PCB Bancorp Reports Earnings of $3.4 Million for Q3 2020
PCB Bancorp reported its third-quarter 2020 earnings with a net income of $3.4 million, maintaining earnings per share at $0.22, consistent with the previous quarter but down 47.6% year-over-year. The company established a provision for loan losses of $4.3 million, reflecting heightened economic uncertainty from the COVID-19 pandemic, increasing the allowance for loan losses to 1.70% of total loans, excluding PPP loans. Despite a stable net interest margin of 3.43%, total noninterest income fell by 22.1%. The bank terminated its FDIC consent order related to BSA/AML compliance.
- Net interest margin increased to 3.43% from 3.22% quarter-over-quarter.
- Total assets grew by 15.7% year-over-year, reaching $2.02 billion.
- The termination of the FDIC consent order indicates improved compliance.
- Net income decreased by 49.2% year-over-year, down from $6.8 million.
- Provision for loan losses increased significantly, up from $207 thousand a year ago.
- Noninterest income dropped by 22.1% quarter-over-quarter.
LOS ANGELES--(BUSINESS WIRE)--PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of Pacific City Bank (the “Bank”), today reported net income of
Q3 2020 Highlights
-
Net income totaled
$3.4 million or$0.22 per diluted common share;-
The Company recorded a provision for loan losses of
$4.3 million primarily due to an increase in the economic uncertainty due to the COVID-19 pandemic. -
Allowance for loan losses to total loans held-for-investment ratio was
1.55% at September 30, 2020 compared with1.30% at June 30, 2020 and0.94% at September 30, 2019. Excluding U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, allowance for loan losses to total loans held-for-investment ratio was1.70% and1.43% at September 30, 2020 and June 30, 2020, respectively. -
Net interest margin was
3.43% for the third quarter of 2020 compared with3.22% for the previous quarter and4.11% for the year-ago quarter.
-
The Company recorded a provision for loan losses of
-
Total assets were
$2.02 billion at September 30, 2020, an increase of$410 thousand from$2.02 billion at June 30, 2020, an increase of$274.9 million , or15.7% , from$1.75 billion at December 31, 2019, and an increase of$321.7 million , or18.9% , from$1.70 billion at September 30, 2019;
-
Loans held-for-investment, net of deferred costs (fees), were
$1.58 billion at September 30, 2020, an increase of$25.2 million , or1.6% , from$1.55 billion at June 30, 2020, an increase of$128.0 million , or8.8% , from$1.45 billion at December 31, 2019, and an increase of$189.0 million , or13.6% , from$1.39 billion at September 30, 2019;-
SBA PPP loans totaled
$136.4 million and$133.7 million at September 30, 2020 and June 30, 2020, respectively. -
Loans with modifications related to COVID-19 totaled
$171.6 million at September 30, 2020 compared with$484.0 million at June 30, 2020.
-
SBA PPP loans totaled
-
Total deposits were
$1.65 billion at September 30, 2020, an increase of$177 thousand from$1.65 billion at June 30, 2020, an increase of$167.8 million , or11.3% , from$1.48 billion at December 31, 2019, and an increase of$214.8 million , or15.0% , from$1.43 billion at September 30, 2019;
- The consent order with the Federal Deposit Insurance Corporation (“FDIC”) and California Department of Financial Protection and Innovation (“CDFPI”, formerly California Department of Business Oversight) related to the Bank's Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”) compliance was terminated; and
-
The Company declared and paid a cash dividend of
$0.10 per common share for the third quarter of 2020 compared with$0.10 per common share for the second quarter of 2020 and$0.06 per common share for the third quarter of 2019.
“We continued to successfully manage the challenging environment as evidenced by earning
“Our asset quality remained stable as we continued to help navigate our borrowers manage through the impact of the COVID-19 pandemic. Our loans with modifications related to the COVID-19 pandemic decreased to
“During the quarter, the FDIC and CDFPI also terminated the consent order related to the Bank’s BSA/AML compliance program by our successful resolution of the deficiencies and enhancement of our program. We believe we are successfully managing the current challenging environment and remain confident in our strategy to continue supporting our customers while delivering consistent financial performance.”
Financial Highlights (Unaudited)
($ in thousands, except per share data) |
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||||||
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
9/30/2019 |
|
% Change |
|
9/30/2020 |
|
9/30/2019 |
|
% Change |
||||||||||||||
Net income |
|
$ |
3,449 |
|
|
$ |
3,367 |
|
|
2.4 |
% |
|
$ |
6,785 |
|
|
(49.2 |
)% |
|
$ |
10,388 |
|
|
$ |
19,950 |
|
|
(47.9 |
)% |
Diluted earnings per common share |
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
— |
% |
|
$ |
0.42 |
|
|
(47.6 |
)% |
|
$ |
0.67 |
|
|
$ |
1.23 |
|
|
(45.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income |
|
$ |
16,853 |
|
|
$ |
15,363 |
|
|
9.7 |
% |
|
$ |
17,529 |
|
|
(3.9 |
)% |
|
$ |
48,782 |
|
|
$ |
52,374 |
|
|
(6.9 |
)% |
Provision (reversal) for loan losses |
|
4,326 |
|
|
3,855 |
|
|
12.2 |
% |
|
(102 |
) |
|
NM |
|
|
11,077 |
|
|
207 |
|
|
5251.2 |
% |
|||||
Noninterest income |
|
2,272 |
|
|
2,918 |
|
|
(22.1 |
)% |
|
2,802 |
|
|
(18.9 |
)% |
|
7,216 |
|
|
8,265 |
|
|
(12.7 |
)% |
|||||
Noninterest expense |
|
9,886 |
|
|
9,696 |
|
|
2.0 |
% |
|
10,777 |
|
|
(8.3 |
)% |
|
30,149 |
|
|
32,050 |
|
|
(5.9 |
)% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Return on average assets (1) |
|
0.69 |
% |
|
0.69 |
% |
|
|
|
1.55 |
% |
|
|
|
0.73 |
% |
|
1.55 |
% |
|
|
||||||||
Return on average shareholders’ equity (1), (2) |
|
5.98 |
% |
|
5.98 |
% |
|
|
|
12.02 |
% |
|
|
|
6.10 |
% |
|
12.15 |
% |
|
|
||||||||
Net interest margin (1) |
|
3.43 |
% |
|
3.22 |
% |
|
|
|
4.11 |
% |
|
|
|
3.49 |
% |
|
4.16 |
% |
|
|
||||||||
Efficiency ratio (3) |
|
51.69 |
% |
|
53.04 |
% |
|
|
|
53.01 |
% |
|
|
|
53.84 |
% |
|
52.85 |
% |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
($ in thousands, except per share data) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
12/31/2019 |
|
% Change |
|
9/30/2019 |
|
% Change |
|||||||||||
Total assets |
|
$ |
2,021,187 |
|
|
$ |
2,020,777 |
|
|
— |
% |
|
$ |
1,746,328 |
|
|
15.7 |
% |
|
$ |
1,699,446 |
|
|
18.9 |
% |
Net loans held-for-investment |
|
1,554,258 |
|
|
1,533,341 |
|
|
1.4 |
% |
|
1,436,451 |
|
|
8.2 |
% |
|
1,376,736 |
|
|
12.9 |
% |
||||
Total deposits |
|
1,647,107 |
|
|
1,646,930 |
|
|
— |
% |
|
1,479,307 |
|
|
11.3 |
% |
|
1,432,262 |
|
|
15.0 |
% |
||||
Book value per common share (2), (4) |
|
$ |
14.91 |
|
|
$ |
14.78 |
|
|
0.9 |
% |
|
$ |
14.44 |
|
|
3.3 |
% |
|
$ |
14.30 |
|
|
4.3 |
% |
Tier 1 leverage ratio (consolidated) |
|
11.40 |
% |
|
11.49 |
% |
|
|
|
13.23 |
% |
|
|
|
12.87 |
% |
|
|
|||||||
Total shareholders’ equity to total assets (2) |
|
11.35 |
% |
|
11.24 |
% |
|
|
|
12.99 |
% |
|
|
|
13.22 |
% |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(1) |
Ratios are presented on an annualized basis. |
|
(2) |
The Company did not have any intangible equity components for the presented periods. |
|
(3) |
The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income. |
|
(4) |
The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. |
COVID-19 Pandemic
The ongoing COVID-19 pandemic, and governmental and societal responses thereto, have had a severe impact on recent global economic and market conditions, including significant disruption of, and volatility in, financial markets; global supply chain disruptions; and the institution of social distancing and shelter-in-place requirements that have resulted in temporary closures of many businesses, lost revenues, and increased unemployment throughout the U.S., but also specifically in California, where most of the Company’s operations and a large majority of its customers are located.
Since the beginning of the crisis, the Company has taken a number of steps to protect the safety of its employees and to support its customers. The Company has enabled its staff to work remotely and established safety measures within its bank premises and branches for both employees and customers.
In order to support its customers, the Company has been in close contact with its customers, assessing the level of impact on their businesses, and putting a process in place to evaluate each client’s specific situation and provide relief programs where appropriate. SBA PPP loans totaled
In addition, the Company has been monitoring its liquidity and capital closely. As of September 30, 2020, the Company maintained
At this time, the Company cannot estimate the long term impact of the COVID-19 pandemic, but these conditions impacted and are expected to impact its business, results of operations, and financial condition negatively.
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) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
9/30/2019 |
|
% Change |
|
9/30/2020 |
|
9/30/2019 |
|
% Change |
|||||||||||||
Interest income/expense on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans |
|
$ |
18,938 |
|
|
$ |
18,273 |
|
|
3.6 |
% |
|
$ |
21,876 |
|
|
(13.4 |
)% |
|
$ |
57,617 |
|
|
$ |
64,779 |
|
|
(11.1 |
)% |
Investment securities |
|
515 |
|
|
539 |
|
|
(4.5 |
)% |
|
978 |
|
|
(47.3 |
)% |
|
1,698 |
|
|
3,133 |
|
|
(45.8 |
)% |
|||||
Other interest-earning assets |
|
167 |
|
|
161 |
|
|
3.7 |
% |
|
833 |
|
|
(80.0 |
)% |
|
938 |
|
|
2,757 |
|
|
(66.0 |
)% |
|||||
Total interest-earning assets |
|
19,620 |
|
|
18,973 |
|
|
3.4 |
% |
|
23,687 |
|
|
(17.2 |
)% |
|
60,253 |
|
|
70,669 |
|
|
(14.7 |
)% |
|||||
Interest-bearing deposits |
|
2,599 |
|
|
3,409 |
|
|
(23.8 |
)% |
|
6,060 |
|
|
(57.1 |
)% |
|
11,000 |
|
|
17,925 |
|
|
(38.6 |
)% |
|||||
Borrowings |
|
168 |
|
|
201 |
|
|
(16.4 |
)% |
|
98 |
|
|
71.4 |
% |
|
471 |
|
|
370 |
|
|
27.3 |
% |
|||||
Total interest-bearing liabilities |
|
2,767 |
|
|
3,610 |
|
|
(23.4 |
)% |
|
6,158 |
|
|
(55.1 |
)% |
|
11,471 |
|
|
18,295 |
|
|
(37.3 |
)% |
|||||
Net interest income |
|
$ |
16,853 |
|
|
$ |
15,363 |
|
|
9.7 |
% |
|
$ |
17,529 |
|
|
(3.9 |
)% |
|
$ |
48,782 |
|
|
$ |
52,374 |
|
|
(6.9 |
)% |
Average balance of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans |
|
$ |
1,564,704 |
|
|
$ |
1,554,011 |
|
|
0.7 |
% |
|
$ |
1,396,437 |
|
|
12.0 |
% |
|
$ |
1,524,628 |
|
|
$ |
1,372,704 |
|
|
11.1 |
% |
Investment securities |
|
128,212 |
|
|
120,336 |
|
|
6.5 |
% |
|
161,528 |
|
|
(20.6 |
)% |
|
122,371 |
|
|
165,638 |
|
|
(26.1 |
)% |
|||||
Other interest-earning assets |
|
260,426 |
|
|
245,447 |
|
|
6.1 |
% |
|
135,774 |
|
|
91.8 |
% |
|
221,698 |
|
|
143,616 |
|
|
54.4 |
% |
|||||
Total interest-earning assets |
|
$ |
1,953,342 |
|
|
$ |
1,919,794 |
|
|
1.7 |
% |
|
$ |
1,693,739 |
|
|
15.3 |
% |
|
$ |
1,868,697 |
|
|
$ |
1,681,958 |
|
|
11.1 |
% |
Interest-bearing deposits |
|
$ |
1,063,962 |
|
|
$ |
1,109,307 |
|
|
(4.1 |
)% |
|
$ |
1,126,376 |
|
|
(5.5 |
)% |
|
$ |
1,100,855 |
|
|
$ |
1,128,606 |
|
|
(2.5 |
)% |
Borrowings |
|
130,000 |
|
|
130,330 |
|
|
(0.3 |
)% |
|
20,326 |
|
|
539.6 |
% |
|
95,276 |
|
|
26,820 |
|
|
255.2 |
% |
|||||
Total interest-bearing liabilities |
|
$ |
1,193,962 |
|
|
$ |
1,239,637 |
|
|
(3.7 |
)% |
|
$ |
1,146,702 |
|
|
4.1 |
% |
|
$ |
1,196,131 |
|
|
$ |
1,155,426 |
|
|
3.5 |
% |
Total funding (1) |
|
$ |
1,746,217 |
|
|
$ |
1,713,812 |
|
|
1.9 |
% |
|
$ |
1,488,560 |
|
|
17.3 |
% |
|
$ |
1,661,765 |
|
|
$ |
1,481,130 |
|
|
12.2 |
% |
Annualized average yield/cost of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans |
|
4.81 |
% |
|
4.73 |
% |
|
|
|
6.22 |
% |
|
|
|
5.05 |
% |
|
6.31 |
% |
|
|
||||||||
Investment securities |
|
1.60 |
% |
|
1.80 |
% |
|
|
|
2.40 |
% |
|
|
|
1.85 |
% |
|
2.53 |
% |
|
|
||||||||
Other interest-earning assets |
|
0.26 |
% |
|
0.26 |
% |
|
|
|
2.43 |
% |
|
|
|
0.57 |
% |
|
2.57 |
% |
|
|
||||||||
Total interest-earning assets |
|
4.00 |
% |
|
3.97 |
% |
|
|
|
5.55 |
% |
|
|
|
4.31 |
% |
|
5.62 |
% |
|
|
||||||||
Interest-bearing deposits |
|
0.97 |
% |
|
1.24 |
% |
|
|
|
2.13 |
% |
|
|
|
1.33 |
% |
|
2.12 |
% |
|
|
||||||||
Borrowings |
|
0.51 |
% |
|
0.62 |
% |
|
|
|
1.91 |
% |
|
|
|
0.66 |
% |
|
1.84 |
% |
|
|
||||||||
Total interest-bearing liabilities |
|
0.92 |
% |
|
1.17 |
% |
|
|
|
2.13 |
% |
|
|
|
1.28 |
% |
|
2.12 |
% |
|
|
||||||||
Net interest margin |
|
3.43 |
% |
|
3.22 |
% |
|
|
|
4.11 |
% |
|
|
|
3.49 |
% |
|
4.16 |
% |
|
|
||||||||
Cost of total funding (1) |
|
0.63 |
% |
|
0.85 |
% |
|
|
|
1.64 |
% |
|
|
|
0.92 |
% |
|
1.65 |
% |
|
|
||||||||
Supplementary information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net accretion of discount on loans included in interest on loans |
|
$ |
743 |
|
|
$ |
530 |
|
|
40.2 |
% |
|
$ |
1,031 |
|
|
(27.9 |
)% |
|
$ |
2,301 |
|
|
$ |
3,083 |
|
|
(25.4 |
)% |
Net amortization of deferred loan fees (costs) |
|
$ |
1,218 |
|
|
$ |
649 |
|
|
87.7 |
% |
|
$ |
118 |
|
|
932.2 |
% |
|
$ |
1,988 |
|
|
$ |
327 |
|
|
508.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(1) |
Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding. |
Loans. The increase in average balance for the current quarter and year compared with the same periods of 2019 was primarily due to the SBA PPP loan production in the previous quarter as well as an increase in commercial property loans. The increase in average yield for the current quarter compared with the previous quarter was primarily due to an increase in net accretion of discount on loans from the increase in loan payoffs and an increase in amortization of net deferred fees on SBA PPP loans. The decreases in average yield for the current quarter and year compared with the same periods of 2019 were primarily due to the lower market rates, the low interest rate on SBA PPP loans, and a decrease in net accretion of discount.
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:
|
|
9/30/2020 |
|
6/30/2020 |
|
12/31/2019 |
|
9/30/2019 |
||||||||||||||||
|
|
% to Total
|
|
Weighted-
|
|
% to Total
|
|
Weighted-
|
|
% to Total
|
|
Weighted-
|
|
% to Total
|
|
Weighted-
|
||||||||
Fixed rate loans |
|
40.6 |
% |
|
4.12 |
% |
|
38.4 |
% |
|
4.18 |
% |
|
28.2 |
% |
|
5.29 |
% |
|
24.2 |
% |
|
5.40 |
% |
Hybrid rate loans |
|
12.2 |
% |
|
4.98 |
% |
|
13.3 |
% |
|
4.99 |
% |
|
15.2 |
% |
|
5.03 |
% |
|
16.3 |
% |
|
5.04 |
% |
Variable rate loans |
|
47.2 |
% |
|
4.10 |
% |
|
48.3 |
% |
|
4.11 |
% |
|
56.6 |
% |
|
5.51 |
% |
|
59.5 |
% |
|
5.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment Securities. The decrease in average yield for the current quarter compared with the previous quarter was primarily due to new investment securities purchased under the lower market rates. The decreases in average yield for the current quarter and year compared with the same periods of 2019 were primarily due to the new investment securities purchased, as well as sales of securities available-for-sale of
Other Interest-Earning Assets. The decreases in average yield for the current quarter and year compared with the same periods of 2019 were primarily due to the lower market rates. The increases in average balance for the current quarter and year compared with the same periods of 2019 were primarily due to increases in deposits and other borrowings during the current quarter and year as the Company maintains most of its cash at the Federal Reserve Bank account. See the balance change discussion for the current quarter in “Deposits” under the “Balance Sheet” discussion.
Interest-Bearing Deposits. The decreases in average cost for the current quarter and year were primarily due to the continuing decreases in market rates.
Borrowings. The Company maintained a higher balance of Federal Home Loan Bank (“FHLB”) advances during the current year as a part of the Company’s liquidity management. At September 30, 2020, the Company had a total outstanding FHLB advances of
Provision (reversal) for Loan Losses
Provision (reversal) for loan losses was
The following table presents allowance for loan losses to total loans held-for-investment ratio for the dates indicated:
|
|
9/30/2020 |
|
6/30/2020 |
|
12/31/2019 |
|
9/30/2019 |
||||||||
Total loans held-for-investment |
|
$ |
1,578,804 |
|
|
$ |
1,553,589 |
|
|
$ |
1,450,831 |
|
|
$ |
1,389,830 |
|
Less: SBA PPP loans |
|
136,418 |
|
|
133,675 |
|
|
— |
|
|
— |
|
||||
Total loans held-for-investment, excluding SBA PPP loans |
|
$ |
1,442,386 |
|
|
$ |
1,419,914 |
|
|
$ |
1,450,831 |
|
|
$ |
1,389,830 |
|
Allowance for loan losses |
|
$ |
24,546 |
|
|
$ |
20,248 |
|
|
$ |
14,380 |
|
|
$ |
13,094 |
|
Allowance for loan losses to total loans held-for-investment |
|
1.55 |
% |
|
1.30 |
% |
|
0.99 |
% |
|
0.94 |
% |
||||
Allowance for loan losses to total loans held-for-investment, excluding SBA PPP loans |
|
1.70 |
% |
|
1.43 |
% |
|
0.99 |
% |
|
0.94 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
Noninterest Income
The following table presents the components of noninterest income for the periods indicated:
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||||||
($ in thousands) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
9/30/2019 |
|
% Change |
|
9/30/2020 |
|
9/30/2019 |
|
% Change |
|||||||||||||
Gain on sale of loans |
|
$ |
821 |
|
|
$ |
1,498 |
|
|
(45.2 |
)% |
|
$ |
1,540 |
|
|
(46.7 |
)% |
|
$ |
3,044 |
|
|
$ |
4,551 |
|
|
(33.1 |
)% |
Service charges and fees on deposits |
|
280 |
|
|
275 |
|
|
1.8 |
% |
|
405 |
|
|
(30.9 |
)% |
|
945 |
|
|
1,137 |
|
|
(16.9 |
)% |
|||||
Loan servicing income |
|
856 |
|
|
902 |
|
|
(5.1 |
)% |
|
534 |
|
|
60.3 |
% |
|
2,312 |
|
|
1,657 |
|
|
39.5 |
% |
|||||
Other income |
|
315 |
|
|
243 |
|
|
29.6 |
% |
|
323 |
|
|
(2.5 |
)% |
|
915 |
|
|
920 |
|
|
(0.5 |
)% |
|||||
Total noninterest income |
|
$ |
2,272 |
|
|
$ |
2,918 |
|
|
(22.1 |
)% |
|
$ |
2,802 |
|
|
(18.9 |
)% |
|
$ |
7,216 |
|
|
$ |
8,265 |
|
|
(12.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
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) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
9/30/2019 |
|
% Change |
|
9/30/2020 |
|
9/30/2019 |
|
% Change |
|||||||||||||
Gain on sale of SBA loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sold loan balance |
|
$ |
8,582 |
|
|
$ |
27,066 |
|
|
(68.3 |
)% |
|
$ |
22,186 |
|
|
(61.3 |
)% |
|
$ |
47,363 |
|
|
$ |
72,537 |
|
|
(34.7 |
)% |
Premium received |
|
917 |
|
|
2,042 |
|
|
(55.1 |
)% |
|
2,061 |
|
|
(55.5 |
)% |
|
4,015 |
|
|
6,288 |
|
|
(36.1 |
)% |
|||||
Gain recognized |
|
689 |
|
|
1,448 |
|
|
(52.4 |
)% |
|
1,498 |
|
|
(54.0 |
)% |
|
2,841 |
|
|
4,487 |
|
|
(36.7 |
)% |
|||||
Gain on sale of residential property loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sold loan balance |
|
$ |
16,585 |
|
|
$ |
6,118 |
|
|
171.1 |
% |
|
$ |
4,661 |
|
|
255.8 |
% |
|
$ |
24,782 |
|
|
$ |
7,432 |
|
|
233.4 |
% |
Gain recognized |
|
132 |
|
|
50 |
|
|
164.0 |
% |
|
42 |
|
|
214.3 |
% |
|
203 |
|
|
64 |
|
|
217.2 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
The Company maintained SBA loans held-for-sale of
Loan Servicing Income. The Company services SBA loans and certain residential property loans that are sold to the secondary market. The increases for current quarter and year compared with the same period of 2019 were primarily due to a decrease in servicing asset amortization from a lower loan payoffs. The following table presents information on loan servicing income for the periods indicated.
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||||||
($ in thousands) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
9/30/2019 |
|
% Change |
|
9/30/2020 |
|
9/30/2019 |
|
% Change |
|||||||||||||
Loan servicing income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Servicing income received |
|
$ |
1,244 |
|
|
$ |
1,294 |
|
|
(3.9 |
)% |
|
$ |
1,195 |
|
|
4.1 |
% |
|
$ |
3,696 |
|
|
$ |
3,532 |
|
|
4.6 |
% |
Servicing assets amortization |
|
(388 |
) |
|
(392 |
) |
|
(1.0 |
)% |
|
(661 |
) |
|
(41.3 |
)% |
|
(1,384 |
) |
|
(1,875 |
) |
|
(26.2 |
)% |
|||||
Loan servicing income |
|
$ |
856 |
|
|
$ |
902 |
|
|
(5.1 |
)% |
|
$ |
534 |
|
|
60.3 |
% |
|
$ |
2,312 |
|
|
$ |
1,657 |
|
|
39.5 |
% |
Underlying loans at end of period |
|
$ |
484,651 |
|
|
$ |
494,000 |
|
|
(1.9 |
)% |
|
$ |
493,923 |
|
|
(1.9 |
)% |
|
$ |
484,651 |
|
|
$ |
493,923 |
|
|
(1.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated:
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||||||
($ in thousands) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
9/30/2019 |
|
% Change |
|
9/30/2020 |
|
9/30/2019 |
|
% Change |
|||||||||||||
Salaries and employee benefits |
|
$ |
6,438 |
|
|
$ |
5,761 |
|
|
11.8 |
% |
|
$ |
6,901 |
|
|
(6.7 |
)% |
|
$ |
18,750 |
|
|
$ |
20,123 |
|
|
(6.8 |
)% |
Occupancy and equipment |
|
1,416 |
|
|
1,400 |
|
|
1.1 |
% |
|
1,408 |
|
|
0.6 |
% |
|
4,196 |
|
|
4,128 |
|
|
1.6 |
% |
|||||
Professional fees |
|
325 |
|
|
509 |
|
|
(36.1 |
)% |
|
664 |
|
|
(51.1 |
)% |
|
1,631 |
|
|
2,108 |
|
|
(22.6 |
)% |
|||||
Marketing and business promotion |
|
193 |
|
|
548 |
|
|
(64.8 |
)% |
|
292 |
|
|
(33.9 |
)% |
|
920 |
|
|
1,049 |
|
|
(12.3 |
)% |
|||||
Data processing |
|
373 |
|
|
366 |
|
|
1.9 |
% |
|
348 |
|
|
7.2 |
% |
|
1,097 |
|
|
1,004 |
|
|
9.3 |
% |
|||||
Director fees and expenses |
|
125 |
|
|
107 |
|
|
16.8 |
% |
|
188 |
|
|
(33.5 |
)% |
|
453 |
|
|
562 |
|
|
(19.4 |
)% |
|||||
Regulatory assessments |
|
267 |
|
|
242 |
|
|
10.3 |
% |
|
— |
|
|
— |
% |
|
728 |
|
|
425 |
|
|
71.3 |
% |
|||||
Other expenses |
|
749 |
|
|
763 |
|
|
(1.8 |
)% |
|
976 |
|
|
(23.3 |
)% |
|
2,374 |
|
|
2,651 |
|
|
(10.4 |
)% |
|||||
Total noninterest expense |
|
$ |
9,886 |
|
|
$ |
9,696 |
|
|
2.0 |
% |
|
$ |
10,777 |
|
|
(8.3 |
)% |
|
$ |
30,149 |
|
|
$ |
32,050 |
|
|
(5.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Salaries and Employee Benefits. The increase for the current quarter compared with the previous quarter was primarily due to a direct loan origination cost of
Professional Fees. The decreases for the current quarter and year compared with the same periods of 2019 were primarily due to a decrease in expenses related to the BSA/AML compliance enhancements. During the current quarter, the consent order related to the Bank's BSA/AML was terminated.
Marketing and business promotion. The decrease for the current quarter compared with the previous quarter was primarily due to a decrease in advertisement.
Regulatory Assessments. The increases for the current quarter and year compared with the same periods of 2019 were primarily due to a small bank credit received from the FDIC during the year-ago quarter, as well as an increase in balance sheet. The Company would have recognized regulatory assessments expense of
Balance Sheet (Unaudited)
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment, net of deferred costs (fees)) as of the dates indicated:
($ in thousands) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
12/31/2019 |
|
% Change |
|
9/30/2019 |
|
% Change |
|||||||||||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial property |
|
$ |
853,708 |
|
|
$ |
813,409 |
|
|
5.0 |
% |
|
$ |
803,014 |
|
|
6.3 |
% |
|
$ |
759,881 |
|
|
12.3 |
% |
Residential property |
|
212,804 |
|
|
223,923 |
|
|
(5.0 |
)% |
|
235,046 |
|
|
(9.5 |
)% |
|
236,382 |
|
|
(10.0 |
)% |
||||
SBA property |
|
128,038 |
|
|
122,675 |
|
|
4.4 |
% |
|
129,837 |
|
|
(1.4 |
)% |
|
126,347 |
|
|
1.3 |
% |
||||
Construction |
|
19,803 |
|
|
20,432 |
|
|
(3.1 |
)% |
|
19,164 |
|
|
3.3 |
% |
|
17,175 |
|
|
15.3 |
% |
||||
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial term |
|
90,867 |
|
|
98,936 |
|
|
(8.2 |
)% |
|
103,380 |
|
|
(12.1 |
)% |
|
105,433 |
|
|
(13.8 |
)% |
||||
Commercial lines of credit |
|
92,222 |
|
|
96,339 |
|
|
(4.3 |
)% |
|
111,768 |
|
|
(17.5 |
)% |
|
95,997 |
|
|
(3.9 |
)% |
||||
SBA commercial term |
|
23,011 |
|
|
22,650 |
|
|
1.6 |
% |
|
25,332 |
|
|
(9.2 |
)% |
|
25,326 |
|
|
(9.1 |
)% |
||||
SBA PPP |
|
136,418 |
|
|
133,675 |
|
|
2.1 |
% |
|
— |
|
|
— |
% |
|
— |
|
|
— |
% |
||||
Other consumer loans |
|
21,933 |
|
|
21,550 |
|
|
1.8 |
% |
|
23,290 |
|
|
(5.8 |
)% |
|
23,289 |
|
|
(5.8 |
)% |
||||
Loans held-for-investment |
|
1,578,804 |
|
|
1,553,589 |
|
|
1.6 |
% |
|
1,450,831 |
|
|
8.8 |
% |
|
1,389,830 |
|
|
13.6 |
% |
||||
Loans held-for-sale |
|
30,878 |
|
|
4,102 |
|
|
652.8 |
% |
|
1,975 |
|
|
1,463.4 |
% |
|
1,583 |
|
|
1,850.6 |
% |
||||
Total loans |
|
$ |
1,609,682 |
|
|
$ |
1,557,691 |
|
|
3.3 |
% |
|
$ |
1,452,806 |
|
|
10.8 |
% |
|
$ |
1,391,413 |
|
|
15.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
The increase in loans held-for-investment for the current quarter was primarily due to new funding of
The increase in loans held-for-sale for the current quarter was primarily due to new funding of
The following table presents a composition of commitments to extend credit as of the dates indicated:
($ in thousands) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
12/31/2019 |
|
% Change |
|
9/30/2019 |
|
% Change |
|||||||||||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial property |
|
$ |
17,621 |
|
|
$ |
16,962 |
|
|
3.9 |
% |
|
$ |
15,836 |
|
|
11.3 |
% |
|
$ |
17,519 |
|
|
0.6 |
% |
SBA property |
|
— |
|
|
220 |
|
|
(100.0 |
)% |
|
1,405 |
|
|
(100.0 |
)% |
|
1,523 |
|
|
(100.0 |
)% |
||||
Construction |
|
15,366 |
|
|
16,451 |
|
|
(6.6 |
)% |
|
11,557 |
|
|
33.0 |
% |
|
10,254 |
|
|
49.9 |
% |
||||
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial term |
|
1,000 |
|
|
1,000 |
|
|
— |
% |
|
1,243 |
|
|
(19.5 |
)% |
|
1,826 |
|
|
(45.2 |
)% |
||||
Commercial lines of credit |
|
173,080 |
|
|
159,753 |
|
|
8.3 |
% |
|
140,690 |
|
|
23.0 |
% |
|
139,412 |
|
|
24.2 |
% |
||||
SBA commercial term |
|
— |
|
|
— |
|
|
— |
% |
|
762 |
|
|
(100.0 |
)% |
|
391 |
|
|
(100.0 |
)% |
||||
Other consumer loans |
|
75 |
|
|
45 |
|
|
66.7 |
% |
|
115 |
|
|
(34.8 |
)% |
|
25 |
|
|
200.0 |
% |
||||
Total commitments to extend credit |
|
$ |
207,142 |
|
|
$ |
194,431 |
|
|
6.5 |
% |
|
$ |
171,608 |
|
|
20.7 |
% |
|
$ |
170,950 |
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Credit Quality
The following table presents a summary of non-performing loans, non-performing assets and classified assets as of the dates indicated:
($ in thousands) |
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
12/31/2019 |
|
% Change |
|
9/30/2019 |
|
% Change |
|||||||||||
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
SBA property |
|
$ |
923 |
|
|
$ |
1,351 |
|
|
(31.7 |
)% |
|
$ |
442 |
|
|
108.8 |
% |
|
$ |
1,441 |
|
|
(35.9 |
)% |
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial lines of credit |
|
1,525 |
|
|
1,968 |
|
|
(22.5 |
)% |
|
1,888 |
|
|
(19.2 |
)% |
|
327 |
|
|
366.4 |
% |
||||
SBA commercial term |
|
378 |
|
|
381 |
|
|
(0.8 |
)% |
|
159 |
|
|
137.7 |
% |
|
68 |
|
|
455.9 |
% |
||||
Other consumer loans |
|
67 |
|
|
70 |
|
|
(4.3 |
)% |
|
48 |
|
|
39.6 |
% |
|
7 |
|
|
857.1 |
% |
||||
Total nonaccrual loans held-for-investment |
|
2,893 |
|
|
3,770 |
|
|
(23.3 |
)% |
|
2,537 |
|
|
14.0 |
% |
|
1,843 |
|
|
57.0 |
% |
||||
Loans past due 90 days or more and still accruing |
|
699 |
|
|
696 |
|
|
0.4 |
% |
|
287 |
|
|
143.6 |
% |
|
— |
|
|
— |
% |
||||
Non-performing loans (“NPLs”) |
|
3,592 |
|
|
4,466 |
|
|
(19.6 |
)% |
|
2,824 |
|
|
27.2 |
% |
|
1,843 |
|
|
94.9 |
% |
||||
Other real estate owned (“OREO”) |
|
376 |
|
|
376 |
|
|
— |
% |
|
— |
|
|
— |
% |
|
— |
|
|
— |
% |
||||
Non-performing assets (“NPAs”) |
|
$ |
3,968 |
|
|
$ |
4,842 |
|
|
(18.1 |
)% |
|
$ |
2,824 |
|
|
40.5 |
% |
|
$ |
1,843 |
|
|
115.3 |
% |
Loans past due and still accruing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Past due 30 to 59 days |
|
$ |
298 |
|
|
$ |
311 |
|
|
(4.2 |
)% |
|
$ |
893 |
|
|
(66.6 |
)% |
|
$ |
664 |
|
|
(55.1 |
)% |
Past due 60 to 89 days |
|
3 |
|
|
113 |
|
|
(97.3 |
)% |
|
925 |
|
|
(99.7 |
)% |
|
59 |
|
|
(94.9 |
)% |
||||
Past due 90 days or more |
|
699 |
|
|
696 |
|
|
0.4 |
% |
|
287 |
|
|
143.6 |
% |
|
— |
|
|
— |
% |
||||
Total loans past due and still accruing |
|
$ |
1,000 |
|
|
$ |
1,120 |
|
|
(10.7 |
)% |
|
2,105 |
|
|
(52.5 |
)% |
|
$ |
723 |
|
|
38.3 |
% |
|
Troubled debt restructurings (“TDRs”): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accruing TDRs |
|
$ |
649 |
|
|
$ |
669 |
|
|
(3.0 |
)% |
|
$ |
700 |
|
|
(7.3 |
)% |
|
$ |
713 |
|
|
(9.0 |
)% |
Nonaccrual TDRs |
|
38 |
|
|
40 |
|
|
(5.0 |
)% |
|
121 |
|
|
(68.6 |
)% |
|
249 |
|
|
(84.7 |
)% |
||||
Total TDRs |
|
$ |
687 |
|
|
$ |
709 |
|
|
(3.1 |
)% |
|
$ |
821 |
|
|
(16.3 |
)% |
|
$ |
962 |
|
|
(28.6 |
)% |
Criticized loans |
|
$ |
4,746 |
|
|
$ |
71 |
|
|
6,584.5 |
% |
|
$ |
1,783 |
|
|
166.2 |
% |
|
$ |
1,763 |
|
|
169.2 |
% |
Classified assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Classified loans |
|
$ |
4,860 |
|
|
$ |
5,809 |
|
|
(16.3 |
)% |
|
$ |
8,862 |
|
|
(45.2 |
)% |
|
$ |
7,878 |
|
|
(38.3 |
)% |
OREO |
|
376 |
|
|
376 |
|
|
— |
% |
|
— |
|
|
— |
% |
|
— |
|
|
— |
% |
||||
Classified assets |
|
$ |
5,236 |
|
|
$ |
6,185 |
|
|
(15.3 |
)% |
|
$ |
8,862 |
|
|
(40.9 |
)% |
|
$ |
7,878 |
|
|
(33.5 |
)% |
NPLs to loans held-for-investment |
|
0.23 |
% |
|
0.29 |
% |
|
|
|
0.19 |
% |
|
|
|
0.13 |
% |
|
|
|||||||
NPAs to total assets |
|
0.20 |
% |
|
0.24 |
% |
|
|
|
0.16 |
% |
|
|
|
0.11 |
% |
|
|
|||||||
Classified assets to total assets |
|
0.26 |
% |
|
0.31 |
% |
|
|
|
0.51 |
% |
|
|
|
0.46 |
% |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
The Company had a residential property loan past due 90 days or more and still accruing at September 30, 2020 and June 30, 2020, which management believes that the loan is well secured and the Bank is in the process of collection.
Loan Modifications Related to the COVID-19 Pandemic
The Company provided modifications, including interest only payments or payment deferrals, to customers that were adversely affected by the COVID-19 pandemic. The loan modifications met all criteria under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) Act. Therefore, the modified loans were not considered TDRs. The following table presents a summary of loans with modifications related to the COVID-19 pandemic by portfolio segment as of September 30, 2020:
|
|
Modification Type |
|
|
|
Weighted-
|
|
Accrued
|
|||||||||||
($ in thousands) |
|
Payment
|
|
Interest Only |
|
Total |
|
|
|||||||||||
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial property |
|
$ |
135,165 |
|
|
$ |
2,397 |
|
|
$ |
137,562 |
|
|
4.49 |
% |
|
$ |
3,048 |
|
Residential property |
|
19,233 |
|
|
— |
|
|
19,233 |
|
|
4.91 |
% |
|
519 |
|
||||
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial term |
|
11,797 |
|
|
2,960 |
|
|
14,757 |
|
|
4.29 |
% |
|
309 |
|
||||
SBA commercial term |
|
— |
|
|
72 |
|
|
72 |
|
|
5.25 |
% |
|
1 |
|
||||
Total |
|
$ |
166,195 |
|
|
$ |
5,429 |
|
|
$ |
171,624 |
|
|
4.52 |
% |
|
$ |
3,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment Securities
During the previous quarter, the Company transferred securities held-to-maturity to securities available-for-sale as a part of the Company’s liquidity management plan in response to the COVID-19 pandemic. The Company transferred all of securities held-to-maturity of
Total investment securities were
The increase for the current quarter was primarily due to purchases of
Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
|
|
9/30/2020 |
|
6/30/2020 |
|
12/31/2019 |
|
9/30/2019 |
||||||||||||||||||||
($ in thousands) |
|
Amount |
|
% to Total |
|
Amount |
|
% to Total |
|
Amount |
|
% to Total |
|
Amount |
|
% to Total |
||||||||||||
Noninterest-bearing demand deposits |
|
$ |
576,086 |
|
|
35.0 |
% |
|
$ |
551,415 |
|
|
33.5 |
% |
|
$ |
360,039 |
|
|
24.3 |
% |
|
$ |
353,448 |
|
|
24.7 |
% |
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings |
|
11,124 |
|
|
0.7 |
% |
|
8,258 |
|
|
0.5 |
% |
|
6,492 |
|
|
0.4 |
% |
|
8,206 |
|
|
0.6 |
% |
||||
NOW |
|
21,726 |
|
|
1.3 |
% |
|
21,173 |
|
|
1.3 |
% |
|
17,673 |
|
|
1.2 |
% |
|
16,108 |
|
|
1.1 |
% |
||||
Retail money market accounts |
|
344,939 |
|
|
20.9 |
% |
|
339,444 |
|
|
20.6 |
% |
|
307,980 |
|
|
20.8 |
% |
|
307,663 |
|
|
21.5 |
% |
||||
Brokered money market accounts |
|
30,001 |
|
|
1.9 |
% |
|
10 |
|
|
0.1 |
% |
|
30,034 |
|
|
2.0 |
% |
|
10,003 |
|
|
0.7 |
% |
||||
Retail time deposits of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
312,171 |
|
|
18.9 |
% |
|
347,382 |
|
|
21.0 |
% |
|
405,004 |
|
|
27.5 |
% |
|
417,549 |
|
|
29.1 |
% |
||||
More than |
|
167,208 |
|
|
10.2 |
% |
|
170,180 |
|
|
10.3 |
% |
|
199,726 |
|
|
13.5 |
% |
|
206,785 |
|
|
14.4 |
% |
||||
Time deposits from internet rate service providers |
|
31,852 |
|
|
1.9 |
% |
|
37,068 |
|
|
2.3 |
% |
|
— |
|
|
— |
% |
|
— |
|
|
— |
% |
||||
State and brokered time deposits |
|
152,000 |
|
|
9.2 |
% |
|
172,000 |
|
|
10.4 |
% |
|
152,359 |
|
|
10.3 |
% |
|
112,500 |
|
|
7.9 |
% |
||||
Total interest-bearing deposits |
|
1,071,021 |
|
|
65.0 |
% |
|
1,095,515 |
|
|
66.5 |
% |
|
1,119,268 |
|
|
75.7 |
% |
|
1,078,814 |
|
|
75.3 |
% |
||||
Total deposits |
|
$ |
1,647,107 |
|
|
100.0 |
% |
|
$ |
1,646,930 |
|
|
100.0 |
% |
|
$ |
1,479,307 |
|
|
100.0 |
% |
|
$ |
1,432,262 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The increase in noninterest-bearing demand deposits for the current quarter was primarily due to the deposit increases from customers with SBA PPP loans and SBA Economic Injury Disaster Loans, as well as the overall liquid deposit market. A total of
The decrease in retail time deposits for the current quarter was primarily due to matured and closed accounts of
Liquidity
The following table presents a summary of the Company’s liquidity position as of September 30, 2020:
($ in thousands) |
|
9/30/2020 |
||
Cash and cash equivalents |
|
$ |
257,382 |
|
Cash and cash equivalents to total assets |
|
12.7 |
% |
|
|
|
|
||
Available borrowing capacity: |
|
|
||
FHLB advances |
|
$ |
321,067 |
|
Federal Reserve Discount Window |
|
33,801 |
|
|
Overnight federal funds lines |
|
65,000 |
|
|
Total |
|
$ |
419,868 |
|
Total available borrowing capacity to total assets |
|
20.8 |
% |
|
|
|
|
||
Shareholders’ Equity
Shareholders’ equity was
Capital Ratios
Based on changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to
|
|
9/30/2020 |
|
6/30/2020 |
|
12/31/2019 |
|
9/30/2019 |
|
Well
|
|||||
PCB Bancorp |
|
|
|
|
|
|
|
|
|
|
|||||
Common tier 1 capital (to risk-weighted assets) |
|
15.60 |
% |
|
15.83 |
% |
|
15.87 |
% |
|
16.30 |
% |
|
N/A |
|
Total capital (to risk-weighted assets) |
|
16.86 |
% |
|
17.09 |
% |
|
16.90 |
% |
|
17.27 |
% |
|
N/A |
|
Tier 1 capital (to risk-weighted assets) |
|
15.60 |
% |
|
15.83 |
% |
|
15.87 |
% |
|
16.30 |
% |
|
N/A |
|
Tier 1 capital (to average assets) |
|
11.40 |
% |
|
11.49 |
% |
|
13.23 |
% |
|
12.87 |
% |
|
N/A |
|
Pacific City Bank |
|
|
|
|
|
|
|
|
|
|
|||||
Common tier 1 capital (to risk-weighted assets) |
|
15.34 |
% |
|
15.58 |
% |
|
15.68 |
% |
|
16.11 |
% |
|
6.5 |
% |
Total capital (to risk-weighted assets) |
|
16.60 |
% |
|
16.83 |
% |
|
16.71 |
% |
|
17.08 |
% |
|
10.0 |
% |
Tier 1 capital (to risk-weighted assets) |
|
15.34 |
% |
|
15.58 |
% |
|
15.68 |
% |
|
16.11 |
% |
|
8.0 |
% |
Tier 1 capital (to average assets) |
|
11.21 |
% |
|
11.30 |
% |
|
13.06 |
% |
|
12.72 |
% |
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
About PCB Bancorp
PCB Bancorp, formerly known as Pacific City Financial Corporation, is the bank holding company for Pacific City 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 our borrowers' actual payment performance as loan deferrals related to the COVID-19 pandemic expire, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19 pandemic, including the potential adverse impact of loan modifications and payment deferrals implemented consistent with recent regulatory guidance, and the general economic uncertainty caused by the COVID-19 pandemic, and government and societal responses thereto. These and other important factors are detailed in various securities law filings made periodically by the Company, copies of which are available 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 we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.
PCB Bancorp and Subsidiary |
|||||||||||||||||||||||||
Consolidated Balance Sheets (Unaudited) |
|||||||||||||||||||||||||
($ in thousands, except share and per share data) |
|||||||||||||||||||||||||
|
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
12/31/2019 |
|
% Change |
|
9/30/2019 |
|
% Change |
|||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and due from banks |
|
$ |
13,572 |
|
|
$ |
18,255 |
|
|
(25.7 |
)% |
|
$ |
17,808 |
|
|
(23.8 |
)% |
|
$ |
22,546 |
|
|
(39.8 |
)% |
Interest-bearing deposits in financial institutions |
|
243,810 |
|
|
289,348 |
|
|
(15.7 |
)% |
|
128,420 |
|
|
89.9 |
% |
|
99,366 |
|
|
145.4 |
% |
||||
Total cash and cash equivalents |
|
257,382 |
|
|
307,603 |
|
|
(16.3 |
)% |
|
146,228 |
|
|
76.0 |
% |
|
121,912 |
|
|
111.1 |
% |
||||
Securities available-for-sale, at fair value |
|
128,982 |
|
|
128,049 |
|
|
0.7 |
% |
|
97,566 |
|
|
32.2 |
% |
|
134,602 |
|
|
(4.2 |
)% |
||||
Securities held-to-maturity |
|
— |
|
|
— |
|
|
— |
% |
|
20,154 |
|
|
(100.0 |
)% |
|
21,601 |
|
|
(100.0 |
)% |
||||
Total investment securities |
|
128,982 |
|
|
128,049 |
|
|
0.7 |
% |
|
117,720 |
|
|
9.6 |
% |
|
156,203 |
|
|
(17.4 |
)% |
||||
Loans held-for-sale |
|
30,878 |
|
|
4,102 |
|
|
652.8 |
% |
|
1,975 |
|
|
1,463.4 |
% |
|
1,583 |
|
|
1,850.6 |
% |
||||
Loans held-for-investment, net of deferred loan costs (fees) |
|
1,578,804 |
|
|
1,553,589 |
|
|
1.6 |
% |
|
1,450,831 |
|
|
8.8 |
% |
|
1,389,830 |
|
|
13.6 |
% |
||||
Allowance for loan losses |
|
(24,546 |
) |
|
(20,248 |
) |
|
21.2 |
% |
|
(14,380 |
) |
|
70.7 |
% |
|
(13,094 |
) |
|
87.5 |
% |
||||
Net loans held-for-investment |
|
1,554,258 |
|
|
1,533,341 |
|
|
1.4 |
% |
|
1,436,451 |
|
|
8.2 |
% |
|
1,376,736 |
|
|
12.9 |
% |
||||
Premises and equipment, net |
|
4,355 |
|
|
4,542 |
|
|
(4.1 |
)% |
|
3,760 |
|
|
15.8 |
% |
|
4,008 |
|
|
8.7 |
% |
||||
Federal Home Loan Bank and other bank stock |
|
8,447 |
|
|
8,447 |
|
|
— |
% |
|
8,345 |
|
|
1.2 |
% |
|
8,345 |
|
|
1.2 |
% |
||||
Other real estate owned, net |
|
376 |
|
|
376 |
|
|
— |
% |
|
— |
|
|
— |
% |
|
— |
|
|
— |
% |
||||
Deferred tax assets, net |
|
7,454 |
|
|
6,347 |
|
|
17.4 |
% |
|
5,288 |
|
|
41.0 |
% |
|
3,389 |
|
|
119.9 |
% |
||||
Servicing assets |
|
6,166 |
|
|
6,399 |
|
|
(3.6 |
)% |
|
6,798 |
|
|
(9.3 |
)% |
|
6,899 |
|
|
(10.6 |
)% |
||||
Operating lease assets |
|
7,329 |
|
|
7,843 |
|
|
(6.6 |
)% |
|
8,991 |
|
|
(18.5 |
)% |
|
9,561 |
|
|
(23.3 |
)% |
||||
Accrued interest receivable |
|
11,246 |
|
|
9,498 |
|
|
18.4 |
% |
|
5,136 |
|
|
119.0 |
% |
|
4,906 |
|
|
129.2 |
% |
||||
Other assets |
|
4,314 |
|
|
4,230 |
|
|
2.0 |
% |
|
5,636 |
|
|
(23.5 |
)% |
|
5,904 |
|
|
(26.9 |
)% |
||||
Total assets |
|
$ |
2,021,187 |
|
|
$ |
2,020,777 |
|
|
— |
% |
|
$ |
1,746,328 |
|
|
15.7 |
% |
|
$ |
1,699,446 |
|
|
18.9 |
% |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest-bearing demand |
|
$ |
576,086 |
|
|
$ |
551,415 |
|
|
4.5 |
% |
|
$ |
360,039 |
|
|
60.0 |
% |
|
$ |
353,448 |
|
|
63.0 |
% |
Savings, NOW and money market accounts |
|
407,790 |
|
|
368,885 |
|
|
10.5 |
% |
|
362,179 |
|
|
12.6 |
% |
|
341,980 |
|
|
19.2 |
% |
||||
Time deposits of |
|
406,023 |
|
|
466,450 |
|
|
(13.0 |
)% |
|
467,363 |
|
|
(13.1 |
)% |
|
440,049 |
|
|
(7.7 |
)% |
||||
Time deposits of more than |
|
257,208 |
|
|
260,180 |
|
|
(1.1 |
)% |
|
289,726 |
|
|
(11.2 |
)% |
|
296,785 |
|
|
(13.3 |
)% |
||||
Total deposits |
|
1,647,107 |
|
|
1,646,930 |
|
|
— |
% |
|
1,479,307 |
|
|
11.3 |
% |
|
1,432,262 |
|
|
15.0 |
% |
||||
Federal Home Loan Bank advances |
|
130,000 |
|
|
130,000 |
|
|
— |
% |
|
20,000 |
|
|
550.0 |
% |
|
20,000 |
|
|
550.0 |
% |
||||
Operating lease liabilities |
|
8,204 |
|
|
8,758 |
|
|
(6.3 |
)% |
|
9,990 |
|
|
(17.9 |
)% |
|
10,574 |
|
|
(22.4 |
)% |
||||
Accrued interest payable and other liabilities |
|
6,537 |
|
|
7,856 |
|
|
(16.8 |
)% |
|
10,197 |
|
|
(35.9 |
)% |
|
11,967 |
|
|
(45.4 |
)% |
||||
Total liabilities |
|
1,791,848 |
|
|
1,793,544 |
|
|
(0.1 |
)% |
|
1,519,494 |
|
|
17.9 |
% |
|
1,474,803 |
|
|
21.5 |
% |
||||
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Shareholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock, no par value |
|
163,960 |
|
|
163,759 |
|
|
0.1 |
% |
|
169,221 |
|
|
(3.1 |
)% |
|
169,224 |
|
|
(3.1 |
)% |
||||
Retained earnings |
|
63,443 |
|
|
61,532 |
|
|
3.1 |
% |
|
57,670 |
|
|
10.0 |
% |
|
54,768 |
|
|
15.8 |
% |
||||
Accumulated other comprehensive income (loss), net |
|
1,936 |
|
|
1,942 |
|
|
(0.3 |
)% |
|
(57 |
) |
|
NM |
|
|
651 |
|
|
197.4 |
% |
||||
Total shareholders’ equity |
|
229,339 |
|
|
227,233 |
|
|
0.9 |
% |
|
226,834 |
|
|
1.1 |
% |
|
224,643 |
|
|
2.1 |
% |
||||
Total liabilities and shareholders’ equity |
|
$ |
2,021,187 |
|
|
$ |
2,020,777 |
|
|
— |
% |
|
$ |
1,746,328 |
|
|
15.7 |
% |
|
$ |
1,699,446 |
|
|
18.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Outstanding common shares |
|
15,379,538 |
|
|
15,377,935 |
|
|
|
|
15,707,016 |
|
|
|
|
15,710,287 |
|
|
|
|||||||
Book value per common share (1) |
|
$ |
14.91 |
|
|
$ |
14.78 |
|
|
|
|
$ |
14.44 |
|
|
|
|
$ |
14.30 |
|
|
|
|||
Total loan to total deposit ratio |
|
97.73 |
% |
|
94.58 |
% |
|
|
|
98.21 |
% |
|
|
|
97.15 |
% |
|
|
|||||||
Noninterest-bearing deposits to total deposits |
|
34.98 |
% |
|
33.48 |
% |
|
|
|
24.34 |
% |
|
|
|
24.68 |
% |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(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. |
PCB Bancorp and Subsidiary |
|||||||||||||||||||||||||||||
Consolidated Statements of Income (Unaudited) |
|||||||||||||||||||||||||||||
($ in thousands, except share and per share data) |
|||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||||||
|
|
9/30/2020 |
|
6/30/2020 |
|
% Change |
|
9/30/2019 |
|
% Change |
|
9/30/2020 |
|
9/30/2019 |
|
% Change |
|||||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest and fees on loans |
|
$ |
18,938 |
|
|
$ |
18,273 |
|
|
3.6 |
% |
|
$ |
21,876 |
|
|
(13.4 |
)% |
|
$ |
57,617 |
|
|
$ |
64,779 |
|
|
(11.1 |
)% |
Interest on investment securities |
|
515 |
|
|
539 |
|
|
(4.5 |
)% |
|
978 |
|
|
(47.3 |
)% |
|
1,698 |
|
|
3,133 |
|
|
(45.8 |
)% |
|||||
Interest and dividend on other interest-earning assets |
|
167 |
|
|
161 |
|
|
3.7 |
% |
|
833 |
|
|
(80.0 |
)% |
|
938 |
|
|
2,757 |
|
|
(66.0 |
)% |
|||||
Total interest income |
|
19,620 |
|
|
18,973 |
|
|
3.4 |
% |
|
23,687 |
|
|
(17.2 |
)% |
|
60,253 |
|
|
70,669 |
|
|
(14.7 |
)% |
|||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest on deposits |
|
2,599 |
|
|
3,409 |
|
|
(23.8 |
)% |
|
6,060 |
|
|
(57.1 |
)% |
|
11,000 |
|
|
17,925 |
|
|
(38.6 |
)% |
|||||
Interest on other borrowings |
|
168 |
|
|
201 |
|
|
(16.4 |
)% |
|
98 |
|
|
71.4 |
% |
|
471 |
|
|
370 |
|
|
27.3 |
% |
|||||
Total interest expense |
|
2,767 |
|
|
3,610 |
|
|
(23.4 |
)% |
|
6,158 |
|
|
(55.1 |
)% |
|
11,471 |
|
|
18,295 |
|
|
(37.3 |
)% |
|||||
Net interest income |
|
16,853 |
|
|
15,363 |
|
|
9.7 |
% |
|
17,529 |
|
|
(3.9 |
)% |
|
48,782 |
|
|
52,374 |
|
|
(6.9 |
)% |
|||||
Provision (reversal) for loan losses |
|
4,326 |
|
|
3,855 |
|
|
12.2 |
% |
|
(102 |
) |
|
NM |
|
|
11,077 |
|
|
207 |
|
|
5,251.2 |
% |
|||||
Net interest income after provision (reversal) for loan losses |
|
12,527 |
|
|
11,508 |
|
|
8.9 |
% |
|
17,631 |
|
|
(28.9 |
)% |
|
37,705 |
|
|
52,167 |
|
|
(27.7 |
)% |
|||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gain on sale of loans |
|
821 |
|
|
1,498 |
|
|
(45.2 |
)% |
|
1,540 |
|
|
(46.7 |
)% |
|
3,044 |
|
|
4,551 |
|
|
(33.1 |
)% |
|||||
Service charges and fees on deposits |
|
280 |
|
|
275 |
|
|
1.8 |
% |
|
405 |
|
|
(30.9 |
)% |
|
945 |
|
|
1,137 |
|
|
(16.9 |
)% |
|||||
Loan servicing income |
|
856 |
|
|
902 |
|
|
(5.1 |
)% |
|
534 |
|
|
60.3 |
% |
|
2,312 |
|
|
1,657 |
|
|
39.5 |
% |
|||||
Other income |
|
315 |
|
|
243 |
|
|
29.6 |
% |
|
323 |
|
|
(2.5 |
)% |
|
915 |
|
|
920 |
|
|
(0.5 |
)% |
|||||
Total noninterest income |
|
2,272 |
|
|
2,918 |
|
|
(22.1 |
)% |
|
2,802 |
|
|
(18.9 |
)% |
|
7,216 |
|
|
8,265 |
|
|
(12.7 |
)% |
|||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Salaries and employee benefits |
|
6,438 |
|
|
5,761 |
|
|
11.8 |
% |
|
6,901 |
|
|
(6.7 |
)% |
|
18,750 |
|
|
20,123 |
|
|
(6.8 |
)% |
|||||
Occupancy and equipment |
|
1,416 |
|
|
1,400 |
|
|
1.1 |
% |
|
1,408 |
|
|
0.6 |
% |
|
4,196 |
|
|
4,128 |
|
|
1.6 |
% |
|||||
Professional fees |
|
325 |
|
|
509 |
|
|
(36.1 |
)% |
|
664 |
|
|
(51.1 |
)% |
|
1,631 |
|
|
2,108 |
|
|
(22.6 |
)% |
|||||
Marketing and business promotion |
|
193 |
|
|
548 |
|
|
(64.8 |
)% |
|
292 |
|
|
(33.9 |
)% |
|
920 |
|
|
1,049 |
|
|
(12.3 |
)% |
|||||
Data processing |
|
373 |
|
|
366 |
|
|
1.9 |
% |
|
348 |
|
|
7.2 |
% |
|
1,097 |
|
|
1,004 |
|
|
9.3 |
% |
|||||
Director fees and expenses |
|
125 |
|
|
107 |
|
|
16.8 |
% |
|
188 |
|
|
(33.5 |
)% |
|
453 |
|
|
562 |
|
|
(19.4 |
)% |
|||||
Regulatory assessments |
|
267 |
|
|
242 |
|
|
10.3 |
% |
|
— |
|
|
— |
% |
|
728 |
|
|
425 |
|
|
71.3 |
% |
|||||
Other expenses |
|
749 |
|
|
763 |
|
|
(1.8 |
)% |
|
976 |
|
|
(23.3 |
)% |
|
2,374 |
|
|
2,651 |
|
|
(10.4 |
)% |
|||||
Total noninterest expense |
|
9,886 |
|
|
9,696 |
|
|
2.0 |
% |
|
10,777 |
|
|
(8.3 |
)% |
|
30,149 |
|
|
32,050 |
|
|
(5.9 |
)% |
|||||
Income before income taxes |
|
4,913 |
|
|
4,730 |
|
|
3.9 |
% |
|
9,656 |
|
|
(49.1 |
)% |
|
14,772 |
|
|
28,382 |
|
|
(48.0 |
)% |
|||||
Income tax expense |
|
1,464 |
|
|
1,363 |
|
|
7.4 |
% |
|
2,871 |
|
|
(49.0 |
)% |
|
4,384 |
|
|
8,432 |
|
|
(48.0 |
)% |
|||||
Net income |
|
$ |
3,449 |
|
|
$ |
3,367 |
|
|
2.4 |
% |
|
$ |
6,785 |
|
|
(49.2 |
)% |
|
$ |
10,388 |
|
|
$ |
19,950 |
|
|
(47.9 |
)% |
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Basic |
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
|
|
$ |
0.43 |
|
|
|
|
$ |
0.67 |
|
|
$ |
1.25 |
|
|
|
|||
Diluted |
|
$ |
0.22 |
|
|
$ |
0.22 |
|
|
|
|
$ |
0.42 |
|
|
|
|
$ |
0.67 |
|
|
$ |
1.23 |
|
|
|
|||
Average shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Basic |
|
15,343,888 |
|
|
15,337,405 |
|
|
|
|
15,816,269 |
|
|
|
|
15,395,475 |
|
|
15,943,603 |
|
|
|
||||||||
Diluted |
|
15,377,531 |
|
|
15,373,655 |
|
|
|
|
16,099,598 |
|
|
|
|
15,466,207 |
|
|
16,231,848 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Dividend paid per common share |
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
|
|
$ |
0.06 |
|
|
|
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
|
|||
Return on average assets (1) |
|
0.69 |
% |
|
0.69 |
% |
|
|
|
1.55 |
% |
|
|
|
0.73 |
% |
|
1.55 |
% |
|
|
||||||||
Return on average shareholders’ equity (1), (2) |
|
5.98 |
% |
|
5.98 |
% |
|
|
|
12.02 |
% |
|
|
|
6.10 |
% |
|
12.15 |
% |
|
|
||||||||
Efficiency ratio (3) |
|
51.69 |
% |
|
53.04 |
% |
|
|
|
53.01 |
% |
|
|
|
53.84 |
% |
|
52.85 |
% |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(1) |
Ratios are presented on an annualized basis. |
|
(2) |
The Company did not have any intangible equity components for the presented periods. |
|
(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 |
|||||||||||||||||||||||||||||||
|
|
9/30/2020 |
|
6/30/2020 |
|
9/30/2019 |
|||||||||||||||||||||||||||
|
|
Average
|
|
Interest
|
|
Avg.
|
|
Average
|
|
Interest
|
|
Avg.
|
|
Average
|
|
Interest
|
|
Avg.
|
|||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total loans (1) |
|
$ |
1,564,704 |
|
|
$ |
18,938 |
|
|
4.81 |
% |
|
$ |
1,554,011 |
|
|
$ |
18,273 |
|
|
4.73 |
% |
|
$ |
1,396,437 |
|
|
$ |
21,876 |
|
|
6.22 |
% |
Mortgage-backed securities |
|
75,832 |
|
|
339 |
|
|
1.78 |
% |
|
63,692 |
|
|
317 |
|
|
2.00 |
% |
|
84,052 |
|
|
521 |
|
|
2.46 |
% |
||||||
Collateralized mortgage obligation |
|
33,393 |
|
|
82 |
|
|
0.98 |
% |
|
37,745 |
|
|
122 |
|
|
1.30 |
% |
|
50,891 |
|
|
286 |
|
|
2.23 |
% |
||||||
SBA loan pool securities |
|
12,996 |
|
|
57 |
|
|
1.74 |
% |
|
13,189 |
|
|
62 |
|
|
1.89 |
% |
|
20,751 |
|
|
133 |
|
|
2.54 |
% |
||||||
Municipal bonds (2) |
|
5,991 |
|
|
37 |
|
|
2.46 |
% |
|
5,710 |
|
|
38 |
|
|
2.68 |
% |
|
5,834 |
|
|
38 |
|
|
2.58 |
% |
||||||
Other interest-earning assets |
|
260,426 |
|
|
167 |
|
|
0.26 |
% |
|
245,447 |
|
|
161 |
|
|
0.26 |
% |
|
135,774 |
|
|
833 |
|
|
2.43 |
% |
||||||
Total interest-earning assets |
|
1,953,342 |
|
|
19,620 |
|
|
4.00 |
% |
|
1,919,794 |
|
|
18,973 |
|
|
3.97 |
% |
|
1,693,739 |
|
|
23,687 |
|
|
5.55 |
% |
||||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents |
|
17,094 |
|
|
|
|
|
|
16,031 |
|
|
|
|
|
|
18,927 |
|
|
|
|
|
||||||||||||
Allowance for loan losses |
|
(21,268 |
) |
|
|
|
|
|
(17,320 |
) |
|
|
|
|
|
(13,273 |
) |
|
|
|
|
||||||||||||
Other assets |
|
42,446 |
|
|
|
|
|
|
37,959 |
|
|
|
|
|
|
35,564 |
|
|
|
|
|
||||||||||||
Total noninterest-earning assets |
|
38,272 |
|
|
|
|
|
|
36,670 |
|
|
|
|
|
|
41,218 |
|
|
|
|
|
||||||||||||
Total assets |
|
$ |
1,991,614 |
|
|
|
|
|
|
$ |
1,956,464 |
|
|
|
|
|
|
$ |
1,734,957 |
|
|
|
|
|
|||||||||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW and money market accounts |
|
$ |
365,093 |
|
|
391 |
|
|
0.43 |
% |
|
$ |
371,992 |
|
|
548 |
|
|
0.59 |
% |
|
$ |
351,581 |
|
|
1,432 |
|
|
1.62 |
% |
|||
Savings |
|
9,517 |
|
|
2 |
|
|
0.08 |
% |
|
6,966 |
|
|
3 |
|
|
0.17 |
% |
|
7,043 |
|
|
6 |
|
|
0.34 |
% |
||||||
Time deposits |
|
689,352 |
|
|
2,206 |
|
|
1.27 |
% |
|
730,349 |
|
|
2,858 |
|
|
1.57 |
% |
|
767,752 |
|
|
4,622 |
|
|
2.39 |
% |
||||||
Total interest-bearing deposits |
|
1,063,962 |
|
|
2,599 |
|
|
0.97 |
% |
|
1,109,307 |
|
|
3,409 |
|
|
1.24 |
% |
|
1,126,376 |
|
|
6,060 |
|
|
2.13 |
% |
||||||
Federal Home Loan Bank advances |
|
130,000 |
|
|
168 |
|
|
0.51 |
% |
|
130,330 |
|
|
201 |
|
|
0.62 |
% |
|
20,326 |
|
|
98 |
|
|
1.91 |
% |
||||||
Total interest-bearing liabilities |
|
1,193,962 |
|
|
2,767 |
|
|
0.92 |
% |
|
1,239,637 |
|
|
3,610 |
|
|
1.17 |
% |
|
1,146,702 |
|
|
6,158 |
|
|
2.13 |
% |
||||||
Noninterest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing demand |
|
552,255 |
|
|
|
|
|
|
474,175 |
|
|
|
|
|
|
341,858 |
|
|
|
|
|
||||||||||||
Other liabilities |
|
15,934 |
|
|
|
|
|
|
16,198 |
|
|
|
|
|
|
22,465 |
|
|
|
|
|
||||||||||||
Total noninterest-bearing liabilities |
|
568,189 |
|
|
|
|
|
|
490,373 |
|
|
|
|
|
|
364,323 |
|
|
|
|
|
||||||||||||
Total liabilities |
|
1,762,151 |
|
|
|
|
|
|
1,730,010 |
|
|
|
|
|
|
1,511,025 |
|
|
|
|
|
||||||||||||
Total shareholders’ equity |
|
229,463 |
|
|
|
|
|
|
226,454 |
|
|
|
|
|
|
223,932 |
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity |
|
$ |
1,991,614 |
|
|
|
|
|
|
$ |
1,956,464 |
|
|
|
|
|
|
$ |
1,734,957 |
|
|
|
|
|
|||||||||
Net interest income |
|
|
|
$ |
16,853 |
|
|
|
|
|
|
$ |
15,363 |
|
|
|
|
|
|
$ |
17,529 |
|
|
|
|||||||||
Net interest spread (3) |
|
|
|
|
|
3.08 |
% |
|
|
|
|
|
2.80 |
% |
|
|
|
|
|
3.42 |
% |
||||||||||||
Net interest margin (4) |
|
|
|
|
|
3.43 |
% |
|
|
|
|
|
3.22 |
% |
|
|
|
|
|
4.11 |
% |
||||||||||||
Total deposits |
|
$ |
1,616,217 |
|
|
$ |
2,599 |
|
|
0.64 |
% |
|
$ |
1,583,482 |
|
|
$ |
3,409 |
|
|
0.87 |
% |
|
$ |
1,468,234 |
|
|
$ |
6,060 |
|
|
1.64 |
% |
Total funding (5) |
|
$ |
1,746,217 |
|
|
$ |
2,767 |
|
|
0.63 |
% |
|
$ |
1,713,812 |
|
|
$ |
3,610 |
|
|
0.85 |
% |
|
$ |
1,488,560 |
|
|
$ |
6,158 |
|
|
1.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) |
Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan costs (fees). |
|
(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 |
||||||||||||||||||||||
Average Balance, Average Yield, and Average Rate, Continued (Unaudited) |
||||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||||
|
|
Nine Months Ended |
||||||||||||||||||||
|
|
9/30/2020 |
|
9/30/2019 |
||||||||||||||||||
|
|
Average
|
|
Interest
|
|
Avg.
|
|
Average
|
|
Interest
|
|
Avg.
|
||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans (1) |
|
$ |
1,524,628 |
|
|
$ |
57,617 |
|
|
5.05 |
% |
|
$ |
1,372,704 |
|
|
$ |
64,779 |
|
|
6.31 |
% |
Mortgage-backed securities |
|
65,713 |
|
|
985 |
|
|
2.00 |
% |
|
85,452 |
|
|
1,629 |
|
|
2.55 |
% |
||||
Collateralized mortgage obligation |
|
37,500 |
|
|
402 |
|
|
1.43 |
% |
|
52,927 |
|
|
969 |
|
|
2.45 |
% |
||||
SBA loan pool securities |
|
13,351 |
|
|
198 |
|
|
1.98 |
% |
|
21,392 |
|
|
420 |
|
|
2.62 |
% |
||||
Municipal bonds (2) |
|
5,807 |
|
|
113 |
|
|
2.60 |
% |
|
5,867 |
|
|
115 |
|
|
2.62 |
% |
||||
Other interest-earning assets |
|
221,698 |
|
|
938 |
|
|
0.57 |
% |
|
143,616 |
|
|
2,757 |
|
|
2.57 |
% |
||||
Total interest-earning assets |
|
1,868,697 |
|
|
60,253 |
|
|
4.31 |
% |
|
1,681,958 |
|
|
70,669 |
|
|
5.62 |
% |
||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
|
17,324 |
|
|
|
|
|
|
18,650 |
|
|
|
|
|
||||||||
Allowance for loan losses |
|
(17,676 |
) |
|
|
|
|
|
(13,185 |
) |
|
|
|
|
||||||||
Other assets |
|
38,255 |
|
|
|
|
|
|
35,370 |
|
|
|
|
|
||||||||
Total noninterest-earning assets |
|
37,903 |
|
|
|
|
|
|
40,835 |
|
|
|
|
|
||||||||
Total assets |
|
$ |
1,906,600 |
|
|
|
|
|
|
$ |
1,722,793 |
|
|
|
|
|
||||||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW and money market accounts |
|
$ |
367,222 |
|
|
2,058 |
|
|
0.75 |
% |
|
$ |
322,917 |
|
|
3,903 |
|
|
1.62 |
% |
||
Savings |
|
7,706 |
|
|
8 |
|
|
0.14 |
% |
|
8,214 |
|
|
28 |
|
|
0.46 |
% |
||||
Time deposits |
|
725,927 |
|
|
8,934 |
|
|
1.64 |
% |
|
797,475 |
|
|
13,994 |
|
|
2.35 |
% |
||||
Total interest-bearing deposits |
|
1,100,855 |
|
|
11,000 |
|
|
1.33 |
% |
|
1,128,606 |
|
|
17,925 |
|
|
2.12 |
% |
||||
Federal Home Loan Bank advances |
|
95,276 |
|
|
471 |
|
|
0.66 |
% |
|
26,820 |
|
|
370 |
|
|
1.84 |
% |
||||
Total interest-bearing liabilities |
|
1,196,131 |
|
|
11,471 |
|
|
1.28 |
% |
|
1,155,426 |
|
|
18,295 |
|
|
2.12 |
% |
||||
Noninterest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand |
|
465,634 |
|
|
|
|
|
|
325,704 |
|
|
|
|
|
||||||||
Other liabilities |
|
17,493 |
|
|
|
|
|
|
22,077 |
|
|
|
|
|
||||||||
Total noninterest-bearing liabilities |
|
483,127 |
|
|
|
|
|
|
347,781 |
|
|
|
|
|
||||||||
Total liabilities |
|
1,679,258 |
|
|
|
|
|
|
1,503,207 |
|
|
|
|
|
||||||||
Total shareholders’ equity |
|
227,342 |
|
|
|
|
|
|
219,586 |
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity |
|
$ |
1,906,600 |
|
|
|
|
|
|
$ |
1,722,793 |
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
48,782 |
|
|
|
|
|
|
$ |
52,374 |
|
|
|
||||||
Net interest spread (3) |
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
3.50 |
% |
||||||||
Net interest margin (4) |
|
|
|
|
|
3.49 |
% |
|
|
|
|
|
4.16 |
% |
||||||||
Total deposits |
|
$ |
1,566,489 |
|
|
$ |
11,000 |
|
|
0.94 |
% |
|
$ |
1,454,310 |
|
|
$ |
17,925 |
|
|
1.65 |
% |
Total funding (5) |
|
$ |
1,661,765 |
|
|
$ |
11,471 |
|
|
0.92 |
% |
|
$ |
1,481,130 |
|
|
$ |
18,295 |
|
|
1.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) |
Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan costs (fees). |
|
(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. |
