PCB Bancorp (the "Company") (NASDAQ:PCB), the holding company of PCB Bank (the "Bank"), today reported net income of $7.0 million, or $0.49 per diluted common share, for the third quarter of 2023, compared with $7.5 million, or $0.52 per diluted common share, for the previous quarter and $7.0 million, or $0.46 per diluted common share, for the year-ago quarter.

Q3 2023 Highlights

Net income totaled $7.0 million, or $0.49 per diluted common share, for the current quarter;
Recorded a provision for credit losses^(1),(2) of $751 thousand for the current quarter compared with $197 thousand for the previous quarter and $3.8 million for the year-ago quarter;
Allowance for Credit Losses ("ACL")⁽¹⁾ on loans to loans held-for-investment ratio was 1.18% at September 30, 2023 compared with 1.17% at June 30, 2023 and 1.21% at September 30, 2022;
Net interest income was $22.4 million for the current quarter compared with $21.7 million for the previous quarter and $24.0 million for the year-ago quarter. Net interest margin was 3.57% for the current quarter compared with 3.55% for the previous quarter and 4.25% for the year-ago quarter;
Gain on sale of loans was $689 thousand for the current quarter compared with $769 thousand for the previous quarter and $1.4 million for the year-ago quarter;
Total assets were $2.57 billion at September 30, 2023, an increase of $11.6 million, or 0.5%, from $2.56 billion at June 30, 2023, an increase of $147.9 million, or 6.1%, from $2.42 billion at December 31, 2022, and an increase of $240.9 million, or 10.4%, from $2.33 billion at September 30, 2022;
Loans held-for-investment were $2.17 billion at September 30, 2023, an increase of $45.2 million, or 2.1%, from $2.12 billion at June 30, 2023, an increase of $121.5 million, or 5.9%, from $2.05 billion at December 31, 2022, and an increase of $208.4 million, or 10.6%, from $1.96 billion at September 30, 2022;
Total deposits were $2.19 billion at September 30, 2023, an increase of $3.9 million, or 0.2%, from $2.19 billion at June 30, 2023, an increase of $146.1 million, or 7.1%, from $2.05 billion at December 31, 2022, and an increase of $214.0 million, or 10.8%, from $1.98 billion at September 30, 2022; and
Announced a stock repurchase program on August 2, 2023 for the repurchase of up to 720,000 shares of the Company's outstanding common stock through August 2, 2024. During the current quarter, the Company repurchased and retired 67,202 shares of common stock.

"We are pleased with our continued solid earnings, modest loan growth, and a slight increase in net interest margin and net interest income during the third quarter," said Henry Kim, President and Chief Executive Officer. "Our loan balance increased 2.1% to $2.17 billion, deposit balance remained steady and our asset quality continued to be strong with non-performing assets and classified assets to total assets ratios of 0.15% and 0.26%, respectively."

Mr. Kim added, "We announced a new stock repurchase program and repurchased 67,202 shares. The Company continued to maintain a strong capital position with the Bank's tier 1 capital to average assets ratio of 13.44% and the Company's tangible common equity to total assets ratio of 10.62%. These robust ratios provide us with extensive confidence to maneuver through these uncharted times and enable us to prudently manage our capital to maximize shareholder value."

Mr. Kim concluded, "This past September, we celebrated our 20^th anniversary of PCB Bank. We will continue to build a strong franchise by focusing on maintaining a strong balance sheet and asset quality, disciplined expense management, repurchasing our shares whenever feasible, and maintainable cash dividend."

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(1)	Provision (reversal) for credit losses and ACL for reporting periods beginning with January 1, 2023 are presented under ASC 326, while prior period comparisons continue to be presented under legacy ASC 450 and ASC 310 in this release.
(2)	Provision (reversal) for credit losses on off-balance sheet credit exposures of $(10) thousand and $28 thousand, respectively, for the year-ago quarter and previous year-to-date period were recorded in Other Expense on Consolidated Statements of Income (Unaudited).

Financial Highlights (Unaudited)
($ in thousands, except per share data)	Three Months Ended													Nine Months Ended
($ in thousands, except per share data)	9/30/2023			6/30/2023			% Change		9/30/2022			% Change		9/30/2023			9/30/2022			% Change
Net income	$	7,023		$	7,477		(6.1	)%	$	6,953		1.0	%	$	24,797		$	26,285		(5.7	)%
Diluted earnings per common share	$	0.49		$	0.52		(5.8	)%	$	0.46		6.5	%	$	1.71		$	1.73		(1.2	)%

Net interest income	$	22,449		$	21,717		3.4	%	$	24,023		(6.6	)%	$	66,580		$	65,367		1.9	%
Provision (reversal) for credit losses ⁽¹⁾		751			197		281.2	%		3,753		(80.0	)%		(1,830	)		2,453		NM
Noninterest income		2,502			2,657		(5.8	)%		3,176		(21.2	)%		8,180			12,110		(32.5	)%
Noninterest expense		14,207			13,627		4.3	%		13,695		3.7	%		41,588			38,011		9.4	%

Return on average assets ⁽²⁾		1.09	%		1.19	%				1.19	%				1.32	%		1.58	%
Return on average shareholders' equity ⁽²⁾		8.12	%		8.82	%				8.16	%				9.77	%		11.84	%
Return on average tangible common equity ("TCE") ^(2),(3)		10.17	%		11.08	%				10.25	%				12.27	%		13.31	%
Net interest margin ⁽²⁾		3.57	%		3.55	%				4.25	%				3.63	%		4.05	%
Efficiency ratio ⁽⁴⁾		56.94	%		55.91	%				50.35	%				55.63	%

PCB Bancorp Reports Earnings of $7.0 million for Q3 2023