PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company
of PCB Bank (the “Bank”), today reported net income of $6.3
million, or $0.43 per diluted common share, for the second quarter
of 2024, compared with $4.7 million, or $0.33 per diluted common
share, for the previous quarter and $7.5 million, or $0.52 per
diluted common share, for the year-ago quarter.
Q2 2024 Highlights
- Net income totaled $6.3 million, or $0.43 per diluted common
share;
- Recorded a provision for credit losses of $259 thousand for the
current quarter compared with $1.1 million for the previous quarter
and $197 thousand for the year-ago quarter;
- Allowance for Credit Losses (“ACL”) on loans to loans
held-for-investment ratio was 1.17% at June 30, 2024 compared with
1.18% at March 31, 2024, 1.19% at December 31, 2023 and 1.17% at
June 30, 2023;
- Net interest income was $21.7 million for the current quarter
compared with $21.0 million for the previous quarter and $21.7
million for the year-ago quarter. Net interest margin was 3.16% for
the current quarter compared with 3.10% for the previous quarter
and 3.55% for the year-ago quarter;
- Gain on sale of loans was $763 thousand for the current quarter
compared with $1.1 million for the previous quarter and $769
thousand for the year-ago quarter;
- Total assets were $2.85 billion at June 30, 2024, a decrease of
$1.3 million, or 0.1%, from $2.85 billion at March 31, 2024, but an
increase of $63.5 million, or 2.3%, from $2.79 billion at December
31, 2023 and an increase of $296.6 million, or 11.6%, from $2.56
billion at June 30, 2023;
- Loans held-for-investment were $2.45 billion at June 30, 2024,
an increase of $51.1 million, or 2.1%, from $2.40 billion at March
31, 2024, an increase of $125.6 million, or 5.4% from $2.32 billion
at December 31, 2023, and an increase of $326.6 million, or 15.4%,
from $2.12 billion at June 30, 2023;
- Total deposits were $2.41 billion at June 30, 2024, an increase
of $3.4 million, or 0.1%, from $2.40 billion at March 31, 2024, an
increase of $54.6 million, or 2.3%, from $2.35 billion at December
31, 2023, and an increase of $218.0 million, or 10.0%, from $2.19
billion at June 30, 2023; and
- The Company paid the initial quarterly preferred stock dividend
at an annualized dividend rate of 2% during the current quarter.
Preferred stock dividend for the current quarter was $142
thousand.
“We are pleased to share our strong second quarter results led
by solid loan growth and stabilization of core deposit balance
which gave rise to an improvement in our net interest margin,” said
Henry Kim, President and Chief Executive Officer. Our commitment to
focus on relationship banking and strategic expansions, while
maintaining our conservative credit culture, has resulted in
continued positive results.”
“During the second quarter our loan balance increased 2.1% to
$2.5 billion, deposits increased 0.1% to $2.4 billion, and we
slightly reduced the brokered deposits. We continued to maintain
solid ACL to loan ratio of 1.17%, and non-performing assets and
classified assets to total assets ratios of 0.26% and 0.34%,
respectively. Even with the challenging high interest rate
environment and its effect on our funding costs, our net interest
margin expanded during the quarter. We believe our funding costs
are currently near the peak and our net interest margin is showing
positive sign of coming out from the bottom.”
Mr. Kim added, “As we look ahead into the second half of the
year, our expanding bi-coastal branch network is well positioned to
deliver continued strong balance sheet growth with solid financial
results and sound asset quality that is further strengthened by our
robust capital levels.”
Financial Highlights
(Unaudited)
($ in thousands, except per share
data)
Three Months
Ended
Six Months Ended
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
Net income
$
6,281
$
4,685
34.1
%
$
7,477
(16.0
)%
$
10,966
$
17,774
(38.3
)%
Net income available to common
shareholders
$
6,139
$
4,685
31.0
%
$
7,477
(17.9
)%
$
10,824
$
17,774
(39.1
)%
Diluted earnings per common share
$
0.43
$
0.33
30.3
%
$
0.52
(17.3
)%
$
0.75
$
1.22
(38.5
)%
Net interest income
$
21,735
$
20,999
3.5
%
$
21,717
0.1
%
$
42,734
$
44,131
(3.2
)%
Provision (reversal) for credit losses
259
1,090
(76.2
)%
197
31.5
%
1,349
(2,581
)
NM
Noninterest income
2,485
2,945
(15.6
)%
2,657
(6.5
)%
5,430
5,678
(4.4
)%
Noninterest expense
15,175
16,352
(7.2
)%
13,627
11.4
%
31,527
27,381
15.1
%
Return on average assets (1)
0.89
%
0.67
%
1.19
%
0.78
%
1.44
%
Return on average shareholders’ equity
(1)
7.19
%
5.39
%
8.82
%
6.29
%
10.62
%
Return on average tangible common equity
(“TCE”) (1),(2)
8.96
%
6.72
%
11.08
%
7.84
%
13.35
%
Net interest margin (1)
3.16
%
3.10
%
3.55
%
3.13
%
3.67
%
Efficiency ratio (3)
62.65
%
68.29
%
55.91
%
65.46
%
54.97
%
($ in thousands, except per share
data)
6/30/2024
3/31/2024
% Change
12/31/2023
% Change
6/30/2023
% Change
Total assets
$
2,852,964
$
2,854,292
(0.1
)%
$
2,789,506
2.3
%
$
2,556,345
11.6
%
Net loans held-for-investment
2,420,327
2,369,632
2.1
%
2,295,919
5.4
%
2,097,560
15.4
%
Total deposits
2,406,254
2,402,840
0.1
%
2,351,612
2.3
%
2,188,232
10.0
%
Book value per common share (4)
$
24.80
$
24.54
$
24.46
$
23.77
TCE per common share (2)
$
19.95
$
19.69
$
19.62
$
18.94
Tier 1 leverage ratio (consolidated)
12.66
%
12.73
%
13.43
%
13.84
%
Total shareholders’ equity to total
assets
12.39
%
12.26
%
12.51
%
13.32
%
TCE to total assets (2), (5)
9.97
%
9.84
%
10.03
%
10.61
%
(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
Six Months Ended
($ in thousands)
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
Interest income/expense on
Loans
$
40,626
$
39,251
3.5
%
$
32,960
23.3
%
$
79,877
$
64,189
24.4
%
Investment securities
1,310
1,246
5.1
%
1,136
15.3
%
2,556
2,238
14.2
%
Other interest-earning assets
3,009
3,058
(1.6
)%
2,742
9.7
%
6,067
4,947
22.6
%
Total interest-earning assets
44,945
43,555
3.2
%
36,838
22.0
%
88,500
71,374
24.0
%
Interest-bearing deposits
22,536
21,967
2.6
%
15,121
49.0
%
44,503
27,034
64.6
%
Borrowings
674
589
14.4
%
—
—
%
1,263
209
504.3
%
Total interest-bearing liabilities
23,210
22,556
2.9
%
15,121
53.5
%
45,766
27,243
68.0
%
Net interest income
$
21,735
$
20,999
3.5
%
$
21,717
0.1
%
$
42,734
$
44,131
(3.2
)%
Average balance of
Loans
$
2,414,824
$
2,370,027
1.9
%
$
2,097,489
15.1
%
$
2,392,426
$
2,085,021
14.7
%
Investment securities
141,816
140,459
1.0
%
142,136
(0.2
)%
141,137
142,107
(0.7
)%
Other interest-earning assets
213,428
217,002
(1.6
)%
213,883
(0.2
)%
215,215
200,420
7.4
%
Total interest-earning assets
$
2,770,068
$
2,727,488
1.6
%
$
2,453,508
12.9
%
$
2,748,778
$
2,427,548
13.2
%
Interest-bearing deposits
$
1,863,623
$
1,827,209
2.0
%
$
1,527,522
22.0
%
$
1,845,417
$
1,469,490
25.6
%
Borrowings
48,462
42,187
14.9
%
—
—
%
45,324
7,862
476.5
%
Total interest-bearing liabilities
$
1,912,085
$
1,869,396
2.3
%
$
1,527,522
25.2
%
$
1,890,741
$
1,477,352
28.0
%
Total funding (1)
$
2,447,593
$
2,412,207
1.5
%
$
2,155,649
13.5
%
$
2,429,900
$
2,135,039
13.8
%
Annualized average yield/cost
of
Loans
6.77
%
6.66
%
6.30
%
6.71
%
6.21
%
Investment securities
3.72
%
3.57
%
3.21
%
3.64
%
3.18
%
Other interest-earning assets
5.67
%
5.67
%
5.14
%
5.67
%
4.98
%
Total interest-earning assets
6.53
%
6.42
%
6.02
%
6.47
%
5.93
%
Interest-bearing deposits
4.86
%
4.84
%
3.97
%
4.85
%
3.71
%
Borrowings
5.59
%
5.62
%
—
%
5.60
%
5.36
%
Total interest-bearing liabilities
4.88
%
4.85
%
3.97
%
4.87
%
3.72
%
Net interest margin
3.16
%
3.10
%
3.55
%
3.13
%
3.67
%
Cost of total funding (1)
3.81
%
3.76
%
2.81
%
3.79
%
2.57
%
Supplementary information
Net accretion of discount on loans
$
791
$
573
38.0
%
$
751
5.3
%
$
1,364
$
1,422
(4.1
)%
Net amortization of deferred loan fees
$
339
$
334
1.5
%
$
247
37.2
%
$
673
$
422
59.5
%
(1)
Total funding is the sum of
interest-bearing liabilities and noninterest-bearing deposits. The
cost of total funding is calculated as annualized total interest
expense divided by average total funding.
Loans. The increase in average
yield for the current quarter was primarily due to increases in
overall interest rates on loans, accretion of discount on loans and
prepayment fees. The increase for the current year-to-date period
was primarily due to increases in overall interest rates on loans
and net amortization of deferred loan fees.
The following table presents a composition of total loans by
interest rate type accompanied with the weighted-average
contractual rates as of the dates indicated:
6/30/2024
3/31/2024
12/31/2023
6/30/2023
% to Total Loans
Weighted-Average Contractual
Rate
% to Total Loans
Weighted-Average Contractual
Rate
% to Total Loans
Weighted-Average Contractual
Rate
% to Total Loans
Weighted-Average Contractual
Rate
Fixed rate loans
18.8
%
5.04
%
20.0
%
4.92
%
21.2
%
4.86
%
22.6
%
4.64
%
Hybrid rate loans
37.2
%
5.04
%
38.6
%
5.01
%
39.0
%
4.93
%
39.2
%
4.62
%
Variable rate loans
44.0
%
8.45
%
41.4
%
8.46
%
39.8
%
8.51
%
38.2
%
8.39
%
Investment Securities. The
increases in average yield for the current quarter and year-to-date
periods were primarily due to higher yield on newly purchased
investment securities.
Other Interest-Earning Assets. The
increase in average yield for the current quarter and year-to-date
period compared with the same periods of 2023 were primarily due to
increases in interest rate on cash held at the Federal Reserve Bank
and dividends received on Federal Home Loan Bank stock.
Interest-Bearing Deposits. The
increase in average cost for the current quarter and year-to-date
period were primarily due to an increase in market rates.
Provision (Reversal) for Credit Losses
The following table presents a composition of provision
(reversal) for credit losses for the periods indicated:
Three Months
Ended
Six Months Ended
($ in thousands)
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
Provision (reversal) for credit losses on
loans
$
329
$
922
(64.3
)%
$
157
109.6
%
$
1,251
$
(2,260
)
NM
Provision (reversal) for credit losses on
off-balance sheet credit exposure
(70
)
168
NM
40
NM
98
(321
)
NM
Total provision (reversal) for credit
losses
$
259
$
1,090
(76.2
)%
$
197
31.5
%
$
1,349
$
(2,581
)
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
Six Months Ended
($ in thousands)
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
Gain on sale of loans
$
763
$
1,078
(29.2
)%
$
769
(0.8
)%
$
1,841
$
2,078
(11.4
)%
Service charges and fees on deposits
364
378
(3.7
)%
369
(1.4
)%
742
713
4.1
%
Loan servicing income
799
919
(13.1
)%
868
(7.9
)%
1,718
1,728
(0.6
)%
Bank-owned life insurance income
236
228
3.5
%
184
28.3
%
464
364
27.5
%
Other income
323
342
(5.6
)%
467
(30.8
)%
665
795
(16.4
)%
Total noninterest income
$
2,485
$
2,945
(15.6
)%
$
2,657
(6.5
)%
$
5,430
$
5,678
(4.4
)%
Gain on Sale of Loans. The
following table presents information on gain on sale of loans for
the periods indicated:
Three Months
Ended
Six Months Ended
($ in thousands)
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
Gain on sale of SBA loans
Sold loan balance
$
13,619
$
19,414
(29.8
)%
$
16,762
(18.8
)%
$
33,033
$
43,895
(24.7
)%
Premium received
1,056
1,596
(33.8
)%
1,209
(12.7
)%
2,652
3,250
(18.4
)%
Gain recognized
763
1,078
(29.2
)%
769
(0.8
)%
1,841
2,078
(11.4
)%
Loan Servicing Income. The
following table presents information on loan servicing income for
the periods indicated:
Three Months
Ended
Six Months Ended
($ in thousands)
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
Loan servicing income
Servicing income received
$
1,318
$
1,293
1.9
%
$
1,317
0.1
%
$
2,611
$
2,601
0.4
%
Servicing assets amortization
(519
)
(374
)
38.8
%
(449
)
15.6
%
(893
)
(873
)
2.3
%
Loan servicing income
$
799
$
919
(13.1
)%
$
868
(7.9
)%
$
1,718
$
1,728
(0.6
)%
Underlying loans at end of period
$
527,458
$
540,039
(2.3
)%
$
539,160
(2.2
)%
$
527,458
$
539,160
(2.2
)%
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
Six Months Ended
($ in thousands)
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
Salaries and employee benefits
$
9,225
$
9,218
0.1
%
$
8,675
6.3
%
$
18,443
$
17,603
4.8
%
Occupancy and equipment
2,300
2,358
(2.5
)%
1,919
19.9
%
4,658
3,815
22.1
%
Professional fees
973
1,084
(10.2
)%
772
26.0
%
2,057
1,504
36.8
%
Marketing and business promotion
318
319
(0.3
)%
203
56.7
%
637
575
10.8
%
Data processing
495
402
23.1
%
380
30.3
%
897
792
13.3
%
Director fees and expenses
221
232
(4.7
)%
217
1.8
%
453
397
14.1
%
Regulatory assessments
327
298
9.7
%
382
(14.4
)%
625
537
16.4
%
Other expense
1,316
2,441
(46.1
)%
1,079
22.0
%
3,757
2,158
74.1
%
Total noninterest expense
$
15,175
$
16,352
(7.2
)%
$
13,627
11.4
%
$
31,527
$
27,381
15.1
%
Salaries and Employee Benefits. The
increase for the current quarter compared with the year-ago quarter
was primarily due to increases in salaries, and bonus and vacation
accruals. The increase for the current year-to-date period was
primarily due to increases in salaries and incentives tied to sales
of SBA loans originated at loan production offices, partially
offset by decreases in bonus and vacation accruals. The number of
full-time equivalent employees was 265, 272 and 272 as of June 30,
2024, March 31, 2024 and June 30, 2023, respectively.
Occupancy and Equipment. The
increases for the current quarter and year-to-date period were
primarily due to an expansion of headquarters location in the
second half of 2023 and a relocation of a regional office and two
branches into one location in Orange County, California.
Professional Fees. The decrease for
the current quarter compared with the previous quarter was
primarily due to a decrease in professional fees related to a core
system conversion completed in April 2024. The increase for the
current year-to-date period was primarily due to the
aforementioned.
Other Expense. The decrease for the
current quarter compared with the previous quarter was primarily
due to a termination charge for the legacy core system of $508
thousand and an expense of $815 thousand for a reimbursement for an
SBA loan guarantee previously paid by the SBA on a loan originated
in 2014 that subsequently defaulted and was ultimately determined
to be ineligible for the SBA guaranty during the previous quarter.
The Company has retained a law firm specializing in SBA recovery
demands to seek that SBA reconsider the evidence and allow the
Company to recoup all or part of the reimbursement. The increase
for the current year-to-date period was primarily due to the two
aforementioned matters.
Balance Sheet
(Unaudited)
Total assets were $2.85 billion at June 30, 2024, a decrease of
$1.3 million, or 0.1%, from $2.85 billion at March 31, 2024, an
increase of $63.5 million, or 2.3%, from $2.79 billion at December
31, 2023, and an increase of $296.6 million, or 11.6%, from $2.56
billion at June 30, 2023. The increases for the current quarter and
year-to-date period were primarily due to increases in loans
held-for-investment and securities available-for-sale, partially
offset by a decrease in cash and cash equivalents.
Loans
The following table presents a composition of total loans
(includes both loans held-for-sale and loans held-for-investment)
as of the dates indicated:
($ in thousands)
6/30/2024
3/31/2024
% Change
12/31/2023
% Change
6/30/2023
% Change
Commercial real estate:
Commercial property
$
852,677
$
874,300
(2.5
)%
$
855,270
(0.3
)%
$
793,946
7.4
%
Business property
572,643
578,903
(1.1
)%
558,772
2.5
%
533,592
7.3
%
Multifamily
177,657
131,742
34.9
%
132,500
34.1
%
124,029
43.2
%
Construction
28,316
29,212
(3.1
)%
24,843
14.0
%
16,942
67.1
%
Total commercial real estate
1,631,293
1,614,157
1.1
%
1,571,385
3.8
%
1,468,509
11.1
%
Commercial and industrial
417,333
371,934
12.2
%
342,002
22.0
%
272,278
53.3
%
Consumer:
Residential mortgage
384,905
389,888
(1.3
)%
389,420
(1.2
)%
359,655
7.0
%
Other consumer
15,543
21,985
(29.3
)%
20,645
(24.7
)%
21,985
(29.3
)%
Total consumer
400,448
411,873
(2.8
)%
410,065
(2.3
)%
381,640
4.9
%
Loans held-for-investment
2,449,074
2,397,964
2.1
%
2,323,452
5.4
%
2,122,427
15.4
%
Loans held-for-sale
2,959
3,256
(9.1
)%
5,155
(42.6
)%
13,065
(77.4
)%
Total loans
$
2,452,033
$
2,401,220
2.1
%
$
2,328,607
5.3
%
$
2,135,492
14.8
%
SBA loans included in:
Loans held-for-investment
$
144,440
$
148,316
(2.6
)%
$
145,603
(0.8
)%
$
147,357
(2.0
)%
Loans held-for-sale
$
2,959
$
3,256
(9.1
)%
$
5,155
(42.6
)%
$
13,065
(77.4
)%
The increase in loans held-for-investment for the current
quarter was primarily due to new funding and advances on lines of
credit of $597.8 million, partially offset by pay-downs and
pay-offs of $546.7 million. The increase for the current
year-to-date period was primarily due to new funding and advances
on lines of credit of $1.07 billion, partially offset by pay-downs
and pay-offs of $940.6 million.
The decrease in loans held-for-sale for the current quarter was
primarily due to sales of $13.6 million, and pay-downs and pay-offs
of $40 thousand, partially offset by new funding of $13.4 million.
The decrease for the current year-to-date period was primarily due
to sales of $33.0 million, and pay-downs and pay-offs of $1.6
million, partially offset by new funding of $32.4 million
The following table presents a composition of off-balance sheet
credit exposure as of the dates indicated:
($ in thousands)
6/30/2024
3/31/2024
% Change
12/31/2023
% Change
6/30/2023
% Change
Commercial property
$
6,309
$
8,687
(27.4
)%
$
11,634
(45.8
)%
$
11,118
(43.3
)%
Business property
11,607
10,196
13.8
%
9,899
17.3
%
9,487
22.3
%
Multifamily
1,800
1,800
—
%
1,800
—
%
4,500
(60.0
)%
Construction
22,030
22,895
(3.8
)%
23,739
(7.2
)%
30,865
(28.6
)%
Commercial and industrial
336,121
384,034
(12.5
)%
351,025
(4.2
)%
279,584
20.2
%
Other consumer
5,192
992
423.4
%
3,421
51.8
%
445
1,066.7
%
Total commitments to extend credit
383,059
428,604
(10.6
)%
401,518
(4.6
)%
335,999
14.0
%
Letters of credit
6,808
6,558
3.8
%
6,583
3.4
%
6,027
13.0
%
Total off-balance sheet credit
exposure
$
389,867
$
435,162
(10.4
)%
$
408,101
(4.5
)%
$
342,026
14.0
%
Credit Quality
The following table presents a summary of non-performing loans
and assets, and classified assets as of the dates indicated:
($ in thousands)
6/30/2024
3/31/2024
% Change
12/31/2023
% Change
6/30/2023
% Change
Nonaccrual loans
Commercial real estate:
Commercial property
$
1,804
$
932
93.6
%
$
958
88.3
%
$
699
158.1
%
Business property
2,440
3,455
(29.4
)%
2,865
(14.8
)%
3,007
(18.9
)%
Multifamily
2,038
—
NM
—
NM
—
NM
Total commercial real estate
6,282
4,387
43.2
%
3,823
64.3
%
3,706
69.5
%
Commercial and industrial
112
111
0.9
%
68
64.7
%
88
27.3
%
Consumer:
Residential mortgage
1,100
436
152.3
%
—
NM
—
NM
Other consumer
6
6
—
%
25
(76.0
)%
51
(88.2
)%
Total consumer
1,106
442
150.2
%
25
4,324.0
%
51
2,068.6
%
Total nonaccrual loans
held-for-investment
7,500
4,940
51.8
%
3,916
91.5
%
3,845
95.1
%
Loans past due 90 days or more and still
accruing
—
—
—
%
—
—
%
—
—
%
Non-performing loans (“NPLs”)
7,500
4,940
51.8
%
3,916
91.5
%
3,845
95.1
%
Other real estate owned (“OREO”)
—
—
—
%
2,558
(100.0
)%
—
—
%
Non-performing assets (“NPAs”)
$
7,500
$
4,940
51.8
%
$
6,474
15.8
%
$
3,845
95.1
%
Loans past due and still accruing
Past due 30 to 59 days
$
2,245
$
3,412
(34.2
)%
$
1,394
61.0
%
$
428
424.5
%
Past due 60 to 89 days
41
1,103
(96.3
)%
34
20.6
%
—
NM
Past due 90 days or more
—
—
—
%
—
—
%
—
—
%
Total loans past due and still
accruing
$
2,286
$
4,515
(49.4
)%
1,428
60.1
%
$
428
434.1
%
Special mention loans
$
5,080
$
1,101
361.4
%
$
5,156
(1.5
)%
$
5,406
(6.0
)%
Classified assets
Classified loans held-for-investment
$
9,752
$
7,771
25.5
%
$
7,000
39.3
%
$
6,901
41.3
%
OREO
—
—
—
%
2,558
(100.0
)%
—
—
%
Classified assets
$
9,752
$
7,771
25.5
%
$
9,558
2.0
%
$
6,901
41.3
%
NPLs to loans held-for-investment
0.31
%
0.21
%
0.17
%
0.18
%
NPAs to total assets
0.26
%
0.17
%
0.23
%
0.15
%
Classified assets to total assets
0.34
%
0.27
%
0.34
%
0.27
%
During the fourth quarter of 2023, the Company recognized an
OREO of $2.6 million by transferring a SBA 7(a) loan, of which the
guaranteed portion was previously sold. The Company’s exposure was
25% of the OREO and the SBA was entitled to 75% of the sale price
upon the sale of property. The Company sold the property and
recognized a gain of $13 thousand during the first quarter of
2024.
Allowance for Credit Losses
The following table presents activities in ACL for the periods
indicated:
Three Months
Ended
Six Months Ended
($ in thousands)
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
ACL on loans
Balance at beginning of period
$
28,332
$
27,533
2.9
%
$
24,694
14.7
%
$
27,533
$
24,942
10.4
%
Impact of ASC 326 adoption
—
—
NM
—
NM
—
1,067
NM
Charge-offs
—
(185
)
(100.0
)%
(7
)
(100.0
)%
(185
)
(7
)
2,542.9
%
Recoveries
86
62
38.7
%
23
273.9
%
148
1,125
(86.8
)%
Provision (reversal) for credit losses on
loans
329
922
(64.3
)%
157
109.6
%
1,251
(2,260
)
(155.4
)%
Balance at end of period
$
28,747
$
28,332
1.5
%
$
24,867
15.6
%
$
28,747
$
24,867
15.6
%
Percentage to loans held-for-investment
at end of period
1.17
%
1.18
%
1.17
%
1.17
%
1.17
%
ACL on off-balance sheet credit
exposure
Balance at beginning of period
$
1,445
$
1,277
13.2
%
$
1,545
(6.5
)%
$
1,277
$
299
327.1
%
Impact of ASC 326 adoption
—
—
NM
—
NM
—
1,607
NM
Provision (reversal) for credit losses on
off-balance sheet credit exposure
(70
)
168
NM
40
NM
98
(321
)
NM
Balance at end of period
$
1,375
$
1,445
(4.8
)%
$
1,585
(13.2
)%
$
1,375
$
1,585
(13.2
)%
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 $148.0 million at June 30,
2024, an increase of $9.8 million, or 7.1%, from $138.2 million at
March 31, 2024, an increase of $4.7 million, 3.3%, from $143.3
million at December 31, 2023, and an increase of $9.3 million, or
6.7%, from $138.7 million at June 30, 2023. The increase for the
current quarter was primarily due to purchases of $14.8 million,
partially offset by principal pay-downs of $4.8 million, a fair
value decrease of $103 thousand, and net premium amortization of
$41 thousand. The increase for the current year-to-date period was
primarily due to purchases of $14.8 million, partially offset by
principal pay-downs of $8.3 million, a fair value decrease of $1.7
million, and net premium amortization of $82 thousand.
Deposits
The following table presents the Company’s deposit mix as of the
dates indicated:
6/30/2024
3/31/2024
12/31/2023
6/30/2023
($ in thousands)
Amount
% to Total
Amount
% to Total
Amount
% to Total
Amount
% to Total
Noninterest-bearing demand deposits
$
543,538
22.6
%
$
538,380
22.4
%
$
594,673
25.3
%
$
635,329
29.0
%
Interest-bearing deposits
Savings
7,821
0.3
%
6,153
0.3
%
6,846
0.3
%
7,504
0.3
%
NOW
18,346
0.8
%
16,232
0.7
%
16,825
0.7
%
16,993
0.8
%
Retail money market accounts
457,760
18.9
%
461,221
19.0
%
397,531
16.8
%
464,655
21.1
%
Brokered money market accounts
1
0.1
%
1
0.1
%
1
0.1
%
1
0.1
%
Retail time deposits of
$250,000 or less
475,923
19.8
%
471,528
19.6
%
456,293
19.4
%
392,012
17.9
%
More than $250,000
559,832
23.2
%
549,550
22.9
%
515,702
21.9
%
451,590
20.7
%
State and brokered time deposits
343,033
14.3
%
359,775
15.0
%
363,741
15.5
%
220,148
10.1
%
Total interest-bearing deposits
1,862,716
77.4
%
1,864,460
77.6
%
1,756,939
74.7
%
1,552,903
71.0
%
Total deposits
$
2,406,254
100.0
%
$
2,402,840
100.0
%
$
2,351,612
100.0
%
$
2,188,232
100.0
%
Estimated total deposits not covered by
deposit insurance
$
1,020,963
42.4
%
$
1,017,696
42.4
%
$
947,294
40.3
%
$
1,034,148
47.3
%
Total retail deposits were $2.06 billion at June 30, 2024, an
increase of $20.2 million, or 1.0%, from $2.04 billion at March 31,
2024, an increase of $75.4 million, or 3.8%, from $1.99 billion at
December 31, 2023, and an increase of $95.1 million, or 4.8%, from
$1.97 billion at June 30, 2023.
The increase in retail time deposits for the current quarter was
primarily due to new accounts of $72.9 million, renewals of the
matured accounts of $183.4 million and balance increases of $10.2
million, partially offset by matured and closed accounts of $251.8
million. The increase for the current year-to-date period was
primarily due to new accounts of $196.1 million, renewals of the
matured accounts of $442.5 million and balance increases of $18.8
million, partially offset by matured and closed accounts of $593.7
million.
Liquidity
The following table presents a summary of the Company’s
liquidity position as of June 30, 2024:
($ in thousands)
6/30/2024
12/31/2023
% Change
Cash and cash equivalents
$
177,630
$
242,342
(26.7
)%
Cash and cash equivalents to total
assets
6.2
%
8.7
%
Available borrowing capacity
FHLB advances
$
697,571
$
602,976
15.7
%
Federal Reserve Discount Window
574,245
528,893
8.6
%
Overnight federal funds lines
61,000
65,000
(6.2
)%
Total
$
1,332,816
$
1,196,869
11.4
%
Total available borrowing capacity to
total assets
46.7
%
42.9
%
Shareholders’ Equity
Shareholders’ equity was $353.5 million at June 30, 2024, an
increase of $3.5 million, or 1.0%, from $350.0 million at March 31,
2024, an increase of $4.6 million, or 1.3%, from $348.9 million at
December 31, 2023, and an increase of $13.1 million, or 3.8%, from
$340.4 million at June 30, 2023. The increase for the current
quarter was primarily due to net income, partially offset by cash
dividends declared on common stock of $2.6 million, preferred stock
dividends of $142 thousand, and repurchase of common stock of $222
thousand. The increase for the current year-to-date period was
primarily due to net income, partially offset by cash dividends
declared on common stock of $5.1 million, preferred stock dividends
of $142 thousand, repurchase of common stock of $222 thousand, and
an increase in accumulated other comprehensive loss of $1.2
million.
Stock Repurchases
In 2023, the Company repurchased and retired 512,657 shares of
common stock at a weighted-average price of $17.22, totaling $8.8
million. During the current year-to-date period, the Company
repurchased and retired 14,947 shares of common stock at a
weighted-average price of $14.88, totaling $222 thousand. As of
June 30, 2024, the Company is authorized to purchase 577,777
additional shares under the its current stock repurchase program,
which expires on August 2, 2024.
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 bore no dividend for the first 24
months following the investment date. Thereafter, the dividend rate
will be measured 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 paid the initial quarterly dividend at an annualized
dividend rate of 2% beginning in the second quarter of 2024.
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:
6/30/2024
3/31/2024
12/31/2023
6/30/2023
Well Capitalized Minimum
Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted
assets)
11.91
%
11.88
%
12.23
%
13.12
%
N/A
Total capital (to risk-weighted
assets)
15.94
%
15.93
%
16.39
%
17.57
%
N/A
Tier 1 capital (to risk-weighted
assets)
14.71
%
14.71
%
15.16
%
16.34
%
N/A
Tier 1 capital (to average assets)
12.66
%
12.73
%
13.43
%
13.84
%
N/A
PCB Bank
Common tier 1 capital (to risk-weighted
assets)
14.38
%
14.37
%
14.85
%
16.00
%
6.5
%
Total capital (to risk-weighted
assets)
15.60
%
15.59
%
16.07
%
17.23
%
10.0
%
Tier 1 capital (to risk-weighted
assets)
14.38
%
14.37
%
14.85
%
16.00
%
8.0
%
Tier 1 capital (to average assets)
12.37
%
12.44
%
13.16
%
13.55
%
5.0
%
About PCB Bancorp
PCB Bancorp is the bank holding company for PCB Bank, a
California state chartered bank, offering a full suite of
commercial banking services to small to medium-sized businesses,
individuals and professionals, primarily in Southern California,
and predominantly in Korean-American and other minority
communities.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking statements. These
forward-looking statements represent plans, estimates, objectives,
goals, guidelines, expectations, intentions, projections and
statements of our beliefs concerning future events, business plans,
objectives, expected operating results and the assumptions upon
which those statements are based. Forward-looking statements
include without limitation, any statement that may predict,
forecast, indicate or imply future results, performance or
achievements, and are typically identified with words such as
“may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,”
“estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases
of similar meaning. We caution that the forward-looking statements
are based largely on our expectations and are subject to a number
of known and unknown risks and uncertainties that are subject to
change based on factors which are, in many instances, beyond our
control, including but not limited to the health of the national
and local economies including the impact to the Company and its
customers resulting from changes to, and the level of, inflation
and interest rates; the Company’s ability to maintain and grow its
deposit base; loan demand and continued portfolio performance; the
impact of adverse developments at other banks, including bank
failures, that impact general sentiment regarding the stability and
liquidity of banks that could affect the Company’s liquidity,
financial performance and stock price; changes to valuations of the
Company’s assets and liabilities including the allowance for credit
losses, earning assets, and intangible assets; changes to the
availability of liquidity sources including borrowing lines and the
ability to pledge or sell certain assets; the Company's ability to
attract and retain skilled employees; customers' service
expectations; cyber security risks; the Company's ability to
successfully deploy new technology; acquisitions and branch and
loan production office expansions; operational risks including the
ability to detect and prevent errors and fraud; the effectiveness
of the Company’s enterprise risk management framework; costs
related to litigation; changes in laws, rules, regulations, or
interpretations to which the Company is subject; the effects of
severe weather events, pandemics, other public health crises, acts
of war or terrorism, and other external events on our business.
These and other important factors are detailed in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2023 and
other filings the Company makes with the SEC, which are available
at the SEC’s Internet site (http://www.sec.gov) or from the Company
without charge. Actual results, performance or achievements could
differ materially from those contemplated, expressed, or implied by
the forward-looking statements. Any forward-looking statements
presented herein are made only as of the date of this press
release, and the Company does not undertake any obligation to
update or revise any forward-looking statements to reflect changes
in assumptions, the occurrence of unanticipated events, or
otherwise, except as required by law.
PCB Bancorp and
Subsidiary
Consolidated Balance Sheets
(Unaudited)
($ in thousands, except share and
per share data)
6/30/2024
3/31/2024
% Change
12/31/2023
% Change
6/30/2023
% Change
Assets
Cash and due from banks
$
23,247
$
29,432
(21.0
)%
$
26,518
(12.3
)%
$
22,159
4.9
%
Interest-bearing deposits in other
financial institutions
154,383
210,359
(26.6
)%
215,824
(28.5
)%
199,987
(22.8
)%
Total cash and cash equivalents
177,630
239,791
(25.9
)%
242,342
(26.7
)%
222,146
(20.0
)%
Securities available-for-sale, at fair
value
148,009
138,170
7.1
%
143,323
3.3
%
138,673
6.7
%
Loans held-for-sale
2,959
3,256
(9.1
)%
5,155
(42.6
)%
13,065
(77.4
)%
Loans held-for-investment
2,449,074
2,397,964
2.1
%
2,323,452
5.4
%
2,122,427
15.4
%
Allowance for credit losses on loans
(28,747
)
(28,332
)
1.5
%
(27,533
)
4.4
%
(24,867
)
15.6
%
Net loans held-for-investment
2,420,327
2,369,632
2.1
%
2,295,919
5.4
%
2,097,560
15.4
%
Premises and equipment, net
8,923
8,892
0.3
%
5,999
48.7
%
6,394
39.6
%
Federal Home Loan Bank and other bank
stock
14,042
12,716
10.4
%
12,716
10.4
%
12,716
10.4
%
Other real estate owned, net
—
—
—
%
2,558
(100.0
)%
—
—
%
Bank-owned life insurance
31,281
31,045
0.8
%
30,817
1.5
%
30,428
2.8
%
Deferred tax assets, net
—
—
—
%
—
—
%
4,348
(100.0
)%
Servicing assets
6,205
6,544
(5.2
)%
6,666
(6.9
)%
7,142
(13.1
)%
Operating lease assets
17,609
18,255
(3.5
)%
18,913
(6.9
)%
5,182
239.8
%
Accrued interest receivable
10,464
10,394
0.7
%
9,468
10.5
%
8,040
30.1
%
Other assets
15,515
15,597
(0.5
)%
15,630
(0.7
)%
10,651
45.7
%
Total assets
$
2,852,964
$
2,854,292
(0.1
)%
$
2,789,506
2.3
%
$
2,556,345
11.6
%
Liabilities
Deposits
Noninterest-bearing demand
$
543,538
$
538,380
1.0
%
$
594,673
(8.6
)%
$
635,329
(14.4
)%
Savings, NOW and money market accounts
483,928
483,607
0.1
%
421,203
14.9
%
489,153
(1.1
)%
Time deposits of $250,000 or less
758,956
771,303
(1.6
)%
760,034
(0.1
)%
552,160
37.5
%
Time deposits of more than $250,000
619,832
609,550
1.7
%
575,702
7.7
%
511,590
21.2
%
Total deposits
2,406,254
2,402,840
0.1
%
2,351,612
2.3
%
2,188,232
10.0
%
Other short-term borrowings
4,000
—
NM
—
NM
—
NM
Federal Home Loan Bank advances
32,000
50,000
(36.0
)%
39,000
(17.9
)%
—
NM
Deferred tax liabilities, net
577
266
116.9
%
876
(34.1
)%
—
NM
Operating lease liabilities
18,939
19,555
(3.2
)%
20,137
(5.9
)%
5,495
244.7
%
Accrued interest payable and other
liabilities
37,725
31,626
19.3
%
29,009
30.0
%
22,207
69.9
%
Total liabilities
2,499,495
2,504,287
(0.2
)%
2,440,634
2.4
%
2,215,934
12.8
%
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock
69,141
69,141
—
%
69,141
—
%
69,141
—
%
Common stock
142,698
142,734
(0.1
)%
142,563
0.1
%
143,686
(0.7
)%
Retained earnings
151,781
148,209
2.4
%
146,092
3.9
%
138,315
9.7
%
Accumulated other comprehensive loss,
net
(10,151
)
(10,079
)
0.7
%
(8,924
)
13.7
%
(10,731
)
(5.4
)%
Total shareholders’ equity
353,469
350,005
1.0
%
348,872
1.3
%
340,411
3.8
%
Total liabilities and shareholders’
equity
$
2,852,964
$
2,854,292
(0.1
)%
$
2,789,506
2.3
%
$
2,556,345
11.6
%
Outstanding common shares
14,254,024
14,263,791
14,260,440
14,318,890
Book value per common share (1)
$
24.80
$
24.54
$
24.46
$
23.77
TCE per common share (2)
$
19.95
$
19.69
$
19.62
$
18.94
Total loan to total deposit ratio
101.90
%
99.93
%
99.02
%
97.59
%
Noninterest-bearing deposits to total
deposits
22.59
%
22.41
%
25.29
%
29.03
%
(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
Six Months Ended
6/30/2024
3/31/2024
% Change
6/30/2023
% Change
6/30/2024
6/30/2023
% Change
Interest and dividend income
Loans, including fees
$
40,626
$
39,251
3.5
%
$
32,960
23.3
%
$
79,877
$
64,189
24.4
%
Investment securities
1,310
1,246
5.1
%
1,136
15.3
%
2,556
2,238
14.2
%
Other interest-earning assets
3,009
3,058
(1.6
)%
2,742
9.7
%
6,067
4,947
22.6
%
Total interest income
44,945
43,555
3.2
%
36,838
22.0
%
88,500
71,374
24.0
%
Interest expense
Deposits
22,536
21,967
2.6
%
15,121
49.0
%
44,503
27,034
64.6
%
Other borrowings
674
589
14.4
%
—
—
%
1,263
209
504.3
%
Total interest expense
23,210
22,556
2.9
%
15,121
53.5
%
45,766
27,243
68.0
%
Net interest income
21,735
20,999
3.5
%
21,717
0.1
%
42,734
44,131
(3.2
)%
Provision (reversal) for credit losses
259
1,090
(76.2
)%
197
31.5
%
1,349
(2,581
)
NM
Net interest income after provision
(reversal) for credit losses
21,476
19,909
7.9
%
21,520
(0.2
)%
41,385
46,712
(11.4
)%
Noninterest income
Gain on sale of loans
763
1,078
(29.2
)%
769
(0.8
)%
1,841
2,078
(11.4
)%
Service charges and fees on deposits
364
378
(3.7
)%
369
(1.4
)%
742
713
4.1
%
Loan servicing income
799
919
(13.1
)%
868
(7.9
)%
1,718
1,728
(0.6
)%
Bank-owned life insurance income
236
228
3.5
%
184
28.3
%
464
364
27.5
%
Other income
323
342
(5.6
)%
467
(30.8
)%
665
795
(16.4
)%
Total noninterest income
2,485
2,945
(15.6
)%
2,657
(6.5
)%
5,430
5,678
(4.4
)%
Noninterest expense
Salaries and employee benefits
9,225
9,218
0.1
%
8,675
6.3
%
18,443
17,603
4.8
%
Occupancy and equipment
2,300
2,358
(2.5
)%
1,919
19.9
%
4,658
3,815
22.1
%
Professional fees
973
1,084
(10.2
)%
772
26.0
%
2,057
1,504
36.8
%
Marketing and business promotion
318
319
(0.3
)%
203
56.7
%
637
575
10.8
%
Data processing
495
402
23.1
%
380
30.3
%
897
792
13.3
%
Director fees and expenses
221
232
(4.7
)%
217
1.8
%
453
397
14.1
%
Regulatory assessments
327
298
9.7
%
382
(14.4
)%
625
537
16.4
%
Other expense
1,316
2,441
(46.1
)%
1,079
22.0
%
3,757
2,158
74.1
%
Total noninterest expense
15,175
16,352
(7.2
)%
13,627
11.4
%
31,527
27,381
15.1
%
Income before income taxes
8,786
6,502
35.1
%
10,550
(16.7
)%
15,288
25,009
(38.9
)%
Income tax expense
2,505
1,817
37.9
%
3,073
(18.5
)%
4,322
7,235
(40.3
)%
Net income
6,281
4,685
34.1
%
7,477
(16.0
)%
10,966
17,774
(38.3
)%
Preferred stock dividends
142
—
NM
—
NM
142
—
NM
Net income available to common
shareholders
$
6,139
$
4,685
31.0
%
$
7,477
(17.9
)%
$
10,824
$
17,774
(39.1
)%
Earnings per common share
Basic
$
0.43
$
0.33
$
0.52
$
0.76
$
1.24
Diluted
$
0.43
$
0.33
$
0.52
$
0.75
$
1.22
Average common shares
Basic
14,237,083
14,235,419
14,271,200
14,236,251
14,344,769
Diluted
14,312,949
14,330,204
14,356,776
14,323,171
14,468,981
Dividend paid per common share
$
0.18
$
0.18
$
0.18
$
0.36
$
0.33
Return on average assets (1)
0.89
%
0.67
%
1.19
%
0.78
%
1.44
%
Return on average shareholders’ equity
(1)
7.19
%
5.39
%
8.82
%
6.29
%
10.62
%
Return on average TCE (1), (2)
8.96
%
6.72
%
11.08
%
7.84
%
13.35
%
Efficiency ratio (3)
62.65
%
68.29
%
55.91
%
65.46
%
54.97
%
(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
6/30/2024
3/31/2024
6/30/2023
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$
2,414,824
$
40,626
6.77
%
$
2,370,027
$
39,251
6.66
%
$
2,097,489
$
32,960
6.30
%
Mortgage-backed securities
104,538
911
3.50
%
101,852
839
3.31
%
98,971
713
2.89
%
Collateralized mortgage obligation
22,992
249
4.36
%
23,763
254
4.30
%
26,228
262
4.01
%
SBA loan pool securities
6,891
74
4.32
%
7,317
78
4.29
%
8,364
81
3.88
%
Municipal bonds (2)
3,238
29
3.60
%
3,300
28
3.41
%
4,234
33
3.13
%
Corporate bonds
4,157
47
4.55
%
4,227
47
4.47
%
4,339
47
4.34
%
Other interest-earning assets
213,428
3,009
5.67
%
217,002
3,058
5.67
%
213,883
2,742
5.14
%
Total interest-earning assets
2,770,068
44,945
6.53
%
2,727,488
43,555
6.42
%
2,453,508
36,838
6.02
%
Noninterest-earning assets
Cash and due from banks
23,057
21,365
20,754
ACL on loans
(28,372
)
(27,577
)
(24,710
)
Other assets
88,399
88,532
71,200
Total noninterest-earning assets
83,084
82,320
67,244
Total assets
$
2,853,152
$
2,809,808
$
2,520,752
Liabilities and Shareholders’
Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$
473,557
4,876
4.14
%
$
453,801
4,665
4.13
%
$
465,564
3,929
3.38
%
Savings
6,899
4
0.23
%
6,196
4
0.26
%
7,767
5
0.26
%
Time deposits
1,383,167
17,656
5.13
%
1,367,212
17,298
5.09
%
1,054,191
11,187
4.26
%
Total interest-bearing deposits
1,863,623
22,536
4.86
%
1,827,209
21,967
4.84
%
1,527,522
15,121
3.97
%
Other borrowings
48,462
674
5.59
%
42,187
589
5.62
%
—
—
—
%
Total interest-bearing liabilities
1,912,085
23,210
4.88
%
1,869,396
22,556
4.85
%
1,527,522
15,121
3.97
%
Noninterest-bearing liabilities
Noninterest-bearing demand
535,508
542,811
628,127
Other liabilities
54,338
47,957
25,234
Total noninterest-bearing liabilities
589,846
590,768
653,361
Total liabilities
2,501,931
2,460,164
2,180,883
Total shareholders’ equity
351,221
349,644
339,869
Total liabilities and shareholders’
equity
$
2,853,152
$
2,809,808
$
2,520,752
Net interest income
$
21,735
$
20,999
$
21,717
Net interest spread (3)
1.65
%
1.57
%
2.05
%
Net interest margin (4)
3.16
%
3.10
%
3.55
%
Total deposits
$
2,399,131
$
22,536
3.78
%
$
2,370,020
$
21,967
3.73
%
$
2,155,649
$
15,121
2.81
%
Total funding (5)
$
2,447,593
$
23,210
3.81
%
$
2,412,207
$
22,556
3.76
%
$
2,155,649
$
15,121
2.81
%
(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)
Six Months Ended
6/30/2024
6/30/2023
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$
2,392,426
$
79,877
6.71
%
$
2,085,021
$
64,189
6.21
%
Mortgage-backed securities
103,195
1,750
3.41
%
98,278
1,396
2.86
%
Collateralized mortgage obligation
23,377
503
4.33
%
26,484
518
3.94
%
SBA loan pool securities
7,104
152
4.30
%
8,693
163
3.78
%
Municipal bonds (2)
3,269
57
3.51
%
4,228
67
3.20
%
Corporate bonds
4,192
94
4.51
%
4,424
94
4.28
%
Other interest-earning assets
215,215
6,067
5.67
%
200,420
4,947
4.98
%
Total interest-earning assets
2,748,778
88,500
6.47
%
2,427,548
71,374
5.93
%
Noninterest-earning assets
Cash and due from banks
22,211
20,953
ACL on loans
(27,975
)
(25,727
)
Other assets
88,592
73,177
Total noninterest-earning assets
82,828
68,403
Total assets
$
2,831,606
$
2,495,951
Liabilities and Shareholders’
Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$
463,679
9,541
4.14
%
$
475,707
7,374
3.13
%
Savings
6,548
8
0.25
%
7,932
10
0.25
%
Time deposits
1,375,190
34,954
5.11
%
985,851
19,650
4.02
%
Total interest-bearing deposits
1,845,417
44,503
4.85
%
1,469,490
27,034
3.71
%
Other borrowings
45,324
1,263
5.60
%
7,862
209
5.36
%
Total interest-bearing liabilities
1,890,741
45,766
4.87
%
1,477,352
27,243
3.72
%
Noninterest-bearing liabilities
Noninterest-bearing demand
539,159
657,687
Other liabilities
51,123
23,382
Total noninterest-bearing liabilities
590,282
681,069
Total liabilities
2,481,023
2,158,421
Total shareholders’ equity
350,583
337,530
Total liabilities and shareholders’
equity
$
2,831,606
$
2,495,951
Net interest income
$
42,734
$
44,131
Net interest spread (3)
1.60
%
2.21
%
Net interest margin (4)
3.13
%
3.67
%
Total deposits
$
2,384,576
$
44,503
3.75
%
$
2,127,177
$
27,034
2.56
%
Total funding (5)
$
2,429,900
$
45,766
3.79
%
$
2,135,039
$
27,243
2.57
%
(1)
Total loans include both loans
held-for-sale and loans held-for-investment.
(2)
The yield on municipal bonds has not been
computed on a tax-equivalent basis.
(3)
Net interest spread is calculated by
subtracting average rate on interest-bearing liabilities from
average yield on interest-earning assets.
(4)
Net interest margin is calculated by
dividing annualized net interest income by average interest-earning
assets.
(5)
Total funding is the sum of
interest-bearing liabilities and noninterest-bearing deposits. The
cost of total funding is calculated as annualized total interest
expense divided by average total funding.
(6)
Annualized.
PCB Bancorp and Subsidiary
Non-GAAP Measures
($ in thousands)
Return on average tangible common
equity, tangible common equity per common share and tangible common
equity to total assets ratios
The Company's TCE is calculated by
subtracting preferred stock from shareholders’ equity. The Company
does not have any intangible assets for the presented periods.
Return on average TCE, TCE per common share, and TCE to total
assets constitute supplemental financial information determined by
methods other than in accordance with GAAP. These non-GAAP measures
are used by management in its analysis of the Company's
performance. These non-GAAP measures should not be viewed as
substitutes for results determined in accordance with GAAP, nor are
they necessarily comparable to non-GAAP measures that may be
presented by other companies. The following tables provide
reconciliations of the non-GAAP measures with financial measures
defined by GAAP.
($ in thousands)
Three Months
Ended
Six Months Ended
6/30/2024
3/31/2024
6/30/2023
6/30/2024
6/30/2023
Average total shareholders' equity
(a)
$
351,221
$
349,644
$
339,869
$
350,583
$
337,530
Less: average preferred stock
(b)
69,141
69,141
69,141
69,141
69,141
Average TCE
(c)=(a)-(b)
$
282,080
$
280,503
$
270,728
$
281,442
$
268,389
Net income
(d)
$
6,281
$
4,685
$
7,477
$
10,966
$
17,774
Return on average shareholder's equity
(1)
(d)/(a)
7.19
%
5.39
%
8.82
%
6.29
%
10.62
%
Return on average TCE (1)
(d)/(c)
8.96
%
6.72
%
11.08
%
7.84
%
13.35
%
(1)
Annualized.
($ in thousands, except per share
data)
6/30/2024
3/31/2024
12/31/2023
6/30/2023
Total shareholders' equity
(a)
$
353,469
$
350,005
$
348,872
$
340,411
Less: preferred stock
(b)
69,141
69,141
69,141
69,141
TCE
(c)=(a)-(b)
$
284,328
$
280,864
$
279,731
$
271,270
Outstanding common shares
(d)
14,254,024
14,263,791
14,260,440
14,318,890
Book value per common share
(a)/(d)
$
24.80
$
24.54
$
24.46
$
23.77
TCE per common share
(c)/(d)
$
19.95
$
19.69
$
19.62
$
18.94
Total assets
(e)
$
2,852,964
$
2,854,292
$
2,789,506
$
2,556,345
Total shareholders' equity to total
assets
(a)/(e)
12.39
%
12.26
%
12.51
%
13.32
%
TCE to total assets
(c)/(e)
9.97
%
9.84
%
10.03
%
10.61
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725907974/en/
Timothy Chang Executive Vice President & Chief Financial
Officer 213-210-2000
PCB Bancorp (NASDAQ:PCB)
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PCB Bancorp (NASDAQ:PCB)
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