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PCB Bancorp Reports Earnings for Q3 2024

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PCB Bancorp reported Q3 2024 net income of $7.5 million, or $0.52 per diluted share, up from $6.1 million ($0.43/share) in Q2 2024 and $7.0 million ($0.49/share) in Q3 2023. Net interest income was $22.7 million with a net interest margin of 3.25%. Total assets reached $2.89 billion, up 12.5% year-over-year. Loans held-for-investment increased to $2.47 billion, up 13.8% from Q3 2023, while total deposits grew to $2.46 billion, a 12.2% year-over-year increase. The bank maintained an Allowance for Credit Losses ratio of 1.17%.

PCB Bancorp ha riportato un reddito netto per il terzo trimestre del 2024 di 7,5 milioni di dollari, ovvero 0,52 dollari per azione diluita, in aumento rispetto ai 6,1 milioni di dollari (0,43 dollari/azione) del secondo trimestre del 2024 e ai 7,0 milioni di dollari (0,49 dollari/azione) del terzo trimestre del 2023. Il reddito netto da interessi è stato di 22,7 milioni di dollari, con un margine d'interesse netto del 3,25%. Il totale attivo ha raggiunto i 2,89 miliardi di dollari, con un incremento del 12,5% rispetto all'anno precedente. I prestiti detenuti per investimento sono aumentati a 2,47 miliardi di dollari, in crescita del 13,8% rispetto al terzo trimestre del 2023, mentre il totale dei depositi è aumentato a 2,46 miliardi di dollari, segnando un incremento del 12,2% rispetto all'anno precedente. La banca ha mantenuto un rapporto di Accantonamento per Perdite su Crediti dell'1,17%.

PCB Bancorp reportó un ingreso neto de 7.5 millones de dólares en el tercer trimestre de 2024, o 0.52 dólares por acción diluida, un aumento desde los 6.1 millones de dólares (0.43 dólares/acción) en el segundo trimestre de 2024 y 7.0 millones de dólares (0.49 dólares/acción) en el tercer trimestre de 2023. Los ingresos netos por intereses fueron de 22.7 millones de dólares con un margen de interés neto del 3.25%. El total de activos alcanzó los 2.89 mil millones de dólares, un aumento del 12.5% interanual. Los préstamos mantenidos para inversión aumentaron a 2.47 mil millones de dólares, un incremento del 13.8% desde el tercer trimestre de 2023, mientras que los depósitos totales crecieron a 2.46 mil millones de dólares, un aumento del 12.2% interanual. El banco mantuvo un ratio de Provisión para Pérdidas Crediticias del 1.17%.

PCB Bancorp는 2024년 3분기 순이익이 750만 달러, 즉 희석 주당 0.52 달러로, 2024년 2분기의 610만 달러(주당 0.43 달러) 및 2023년 3분기의 700만 달러(주당 0.49 달러)에서 증가했다고 보고했습니다. 순이자 수익은 2270만 달러로, 순이자 마진은 3.25%였습니다. 총 자산은 28억 9천만 달러에 도달하여 전년 대비 12.5% 증가했습니다. 투자를 위한 대출은 24억 7천만 달러로 증가하여 2023년 3분기보다 13.8% 증가했으며, 총 예금은 24억 6천만 달러로, 전년 대비 12.2% 증가했습니다. 은행은 신용 손실 충당금 비율을 1.17%로 유지했습니다.

PCB Bancorp a déclaré un revenu net pour le troisième trimestre 2024 de 7,5 millions de dollars, soit 0,52 dollar par action diluée, en hausse par rapport à 6,1 millions de dollars (0,43 dollar/action) au deuxième trimestre 2024 et 7,0 millions de dollars (0,49 dollar/action) au troisième trimestre 2023. Les revenus nets d'intérêts étaient de 22,7 millions de dollars, avec une marge d'intérêt nette de 3,25%. Le total des actifs a atteint 2,89 milliards de dollars, en hausse de 12,5% par rapport à l'année précédente. Les prêts détenus à des fins d'investissement ont augmenté pour atteindre 2,47 milliards de dollars, en hausse de 13,8% par rapport au troisième trimestre 2023, tandis que les dépôts totaux ont crû pour atteindre 2,46 milliards de dollars, soit une augmentation de 12,2% d'une année sur l'autre. La banque a maintenu un ratio de provision pour pertes de crédit de 1,17%.

PCB Bancorp meldete für das 3. Quartal 2024 ein Nettoergebnis von 7,5 Millionen Dollar, oder 0,52 Dollar pro verwässerter Aktie, was einem Anstieg gegenüber 6,1 Millionen Dollar (0,43 Dollar/Aktie) im 2. Quartal 2024 und 7,0 Millionen Dollar (0,49 Dollar/Aktie) im 3. Quartal 2023 entspricht. Die Nettozinseinnahmen betrugen 22,7 Millionen Dollar mit einer Nettozinsspanne von 3,25%. Die Gesamtaktiva erreichten 2,89 Milliarden Dollar, was einem Anstieg von 12,5% im Vergleich zum Vorjahr entspricht. Halten von Investitionskrediten stiegen auf 2,47 Milliarden Dollar, einem Anstieg von 13,8% seit dem 3. Quartal 2023, während die Gesamteinlagen auf 2,46 Milliarden Dollar wuchsen, was einem Anstieg von 12,2% im Vergleich zum Vorjahr entspricht. Die Bank hielt eine Rückstellung für Kreditrisiken von 1,17% aufrecht.

Positive
  • Net income increased 21.6% quarter-over-quarter to $7.5 million
  • Total assets grew 12.5% year-over-year to $2.89 billion
  • Loans held-for-investment increased 13.8% year-over-year to $2.47 billion
  • Total deposits grew 12.2% year-over-year to $2.46 billion
  • Net interest margin improved to 3.25% from 3.16% in previous quarter
Negative
  • Nine-month net income decreased 24.3% year-over-year to $18.78 million
  • Year-to-date noninterest expense increased 10.9% to $46.13 million
  • Net interest margin declined from 3.57% in Q3 2023 to 3.25% in Q3 2024

Insights

PCB Bancorp delivered a solid Q3 2024 performance with net income of $7.5 million ($0.52 per share), up 21.6% from Q2 2024. Key metrics show healthy business momentum:

  • Net interest margin improved to 3.25% from 3.16% in Q2
  • Loan portfolio grew 13.8% YoY to $2.47 billion
  • Deposits increased 12.2% YoY to $2.46 billion
  • Credit quality remains strong with ACL ratio stable at 1.17%

The bank's core business fundamentals are solid with good loan growth, expanding margins and well-controlled credit quality. Strategic expansion of footprint and branch optimization initiatives position PCB for continued growth. Rising interest rates have helped boost net interest income despite higher funding costs.

LOS ANGELES--(BUSINESS WIRE)-- 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.”

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.

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.

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.

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.

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.

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

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

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

%

 

 

 

 

 

 

 

 

 

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 %

 

 

 

 

 

 

 

 

 

 

 

About PCB Bancorp

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

Cautionary Note Regarding Forward-Looking Statements

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

PCB Bancorp and Subsidiary

Consolidated Balance Sheets (Unaudited)

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

 

 

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.

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.

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.

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.

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

%

 

 

 

 

 

 

 

 

 

 

 

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

Source: PCB Bancorp

FAQ

What was PCB Bancorp's earnings per share in Q3 2024?

PCB Bancorp (PCB) reported earnings of $0.52 per diluted share in Q3 2024.

How much did PCB's total deposits grow in Q3 2024?

PCB's total deposits increased by $53.4 million (2.2%) to $2.46 billion in Q3 2024 compared to Q2 2024.

What was PCB's net interest margin in Q3 2024?

PCB's net interest margin was 3.25% in Q3 2024, up from 3.16% in Q2 2024 but down from 3.57% in Q3 2023.

How much did PCB's total assets grow year-over-year?

PCB's total assets grew by $321.9 million or 12.5% year-over-year to $2.89 billion in Q3 2024.

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