PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company
of PCB Bank (the “Bank”), today reported net income available to
common shareholders of $6.7 million, or $0.46 per diluted common
share, for the fourth quarter of 2024, compared with $7.5 million,
or $0.52 per diluted common share, for the previous quarter and
$5.9 million, or $0.41 per diluted common share, for the year-ago
quarter. For 2024, net income available to common shareholders was
$25.0 million, or $1.74 per diluted common share, compared with
$30.7 million, or $2.12 per diluted common share, for the previous
year.
Q4 2024 and Full Year Highlights
- Net income available to common shareholders totaled $6.7
million, or $0.46 per diluted common share, for the current quarter
and $25.0 million, or $1.74 per diluted common share, for the
current year;
- Provision for credit losses was $2.0 million for the current
quarter compared with $50 thousand for the previous quarter and
$1.7 million for the year-ago quarter. For the current year,
provision (reversal) for credit losses was $3.4 million compared
with $(132) thousand for the previous year;
- Allowance for Credit Losses (“ACL”) on loans to loans
held-for-investment ratio was 1.16% at December 31, 2024 compared
with 1.17% at September 30, 2024 and 1.19% at December 31,
2023;
- Net interest income was $23.2 million for the current quarter
compared with $22.7 million for the previous quarter and $21.9
million for the year-ago quarter. Net interest margin was 3.18% for
the current quarter compared with 3.25% for the previous quarter
and 3.40% for the year-ago quarter. For the current year, net
interest income and net interest margin were $88.6 million and
3.17%, respectively, compared with $88.5 million and 3.57%,
respectively, for the previous year;
- Gain on sale of loans was $1.2 million for the current quarter
compared with $750 thousand for the previous quarter and $803
thousand for the year-ago quarter. For the current year, gain on
sale of loans was $3.8 million compared with $3.6 million for the
previous year;
- Total assets were $3.06 billion at December 31, 2024, an
increase of $174.1 million, or 6.0%, from $2.89 billion at
September 30, 2024 and an increase of $274.5 million, or 9.8%, from
$2.79 billion at December 31, 2023;
- Loans held-for-investment were $2.63 billion at December 31,
2024, an increase of $163.2 million, or 6.6%, from $2.47 billion at
September 30, 2024 and an increase of $305.9 million, or 13.2%,
from $2.32 billion at December 31, 2023; and
- Total deposits were $2.62 billion at December 31, 2024, an
increase of $156.1 million, or 6.3%, from $2.46 billion at
September 30, 2024 and an increase of $264.2 million, or 11.2%,
from $2.35 billion at December 31, 2023.
Henry Kim, President and CEO, commented, “Over the past few
weeks, we are saddened by the unspeakable devastation caused by the
wildfires in Southern California. We are currently in the process
of determining the overall impact on our customers. Fortunately,
our assessment of the current situation does not indicate any
significant losses to any of our customers at this time.”
Mr. Kim continued, “Our strong fourth quarter results reflect
strong loan growth combined with another solid credit metrics.
Additionally, we successfully maintained an efficiency ratio of 53%
for the quarter that was primarily driven by our bank-wide cost
saving measures and ongoing branch network optimizations.”
“During the past couple of years, we made significant steps in
strengthening our balance sheet and core earnings capacity. As we
look ahead in 2025 and beyond, we believe we are well positioned to
generate further growth in balance sheet, continue to operate
efficiently while expanding our branch network, and expand
profitability to create ongoing value for our shareholders.”
Financial Highlights
(Unaudited)
($ in thousands, except per share
data)
Three Months
Ended
Year Ended
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
Net income
$
7,030
$
7,814
(10.0
)%
$
5,908
19.0
%
$
25,810
$
30,705
(15.9
)%
Net income available to common
shareholders
$
6,684
$
7,468
(10.5
)%
$
5,908
13.1
%
$
24,976
$
30,705
(18.7
)%
Diluted earnings per common share
$
0.46
$
0.52
(11.5
)%
$
0.41
12.2
%
$
1.74
$
2.12
(17.9
)%
Net interest income
$
23,164
$
22,719
2.0
%
$
21,924
5.7
%
$
88,617
$
88,504
0.1
%
Provision (reversal) for credit losses
2,002
50
3,904.0
%
1,698
17.9
%
3,401
(132
)
NM
Noninterest income
3,043
2,620
16.1
%
2,503
21.6
%
11,093
10,683
3.8
%
Noninterest expense
13,894
14,602
(4.8
)%
14,469
(4.0
)%
60,023
56,057
7.1
%
Return on average assets (1)
0.94
%
1.08
%
0.89
%
0.90
%
1.20
%
Return on average shareholders’ equity
(1)
7.69
%
8.70
%
6.82
%
7.26
%
9.02
%
Return on average tangible common equity
(“TCE”) (1),(2)
9.02
%
10.31
%
8.54
%
8.72
%
11.31
%
Net interest margin (1)
3.18
%
3.25
%
3.40
%
3.17
%
3.57
%
Efficiency ratio (3)
53.02
%
57.63
%
59.23
%
60.20
%
56.52
%
($ in thousands, except per share
data)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
Total assets
$
3,063,971
$
2,889,833
6.0
%
$
2,789,506
9.8
%
Net loans held-for-investment
2,598,759
2,437,244
6.6
%
2,295,919
13.2
%
Total deposits
2,615,791
2,459,682
6.3
%
2,351,612
11.2
%
Book value per common share (4)
$
25.30
$
25.39
$
24.46
TCE per common share (2)
$
20.49
$
20.55
$
19.62
Tier 1 leverage ratio (consolidated)
12.45
%
12.79
%
13.43
%
Total shareholders’ equity to total
assets
11.87
%
12.54
%
12.51
%
TCE to total assets (2), (5)
9.62
%
10.14
%
10.03
%
(1)
Ratios are presented on an
annualized basis.
(2)
Non-GAAP. See “Non-GAAP Measures”
for reconciliation of this measure to its most comparable GAAP
measure.
(3)
Calculated by dividing
noninterest expense by the sum of net interest income and
noninterest income.
(4)
Calculated by dividing total
shareholders’ equity by the number of outstanding common
shares.
(5)
The Company did not have any
intangible asset component for the presented periods.
Result of Operations
(Unaudited)
Net Interest Income and Net Interest Margin
The following table presents the components of net interest
income for the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
Interest income/expense on
Loans
$
42,309
$
42,115
0.5
%
$
37,189
13.8
%
$
164,301
$
136,029
20.8
%
Investment securities
1,388
1,384
0.3
%
1,271
9.2
%
5,328
4,679
13.9
%
Other interest-earning assets
2,622
2,499
4.9
%
2,491
5.3
%
11,188
10,469
6.9
%
Total interest-earning assets
46,319
45,998
0.7
%
40,951
13.1
%
180,817
151,177
19.6
%
Interest-bearing deposits
22,927
23,057
(0.6
)%
18,728
22.4
%
90,487
62,165
45.6
%
Borrowings
228
222
2.7
%
299
(23.7
)%
1,713
508
237.2
%
Total interest-bearing liabilities
23,155
23,279
(0.5
)%
19,027
21.7
%
92,200
62,673
47.1
%
Net interest income
$
23,164
$
22,719
2.0
%
$
21,924
5.7
%
$
88,617
$
88,504
0.1
%
Average balance of
Loans
$
2,538,310
$
2,456,015
3.4
%
$
2,242,457
13.2
%
$
2,445,080
$
2,137,851
14.4
%
Investment securities
147,943
147,528
0.3
%
139,227
6.3
%
144,455
140,596
2.7
%
Other interest-earning assets
207,234
175,711
17.9
%
175,336
18.2
%
203,279
198,809
2.2
%
Total interest-earning assets
$
2,893,487
$
2,779,254
4.1
%
$
2,557,020
13.2
%
$
2,792,814
$
2,477,256
12.7
%
Interest-bearing deposits
$
1,986,901
$
1,893,006
5.0
%
$
1,650,132
20.4
%
$
1,892,944
$
1,538,234
23.1
%
Borrowings
17,946
15,848
13.2
%
21,000
(14.5
)%
31,033
9,192
237.6
%
Total interest-bearing liabilities
$
2,004,847
$
1,908,854
5.0
%
$
1,671,132
20.0
%
$
1,923,977
$
1,547,426
24.3
%
Total funding (1)
$
2,548,818
$
2,443,615
4.3
%
$
2,249,026
13.3
%
$
2,463,240
$
2,177,200
13.1
%
Annualized average yield/cost
of
Loans
6.63
%
6.82
%
6.58
%
6.72
%
6.36
%
Investment securities
3.73
%
3.73
%
3.62
%
3.69
%
3.33
%
Other interest-earning assets
5.03
%
5.66
%
5.64
%
5.50
%
5.27
%
Total interest-earning assets
6.37
%
6.58
%
6.35
%
6.47
%
6.10
%
Interest-bearing deposits
4.59
%
4.85
%
4.50
%
4.78
%
4.04
%
Borrowings
5.05
%
5.57
%
5.65
%
5.52
%
5.53
%
Total interest-bearing liabilities
4.59
%
4.85
%
4.52
%
4.79
%
4.05
%
Net interest margin
3.18
%
3.25
%
3.40
%
3.17
%
3.57
%
Cost of total funding (1)
3.61
%
3.79
%
3.36
%
3.74
%
2.88
%
Supplementary information
Net accretion of discount on loans
$
645
$
773
(16.6
)%
$
806
(20.0
)%
$
2,782
$
3,003
(7.4
)%
Net amortization of deferred loan fees
$
295
$
246
19.9
%
$
449
(34.3
)%
$
1,214
$
1,097
10.7
%
(1)
Total funding is the sum of
interest-bearing liabilities and noninterest-bearing deposits. The
cost of total funding is calculated as annualized total interest
expense divided by average total funding.
Loans. The decrease in average
yield for the current quarter compared with the previous quarter
was primarily due to a decrease in market rates. The Federal Open
Market Committee decreased the Fed Funds rate by 50 bps, 25bps, and
25bps on September 18, November 7, and December 18, 2024,
respectively. The increase for the current year was primarily due
to increases in average interest rates on loans and net
amortization of deferred loan fees, partially offset by the
decrease in market interest rates during the second half of
2024.
The following table presents a composition of total loans by
interest rate type accompanied with the weighted-average
contractual rates as of the dates indicated:
12/31/2024
9/30/2024
12/31/2023
% to Total Loans
Weighted-Average Contractual
Rate
% to Total Loans
Weighted-Average Contractual
Rate
% to Total Loans
Weighted-Average Contractual
Rate
Fixed rate loans
17.4 %
5.23 %
18.3 %
5.06 %
21.2 %
4.86 %
Hybrid rate loans
37.3 %
5.27 %
37.6 %
5.14 %
39.0 %
4.93 %
Variable rate loans
45.3 %
7.63 %
44.1 %
8.10 %
39.8 %
8.51 %
Investment Securities. The
increases in average yield for the current quarter and year
compared with the same periods of 2023 were primarily due to higher
yields on newly purchased investment securities and a decrease in
net amortization of premium.
Other Interest-Earning Assets. The
decrease in average yield for the current quarter compared with the
previous and year-ago quarters was primarily due to a decrease in
average interest rate on cash held at the Federal Reserve Bank
(“FRB”), partially offset by an increase in dividends received on
Federal Home Loan Bank (“FHLB”) stock. The increase for the current
year was primarily due to increases in average interest rate on
cash held at the FRB and dividends received on FHLB stock.
Interest-Bearing Deposits. The
decrease in average cost for the current quarter compared with the
previous was primarily due to a decrease in market rates. The
increases in average cost for the current quarter and year compared
with the same periods of 2023 were primarily due to increases in
market rates throughout 2024.
Provision (Reversal) for Credit Losses
The following table presents a composition of provision
(reversal) for credit losses for the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
Provision for credit losses on loans
$
2,044
$
193
959.1
%
$
1,935
5.6
%
$
3,488
$
497
601.8
%
Reversal for credit losses on off-balance
sheet credit exposure
(42
)
(143
)
(70.6
)%
(237
)
(82.3
)%
(87
)
(629
)
(86.2
)%
Total provision (reversal) for credit
losses
$
2,002
$
50
3,904.0
%
$
1,698
17.9
%
$
3,401
$
(132
)
NM
The provision for credit losses on loans for the current quarter
was primarily due to an increase in loans held-for-investment.
Noninterest Income
The following table presents the components of noninterest
income for the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
Gain on sale of loans
$
1,161
$
750
54.8
%
$
803
44.6
%
$
3,752
$
3,570
5.1
%
Service charges and fees on deposits
404
399
1.3
%
391
3.3
%
1,545
1,475
4.7
%
Loan servicing income
861
786
9.5
%
751
14.6
%
3,365
3,330
1.1
%
Bank-owned life insurance income
246
239
2.9
%
202
21.8
%
949
753
26.0
%
Other income
371
446
(16.8
)%
356
4.2
%
1,482
1,555
(4.7
)%
Total noninterest income
$
3,043
$
2,620
16.1
%
$
2,503
21.6
%
$
11,093
$
10,683
3.8
%
Gain on Sale of Loans. The
following table presents information on gain on sale of loans for
the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
Gain on sale of SBA loans
Sold loan balance
$
24,518
$
13,506
81.5
%
$
20,751
18.2
%
$
71,057
$
82,343
(13.7
)%
Premium received
1,910
1,185
61.2
%
1,250
52.8
%
5,747
5,612
2.4
%
Gain recognized
1,161
750
54.8
%
803
44.6
%
3,752
3,570
5.1
%
Gain on sale of residential mortgage
loans
Sold loan balance
$
—
$
676
(100.0
)%
$
—
—
%
$
676
$
—
NM
Gain recognized
—
—
—
%
—
—
%
—
—
—
%
Loan Servicing Income. The
following table presents information on loan servicing income for
the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
Loan servicing income
Servicing income received
$
1,255
$
1,264
(0.7
)%
$
1,290
(2.7
)%
$
5,130
$
5,212
(1.6
)%
Servicing assets amortization
(394
)
(478
)
(17.6
)%
(539
)
(26.9
)%
(1,765
)
(1,882
)
(6.2
)%
Loan servicing income
$
861
$
786
9.5
%
$
751
14.6
%
$
3,365
$
3,330
1.1
%
Underlying loans at end of period
$
523,797
$
527,062
(0.6
)%
$
532,231
(1.6
)%
$
523,797
$
532,231
(1.6
)%
The Company services SBA loans and certain residential property
loans sold to the secondary market.
Noninterest Expense
The following table presents the components of noninterest
expense for the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
Salaries and employee benefits
$
8,417
$
8,801
(4.4
)%
$
8,397
0.2
%
$
35,661
$
34,572
3.1
%
Occupancy and equipment
2,198
2,261
(2.8
)%
2,145
2.5
%
9,117
7,924
15.1
%
Professional fees
752
599
25.5
%
898
(16.3
)%
3,408
3,087
10.4
%
Marketing and business promotion
582
667
(12.7
)%
772
(24.6
)%
1,886
2,327
(19.0
)%
Data processing
205
397
(48.4
)%
393
(47.8
)%
1,499
1,552
(3.4
)%
Director fees and expenses
227
226
0.4
%
207
9.7
%
906
756
19.8
%
Regulatory assessments
322
309
4.2
%
285
13.0
%
1,256
1,103
13.9
%
Other expense
1,191
1,342
(11.3
)%
1,372
(13.2
)%
6,290
4,736
32.8
%
Total noninterest expense
$
13,894
$
14,602
(4.8
)%
$
14,469
(4.0
)%
$
60,023
$
56,057
7.1
%
Salaries and Employee Benefits. The
decrease for the current quarter compared with the previous quarter
was primarily due to decreases in salaries and vacation accruals
and an increase in direct loan origination cost, which offsets and
defers the recognition of salaries and benefits expense. The
increase for the current year was primarily due to increases in
salaries, bonus accrual, and incentives tied to sales of SBA loans
originated at loan production offices, partially offset by a
decrease in vacation accrual. The number of full-time equivalent
employees was 262, 264 and 270 as of December 31, 2024, September
30, 2024 and December 31, 2023, respectively.
Occupancy and Equipment. The
increases for the current quarter and year compared with the same
periods of 2023 were primarily due to an expansion of headquarters
location in the second half of 2023 and a relocation of a regional
office and two branches into one location in Orange County,
California in 2024.
Professional Fees. During the first
half of 2024, the Company incurred additional professional fees
related to a core system conversion, which was completed in April
2024.
Marketing and Business Promotion.
The decrease for the current quarter compared with the previous and
year-ago quarters were primarily due to a decrease in
advertisements. The decrease for the current year compared to 2023
was primarily due to a higher, nonrecurring volume of
advertisements in 2023 related to the Company’s 20th anniversary
celebration.
Data processing. The decrease for
the current quarter and year compared with the same periods of 2023
were primarily due to one-time new relationship credit from the
core system conversion completed in April 2024.
Other Expense. The increase for the
year was primarily due to a termination charge for the legacy core
system of $508 thousand and an expense of $815 thousand for a
reimbursement for an SBA loan guarantee previously paid by the SBA
on a loan originated in 2014 that subsequently defaulted and was
ultimately determined to be ineligible for the SBA guaranty during
the second quarter of 2024. The Company has retained a law firm
specializing in SBA recovery and intends to seek that SBA
reconsider its decision so that the Company may recoup all or part
of the reimbursement.
Balance Sheet
(Unaudited)
Total assets were $3.06 billion at December 31, 2024, an
increase of $174.1 million, or 6.0%, from $2.89 billion at
September 30, 2024 and an increase of $274.5 million, or 9.8%, from
$2.79 billion at December 31, 2023. The increases for the current
quarter and year were primarily due to increases in loans
held-for-investment and deferred tax assets.
Loans
The following table presents a composition of total loans
(includes both loans held-for-sale and loans held-for-investment)
as of the dates indicated:
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
Commercial real estate:
Commercial property
$
940,931
$
874,824
7.6
%
$
855,270
10.0
%
Business property
595,547
579,461
2.8
%
558,772
6.6
%
Multifamily
194,220
185,485
4.7
%
132,500
46.6
%
Construction
21,854
21,150
3.3
%
24,843
(12.0
)%
Total commercial real estate
1,752,552
1,660,920
5.5
%
1,571,385
11.5
%
Commercial and industrial
472,763
407,024
16.2
%
342,002
38.2
%
Consumer:
Residential mortgage
392,456
383,377
2.4
%
389,420
0.8
%
Other consumer
11,616
14,853
(21.8
)%
20,645
(43.7
)%
Total consumer
404,072
398,230
1.5
%
410,065
(1.5
)%
Loans held-for-investment
2,629,387
2,466,174
6.6
%
2,323,452
13.2
%
Loans held-for-sale
6,292
5,170
21.7
%
5,155
22.1
%
Total loans
$
2,635,679
$
2,471,344
6.6
%
$
2,328,607
13.2
%
SBA loans included in:
Loans held-for-investment
$
146,940
$
142,819
2.9
%
$
145,603
0.9
%
Loans held-for-sale
$
6,292
$
5,170
21.7
%
$
5,155
22.1
%
The increase in loans held-for-investment for the current
quarter was primarily due to new funding of term loans of $189.9
million and net increase of lines of credit of $57.6 million,
partially offset by pay-downs and pay-offs of term loans of $83.8
million and charge-offs of $395 thousand. The increase for the
current year was primarily due to new funding of term loans of
$411.6 million and net increase of lines of credit of $163.6
million, partially offset by pay-downs and pay-offs of term loans
of $267.8 million, charge-offs of $691 thousand, a loan transferred
to loans held-for-sale of $676 thousand, and a loan transferred to
OREO of $94 thousand.
The increase in loans held-for-sale for the current quarter was
primarily due to new funding of $25.6 million, partially offset by
sales of $24.5 million and pay-downs of $7 thousand. The increase
for the current year was primarily due to new funding of $74.0
million and a loan transferred from loan held-for-investment of
$676 thousand, partially offset by sales of $71.7 million and
pay-downs of $1.8 million.
The following table presents a composition of off-balance sheet
credit exposure as of the dates indicated:
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
Commercial property
$
8,888
$
3,291
170.1
%
$
11,634
(23.6
)%
Business property
11,058
12,441
(11.1
)%
9,899
11.7
%
Multifamily
—
—
—
%
1,800
(100.0
)%
Construction
14,423
17,810
(19.0
)%
23,739
(39.2
)%
Commercial and industrial
364,731
394,428
(7.5
)%
351,025
3.9
%
Other consumer
1,475
5,590
(73.6
)%
3,421
(56.9
)%
Total commitments to extend credit
400,575
433,560
(7.6
)%
401,518
(0.2
)%
Letters of credit
6,795
6,673
1.8
%
6,583
3.2
%
Total off-balance sheet credit
exposure
$
407,370
$
440,233
(7.5
)%
$
408,101
(0.2
)%
Credit Quality
The following table presents a summary of non-performing loans
and assets, and classified assets as of the dates indicated:
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
Nonaccrual loans
Commercial real estate:
Commercial property
$
1,851
$
1,633
13.3
%
$
958
93.2
%
Business property
2,336
2,367
(1.3
)%
2,865
(18.5
)%
Multifamily
—
2,038
(100.0
)%
—
—
%
Total commercial real estate
4,187
6,038
(30.7
)%
3,823
9.5
%
Commercial and industrial
79
124
(36.3
)%
68
16.2
%
Consumer:
Residential mortgage
403
414
(2.7
)%
—
NM
Other consumer
24
38
(36.8
)%
25
(4.0
)%
Total consumer
427
452
(5.5
)%
25
1,608.0
%
Total nonaccrual loans
held-for-investment
4,693
6,614
(29.0
)%
3,916
19.8
%
Loans past due 90 days or more and still
accruing
—
—
—
%
—
—
%
Non-performing loans (“NPLs”)
4,693
6,614
(29.0
)%
3,916
19.8
%
NPLs held-for-sale
—
—
—
%
—
—
%
Total NPLs
4,693
6,614
(29.0
)%
3,916
19.8
%
Other real estate owned (“OREO”)
—
466
(100.0
)%
2,558
(100.0
)%
Non-performing assets (“NPAs”)
$
4,693
$
7,080
(33.7
)%
$
6,474
(27.5
)%
Loans past due and still accruing
Past due 30 to 59 days
$
4,599
$
2,973
54.7
%
$
1,394
229.9
%
Past due 60 to 89 days
303
21
1,342.9
%
34
791.2
%
Past due 90 days or more
—
—
—
%
—
—
%
Total loans past due and still
accruing
$
4,902
$
2,994
63.7
%
$
1,428
243.3
%
Special mention loans
$
5,034
$
5,057
(0.5
)%
$
5,156
(2.4
)%
Classified assets
Classified loans held-for-investment
$
6,930
$
8,860
(21.8
)%
$
7,000
(1.0
)%
Classified loans held-for-sale
—
—
—
%
—
—
%
OREO
—
466
(100.0
)%
2,558
(100.0
)%
Classified assets
$
6,930
$
9,326
(25.7
)%
$
9,558
(27.5
)%
NPLs to loans held-for-investment
0.18
%
0.27
%
0.17
%
NPAs to total assets
0.15
%
0.24
%
0.23
%
Classified assets to total assets
0.23
%
0.32
%
0.34
%
Allowance for Credit Losses
The following table presents activities in ACL for the periods
indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
ACL on loans
Balance at beginning of period
$
28,930
$
28,747
0.6
%
$
25,599
13.0
%
$
27,533
$
24,942
10.4
%
Impact of ASC 326 adoption
—
—
NM
—
NM
—
1,067
NM
Charge-offs
(395
)
(111
)
255.9
%
(13
)
2,938.5
%
(691
)
(132
)
423.5
%
Recoveries
49
101
(51.5
)%
12
308.3
%
298
1,159
(74.3
)%
Provision for credit losses on loans
2,044
193
959.1
%
1,935
5.6
%
3,488
497
601.8
%
Balance at end of period
$
30,628
$
28,930
5.9
%
$
27,533
11.2
%
$
30,628
$
27,533
11.2
%
Percentage to loans held-for-investment
at end of period
1.16
%
1.17
%
1.19
%
1.16
%
1.19
%
ACL on off-balance sheet credit
exposure
Balance at beginning of period
$
1,232
$
1,375
(10.4
)%
$
1,514
(18.6
)%
$
1,277
$
299
327.1
%
Impact of ASC 326 adoption
—
—
NM
—
NM
—
1,607
NM
Reversal for credit losses on off-balance
sheet credit exposure
(42
)
(143
)
(70.6
)%
(237
)
(82.3
)%
(87
)
(629
)
(86.2
)%
Balance at end of period
$
1,190
$
1,232
(3.4
)%
$
1,277
(6.8
)%
$
1,190
$
1,277
(6.8
)%
On January 1, 2023, the Company adopted the provisions of ASC
326 through the application of the modified retrospective
transition approach. The initial adjustment to the ACL reflected
the expected lifetime credit losses associated with the composition
of financial assets within the scope of ASC 326 as of January 1,
2023, as well as management’s current expectation of future
economic conditions. The Company recorded a net decrease of $1.9
million to the beginning balance of retained earnings as of January
1, 2023 for the cumulative effect adjustment, reflecting an initial
adjustment to the ACL on loans of $1.1 million and the ACL on
off-balance sheet credit exposures of $1.6 million, net of related
deferred tax assets arising from temporary differences of $788
thousand.
Investment Securities
Total investment securities were $146.3 million at December 31,
2024, a decrease of $1.3 million, or 0.9%, from $147.6 million at
September 30, 2024, but an increase of $3.0 million, or 2.1%, from
$143.3 million at December 31, 2023. The decrease for the current
quarter was primarily due to principal pay-downs of $5.9 million,
net premium amortization of $36 thousand, and a fair value decrease
of $4.1 million, partially offset by purchases of $8.7 million. The
increase for the current year was primarily due to purchases of
$23.5 million, partially offset by principal pay-downs of $19.8
million, net premium amortization of $159 thousand and a fair value
decrease of $541 thousand.
Deposits
The following table presents the Company’s deposit mix as of the
dates indicated:
12/31/2024
9/30/2024
12/31/2023
($ in thousands)
Amount
% to Total
Amount
% to Total
Amount
% to Total
Noninterest-bearing demand deposits
$
547,853
20.9
%
$
540,068
22.0
%
$
594,673
25.3
%
Interest-bearing deposits
Savings
5,765
0.2
%
5,718
0.2
%
6,846
0.3
%
NOW
13,761
0.5
%
15,873
0.6
%
16,825
0.7
%
Retail money market accounts
447,360
17.1
%
470,347
19.1
%
397,531
16.8
%
Brokered money market accounts
1
0.1
%
1
0.1
%
1
0.1
%
Retail time deposits of
$250,000 or less
493,644
18.9
%
492,430
20.0
%
456,293
19.4
%
More than $250,000
605,124
23.1
%
580,166
23.6
%
515,702
21.9
%
State and brokered time deposits
502,283
19.2
%
355,079
14.4
%
363,741
15.5
%
Total interest-bearing deposits
2,067,938
79.1
%
1,919,614
78.0
%
1,756,939
74.7
%
Total deposits
$
2,615,791
100.0
%
$
2,459,682
100.0
%
$
2,351,612
100.0
%
Estimated total deposits not covered by
deposit insurance
$
1,036,451
39.6
%
$
1,042,366
42.4
%
$
954,591
40.6
%
Total retail deposits were $2.11 billion at December 31, 2024,
an increase of $8.9 million, or 0.4%, from $2.10 billion at
September 30, 2024 and an increase of $125.6 million, or 6.3%, from
$1.99 billion at December 31, 2023.
The increase in retail time deposits for the current quarter was
primarily due to new accounts of $94.7 million, renewals of the
matured accounts of $338.2 million and balance increases of $15.7
million, partially offset by matured and closed accounts of $422.5
million. The increase for the current year was primarily due to new
accounts of $367.4 million, renewals of the matured accounts of
$898.6 million and balance increases of $44.1 million, partially
offset by matured and closed accounts of $1.18 billion.
Liquidity
The following table presents a summary of the Company’s
liquidity position as of the dates indicated:
($ in thousands)
12/31/2024
12/31/2023
% Change
Cash and cash equivalents
$
198,792
$
242,342
(18.0
)%
Cash and cash equivalents to total
assets
6.5
%
8.7
%
Available borrowing capacity
FHLB advances
$
722,439
$
602,976
19.8
%
Federal Reserve Discount Window
586,525
528,893
10.9
%
Overnight federal funds lines
50,000
65,000
(23.1
)%
Total
$
1,358,964
$
1,196,869
13.5
%
Total available borrowing capacity to
total assets
44.4
%
42.9
%
Shareholders’ Equity
Shareholders’ equity was $363.8 million at December 31, 2024, an
increase of $1.5 million, or 0.4%, from $362.3 million at September
30, 2024 and an increase of $14.9 million, or 4.3%, from $348.9
million at December 31, 2023. The increase for the current quarter
was primarily due to net income and proceeds from stock option
exercises of $143 thousand, partially offset by an increase in
accumulated other comprehensive loss of $2.9 million, cash
dividends declared on common stock of $2.6 million and preferred
stock dividends of $346 thousand. The increase for the current year
was primarily due to net income and proceeds from stock option
exercises of $353 thousand, partially offset by an increase in
accumulated other comprehensive loss of $395 thousand, cash
dividends declared on common stock of $10.3 million, preferred
stock dividends of $834 thousand, and repurchase of common stock of
$222 thousand.
Stock Repurchases
In 2023, the Company repurchased and retired 512,657 shares of
common stock at a weighted-average price of $17.22, totaling $8.8
million. In 2024, the Company repurchased and retired 14,947 shares
of common stock at a weighted-average price of $14.88, totaling
$222 thousand. As of December 31, 2024, the Company is authorized
to purchase 577,777 additional shares under its current stock
repurchase program, which expires on August 2, 2025.
Series C Preferred Stock
On May 24, 2022, the Company issued 69,141 shares of Senior
Non-Cumulative Perpetual Preferred Stock, Series C, liquidation
preference of $1,000 per share (“Series C Preferred Stock”) for the
capital investment of $69.1 million from the U.S. Treasury under
the Emergency Capital Investment Program (“ECIP”). The ECIP
investment is treated as tier 1 capital for regulatory capital
purposes.
The Series C Preferred Stock bore no dividend for the first 24
months following the investment date. Thereafter, the dividend rate
is determined quarterly based on the lending growth criteria listed
in the terms of the ECIP investment with an annual dividend rate of
up to 2%. After the tenth anniversary of the investment date, the
dividend rate will be fixed based on the average annual amount of
lending in years 2 through 10.
The Company began paying quarterly dividends on the Series C
Preferred Stock at an annualized dividend rate of 2% in the second
quarter of 2024. The dividends totaled $346 thousand and $834
thousand for the current quarter and year, respectively.
Capital Ratios
Historically, the Company has operated under the Federal
Reserve’s Small Bank Holding Company Policy Statement, which
exempts bank holding companies with total consolidated assets of
less than $3.0 billion from the Federal Reserve’s risk-based- and
leverage consolidated capital requirements. Because the Company’s
total consolidated assets exceeded $3.0 billion as December 31,
2024, the Company is now subject to the Federal Reserve’s
consolidated capital requirements. A bank holding company that
crosses the $3.0 billion total consolidated assets threshold as of
June 30 of a particular year is no longer permitted to file Federal
Reserve reports as a small holding company beginning the following
March. If the Company’s total assets exceed $3.0 billion as of June
30, 2025, the Company will not be eligible to file financial
reports with the Federal Reserve as a small bank holding company
beginning in March 2026. The following table presents capital
ratios for the Company and the Bank as of the dates indicated:
12/31/2024
9/30/2024
12/31/2023
Well Capitalized Minimum
Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted
assets)
11.44 %
11.92 %
12.23 %
N/A
Total capital (to risk-weighted
assets)
15.24 %
15.88 %
16.39 %
N/A
Tier 1 capital (to risk-weighted
assets)
14.04 %
14.68 %
15.16 %
N/A
Tier 1 capital (to average assets)
12.45 %
12.79 %
13.43 %
N/A
PCB Bank
Common tier 1 capital (to risk-weighted
assets)
13.72 %
14.33 %
14.85 %
6.5 %
Total capital (to risk-weighted
assets)
14.92 %
15.54 %
16.07 %
10.0 %
Tier 1 capital (to risk-weighted
assets)
13.72 %
14.33 %
14.85 %
8.0 %
Tier 1 capital (to average assets)
12.16 %
12.49 %
13.16 %
5.0 %
About PCB Bancorp
PCB Bancorp is the bank holding company for PCB Bank, a
California state chartered bank, offering a full suite of
commercial banking services to small to medium-sized businesses,
individuals and professionals, primarily in Southern California,
and predominantly in Korean-American and other minority
communities.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking statements. These
forward-looking statements represent plans, estimates, objectives,
goals, guidelines, expectations, intentions, projections and
statements of our beliefs concerning future events, business plans,
objectives, expected operating results and the assumptions upon
which those statements are based. Forward-looking statements
include without limitation, any statement that may predict,
forecast, indicate or imply future results, performance or
achievements, and are typically identified with words such as
“may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,”
“estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases
of similar meaning. We caution that the forward-looking statements
are based largely on our expectations and are subject to a number
of known and unknown risks and uncertainties that are subject to
change based on factors which are, in many instances, beyond our
control, including but not limited to the health of the national
and local economies including the impact on the Company and its
customers resulting from any adverse developments in real estate
markets and the level of, inflation and interest rates; the
Company’s ability to maintain and grow its deposit base; loan
demand and continued portfolio performance; the impact of adverse
developments at other banks, including bank failures, that impact
general sentiment regarding the stability and liquidity of banks
that could affect the Company’s liquidity, financial performance
and stock price; changes to valuations of the Company’s assets and
liabilities including the allowance for credit losses, earning
assets, and intangible assets; changes to the availability of
liquidity sources including borrowing lines and the ability to
pledge or sell certain assets; the Company's ability to attract and
retain skilled employees; customers' service expectations; cyber
security risks; the Company's ability to successfully deploy new
technology; acquisitions and branch and loan production office
expansions; operational risks including the ability to detect and
prevent errors and fraud; the effectiveness of the Company’s
enterprise risk management framework; litigation costs and
outcomes; changes in laws, rules, regulations, or interpretations
to which the Company is subject; the effects of severe weather
events, pandemics, wildfires and other disasters, other public
health crises, acts of war or terrorism, and other external events
on our business. These and other important factors are detailed in
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2023 and other filings the Company makes with the SEC,
which are available without charge at the SEC’s website
(http://www.sec.gov) and on the investor relations section of the
Company’s website at www.mypcbbank.com. Actual results, performance
or achievements could differ materially from those contemplated,
expressed, or implied by the forward-looking statements. Any
forward-looking statements presented herein are made only as of the
date of this press release, and the Company does not undertake any
obligation to update or revise any forward-looking statements to
reflect changes in assumptions, the occurrence of unanticipated
events, or otherwise, except as required by law.
PCB Bancorp and Subsidiary
Consolidated Balance Sheets
(Unaudited)
($ in thousands, except share and per
share data)
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
Assets
Cash and due from banks
$
27,100
$
29,981
(9.6
)%
$
26,518
2.2
%
Interest-bearing deposits in other
financial institutions
171,692
163,083
5.3
%
215,824
(20.4
)%
Total cash and cash equivalents
198,792
193,064
3.0
%
242,342
(18.0
)%
Securities available-for-sale, at fair
value
146,349
147,635
(0.9
)%
143,323
2.1
%
Loans held-for-sale
6,292
5,170
21.7
%
5,155
22.1
%
Loans held-for-investment
2,629,387
2,466,174
6.6
%
2,323,452
13.2
%
Allowance for credit losses on loans
(30,628
)
(28,930
)
5.9
%
(27,533
)
11.2
%
Net loans held-for-investment
2,598,759
2,437,244
6.6
%
2,295,919
13.2
%
Premises and equipment, net
8,280
8,414
(1.6
)%
5,999
38.0
%
Federal Home Loan Bank and other bank
stock
14,042
14,042
—
%
12,716
10.4
%
Other real estate owned, net
—
466
(100.0
)%
2,558
(100.0
)%
Bank-owned life insurance
31,766
31,520
0.8
%
30,817
3.1
%
Deferred tax assets, net
7,249
—
NM
—
NM
Servicing assets
5,837
5,902
(1.1
)%
6,666
(12.4
)%
Operating lease assets
17,254
17,932
(3.8
)%
18,913
(8.8
)%
Accrued interest receivable
10,466
9,896
5.8
%
9,468
10.5
%
Other assets
18,885
18,548
1.8
%
15,630
20.8
%
Total assets
$
3,063,971
$
2,889,833
6.0
%
$
2,789,506
9.8
%
Liabilities
Deposits
Noninterest-bearing demand
$
547,853
$
540,068
1.4
%
$
594,673
(7.9
)%
Savings, NOW and money market accounts
466,887
491,939
(5.1
)%
421,203
10.8
%
Time deposits of $250,000 or less
935,927
787,509
18.8
%
760,034
23.1
%
Time deposits of more than $250,000
665,124
640,166
3.9
%
575,702
15.5
%
Total deposits
2,615,791
2,459,682
6.3
%
2,351,612
11.2
%
Other short-term borrowings
15,000
—
NM
—
NM
Federal Home Loan Bank advances
—
—
—
%
39,000
(100.0
)%
Deferred tax liabilities, net
—
1,168
(100.0
)%
876
(100.0
)%
Operating lease liabilities
18,671
19,301
(3.3
)%
20,137
(7.3
)%
Accrued interest payable and other
liabilities
50,695
47,382
7.0
%
29,009
74.8
%
Total liabilities
2,700,157
2,527,533
6.8
%
2,440,634
10.6
%
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock
69,141
69,141
—
%
69,141
—
%
Common stock
143,195
142,926
0.2
%
142,563
0.4
%
Retained earnings
160,797
156,680
2.6
%
146,092
10.1
%
Accumulated other comprehensive loss,
net
(9,319
)
(6,447
)
44.5
%
(8,924
)
4.4
%
Total shareholders’ equity
363,814
362,300
0.4
%
348,872
4.3
%
Total liabilities and shareholders’
equity
$
3,063,971
$
2,889,833
6.0
%
$
2,789,506
9.8
%
Outstanding common shares
14,380,651
14,266,725
14,260,440
Book value per common share (1)
$
25.30
$
25.39
$
24.46
TCE per common share (2)
$
20.49
$
20.55
$
19.62
Total loan to total deposit ratio
100.76
%
100.47
%
99.02
%
Noninterest-bearing deposits to total
deposits
20.94
%
21.96
%
25.29
%
(1)
The ratios are calculated by
dividing total shareholders’ equity by the number of outstanding
common shares. The Company did not have any intangible equity
components for the presented periods.
(2)
Non-GAAP. See “Non-GAAP Measures”
for reconciliation of this measure to its most comparable GAAP
measure.
PCB Bancorp and Subsidiary
Consolidated Statements of Income
(Unaudited)
($ in thousands, except share and per
share data)
Three Months
Ended
Year Ended
12/31/2024
9/30/2024
% Change
12/31/2023
% Change
12/31/2024
12/31/2023
% Change
Interest and dividend income
Loans, including fees
$
42,309
$
42,115
0.5
%
$
37,189
13.8
%
$
164,301
$
136,029
20.8
%
Investment securities
1,388
1,384
0.3
%
1,271
9.2
%
5,328
4,679
13.9
%
Other interest-earning assets
2,622
2,499
4.9
%
2,491
5.3
%
11,188
10,469
6.9
%
Total interest income
46,319
45,998
0.7
%
40,951
13.1
%
180,817
151,177
19.6
%
Interest expense
Deposits
22,927
23,057
(0.6
)%
18,728
22.4
%
90,487
62,165
45.6
%
Other borrowings
228
222
2.7
%
299
(23.7
)%
1,713
508
237.2
%
Total interest expense
23,155
23,279
(0.5
)%
19,027
21.7
%
92,200
62,673
47.1
%
Net interest income
23,164
22,719
2.0
%
21,924
5.7
%
88,617
88,504
0.1
%
Provision (reversal) for credit losses
2,002
50
3,904.0
%
1,698
17.9
%
3,401
(132
)
NM
Net interest income after provision
(reversal) for credit losses
21,162
22,669
(6.6
)%
20,226
4.6
%
85,216
88,636
(3.9
)%
Noninterest income
Gain on sale of loans
1,161
750
54.8
%
803
44.6
%
3,752
3,570
5.1
%
Service charges and fees on deposits
404
399
1.3
%
391
3.3
%
1,545
1,475
4.7
%
Loan servicing income
861
786
9.5
%
751
14.6
%
3,365
3,330
1.1
%
Bank-owned life insurance income
246
239
2.9
%
202
21.8
%
949
753
26.0
%
Other income
371
446
(16.8
)%
356
4.2
%
1,482
1,555
(4.7
)%
Total noninterest income
3,043
2,620
16.1
%
2,503
21.6
%
11,093
10,683
3.8
%
Noninterest expense
Salaries and employee benefits
8,417
8,801
(4.4
)%
8,397
0.2
%
35,661
34,572
3.1
%
Occupancy and equipment
2,198
2,261
(2.8
)%
2,145
2.5
%
9,117
7,924
15.1
%
Professional fees
752
599
25.5
%
898
(16.3
)%
3,408
3,087
10.4
%
Marketing and business promotion
582
667
(12.7
)%
772
(24.6
)%
1,886
2,327
(19.0
)%
Data processing
205
397
(48.4
)%
393
(47.8
)%
1,499
1,552
(3.4
)%
Director fees and expenses
227
226
0.4
%
207
9.7
%
906
756
19.8
%
Regulatory assessments
322
309
4.2
%
285
13.0
%
1,256
1,103
13.9
%
Other expense
1,191
1,342
(11.3
)%
1,372
(13.2
)%
6,290
4,736
32.8
%
Total noninterest expense
13,894
14,602
(4.8
)%
14,469
(4.0
)%
60,023
56,057
7.1
%
Income before income taxes
10,311
10,687
(3.5
)%
8,260
24.8
%
36,286
43,262
(16.1
)%
Income tax expense
3,281
2,873
14.2
%
2,352
39.5
%
10,476
12,557
(16.6
)%
Net income
7,030
7,814
(10.0
)%
5,908
19.0
%
25,810
30,705
(15.9
)%
Preferred stock dividends
346
346
—
%
—
NM
834
—
NM
Net income available to common
shareholders
$
6,684
$
7,468
(10.5
)%
$
5,908
13.1
%
$
24,976
$
30,705
(18.7
)%
Earnings per common share
Basic
$
0.47
$
0.52
$
0.41
$
1.75
$
2.14
Diluted
$
0.46
$
0.52
$
0.41
$
1.74
$
2.12
Average common shares
Basic
14,254,584
14,241,014
14,223,831
14,242,057
14,301,691
Diluted
14,406,756
14,356,384
14,316,581
14,342,361
14,417,938
Dividend paid per common share
$
0.18
$
0.18
$
0.18
$
0.72
$
0.69
Return on average assets (1)
0.94
%
1.08
%
0.89
%
0.90
%
1.20
%
Return on average shareholders’ equity
(1)
7.69
%
8.70
%
6.82
%
7.26
%
9.02
%
Return on average TCE (1), (2)
9.02
%
10.31
%
8.54
%
8.72
%
11.31
%
Efficiency ratio (3)
53.02
%
57.63
%
59.23
%
60.20
%
56.52
%
(1)
Ratios are presented on an
annualized basis.
(2)
Non-GAAP. See “Non-GAAP Measures”
for reconciliation of this measure to its most comparable GAAP
measure.
(3)
The ratios are calculated by
dividing noninterest expense by the sum of net interest income and
noninterest income.
PCB Bancorp and Subsidiary
Average Balance, Average Yield, and
Average Rate (Unaudited)
($ in thousands)
Three Months Ended
12/31/2024
9/30/2024
12/31/2023
Average Balance
Interest
Income/Expense
Avg. Yield/Rate(6)
Average Balance
Interest
Income/Expense
Avg. Yield/Rate(6)
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$
2,538,310
$
42,309
6.63
%
$
2,456,015
$
42,115
6.82
%
$
2,242,457
$
37,189
6.58
%
Mortgage-backed securities
113,231
1,030
3.62
%
111,350
1,000
3.57
%
100,500
855
3.38
%
Collateralized mortgage obligation
21,819
228
4.16
%
22,661
244
4.28
%
23,970
259
4.29
%
SBA loan pool securities
6,253
62
3.94
%
6,571
69
4.18
%
7,453
81
4.31
%
Municipal bonds (2)
2,440
21
3.42
%
2,698
24
3.54
%
3,110
29
3.70
%
Corporate bonds
4,200
47
4.45
%
4,248
47
4.40
%
4,194
47
4.45
%
Other interest-earning assets
207,234
2,622
5.03
%
175,711
2,499
5.66
%
175,336
2,491
5.64
%
Total interest-earning assets
2,893,487
46,319
6.37
%
2,779,254
45,998
6.58
%
2,557,020
40,951
6.35
%
Noninterest-earning assets
Cash and due from banks
23,639
24,098
23,034
ACL on loans
(28,833
)
(28,797
)
(25,663
)
Other assets
92,348
92,152
87,759
Total noninterest-earning assets
87,154
87,453
85,130
Total assets
$
2,980,641
$
2,866,707
$
2,642,150
Liabilities and Shareholders’
Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$
479,238
4,479
3.72
%
$
496,158
5,129
4.11
%
$
450,408
4,418
3.89
%
Savings
5,952
4
0.27
%
6,204
4
0.26
%
6,947
4
0.23
%
Time deposits
1,501,711
18,444
4.89
%
1,390,644
17,924
5.13
%
1,192,777
14,306
4.76
%
Total interest-bearing deposits
1,986,901
22,927
4.59
%
1,893,006
23,057
4.85
%
1,650,132
18,728
4.50
%
Other borrowings
17,946
228
5.05
%
15,848
222
5.57
%
21,000
299
5.65
%
Total interest-bearing liabilities
2,004,847
23,155
4.59
%
1,908,854
23,279
4.85
%
1,671,132
19,027
4.52
%
Noninterest-bearing liabilities
Noninterest-bearing demand
543,971
534,761
577,894
Other liabilities
67,995
65,716
49,389
Total noninterest-bearing liabilities
611,966
600,477
627,283
Total liabilities
2,616,813
2,509,331
2,298,415
Total shareholders’ equity
363,828
357,376
343,735
Total liabilities and shareholders’
equity
$
2,980,641
$
2,866,707
$
2,642,150
Net interest income
$
23,164
$
22,719
$
21,924
Net interest spread (3)
1.78
%
1.73
%
1.83
%
Net interest margin (4)
3.18
%
3.25
%
3.40
%
Total deposits
$
2,530,872
$
22,927
3.60
%
$
2,427,767
$
23,057
3.78
%
$
2,228,026
$
18,728
3.33
%
Total funding (5)
$
2,548,818
$
23,155
3.61
%
$
2,443,615
$
23,279
3.79
%
$
2,249,026
$
19,027
3.36
%
(1)
Total loans include both loans
held-for-sale and loans held-for-investment.
(2)
The yield on municipal bonds has
not been computed on a tax-equivalent basis.
(3)
Net interest spread is calculated
by subtracting average rate on interest-bearing liabilities from
average yield on interest-earning assets.
(4)
Net interest margin is calculated
by dividing annualized net interest income by average
interest-earning assets.
(5)
Total funding is the sum of
interest-bearing liabilities and noninterest-bearing deposits. The
cost of total funding is calculated as annualized total interest
expense divided by average total funding.
(6)
Annualized.
PCB Bancorp and Subsidiary
Average Balance, Average Yield, and
Average Rate (Unaudited)
($ in thousands)
Year Ended
12/31/2024
12/31/2023
Average Balance
Interest
Income/Expense
Avg. Yield/Rate
Average Balance
Interest
Income/Expense
Avg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)
$
2,445,080
$
164,301
6.72
%
$
2,137,851
$
136,029
6.36
%
Mortgage-backed securities
107,768
3,780
3.51
%
98,903
3,001
3.03
%
Collateralized mortgage obligation
22,806
975
4.28
%
25,466
1,039
4.08
%
SBA loan pool securities
6,756
283
4.19
%
8,166
325
3.98
%
Municipal bonds (2)
2,917
102
3.50
%
3,788
126
3.33
%
Corporate bonds
4,208
188
4.47
%
4,273
188
4.40
%
Other interest-earning assets
203,279
11,188
5.50
%
198,809
10,469
5.27
%
Total interest-earning assets
2,792,814
180,817
6.47
%
2,477,256
151,177
6.10
%
Noninterest-earning assets
Cash and due from banks
23,044
21,565
ACL on loans
(28,397
)
(25,495
)
Other assets
90,425
76,433
Total noninterest-earning assets
85,072
72,503
Total assets
$
2,877,886
$
2,549,759
Liabilities and Shareholders’
Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$
475,754
19,149
4.02
%
$
470,750
16,190
3.44
%
Savings
6,312
16
0.25
%
7,499
18
0.24
%
Time deposits
1,410,878
71,322
5.06
%
1,059,985
45,957
4.34
%
Total interest-bearing deposits
1,892,944
90,487
4.78
%
1,538,234
62,165
4.04
%
Other borrowings
31,033
1,713
5.52
%
9,192
508
5.53
%
Total interest-bearing liabilities
1,923,977
92,200
4.79
%
1,547,426
62,673
4.05
%
Noninterest-bearing liabilities
Noninterest-bearing demand
539,263
629,774
Other liabilities
59,026
32,051
Total noninterest-bearing liabilities
598,289
661,825
Total liabilities
2,522,266
2,209,251
Total shareholders’ equity
355,620
340,508
Total liabilities and shareholders’
equity
$
2,877,886
$
2,549,759
Net interest income
$
88,617
$
88,504
Net interest spread (3)
1.68
%
2.05
%
Net interest margin (4)
3.17
%
3.57
%
Total deposits
$
2,432,207
$
90,487
3.72
%
$
2,168,008
$
62,165
2.87
%
Total funding (5)
$
2,463,240
$
92,200
3.74
%
$
2,177,200
$
62,673
2.88
%
(1)
Total loans include both loans
held-for-sale and loans held-for-investment.
(2)
The yield on municipal bonds has
not been computed on a tax-equivalent basis.
(3)
Net interest spread is calculated
by subtracting average rate on interest-bearing liabilities from
average yield on interest-earning assets.
(4)
Net interest margin is calculated
by dividing annualized net interest income by average
interest-earning assets.
(5)
Total funding is the sum of
interest-bearing liabilities and noninterest-bearing deposits. The
cost of total funding is calculated as annualized total interest
expense divided by average total funding.
PCB Bancorp and Subsidiary Non-GAAP Measures ($ in
thousands)
Return on average tangible common equity, tangible common
equity per common share and tangible common equity to total assets
ratios
The Company's TCE is calculated by subtracting preferred stock
from shareholders’ equity. The Company does not have any intangible
assets for the presented periods. Return on average TCE, TCE per
common share, and TCE to total assets constitute supplemental
financial information determined by methods other than in
accordance with GAAP. These non-GAAP measures are used by
management in its analysis of the Company's performance. These
non-GAAP measures should not be viewed as substitutes for results
determined in accordance with GAAP, nor are they necessarily
comparable to non-GAAP measures that may be presented by other
companies. The following tables provide reconciliations of the
non-GAAP measures with financial measures defined by GAAP.
($ in thousands)
Three Months
Ended
Year Ended
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Average total shareholders' equity
(a)
$
363,828
$
357,376
$
343,735
$
355,620
$
340,508
Less: average preferred stock
(b)
69,141
69,141
69,141
69,141
69,141
Average TCE
(c)=(a)-(b)
$
294,687
$
288,235
$
274,594
$
286,479
$
271,367
Net income
(d)
$
7,030
$
7,814
$
5,908
$
25,810
$
30,705
Return on average shareholder's equity
(1)
(d)/(a)
7.69
%
8.70
%
6.82
%
7.26
%
9.02
%
Net income available to common
shareholders
(e)
$
6,684
$
7,468
$
5,908
$
24,976
$
30,705
Return on average TCE (1)
(e)/(c)
9.02
%
10.31
%
8.54
%
8.72
%
11.31
%
(1) Annualized.
($ in thousands, except per share
data)
12/31/2024
9/30/2024
12/31/2023
Total shareholders' equity
(a)
$
363,814
$
362,300
$
348,872
Less: preferred stock
(b)
69,141
69,141
69,141
TCE
(c)=(a)-(b)
$
294,673
$
293,159
$
279,731
Outstanding common shares
(d)
14,380,651
14,266,725
14,260,440
Book value per common share
(a)/(d)
$
25.30
$
25.39
$
24.46
TCE per common share
(c)/(d)
$
20.49
$
20.55
$
19.62
Total assets
(e)
$
3,063,971
$
2,889,833
$
2,789,506
Total shareholders' equity to total
assets
(a)/(e)
11.87
%
12.54
%
12.51
%
TCE to total assets
(c)/(e)
9.62
%
10.14
%
10.03
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250130214899/en/
Timothy Chang Executive Vice President & Chief Financial
Officer 213-210-2000
PCB Bancorp (NASDAQ:PCB)
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From Dec 2024 to Jan 2025
PCB Bancorp (NASDAQ:PCB)
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