PCB Bancorp Reports Earnings for Q2 2025

PCB Bancorp Reports Earnings for Q2 2025 Company Release - 7/24/2025 PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $9.0 million, or $0.62 per diluted common share, for the second quarter of 2025, compared with $7.7 million, or $0.53 per diluted common share, for the previous quarter and $6.1 million, or $0.43 per diluted common share, for the year-ago quarter. Q2 2025 Highlights Net income available to common shareholders totaled $9.0 million, or $0.62 per diluted common share, for the current quarter;Provision for credit losses was $1.8 million for the current quarter compared with $1.6 million for the previous quarter and $259 thousand for the year-ago quarter;Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.20% at June 30, 2025 compared with 1.17% at March 31, 2025, 1.16% at December 31, 2024, and 1.17% at June 30, 2024;Net interest income was $26.0 million for the current quarter compared with $24.3 million for the previous quarter and $21.7 million for the year-ago quarter. Net interest margin was 3.33% for the current quarter compared with 3.28% for the previous quarter and 3.16% for the year-ago quarter;Gain on sale of loans was $1.5 million for the current quarter compared with $887 thousand for the previous quarter and $763 thousand for the year-ago quarter;Total assets were $3.31 billion at June 30, 2025, an increase of $121.8 million, or 3.8%, from $3.18 billion at March 31, 2025, an increase of $241.6 million, or 7.9%, from $3.06 billion at December 31, 2024, and an increase of $452.6 million, or 15.9%, from $2.85 billion at June 30, 2024;Loans held-for-investment were $2.80 billion at June 30, 2025, an increase of $67.7 million, or 2.5%, from $2.73 billion at March 31, 2025, an increase of $165.9 million, or 6.3%, from $2.63 billion at December 31, 2024, and an increase of $346.2 million, or 14.1%, from $2.45 billion at June 30, 2024;Total deposits were $2.82 billion at June 30, 2025, an increase of $108.5 million, or 4.0%, from $2.71 billion at March 31, 2025, an increase of $207.1 million, or 7.9%, from $2.62 billion at December 31, 2024, and an increase of $416.7 million, or 17.3%, from $2.41 billion at June 30, 2024; andOpened a full-service branch in Suwanee, Georgia. “We are pleased with our second quarter results highlighted by strong net income growth, continued healthy increases in loan and deposit balances, expansion in net interest margin, and the establishment of our first full-service branch in the state of Georgia as part of our long-term strategy,” said Henry Kim, President and CEO. “Certain industries across our footprint are feeling the effects of persistent inflation and ongoing uncertainty surrounding tariffs and trade restrictions. Despite this backdrop, we continue to experience solid organic growth, strong credit metrics, solid reserve for loan losses, and robust capital level.” Mr. Kim continued, “Heading into the second half of 2025, we are encouraged by the positive momentum in our balance sheet growth, disciplined expense management, and results of our continued emphasis on relationship banking. We remain dedicated to operating under the best interest of our clients, communities, employees, and shareholders, while delivering consistent results through unpredictable economic cycles and changing competitive landscape.” Financial Highlights (Unaudited) ($ in thousands, except per share data) Three Months Ended Six Months Ended 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change Net income $ 9,071 $ 7,735 17.3 % $ 6,281 44.4 % $ 16,806 $ 10,966 53.3 % Net income available to common shareholders $ 8,984 $ 7,695 16.8 % $ 6,139 46.3 % $ 16,679 $ 10,824 54.1 % Diluted earnings per common share (“EPS”) $ 0.62 $ 0.53 17.0 % $ 0.43 44.2 % $ 1.15 $ 0.75 53.3 % Net interest income $ 25,990 $ 24,283 7.0 % $ 21,735 19.6 % $ 50,273 $ 42,734 17.6 % Provision for credit losses 1,787 1,598 11.8 % 259 590.0 % 3,385 1,349 150.9 % Noninterest income 3,297 2,580 27.8 % 2,485 32.7 % 5,877 5,430 8.2 % Noninterest expense 14,829 14,474 2.5 % 15,175 (2.3 )% 29,303 31,527 (7.1 )% Return on average assets (“ROAA”)(1) 1.13 % 1.01 % 0.89 % 1.07 % 0.78 % Return on average shareholders’ equity (“ROAE”)(1) 9.76 % 8.53 % 7.19 % 9.16 % 6.29 % Return on average tangible common equity (“ROATCE”)(1),(2) 11.87 % 10.45 % 8.75 % 11.17 % 7.73 % Net interest margin(1) 3.33 % 3.28 % 3.16 % 3.30 % 3.13 % Efficiency ratio(3) 50.63 % 53.88 % 62.65 % 52.19 % 65.46 % ($ in thousands, except per share data) 6/30/2025 3/31/2025 % Change 12/31/2024 % Change 6/30/2024 % Change Total assets $ 3,305,589 $ 3,183,758 3.8 % $ 3,063,971 7.9 % $ 2,852,964 15.9 % Net loans held-for-investment 2,761,755 2,695,668 2.5 % 2,598,759 6.3 % 2,420,327 14.1 % Total deposits 2,822,915 2,714,399 4.0 % 2,615,791 7.9 % 2,406,254 17.3 % Book value per common share(4) $ 26.26 $ 25.78 $ 25.30 $ 24.80 TCE per common share (2) $ 21.44 $ 20.97 $ 20.49 $ 19.95 Tier 1 leverage ratio (consolidated) 11.81 % 12.14 % 12.45 % 12.66 % Total shareholders’ equity to total assets 11.39 % 11.65 % 11.87 % 12.39 % TCE to total assets(2), (5) 9.30 % 9.48 % 9.62 % 9.97 % (1) Ratios are presented on an annualized basis. (2) Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. (3) Calculated by dividing noninterest expense by the sum of net interest income and noninterest income. (4) Calculated by dividing total shareholders’ equity by the number of outstanding common shares. (5) The Company did not have any intangible asset component for the presented periods. Result of Operations (Unaudited) Net Interest Income and Net Interest Margin The following table presents the components of net interest income for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change Interest income/expense on Loans $ 45,478 $ 43,026 5.7 % $ 40,626 11.9 % $ 88,504 $ 79,877 10.8 % Investment securities 1,462 1,408 3.8 % 1,310 11.6 % 2,870 2,556 12.3 % Other interest-earning assets 2,368 2,458 (3.7 )% 3,009 (21.3 )% 4,826 6,067 (20.5 )% Total interest-earning assets 49,308 46,892 5.2 % 44,945 9.7 % 96,200 88,500 8.7 % Interest-bearing deposits 22,505 22,564 (0.3 )% 22,536 (0.1 )% 45,069 44,503 1.3 % Borrowings 813 45 1,706.7 % 674 20.6 % 858 1,263 (32.1 )% Total interest-bearing liabilities 23,318 22,609 3.1 % 23,210 0.5 % 45,927 45,766 0.4 % Net interest income $ 25,990 $ 24,283 7.0 % $ 21,735 19.6 % $ 50,273 $ 42,734 17.6 % Average balance of Loans $ 2,782,200 $ 2,649,037 5.0 % $ 2,414,824 15.2 % $ 2,715,986 $ 2,392,426 13.5 % Investment securities 151,055 146,540 3.1 % 141,816 6.5 % 148,810 141,137 5.4 % Other interest-earning assets 200,875 209,375 (4.1 )% 213,428 (5.9 )% 205,101 215,215 (4.7 )% Total interest-earning assets $ 3,134,130 $ 3,004,952 4.3 % $ 2,770,068 13.1 % $ 3,069,897 $ 2,748,778 11.7 % Interest-bearing deposits $ 2,187,210 $ 2,140,201 2.2 % $ 1,863,623 17.4 % $ 2,163,836 $ 1,845,417 17.3 % Borrowings 71,286 3,933 1,712.5 % 48,462 47.1 % 37,796 45,324 (16.6 )% Total interest-bearing liabilities $ 2,258,496 $ 2,144,134 5.3 % $ 1,912,085 18.1 % $ 2,201,632 $ 1,890,741 16.4 % Total funding(1) $ 2,792,026 $ 2,660,764 4.9 % $ 2,447,593 14.1 % $ 2,726,758 $ 2,429,900 12.2 % Annualized average yield/cost of Loans 6.56 % 6.59 % 6.77 % 6.57 % 6.71 % Investment securities 3.88 % 3.90 % 3.72 % 3.89 % 3.64 % Other interest-earning assets 4.73 % 4.76 % 5.67 % 4.74 % 5.67 % Total interest-earning assets 6.31 % 6.33 % 6.53 % 6.32 % 6.47 % Interest-bearing deposits 4.13 % 4.28 % 4.86 % 4.20 % 4.85 % Borrowings 4.57 % 4.64 % 5.59 % 4.58 % 5.60 % Total interest-bearing liabilities 4.14 % 4.28 % 4.88 % 4.21 % 4.87 % Net interest margin 3.33 % 3.28 % 3.16 % 3.30 % 3.13 % Cost of total funding(1) 3.35 % 3.45 % 3.81 % 3.40 % 3.79 % Supplementary information Net accretion of discount on loans $ 610 $ 872 (30.0 )% $ 791 (22.9 )% $ 1,482 $ 1,364 8.7 % Net amortization of deferred loan fees $ 414 $ 266 55.6 % $ 339 22.1 % $ 680 $ 673 1.0 % (1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding. Loans. The decreases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to decreases in market rates and net accretion of discount on loans, partially offset by an increase in net amortization of deferred loan fees. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to a decrease in market rates, partially offset by increases in net accretion of discount on loans and net amortization of deferred loan fees. The following table presents a composition of total loans by interest rate type accompanied with the weighted-average contractual rates as of the dates indicated: 6/30/2025 3/31/2025 12/31/2024 6/30/2024 % 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 18.0 % 5.51 % 17.8 % 5.35 % 17.4 % 5.23 % 18.8 % 5.04 % Hybrid rate loans 38.5 % 5.43 % 38.0 % 5.36 % 37.3 % 5.27 % 37.2 % 5.04 % Variable rate loans 43.5 % 7.53 % 44.2 % 7.52 % 45.3 % 7.63 % 44.0 % 8.45 % Investment Securities. The increases for the current quarter and year-to-date period compared with the same periods of 2024 were primarily due to higher yields on newly purchased investment securities and a decrease in net amortization of premium. Other Interest-Earning Assets. The decrease in average yield for the current quarter compared with the previous quarter was primarily due to a decrease in dividends received on Federal Home Loan Bank (“FHLB”) stock. The decreases for the current quarter and year-to-date period compared with the same periods of 2024 were primarily due to a decrease in average interest rate on cash held at the Federal Reserve Bank, partially offset by an increase in dividends received on FHLB stock. Interest-Bearing Deposits. The decreases in average cost for the current quarter and year-to-date period were primarily due to a decrease in market rates. Provision for Credit Losses The following table presents a composition of provision for credit losses for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change Provision for credit losses on loans $ 1,721 $ 1,591 8.2 % $ 329 423.1 % $ 3,312 $ 1,251 164.7 % Provision (reversal) for credit losses on off-balance sheet credit exposure 66 7 842.9 % (70 ) NA 73 98 (25.5 )% Total provision for credit losses $ 1,787 $ 1,598 11.8 % $ 259 590.0 % $ 3,385 $ 1,349 150.9 % The provision for credit losses on loans for the current quarter was primarily due to an increase in loans held-for-investment. Noninterest Income The following table presents the components of noninterest income for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change Gain on sale of loans $ 1,465 $ 887 65.2 % $ 763 92.0 % $ 2,352 $ 1,841 27.8 % Service charges and fees on deposits 375 372 0.8 % 364 3.0 % 747 742 0.7 % Loan servicing income 760 725 4.8 % 799 (4.9 )% 1,485 1,718 (13.6 )% Bank-owned life insurance (“BOLI”) income 253 247 2.4 % 236 7.2 % 500 464 7.8 % Other income 444 349 27.2 % 323 37.5 % 793 665 19.2 % Total noninterest income $ 3,297 $ 2,580 27.8 % $ 2,485 32.7 % $ 5,877 $ 5,430 8.2 % Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change Gain on sale of SBA loans Sold loan balance $ 26,947 $ 16,605 62.3 % $ 13,619 97.9 % $ 43,552 $ 33,033 31.8 % Premium received 1,750 1,208 44.9 % 1,056 65.7 % 2,958 2,652 11.5 % Gain recognized 1,465 887 65.2 % 763 92.0 % 2,352 1,841 27.8 % Loan Servicing Income. The Company services SBA loans and certain residential property loans sold to the secondary market. The following table presents information on loan servicing income for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change Loan servicing income Servicing income received $ 1,251 $ 1,273 (1.7 )% $ 1,318 (5.1 )% $ 2,524 $ 2,611 (3.3 )% Servicing assets amortization (491 ) (548 ) (10.4 )% (519 ) (5.4 )% (1,039 ) (893 ) 16.3 % Loan servicing income $ 760 $ 725 4.8 % $ 799 (4.9 )% $ 1,485 $ 1,718 (13.6 )% Underlying loans at end of period $ 514,974 $ 510,927 0.8 % $ 527,458 (2.4 )% $ 514,974 $ 527,458 (2.4 )% Noninterest Expense The following table presents the components of noninterest expense for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change Salaries and employee benefits $ 8,844 $ 9,075 (2.5 )% $ 9,225 (4.1 )% $ 17,919 $ 18,443 (2.8 )% Occupancy and equipment 2,379 2,289 3.9 % 2,300 3.4 % 4,668 4,658 0.2 % Professional fees 805 628 28.2 % 973 (17.3 )% 1,433 2,057 (30.3 )% Marketing and business promotion 597 243 145.7 % 318 87.7 % 840 637 31.9 % Data processing 317 333 (4.8 )% 495 (36.0 )% 650 897 (27.5 )% Director fees and expenses 225 226 (0.4 )% 221 1.8 % 451 453 (0.4 )% Regulatory assessments 358 344 4.1 % 327 9.5 % 702 625 12.3 % Other expense 1,304 1,336 (2.4 )% 1,316 (0.9 )% 2,640 3,757 (29.7 )% Total noninterest expense $ 14,829 $ 14,474 2.5 % $ 15,175 (2.3 )% $ 29,303 $ 31,527 (7.1 )% 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, and an increase in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense, partially offset by an increase in salaries from the annual merit increase and new employees at the newly opened full-service branch in Suwanee, Georgia. The decrease for the current quarter compared with the year-ago quarter was primarily due to decreases in salaries, bonus and vacation accruals, as well as an increase in direct loan origination cost. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to decreases in salaries and vacation accrual, and an increase in direct loan origination cost, partially offset by an increase in bonus accrual. The number of full-time equivalent employees was 266, 257 and 265 as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively. Professional Fees. The increase for the current quarter compared with the previous quarter was primarily due to professional fees related to evaluating the accounting for a preferred stock purchase option. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to other professional fees for the 2024 periods related to a core system conversion that was completed in April 2024. Marketing and Business Promotion. The increases for the current quarter and year-to-date periods were primarily due to an increase in advertising. Data Processing. The decreases for the current quarter and year-to-date periods compared with the same periods of 2024 were primarily due to a decrease in overall service charges after the core system conversion. Other Expense. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to a termination charge for the legacy core system of $508 thousand and an expense of $815 thousand for a reimbursement for an SBA loan guarantee previously paid by the SBA on a loan originated in 2014 that subsequently defaulted and was ultimately determined to be ineligible for the SBA guaranty during the previous year-to-date period, partially offset by the impairment on operating lease assets of $228 thousand and contingent accrual for legal settlements of $190 thousand for the current year-to-date period. Balance Sheet (Unaudited) Total assets were $3.31 billion at June 30, 2025, an increase of $121.8 million, or 3.8%, from $3.18 billion at March 31, 2025, an increase of $241.6 million, or 7.9%, from $3.06 billion at December 31, 2024, and an increase of $452.6 million, or 15.9%, from $2.85 billion at June 30, 2024. The increases for the current quarter and year-to-date period were primarily due to increases in loans held-for-investment and cash and cash equivalents. Loans The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated: ($ in thousands) 6/30/2025 3/31/2025 % Change 12/31/2024 % Change 6/30/2024 % Change Commercial real estate: Commercial property $ 1,010,780 $ 965,302 4.7 % $ 940,931 7.4 % $ 852,677 18.5 % Business property 635,648 618,771 2.7 % 595,547 6.7 % 572,643 11.0 % Multifamily 212,738 207,096 2.7 % 194,220 9.5 % 177,657 19.7 % Construction 27,294 23,978 13.8 % 21,854 24.9 % 28,316 (3.6 )% Total commercial real estate 1,886,460 1,815,147 3.9 % 1,752,552 7.6 % 1,631,293 15.6 % Commercial and industrial 492,857 494,697 (0.4 )% 472,763 4.3 % 417,333 18.1 % Consumer: Residential mortgage 406,682 406,774 (0.1 )% 392,456 3.6 % 384,905 5.7 % Other consumer 9,310 10,992 (15.3 )% 11,616 (19.9 )% 15,543 (40.1 )% Total consumer 415,992 417,766 (0.4 )% 404,072 2.9 % 400,448 3.9 % Loans held-for-investment 2,795,309 2,727,610 2.5 % 2,629,387 6.3 % 2,449,074 14.1 % Loans held-for-sale 8,133 12,101 (32.8 )% 6,292 29.3 % 2,959 174.9 % Total loans $ 2,803,442 $ 2,739,711 2.3 % $ 2,635,679 6.4 % $ 2,452,033 14.3 % SBA loans included in: Loans held-for-investment $ 150,688 $ 147,622 2.1 % $ 146,940 2.6 % $ 144,440 4.3 % Loans held-for-sale $ 8,133 $ 12,101 (32.8 )% $ 6,292 29.3 % $ 2,959 174.9 % ACL on loans $ 33,554 $ 31,942 5.0 % $ 30,628 9.6 % $ 28,747 16.7 % ACL on loans to loans held-for-investment 1.20 % 1.17 % 1.16 % 1.17 % The increase in loans held-for-investment for the current quarter was primarily due to new funding of term loans of $191.9 million and net increase of lines of credit of $12.5 million, partially offset by pay-downs and pay-offs of term loans of $111.6 million and charge-offs of $120 thousand. The increase for the current year-to-date period was primarily due to new funding of term loans of $346.0 million and net increase of lines of credit of $16.8 million, partially offset by pay-downs and pay-offs of term loans of $196.4 million and charge-offs of $473 thousand. The decrease in loans held-for-sale for the current quarter was primarily due to sales of $26.9 million and pay-downs of $122 thousand, partially offset by new funding of $23.1 million. The increase for the current year-to-date period was primarily due to new funding of $45.6 million, partially offset by sales of $43.6 million and pay-downs of $166 thousand. The following table presents a composition of off-balance sheet credit exposure as of the dates indicated: ($ in thousands) 6/30/2025 3/31/2025 % Change 12/31/2024 % Change 6/30/2024 % Change Commercial property $ 10,851 $ 7,810 38.9 % $ 8,888 22.1 % $ 6,309 72.0 % Business property 10,364 11,068 (6.4 )% 11,058 (6.3 )% 11,607 (10.7 )% Multifamily — — — % — — % 1,800 (100.0 )% Construction 8,985 12,312 (27.0 )% 14,423 (37.7 )% 22,030 (59.2 )% Commercial and industrial 342,467 351,802 (2.7 )% 364,731 (6.1 )% 336,121 1.9 % Other consumer 2,274 1,671 36.1 % 1,475 54.2 % 5,192 (56.2 )% Total commitments to extend credit 374,941 384,663 (2.5 )% 400,575 (6.4 )% 383,059 (2.1 )% Letters of credit 7,418 6,795 9.2 % 6,795 9.2 % 6,808 9.0 % Total off-balance sheet credit exposure $ 382,359 $ 391,458 (2.3 )% $ 407,370 (6.1 )% $ 389,867 (1.9 )% Credit Quality The following table presents a summary of non-performing loans and assets, and classified assets as of the dates indicated: ($ in thousands) 6/30/2025 3/31/2025 % Change 12/31/2024 % Change 6/30/2024 % Change Nonaccrual loans Commercial real estate: Commercial property $ 1,497 $ 1,538 (2.7 )% $ 1,851 (19.1 )% $ 1,804 (17.0 )% Business property 1,654 1,485 11.4 % 2,336 (29.2 )% 2,440 (32.2 )% Multifamily — — — % — — % 2,038 (100.0 )% Total commercial real estate 3,151 3,023 4.2 % 4,187 (24.7 )% 6,282 (49.8 )% Commercial and industrial 255 66 286.4 % 79 222.8 % 112 127.7 % Consumer: Residential mortgage 5,526 3,153 75.3 % 403 1,271.2 % 1,100 402.4 % Other consumer — 6 (100.0 )% 24 (100.0 )% 6 (100.0 )% Total consumer 5,526 3,159 74.9 % 427 1,194.1 % 1,106 399.6 % Total nonaccrual loans held-for-investment 8,932 6,248 43.0 % 4,693 90.3 % 7,500 19.1 % Loans past due 90 days or more and still accruing — — — % — — % — — % Non-performing loans (“NPLs”) 8,932 6,248 43.0 % 4,693 90.3 % 7,500 19.1 % NPLs held-for-sale — — — % — — % — — % Total NPLs 8,932 6,248 43.0 % 4,693 90.3 % 7,500 19.1 % Other real estate owned (“OREO”) — — — % — — % — — % Non-performing assets (“NPAs”) $ 8,932 $ 6,248 43.0 % $ 4,693 90.3 % $ 7,500 19.1 % Loans past due and still accruing Past due 30 to 59 days $ 2,327 $ 5,236 (55.6 )% $ 4,599 (49.4 )% $ 2,245 3.7 % Past due 60 to 89 days 226 101 123.8 % 303 (25.4 )% 41 451.2 % Past due 90 days or more — — — % — — % — — % Total loans past due and still accruing $ 2,553 $ 5,337 (52.2 )% 4,902 (47.9 )% $ 2,286 11.7 % Special mention loans $ 6,838 $ 5,010 36.5 % $ 5,034 35.8 % $ 5,080 34.6 % Classified assets Classified loans held-for-investment $ 16,433 $ 8,280 98.5 % $ 6,930 137.1 % $ 9,752 68.5 % Classified loans held-for-sale — — — % — — % — — % OREO — — — % — — % — — % Classified assets $ 16,433 $ 8,280 98.5 % $ 6,930 137.1 % $ 9,752 68.5 % NPLs to loans held-for-investment 0.32 % 0.23 % 0.18 % 0.31 % NPAs to total assets 0.27 % 0.20 % 0.15 % 0.26 % Classified assets to total assets 0.50 % 0.26 % 0.23 % 0.34 % Allowance for Credit Losses The following table presents activity in ACL for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change ACL on loans Balance at beginning of period $ 31,942 $ 30,628 4.3 % $ 28,332 12.7 % $ 30,628 $ 27,533 11.2 % Charge-offs (120 ) (353 ) (66.0 )% — NA (473 ) (185 ) 155.7 % Recoveries 11 76 (85.5 )% 86 (87.2 )% 87 148 (41.2 )% Provision for credit losses on loans 1,721 1,591 8.2 % 329 423.1 % 3,312 1,251 164.7 % Balance at end of period $ 33,554 $ 31,942 5.0 % $ 28,747 16.7 % $ 33,554 $ 28,747 16.7 % ACL on off-balance sheet credit exposure Balance at beginning of period $ 1,197 $ 1,190 0.6 % $ 1,445 (17.2 )% $ 1,190 $ 1,277 (6.8 )% Provision (reversal) for credit losses on off-balance sheet credit exposure 66 7 842.9 % (70 ) NA 73 98 (25.5 )% Balance at end of period $ 1,263 $ 1,197 5.5 % $ 1,375 (8.1 )% $ 1,263 $ 1,375 (8.1 )% Investment Securities Total investment securities were $154.6 million at June 30, 2025, an increase of $6.4 million, or 4.3%, from $148.2 million at March 31, 2025, an increase of $8.3 million, or 5.7%, from $146.3 million at December 31, 2024, and an increase of $6.6 million, or 4.5%, from $148.0 million at June 30, 2024. The increase for the current quarter was primarily due to purchases of $11.9 million and a fair value increase of $797 thousand, partially offset by principal pay-downs of $6.2 million and net premium amortization of $34 thousand. The increase for the current year-to-date period was primarily due to purchases of $14.9 million and a fair value increase of $4.0 million, partially offset by principal pay-downs of $10.5 million and net premium amortization of $65 thousand. Deposits The following table presents the Company’s deposit mix as of the dates indicated: 6/30/2025 3/31/2025 12/31/2024 6/30/2024 ($ in thousands) Amount % to Total Amount % to Total Amount % to Total Amount % to Total Noninterest-bearing demand deposits $ 575,905 20.4 % $ 564,407 20.8 % $ 547,853 20.9 % $ 543,538 22.6 % Interest-bearing deposits Savings 5,695 0.2 % 5,185 0.2 % 5,765 0.2 % 7,821 0.3 % NOW 12,765 0.5 % 15,219 0.6 % 13,761 0.5 % 18,346 0.8 % Retail money market accounts 533,032 18.7 % 492,334 18.0 % 447,360 17.1 % 457,760 18.9 % Brokered money market accounts 1 0.1 % 1 0.1 % 1 0.1 % 1 0.1 % Retail time deposits of $250,000 or less 555,357 19.7 % 532,512 19.6 % 493,644 18.9 % 475,923 19.8 % More than $250,000 649,160 23.0 % 652,458 24.0 % 605,124 23.1 % 559,832 23.2 % State and brokered time deposits 491,000 17.4 % 452,283 16.7 % 502,283 19.2 % 343,033 14.3 % Total interest-bearing deposits 2,247,010 79.6 % 2,149,992 79.2 % 2,067,938 79.1 % 1,862,716 77.4 % Total deposits $ 2,822,915 100.0 % $ 2,714,399 100.0 % $ 2,615,791 100.0 % $ 2,406,254 100.0 % Estimated total deposits not covered by deposit insurance $ 1,164,592 41.3 % $ 1,125,068 41.4 % $ 1,036,451 39.6 % $ 1,020,963 42.4 % Total retail deposits were $2.33 billion at June 30, 2025, an increase of $69.8 million, or 3.1%, from $2.26 billion at March 31, 2025, an increase of $218.4 million, or 10.3%, from $2.11 billion at December 31, 2024, and an increase of $268.7 million, or 13.0%, from $2.06 billion at June 30, 2024. The increase in retail time deposits for the current quarter was primarily due to new accounts of $117.6 million, renewals of the matured accounts of $265.5 million and balance increases of $8.5 million, partially offset by matured and closed accounts of $372.0 million. The increase for the current year-to-date period was primarily due to new accounts of $279.8 million, renewals of the matured accounts of $604.5 million and balance increases of $24.3 million, partially offset by matured and closed accounts of $802.8 million. Liquidity The following table presents a summary of the Company’s liquidity position as of the dates indicated: ($ in thousands) 6/30/2025 12/31/2024 % Change Cash and cash equivalents $ 263,567 $ 198,792 32.6 % Cash and cash equivalents to total assets 8.0 % 6.5 % Available borrowing capacity FHLB advances $ 750,671 $ 722,439 3.9 % Federal Reserve Discount Window 774,881 586,525 32.1 % Overnight federal funds lines 65,000 50,000 30.0 % Total $ 1,590,551 $ 1,358,964 17.0 % Total available borrowing capacity to total assets 48.1 % 44.4 % Shareholders’ Equity Shareholders’ equity was $376.5 million at June 30, 2025, an increase of $5.6 million, or 1.5%, from $370.9 million at March 31, 2025, an increase of $12.7 million, or 3.5%, from $363.8 million at December 31, 2024, and an increase of $23.0 million, or 6.5%, from $353.5 million at June 30, 2024. The increase for the current quarter was primarily due to net income, a decrease in accumulated other comprehensive loss of $516 thousand and proceeds from stock option exercises of $534 thousand, partially offset by repurchases of common stock of $1.8 million, cash dividends declared on common stock of $2.9 million and preferred stock dividends of $87 thousand. The increase for the current year-to-date period was primarily due to net income, a decrease in accumulated other comprehensive loss of $2.8 million and proceeds from stock option exercises of $1.2 million, partially offset by repurchases of common stock of $2.7 million, cash dividends declared on common stock of $5.7 million and preferred stock dividends of $127 thousand. Stock Repurchases During the current year-to-date period, the Company repurchased and retired 149,304 shares of common stock at a weighted-average price of $18.24, totaling $2.7 million. In 2024, the Company repurchased and retired 14,947 shares of common stock at a weighted-average price of $14.88, totaling $222 thousand. As of June 30, 2025, the Company is authorized to purchase 428,473 additional shares under its current stock repurchase program, which expires on August 2, 2025. Series C Preferred Stock The Company began paying quarterly dividends on the Series C Preferred Stock in the second quarter of 2024. The Company paid dividends of $87 thousand and $127 thousand for the current quarter and year-to-date period, respectively. Capital Ratios The following table presents capital ratios for the Company and the Bank as of the dates indicated: 6/30/2025 3/31/2025 12/31/2024 6/30/2024 Well Capitalized Minimum Requirements PCB Bancorp Common tier 1 capital (to risk-weighted assets) 11.14 % 11.25 % 11.44 % 11.91 % N/A Total capital (to risk-weighted assets) 14.84 % 14.98 % 15.24 % 15.94 % N/A Tier 1 capital (to risk-weighted assets) 13.60 % 13.77 % 14.04 % 14.71 % N/A Tier 1 capital (to average assets) 11.81 % 12.14 % 12.45 % 12.66 % N/A PCB Bank Common tier 1 capital (to risk-weighted assets) 13.23 % 13.42 % 13.72 % 14.38 % 6.5 % Total capital (to risk-weighted assets) 14.47 % 14.63 % 14.92 % 15.60 % 10.0 % Tier 1 capital (to risk-weighted assets) 13.23 % 13.42 % 13.72 % 14.38 % 8.0 % Tier 1 capital (to average assets) 11.50 % 11.82 % 12.16 % 12.37 % 5.0 % About PCB Bancorp PCB Bancorp is the bank holding company for PCB Bank, a California state chartered bank, offering a full suite of commercial banking services to small to medium-sized businesses, individuals and professionals, primarily in Southern California, and predominantly in Korean-American and other minority communities. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to the health of the national and local economies including the impact on the Company and its customers resulting from any adverse developments in real estate markets, inflation levels and interest rates; the impacts of the restatement of our consolidated financial statements at and for the quarter ended March 31, 2025; material weaknesses in the Company’s internal control over financial reporting that we have identified or may identify; the impacts of sanctions, tariffs and other trade policies of the United States and its global trading partners and tensions related to the same; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect the Company’s liquidity, financial performance and stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber security risks; the Company's ability to successfully deploy new technology; acquisitions and branch and loan production office expansions; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; litigation costs and outcomes; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, wildfires and other disasters, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other filings the Company makes with the SEC, which are available without charge at the SEC’s website (http://www.sec.gov) and on the investor relations section of the Company’s website at www.mypcbbank.com. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law PCB Bancorp and Subsidiary Consolidated Balance Sheets (Unaudited) ($ in thousands, except share and per share data) 6/30/2025 3/31/2025 % Change 12/31/2024 % Change 6/30/2024 % Change Assets Cash and due from banks $ 41,614 $ 28,852 44.2 % $ 27,100 53.6 % $ 23,247 79.0 % Interest-bearing deposits in other financial institutions 221,953 185,496 19.7 % 171,692 29.3 % 154,383 43.8 % Total cash and cash equivalents 263,567 214,348 23.0 % 198,792 32.6 % 177,630 48.4 % Securities available-for-sale, at fair value 154,620 148,190 4.3 % 146,349 5.7 % 148,009 4.5 % Loans held-for-sale 8,133 12,101 (32.8 )% 6,292 29.3 % 2,959 174.9 % Loans held-for-investment 2,795,309 2,727,610 2.5 % 2,629,387 6.3 % 2,449,074 14.1 % Allowance for credit losses on loans (33,554 ) (31,942 ) 5.0 % (30,628 ) 9.6 % (28,747 ) 16.7 % Net loans held-for-investment 2,761,755 2,695,668 2.5 % 2,598,759 6.3 % 2,420,327 14.1 % Premises and equipment, net 8,942 8,420 6.2 % 8,280 8.0 % 8,923 0.2 % Federal Home Loan Bank and other bank stock 14,978 14,042 6.7 % 14,042 6.7 % 14,042 6.7 % Bank-owned life insurance 32,266 32,013 0.8 % 31,766 1.6 % 31,281 3.1 % Deferred tax assets, net 7,032 6,736 4.4 % 7,249 (3.0 )% — NA Servicing assets 5,756 5,631 2.2 % 5,837 (1.4 )% 6,205 (7.2 )% Operating lease assets 17,861 17,779 0.5 % 17,254 3.5 % 17,609 1.4 % Accrued interest receivable 10,879 10,967 (0.8 )% 10,466 3.9 % 10,464 4.0 % Other assets 19,800 17,863 10.8 % 18,885 4.8 % 15,515 27.6 % Total assets $ 3,305,589 $ 3,183,758 3.8 % $ 3,063,971 7.9 % $ 2,852,964 15.9 % Liabilities Deposits Noninterest-bearing demand $ 575,905 $ 564,407 2.0 % $ 547,853 5.1 % $ 543,538 6.0 % Savings, NOW and money market accounts 551,493 512,739 7.6 % 466,887 18.1 % 483,928 14.0 % Time deposits of $250,000 or less 986,357 924,795 6.7 % 935,927 5.4 % 758,956 30.0 % Time deposits of more than $250,000 709,160 712,458 (0.5 )% 665,124 6.6 % 619,832 14.4 % Total deposits 2,822,915 2,714,399 4.0 % 2,615,791 7.9 % 2,406,254 17.3 % Other short-term borrowings — — — % 15,000 (100.0 )% 4,000 (100.0 )% Federal Home Loan Bank advances 45,000 30,000 50.0 % — NA 32,000 40.6 % Deferred tax liabilities, net — — — % — — % 577 (100.0 )% Operating lease liabilities 19,652 19,465 1.0 % 18,671 5.3 % 18,939 3.8 % Accrued interest payable and other liabilities 41,522 49,030 (15.3 )% 50,695 (18.1 )% 37,725 10.1 % Total liabilities 2,929,089 2,812,894 4.1 % 2,700,157 8.5 % 2,499,495 17.2 % Commitments and contingent liabilities Shareholders’ equity Preferred stock 69,141 69,141 — % 69,141 — % 69,141 — % Common stock 142,152 143,156 (0.7 )% 143,195 (0.7 )% 142,698 (0.4 )% Retained earnings 171,735 165,611 3.7 % 160,797 6.8 % 151,781 13.1 % Accumulated other comprehensive loss, net (6,528 ) (7,044 ) (7.3 )% (9,319 ) (29.9 )% (10,151 ) (35.7 )% Total shareholders’ equity 376,500 370,864 1.5 % 363,814 3.5 % 353,469 6.5 % Total liabilities and shareholders’ equity $ 3,305,589 $ 3,183,758 3.8 % $ 3,063,971 7.9 % $ 2,852,964 15.9 % Outstanding common shares 14,336,602 14,387,176 14,380,651 14,254,024 Book value per common share(1) $ 26.26 $ 25.78 $ 25.30 $ 24.80 TCE per common share (2) $ 21.44 $ 20.97 $ 20.49 $ 19.95 Total loan to total deposit ratio 99.31 % 100.93 % 100.76 % 101.90 % Noninterest-bearing deposits to total deposits 20.40 % 20.79 % 20.94 % 22.59 % (1) The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company had no intangible equity components for the presented periods. (2) Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. PCB Bancorp and Subsidiary Consolidated Statements of Income (Unaudited) ($ in thousands, except share and per share data) Three Months Ended Six Months Ended 6/30/2025 3/31/2025 % Change 6/30/2024 % Change 6/30/2025 6/30/2024 % Change Interest and dividend income Loans, including fees $ 45,478 $ 43,026 5.7 % $ 40,626 11.9 % $ 88,504 $ 79,877 10.8 % Investment securities 1,462 1,408 3.8 % 1,310 11.6 % 2,870 2,556 12.3 % Other interest-earning assets 2,368 2,458 (3.7 )% 3,009 (21.3 )% 4,826 6,067 (20.5 )% Total interest income 49,308 46,892 5.2 % 44,945 9.7 % 96,200 88,500 8.7 % Interest expense Deposits 22,505 22,564 (0.3 )% 22,536 (0.1 )% 45,069 44,503 1.3 % Other borrowings 813 45 1,706.7 % 674 20.6 % 858 1,263 (32.1 )% Total interest expense 23,318 22,609 3.1 % 23,210 0.5 % 45,927 45,766 0.4 % Net interest income 25,990 24,283 7.0 % 21,735 19.6 % 50,273 42,734 17.6 % Provision for credit losses 1,787 1,598 11.8 % 259 590.0 % 3,385 1,349 150.9 % Net interest income after provision for credit losses 24,203 22,685 6.7 % 21,476 12.7 % 46,888 41,385 13.3 % Noninterest income Gain on sale of loans 1,465 887 65.2 % 763 92.0 % 2,352 1,841 27.8 % Service charges and fees on deposits 375 372 0.8 % 364 3.0 % 747 742 0.7 % Loan servicing income 760 725 4.8 % 799 (4.9 )% 1,485 1,718 (13.6 )% BOLI income 253 247 2.4 % 236 7.2 % 500 464 7.8 % Other income 444 349 27.2 % 323 37.5 % 793 665 19.2 % Total noninterest income 3,297 2,580 27.8 % 2,485 32.7 % 5,877 5,430 8.2 % Noninterest expense Salaries and employee benefits 8,844 9,075 (2.5 )% 9,225 (4.1 )% 17,919 18,443 (2.8 )% Occupancy and equipment 2,379 2,289 3.9 % 2,300 3.4 % 4,668 4,658 0.2 % Professional fees 805 628 28.2 % 973 (17.3 )% 1,433 2,057 (30.3 )% Marketing and business promotion 597 243 145.7 % 318 87.7 % 840 637 31.9 % Data processing 317 333 (4.8 )% 495 (36.0 )% 650 897 (27.5 )% Director fees and expenses 225 226 (0.4 )% 221 1.8 % 451 453 (0.4 )% Regulatory assessments 358 344 4.1 % 327 9.5 % 702 625 12.3 % Other expense 1,304 1,336 (2.4 )% 1,316 (0.9 )% 2,640 3,757 (29.7 )% Total noninterest expense 14,829 14,474 2.5 % 15,175 (2.3 )% 29,303 31,527 (7.1 )% Income before income taxes 12,671 10,791 17.4 % 8,786 44.2 % 23,462 15,288 53.5 % Income tax expense 3,600 3,056 17.8 % 2,505 43.7 % 6,656 4,322 54.0 % Net income 9,071 7,735 17.3 % 6,281 44.4 % 16,806 10,966 53.3 % Preferred stock dividends 87 40 117.5 % 142 (38.7 )% 127 142 (10.6 )% Net income available to common shareholders $ 8,984 $ 7,695 16.8 % $ 6,139 46.3 % $ 16,679 $ 10,824 54.1 % Earnings per common share Basic $ 0.63 $ 0.53 $ 0.43 $ 1.16 $ 0.76 Diluted $ 0.62 $ 0.53 $ 0.43 $ 1.15 $ 0.75 Average common shares Basic 14,213,032 14,272,267 14,237,083 14,242,486 14,236,251 Diluted 14,326,011 14,403,769 14,312,949 14,364,995 14,323,171 Dividend paid per common share $ 0.20 $ 0.20 $ 0.18 $ 0.40 $ 0.36 ROAA(1) 1.13 % 1.01 % 0.89 % 1.07 % 0.78 % ROAE (1) 9.76 % 8.53 % 7.19 % 9.16 % 6.29 % ROATCE(1), (2) 11.87 % 10.45 % 8.75 % 11.17 % 7.73 % Efficiency ratio (3) 50.63 % 53.88 % 62.65 % 52.19 % 65.46 % (1) Ratios are presented on an annualized basis. (2) Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. (3) The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income. PCB Bancorp and Subsidiary Average Balance, Average Yield, and Average Rate (Unaudited) ($ in thousands) Three Months Ended 6/30/2025 3/31/2025 6/30/2024 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) $ 2,782,200 $ 45,478 6.56 % $ 2,649,037 $ 43,026 6.59 % $ 2,414,824 $ 40,626 6.77 % Mortgage-backed securities 117,987 1,145 3.89 % 112,825 1,075 3.86 % 104,538 911 3.50 % Collateralized mortgage obligation 20,616 203 3.95 % 21,028 210 4.05 % 22,992 249 4.36 % SBA loan pool securities 5,368 46 3.44 % 5,927 54 3.69 % 6,891 74 4.32 % Municipal bonds(2) 2,379 21 3.54 % 2,424 22 3.68 % 3,238 29 3.60 % Corporate bonds 4,705 47 4.01 % 4,336 47 4.40 % 4,157 47 4.55 % Other interest-earning assets 200,875 2,368 4.73 % 209,375 2,458 4.76 % 213,428 3,009 5.67 % Total interest-earning assets 3,134,130 49,308 6.31 % 3,004,952 46,892 6.33 % 2,770,068 44,945 6.53 % Noninterest-earning assets Cash and due from banks 23,267 24,656 23,057 ACL on loans (31,932 ) (30,676 ) (28,372 ) Other assets 100,930 98,584 88,399 Total noninterest-earning assets 92,265 92,564 83,084 Total assets $ 3,226,395 $ 3,097,516 $ 2,853,152 Liabilities and Shareholders’ Equity Interest-bearing liabilities Deposits NOW and money market accounts $ 532,842 4,772 3.59 % $ 483,927 4,297 3.60 % $ 473,557 4,876 4.14 % Savings 5,334 4 0.30 % 5,612 3 0.22 % 6,899 4 0.23 % Time deposits 1,649,034 17,729 4.31 % 1,650,662 18,264 4.49 % 1,383,167 17,656 5.13 % Total interest-bearing deposits 2,187,210 22,505 4.13 % 2,140,201 22,564 4.28 % 1,863,623 22,536 4.86 % Other borrowings 71,286 813 4.57 % 3,933 45 4.64 % 48,462 674 5.59 % Total interest-bearing liabilities 2,258,496 23,318 4.14 % 2,144,134 22,609 4.28 % 1,912,085 23,210 4.88 % Noninterest-bearing liabilities Noninterest-bearing demand 533,530 516,630 535,508 Other liabilities 61,740 69,034 54,338 Total noninterest-bearing liabilities 595,270 585,664 589,846 Total liabilities 2,853,766 2,729,798 2,501,931 Total shareholders’ equity 372,629 367,718 351,221 Total liabilities and shareholders’ equity $ 3,226,395 $ 3,097,516 $ 2,853,152 Net interest income $ 25,990 $ 24,283 $ 21,735 Net interest spread (3) 2.17 % 2.05 % 1.65 % Net interest margin(4) 3.33 % 3.28 % 3.16 % Total deposits $ 2,720,740 $ 22,505 3.32 % $ 2,656,831 $ 22,564 3.44 % $ 2,399,131 $ 22,536 3.78 % Total funding(5) $ 2,792,026 $ 23,318 3.35 % $ 2,660,764 $ 22,609 3.45 % $ 2,447,593 $ 23,210 3.81 % (1) Total loans include both loans held-for-sale and loans held-for-investment. (2) The yield on municipal bonds has not been computed on a tax-equivalent basis. (3) Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets. (4) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. (5) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding. (6) Annualized. PCB Bancorp and Subsidiary Average Balance, Average Yield, and Average Rate (Unaudited) ($ in thousands) Six Months Ended 6/30/2025 6/30/2024 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) $ 2,715,986 $ 88,504 6.57 % $ 2,392,426 $ 79,877 6.71 % Mortgage-backed securities 115,420 2,220 3.88 % 103,195 1,750 3.41 % Collateralized mortgage obligation 20,821 413 4.00 % 23,377 503 4.33 % SBA loan pool securities 5,646 100 3.57 % 7,104 152 4.30 % Municipal bonds(2) 2,402 43 3.61 % 3,269 57 3.51 % Corporate bonds 4,521 94 4.19 % 4,192 94 4.51 % Other interest-earning assets 205,101 4,826 4.74 % 215,215 6,067 5.67 % Total interest-earning assets 3,069,897 96,200 6.32 % 2,748,778 88,500 6.47 % Noninterest-earning assets Cash and due from banks 23,958 22,211 ACL on loans (31,308 ) (27,975 ) Other assets 99,763 88,592 Total noninterest-earning assets 92,413 82,828 Total assets $ 3,162,310 $ 2,831,606 Liabilities and Shareholders’ Equity Interest-bearing liabilities Deposits NOW and money market accounts $ 508,520 9,069 3.60 % $ 463,679 9,541 4.14 % Savings 5,472 7 0.26 % 6,548 8 0.25 % Time deposits 1,649,844 35,993 4.40 % 1,375,190 34,954 5.11 % Total interest-bearing deposits 2,163,836 45,069 4.20 % 1,845,417 44,503 4.85 % Other borrowings 37,796 858 4.58 % 45,324 1,263 5.60 % Total interest-bearing liabilities 2,201,632 45,927 4.21 % 1,890,741 45,766 4.87 % Noninterest-bearing liabilities Noninterest-bearing demand 525,126 539,159 Other liabilities 65,368 51,123 Total noninterest-bearing liabilities 590,494 590,282 Total liabilities 2,792,126 2,481,023 Total shareholders’ equity 370,184 350,583 Total liabilities and shareholders’ equity $ 3,162,310 $ 2,831,606 Net interest income $ 50,273 $ 42,734 Net interest spread (3) 2.11 % 1.60 % Net interest margin(4) 3.30 % 3.13 % Total deposits $ 2,688,962 $ 45,069 3.38 % $ 2,384,576 $ 44,503 3.75 % Total funding(5) $ 2,726,758 $ 45,927 3.40 % $ 2,429,900 $ 45,766 3.79 % (1) Total loans include both loans held-for-sale and loans held-for-investment. (2) The yield on municipal bonds has not been computed on a tax-equivalent basis. (3) Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets. (4) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets. (5) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding. (6) Annualized. PCB Bancorp and Subsidiary Non-GAAP Financial Measures ($ in thousands) Return on average tangible common equity, tangible common equity per common share and tangible common equity to total assets ratios The Company's TCE is calculated by subtracting preferred stock from shareholders’ equity. The Company had no intangible assets for the presented periods. ROATCE, TCE per common share, and TCE to total assets constitute supplemental financial information determined by methods other than in accordance with Generally Accepted Accounting Principles, or GAAP. These non-GAAP financial measures are used by management in its analysis of the Company's performance. These non-GAAP financial measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP financial measures with financial measures defined by GAAP. ($ in thousands) Three Months Ended Six Months Ended 6/30/2025 3/31/2025 6/30/2024 6/30/2025 6/30/2024 Average total shareholders' equity (a) $ 372,629 $ 367,718 $ 351,221 $ 370,184 $ 350,583 Less: average preferred stock (b) 69,141 69,141 69,141 69,141 69,141 Average TCE (c)=(a)-(b) 303,488 298,577 282,080 301,043 281,442 Net income (d) $ 9,071 $ 7,735 $ 6,281 $ 16,806 $ 10,966 ROAE(1) (d)/(a) 9.76 % 8.53 % 7.19 % 9.16 % 6.29 % Net income available to common shareholders (e) 8,984 7,695 6,139 16,679 10,824 ROATCE(1) (e)/(c) 11.87 % 10.45 % 8.75 % 11.17 % 7.73 % (1) Annualized. ($ in thousands, except per share data) 6/30/2025 3/31/2025 12/31/2024 6/30/2024 Total shareholders' equity (a) $ 376,500 $ 370,864 $ 363,814 $ 353,469 Less: preferred stock (b) 69,141 69,141 69,141 69,141 TCE (c)=(a)-(b) 307,359 301,723 294,673 284,328 Outstanding common shares (d) 14,336,602 14,387,176 14,380,651 14,254,024 Book value per common share (a)/(d) $ 26.26 $ 25.78 $ 25.30 $ 24.80 TCE per common share (c)/(d) 21.44 20.97 20.49 19.95 Total assets (e) $ 3,305,589 $ 3,183,758 $ 3,063,971 $ 2,852,964 Total shareholders' equity to total assets (a)/(e) 11.39 % 11.65 % 11.87 % 12.39 % TCE to total assets (c)/(e) 9.30 % 9.48 % 9.62 % 9.97 % Timothy Chang Executive Vice President & Chief Financial Officer 213-210-2000 Source: PCB Bancorp