PCB Bancorp (the "Company") (NASDAQ:PCB), the holding company of Pacific City Bank (the "Bank"), today reported net income of $10.7 million, or $0.70 per diluted common share, for the fourth quarter of 2021, compared with $11.0 million, or $0.73 per diluted common share, for the previous quarter and $5.8 million, or $0.38 per diluted common share, for the year-ago quarter. For 2021, net income was $40.1 million, or $2.62 per diluted common share, compared with $16.2 million, or $1.04 per diluted common share, for the previous year.

Q4 2021 and Full Year Highlights

Net income totaled $10.7 million, or $0.70 per diluted common share, for the current quarter and $40.1 million, or $2.62 per diluted common share, for the current year;
- The Company recorded a provision (reversal) for loan losses of $(1.5) million for the current quarter compared with $(1.1) million for the previous quarter and $2.1 million for the year-ago quarter. For the current year, provision (reversal) for loan losses was $(4.6) million compared with $13.2 million for the previous year.
- Allowance for loan losses to loans held-for-investment⁽¹⁾ ratio was 1.29% at December 31, 2021 compared with 1.39% at September 30, 2021 and 1.67% at December 31, 2020. Adjusted allowance for loan losses to loans held-for-investment ratio⁽²⁾ was 1.34% at December 31, 2021 compared with 1.48% at September 30, 2021 and 1.83% at December 31, 2020.
- Net interest income was $20.1 million for the current quarter compared with $20.2 million for the previous quarter and $17.4 million for the year-ago quarter. Net interest margin was 3.87% for the current quarter compared with 3.93% for the previous quarter and 3.64% for the year-ago quarter. For the current year, net interest income and net interest margin were $77.1 million and 3.83%, respectively, compared with $66.2 million and 3.53%, respectively, for the previous year.
- Gain on sale of loans was $3.4 million for the current quarter compared with $4.3 million for the previous quarter and $3.5 million for the year-ago quarter. For the current year, gain on sale of loans was $12.9 million compared with $6.5 million for the previous year.
Total assets were $2.15 billion at December 31, 2021, an increase of $45.0 million, or 2.1%, from $2.10 billion at September 30, 2021 and an increase of $226.9 million, or 11.8%, from $1.92 billion at December 31, 2020;
Loans held-for-investment were $1.73 billion at December 31, 2021, an increase of $24.3 million, or 1.4%, from $1.71 billion at September 30, 2021 and an increase of $148.6 million, or 9.4%, from $1.58 billion at December 31, 2020;
- SBA PPP loans totaled $65.3 million, $101.9 million and $135.7 million at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.
- The Company had no loans under modified terms related to COVID-19 at December 31, 2021 and September 30, 2021. Loans under modified terms related to the COVID-19 pandemic totaled $36.1 million at December 31, 2020.
Total deposits were $1.87 billion at December 31, 2021, an increase of $34.5 million, or 1.9%, from $1.83 billion at September 30, 2021 and an increase of $272.3 million, or 17.1%, from $1.59 billion at December 31, 2020; and
Bank-owned life insurance ("BOLI") of $29.3 million was purchased during the current quarter.

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(1)

Loans held-for-investment are presented net of deferred fees and costs in this press release.

(2)

Adjusted allowance for loan losses to loans held-for-investment ratio is a non-GAAP measure, which excludes U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans from loans held-for-investment. See "Non-GAAP Measures" for reconciliation of this measure to its most comparable GAAP measure.

Henry Kim, President and Chief Executive Officer, commented, "We are pleased to announce another tremendous quarter with net income of $10.7 million for the fourth quarter of 2021 and record net income of $40.1 million for the year. Excluding SBA PPP loans, our loans held-for-investment increased $60.9 million, or 15.2% annualized, to $1.67 billion at December 31, 2021 compared with $1.61 billion at September 30, 2021. In addition to such record performances, we managed to improve our outstanding credit quality by reducing the non-performing loans to loans held-for-investment ratio to 0.06% and classified assets to total assets ratio to 0.24%.

"We continue to maintain an exceptional deposit mix consisting of over 44% in noninterest-bearing demand deposits and over 20% in retail money market accounts. In addition to our terrific organic loan growth and deposit mix, we managed to hold our net interest margin and efficiency ratio at 3.87% and 44.8% for the fourth quarter of 2021 and 3.83% and 45.2% for the year, respectively."

Mr. Kim continued, "As we look ahead, we believe we are on a strong position to deliver another year of solid financial performance, and to carry out our organic growth and strategic expansions. We will remain disciplined in our approach to increase the franchise value and to benefit our shareholders' return."

Financial Highlights (Unaudited)

($ in thousands, except per share data)	Three Months Ended													Year Ended
($ in thousands, except per share data)	12/31/2021			9/30/2021			% Change		12/31/2020			% Change		12/31/2021			12/31/2020			% Change
Net income	$	10,676		$	11,023		(3.1	)%	$	5,787		84.5	%	$	40,103		$	16,175		147.9	%
Diluted earnings per common share	$	0.70		$	0.73		(4.1	)%	$	0.38		84.2	%	$	2.62		$	1.04		151.9	%

Net interest income	$	20,095		$	20,227		(0.7	)%	$	17,407		15.4	%	$	77,137		$	66,189		16.5	%
Provision (reversal) for loan losses		(1,462	)		(1,053	)	38.8	%		2,142		(168.3	)%		(4,596	)		13,219		(134.8	)%
Noninterest income		4,838			5,588		(13.4	)%		4,524		6.9	%		18,434			11,740		57.0	%
Noninterest expense		11,168			11,232		(0.6	)%		11,550		(3.3	)%		43,208			41,699		3.6	%

Return on average assets ⁽¹⁾		2.01	%		2.11	%				1.19	%				1.96	%		0.84	%
Return on average shareholders' equity ^{(1), (2)}		16.84	%		17.98	%				9.92	%				16.52	%		7.08	%
Net interest margin ⁽¹⁾		3.87	%		3.93	%				3.64	%				3.83	%		3.53	%
Efficiency ratio ⁽³⁾		44.79	%		43.51	%				52.67	%				45.21	%		53.51	%

($ in thousands, except per share data)	12/31/2021			9/30/2021			% Change		12/31/2020			% Change
Total assets	$	2,149,735		$	2,104,699		2.1	%	$	1,922,853		11.8	%
Net loans held-for-investment		1,709,824			1,684,071		1.5	%		1,557,068		9.8	%
Total deposits		1,867,134			1,832,666		1.9	%		1,594,851		17.1	%
Book value per common share ^{(2), (4)}	$	17.24		$	16.68		3.4	%	$	15.19		13.5	%
Tier 1 leverage ratio (consolidated)		12.11	%		11.91	%				11.94	%
Total shareholders' equity to total assets ⁽²⁾		11.92	%		11.76	%				12.16	%

(1)		Ratios are presented on an annualized basis.
(2)		The Company did not have any intangible equity components for the presented periods.
(3)		The ratios are 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.

COVID-19 Pandemic

The ongoing COVID-19 pandemic, and governmental and societal responses thereto, have had a severe impact on global economic and market conditions. The U.S. government has enacted a number of monetary and fiscal policies to provide fiscal stimulus and relief in order to mitigate the impact of the COVID-19 pandemic. However, the COVID-19 pandemic continues to be a challenge to public health, including the emergence of new variants, and impact global economic and market conditions, including global supply chain disruptions and high inflation.

Since the beginning of the crisis, the Company has taken a number of steps to protect the safety of its employees and to support its customers. The Company has enabled its staff to work remotely and established safety measures within its bank premises and branches for both employees and customers. In order to support its customers, the Company has been in close contact with them, assessing the level of impact on their businesses, and putting a process in place to evaluate each client's specific situation and provide relief programs where appropriate, including SBA PPP loans and loan modifications related to the COVID-19 pandemic.

In addition, the Company has been monitoring its liquidity and capital closely. As of December 31, 2021, the Company maintained $203.3 million, or 9.5% of total assets, of cash and cash equivalents and $610.4 million, or 28.4% of total assets, of available borrowing capacity. All regulatory capital ratios were also well above the regulatory well-capitalized requirements as of December 31, 2021.

At this time, the Company cannot estimate the long term impact of the COVID-19 pandemic, but these conditions are expected to continue to impact its business, results of operations, and financial condition negatively.

Network and Data Incident

On August 30, 2021, the Bank identified unusual activity on its network. The Bank responded promptly to disable the activity, investigate its source and monitor the Bank's network. The Bank subsequently became aware of claims that it had been the target of a ransomware attack. On September 7, 2021, the Bank determined that an external actor had illegally accessed and/or acquired certain data on its network. The Bank has been working with third-party forensic investigators to understand the nature and scope of the incident and determine what information may have been accessed and/or acquired and who may have been impacted. The investigation revealed that this incident impacted certain files containing certain Bank customer information. Some of these files contained documents related to loan applications, such as tax returns, Form W-2 information of their employees, and payroll records. The Bank has notified all individuals identified as impacted, consistent with applicable laws. All impacted individuals were offered free Equifax Complete Premier credit monitoring and identify theft protection services. The Bank has notified law enforcement and appropriate authorities of the incident.

On December 16, 2021, a complaint based on the incident was filed in the Los Angeles County Superior Court seeking damages, injunctive relief, and equitable relief. The Bank expresses no opinion on the merits of the Matter and intends to answer, respond, and/or otherwise vigorously defend itself from the claims and causes of action asserted in the complaint to the fullest extent permitted by applicable law. Those defenses will be based in part on the fact that the Bank has implemented security procedures, practices, and a robust information security program pursuant to guidance from financial regulators.

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)	12/31/2021			9/30/2021			% Change		12/31/2020			% Change		12/31/2021			12/31/2020			% Change
Interest income/expense on
Loans	$	20,363		$	20,537		(0.8	)%	$	18,929		7.6	%	$	79,155		$	76,546		3.4	%
Investment securities		441			437		0.9	%		429		2.8	%		1,613			2,127		(24.2	)%
Other interest-earning assets		191			194		(1.5	)%		150		27.3	%		704			1,088		(35.3	)%
Total interest-earning assets		20,995			21,168		(0.8	)%		19,508		7.6	%		81,472			79,761		2.1	%
Interest-bearing deposits		847			885		(4.3	)%		1,958		(56.7	)%		4,043			12,958		(68.8	)%
Borrowings		53			56		(5.4	)%		143		(62.9	)%		292			614		(52.4	)%
Total interest-bearing liabilities		900			941		(4.4	)%		2,101		(57.2	)%		4,335			13,572		(68.1	)%
Net interest income	$	20,095		$	20,227		(0.7	)%	$	17,407		15.4	%	$	77,137		$	66,189		16.5	%
Average balance of
Loans	$	1,758,421		$	1,715,106		2.5	%	$	1,592,705		10.4	%	$	1,702,073		$	1,541,740		10.4	%
Investment securities		128,650			136,874		(6.0	)%		123,785		3.9	%		130,437			122,726		6.3	%
Other interest-earning assets		175,468			188,137		(6.7	)%		187,592		(6.5	)%		179,353			213,124		(15.8	)%
Total interest-earning assets	$	2,062,539		$	2,040,117		1.1	%	$	1,904,082		8.3	%	$	2,011,863		$	1,877,590		7.2	%
Interest-bearing deposits	$	1,008,027		$	1,000,332		0.8	%	$	1,050,369		(4.0	)%	$	1,022,099		$	1,088,164		(6.1	)%
Borrowings		13,315			18,152		(26.6	)%		91,467		(85.4	)%		31,302			94,319		(66.8	)%
Total interest-bearing liabilities	$	1,021,342		$	1,018,484		0.3	%	$	1,141,836		(10.6	)%	$	1,053,401		$	1,182,483		(10.9	)%
Total funding ⁽¹⁾	$	1,845,846		$	1,812,649		1.8	%	$	1,691,758		9.1	%	$	1,790,617		$	1,669,303		7.3	%
Annualized average yield/cost of
Loans		4.59	%		4.75	%				4.73	%				4.65	%		4.96	%
Investment securities		1.36	%		1.27	%				1.38	%				1.24	%		1.73	%
Other interest-earning assets		0.43	%		0.41	%				0.32	%				0.39	%		0.51	%
Total interest-earning assets		4.04	%		4.12	%				4.08	%				4.05	%		4.25	%
Interest-bearing deposits		0.33	%		0.35	%				0.74	%				0.40	%		1.19	%
Borrowings		1.58	%		1.22	%				0.62	%				0.93	%		0.65	%
Total interest-bearing liabilities		0.35	%		0.37	%				0.73	%				0.41	%		1.15	%
Net interest margin		3.87	%		3.93	%				3.64	%				3.83	%		3.53	%
Cost of total funding ⁽¹⁾		0.19	%		0.21	%				0.49	%				0.24	%		0.81	%
Supplementary information
Net accretion of discount on loans	$	815		$	932		(12.6	)%	$	991		(17.8	)%	$	3,504		$	3,292		6.4	%
Net amortization of deferred loan fees	$	1,434		$	1,983		(27.7	)%	$	913		57.1	%	$	6,096		$	2,901		110.1	%

(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 decrease in average yield for the current quarter compared with the previous quarter was primarily due to a decrease in net deferred loan fee amortization from a lower volume of SBA PPP loans forgiven and a decrease in net accretion of discount on loans attributed to a decrease in loan payoffs. The decreases in average yield for the current quarter and year compared with the same periods of 2020 were primarily due to a decrease in overall interest rates on loans from lower 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:

	12/31/2021				9/30/2021				12/31/2020
	% to Total Loans		Weighted- Average Contractual Rate		% to Total Loans		Weighted- Average Contractual Rate		% to Total Loans		Weighted- Average Contractual Rate
Fixed rate loans	28.4	%	3.98	%	29.9	%	3.86	%	31.7	%	3.86	%
Hybrid rate loans	29.1	%	4.16	%	26.4	%	4.28	%	20.8	%	4.82	%
Variable rate loans	42.5	%	3.95	%	43.7	%	3.96	%	47.5	%	4.06	%

Investment Securities. The increase in average yield for the current quarter compared with the previous quarter was primarily due to a decrease in net amortization of premiums on mortgage-backed securities and collateralized mortgage obligations. The decreases in average yield for the current quarter and year compared with the same periods of 2020 were primarily due to new investment securities purchased at lower market rates.

Other Interest-Earning Assets. The increase in average yield for the current quarter compared with the previous and year-ago quarters was primarily due to an increase in dividend income on Federal Home Loan Bank ("FHLB") stock. The decrease in average yield for the current year compared with the previous year was primarily due to lower market rates, partially offset by an increase in dividend income on FHLB stock. The decreases in average balance for the current quarter and year were primarily due to an increase in loans and a purchase of BOLI, partially offset by an increase in deposits. The Company maintains most of its cash at the Federal Reserve Bank account. For additional detail, please see the discussion in "Loans" and "Deposits" under the "Balance Sheet" discussion.

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

Borrowings. The increases in average cost for the current quarter and year compared with the same periods of 2020 were primarily due to matured borrowings with lower interest rates during the current year. Matured FHLB advances totaled $70.0 million with a weighted-average rate of 0.47% for the current year. At December 31, 2021, the Company had a term FHLB advance of $10.0 million with an interest rate of 2.07% that matures on June 29, 2022.

Provision (reversal) for Loan Losses

Provision (reversal) for loan losses was $(1.5) million for the current quarter compared with $(1.1) million for the previous quarter and $2.1 million for the year-ago quarter. For the current and previous years, provision (reversal) for loan losses was $(4.6) million and $13.2 million, respectively. The reversal for the current quarter was primarily due to a decrease in qualitative adjustment factor allocations related to economic implications of the COVID-19 pandemic. The Company recorded net charge-offs (recoveries) of $(36) thousand for the current quarter compared with $30 thousand for the previous quarter and $178 thousand for the year-ago quarter. For the current and previous years, net charge-offs (recoveries) were $(467) thousand and $1.1 million, respectively.

Adjusted allowance for loan losses to loans held-for-investment ratio ⁽¹⁾ was 1.34%, 1.48%, and 1.83% at December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

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(1)		Adjusted allowance for loan losses to loans held-for-investment ratio is a non-GAAP measure, which excludes SBA PPP loans from loans held-for-investment. See "Non-GAAP Measures" for reconciliation of this measure to its most comparable GAAP measure.

Noninterest Income

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

	Three Months Ended										Year Ended
($ in thousands)	12/31/2021		9/30/2021		% Change		12/31/2020		% Change		12/31/2021		12/31/2020		% Change
Gain on sale of loans	$	3,374	$	4,269	(21.0	)%	$	3,483	(3.1	)%	$	12,932	$	6,527	98.1	%
Service charges and fees on deposits		308		292	5.5	%		311	(1.0	)%		1,195		1,256	(4.9	)%
Loan servicing income		688		655	5.0	%		398	72.9	%		2,770		2,710	2.2	%
Bank-owned life insurance income		108		—	NM			—	NM			108		—	NM
Other income		360		372	(3.2	)%		332	8.4	%		1,429		1,247	14.6	%
Total noninterest income	$	4,838	$	5,588	(13.4	)%	$	4,524	6.9	%	$	18,434	$	11,740	57.0	%

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

	Three Months Ended										Year Ended
($ in thousands)	12/31/2021		9/30/2021		% Change		12/31/2020		% Change		12/31/2021		12/31/2020		% Change
Gain on sale of SBA loans
Sold loan balance	$	36,765	$	45,048	(18.4	)%	$	42,413	(13.3	)%	$	126,839	$	89,776	41.3	%
Premium received		3,683		4,879	(24.5	)%		4,441	(17.1	)%		14,043		8,456	66.1	%
Gain recognized		3,363		4,263	(21.1	)%		3,197	5.2	%		12,775		6,038	111.6	%
Gain on sale of residential property loans
Sold loan balance	$	559	$	301	85.7	%	$	27,139	(97.9	)%	$	10,382	$	51,921	(80.0	)%
Gain recognized		9		2	350.0	%		286	(96.9	)%		151		489	(69.1	)%

The Company also sold certain commercial property loans of $3.4 million and $8.6 million during the current quarter and year, respectively.

Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:

	Three Months Ended													Year Ended
($ in thousands)	12/31/2021			9/30/2021			% Change		12/31/2020			% Change		12/31/2021			12/31/2020			% Change
Loan servicing income
Servicing income received	$	1,202		$	1,180		1.9	%	$	961		25.1	%	$	4,779		$	4,657		2.6	%
Servicing assets amortization		(514	)		(525	)	(2.1	)%		(563	)	(8.7	)%		(2,009	)		(1,947	)	3.2	%
Loan servicing income	$	688		$	655		5.0	%	$	398		72.9	%	$	2,770		$	2,710		2.2	%
Underlying loans at end of period	$	519,706		$	511,930		1.5	%	$	498,795		4.2	%	$	519,706		$	498,795		4.2	%

The Company services SBA loans and certain residential property loans that are sold to the secondary market. The increases for the current quarter compared with the previous and year-ago quarters were primarily due to a decrease in servicing asset amortization from a decrease in loan payoffs and an increase in servicing income received. The increase for the current year compared with the previous year was primarily due to an increase in servicing income received, partially offset by an increase in servicing asset amortization from an increase in loan payoffs.

Noninterest Expense

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

	Three Months Ended										Year Ended
($ in thousands)	12/31/2021		9/30/2021		% Change		12/31/2020		% Change		12/31/2021		12/31/2020		% Change
Salaries and employee benefits	$	7,061	$	7,606	(7.2	)%	$	7,397	(4.5	)%	$	27,974	$	26,147	7.0	%
Occupancy and equipment		1,417		1,399	1.3	%		1,424	(0.5	)%		5,575		5,620	(0.8	)%
Professional fees		585		422	38.6	%		625	(6.4	)%		2,159		2,256	(4.3	)%
Marketing and business promotion		586		416	40.9	%		440	33.2	%		1,656		1,360	21.8	%
Data processing		408		391	4.3	%		375	8.8	%		1,572		1,472	6.8	%
Director fees and expenses		161		144	11.8	%		146	10.3	%		594		599	(0.8	)%
Regulatory assessments		138		12	1,050.0	%		250	(44.8	)%		537		978	(45.1	)%
Other expenses		812		842	(3.6	)%		893	(9.1	)%		3,141		3,267	(3.9	)%
Total noninterest expense	$	11,168	$	11,232	(0.6	)%	$	11,550	(3.3	)%	$	43,208	$	41,699	3.6	%

Salaries and Employee Benefits. The decrease for the current quarter compared to the previous quarter was primarily due to a decrease in incentives tied to the sales of Loan Production Offices ("LPO") originated SBA loans and the incentive paid during the previous quarter for SBA PPP loan production. The increase for the current year compared with the previous year was primarily due to increases in wages, bonus accrual, and increases in incentives for LPO originated SBA loan sales, partially offset by decreases in vacation and stock compensation expense.

Professional Fees. The decrease for the current year compared with the previous year was primarily due to decreases in expenses related to the Bank's Bank Secrecy Act and Anti-Money Laundering compliance enhancements, partially offset by an increase in audit fees.

Marketing and Business Promotion. The increase for the current quarter compared with the previous quarter was primarily due to the year-end promotion. The increases for the current quarter and year compared with the same periods of 2020 were primarily due to more marketing activities and advertisement for the current quarter and year.

Regulatory Assessments. The increase for the current quarter compared with the previous quarter was primarily due to an prior-period adjustment made during the previous quarter for the assessment rate decrease. The decreases for the current quarter and year compared with the same periods of 2020 were primarily due to a decrease in assessment rate, partially offset by an increase in balance sheet.

Balance Sheet (Unaudited)

Total assets were $2.15 billion at December 31, 2021, an increase of $45.0 million, or 2.1%, from $2.10 billion at September 30, 2021 and an increase of $226.9 million, or 11.8%, from $1.92 billion at December 31, 2020. The increase for the current quarter was primarily due to increases in loans held-for-sale and net loans held-for-investment, and the purchase of BOLI, partially offset by decreases in cash and cash equivalents and investment securities. The increase for the current year was primarily due to increases in loans held-for-investment, loans-held-for-sale, investment securities, and cash and cash equivalents, as well as the purchase of BOLI.

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)	12/31/2021		9/30/2021		% Change		12/31/2020		% Change
Real estate loans
Commercial property	$	1,105,843	$	1,054,351	4.9	%	$	880,736	25.6	%
Residential property		209,485		201,635	3.9	%		198,431	5.6	%
SBA property		129,661		127,845	1.4	%		126,570	2.4	%
Construction		8,252		6,572	25.6	%		15,199	(45.7	)%
Commercial and industrial loans
Commercial term		73,438		74,390	(1.3	)%		87,250	(15.8	)%
Commercial lines of credit		100,936		101,456	(0.5	)%		96,087	5.0	%
SBA commercial term		17,640		18,338	(3.8	)%		21,878	(19.4	)%
SBA PPP		65,329		101,901	(35.9	)%		135,654	(51.8	)%
Other consumer loans		21,621		21,390	1.1	%		21,773	(0.7	)%
Loans held-for-investment		1,732,205		1,707,878	1.4	%		1,583,578	9.4	%
Loans held-for-sale		37,026		29,020	27.6	%		1,979	1,770.9	%
Total loans	$	1,769,231	$	1,736,898	1.9	%	$	1,585,557	11.6	%

The increase in loans held-for-investment for the current quarter was primarily due to new funding of $120.8 million and advances on lines of credit of $30.0 million, partially offset by pay-downs and pay-offs of $123.1 million. The increase for the current year was primarily due to new funding of $619.7 million and advances on lines of credit of $118.9 million, partially offset by pay-downs and pay-offs of $581.0 million. SBA PPP loans of $37.9 million and $182.7 million were paid off through regular payments or forgiveness from SBA, and related unamortized net deferred fees were recognized through interest income, during the current quarter and year.

The increase in loans held-for-sale for the current quarter was primarily due to new funding of $45.4 million, partially offset by sales of $40.7 million. The increase for the current year was primarily due to new funding of $172.2 million, partially offset by sales of $145.8 million.

The following table presents a composition of commitments to extend credit as of the dates indicated:

($ in thousands)

12/31/2021

9/30/2021

% Change

12/31/2020

% Change

Real estate loans

PCB Bancorp Reports Earnings of $10.7 Million for Q4 2021 and $40.1 Million for 2021