PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company
of PCB Bank (the “Bank”), today reported net income of $5.9
million, or $0.41 per diluted common share, for the fourth quarter
of 2023, compared with $7.0 million, or $0.49 per diluted common
share, for the previous quarter and $8.7 million, or $0.58 per
diluted common share, for the year-ago quarter. For 2023, net
income was $30.7 million, or $2.12 per diluted common share,
compared with $35.0 million and $2.31 per diluted common share, for
the previous year.
Q4 2023 and Full Year Highlights
- Net income totaled $5.9 million, or $0.41 per diluted common
share, for the current quarter and $30.7 million, or $2.12 per
diluted common share for the current year;
- Recorded a provision for credit losses(1),(2) of $1.7 million
for the current quarter compared with $751 thousand for the
previous quarter and $1.1 million for the year-ago quarter. For the
current year, provision (reversal) for the credit losses was $(132)
thousand compared with $3.6 million for the previous year;
- Allowance for Credit Losses (“ACL”)(1) on loans to loans
held-for-investment ratio was 1.19% at December 31, 2023 compared
with 1.18% at September 30, 2023 and 1.22% at December 31,
2022;
- Net interest income was $21.9 million for the current quarter
compared with $22.4 million for the previous quarter and $24.3
million for the year-ago quarter. Net interest margin was 3.40% for
the current quarter compared with 3.57% for the previous quarter
and 4.15% for the year-ago quarter. For the current year, net
interest income and net interest margin were $88.5 million and
3.57%, respectively, compared with $89.6 million and 4.08%,
respectively, for the previous year;
- Gain on sale of loans was $803 thousand for the current quarter
compared with $689 thousand for the previous quarter and $759
thousand for the year-ago quarter. For the current year, gain on
sale of loans was $3.6 million compared with $8.0 million for the
previous year;
- Total assets were $2.79 billion at December 31, 2023, an
increase of $221.5 million, or 8.6%, from $2.57 billion at
September 30, 2023, and an increase of $369.5 million, or 15.3%,
from $2.42 billion at December 31, 2022;
- Loans held-for-investment were $2.32 billion at December 31,
2023, an increase of $155.8 million, or 7.2%, from $2.17 billion at
September 30, 2023, and an increase of $277.4 million, or 13.6%,
from $2.05 billion at December 31, 2022;
- Total deposits were $2.35 billion at December 31, 2023, an
increase of $159.5 million, or 7.3%, from $2.19 billion at
September 30, 2023, and an increase of $305.6 million, or 14.9%,
from $2.05 billion at December 31, 2022; and
- The Company repurchased and retired 60,074 shares of common
stock during the current quarter. For the current year, the Company
repurchased and retired 512,657 shares of common stock.
“We are pleased with our fourth quarter and full-year
performance. Our results reflect our solid business strategy of
strong relationship banking, which continues to provide strong loan
funding opportunities and stable operating performance that has
positioned us well to overcome the continued economic
uncertainties,” said Henry Kim, President and Chief Executive
Officer. “PCB’s performance for the fourth quarter of 2023
benefited from strong loan growth and higher yields on
interest-earning assets. However, the continued higher interest
rate environment and its effect on our funding costs resulted in
moderate compression in net interest margin during the quarter.
During the quarter loan balance increased 7.1% to $2.3 billion,
deposit balance increased 7.3% to $2.4 billion, and we continue to
maintain very strong credit metrics with ACL to loans ratio of
1.19%, and non-performing assets and classified assets to total
assets ratios of 0.23% and 0.34%, respectively.”
Mr. Kim added, “As we look ahead in 2024, PCB is well positioned
to continue delivering solid results with emphasis on strong
balance sheet and sound asset quality with robust capital levels
that are above our peers to operate in all economic cycles and
changing market conditions.”
----------------------------------------
(1)
Provision (reversal) for credit
losses and ACL for reporting periods beginning with January 1, 2023
are presented under ASC 326, while prior period comparisons
continue to be presented under legacy ASC 450 and ASC 310 in this
release.
(2)
Provision for credit losses on
off-balance sheet credit exposures of $57 thousand and $85
thousand, respectively, for the year-ago quarter and previous year
were recorded in Other Expense on Consolidated Statements of Income
(Unaudited).
Financial
Highlights (Unaudited)
($ in thousands, except per share
data)
Three Months
Ended
Year Ended
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
Net income
$
5,908
$
7,023
(15.9
)%
$
8,702
(32.1
)%
$
30,705
$
34,987
(12.2
)%
Diluted earnings per common share
$
0.41
$
0.49
(16.3
)%
$
0.58
(29.3
)%
$
2.12
$
2.31
(8.2
)%
Net interest income
$
21,924
$
22,449
(2.3
)%
$
24,265
(9.6
)%
$
88,504
$
89,632
(1.3
)%
Provision (reversal) for credit losses
(1)
1,698
751
126.1
%
1,149
47.8
%
(132
)
3,602
NM
Noninterest income
2,503
2,502
—
%
2,389
4.8
%
10,683
14,499
(26.3
)%
Noninterest expense
14,469
14,207
1.8
%
13,115
10.3
%
56,057
51,126
9.6
%
Return on average assets (2)
0.89
%
1.09
%
1.44
%
1.20
%
1.54
%
Return on average shareholders’ equity
(2)
6.82
%
8.12
%
10.31
%
9.02
%
11.42
%
Return on average tangible common equity
(“TCE”) (2),(3)
8.54
%
10.17
%
12.99
%
11.31
%
13.23
%
Net interest margin (2)
3.40
%
3.57
%
4.15
%
3.57
%
4.08
%
Efficiency ratio (4)
59.23
%
56.94
%
49.20
%
56.52
%
49.10
%
($ in thousands, except per share
data)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
Total assets
$
2,789,506
$
2,567,974
8.6
%
$
2,420,036
15.3
%
Net loans held-for-investment
2,295,919
2,142,006
7.2
%
2,021,121
13.6
%
Total deposits
2,351,612
2,192,129
7.3
%
2,045,983
14.9
%
Book value per common share (5)
$
24.46
$
23.87
$
22.94
TCE per common share (3)
$
19.62
$
19.05
$
18.21
Tier 1 leverage ratio (consolidated)
13.43
%
13.76
%
14.33
%
Total shareholders’ equity to total
assets
12.51
%
13.31
%
13.86
%
TCE to total assets (3), (6)
10.03
%
10.62
%
11.00
%
(1)
Provision for credit losses on
off-balance sheet credit exposures of $57 thousand and $85
thousand, respectively, for the year-ago quarter and previous year
were recorded in Other Expense on Consolidated Statements of Income
(Unaudited). See Provision (reversal) for credit losses included in
the Result of Operations discussion for additional information.
(2)
Ratios are presented on an
annualized basis.
(3)
Non-GAAP. See “Non-GAAP Measures”
for reconciliation of this measure to its most comparable GAAP
measure.
(4)
Calculated by dividing
noninterest expense by the sum of net interest income and
noninterest income.
(5)
Calculated by dividing total
shareholders’ equity by the number of outstanding common
shares.
(6)
The Company did not have any
intangible asset component for the presented periods.
Result of Operations
(Unaudited)
Net Interest Income and Net Interest Margin
The following table presents the components of net interest
income for the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
Interest income/expense on
Loans
$
37,189
$
34,651
7.3
%
$
28,786
29.2
%
$
136,029
$
95,054
43.1
%
Investment securities
1,271
1,170
8.6
%
957
32.8
%
4,679
2,907
61.0
%
Other interest-earning assets
2,491
3,031
(17.8
)%
1,833
35.9
%
10,469
3,790
176.2
%
Total interest-earning assets
40,951
38,852
5.4
%
31,576
29.7
%
151,177
101,751
48.6
%
Interest-bearing deposits
18,728
16,403
14.2
%
7,295
156.7
%
62,165
11,984
418.7
%
Borrowings
299
—
—
%
16
1,768.8
%
508
135
276.3
%
Total interest-bearing liabilities
19,027
16,403
16.0
%
7,311
160.3
%
62,673
12,119
417.1
%
Net interest income
$
21,924
$
22,449
(2.3
)%
$
24,265
(9.6
)%
$
88,504
$
89,632
(1.3
)%
Average balance of
Loans
$
2,242,457
$
2,137,184
4.9
%
$
2,004,220
11.9
%
$
2,137,851
$
1,872,557
14.2
%
Investment securities
139,227
138,993
0.2
%
134,066
3.8
%
140,596
132,538
6.1
%
Other interest-earning assets
175,336
219,115
(20.0
)%
182,018
(3.7
)%
198,809
194,205
2.4
%
Total interest-earning assets
$
2,557,020
$
2,495,292
2.5
%
$
2,320,304
10.2
%
$
2,477,256
$
2,199,300
12.6
%
Interest-bearing deposits
$
1,650,132
$
1,561,582
5.7
%
$
1,269,739
30.0
%
$
1,538,234
$
1,111,449
38.4
%
Borrowings
21,000
—
—
%
1,739
1,107.6
%
9,192
6,290
46.1
%
Total interest-bearing liabilities
$
1,671,132
$
1,561,582
7.0
%
$
1,271,478
31.4
%
$
1,547,426
$
1,117,739
38.4
%
Total funding (1)
$
2,249,026
$
2,188,320
2.8
%
$
2,043,110
10.1
%
$
2,177,200
$
1,949,360
11.7
%
Annualized average yield/cost
of
Loans
6.58
%
6.43
%
5.70
%
6.36
%
5.08
%
Investment securities
3.62
%
3.34
%
2.83
%
3.33
%
2.19
%
Other interest-earning assets
5.64
%
5.49
%
4.00
%
5.27
%
1.95
%
Total interest-earning assets
6.35
%
6.18
%
5.40
%
6.10
%
4.63
%
Interest-bearing deposits
4.50
%
4.17
%
2.28
%
4.04
%
1.08
%
Borrowings
5.65
%
—
%
3.65
%
5.53
%
2.15
%
Total interest-bearing liabilities
4.52
%
4.17
%
2.28
%
4.05
%
1.08
%
Net interest margin
3.40
%
3.57
%
4.15
%
3.57
%
4.08
%
Cost of total funding (1)
3.36
%
2.97
%
1.42
%
2.88
%
0.62
%
Supplementary information
Net accretion of discount on loans
$
806
$
775
4.0
%
$
869
(7.2
)%
$
3,003
$
3,551
(15.4
)%
Net amortization of deferred loan fees
$
449
$
226
98.7
%
$
167
168.9
%
$
1,097
$
2,181
(49.7
)%
(1)
Total funding is the sum of
interest-bearing liabilities and noninterest-bearing deposits. The
cost of total funding is calculated as annualized total interest
expense divided by average total funding.
Loans. The increases in average
yield for the current quarter compared with the previous and
year-ago quarters were primarily due to increases in overall
interest rates on loans from the rising interest rate environment
and net amortization of deferred loan fees from the increased
amount of prepayment penalties. The increase in average yield for
the current year compared with the previous year was primarily due
to the increase in overall interest rates on loans, partially
offset by decreases in net accretion of discount on loans and net
amortization of deferred loan fees from the decreased amount of SBA
PPP loan payoffs.
The following table presents a composition of total loans by
interest rate type accompanied with the weighted-average
contractual rates as of the dates indicated:
12/31/2023
9/30/2023
12/31/2022
% to Total Loans
Weighted-Average Contractual
Rate
% to Total Loans
Weighted-Average Contractual
Rate
% to Total Loans
Weighted-Average Contractual
Rate
Fixed rate loans
21.2
%
4.86
%
22.4
%
4.75
%
23.2
%
4.51
%
Hybrid rate loans
39.0
%
4.93
%
38.8
%
4.71
%
39.1
%
4.40
%
Variable rate loans
39.8
%
8.51
%
38.8
%
8.52
%
37.7
%
7.86
%
Investment Securities. The
increases in average yield for the current quarter and year were
primarily due to a decrease in net amortization of premiums on
securities and higher yield on newly purchased investment
securities.
Other Interest-Earning Assets. The
increases in average yield for the current quarter and year were
primarily due to an increased interest rate on cash held at the
Federal Reserve Bank and an increase in dividend received on
Federal Home Loan Bank stock.
Interest-Bearing Deposits. The
increases in average cost for the current quarter and year were
primarily due to an increase in market rates and the migration of
noninterest-bearing demand deposits to interest-bearing deposits
attributable to the rising market rates. To retain existing and
attract new customers, the Bank offers competitive rates on deposit
products.
Provision (Reversal) for Credit Losses
The following table presents a composition of provision
(reversal) for credit losses for the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
Provision for credit losses on loans
$
1,935
$
822
135.4
%
$
1,149
68.4
%
$
497
$
3,602
(86.2
)%
Provision (reversal) for credit losses on
off-balance sheet credit exposure (1)
(237
)
(71
)
233.8
%
57
NM
(629
)
85
NM
Total provision (reversal) for credit
losses
$
1,698
$
751
126.1
%
$
1,206
40.8
%
$
(132
)
$
3,687
NM
(1)
Provision for credit losses on
off-balance sheet credit exposures for year-ago quarter and
previous year were recorded in Other Expense on Consolidated
Statements of Income (Unaudited).
On January 1, 2023, the Company adopted the provisions of ASC
326, also known as the current expected credit losses (“CECL”)
accounting standard, through the application of the modified
retrospective transition approach. Provision (reversal) for credit
losses and ACL for reporting periods beginning with January 1, 2023
are presented under ASC 326, while prior period comparisons
continue to be presented under legacy ASC 450 and ASC 310 in this
release. See CECL Adoption and Allowance for Credit Losses sections
included in the Balance Sheet section of this release for
additional information.
The provision for credit losses on loans for the current quarter
was primarily due to an increase in loan held-for-investment.
Noninterest Income
The following table presents the components of noninterest
income for the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
Gain on sale of loans
$
803
$
689
16.5
%
$
759
5.8
%
$
3,570
$
7,990
(55.3
)%
Service charges and fees on deposits
391
371
5.4
%
352
11.1
%
1,475
1,326
11.2
%
Loan servicing income
751
851
(11.8
)%
734
2.3
%
3,330
2,969
12.2
%
Bank-owned life insurance income
202
187
8.0
%
181
11.6
%
753
706
6.7
%
Other income
356
404
(11.9
)%
363
(1.9
)%
1,555
1,508
3.1
%
Total noninterest income
$
2,503
$
2,502
—
%
$
2,389
4.8
%
$
10,683
$
14,499
(26.3
)%
Gain on Sale of Loans. The
following table presents information on gain on sale of loans for
the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
Gain on sale of SBA loans
Sold loan balance
$
20,751
$
17,697
17.3
%
$
17,448
18.9
%
$
82,343
$
122,886
(33.0
)%
Premium received
1,250
1,112
12.4
%
1,102
13.4
%
5,612
9,944
(43.6
)%
Gain recognized
803
689
16.5
%
759
5.8
%
3,570
7,982
(55.3
)%
Gain on sale of residential mortgage
loans
Sold loan balance
$
—
$
—
—
%
$
858
(100.0
)%
$
—
$
858
(100.0
)%
Gain recognized
—
—
—
%
8
(100.0
)%
—
8
(100.0
)%
Loan Servicing Income. The
following table presents information on loan servicing income for
the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
Loan servicing income
Servicing income received
$
1,290
$
1,321
(2.3
)%
$
1,284
0.5
%
$
5,212
$
5,103
2.1
%
Servicing assets amortization
(539
)
(470
)
14.7
%
(550
)
(2.0
)%
(1,882
)
(2,134
)
(11.8
)%
Loan servicing income
$
751
$
851
(11.8
)%
$
734
2.3
%
$
3,330
$
2,969
12.2
%
Underlying loans at end of period
$
532,231
$
536,424
(0.8
)%
$
531,095
0.2
%
$
532,231
$
531,095
0.2
%
The Company services SBA loans and certain residential property
loans sold to the secondary market.
Noninterest Expense
The following table presents the components of noninterest
expense for the periods indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
Salaries and employee benefits
$
8,397
$
8,572
(2.0
)%
$
7,879
6.6
%
$
34,572
$
33,056
4.6
%
Occupancy and equipment
2,145
1,964
9.2
%
1,897
13.1
%
7,924
6,481
22.3
%
Professional fees
898
685
31.1
%
607
47.9
%
3,087
2,239
37.9
%
Marketing and business promotion
772
980
(21.2
)%
724
6.6
%
2,327
2,150
8.2
%
Data processing
393
367
7.1
%
434
(9.4
)%
1,552
1,706
(9.0
)%
Director fees and expenses
207
152
36.2
%
176
17.6
%
756
706
7.1
%
Regulatory assessments
285
281
1.4
%
159
79.2
%
1,103
597
84.8
%
Other expense
1,372
1,206
13.8
%
1,239
10.7
%
4,736
4,191
13.0
%
Total noninterest expense
$
14,469
$
14,207
1.8
%
$
13,115
10.3
%
$
56,057
$
51,126
9.6
%
Salaries and Employee Benefits. The
decrease for the current quarter compared with the previous quarter
was primarily due to a decrease in vacation accrual, partially
offset by increases in salaries and other employee benefit expense,
and incentives tied to sales of SBA loans originated at loan
production offices. The increase for the current quarter compared
with the year-ago quarter was primarily due to increases in
salaries and other employee benefit expense, partially offset by a
decrease in vacation accrual. The increase for the current year
compared with the previous year was primarily due to increases in
salaries and other employee benefit expense, partially offset by
decreases in bonus and vacation accruals, and incentives tied to
sales of SBA loans originated at loan production offices. The
number of full-time equivalent employees was 270, 270 and 272 as of
December 31, 2023, September 30, 2023 and December 31, 2022,
respectively.
Occupancy and Equipment. The
increases for the current quarter compared with the previous and
year-ago quarters were primarily due to expansions of headquarters
and relocation of a regional office and branches. The Company plans
to relocate and consolidate a regional office and two branches into
one location in Orange County, California in 2024. The increase for
the current year compared with the previous year was primarily due
to the expansions of headquarters and the relocation of a regional
office and branches, as well as 3 new branch openings during the
second half of 2022. The Company opened 3 new full-service branches
in Dallas and Carrollton, Texas and Palisades Park, New Jersey
during the second half of 2022.
Professional Fees. The increases
for the current quarter and year were primarily due to increases in
consulting and internal audit fees for enhancing internal controls
and process, and professional fees related to a planned core system
conversion.
Marketing and Business Promotion.
The decrease for the current quarter compared with the previous
quarter was primarily due to the Company’s 20th anniversary
celebration during the previous quarter.
Director Fees and Expenses. The
increase for the current quarter compared with the previous quarter
was primarily due to additional expenses related to stock options
issued to directors during the current quarter.
Regulatory Assessments. The
increases for the current quarter and year compared with the same
periods of 2022 were due to an increase in FDIC assessment rates.
The FDIC increased the initial base deposit insurance assessment
rate schedules by two basis points beginning in the first quarterly
assessment period of 2023.
Other Expense. The increase for the
current quarter compared with the previous quarter was primarily
due to increases in office expense and loan related expense. The
increase for the current year was primarily due to increases in
office expenses and armed guard expenses from the branch network
expansion. Provision for credit losses on off-balance credit
exposures of $57 thousand and $85 thousand was included in other
expense for the year-ago quarter and previous year, respectively,
while the provision (reversal) for the current reporting periods
beginning January 1, 2023 was included in provision (reversal) for
credit losses.
Balance Sheet
(Unaudited)
Total assets were $2.79 billion at December 31, 2023, an
increase of $221.5 million, or 8.6%, from $2.57 billion at
September 30, 2023, and an increase of $369.5 million, or 15.3%,
from $2.42 billion at December 31, 2022. The increases for the
current quarter and year were primarily due to increases in cash
and cash equivalents, loans held-for-investment and operating lease
assets. The increase in operating lease assets was primarily due to
renewal and additional leases of the Company’s headquarters and a
new location for the relocation of a regional office and
branches.
CECL Adoption
On January 1, 2023, the Company adopted the provisions of ASC
326 through the application of the modified retrospective
transition approach. The initial adjustment to the ACL reflects the
expected lifetime credit losses associated with the composition of
financial assets within the scope of ASC 326 as of January 1, 2023,
as well as management’s current expectation of future economic
conditions. The Company recorded a net decrease of $1.9 million to
the beginning balance of retained earnings as of January 1, 2023
for the cumulative effect adjustment, reflecting an initial
adjustment to the ACL on loans of $1.1 million and the ACL on
off-balance sheet credit exposures of $1.6 million, net of related
deferred tax assets arising from temporary differences of $788
thousand. As a part of the adoption of ASC 326, the Company
reviewed and revised certain loan segments for the Company’s ACL
model. See Loan Segments Revision section of this release for a
reconciliation of revised loan segments to legacy loan segments,
which were utilized before the adoption of ASC 326.
Loans
The following table presents a composition of total loans
(includes both loans held-for-sale and loans held-for-investment)
as of the dates indicated:
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
Commercial real estate:
Commercial property
$
855,270
$
814,547
5.0
%
$
772,020
10.8
%
Business property
558,772
537,351
4.0
%
526,513
6.1
%
Multifamily
132,500
132,558
—
%
124,751
6.2
%
Construction
24,843
19,246
29.1
%
17,054
45.7
%
Total commercial real estate
1,571,385
1,503,702
4.5
%
1,440,338
9.1
%
Commercial and industrial
342,002
279,608
22.3
%
249,250
37.2
%
Consumer:
Residential mortgage
389,420
363,369
7.2
%
333,726
16.7
%
Other consumer
20,645
20,926
(1.3
)%
22,749
(9.2
)%
Total consumer
410,065
384,295
6.7
%
356,475
15.0
%
Loans held-for-investment
2,323,452
2,167,605
7.2
%
2,046,063
13.6
%
Loans held-for-sale
5,155
6,693
(23.0
)%
22,811
(77.4
)%
Total loans
$
2,328,607
$
2,174,298
7.1
%
$
2,068,874
12.6
%
The increase in loans held-for-investment for the current
quarter was primarily due to new funding and advances on lines of
credit of $468.4 million, partially offset by pay-downs and
pay-offs of $312.5 million. The increase for the current
year-to-date period was primarily due to new funding and advances
on lines of credit of $1.19 billion and purchases of residential
mortgage loans of $15.7 million, partially offset by pay-downs and
pay-offs of $923.0 million.
The decrease in loans held-for-sale for the current quarter was
primarily due to sales of $20.8 million, partially offset by new
funding of $19.3 million. The decrease for the current year-to-date
was primarily due to sales of $82.3 million and pay-downs and
pay-offs of $4.4 million, partially offset by new funding of $69.0
million.
The following table presents a composition of off-balance sheet
credit exposure as of the dates indicated:
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
Commercial property
$
11,634
$
9,827
18.4
%
$
7,006
66.1
%
Business property
9,899
8,388
18.0
%
8,396
17.9
%
Multifamily
1,800
1,800
—
%
4,500
(60.0
)%
Construction
23,739
29,293
(19.0
)%
18,211
30.4
%
Commercial and industrial
351,025
283,119
24.0
%
254,668
37.8
%
Other consumer
3,421
271
1,162.4
%
692
394.4
%
Total commitments to extend credit
401,518
332,698
20.7
%
293,473
36.8
%
Letters of credit
6,583
6,083
8.2
%
5,392
22.1
%
Total off-balance sheet credit
exposure
$
408,101
$
338,781
20.5
%
$
298,865
36.6
%
Credit Quality
The following table presents a summary of non-performing loans
and assets, and classified assets as of the dates indicated:
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
Nonaccrual loans
Commercial real estate:
Commercial property
$
958
$
686
39.7
%
$
—
—
%
Business property
2,865
2,964
(3.3
)%
2,985
(4.0
)%
Total commercial real estate
3,823
3,650
4.7
%
2,985
28.1
%
Commercial and industrial
68
72
(5.6
)%
—
—
%
Consumer:
Residential mortgage
—
—
—
%
372
(100.0
)%
Other consumer
25
8
212.5
%
3
733.3
%
Total consumer
25
8
212.5
%
375
(93.3
)%
Total nonaccrual loans
held-for-investment
3,916
3,730
5.0
%
3,360
16.5
%
Loans past due 90 days or more and still
accruing
—
—
—
%
—
—
%
Non-performing loans (“NPLs”)
held-for-investment
3,916
3,730
5.0
%
3,360
16.5
%
NPLs held-for-sale
—
—
—
%
4,000
(100.0
)%
Total NPLs
3,916
3,730
5.0
%
7,360
(46.8
)%
Other real estate owned (“OREO”)
2,558
—
—
%
—
—
%
Non-performing assets (“NPAs”)
$
6,474
$
3,730
73.6
%
$
7,360
(12.0
)%
Loans past due and still accruing
Past due 30 to 59 days
$
1,394
$
654
113.1
%
$
47
2,866.0
%
Past due 60 to 89 days
34
54
(37.0
)%
87
(60.9
)%
Past due 90 days or more
—
—
—
%
—
—
%
Total loans past due and still
accruing
$
1,428
$
708
101.7
%
134
965.7
%
Special mention loans
$
5,156
$
5,281
(2.4
)%
$
6,857
(24.8
)%
Classified assets
Classified loans held-for-investment
$
7,000
$
6,742
3.8
%
$
6,211
12.7
%
Classified loans held-for-sale
—
—
—
%
4,000
(100.0
)%
OREO
2,558
—
—
%
—
—
%
Classified assets
$
9,558
$
6,742
41.8
%
$
10,211
(6.4
)%
NPLs held-for-investment to loans
held-for-investment
0.17
%
0.17
%
0.16
%
NPAs to total assets
0.23
%
0.15
%
0.30
%
Classified assets to total assets
0.34
%
0.26
%
0.42
%
During the current quarter, the Company recognized an OREO of
$2.6 million by transferring a SBA 7(a) loan, of which its
guaranteed portion was previously sold. The Company’s exposure is
25% of the OREO and 75% will be submitted to the SBA upon the sale
of property. During the first quarter of 2023, NPLs held-for-sale
of $4.0 million were paid-off.
Allowance for Credit Losses
The following table presents activities in ACL for the periods
indicated:
Three Months
Ended
Year Ended
($ in thousands)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
ACL on loans
Balance at beginning of period
$
25,599
$
24,867
2.9
%
$
23,761
7.7
%
$
24,942
$
22,381
11.4
%
Impact of ASC 326 adoption
—
—
NM
—
NM
1,067
—
NM
Charge-offs
(13
)
(112
)
(88.4
)%
(28
)
(53.6
)%
(132
)
(1,199
)
(89.0
)%
Recoveries
12
22
(45.5
)%
60
(80.0
)%
1,159
158
633.5
%
Provision for credit losses on loans
1,935
822
135.4
%
1,149
68.4
%
497
3,602
(86.2
)%
Balance at end of period
$
27,533
$
25,599
7.6
%
$
24,942
10.4
%
$
27,533
$
24,942
10.4
%
Percentage to loans held-for-investment
at end of period
1.19
%
1.18
%
1.22
%
1.22
%
ACL on off-balance sheet credit
exposure (1)
Balance at beginning of period
$
1,514
$
1,585
(4.5
)%
$
242
525.6
%
$
299
$
214
39.7
%
Impact of ASC 326 adoption
—
—
NM
—
NM
1,607
—
NM
Provision (reversal) for credit losses on
off-balance sheet credit exposure
(237
)
(71
)
233.8
%
57
NM
(629
)
85
NM
Balance at end of period
$
1,277
$
1,514
(15.7
)%
$
299
327.1
%
$
1,277
$
299
327.1
%
(1)
ACL on off-balance sheet credit
exposures was recorded in Accrued Interest Payable and Other
Liabilities on Consolidated Balance Sheets (Unaudited).
Investment Securities
Total investment securities were $143.3 million at December 31,
2023, an increase of $4.1 million, or 2.9%, from $139.2 million at
September 30, 2023, and an increase of $1.5 million, or 1.0%, from
$141.9 million at December 31, 2022. The increase for the current
quarter was primarily due to purchases of $1.3 million and a fair
value increase of $6.4 million, partially offset by principal
pay-downs and calls of $3.6 million and net premium amortization of
$40 thousand. The increase for the current year was primarily due
to purchases of $17.3 million and a fair value increase of $2.3
million, partially offset by principal pay-downs and calls of $17.9
million and net premium amortization of $209 thousand.
Deposits
The following table presents the Company’s deposit mix as of the
dates indicated:
12/31/2023
9/30/2023
12/31/2022
($ in thousands)
Amount
% to Total
Amount
% to Total
Amount
% to Total
Noninterest-bearing demand deposits
$
594,673
25.3
%
$
611,021
27.9
%
$
734,989
35.9
%
Interest-bearing deposits
Savings
6,846
0.3
%
6,846
0.3
%
8,579
0.4
%
NOW
16,825
0.7
%
16,076
0.7
%
11,405
0.6
%
Retail money market accounts
397,531
16.8
%
436,115
19.8
%
494,749
24.1
%
Brokered money market accounts
1
0.1
%
1
0.1
%
8
0.1
%
Retail time deposits of
$250,000 or less
456,293
19.4
%
406,407
18.5
%
295,354
14.4
%
More than $250,000
515,702
21.9
%
454,406
20.8
%
353,876
17.3
%
State and brokered time deposits
363,741
15.5
%
261,257
11.9
%
147,023
7.2
%
Total interest-bearing deposits
1,756,939
74.7
%
1,581,108
72.1
%
1,310,994
64.1
%
Total deposits
$
2,351,612
100.0
%
$
2,192,129
100.0
%
$
2,045,983
100.0
%
Estimated total deposits not covered by
deposit insurance
$
947,294
40.3
%
$
983,851
44.9
%
$
1,062,111
51.9
%
The decrease in noninterest-bearing demand deposits was
primarily due to strong deposit market competition and the
migration to interest-bearing deposits attributable to the rising
market rates. To retain existing and attract new customers, the
Bank offers competitive rates on deposit products.
The increase in retail time deposits for the current quarter was
primarily due to new accounts of $188.0 million, renewals of the
matured accounts of $264.1 million and balance increases of $9.5
million, partially offset by matured and closed accounts of $350.4
million. The increase for the current year was primarily due to new
accounts of $657.0 million, renewals of the matured accounts of
$555.3 million and balance increases of $26.7 million, partially
offset by matured and closed accounts of $916.2 million.
Liquidity
The following table presents a summary of the Company’s
liquidity position as of December 31, 2023:
($ in thousands)
12/31/2023
12/31/2022
% Change
Cash and cash equivalents
$
242,342
$
147,031
64.8
%
Cash and cash equivalents to total
assets
8.7
%
6.1
%
Available borrowing capacity
FHLB advances
$
602,976
$
561,745
7.3
%
Federal Reserve Discount Window
528,893
23,902
2,112.8
%
Overnight federal funds lines
65,000
65,000
—
%
Total
$
1,196,869
$
650,647
84.0
%
Total available borrowing capacity to
total assets
42.9
%
26.9
%
During the current year, the Company increased cash and cash
equivalents by $95.3 million, or 64.8%, to $242.3 million and
available borrowing capacity by $546.2 million, or 84.0%, to $1.20
billion. During the current year, the Company began participating
in the Borrower-in Custody Program with the Federal Reserve Bank
providing additional borrowing capacity. As of December 31, 2023,
the Company's cash and cash equivalents and available borrowing
capacity covered approximately 151.9% of deposits not covered by
deposit insurance compared to 75.1% at December 31, 2022.
Shareholders’ Equity
Shareholders’ equity was $348.9 million at December 31, 2023, an
increase of $7.0 million, or 2.1%, from $341.9 million at September
30, 2023, and an increase of $13.4 million, or 4.0%, from $335.4
million at December 31, 2022. The increase for the current quarter
was primarily due to net income and a decrease in other
comprehensive loss of $4.5 million, partially offset by cash
dividends declared on common stock of $2.6 million and repurchase
of common stock of $925 thousand. The increase for the current year
was primarily due to net income, cash proceeds from exercise of
stock options of $1.4 million and a decrease in other comprehensive
loss of $1.6 million, partially offset by cash dividend declared on
common stock of $9.9 million, repurchase of common stock of $8.8
million, and cumulative effect adjustment upon adoption of ASC 326
of $1.9 million.
Stock Repurchases
On July 28, 2022, the Company’s Board of Directors approved a
stock repurchase program authorizing the repurchase of up to 5% of
the Company’s outstanding common stock, which represented 747,938
shares, through February 1, 2023. On January 26, 2023, the Company
announced the amendment to the repurchase program, which extended
the program expiration from February 1, 2023 to February 1, 2024.
The Company completed the repurchase program during the first
quarter of 2023. Under this repurchase program, the Company
repurchased and retired 747,938 shares of common stock at a
weighted-average price of $18.15 per share, totaling $13.6
million.
On August 2, 2023, the Company’s Board of Directors approved a
new stock repurchase program authorizing the repurchase of up to 5%
of the Company’s outstanding common stock, which represented
720,000 shares, through August 2, 2024. The Company repurchased and
retired 127,276 shares of common stock at a weighted-average price
of $15.58 per share, totaling $2.0 million under this repurchase
program through December 31, 2023.
For the current year, the Company repurchased and retired
512,657 shares of common stock at a weighted-average price of
$17.22, totaling $8.8 million.
Issuance of Preferred Stock Under the
Emergency Capital Investment Program
On May 24, 2022, the Company issued 69,141 shares of Senior
Non-Cumulative Perpetual Preferred Stock, Series C, liquidation
preference of $1,000 per share (“Series C Preferred Stock”) for the
capital investment of $69.1 million from the U.S. Treasury under
the Emergency Capital Investment Program (“ECIP”). The ECIP
investment is treated as tier 1 capital for regulatory capital
purposes.
The Series C Preferred Stock bears no dividend for the first 24
months following the investment date. Thereafter, the dividend rate
will be adjusted based on the lending growth criteria listed in the
terms of the ECIP investment with an annual dividend rate up to 2%.
After the tenth anniversary of the investment date, the dividend
rate will be fixed based on average annual amount of lending in
years 2 through 10.
Capital Ratios
Based on the Federal Reserve’s Small Bank Holding Company
policy, the Company is not currently subject to consolidated
minimum capital measurements. At such time as the Company reaches
the $3 billion asset level, it will be subject to consolidated
capital requirements independent of the Bank. For comparison
purposes, the Company’s capital ratios are included in following
table, which presents capital ratios for the Company and the Bank
as of the dates indicated:
12/31/2023
9/30/2023
12/31/2022
Well Capitalized
Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted
assets)
12.23
%
13.07
%
13.29
%
N/A
Total capital (to risk-weighted
assets)
16.39
%
17.48
%
17.83
%
N/A
Tier 1 capital (to risk-weighted
assets)
15.16
%
16.24
%
16.62
%
N/A
Tier 1 capital (to average assets)
13.43
%
13.76
%
14.33
%
N/A
PCB Bank
Common tier 1 capital (to risk-weighted
assets)
14.85
%
15.87
%
16.30
%
6.5
%
Total capital (to risk-weighted
assets)
16.07
%
17.11
%
17.52
%
10.0
%
Tier 1 capital (to risk-weighted
assets)
14.85
%
15.87
%
16.30
%
8.0
%
Tier 1 capital (to average assets)
13.16
%
13.44
%
14.05
%
5.0
%
About PCB Bancorp
PCB Bancorp is the bank holding company for PCB Bank, a
California state chartered bank, offering a full suite of
commercial banking services to small to medium-sized businesses,
individuals and professionals, primarily in Southern California,
and predominantly in Korean-American and other minority
communities.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking statements. These
forward-looking statements represent plans, estimates, objectives,
goals, guidelines, expectations, intentions, projections and
statements of our beliefs concerning future events, business plans,
objectives, expected operating results and the assumptions upon
which those statements are based. Forward-looking statements
include without limitation, any statement that may predict,
forecast, indicate or imply future results, performance or
achievements, and are typically identified with words such as
“may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,”
“estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases
of similar meaning. We caution that the forward-looking statements
are based largely on our expectations and are subject to a number
of known and unknown risks and uncertainties that are subject to
change based on factors which are, in many instances, beyond our
control, including but not limited to the health of the national
and local economies including the impact to the Company and its
customers resulting from changes to, and the level of, inflation
and interest rates; the Company’s ability to maintain and grow its
deposit base; loan demand and continued portfolio performance; the
impact of adverse developments at other banks, including bank
failures, that impact general sentiment regarding the stability and
liquidity of banks that could affect the Company’s liquidity,
financial performance and stock price; changes to valuations of the
Company’s assets and liabilities including the allowance for credit
losses, earning assets, and intangible assets; changes to the
availability of liquidity sources including borrowing lines and the
ability to pledge or sell certain assets; the Company's ability to
attract and retain skilled employees; customers' service
expectations; cyber security risks; the Company's ability to
successfully deploy new technology; acquisitions and branch and
loan production office expansions; operational risks including the
ability to detect and prevent errors and fraud; the effectiveness
of the Company’s enterprise risk management framework; costs
related to litigation; changes in laws, rules, regulations, or
interpretations to which the Company is subject; the effects of
severe weather events, pandemics, other public health crises, acts
of war or terrorism, and other external events on our business.
These and other important factors are detailed in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022 and
other filings the Company makes with the SEC, which are available
at the SEC’s Internet site (http://www.sec.gov) or from the Company
without charge. Actual results, performance or achievements could
differ materially from those contemplated, expressed, or implied by
the forward-looking statements. Any forward-looking statements
presented herein are made only as of the date of this press
release, and the Company does not undertake any obligation to
update or revise any forward-looking statements to reflect changes
in assumptions, the occurrence of unanticipated events, or
otherwise, except as required by law.
PCB Bancorp and Subsidiary
Consolidated Balance Sheets
(Unaudited)
($ in thousands, except share and per
share data)
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
Assets
Cash and due from banks
$
26,518
$
22,691
16.9
%
$
23,202
14.3
%
Interest-bearing deposits in other
financial institutions
215,824
169,659
27.2
%
123,829
74.3
%
Total cash and cash equivalents
242,342
192,350
26.0
%
147,031
64.8
%
Securities available-for-sale, at fair
value
143,323
139,218
2.9
%
141,863
1.0
%
Loans held-for-sale
5,155
6,693
(23.0
)%
22,811
(77.4
)%
Loans held-for-investment
2,323,452
2,167,605
7.2
%
2,046,063
13.6
%
Allowance for credit losses on loans
(27,533
)
(25,599
)
7.6
%
(24,942
)
10.4
%
Net loans held-for-investment
2,295,919
2,142,006
7.2
%
2,021,121
13.6
%
Premises and equipment, net
5,999
6,229
(3.7
)%
6,916
(13.3
)%
Federal Home Loan Bank and other bank
stock
12,716
12,716
—
%
10,183
24.9
%
Other real estate owned, net
2,558
—
NM
—
NM
Bank-owned life insurance
30,817
30,615
0.7
%
30,064
2.5
%
Deferred tax assets, net
—
4,486
(100.0
)%
3,115
(100.0
)%
Servicing assets
6,666
6,920
(3.7
)%
7,347
(9.3
)%
Operating lease assets
18,913
5,626
236.2
%
6,358
197.5
%
Accrued interest receivable
9,468
8,731
8.4
%
7,472
26.7
%
Other assets
15,630
12,384
26.2
%
15,755
(0.8
)%
Total assets
$
2,789,506
$
2,567,974
8.6
%
$
2,420,036
15.3
%
Liabilities
Deposits
Noninterest-bearing demand
$
594,673
$
611,021
(2.7
)%
$
734,989
(19.1
)%
Savings, NOW and money market accounts
421,203
459,038
(8.2
)%
514,741
(18.2
)%
Time deposits of $250,000 or less
760,034
607,664
25.1
%
382,377
98.8
%
Time deposits of more than $250,000
575,702
514,406
11.9
%
413,876
39.1
%
Total deposits
2,351,612
2,192,129
7.3
%
2,045,983
14.9
%
Federal Home Loan Bank advances
39,000
—
NM
20,000
95.0
%
Deferred tax liabilities, net
876
—
NM
—
NM
Operating lease liabilities
20,137
5,852
244.1
%
6,809
195.7
%
Accrued interest payable and other
liabilities
29,009
28,141
3.1
%
11,802
145.8
%
Total liabilities
2,440,634
2,226,122
9.6
%
2,084,594
17.1
%
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock
69,141
69,141
—
%
69,141
—
%
Common stock
142,563
143,401
(0.6
)%
149,631
(4.7
)%
Retained earnings
146,092
142,750
2.3
%
127,181
14.9
%
Accumulated other comprehensive loss,
net
(8,924
)
(13,440
)
(33.6
)%
(10,511
)
(15.1
)%
Total shareholders’ equity
348,872
341,852
2.1
%
335,442
4.0
%
Total liabilities and shareholders’
equity
$
2,789,506
$
2,567,974
8.6
%
$
2,420,036
15.3
%
Outstanding common shares
14,260,440
14,319,014
14,625,474
Book value per common share (1)
$
24.46
$
23.87
$
22.94
TCE per common share (2)
$
19.62
$
19.05
$
18.21
Total loan to total deposit ratio
99.02
%
99.19
%
101.12
%
Noninterest-bearing deposits to total
deposits
25.29
%
27.87
%
35.92
%
(1)
The ratios are calculated by
dividing total shareholders’ equity by the number of outstanding
common shares. The Company did not have any intangible equity
components for the presented periods.
(2)
Non-GAAP. See “Non-GAAP Measures”
for reconciliation of this measure to its most comparable GAAP
measure.
PCB Bancorp and Subsidiary
Consolidated Statements of Income
(Unaudited)
($ in thousands, except share and per
share data)
Three Months
Ended
Year Ended
12/31/2023
9/30/2023
% Change
12/31/2022
% Change
12/31/2023
12/31/2022
% Change
Interest and dividend income
Loans, including fees
$
37,189
$
34,651
7.3
%
$
28,786
29.2
%
$
136,029
$
95,054
43.1
%
Investment securities
1,271
1,170
8.6
%
957
32.8
%
4,679
2,907
61.0
%
Other interest-earning assets
2,491
3,031
(17.8
)%
1,833
35.9
%
10,469
3,790
176.2
%
Total interest income
40,951
38,852
5.4
%
31,576
29.7
%
151,177
101,751
48.6
%
Interest expense
Deposits
18,728
16,403
14.2
%
7,295
156.7
%
62,165
11,984
418.7
%
Other borrowings
299
—
—
%
16
1,768.8
%
508
135
276.3
%
Total interest expense
19,027
16,403
16.0
%
7,311
160.3
%
62,673
12,119
417.1
%
Net interest income
21,924
22,449
(2.3
)%
24,265
(9.6
)%
88,504
89,632
(1.3
)%
Provision (reversal) for credit losses
1,698
751
126.1
%
1,149
47.8
%
(132
)
3,602
NM
Net interest income after provision
(reversal) for credit losses
20,226
21,698
(6.8
)%
23,116
(12.5
)%
88,636
86,030
3.0
%
Noninterest income
Gain on sale of loans
803
689
16.5
%
759
5.8
%
3,570
7,990
(55.3
)%
Service charges and fees on deposits
391
371
5.4
%
352
11.1
%
1,475
1,326
11.2
%
Loan servicing income
751
851
(11.8
)%
734
2.3
%
3,330
2,969
12.2
%
Bank-owned life insurance income
202
187
8.0
%
181
11.6
%
753
706
6.7
%
Other income
356
404
(11.9
)%
363
(1.9
)%
1,555
1,508
3.1
%
Total noninterest income
2,503
2,502
—
%
2,389
4.8
%
10,683
14,499
(26.3
)%
Noninterest expense
Salaries and employee benefits
8,397
8,572
(2.0
)%
7,879
6.6
%
34,572
33,056
4.6
%
Occupancy and equipment
2,145
1,964
9.2
%
1,897
13.1
%
7,924
6,481
22.3
%
Professional fees
898
685
31.1
%
607
47.9
%
3,087
2,239
37.9
%
Marketing and business promotion
772
980
(21.2
)%
724
6.6
%
2,327
2,150
8.2
%
Data processing
393
367
7.1
%
434
(9.4
)%
1,552
1,706
(9.0
)%
Director fees and expenses
207
152
36.2
%
176
17.6
%
756
706
7.1
%
Regulatory assessments
285
281
1.4
%
159
79.2
%
1,103
597
84.8
%
Other expense
1,372
1,206
13.8
%
1,239
10.7
%
4,736
4,191
13.0
%
Total noninterest expense
14,469
14,207
1.8
%
13,115
10.3
%
56,057
51,126
9.6
%
Income before income taxes
8,260
9,993
(17.3
)%
12,390
(33.3
)%
43,262
49,403
(12.4
)%
Income tax expense
2,352
2,970
(20.8
)%
3,688
(36.2
)%
12,557
14,416
(12.9
)%
Net income
$
5,908
$
7,023
(15.9
)%
$
8,702
(32.1
)%
$
30,705
$
34,987
(12.2
)%
Earnings per common share
Basic
$
0.41
$
0.49
$
0.59
$
2.14
$
2.35
Diluted
$
0.41
$
0.49
$
0.58
$
2.12
$
2.31
Average common shares
Basic
14,223,831
14,294,802
14,700,010
14,301,691
14,822,018
Diluted
14,316,581
14,396,216
14,904,106
14,417,938
15,065,175
Dividend paid per common share
$
0.18
$
0.18
$
0.15
$
0.69
$
0.60
Return on average assets (1)
0.89
%
1.09
%
1.44
%
1.20
%
1.54
%
Return on average shareholders’ equity
(1)
6.82
%
8.12
%
10.31
%
9.02
%
11.42
%
Return on average TCE (1), (2)
8.54
%
10.17
%
12.99
%
11.31
%
13.23
%
Efficiency ratio (3)
59.23
%
56.94
%
49.20
%
56.52
%
49.10
%
(1)
Ratios are presented on an
annualized basis.
(2)
Non-GAAP. See “Non-GAAP Measures”
for reconciliation of this measure to its most comparable GAAP
measure.
(3)
The ratios are calculated by
dividing noninterest expense by the sum of net interest income and
noninterest income.
PCB Bancorp and Subsidiary
Average Balance, Average Yield, and
Average Rate (Unaudited)
($ in thousands)
Three Months Ended
12/31/2023
9/30/2023
12/31/2022
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Average Balance
Interest Income/
Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$
2,242,457
$
37,189
6.58
%
$
2,137,184
$
34,651
6.43
%
$
2,004,220
$
28,786
5.70
%
Mortgage-backed securities
100,500
855
3.38
%
98,534
750
3.02
%
90,346
585
2.57
%
Collateralized mortgage obligation
23,970
259
4.29
%
24,959
262
4.16
%
25,570
221
3.43
%
SBA loan pool securities
7,453
81
4.31
%
7,842
81
4.10
%
9,545
71
2.95
%
Municipal bonds (2)
3,110
29
3.70
%
3,602
30
3.30
%
4,050
33
3.23
%
Corporate bonds
4,194
47
4.45
%
4,056
47
4.60
%
4,555
47
4.09
%
Other interest-earning assets
175,336
2,491
5.64
%
219,115
3,031
5.49
%
182,018
1,833
4.00
%
Total interest-earning assets
2,557,020
40,951
6.35
%
2,495,292
38,852
6.18
%
2,320,304
31,576
5.40
%
Noninterest-earning assets
Cash and due from banks
23,034
21,298
21,139
ACL on loans
(25,663
)
(24,869
)
(23,800
)
Other assets
87,759
71,512
78,069
Total noninterest-earning assets
85,130
67,941
75,408
Total assets
$
2,642,150
$
2,563,233
$
2,395,712
Liabilities and Shareholders’
Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$
450,408
4,418
3.89
%
$
481,341
4,398
3.62
%
$
540,312
2,852
2.09
%
Savings
6,947
4
0.23
%
7,197
4
0.22
%
10,692
3
0.11
%
Time deposits
1,192,777
14,306
4.76
%
1,073,044
12,001
4.44
%
718,735
4,440
2.45
%
Total interest-bearing deposits
1,650,132
18,728
4.50
%
1,561,582
16,403
4.17
%
1,269,739
7,295
2.28
%
Other borrowings
21,000
299
5.65
%
—
—
—
%
1,739
16
3.65
%
Total interest-bearing liabilities
1,671,132
19,027
4.52
%
1,561,582
16,403
4.17
%
1,271,478
7,311
2.28
%
Noninterest-bearing liabilities
Noninterest-bearing demand
577,894
626,738
771,632
Other liabilities
49,389
31,769
17,770
Total noninterest-bearing liabilities
627,283
658,507
789,402
Total liabilities
2,298,415
2,220,089
2,060,880
Total shareholders’ equity
343,735
343,144
334,832
Total liabilities and shareholders’
equity
$
2,642,150
$
2,563,233
$
2,395,712
Net interest income
$
21,924
$
22,449
$
24,265
Net interest spread (3)
1.83
%
2.01
%
3.12
%
Net interest margin (4)
3.40
%
3.57
%
4.15
%
Total deposits
$
2,228,026
$
18,728
3.33
%
$
2,188,320
$
16,403
2.97
%
$
2,041,371
$
7,295
1.42
%
Total funding (5)
$
2,249,026
$
19,027
3.36
%
$
2,188,320
$
16,403
2.97
%
$
2,043,110
$
7,311
1.42
%
(1)
Total loans include both loans
held-for-sale and loans held-for-investment.
(2)
The yield on municipal bonds has
not been computed on a tax-equivalent basis.
(3)
Net interest spread is calculated
by subtracting average rate on interest-bearing liabilities from
average yield on interest-earning assets.
(4)
Net interest margin is calculated
by dividing annualized net interest income by average
interest-earning assets.
(5)
Total funding is the sum of
interest-bearing liabilities and noninterest-bearing deposits. The
cost of total funding is calculated as annualized total interest
expense divided by average total funding.
(6)
Annualized.
PCB Bancorp and Subsidiary
Average Balance, Average Yield, and
Average Rate (Unaudited)
($ in thousands)
Year Ended
12/31/2023
12/31/2022
Average Balance
Interest Income/
Expense
Avg. Yield/Rate
Average Balance
Interest Income/
Expense
Avg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)
$
2,137,851
$
136,029
6.36
%
$
1,872,557
$
95,054
5.08
%
Mortgage-backed securities
98,903
3,001
3.03
%
89,066
1,826
2.05
%
Collateralized mortgage obligation
25,466
1,039
4.08
%
23,479
545
2.32
%
SBA loan pool securities
8,166
325
3.98
%
10,309
208
2.02
%
Municipal bonds (2)
3,788
126
3.33
%
4,874
140
2.87
%
Corporate bonds
4,273
188
4.40
%
4,810
188
3.91
%
Other interest-earning assets
198,809
10,469
5.27
%
194,205
3,790
1.95
%
Total interest-earning assets
2,477,256
151,177
6.10
%
2,199,300
101,751
4.63
%
Noninterest-earning assets
Cash and due from banks
21,565
20,735
ACL on loans
(25,495
)
(22,125
)
Other assets
76,433
73,951
Total noninterest-earning assets
72,503
72,561
Total assets
$
2,549,759
$
2,271,861
Liabilities and Shareholders’
Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$
470,750
16,190
3.44
%
$
504,275
4,970
0.99
%
Savings
7,499
18
0.24
%
14,068
9
0.06
%
Time deposits
1,059,985
45,957
4.34
%
593,106
7,005
1.18
%
Total interest-bearing deposits
1,538,234
62,165
4.04
%
1,111,449
11,984
1.08
%
Other borrowings
9,192
508
5.53
%
6,290
135
2.15
%
Total interest-bearing liabilities
1,547,426
62,673
4.05
%
1,117,739
12,119
1.08
%
Noninterest-bearing liabilities
Noninterest-bearing demand
629,774
831,621
Other liabilities
32,051
16,061
Total noninterest-bearing liabilities
661,825
847,682
Total liabilities
2,209,251
1,965,421
Total shareholders’ equity
340,508
306,440
Total liabilities and shareholders’
equity
$
2,549,759
$
2,271,861
Net interest income
$
88,504
$
89,632
Net interest spread (3)
2.05
%
3.55
%
Net interest margin (4)
3.57
%
4.08
%
Total deposits
$
2,168,008
$
62,165
2.87
%
$
1,943,070
$
11,984
0.62
%
Total funding (5)
$
2,177,200
$
62,673
2.88
%
$
1,949,360
$
12,119
0.62
%
(1)
Total loans include both loans
held-for-sale and loans held-for-investment.
(2)
The yield on municipal bonds has
not been computed on a tax-equivalent basis.
(3)
Net interest spread is calculated
by subtracting average rate on interest-bearing liabilities from
average yield on interest-earning assets.
(4)
Net interest margin is calculated
by dividing annualized net interest income by average
interest-earning assets.
(5)
Total funding is the sum of
interest-bearing liabilities and noninterest-bearing deposits. The
cost of total funding is calculated as annualized total interest
expense divided by average total funding.
PCB Bancorp and Subsidiary Loan Segments Revision
(Unaudited) ($ in thousands)
As a part of the adoption of ASC 326, the Company reviewed and
revised certain loan segments for the Company’s ACL model. Before
the adoption of ASC 326, commercial property and SBA property loans
were separately presented and represented 63.0% and 6.6% of loans
held-for-investment at December 31, 2022, respectively. The Company
re-divided these loan segments into commercial property (non-owner
occupied), business property (owner occupied) and multifamily loans
as these new loan segments are determined to share similar
characteristics under the Company’s ACL model. In addition, four
loan segments before the adoption of ASC 326 (commercial term
loans, commercial lines of credit, SBA term loans and SBA PPP
loans), which represented 12.2% of loans held-for-investment at
December 31, 2022, are combined into a single loan segment,
commercial and industrial loans, as these loans are determined to
share similar risk characteristics under the Company’s ACL model.
In this release, loan segments on loan related disclosures for
prior period comparisons are revised accordingly in order to be
comparable to the Company’s new loan segments.
The following table presents a reconciliation of revised loan
segments to legacy loan segments, which were utilized before the
adoption of ASC 326:
($ in thousands)
12/31/2023
9/30/2023
12/31/2022
Revision for commercial real estate
loans
Revised loan segments:
Commercial property
$
855,270
$
814,547
$
772,020
Business property
558,772
537,351
526,513
Multifamily
132,500
132,558
124,751
Total
$
1,546,542
$
1,484,456
$
1,423,284
Legacy loan segments:
Commercial property
$
1,418,693
$
1,354,590
$
1,288,392
SBA property
127,849
129,866
134,892
Total
$
1,546,542
$
1,484,456
$
1,423,284
Revision for commercial and industrial
loans
Revised loan segments:
Commercial and industrial
$
342,002
$
279,608
$
249,250
Legacy loan segments:
Commercial term
$
122,513
$
87,892
$
77,700
Commercial lines of credit
201,031
174,585
154,142
SBA commercial term
17,754
16,272
16,211
SBA PPP
704
859
1,197
Total
$
342,002
$
279,608
$
249,250
PCB Bancorp and Subsidiary Non-GAAP Measures ($ in
thousands)
Return on average tangible common equity, tangible common
equity per common share and tangible common equity to total assets
ratios
The Company's TCE is calculated by subtracting preferred stock
from shareholders’ equity. The Company does not have any intangible
assets for the presented periods. Return on average TCE, TCE per
common share, and TCE to total assets constitute supplemental
financial information determined by methods other than in
accordance with GAAP. These non-GAAP measures are used by
management in its analysis of the Company's performance. These
non-GAAP measures should not be viewed as substitutes for results
determined in accordance with GAAP, nor are they necessarily
comparable to non-GAAP measures that may be presented by other
companies. The following tables provide reconciliations of the
non-GAAP measures with financial measures defined by GAAP.
($ in thousands)
Three Months
Ended
Year Ended
12/31/2023
9/30/2023
12/31/2022
12/31/2023
12/31/2022
Average total shareholders' equity
(a)
$
343,735
$
343,144
$
334,832
$
340,508
$
306,440
Less: average preferred stock
(b)
69,141
69,141
69,141
69,141
42,053
Average TCE
(c)=(a)-(b)
$
274,594
$
274,003
$
265,691
$
271,367
$
264,387
Net income
(d)
$
5,908
$
7,023
$
8,702
$
30,705
$
34,987
Return on average shareholder's equity
(1)
(d)/(a)
6.82
%
8.12
%
10.31
%
9.02
%
11.42
%
Return on average TCE (1)
(d)/(c)
8.54
%
10.17
%
12.99
%
11.31
%
13.23
%
(1)
Annualized.
($ in thousands, except per share
data)
12/31/2023
9/30/2023
12/31/2022
Total shareholders' equity
(a)
$
348,872
$
341,852
$
335,442
Less: preferred stock
(b)
69,141
69,141
69,141
TCE
(c)=(a)-(b)
$
279,731
$
272,711
$
266,301
Outstanding common shares
(d)
14,260,440
14,319,014
14,625,474
Book value per common share
(a)/(d)
$
24.46
$
23.87
$
22.94
TCE per common share
(c)/(d)
$
19.62
$
19.05
$
18.21
Total assets
(e)
$
2,789,506
$
2,567,974
$
2,420,036
Total shareholders' equity to total
assets
(a)/(e)
12.51
%
13.31
%
13.86
%
TCE to total assets
(c)/(e)
10.03
%
10.62
%
11.00
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240125300198/en/
Timothy Chang Executive Vice President & Chief Financial
Officer 213-210-2000
Grafico Azioni PCB Bancorp (NASDAQ:PCB)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni PCB Bancorp (NASDAQ:PCB)
Storico
Da Gen 2024 a Gen 2025
