PCB Bancorp (the "Company") (NASDAQ:PCB), the holding company of PCB Bank (the "Bank"), today reported net income available to common shareholders of $6.7 million, or $0.46 per diluted common share, for the fourth quarter of 2024, compared with $7.5 million, or $0.52 per diluted common share, for the previous quarter and $5.9 million, or $0.41 per diluted common share, for the year-ago quarter. For 2024, net income available to common shareholders was $25.0 million, or $1.74 per diluted common share, compared with $30.7 million, or $2.12 per diluted common share, for the previous year.

Q4 2024 and Full Year Highlights

Net income available to common shareholders totaled $6.7 million, or $0.46 per diluted common share, for the current quarter and $25.0 million, or $1.74 per diluted common share, for the current year;
Provision for credit losses was $2.0 million for the current quarter compared with $50 thousand for the previous quarter and $1.7 million for the year-ago quarter. For the current year, provision (reversal) for credit losses was $3.4 million compared with $(132) thousand for the previous year;
Allowance for Credit Losses ("ACL") on loans to loans held-for-investment ratio was 1.16% at December 31, 2024 compared with 1.17% at September 30, 2024 and 1.19% at December 31, 2023;
Net interest income was $23.2 million for the current quarter compared with $22.7 million for the previous quarter and $21.9 million for the year-ago quarter. Net interest margin was 3.18% for the current quarter compared with 3.25% for the previous quarter and 3.40% for the year-ago quarter. For the current year, net interest income and net interest margin were $88.6 million and 3.17%, respectively, compared with $88.5 million and 3.57%, respectively, for the previous year;
Gain on sale of loans was $1.2 million for the current quarter compared with $750 thousand for the previous quarter and $803 thousand for the year-ago quarter. For the current year, gain on sale of loans was $3.8 million compared with $3.6 million for the previous year;
Total assets were $3.06 billion at December 31, 2024, an increase of $174.1 million, or 6.0%, from $2.89 billion at September 30, 2024 and an increase of $274.5 million, or 9.8%, from $2.79 billion at December 31, 2023;
Loans held-for-investment were $2.63 billion at December 31, 2024, an increase of $163.2 million, or 6.6%, from $2.47 billion at September 30, 2024 and an increase of $305.9 million, or 13.2%, from $2.32 billion at December 31, 2023; and
Total deposits were $2.62 billion at December 31, 2024, an increase of $156.1 million, or 6.3%, from $2.46 billion at September 30, 2024 and an increase of $264.2 million, or 11.2%, from $2.35 billion at December 31, 2023.

Henry Kim, President and CEO, commented, "Over the past few weeks, we are saddened by the unspeakable devastation caused by the wildfires in Southern California. We are currently in the process of determining the overall impact on our customers. Fortunately, our assessment of the current situation does not indicate any significant losses to any of our customers at this time."

Mr. Kim continued, "Our strong fourth quarter results reflect strong loan growth combined with another solid credit metrics. Additionally, we successfully maintained an efficiency ratio of 53% for the quarter that was primarily driven by our bank-wide cost saving measures and ongoing branch network optimizations."

"During the past couple of years, we made significant steps in strengthening our balance sheet and core earnings capacity. As we look ahead in 2025 and beyond, we believe we are well positioned to generate further growth in balance sheet, continue to operate efficiently while expanding our branch network, and expand profitability to create ongoing value for our shareholders."

Financial Highlights (Unaudited)

($ in thousands, except per share data)	Three Months Ended													Year Ended
($ in thousands, except per share data)	12/31/2024			9/30/2024			% Change		12/31/2023			% Change		12/31/2024			12/31/2023			% Change
Net income	$	7,030		$	7,814		(10.0	)%	$	5,908		19.0	%	$	25,810		$	30,705		(15.9	)%
Net income available to common shareholders	$	6,684		$	7,468		(10.5	)%	$	5,908		13.1	%	$	24,976		$	30,705		(18.7	)%
Diluted earnings per common share	$	0.46		$	0.52		(11.5	)%	$	0.41		12.2	%	$	1.74		$	2.12		(17.9	)%

Net interest income	$	23,164		$	22,719		2.0	%	$	21,924		5.7	%	$	88,617		$	88,504		0.1	%
Provision (reversal) for credit losses		2,002			50		3,904.0	%		1,698		17.9	%		3,401			(132	)	NM
Noninterest income		3,043			2,620		16.1	%		2,503		21.6	%		11,093			10,683		3.8	%
Noninterest expense		13,894			14,602		(4.8	)%		14,469		(4.0	)%		60,023			56,057		7.1	%

Return on average assets ⁽¹⁾		0.94	%		1.08	%				0.89	%				0.90	%		1.20	%
Return on average shareholders' equity ⁽¹⁾		7.69	%		8.70	%				6.82	%				7.26	%		9.02	%
Return on average tangible common equity ("TCE") ^(1),(2)		9.02	%		10.31	%				8.54	%				8.72	%		11.31	%
Net interest margin ⁽¹⁾		3.18	%		3.25	%				3.40	%				3.17	%		3.57	%
Efficiency ratio ⁽³⁾		53.02	%		57.63	%				59.23	%				60.20	%		56.52	%

($ in thousands, except per share data)	12/31/2024			9/30/2024			% Change		12/31/2023			% Change
Total assets	$	3,063,971		$	2,889,833		6.0	%	$	2,789,506		9.8	%
Net loans held-for-investment		2,598,759			2,437,244		6.6	%		2,295,919		13.2	%
Total deposits		2,615,791			2,459,682		6.3	%		2,351,612		11.2	%
Book value per common share ⁽⁴⁾	$	25.30		$	25.39				$	24.46
TCE per common share⁽²⁾	$	20.49		$	20.55				$	19.62
Tier 1 leverage ratio (consolidated)		12.45	%		12.79	%				13.43	%
Total shareholders' equity to total assets		11.87	%		12.54	%				12.51	%
TCE to total assets ^{(2), (5)}		9.62	%		10.14	%				10.03	%

(1)	Ratios are presented on an annualized basis.
(2)	Non-GAAP. See "Non-GAAP Measures" for reconciliation of this measure to its most comparable GAAP measure.
(3)	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										Year Ended
($ in thousands)	12/31/2024		9/30/2024		% Change		12/31/2023		% Change		12/31/2024		12/31/2023		% Change
Interest income/expense on
Loans	$	42,309	$	42,115	0.5	%	$	37,189	13.8	%	$	164,301	$	136,029	20.8	%
Investment securities		1,388		1,384	0.3	%		1,271	9.2	%		5,328		4,679	13.9	%
Other interest-earning assets		2,622		2,499	4.9	%		2,491	5.3	%		11,188		10,469	6.9	%
Total interest-earning assets		46,319		45,998	0.7	%		40,951	13.1	%		180,817		151,177	19.6	%
Interest-bearing deposits		22,927		23,057	(0.6	)%		18,728	22.4	%		90,487		62,165	45.6	%
Borrowings		228		222	2.7	%		299	(23.7	)%		1,713		508	237.2	%
Total interest-bearing liabilities		23,155		23,279	(0.5	)%		19,027	21.7	%		92,200		62,673	47.1	%
Net interest income	$	23,164	$	22,719	2.0	%	$	21,924	5.7	%	$	88,617	$	88,504	0.1	%
Average balance of
Loans	$	2,538,310	$	2,456,015	3.4	%	$	2,242,457	13.2	%	$	2,445,080	$	2,137,851	14.4	%
Investment securities		147,943		147,528	0.3	%		139,227	6.3	%		144,455		140,596	2.7	%
Other interest-earning assets		207,234		175,711	17.9	%		175,336	18.2	%		203,279		198,809	2.2	%
Total interest-earning assets	$	2,893,487	$	2,779,254	4.1	%	$	2,557,020	13.2	%	$	2,792,814	$	2,477,256	12.7	%
Interest-bearing deposits	$	1,986,901	$	1,893,006	5.0	%	$	1,650,132	20.4	%	$	1,892,944	$	1,538,234	23.1	%
Borrowings		17,946		15,848	13.2	%		21,000	(14.5	)%		31,033		9,192	237.6	%
Total interest-bearing liabilities	$	2,004,847	$	1,908,854	5.0	%	$	1,671,132	20.0	%	$	1,923,977	$	1,547,426

PCB Bancorp Reports Earnings for Q4 2024 and Full Year 2024