PCB Bancorp Reports Earnings for Q4 2024 and Full Year 2024

Rhea-AI Summary

PCB Bancorp (NASDAQ: PCB) reported Q4 2024 net income of $6.7 million ($0.46 per diluted share), compared to $7.5 million ($0.52) in Q3 2024 and $5.9 million ($0.41) in Q4 2023. Full-year 2024 net income was $25.0 million ($1.74 per share), down from $30.7 million ($2.12) in 2023.

Key Q4 metrics include: net interest income of $23.2 million (up 2.0% QoQ), net interest margin of 3.18% (down from 3.25% QoQ), and provision for credit losses of $2.0 million. Total assets reached $3.06 billion (up 6.0% QoQ), with loans held-for-investment at $2.63 billion (up 6.6% QoQ) and total deposits at $2.62 billion (up 6.3% QoQ).

Positive

• Net interest income increased 2.0% QoQ to $23.2 million
• Total assets grew 9.8% YoY to $3.06 billion
• Loans held-for-investment increased 13.2% YoY to $2.63 billion
• Total deposits rose 11.2% YoY to $2.62 billion
• Maintained efficiency ratio of 53% in Q4

Negative

• Q4 net income decreased 10.5% QoQ to $6.7 million
• Full-year net income declined 18.7% YoY to $25.0 million
• Net interest margin decreased to 3.18% from 3.25% QoQ
• Provision for credit losses increased to $2.0 million from $50 thousand QoQ

Insights

Financial Analyst

PCB Bancorp's Q4 2024 performance reveals a strategic balance between growth and risk management in a challenging rate environment. The bank's 13.2% year-over-year loan growth and 11.2% deposit growth demonstrate strong fundamental execution, though profitability metrics show some pressure.

Key performance indicators warrant attention:

• The efficiency ratio improvement to 53.02% from 59.23% YoY reflects successful cost management initiatives, particularly through branch network optimization
• The increased provision for credit losses ($2.0M vs $50K QoQ) signals prudent risk management amid portfolio growth
• Net interest margin compression to 3.18% from 3.40% YoY indicates ongoing challenges in the rate environment, though the bank has maintained relatively stable funding costs

The loan portfolio composition shows strategic diversification with commercial real estate at 66.6% of total loans, commercial and industrial at 18% and consumer loans at 15.4%. This mix, combined with a conservative ACL ratio of 1.16%, positions the bank well for potential economic headwinds.

The bank's capital position remains robust with a Tier 1 leverage ratio of 12.45%, providing ample capacity for continued growth while maintaining a buffer against potential stress scenarios. The successful maintenance of credit quality metrics despite significant portfolio growth suggests effective underwriting standards and risk management practices.

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 $6.7 million, or $0.46 per diluted common share, for the fourth quarter of 2024, compared with $7.5 million, or $0.52 per diluted common share, for the previous quarter and $5.9 million, or $0.41 per diluted common share, for the year-ago quarter. For 2024, net income available to common shareholders was $25.0 million, or $1.74 per diluted common share, compared with $30.7 million, or $2.12 per diluted common share, for the previous year.

Q4 2024 and Full Year Highlights

• Net income available to common shareholders totaled $6.7 million, or $0.46 per diluted common share, for the current quarter and $25.0 million, or $1.74 per diluted common share, for the current year;
• Provision for credit losses was $2.0 million for the current quarter compared with $50 thousand for the previous quarter and $1.7 million for the year-ago quarter. For the current year, provision (reversal) for credit losses was $3.4 million compared with $(132) thousand for the previous year;
• Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.16% at December 31, 2024 compared with 1.17% at September 30, 2024 and 1.19% at December 31, 2023;
• Net interest income was $23.2 million for the current quarter compared with $22.7 million for the previous quarter and $21.9 million for the year-ago quarter. Net interest margin was 3.18% for the current quarter compared with 3.25% for the previous quarter and 3.40% for the year-ago quarter. For the current year, net interest income and net interest margin were $88.6 million and 3.17%, respectively, compared with $88.5 million and 3.57%, respectively, for the previous year;
• Gain on sale of loans was $1.2 million for the current quarter compared with $750 thousand for the previous quarter and $803 thousand for the year-ago quarter. For the current year, gain on sale of loans was $3.8 million compared with $3.6 million for the previous year;
• Total assets were $3.06 billion at December 31, 2024, an increase of $174.1 million, or 6.0%, from $2.89 billion at September 30, 2024 and an increase of $274.5 million, or 9.8%, from $2.79 billion at December 31, 2023;
• Loans held-for-investment were $2.63 billion at December 31, 2024, an increase of $163.2 million, or 6.6%, from $2.47 billion at September 30, 2024 and an increase of $305.9 million, or 13.2%, from $2.32 billion at December 31, 2023; and
• Total deposits were $2.62 billion at December 31, 2024, an increase of $156.1 million, or 6.3%, from $2.46 billion at September 30, 2024 and an increase of $264.2 million, or 11.2%, from $2.35 billion at December 31, 2023.

Henry Kim, President and CEO, commented, “Over the past few weeks, we are saddened by the unspeakable devastation caused by the wildfires in Southern California. We are currently in the process of determining the overall impact on our customers. Fortunately, our assessment of the current situation does not indicate any significant losses to any of our customers at this time.”

Mr. Kim continued, “Our strong fourth quarter results reflect strong loan growth combined with another solid credit metrics. Additionally, we successfully maintained an efficiency ratio of 53% for the quarter that was primarily driven by our bank-wide cost saving measures and ongoing branch network optimizations.”

“During the past couple of years, we made significant steps in strengthening our balance sheet and core earnings capacity. As we look ahead in 2025 and beyond, we believe we are well positioned to generate further growth in balance sheet, continue to operate efficiently while expanding our branch network, and expand profitability to create ongoing value for our shareholders.”

Financial Highlights (Unaudited)

($ in thousands, except per share data)		Three Months Ended																		Year Ended
		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
Net income		$	7,030			$	7,814			(10.0	)%		$	5,908			19.0	%		$	25,810			$	30,705			(15.9	)%
Net income available to common shareholders		$	6,684			$	7,468			(10.5	)%		$	5,908			13.1	%		$	24,976			$	30,705			(18.7	)%
Diluted earnings per common share		$	0.46			$	0.52			(11.5	)%		$	0.41			12.2	%		$	1.74			$	2.12			(17.9	)%
Net interest income		$	23,164			$	22,719			2.0	%		$	21,924			5.7	%		$	88,617			$	88,504			0.1	%
Provision (reversal) for credit losses			2,002				50			3,904.0	%			1,698			17.9	%			3,401				(132	)		NM
Noninterest income			3,043				2,620			16.1	%			2,503			21.6	%			11,093				10,683			3.8	%
Noninterest expense			13,894				14,602			(4.8	)%			14,469			(4.0	)%			60,023				56,057			7.1	%
Return on average assets (1)			0.94	%			1.08	%						0.89	%						0.90	%			1.20	%
Return on average shareholders’ equity (1)			7.69	%			8.70	%						6.82	%						7.26	%			9.02	%
Return on average tangible common equity (“TCE”) (1),(2)			9.02	%			10.31	%						8.54	%						8.72	%			11.31	%
Net interest margin (1)			3.18	%			3.25	%						3.40	%						3.17	%			3.57	%
Efficiency ratio (3)			53.02	%			57.63	%						59.23	%						60.20	%			56.52	%

($ in thousands, except per share data)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change
Total assets		$	3,063,971			$	2,889,833			6.0	%		$	2,789,506			9.8	%
Net loans held-for-investment			2,598,759				2,437,244			6.6	%			2,295,919			13.2	%
Total deposits			2,615,791				2,459,682			6.3	%			2,351,612			11.2	%
Book value per common share (4)		$	25.30			$	25.39						$	24.46
TCE per common share (2)		$	20.49			$	20.55						$	19.62
Tier 1 leverage ratio (consolidated)			12.45	%			12.79	%						13.43	%
Total shareholders’ equity to total assets			11.87	%			12.54	%						12.51	%
TCE to total assets (2), (5)			9.62	%			10.14	%						10.03	%

(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																		Year Ended
($ in thousands)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
Interest income/expense on
Loans		$	42,309			$	42,115			0.5	%		$	37,189			13.8	%		$	164,301			$	136,029			20.8	%
Investment securities			1,388				1,384			0.3	%			1,271			9.2	%			5,328				4,679			13.9	%
Other interest-earning assets			2,622				2,499			4.9	%			2,491			5.3	%			11,188				10,469			6.9	%
Total interest-earning assets			46,319				45,998			0.7	%			40,951			13.1	%			180,817				151,177			19.6	%
Interest-bearing deposits			22,927				23,057			(0.6	)%			18,728			22.4	%			90,487				62,165			45.6	%
Borrowings			228				222			2.7	%			299			(23.7	)%			1,713				508			237.2	%
Total interest-bearing liabilities			23,155				23,279			(0.5	)%			19,027			21.7	%			92,200				62,673			47.1	%
Net interest income		$	23,164			$	22,719			2.0	%		$	21,924			5.7	%		$	88,617			$	88,504			0.1	%
Average balance of
Loans		$	2,538,310			$	2,456,015			3.4	%		$	2,242,457			13.2	%		$	2,445,080			$	2,137,851			14.4	%
Investment securities			147,943				147,528			0.3	%			139,227			6.3	%			144,455				140,596			2.7	%
Other interest-earning assets			207,234				175,711			17.9	%			175,336			18.2	%			203,279				198,809			2.2	%
Total interest-earning assets		$	2,893,487			$	2,779,254			4.1	%		$	2,557,020			13.2	%		$	2,792,814			$	2,477,256			12.7	%
Interest-bearing deposits		$	1,986,901			$	1,893,006			5.0	%		$	1,650,132			20.4	%		$	1,892,944			$	1,538,234			23.1	%
Borrowings			17,946				15,848			13.2	%			21,000			(14.5	)%			31,033				9,192			237.6	%
Total interest-bearing liabilities		$	2,004,847			$	1,908,854			5.0	%		$	1,671,132			20.0	%		$	1,923,977			$	1,547,426			24.3	%
Total funding (1)		$	2,548,818			$	2,443,615			4.3	%		$	2,249,026			13.3	%		$	2,463,240			$	2,177,200			13.1	%
Annualized average yield/cost of
Loans			6.63	%			6.82	%						6.58	%						6.72	%			6.36	%
Investment securities			3.73	%			3.73	%						3.62	%						3.69	%			3.33	%
Other interest-earning assets			5.03	%			5.66	%						5.64	%						5.50	%			5.27	%
Total interest-earning assets			6.37	%			6.58	%						6.35	%						6.47	%			6.10	%
Interest-bearing deposits			4.59	%			4.85	%						4.50	%						4.78	%			4.04	%
Borrowings			5.05	%			5.57	%						5.65	%						5.52	%			5.53	%
Total interest-bearing liabilities			4.59	%			4.85	%						4.52	%						4.79	%			4.05	%
Net interest margin			3.18	%			3.25	%						3.40	%						3.17	%			3.57	%
Cost of total funding (1)			3.61	%			3.79	%						3.36	%						3.74	%			2.88	%
Supplementary information
Net accretion of discount on loans		$	645			$	773			(16.6	)%		$	806			(20.0	)%		$	2,782			$	3,003			(7.4	)%
Net amortization of deferred loan fees		$	295			$	246			19.9	%		$	449			(34.3	)%		$	1,214			$	1,097			10.7	%

(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 decrease in average yield for the current quarter compared with the previous quarter was primarily due to a decrease in market rates. The Federal Open Market Committee decreased the Fed Funds rate by 50 bps, 25bps, and 25bps on September 18, November 7, and December 18, 2024, respectively. The increase for the current year was primarily due to increases in average interest rates on loans and net amortization of deferred loan fees, partially offset by the decrease in market interest rates during the second half of 2024.

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:

		12/31/2024				9/30/2024				12/31/2023
		% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate
Fixed rate loans		17.4 %		5.23 %		18.3 %		5.06 %		21.2 %		4.86 %
Hybrid rate loans		37.3 %		5.27 %		37.6 %		5.14 %		39.0 %		4.93 %
Variable rate loans		45.3 %		7.63 %		44.1 %		8.10 %		39.8 %		8.51 %

Investment Securities. The increases in average yield for the current quarter and year compared with the same periods of 2023 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 and year-ago quarters was primarily due to a decrease in average interest rate on cash held at the Federal Reserve Bank (“FRB”), partially offset by an increase in dividends received on Federal Home Loan Bank (“FHLB”) stock. The increase for the current year was primarily due to increases in average interest rate on cash held at the FRB and dividends received on FHLB stock.

Interest-Bearing Deposits. The decrease in average cost for the current quarter compared with the previous was primarily due to a decrease in market rates. The increases in average cost for the current quarter and year compared with the same periods of 2023 were primarily due to increases in market rates throughout 2024.

Provision (Reversal) for Credit Losses

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

		Three Months Ended																		Year Ended
($ in thousands)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
Provision for credit losses on loans		$	2,044			$	193			959.1	%		$	1,935			5.6	%		$	3,488			$	497			601.8	%
Reversal for credit losses on off-balance sheet credit exposure			(42	)			(143	)		(70.6	)%			(237	)		(82.3	)%			(87	)			(629	)		(86.2	)%
Total provision (reversal) for credit losses		$	2,002			$	50			3,904.0	%		$	1,698			17.9	%		$	3,401			$	(132	)		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																		Year Ended
($ in thousands)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
Gain on sale of loans		$	1,161			$	750			54.8	%		$	803			44.6	%		$	3,752			$	3,570			5.1	%
Service charges and fees on deposits			404				399			1.3	%			391			3.3	%			1,545				1,475			4.7	%
Loan servicing income			861				786			9.5	%			751			14.6	%			3,365				3,330			1.1	%
Bank-owned life insurance income			246				239			2.9	%			202			21.8	%			949				753			26.0	%
Other income			371				446			(16.8	)%			356			4.2	%			1,482				1,555			(4.7	)%
Total noninterest income		$	3,043			$	2,620			16.1	%		$	2,503			21.6	%		$	11,093			$	10,683			3.8	%

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

		Three Months Ended																		Year Ended
($ in thousands)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
Gain on sale of SBA loans
Sold loan balance		$	24,518			$	13,506			81.5	%		$	20,751			18.2	%		$	71,057			$	82,343			(13.7	)%
Premium received			1,910				1,185			61.2	%			1,250			52.8	%			5,747				5,612			2.4	%
Gain recognized			1,161				750			54.8	%			803			44.6	%			3,752				3,570			5.1	%
Gain on sale of residential mortgage loans
Sold loan balance		$	—			$	676			(100.0	)%		$	—			—	%		$	676			$	—			NM
Gain recognized			—				—			—	%			—			—	%			—				—			—	%

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

		Three Months Ended																		Year Ended
($ in thousands)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
Loan servicing income
Servicing income received		$	1,255			$	1,264			(0.7	)%		$	1,290			(2.7	)%		$	5,130			$	5,212			(1.6	)%
Servicing assets amortization			(394	)			(478	)		(17.6	)%			(539	)		(26.9	)%			(1,765	)			(1,882	)		(6.2	)%
Loan servicing income		$	861			$	786			9.5	%		$	751			14.6	%		$	3,365			$	3,330			1.1	%
Underlying loans at end of period		$	523,797			$	527,062			(0.6	)%		$	532,231			(1.6	)%		$	523,797			$	532,231			(1.6	)%

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																		Year Ended
($ in thousands)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
Salaries and employee benefits		$	8,417			$	8,801			(4.4	)%		$	8,397			0.2	%		$	35,661			$	34,572			3.1	%
Occupancy and equipment			2,198				2,261			(2.8	)%			2,145			2.5	%			9,117				7,924			15.1	%
Professional fees			752				599			25.5	%			898			(16.3	)%			3,408				3,087			10.4	%
Marketing and business promotion			582				667			(12.7	)%			772			(24.6	)%			1,886				2,327			(19.0	)%
Data processing			205				397			(48.4	)%			393			(47.8	)%			1,499				1,552			(3.4	)%
Director fees and expenses			227				226			0.4	%			207			9.7	%			906				756			19.8	%
Regulatory assessments			322				309			4.2	%			285			13.0	%			1,256				1,103			13.9	%
Other expense			1,191				1,342			(11.3	)%			1,372			(13.2	)%			6,290				4,736			32.8	%
Total noninterest expense		$	13,894			$	14,602			(4.8	)%		$	14,469			(4.0	)%		$	60,023			$	56,057			7.1	%

Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to decreases in salaries and vacation accruals and an increase in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense. The increase for the current year was primarily due to increases in salaries, bonus accrual, and incentives tied to sales of SBA loans originated at loan production offices, partially offset by a decrease in vacation accrual. The number of full-time equivalent employees was 262, 264 and 270 as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

Occupancy and Equipment. The increases for the current quarter and year 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 in 2024.

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 decrease for the current quarter compared with the previous and year-ago quarters were primarily due to a decrease in advertisements. The decrease for the current year compared to 2023 was primarily due to a higher, nonrecurring volume of advertisements in 2023 related to the Company’s 20th anniversary celebration.

Data processing. The decrease for the current quarter and year compared with the same periods of 2023 were primarily due to one-time new relationship credit from the core system conversion completed in April 2024.

Other Expense. The increase for the year 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 second quarter of 2024. The Company has retained a law firm specializing in SBA recovery and intends to seek that SBA reconsider its decision so that the Company may recoup all or part of the reimbursement.

Balance Sheet (Unaudited)

Total assets were $3.06 billion at December 31, 2024, an increase of $174.1 million, or 6.0%, from $2.89 billion at September 30, 2024 and an increase of $274.5 million, or 9.8%, from $2.79 billion at December 31, 2023. The increases for the current quarter and year were primarily due to increases in loans held-for-investment and deferred tax assets.

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)		12/31/2024			9/30/2024			% Change			12/31/2023			% Change
Commercial real estate:
Commercial property		$	940,931		$	874,824		7.6	%		$	855,270		10.0	%
Business property			595,547			579,461		2.8	%			558,772		6.6	%
Multifamily			194,220			185,485		4.7	%			132,500		46.6	%
Construction			21,854			21,150		3.3	%			24,843		(12.0	)%
Total commercial real estate			1,752,552			1,660,920		5.5	%			1,571,385		11.5	%
Commercial and industrial			472,763			407,024		16.2	%			342,002		38.2	%
Consumer:
Residential mortgage			392,456			383,377		2.4	%			389,420		0.8	%
Other consumer			11,616			14,853		(21.8	)%			20,645		(43.7	)%
Total consumer			404,072			398,230		1.5	%			410,065		(1.5	)%
Loans held-for-investment			2,629,387			2,466,174		6.6	%			2,323,452		13.2	%
Loans held-for-sale			6,292			5,170		21.7	%			5,155		22.1	%
Total loans		$	2,635,679		$	2,471,344		6.6	%		$	2,328,607		13.2	%
SBA loans included in:
Loans held-for-investment		$	146,940		$	142,819		2.9	%		$	145,603		0.9	%
Loans held-for-sale		$	6,292		$	5,170		21.7	%		$	5,155		22.1	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding of term loans of $189.9 million and net increase of lines of credit of $57.6 million, partially offset by pay-downs and pay-offs of term loans of $83.8 million and charge-offs of $395 thousand. The increase for the current year was primarily due to new funding of term loans of $411.6 million and net increase of lines of credit of $163.6 million, partially offset by pay-downs and pay-offs of term loans of $267.8 million, charge-offs of $691 thousand, a loan transferred to loans held-for-sale of $676 thousand, and a loan transferred to OREO of $94 thousand.

The increase in loans held-for-sale for the current quarter was primarily due to new funding of $25.6 million, partially offset by sales of $24.5 million and pay-downs of $7 thousand. The increase for the current year was primarily due to new funding of $74.0 million and a loan transferred from loan held-for-investment of $676 thousand, partially offset by sales of $71.7 million and pay-downs of $1.8 million.

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

($ in thousands)		12/31/2024			9/30/2024			% Change			12/31/2023			% Change
Commercial property		$	8,888		$	3,291		170.1	%		$	11,634		(23.6	)%
Business property			11,058			12,441		(11.1	)%			9,899		11.7	%
Multifamily			—			—		—	%			1,800		(100.0	)%
Construction			14,423			17,810		(19.0	)%			23,739		(39.2	)%
Commercial and industrial			364,731			394,428		(7.5	)%			351,025		3.9	%
Other consumer			1,475			5,590		(73.6	)%			3,421		(56.9	)%
Total commitments to extend credit			400,575			433,560		(7.6	)%			401,518		(0.2	)%
Letters of credit			6,795			6,673		1.8	%			6,583		3.2	%
Total off-balance sheet credit exposure		$	407,370		$	440,233		(7.5	)%		$	408,101		(0.2	)%

Credit Quality

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

($ in thousands)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change
Nonaccrual loans
Commercial real estate:
Commercial property		$	1,851			$	1,633			13.3	%		$	958			93.2	%
Business property			2,336				2,367			(1.3	)%			2,865			(18.5	)%
Multifamily			—				2,038			(100.0	)%			—			—	%
Total commercial real estate			4,187				6,038			(30.7	)%			3,823			9.5	%
Commercial and industrial			79				124			(36.3	)%			68			16.2	%
Consumer:
Residential mortgage			403				414			(2.7	)%			—			NM
Other consumer			24				38			(36.8	)%			25			(4.0	)%
Total consumer			427				452			(5.5	)%			25			1,608.0	%
Total nonaccrual loans held-for-investment			4,693				6,614			(29.0	)%			3,916			19.8	%
Loans past due 90 days or more and still accruing			—				—			—	%			—			—	%
Non-performing loans (“NPLs”)			4,693				6,614			(29.0	)%			3,916			19.8	%
NPLs held-for-sale			—				—			—	%			—			—	%
Total NPLs			4,693				6,614			(29.0	)%			3,916			19.8	%
Other real estate owned (“OREO”)			—				466			(100.0	)%			2,558			(100.0	)%
Non-performing assets (“NPAs”)		$	4,693			$	7,080			(33.7	)%		$	6,474			(27.5	)%
Loans past due and still accruing
Past due 30 to 59 days		$	4,599			$	2,973			54.7	%		$	1,394			229.9	%
Past due 60 to 89 days			303				21			1,342.9	%			34			791.2	%
Past due 90 days or more			—				—			—	%			—			—	%
Total loans past due and still accruing		$	4,902			$	2,994			63.7	%		$	1,428			243.3	%
Special mention loans		$	5,034			$	5,057			(0.5	)%		$	5,156			(2.4	)%
Classified assets
Classified loans held-for-investment		$	6,930			$	8,860			(21.8	)%		$	7,000			(1.0	)%
Classified loans held-for-sale			—				—			—	%			—			—	%
OREO			—				466			(100.0	)%			2,558			(100.0	)%
Classified assets		$	6,930			$	9,326			(25.7	)%		$	9,558			(27.5	)%
NPLs to loans held-for-investment			0.18	%			0.27	%						0.17	%
NPAs to total assets			0.15	%			0.24	%						0.23	%
Classified assets to total assets			0.23	%			0.32	%						0.34	%

Allowance for Credit Losses

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

		Three Months Ended																		Year Ended
($ in thousands)		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
ACL on loans
Balance at beginning of period		$	28,930			$	28,747			0.6	%		$	25,599			13.0	%		$	27,533			$	24,942			10.4	%
Impact of ASC 326 adoption			—				—			NM				—			NM				—				1,067			NM
Charge-offs			(395	)			(111	)		255.9	%			(13	)		2,938.5	%			(691	)			(132	)		423.5	%
Recoveries			49				101			(51.5	)%			12			308.3	%			298				1,159			(74.3	)%
Provision for credit losses on loans			2,044				193			959.1	%			1,935			5.6	%			3,488				497			601.8	%
Balance at end of period		$	30,628			$	28,930			5.9	%		$	27,533			11.2	%		$	30,628			$	27,533			11.2	%
Percentage to loans held-for-investment at end of period			1.16	%			1.17	%						1.19	%						1.16	%			1.19	%
ACL on off-balance sheet credit exposure
Balance at beginning of period		$	1,232			$	1,375			(10.4	)%		$	1,514			(18.6	)%		$	1,277			$	299			327.1	%
Impact of ASC 326 adoption			—				—			NM				—			NM				—				1,607			NM
Reversal for credit losses on off-balance sheet credit exposure			(42	)			(143	)		(70.6	)%			(237	)		(82.3	)%			(87	)			(629	)		(86.2	)%
Balance at end of period		$	1,190			$	1,232			(3.4	)%		$	1,277			(6.8	)%		$	1,190			$	1,277			(6.8	)%

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 $146.3 million at December 31, 2024, a decrease of $1.3 million, or 0.9%, from $147.6 million at September 30, 2024, but an increase of $3.0 million, or 2.1%, from $143.3 million at December 31, 2023. The decrease for the current quarter was primarily due to principal pay-downs of $5.9 million, net premium amortization of $36 thousand, and a fair value decrease of $4.1 million, partially offset by purchases of $8.7 million. The increase for the current year was primarily due to purchases of $23.5 million, partially offset by principal pay-downs of $19.8 million, net premium amortization of $159 thousand and a fair value decrease of $541 thousand.

Deposits

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

		12/31/2024						9/30/2024						12/31/2023
($ in thousands)		Amount			% to Total			Amount			% to Total			Amount			% to Total
Noninterest-bearing demand deposits		$	547,853		20.9	%		$	540,068		22.0	%		$	594,673		25.3	%
Interest-bearing deposits
Savings			5,765		0.2	%			5,718		0.2	%			6,846		0.3	%
NOW			13,761		0.5	%			15,873		0.6	%			16,825		0.7	%
Retail money market accounts			447,360		17.1	%			470,347		19.1	%			397,531		16.8	%
Brokered money market accounts			1		0.1	%			1		0.1	%			1		0.1	%
Retail time deposits of
$250,000 or less			493,644		18.9	%			492,430		20.0	%			456,293		19.4	%
More than $250,000			605,124		23.1	%			580,166		23.6	%			515,702		21.9	%
State and brokered time deposits			502,283		19.2	%			355,079		14.4	%			363,741		15.5	%
Total interest-bearing deposits			2,067,938		79.1	%			1,919,614		78.0	%			1,756,939		74.7	%
Total deposits		$	2,615,791		100.0	%		$	2,459,682		100.0	%		$	2,351,612		100.0	%
Estimated total deposits not covered by deposit insurance		$	1,036,451		39.6	%		$	1,042,366		42.4	%		$	954,591		40.6	%

Total retail deposits were $2.11 billion at December 31, 2024, an increase of $8.9 million, or 0.4%, from $2.10 billion at September 30, 2024 and an increase of $125.6 million, or 6.3%, from $1.99 billion at December 31, 2023.

The increase in retail time deposits for the current quarter was primarily due to new accounts of $94.7 million, renewals of the matured accounts of $338.2 million and balance increases of $15.7 million, partially offset by matured and closed accounts of $422.5 million. The increase for the current year was primarily due to new accounts of $367.4 million, renewals of the matured accounts of $898.6 million and balance increases of $44.1 million, partially offset by matured and closed accounts of $1.18 billion.

Liquidity

The following table presents a summary of the Company’s liquidity position as of the dates indicated:

($ in thousands)		12/31/2024				12/31/2023				% Change
Cash and cash equivalents		$	198,792			$	242,342			(18.0	)%
Cash and cash equivalents to total assets			6.5	%			8.7	%
Available borrowing capacity
FHLB advances		$	722,439			$	602,976			19.8	%
Federal Reserve Discount Window			586,525				528,893			10.9	%
Overnight federal funds lines			50,000				65,000			(23.1	)%
Total		$	1,358,964			$	1,196,869			13.5	%
Total available borrowing capacity to total assets			44.4	%			42.9	%

Shareholders’ Equity

Shareholders’ equity was $363.8 million at December 31, 2024, an increase of $1.5 million, or 0.4%, from $362.3 million at September 30, 2024 and an increase of $14.9 million, or 4.3%, from $348.9 million at December 31, 2023. The increase for the current quarter was primarily due to net income and proceeds from stock option exercises of $143 thousand, partially offset by an increase in accumulated other comprehensive loss of $2.9 million, cash dividends declared on common stock of $2.6 million and preferred stock dividends of $346 thousand. The increase for the current year was primarily due to net income and proceeds from stock option exercises of $353 thousand, partially offset by an increase in accumulated other comprehensive loss of $395 thousand, cash dividends declared on common stock of $10.3 million, preferred stock dividends of $834 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. 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 December 31, 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 is 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 $834 thousand for the current quarter and year, respectively.

Capital Ratios

Historically, the Company has operated under the Federal Reserve’s Small Bank Holding Company Policy Statement, which exempts bank holding companies with total consolidated assets of less than $3.0 billion from the Federal Reserve’s risk-based- and leverage consolidated capital requirements. Because the Company’s total consolidated assets exceeded $3.0 billion as December 31, 2024, the Company is now subject to the Federal Reserve’s consolidated capital requirements. A bank holding company that crosses the $3.0 billion total consolidated assets threshold as of June 30 of a particular year is no longer permitted to file Federal Reserve reports as a small holding company beginning the following March. If the Company’s total assets exceed $3.0 billion as of June 30, 2025, the Company will not be eligible to file financial reports with the Federal Reserve as a small bank holding company beginning in March 2026. The following table presents capital ratios for the Company and the Bank as of the dates indicated:

		12/31/2024		9/30/2024		12/31/2023		Well Capitalized Minimum Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)		11.44 %		11.92 %		12.23 %		N/A
Total capital (to risk-weighted assets)		15.24 %		15.88 %		16.39 %		N/A
Tier 1 capital (to risk-weighted assets)		14.04 %		14.68 %		15.16 %		N/A
Tier 1 capital (to average assets)		12.45 %		12.79 %		13.43 %		N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)		13.72 %		14.33 %		14.85 %		6.5 %
Total capital (to risk-weighted assets)		14.92 %		15.54 %		16.07 %		10.0 %
Tier 1 capital (to risk-weighted assets)		13.72 %		14.33 %		14.85 %		8.0 %
Tier 1 capital (to average assets)		12.16 %		12.49 %		13.16 %		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 on the Company and its customers resulting from any adverse developments in real estate markets 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; 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, 2023 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)
		12/31/2024				9/30/2024				% Change			12/31/2023				% Change
Assets
Cash and due from banks		$	27,100			$	29,981			(9.6	)%		$	26,518			2.2	%
Interest-bearing deposits in other financial institutions			171,692				163,083			5.3	%			215,824			(20.4	)%
Total cash and cash equivalents			198,792				193,064			3.0	%			242,342			(18.0	)%
Securities available-for-sale, at fair value			146,349				147,635			(0.9	)%			143,323			2.1	%
Loans held-for-sale			6,292				5,170			21.7	%			5,155			22.1	%
Loans held-for-investment			2,629,387				2,466,174			6.6	%			2,323,452			13.2	%
Allowance for credit losses on loans			(30,628	)			(28,930	)		5.9	%			(27,533	)		11.2	%
Net loans held-for-investment			2,598,759				2,437,244			6.6	%			2,295,919			13.2	%
Premises and equipment, net			8,280				8,414			(1.6	)%			5,999			38.0	%
Federal Home Loan Bank and other bank stock			14,042				14,042			—	%			12,716			10.4	%
Other real estate owned, net			—				466			(100.0	)%			2,558			(100.0	)%
Bank-owned life insurance			31,766				31,520			0.8	%			30,817			3.1	%
Deferred tax assets, net			7,249				—			NM				—			NM
Servicing assets			5,837				5,902			(1.1	)%			6,666			(12.4	)%
Operating lease assets			17,254				17,932			(3.8	)%			18,913			(8.8	)%
Accrued interest receivable			10,466				9,896			5.8	%			9,468			10.5	%
Other assets			18,885				18,548			1.8	%			15,630			20.8	%
Total assets		$	3,063,971			$	2,889,833			6.0	%		$	2,789,506			9.8	%
Liabilities
Deposits
Noninterest-bearing demand		$	547,853			$	540,068			1.4	%		$	594,673			(7.9	)%
Savings, NOW and money market accounts			466,887				491,939			(5.1	)%			421,203			10.8	%
Time deposits of $250,000 or less			935,927				787,509			18.8	%			760,034			23.1	%
Time deposits of more than $250,000			665,124				640,166			3.9	%			575,702			15.5	%
Total deposits			2,615,791				2,459,682			6.3	%			2,351,612			11.2	%
Other short-term borrowings			15,000				—			NM				—			NM
Federal Home Loan Bank advances			—				—			—	%			39,000			(100.0	)%
Deferred tax liabilities, net			—				1,168			(100.0	)%			876			(100.0	)%
Operating lease liabilities			18,671				19,301			(3.3	)%			20,137			(7.3	)%
Accrued interest payable and other liabilities			50,695				47,382			7.0	%			29,009			74.8	%
Total liabilities			2,700,157				2,527,533			6.8	%			2,440,634			10.6	%
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock			69,141				69,141			—	%			69,141			—	%
Common stock			143,195				142,926			0.2	%			142,563			0.4	%
Retained earnings			160,797				156,680			2.6	%			146,092			10.1	%
Accumulated other comprehensive loss, net			(9,319	)			(6,447	)		44.5	%			(8,924	)		4.4	%
Total shareholders’ equity			363,814				362,300			0.4	%			348,872			4.3	%
Total liabilities and shareholders’ equity		$	3,063,971			$	2,889,833			6.0	%		$	2,789,506			9.8	%
Outstanding common shares			14,380,651				14,266,725							14,260,440
Book value per common share (1)		$	25.30			$	25.39						$	24.46
TCE per common share (2)		$	20.49			$	20.55						$	19.62
Total loan to total deposit ratio			100.76	%			100.47	%						99.02	%
Noninterest-bearing deposits to total deposits			20.94	%			21.96	%						25.29	%

(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																		Year Ended
		12/31/2024				9/30/2024				% Change			12/31/2023				% Change			12/31/2024				12/31/2023				% Change
Interest and dividend income
Loans, including fees		$	42,309			$	42,115			0.5	%		$	37,189			13.8	%		$	164,301			$	136,029			20.8	%
Investment securities			1,388				1,384			0.3	%			1,271			9.2	%			5,328				4,679			13.9	%
Other interest-earning assets			2,622				2,499			4.9	%			2,491			5.3	%			11,188				10,469			6.9	%
Total interest income			46,319				45,998			0.7	%			40,951			13.1	%			180,817				151,177			19.6	%
Interest expense
Deposits			22,927				23,057			(0.6	)%			18,728			22.4	%			90,487				62,165			45.6	%
Other borrowings			228				222			2.7	%			299			(23.7	)%			1,713				508			237.2	%
Total interest expense			23,155				23,279			(0.5	)%			19,027			21.7	%			92,200				62,673			47.1	%
Net interest income			23,164				22,719			2.0	%			21,924			5.7	%			88,617				88,504			0.1	%
Provision (reversal) for credit losses			2,002				50			3,904.0	%			1,698			17.9	%			3,401				(132	)		NM
Net interest income after provision (reversal) for credit losses			21,162				22,669			(6.6	)%			20,226			4.6	%			85,216				88,636			(3.9	)%
Noninterest income
Gain on sale of loans			1,161				750			54.8	%			803			44.6	%			3,752				3,570			5.1	%
Service charges and fees on deposits			404				399			1.3	%			391			3.3	%			1,545				1,475			4.7	%
Loan servicing income			861				786			9.5	%			751			14.6	%			3,365				3,330			1.1	%
Bank-owned life insurance income			246				239			2.9	%			202			21.8	%			949				753			26.0	%
Other income			371				446			(16.8	)%			356			4.2	%			1,482				1,555			(4.7	)%
Total noninterest income			3,043				2,620			16.1	%			2,503			21.6	%			11,093				10,683			3.8	%
Noninterest expense
Salaries and employee benefits			8,417				8,801			(4.4	)%			8,397			0.2	%			35,661				34,572			3.1	%
Occupancy and equipment			2,198				2,261			(2.8	)%			2,145			2.5	%			9,117				7,924			15.1	%
Professional fees			752				599			25.5	%			898			(16.3	)%			3,408				3,087			10.4	%
Marketing and business promotion			582				667			(12.7	)%			772			(24.6	)%			1,886				2,327			(19.0	)%
Data processing			205				397			(48.4	)%			393			(47.8	)%			1,499				1,552			(3.4	)%
Director fees and expenses			227				226			0.4	%			207			9.7	%			906				756			19.8	%
Regulatory assessments			322				309			4.2	%			285			13.0	%			1,256				1,103			13.9	%
Other expense			1,191				1,342			(11.3	)%			1,372			(13.2	)%			6,290				4,736			32.8	%
Total noninterest expense			13,894				14,602			(4.8	)%			14,469			(4.0	)%			60,023				56,057			7.1	%
Income before income taxes			10,311				10,687			(3.5	)%			8,260			24.8	%			36,286				43,262			(16.1	)%
Income tax expense			3,281				2,873			14.2	%			2,352			39.5	%			10,476				12,557			(16.6	)%
Net income			7,030				7,814			(10.0	)%			5,908			19.0	%			25,810				30,705			(15.9	)%
Preferred stock dividends			346				346			—	%			—			NM				834				—			NM
Net income available to common shareholders		$	6,684			$	7,468			(10.5	)%		$	5,908			13.1	%		$	24,976			$	30,705			(18.7	)%
Earnings per common share
Basic		$	0.47			$	0.52						$	0.41						$	1.75			$	2.14
Diluted		$	0.46			$	0.52						$	0.41						$	1.74			$	2.12
Average common shares
Basic			14,254,584				14,241,014							14,223,831							14,242,057				14,301,691
Diluted			14,406,756				14,356,384							14,316,581							14,342,361				14,417,938
Dividend paid per common share		$	0.18			$	0.18						$	0.18						$	0.72			$	0.69
Return on average assets (1)			0.94	%			1.08	%						0.89	%						0.90	%			1.20	%
Return on average shareholders’ equity (1)			7.69	%			8.70	%						6.82	%						7.26	%			9.02	%
Return on average TCE (1), (2)			9.02	%			10.31	%						8.54	%						8.72	%			11.31	%
Efficiency ratio (3)			53.02	%			57.63	%						59.23	%						60.20	%			56.52	%

(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
		12/31/2024										9/30/2024										12/31/2023
		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)		$	2,538,310			$	42,309		6.63	%		$	2,456,015			$	42,115		6.82	%		$	2,242,457			$	37,189		6.58	%
Mortgage-backed securities			113,231				1,030		3.62	%			111,350				1,000		3.57	%			100,500				855		3.38	%
Collateralized mortgage obligation			21,819				228		4.16	%			22,661				244		4.28	%			23,970				259		4.29	%
SBA loan pool securities			6,253				62		3.94	%			6,571				69		4.18	%			7,453				81		4.31	%
Municipal bonds (2)			2,440				21		3.42	%			2,698				24		3.54	%			3,110				29		3.70	%
Corporate bonds			4,200				47		4.45	%			4,248				47		4.40	%			4,194				47		4.45	%
Other interest-earning assets			207,234				2,622		5.03	%			175,711				2,499		5.66	%			175,336				2,491		5.64	%
Total interest-earning assets			2,893,487				46,319		6.37	%			2,779,254				45,998		6.58	%			2,557,020				40,951		6.35	%
Noninterest-earning assets
Cash and due from banks			23,639										24,098										23,034
ACL on loans			(28,833	)									(28,797	)									(25,663	)
Other assets			92,348										92,152										87,759
Total noninterest-earning assets			87,154										87,453										85,130
Total assets		$	2,980,641									$	2,866,707									$	2,642,150
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts		$	479,238				4,479		3.72	%		$	496,158				5,129		4.11	%		$	450,408				4,418		3.89	%
Savings			5,952				4		0.27	%			6,204				4		0.26	%			6,947				4		0.23	%
Time deposits			1,501,711				18,444		4.89	%			1,390,644				17,924		5.13	%			1,192,777				14,306		4.76	%
Total interest-bearing deposits			1,986,901				22,927		4.59	%			1,893,006				23,057		4.85	%			1,650,132				18,728		4.50	%
Other borrowings			17,946				228		5.05	%			15,848				222		5.57	%			21,000				299		5.65	%
Total interest-bearing liabilities			2,004,847				23,155		4.59	%			1,908,854				23,279		4.85	%			1,671,132				19,027		4.52	%
Noninterest-bearing liabilities
Noninterest-bearing demand			543,971										534,761										577,894
Other liabilities			67,995										65,716										49,389
Total noninterest-bearing liabilities			611,966										600,477										627,283
Total liabilities			2,616,813										2,509,331										2,298,415
Total shareholders’ equity			363,828										357,376										343,735
Total liabilities and shareholders’ equity		$	2,980,641									$	2,866,707									$	2,642,150
Net interest income						$	23,164									$	22,719									$	21,924
Net interest spread (3)									1.78	%									1.73	%									1.83	%
Net interest margin (4)									3.18	%									3.25	%									3.40	%
Total deposits		$	2,530,872			$	22,927		3.60	%		$	2,427,767			$	23,057		3.78	%		$	2,228,026			$	18,728		3.33	%
Total funding (5)		$	2,548,818			$	23,155		3.61	%		$	2,443,615			$	23,279		3.79	%		$	2,249,026			$	19,027		3.36	%

(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)
		Year Ended
		12/31/2024										12/31/2023
		Average Balance				Interest Income/Expense			Avg. Yield/Rate			Average Balance				Interest Income/Expense			Avg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)		$	2,445,080			$	164,301		6.72	%		$	2,137,851			$	136,029		6.36	%
Mortgage-backed securities			107,768				3,780		3.51	%			98,903				3,001		3.03	%
Collateralized mortgage obligation			22,806				975		4.28	%			25,466				1,039		4.08	%
SBA loan pool securities			6,756				283		4.19	%			8,166				325		3.98	%
Municipal bonds (2)			2,917				102		3.50	%			3,788				126		3.33	%
Corporate bonds			4,208				188		4.47	%			4,273				188		4.40	%
Other interest-earning assets			203,279				11,188		5.50	%			198,809				10,469		5.27	%
Total interest-earning assets			2,792,814				180,817		6.47	%			2,477,256				151,177		6.10	%
Noninterest-earning assets
Cash and due from banks			23,044										21,565
ACL on loans			(28,397	)									(25,495	)
Other assets			90,425										76,433
Total noninterest-earning assets			85,072										72,503
Total assets		$	2,877,886									$	2,549,759
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts		$	475,754				19,149		4.02	%		$	470,750				16,190		3.44	%
Savings			6,312				16		0.25	%			7,499				18		0.24	%
Time deposits			1,410,878				71,322		5.06	%			1,059,985				45,957		4.34	%
Total interest-bearing deposits			1,892,944				90,487		4.78	%			1,538,234				62,165		4.04	%
Other borrowings			31,033				1,713		5.52	%			9,192				508		5.53	%
Total interest-bearing liabilities			1,923,977				92,200		4.79	%			1,547,426				62,673		4.05	%
Noninterest-bearing liabilities
Noninterest-bearing demand			539,263										629,774
Other liabilities			59,026										32,051
Total noninterest-bearing liabilities			598,289										661,825
Total liabilities			2,522,266										2,209,251
Total shareholders’ equity			355,620										340,508
Total liabilities and shareholders’ equity		$	2,877,886									$	2,549,759
Net interest income						$	88,617									$	88,504
Net interest spread (3)									1.68	%									2.05	%
Net interest margin (4)									3.17	%									3.57	%
Total deposits		$	2,432,207			$	90,487		3.72	%		$	2,168,008			$	62,165		2.87	%
Total funding (5)		$	2,463,240			$	92,200		3.74	%		$	2,177,200			$	62,673		2.88	%

(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.

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												Year Ended
			12/31/2024				9/30/2024				12/31/2023				12/31/2024				12/31/2023
Average total shareholders' equity	(a)		$	363,828			$	357,376			$	343,735			$	355,620			$	340,508
Less: average preferred stock	(b)			69,141				69,141				69,141				69,141				69,141
Average TCE	(c)=(a)-(b)		$	294,687			$	288,235			$	274,594			$	286,479			$	271,367
Net income	(d)		$	7,030			$	7,814			$	5,908			$	25,810			$	30,705
Return on average shareholder's equity (1)	(d)/(a)			7.69	%			8.70	%			6.82	%			7.26	%			9.02	%
Net income available to common shareholders	(e)		$	6,684			$	7,468			$	5,908			$	24,976			$	30,705
Return on average TCE (1)	(e)/(c)			9.02	%			10.31	%			8.54	%			8.72	%			11.31	%
(1) Annualized.

($ in thousands, except per share data)			12/31/2024				9/30/2024				12/31/2023
Total shareholders' equity	(a)		$	363,814			$	362,300			$	348,872
Less: preferred stock	(b)			69,141				69,141				69,141
TCE	(c)=(a)-(b)		$	294,673			$	293,159			$	279,731
Outstanding common shares	(d)			14,380,651				14,266,725				14,260,440
Book value per common share	(a)/(d)		$	25.30			$	25.39			$	24.46
TCE per common share	(c)/(d)		$	20.49			$	20.55			$	19.62
Total assets	(e)		$	3,063,971			$	2,889,833			$	2,789,506
Total shareholders' equity to total assets	(a)/(e)			11.87	%			12.54	%			12.51	%
TCE to total assets	(c)/(e)			9.62	%			10.14	%			10.03	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130214899/en/

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

Source: PCB Bancorp

FAQ

What was PCB's net income for Q4 2024?

PCB reported net income of $6.7 million ($0.46 per diluted share) for Q4 2024.

How much did PCB's total assets grow in 2024?

PCB's total assets grew by $274.5 million or 9.8% year-over-year to $3.06 billion as of December 31, 2024.

What was PCB's net interest margin in Q4 2024?

PCB's net interest margin was 3.18% in Q4 2024, down from 3.25% in Q3 2024.

How did PCB's loan portfolio perform in 2024?

PCB's loans held-for-investment increased by $305.9 million or 13.2% year-over-year to $2.63 billion as of December 31, 2024.

What was PCB's efficiency ratio in Q4 2024?

PCB maintained an efficiency ratio of 53.02% in Q4 2024, improved from 57.63% in Q3 2024.