EX-99.1 2 pcbpr20261028earnings.htm EX-99.1 Document

Exhibit 99.1
pcbbancorp.jpg
PCB Bancorp Reports Record Earnings for Q3 2026
Los Angeles, California, - October 29, 2026 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income available to common shareholders of $12.1 million, or $0.85 per diluted common share, for the third quarter of 2026, compared with $10.4 million, or $0.73 per diluted common share, for the previous quarter and $11.3 million, or $0.78 per diluted common share, for the year-ago quarter.
Q3 2026 Highlights
•Net income available to common shareholders totaled $12.1 million, or $0.85 per diluted common share, for the current quarter;
•Provision (reversal) for credit losses was $(705) thousand for the current quarter compared with $926 thousand for the previous quarter and $(381) thousand for the year-ago quarter;
•Allowance for Credit Losses (“ACL”) on loans to loans held-for-investment ratio was 1.20% at September 30, 2026 compared with 1.18% at June 30, 2026, and 1.20% at September 30, 2025;
•Net interest income was $28.8 million for the current quarter compared with $27.5 million for the previous quarter and $27.0 million for the year-ago quarter. Net interest margin was 3.35% for the current quarter compared with 3.33% for the previous quarter and 3.28% for the year-ago quarter;
•Gain on sale of loans was $1.6 million for the current quarter compared with $1.2 million for the previous quarter and $1.6 million for the year-ago quarter;
•Total assets were $3.54 billion at September 30, 2026, an increase of $67.5 million, or 1.9%, from $3.47 billion at June 30, 2026, an increase of $255.9 million, or 7.8%, from $3.28 billion at December 31, 2025, and an increase of $174.2 million, or 5.2%, from $3.36 billion at September 30, 2025;
•Loans held-for-investment were $2.84 billion at September 30, 2026, a decrease of $87.2 million, or 3.0%, from $2.93 billion at June 30, 2026, but an increase of $24.5 million, or 0.9%, from $2.82 billion at December 31, 2025 and an increase of $92.3 million, or 3.4%, from $2.75 billion at September 30, 2025; and
•Total deposits were $3.08 billion at September 30, 2026, an increase of $153.9 million, or 5.3%, from $2.92 billion at June 30, 2026, an increase of $281.2 million, or 10.1%, from $2.80 billion at December 31, 2025, and an increase of $163.1 million, or 5.6%, from $2.91 billion at September 30, 2025.
Henry Kim, President and CEO, commented, “We delivered another quarter of strong financial performance despite a competitive operating environment and continued interest rate volatility. Our results reflect disciplined execution across the organization, highlighted by record earnings, solid core deposit growth, and an improvement in net interest margin.
During the quarter, we remained focused on prudent balance sheet management and long-term risk-adjusted returns. As part of that strategy, we selectively reduced certain large commercial lending relationships that no longer met our risk and return objectives. While these actions contributed to lower loan balances, they strengthened our liquidity position and reinforced the overall quality of our balance sheet.
Our strong retail deposit growth, solid capital position, and disciplined credit culture continue to provide a foundation for sustainable growth. As we look ahead to the remainder of 2026 and into 2027, we believe we are well positioned to deploy our excess liquidity, capitalize on attractive growth opportunities, and continue delivering long-term value for our shareholders.”
1

Financial Highlights (Unaudited)
($ in thousands, except per share data)
Three Months Ended
Nine Months Ended
9/30/20266/30/2026% Change9/30/2025% Change9/30/20269/30/2025% Change
Net income$12,208 $10,507 16.2 %$11,412 7.0 %$33,368 $28,218 18.3 %
Net income available to common shareholders$12,122 $10,420 16.3 %$11,326 7.0 %$33,109 $28,005 18.2 %
Diluted earnings per common share (“EPS”)$0.85 $0.73 16.4 %$0.78 9.0 %$2.32 $1.94 19.6 %
Net interest income$28,819 $27,494 4.8 %$26,978 6.8 %$83,123 $77,251 7.6 %
Provision (reversal) for credit losses(705)926 NM(381)85.0 %688 3,004 (77.1)%
Noninterest income3,573 3,203 11.6 %3,414 4.7 %10,150 9,291 9.2 %
Noninterest expense16,052 15,113 6.2 %14,869 8.0 %45,979 44,172 4.1 %
Return on average assets (“ROAA”) (1)
1.38 %1.24 %1.35 %1.31 %1.17 %
Return on average shareholders’ equity (“ROAE”) (1)
12.03 %10.55 %11.92 %11.18 %10.10 %
Return on average tangible common equity (“ROATCE”) (1),(2)
14.42 %12.65 %14.46 %13.42 %12.30 %
Net interest margin (1)
3.35 %3.33 %3.28 %3.35 %3.29 %
Efficiency ratio (3)
49.56 %49.23 %48.92 %49.30 %51.04 %
($ in thousands, except per share data)9/30/20266/30/2026% Change12/31/2025% Change9/30/2025% Change
Total assets
$3,537,672 $3,470,124 1.9 %$3,281,771 7.8 %$3,363,506 5.2 %
Net loans held-for-investment
2,810,769 2,897,281 (3.0)%2,787,019 0.9 %2,719,554 3.4 %
Total deposits
3,076,593 2,922,659 5.3 %2,795,412 10.1 %2,913,502 5.6 %
Book value per common share (4)
$28.61 $28.40 $27.41 $26.93 
TCE per common share (2)
$23.69 $23.49 $22.55 $22.09 
Tier 1 leverage ratio (consolidated)
11.77 %11.89 %11.89 %11.57 %
Total shareholders’ equity to total assets11.37 %11.54 %11.88 %11.43 %
TCE to total assets (2), (5)
9.41 %9.55 %9.78 %9.38 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a 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 had no intangible asset component for the presented periods.

2

Results 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
Nine Months Ended
($ in thousands)9/30/20266/30/2026
% Change
9/30/2025% Change9/30/20269/30/2025% Change
Interest income/expense on
Loans
$47,154 $45,886 2.8 %$46,193 2.1 %$137,524 $134,697 2.1 %
Investment securities
2,073 1,795 15.5 %1,474 40.6 %5,442 4,344 25.3 %
Other interest-earning assets
3,255 2,359 38.0 %3,804 (14.4)%8,387 8,630 (2.8)%
Total interest-earning assets
52,482 50,040 4.9 %51,471 2.0 %151,353 147,671 2.5 %
Interest-bearing deposits
23,242 21,795 6.6 %23,995 (3.1)%66,515 69,064 (3.7)%
Borrowings
421 751 (43.9)%498 (15.5)%1,715 1,356 26.5 %
Total interest-bearing liabilities
23,663 22,546 5.0 %24,493 (3.4)%68,230 70,420 (3.1)%
Net interest income
$28,819 $27,494 4.8 %$26,978 6.8 %$83,123 $77,251 7.6 %
Average balance of
Loans
$2,902,481 $2,885,996 0.6 %$2,784,148 4.3 %$2,876,614 $2,738,957 5.0 %
Investment securities
195,312 178,716 9.3 %152,084 28.4 %178,402 149,914 19.0 %
Other interest-earning assets
311,417 249,717 24.7 %327,637 (5.0)%266,040 246,396 8.0 %
Total interest-earning assets
$3,409,210 $3,314,429 2.9 %$3,263,869 4.5 %$3,321,056 $3,135,267 5.9 %
Interest-bearing deposits
$2,445,630 $2,326,163 5.1 %$2,326,170 5.1 %$2,350,909 $2,218,542 6.0 %
Borrowings
42,000 76,374 (45.0)%43,109 (2.6)%58,073 39,586 46.7 %
Total interest-bearing liabilities
$2,487,630 $2,402,537 3.5 %$2,369,279 5.0 %$2,408,982 $2,258,128 6.7 %
Total funding (1)
$3,041,978 $2,946,585 3.2 %$2,910,522 4.5 %$2,953,418 $2,788,686 5.9 %
Annualized average yield/cost of
Loans
6.45 %6.38 %6.58 %6.39 %6.58 %
Investment securities
4.21 %4.03 %3.85 %4.08 %3.87 %
Other interest-earning assets
4.15 %3.79 %4.61 %4.21 %4.68 %
Total interest-earning assets6.11 %6.06 %6.26 %6.09 %6.30 %
Interest-bearing deposits
3.77 %3.76 %4.09 %3.78 %4.16 %
Borrowings
3.98 %3.94 %4.58 %3.95 %4.58 %
Total interest-bearing liabilities3.77 %3.76 %4.10 %3.79 %4.17 %
Net interest margin3.35 %3.33 %3.28 %3.35 %3.29 %
Cost of total funding (1)
3.09 %3.07 %3.34 %3.09 %3.38 %
Supplementary information
Net accretion of discount on loans$759 $584 30.0 %$563 34.8 %$1,860 $2,045 (9.0)%
Net amortization of deferred loan fees$579 $357 62.2 %$433 33.7 %$1,289 $1,113 15.8 %
(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.
The increase in net interest margin for the current quarter compared with the previous quarter was primarily due to an increase in average yield on interest earning assets, partially offset by an increase in average cost of interest-bearing deposits. The increases for the current quarter and year-to-date period compared with the same periods of 2025 were primarily due to a decrease in average cost of interest-bearing deposits, partially offset by a decrease in average yield on interest earning assets.


3

Loans. The increase in average yield for the current quarter compared with the previous quarter was primarily due to increases in weighted-average interest rates on loans, net accretion of discount on loans and net amortization of deferred loan fees. The decrease for the current quarter compared with the year-ago quarter was primarily due to a decrease in weighted-average interest rates on loans, partially offset by increases in net accretion of discount on loans and net amortization of deferred loan fees. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to decreases in weighted-average interest rates on loans and net accretion of discount on loans, partially offset by an increase in net amortization of deferred loan fees.
The following table presents a composition of total loans by interest rate type accompanied by the weighted-average contractual rates as of the dates indicated:
9/30/20266/30/202612/31/20259/30/2025
% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate
Fixed rate loans
18.9 %5.82 %18.0 %5.76 %17.5 %5.60 %18.2 %5.60 %
Hybrid rate loans
39.3 %5.84 %39.9 %5.67 %39.7 %5.57 %39.5 %5.51 %
Variable rate loans
41.8 %7.00 %42.1 %6.82 %42.8 %6.93 %42.3 %7.38 %
Investment Securities. The increases in average yield for the current quarter and year-to-date period were primarily due to higher yields on newly purchased investment securities.
Other Interest-Earning Assets. The increase in average yield for the current quarter compared with the previous quarter was primarily due to a special dividend on Federal Home Loan Bank (“FHLB”) stock of $253 thousand. The decreases for the current quarter and year-to-date period compared with the same periods of 2025 were primarily due to a decrease in average interest rate on cash held at the Federal Reserve Bank, partially offset by an increase in dividends received on FHLB stock.
Interest-Bearing Deposits. The decreases in average cost for the current quarter and year-to-date period compared with the same periods of 2025 were primarily due to decreases in market rates.
Provision (reversal) for credit losses
The following table presents a composition of provision for credit losses for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20266/30/2026
% Change
9/30/2025
% Change
9/30/20269/30/2025
% Change
Provision (reversal) for credit losses on loans$(651)$798 NM$(428)52.1 %$765 $2,884 (73.5)%
Provision (reversal) for credit losses on off-balance sheet credit exposure(54)128 NM47 NM(77)120 NM
Total provision (reversal) for credit losses$(705)$926 NM$(381)85.0 %$688 $3,004 (77.1)%
The reversal for credit losses on loans for the current quarter was primarily due to a decrease in loans held-for-investment, partially offset by an increase in nonaccrual loans held-for-investment.
4

Noninterest Income
The following table presents the components of noninterest income for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20266/30/2026
% Change
9/30/2025
% Change
9/30/20269/30/2025
% Change
Gain on sale of loans
$1,626 $1,182 37.6 %$1,617 0.6 %$4,217 $3,969 6.2 %
Service charges and fees on deposits
457 450 1.6 %377 21.2 %1,337 1,124 19.0 %
Loan servicing income
650 802 (19.0)%719 (9.6)%2,253 2,204 2.2 %
Bank-owned life insurance (“BOLI”) income287 281 2.1 %259 10.8 %842 759 10.9 %
Other income
553 488 13.3 %442 25.1 %1,501 1,235 21.5 %
Total noninterest income
$3,573 $3,203 11.6 %$3,414 4.7 %$10,150 $9,291 9.2 %
Gain on Sale of Loans. The following table presents information on gain (loss) on sale of loans for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20266/30/2026% Change9/30/2025% Change9/30/20269/30/2025% Change
Gain on sale of SBA loans
Sold loan balance
$23,044 $17,095 34.8 %$29,017 (20.6)%$61,969 $72,569 (14.6)%
Premium received
1,798 1,430 25.7 %1,852 (2.9)%4,809 4,810 — %
Gain recognized
1,626 1,219 33.4 %1,617 0.6 %4,254 3,969 7.2 %
Percentage to sold loan balance
Premium7.8 %8.4 %6.4 %7.8 %6.6 %
Gain7.1 %7.1 %5.6 %6.9 %5.5 %
Loss on sale of other loans
Sold loan balance$— $1,071 (100.0)%$— — %$1,071 $— NA
Loss recognized— (37)(100.0)%— — %(37)— NA
The other loan sold during the previous quarter of $1.1 million was a commercial property loan, which was transferred to loans held-for-sale from loans held-for-investment during the first quarter of 2026.
Loan Servicing Income. The Company services SBA loans and certain residential property loans sold to the secondary market. The following table presents information on loan servicing income for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20266/30/2026
% Change
9/30/2025
% Change
9/30/20269/30/2025
% Change
Loan servicing income
Servicing income received
$1,215 $1,243 (2.3)%$1,247 (2.6)%$3,676 $3,771 (2.5)%
Servicing assets amortization
(565)(441)28.1 %(528)7.0 %(1,423)(1,567)(9.2)%
Loan servicing income$650 $802 (19.0)%$719 (9.6)%$2,253 $2,204 2.2 %
Underlying loans at end of period
$497,197 $503,429 (1.2)%$518,309 (4.1)%$497,197 $518,309 (4.1)%

5

Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20266/30/2026% Change9/30/2025% Change9/30/20269/30/2025% Change
Salaries and employee benefits
$10,026 $9,551 5.0 %$9,293 7.9 %$29,297 $27,212 7.7 %
Occupancy and equipment
2,283 2,369 (3.6)%2,372 (3.8)%6,929 7,040 (1.6)%
Professional fees
834 645 29.3 %541 54.2 %2,013 1,974 2.0 %
Marketing and business promotion
636 446 42.6 %669 (4.9)%1,538 1,509 1.9 %
Data processing
359 342 5.0 %333 7.8 %1,038 983 5.6 %
Director fees and expenses
224 223 0.4 %223 0.4 %670 674 (0.6)%
Regulatory assessments
386 368 4.9 %373 3.5 %1,115 1,075 3.7 %
Other expense1,304 1,169 11.5 %1,065 22.4 %3,379 3,705 (8.8)%
Total noninterest expense
$16,052 $15,113 6.2 %$14,869 8.0 %$45,979 $44,172 4.1 %
Salaries and Employee Benefits. The increase for the current quarter compared with the previous quarter was primarily due to increases in wages, incentives tied to sales of SBA loans, vacation accrual and group insurance. The increases for the current quarter and year-to-date period compared with the same periods of 2025 were primarily due to increases in wages, incentives tied to sales of SBA loans, vacation accrual and group insurance, partially offset by an increase in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense. The number of full-time equivalent employees was 276, 274 and 270 as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively.
Professional Fees. The increases for the current quarter compared with the previous and year-ago quarters were due to increases in legal fees and internal audit fees. The increase for the current year-to-date period compared with the previous year-to-date period was primarily due to the increases in legal fees and internal audit during the current year-to-date period, partially offset by additional professional fees incurred related to evaluating the accounting for a preferred stock purchase option during the previous year-to-date period.
Marketing and Business Promotion. The increase for the current quarter compared with the previous quarter was primarily due to an increase in advertising.
Other Expense. The increases for the current quarter compared with the previous and year-ago quarter were primarily due to an increase in legal settlements related expenses, partially offset by a decrease in office operating expense. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to impairments on operating lease assets of $238 thousand for sublease contracts and a decrease in office operating expense, partially offset by an increase in legal settlement related expenses.
6

Balance Sheet (Unaudited)
Total assets were $3.54 billion at September 30, 2026, an increase of $67.5 million, or 1.9%, from $3.47 billion at June 30, 2026, an increase of $255.9 million, or 7.8%, from $3.28 billion at December 31, 2025, and an increase of $174.2 million, or 5.2%, from $3.36 billion at September 30, 2025. The increase for the current quarter was primarily due to an increase in total cash and cash equivalents, partially offset by a decrease in loans held-for-investment. The increase for the current year was primarily due to increases in total cash and cash equivalents, loans held-for-investment and other assets. During the current year, the Company invested $8.0 million in qualified affordable housing projects.
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:
($ in thousands)9/30/20266/30/2026% Change12/31/2025% Change9/30/2025% Change
Commercial real estate:
Commercial property$1,100,476 $1,120,171 (1.8)%$1,071,396 2.7 %$1,039,965 5.8 %
Business property650,596 697,627 (6.7)%638,063 2.0 %639,596 1.7 %
Multifamily213,592 208,797 2.3 %175,579 21.7 %172,098 24.1 %
Construction11,142 11,121 0.2 %18,561 (40.0)%25,911 (57.0)%
Total commercial real estate1,975,806 2,037,716 (3.0)%1,903,599 3.8 %1,877,570 5.2 %
Commercial and industrial449,325 494,944 (9.2)%508,662 (11.7)%465,424 (3.5)%
Consumer:
Residential mortgage414,487 393,414 5.4 %401,337 3.3 %401,653 3.2 %
Other consumer5,238 5,945 (11.9)%6,802 (23.0)%7,867 (33.4)%
Total consumer419,725 399,359 5.1 %408,139 2.8 %409,520 2.5 %
Loans held-for-investment2,844,856 2,932,019 (3.0)%2,820,400 0.9 %2,752,514 3.4 %
Loans held-for-sale2,318 2,937 (21.1)%12,077 (80.8)%9,634 (75.9)%
Total loans$2,847,174 $2,934,956 (3.0)%$2,832,477 0.5 %$2,762,148 3.1 %
SBA loans included in:
Loans held-for-investment$148,641 $145,457 2.2 %$146,549 1.4 %$151,766 (2.1)%
Loans held-for-sale$2,318 $2,937 (21.1)%$12,077 (80.8)%$9,634 (75.9)%
ACL on loans$34,087 $34,738 (1.9)%$33,381 2.1 %$32,960 3.4 %
ACL on loans to loans held-for-investment1.20 %1.18 %1.18 %1.20 %
The decrease in loans held-for-investment for the current quarter was primarily due to pay-downs and pay-offs of term loans of $175.2 million, net decrease of lines of credit of $37.6 million, and charge-offs of $35 thousand, partially offset by new funding of term loans of $125.6 million. The increase for the current year-to-date period was primarily due to new funding of term loans of $416.5 million, partially offset by pay-downs and pay-offs of term loans of $329.6 million, net decrease of lines of credit of $61.2 million, a loan transferred to loans held-for-sale of $1.1 million, and charge-offs of $130 thousand.
The decrease in loans held-for-sale for the current quarter was primarily due to sales of $23.0 million and pay-downs of $52 thousand, partially offset by new funding of $22.5 million. The decrease for the current year-to-date period was primarily due to sales of $63.0 million and pay-downs of $310 thousand, partially offset by new funding of $52.5 million and a loan transferred from loans held-for-investment of $1.1 million.

The following table presents a composition of off-balance sheet credit exposure as of the dates indicated:
($ in thousands)9/30/20266/30/2026% Change12/31/2025% Change9/30/2025% Change
Commercial property$12,270 $10,069 21.9 %$11,344 8.2 %$13,772 (10.9)%
Business property7,425 8,297 (10.5)%7,569 (1.9)%10,740 (30.9)%
Construction3,011 3,022 (0.4)%5,229 (42.4)%7,688 (60.8)%
Commercial and industrial374,639 335,523 11.7 %342,593 9.4 %373,560 0.3 %
Other consumer1,535 1,536 (0.1)%1,347 14.0 %1,357 13.1 %
Total commitments to extend credit398,880 358,447 11.3 %368,082 8.4 %407,117 (2.0)%
Letters of credit15,733 7,984 97.1 %7,330 114.6 %7,074 122.4 %
Total off-balance sheet credit exposure$414,613 $366,431 13.1 %$375,412 10.4 %$414,191 0.1 %
7

Credit Quality
The following table presents a summary of non-performing loans and assets, and classified assets as of the dates indicated:
($ in thousands)9/30/20266/30/2026% Change12/31/2025% Change9/30/2025% Change
Nonaccrual loans
Commercial real estate:
Commercial property$4,642 $1,331 248.8 %$1,403 230.9 %$1,448 220.6 %
Business property1,598 1,330 20.2 %938 70.4 %962 66.1 %
Total commercial real estate6,240 2,661 134.5 %2,341 166.6 %2,410 158.9 %
Commercial and industrial652 607 7.4 %161 305.0 %378 72.5 %
Consumer:
Residential mortgage5,355 5,446 (1.7)%5,403 (0.9)%5,370 (0.3)%
Other consumer3 6 (50.0)%5 (40.0)%— NM
Total consumer5,358 5,452 (1.7)%5,408 (0.9)%5,370 (0.2)%
Total nonaccrual loans held-for-investment
12,250 8,720 40.5 %7,910 54.9 %8,158 50.2 %
Loans past due 90 days or more and still accruing
— — — %— — %— — %
Non-performing loans (“NPLs”) 12,250 8,720 40.5 %7,910 54.9 %8,158 50.2 %
NPLs held-for-sale— — — %— — %— — %
Total NPLs12,250 8,720 40.5 %7,910 54.9 %8,158 50.2 %
Other real estate owned (“OREO”)
— — — %— — %— — %
Non-performing assets (“NPAs”)
$12,250 $8,720 40.5 %$7,910 54.9 %$8,158 50.2 %
Loans past due and still accruing
Past due 30 to 59 days
$604 $339 78.2 %$943 (35.9)%$1,548 (61.0)%
Past due 60 to 89 days
48 55 (12.7)%12 300.0 %— NM
Past due 90 days or more
— — — %— — %— — %
Total loans past due and still accruing
$652 $394 65.5 %955 (31.7)%$1,548 (57.9)%
Special mention loans$6,368 $6,412 (0.7)%$6,435 (1.0)%$6,477 (1.7)%
Classified assets
Classified loans held-for-investment$13,633 $10,525 29.5 %$9,159 48.8 %$10,172 34.0 %
Classified loans held-for-sale— — — %— — %— — %
OREO
— — — %— — %— — %
Classified assets
$13,633 $10,525 29.5 %$9,159 48.8 %$10,172 34.0 %
NPLs to loans held-for-investment0.43 %0.30 %0.28 %0.30 %
NPAs to total assets
0.35 %0.25 %0.24 %0.24 %
Classified assets to total assets
0.39 %0.30 %0.28 %0.30 %
Allowance for Credit Losses
The following table presents activity in ACL for the periods indicated:
Three Months Ended
Nine Months Ended
($ in thousands)9/30/20266/30/2026% Change9/30/2025% Change9/30/20269/30/2025% Change
ACL on loans
Balance at beginning of period$34,738 $33,943 2.3 %$33,554 3.5 %$33,381 $30,628 9.0 %
Charge-offs(35)(19)84.2 %(454)(92.3)%(130)(927)(86.0)%
Recoveries35 16 118.8 %288 (87.8)%71 375 (81.1)%
Provision (reversal) for credit losses on loans(651)798 NM(428)52.1 %765 2,884 (73.5)%
Balance at end of period$34,087 $34,738 (1.9)%$32,960 3.4 %$34,087 $32,960 3.4 %
ACL on off-balance sheet credit exposure
Balance at beginning of period$1,520 $1,392 9.2 %$1,263 20.3 %$1,543 $1,190 29.7 %
Provision (reversal) for credit losses on off-balance sheet credit exposure(54)128 NM47 NM(77)120 NM
Balance at end of period$1,466 $1,520 (3.6)%$1,310 11.9 %$1,466 $1,310 11.9 %
8

Investment Securities
Total investment securities were $190.2 million at September 30, 2026, an increase of $5.9 million, or 3.2%, from $184.3 million at June 30, 2026, an increase of $30.2 million, or 18.9%, from $160.0 million at December 31, 2025, and an increase of $39.9 million, or 26.6%, from $150.3 million at September 30, 2025. The increase for the current quarter was primarily due to purchases of $25.9 million, partially offset by principal pay-downs of $11.7 million, a fair value decrease of $8.3 million and net premium amortization of $42 thousand. The increase for the current year-to-date period was primarily due to purchases of $66.9 million, partially offset by principal pay-downs of $26.5 million, a fair value decrease of $10.0 million and net premium amortization of $114 thousand.
Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
9/30/20266/30/202612/31/20259/30/2025
($ in thousands)Amount% to TotalAmount% to TotalAmount% to TotalAmount% to Total
Noninterest-bearing demand deposits$579,783 18.8 %$569,367 19.5 %$555,645 19.9 %$551,312 18.9 %
Interest-bearing deposits:
Savings, NOW and money market accounts
Retail816,128 26.4 %706,940 24.1 %676,074 24.1 %669,373 22.9 %
Wholesale - brokered1 0.1 %1 0.1 %1 0.1 %1 0.1 %
Time deposits of $250,000 or less
Retail587,744 19.2 %578,814 19.8 %574,519 20.6 %580,300 19.9 %
Wholesale - brokered245,829 7.9 %245,829 8.4 %280,540 10.1 %381,000 13.0 %
Time deposits of more than $250,000
Retail727,108 23.7 %701,708 24.0 %648,633 23.1 %671,516 23.1 %
Wholesale - state120,000 3.9 %120,000 4.1 %60,000 2.1 %60,000 2.1 %
Total interest-bearing deposits2,496,810 81.2 %2,353,292 80.5 %2,239,767 80.1 %2,362,190 81.1 %
Total deposits$3,076,593 100.0 %$2,922,659 100.0 %$2,795,412 100.0 %$2,913,502 100.0 %
Total retail deposits$2,710,763 88.1 %$2,556,829 87.4 %$2,454,871 87.7 %$2,472,501 84.8 %
Total wholesale deposits$365,830 11.9 %$365,830 12.6 %$340,541 12.3 %$441,001 15.2 %
Estimated total deposits not covered by deposit insurance$1,527,426 49.6 %$1,363,432 46.7 %$1,270,159 45.4 %$1,275,127 43.8 %
The increase in retail time deposits for the current quarter was primarily due to new accounts of $115.6 million, renewals of matured accounts of $303.8 million and balance increases of $17.8 million, partially offset by matured and closed accounts of $402.9 million. The increase for the current year-to-date period was primarily due to new accounts of $325.0 million, renewals of the matured accounts of $997.8 million and balance increases of $45.3 million, partially offset by matured and closed accounts of $1.28 billion.

9

Liquidity
The following table presents a summary of the Company’s liquidity position as of the dates indicated:
($ in thousands)9/30/202612/31/2025% Change
Cash and cash equivalents
$413,199 $207,142 99.5 %
Cash and cash equivalents to total assets
11.7 %6.3 %
Available borrowing capacity
FHLB advances
$867,226 $840,607 3.2 %
Federal Reserve Discount Window
941,227 841,563 11.8 %
Overnight federal funds lines
65,000 65,000 — %
Total
$1,873,453 $1,747,170 7.2 %
Total available borrowing capacity to total assets
53.0 %53.2 %
Shareholders’ Equity
Shareholders’ equity was $402.1 million at September 30, 2026, an increase of $1.7 million, or 0.4%, from $400.5 million at June 30, 2026, an increase of $12.1 million, or 3.1%, from $390.0 million at December 31, 2025, and an increase of $17.6 million, or 4.6%, from $384.5 million at September 30, 2025.
The increase for the current quarter was primarily due to net income and proceeds from stock option exercises of $341 thousand, partially offset by repurchases of common stock of $2.0 million, cash dividends declared on common stock of $3.1 million and preferred stock dividends of $86 thousand, and an increase in accumulated other comprehensive loss of $5.9 million. The increase for the current year-to-date period was primarily due to net income and proceeds from stock option exercises of $654 thousand, partially offset by cash dividends declared on common stock of $9.3 million, repurchases of common stock of $5.8 million and preferred stock dividends of $259 thousand, and an increase in accumulated other comprehensive loss of $7.2 million.
Stock Repurchases
During the current year-to-date period, the Company repurchased and retired 219,526 shares of common stock at a weighted-average price of $26.51, totaling $5.8 million under the stock repurchase program that was first announced in 2023 and extended in 2024 and 2025. This stock repurchase program had been completed as of July 23, 2026. On September 28, 2026, the Company’s Board of Directors approved a new stock repurchase program authorizing the repurchase of up to 700,000 shares of common stock through September 22, 2027. As of September 30, 2026, the Company is authorized to purchase 700,000 shares under this new stock repurchase program.
In 2025, the Company repurchased and retired 358,251 shares of common stock at a weighted-average price of $19.82, totaling $7.1 million.
Series C Preferred Stock
The Company paid dividends of $86 thousand and $259 thousand for the current quarter and year-to-date period, respectively.
Capital Ratios
The following table presents capital ratios for the Company and the Bank as of the dates indicated:
9/30/20266/30/202612/31/20259/30/2025Well Capitalized Minimum Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)
11.98 %11.41 %11.46 %11.52 %6.50 %
Total capital (to risk-weighted assets)
15.63 %14.98 %15.13 %15.24 %10.00 %
Tier 1 capital (to risk-weighted assets)
14.39 %13.75 %13.89 %14.00 %8.00 %
Tier 1 capital (to average assets)
11.77 %11.89 %11.89 %11.57 %5.00 %
PCB Bank
Common tier 1 capital (to risk-weighted assets)
13.96 %13.35 %13.49 %13.61 %6.50 %
Total capital (to risk-weighted assets)
15.20 %14.58 %14.72 %14.85 %10.00 %
Tier 1 capital (to risk-weighted assets)
13.96 %13.35 %13.49 %13.61 %8.00 %
Tier 1 capital (to average assets)
11.42 %11.54 %11.55 %11.25 %5.00 %
10

About PCB Bancorp
PCB Bancorp is the bank holding company for PCB Bank, a California state chartered bank, offering a full suite of commercial banking services to small to medium-sized businesses, individuals and professionals, primarily in Southern California, and predominantly in Korean-American and other minority communities.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phrases of similar meaning. We caution that forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control, including but not limited to the health of the national and local economies including the impact on the Company and its customers resulting from any adverse developments in real estate markets, inflation levels and interest rates; the impacts of the conflicts in the Middle East on the national and global economies and markets; the impact of governmental monetary policy; any material weaknesses in the Company’s internal control over financial reporting that we have identified or may identify; the impacts of sanctions, tariffs and other trade policies of the United States and its global trading partners and tensions related to the same; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance; the impact of adverse developments at other banks, including bank failures; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; the ability of the Company to manage liquidity; changes in the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; the Company's ability to attract and retain skilled employees; customers' service expectations; cyber-security risks; the Company's ability to successfully deploy new technology; acquisitions and branch and loan production office expansions; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; litigation costs and outcomes; changes in laws, rules, regulations, or interpretations to which the Company is subject; the effects of severe weather events, pandemics, wildfires and other disasters, other public health crises, acts of war or terrorism, and other external events on our business. These and other important factors are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and other filings the Company makes with the SEC, which are available without charge at the SEC’s website (http://www.sec.gov) and on the investor relations section of the Company’s website at www.mypcbbank.com. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.
Contact:
Timothy Chang
Senior Executive Vice President & Chief Financial Officer
213-210-2000

11

PCB Bancorp and Subsidiary
Consolidated Balance Sheets (Unaudited)
($ in thousands, except share and per share data)
9/30/20266/30/2026% Change12/31/2025% Change9/30/2025% Change
Assets
Cash and due from banks
$24,120 $30,896 (21.9)%$25,319 (4.7)%$24,366 (1.0)%
Interest-bearing deposits in other financial institutions389,079 234,301 66.1 %181,823 114.0 %345,132 12.7 %
Total cash and cash equivalents
413,199 265,197 55.8 %207,142 99.5 %369,498 11.8 %
Securities available-for-sale, at fair value
190,185 184,318 3.2 %160,009 18.9 %150,279 26.6 %
Loans held-for-sale
2,318 2,937 (21.1)%12,077 (80.8)%9,634 (75.9)%
Loans held-for-investment2,844,856 2,932,019 (3.0)%2,820,400 0.9 %2,752,514 3.4 %
Allowance for credit losses on loans(34,087)(34,738)(1.9)%(33,381)2.1 %(32,960)3.4 %
Net loans held-for-investment
2,810,769 2,897,281 (3.0)%2,787,019 0.9 %2,719,554 3.4 %
Premises and equipment, net
7,021 7,296 (3.8)%8,194 (14.3)%8,604 (18.4)%
Federal Home Loan Bank and other bank stock
15,170 15,170 — %14,978 1.3 %14,978 1.3 %
Bank-owned life insurance33,638 33,351 0.9 %32,796 2.6 %32,525 3.4 %
Deferred tax assets, net
10,140 9,977 1.6 %9,210 10.1 %7,164 41.5 %
Servicing assets
5,644 5,655 (0.2)%5,627 0.3 %5,883 (4.1)%
Operating lease assets
15,941 15,844 0.6 %17,158 (7.1)%17,136 (7.0)%
Accrued interest receivable
10,951 10,574 3.6 %10,669 2.6 %10,829 1.1 %
Other assets
22,696 22,524 0.8 %16,892 34.4 %17,422 30.3 %
Total assets
$3,537,672 $3,470,124 1.9 %$3,281,771 7.8 %$3,363,506 5.2 %
Liabilities
Deposits
Noninterest-bearing demand
$579,783 $569,367 1.8 %$555,645 4.3 %$551,312 5.2 %
Savings, NOW and money market accounts
816,129 706,941 15.4 %676,075 20.7 %669,374 21.9 %
Time deposits of $250,000 or less
833,573 824,643 1.1 %855,059 (2.5)%961,299 (13.3)%
Time deposits of more than $250,000
847,108 821,708 3.1 %708,633 19.5 %731,517 15.8 %
Total deposits
3,076,593 2,922,659 5.3 %2,795,412 10.1 %2,913,502 5.6 %
Other short-term borrowings— 10,000 (100.0)%— — %— — %
Federal Home Loan Bank advances
— 80,000 (100.0)%34,000 (100.0)%— — %
Operating lease liabilities
17,820 17,701 0.7 %18,996 (6.2)%18,961 (6.0)%
Accrued interest payable and other liabilities
41,129 39,301 4.7 %43,337 (5.1)%46,542 (11.6)%
Total liabilities
3,135,542 3,069,661 2.1 %2,891,745 8.4 %2,979,005 5.3 %
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock69,141 69,141 — %69,141 — %69,141 — %
Common stock134,767 136,237 (1.1)%139,256 (3.2)%140,580 (4.1)%
Retained earnings
210,245 201,214 4.5 %186,485 12.7 %180,189 16.7 %
Accumulated other comprehensive loss, net(12,023)(6,129)96.2 %(4,856)147.6 %(5,409)122.3 %
Total shareholders’ equity
402,130 400,463 0.4 %390,026 3.1 %384,501 4.6 %
Total liabilities and shareholders’ equity
$3,537,672 $3,470,124 1.9 %$3,281,771 7.8 %$3,363,506 5.2 %
Outstanding common shares
14,056,981 14,102,189 14,230,428 14,277,164 
Book value per common share (1)
$28.61 $28.40 $27.41 $26.93 
TCE per common share (2)
$23.69 $23.49 $22.55 $22.09 
Total loan to total deposit ratio
92.54 %100.42 %101.33 %94.81 %
Noninterest-bearing deposits to total deposits
18.84 %19.48 %19.88 %18.92 %
(1)The ratios are calculated by dividing total shareholders’ equity by the number of outstanding common shares. The Company had no intangible equity components for the presented periods.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
12

PCB Bancorp and Subsidiary
Consolidated Statements of Income (Unaudited)
($ in thousands, except share and per share data)
Three Months Ended
Nine Months Ended
9/30/20266/30/2026% Change9/30/2025% Change9/30/20269/30/2025% Change
Interest and dividend income
Loans, including fees$47,154 $45,886 2.8 %$46,193 2.1 %$137,524 $134,697 2.1 %
Investment securities2,073 1,795 15.5 %1,474 40.6 %5,442 4,344 25.3 %
Other interest-earning assets3,255 2,359 38.0 %3,804 (14.4)%8,387 8,630 (2.8)%
Total interest income52,482 50,040 4.9 %51,471 2.0 %151,353 147,671 2.5 %
Interest expense
Deposits23,242 21,795 6.6 %23,995 (3.1)%66,515 69,064 (3.7)%
Other borrowings421 751 (43.9)%498 (15.5)%1,715 1,356 26.5 %
Total interest expense
23,663 22,546 5.0 %24,493 (3.4)%68,230 70,420 (3.1)%
Net interest income
28,819 27,494 4.8 %26,978 6.8 %83,123 77,251 7.6 %
Provision (reversal) for credit losses(705)926 NM(381)85.0 %688 3,004 (77.1)%
Net interest income after provision (reversal) for credit losses29,524 26,568 11.1 %27,359 7.9 %82,435 74,247 11.0 %
Noninterest income
Gain on sale of loans
1,626 1,182 37.6 %1,617 0.6 %4,217 3,969 6.2 %
Service charges and fees on deposits
457 450 1.6 %377 21.2 %1,337 1,124 19.0 %
Loan servicing income
650 802 (19.0)%719 (9.6)%2,253 2,204 2.2 %
BOLI income287 281 2.1 %259 10.8 %842 759 10.9 %
Other income
553 488 13.3 %442 25.1 %1,501 1,235 21.5 %
Total noninterest income
3,573 3,203 11.6 %3,414 4.7 %10,150 9,291 9.2 %
Noninterest expense
Salaries and employee benefits
10,026 9,551 5.0 %9,293 7.9 %29,297 27,212 7.7 %
Occupancy and equipment
2,283 2,369 (3.6)%2,372 (3.8)%6,929 7,040 (1.6)%
Professional fees
834 645 29.3 %541 54.2 %2,013 1,974 2.0 %
Marketing and business promotion636 446 42.6 %669 (4.9)%1,538 1,509 1.9 %
Data processing
359 342 5.0 %333 7.8 %1,038 983 5.6 %
Director fees and expenses
224 223 0.4 %223 0.4 %670 674 (0.6)%
Regulatory assessments
386 368 4.9 %373 3.5 %1,115 1,075 3.7 %
Other expense1,304 1,169 11.5 %1,065 22.4 %3,379 3,705 (8.8)%
Total noninterest expense
16,052 15,113 6.2 %14,869 8.0 %45,979 44,172 4.1 %
Income before income taxes
17,045 14,658 16.3 %15,904 7.2 %46,606 39,366 18.4 %
Income tax expense
4,837 4,151 16.5 %4,492 7.7 %13,238 11,148 18.7 %
Net income
12,208 10,507 16.2 %11,412 7.0 %33,368 28,218 18.3 %
Preferred stock dividends86 87 (1.1)%86 — %259 213 21.6 %
Net income available to common shareholders$12,122 $10,420 16.3 %$11,326 7.0 %$33,109 $28,005 18.2 %
Earnings per common share
Basic
$0.86 $0.73 $0.79 $2.34 $1.95 
Diluted
$0.85 $0.73 $0.78 $2.32 $1.94 
Average common shares
Basic
13,972,293 14,107,290 14,201,054 14,073,270 14,228,524 
Diluted
14,095,095 14,220,414 14,325,956 14,193,697 14,354,284 
Dividend paid per common share
$0.22 $0.22 $0.20 $0.66 $0.60 
ROAA (1)
1.38%1.24%1.35 %1.31 %1.17 %
ROAE (1)
12.03%10.55%11.92 %11.18 %10.10 %
ROATCE (1), (2)
14.42%12.65%14.46 %13.42 %12.30 %
Efficiency ratio (3)
49.56%49.23%48.92 %49.30 %51.04 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.
(3)The ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
13

PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
Three Months Ended
9/30/20266/30/20269/30/2025
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$2,902,481 $47,154 6.45%$2,885,996 $45,886 6.38 %$2,784,148 $46,193 6.58 %
Mortgage-backed securities
164,122 1,754 4.24%150,065 1,534 4.10 %120,226 1,167 3.85 %
Collateralized mortgage obligation
17,019 158 3.68%17,713 163 3.69 %19,957 197 3.92 %
SBA loan pool securities
3,356 25 2.96%3,695 29 3.15 %4,686 41 3.47 %
Municipal bonds (2)
2,446 22 3.57%2,459 22 3.59 %2,411 22 3.62 %
Corporate bonds8,369 114 5.40%4,784 47 3.94 %4,804 47 3.88 %
Other interest-earning assets
311,417 3,255 4.15%249,717 2,359 3.79 %327,637 3,804 4.61 %
Total interest-earning assets
3,409,210 52,482 6.11%3,314,429 50,040 6.06 %3,263,869 51,471 6.26 %
Noninterest-earning assets
Cash and due from banks24,291 23,224 23,539 
ACL on loans(34,732)(33,951)(33,548)
Other assets
104,124 99,850 100,728 
Total noninterest-earning assets
93,683 89,123 90,719 
Total assets
$3,502,893 $3,403,552 $3,354,588 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$774,135 6,865 3.52%$683,731 5,872 3.44 %$612,527 5,698 3.69 %
Savings
4,904 3 0.24%4,995 3 0.24 %5,519 3 0.22 %
Time deposits
1,666,591 16,374 3.90%1,637,437 15,920 3.90 %1,708,124 18,294 4.25 %
Total interest-bearing deposits
2,445,630 23,242 3.77%2,326,163 21,795 3.76 %2,326,170 23,995 4.09 %
Other borrowings42,000 421 3.98%76,374 751 3.94 %43,109 498 4.58 %
Total interest-bearing liabilities
2,487,630 23,663 3.77%2,402,537 22,546 3.76 %2,369,279 24,493 4.10 %
Noninterest-bearing liabilities
Noninterest-bearing demand
554,348 544,048 541,243 
Other liabilities
58,254 57,499 64,232 
Total noninterest-bearing liabilities
612,602 601,547 605,475 
Total liabilities
3,100,232 3,004,084 2,974,754 
Total shareholders’ equity
402,661 399,468 379,834 
Total liabilities and shareholders’ equity
$3,502,893 $3,403,552 $3,354,588 
Net interest income
$28,819 $27,494 $26,978 
Net interest spread (3)
2.34%2.30 %2.16 %
Net interest margin (4)
3.35%3.33 %3.28 %
Total deposits
$2,999,978 $23,242 3.07%$2,870,211 $21,795 3.05 %$2,867,413 $23,995 3.32 %
Total funding (5)
$3,041,978 $23,663 3.09%$2,946,585 $22,546 3.07 %$2,910,522 $24,493 3.34 %
(1)Total loans include both loans held-for-sale and loans held-for-investment.
(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)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.
(6)Annualized.

14

PCB Bancorp and Subsidiary
Average Balance, Average Yield, and Average Rate (Unaudited)
($ in thousands)
Nine Months Ended
9/30/20269/30/2025
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Average BalanceInterest Income/ Expense
Avg. Yield/Rate(6)
Assets
Interest-earning assets
Total loans (1)
$2,876,614 $137,524 6.39%$2,738,957 $134,697 6.58 %
Mortgage-backed securities
148,525 4,593 4.13%117,040 3,387 3.87 %
Collateralized mortgage obligation
17,720 490 3.70%20,530 610 3.97 %
SBA loan pool securities
3,701 85 3.07%5,322 141 3.54 %
Municipal bonds (2)
2,469 66 3.57%2,405 65 3.61 %
Corporate bonds5,987 208 4.64%4,617 141 4.08 %
Other interest-earning assets
266,040 8,387 4.21%246,396 8,630 4.68 %
Total interest-earning assets
3,321,056 151,353 6.09%3,135,267 147,671 6.30 %
Noninterest-earning assets
Cash and due from banks23,676 23,817 
ACL on loans(34,014)(32,063)
Other assets
100,853 100,101 
Total noninterest-earning assets
90,515 91,855 
Total assets
$3,411,571 $3,227,122 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$712,343 18,480 3.47%$543,570 14,767 3.63 %
Savings
5,085 9 0.24%5,488 10 0.24 %
Time deposits
1,633,481 48,026 3.93%1,669,484 54,287 4.35 %
Total interest-bearing deposits
2,350,909 66,515 3.78%2,218,542 69,064 4.16 %
Other borrowings58,073 1,715 3.95%39,586 1,356 4.58 %
Total interest-bearing liabilities
2,408,982 68,230 3.79%2,258,128 70,420 4.17 %
Noninterest-bearing liabilities
Noninterest-bearing demand
544,436 530,558 
Other liabilities
59,222 64,997 
Total noninterest-bearing liabilities
603,658 595,555 
Total liabilities
3,012,640 2,853,683 
Total shareholders’ equity
398,931 373,439 
Total liabilities and shareholders’ equity
$3,411,571 $3,227,122 
Net interest income
$83,123 $77,251 
Net interest spread (3)
2.30%2.13 %
Net interest margin (4)
3.35%3.29 %
Total deposits
$2,895,345 $66,515 3.07%$2,749,100 $69,064 3.36 %
Total funding (5)
$2,953,418 $68,230 3.09%$2,788,686 $70,420 3.38 %
(1)Total loans include both loans held-for-sale and loans held-for-investment.
(2)The yield on municipal bonds has not been computed on a tax-equivalent basis.
(3)Net interest spread is calculated by subtracting average rate on interest-bearing liabilities from average yield on interest-earning assets.
(4)Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
(5)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.
(6)Annualized.

15

PCB Bancorp and Subsidiary
Non-GAAP Financial Measures
Return on average tangible common equity, tangible common equity per common share and tangible common equity to total assets ratios
The Company's TCE is calculated by subtracting preferred stock from shareholders’ equity. The Company had no intangible assets for the presented periods. ROATCE, TCE per common share, and TCE to total assets constitute supplemental financial information determined by methods other than in accordance with Generally Accepted Accounting Principles, or GAAP. These non-GAAP financial measures are used by management in its analysis of the Company's performance. These non-GAAP financial measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP financial measures with financial measures defined by GAAP.
($ in thousands)
Three Months Ended
Nine Months Ended
9/30/20266/30/20269/30/20259/30/20269/30/2025
Average total shareholders' equity(a)$402,661 $399,468 $379,834 $398,931 $373,439 
Less: average preferred stock(b)69,141 69,141 69,141 69,141 69,141 
Average TCE(c)=(a)-(b)333,520 330,327 310,693 329,790 304,298 
Net income(d)$12,208 $10,507 $11,412 $33,368 $28,218 
ROAE (1)
(d)/(a)12.03 %10.55 %11.92 %11.18 %10.10 %
Net income available to common shareholders(e)12,122 10,420 11,326 33,109 28,005 
ROATCE (1)
(e)/(c)14.42 %12.65 %14.46 %13.42 %12.30 %
(1) Annualized.
($ in thousands, except per share data)9/30/20266/30/202612/31/20259/30/2025
Total shareholders' equity(a)$402,130 $400,463 $390,026 $384,501 
Less: preferred stock(b)69,141 69,141 69,141 69,141 
TCE(c)=(a)-(b)332,989 331,322 320,885 315,360 
Outstanding common shares
(d)14,056,981 14,102,189 14,230,428 14,277,164 
Book value per common share(a)/(d)$28.61 $28.40 $27.41 $26.93 
TCE per common share(c)/(d)23.69 23.49 22.55 22.09 
Total assets(e)$3,537,672 $3,470,124 $3,281,771 $3,363,506 
Total shareholders' equity to total assets(a)/(e)11.37 %11.54 %11.88 %11.43 %
TCE to total assets(c)/(e)9.41 %9.55 %9.78 %9.38 %
16