 Add: Provision for Loan Losses 1,149 (2,778) 197 751 1,698 1,090 259 50 Add: Income Tax Provision 3,688 4,162 3,073 2,970 2,352 1,817 2,505 2,873 PTPP Income Allocated to Common Stock (f) $ 13,502 $ 11,648 $ 10,723 $ 10,723 $ 9,941 $ 7,583 $ 8,892 $ 10,380 WA common shares outstanding, diluted (g) 14,904,106 14,574,929 14,356,776 14,396,216 14,316,581 14,330,204 14,312,949 14,356,384 Diluted EPS (e)/(g) $ 0.58 $ 0.70 $ 0.52 $ 0.49 $ 0.41 $ 0.33 $ 0.43 $ 0.52 Adjusted Diluted EPS (Non-GAAP) (f)/(g) $ 0.91 $ 0.80 $ 0.75 $ 0.74 $ 0.69 $ 0.53 $ 0.62 $ 0.72 ($ in thousands) 2019 2020 2021 2022 2023 09/24 YTD Net Income $ 24,108 $ 16,175 $ 40,103 $ 34,987 $ 30,705 $ 18,780 Add: Provision (Reversal) for Credit Losses(1) 4,237 13,219 (4,596) 3,602 (132) 1,399 Add: Income Tax Provision 10,243 6,836 16,856 14,416 12,557 7,195 PTPP Income (Non-GAAP) $ 38,588 $ 36,230 $ 52,363 $ 53,005 $ 43,130 $ 27,374 19
Exhibit 99.3
PCB Bancorp Declares Quarterly Cash Dividend of $0.18 Per Common Share
Los Angeles, California - October 24, 2024 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank, announced that on October 24, 2024, its Board of Directors declared a quarterly cash dividend of $0.18 per common share. The dividend will be paid on or about November 15, 2024, to shareholders of record as of the close of business on November 8, 2024.
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.
Contact:
Timothy Chang
Executive Vice President & Chief Financial Officer
213-210-2000
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