Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): January 25, 2024

PCB BANCORP

(Exact name of registrant as specified in its charter)

California

(State or other jurisdiction of

incorporation)

001-38621

(Commission

File Number)

20-8856755

(I.R.S. Employer

Identification No.)

3701 Wilshire Boulevard, Suite 900

Los Angeles, California

(Address of principal offices)

90010

(Zip Code)

Registrant’s telephone number, including area code: (213) 210-2000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value	PCB	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On January 25, 2024, PCB Bancorp, a California corporation (the “Company”), issued a press release concerning its unaudited results for the fourth quarter of 2023. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

The information in this report set forth under this Item 2.02 and in Exhibit 99.1 shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly stated by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

Attached as Exhibit 99.2, and incorporated herein by reference, is a copy of an investor presentation that may be utilized by management at future discussions with investors. The information in this report set forth under this Item 7.01 and in Exhibit 99.2 shall not be treated as “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except expressly stated by specific reference in such filing.

Item 8.01 Other Events.

On January 25, 2024, the Company issued a press release announcing that on January 25, 2024, its Board of Directors declared a quarterly cash dividend of $0.18 per common share. The dividend will be paid on or about February 16, 2024, to shareholders of record as of the close of business on February 9, 2024. A copy of the press release is attached as Exhibit 99.3 to this Current Report and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press release of PCB Bancorp, issued January 25, 202 4 , concerning the results of operations and financial condition for the fourth quarter of 2023

99.2 Investor presentation of PCB Bancorp concerning the unaudited results for the fourth quarter of 2023

99.3 Press release of PCB Bancorp, issued January 25, 202 4 , announcing the declaration of a quarterly cash dividend

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		PCB Bancorp

Date:	January 25, 2024	/s/ Timothy Chang
		Timothy Chang
		Executive Vice President and Chief Financial Officer

Exhibit 99.1

PCB Bancorp Reports Earnings of $5.9 million for Q4 2023 and $30.7 million for 2023

Los Angeles, California - January 25, 2024 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income of $5.9 million, or $0.41 per diluted common share, for the fourth quarter of 2023, compared with $7.0 million, or $0.49 per diluted common share, for the previous quarter and $8.7 million, or $0.58 per diluted common share, for the year-ago quarter. For 2023, net income was $30.7 million, or $2.12 per diluted common share, compared with $35.0 million and $2.31 per diluted common share, for the previous year.

Q4 2023 and Full Year Highlights

•Net income totaled $5.9 million, or $0.41 per diluted common share, for the current quarter and $30.7 million, or $2.12 per diluted common share for the current year;

•Recorded a provision for credit losses(1),(2) of $1.7 million for the current quarter compared with $751 thousand for the previous quarter and $1.1 million for the year-ago quarter. For the current year, provision (reversal) for the credit losses was $(132) thousand compared with $3.6 million for the previous year;

•Allowance for Credit Losses (“ACL”)(1) on loans to loans held-for-investment ratio was 1.19% at December 31, 2023 compared with 1.18% at September 30, 2023 and 1.22% at December 31, 2022;

•Net interest income was $21.9 million for the current quarter compared with $22.4 million for the previous quarter and $24.3 million for the year-ago quarter. Net interest margin was 3.40% for the current quarter compared with 3.57% for the previous quarter and 4.15% for the year-ago quarter. For the current year, net interest income and net interest margin were $88.5 million and 3.57%, respectively, compared with $89.6 million and 4.08%, respectively, for the previous year;

•Gain on sale of loans was $803 thousand for the current quarter compared with $689 thousand for the previous quarter and $759 thousand for the year-ago quarter. For the current year, gain on sale of loans was $3.6 million compared with $8.0 million for the previous year;

•Total assets were $2.79 billion at December 31, 2023, an increase of $221.5 million, or 8.6%, from $2.57 billion at September 30, 2023, and an increase of $369.5 million, or 15.3%, from $2.42 billion at December 31, 2022;

•Loans held-for-investment were $2.32 billion at December 31, 2023, an increase of $155.8 million, or 7.2%, from $2.17 billion at September 30, 2023, and an increase of $277.4 million, or 13.6%, from $2.05 billion at December 31, 2022;

•Total deposits were $2.35 billion at December 31, 2023, an increase of $159.5 million, or 7.3%, from $2.19 billion at September 30, 2023, and an increase of $305.6 million, or 14.9%, from $2.05 billion at December 31, 2022; and

•The Company repurchased and retired 60,074 shares of common stock during the current quarter. For the current year, the Company repurchased and retired 512,657 shares of common stock.

“We are pleased with our fourth quarter and full-year performance. Our results reflect our solid business strategy of strong relationship banking, which continues to provide strong loan funding opportunities and stable operating performance that has positioned us well to overcome the continued economic uncertainties,” said Henry Kim, President and Chief Executive Officer. “PCB’s performance for the fourth quarter of 2023 benefited from strong loan growth and higher yields on interest-earning assets. However, the continued higher interest rate environment and its effect on our funding costs resulted in moderate compression in net interest margin during the quarter. During the quarter loan balance increased 7.1% to $2.3 billion, deposit balance increased 7.3% to $2.4 billion, and we continue to maintain very strong credit metrics with ACL to loans ratio of 1.19%, and non-performing assets and classified assets to total assets ratios of 0.23% and 0.34%, respectively.”

Mr. Kim added, “As we look ahead in 2024, PCB is well positioned to continue delivering solid results with emphasis on strong balance sheet and sound asset quality with robust capital levels that are above our peers to operate in all economic cycles and changing market conditions.”

-------------------------------------------------------------------------------------

(1) Provision (reversal) for credit losses and ACL for reporting periods beginning with January 1, 2023 are presented under ASC 326, while prior period comparisons continue to be presented under legacy ASC 450 and ASC 310 in this release.

(2) Provision for credit losses on off-balance sheet credit exposures of $57 thousand and $85 thousand, respectively, for the year-ago quarter and previous year were recorded in Other Expense on Consolidated Statements of Income (Unaudited).

Financial Highlights (Unaudited)


($ in thousands, except per share data)	Three Months Ended													Year Ended
	12/31/2023			9/30/2023			% Change		12/31/2022			% Change		12/31/2023			12/31/2022			% Change
Net income	$	5,908		$	7,023		(15.9)	%	$	8,702		(32.1)	%	$	30,705		$	34,987		(12.2)	%
Diluted earnings per common share	$	0.41		$	0.49		(16.3)	%	$	0.58		(29.3)	%	$	2.12		$	2.31		(8.2)	%

Net interest income	$	21,924		$	22,449		(2.3)	%	$	24,265		(9.6)	%	$	88,504		$	89,632		(1.3)	%
Provision (reversal) for credit losses (1)	1,698			751			126.1	%	1,149			47.8	%	(132)			3,602			NM
Noninterest income	2,503			2,502			—	%	2,389			4.8	%	10,683			14,499			(26.3)	%
Noninterest expense	14,469			14,207			1.8	%	13,115			10.3	%	56,057			51,126			9.6	%

Return on average assets (2)	0.89		%	1.09		%			1.44		%			1.20		%	1.54		%
Return on average shareholders’ equity (2)	6.82		%	8.12		%			10.31		%			9.02		%	11.42		%
Return on average tangible common equity (“TCE”) (2),(3)	8.54		%	10.17		%			12.99		%			11.31		%	13.23		%
Net interest margin (2)	3.40		%	3.57		%			4.15		%			3.57		%	4.08		%
Efficiency ratio (4)	59.23		%	56.94		%			49.20		%			56.52		%	49.10		%


($ in thousands, except per share data)	12/31/2023			9/30/2023			% Change		12/31/2022			% Change
Total assets	$	2,789,506		$	2,567,974		8.6	%	$	2,420,036		15.3	%
Net loans held-for-investment	2,295,919			2,142,006			7.2	%	2,021,121			13.6	%
Total deposits	2,351,612			2,192,129			7.3	%	2,045,983			14.9	%
Book value per common share (5)	$	24.46		$	23.87				$	22.94
TCE per common share (3)	$	19.62		$	19.05				$	18.21
Tier 1 leverage ratio (consolidated)	13.43		%	13.76		%			14.33		%
Total shareholders’ equity to total assets	12.51		%	13.31		%			13.86		%
TCE to total assets (3), (6)	10.03		%	10.62		%			11.00		%

(1)Provision for credit losses on off-balance sheet credit exposures of $57 thousand and $85 thousand, respectively, for the year-ago quarter and previous year were recorded in Other Expense on Consolidated Statements of Income (Unaudited). See Provision (reversal) for credit losses included in the Result of Operations discussion for additional information.

(2)Ratios are presented on an annualized basis.

(3)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.

(4)Calculated by dividing noninterest expense by the sum of net interest income and noninterest income.

(5)Calculated by dividing total shareholders’ equity by the number of outstanding common shares.

(6)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)	12/31/2023			9/30/2023			% Change		12/31/2022			% Change		12/31/2023			12/31/2022			% Change
Interest income/expense on
Loans	$	37,189		$	34,651		7.3	%	$	28,786		29.2	%	$	136,029		$	95,054		43.1	%
Investment securities	1,271			1,170			8.6	%	957			32.8	%	4,679			2,907			61.0	%
Other interest-earning assets	2,491			3,031			(17.8)	%	1,833			35.9	%	10,469			3,790			176.2	%
Total interest-earning assets	40,951			38,852			5.4	%	31,576			29.7	%	151,177			101,751			48.6	%
Interest-bearing deposits	18,728			16,403			14.2	%	7,295			156.7	%	62,165			11,984			418.7	%
Borrowings	299			—			—	%	16			1,768.8	%	508			135			276.3	%
Total interest-bearing liabilities	19,027			16,403			16.0	%	7,311			160.3	%	62,673			12,119			417.1	%
Net interest income	$	21,924		$	22,449		(2.3)	%	$	24,265		(9.6)	%	$	88,504		$	89,632		(1.3)	%
Average balance of
Loans	$	2,242,457		$	2,137,184		4.9	%	$	2,004,220		11.9	%	$	2,137,851		$	1,872,557		14.2	%
Investment securities	139,227			138,993			0.2	%	134,066			3.8	%	140,596			132,538			6.1	%
Other interest-earning assets	175,336			219,115			(20.0)	%	182,018			(3.7)	%	198,809			194,205			2.4	%
Total interest-earning assets	$	2,557,020		$	2,495,292		2.5	%	$	2,320,304		10.2	%	$	2,477,256		$	2,199,300		12.6	%
Interest-bearing deposits	$	1,650,132		$	1,561,582		5.7	%	$	1,269,739		30.0	%	$	1,538,234		$	1,111,449		38.4	%
Borrowings	21,000			—			—	%	1,739			1,107.6	%	9,192			6,290			46.1	%
Total interest-bearing liabilities	$	1,671,132		$	1,561,582		7.0	%	$	1,271,478		31.4	%	$	1,547,426		$	1,117,739		38.4	%
Total funding (1)	$	2,249,026		$	2,188,320		2.8	%	$	2,043,110		10.1	%	$	2,177,200		$	1,949,360		11.7	%
Annualized average yield/cost of
Loans	6.58		%	6.43		%			5.70		%			6.36		%	5.08		%
Investment securities	3.62		%	3.34		%			2.83		%			3.33		%	2.19		%
Other interest-earning assets	5.64		%	5.49		%			4.00		%			5.27		%	1.95		%
Total interest-earning assets	6.35		%	6.18		%			5.40		%			6.10		%	4.63		%
Interest-bearing deposits	4.50		%	4.17		%			2.28		%			4.04		%	1.08		%
Borrowings	5.65		%	—		%			3.65		%			5.53		%	2.15		%
Total interest-bearing liabilities	4.52		%	4.17		%			2.28		%			4.05		%	1.08		%
Net interest margin	3.40		%	3.57		%			4.15		%			3.57		%	4.08		%
Cost of total funding (1)	3.36		%	2.97		%			1.42		%			2.88		%	0.62		%
Supplementary information
Net accretion of discount on loans	$	806		$	775		4.0	%	$	869		(7.2)	%	$	3,003		$	3,551		(15.4)	%
Net amortization of deferred loan fees	$	449		$	226		98.7	%	$	167		168.9	%	$	1,097		$	2,181		(49.7)	%

(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 increases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to increases in overall interest rates on loans from the rising interest rate environment and net amortization of deferred loan fees from the increased amount of prepayment penalties. The increase in average yield for the current year compared with the previous year was primarily due to the increase in overall interest rates on loans, partially offset by decreases in net accretion of discount on loans and net amortization of deferred loan fees from the decreased amount of SBA PPP loan payoffs.

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:


	12/31/2023				9/30/2023				12/31/2022
	% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate
Fixed rate loans	21.2	%	4.86	%	22.4	%	4.75	%	23.2	%	4.51	%
Hybrid rate loans	39.0	%	4.93	%	38.8	%	4.71	%	39.1	%	4.40	%
Variable rate loans	39.8	%	8.51	%	38.8	%	8.52	%	37.7	%	7.86	%

Investment Securities. The increases in average yield for the current quarter and year were primarily due to a decrease in net amortization of premiums on securities and higher yield on newly purchased investment securities.

Other Interest-Earning Assets. The increases in average yield for the current quarter and year were primarily due to an increased interest rate on cash held at the Federal Reserve Bank and an increase in dividend received on Federal Home Loan Bank stock.

Interest-Bearing Deposits. The increases in average cost for the current quarter and year were primarily due to an increase in market rates and the migration of noninterest-bearing demand deposits to interest-bearing deposits attributable to the rising market rates. To retain existing and attract new customers, the Bank offers competitive rates on deposit products.

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)	12/31/2023		9/30/2023		% Change		12/31/2022		% Change		12/31/2023		12/31/2022		% Change
Provision for credit losses on loans	$	1,935	$	822	135.4	%	$	1,149	68.4	%	$	497	$	3,602	(86.2)	%
Provision (reversal) for credit losses on off-balance sheet credit exposure (1)	(237)		(71)		233.8	%	57		NM		(629)		85		NM
Total provision (reversal) for credit losses	$	1,698	$	751	126.1	%	$	1,206	40.8	%	$	(132)	$	3,687	NM

(1)Provision for credit losses on off-balance sheet credit exposures for year-ago quarter and previous year were recorded in Other Expense on Consolidated Statements of Income (Unaudited).

On January 1, 2023, the Company adopted the provisions of ASC 326, also known as the current expected credit losses (“CECL”) accounting standard, through the application of the modified retrospective transition approach. Provision (reversal) for credit losses and ACL for reporting periods beginning with January 1, 2023 are presented under ASC 326, while prior period comparisons continue to be presented under legacy ASC 450 and ASC 310 in this release. See CECL Adoption and Allowance for Credit Losses sections included in the Balance Sheet section of this release for additional information.

The provision for credit losses on loans for the current quarter was primarily due to an increase in loan 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)	12/31/2023		9/30/2023		% Change		12/31/2022		% Change		12/31/2023		12/31/2022		% Change
Gain on sale of loans	$	803	$	689	16.5	%	$	759	5.8	%	$	3,570	$	7,990	(55.3)	%

Service charges and fees on deposits	391		371		5.4	%	352		11.1	%	1,475		1,326		11.2	%
Loan servicing income	751		851		(11.8)	%	734		2.3	%	3,330		2,969		12.2	%
Bank-owned life insurance income	202		187		8.0	%	181		11.6	%	753		706		6.7	%
Other income	356		404		(11.9)	%	363		(1.9)	%	1,555		1,508		3.1	%
Total noninterest income	$	2,503	$	2,502	—	%	$	2,389	4.8	%	$	10,683	$	14,499	(26.3)	%

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)	12/31/2023		9/30/2023		% Change		12/31/2022		% Change		12/31/2023		12/31/2022		% Change
Gain on sale of SBA loans
Sold loan balance	$	20,751	$	17,697	17.3	%	$	17,448	18.9	%	$	82,343	$	122,886	(33.0)	%
Premium received	1,250		1,112		12.4	%	1,102		13.4	%	5,612		9,944		(43.6)	%
Gain recognized	803		689		16.5	%	759		5.8	%	3,570		7,982		(55.3)	%
Gain on sale of residential mortgage loans
Sold loan balance	$	—	$	—	—	%	$	858	(100.0)	%	$	—	$	858	(100.0)	%
Gain recognized	—		—		—	%	8		(100.0)	%	—		8		(100.0)	%

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


	Three Months Ended										Year Ended
($ in thousands)	12/31/2023		9/30/2023		% Change		12/31/2022		% Change		12/31/2023		12/31/2022		% Change
Loan servicing income
Servicing income received	$	1,290	$	1,321	(2.3)	%	$	1,284	0.5	%	$	5,212	$	5,103	2.1	%
Servicing assets amortization	(539)		(470)		14.7	%	(550)		(2.0)	%	(1,882)		(2,134)		(11.8)	%
Loan servicing income	$	751	$	851	(11.8)	%	$	734	2.3	%	$	3,330	$	2,969	12.2	%
Underlying loans at end of period	$	532,231	$	536,424	(0.8)	%	$	531,095	0.2	%	$	532,231	$	531,095	0.2	%

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)	12/31/2023		9/30/2023		% Change		12/31/2022		% Change		12/31/2023		12/31/2022		% Change
Salaries and employee benefits	$	8,397	$	8,572	(2.0)	%	$	7,879	6.6	%	$	34,572	$	33,056	4.6	%
Occupancy and equipment	2,145		1,964		9.2	%	1,897		13.1	%	7,924		6,481		22.3	%
Professional fees	898		685		31.1	%	607		47.9	%	3,087		2,239		37.9	%
Marketing and business promotion	772		980		(21.2)	%	724		6.6	%	2,327		2,150		8.2	%
Data processing	393		367		7.1	%	434		(9.4)	%	1,552		1,706		(9.0)	%
Director fees and expenses	207		152		36.2	%	176		17.6	%	756		706		7.1	%
Regulatory assessments	285		281		1.4	%	159		79.2	%	1,103		597		84.8	%
Other expense	1,372		1,206		13.8	%	1,239		10.7	%	4,736		4,191		13.0	%
Total noninterest expense	$	14,469	$	14,207	1.8	%	$	13,115	10.3	%	$	56,057	$	51,126	9.6	%

Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to a decrease in vacation accrual, partially offset by increases in salaries and other employee benefit expense, and incentives tied to sales of SBA loans originated at loan production offices. The increase for the current quarter compared with the year-ago quarter was primarily due to increases in salaries and other employee benefit expense, partially offset by a decrease in vacation accrual. The increase for the current year compared with the previous year was primarily due to increases in salaries and other employee benefit expense, partially offset by decreases in bonus and vacation accruals, and incentives tied to sales of SBA loans originated at loan production offices. The number of full-time equivalent employees was 270, 270 and 272 as of December 31, 2023, September 30, 2023 and December 31, 2022, respectively.

Occupancy and Equipment. The increases for the current quarter compared with the previous and year-ago quarters were primarily due to expansions of headquarters and relocation of a regional office and branches. The Company plans to relocate and consolidate a regional office and two branches into one location in Orange County, California in 2024. The increase for the current year compared with the previous year was primarily due to the expansions of headquarters and the relocation of a regional office and branches, as well as 3 new branch openings during the second half of 2022. The Company opened 3 new full-service branches in Dallas and Carrollton, Texas and Palisades Park, New Jersey during the second half of 2022.

Professional Fees. The increases for the current quarter and year were primarily due to increases in consulting and internal audit fees for enhancing internal controls and process, and professional fees related to a planned core system conversion.

Marketing and Business Promotion. The decrease for the current quarter compared with the previous quarter was primarily due to the Company’s 20th anniversary celebration during the previous quarter.

Director Fees and Expenses. The increase for the current quarter compared with the previous quarter was primarily due to additional expenses related to stock options issued to directors during the current quarter.

Regulatory Assessments. The increases for the current quarter and year compared with the same periods of 2022 were due to an increase in FDIC assessment rates. The FDIC increased the initial base deposit insurance assessment rate schedules by two basis points beginning in the first quarterly assessment period of 2023.

Other Expense. The increase for the current quarter compared with the previous quarter was primarily due to increases in office expense and loan related expense. The increase for the current year was primarily due to increases in office expenses and armed guard expenses from the branch network expansion. Provision for credit losses on off-balance credit exposures of $57 thousand and $85 thousand was included in other expense for the year-ago quarter and previous year, respectively, while the provision (reversal) for the current reporting periods beginning January 1, 2023 was included in provision (reversal) for credit losses.

Balance Sheet (Unaudited)

Total assets were $2.79 billion at December 31, 2023, an increase of $221.5 million, or 8.6%, from $2.57 billion at September 30, 2023, and an increase of $369.5 million, or 15.3%, from $2.42 billion at December 31, 2022. The increases for the current quarter and year were primarily due to increases in cash and cash equivalents, loans held-for-investment and operating lease assets. The increase in operating lease assets was primarily due to renewal and additional leases of the Company’s headquarters and a new location for the relocation of a regional office and branches.

CECL Adoption

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 reflects 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. As a part of the adoption of ASC 326, the Company reviewed and revised certain loan segments for the Company’s ACL model. See Loan Segments Revision section of this release for a reconciliation of revised loan segments to legacy loan segments, which were utilized before the adoption of ASC 326.

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)	12/31/2023		9/30/2023		% Change		12/31/2022		% Change
Commercial real estate:
Commercial property	$	855,270	$	814,547	5.0	%	$	772,020	10.8	%
Business property	558,772		537,351		4.0	%	526,513		6.1	%
Multifamily	132,500		132,558		—	%	124,751		6.2	%
Construction	24,843		19,246		29.1	%	17,054		45.7	%
Total commercial real estate	1,571,385		1,503,702		4.5	%	1,440,338		9.1	%
Commercial and industrial	342,002		279,608		22.3	%	249,250		37.2	%
Consumer:
Residential mortgage	389,420		363,369		7.2	%	333,726		16.7	%
Other consumer	20,645		20,926		(1.3)	%	22,749		(9.2)	%
Total consumer	410,065		384,295		6.7	%	356,475		15.0	%
Loans held-for-investment	2,323,452		2,167,605		7.2	%	2,046,063		13.6	%
Loans held-for-sale	5,155		6,693		(23.0)	%	22,811		(77.4)	%
Total loans	$	2,328,607	$	2,174,298	7.1	%	$	2,068,874	12.6	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding and advances on lines of credit of $468.4 million, partially offset by pay-downs and pay-offs of $312.5 million. The increase for the current year-to-date period was primarily due to new funding and advances on lines of credit of $1.19 billion and purchases of residential mortgage loans of $15.7 million, partially offset by pay-downs and pay-offs of $923.0 million.

The decrease in loans held-for-sale for the current quarter was primarily due to sales of $20.8 million, partially offset by new funding of $19.3 million. The decrease for the current year-to-date was primarily due to sales of $82.3 million and pay-downs and pay-offs of $4.4 million, partially offset by new funding of $69.0 million.

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


($ in thousands)	12/31/2023		9/30/2023		% Change		12/31/2022		% Change
Commercial property	$	11,634	$	9,827	18.4	%	$	7,006	66.1	%
Business property	9,899		8,388		18.0	%	8,396		17.9	%
Multifamily	1,800		1,800		—	%	4,500		(60.0)	%
Construction	23,739		29,293		(19.0)	%	18,211		30.4	%
Commercial and industrial	351,025		283,119		24.0	%	254,668		37.8	%
Other consumer	3,421		271		1,162.4	%	692		394.4	%
Total commitments to extend credit	401,518		332,698		20.7	%	293,473		36.8	%
Letters of credit	6,583		6,083		8.2	%	5,392		22.1	%
Total off-balance sheet credit exposure	$	408,101	$	338,781	20.5	%	$	298,865	36.6	%

Credit Quality

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


($ in thousands)	12/31/2023			9/30/2023			% Change		12/31/2022			% Change
Nonaccrual loans
Commercial real estate:
Commercial property	$	958		$	686		39.7	%	$	—		—	%
Business property	2,865			2,964			(3.3)	%	2,985			(4.0)	%


Total commercial real estate	3,823			3,650			4.7	%	2,985			28.1	%
Commercial and industrial	68			72			(5.6)	%	—			—	%
Consumer:
Residential mortgage	—			—			—	%	372			(100.0)	%
Other consumer	25			8			212.5	%	3			733.3	%
Total consumer	25			8			212.5	%	375			(93.3)	%
Total nonaccrual loans held-for-investment	3,916			3,730			5.0	%	3,360			16.5	%
Loans past due 90 days or more and still accruing	—			—			—	%	—			—	%
Non-performing loans (“NPLs”) held-for-investment	3,916			3,730			5.0	%	3,360			16.5	%
NPLs held-for-sale	—			—			—	%	4,000			(100.0)	%
Total NPLs	3,916			3,730			5.0	%	7,360			(46.8)	%
Other real estate owned (“OREO”)	2,558			—			—	%	—			—	%
Non-performing assets (“NPAs”)	$	6,474		$	3,730		73.6	%	$	7,360		(12.0)	%
Loans past due and still accruing
Past due 30 to 59 days	$	1,394		$	654		113.1	%	$	47		2,866.0	%
Past due 60 to 89 days	34			54			(37.0)	%	87			(60.9)	%
Past due 90 days or more	—			—			—	%	—			—	%
Total loans past due and still accruing	$	1,428		$	708		101.7	%	134			965.7	%




Special mention loans	$	5,156		$	5,281		(2.4)	%	$	6,857		(24.8)	%
Classified assets
Classified loans held-for-investment	$	7,000		$	6,742		3.8	%	$	6,211		12.7	%
Classified loans held-for-sale	—			—			—	%	4,000			(100.0)	%
OREO	2,558			—			—	%	—			—	%
Classified assets	$	9,558		$	6,742		41.8	%	$	10,211		(6.4)	%
NPLs held-for-investment to loans held-for-investment	0.17		%	0.17		%			0.16		%
NPAs to total assets	0.23		%	0.15		%			0.30		%
Classified assets to total assets	0.34		%	0.26		%			0.42		%

During the current quarter, the Company recognized an OREO of $2.6 million by transferring a SBA 7(a) loan, of which its guaranteed portion was previously sold. The Company’s exposure is 25% of the OREO and 75% will be submitted to the SBA upon the sale of property. During the first quarter of 2023, NPLs held-for-sale of $4.0 million were paid-off.

Allowance for Credit Losses

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


	Three Months Ended													Year Ended
($ in thousands)	12/31/2023			9/30/2023			% Change		12/31/2022			% Change		12/31/2023		12/31/2022			% Change
ACL on loans
Balance at beginning of period	$	25,599		$	24,867		2.9	%	$	23,761		7.7	%	$	24,942	$	22,381		11.4	%
Impact of ASC 326 adoption	—			—			NM		—			NM		1,067		—			NM
Charge-offs	(13)			(112)			(88.4)	%	(28)			(53.6)	%	(132)		(1,199)			(89.0)	%
Recoveries	12			22			(45.5)	%	60			(80.0)	%	1,159		158			633.5	%
Provision for credit losses on loans	1,935			822			135.4	%	1,149			68.4	%	497		3,602			(86.2)	%
Balance at end of period	$	27,533		$	25,599		7.6	%	$	24,942		10.4	%	$	27,533	$	24,942		10.4	%
Percentage to loans held-for-investment at end of period	1.19		%	1.18		%			1.22		%					1.22		%
ACL on off-balance sheet credit exposure (1)
Balance at beginning of period	$	1,514		$	1,585		(4.5)	%	$	242		525.6	%	$	299	$	214		39.7	%
Impact of ASC 326 adoption	—			—			NM		—			NM		1,607		—			NM
Provision (reversal) for credit losses on off-balance sheet credit exposure	(237)			(71)			233.8	%	57			NM		(629)		85			NM
Balance at end of period	$	1,277		$	1,514		(15.7)	%	$	299		327.1	%	$	1,277	$	299		327.1	%

(1)ACL on off-balance sheet credit exposures was recorded in Accrued Interest Payable and Other Liabilities on Consolidated Balance Sheets (Unaudited).

Investment Securities

Total investment securities were $143.3 million at December 31, 2023, an increase of $4.1 million, or 2.9%, from $139.2 million at September 30, 2023, and an increase of $1.5 million, or 1.0%, from $141.9 million at December 31, 2022. The increase for the current quarter was primarily due to purchases of $1.3 million and a fair value increase of $6.4 million, partially offset by principal pay-downs and calls of $3.6 million and net premium amortization of $40 thousand. The increase for the current year was primarily due to purchases of $17.3 million and a fair value increase of $2.3 million, partially offset by principal pay-downs and calls of $17.9 million and net premium amortization of $209 thousand.

Deposits

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


	12/31/2023				9/30/2023				12/31/2022
($ in thousands)	Amount		% to Total		Amount		% to Total		Amount		% to Total
Noninterest-bearing demand deposits	$	594,673	25.3	%	$	611,021	27.9	%	$	734,989	35.9	%
Interest-bearing deposits
Savings	6,846		0.3	%	6,846		0.3	%	8,579		0.4	%
NOW	16,825		0.7	%	16,076		0.7	%	11,405		0.6	%
Retail money market accounts	397,531		16.8	%	436,115		19.8	%	494,749		24.1	%
Brokered money market accounts	1		0.1	%	1		0.1	%	8		0.1	%
Retail time deposits of
$250,000 or less	456,293		19.4	%	406,407		18.5	%	295,354		14.4	%
More than $250,000	515,702		21.9	%	454,406		20.8	%	353,876		17.3	%

State and brokered time deposits	363,741		15.5	%	261,257		11.9	%	147,023		7.2	%
Total interest-bearing deposits	1,756,939		74.7	%	1,581,108		72.1	%	1,310,994		64.1	%
Total deposits	$	2,351,612	100.0	%	$	2,192,129	100.0	%	$	2,045,983	100.0	%

Estimated total deposits not covered by deposit insurance	$	947,294	40.3	%	$	983,851	44.9	%	$	1,062,111	51.9	%

The decrease in noninterest-bearing demand deposits was primarily due to strong deposit market competition and the migration to interest-bearing deposits attributable to the rising market rates. To retain existing and attract new customers, the Bank offers competitive rates on deposit products.

The increase in retail time deposits for the current quarter was primarily due to new accounts of $188.0 million, renewals of the matured accounts of $264.1 million and balance increases of $9.5 million, partially offset by matured and closed accounts of $350.4 million. The increase for the current year was primarily due to new accounts of $657.0 million, renewals of the matured accounts of $555.3 million and balance increases of $26.7 million, partially offset by matured and closed accounts of $916.2 million.

Liquidity

The following table presents a summary of the Company’s liquidity position as of December 31, 2023:


($ in thousands)	12/31/2023			12/31/2022			% Change
Cash and cash equivalents	$	242,342		$	147,031		64.8	%
Cash and cash equivalents to total assets	8.7		%	6.1		%

Available borrowing capacity
FHLB advances	$	602,976		$	561,745		7.3	%
Federal Reserve Discount Window	528,893			23,902			2,112.8	%

Overnight federal funds lines	65,000			65,000			—	%
Total	$	1,196,869		$	650,647		84.0	%
Total available borrowing capacity to total assets	42.9		%	26.9		%

During the current year, the Company increased cash and cash equivalents by $95.3 million, or 64.8%, to $242.3 million and available borrowing capacity by $546.2 million, or 84.0%, to $1.20 billion. During the current year, the Company began participating in the Borrower-in Custody Program with the Federal Reserve Bank providing additional borrowing capacity. As of December 31, 2023, the Company's cash and cash equivalents and available borrowing capacity covered approximately 151.9% of deposits not covered by deposit insurance compared to 75.1% at December 31, 2022.

Shareholders’ Equity

Shareholders’ equity was $348.9 million at December 31, 2023, an increase of $7.0 million, or 2.1%, from $341.9 million at September 30, 2023, and an increase of $13.4 million, or 4.0%, from $335.4 million at December 31, 2022. The increase for the current quarter was primarily due to net income and a decrease in other comprehensive loss of $4.5 million, partially offset by cash dividends declared on common stock of $2.6 million and repurchase of common stock of $925 thousand. The increase for the current year was primarily due to net income, cash proceeds from exercise of stock options of $1.4 million and a decrease in other comprehensive loss of $1.6 million, partially offset by cash dividend declared on common stock of $9.9 million, repurchase of common stock of $8.8 million, and cumulative effect adjustment upon adoption of ASC 326 of $1.9 million.

Stock Repurchases

On July 28, 2022, the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to 5% of the Company’s outstanding common stock, which represented 747,938 shares, through February 1, 2023. On January 26, 2023, the Company announced the amendment to the repurchase program, which extended the program expiration from February 1, 2023 to February 1, 2024. The Company completed the repurchase program during the first quarter of 2023. Under this repurchase program, the Company repurchased and retired 747,938 shares of common stock at a weighted-average price of $18.15 per share, totaling $13.6 million.

On August 2, 2023, the Company’s Board of Directors approved a new stock repurchase program authorizing the repurchase of up to 5% of the Company’s outstanding common stock, which represented 720,000 shares, through August 2, 2024. The Company repurchased and retired 127,276 shares of common stock at a weighted-average price of $15.58 per share, totaling $2.0 million under this repurchase program through December 31, 2023.

For the current year, the Company repurchased and retired 512,657 shares of common stock at a weighted-average price of $17.22, totaling $8.8 million.

Issuance of Preferred Stock Under the Emergency Capital Investment Program

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 bears no dividend for the first 24 months following the investment date. Thereafter, the dividend rate will be adjusted based on the lending growth criteria listed in the terms of the ECIP investment with an annual dividend rate up to 2%. After the tenth anniversary of the investment date, the dividend rate will be fixed based on average annual amount of lending in years 2 through 10.

Capital Ratios

Based on the Federal Reserve’s Small Bank Holding Company policy, the Company is not currently subject to consolidated minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will be subject to consolidated capital requirements independent of the Bank. For comparison purposes, the Company’s capital ratios are included in following table, which presents capital ratios for the Company and the Bank as of the dates indicated:


	12/31/2023		9/30/2023		12/31/2022		Well Capitalized Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)	12.23	%	13.07	%	13.29	%	N/A
Total capital (to risk-weighted assets)	16.39	%	17.48	%	17.83	%	N/A
Tier 1 capital (to risk-weighted assets)	15.16	%	16.24	%	16.62	%	N/A
Tier 1 capital (to average assets)	13.43	%	13.76	%	14.33	%	N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)	14.85	%	15.87	%	16.30	%	6.5	%
Total capital (to risk-weighted assets)	16.07	%	17.11	%	17.52	%	10.0	%
Tier 1 capital (to risk-weighted assets)	14.85	%	15.87	%	16.30	%	8.0	%
Tier 1 capital (to average assets)	13.16	%	13.44	%	14.05	%	5.0	%

About PCB Bancorp

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

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to the health of the national and local economies including the impact to the Company and its customers resulting from changes to, and the level of, inflation and interest rates; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect the Company’s liquidity, financial performance and stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber security risks; the Company's ability to successfully deploy new technology; acquisitions and branch and loan production office expansions; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; costs related to litigation; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and other filings the Company makes with the SEC, which are available at the SEC’s Internet site (http://www.sec.gov) or from the Company without charge. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

Contact:

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

PCB Bancorp and Subsidiary

Consolidated Balance Sheets (Unaudited)

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


	12/31/2023			9/30/2023			% Change		12/31/2022			% Change
Assets
Cash and due from banks	$	26,518		$	22,691		16.9	%	$	23,202		14.3	%
Interest-bearing deposits in other financial institutions	215,824			169,659			27.2	%	123,829			74.3	%
Total cash and cash equivalents	242,342			192,350			26.0	%	147,031			64.8	%
Securities available-for-sale, at fair value	143,323			139,218			2.9	%	141,863			1.0	%
Loans held-for-sale	5,155			6,693			(23.0)	%	22,811			(77.4)	%
Loans held-for-investment	2,323,452			2,167,605			7.2	%	2,046,063			13.6	%
Allowance for credit losses on loans	(27,533)			(25,599)			7.6	%	(24,942)			10.4	%
Net loans held-for-investment	2,295,919			2,142,006			7.2	%	2,021,121			13.6	%
Premises and equipment, net	5,999			6,229			(3.7)	%	6,916			(13.3)	%
Federal Home Loan Bank and other bank stock	12,716			12,716			—	%	10,183			24.9	%
Other real estate owned, net	2,558			—			NM		—			NM
Bank-owned life insurance	30,817			30,615			0.7	%	30,064			2.5	%
Deferred tax assets, net	—			4,486			(100.0)	%	3,115			(100.0)	%
Servicing assets	6,666			6,920			(3.7)	%	7,347			(9.3)	%
Operating lease assets	18,913			5,626			236.2	%	6,358			197.5	%
Accrued interest receivable	9,468			8,731			8.4	%	7,472			26.7	%
Other assets	15,630			12,384			26.2	%	15,755			(0.8)	%
Total assets	$	2,789,506		$	2,567,974		8.6	%	$	2,420,036		15.3	%
Liabilities
Deposits
Noninterest-bearing demand	$	594,673		$	611,021		(2.7)	%	$	734,989		(19.1)	%
Savings, NOW and money market accounts	421,203			459,038			(8.2)	%	514,741			(18.2)	%
Time deposits of $250,000 or less	760,034			607,664			25.1	%	382,377			98.8	%
Time deposits of more than $250,000	575,702			514,406			11.9	%	413,876			39.1	%
Total deposits	2,351,612			2,192,129			7.3	%	2,045,983			14.9	%
Federal Home Loan Bank advances	39,000			—			NM		20,000			95.0	%
Deferred tax liabilities, net	876			—			NM		—			NM
Operating lease liabilities	20,137			5,852			244.1	%	6,809			195.7	%
Accrued interest payable and other liabilities	29,009			28,141			3.1	%	11,802			145.8	%
Total liabilities	2,440,634			2,226,122			9.6	%	2,084,594			17.1	%
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock	69,141			69,141			—	%	69,141			—	%
Common stock	142,563			143,401			(0.6)	%	149,631			(4.7)	%
Retained earnings	146,092			142,750			2.3	%	127,181			14.9	%
Accumulated other comprehensive loss, net	(8,924)			(13,440)			(33.6)	%	(10,511)			(15.1)	%
Total shareholders’ equity	348,872			341,852			2.1	%	335,442			4.0	%
Total liabilities and shareholders’ equity	$	2,789,506		$	2,567,974		8.6	%	$	2,420,036		15.3	%

Outstanding common shares	14,260,440			14,319,014					14,625,474
Book value per common share (1)	$	24.46		$	23.87				$	22.94
TCE per common share (2)	$	19.62		$	19.05				$	18.21
Total loan to total deposit ratio	99.02		%	99.19		%			101.12		%
Noninterest-bearing deposits to total deposits	25.29		%	27.87		%			35.92		%

(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
	12/31/2023			9/30/2023			% Change		12/31/2022			% Change		12/31/2023			12/31/2022			% Change
Interest and dividend income
Loans, including fees	$	37,189		$	34,651		7.3	%	$	28,786		29.2	%	$	136,029		$	95,054		43.1	%
Investment securities	1,271			1,170			8.6	%	957			32.8	%	4,679			2,907			61.0	%
Other interest-earning assets	2,491			3,031			(17.8)	%	1,833			35.9	%	10,469			3,790			176.2	%
Total interest income	40,951			38,852			5.4	%	31,576			29.7	%	151,177			101,751			48.6	%
Interest expense
Deposits	18,728			16,403			14.2	%	7,295			156.7	%	62,165			11,984			418.7	%
Other borrowings	299			—			—	%	16			1,768.8	%	508			135			276.3	%
Total interest expense	19,027			16,403			16.0	%	7,311			160.3	%	62,673			12,119			417.1	%
Net interest income	21,924			22,449			(2.3)	%	24,265			(9.6)	%	88,504			89,632			(1.3)	%
Provision (reversal) for credit losses	1,698			751			126.1	%	1,149			47.8	%	(132)			3,602			NM
Net interest income after provision (reversal) for credit losses	20,226			21,698			(6.8)	%	23,116			(12.5)	%	88,636			86,030			3.0	%
Noninterest income
Gain on sale of loans	803			689			16.5	%	759			5.8	%	3,570			7,990			(55.3)	%

Service charges and fees on deposits	391			371			5.4	%	352			11.1	%	1,475			1,326			11.2	%
Loan servicing income	751			851			(11.8)	%	734			2.3	%	3,330			2,969			12.2	%
Bank-owned life insurance income	202			187			8.0	%	181			11.6	%	753			706			6.7	%
Other income	356			404			(11.9)	%	363			(1.9)	%	1,555			1,508			3.1	%
Total noninterest income	2,503			2,502			—	%	2,389			4.8	%	10,683			14,499			(26.3)	%
Noninterest expense
Salaries and employee benefits	8,397			8,572			(2.0)	%	7,879			6.6	%	34,572			33,056			4.6	%
Occupancy and equipment	2,145			1,964			9.2	%	1,897			13.1	%	7,924			6,481			22.3	%
Professional fees	898			685			31.1	%	607			47.9	%	3,087			2,239			37.9	%
Marketing and business promotion	772			980			(21.2)	%	724			6.6	%	2,327			2,150			8.2	%
Data processing	393			367			7.1	%	434			(9.4)	%	1,552			1,706			(9.0)	%
Director fees and expenses	207			152			36.2	%	176			17.6	%	756			706			7.1	%
Regulatory assessments	285			281			1.4	%	159			79.2	%	1,103			597			84.8	%
Other expense	1,372			1,206			13.8	%	1,239			10.7	%	4,736			4,191			13.0	%
Total noninterest expense	14,469			14,207			1.8	%	13,115			10.3	%	56,057			51,126			9.6	%
Income before income taxes	8,260			9,993			(17.3)	%	12,390			(33.3)	%	43,262			49,403			(12.4)	%
Income tax expense	2,352			2,970			(20.8)	%	3,688			(36.2)	%	12,557			14,416			(12.9)	%
Net income	$	5,908		$	7,023		(15.9)	%	$	8,702		(32.1)	%	$	30,705		$	34,987		(12.2)	%

Earnings per common share
Basic	$	0.41		$	0.49				$	0.59				$	2.14		$	2.35
Diluted	$	0.41		$	0.49				$	0.58				$	2.12		$	2.31
Average common shares
Basic	14,223,831			14,294,802					14,700,010					14,301,691			14,822,018
Diluted	14,316,581			14,396,216					14,904,106					14,417,938			15,065,175

Dividend paid per common share	$	0.18		$	0.18				$	0.15				$	0.69		$	0.60
Return on average assets (1)	0.89		%	1.09		%			1.44		%			1.20		%	1.54		%
Return on average shareholders’ equity (1)	6.82		%	8.12		%			10.31		%			9.02		%	11.42		%
Return on average TCE (1), (2)	8.54		%	10.17		%			12.99		%			11.31		%	13.23		%
Efficiency ratio (3)	59.23		%	56.94		%			49.20		%			56.52		%	49.10		%

(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
	12/31/2023						9/30/2023						12/31/2022
	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)	$	2,242,457	$	37,189	6.58	%	$	2,137,184	$	34,651	6.43	%	$	2,004,220	$	28,786	5.70	%
Mortgage-backed securities	100,500		855		3.38	%	98,534		750		3.02	%	90,346		585		2.57	%
Collateralized mortgage obligation	23,970		259		4.29	%	24,959		262		4.16	%	25,570		221		3.43	%
SBA loan pool securities	7,453		81		4.31	%	7,842		81		4.10	%	9,545		71		2.95	%
Municipal bonds (2)	3,110		29		3.70	%	3,602		30		3.30	%	4,050		33		3.23	%
Corporate bonds	4,194		47		4.45	%	4,056		47		4.60	%	4,555		47		4.09	%
Other interest-earning assets	175,336		2,491		5.64	%	219,115		3,031		5.49	%	182,018		1,833		4.00	%
Total interest-earning assets	2,557,020		40,951		6.35	%	2,495,292		38,852		6.18	%	2,320,304		31,576		5.40	%
Noninterest-earning assets
Cash and due from banks	23,034						21,298						21,139
ACL on loans	(25,663)						(24,869)						(23,800)
Other assets	87,759						71,512						78,069
Total noninterest-earning assets	85,130						67,941						75,408
Total assets	$	2,642,150					$	2,563,233					$	2,395,712
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	450,408	4,418		3.89	%	$	481,341	4,398		3.62	%	$	540,312	2,852		2.09	%
Savings	6,947		4		0.23	%	7,197		4		0.22	%	10,692		3		0.11	%
Time deposits	1,192,777		14,306		4.76	%	1,073,044		12,001		4.44	%	718,735		4,440		2.45	%
Total interest-bearing deposits	1,650,132		18,728		4.50	%	1,561,582		16,403		4.17	%	1,269,739		7,295		2.28	%
Other borrowings	21,000		299		5.65	%	—		—		—	%	1,739		16		3.65	%
Total interest-bearing liabilities	1,671,132		19,027		4.52	%	1,561,582		16,403		4.17	%	1,271,478		7,311		2.28	%
Noninterest-bearing liabilities
Noninterest-bearing demand	577,894						626,738						771,632
Other liabilities	49,389						31,769						17,770
Total noninterest-bearing liabilities	627,283						658,507						789,402
Total liabilities	2,298,415						2,220,089						2,060,880
Total shareholders’ equity	343,735						343,144						334,832
Total liabilities and shareholders’ equity	$	2,642,150					$	2,563,233					$	2,395,712
Net interest income			$	21,924					$	22,449					$	24,265
Net interest spread (3)					1.83	%					2.01	%					3.12	%
Net interest margin (4)					3.40	%					3.57	%					4.15	%
Total deposits	$	2,228,026	$	18,728	3.33	%	$	2,188,320	$	16,403	2.97	%	$	2,041,371	$	7,295	1.42	%
Total funding (5)	$	2,249,026	$	19,027	3.36	%	$	2,188,320	$	16,403	2.97	%	$	2,043,110	$	7,311	1.42	%

(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
	12/31/2023						12/31/2022
	Average Balance		Interest Income/ Expense		Avg. Yield/Rate		Average Balance		Interest Income/ Expense		Avg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)	$	2,137,851	$	136,029	6.36	%	$	1,872,557	$	95,054	5.08	%
Mortgage-backed securities	98,903		3,001		3.03	%	89,066		1,826		2.05	%
Collateralized mortgage obligation	25,466		1,039		4.08	%	23,479		545		2.32	%
SBA loan pool securities	8,166		325		3.98	%	10,309		208		2.02	%
Municipal bonds (2)	3,788		126		3.33	%	4,874		140		2.87	%
Corporate bonds	4,273		188		4.40	%	4,810		188		3.91	%
Other interest-earning assets	198,809		10,469		5.27	%	194,205		3,790		1.95	%
Total interest-earning assets	2,477,256		151,177		6.10	%	2,199,300		101,751		4.63	%
Noninterest-earning assets
Cash and due from banks	21,565						20,735
ACL on loans	(25,495)						(22,125)
Other assets	76,433						73,951
Total noninterest-earning assets	72,503						72,561
Total assets	$	2,549,759					$	2,271,861
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	470,750	16,190		3.44	%	$	504,275	4,970		0.99	%
Savings	7,499		18		0.24	%	14,068		9		0.06	%
Time deposits	1,059,985		45,957		4.34	%	593,106		7,005		1.18	%
Total interest-bearing deposits	1,538,234		62,165		4.04	%	1,111,449		11,984		1.08	%
Other borrowings	9,192		508		5.53	%	6,290		135		2.15	%
Total interest-bearing liabilities	1,547,426		62,673		4.05	%	1,117,739		12,119		1.08	%
Noninterest-bearing liabilities
Noninterest-bearing demand	629,774						831,621
Other liabilities	32,051						16,061
Total noninterest-bearing liabilities	661,825						847,682
Total liabilities	2,209,251						1,965,421
Total shareholders’ equity	340,508						306,440
Total liabilities and shareholders’ equity	$	2,549,759					$	2,271,861
Net interest income			$	88,504					$	89,632
Net interest spread (3)					2.05	%					3.55	%
Net interest margin (4)					3.57	%					4.08	%
Total deposits	$	2,168,008	$	62,165	2.87	%	$	1,943,070	$	11,984	0.62	%
Total funding (5)	$	2,177,200	$	62,673	2.88	%	$	1,949,360	$	12,119	0.62	%

(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.

PCB Bancorp and Subsidiary

Loan Segments Revision (Unaudited)

($ in thousands)

As a part of the adoption of ASC 326, the Company reviewed and revised certain loan segments for the Company’s ACL model. Before the adoption of ASC 326, commercial property and SBA property loans were separately presented and represented 63.0% and 6.6% of loans held-for-investment at December 31, 2022, respectively. The Company re-divided these loan segments into commercial property (non-owner occupied), business property (owner occupied) and multifamily loans as these new loan segments are determined to share similar characteristics under the Company’s ACL model. In addition, four loan segments before the adoption of ASC 326 (commercial term loans, commercial lines of credit, SBA term loans and SBA PPP loans), which represented 12.2% of loans held-for-investment at December 31, 2022, are combined into a single loan segment, commercial and industrial loans, as these loans are determined to share similar risk characteristics under the Company’s ACL model. In this release, loan segments on loan related disclosures for prior period comparisons are revised accordingly in order to be comparable to the Company’s new loan segments.

The following table presents a reconciliation of revised loan segments to legacy loan segments, which were utilized before the adoption of ASC 326:


($ in thousands)	12/31/2023		9/30/2023		12/31/2022
Revision for commercial real estate loans
Revised loan segments:
Commercial property	$	855,270	$	814,547	$	772,020
Business property	558,772		537,351		526,513
Multifamily	132,500		132,558		124,751
Total	$	1,546,542	$	1,484,456	$	1,423,284
Legacy loan segments:
Commercial property	$	1,418,693	$	1,354,590	$	1,288,392
SBA property	127,849		129,866		134,892
Total	$	1,546,542	$	1,484,456	$	1,423,284

Revision for commercial and industrial loans
Revised loan segments:
Commercial and industrial	$	342,002	$	279,608	$	249,250
Legacy loan segments:
Commercial term	$	122,513	$	87,892	$	77,700
Commercial lines of credit	201,031		174,585		154,142
SBA commercial term	17,754		16,272		16,211
SBA PPP	704		859		1,197
Total	$	342,002	$	279,608	$	249,250

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
		12/31/2023			9/30/2023			12/31/2022			12/31/2023			12/31/2022
Average total shareholders' equity	(a)	$	343,735		$	343,144		$	334,832		$	340,508		$	306,440
Less: average preferred stock	(b)	69,141			69,141			69,141			69,141			42,053
Average TCE	(c)=(a)-(b)	$	274,594		$	274,003		$	265,691		$	271,367		$	264,387
Net income	(d)	$	5,908		$	7,023		$	8,702		$	30,705		$	34,987
Return on average shareholder's equity (1)	(d)/(a)	6.82		%	8.12		%	10.31		%	9.02		%	11.42		%
Return on average TCE (1)	(d)/(c)	8.54		%	10.17		%	12.99		%	11.31		%	13.23		%

(1) Annualized.


($ in thousands, except per share data)		12/31/2023			9/30/2023			12/31/2022
Total shareholders' equity	(a)	$	348,872		$	341,852		$	335,442
Less: preferred stock	(b)	69,141			69,141			69,141
TCE	(c)=(a)-(b)	$	279,731		$	272,711		$	266,301
Outstanding common shares	(d)	14,260,440			14,319,014			14,625,474
Book value per common share	(a)/(d)	$	24.46		$	23.87		$	22.94
TCE per common share	(c)/(d)	$	19.62		$	19.05		$	18.21
Total assets	(e)	$	2,789,506		$	2,567,974		$	2,420,036
Total shareholders' equity to total assets	(a)/(e)	12.51		%	13.31		%	13.86		%
TCE to total assets	(c)/(e)	10.03		%	10.62		%	11.00		%

Earnings Results 4Q23 January 25, 2024

Forward-Looking Statement & Non-GAAP Forward-Looking Statement This presentation contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to the health of the national and local economies including the impact to the Company and its customers resulting from changes to, and the level of, inflation and interest rates; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect our financial performance and our stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber security risks; the Company's ability to successfully deploy new technology; the success of acquisitions and branch expansion; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; costs related to litigation; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in various securities law filings made periodically by the Company, copies of which are available without charge on the SEC’s website at www.sec.gov and the on the investor relations section of the Company’s website at www.mypcbbank.com. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward- looking statements presented herein are made only as of the date of this presentation, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of the historical or future financial performance, financial position or cash flows that excludes amounts or is subject to adjustments that have the effect of excluding amounts that are included in the most directly comparable measure calculated and presented in accordance with GAAP. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided in the Non-GAAP Measures section of this presentation. References to the “Company,” “we,” or “us” refer to PCB Bancorp and references to the “Bank” refer to the Company’s subsidiary, PCB Bank.

Market Information 1/23/24 Market Cap $251.6 million Stock Price Per Share $17.64 52-Week Range $13.11 - $19.09 Dividend Yield 4.08% Dividend Payout Ratio (1Q23 – 4Q23) 32.39% Outstanding Shares 14,260,440 Stock Information 4Q23 or 12/31/23 Diluted Earnings Per Share (“Diluted EPS”) $0.41 Cash Dividend Per Share $0.18 Book Value (“BV”) Per Share $24.46 Tangible Common Equity (“TCE”) Per Share (1) $19.62 Number of Repurchased Shares (2) 60,074 (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure (2) Number of shares repurchased under the stock repurchase plan announced on 8/2/23 during 4Q23 PCB Footprint Corporate Profile

Historical Performance (1) At period end (2) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of these measures to their most comparable GAAP measures

4Q23 Highlights Operating Results • Net income of $5.9 million, or $0.41 per diluted share • Provision for credit losses of $1.7 million • Return on Average Assets (“ROAA”) of 0.89%, Return on Average TCE (“ROATCE”) (1) of 8.54%, net interest margin of 3.40%, and efficiency ratio of 59.2% Loans • Loans held-for-investment (“HFI loans”) increased $155.8 million, or 7.2%, to $2.32 billion • Loans held-for-sale (“HFS loans”) decreased $1.5 million, or 23.0%, to $5.2 million • Average loan yield was 6.58% compared to 6.43% for 3Q23 • Total loans to deposits ratio was 99.0% • Quarterly loan production was $289.9 million compared to $157.8 million for 3Q23 Asset Quality • ACL on loans was $27.5 million, or 1.19% to HFI loans • Past due loans were $1.4 million, or 0.06% of HFI loans and NPLs were $3.9 million, or 0.17% of HFI loans Deposits • Total deposits increased $159.5 million, or 7.3%, to $2.35 billion • Core deposits(1) were $1.47 billion, or 62.6% of total deposits • Non-interest bearing deposits were $594.7 million, or 25.3% of total deposits • Uninsured deposits were $947.3 million, or 40.3% of total deposits • Cost of average interest-bearing deposits and total deposits were 4.50% and 3.33%, respectively Capital & Liquidity • Declared and paid quarterly cash dividend of $0.18 per share • TBV per share increased to $19.62 • Total cash and available borrowing capacity covers 151.9% of uninsured deposits compared to 75.1% at 12/31/22 (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation to most comparable GAAP measure

Selected Financial As of or For the Three Months Ended Compared to 9/30/23 Compared to 12/31/22 ($ in Thousands, Except Per Share Data) 12/31/23 9/30/23 12/31/22 Amount Percentage Amount Percentage Income Statement Summary: Interest Income $ 40,951 $ 38,852 $ 31,576 $ 2,099 5.4% $ 9,375 29.7% Interest Expense 19,027 16,403 7,311 2,624 16.0% 11,716 160.3% Net Interest Income 21,924 22,449 24,265 (525) -2.3% (2,341) -9.6% Noninterest Income 2,503 2,502 2,389 1 0.0% 114 4.8% Noninterest Expense 14,469 14,207 13,115 262 1.8% 1,354 10.3% Provision for Credit Losses (1) 1,698 751 1,149 947 126.1% 549 47.8% Pretax Income 8,260 9,993 12,390 (1,733) -17.3% (4,130) -33.3% Income Tax Expense 2,352 2,970 3,688 (618) -20.8% (1,336) -36.2% Net Income 5,908 7,023 8,702 (1,115) -15.9% (2,794) -32.1% Diluted EPS $ 0.41 $ 0.49 $ 0.58 $ (0.08) -16.3% $ (0.17) -29.3% Selected Balance Sheet Items: HFI loans $ 2,323,452 $ 2,167,605 $ 2,046,063 $ 155,847 7.2% $ 277,389 13.6% HFS loans 5,155 6,693 22,811 (1,538) -23.0% (17,656) -77.4% Total Deposits 2,351,612 2,192,129 2,045,983 159,483 7.3% 305,629 14.9% Total Assets 2,789,506 2,567,974 2,420,036 221,532 8.6% 369,470 15.3% Shareholders’ Equity 348,872 341,852 335,442 7,020 2.1% 13,430 4.0% TCE (2) 279,731 272,711 266,301 7,020 2.6% 13,430 5.0% Key Metrics: BV Per Share $ 24.46 $ 23.87 $ 22.94 $ 0.59 2.5% $ 1.52 6.6% TCE Per Share (2) $ 19.62 $ 19.05 $ 18.21 $ 0.57 3.0% $ 1.41 7.7% ROAA (3) 0.89% 1.09% 1.44% -0.20% -0.55% Return on Average Equity (“ROAE”) (3) 6.82% 8.12% 10.31% -1.30% -3.49% ROATCE (2), (3) 8.54% 10.17% 12.99% -1.63% -4.46% Net Interest Margin (3) 3.40% 3.57% 4.15% -0.17% -0.75% Efficiency Ratio (4) 59.23% 56.94% 49.20% 2.29% 10.03% (1) Provision (reversal) for credit losses and ACL for reporting periods beginning with 1/1/23 are presented under ASC 326, while prior period comparisons continue to be presented under legacy ASC 450 and ASC 310 (2) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of these measures to their most comparable GAAP measures (3) Annualized (4) Calculated by dividing noninterest expense by the sum of net interest income and noninterest income

Loan Overview (1) Per regulatory definition in the Commercial Real Estate (“CRE”) Concentration Guidance 4Q23 Highlights • HFI loans Increased $155.8 million, or 7.2%, to $2.32 billion • CRE loans increased $67.7MM (4.5%), C&I loans increased $62.4MM (22.3%) & residential mortgage loans increased $26.1MM (7.2%)

Loan Production & Rate/Yield Analysis (1) Total commitment basis (2) Include both HFI and HFS loans (3) Annualized Repricing Schedule (12/31/23) HFI Loans HFS Loans Total Loans ($ in thousands) Carrying Value WA Rate Carrying Value WA Rate Carrying Value WA Rate Less Than 3 Months $ 833,703 8.77% $ 5,155 9.60% $ 838,858 8.78% 3 to 12 Months 162,229 5.21% 0 162,229 5.21% 1 to 3 Years 559,016 4.29% 0 559,016 4.29% 3 to 5 Years 665,624 5.50% 0 665,624 5.50% More than 5 Years 102,880 4.98% 0 102,880 4.98% Total $ 2,323,452 6.34% $ 5,155 9.60% $ 2,328,607 6.35% Loan Yield Analysis 4Q23 2023 ($ in thousands) Amount(2) Yield(3) Amount(2) Yield Average Carrying Value $ 2,242,457 $ 2,137,851 Interest on Loans $ 35,934 6.36% $ 131,929 6.17% Fee (Cost) 226 0.04% 714 0.03% Prepayment Penalty & Late Charges 223 0.04% 383 0.02% Discount (Premium) 806 0.14% 3,003 0.14% Total Interest & Fees $ 37,189 6.58% $ 136,029 6.36%

Carrying Value % to Total Count WA LTV(1) WA Rate Maturing ($ in thousands) <= 1 Year 2-3 Years 3-5 Years > 5 Years Retail (More than 50%) $ 354,549 22.5% 309 48.4% 6.14% $ 40,753 $ 104,512 $ 90,543 $ 118,741 Industrial 266,259 16.9% 163 48.6% 5.90% 57,285 53,977 81,456 73,541 Mixed Use 159,507 10.2% 145 44.8% 5.71% 26,058 41,009 62,310 30,130 Hotel & Motel 137,218 8.7% 111 48.4% 7.16% 10,705 8,074 49,968 68,471 Apartments 113,216 7.2% 55 52.6% 4.92% 6,076 17,389 56,639 33,112 Gas Station 99,042 6.3% 117 54.4% 6.52% 3,877 14,497 19,221 61,447 Office 86,054 5.5% 51 53.2% 5.81% 8,632 9,238 36,063 32,121 Medical 60,854 3.9% 31 42.0% 7.62% 11,831 8,387 29,024 11,612 Auto (Sales, Repair & etc.) 38,313 2.4% 32 53.7% 5.48% 3,773 6,906 22,104 5,530 Car Wash 35,795 2.3% 30 50.3% 5.95% 4,291 13,943 2,977 14,584 Golf Course 33,982 2.2% 7 50.2% 4.91% 0 19,306 9,380 5,296 Spa, Sauna, & Other Self-care 31,687 2.0% 8 50.4% 5.13% 13,305 429 8,858 9,095 Commercial Condominium 31,266 2.0% 39 49.5% 5.77% 2,722 7,153 6,643 14,748 Construction 24,843 1.6% 8 40.2% 9.53% 24,843 0 0 0 Wholesale 19,841 1.3% 14 42.5% 5.42% 2,355 4,093 3,900 9,493 Church 12,503 0.8% 17 36.3% 5.49% 1,015 2,781 3,453 5,254 Others 66,456 4.2% 73 51.8% 6.57% 13,331 7,267 30,466 15,392 Total $ 1,571,385 100.0% 1,210 48.9% 6.10% $ 230,852 $ 318,961 $ 513,005 $ 508,567 Loan Concentration (1) Collateral value at origination Commercial Real Estate Loans by Property Type (12/31/23) ($ in thousands) Carrying Value WA LTV(1) WA FICO Residential Mortgage $ 389,420 59.6% 759 Residential Mortgage Loans (12/31/23)

Loan Concentration Carrying Value % to Total WA Rate WA Month to Maturity($ in thousands) Finance & Insurance $ 85,672 25.2% 7.96% 9 Real Estate Related 77,578 22.7% 8.35% 16 General Manufacturing & Wholesale Trade 63,399 18.5% 8.57% 15 Retail Trade 31,602 9.2% 9.32% 55 Food Services 31,444 9.2% 9.24% 67 Professional, Scientific & Technical Services 16,041 4.7% 8.72% 24 Entertainment & Recreation 14,370 4.2% 8.07% 26 Transportation & Warehousing 6,323 1.8% 8.92% 8 Other Services 5,253 1.5% 8.86% 54 Health Care & Social Assistance 4,383 1.3% 9.15% 24 All Other 5,937 1.7% 8.01% 45 Total $ 342,002 100.0% 8.49% 24 Commercial & Industrial Loans by Industry Type (12/31/23)

Credit Quality & Peer(1) Comparison (1) Korean-American banks operating in Southern California (2) Source: UBPR (3) PCB Bank’s Peer Group per UBPR (4) Source: press releases concerning financial performance

Deposits (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure. Time Deposit Maturity Schedule (12/31/23) Retail Wholesale Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 329,926 4.55% $ 193,970 5.33% $ 523,896 4.84% 3 to 6 Months 198,852 4.82% 106,821 5.33% 305,673 5.00% 6 to 9 Months 91,854 4.65% 37,950 5.35% 129,804 4.86% 9 to 12 Months 345,898 5.12% 25,000 5.50% 370,898 5.15% More than 12 Months 5,465 3.75% 0 5,465 3.75% Total $ 971,995 4.81% $ 363,741 5.34% $ 1,335,736 4.96% 4Q23 Highlights • Total deposits increased $159.5MM (7.3%) • Retail deposits increased $57.0MM (3.0%) and wholesale deposits increased $102.5MM (39.2%) • Uninsured deposits were $947.3MM (40.3% of total deposits) compared to $983.9MM (44.9% of total deposits) at 9/30/23

Profitability (1) PTPP (Pre-Tax Pre-Provision) income, and adjusted EPS, ROAA and ROAE for PTPP are not presented in accordance with GAAP. See “Non-GAAP measure” for reconciliations of these measures to their most comparable GAAP measures. 4Q23 Highlights • Noninterest expense increased $262K and net interest income decreased $525K.

Noninterest Income & Expense (1) Annualized (2) Calculated by dividing noninterest expense by the sum of net interest income and noninterest income. Peer average data from UBPR (3) Full-time equivalent

Net Interest Margin (1) Annualized 4Q23 Highlights • Net interest income decreased $525K to $21.9MM from $22.4MM for 3Q23. • Net interest margin decreased to 3.40% from 3.57% for 3Q23 mainly due to an increase in cost of average interest-bearing liabilities, partially offset by an increase in yield on average interest- earning assets.

Capital (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.

Non-GAAP Measures To supplement the financial information presented in accordance with GAAP, we use certain non-GAAP financial measures. Management believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. Risks associated with non-GAAP measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. In the information below, we provide reconciliations of the non-GAAP financial measures used in this presentation to the most direct comparable GAAP measures. Core Deposits Core Deposits are a non-GAAP measure that we use to measure the portion of our total deposits that are thought to be more stable, lower cost and reprice less frequently on average in a rising rate environment. We calculate core deposits as total deposits less time deposits greater than $250,000 and brokered deposits. Management tracks its core deposits because management believes it is a useful measure to help assess the Company’s deposit base and, among other things, potential volatility therein. ROATCE, TCE Per Share and TCE to Total Assets ROATCE, TCE per share and TCE to total assets measures that we use to measure the Company’s performance. We calculated TCE as total shareholders’ equity excluding preferred stock. Management believes the non-GAAP measures provide useful supplemental information, and a clearer understanding of the Company’s performance. PTPP Income, and Adjusted ROAA, ROAE and Diluted EPS for PTPP PTPP income, and adjusted ROAA, ROAE and Diluted EPS are non-GAAP measures that we use to measure the Company’s performance and believe these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. We calculated PTPP income as net income excluding income tax provision and provision for loan losses.

Non-GAAP Measures The following table reconciles core deposits to its most comparable GAAP measure: ($ in thousands) Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Total Deposits (d) $ 1,910,379 $ 1,997,607 $ 1,978,098 $ 2,045,983 $ 2,141,689 $ 2,188,231 $ 2,192,1291 $ 2,351,612 Less: Time Deposits Greater Than $250K (273,844) (246,024) (299,271) (413,876) (514,464) (511,590) (514,406) (575,702) Less: Brokered Deposits (35,001) (35,001) (79,131) (87,031) (157,020) (160,149) (201,258) (303,742) Core Deposits (e) $ 1,601,534 $ 1,716,582 $ 1,599,696 $ 1,545,076 $ 1,470,205 $ 1,516,492 $ 1,476,465 $ 1,472,168 Core Deposits to Total Deposits (e)/(d) 83.8% 85.9% 80.9% 75.5% 68.6% 69.3% 67.4% 62.6% The following table reconciles ROATCE to its most comparable GAAP measure: ($ in thousands) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Average Total Shareholders' Equity (a) $ 259,367 $ 292,135 $ 338,248 $ 334,832 $ 335,169 $ 339,869 $ 343,144 $ 343,735 Less: Average Preferred Stock 0 28,872 69,141 69,141 69,141 69,141 69,141 69,141 Average TCE (Non-GAAP) (b) $ 259,367 $ 263,263 $ 269,107 $ 265,691 $ 266,028 $ 270,728 $ 274,003 $ 274,594 Net Income (c) $ 10,240 $ 9,092 $ 6,953 $ 8,702 $ 10,297 $ 7,477 $ 7,023 $ 5,908 ROAE (1) (c)/(a) 16.01% 12.48% 8.16% 10.31% 12.46% 8.82% 8.12% 6.82% ROATCE (Non-GAAP)(1) (c)/(b) 16.01% 13.85% 10.25% 12.99% 15.70% 11.08% 10.17% 8.54% The following table reconciles TCE per share and TCE to total assets to their most comparable GAAP measures: ($ in thousands, except per share data) Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Total Shareholders' Equity (a) $ 261,058 $ 334,375 $ 332,719 $ 335,442 $ 336,830 $ 340,411 $ 341,852 $ 348,872 Less: Preferred Stock 0 69,141 69,141 69,141 69,141 69,141 69,141 69,141 TCE (Non-GAAP) (b) $ 261,058 $ 265,234 $ 263,578 $ 266,301 $ 267,689 $ 271,270 $ 272,711 $ 279,731 Outstanding Shares (c) 14,944,663 14,956,760 14,853,140 14,625,474 14,297,870 14,318,890 14,319,014 14,260,440 Book Value Per Share (a)/(c) $ 17.47 $ 22.36 $ 22.40 $ 22.94 $ 23.56 $ 23.77 $ 23.87 $ 24.46 TCE Per Share (Non-GAAP) (b)/(c) $ 17.47 $ 17.73 $ 17.75 $ 18.21 $ 18.72 $ 18.94 $ 19.05 $ 19.62 Total Assets (d) $ 2,199,742 $ 2,344,560 $ 2,327,051 $ 2,420,036 $ 2,500,524 $ 2,556,345 $ 2,567,974 $ 2,789,506 Total Shareholders’ Equity to Total Assets (a)/(d) 11.87% 14.26% 14.30% 13.86% 13.47% 13.32% 13.31% 12.51% TCE to Total Assets (Non-GAAP) (b)/(d) 11.87% 11.31% 11.33% 11.00% 10.71% 10.61% 10.62% 10.03% (1) Annualized

Non-GAAP Measures (1) Provision (reversal) for credit losses does not include provision (reversal) for off-balance sheet credit exposures for periods prior to January 1, 2023. (2) Annualized. The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: ($ in thousands) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Net Income (a) $ 10,240 $ 9,092 $ 6,953 $ 8,702 $ 10,297 $ 7,477 $ 7,023 $ 5,908 Add: Provision (Reversal) for Credit Losses(1) (1,191) (109) 3,753 1,149 (2,778) 197 751 1,698 Add: Income Tax Provision 4,159 3,771 2,798 3,688 4,162 3,073 2,970 2,352 PTPP Income (Non-GAAP) (b) $ 13,208 $ 12,754 $ 13,504 $ 13,539 $ 11,681 $ 10,747 $ 10,744 $ 9,958 Average Total Assets (c) $ 2,161,132 $ 2,208,059 $ 2,319,439 $ 2,395,712 $ 2,470,876 $ 2,520,752 $ 2,563,233 $ 2,642,175 ROAA (2) (a)/(c) 1.92% 1.65% 1.19% 1.44% 1.69% 1.19% 1.09% 0.89% Adjusted ROAA (Non-GAAP)(2) (b)/(c) 2.48% 2.32% 2.31% 2.24% 1.92% 1.71% 1.66% 1.50% Average Total Shareholders' Equity (d) $ 259,367 $ 292,135 $ 338,248 $ 334,832 $ 335,169 $ 339,869 $ 343,144 $ 343,735 ROAE (2) (a)/(d) 16.01% 12.48% 8.16% 10.31% 12.46% 8.82% 8.12% 6.82% Adjusted ROAE (Non-GAAP)(2) (b)/(d) 20.65% 17.51% 15.84% 16.04% 14.13% 12.68% 12.42% 11.49% Net Income $ 10,240 $ 9,092 $ 6,953 $ 8,702 $ 10,297 $ 7,477 $ 7,023 $ 5,908 Less: Income Allocated to Participating Securities (48) (42) (30) (37) (33) (24) (21) (17) Net Income Allocated to Common Stock (e) 10,192 9,050 6,923 8,665 10,264 7,453 7,002 5,891 Add: Provision for Loan Losses (1,191) (109) 3,753 1,149 (2,778) 197 751 1,698 Add: Income Tax Provision 4,159 3,771 2,798 3,688 4,162 3,073 2,970 2,352 PTPP Income Allocated to Common Stock (f) $ 13,160 $ 12,712 $ 13,474 $ 13,502 $ 11,648 $ 10,723 $ 10,723 $ 9,941 WA common shares outstanding, diluted (g) 15,141,693 15,122,452 15,088,089 14,904,106 14,574,929 14,356,776 14,396,216 14,316,581 Diluted EPS (e)/(g) $ 0.67 $ 0.60 $ 0.46 $ 0.58 $ 0.70 $ 0.52 $ 0.49 $ 0.41 Adjusted Diluted EPS (Non-GAAP) (f)/(g) $ 0.87 $ 0.84 $ 0.89 $ 0.91 $ 0.80 $ 0.75 $ 0.74 $ 0.69 ($ in thousands) 2019 2020 2021 2022 2023 Net Income $ 24,108 $ 16,175 $ 40,103 $ 34,987 $ 30,705 Add: Provision (Reversal) for Credit Losses(1) 4,237 13,219 (4,596) 3,602 (132) Add: Income Tax Provision 10,243 6,836 16,856 14,416 12,557 PTPP Income (Non-GAAP) $ 38,588 $ 36,230 $ 52,363 $ 53,005 $ 43,130

Exhibit 99.3

PCB Bancorp Declares Quarterly Cash Dividend of $0.18 Per Common Share

Los Angeles, California - January 25, 2024 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank, announced that on January 25, 2024, its Board of Directors declared a quarterly cash dividend of $0.18 per common share. The dividend will be paid on or about February 16, 2024, to shareholders of record as of the close of business on February 9, 2024.

About PCB Bancorp

Contact:

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

Document and Entity Information Document	Jan. 25, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 25, 2024
Entity Registrant Name	PCB BANCORP
Entity Central Index Key	0001423869
Amendment Flag	false
Entity Incorporation, State or Country Code	CA
Entity File Number	001-38621
Entity Tax Identification Number	20-8856755
Entity Address, Address Line One	3701 Wilshire Boulevard
Entity Address, Address Line Two	Suite 900
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90010
City Area Code	213
Local Phone Number	210-2000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, no par value
Trading Symbol	PCB
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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