PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $7.7 million, or $0.53 per diluted common share, for the first quarter of 2025, compared with $6.7 million, or $0.46 per diluted common share, for the previous quarter and $4.7 million, or $0.33 per diluted common share, for the year-ago quarter.
Q1 2025 Highlights
- Net income available to common shareholders totaled $7.7 million, or $0.53 per diluted common share, for the current quarter;
- Provision for credit losses was $1.6 million for the current quarter compared with $2.0 million for the previous quarter and $1.1 million for the year-ago quarter;
- Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.17% at March 31, 2025 compared with 1.16% at December 31, 2024 and 1.18% at March 31, 2024;
- Net interest income was $24.3 million for the current quarter compared with $23.2 million for the previous quarter and $21.0 million for the year-ago quarter. Net interest margin was 3.28% for the current quarter compared with 3.18% for the previous quarter and 3.10% for the year-ago quarter;
- Gain on sale of loans was $887 thousand for the current quarter compared with $1.2 million for the previous quarter and $1.1 million for the year-ago quarter;
- Total assets were $3.18 billion at March 31, 2025, an increase of $119.8 million, or 3.9%, from $3.06 billion at December 31, 2024 and an increase of $329.5 million, or 11.5%, from $2.85 billion at March 31, 2024;
- Loans held-for-investment were $2.73 billion at March 31, 2025, an increase of $98.2 million, or 3.7%, from $2.63 billion at December 31, 2024 and an increase of $329.6 million, or 13.7%, from $2.40 billion at March 31, 2024; and
- Total deposits were $2.71 billion at March 31, 2025, an increase of $98.6 million, or 3.8%, from $2.62 billion at December 31, 2024 and an increase of $311.6 million, or 13.0%, from $2.40 billion at March 31, 2024.
“Our strong first quarter results were highlighted by continued robust growth in loan and deposit balances, expansion in net interest margin, and outstanding credit metrics,” said Henry Kim, President and CEO. “In light of the recent news on tariffs and trade restrictions, and current volatility in capital markets, the outlook for the near future appears increasingly uncertain. Nevertheless, as a relationship bank, we are well-positioned to withstand such economic disturbance, continue our focus on successfully executing our long-term strategies and serving our customers.”
Mr. Kim continued, “In addition to our strong balance sheet growth, our credit quality remains strong, and capital level remains robust, supporting the needs of our borrowers while ensuring the safety and soundness of the bank. Our outlook for the year remains positive as our organic growth continues to outpace our peer group. While we closely monitor the current geopolitical environment, we are well positioned to grow our balance sheet, operate efficiently, expand our branch network, and increase profitability and shareholders’ value.”
Financial Highlights (Unaudited)
($ in thousands, except per share data) | Three Months Ended | |||||||||||||||||
3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | ||||||||||||||
Net income | $ | 7,735 | $ | 7,030 | 10.0 | % | $ | 4,685 | 65.1 | % | ||||||||
Net income available to common shareholders | $ | 7,695 | $ | 6,684 | 15.1 | % | $ | 4,685 | 64.2 | % | ||||||||
Diluted earnings per common share | $ | 0.53 | $ | 0.46 | 15.2 | % | $ | 0.33 | 60.6 | % | ||||||||
Net interest income | $ | 24,283 | $ | 23,164 | 4.8 | % | $ | 20,999 | 15.6 | % | ||||||||
Provision for credit losses | 1,598 | 2,002 | (20.2 | )% | 1,090 | 46.6 | % | |||||||||||
Noninterest income | 2,580 | 3,043 | (15.2 | )% | 2,945 | (12.4 | )% | |||||||||||
Noninterest expense | 14,474 | 13,894 | 4.2 | % | 16,352 | (11.5 | )% | |||||||||||
Return on average assets (1) | 1.01 | % | 0.94 | % | 0.67 | % | ||||||||||||
Return on average shareholders’ equity (1) | 8.53 | % | 7.69 | % | 5.39 | % | ||||||||||||
Return on average tangible common equity (“TCE”) (1),(2) | 10.45 | % | 9.02 | % | 6.72 | % | ||||||||||||
Net interest margin (1) | 3.28 | % | 3.18 | % | 3.10 | % | ||||||||||||
Efficiency ratio (3) | 53.88 | % | 53.02 | % | 68.29 | % | ||||||||||||
($ in thousands, except per share data) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | |||||||||||||
Total assets | $ | 3,183,758 | $ | 3,063,971 | 3.9 | % | $ | 2,854,292 | 11.5 | % | ||||||||
Net loans held-for-investment | 2,695,668 | 2,598,759 | 3.7 | % | 2,369,632 | 13.8 | % | |||||||||||
Total deposits | 2,714,399 | 2,615,791 | 3.8 | % | 2,402,840 | 13.0 | % | |||||||||||
Book value per common share (4) | $ | 25.78 | $ | 25.30 | $ | 24.54 | ||||||||||||
TCE per common share (2) | $ | 20.97 | $ | 20.49 | $ | 19.69 | ||||||||||||
Tier 1 leverage ratio (consolidated) | 12.14 | % | 12.45 | % | 12.73 | % | ||||||||||||
Total shareholders’ equity to total assets | 11.65 | % | 11.87 | % | 12.26 | % | ||||||||||||
TCE to total assets (2), (5) | 9.48 | % | 9.62 | % | 9.84 | % | ||||||||||||
(1) | Ratios are presented on an annualized basis. | |
(2) | Non-GAAP. See “Non-GAAP Financial Measures” for a 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 | ||||||||||||||||||
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | |||||||||||||
Interest income/expense on | ||||||||||||||||||
Loans | $ | 43,026 | $ | 42,309 | 1.7 | % | $ | 39,251 | 9.6 | % | ||||||||
Investment securities | 1,408 | 1,388 | 1.4 | % | 1,246 | 13.0 | % | |||||||||||
Other interest-earning assets | 2,458 | 2,622 | (6.3 | )% | 3,058 | (19.6 | )% | |||||||||||
Total interest-earning assets | 46,892 | 46,319 | 1.2 | % | 43,555 | 7.7 | % | |||||||||||
Interest-bearing deposits | 22,564 | 22,927 | (1.6 | )% | 21,967 | 2.7 | % | |||||||||||
Borrowings | 45 | 228 | (80.3 | )% | 589 | (92.4 | )% | |||||||||||
Total interest-bearing liabilities | 22,609 | 23,155 | (2.4 | )% | 22,556 | 0.2 | % | |||||||||||
Net interest income | $ | 24,283 | $ | 23,164 | 4.8 | % | $ | 20,999 | 15.6 | % | ||||||||
Average balance of | ||||||||||||||||||
Loans | $ | 2,649,037 | $ | 2,538,310 | 4.4 | % | $ | 2,370,027 | 11.8 | % | ||||||||
Investment securities | 146,540 | 147,943 | (0.9 | )% | 140,459 | 4.3 | % | |||||||||||
Other interest-earning assets | 209,375 | 207,234 | 1.0 | % | 217,002 | (3.5 | )% | |||||||||||
Total interest-earning assets | $ | 3,004,952 | $ | 2,893,487 | 3.9 | % | $ | 2,727,488 | 10.2 | % | ||||||||
Interest-bearing deposits | $ | 2,140,201 | $ | 1,986,901 | 7.7 | % | $ | 1,827,209 | 17.1 | % | ||||||||
Borrowings | 3,933 | 17,946 | (78.1 | )% | 42,187 | (90.7 | )% | |||||||||||
Total interest-bearing liabilities | $ | 2,144,134 | $ | 2,004,847 | 6.9 | % | $ | 1,869,396 | 14.7 | % | ||||||||
Total funding (1) | $ | 2,660,764 | $ | 2,548,818 | 4.4 | % | $ | 2,412,207 | 10.3 | % | ||||||||
Annualized average yield/cost of | ||||||||||||||||||
Loans | 6.59 | % | 6.63 | % | 6.66 | % | ||||||||||||
Investment securities | 3.90 | % | 3.73 | % | 3.57 | % | ||||||||||||
Other interest-earning assets | 4.76 | % | 5.03 | % | 5.67 | % | ||||||||||||
Total interest-earning assets | 6.33 | % | 6.37 | % | 6.42 | % | ||||||||||||
Interest-bearing deposits | 4.28 | % | 4.59 | % | 4.84 | % | ||||||||||||
Borrowings | 4.64 | % | 5.05 | % | 5.62 | % | ||||||||||||
Total interest-bearing liabilities | 4.28 | % | 4.59 | % | 4.85 | % | ||||||||||||
Net interest margin | 3.28 | % | 3.18 | % | 3.10 | % | ||||||||||||
Cost of total funding (1) | 3.45 | % | 3.61 | % | 3.76 | % | ||||||||||||
Supplementary information | ||||||||||||||||||
Net accretion of discount on loans | $ | 872 | $ | 645 | 35.2 | % | $ | 573 | 52.2 | % | ||||||||
Net amortization of deferred loan fees | $ | 266 | $ | 295 | (9.8 | )% | $ | 334 | (20.4 | )% | ||||||||
(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 decreases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to decreases in market rates and net amortization of deferred loan fees, partially offset by an increase in net accretion of discount on loans.
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:
3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||||||||||
% to Total
| Weighted-Average
| % to Total
| Weighted-Average
| % to Total
| Weighted-Average
| |||||||||||||
Fixed rate loans | 17.8 | % | 5.35 | % | 17.4 | % | 5.23 | % | 20.0 | % | 4.92 | % | ||||||
Hybrid rate loans | 38.0 | % | 5.36 | % | 37.3 | % | 5.27 | % | 38.6 | % | 5.01 | % | ||||||
Variable rate loans | 44.2 | % | 7.52 | % | 45.3 | % | 7.63 | % | 41.4 | % | 8.46 | % | ||||||
Investment Securities. The increases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to higher yields on newly purchased investment securities and a decrease in net amortization of premium.
Other Interest-Earning Assets. The decreases in average yield for the current quarter compared with the previous and year-ago quarters were 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.
Interest-Bearing Deposits. The decreases in average cost for the current quarter compared with the previous and year-ago quarters were primarily due to a decrease 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 | ||||||||||||||||
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | |||||||||||
Provision for credit losses on loans | $ | 1,591 | $ | 2,044 | (22.2 | )% | $ | 922 | 72.6 | % | ||||||
Provision (reversal) for credit losses on off-balance sheet credit exposure | 7 | (42 | ) | NM | 168 | (95.8 | )% | |||||||||
Total provision for credit losses | $ | 1,598 | $ | 2,002 | (20.2 | )% | $ | 1,090 | 46.6 | % | ||||||
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 | |||||||||||||||
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | ||||||||||
Gain on sale of loans | $ | 887 | $ | 1,161 | (23.6 | )% | $ | 1,078 | (17.7 | )% | |||||
Service charges and fees on deposits | 372 | 404 | (7.9 | )% | 378 | (1.6 | )% | ||||||||
Loan servicing income | 725 | 861 | (15.8 | )% | 919 | (21.1 | )% | ||||||||
Bank-owned life insurance income | 247 | 246 | 0.4 | % | 228 | 8.3 | % | ||||||||
Other income | 349 | 371 | (5.9 | )% | 342 | 2.0 | % | ||||||||
Total noninterest income | $ | 2,580 | $ | 3,043 | (15.2 | )% | $ | 2,945 | (12.4 | )% | |||||
Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:
Three Months Ended | |||||||||||||||
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | ||||||||||
Gain on sale of SBA loans | |||||||||||||||
Sold loan balance | $ | 16,605 | $ | 24,518 | (32.3 | )% | $ | 19,414 | (14.5 | )% | |||||
Premium received | 1,208 | 1,910 | (36.8 | )% | 1,596 | (24.3 | )% | ||||||||
Gain recognized | 887 | 1,161 | (23.6 | )% | 1,078 | (17.7 | )% | ||||||||
Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:
Three Months Ended | ||||||||||||||||||
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | |||||||||||||
Loan servicing income | ||||||||||||||||||
Servicing income received | $ | 1,273 | $ | 1,255 | 1.4 | % | $ | 1,293 | (1.5 | )% | ||||||||
Servicing assets amortization | (548 | ) | (394 | ) | 39.1 | % | (374 | ) | 46.5 | % | ||||||||
Loan servicing income | $ | 725 | $ | 861 | (15.8 | )% | $ | 919 | (21.1 | )% | ||||||||
Underlying loans at end of period | $ | 510,927 | $ | 523,797 | (2.5 | )% | $ | 540,039 | (5.4 | )% | ||||||||
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 | |||||||||||||||
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | ||||||||||
Salaries and employee benefits | $ | 9,075 | $ | 8,417 | 7.8 | % | $ | 9,218 | (1.6 | )% | |||||
Occupancy and equipment | 2,289 | 2,198 | 4.1 | % | 2,358 | (2.9 | )% | ||||||||
Professional fees | 628 | 752 | (16.5 | )% | 1,084 | (42.1 | )% | ||||||||
Marketing and business promotion | 243 | 582 | (58.2 | )% | 319 | (23.8 | )% | ||||||||
Data processing | 333 | 205 | 62.4 | % | 402 | (17.2 | )% | ||||||||
Director fees and expenses | 226 | 227 | (0.4 | )% | 232 | (2.6 | )% | ||||||||
Regulatory assessments | 344 | 322 | 6.8 | % | 298 | 15.4 | % | ||||||||
Other expense | 1,336 | 1,191 | 12.2 | % | 2,441 | (45.3 | )% | ||||||||
Total noninterest expense | $ | 14,474 | $ | 13,894 | 4.2 | % | $ | 16,352 | (11.5 | )% | |||||
Salaries and Employee Benefits. The increase for the current quarter compared with the previous quarter was primarily due to increases in bonus and vacation accruals, and other employee benefits, partially offset by a decrease in salaries. The decrease for the current quarter compared with the year-ago quarter was primarily due to a decrease in salaries and an increase in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense, partially offset by an increase in bonus accrual. The number of full-time equivalent employees was 257, 262 and 272 as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
Professional Fees. The decrease for the current quarter compared with the previous quarter was due to a higher internal audit fees for the previous quarter as a part of the year-end process. The decrease for the current quarter compared with the year-ago quarter was primarily due to other professional fees for the year-ago quarter related to a core system conversion that was completed in April 2024.
Marketing and Business Promotion. The decrease for the current quarter compared with the previous was primarily due to year-end promotions during the previous quarter. The decrease for the current quarter compared with the year-ago quarter was primarily due to a decrease in advertising.
Data Processing. The increase for the current quarter compared with the previous quarter was primarily due to a one-time new relationship credit recognized during the previous quarter from the core system conversion completed in April 2024. The decrease for the current quarter compared with the year-ago quarter was primarily due to a decrease in overall service charges after the core system conversion.
Other Expense. The increase for the current quarter compared with the previous quarter was primarily due to an impairment on operating lease assets of $146 thousand for a sublease contract and recognition of contingent liabilities for legal settlements of $183 thousand. The decrease for the current quarter compared with the year-ago 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 year-ago quarter, partially offset by the impairment on operating lease assets and contingent liabilities for legal settlements.
Balance Sheet (Unaudited)
Total assets were $3.18 billion at March 31, 2025, an increase of $119.8 million, or 3.9%, from $3.06 billion at December 31, 2024 and an increase of $329.5 million, or 11.5%, from $2.85 billion at March 31, 2024. The increases for the current quarter were primarily due to increases in loans held-for-investment, loans held-for-sale, and cash and cash equivalents.
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | ||||||||||
Commercial real estate: | |||||||||||||||
Commercial property | $ | 965,302 | $ | 940,931 | 2.6 | % | $ | 874,300 | 10.4 | % | |||||
Business property | 618,771 | 595,547 | 3.9 | % | 578,903 | 6.9 | % | ||||||||
Multifamily | 207,096 | 194,220 | 6.6 | % | 131,742 | 57.2 | % | ||||||||
Construction | 23,978 | 21,854 | 9.7 | % | 29,212 | (17.9 | )% | ||||||||
Total commercial real estate | 1,815,147 | 1,752,552 | 3.6 | % | 1,614,157 | 12.5 | % | ||||||||
Commercial and industrial | 494,697 | 472,763 | 4.6 | % | 371,934 | 33.0 | % | ||||||||
Consumer: | |||||||||||||||
Residential mortgage | 406,774 | 392,456 | 3.6 | % | 389,888 | 4.3 | % | ||||||||
Other consumer | 10,992 | 11,616 | (5.4 | )% | 21,985 | (50.0 | )% | ||||||||
Total consumer | 417,766 | 404,072 | 3.4 | % | 411,873 | 1.4 | % | ||||||||
Loans held-for-investment | 2,727,610 | 2,629,387 | 3.7 | % | 2,397,964 | 13.7 | % | ||||||||
Loans held-for-sale | 12,101 | 6,292 | 92.3 | % | 3,256 | 271.7 | % | ||||||||
Total loans | $ | 2,739,711 | $ | 2,635,679 | 3.9 | % | $ | 2,401,220 | 14.1 | % | |||||
SBA loans included in: | |||||||||||||||
Loans held-for-investment | $ | 147,622 | $ | 146,940 | 0.5 | % | $ | 148,316 | (0.5 | )% | |||||
Loans held-for-sale | $ | 12,101 | $ | 6,292 | 92.3 | % | $ | 3,256 | 271.7 | % | |||||
The increase in loans held-for-investment for the current quarter was primarily due to new funding of term loans of $154.0 million and net increase of lines of credit of $29.3 million, partially offset by pay-downs and pay-offs of term loans of $84.8 million and charge-offs of $353 thousand.
The increase in loans held-for-sale for the current quarter was primarily due to new funding of $22.5 million, partially offset by sales of $16.6 million and pay-downs of $44 thousand.
The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | ||||||||||
Commercial property | $ | 7,810 | $ | 8,888 | (12.1 | )% | $ | 8,687 | (10.1 | )% | |||||
Business property | 11,068 | 11,058 | 0.1 | % | 10,196 | 8.6 | % | ||||||||
Multifamily | — | — | — | % | 1,800 | (100.0 | )% | ||||||||
Construction | 12,312 | 14,423 | (14.6 | )% | 22,895 | (46.2 | )% | ||||||||
Commercial and industrial | 351,802 | 364,731 | (3.5 | )% | 384,034 | (8.4 | )% | ||||||||
Other consumer | 1,671 | 1,475 | 13.3 | % | 992 | 68.4 | % | ||||||||
Total commitments to extend credit | 384,663 | 400,575 | (4.0 | )% | 428,604 | (10.3 | )% | ||||||||
Letters of credit | 6,795 | 6,795 | — | % | 6,558 | 3.6 | % | ||||||||
Total off-balance sheet credit exposure | $ | 391,458 | $ | 407,370 | (3.9 | )% | $ | 435,162 | (10.0 | )% | |||||
Credit Quality
The following table presents a summary of non-performing loans and assets, and classified assets as of the dates indicated:
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | |||||||||||||
Nonaccrual loans | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||
Commercial property | $ | 1,538 | $ | 1,851 | (16.9 | )% | $ | 932 | 65.0 | % | ||||||||
Business property | 1,485 | 2,336 | (36.4 | )% | 3,455 | (57.0 | )% | |||||||||||
Total commercial real estate | 3,023 | 4,187 | (27.8 | )% | 4,387 | (31.1 | )% | |||||||||||
Commercial and industrial | 66 | 79 | (16.5 | )% | 111 | (40.5 | )% | |||||||||||
Consumer: | ||||||||||||||||||
Residential mortgage | 3,153 | 403 | 682.4 | % | 436 | 623.2 | % | |||||||||||
Other consumer | 6 | 24 | (75.0 | )% | 6 | — | % | |||||||||||
Total consumer | 3,159 | 427 | 639.8 | % | 442 | 614.7 | % | |||||||||||
Total nonaccrual loans held-for-investment | 6,248 | 4,693 | 33.1 | % | 4,940 | 26.5 | % | |||||||||||
Loans past due 90 days or more and still accruing | — | — | — | % | — | — | % | |||||||||||
Non-performing loans (“NPLs”) | 6,248 | 4,693 | 33.1 | % | 4,940 | 26.5 | % | |||||||||||
NPLs held-for-sale | — | — | — | % | — | — | % | |||||||||||
Total NPLs | 6,248 | 4,693 | 33.1 | % | 4,940 | 26.5 | % | |||||||||||
Other real estate owned (“OREO”) | — | — | — | % | — | — | % | |||||||||||
Non-performing assets (“NPAs”) | $ | 6,248 | $ | 4,693 | 33.1 | % | $ | 4,940 | 26.5 | % | ||||||||
Loans past due and still accruing | ||||||||||||||||||
Past due 30 to 59 days | $ | 5,236 | $ | 4,599 | 13.9 | % | $ | 3,412 | 53.5 | % | ||||||||
Past due 60 to 89 days | 101 | 303 | (66.7 | )% | 1,103 | (90.8 | )% | |||||||||||
Past due 90 days or more | — | — | — | % | — | — | % | |||||||||||
Total loans past due and still accruing | $ | 5,337 | $ | 4,902 | 8.9 | % | $ | 4,515 | 18.2 | % | ||||||||
Special mention loans | $ | 5,010 | $ | 5,034 | (0.5 | )% | $ | 1,101 | 355.0 | % | ||||||||
Classified assets | ||||||||||||||||||
Classified loans held-for-investment | $ | 8,280 | $ | 6,930 | 19.5 | % | $ | 7,771 | 6.5 | % | ||||||||
Classified loans held-for-sale | — | — | — | % | — | — | % | |||||||||||
OREO | — | — | — | % | — | — | % | |||||||||||
Classified assets | $ | 8,280 | $ | 6,930 | 19.5 | % | $ | 7,771 | 6.5 | % | ||||||||
NPLs to loans held-for-investment | 0.23 | % | 0.18 | % | 0.21 | % | ||||||||||||
NPAs to total assets | 0.20 | % | 0.15 | % | 0.17 | % | ||||||||||||
Classified assets to total assets | 0.26 | % | 0.23 | % | 0.27 | % | ||||||||||||
Allowance for Credit Losses
The following table presents activities in ACL for the periods indicated:
Three Months Ended | ||||||||||||||||||
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | |||||||||||||
ACL on loans | ||||||||||||||||||
Balance at beginning of period | $ | 30,628 | $ | 28,930 | 5.9 | % | $ | 27,533 | 11.2 | % | ||||||||
Charge-offs | (353 | ) | (395 | ) | (10.6 | )% | (185 | ) | 90.8 | % | ||||||||
Recoveries | 76 | 49 | 55.1 | % | 62 | 22.6 | % | |||||||||||
Provision for credit losses on loans | 1,591 | 2,044 | (22.2 | )% | 922 | 72.6 | % | |||||||||||
Balance at end of period | $ | 31,942 | $ | 30,628 | 4.3 | % | $ | 28,332 | 12.7 | % | ||||||||
Percentage to loans held-for-investment at end of period | 1.17 | % | 1.16 | % | 1.18 | % | ||||||||||||
ACL on off-balance sheet credit exposure | ||||||||||||||||||
Balance at beginning of period | $ | 1,190 | $ | 1,232 | (3.4 | )% | $ | 1,277 | (6.8 | )% | ||||||||
Provision (reversal) for credit losses on off-balance sheet credit exposure | 7 | (42 | ) | (116.7 | )% | 168 | (95.8 | )% | ||||||||||
Balance at end of period | $ | 1,197 | $ | 1,190 | 0.6 | % | $ | 1,445 | (17.2 | )% | ||||||||
Investment Securities
Total investment securities were $148.2 million at March 31, 2025, an increase of $1.8 million, or 1.3%, from $146.3 million at December 31, 2024 and an increase of $10.0 million, or 7.3%, from $138.2 million at March 31, 2024. The increase for the current quarter was primarily due to purchases of $3.0 million and a fair value increase of $3.2 million, partially offset by principal pay-downs of $4.3 million and net premium amortization of $31 thousand.
Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||||||||||
($ in thousands) | Amount | % to
| Amount | % to Total | Amount | % to
| ||||||||||||
Noninterest-bearing demand deposits | $ | 564,407 | 20.8 | % | $ | 547,853 | 20.9 | % | $ | 538,380 | 22.4 | % | ||||||
Interest-bearing deposits | ||||||||||||||||||
Savings | 5,185 | 0.2 | % | 5,765 | 0.2 | % | 6,153 | 0.3 | % | |||||||||
NOW | 15,219 | 0.6 | % | 13,761 | 0.5 | % | 16,232 | 0.7 | % | |||||||||
Retail money market accounts | 492,334 | 18.0 | % | 447,360 | 17.1 | % | 461,221 | 19.0 | % | |||||||||
Brokered money market accounts | 1 | 0.1 | % | 1 | 0.1 | % | 1 | 0.1 | % | |||||||||
Retail time deposits of | ||||||||||||||||||
$250,000 or less | 532,512 | 19.6 | % | 493,644 | 18.9 | % | 471,528 | 19.6 | % | |||||||||
More than $250,000 | 652,458 | 24.0 | % | 605,124 | 23.1 | % | 549,550 | 22.9 | % | |||||||||
State and brokered time deposits | 452,283 | 16.7 | % | 502,283 | 19.2 | % | 359,775 | 15.0 | % | |||||||||
Total interest-bearing deposits | 2,149,992 | 79.2 | % | 2,067,938 | 79.1 | % | 1,864,460 | 77.6 | % | |||||||||
Total deposits | $ | 2,714,399 | 100.0 | % | $ | 2,615,791 | 100.0 | % | $ | 2,402,840 | 100.0 | % | ||||||
Estimated total deposits not covered by deposit insurance | $ | 1,125,068 | 41.4 | % | $ | 1,036,451 | 39.6 | % | $ | 1,017,696 | 42.4 | % | ||||||
Total retail deposits were $2.26 billion at March 31, 2025, an increase of $148.6 million, or 7.0%, from $2.11 billion at December 31, 2024 and an increase of $219.1 million, or 10.7%, from $2.04 billion at March 31, 2024.
The increase in retail time deposits for the current quarter was primarily due to new accounts of $162.2 million, renewals of the matured accounts of $339.0 million and balance increases of $15.9 million, partially offset by matured and closed accounts of $430.9 million.
Liquidity
The following table presents a summary of the Company’s liquidity position as of the dates indicated:
($ in thousands) | 3/31/2025 | 12/31/2024 | % Change | ||||||||
Cash and cash equivalents | $ | 214,348 | $ | 198,792 | 7.8 | % | |||||
Cash and cash equivalents to total assets | 6.7 | % | 6.5 | % | |||||||
Available borrowing capacity | |||||||||||
FHLB advances | $ | 735,732 | $ | 722,439 | 1.8 | % | |||||
Federal Reserve Discount Window | 679,009 | 586,525 | 15.8 | % | |||||||
Overnight federal funds lines | 65,000 | 50,000 | 30.0 | % | |||||||
Total | $ | 1,479,741 | $ | 1,358,964 | 8.9 | % | |||||
Total available borrowing capacity to total assets | 46.5 | % | 44.4 | % | |||||||
Shareholders’ Equity
Shareholders’ equity was $370.9 million at March 31, 2025, an increase of $7.1 million, or 1.9%, from $363.8 million at December 31, 2024 and an increase of $20.9 million, or 6.0%, from $350.0 million at March 31, 2024. The increase for the current quarter was primarily due to net income, a decrease in accumulated other comprehensive loss of $2.3 million and proceeds from stock option exercises of $684 thousand, partially offset by repurchase of common stock of $953 thousand, cash dividends declared on common stock of $2.9 million and preferred stock dividends of $40 thousand.
Stock Repurchases
During the current quarter, the Company repurchased and retired 50,676 shares of common stock at a weighted-average price of $18.80, totaling $953 thousand. 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 March 31, 2025, the Company is authorized to purchase 527,101 additional shares under its current stock repurchase program, which expires on August 2, 2025.
Series C Preferred Stock
The Company began paying quarterly dividends on the Series C Preferred Stock in the second quarter of 2024. The Company paid dividends of $40 thousand and $346 thousand for the current and previous quarters, respectively.
Capital Ratios
The following table presents capital ratios for the Company and the Bank as of the dates indicated:
3/31/2025 | 12/31/2024 | 3/31/2024 | Well
| |||||||||
PCB Bancorp | ||||||||||||
Common tier 1 capital (to risk-weighted assets) | 11.25 | % | 11.44 | % | 11.88 | % | N/A | |||||
Total capital (to risk-weighted assets) | 14.98 | % | 15.24 | % | 15.93 | % | N/A | |||||
Tier 1 capital (to risk-weighted assets) | 13.77 | % | 14.04 | % | 14.71 | % | N/A | |||||
Tier 1 capital (to average assets) | 12.14 | % | 12.45 | % | 12.73 | % | N/A | |||||
PCB Bank | ||||||||||||
Common tier 1 capital (to risk-weighted assets) | 13.42 | % | 13.72 | % | 14.37 | % | 6.5 | % | ||||
Total capital (to risk-weighted assets) | 14.63 | % | 14.92 | % | 15.59 | % | 10.0 | % | ||||
Tier 1 capital (to risk-weighted assets) | 13.42 | % | 13.72 | % | 14.37 | % | 8.0 | % | ||||
Tier 1 capital (to average assets) | 11.82 | % | 12.16 | % | 12.44 | % | 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 impacts of sanctions, tariffs and other trade policies of the United States and its global trading partners and tensions related to the same; 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, 2024 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) | ||||||||||||||||||
3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | ||||||||||||||
Assets | ||||||||||||||||||
Cash and due from banks | $ | 28,852 | $ | 27,100 | 6.5 | % | $ | 29,432 | (2.0 | )% | ||||||||
Interest-bearing deposits in other financial institutions | 185,496 | 171,692 | 8.0 | % | 210,359 | (11.8 | )% | |||||||||||
Total cash and cash equivalents | 214,348 | 198,792 | 7.8 | % | 239,791 | (10.6 | )% | |||||||||||
Securities available-for-sale, at fair value | 148,190 | 146,349 | 1.3 | % | 138,170 | 7.3 | % | |||||||||||
Loans held-for-sale | 12,101 | 6,292 | 92.3 | % | 3,256 | 271.7 | % | |||||||||||
Loans held-for-investment | 2,727,610 | 2,629,387 | 3.7 | % | 2,397,964 | 13.7 | % | |||||||||||
Allowance for credit losses on loans | (31,942 | ) | (30,628 | ) | 4.3 | % | (28,332 | ) | 12.7 | % | ||||||||
Net loans held-for-investment | 2,695,668 | 2,598,759 | 3.7 | % | 2,369,632 | 13.8 | % | |||||||||||
Premises and equipment, net | 8,420 | 8,280 | 1.7 | % | 8,892 | (5.3 | )% | |||||||||||
Federal Home Loan Bank and other bank stock | 14,042 | 14,042 | — | % | 12,716 | 10.4 | % | |||||||||||
Bank-owned life insurance | 32,013 | 31,766 | 0.8 | % | 31,045 | 3.1 | % | |||||||||||
Deferred tax assets, net | 6,736 | 7,249 | (7.1 | )% | — | NM | ||||||||||||
Servicing assets | 5,631 | 5,837 | (3.5 | )% | 6,544 | (14.0 | )% | |||||||||||
Operating lease assets | 17,779 | 17,254 | 3.0 | % | 18,255 | (2.6 | )% | |||||||||||
Accrued interest receivable | 10,967 | 10,466 | 4.8 | % | 10,394 | 5.5 | % | |||||||||||
Other assets | 17,863 | 18,885 | (5.4 | )% | 15,597 | 14.5 | % | |||||||||||
Total assets | $ | 3,183,758 | $ | 3,063,971 | 3.9 | % | $ | 2,854,292 | 11.5 | % | ||||||||
Liabilities | ||||||||||||||||||
Deposits | ||||||||||||||||||
Noninterest-bearing demand | $ | 564,407 | $ | 547,853 | 3.0 | % | $ | 538,380 | 4.8 | % | ||||||||
Savings, NOW and money market accounts | 512,739 | 466,887 | 9.8 | % | 483,607 | 6.0 | % | |||||||||||
Time deposits of $250,000 or less | 924,795 | 935,927 | (1.2 | )% | 771,303 | 19.9 | % | |||||||||||
Time deposits of more than $250,000 | 712,458 | 665,124 | 7.1 | % | 609,550 | 16.9 | % | |||||||||||
Total deposits | 2,714,399 | 2,615,791 | 3.8 | % | 2,402,840 | 13.0 | % | |||||||||||
Other short-term borrowings | — | 15,000 | (100.0 | )% | — | — | % | |||||||||||
Federal Home Loan Bank advances | 30,000 | — | NM | 50,000 | (40.0 | )% | ||||||||||||
Deferred tax liabilities, net | — | — | — | % | 266 | (100.0 | )% | |||||||||||
Operating lease liabilities | 19,465 | 18,671 | 4.3 | % | 19,555 | (0.5 | )% | |||||||||||
Accrued interest payable and other liabilities | 49,030 | 50,695 | (3.3 | )% | 31,626 | 55.0 | % | |||||||||||
Total liabilities | 2,812,894 | 2,700,157 | 4.2 | % | 2,504,287 | 12.3 | % | |||||||||||
Commitments and contingent liabilities | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||
Preferred stock | 69,141 | 69,141 | — | % | 69,141 | — | % | |||||||||||
Common stock | 143,156 | 143,195 | — | % | 142,734 | 0.3 | % | |||||||||||
Retained earnings | 165,611 | 160,797 | 3.0 | % | 148,209 | 11.7 | % | |||||||||||
Accumulated other comprehensive loss, net | (7,044 | ) | (9,319 | ) | (24.4 | )% | (10,079 | ) | (30.1 | )% | ||||||||
Total shareholders’ equity | 370,864 | 363,814 | 1.9 | % | 350,005 | 6.0 | % | |||||||||||
Total liabilities and shareholders’ equity | $ | 3,183,758 | $ | 3,063,971 | 3.9 | % | $ | 2,854,292 | 11.5 | % | ||||||||
Outstanding common shares | 14,387,176 | 14,380,651 | 14,263,791 | |||||||||||||||
Book value per common share (1) | $ | 25.78 | $ | 25.30 | $ | 24.54 | ||||||||||||
TCE per common share (2) | $ | 20.97 | $ | 20.49 | $ | 19.69 | ||||||||||||
Total loan to total deposit ratio | 100.93 | % | 100.76 | % | 99.93 | % | ||||||||||||
Noninterest-bearing deposits to total deposits | 20.79 | % | 20.94 | % | 22.41 | % | ||||||||||||
(1) | The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company had no intangible equity components for the presented periods. | |
(2) | Non-GAAP. See “Non-GAAP Financial Measures” for a 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 | ||||||||||||||||||
3/31/2025 | 12/31/2024 | % Change | 3/31/2024 | % Change | ||||||||||||||
Interest and dividend income | ||||||||||||||||||
Loans, including fees | $ | 43,026 | $ | 42,309 | 1.7 | % | $ | 39,251 | 9.6 | % | ||||||||
Investment securities | 1,408 | 1,388 | 1.4 | % | 1,246 | 13.0 | % | |||||||||||
Other interest-earning assets | 2,458 | 2,622 | (6.3 | )% | 3,058 | (19.6 | )% | |||||||||||
Total interest income | 46,892 | 46,319 | 1.2 | % | 43,555 | 7.7 | % | |||||||||||
Interest expense | ||||||||||||||||||
Deposits | 22,564 | 22,927 | (1.6 | )% | 21,967 | 2.7 | % | |||||||||||
Other borrowings | 45 | 228 | (80.3 | )% | 589 | (92.4 | )% | |||||||||||
Total interest expense | 22,609 | 23,155 | (2.4 | )% | 22,556 | 0.2 | % | |||||||||||
Net interest income | 24,283 | 23,164 | 4.8 | % | 20,999 | 15.6 | % | |||||||||||
Provision for credit losses | 1,598 | 2,002 | (20.2 | )% | 1,090 | 46.6 | % | |||||||||||
Net interest income after provision for credit losses | 22,685 | 21,162 | 7.2 | % | 19,909 | 13.9 | % | |||||||||||
Noninterest income | ||||||||||||||||||
Gain on sale of loans | 887 | 1,161 | (23.6 | )% | 1,078 | (17.7 | )% | |||||||||||
Service charges and fees on deposits | 372 | 404 | (7.9 | )% | 378 | (1.6 | )% | |||||||||||
Loan servicing income | 725 | 861 | (15.8 | )% | 919 | (21.1 | )% | |||||||||||
Bank-owned life insurance income | 247 | 246 | 0.4 | % | 228 | 8.3 | % | |||||||||||
Other income | 349 | 371 | (5.9 | )% | 342 | 2.0 | % | |||||||||||
Total noninterest income | 2,580 | 3,043 | (15.2 | )% | 2,945 | (12.4 | )% | |||||||||||
Noninterest expense | ||||||||||||||||||
Salaries and employee benefits | 9,075 | 8,417 | 7.8 | % | 9,218 | (1.6 | )% | |||||||||||
Occupancy and equipment | 2,289 | 2,198 | 4.1 | % | 2,358 | (2.9 | )% | |||||||||||
Professional fees | 628 | 752 | (16.5 | )% | 1,084 | (42.1 | )% | |||||||||||
Marketing and business promotion | 243 | 582 | (58.2 | )% | 319 | (23.8 | )% | |||||||||||
Data processing | 333 | 205 | 62.4 | % | 402 | (17.2 | )% | |||||||||||
Director fees and expenses | 226 | 227 | (0.4 | )% | 232 | (2.6 | )% | |||||||||||
Regulatory assessments | 344 | 322 | 6.8 | % | 298 | 15.4 | % | |||||||||||
Other expense | 1,336 | 1,191 | 12.2 | % | 2,441 | (45.3 | )% | |||||||||||
Total noninterest expense | 14,474 | 13,894 | 4.2 | % | 16,352 | (11.5 | )% | |||||||||||
Income before income taxes | 10,791 | 10,311 | 4.7 | % | 6,502 | 66.0 | % | |||||||||||
Income tax expense | 3,056 | 3,281 | (6.9 | )% | 1,817 | 68.2 | % | |||||||||||
Net income | 7,735 | 7,030 | 10.0 | % | 4,685 | 65.1 | % | |||||||||||
Preferred stock dividends | 40 | 346 | (88.4 | )% | — | NM | ||||||||||||
Net income available to common shareholders | $ | 7,695 | $ | 6,684 | 15.1 | % | $ | 4,685 | 64.2 | % | ||||||||
Earnings per common share | ||||||||||||||||||
Basic | $ | 0.53 | $ | 0.47 | $ | 0.33 | ||||||||||||
Diluted | $ | 0.53 | $ | 0.46 | $ | 0.33 | ||||||||||||
Average common shares | ||||||||||||||||||
Basic | 14,272,267 | 14,254,584 | 14,235,419 | |||||||||||||||
Diluted | 14,403,769 | 14,406,756 | 14,330,204 | |||||||||||||||
Dividend paid per common share | $ | 0.20 | $ | 0.18 | $ | 0.18 | ||||||||||||
Return on average assets (1) | 1.01 | % | 0.94 | % | 0.67 | % | ||||||||||||
Return on average shareholders’ equity (1) | 8.53 | % | 7.69 | % | 5.39 | % | ||||||||||||
Return on average TCE (1), (2) | 10.45 | % | 9.02 | % | 6.72 | % | ||||||||||||
Efficiency ratio (3) | 53.88 | % | 53.02 | % | 68.29 | % | ||||||||||||
(1) | Ratios are presented on an annualized basis. | |
(2) | Non-GAAP. See “Non-GAAP Financial Measures” for a 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 | ||||||||||||||||||||||||||||||
3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||||||||||||||||||||||
Average
| Interest
| Avg.
| Average
| Interest
| Avg.
| Average
| Interest
| Avg.
| ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||
Total loans (1) | $ | 2,649,037 | $ | 43,026 | 6.59 | % | $ | 2,538,310 | $ | 42,309 | 6.63 | % | $ | 2,370,027 | $ | 39,251 | 6.66 | % | ||||||||||||
Mortgage-backed securities | 112,825 | 1,075 | 3.86 | % | 113,231 | 1,030 | 3.62 | % | 101,852 | 839 | 3.31 | % | ||||||||||||||||||
Collateralized mortgage obligation | 21,028 | 210 | 4.05 | % | 21,819 | 228 | 4.16 | % | 23,763 | 254 | 4.30 | % | ||||||||||||||||||
SBA loan pool securities | 5,927 | 54 | 3.69 | % | 6,253 | 62 | 3.94 | % | 7,317 | 78 | 4.29 | % | ||||||||||||||||||
Municipal bonds (2) | 2,424 | 22 | 3.68 | % | 2,440 | 21 | 3.42 | % | 3,300 | 28 | 3.41 | % | ||||||||||||||||||
Corporate bonds | 4,336 | 47 | 4.40 | % | 4,200 | 47 | 4.45 | % | 4,227 | 47 | 4.47 | % | ||||||||||||||||||
Other interest-earning assets | 209,375 | 2,458 | 4.76 | % | 207,234 | 2,622 | 5.03 | % | 217,002 | 3,058 | 5.67 | % | ||||||||||||||||||
Total interest-earning assets | 3,004,952 | 46,892 | 6.33 | % | 2,893,487 | 46,319 | 6.37 | % | 2,727,488 | 43,555 | 6.42 | % | ||||||||||||||||||
Noninterest-earning assets | ||||||||||||||||||||||||||||||
Cash and due from banks | 24,652 | 23,639 | 21,365 | |||||||||||||||||||||||||||
ACL on loans | (30,676 | ) | (28,833 | ) | (27,577 | ) | ||||||||||||||||||||||||
Other assets | 98,588 | 92,348 | 88,532 | |||||||||||||||||||||||||||
Total noninterest-earning assets | 92,564 | 87,154 | 82,320 | |||||||||||||||||||||||||||
Total assets | $ | 3,097,516 | $ | 2,980,641 | $ | 2,809,808 | ||||||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||
NOW and money market accounts | $ | 483,927 | 4,297 | 3.60 | % | $ | 479,238 | 4,479 | 3.72 | % | $ | 453,801 | 4,665 | 4.13 | % | |||||||||||||||
Savings | 5,612 | 3 | 0.22 | % | 5,952 | 4 | 0.27 | % | 6,196 | 4 | 0.26 | % | ||||||||||||||||||
Time deposits | 1,650,662 | 18,264 | 4.49 | % | 1,501,711 | 18,444 | 4.89 | % | 1,367,212 | 17,298 | 5.09 | % | ||||||||||||||||||
Total interest-bearing deposits | 2,140,201 | 22,564 | 4.28 | % | 1,986,901 | 22,927 | 4.59 | % | 1,827,209 | 21,967 | 4.84 | % | ||||||||||||||||||
Other borrowings | 3,933 | 45 | 4.64 | % | 17,946 | 228 | 5.05 | % | 42,187 | 589 | 5.62 | % | ||||||||||||||||||
Total interest-bearing liabilities | 2,144,134 | 22,609 | 4.28 | % | 2,004,847 | 23,155 | 4.59 | % | 1,869,396 | 22,556 | 4.85 | % | ||||||||||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||||||||||||
Noninterest-bearing demand | 516,630 | 543,971 | 542,811 | |||||||||||||||||||||||||||
Other liabilities | 69,042 | 67,995 | 47,957 | |||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 585,672 | 611,966 | 590,768 | |||||||||||||||||||||||||||
Total liabilities | 2,729,806 | 2,616,813 | 2,460,164 | |||||||||||||||||||||||||||
Total shareholders’ equity | 367,710 | 363,828 | 349,644 | |||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,097,516 | $ | 2,980,641 | $ | 2,809,808 | ||||||||||||||||||||||||
Net interest income | $ | 24,283 | $ | 23,164 | $ | 20,999 | ||||||||||||||||||||||||
Net interest spread (3) | 2.05 | % | 1.78 | % | 1.57 | % | ||||||||||||||||||||||||
Net interest margin (4) | 3.28 | % | 3.18 | % | 3.10 | % | ||||||||||||||||||||||||
Total deposits | $ | 2,656,831 | $ | 22,564 | 3.44 | % | $ | 2,530,872 | $ | 22,927 | 3.60 | % | $ | 2,370,020 | $ | 21,967 | 3.73 | % | ||||||||||||
Total funding (5) | $ | 2,660,764 | $ | 22,609 | 3.45 | % | $ | 2,548,818 | $ | 23,155 | 3.61 | % | $ | 2,412,207 | $ | 22,556 | 3.76 | % | ||||||||||||
(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 Financial 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 had no 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 Generally Accepted Accounting Principles, or 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 | ||||||||||||
3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||||
Average total shareholders' equity | (a) | $ | 367,710 | $ | 363,828 | $ | 349,644 | ||||||
Less: average preferred stock | (b) | 69,141 | 69,141 | 69,141 | |||||||||
Average TCE | (c)=(a)-(b) | $ | 298,569 | $ | 294,687 | $ | 280,503 | ||||||
Net income | (d) | $ | 7,735 | $ | 7,030 | $ | 4,685 | ||||||
Return on average shareholder's equity (1) | (d)/(a) | 8.53 | % | 7.69 | % | 5.39 | % | ||||||
Net income available to common shareholders | (e) | $ | 7,695 | $ | 6,684 | $ | 4,685 | ||||||
Return on average TCE (1) | (e)/(c) | 10.45 | % | 9.02 | % | 6.72 | % | ||||||
(1) | Annualized. |
| ($ in thousands, except per share data) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||||
Total shareholders' equity | (a) | $ | 370,864 | $ | 363,814 | $ | 350,005 | ||||||
Less: preferred stock | (b) | 69,141 | 69,141 | 69,141 | |||||||||
TCE | (c)=(a)-(b) | $ | 301,723 | $ | 294,673 | $ | 280,864 | ||||||
Outstanding common shares | (d) | 14,387,176 | 14,380,651 | 14,263,791 | |||||||||
Book value per common share | (a)/(d) | $ | 25.78 | $ | 25.30 | $ | 24.54 | ||||||
TCE per common share | (c)/(d) | $ | 20.97 | $ | 20.49 | $ | 19.69 | ||||||
Total assets | (e) | $ | 3,183,758 | $ | 3,063,971 | $ | 2,854,292 | ||||||
Total shareholders' equity to total assets | (a)/(e) | 11.65 | % | 11.87 | % | 12.26 | % | ||||||
TCE to total assets | (c)/(e) | 9.48 | % | 9.62 | % | 9.84 | % | ||||||
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