PCB Bancorp (the "Company") (NASDAQ:PCB), the holding company of PCB Bank (the "Bank"), today reported net income available to common shareholders of $7.5 million, or $0.52 per diluted common share, for the third quarter of 2024, compared with $6.1 million, or $0.43 per diluted common share, for the previous quarter and $7.0 million, or $0.49 per diluted common share, for the year-ago quarter.

Q3 2024 Highlights

Net income available to common shareholders totaled $7.5 million, or $0.52 per diluted common share;
Recorded a provision for credit losses of $50 thousand for the current quarter compared with $259 thousand for the previous quarter and $751 thousand for the year-ago quarter;
Allowance for Credit Losses ("ACL") on loans to loans held-for-investment ratio was 1.17% at September 30, 2024 compared with 1.17% at June 30, 2024, 1.19% at December 31, 2023 and 1.18% at September 30, 2023;
Net interest income was $22.7 million for the current quarter compared with $21.7 million for the previous quarter and $22.4 million for the year-ago quarter. Net interest margin was 3.25% for the current quarter compared with 3.16% for the previous quarter and 3.57% for the year-ago quarter;
Gain on sale of loans was $750 thousand for the current quarter compared with $763 thousand for the previous quarter and $689 thousand for the year-ago quarter;
Total assets were $2.89 billion at September 30, 2024, an increase of $36.9 million, or 1.3%, from $2.85 billion at June 30, 2024, an increase of $100.3 million, or 3.6%, from $2.79 billion at December 31, 2023 and an increase of $321.9 million, or 12.5%, from $2.57 billion at September 30, 2023;
Loans held-for-investment were $2.47 billion at September 30, 2024, an increase of $17.1 million, or 0.7%, from $2.45 billion at June 30, 2024, an increase of $142.7 million, or 6.1% from $2.32 billion at December 31, 2023, and an increase of $298.6 million, or 13.8%, from $2.17 billion at September 30, 2023; and
Total deposits were $2.46 billion at September 30, 2024, an increase of $53.4 million, or 2.2%, from $2.41 billion at June 30, 2024, an increase of $108.1 million, or 4.6%, from $2.35 billion at December 31, 2023, and an increase of $267.6 million, or 12.2%, from $2.19 billion at September 30, 2023.

"PCB's third quarter was another solid quarter for us, highlighted by a 21.6% increase in net income available to common shareholders to $7.5 million that was benefited from our solid year-over-year loan growth combined with our expanded net interest margin," said Henry Kim, President and Chief Executive Officer. "Additionally, we continue to maintain strong credit metrics, solid ACL, and robust capital ratios."

"During the third quarter, our loan balance increased 0.8% to $2.5 billion, deposits increased 2.2% to $2.5 billion, and we maintained our ACL to loan ratio at 1.17%, while reducing our non-performing assets and classified assets to total assets ratios to 0.24% and 0.32%, respectively."

Mr. Kim added, "As we look ahead to the fourth quarter and next year, our strategic expansion of our footprint and branch network optimizations will provide us with continued strong balance sheet growth with solid financial results."

Financial Highlights (Unaudited)

($ in thousands, except per share data)	Three Months Ended													Nine Months Ended
($ in thousands, except per share data)	9/30/2024			6/30/2024			% Change		9/30/2023			% Change		9/30/2024			9/30/2023			% Change
Net income	$	7,814		$	6,281		24.4	%	$	7,023		11.3	%	$	18,780		$	24,797		(24.3	)%
Net income available to common shareholders	$	7,468		$	6,139		21.6	%	$	7,023		6.3	%	$	18,292		$	24,797		(26.2	)%
Diluted earnings per common share	$	0.52		$	0.43		20.9	%	$	0.49		6.1	%	$	1.27		$	1.71		(25.7	)%

Net interest income	$	22,719		$	21,735		4.5	%	$	22,449		1.2	%	$	65,453		$	66,580		(1.7	)%
Provision (reversal) for credit losses		50			259		(80.7	)%		751		(93.3	)%		1,399			(1,830	)	NM
Noninterest income		2,620			2,485		5.4	%		2,502		4.7	%		8,050			8,180		(1.6	)%
Noninterest expense		14,602			15,175		(3.8	)%		14,207		2.8	%		46,129			41,588		10.9	%

Return on average assets ⁽¹⁾		1.08	%		0.89	%				1.09	%				0.88	%		1.32	%
Return on average shareholders' equity ⁽¹⁾		8.70	%		7.19	%				8.12	%				7.11	%		9.77	%
Return on average tangible common equity ("TCE") ^(1),(2)		10.31	%		8.75	%				10.17	%				8.61	%		12.27	%
Net interest margin ⁽¹⁾		3.25	%		3.16	%				3.57	%				3.17	%		3.63	%
Efficiency ratio ⁽³⁾		57.63	%		62.65	%				56.94	%				62.76	%		55.63	%

($ in thousands, except per share data)	9/30/2024			6/30/2024			% Change		12/31/2023			% Change		9/30/2023			% Change
Total assets	$	2,889,833		$	2,852,964		1.3	%	$	2,789,506		3.6	%	$	2,567,974		12.5	%
Net loans held-for-investment		2,437,244			2,420,327		0.7	%		2,295,919		6.2	%		2,142,006		13.8	%
Total deposits		2,459,682			2,406,254		2.2	%		2,351,612		4.6	%		2,192,129		12.2	%
Book value per common share ⁽⁴⁾	$	25.39		$	24.80				$	24.46				$	23.87
TCE per common share⁽²⁾	$	20.55		$	19.95				$	19.62				$	19.05
Tier 1 leverage ratio (consolidated)		12.79	%		12.66	%				13.43	%				13.76	%
Total shareholders' equity to total assets		12.54	%		12.39	%			<

PCB Bancorp Reports Earnings for Q3 2024