PCB Bancorp (the "Company") (NASDAQ:PCB), the holding company of PCB Bank (the "Bank"), today reported net income of $6.3 million, or $0.43 per diluted common share, for the second quarter of 2024, compared with $4.7 million, or $0.33 per diluted common share, for the previous quarter and $7.5 million, or $0.52 per diluted common share, for the year-ago quarter.

Q2 2024 Highlights

Net income totaled $6.3 million, or $0.43 per diluted common share;
Recorded a provision for credit losses of $259 thousand for the current quarter compared with $1.1 million for the previous quarter and $197 thousand for the year-ago quarter;
Allowance for Credit Losses ("ACL") on loans to loans held-for-investment ratio was 1.17% at June 30, 2024 compared with 1.18% at March 31, 2024, 1.19% at December 31, 2023 and 1.17% at June 30, 2023;
Net interest income was $21.7 million for the current quarter compared with $21.0 million for the previous quarter and $21.7 million for the year-ago quarter. Net interest margin was 3.16% for the current quarter compared with 3.10% for the previous quarter and 3.55% for the year-ago quarter;
Gain on sale of loans was $763 thousand for the current quarter compared with $1.1 million for the previous quarter and $769 thousand for the year-ago quarter;
Total assets were $2.85 billion at June 30, 2024, a decrease of $1.3 million, or 0.1%, from $2.85 billion at March 31, 2024, but an increase of $63.5 million, or 2.3%, from $2.79 billion at December 31, 2023 and an increase of $296.6 million, or 11.6%, from $2.56 billion at June 30, 2023;
Loans held-for-investment were $2.45 billion at June 30, 2024, an increase of $51.1 million, or 2.1%, from $2.40 billion at March 31, 2024, an increase of $125.6 million, or 5.4% from $2.32 billion at December 31, 2023, and an increase of $326.6 million, or 15.4%, from $2.12 billion at June 30, 2023;
Total deposits were $2.41 billion at June 30, 2024, an increase of $3.4 million, or 0.1%, from $2.40 billion at March 31, 2024, an increase of $54.6 million, or 2.3%, from $2.35 billion at December 31, 2023, and an increase of $218.0 million, or 10.0%, from $2.19 billion at June 30, 2023; and
The Company paid the initial quarterly preferred stock dividend at an annualized dividend rate of 2% during the current quarter. Preferred stock dividend for the current quarter was $142 thousand.

"We are pleased to share our strong second quarter results led by solid loan growth and stabilization of core deposit balance which gave rise to an improvement in our net interest margin," said Henry Kim, President and Chief Executive Officer. Our commitment to focus on relationship banking and strategic expansions, while maintaining our conservative credit culture, has resulted in continued positive results."

"During the second quarter our loan balance increased 2.1% to $2.5 billion, deposits increased 0.1% to $2.4 billion, and we slightly reduced the brokered deposits. We continued to maintain solid ACL to loan ratio of 1.17%, and non-performing assets and classified assets to total assets ratios of 0.26% and 0.34%, respectively. Even with the challenging high interest rate environment and its effect on our funding costs, our net interest margin expanded during the quarter. We believe our funding costs are currently near the peak and our net interest margin is showing positive sign of coming out from the bottom."

Mr. Kim added, "As we look ahead into the second half of the year, our expanding bi-coastal branch network is well positioned to deliver continued strong balance sheet growth with solid financial results and sound asset quality that is further strengthened by our robust capital levels."

Financial Highlights (Unaudited)

($ in thousands, except per share data)	Three Months Ended													Six Months Ended
($ in thousands, except per share data)	6/30/2024			3/31/2024			% Change		6/30/2023			% Change		6/30/2024			6/30/2023			% Change
Net income	$	6,281		$	4,685		34.1	%	$	7,477		(16.0	)%	$	10,966		$	17,774		(38.3	)%
Net income available to common shareholders	$	6,139		$	4,685		31.0	%	$	7,477		(17.9	)%	$	10,824		$	17,774		(39.1	)%
Diluted earnings per common share	$	0.43		$	0.33		30.3	%	$	0.52		(17.3	)%	$	0.75		$	1.22		(38.5	)%

Net interest income	$	21,735		$	20,999		3.5	%	$	21,717		0.1	%	$	42,734		$	44,131		(3.2	)%
Provision (reversal) for credit losses		259			1,090		(76.2	)%		197		31.5	%		1,349			(2,581	)	NM
Noninterest income		2,485			2,945		(15.6	)%		2,657		(6.5	)%		5,430			5,678		(4.4	)%
Noninterest expense		15,175			16,352		(7.2	)%		13,627		11.4	%		31,527			27,381		15.1	%

Return on average assets ⁽¹⁾		0.89	%		0.67	%				1.19	%				0.78	%		1.44	%
Return on average shareholders' equity ⁽¹⁾		7.19	%		5.39	%				8.82	%				6.29	%		10.62	%
Return on average tangible common equity ("TCE") ^(1),(2)		8.96	%		6.72	%				11.08	%				7.84	%		13.35	%
Net interest margin ⁽¹⁾		3.16	%		3.10	%				3.55	%				3.13	%		3.67	%
Efficiency ratio ⁽³⁾		62.65	%		68.29	%				55.91	%				65.46	%		54.97	%

($ in thousands, except per share data)	6/30/2024		3/31/2024		% Change		12/31/2023		% Change		6/30/2023		% Change
Total assets	$	2,852,964	$	2,854,292	(0.1	)%	$	2,789,506	2.3	%	$	2,556,345	11.6	%
Net loans held-for-investment		2,420,327		2,369,632	2.1	%		2,295,919	5.4	%		2,097,560	15.4	%
Total deposits		2,406,254		2,402,840	0.1	%		2,351,612	2.3	%		2,188,232	10.0	%
Book value per common share ⁽⁴⁾	$	24.80	$	24.54			$	24.46			$	23.77
TCE per common share⁽²⁾	$	19.95

PCB Bancorp Reports Earnings of $6.3 Million for Q2 2024