PCB Bancorp Reports Earnings for Q2 2025

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07/24/2025 - 04:30 PM

LOS ANGELES--(BUSINESS WIRE)-- PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $9.0 million, or $0.62 per diluted common share, for the second quarter of 2025, compared with $7.7 million, or $0.53 per diluted common share, for the previous quarter and $6.1 million, or $0.43 per diluted common share, for the year-ago quarter.

Q2 2025 Highlights

Net income available to common shareholders totaled $9.0 million, or $0.62 per diluted common share, for the current quarter;
Provision for credit losses was $1.8 million for the current quarter compared with $1.6 million for the previous quarter and $259 thousand for the year-ago quarter;
Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.20% at June 30, 2025 compared with 1.17% at March 31, 2025, 1.16% at December 31, 2024, and 1.17% at June 30, 2024;
Net interest income was $26.0 million for the current quarter compared with $24.3 million for the previous quarter and $21.7 million for the year-ago quarter. Net interest margin was 3.33% for the current quarter compared with 3.28% for the previous quarter and 3.16% for the year-ago quarter;
Gain on sale of loans was $1.5 million for the current quarter compared with $887 thousand for the previous quarter and $763 thousand for the year-ago quarter;
Total assets were $3.31 billion at June 30, 2025, an increase of $121.8 million, or 3.8%, from $3.18 billion at March 31, 2025, an increase of $241.6 million, or 7.9%, from $3.06 billion at December 31, 2024, and an increase of $452.6 million, or 15.9%, from $2.85 billion at June 30, 2024;
Loans held-for-investment were $2.80 billion at June 30, 2025, an increase of $67.7 million, or 2.5%, from $2.73 billion at March 31, 2025, an increase of $165.9 million, or 6.3%, from $2.63 billion at December 31, 2024, and an increase of $346.2 million, or 14.1%, from $2.45 billion at June 30, 2024;
Total deposits were $2.82 billion at June 30, 2025, an increase of $108.5 million, or 4.0%, from $2.71 billion at March 31, 2025, an increase of $207.1 million, or 7.9%, from $2.62 billion at December 31, 2024, and an increase of $416.7 million, or 17.3%, from $2.41 billion at June 30, 2024; and
Opened a full-service branch in Suwanee, Georgia.

“We are pleased with our second quarter results highlighted by strong net income growth, continued healthy increases in loan and deposit balances, expansion in net interest margin, and the establishment of our first full-service branch in the state of Georgia as part of our long-term strategy,” said Henry Kim, President and CEO. “Certain industries across our footprint are feeling the effects of persistent inflation and ongoing uncertainty surrounding tariffs and trade restrictions. Despite this backdrop, we continue to experience solid organic growth, strong credit metrics, solid reserve for loan losses, and robust capital level.”

Mr. Kim continued, “Heading into the second half of 2025, we are encouraged by the positive momentum in our balance sheet growth, disciplined expense management, and results of our continued emphasis on relationship banking. We remain dedicated to operating under the best interest of our clients, communities, employees, and shareholders, while delivering consistent results through unpredictable economic cycles and changing competitive landscape.”

Financial Highlights (Unaudited)

($ in thousands, except per share data)	Three Months Ended													Six Months Ended
($ in thousands, except per share data)	6/30/2025			3/31/2025			% Change		6/30/2024			% Change		6/30/2025			6/30/2024			% Change
Net income	$	9,071		$	7,735		17.3	%	$	6,281		44.4	%	$	16,806		$	10,966		53.3	%
Net income available to common shareholders	$	8,984		$	7,695		16.8	%	$	6,139		46.3	%	$	16,679		$	10,824		54.1	%
Diluted earnings per common share (“EPS”)	$	0.62		$	0.53		17.0	%	$	0.43		44.2	%	$	1.15		$	0.75		53.3	%

Net interest income	$	25,990		$	24,283		7.0	%	$	21,735		19.6	%	$	50,273		$	42,734		17.6	%
Provision for credit losses		1,787			1,598		11.8	%		259		590.0	%		3,385			1,349		150.9	%
Noninterest income		3,297			2,580		27.8	%		2,485		32.7	%		5,877			5,430		8.2	%
Noninterest expense		14,829			14,474		2.5	%		15,175		(2.3	)%		29,303			31,527		(7.1	)%

Return on average assets (“ROAA”) ⁽¹⁾		1.13	%		1.01	%				0.89	%				1.07	%		0.78	%
Return on average shareholders’ equity (“ROAE”) ⁽¹⁾		9.76	%		8.53	%				7.19	%				9.16	%		6.29	%
Return on average tangible common equity (“ROATCE”) ^(1),(2)		11.87	%		10.45	%				8.75	%				11.17	%		7.73	%
Net interest margin ⁽¹⁾		3.33	%		3.28	%				3.16	%				3.30	%		3.13	%
Efficiency ratio ⁽³⁾		50.63	%		53.88	%				62.65	%				52.19	%		65.46	%

($ in thousands, except per share data)	6/30/2025			3/31/2025			% Change		12/31/2024			% Change		6/30/2024			% Change
Total assets	$	3,305,589		$	3,183,758		3.8	%	$	3,063,971		7.9	%	$	2,852,964		15.9	%
Net loans held-for-investment		2,761,755			2,695,668		2.5	%		2,598,759		6.3	%		2,420,327		14.1	%
Total deposits		2,822,915			2,714,399		4.0	%		2,615,791		7.9	%		2,406,254		17.3	%
Book value per common share ⁽⁴⁾	$	26.26		$	25.78				$	25.30				$	24.80
TCE per common share⁽²⁾	$	21.44		$	20.97				$	20.49				$	19.95
Tier 1 leverage ratio (consolidated)		11.81	%		12.14	%				12.45	%				12.66	%
Total shareholders’ equity to total assets		11.39	%		11.65	%				11.87	%				12.39	%
TCE to total assets ^{(2), (5)}		9.30	%		9.48	%				9.62	%				9.97	%

(1)		Ratios are presented on an annualized basis.
(2)		Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(3)		Calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
(4)		Calculated by dividing total shareholders’ equity by the number of outstanding common shares.
(5)		The Company did not have any intangible asset component for the presented periods.

Result of Operations (Unaudited)

Net Interest Income and Net Interest Margin

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

	Three Months Ended													Six Months Ended
($ in thousands)	6/30/2025			3/31/2025			% Change		6/30/2024			% Change		6/30/2025			6/30/2024			% Change
Interest income/expense on
Loans	$	45,478		$	43,026		5.7	%	$	40,626		11.9	%	$	88,504		$	79,877		10.8	%
Investment securities		1,462			1,408		3.8	%		1,310		11.6	%		2,870			2,556		12.3	%
Other interest-earning assets		2,368			2,458		(3.7	)%		3,009		(21.3	)%		4,826			6,067		(20.5	)%
Total interest-earning assets		49,308			46,892		5.2	%		44,945		9.7	%		96,200			88,500		8.7	%
Interest-bearing deposits		22,505			22,564		(0.3	)%		22,536		(0.1	)%		45,069			44,503		1.3	%
Borrowings		813			45		1,706.7	%		674		20.6	%		858			1,263		(32.1	)%
Total interest-bearing liabilities		23,318			22,609		3.1	%		23,210		0.5	%		45,927			45,766		0.4	%
Net interest income	$	25,990		$	24,283		7.0	%	$	21,735		19.6	%	$	50,273		$	42,734		17.6	%
Average balance of
Loans	$	2,782,200		$	2,649,037		5.0	%	$	2,414,824		15.2	%	$	2,715,986		$	2,392,426		13.5	%
Investment securities		151,055			146,540		3.1	%		141,816		6.5	%		148,810			141,137		5.4	%
Other interest-earning assets		200,875			209,375		(4.1	)%		213,428		(5.9	)%		205,101			215,215		(4.7	)%
Total interest-earning assets	$	3,134,130		$	3,004,952		4.3	%	$	2,770,068		13.1	%	$	3,069,897		$	2,748,778		11.7	%
Interest-bearing deposits	$	2,187,210		$	2,140,201		2.2	%	$	1,863,623		17.4	%	$	2,163,836		$	1,845,417		17.3	%
Borrowings		71,286			3,933		1,712.5	%		48,462		47.1	%		37,796			45,324		(16.6	)%
Total interest-bearing liabilities	$	2,258,496		$	2,144,134		5.3	%	$	1,912,085		18.1	%	$	2,201,632		$	1,890,741		16.4	%
Total funding ⁽¹⁾	$	2,792,026		$	2,660,764		4.9	%	$	2,447,593		14.1	%	$	2,726,758		$	2,429,900		12.2	%
Annualized average yield/cost of
Loans		6.56	%		6.59	%				6.77	%				6.57	%		6.71	%
Investment securities		3.88	%		3.90	%				3.72	%				3.89	%		3.64	%
Other interest-earning assets		4.73	%		4.76	%				5.67	%				4.74	%		5.67	%
Total interest-earning assets		6.31	%		6.33	%				6.53	%				6.32	%		6.47	%
Interest-bearing deposits		4.13	%		4.28	%				4.86	%				4.20	%		4.85	%
Borrowings		4.57	%		4.64	%				5.59	%				4.58	%		5.60	%
Total interest-bearing liabilities		4.14	%		4.28	%				4.88	%				4.21	%		4.87	%
Net interest margin		3.33	%		3.28	%				3.16	%				3.30	%		3.13	%
Cost of total funding ⁽¹⁾		3.35	%		3.45	%				3.81	%				3.40	%		3.79	%
Supplementary information
Net accretion of discount on loans	$	610		$	872		(30.0	)%	$	791		(22.9	)%	$	1,482		$	1,364		8.7	%
Net amortization of deferred loan fees	$	414		$	266		55.6	%	$	339		22.1	%	$	680		$	673		1.0	%

(1)

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

Loans. The decreases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to decreases in market rates and net accretion of discount on loans, partially offset by an increase in net amortization of deferred loan fees. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to a decrease in market rates, partially offset by increases in net accretion of discount on loans and net amortization of deferred loan fees.

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

	6/30/2025		3/31/2025		12/31/2024		6/30/2024
	% to Total Loans	Weighted-Average Contractual Rate	% to Total Loans	Weighted-Average Contractual Rate	% to Total Loans	Weighted-Average Contractual Rate	% to Total Loans	Weighted-Average Contractual Rate
Fixed rate loans	18.0 %	5.51 %	17.8 %	5.35 %	17.4 %	5.23 %	18.8 %	5.04 %
Hybrid rate loans	38.5 %	5.43 %	38.0 %	5.36 %	37.3 %	5.27 %	37.2 %	5.04 %
Variable rate loans	43.5 %	7.53 %	44.2 %	7.52 %	45.3 %	7.63 %	44.0 %	8.45 %

Investment Securities. The increases for the current quarter and year-to-date period compared with the same periods of 2024 were primarily due to higher yields on newly purchased investment securities and a decrease in net amortization of premium.

Other Interest-Earning Assets. The decrease in average yield for the current quarter compared with the previous quarter was primarily due to a decrease in dividends received on Federal Home Loan Bank (“FHLB”) stock. The decreases for the current quarter and year-to-date period compared with the same periods of 2024 were primarily due to a decrease in average interest rate on cash held at the Federal Reserve Bank, partially offset by an increase in dividends received on FHLB stock.

Interest-Bearing Deposits. The decreases in average cost for the current quarter and year-to-date period were primarily due to a decrease in market rates.

Provision for Credit Losses

The following table presents a composition of provision for credit losses for the periods indicated:

	Three Months Ended											Six Months Ended
($ in thousands)	6/30/2025		3/31/2025		% Change		6/30/2024			% Change		6/30/2025		6/30/2024		% Change
Provision for credit losses on loans	$	1,721	$	1,591	8.2	%	$	329		423.1	%	$	3,312	$	1,251	164.7	%
Provision (reversal) for credit losses on off-balance sheet credit exposure		66		7	842.9	%		(70	)	NA			73		98	(25.5	)%
Total provision for credit losses	$	1,787	$	1,598	11.8	%	$	259		590.0	%	$	3,385	$	1,349	150.9	%

The provision for credit losses on loans for the current quarter was primarily due to an increase in loans held-for-investment.

Noninterest Income

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

	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2025		3/31/2025		% Change		6/30/2024		% Change		6/30/2025		6/30/2024		% Change
Gain on sale of loans	$	1,465	$	887	65.2	%	$	763	92.0	%	$	2,352	$	1,841	27.8	%
Service charges and fees on deposits		375		372	0.8	%		364	3.0	%		747		742	0.7	%
Loan servicing income		760		725	4.8	%		799	(4.9	)%		1,485		1,718	(13.6	)%
Bank-owned life insurance (“BOLI”) income		253		247	2.4	%		236	7.2	%		500		464	7.8	%
Other income		444		349	27.2	%		323	37.5	%		793		665	19.2	%
Total noninterest income	$	3,297	$	2,580	27.8	%	$	2,485	32.7	%	$	5,877	$	5,430	8.2	%

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

	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2025		3/31/2025		% Change		6/30/2024		% Change		6/30/2025		6/30/2024		% Change
Gain on sale of SBA loans
Sold loan balance	$	26,947	$	16,605	62.3	%	$	13,619	97.9	%	$	43,552	$	33,033	31.8	%
Premium received		1,750		1,208	44.9	%		1,056	65.7	%		2,958		2,652	11.5	%
Gain recognized		1,465		887	65.2	%		763	92.0	%		2,352		1,841	27.8	%

Loan Servicing Income. The Company services SBA loans and certain residential property loans sold to the secondary market. The following table presents information on loan servicing income for the periods indicated:

	Three Months Ended													Six Months Ended
($ in thousands)	6/30/2025			3/31/2025			% Change		6/30/2024			% Change		6/30/2025			6/30/2024			% Change
Loan servicing income
Servicing income received	$	1,251		$	1,273		(1.7	)%	$	1,318		(5.1	)%	$	2,524		$	2,611		(3.3	)%
Servicing assets amortization		(491	)		(548	)	(10.4	)%		(519	)	(5.4	)%		(1,039	)		(893	)	16.3	%
Loan servicing income	$	760		$	725		4.8	%	$	799		(4.9	)%	$	1,485		$	1,718		(13.6	)%
Underlying loans at end of period	$	514,974		$	510,927		0.8	%	$	527,458		(2.4	)%	$	514,974		$	527,458		(2.4	)%

Noninterest Expense

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

	Three Months Ended										Six Months Ended
($ in thousands)	6/30/2025		3/31/2025		% Change		6/30/2024		% Change		6/30/2025		6/30/2024		% Change
Salaries and employee benefits	$	8,844	$	9,075	(2.5	)%	$	9,225	(4.1	)%	$	17,919	$	18,443	(2.8	)%
Occupancy and equipment		2,379		2,289	3.9	%		2,300	3.4	%		4,668		4,658	0.2	%
Professional fees		805		628	28.2	%		973	(17.3	)%		1,433		2,057	(30.3	)%
Marketing and business promotion		597		243	145.7	%		318	87.7	%		840		637	31.9	%
Data processing		317		333	(4.8	)%		495	(36.0	)%		650		897	(27.5	)%
Director fees and expenses		225		226	(0.4	)%		221	1.8	%		451		453	(0.4	)%
Regulatory assessments		358		344	4.1	%		327	9.5	%		702		625	12.3	%
Other expense		1,304		1,336	(2.4	)%		1,316	(0.9	)%		2,640		3,757	(29.7	)%
Total noninterest expense	$	14,829	$	14,474	2.5	%	$	15,175	(2.3	)%	$	29,303	$	31,527	(7.1	)%

Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to decreases in bonus and vacation accruals, and an increase in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense, partially offset by an increase in salaries from the annual merit increase and new employees at the newly opened full-service branch in Suwanee, Georgia. The decrease for the current quarter compared with the year-ago quarter was primarily due to decreases in salaries, bonus and vacation accruals, as well as an increase in direct loan origination cost. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to decreases in salaries and vacation accrual, and an increase in direct loan origination cost, partially offset by an increase in bonus accrual. The number of full-time equivalent employees was 266, 257 and 265 as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

Professional Fees. The increase for the current quarter compared with the previous quarter was primarily due to professional fees related to evaluating the accounting for a preferred stock purchase option. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to other professional fees for the 2024 periods related to a core system conversion that was completed in April 2024.

Marketing and Business Promotion. The increases for the current quarter and year-to-date periods were primarily due to an increase in advertising.

Data Processing. The decreases for the current quarter and year-to-date periods compared with the same periods of 2024 were primarily due to a decrease in overall service charges after the core system conversion.

Other Expense. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to a termination charge for the legacy core system of $508 thousand and an expense of $815 thousand for a reimbursement for an SBA loan guarantee previously paid by the SBA on a loan originated in 2014 that subsequently defaulted and was ultimately determined to be ineligible for the SBA guaranty during the previous year-to-date period, partially offset by the impairment on operating lease assets of $228 thousand and contingent accrual for legal settlements of $190 thousand for the current year-to-date period.

Balance Sheet (Unaudited)

Total assets were $3.31 billion at June 30, 2025, an increase of $121.8 million, or 3.8%, from $3.18 billion at March 31, 2025, an increase of $241.6 million, or 7.9%, from $3.06 billion at December 31, 2024, and an increase of $452.6 million, or 15.9%, from $2.85 billion at June 30, 2024. The increases for the current quarter and year-to-date period were primarily due to increases in loans held-for-investment 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)	6/30/2025			3/31/2025			% Change		12/31/2024			% Change		6/30/2024			% Change
Commercial real estate:
Commercial property	$	1,010,780		$	965,302		4.7	%	$	940,931		7.4	%	$	852,677		18.5	%
Business property		635,648			618,771		2.7	%		595,547		6.7	%		572,643		11.0	%
Multifamily		212,738			207,096		2.7	%		194,220		9.5	%		177,657		19.7	%
Construction		27,294			23,978		13.8	%		21,854		24.9	%		28,316		(3.6	)%
Total commercial real estate		1,886,460			1,815,147		3.9	%		1,752,552		7.6	%		1,631,293		15.6	%
Commercial and industrial		492,857			494,697		(0.4	)%		472,763		4.3	%		417,333		18.1	%
Consumer:
Residential mortgage		406,682			406,774		(0.1	)%		392,456		3.6	%		384,905		5.7	%
Other consumer		9,310			10,992		(15.3	)%		11,616		(19.9	)%		15,543		(40.1	)%
Total consumer		415,992			417,766		(0.4	)%		404,072		2.9	%		400,448		3.9	%
Loans held-for-investment		2,795,309			2,727,610		2.5	%		2,629,387		6.3	%		2,449,074		14.1	%
Loans held-for-sale		8,133			12,101		(32.8	)%		6,292		29.3	%		2,959		174.9	%
Total loans	$	2,803,442		$	2,739,711		2.3	%	$	2,635,679		6.4	%	$	2,452,033		14.3	%

SBA loans included in:
Loans held-for-investment	$	150,688		$	147,622		2.1	%	$	146,940		2.6	%	$	144,440		4.3	%
Loans held-for-sale	$	8,133		$	12,101		(32.8	)%	$	6,292		29.3	%	$	2,959		174.9	%

ACL on loans	$	33,554		$	31,942		5.0	%	$	30,628		9.6	%	$	28,747		16.7	%
ACL on loans to loans held-for-investment		1.20	%		1.17	%				1.16	%				1.17	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding of term loans of $191.9 million and net increase of lines of credit of $12.5 million, partially offset by pay-downs and pay-offs of term loans of $111.6 million and charge-offs of $120 thousand. The increase for the current year-to-date period was primarily due to new funding of term loans of $346.0 million and net increase of lines of credit of $16.8 million, partially offset by pay-downs and pay-offs of term loans of $196.4 million and charge-offs of $473 thousand.

The decrease in loans held-for-sale for the current quarter was primarily due to sales of $26.9 million and pay-downs of $122 thousand, partially offset by new funding of $23.1 million. The increase for the current year-to-date period was primarily due to new funding of $45.6 million, partially offset by sales of $43.6 million and pay-downs of $166 thousand.

The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:

($ in thousands)	6/30/2025		3/31/2025		% Change		12/31/2024		% Change		6/30/2024		% Change
Commercial property	$	10,851	$	7,810	38.9	%	$	8,888	22.1	%	$	6,309	72.0	%
Business property		10,364		11,068	(6.4	)%		11,058	(6.3	)%		11,607	(10.7	)%
Multifamily		—		—	—	%		—	—	%		1,800	(100.0	)%
Construction		8,985		12,312	(27.0	)%		14,423	(37.7	)%		22,030	(59.2	)%
Commercial and industrial		342,467		351,802	(2.7	)%		364,731	(6.1	)%		336,121	1.9	%
Other consumer		2,274		1,671	36.1	%		1,475	54.2	%		5,192	(56.2	)%
Total commitments to extend credit		374,941		384,663	(2.5	)%		400,575	(6.4	)%		383,059	(2.1	)%
Letters of credit		7,418		6,795	9.2	%		6,795	9.2	%		6,808	9.0	%
Total off-balance sheet credit exposure	$	382,359	$	391,458	(2.3	)%	$	407,370	(6.1	)%	$	389,867	(1.9	)%

Credit Quality

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

($ in thousands)	6/30/2025			3/31/2025			% Change		12/31/2024			% Change		6/30/2024			% Change
Nonaccrual loans
Commercial real estate:
Commercial property	$	1,497		$	1,538		(2.7	)%	$	1,851		(19.1	)%	$	1,804		(17.0	)%
Business property		1,654			1,485		11.4	%		2,336		(29.2	)%		2,440		(32.2	)%
Multifamily		—			—		—	%		—		—	%		2,038		(100.0	)%
Total commercial real estate		3,151			3,023		4.2	%		4,187		(24.7	)%		6,282		(49.8	)%
Commercial and industrial		255			66		286.4	%		79		222.8	%		112		127.7	%
Consumer:
Residential mortgage		5,526			3,153		75.3	%		403		1,271.2	%		1,100		402.4	%
Other consumer		—			6		(100.0	)%		24		(100.0	)%		6		(100.0	)%
Total consumer		5,526			3,159		74.9	%		427		1,194.1	%		1,106		399.6	%
Total nonaccrual loans held-for-investment		8,932			6,248		43.0	%		4,693		90.3	%		7,500		19.1	%
Loans past due 90 days or more and still accruing		—			—		—	%		—		—	%		—		—	%
Non-performing loans (“NPLs”)		8,932			6,248		43.0	%		4,693		90.3	%		7,500		19.1	%
NPLs held-for-sale		—			—		—	%		—		—	%		—		—	%
Total NPLs		8,932			6,248		43.0	%		4,693		90.3	%		7,500		19.1	%
Other real estate owned (“OREO”)		—			—		—	%		—		—	%		—		—	%
Non-performing assets (“NPAs”)	$	8,932		$	6,248		43.0	%	$	4,693		90.3	%	$	7,500		19.1	%
Loans past due and still accruing
Past due 30 to 59 days	$	2,327		$	5,236		(55.6	)%	$	4,599		(49.4	)%	$	2,245		3.7	%
Past due 60 to 89 days		226			101		123.8	%		303		(25.4	)%		41		451.2	%
Past due 90 days or more		—			—		—	%		—		—	%		—		—	%
Total loans past due and still accruing	$	2,553		$	5,337		(52.2	)%		4,902		(47.9	)%	$	2,286		11.7	%
Special mention loans	$	6,838		$	5,010		36.5	%	$	5,034		35.8	%	$	5,080		34.6	%
Classified assets
Classified loans held-for-investment	$	16,433		$	8,280		98.5	%	$	6,930		137.1	%	$	9,752		68.5	%
Classified loans held-for-sale		—			—		—	%		—		—	%		—		—	%
OREO		—			—		—	%		—		—	%		—		—	%
Classified assets	$	16,433		$	8,280		98.5	%	$	6,930		137.1	%	$	9,752		68.5	%
NPLs to loans held-for-investment		0.32	%		0.23	%				0.18	%				0.31	%
NPAs to total assets		0.27	%		0.20	%				0.15	%				0.26	%
Classified assets to total assets		0.50	%		0.26	%				0.23	%				0.34	%

Allowance for Credit Losses

The following table presents activity in ACL for the periods indicated:

	Three Months Ended													Six Months Ended
($ in thousands)	6/30/2025			3/31/2025			% Change		6/30/2024			% Change		6/30/2025			6/30/2024			% Change
ACL on loans
Balance at beginning of period	$	31,942		$	30,628		4.3	%	$	28,332		12.7	%	$	30,628		$	27,533		11.2	%
Charge-offs		(120	)		(353	)	(66.0	)%		—		NA			(473	)		(185	)	155.7	%
Recoveries		11			76		(85.5	)%		86		(87.2	)%		87			148		(41.2	)%
Provision for credit losses on loans		1,721			1,591		8.2	%		329		423.1	%		3,312			1,251		164.7	%
Balance at end of period	$	33,554		$	31,942		5.0	%	$	28,747		16.7	%	$	33,554		$	28,747		16.7	%
ACL on off-balance sheet credit exposure
Balance at beginning of period	$	1,197		$	1,190		0.6	%	$	1,445		(17.2	)%	$	1,190		$	1,277		(6.8	)%
Provision (reversal) for credit losses on off-balance sheet credit exposure		66			7		842.9	%		(70	)	NA			73			98		(25.5	)%
Balance at end of period	$	1,263		$	1,197		5.5	%	$	1,375		(8.1	)%	$	1,263		$	1,375		(8.1	)%

Investment Securities

Total investment securities were $154.6 million at June 30, 2025, an increase of $6.4 million, or 4.3%, from $148.2 million at March 31, 2025, an increase of $8.3 million, or 5.7%, from $146.3 million at December 31, 2024, and an increase of $6.6 million, or 4.5%, from $148.0 million at June 30, 2024. The increase for the current quarter was primarily due to purchases of $11.9 million and a fair value increase of $797 thousand, partially offset by principal pay-downs of $6.2 million and net premium amortization of $34 thousand. The increase for the current year-to-date period was primarily due to purchases of $14.9 million and a fair value increase of $4.0 million, partially offset by principal pay-downs of $10.5 million and net premium amortization of $65 thousand.

Deposits

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

	6/30/2025				3/31/2025				12/31/2024				6/30/2024
($ in thousands)	Amount		% to Total		Amount		% to Total		Amount		% to Total		Amount		% to Total
Noninterest-bearing demand deposits	$	575,905	20.4	%	$	564,407	20.8	%	$	547,853	20.9	%	$	543,538	22.6	%
Interest-bearing deposits
Savings		5,695	0.2	%		5,185	0.2	%		5,765	0.2	%		7,821	0.3	%
NOW		12,765	0.5	%		15,219	0.6	%		13,761	0.5	%		18,346	0.8	%
Retail money market accounts		533,032	18.7	%		492,334	18.0	%		447,360	17.1	%		457,760	18.9	%
Brokered money market accounts		1	0.1	%		1	0.1	%		1	0.1	%		1	0.1	%
Retail time deposits of
$250,000 or less		555,357	19.7	%		532,512	19.6	%		493,644	18.9	%		475,923	19.8	%
More than $250,000		649,160	23.0	%		652,458	24.0	%		605,124	23.1	%		559,832	23.2	%
State and brokered time deposits		491,000	17.4	%		452,283	16.7	%		502,283	19.2	%		343,033	14.3	%
Total interest-bearing deposits		2,247,010	79.6	%		2,149,992	79.2	%		2,067,938	79.1	%		1,862,716	77.4	%
Total deposits	$	2,822,915	100.0	%	$	2,714,399	100.0	%	$	2,615,791	100.0	%	$	2,406,254	100.0	%

Estimated total deposits not covered by deposit insurance	$	1,164,592	41.3	%	$	1,125,068	41.4	%	$	1,036,451	39.6	%	$	1,020,963	42.4	%

Total retail deposits were $2.33 billion at June 30, 2025, an increase of $69.8 million, or 3.1%, from $2.26 billion at March 31, 2025, an increase of $218.4 million, or 10.3%, from $2.11 billion at December 31, 2024, and an increase of $268.7 million, or 13.0%, from $2.06 billion at June 30, 2024.

The increase in retail time deposits for the current quarter was primarily due to new accounts of $117.6 million, renewals of the matured accounts of $265.5 million and balance increases of $8.5 million, partially offset by matured and closed accounts of $372.0 million. The increase for the current year-to-date period was primarily due to new accounts of $279.8 million, renewals of the matured accounts of $604.5 million and balance increases of $24.3 million, partially offset by matured and closed accounts of $802.8 million.

Liquidity

The following table presents a summary of the Company’s liquidity position as of the dates indicated:

($ in thousands)	6/30/2025			12/31/2024			% Change
Cash and cash equivalents	$	263,567		$	198,792		32.6	%
Cash and cash equivalents to total assets		8.0	%		6.5	%

Available borrowing capacity
FHLB advances	$	750,671		$	722,439		3.9	%
Federal Reserve Discount Window		774,881			586,525		32.1	%
Overnight federal funds lines		65,000			50,000		30.0	%
Total	$	1,590,551		$	1,358,964		17.0	%
Total available borrowing capacity to total assets		48.1	%		44.4	%

Shareholders’ Equity

Shareholders’ equity was $376.5 million at June 30, 2025, an increase of $5.6 million, or 1.5%, from $370.9 million at March 31, 2025, an increase of $12.7 million, or 3.5%, from $363.8 million at December 31, 2024, and an increase of $23.0 million, or 6.5%, from $353.5 million at June 30, 2024. The increase for the current quarter was primarily due to net income, a decrease in accumulated other comprehensive loss of $516 thousand and proceeds from stock option exercises of $534 thousand, partially offset by repurchases of common stock of $1.8 million, cash dividends declared on common stock of $2.9 million and preferred stock dividends of $87 thousand. The increase for the current year-to-date period was primarily due to net income, a decrease in accumulated other comprehensive loss of $2.8 million and proceeds from stock option exercises of $1.2 million, partially offset by repurchases of common stock of $2.7 million, cash dividends declared on common stock of $5.7 million and preferred stock dividends of $127 thousand.

Stock Repurchases

During the current year-to-date period, the Company repurchased and retired 149,304 shares of common stock at a weighted-average price of $18.24, totaling $2.7 million. 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 June 30, 2025, the Company is authorized to purchase 428,473 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 $87 thousand and $127 thousand for the current quarter and year-to-date period, respectively.

Capital Ratios

The following table presents capital ratios for the Company and the Bank as of the dates indicated:

	6/30/2025	3/31/2025	12/31/2024	6/30/2024	Well Capitalized Minimum Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)	11.14 %	11.25 %	11.44 %	11.91 %	N/A
Total capital (to risk-weighted assets)	14.84 %	14.98 %	15.24 %	15.94 %	N/A
Tier 1 capital (to risk-weighted assets)	13.60 %	13.77 %	14.04 %	14.71 %	N/A
Tier 1 capital (to average assets)	11.81 %	12.14 %	12.45 %	12.66 %	N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)	13.23 %	13.42 %	13.72 %	14.38 %	6.5 %
Total capital (to risk-weighted assets)	14.47 %	14.63 %	14.92 %	15.60 %	10.0 %
Tier 1 capital (to risk-weighted assets)	13.23 %	13.42 %	13.72 %	14.38 %	8.0 %
Tier 1 capital (to average assets)	11.50 %	11.82 %	12.16 %	12.37 %	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 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, inflation levels and interest rates; the impacts of the restatement of our consolidated financial statements at and for the quarter ended March 31, 2025; material weaknesses in the Company’s internal control over financial reporting that we have identified or may identify; the impacts of sanctions, tariffs and other trade policies of the United States and its global trading partners and tensions related to the same; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect the Company’s liquidity, financial performance and stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber security risks; the Company's ability to successfully deploy new technology; acquisitions and branch and loan production office expansions; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; litigation costs and outcomes; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, wildfires and other disasters, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other filings the Company makes with the SEC, which are available without charge at the SEC’s website (http://www.sec.gov) and on the investor relations section of the Company’s website at www.mypcbbank.com. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law

PCB Bancorp and Subsidiary Consolidated Balance Sheets (Unaudited) ($ in thousands, except share and per share data)

	6/30/2025			3/31/2025			% Change		12/31/2024			% Change		6/30/2024			% Change
Assets
Cash and due from banks	$	41,614		$	28,852		44.2	%	$	27,100		53.6	%	$	23,247		79.0	%
Interest-bearing deposits in other financial institutions		221,953			185,496		19.7	%		171,692		29.3	%		154,383		43.8	%
Total cash and cash equivalents		263,567			214,348		23.0	%		198,792		32.6	%		177,630		48.4	%
Securities available-for-sale, at fair value		154,620			148,190		4.3	%		146,349		5.7	%		148,009		4.5	%
Loans held-for-sale		8,133			12,101		(32.8	)%		6,292		29.3	%		2,959		174.9	%
Loans held-for-investment		2,795,309			2,727,610		2.5	%		2,629,387		6.3	%		2,449,074		14.1	%
Allowance for credit losses on loans		(33,554	)		(31,942	)	5.0	%		(30,628	)	9.6	%		(28,747	)	16.7	%
Net loans held-for-investment		2,761,755			2,695,668		2.5	%		2,598,759		6.3	%		2,420,327		14.1	%
Premises and equipment, net		8,942			8,420		6.2	%		8,280		8.0	%		8,923		0.2	%
Federal Home Loan Bank and other bank stock		14,978			14,042		6.7	%		14,042		6.7	%		14,042		6.7	%
Bank-owned life insurance		32,266			32,013		0.8	%		31,766		1.6	%		31,281		3.1	%
Deferred tax assets, net		7,032			6,736		4.4	%		7,249		(3.0	)%		—		NA
Servicing assets		5,756			5,631		2.2	%		5,837		(1.4	)%		6,205		(7.2	)%
Operating lease assets		17,861			17,779		0.5	%		17,254		3.5	%		17,609		1.4	%
Accrued interest receivable		10,879			10,967		(0.8	)%		10,466		3.9	%		10,464		4.0	%
Other assets		19,800			17,863		10.8	%		18,885		4.8	%		15,515		27.6	%
Total assets	$	3,305,589		$	3,183,758		3.8	%	$	3,063,971		7.9	%	$	2,852,964		15.9	%
Liabilities
Deposits
Noninterest-bearing demand	$	575,905		$	564,407		2.0	%	$	547,853		5.1	%	$	543,538		6.0	%
Savings, NOW and money market accounts		551,493			512,739		7.6	%		466,887		18.1	%		483,928		14.0	%
Time deposits of $250,000 or less		986,357			924,795		6.7	%		935,927		5.4	%		758,956		30.0	%
Time deposits of more than $250,000		709,160			712,458		(0.5	)%		665,124		6.6	%		619,832		14.4	%
Total deposits		2,822,915			2,714,399		4.0	%		2,615,791		7.9	%		2,406,254		17.3	%
Other short-term borrowings		—			—		—	%		15,000		(100.0	)%		4,000		(100.0	)%
Federal Home Loan Bank advances		45,000			30,000		50.0	%		—		NA			32,000		40.6	%
Deferred tax liabilities, net		—			—		—	%		—		—	%		577		(100.0	)%
Operating lease liabilities		19,652			19,465		1.0	%		18,671		5.3	%		18,939		3.8	%
Accrued interest payable and other liabilities		41,522			49,030		(15.3	)%		50,695		(18.1	)%		37,725		10.1	%
Total liabilities		2,929,089			2,812,894		4.1	%		2,700,157		8.5	%		2,499,495		17.2	%
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock		69,141			69,141		—	%		69,141		—	%		69,141		—	%
Common stock		142,152			143,156		(0.7	)%		143,195		(0.7	)%		142,698		(0.4	)%
Retained earnings		171,735			165,611		3.7	%		160,797		6.8	%		151,781		13.1	%
Accumulated other comprehensive loss, net		(6,528	)		(7,044	)	(7.3	)%		(9,319	)	(29.9	)%		(10,151	)	(35.7	)%
Total shareholders’ equity		376,500			370,864		1.5	%		363,814		3.5	%		353,469		6.5	%
Total liabilities and shareholders’ equity	$	3,305,589		$	3,183,758		3.8	%	$	3,063,971		7.9	%	$	2,852,964		15.9	%

Outstanding common shares		14,336,602			14,387,176					14,380,651					14,254,024
Book value per common share ⁽¹⁾	$	26.26		$	25.78				$	25.30				$	24.80
TCE per common share⁽²⁾	$	21.44		$	20.97				$	20.49				$	19.95
Total loan to total deposit ratio		99.31	%		100.93	%				100.76	%				101.90	%
Noninterest-bearing deposits to total deposits		20.40	%		20.79	%				20.94	%				22.59	%

(1)		The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company had no intangible equity components for the presented periods.
(2)		Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.

PCB Bancorp and Subsidiary Consolidated Statements of Income (Unaudited) ($ in thousands, except share and per share data)

	Three Months Ended													Six Months Ended
	6/30/2025			3/31/2025			% Change		6/30/2024			% Change		6/30/2025			6/30/2024			% Change
Interest and dividend income
Loans, including fees	$	45,478		$	43,026		5.7	%	$	40,626		11.9	%	$	88,504		$	79,877		10.8	%
Investment securities		1,462			1,408		3.8	%		1,310		11.6	%		2,870			2,556		12.3	%
Other interest-earning assets		2,368			2,458		(3.7	)%		3,009		(21.3	)%		4,826			6,067		(20.5	)%
Total interest income		49,308			46,892		5.2	%		44,945		9.7	%		96,200			88,500		8.7	%
Interest expense
Deposits		22,505			22,564		(0.3	)%		22,536		(0.1	)%		45,069			44,503		1.3	%
Other borrowings		813			45		1,706.7	%		674		20.6	%		858			1,263		(32.1	)%
Total interest expense		23,318			22,609		3.1	%		23,210		0.5	%		45,927			45,766		0.4	%
Net interest income		25,990			24,283		7.0	%		21,735		19.6	%		50,273			42,734		17.6	%
Provision for credit losses		1,787			1,598		11.8	%		259		590.0	%		3,385			1,349		150.9	%
Net interest income after provision for credit losses		24,203			22,685		6.7	%		21,476		12.7	%		46,888			41,385		13.3	%
Noninterest income
Gain on sale of loans		1,465			887		65.2	%		763		92.0	%		2,352			1,841		27.8	%
Service charges and fees on deposits		375			372		0.8	%		364		3.0	%		747			742		0.7	%
Loan servicing income		760			725		4.8	%		799		(4.9	)%		1,485			1,718		(13.6	)%
BOLI income		253			247		2.4	%		236		7.2	%		500			464		7.8	%
Other income		444			349		27.2	%		323		37.5	%		793			665		19.2	%
Total noninterest income		3,297			2,580		27.8	%		2,485		32.7	%		5,877			5,430		8.2	%
Noninterest expense
Salaries and employee benefits		8,844			9,075		(2.5	)%		9,225		(4.1	)%		17,919			18,443		(2.8	)%
Occupancy and equipment		2,379			2,289		3.9	%		2,300		3.4	%		4,668			4,658		0.2	%
Professional fees		805			628		28.2	%		973		(17.3	)%		1,433			2,057		(30.3	)%
Marketing and business promotion		597			243		145.7	%		318		87.7	%		840			637		31.9	%
Data processing		317			333		(4.8	)%		495		(36.0	)%		650			897		(27.5	)%
Director fees and expenses		225			226		(0.4	)%		221		1.8	%		451			453		(0.4	)%
Regulatory assessments		358			344		4.1	%		327		9.5	%		702			625		12.3	%
Other expense		1,304			1,336		(2.4	)%		1,316		(0.9	)%		2,640			3,757		(29.7	)%
Total noninterest expense		14,829			14,474		2.5	%		15,175		(2.3	)%		29,303			31,527		(7.1	)%
Income before income taxes		12,671			10,791		17.4	%		8,786		44.2	%		23,462			15,288		53.5	%
Income tax expense		3,600			3,056		17.8	%		2,505		43.7	%		6,656			4,322		54.0	%
Net income		9,071			7,735		17.3	%		6,281		44.4	%		16,806			10,966		53.3	%
Preferred stock dividends		87			40		117.5	%		142		(38.7	)%		127			142		(10.6	)%
Net income available to common shareholders	$	8,984		$	7,695		16.8	%	$	6,139		46.3	%	$	16,679		$	10,824		54.1	%
Earnings per common share
Basic	$	0.63		$	0.53				$	0.43				$	1.16		$	0.76
Diluted	$	0.62		$	0.53				$	0.43				$	1.15		$	0.75
Average common shares
Basic		14,213,032			14,272,267					14,237,083					14,242,486			14,236,251
Diluted		14,326,011			14,403,769					14,312,949					14,364,995			14,323,171

Dividend paid per common share	$	0.20		$	0.20				$	0.18				$	0.40		$	0.36
ROAA ⁽¹⁾		1.13	%		1.01	%				0.89	%				1.07	%		0.78	%
ROAE⁽¹⁾		9.76	%		8.53	%				7.19	%				9.16	%		6.29	%
ROATCE ^{(1), (2)}		11.87	%		10.45	%				8.75	%				11.17	%		7.73	%
Efficiency ratio⁽³⁾		50.63	%		53.88	%				62.65	%				52.19	%		65.46	%

(1)		Ratios are presented on an annualized basis.
(2)		Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(3)		The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.

PCB Bancorp and Subsidiary Average Balance, Average Yield, and Average Rate (Unaudited) ($ in thousands)

	Three Months Ended
	6/30/2025							3/31/2025							6/30/2024
	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⁾	$	2,782,200		$	45,478	6.56	%	$	2,649,037		$	43,026	6.59	%	$	2,414,824		$	40,626	6.77	%
Mortgage-backed securities		117,987			1,145	3.89	%		112,825			1,075	3.86	%		104,538			911	3.50	%
Collateralized mortgage obligation		20,616			203	3.95	%		21,028			210	4.05	%		22,992			249	4.36	%
SBA loan pool securities		5,368			46	3.44	%		5,927			54	3.69	%		6,891			74	4.32	%
Municipal bonds ⁽²⁾		2,379			21	3.54	%		2,424			22	3.68	%		3,238			29	3.60	%
Corporate bonds		4,705			47	4.01	%		4,336			47	4.40	%		4,157			47	4.55	%
Other interest-earning assets		200,875			2,368	4.73	%		209,375			2,458	4.76	%		213,428			3,009	5.67	%
Total interest-earning assets		3,134,130			49,308	6.31	%		3,004,952			46,892	6.33	%		2,770,068			44,945	6.53	%
Noninterest-earning assets
Cash and due from banks		23,267							24,656							23,057
ACL on loans		(31,932	)						(30,676	)						(28,372	)
Other assets		100,930							98,584							88,399
Total noninterest-earning assets		92,265							92,564							83,084
Total assets	$	3,226,395						$	3,097,516						$	2,853,152
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	532,842			4,772	3.59	%	$	483,927			4,297	3.60	%	$	473,557			4,876	4.14	%
Savings		5,334			4	0.30	%		5,612			3	0.22	%		6,899			4	0.23	%
Time deposits		1,649,034			17,729	4.31	%		1,650,662			18,264	4.49	%		1,383,167			17,656	5.13	%
Total interest-bearing deposits		2,187,210			22,505	4.13	%		2,140,201			22,564	4.28	%		1,863,623			22,536	4.86	%
Other borrowings		71,286			813	4.57	%		3,933			45	4.64	%		48,462			674	5.59	%
Total interest-bearing liabilities		2,258,496			23,318	4.14	%		2,144,134			22,609	4.28	%		1,912,085			23,210	4.88	%
Noninterest-bearing liabilities
Noninterest-bearing demand		533,530							516,630							535,508
Other liabilities		61,740							69,034							54,338
Total noninterest-bearing liabilities		595,270							585,664							589,846
Total liabilities		2,853,766							2,729,798							2,501,931
Total shareholders’ equity		372,629							367,718							351,221
Total liabilities and shareholders’ equity	$	3,226,395						$	3,097,516						$	2,853,152
Net interest income				$	25,990						$	24,283						$	21,735
Net interest spread⁽³⁾						2.17	%						2.05	%						1.65	%
Net interest margin ⁽⁴⁾						3.33	%						3.28	%						3.16	%
Total deposits	$	2,720,740		$	22,505	3.32	%	$	2,656,831		$	22,564	3.44	%	$	2,399,131		$	22,536	3.78	%
Total funding ⁽⁵⁾	$	2,792,026		$	23,318	3.35	%	$	2,660,764		$	22,609	3.45	%	$	2,447,593		$	23,210	3.81	%

(1)		Total loans include both loans held-for-sale and loans held-for-investment.
(2)		The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)		Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)		Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)		Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
(6)		Annualized.

PCB Bancorp and Subsidiary Average Balance, Average Yield, and Average Rate (Unaudited) ($ in thousands)

	Six Months Ended
	6/30/2025							6/30/2024
	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⁾	$	2,715,986		$	88,504	6.57	%	$	2,392,426		$	79,877	6.71	%
Mortgage-backed securities		115,420			2,220	3.88	%		103,195			1,750	3.41	%
Collateralized mortgage obligation		20,821			413	4.00	%		23,377			503	4.33	%
SBA loan pool securities		5,646			100	3.57	%		7,104			152	4.30	%
Municipal bonds ⁽²⁾		2,402			43	3.61	%		3,269			57	3.51	%
Corporate bonds		4,521			94	4.19	%		4,192			94	4.51	%
Other interest-earning assets		205,101			4,826	4.74	%		215,215			6,067	5.67	%
Total interest-earning assets		3,069,897			96,200	6.32	%		2,748,778			88,500	6.47	%
Noninterest-earning assets
Cash and due from banks		23,958							22,211
ACL on loans		(31,308	)						(27,975	)
Other assets		99,763							88,592
Total noninterest-earning assets		92,413							82,828
Total assets	$	3,162,310						$	2,831,606
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts	$	508,520			9,069	3.60	%	$	463,679			9,541	4.14	%
Savings		5,472			7	0.26	%		6,548			8	0.25	%
Time deposits		1,649,844			35,993	4.40	%		1,375,190			34,954	5.11	%
Total interest-bearing deposits		2,163,836			45,069	4.20	%		1,845,417			44,503	4.85	%
Other borrowings		37,796			858	4.58	%		45,324			1,263	5.60	%
Total interest-bearing liabilities		2,201,632			45,927	4.21	%		1,890,741			45,766	4.87	%
Noninterest-bearing liabilities
Noninterest-bearing demand		525,126							539,159
Other liabilities		65,368							51,123
Total noninterest-bearing liabilities		590,494							590,282
Total liabilities		2,792,126							2,481,023
Total shareholders’ equity		370,184							350,583
Total liabilities and shareholders’ equity	$	3,162,310						$	2,831,606
Net interest income				$	50,273						$	42,734
Net interest spread⁽³⁾						2.11	%						1.60	%
Net interest margin ⁽⁴⁾						3.30	%						3.13	%
Total deposits	$	2,688,962		$	45,069	3.38	%	$	2,384,576		$	44,503	3.75	%
Total funding ⁽⁵⁾	$	2,726,758		$	45,927	3.40	%	$	2,429,900		$	45,766	3.79	%

(1)		Total loans include both loans held-for-sale and loans held-for-investment.
(2)		The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)		Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)		Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)		Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
(6)		Annualized.

PCB Bancorp and Subsidiary Non-GAAP Financial Measures ($ in thousands)

Return on average tangible common equity, tangible common equity per common share and tangible common equity to total assets ratios

The Company's TCE is calculated by subtracting preferred stock from shareholders’ equity. The Company had no intangible assets for the presented periods. ROATCE, 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 financial measures are used by management in its analysis of the Company's performance. These non-GAAP financial measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP financial measures with financial measures defined by GAAP.

($ in thousands)		Three Months Ended									Six Months Ended
($ in thousands)		6/30/2025			3/31/2025			6/30/2024			6/30/2025			6/30/2024
Average total shareholders' equity	(a)	$	372,629		$	367,718		$	351,221		$	370,184		$	350,583
Less: average preferred stock	(b)		69,141			69,141			69,141			69,141			69,141
Average TCE	(c)=(a)-(b)		303,488			298,577			282,080			301,043			281,442
Net income	(d)	$	9,071		$	7,735		$	6,281		$	16,806		$	10,966
ROAE ⁽¹⁾	(d)/(a)		9.76	%		8.53	%		7.19	%		9.16	%		6.29	%
Net income available to common shareholders	(e)		8,984			7,695			6,139			16,679			10,824
ROATCE ⁽¹⁾	(e)/(c)		11.87	%		10.45	%		8.75	%		11.17	%		7.73	%

(1) Annualized.

($ in thousands, except per share data)		6/30/2025			3/31/2025			12/31/2024			6/30/2024
Total shareholders' equity	(a)	$	376,500		$	370,864		$	363,814		$	353,469
Less: preferred stock	(b)		69,141			69,141			69,141			69,141
TCE	(c)=(a)-(b)		307,359			301,723			294,673			284,328
Outstanding common shares	(d)		14,336,602			14,387,176			14,380,651			14,254,024
Book value per common share	(a)/(d)	$	26.26		$	25.78		$	25.30		$	24.80
TCE per common share	(c)/(d)		21.44			20.97			20.49			19.95
Total assets	(e)	$	3,305,589		$	3,183,758		$	3,063,971		$	2,852,964
Total shareholders' equity to total assets	(a)/(e)		11.39	%		11.65	%		11.87	%		12.39	%
TCE to total assets	(c)/(e)		9.30	%		9.48	%		9.62	%		9.97	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250724745302/en/

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

Source: PCB Bancorp

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