PCBバンコープの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): January 26, 2023

PCB BANCORP

(Exact name of registrant as specified in its charter)

California

(State or other jurisdiction of

incorporation)

001-38621

(Commission

File Number)

20-8856755

(I.R.S. Employer

Identification No.)

3701 Wilshire Boulevard, Suite 900

Los Angeles, California

(Address of principal offices)

90010

(Zip Code)

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

Not Applicable

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

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

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

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

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

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

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


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

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

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒ On January 26, 2023, PCB Bancorp, a California corporation (the “Company”), issued a press release concerning its unaudited results for the fourth quarter of 2022.

Item 2.02 Results of Operations and Financial Condition

A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

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

Item 7.01 Regulation FD Disclosure

Attached as Exhibit 99.2, and incorporated herein by reference, is a copy of an investor presentation that may be utilized by management at future discussions with investors.

Item 8.01 Other Events

On January 26, 2023, the Company issued a press release announcing that on January 26, 2023, its Board of Directors declared a quarterly cash dividend of $0.15 per common share. The dividend will be paid on or about February 17, 2023, to shareholders of record as of the close of business on February 10, 2023. A copy of the press release is attached as Exhibit 99.3 to this Current Report and is incorporated herein by reference.

On January 26, 2023, the Company issued a press release announcing that on January 26, 2023, its Board of Directors approved an amendment to extend the expiration date of the Company’s current stock repurchase program that was set to expire on February 1, 2023, but has been extended to February 1, 2024. The original repurchase program, which was approved and announced on July 28, 2022, authorized the repurchase of up to 5% of the Company’s outstanding common stock as of the date of the board meeting. Currently, there are 331,663 shares remaining in the repurchase program.

Under the stock repurchase program, the Company may purchase shares of its common stock through various means such as open market transactions, including block purchases, and privately negotiated transactions. The number of shares repurchased and the timing, manner, price and amount of any repurchases will be determined at the Company’s discretion. Factors include, but are not limited to, stock price, trading volume and general market conditions, along with the Company’s general business conditions. The program may be suspended or discontinued at any time and does not obligate the company to acquire any specific number of shares of its common stock.

As part of the stock repurchase program, the Company intends to enter into a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The 10b5-1 trading plan would permit common stock to be repurchased at a time that the Company might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. The 10b5-1 trading plan will be administered by an independent broker and will be subject to price, market volume and timing restrictions. A copy of the press release is attached as Exhibit 99.4 to this Current Report and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press release of PCB Bancorp, issued January 26, 2023, concerning the results of operations and financial condition for the fourth quarter of 2022 and name change for its subsidiary

99.2 Investor presentation of PCB Bancorp concerning the unaudited results for the fourth quarter of 2022

99.3 Press release of PCB Bancorp, issued January 26, 2023, announcing the declaration of a quarterly cash dividend

99.4 Press release of PCB Bancorp, issued January 26, 2023, announcing the amendment to the stock repurchase program

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

EXHIBIT INDEX


Exhibit No.						Description

99.1						Press release of PCB Bancorp, issued January 2 6 , 202 3 , concerning the results of operations and financial condition for the fourth quarter of 2022 and name change for its subsidiary
99.2						Investor presentation of PCB Bancorp concerning the unaudited results for the fourth quarter of 2022
99.3						Press release of PCB Bancorp, issued January 2 6 , 202 3 , announcing the declaration of a quarterly cash dividend
99.4						Press release of PCB Bancorp, issued January 2 6 , 2023, announcing the a mendment to the stock repurchase program

SIGNATURES

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


		PCB Bancorp

Date:	January 26, 2023	/s/ Timothy Chang
		Timothy Chang
		Executive Vice President and Chief Financial Officer

EX-99.1 2 pcber20220126.htm EX-99.1 Document

Exhibit 99.1

PCB Bancorp Reports Earnings of $8.7 million for Q4 2022 and $35.0 million for 2022

Los Angeles, California - January 26, 2023 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income of $8.7 million, or $0.58 per diluted common share, for the fourth quarter of 2022, compared with $7.0 million, or $0.46 per diluted common share, for the previous quarter and $10.7 million, or $0.70 per diluted common share, for the year-ago quarter. For 2022, net income was $35.0 million, or $2.31 per diluted common share, compared with $40.1 million, or $2.62 per diluted common share, for the previous year.

Q4 2022 and Full Year Highlights

•Net income totaled $8.7 million, or $0.58 per diluted common share, for the current quarter and $35.0 million, or $2.31 per diluted common share, for the current year;

◦The Company recorded a provision (reversal) for loan losses of $1.1 million for the current quarter compared with $3.8 million for the previous quarter and $(1.5) million for the year-ago quarter. For the current year, provision (reversal) for loan losses was $3.6 million compared with $(4.6) million for the previous year.

◦Allowance for loan losses (“Allowance”) to loans held-for-investment(1) ratio was 1.22% at December 31, 2022 compared with 1.21% at September 30, 2022 and 1.29% at December 31, 2021. Adjusted Allowance to loans held-for-investment ratio(2) was 1.22% at December 31, 2022 compared with 1.21% at September 30, 2022 and 1.34% at December 31, 2021.

◦Net interest income was $24.3 million for the current quarter compared with $24.0 million for the previous quarter and $20.1 million for the year-ago quarter. Net interest margin was 4.15% for the current quarter compared with 4.25% for the previous quarter and 3.87% for the year-ago quarter. For the current year, net interest income and net interest margin were $89.6 million and 4.08%, respectively, compared with $77.1 million and 3.83%, respectively, for the previous year.

◦Gain on sale of loans was $759 thousand for the current quarter compared with $1.4 million for the previous quarter and $3.4 million for the year-ago quarter. For the current year, gain on sale of loans was $8.0 million compared with $12.9 million for the previous year.

•Total assets were $2.42 billion at December 31, 2022, an increase of $93.0 million, or 4.0%, from $2.33 billion at September 30, 2022 and an increase of $270.3 million, or 12.6%, from $2.15 billion at December 31, 2021.

•Loans held-for-investment were $2.05 billion at December 31, 2022, an increase of $86.8 million, or 4.4%, from $1.96 billion at September 30, 2022 and an increase of $313.9 million, or 18.1%, from $1.73 billion at December 31, 2021;

•Total deposits were $2.05 billion at December 31, 2022, an increase of $67.9 million, or 3.4%, from $1.98 billion at September 30, 2022 and an increase of $178.8 million, or 9.6%, from $1.87 billion at December 31, 2021;

•The Company opened 1 new full-service branch in Carrollton, Texas; and

•As of December 31, 2022, the Company repurchased and retired 362,557 shares of common stock for an aggregate cost of $6.7 million under the repurchase program announced on July 28, 2022. On January 26, 2023, the Company announced the amendment to the repurchase program, which extended the program expiration from February 1, 2023 to February 1, 2024.

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

(1) Loans held-for-investment are presented net of deferred fees and costs in this press release.

(2) Adjusted Allowance to loans held-for-investment ratio is a non-GAAP measure, which excludes U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans from loans held-for-investment. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.

“We are pleased to announce another solid financial performance for the fourth quarter of 2022 to close out the year,” stated Henry Kim, President and Chief Executive Officer. “For the fourth quarter, we achieve a well-balance loan held-for-investment portfolio growth of $86.8 million, or 17.6% annualized, that contributed to further diversification, sound deposit balance growth of $67.9 million, or 13.6% annualized, in spite of the ongoing challenges in the deposit market due to competition and rising market interest rate environment, and a record net interest income of $24.3 million.”

“During the 2022 fourth quarter, we successfully executed several key strategic plans of expanding our branch network in Texas by opening a full service branch in Carrollton to complement our Dallas branch that opened in September 2022, maintaining our exceptional credit quality by being proactive with our borrowers, and actively continuing our stock repurchase program.”

“As we look ahead of 2023 and beyond, our strong balance sheet combined with our exceptionally robust capital position will provide us with the capacity to maneuver through potential uncertain economic environment ahead. We remain entirely committed to helping for the success of our customers and increase the shareholder value through disciplined growth.”

Financial Highlights (Unaudited)


($ in thousands, except per share data)	Three Months Ended													Year Ended
	12/31/2022			9/30/2022			% Change		12/31/2021			% Change		12/31/2022			12/31/2021			% Change
Net income	$	8,702		$	6,953		25.2	%	$	10,676		(18.5)	%	$	34,987		$	40,103		(12.8)	%
Diluted earnings per common share	$	0.58		$	0.46		26.1	%	$	0.70		(17.1)	%	$	2.31		$	2.62		(11.8)	%

Net interest income	$	24,265		$	24,023		1.0	%	$	20,095		20.8	%	$	89,632		$	77,137		16.2	%
Provision (reversal) for loan losses	1,149			3,753			(69.4)	%	(1,462)			NM		3,602			(4,596)			NM
Noninterest income	2,389			3,176			(24.8)	%	4,838			(50.6)	%	14,499			18,434			(21.3)	%
Noninterest expense	13,115			13,695			(4.2)	%	11,168			17.4	%	51,126			43,208			18.3	%

Return on average assets (1)	1.44		%	1.19		%			2.01		%			1.54		%	1.96		%
Return on average shareholders’ equity (1)	10.31		%	8.16		%			16.84		%			11.42		%	16.52		%
Return on average tangible common equity (“TCE”) (2)	12.99		%	10.25		%			16.84		%			13.23		%	16.52		%
Net interest margin (1)	4.15		%	4.25		%			3.87		%			4.08		%	3.83		%
Efficiency ratio (3)	49.20		%	50.35		%			44.79		%			49.10		%	45.21		%


($ in thousands, except per share data)	12/31/2022			9/30/2022			% Change		12/31/2021			% Change
Total assets	$	2,420,036		$	2,327,051		4.0	%	$	2,149,735		12.6	%
Net loans held-for-investment	2,021,121			1,935,476			4.4	%	1,709,824			18.2	%
Total deposits	2,045,983			1,978,098			3.4	%	1,867,134			9.6	%
Book value per common share (4)	$	22.94		$	22.40				$	17.24
TCE per common share (2)	$	18.21		$	17.75				$	17.24
Tier 1 leverage ratio (consolidated)	14.33		%	14.74		%			12.11		%
Total shareholders’ equity to total assets	13.86		%	14.30		%			11.92		%
TCE to total assets (2), (5)	11.00		%	11.33		%			11.92		%

(1)Ratios are presented on an annualized basis.

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

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

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

(5)The Company did not have any intangible asset component for the presented periods.

Result of Operations (Unaudited)

Net Interest Income and Net Interest Margin

The following table presents the components of net interest income for the periods indicated:


	Three Months Ended													Year Ended
($ in thousands)	12/31/2022			9/30/2022			% Change		12/31/2021			% Change		12/31/2022			12/31/2021			% Change
Interest income/expense on
Loans	$	28,786		$	24,835		15.9	%	$	20,363		41.4	%	$	95,054		$	79,155		20.1	%
Investment securities	957			806			18.7	%	441			117.0	%	2,907			1,613			80.2	%
Other interest-earning assets	1,833			1,194			53.5	%	191			859.7	%	3,790			704			438.4	%
Total interest-earning assets	31,576			26,835			17.7	%	20,995			50.4	%	101,751			81,472			24.9	%
Interest-bearing deposits	7,295			2,798			160.7	%	847			761.3	%	11,984			4,043			196.4	%
Borrowings	16			14			14.3	%	53			(69.8)	%	135			292			(53.8)	%
Total interest-bearing liabilities	7,311			2,812			160.0	%	900			712.3	%	12,119			4,335			179.6	%
Net interest income	$	24,265		$	24,023		1.0	%	$	20,095		20.8	%	$	89,632		$	77,137		16.2	%
Average balance of
Loans	$	2,004,220		$	1,905,366		5.2	%	$	1,758,421		14.0	%	$	1,872,557		$	1,702,073		10.0	%
Investment securities	134,066			137,363			(2.4)	%	128,650			4.2	%	132,538			130,437			1.6	%
Other interest-earning assets	182,018			200,367			(9.2)	%	175,468			3.7	%	194,205			179,353			8.3	%
Total interest-earning assets	$	2,320,304		$	2,243,096		3.4	%	$	2,062,539		12.5	%	$	2,199,300		$	2,011,863		9.3	%
Interest-bearing deposits	$	1,269,739		$	1,137,739		11.6	%	$	1,008,027		26.0	%	$	1,111,449		$	1,022,099		8.7	%
Borrowings	1,739			2,033			(14.5)	%	13,315			(86.9)	%	6,290			31,302			(79.9)	%
Total interest-bearing liabilities	$	1,271,478		$	1,139,772		11.6	%	$	1,021,342		24.5	%	$	1,117,739		$	1,053,401		6.1	%
Total funding (1)	$	2,043,110		$	1,965,134		4.0	%	$	1,845,846		10.7	%	$	1,949,360		$	1,790,617		8.9	%
Annualized average yield/cost of
Loans	5.70		%	5.17		%			4.59		%			5.08		%	4.65		%
Investment securities	2.83		%	2.33		%			1.36		%			2.19		%	1.24		%
Other interest-earning assets	4.00		%	2.36		%			0.43		%			1.95		%	0.39		%
Total interest-earning assets	5.40		%	4.75		%			4.04		%			4.63		%	4.05		%
Interest-bearing deposits	2.28		%	0.98		%			0.33		%			1.08		%	0.40		%
Borrowings	3.65		%	2.73		%			1.58		%			2.15		%	0.93		%
Total interest-bearing liabilities	2.28		%	0.98		%			0.35		%			1.08		%	0.41		%
Net interest margin	4.15		%	4.25		%			3.87		%			4.08		%	3.83		%
Cost of total funding (1)	1.42		%	0.57		%			0.19		%			0.62		%	0.24		%
Supplementary information
Net accretion of discount on loans	$	869		$	867		0.2	%	$	815		6.6	%	$	3,551		$	3,504		1.3	%
Net amortization of deferred loan fees	$	167		$	243		(31.3)	%	$	1,434		(88.4)	%	$	2,181		$	6,096		(64.2)	%

(1)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

Loans. The increases in average yield for the current quarter and year were primarily due to an increase in overall interest rates on loans from the rising interest rate environment, partially offset by a decrease in net amortization of deferred loan fees from the decreased amount of SBA PPP loan payoffs.

The following table presents a composition of total loans by interest rate type accompanied with the weighted-average contractual rates as of the dates indicated:


	12/31/2022				9/30/2022				12/31/2021
	% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate		% to Total Loans		Weighted-Average Contractual Rate
Fixed rate loans	23.2	%	4.51	%	24.0	%	4.43	%	28.4	%	3.98	%
Hybrid rate loans	39.1	%	4.40	%	38.0	%	4.23	%	29.1	%	4.16	%
Variable rate loans	37.7	%	7.86	%	38.0	%	6.75	%	42.5	%	3.95	%

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

Other Interest-Earning Assets. The increases in average yield for the current quarter and year were primarily due to an increased interest rate on cash held at the Federal Reserve Bank (“FRB”) account. The increases in average balance for the current quarter and year compared with the same periods of 2021 were primarily due to an increase in average balance of deposits and the Emergency Capital Investment Program (“ECIP”) capital investment, partially offset by an increase in loans. The Company maintains most of its cash at the FRB account.

Interest-Bearing Deposits. The increases in average cost for the current quarter and year were primarily due to an increase in market rates.

Provision (reversal) for Loan Losses

Provision (reversal) for loan losses was $1.1 million for the current quarter compared with $3.8 million for the previous quarter and $(1.5) million for the year-ago quarter. For the current and previous years, provision (reversal) for loan losses was $3.6 million and $(4.6) million, respectively. The additional provision for loan losses for the current quarter was primarily due to an increase in gross loan balance. For the current year, the additional provision for loan losses was primarily due to an increase in gross loan balance and changes in qualitative adjustment factors related to current economic conditions.

The Company recorded net charge-offs (recoveries) of $(32) thousand for the current quarter compared with $1.1 million for the previous quarter and $(36) thousand for the year-ago quarter. For the current and previous years, the Company recorded net charge-offs (recoveries) of $1.0 million and $(467) thousand, respectively.

Adjusted Allowance to loans held-for-investment ratio(1) was 1.22%, 1.21% and 1.34% at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

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(1) Adjusted Allowance to loans held-for-investment ratio is a non-GAAP measure, which excludes SBA PPP loans from loans held-for-investment. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.

Noninterest Income

The following table presents the components of noninterest income for the periods indicated:


	Three Months Ended										Year Ended
($ in thousands)	12/31/2022		9/30/2022		% Change		12/31/2021		% Change		12/31/2022		12/31/2021		% Change
Gain on sale of loans	$	759	$	1,415	(46.4)	%	$	3,374	(77.5)	%	$	7,990	$	12,932	(38.2)	%

Service charges and fees on deposits	352		341		3.2	%	308		14.3	%	1,326		1,195		11.0	%
Loan servicing income	734		780		(5.9)	%	688		6.7	%	2,969		2,770		7.2	%
Bank-owned life insurance income	181		178		1.7	%	108		67.6	%	706		108		553.7	%
Other income	363		462		(21.4)	%	360		0.8	%	1,508		1,429		5.5	%
Total noninterest income	$	2,389	$	3,176	(24.8)	%	$	4,838	(50.6)	%	$	14,499	$	18,434	(21.3)	%

Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:


	Three Months Ended										Year Ended
($ in thousands)	12/31/2022		9/30/2022		% Change		12/31/2021		% Change		12/31/2022		12/31/2021		% Change
Gain on sale of SBA loans
Sold loan balance	$	17,448	$	27,313	(36.1)	%	$	36,765	(52.5)	%	$	122,886	$	126,839	(3.1)	%
Premium received	1,102		2,036		(45.9)	%	3,683		(70.1)	%	9,944		14,043		(29.2)	%
Gain recognized	759		1,407		(46.1)	%	3,363		(77.4)	%	7,982		12,775		(37.5)	%
Gain on sale of residential property loans
Sold loan balance	$	—	$	858	(100.0)	%	$	559	(100.0)	%	$	858	$	10,382	(91.7)	%
Gain recognized	—		8		(100.0)	%	9		(100.0)	%	8		151		(94.7)	%

The Company also sold certain commercial property loans of $3.4 million and $8.6 million during the year-ago quarter and previous year, respectively.

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


	Three Months Ended										Year Ended
($ in thousands)	12/31/2022		9/30/2022		% Change		12/31/2021		% Change		12/31/2022		12/31/2021		% Change
Loan servicing income
Servicing income received	$	1,284	$	1,302	(1.4)	%	$	1,202	6.8	%	$	5,103	$	4,779	6.8	%
Servicing assets amortization	(550)		(522)		5.4	%	(514)		7.0	%	(2,134)		(2,009)		6.2	%
Loan servicing income	$	734	$	780	(5.9)	%	$	688	6.7	%	$	2,969	$	2,770	7.2	%
Underlying loans at end of period	$	531,095	$	538,904	(1.4)	%	$	519,706	2.2	%	$	531,095	$	519,706	2.2	%

The Company services SBA loans and certain residential property loans that are sold to the secondary market.

Noninterest Expense

The following table presents the components of noninterest expense for the periods indicated:


	Three Months Ended										Year Ended
($ in thousands)	12/31/2022		9/30/2022		% Change		12/31/2021		% Change		12/31/2022		12/31/2021		% Change
Salaries and employee benefits	$	7,879	$	8,457	(6.8)	%	$	7,061	11.6	%	$	33,056	$	27,974	18.2	%
Occupancy and equipment	1,897		1,650		15.0	%	1,417		33.9	%	6,481		5,575		16.3	%
Professional fees	607		587		3.4	%	585		3.8	%	2,239		2,159		3.7	%
Marketing and business promotion	724		909		(20.4)	%	586		23.5	%	2,150		1,656		29.8	%
Data processing	434		427		1.6	%	408		6.4	%	1,706		1,572		8.5	%
Director fees and expenses	176		179		(1.7)	%	161		9.3	%	706		594		18.9	%
Regulatory assessments	159		150		6.0	%	138		15.2	%	597		537		11.2	%
Other expense	1,239		1,336		(7.3)	%	812		52.6	%	4,191		3,141		33.4	%
Total noninterest expense	$	13,115	$	13,695	(4.2)	%	$	11,168	17.4	%	$	51,126	$	43,208	18.3	%

Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to decreases in bonus and vacation accruals, and incentives tied to the sales of Loan Production Offices (“LPO”) originated SBA loans, partially offset by a decrease in loan origination cost, which offsets the recognition of salaries. The increases for the current quarter and year compared with the same periods of 2021 were primarily due to increases in salaries and other employee benefit expense from the increased number of employees and a decrease in loan origination cost, partially offset by a decrease the incentives tied to sales of LPO originated SBA loans.

Total loan origination cost included in salaries and employee benefits were $345 thousand, $488 thousand and $435 thousand for the current, previous and year-ago quarters, respectively, and $1.7 million and $2.2 million for the current and previous years, respectively. The Company recognized a higher loan origination cost for the previous year primarily due to the SBA PPP loan production in the first quarter of 2021. The number of full-time equivalent employees was 272, 274 and 248 as of December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

Occupancy and Equipment. The increases for the current quarter and year were primarily due to new branch openings. The Company opened 3 new full-service branches in Dallas and Carrollton, Texas and Palisades Park, New Jersey during the current year.

Professional Fees. The increases for the current quarter and year were primarily due to the additional legal expenses associated with the on-going legal matters related to the 2021 Network and Data Incident, partially offset by a decrease in internal audit fees.

Marketing and Business Promotion. The increases for the current year was primarily due to increases in marketing activities and advertisement for the Bank's name change to PCB Bank and new branch openings.

Director Fees and Expenses. The increases for the current quarter and year compared with the same periods of 2021 were primarily due to a new director appointed during the fourth quarter of 2021.

Other Expense. The increases for the current quarter and year compared with the same periods of 2021 were primarily due to an increase in office expense for the new branches. The decrease for the current quarter compared with the previous quarter was primarily due to a legal settlement of $150 thousand for the previous quarter.

Balance Sheet (Unaudited)

Total assets were $2.42 billion at December 31, 2022, an increase of $93.0 million, or 4.0%, from $2.33 billion at September 30, 2022 and an increase of $270.3 million, or 12.6%, from $2.15 billion at December 31, 2021. The increase for the current quarter was primarily due to increases in cash and cash equivalents, securities available-for-sale, loans held-for-sale and loans held-for-investment. The increase for the current year was primarily due to increases in loans held-for-investment and securities available-for-sale, partially offset by decreases in cash and cash equivalents and loans held-for-sale.

Loans

The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:


($ in thousands)	12/31/2022		9/30/2022		% Change		12/31/2021		% Change
Real estate loans
Commercial property	$	1,288,392	$	1,271,781	1.3	%	$	1,105,843	16.5	%
Residential property	333,726		297,506		12.2	%	209,485		59.3	%
SBA property	134,892		136,088		(0.9)	%	129,661		4.0	%
Construction	17,054		14,592		16.9	%	8,252		106.7	%
Commercial and industrial loans
Commercial term	77,700		80,225		(3.1)	%	73,438		5.8	%
Commercial lines of credit	154,142		117,960		30.7	%	100,936		52.7	%
SBA commercial term	16,211		16,542		(2.0)	%	17,640		(8.1)	%
SBA PPP	1,197		1,309		(8.6)	%	65,329		(98.2)	%
Other consumer loans	22,749		23,234		(2.1)	%	21,621		5.2	%
Loans held-for-investment	2,046,063		1,959,237		4.4	%	1,732,205		18.1	%
Loans held-for-sale	22,811		18,982		20.2	%	37,026		(38.4)	%
Total loans	$	2,068,874	$	1,978,219	4.6	%	$	1,769,231	16.9	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding of $181.1 million and advances on lines of credit of $51.1 million, partially offset by pay-downs and pay-offs of $141.4 million. The increase for the current year was primarily due to new funding of $631.9 million and advances of lines of credit of $162.4 million, partially offset by pay-downs and pay-offs of $474.8 million. SBA PPP loans of $112 thousand and $64.1 million were paid off through regular payments or forgiveness from SBA during the current quarter and year, respectively.

The increase in loans held-for-sale for the current quarter was primarily due to new funding of $17.3 million and transfer of $4.0 million from loans held-for-investment, partially offset by sales of $17.4 million. The decrease for the current year was primarily due to sales of $123.7 million, partially offset by new funding of $105.6 million and transfer of $4.5 million from loans held-for-investment.

The following table presents a composition of commitments to extend credit as of the dates indicated:


($ in thousands)	12/31/2022		9/30/2022		% Change		12/31/2021		% Change
Real estate loans
Commercial property	$	16,172	$	18,400	(12.1)	%	$	20,194	(19.9)	%

SBA property	3,730		3,730		—	%	3,068		21.6	%
Construction	18,211		11,093		64.2	%	5,180		251.6	%
Commercial and industrial loans
Commercial term	139		2,027		(93.1)	%	1,097		(87.3)	%
Commercial lines of credit	254,295		254,738		(0.2)	%	169,000		50.5	%
SBA commercial term	234		572		(59.1)	%	149		57.0	%
Other consumer loans	692		847		(18.3)	%	595		16.3	%
Total commitments to extend credit	$	293,473	$	291,407	0.7	%	$	199,283	47.3	%

Credit Quality

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


($ in thousands)	12/31/2022			9/30/2022			% Change		12/31/2021			% Change
Nonaccrual loans
Real estate loans
Commercial property	$	2,400		$	2,444		(1.8)	%	$	—		—	%
Residential property	372			372			—	%	—			—	%
SBA property	585			552			6.0	%	746			(21.6)	%

Commercial and industrial loans
Commercial term	—			3			(100.0)	%	—			—	%
Commercial lines of credit	—			4,000			(100.0)	%	—			—	%
SBA commercial term	—			—			—	%	213			(100.0)	%

Other consumer loans	3			25			(88.0)	%	35			(91.4)	%
Total nonaccrual loans held-for-investment	3,360			7,396			(54.6)	%	994			238.0	%
Loans past due 90 days or more and still accruing	—			—			—	%	—			—	%
Non-performing loans (“NPLs”) held-for-investment	3,360			7,396			(54.6)	%	994			238.0	%
NPLs held-for-sale	4,000			—			—	%	—			—	%
Total NPLs	7,360			7,396			(0.5)	%	994			640.4	%
Other real estate owned (“OREO”)	—			—			—	%	—			—	%
Non-performing assets (“NPAs”)	$	7,360		$	7,396		(0.5)	%	$	994		640.4	%
Loans past due and still accruing
Past due 30 to 59 days	$	47		$	215		(78.1)	%	$	549		(91.4)	%
Past due 60 to 89 days	87			195			(55.4)	%	5			1,640.0	%
Past due 90 days or more	—			—			—	%	—			—	%
Total loans past due and still accruing	$	134		$	410		(67.3)	%	554			(75.8)	%
Troubled debt restructurings (“TDRs”)
Accruing TDRs	$	534		$	542		(1.5)	%	$	576		(7.3)	%
Nonaccrual TDRs	—			7			(100.0)	%	17			(100.0)	%
Total TDRs	$	534		$	549		(2.7)	%	$	593		(9.9)	%
Special mention loans	$	6,857		$	5,986		14.6	%	$	18,092		(62.1)	%
Classified assets
Classified loans held-for-investment	$	6,211		$	10,293		(39.7)	%	$	5,168		20.2	%
Classified loans held-for-sale	4,000			—			—	%	—			—	%
OREO	—			—			—	%	—			—	%
Classified assets	$	10,211		$	10,293		(0.8)	%	$	5,168		97.6	%
NPLs held-for-investment to loans held-for-investment	0.16		%	0.38		%			0.06		%
NPAs to total assets	0.30		%	0.32		%			0.05		%
Classified assets to total assets	0.42		%	0.44		%			0.24		%

During the current quarter, nonaccrual commercial lines of credit of $4.0 million were transferred to loan held-for-sale. The decrease in special mention loans for the current year was primarily due to improvements of 2 loans with an aggregated carrying value of $11.3 million at December 31, 2021.

Investment Securities

Total investment securities were $141.9 million at December 31, 2022, an increase of $12.5 million, or 9.6%, from $129.4 million at September 30, 2022 and an increase of $18.7 million, or 15.2%, from $123.2 million at December 31, 2021. The increase for the current quarter was primarily due to purchases of $16.3 million and a fair value increase of $711 thousand, partially offset by principal pay-downs and calls of $4.5 million and net premium amortization of $60 thousand. The increase for the current year was primarily due to purchases of $57.4 million, partially offset by principal pay-downs and calls of $23.2 million, a fair value decrease of $15.1 million and net premium amortization of $367 thousand.

Deposits

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


	12/31/2022				9/30/2022				12/31/2021
($ in thousands)	Amount		% to Total		Amount		% to Total		Amount		% to Total
Noninterest-bearing demand deposits	$	734,989	35.9	%	$	809,842	40.9	%	$	830,383	44.5	%
Interest-bearing deposits
Savings	8,579		0.4	%	13,028		0.7	%	16,299		0.9	%
NOW	11,405		0.6	%	17,550		0.9	%	20,185		1.1	%
Retail money market accounts	494,749		24.2	%	522,412		26.4	%	386,041		20.5	%
Brokered money market accounts	8		—	%	10,010		0.5	%	1		0.1	%
Retail time deposits of
$250,000 or less	295,354		14.4	%	236,864		12.0	%	256,956		13.8	%
More than $250,000	353,876		17.3	%	239,271		12.1	%	172,269		9.2	%

State and brokered time deposits	147,023		7.2	%	129,121		6.5	%	185,000		9.9	%
Total interest-bearing deposits	1,310,994		64.1	%	1,168,256		59.1	%	1,036,751		55.5	%
Total deposits	$	2,045,983	100.0	%	$	1,978,098	100.0	%	$	1,867,134	100.0	%

The decrease in noninterest-bearing demand deposits was primarily due to strong deposit market competition and the migration of noninterest-bearing demand deposits to money market accounts and time deposits attributable to the rising market rates. To remain competitive in this rising interest rate environment, the Bank started to offer higher rates on deposit products to retain and attract new customers.

The increase in retail time deposits for the current quarter was primarily due to new accounts of $384.5 million, renewals of the matured accounts of $122.6 million and balance increases of $7.6 million, partially offset by matured and closed accounts of $341.6 million. The increase for the current year was primarily due to new accounts of $636.7 million, renewals of the matured accounts of $602.9 million and balance increases of $23.4 million, partially offset by matured and closed accounts of $1.04 billion.

Liquidity

The following table presents a summary of the Company’s liquidity position as of December 31, 2022:


($ in thousands)	12/31/2022
Cash and cash equivalents	$	147,031
Cash and cash equivalents to total assets	6.1		%

Available borrowing capacity
FHLB advances	$	581,745
Federal Reserve Discount Window	23,902
Overnight federal funds lines	65,000
Total	$	670,647
Total available borrowing capacity to total assets	27.7		%

Shareholders’ Equity

Shareholders’ equity was $335.4 million at December 31, 2022, an increase of $2.7 million, or 0.8%, from $332.7 million at September 30, 2022 and an increase of $79.2 million, or 30.9%, from $256.3 million at December 31, 2021. The increase for the current quarter was primarily due to net income, partially offset by cash dividends declared on common stock of $2.2 million and repurchase of common stock of $4.5 million. The increase for the current year was primarily due to net income and issuance of preferred stock of $69.1 million (as discussed below), partially offset by cash dividends declared on common stock of $8.9 million, repurchase of common stock of $6.7 million and an increase in accumulated other comprehensive loss of $10.7 million.

Stock Repurchase

On April 8, 2021, the Company’s Board of Directors approved a repurchase program authorizing the repurchase of up to 5% of the Company’s outstanding common stock as of the date of the board meeting, which represented 775,000 shares, through September 7, 2021. The Company repurchased and retired 680,269 shares of common stock totaling $10.9 million at a weighted-average price of $15.99 per share under this program.

On July 28, 2022, the Company’s Board of Directors approved a repurchase program authorizing for the repurchase of up to 5% of the Company’s outstanding common stock as of the date of the board meeting, which represented 747,938 shares, through February 1, 2023. On January 26, 2023, the Company announced the amendment to the repurchase program, which extended the program expiration from February 1, 2023 to February 1, 2024. The Company repurchased and retired 362,557 shares of common stock at a weighted-average price of $18.57 per share, totaling $6.7 million under this repurchase program as of December 31, 2022.

Issuance of Preferred Stock Under the Emergency Capital Investment Program

On May 24, 2022, the Company issued 69,141 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference of $1,000 per share (“Series C Preferred Stock”) for the capital investment of $69.1 million from the U.S. Treasury under the Emergency Capital Investment Program (“ECIP”). ECIP investment is treated as tier 1 capital for regulatory capital purposes.

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

Capital Ratios

Based on changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets in August 2018, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion. The following table presents capital ratios for the Company and the Bank as of the dates indicated:


	12/31/2022		9/30/2022		12/31/2021		Well Capitalized Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)	13.29	%	13.69	%	14.79	%	N/A
Total capital (to risk-weighted assets)	17.83	%	18.34	%	16.04	%	N/A
Tier 1 capital (to risk-weighted assets)	16.62	%	17.14	%	14.79	%	N/A
Tier 1 capital (to average assets)	14.33	%	14.74	%	12.11	%	N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)	16.30	%	16.82	%	14.48	%	6.5	%
Total capital (to risk-weighted assets)	17.52	%	18.02	%	15.73	%	10.0	%
Tier 1 capital (to risk-weighted assets)	16.30	%	16.82	%	14.48	%	8.0	%
Tier 1 capital (to average assets)	14.05	%	14.47	%	11.85	%	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 general economic uncertainty in the United States and abroad, the impact of inflation, changes in interest rates (including actions taken by the Federal Reserve to address inflation), deposit flows, and real estate values, and their corresponding impact on our customers, and the network and data incident discovered on August 30, 2021. These and other important factors are detailed in various securities law filings made periodically by the Company, copies of which are available from the Company without charge. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

Contact:

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

PCB Bancorp and Subsidiary

Consolidated Balance Sheets (Unaudited)

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


	12/31/2022			9/30/2022			% Change		12/31/2021			% Change
Assets
Cash and due from banks	$	23,202		$	22,252		4.3	%	$	15,222		52.4	%
Interest-bearing deposits in other financial institutions	123,829			131,786			(6.0)	%	188,063			(34.2)	%
Total cash and cash equivalents	147,031			154,038			(4.5)	%	203,285			(27.7)	%
Securities available-for-sale, at fair value	141,863			129,401			9.6	%	123,198			15.2	%
Loans held-for-sale	22,811			18,982			20.2	%	37,026			(38.4)	%
Loans held-for-investment	2,046,063			1,959,237			4.4	%	1,732,205			18.1	%
Allowance for loan losses	(24,942)			(23,761)			5.0	%	(22,381)			11.4	%
Net loans held-for-investment	2,021,121			1,935,476			4.4	%	1,709,824			18.2	%
Premises and equipment, net	6,916			4,671			48.1	%	3,098			123.2	%
Federal Home Loan Bank and other bank stock	10,183			10,183			—	%	8,577			18.7	%

Bank-owned life insurance	30,064			29,883			0.6	%	29,358			2.4	%
Deferred tax assets, net	3,115			12,135			(74.3)	%	10,824			(71.2)	%
Servicing assets	7,347			7,627			(3.7)	%	7,269			1.1	%
Operating lease assets	6,358			6,897			(7.8)	%	6,786			(6.3)	%
Accrued interest receivable	7,472			6,070			23.1	%	5,368			39.2	%
Other assets	15,755			11,688			34.8	%	5,122			207.6	%
Total assets	$	2,420,036		$	2,327,051		4.0	%	$	2,149,735		12.6	%
Liabilities
Deposits
Noninterest-bearing demand	$	734,989		$	809,842		(9.2)	%	$	830,383		(11.5)	%
Savings, NOW and money market accounts	514,741			563,000			(8.6)	%	422,526			21.8	%
Time deposits of $250,000 or less	382,377			305,985			25.0	%	341,956			11.8	%
Time deposits of more than $250,000	413,876			299,271			38.3	%	272,269			52.0	%
Total deposits	2,045,983			1,978,098			3.4	%	1,867,134			9.6	%
Federal Home Loan Bank advances	20,000			—			—	%	10,000			100.0	%
Operating lease liabilities	6,809			7,402			(8.0)	%	7,444			(8.5)	%
Accrued interest payable and other liabilities	11,802			8,832			33.6	%	8,871			33.0	%
Total liabilities	2,084,594			1,994,332			4.5	%	1,893,449			10.1	%
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock	69,141			69,141			—	%	—			—	%
Common stock	149,631			153,890			(2.8)	%	154,992			(3.5)	%
Retained earnings	127,181			120,699			5.4	%	101,140			25.7	%
Accumulated other comprehensive income (loss), net	(10,511)			(11,011)			(4.5)	%	154			NM
Total shareholders’ equity	335,442			332,719			0.8	%	256,286			30.9	%
Total liabilities and shareholders’ equity	$	2,420,036		$	2,327,051		4.0	%	$	2,149,735		12.6	%

Outstanding common shares	14,625,474			14,853,140					14,865,825
Book value per common share (1)	$	22.94		$	22.40				$	17.24
TCE per common share (2)	$	18.21		$	17.75				$	17.24
Total loan to total deposit ratio	101.12		%	100.01		%			94.76		%
Noninterest-bearing deposits to total deposits	35.92		%	40.94		%			44.47		%

(1)The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company did not have any intangible equity components for the presented periods.

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

PCB Bancorp and Subsidiary

Consolidated Statements of Income (Unaudited)

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


	Three Months Ended													Year Ended
	12/31/2022			9/30/2022			% Change		12/31/2021			% Change		12/31/2022			12/31/2021			% Change
Interest and dividend income
Loans, including fees	$	28,786		$	24,835		15.9	%	$	20,363		41.4	%	$	95,054		$	79,155		20.1	%
Investment securities	957			806			18.7	%	441			117.0	%	2,907			1,613			80.2	%
Other interest-earning assets	1,833			1,194			53.5	%	191			859.7	%	3,790			704			438.4	%
Total interest income	31,576			26,835			17.7	%	20,995			50.4	%	101,751			81,472			24.9	%
Interest expense
Deposits	7,295			2,798			160.7	%	847			761.3	%	11,984			4,043			196.4	%
Other borrowings	16			14			14.3	%	53			(69.8)	%	135			292			(53.8)	%
Total interest expense	7,311			2,812			160.0	%	900			712.3	%	12,119			4,335			179.6	%
Net interest income	24,265			24,023			1.0	%	20,095			20.8	%	89,632			77,137			16.2	%
Provision (reversal) for loan losses	1,149			3,753			(69.4)	%	(1,462)			NM		3,602			(4,596)			NM
Net interest income after provision (reversal) for loan losses	23,116			20,270			14.0	%	21,557			7.2	%	86,030			81,733			5.3	%
Noninterest income
Gain on sale of loans	759			1,415			(46.4)	%	3,374			(77.5)	%	7,990			12,932			(38.2)	%

Service charges and fees on deposits	352			341			3.2	%	308			14.3	%	1,326			1,195			11.0	%
Loan servicing income	734			780			(5.9)	%	688			6.7	%	2,969			2,770			7.2	%
Bank-owned life insurance income	181			178			1.7	%	108			67.6	%	706			108			553.7	%
Other income	363			462			(21.4)	%	360			0.8	%	1,508			1,429			5.5	%
Total noninterest income	2,389			3,176			(24.8)	%	4,838			(50.6)	%	14,499			18,434			(21.3)	%
Noninterest expense
Salaries and employee benefits	7,879			8,457			(6.8)	%	7,061			11.6	%	33,056			27,974			18.2	%
Occupancy and equipment	1,897			1,650			15.0	%	1,417			33.9	%	6,481			5,575			16.3	%
Professional fees	607			587			3.4	%	585			3.8	%	2,239			2,159			3.7	%
Marketing and business promotion	724			909			(20.4)	%	586			23.5	%	2,150			1,656			29.8	%
Data processing	434			427			1.6	%	408			6.4	%	1,706			1,572			8.5	%
Director fees and expenses	176			179			(1.7)	%	161			9.3	%	706			594			18.9	%
Regulatory assessments	159			150			6.0	%	138			15.2	%	597			537			11.2	%
Other expense	1,239			1,336			(7.3)	%	812			52.6	%	4,191			3,141			33.4	%
Total noninterest expense	13,115			13,695			(4.2)	%	11,168			17.4	%	51,126			43,208			18.3	%
Income before income taxes	12,390			9,751			27.1	%	15,227			(18.6)	%	49,403			56,959			(13.3)	%
Income tax expense	3,688			2,798			31.8	%	4,551			(19.0)	%	14,416			16,856			(14.5)	%
Net income	$	8,702		$	6,953		25.2	%	$	10,676		(18.5)	%	$	34,987		$	40,103		(12.8)	%

Earnings per common share
Basic	$	0.59		$	0.47				$	0.72				$	2.35		$	2.66
Diluted	$	0.58		$	0.46				$	0.70				$	2.31		$	2.62
Average common shares
Basic	14,700,010			14,877,879					14,799,973					14,833,191			15,017,637
Diluted	14,904,106			15,088,089					15,093,351					15,076,348			15,253,820

Dividend paid per common share	$	0.15		$	0.15				$	0.12				$	0.60		$	0.44
Return on average assets (1)	1.44		%	1.19		%			2.01		%			1.54		%	1.96		%
Return on average shareholders’ equity (1)	10.31		%	8.16		%			16.84		%			11.42		%	16.52		%
Return on average TCE (1), (2)	12.99		%	10.25		%			16.84		%			13.23		%	16.52		%
Efficiency ratio (3)	49.20		%	50.35		%			44.79		%			49.10		%	45.21		%

(1)Ratios are presented on an annualized basis.

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

(3)The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.

PCB Bancorp and Subsidiary

Average Balance, Average Yield, and Average Rate (Unaudited)

($ in thousands)


	Three Months Ended
	12/31/2022						9/30/2022						12/31/2021
	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)	$	2,004,220	$	28,786	5.70	%	$	1,905,366	$	24,835	5.17	%	$	1,758,421	$	20,363	4.59	%
Mortgage-backed securities	90,346		585		2.57	%	93,546		518		2.20	%	88,501		263		1.18	%
Collateralized mortgage obligation	25,570		221		3.43	%	24,090		151		2.49	%	20,233		53		1.04	%
SBA loan pool securities	9,545		71		2.95	%	10,435		56		2.13	%	9,199		41		1.77	%
Municipal bonds (2)	4,050		33		3.23	%	4,491		34		3.00	%	5,698		37		2.58	%
Corporate bonds	4,555		47		4.09	%	4,801		47		3.88	%	5,019		47		3.72	%
Other interest-earning assets	182,018		1,833		4.00	%	200,367		1,194		2.36	%	175,468		191		0.43	%
Total interest-earning assets	2,320,304		31,576		5.40	%	2,243,096		26,835		4.75	%	2,062,539		20,995		4.04	%
Noninterest-earning assets
Cash and due from banks	21,139						20,609						20,618
Allowance for loan losses	(23,800)						(21,117)						(23,835)
Other assets	78,069						76,851						52,512
Total noninterest-earning assets	75,408						76,343						49,295
Total assets	$	2,395,712					$	2,319,439					$	2,111,834
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	540,312	2,852		2.09	%	$	577,975	1,375		0.94	%	$	406,343	301		0.29	%
Savings	10,692		3		0.11	%	14,990		2		0.05	%	14,161		2		0.06	%
Time deposits	718,735		4,440		2.45	%	544,774		1,421		1.03	%	587,523		544		0.37	%
Total interest-bearing deposits	1,269,739		7,295		2.28	%	1,137,739		2,798		0.98	%	1,008,027		847		0.33	%
Other borrowings	1,739		16		3.65	%	2,033		14		2.73	%	13,315		53		1.58	%
Total interest-bearing liabilities	1,271,478		7,311		2.28	%	1,139,772		2,812		0.98	%	1,021,342		900		0.35	%
Noninterest-bearing liabilities
Noninterest-bearing demand	771,632						825,362						824,504
Other liabilities	17,770						16,057						14,511
Total noninterest-bearing liabilities	789,402						841,419						839,015
Total liabilities	2,060,880						1,981,191						1,860,357
Total shareholders’ equity	334,832						338,248						251,477
Total liabilities and shareholders’ equity	$	2,395,712					$	2,319,439					$	2,111,834
Net interest income			$	24,265					$	24,023					$	20,095
Net interest spread (3)					3.12	%					3.77	%					3.69	%
Net interest margin (4)					4.15	%					4.25	%					3.87	%
Total deposits	$	2,041,371	$	7,295	1.42	%	$	1,963,101	$	2,798	0.57	%	$	1,832,531	$	847	0.18	%
Total funding (5)	$	2,043,110	$	7,311	1.42	%	$	1,965,134	$	2,812	0.57	%	$	1,845,846	$	900	0.19	%

(1)Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan fees and costs.

(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.

(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.

(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.

(5)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

(6)Annualized.

PCB Bancorp and Subsidiary

Average Balance, Average Yield, and Average Rate (Unaudited)

($ in thousands)


	Year Ended
	12/31/2022						12/31/2021
	Average Balance		Interest Income/ Expense		Avg. Yield/Rate		Average Balance		Interest Income/ Expense		Avg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)	$	1,872,557	$	95,054	5.08	%	$	1,702,073	$	79,155	4.65	%
Mortgage-backed securities	89,066		1,826		2.05	%	89,693		989		1.10	%
Collateralized mortgage obligation	23,479		545		2.32	%	22,633		221		0.98	%
SBA loan pool securities	10,309		208		2.02	%	10,515		189		1.80	%
Municipal bonds (2)	4,874		140		2.87	%	5,755		146		2.54	%
Corporate bonds	4,810		188		3.91	%	1,841		68		3.69	%
Other interest-earning assets	194,205		3,790		1.95	%	179,353		704		0.39	%
Total interest-earning assets	2,199,300		101,751		4.63	%	2,011,863		81,472		4.05	%
Noninterest-earning assets
Cash and due from banks	20,735						19,676
Allowance for loan losses	(22,125)						(25,270)
Other assets	73,951						41,187
Total noninterest-earning assets	72,561						35,593
Total assets	$	2,271,861					$	2,047,456
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	504,275	4,970		0.99	%	$	400,446	1,242		0.31	%
Savings	14,068		9		0.06	%	12,302		6		0.05	%
Time deposits	593,106		7,005		1.18	%	609,351		2,795		0.46	%
Total interest-bearing deposits	1,111,449		11,984		1.08	%	1,022,099		4,043		0.40	%
Other borrowings	6,290		135		2.15	%	31,302		292		0.93	%
Total interest-bearing liabilities	1,117,739		12,119		1.08	%	1,053,401		4,335		0.41	%
Noninterest-bearing liabilities
Noninterest-bearing demand	831,621						737,216
Other liabilities	16,061						14,073
Total noninterest-bearing liabilities	847,682						751,289
Total liabilities	1,965,421						1,804,690
Total shareholders’ equity	306,440						242,766
Total liabilities and shareholders’ equity	$	2,271,861					$	2,047,456
Net interest income			$	89,632					$	77,137
Net interest spread (3)					3.55	%					3.64	%
Net interest margin (4)					4.08	%					3.83	%
Total deposits	$	1,943,070	$	11,984	0.62	%	$	1,759,315	$	4,043	0.23	%
Total funding (5)	$	1,949,360	$	12,119	0.62	%	$	1,790,617	$	4,335	0.24	%

(1)Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan fees and costs.

(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.

(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.

(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.

PCB Bancorp and Subsidiary

Non-GAAP Measures

($ in thousands)

Adjusted allowance for loan losses to loans held-for-investment ratio

Adjusted Allowance to loans held-for-investment ratio is calculated by removing SBA PPP loans from loans held-for-investment from the Allowance to loans held-for-investment ratio calculation. The SBA launched the PPP to provide a direct incentive for small businesses to keep their workers on the payroll in response to the COVID-19 pandemic. The SBA guarantees 100% of the PPP loans made to eligible borrowers, and the loans are eligible to be forgiven if certain conditions are met, at which point the SBA will make payments to the Bank for the forgiven amounts. The SBA guarantee on PPP loans cannot be separated from the loan and therefore is not a separate unit of account. The Company considered the SBA guarantee in the Allowance evaluation and determined that it is not required to reserve an Allowance on SBA PPP loans. Management believes this non-GAAP measure enhances comparability to prior periods and provide supplemental information regarding the Company’s credit trends. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP measure with financial measure defined by GAAP.


($ in thousands)		12/31/2022			9/30/2022			12/31/2021
Loans held-for-investment	(a)	$	2,046,063		$	1,959,237		$	1,732,205
Less: SBA PPP loans	(b)	1,197			1,309			65,329
Loans held-for-investment, excluding SBA PPP loans	(c)=(a)-(b)	$	2,044,866		$	1,957,928		$	1,666,876
Allowance	(d)	$	24,942		$	23,761		$	22,381
Allowance to loans held-for-investment ratio	(d)/(a)	1.22		%	1.21		%	1.29		%
Adjusted Allowance to loans held-for-investment ratio	(d)/(c)	1.22		%	1.21		%	1.34		%

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 stockholders’ 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. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP measures with financial measures defined by GAAP.


($ in thousands)		Three Months Ended									Year Ended
		12/31/2022			9/30/2022			12/31/2021			12/31/2022			12/31/2021
Average total shareholders' equity	(a)	$	334,832		$	338,248		$	251,477		$	306,440		$	242,766
Less: average preferred stock	(b)	69,141			69,141			—			42,053			—
Average TCE	(c)=(a)-(b)	$	265,691		$	269,107		$	251,477		$	264,387		$	242,766
Net income	(d)	$	8,702		$	6,953		$	10,676		$	34,987		$	40,103
Return on average shareholder's equity (1)	(d)/(a)	10.31		%	8.16		%	16.84		%	11.42		%	16.52		%
Return on average TCE (1)	(d)/(c)	12.99		%	10.25		%	16.84		%	13.23		%	16.52		%

(1) Annualized.


($ in thousands, except per share data)		12/31/2022			9/30/2022			12/31/2021
Total shareholders' equity	(a)	$	335,442		$	332,719		$	256,286
Less: preferred stock	(b)	69,141			69,141			—
TCE	(c)=(a)-(b)	$	266,301		$	263,578		$	256,286
Outstanding common shares	(d)	14,625,474			14,853,140			14,865,825
Book value per common share	(a)/(d)	$	22.94		$	22.40		$	17.24
TCE per common share	(c)/(d)	$	18.21		$	17.75		$	17.24
Total assets	(e)	$	2,420,036		$	2,327,051		$	2,149,735
Total shareholders' equity to total assets	(a)/(e)	13.86		%	14.30		%	11.92		%
TCE to total assets	(c)/(e)	11.00		%	11.33		%	11.92		%

EX-99.2 3 pcbinvestordeckq422.htm EX-99.2 pcbinvestordeckq422

This presentation (and oral statements made regarding the subject of this presentation) contains certain “forward- looking statements” that are based on various facts and derived utilizing numerous important assumptions and are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include information about our future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Forward-looking statements are based on management’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from the Company’s historical results or those described in our forward-looking statements. PCB Bancorp disclaims any obligation to update any forward-looking statement. This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding. 2

4(1) As of January 24, 2023.

$0.08 $0.11 $0.12 $0.12 $0.25 $0.40 $0.44 $0.60 $0.15 $8.26 $9.48 $10.60 $13.16 $14.44 $15.19 $17.24 $22.94 $18.21 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Cash Dividend & Book Value/Tangible Common Equity Per Share (1), (2) Cash Dividend Per Share Book Value Per Share TCE Per Share As of January 24, 2023 Common Stock Ticker PCB Market Cap $260.8 million Price Per Share $17.90 52 Week Range $17.65 - $25.43 Dividend Yield (Dividend Payout Ratio) 3.35% (25.43% 1Q21-4Q22) Number of Shares 14,571,556 Shares Preferred Stock Senior Non-Cumulative Perpetual, Series C 69,141 Shares ($69.1 million) Stock Repurchase Plan Announced on July 28, 2022 5% of Outstanding (747,938 shares) Purchased & Retired 416,275 shares (1) Book value / Tangible Common Equity (“TCE”) per share at period end. (2) TCE per share is not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). See “Non- GAAP measure” for a reconciliation of this measure to its most comparable GAAP measure.

$1.34 $1.45 $1.58 $1.73 $2.05 0.000 0.500 1.000 1.500 2.000 2.500 2018 2019 2020 2021 2022 Held-For-Investment Loans ($bn) $1.44 $1.48 $1.59 $1.87 $2.05 0.000 0.500 1.000 1.500 2.000 2.500 2018 2019 2020 2021 2022 Deposits ($bn) $24.3 $24.1 $16.2 $40.1 $35.0 0.000 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 2018 2019 2020 2021 2022 Net Income ($mm) $1.65 $1.49 $1.04 $2.62 $2.31 0.000 0.500 1.000 1.500 2.000 2.500 3.000 2018 2019 2020 2021 2022 Diluted Earnings Per Share CAGR +11.2% CAGR +9.1% 6

1.53% 1.40% 0.84% 1.96% 1.54% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2018 2019 2020 2021 2022 Return on Average Assets 14.26% 10.88% 7.08% 16.52% 11.41% 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 2018 2019 2020 2021 2022 Return on Average Equity/TCE (1) 52.8% 52.3% 53.5% 45.2% 49.1% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 2018 2019 2020 2021 2022 Efficiency Ratio 4.23% 4.11% 3.53% 3.83% 4.08% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2018 2019 2020 2021 2022 Net Interest Margin (1) Return on average TCE (“ROATCE”) is not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure. 13.23%(1) 7

As of or For the Quarter Ended ($ in thousands except per share data) 12/31/22 09/30/22 12/31/21 Income Statement Summary: Interest Income $ 31,576 $ 26,835 $ 20,995 Interest Expense 7,311 2,812 900 Net Interest Income 24,265 24,023 20,095 Noninterest Income 2,389 3,176 4,838 Noninterest Expense 13,115 13,695 11,168 Provision (reversal) for Loan Losses 1,149 3,753 (1,462) Pretax Income 12,390 9,751 15,227 Income Tax Expense 3,688 2,798 4,551 Net Income 8,702 6,953 10,676 Diluted Earnings Per Share (“EPS”) $ 0.58 $ 0.46 $ 0.70 Selected Balance Sheet Items: Loans held-for-investment (“HFI”) $ 2,046,063 $ 1,959,237 $ 1,732,205 Loans held-for-sale (“HFS”) 22,811 18,982 37,026 Total Deposits 2,045,983 1,978,098 1,867,134 Total Assets 2,420,036 2,327,051 2,149,735 Shareholders’ Equity 335,442 332,719 256,286 Key Metrics: Book Value Per Share $ 22.94 $ 22.40 $ 17.24 TCE Per Share (1) $ 18.21 $ 17.75 $ 17.24 Return on Average Assets (“ROAA”) (2) 1.44% 1.19% 2.01% Return on Average Equity (“ROAE”) (2) 10.31% 8.16% 16.84% ROATCE (1), (2) 12.99% 10.25% 16.84% Net Interest Margin (2) 4.15% 4.25% 3.87% Efficiency Ratio 49.20% 50.35% 44.79% o Recorded a provision for loan losses of $1.1 million in 4Q22 primarily due to increases in gross loan balance and qualitative adjustment factors related to current economic condition o Allowance for loan losses to HFI loans ratio was 1.22% at 12/31/22 compared with 1.21% at 09/30/22. o Declared cash dividend of $0.15 per share in 4Q22 o Opened 1 new branch in Carrollton, Texas (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of these measures to their most comparable GAAP measures. (2) Annualized. 9

Commercial Property - Owner Occupied 27% Commercial Property - Non-Owner Occupied 43% Commercial and Industrial 12% SBA PPP 0% Residential Property 17% Other Consumer 1% HFI Loan Composition $1,062 $1,136 $1,189 $1,244 $1,289 $1,348 $1,422 $1,440 $193 $184 $194 $192 $194 $203 $215 $248 $191 $197 $202 $209 $215 $258 $298 $334 $21 $22 $21 $22 $22 $22 $23 $23 $219 $181 $102 $65 $23 $2 $1 $1 $1,686 $1,720 $1,708 $1,732 $1,743 $1,833 $1,959 $2,046 0 500 1,000 1,500 2,000 2,500 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 HFI Loan Trend Commercial Property Commercial and Industrial Residential Property Other Consumer SBA PPP ($ in millions) December 31, 2022 YoY +18.1% $636 $679 $706 $733 $756 $819 $898 $925 251% 269% 270% 270% 270% 230% 249% 254% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1,000.0 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Commercial Real Estate(1) Loan Trend CRE Loans % to the Bank's Total Risk-Based Capital ($ in millions) (1) Per regulatory definitions in the Commercial Real Estate (“CRE”) Concentration Guidance 10

Fixed (WA Rate: 4.52%) 23% Variable (WA Rate: 7.86%) 38% Hybrid (WA Rate: 4.40%) 39% Interest Rate Mix(2) $49 $17 $25 $19 $25 $23 $29 $15 $23 $85 $93 $69 $67 $126 $68 $64 $51 $105 $105 $97 $62 $129 $169 $110 4.02% 3.90% 3.95% 4.01% 4.26% 5.23% 5.92% 7.17% -3.00% -1.00% 1.00% 3.00% 5.00% 7.00% 0.0 50.0 100.0 150.0 200.0 250.0 300.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 New Production(1),(2) by Rate Type Fixed Hybrid Variable WA Rate (1) Total commitment basis (2) Excluding SBA PPP loans. December 31, 2022($ in millions) 27% 26% 25% 26% 26% 24% 24% 23% 22% 25% 28% 30% 32% 37% 38% 39% 51% 49% 47% 44% 42% 39% 38% 38% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Interest Rate Mix Trend(2) Fixed Hybrid Variable 11

Loan Repricing Schedule as of December 31, 2022 HFI Loans HFS Loans Total Loans (2) ($ in thousands) Carrying Value Rate (1) Carrying Value Rate (1) Carrying Value Rate (1) Less Than 3 Months $ 671,741 8.35% $ 18,811 8.78% $ 690,552 8.35% 3 to 12 Months 84,231 4.32% 0 84,231 4.32% 1 to 3 Years 342,986 4.74% 0 342,986 4.74% 3 to 5 Years 835,122 4.41% 0 835,122 4.41% More than 5 Years 111,983 4.39% 4,000 0.00% 115,983 4.39% Total $ 2,046,063 5.73% $ 22,811 7.24% $ 2,068,874 5.73% Breakout of Interest and Fee Income on Loans Total Loans (2), Excl. SBA PPP SBA PPP Loans Total Loans (2) ($ in thousands) Amount Yield Amount Yield Amount Yield 4Q22 Average Carrying Value $ 2,002,910 $ 1,310 $ 2,004,220 Interest on Loans $ 27,747 5.50% $ 3 0.91% $ 27,750 5.49% Fee (Cost) 136 0.03% 9 2.73% 145 0.03% Prepayment Penalty & Late Charges 22 0.00% 0 22 0.00% Discount (Premium) 869 0.17% 0 869 0.17% Total Interest & Fees $ 28,774 5.70% $ 16 3.63% $ 28,786 5.70% (1) Weighted-average contractual rate (2) Include both HFI & HFS loans 2022 Average Carrying Value $ 1,858,825 $ 13,732 $ 1,872,557 Interest on Loans $ 89,187 4.80% $ 136 0.99% $ 89,322 4.77% Fee (Cost) 385 0.02% 1,458 10.62% 1,843 0.10% Prepayment Penalty & Late Charges 338 0.02% 0 338 0.02% Discount (Premium) 3,550 0.19% 0 3,551 0.19% Total Interest & Fees $ 93,460 5.03% $ 1,594 11.61% $ 95,054 5.08% 12

Real Estate Loans – Commercial By Property Type as of December 31, 2022 ($ in thousands) Carrying Value % to Total LTV(1) Retail (More than 50%) $ 305,480 21.2% 49.8% Industrial 278,319 19.3% 50.4% Mixed Use 149,223 10.4% 48.0% Apartments 104,617 7.3% 53.0% Office 100,733 7.0% 55.0% Motel & Hotel 95,437 6.6% 50.8% Gas Station 95,237 6.6% 54.6% Medical 63,995 4.4% 46.7% Car Wash 43,409 3.0% 57.5% Auto (Sales, Repair, & etc.) 37,260 2.6% 59.1% Condominium (Commercial) 29,443 2.0% 49.2% Golf Course 28,416 2.0% 50.6% Spa, Sauna, & Other Self-Care 24,903 1.7% 53.7% Construction 17,054 1.2% 51.8% Church 11,110 0.8% 36.7% Supermarket 6,826 0.5% 67.8% Others 48,876 3.4% 53.2% Total $ 1,440,338 100.0% 51.2% Real Estate Loans – Residential as of December 31, 2022 (1) Collateral value at origination ($ in thousands) Carrying Value LTV(1) FICO Residential Property $ 333,726 60.7% 760 13

Commercial and Industrial Loans – By Industry Type as of December 31, 2022 ($ in thousands) Carrying Value % to Total General Manufacturing & Wholesale Trade $ 53,584 21.5% Finance & Insurance 44,208 17.7% Food Services 37,775 15.2% Real Estate Related 29,527 11.8% Retail Trade 28,684 11.5% Entertainment & Recreation 21,637 8.7% Professional, Scientific, & Technical Services 17,637 7.1% Other Services 4,888 2.0% Transportation & Warehousing 4,398 1.8% Health Care & Social Assistance 3,323 1.3% All Other 3,589 1.4% Total $ 249,250 100.0% 14

Geographic Concentration as of December 31, 2022 Real Estate - Commercial Real Estate – Residential Commercial & Industrial ($ in thousands) Carrying Value % to Total Carrying Value % to Total Carrying Value % to Total California $ 1,158,763 80.5% $ 332,108 99.5% $ 207,142 83.2% New York 64,713 4.5% 0 8,844 3.5% Texas 66,016 4.6% 0 4,249 1.7% New Jersey 48,017 3.3% 1,618 0.5% 8,326 3.3% Washington 36,980 2.6% 0 2,374 1.0% Nevada 13,537 0.9% 0 3,716 1.5% Georgia 9,614 0.7% 0 792 0.3% Illinois 7,121 0.5% 0 766 0.3% Colorado 6,189 0.4% 0 791 0.3% Oregon 2,564 0.2% 0 3,945 1.6% Virginia 3,454 0.2% 0 860 0.3% Maryland 1,849 0.1% 0 1,017 0.4% Pennsylvania 2,662 0.2% 0 16 0.0% Other States 18,859 1.3% 0 6,412 2.6% Total $ 1,440,338 100.0% $ 333,726 100.0% $ 249,250 100.0% 15

$3.8 $1.4 $1.1 $1.0 $1.4 $2.0 $7.4 $7.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Non-Performing Assets (“NPAs”) 0.19% 0.07% 0.05% 0.05% 0.06% 0.09% 0.32% 0.30% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 NPAs to Total Assets 1.51% 1.45% 1.39% 1.29% 1.22% 1.15% 1.21% 1.22% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Allowance(1) to HFI Loans 1.23%(2) 1.21%(2) 1746% 1721% 2133% 2252% 1495% 1723% 321% 742% 0.00% 500.00% 1000.00% 1500.00% 2000.00% 2500.00% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Allowance(1) to Non-Performing HFI Loans (1) Allowance for Loan Losses (2) This adjusted allowance to HFI Loans ratio excludes SBA PPP loans and is not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measures. ($ in millions) 1.74%(2) 1.62%(2) 1.34%(2) 1.48%(2) 1.15%(2) 16 1.22%(2)

(1) 0.65% 0.52% 0.43% 0.36% 0.28% 0.21% 0.14% 0.12% 0.11% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% Shinhan America Hope Peer Group PCB USM Hanmi Open Woori America CBB NPAs / (Total Loans + OREO)(2) 1.08% 0.68% 0.51% 0.42% 0.17% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Hope Hanmi CBB PCB Open Classified Assets to Total Assets(3) (1) Korean-American banks operating in Southern California (2) Source: UBPR (3) Source: Press release concerning financial performance December 31, 2022 Peer Data as of September 30, 2022 December 31, 2022 Peer Data as of September 30, 2022 17

$1,422 $1,459 $1,505 $1,510 $1,602 $1,717 $1,600 $1,545 81% 81% 82% 81% 84% 86% 81% 76% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Core Deposits(1) Core Deposits % to Total Deposits Noninterest DDA 36% Retail Other Interest- Bearing 25% Retail Time Deposits 32% State and Brokered Deposits 7% Deposit Composition (1) Not presented in accordance with GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure. $716 $796 $833 $830 $892 $989 $810 $735 $412 $392 $410 $423 $464 $492 $553 $515 $443 $445 $425 $429 $420 $422 $476 $649$18 $0$165 $165 $165 $185 $135 $95 $139 $147 $1,754 $1,798 $1,833 $1,867 $1,911 $1,998 $1,978 $2,046 0 500 1,000 1,500 2,000 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Deposit Trend Noninterest DDA Retail Other Interest-Bearing Retail Time Deposits Internet Time Deposits State and Brokered Deposits YoY +9.6% ($ in millions) ($ in millions) December 31, 2022 18

Time Deposits as of December 31, 2022 Retail Time Deposits State and Brokered Time Deposits Total ($ in thousands) Amount WA Rate Amount WA Rate Amount WA Rate Less Than 3 Months $ 139,048 2.36% $ 70,004 3.65% $ 209,052 2.79% 3 to 6 Months 70,749 2.51% 36,871 3.90% 107,620 2.99% 6 to 9 Months 77,332 2.40% 17,827 3.91% 95,159 2.68% 9 to 12 Months 355,617 4.11% 17,608 4.20% 373,225 4.11% More than 12 Months 6,484 1.56% 4,713 3.99% 11,197 2.58% Total $ 649,230 3.33% $ 147,023 3.82% $ 796,253 3.42% 19

$8.6 $9.8 $11.0 $10.7 $10.2 $9.1 $7.0 $8.7 $11.0 $13.0 $14.6 $13.8 $13.2 $12.8 $13.5 $13.5 -1.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net Income PTPP 1.75% 1.96% 2.11% 2.01% 1.92% 1.65% 1.19% 1.44% 2.25% 2.58% 2.79% 2.59% 2.48% 2.32% 2.31% 2.24% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 ROAA Adjusted ROAA $0.55 $0.64 $0.73 $0.70 $0.67 $0.60 $0.46 $0.58 $0.71 $0.85 $0.97 $0.91 $0.87 $0.84 $0.89 $0.91 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Diluted EPS Adjusted Diluted EPS 14.66% 16.49% 17.98% 16.84% 16.01% 12.48% 8.16% 10.31% 18.85% 21.79% 23.79% 21.72% 20.65% 17.51% 15.84% 16.04% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 ROAE Adjusted ROAE ($ in millions) Net Income & PTPP(1) Income Diluted EPS & Adjusted Diluted EPS(1) ROAA & Adjusted ROAA(1) ROAE & Adjusted ROAE(1) (1) PTPP (Pre-Tax Pre-Provision) income, and adjusted EPS, ROAA and ROAE for PTPP are not presented in accordance with GAAP. See “Non-GAAP measure” for reconciliations of these measures to their most comparable GAAP measures. 20

$10.9 $34.1 $45.0 $36.8 $39.7 $38.4 $27.3 $17.4 12.0% 12.2% 10.8% 10.0% 10.6% 6.8% 7.5% 6.3% 10.9% 11.6% 9.5% 9.1% 9.5% 5.3% 5.2% 4.4% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% -5.0 5.0 15.0 25.0 35.0 45.0 55.0 65.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 SBA Loan Sale Trend SBA Loan Sold $ Premium % Gain % ($ in millions) ($ in millions) $17.7 $53.0 $71.4 $52.3 $29.7 $42.7 $46.1 $22.3 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 SBA 7(a) Loan Production (1) $1.5 $1.2 $1.3 $1.4 $1.5 $1.6 $1.8 $1.6 $1.3 $4.0 $4.3 $3.4 $3.8 $2.0 $1.4 $0.8 46% 77% 76% 70% 71% 56% 45% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Noninterest Income Trend All Other Income Gain % to Total (1) Total commitment basis ($ in millions) Gain on Sale of Loans 21

$6.2 $7.1 $7.6 $7.1 $8.6 $8.1 $8.5 $7.9 $3.5 $4.0 $3.6 $4.1 $3.5 $4.1 $5.2 $5.2 1.95% 2.21% 2.17% 2.12% 2.23% 2.22% 2.36% 2.19% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Noninterest Expense Trend Compensation All Other Expenses % to Average Total Assets 46.8% 46.1% 43.5% 44.8% 47.8% 49.0% 50.4% 49.2% 64.1% 59.4% 59.2% 59.8% 62.1% 60.5% 59.2% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Efficiency Ratio(2) PCB Peer Average 246 248 249 247 256 271 274 272 230 235 240 245 250 255 260 265 270 275 280 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Number of FTE(3) Employees (1) (1) Annualized (2) Source: Peer $1 to $3 billion per UBPR (3) Full-time equivalent ($ in millions) 22

4.63% 4.63% 4.75% 4.59% 4.62% 4.72% 5.17% 5.70% 3.70% 3.83% 3.93% 3.87% 3.87% 4.01% 4.25% 4.15% 0.52% 0.40% 0.37% 0.35% 0.35% 0.43% 0.98% 2.28% 0.34% 0.24% 0.21% 0.19% 0.19% 0.23% 0.57% 1.42% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Yield & Cost(1) Loan Yield NIM Cost of Int-Bearing Liab Cost of Funds (1) Annualized 23

14.05% 16.30% 16.30% 17.52% 5.00% 6.50% 8.00% 10.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% Tier 1 Leverage CET 1 Capital Tier 1 Capital Total Capital Bank Regulatory Capital Ratios Actual Minimum Requirement For Well-Capitalized $15.53 $16.09 $16.68 $17.24 $17.47 $22.36 $22.40 $22.94 $17.73 $17.75 $18.21 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Book Value/TCE Per Share BV Per Share TCE Per Share December 31, 2022 11.72% 11.60% 11.76% 11.92% 11.87% 14.26% 14.30% 13.86% 11.31% 11.33% 11.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Total Equity/TCE to Total Assets Total Equity to Total Assets TCE to Total Assets (1) Not presented in accordance with U.S. GAAP. See “Non-GAAP measure” for a reconciliation of these measure to its most comparable GAAP measures. (1) (1) 24

Adjusted Allowance to HFI Loans Ratio Adjusted allowance to HFI loans ratio is a non-GAAP measure that we use to enhance comparability to prior periods and provide supplemental information regarding the Company’s credit trends. We calculate adjusted allowance to HFI loan ratio as allowance divided by loans held-for-investment excluding SBA PPP loans. The SBA launched the PPP to provide a direct incentive for small businesses to keep their workers on the payroll in response to the COVID-19 pandemic. The SBA guarantees 100% of the PPP loans made to eligible borrowers, and the loans are eligible to be forgiven if certain conditions are met, at which point the SBA will make payments to the Bank for the forgiven amounts. The SBA guarantee on PPP loans cannot be separated from the loan and therefore is not a separate unit of account. The Company considered the SBA guarantee in the allowance for loan losses evaluation and determined that it is not required to reserve an allowance on SBA PPP loans. Core Deposits Core Deposits are a non-GAAP measure that we use to measure the portion of our total deposits that are thought to be more stable, lower cost and reprice less frequently on average in a rising rate environment. We calculate core deposits as total deposits less time deposits greater than $250,000 and brokered deposits. Management tracks its core deposits because management believes it is a useful measure to help assess the Company’s deposit base and, among other things, potential volatility therein. PTPP Income, and Adjusted ROAA, ROAE and Diluted EPS for PTPP PTPP income, and adjusted ROAA, ROAE and Diluted EPS are non-GAAP measures that we use to measure the Company’s performance and believe these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. We calculated PTPP income as net income excluding income tax provision and provision for loan losses. Management believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently ROATCE, TCE Per Share and TCE to Total Assets ROATCE, TCE per share and TCE to total assets measures that we use to measure the Company’s performance. We calculated TCE as total shareholders’ equity excluding preferred stock. Management believes the non-GAAP measures provide useful supplemental information, and a clearer understanding of the Company’s performance. 25

The following table reconciles adjusted allowance to HFI loans ratio and core deposits to their most comparable GAAP measures: ($ in thousands) 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 HFI Loans (a) $ 1,685,916 $ 1,719,656 $ 1,707,878 $ 1,732,205 $ 1,742,955 $ 1,833,010 $ 1,959,237 $ 2,046,063 Less: SBA PPP Loans (218,709) (181,019) (101,901) (65,329) (22,926) (1,583) (1,309) (1,197) HFI Loans, Excluding SBA PPP Loans (b) $ 1,467,207 $ 1,538,637 $ 1,605,977 $ 1,666,876 $ 1,720,029 $ 1,831,427 $ 1,957,928 $ 2,044,866 Allowance (c) $ 25,514 $ 24,889 $ 23,807 $ 22,381 $ 21,198 $ 21,071 $ 23,761 $ 24,942 Allowance to HFI Loans Ratio (c)/(a) 1.51% 1.45% 1.39% 1.29% 1.22% 1.15% 1.21% 1.22% Adjusted Allowance to HFI Loans Ratio (c)/(b) 1.74% 1.62% 1.48% 1.34% 1.23% 1.15% 1.21% 1.22% Total Deposits (d) $ 1,753,772 $ 1,797,648 $ 1,832,666 $ 1,867,134 $ 1,910,379 $ 1,997,607 $ 1,978,098 $ 2,045,983 Less: Time Deposits Greater Than $250K (266,845) (273,401) (263,127) (272,269) (273,844) (246,024) (299,271) (413,876) Less: Brokered Deposits (65,004) (65,004) (65,004) (85,001) (35,001) (35,001) (79,131) (87,031) Core Deposits (e) $ 1,421,923 $ 1,459,243 $ 1,504,535 $ 1,509,864 $ 1,601,534 $ 1,716,582 $ 1,599,696 $ 1,545,076 Core Deposits to Total Deposits (e)/(d) 81.1% 81.2% 82.1% 80.9% 83.8% 85.9% 80.9% 75.5% 26

The following table reconciles PTPP income, and adjusted ROAA, ROAE and diluted EPS for PTPP to their most comparable GAAP measures: (1) Annualized. ($ in thousands) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net Income (a) $ 8,560 $ 9,844 $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 $ 8,702 Add: Provision (Reversal) for Loan Losses (1,147) (934) (1,053) (1,462) (1,191) (109) 3,753 1,149 Add: Income Tax Provision 3,594 4,098 4,613 4,551 4,159 3,771 2,798 3,688 PTPP Income (Non-GAAP) (b) $ 11,007 $ 13,008 $ 14,583 $ 13,765 $ 13,208 $ 12,754 $ 13,504 $ 13,539 Average Total Assets (c) $ 1,987,217 $ 2,018,789 $ 2,070,365 $ 2,111,834 $ 2,161,132 $ 2,208,059 $ 2,319,439 $ 2,395,712 ROAA (1) (a)/(c) 1.75% 1.96% 2.11% 2.01% 1.92% 1.65% 1.19% 1.44% Adjusted ROAA (Non-GAAP)(1) (b)/(c) 2.25% 2.58% 2.79% 2.59% 2.48% 2.32% 2.31% 2.24% Average Total Shareholders' Equity (d) $ 236,790 $ 239,448 $ 243,185 $ 251,477 $ 259,367 $ 292,135 $ 338,248 $ 334,832 ROAE (1) (a)/(d) 14.66% 16.49% 17.98% 16.84% 16.01% 12.48% 8.16% 10.31% Adjusted ROAE (Non-GAAP)(1) (b)/(d) 18.85% 21.79% 23.79% 21.72% 20.65% 17.51% 15.84% 16.04% Net Income $ 8,560 $ 9,844 $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 $ 8,702 Less: Income Allocated to Participating Securities (33) (41) (43) (40) (48) (42) (30) (37) Net Income Allocated to Common Stock (e) 8,527 9,803 10,980 10,636 10,192 9,050 6,923 8,665 Add: Provision for Loan Losses (1,147) (934) (1,053) (1,462) (1,191) (109) 3,753 1,149 Add: Income Tax Provision 3,594 4,098 4,613 4,551 4,159 3,771 2,798 3,688 PTPP Income Allocated to Common Stock (f) $ 10,974 $ 12,967 $ 14,540 $ 13,725 $ 13,160 $ 12,712 $ 13,474 $ 13,502 WA common shares outstanding, diluted (g) 15,533,608 15,309,873 15,031,558 15,093,351 15,141,693 15,122,452 15,088,089 14,904,106 Diluted EPS (e)/(g) $ 0.55 $ 0.64 $ 0.73 $ 0.70 $ 0.67 $ 0.60 $ 0.46 $ 0.58 Adjusted Diluted EPS (Non-GAAP) (f)/(g) $ 0.71 $ 0.85 $ 0.97 $ 0.91 $ 0.87 $ 0.84 $ 0.89 $ 0.91 27

The following table reconciles ROATCE to its most comparable GAAP measure: (1) Annualized. ($ in thousands) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 2022 Average Total Shareholders' Equity (a)$ 236,790 $ 239,448 $ 243,185 $ 251,477 $ 259,367 $ 292,135 $ 338,248 $ 334,832 $ 306,440 Less: Average Preferred Stock 0 0 0 0 0 28,872 69,141 69,141 42,053 Average TCE (Non-GAAP) (b)$ 236,790 $ 239,448 $ 243,185 $ 251,477 $ 259,367 $ 263,263 $ 269,107 $ 265,691 $ 264,387 Net Income (c)$ 8,560 $ 9,844 $ 11,023 $ 10,676 $ 10,240 $ 9,092 $ 6,953 $ 8,702 $ 34,987 ROAE (1) (c)/(a) 14.66% 16.49% 17.98% 16.84% 16.01% 12.48% 8.16% 10.31% 11.42% ROATCE (Non-GAAP)(1) (c)/(b) 14.66% 16.49% 17.98% 16.84% 16.01% 13.85% 10.25% 12.99% 13.23% The following table reconciles TCE per share and TCE to total assets to their most comparable GAAP measures: ($ in thousands, except per share data) 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 Total Shareholders' Equity (a) $ 240,263 $ 238,941 $ 247,598 $ 256,286 $ 261,058 $ 334,375 $ 332,719 $ 335,442 Less: Preferred Stock 0 0 0 0 0 69,141 69,141 69,141 TCE (Non-GAAP) (b) $ 240,263 $ 238,941 $ 247,598 $ 256,286 $ 261,058 $ 265,234 $ 263,578 $ 266,301 Outstanding Shares (c) 15,468,242 14,854,315 14,841,626 14,865,825 14,944,663 14,956,760 14,853,140 14,625,474 Book Value Per Share (a)/(c) $ 15.53 $ 16.09 $ 16.68 $ 17.24 $ 17.47 $ 22.36 $ 22.40 $ 22.94 TCE Per Share (Non-GAAP) (b)/(c) $ 15.53 $ 16.09 $ 16.68 $ 17.24 $ 17.47 $ 17.73 $ 17.75 $ 18.21 Total Assets (d) $ 2,050,672 $ 2,060,003 $ 2,104,699 $ 2,149,735 $ 2,199,742 $ 2,344,560 $ 2,327,051 $ 2,420,036 Total Shareholders’ Equity to Total Assets (a)/(d) 11.72% 11.60% 11.76% 11.92% 11.87% 14.26% 14.30% 13.86% TCE to Total Assets (Non-GAAP) (b)/(d) 11.72% 11.60% 11.76% 11.92% 11.87% 11.31% 11.33% 11.00% 28

EX-99.3 4 pcbpr20230126dividends.htm EX-99.3 Document

Exhibit 99.3

PCB Bancorp Declares Quarterly Cash Dividend of $0.15 Per Common Share

Los Angeles, California - January 26, 2023 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank, announced that on January 26, 2023, its Board of Directors declared a quarterly cash dividend of $0.15 per common share. The dividend will be paid on or about February 17, 2023, to shareholders of record as of the close of business on February 10, 2023.

About PCB Bancorp

Contact:

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

EX-99.4 5 pcbpr20230126repurchamend.htm EX-99.4 Document

Exhibit 99.4

PCB Bancorp Announces Amendment to Stock Repurchase Plan

Los Angeles, California - January 26, 2023 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank, announced that on January 26, 2023, its Board of Directors approved an amendment (the “Repurchase Program Amendment”) to its current repurchase program that was approved and announced on July 28, 2022. The original repurchase program authorized the repurchase of up to 5% of the Company’s outstanding common stock as of the date of the board meeting, which represented 747,938 shares, through February 1, 2023. The Repurchase Program Amendment extends the expiration date from February 1, 2023 to February 1, 2024. As of January 26, 2023, the Company repurchased and retired 416,275 shares of its common stock, leaving an aggregate of 331,663 shares in authorized repurchase authority that is the subject of the Repurchase Program Amendment.

About PCB Bancorp

Cautionary Note Regarding Forward-Looking Statements

Contact:

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000