EX-99.1 2 pcbpr20250424earnings.htm EX-99.1 Document

Exhibit 99.1
pcbbancorp.jpg
PCB Bancorp Reports Earnings for Q1 2025
Los Angeles, California - April 24, 2025 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $7.7 million, or $0.53 per diluted common share, for the first quarter of 2025, compared with $6.7 million, or $0.46 per diluted common share, for the previous quarter and $4.7 million, or $0.33 per diluted common share, for the year-ago quarter.
Q1 2025 Highlights
•Net income available to common shareholders totaled $7.7 million, or $0.53 per diluted common share, for the current quarter;
•Provision for credit losses was $1.6 million for the current quarter compared with $2.0 million for the previous quarter and $1.1 million for the year-ago quarter;
•Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.17% at March 31, 2025 compared with 1.16% at December 31, 2024 and 1.18% at March 31, 2024;
•Net interest income was $24.3 million for the current quarter compared with $23.2 million for the previous quarter and $21.0 million for the year-ago quarter. Net interest margin was 3.28% for the current quarter compared with 3.18% for the previous quarter and 3.10% for the year-ago quarter;
•Gain on sale of loans was $887 thousand for the current quarter compared with $1.2 million for the previous quarter and $1.1 million for the year-ago quarter;
•Total assets were $3.18 billion at March 31, 2025, an increase of $119.8 million, or 3.9%, from $3.06 billion at December 31, 2024 and an increase of $329.5 million, or 11.5%, from $2.85 billion at March 31, 2024;
•Loans held-for-investment were $2.73 billion at March 31, 2025, an increase of $98.2 million, or 3.7%, from $2.63 billion at December 31, 2024 and an increase of $329.6 million, or 13.7%, from $2.40 billion at March 31, 2024; and
•Total deposits were $2.71 billion at March 31, 2025, an increase of $98.6 million, or 3.8%, from $2.62 billion at December 31, 2024 and an increase of $311.6 million, or 13.0%, from $2.40 billion at March 31, 2024.
“Our strong first quarter results were highlighted by continued robust growth in loan and deposit balances, expansion in net interest margin, and outstanding credit metrics,” said Henry Kim, President and CEO. “In light of the recent news on tariffs and trade restrictions, and current volatility in capital markets, the outlook for the near future appears increasingly uncertain. Nevertheless, as a relationship bank, we are well-positioned to withstand such economic disturbance, continue our focus on successfully executing our long-term strategies and serving our customers.”
Mr. Kim continued, “In addition to our strong balance sheet growth, our credit quality remains strong, and capital level remains robust, supporting the needs of our borrowers while ensuring the safety and soundness of the bank. Our outlook for the year remains positive as our organic growth continues to outpace our peer group. While we closely monitor the current geopolitical environment, we are well positioned to grow our balance sheet, operate efficiently, expand our branch network, and increase profitability and shareholders’ value.”
1

Financial Highlights (Unaudited)
($ in thousands, except per share data)
Three Months Ended
3/31/202512/31/2024
% Change
3/31/2024
% Change
Net income$7,735 $7,030 10.0 %$4,685 65.1 %
Net income available to common shareholders$7,695 $6,684 15.1 %$4,685 64.2 %
Diluted earnings per common share$0.53 $0.46 15.2 %$0.33 60.6 %
Net interest income$24,283 $23,164 4.8 %$20,999 15.6 %
Provision for credit losses1,598 2,002 (20.2)%1,090 46.6 %
Noninterest income2,580 3,043 (15.2)%2,945 (12.4)%
Noninterest expense14,474 13,894 4.2 %16,352 (11.5)%
Return on average assets (1)
1.01 %0.94 %0.67 %
Return on average shareholders’ equity (1)
8.53 %7.69 %5.39 %
Return on average tangible common equity (“TCE”) (1),(2)
10.45 %9.02 %6.72 %
Net interest margin (1)
3.28 %3.18 %3.10 %
Efficiency ratio (3)
53.88 %53.02 %68.29 %
($ in thousands, except per share data)3/31/202512/31/2024% Change3/31/2024% Change
Total assets
$3,183,758 $3,063,971 3.9 %$2,854,292 11.5 %
Net loans held-for-investment
2,695,668 2,598,759 3.7 %2,369,632 13.8 %
Total deposits
2,714,399 2,615,791 3.8 %2,402,840 13.0 %
Book value per common share (4)
$25.78 $25.30 $24.54 
TCE per common share (2)
$20.97 $20.49 $19.69 
Tier 1 leverage ratio (consolidated)
12.14 %12.45 %12.73 %
Total shareholders’ equity to total assets11.65 %11.87 %12.26 %
TCE to total assets (2), (5)
9.48 %9.62 %9.84 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(3)Calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
(4)Calculated by dividing total shareholders’ equity by the number of outstanding common shares.
(5)The Company did not have any intangible asset component for the presented periods.


2

Result of Operations (Unaudited)
Net Interest Income and Net Interest Margin
The following table presents the components of net interest income for the periods indicated:
Three Months Ended
($ in thousands)3/31/202512/31/2024
% Change
3/31/2024% Change
Interest income/expense on
Loans
$43,026 $42,309 1.7 %$39,251 9.6 %
Investment securities
1,408 1,388 1.4 %1,246 13.0 %
Other interest-earning assets
2,458 2,622 (6.3)%3,058 (19.6)%
Total interest-earning assets
46,892 46,319 1.2 %43,555 7.7 %
Interest-bearing deposits
22,564 22,927 (1.6)%21,967 2.7 %
Borrowings
45 228 (80.3)%589 (92.4)%
Total interest-bearing liabilities
22,609 23,155 (2.4)%22,556 0.2 %
Net interest income
$24,283 $23,164 4.8 %$20,999 15.6 %
Average balance of
Loans
$2,649,037 $2,538,310 4.4 %$2,370,027 11.8 %
Investment securities
146,540 147,943 (0.9)%140,459 4.3 %
Other interest-earning assets
209,375 207,234 1.0 %217,002 (3.5)%
Total interest-earning assets
$3,004,952 $2,893,487 3.9 %$2,727,488 10.2 %
Interest-bearing deposits
$2,140,201 $1,986,901 7.7 %$1,827,209 17.1 %
Borrowings
3,933 17,946 (78.1)%42,187 (90.7)%
Total interest-bearing liabilities
$2,144,134 $2,004,847 6.9 %$1,869,396 14.7 %
Total funding (1)
$2,660,764 $2,548,818 4.4 %$2,412,207 10.3 %
Annualized average yield/cost of 
Loans
6.59 %6.63 %6.66 %
Investment securities
3.90 %3.73 %3.57 %
Other interest-earning assets
4.76 %5.03 %5.67 %
Total interest-earning assets6.33 %6.37 %6.42 %
Interest-bearing deposits
4.28 %4.59 %4.84 %
Borrowings
4.64 %5.05 %5.62 %
Total interest-bearing liabilities4.28 %4.59 %4.85 %
Net interest margin3.28 %3.18 %3.10 %
Cost of total funding (1)
3.45 %3.61 %3.76 %
Supplementary information
Net accretion of discount on loans$872 $645 35.2 %$573 52.2 %
Net amortization of deferred loan fees$266 $295 (9.8)%$334 (20.4)%
(1)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

3

Loans. The decreases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to decreases in market rates and net amortization of deferred loan fees, partially offset by an increase in net accretion of discount on loans.
The following table presents a composition of total loans by interest rate type accompanied with the weighted-average contractual rates as of the dates indicated:
3/31/202512/31/20243/31/2024
% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate
Fixed rate loans
17.8 %5.35 %17.4 %5.23 %20.0 %4.92 %
Hybrid rate loans
38.0 %5.36 %37.3 %5.27 %38.6 %5.01 %
Variable rate loans
44.2 %7.52 %45.3 %7.63 %41.4 %8.46 %
Investment Securities. The increases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to higher yields on newly purchased investment securities and a decrease in net amortization of premium.
Other Interest-Earning Assets. The decreases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to a decrease in average interest rate on cash held at the Federal Reserve Bank (“FRB”), partially offset by an increase in dividends received on Federal Home Loan Bank (“FHLB”) stock.
Interest-Bearing Deposits. The decreases in average cost for the current quarter compared with the previous and year-ago quarters were primarily due to a decrease in market rates.
Provision (Reversal) for Credit Losses
The following table presents a composition of provision (reversal) for credit losses for the periods indicated:
Three Months Ended
($ in thousands)3/31/202512/31/2024
% Change
3/31/2024
% Change
Provision for credit losses on loans$1,591 $2,044 (22.2)%$922 72.6 %
Provision (reversal) for credit losses on off-balance sheet credit exposure7 (42)NM168 (95.8)%
Total provision for credit losses$1,598 $2,002 (20.2)%$1,090 46.6 %
The provision for credit losses on loans for the current quarter was primarily due to an increase in loans held-for-investment.
4

Noninterest Income
The following table presents the components of noninterest income for the periods indicated:
Three Months Ended
($ in thousands)3/31/202512/31/2024
% Change
3/31/2024
% Change
Gain on sale of loans
$887 $1,161 (23.6)%$1,078 (17.7)%
Service charges and fees on deposits
372 404 (7.9)%378 (1.6)%
Loan servicing income
725 861 (15.8)%919 (21.1)%
Bank-owned life insurance income247 246 0.4 %228 8.3 %
Other income
349 371 (5.9)%342 2.0 %
Total noninterest income
$2,580 $3,043 (15.2)%$2,945 (12.4)%
Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:
Three Months Ended
($ in thousands)3/31/202512/31/2024% Change3/31/2024% Change
Gain on sale of SBA loans
Sold loan balance
$16,605 $24,518 (32.3)%$19,414 (14.5)%
Premium received
1,208 1,910 (36.8)%1,596 (24.3)%
Gain recognized
887 1,161 (23.6)%1,078 (17.7)%
Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:
Three Months Ended
($ in thousands)3/31/202512/31/2024
% Change
3/31/2024
% Change
Loan servicing income
Servicing income received
$1,273 $1,255 1.4 %$1,293 (1.5)%
Servicing assets amortization
(548)(394)39.1 %(374)46.5 %
Loan servicing income$725 $861 (15.8)%$919 (21.1)%
Underlying loans at end of period
$510,927 $523,797 (2.5)%$540,039 (5.4)%
The Company services SBA loans and certain residential property loans sold to the secondary market.
5

Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated:
Three Months Ended
($ in thousands)3/31/202512/31/2024% Change3/31/2024% Change
Salaries and employee benefits
$9,075 $8,417 7.8 %$9,218 (1.6)%
Occupancy and equipment
2,289 2,198 4.1 %2,358 (2.9)%
Professional fees
628 752 (16.5)%1,084 (42.1)%
Marketing and business promotion
243 582 (58.2)%319 (23.8)%
Data processing
333 205 62.4 %402 (17.2)%
Director fees and expenses
226 227 (0.4)%232 (2.6)%
Regulatory assessments
344 322 6.8 %298 15.4 %
Other expense1,336 1,191 12.2 %2,441 (45.3)%
Total noninterest expense
$14,474 $13,894 4.2 %$16,352 (11.5)%
Salaries and Employee Benefits. The increase for the current quarter compared with the previous quarter was primarily due to increases in bonus and vacation accruals, and other employee benefits, partially offset by a decrease in salaries. The decrease for the current quarter compared with the year-ago quarter was primarily due to a decrease in salaries and an increase in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense, partially offset by an increase in bonus accrual. The number of full-time equivalent employees was 257, 262 and 272 as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
Professional Fees. The decrease for the current quarter compared with the previous quarter was due to a higher internal audit fees for the previous quarter as a part of the year-end process. The decrease for the current quarter compared with the year-ago quarter was primarily due to other professional fees for the year-ago quarter related to a core system conversion that was completed in April 2024.
Marketing and Business Promotion. The decrease for the current quarter compared with the previous was primarily due to year-end promotions during the previous quarter. The decrease for the current quarter compared with the year-ago quarter was primarily due to a decrease in advertising.
Data Processing. The increase for the current quarter compared with the previous quarter was primarily due to a one-time new relationship credit recognized during the previous quarter from the core system conversion completed in April 2024. The decrease for the current quarter compared with the year-ago quarter was primarily due to a decrease in overall service charges after the core system conversion.
Other Expense. The increase for the current quarter compared with the previous quarter was primarily due to an impairment on operating lease assets of $146 thousand for a sublease contract and recognition of contingent liabilities for legal settlements of $183 thousand. The decrease for the current quarter compared with the year-ago quarter was primarily due to a termination charge for the legacy core system of $508 thousand and an expense of $815 thousand for a reimbursement for an SBA loan guarantee previously paid by the SBA on a loan originated in 2014 that subsequently defaulted and was ultimately determined to be ineligible for the SBA guaranty during the year-ago quarter, partially offset by the impairment on operating lease assets and contingent liabilities for legal settlements.
6

Balance Sheet (Unaudited)
Total assets were $3.18 billion at March 31, 2025, an increase of $119.8 million, or 3.9%, from $3.06 billion at December 31, 2024 and an increase of $329.5 million, or 11.5%, from $2.85 billion at March 31, 2024. The increases for the current quarter were primarily due to increases in loans held-for-investment, loans held-for-sale, and cash and cash equivalents.
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:
($ in thousands)3/31/202512/31/2024% Change3/31/2024% Change
Commercial real estate:
Commercial property$965,302 $940,931 2.6 %$874,300 10.4 %
Business property618,771 595,547 3.9 %578,903 6.9 %
Multifamily207,096 194,220 6.6 %131,742 57.2 %
Construction23,978 21,854 9.7 %29,212 (17.9)%
Total commercial real estate1,815,147 1,752,552 3.6 %1,614,157 12.5 %
Commercial and industrial494,697 472,763 4.6 %371,934 33.0 %
Consumer:
Residential mortgage406,774 392,456 3.6 %389,888 4.3 %
Other consumer10,992 11,616 (5.4)%21,985 (50.0)%
Total consumer417,766 404,072 3.4 %411,873 1.4 %
Loans held-for-investment2,727,610 2,629,387 3.7 %2,397,964 13.7 %
Loans held-for-sale12,101 6,292 92.3 %3,256 271.7 %
Total loans
$2,739,711 $2,635,679 3.9 %$2,401,220 14.1 %
SBA loans included in:
Loans held-for-investment$147,622 $146,940 0.5 %$148,316 (0.5)%
Loans held-for-sale$12,101 $6,292 92.3 %$3,256 271.7 %
The increase in loans held-for-investment for the current quarter was primarily due to new funding of term loans of $154.0 million and net increase of lines of credit of $29.3 million, partially offset by pay-downs and pay-offs of term loans of $84.8 million and charge-offs of $353 thousand.
The increase in loans held-for-sale for the current quarter was primarily due to new funding of $22.5 million, partially offset by sales of $16.6 million and pay-downs of $44 thousand.

The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:
($ in thousands)3/31/202512/31/2024% Change3/31/2024% Change
Commercial property$7,810 $8,888 (12.1)%$8,687 (10.1)%
Business property11,068 11,058 0.1 %10,196 8.6 %
Multifamily— — — %1,800 (100.0)%
Construction12,312 14,423 (14.6)%22,895 (46.2)%
Commercial and industrial351,802 364,731 (3.5)%384,034 (8.4)%
Other consumer1,671 1,475 13.3 %992 68.4 %
Total commitments to extend credit384,663 400,575 (4.0)%428,604 (10.3)%
Letters of credit6,795 6,795 — %6,558 3.6 %
Total off-balance sheet credit exposure$391,458 $407,370 (3.9)%$435,162 (10.0)%

7

Credit Quality
The following table presents a summary of non-performing loans and assets, and classified assets as of the dates indicated:
($ in thousands)3/31/202512/31/2024% Change3/31/2024% Change
Nonaccrual loans
Commercial real estate:
Commercial property$1,538 $1,851 (16.9)%$932 65.0 %
Business property1,485 2,336 (36.4)%3,455 (57.0)%
Total commercial real estate3,023 4,187 (27.8)%4,387 (31.1)%
Commercial and industrial66 79 (16.5)%111 (40.5)%
Consumer:
Residential mortgage3,153 403 682.4 %436 623.2 %
Other consumer6 24 (75.0)%6 — %
Total consumer3,159 427 639.8 %442 614.7 %
Total nonaccrual loans held-for-investment
6,248 4,693 33.1 %4,940 26.5 %
Loans past due 90 days or more and still accruing
— — — %— — %
Non-performing loans (“NPLs”) 6,248 4,693 33.1 %4,940 26.5 %
NPLs held-for-sale— — — %— — %
Total NPLs6,248 4,693 33.1 %4,940 26.5 %
Other real estate owned (“OREO”)
— — — %— — %
Non-performing assets (“NPAs”)
$6,248 $4,693 33.1 %$4,940 26.5 %
Loans past due and still accruing
Past due 30 to 59 days
$5,236 $4,599 13.9 %$3,412 53.5 %
Past due 60 to 89 days
101 303 (66.7)%1,103 (90.8)%
Past due 90 days or more
— — — %— — %
Total loans past due and still accruing
$5,337 $4,902 8.9 %$4,515 18.2 %
Special mention loans$5,010 $5,034 (0.5)%$1,101 355.0 %
Classified assets
Classified loans held-for-investment$8,280 $6,930 19.5 %$7,771 6.5 %
Classified loans held-for-sale— — — %— — %
OREO
— — — %— — %
Classified assets
$8,280 $6,930 19.5 %$7,771 6.5 %
NPLs to loans held-for-investment0.23 %0.18 %0.21 %
NPAs to total assets
0.20 %0.15 %0.17 %
Classified assets to total assets
0.26 %0.23 %0.27 %
Allowance for Credit Losses
The following table presents activities in ACL for the periods indicated:
Three Months Ended
($ in thousands)3/31/202512/31/2024% Change3/31/2024% Change
ACL on loans
Balance at beginning of period$30,628 $28,930 5.9 %$27,533 11.2 %
Charge-offs(353)(395)(10.6)%(185)90.8 %
Recoveries76 49 55.1 %62 22.6 %
Provision for credit losses on loans1,591 2,044 (22.2)%922 72.6 %
Balance at end of period$31,942 $30,628 4.3 %$28,332 12.7 %
Percentage to loans held-for-investment at end of period1.17 %1.16 %1.18 %
ACL on off-balance sheet credit exposure
Balance at beginning of period$1,190 $1,232 (3.4)%$1,277 (6.8)%
Provision (reversal) for credit losses on off-balance sheet credit exposure7 (42)(116.7)%168 (95.8)%
Balance at end of period$1,197 $1,190 0.6 %$1,445 (17.2)%
8

Investment Securities
Total investment securities were $148.2 million at March 31, 2025, an increase of $1.8 million, or 1.3%, from $146.3 million at December 31, 2024 and an increase of $10.0 million, or 7.3%, from $138.2 million at March 31, 2024. The increase for the current quarter was primarily due to purchases of $3.0 million and a fair value increase of $3.2 million, partially offset by principal pay-downs of $4.3 million and net premium amortization of $31 thousand.
Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
3/31/202512/31/20243/31/2024
($ in thousands)Amount% to TotalAmount% to TotalAmount% to Total
Noninterest-bearing demand deposits
$564,407 20.8 %$547,853 20.9 %$538,380 22.4 %
Interest-bearing deposits
Savings
5,185 0.2 %5,765 0.2 %6,153 0.3 %
NOW
15,219 0.6 %13,761 0.5 %16,232 0.7 %
Retail money market accounts
492,334 18.0 %447,360 17.1 %461,221 19.0 %
Brokered money market accounts
1 0.1 %1 0.1 %1 0.1 %
Retail time deposits of
$250,000 or less
532,512 19.6 %493,644 18.9 %471,528 19.6 %
More than $250,000
652,458 24.0 %605,124 23.1 %549,550 22.9 %
State and brokered time deposits
452,283 16.7 %502,283 19.2 %359,775 15.0 %
Total interest-bearing deposits
2,149,992 79.2 %2,067,938 79.1 %1,864,460 77.6 %
Total deposits
$2,714,399 100.0 %$2,615,791 100.0 %$2,402,840 100.0 %
Estimated total deposits not covered by deposit insurance$1,125,068 41.4 %$1,036,451 39.6 %$1,017,696 42.4 %
Total retail deposits were $2.26 billion at March 31, 2025, an increase of $148.6 million, or 7.0%, from $2.11 billion at December 31, 2024 and an increase of $219.1 million, or 10.7%, from $2.04 billion at March 31, 2024.
The increase in retail time deposits for the current quarter was primarily due to new accounts of $162.2 million, renewals of the matured accounts of $339.0 million and balance increases of $15.9 million, partially offset by matured and closed accounts of $430.9 million.
Liquidity
The following table presents a summary of the Company’s liquidity position as of the dates indicated:
($ in thousands)3/31/202512/31/2024% Change
Cash and cash equivalents
$214,348 $198,792 7.8 %
Cash and cash equivalents to total assets
6.7 %6.5 %
Available borrowing capacity
FHLB advances
$735,732 $722,439 1.8 %
Federal Reserve Discount Window
679,009 586,525 15.8 %
Overnight federal funds lines
65,000 50,000 30.0 %
Total
$1,479,741 $1,358,964 8.9 %
Total available borrowing capacity to total assets
46.5 %44.4 %
9

Shareholders’ Equity
Shareholders’ equity was $370.9 million at March 31, 2025, an increase of $7.1 million, or 1.9%, from $363.8 million at December 31, 2024 and an increase of $20.9 million, or 6.0%, from $350.0 million at March 31, 2024. The increase for the current quarter was primarily due to net income, a decrease in accumulated other comprehensive loss of $2.3 million and proceeds from stock option exercises of $684 thousand, partially offset by repurchase of common stock of $953 thousand, cash dividends declared on common stock of $2.9 million and preferred stock dividends of $40 thousand.
Stock Repurchases
During the current quarter, the Company repurchased and retired 50,676 shares of common stock at a weighted-average price of $18.80, totaling $953 thousand. In 2024, the Company repurchased and retired 14,947 shares of common stock at a weighted-average price of $14.88, totaling $222 thousand. As of March 31, 2025, the Company is authorized to purchase 527,101 additional shares under its current stock repurchase program, which expires on August 2, 2025.
Series C Preferred Stock
The Company began paying quarterly dividends on the Series C Preferred Stock in the second quarter of 2024. The Company paid dividends of $40 thousand and $346 thousand for the current and previous quarters, respectively.
Capital Ratios
The following table presents capital ratios for the Company and the Bank as of the dates indicated:
3/31/202512/31/20243/31/2024Well Capitalized Minimum Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)
11.25 %11.44 %11.88 %N/A
Total capital (to risk-weighted assets)
14.98 %15.24 %15.93 %N/A
Tier 1 capital (to risk-weighted assets)
13.77 %14.04 %14.71 %N/A
Tier 1 capital (to average assets)
12.14 %12.45 %12.73 %N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)
13.42 %13.72 %14.37 %6.5 %
Total capital (to risk-weighted assets)
14.63 %14.92 %15.59 %10.0 %
Tier 1 capital (to risk-weighted assets)
13.42 %13.72 %14.37 %8.0 %
Tier 1 capital (to average assets)
11.82 %12.16 %12.44 %5.0 %
10

About PCB Bancorp
PCB Bancorp is the bank holding company for PCB Bank, a California state chartered bank, offering a full suite of commercial banking services to small to medium-sized businesses, individuals and professionals, primarily in Southern California, and predominantly in Korean-American and other minority communities.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to the health of the national and local economies including the impact on the Company and its customers resulting from any adverse developments in real estate markets and the level of inflation and interest rates; the impacts of sanctions, tariffs and other trade policies of the United States and its global trading partners and tensions related to the same; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect the Company’s liquidity, financial performance and stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber security risks; the Company's ability to successfully deploy new technology; acquisitions and branch and loan production office expansions; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; litigation costs and outcomes; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, wildfires and other disasters, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other filings the Company makes with the SEC, which are available without charge at the SEC’s website (http://www.sec.gov) and on the investor relations section of the Company’s website at www.mypcbbank.com. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.
Contact:
Timothy Chang
Executive Vice President & Chief Financial Officer
213-210-2000

11

PCB Bancorp and Subsidiary
Consolidated Balance Sheets (Unaudited)
($ in thousands, except share and per share data)
3/31/202512/31/2024% Change3/31/2024% Change
Assets
Cash and due from banks
$28,852 $27,100 6.5 %$29,432 (2.0)%
Interest-bearing deposits in other financial institutions185,496 171,692 8.0 %210,359 (11.8)%
Total cash and cash equivalents
214,348 198,792 7.8 %239,791 (10.6)%
Securities available-for-sale, at fair value
148,190 146,349 1.3 %138,170 7.3 %
Loans held-for-sale
12,101 6,292 92.3 %3,256 271.7 %
Loans held-for-investment2,727,610 2,629,387 3.7 %2,397,964 13.7 %
Allowance for credit losses on loans(31,942)(30,628)4.3 %(28,332)12.7 %
Net loans held-for-investment
2,695,668 2,598,759 3.7 %2,369,632 13.8 %
Premises and equipment, net
8,420 8,280 1.7 %8,892 (5.3)%
Federal Home Loan Bank and other bank stock
14,042 14,042 — %12,716 10.4 %
Bank-owned life insurance32,013 31,766 0.8 %31,045 3.1 %
Deferred tax assets, net
6,736 7,249 (7.1)%— NM
Servicing assets
5,631 5,837 (3.5)%6,544 (14.0)%
Operating lease assets
17,779 17,254 3.0 %18,255 (2.6)%
Accrued interest receivable
10,967 10,466 4.8 %10,394 5.5 %
Other assets
17,863 18,885 (5.4)%15,597 14.5 %
Total assets
$3,183,758 $3,063,971 3.9 %$2,854,292 11.5 %
Liabilities
Deposits
Noninterest-bearing demand
$564,407 $547,853 3.0 %$538,380 4.8 %
Savings, NOW and money market accounts
512,739 466,887 9.8 %483,607 6.0 %
Time deposits of $250,000 or less
924,795 935,927 (1.2)%771,303 19.9 %
Time deposits of more than $250,000
712,458 665,124 7.1 %609,550 16.9 %
Total deposits
2,714,399 2,615,791 3.8 %2,402,840 13.0 %
Other short-term borrowings— 15,000 (100.0)%— — %
Federal Home Loan Bank advances
30,000 — NM50,000 (40.0)%
Deferred tax liabilities, net— — — %266 (100.0)%
Operating lease liabilities
19,465 18,671 4.3 %19,555 (0.5)%
Accrued interest payable and other liabilities
49,030 50,695 (3.3)%31,626 55.0 %
Total liabilities
2,812,894 2,700,157 4.2 %2,504,287 12.3 %
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock69,141 69,141 — %69,141 — %
Common stock143,156 143,195 — %142,734 0.3 %
Retained earnings
165,611 160,797 3.0 %148,209 11.7 %
Accumulated other comprehensive loss, net(7,044)(9,319)(24.4)%(10,079)(30.1)%
Total shareholders’ equity
370,864 363,814 1.9 %350,005 6.0 %
Total liabilities and shareholders’ equity
$3,183,758 $3,063,971 3.9 %$2,854,292 11.5 %
Outstanding common shares
14,387,176 14,380,651 14,263,791 
Book value per common share (1)
$25.78 $25.30 $24.54 
TCE per common share (2)
$20.97 $20.49 $19.69 
Total loan to total deposit ratio
100.93 %100.76 %99.93 %
Noninterest-bearing deposits to total deposits
20.79 %20.94 %22.41 %
(1)The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company had no intangible equity components for the presented periods.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
12

PCB Bancorp and Subsidiary
Consolidated Statements of Income (Unaudited)
($ in thousands, except share and per share data)
Three Months Ended
3/31/202512/31/2024% Change3/31/2024% Change
Interest and dividend income
Loans, including fees$43,026 $42,309 1.7 %$39,251 9.6 %
Investment securities1,408 1,388 1.4 %1,246 13.0 %
Other interest-earning assets2,458 2,622 (6.3)%3,058 (19.6)%
Total interest income46,892 46,319 1.2 %43,555 7.7 %
Interest expense
Deposits22,564 22,927 (1.6)%21,967 2.7 %
Other borrowings45 228 (80.3)%589 (92.4)%
Total interest expense
22,609 23,155 (2.4)%22,556 0.2 %
Net interest income
24,283 23,164 4.8 %20,999 15.6 %
Provision for credit losses1,598 2,002 (20.2)%1,090 46.6 %
Net interest income after provision for credit losses22,685 21,162 7.2 %19,909 13.9 %
Noninterest income
Gain on sale of loans
887 1,161 (23.6)%1,078 (17.7)%
Service charges and fees on deposits
372 404 (7.9)%378 (1.6)%
Loan servicing income
725 861 (15.8)%919 (21.1)%
Bank-owned life insurance income247 246 0.4 %228 8.3 %
Other income
349 371 (5.9)%342 2.0 %
Total noninterest income
2,580 3,043 (15.2)%2,945 (12.4)%
Noninterest expense
Salaries and employee benefits
9,075 8,417 7.8 %9,218 (1.6)%
Occupancy and equipment
2,289 2,198 4.1 %2,358 (2.9)%
Professional fees
628 752 (16.5)%1,084 (42.1)%
Marketing and business promotion
243 582 (58.2)%319 (23.8)%
Data processing
333 205 62.4 %402 (17.2)%
Director fees and expenses
226 227 (0.4)%232 (2.6)%
Regulatory assessments
344 322 6.8 %298 15.4 %
Other expense1,336 1,191 12.2 %2,441 (45.3)%
Total noninterest expense
14,474 13,894 4.2 %16,352 (11.5)%
Income before income taxes
10,791 10,311 4.7 %6,502 66.0 %
Income tax expense
3,056 3,281 (6.9)%1,817 68.2 %
Net income
7,735 7,030 10.0 %4,685 65.1 %
Preferred stock dividends40 346 (88.4)%— NM
Net income available to common shareholders$7,695 $6,684 15.1 %$4,685 64.2 %
Earnings per common share
Basic
$0.53 $0.47 $0.33 
Diluted
$0.53 $0.46 $0.33 
Average common shares
Basic
14,272,267 14,254,584 14,235,419 
Diluted
14,403,769 14,406,756 14,330,204 
Dividend paid per common share
$0.20 $0.18 $0.18 
Return on average assets (1)
1.01 %0.94 %0.67 %
Return on average shareholders’ equity (1)
8.53 %7.69 %5.39 %
Return on average TCE (1), (2)
10.45 %9.02 %6.72 %
Efficiency ratio (3)
53.88 %53.02 %68.29 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(3)The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
13

PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
Three Months Ended
3/31/202512/31/20243/31/2024
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$2,649,037 $43,026 6.59 %$2,538,310 $42,309 6.63 %$2,370,027 $39,251 6.66 %
Mortgage-backed securities
112,825 1,075 3.86 %113,231 1,030 3.62 %101,852 839 3.31 %
Collateralized mortgage obligation
21,028 210 4.05 %21,819 228 4.16 %23,763 254 4.30 %
SBA loan pool securities
5,927 54 3.69 %6,253 62 3.94 %7,317 78 4.29 %
Municipal bonds (2)
2,424 22 3.68 %2,440 21 3.42 %3,300 28 3.41 %
Corporate bonds4,336 47 4.40 %4,200 47 4.45 %4,227 47 4.47 %
Other interest-earning assets
209,375 2,458 4.76 %207,234 2,622 5.03 %217,002 3,058 5.67 %
Total interest-earning assets
3,004,952 46,892 6.33 %2,893,487 46,319 6.37 %2,727,488 43,555 6.42 %
Noninterest-earning assets
Cash and due from banks24,652 23,639 21,365 
ACL on loans(30,676)(28,833)(27,577)
Other assets
98,588 92,348 88,532 
Total noninterest-earning assets
92,564 87,154 82,320 
Total assets
$3,097,516 $2,980,641 $2,809,808 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$483,927 4,297 3.60 %$479,238 4,479 3.72 %$453,801 4,665 4.13 %
Savings
5,612 3 0.22 %5,952 4 0.27 %6,196 4 0.26 %
Time deposits
1,650,662 18,264 4.49 %1,501,711 18,444 4.89 %1,367,212 17,298 5.09 %
Total interest-bearing deposits
2,140,201 22,564 4.28 %1,986,901 22,927 4.59 %1,827,209 21,967 4.84 %
Other borrowings3,933 45 4.64 %17,946 228 5.05 %42,187 589 5.62 %
Total interest-bearing liabilities
2,144,134 22,609 4.28 %2,004,847 23,155 4.59 %1,869,396 22,556 4.85 %
Noninterest-bearing liabilities
Noninterest-bearing demand
516,630 543,971 542,811 
Other liabilities
69,042 67,995 47,957 
Total noninterest-bearing liabilities
585,672 611,966 590,768 
Total liabilities
2,729,806 2,616,813 2,460,164 
Total shareholders’ equity
367,710 363,828 349,644 
Total liabilities and shareholders’ equity
$3,097,516 $2,980,641 $2,809,808 
Net interest income
$24,283 $23,164 $20,999 
Net interest spread (3)
2.05 %1.78 %1.57 %
Net interest margin (4)
3.28 %3.18 %3.10 %
Total deposits
$2,656,831 $22,564 3.44 %$2,530,872 $22,927 3.60 %$2,370,020 $21,967 3.73 %
Total funding (5)
$2,660,764 $22,609 3.45 %$2,548,818 $23,155 3.61 %$2,412,207 $22,556 3.76 %
(1)Total loans include both loans held-for-sale and loans held-for-investment.
(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
(6)Annualized.



14

PCB Bancorp and Subsidiary
Non-GAAP Financial Measures
($ in thousands)
Return on average tangible common equity, tangible common equity per common share and tangible common equity to total assets ratios
The Company's TCE is calculated by subtracting preferred stock from shareholders’ equity. The Company had no intangible assets for the presented periods. Return on average TCE, TCE per common share, and TCE to total assets constitute supplemental financial information determined by methods other than in accordance with Generally Accepted Accounting Principles, or GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. These non-GAAP measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP measures with financial measures defined by GAAP.
($ in thousands)
Three Months Ended
3/31/202512/31/20243/31/2024
Average total shareholders' equity(a)$367,710 $363,828 $349,644 
Less: average preferred stock(b)69,141 69,141 69,141 
Average TCE(c)=(a)-(b)$298,569 $294,687 $280,503 
Net income(d)$7,735 $7,030 $4,685 
Return on average shareholder's equity (1)
(d)/(a)8.53 %7.69 %5.39 %
Net income available to common shareholders(e)$7,695 $6,684 $4,685 
Return on average TCE (1)
(e)/(c)10.45 %9.02 %6.72 %
(1) Annualized.
($ in thousands, except per share data)3/31/202512/31/20243/31/2024
Total shareholders' equity(a)$370,864 $363,814 $350,005 
Less: preferred stock(b)69,141 69,141 69,141 
TCE(c)=(a)-(b)$301,723 $294,673 $280,864 
Outstanding common shares
(d)14,387,176 14,380,651 14,263,791 
Book value per common share(a)/(d)$25.78 $25.30 $24.54 
TCE per common share(c)/(d)$20.97 $20.49 $19.69 
Total assets(e)$3,183,758 $3,063,971 $2,854,292 
Total shareholders' equity to total assets(a)/(e)11.65 %11.87 %12.26 %
TCE to total assets(c)/(e)9.48 %9.62 %9.84 %
15