PCB Bancorp Reports Record Earnings of $9.8 Million for Q2 2021

PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of Pacific City Bank (the “Bank”), today reported net income of $9.8 million, or $0.64 per diluted common share for the second quarter of 2021, compared with $8.6 million, or $0.55 per diluted common share, for the previous quarter and $3.4 million, or $0.22 per diluted common share, for the year-ago quarter.

Q2 2021 Highlights

  • Net income totaled $9.8 million or $0.64 per diluted common share;
    • The Company recorded a provision (reversal) for loan losses of $(934) thousand for the current quarter compared with $(1.1) million for the previous quarter and $3.9 million for the year-ago quarter.
    • Allowance for loan losses to total loans held-for-investment ratio was 1.45% at June 30, 2021 compared with 1.51% at March 31, 2021 and 1.30% at June 30, 2020. Excluding U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, allowance for loan losses to total loans held-for-investment ratio was 1.62% and 1.74% at June 30, 2021 and March 31, 2021, respectively.
    • Net interest income was $19.0 million for the current quarter compared with $17.8 million for the previous quarter and $15.4 million for the year-ago quarter. Net interest margin was 3.83% for the second quarter of 2021 compared with 3.70% for the previous quarter and 3.22% for the year-ago quarter.
    • Gain on sale of loans was $4.0 million for the current quarter compared with $1.3 million for the previous quarter and $1.5 million for the year-ago quarter.
  • Total assets were $2.06 billion at June 30, 2021, an increase of $9.3 million, or 0.5%, from $2.05 billion at March 31, 2021 and an increase of $39.2 million, or 1.9%, from $2.02 billion at June 30, 2020;
  • Loans held-for-investment, net of deferred costs (fees), were $1.72 billion at June 30, 2021, an increase of $33.7 million, or 2.0%, from $1.69 billion at March 31, 2021 and an increase of $166.1 million, or 10.7%, from $1.55 billion at June 30, 2020;
    • SBA PPP loans totaled $181.0 million and $218.7 million at June 30, 2021 and March 31, 2021, respectively.
    • Loans under modified terms related to COVID-19 totaled $16.2 million and $19.8 million at June 30, 2021 and March 31, 2021, respectively.
  • Total deposits were $1.80 billion at June 30, 2021, an increase of $43.9 million from $1.75 billion at March 31, 2021 and an increase of $150.7 million, or 9.2%, from $1.65 billion at June 30, 2020;
  • Announced a repurchase program on April 8, 2021 for the repurchase up to 5% of outstanding common stock, which represented 775,000 shares, through September 7, 2021. As of June 30, 2021, the Company repurchased and retired 646,334 shares of common stock; and
  • Declared an increased cash dividend of $0.12 per share on July 22, 2021. This represents the 26th consecutive quarterly dividend paid by PCB Bancorp.

Henry Kim, President and Chief Executive Officer, commented, "We are pleased to announce another record quarter with net income of $9.8 million for the second quarter of 2021, an increase from $8.6 million in the first quarter of 2021. On a year-to-date basis, net income totaled $18.4 million for the first six months of 2021, up from $6.9 million in the first six months of 2020, a 165% increase. We continue to experience positive credit trends and improving economic conditions that resulted in additional release of loan loss reserves in the quarter. Our total loan portfolio excluding SBA PPP loans increased to $1.55 billion at June 30, 2021, an increase of $79.1 million, compared to March 31, 2021 and an increase of $125.9 million compared to June 30, 2020. During the second quarter of 2021, we prudently took advantage of our market opportunities to deploy excess liquidity into organic loans.”

Mr. Kim continued, "Net interest margin improved by thirteen basis points in the second quarter of 2021 as compared to the first quarter of 2021 primarily due to an expansion in loan interest income and a twelve basis point decline on average cost on total interest bearing liabilities. Although there are persistent uncertainties related to the evolving pandemic, our loan pipeline continues to be solid coupled with ample liquidity to expand our net interest income, and we remain positive in our outlook in delivering strong financial performance for the remainder of the year.

Financial Highlights (Unaudited)

($ in thousands, except per share data)

 

Three Months Ended

 

Six Months Ended

 

6/30/2021

 

3/31/2021

 

% Change

 

6/30/2020

 

% Change

 

6/30/2021

 

6/30/2020

 

% Change

Net income

 

$

9,844

 

 

$

8,560

 

 

15.0

%

 

$

3,367

 

 

192.4

%

 

$

18,404

 

 

$

6,939

 

 

165.2

%

Diluted earnings per common share

 

$

0.64

 

 

$

0.55

 

 

16.4

%

 

$

0.22

 

 

190.9

%

 

$

1.19

 

 

$

0.45

 

 

164.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

18,996

 

 

$

17,819

 

 

6.6

%

 

$

15,363

 

 

23.6

%

 

$

36,815

 

 

$

31,929

 

 

15.3

%

Provision (reversal) for loan losses

 

(934

)

 

(1,147

)

 

(18.6

)%

 

3,855

 

 

(124.2

)%

 

(2,081

)

 

6,751

 

 

(130.8

)%

Noninterest income

 

5,151

 

 

2,857

 

 

80.3

%

 

2,918

 

 

76.5

%

 

8,008

 

 

4,944

 

 

62.0

%

Noninterest expense

 

11,139

 

 

9,669

 

 

15.2

%

 

9,696

 

 

14.9

%

 

20,808

 

 

20,263

 

 

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

1.96

%

 

1.75

%

 

 

 

0.69

%

 

 

 

1.85

%

 

0.75

%

 

 

Return on average shareholders’ equity (1), (2)

 

16.49

%

 

14.66

%

 

 

 

5.98

%

 

 

 

15.59

%

 

6.17

%

 

 

Net interest margin (1)

 

3.83

%

 

3.70

%

 

 

 

3.22

%

 

 

 

3.77

%

 

3.52

%

 

 

Efficiency ratio (3)

 

46.13

%

 

46.76

%

 

 

 

53.04

%

 

 

 

46.42

%

 

54.95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands, except per share data)

 

6/30/2021

 

3/31/2021

 

% Change

 

12/31/2020

 

% Change

 

6/30/2020

 

% Change

Total assets

 

$

2,060,003

 

 

$

2,050,672

 

 

0.5

%

 

$

1,922,853

 

 

7.1

%

 

$

2,020,777

 

 

1.9

%

Net loans held-for-investment

 

1,694,767

 

 

1,660,402

 

 

2.1

%

 

1,557,068

 

 

8.8

%

 

1,533,341

 

 

10.5

%

Total deposits

 

1,797,648

 

 

1,753,771

 

 

2.5

%

 

1,594,851

 

 

12.7

%

 

1,646,930

 

 

9.2

%

Book value per common share (2), (4)

 

$

16.09

 

 

$

15.53

 

 

3.6

%

 

$

15.19

 

 

5.9

%

 

$

14.78

 

 

8.9

%

Tier 1 leverage ratio (consolidated)

 

11.76

%

 

12.03

%

 

 

 

11.94

%

 

 

 

11.49

%

 

 

Total shareholders’ equity to total assets (2)

 

11.60

%

 

11.72

%

 

 

 

12.16

%

 

 

 

11.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

The ratios are calculated by dividing total shareholdersequity 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 recent global economic and market conditions, including significant disruption of, and volatility in, financial markets; global supply chain disruptions; and the institution of social distancing and shelter-in-place requirements that have resulted in temporary closures of many businesses, lost revenues, and increased unemployment throughout the U.S., but also specifically in California, where most of the Company’s operations and a large majority of its customers are located. While California’s and New York’s shelter-at-home limits were largely lifted in June 2021, the local economies in the Company’s primary markets have not yet fully recovered.

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 its customers, 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. SBA PPP loans totaled $181.0 million (1,746 loans) and loans under modified terms related to the COVID-19 pandemic totaled $16.2 million (6 loan customers) as of June 30, 2021. The Company recognized $65.6 million in forgiveness for 1,061 SBA PPP loans as of June 30, 2021. On January 13, 2021, SBA began accepting applications for second draw PPP loans and the Company had funded $107.3 million (1,160 loans), net of origination fees and costs, as of June 30, 2021.

In addition, the Company has been monitoring its liquidity and capital closely. As of June 30, 2021, the Company maintained $174.6 million, or 8.5% of total assets, of cash and cash equivalents and $601.9 million, or 29.2% of total assets, of available borrowing capacity. All regulatory capital ratios were also well above the regulatory well capitalized requirements as of June 30, 2021.

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

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

 

Six Months Ended

($ in thousands)

 

6/30/2021

 

3/31/2021

 

% Change

 

6/30/2020

 

% Change

 

6/30/2021

 

6/30/2020

 

% Change

Interest income/expense on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

19,511

 

 

$

18,744

 

 

4.1

%

 

$

18,273

 

 

6.8

%

 

$

38,255

 

 

$

38,679

 

 

(1.1

)%

Investment securities

 

375

 

 

360

 

 

4.2

%

 

539

 

 

(30.4

)%

 

735

 

 

1,183

 

 

(37.9

)%

Other interest-earning assets

 

165

 

 

154

 

 

7.1

%

 

161

 

 

2.5

%

 

319

 

 

771

 

 

(58.6

)%

Total interest-earning assets

 

20,051

 

 

19,258

 

 

4.1

%

 

18,973

 

 

5.7

%

 

39,309

 

 

40,633

 

 

(3.3

)%

Interest-bearing deposits

 

1,000

 

 

1,311

 

 

(23.7

)%

 

3,409

 

 

(70.7

)%

 

2,311

 

 

8,401

 

 

(72.5

)%

Borrowings

 

55

 

 

128

 

 

(57.0

)%

 

201

 

 

(72.6

)%

 

183

 

 

303

 

 

(39.6

)%

Total interest-bearing liabilities

 

1,055

 

 

1,439

 

 

(26.7

)%

 

3,610

 

 

(70.8

)%

 

2,494

 

 

8,704

 

 

(71.3

)%

Net interest income

 

$

18,996

 

 

$

17,819

 

 

6.6

%

 

$

15,363

 

 

23.6

%

 

$

36,815

 

 

$

31,929

 

 

15.3

%

Average balance of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

1,691,704

 

 

$

1,641,634

 

 

3.1

%

 

$

1,554,011

 

 

8.9

%

 

$

1,666,808

 

 

$

1,504,369

 

 

10.8

%

Investment securities

 

132,249

 

 

123,851

 

 

6.8

%

 

120,336

 

 

9.9

%

 

128,073

 

 

119,419

 

 

7.2

%

Other interest-earning assets

 

164,710

 

 

189,153

 

 

(12.9

)%

 

245,447

 

 

(32.9

)%

 

176,864

 

 

202,120

 

 

(12.5

)%

Total interest-earning assets

 

$

1,988,663

 

 

$

1,954,638

 

 

1.7

%

 

$

1,919,794

 

 

3.6

%

 

$

1,971,745

 

 

$

1,825,908

 

 

8.0

%

Interest-bearing deposits

 

$

1,026,937

 

 

$

1,053,845

 

 

(2.6

)%

 

$

1,109,307

 

 

(7.4

)%

 

$

1,040,316

 

 

$

1,119,503

 

 

(7.1

)%

Borrowings

 

19,012

 

 

75,556

 

 

(74.8

)%

 

130,330

 

 

(85.4

)%

 

47,128

 

 

77,723

 

 

(39.4

)%

Total interest-bearing liabilities

 

$

1,045,949

 

 

$

1,129,401

 

 

(7.4

)%

 

$

1,239,637

 

 

(15.6

)%

 

$

1,087,444

 

 

$

1,197,226

 

 

(9.2

)%

Total funding (1)

 

$

1,766,054

 

 

$

1,736,477

 

 

1.7

%

 

$

1,713,812

 

 

3.0

%

 

$

1,751,346

 

 

$

1,619,073

 

 

8.2

%

Annualized average yield/cost of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

4.63

%

 

4.63

%

 

 

 

4.73

%

 

 

 

4.63

%

 

5.17

%

 

 

Investment securities

 

1.14

%

 

1.18

%

 

 

 

1.80

%

 

 

 

1.16

%

 

1.99

%

 

 

Other interest-earning assets

 

0.40

%

 

0.33

%

 

 

 

0.26

%

 

 

 

0.36

%

 

0.77

%

 

 

Total interest-earning assets

 

4.04

%

 

4.00

%

 

 

 

3.97

%

 

 

 

4.02

%

 

4.48

%

 

 

Interest-bearing deposits

 

0.39

%

 

0.50

%

 

 

 

1.24

%

 

 

 

0.45

%

 

1.51

%

 

 

Borrowings

 

1.16

%

 

0.69

%

 

 

 

0.62

%

 

 

 

0.78

%

 

0.78

%

 

 

Total interest-bearing liabilities

 

0.40

%

 

0.52

%

 

 

 

1.17

%

 

 

 

0.46

%

 

1.46

%

 

 

Net interest margin

 

3.83

%

 

3.70

%

 

 

 

3.22

%

 

 

 

3.77

%

 

3.52

%

 

 

Cost of total funding (1)

 

0.24

%

 

0.34

%

 

 

 

0.85

%

 

 

 

0.29

%

 

1.08

%

 

 

Supplementary information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net accretion of discount on loans

 

$

1,012

 

 

$

745

 

 

35.8

%

 

$

530

 

 

90.9

%

 

$

1,757

 

 

$

1,558

 

 

12.8

%

Net amortization of deferred loan fees (costs)

 

$

1,459

 

 

$

1,220

 

 

19.6

%

 

$

649

 

 

124.8

%

 

$

2,679

 

 

$

770

 

 

247.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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. Average yields for the current and previous quarters were maintained at 4.63% as increases in net accretion of discount on loans from an increase in loan payoffs and net amortization of deferred loan fees were mostly offset by an increase in SBA PPP loans and lower interest rates on newly originated loans. Excluding SBA PPP loans, weighted-average interest rates on total loans and new loans funded during the current quarter were 4.31% and 3.77%, respectively, at June 30, 2021. The decreases in average yield for the current quarter and year-to-date period compared with the same periods of 2020 were primarily due to an increase in SBA PPP loans and 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:

 

 

6/30/2021

 

3/31/2021

 

12/31/2020

 

6/30/2020

 

 

% to Total Loans

 

Weighted-Average Contractual Rate

 

% to Total Loans

 

Weighted-Average Contractual Rate

 

% to Total Loans

 

Weighted-Average Contractual Rate

 

% to Total Loans

 

Weighted-Average Contractual Rate

Fixed rate loans

 

33.9

%

 

3.56

%

 

36.3

%

 

3.44

%

 

31.7

%

 

3.86

%

 

38.4

%

 

4.18

%

Hybrid rate loans

 

22.5

%

 

4.52

%

 

19.3

%

 

4.77

%

 

20.8

%

 

4.82

%

 

13.3

%

 

4.99

%

Variable rate loans

 

43.6

%

 

3.99

%

 

44.4

%

 

4.04

%

 

47.5

%

 

4.06

%

 

48.3

%

 

4.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities. The decreases in average yield for the current quarter and year-to-date period were primarily due to new investment securities purchased at lower market rates. During the current quarter and past 12-month period, the Company purchased investment securities of $19.3 million and $54.5 million, respectively.

Other Interest-Earning Assets. The increases in average yield for the current quarter compared with the previous and year-ago quarters were primarily due to an increase in dividend income on Federal Reserve Bank stock. The decrease in average yield for the current year-to-date period compared with the previous year-to-date period was primarily due to lower market rates. The decreases in average balance for the current quarter and year-to-date period were primarily due to an increase in loans, 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-to-date period were primarily due to the decreases in market rates.

Borrowings. The increases in average cost for the current quarter compared with the previous and year-ago quarters were primarily due to matured borrowings with lower interest rates during the current quarter. Matured FHLB advances totaled $30.0 million and $40.0 million, respectively, with a weighted-average rate of 0.32% and 0.47%, respectively, for the current quarter and year-to-date period. At June 30, 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 $(934) thousand for the current quarter compared with $(1.1) million for the previous quarter and $3.9 million for the year-ago quarter. For the current and previous year-to-date periods, provision (reversal) for loan losses was $(2.1) million and $6.8 million, respectively. The reversals for the current and previous quarters were primarily due to a decrease in historical loss and qualitative adjustment factor allocations as a result of improving economic conditions. The Company recorded net charge-offs (recoveries) of $(309) thousand for the current quarter compared with $(151) thousand for the previous quarter and $281 thousand for the year-ago quarter. For the current and previous year-to-date periods, net charge-offs (recoveries) were $(460) thousand and $883 thousand, respectively.

The following table presents allowance for loan losses to total loans held-for-investment ratio for the dates indicated:

($ in thousands)

 

6/30/2021

 

3/31/2021

 

12/31/2020

 

6/30/2020

Total loans held-for-investment

 

$

1,719,656

 

 

$

1,685,916

 

 

$

1,583,578

 

 

$

1,553,589

 

Less: SBA PPP loans

 

181,019

 

 

218,709

 

 

135,654

 

 

133,675

 

Total loans held-for-investment, excluding SBA PPP loans

 

$

1,538,637

 

 

$

1,467,207

 

 

$

1,447,924

 

 

$

1,419,914

 

Allowance for loan losses

 

$

24,889

 

 

$

25,514

 

 

$

26,510

 

 

$

20,248

 

Allowance for loan losses to total loans held-for-investment

 

1.45

%

 

1.51

%

 

1.67

%

 

1.30

%

Allowance for loan losses to total loans held-for-investment, excluding SBA PPP loans

 

1.62

%

 

1.74

%

 

1.83

%

 

1.43

%

 

 

 

 

 

 

 

 

 

Noninterest Income

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

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2021

 

3/31/2021

 

% Change

 

6/30/2020

 

% Change

 

6/30/2021

 

6/30/2020

 

% Change

Gain on sale of loans

 

$

3,967

 

 

$

1,322

 

 

200.1

%

 

$

1,498

 

 

164.8

%

 

$

5,289

 

 

$

2,223

 

 

137.9

%

Service charges and fees on deposits

 

302

 

 

293

 

 

3.1

%

 

275

 

 

9.8

%

 

595

 

 

665

 

 

(10.5

)%

Loan servicing income

 

545

 

 

882

 

 

(38.2

)%

 

902

 

 

(39.6

)%

 

1,427

 

 

1,456

 

 

(2.0

)%

Other income

 

337

 

 

360

 

 

(6.4

)%

 

243

 

 

38.7

%

 

697

 

 

600

 

 

16.2

%

Total noninterest income

 

$

5,151

 

 

$

2,857

 

 

80.3

%

 

$

2,918

 

 

76.5

%

 

$

8,008

 

 

$

4,944

 

 

62.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2021

 

3/31/2021

 

% Change

 

6/30/2020

 

% Change

 

6/30/2021

 

6/30/2020

 

% Change

Gain on sale of SBA loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sold loan balance

 

$

34,107

 

 

$

10,919

 

 

212.4

%

 

$

27,066

 

 

26.0

%

 

$

45,026

 

 

$

38,781

 

 

16.1

%

Premium received

 

4,172

 

 

1,309

 

 

218.7

%

 

2,042

 

 

104.3

%

 

5,481

 

 

3,098

 

 

76.9

%

Gain recognized

 

3,954

 

 

1,195

 

 

230.9

%

 

1,448

 

 

173.1

%

 

5,149

 

 

2,152

 

 

139.3

%

Gain on sale of residential property loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sold loan balance

 

$

1,615

 

 

$

7,907

 

 

(79.6

)%

 

$

6,118

 

 

(73.6

)%

 

$

9,522

 

 

$

8,197

 

 

16.2

%

Gain recognized

 

13

 

 

127

 

 

(89.8

)%

 

50

 

 

(74.0

)%

 

140

 

 

71

 

 

97.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The increases in gain on sale of SBA loans for the current quarter and year-to-date period were primarily due to increased origination and sales of SBA loans and higher premiums from the secondary market. The Company sold certain commercial property loans of $1.7 million at par during the current quarter.

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

 

 

Three Months Ended

 

Six Months Ended

($ in thousands)

 

6/30/2021

 

3/31/2021

 

% Change

 

6/30/2020

 

% Change

 

6/30/2021

 

6/30/2020

 

% Change

Loan servicing income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income received

 

$

1,124

 

 

 

$

1,273

 

 

 

(11.7

)%

 

$

1,294

 

 

 

(13.1

)%

 

$

2,397

 

 

 

$

2,452

 

 

 

(2.2

)%

Servicing assets amortization

 

(579

)

 

 

(391

)

 

 

48.1

%

 

(392

)

 

 

47.7

%

 

(970

)

 

 

(996

)

 

 

(2.6

)%

Loan servicing income

 

$

545

 

 

 

$

882

 

 

 

(38.2

)%

 

$

902

 

 

 

(39.6

)%

 

$

1,427

 

 

 

$

1,456

 

 

 

(2.0

)%

Underlying loans at end of period

 

$

492,130

 

 

 

$

492,981

 

 

 

(0.2

)%

 

$

494,000

 

 

 

(0.4

)%

 

$

492,130

 

 

 

$

494,000

 

 

 

(0.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company services SBA loans and certain residential property loans that are sold to the secondary market. The decreases for the current quarter and year-to-date period were primarily due to a decrease in servicing income received and 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

 

Six Months Ended

($ in thousands)

 

6/30/2021

 

3/31/2021

 

% Change

 

6/30/2020

 

% Change

 

6/30/2021

 

6/30/2020

 

% Change

Salaries and employee benefits

 

$

7,125

 

 

$

6,182

 

 

15.3

%

 

$

5,761

 

 

23.7

%

 

$

13,307

 

 

$

12,312

 

 

8.1

%

Occupancy and equipment

 

1,388

 

 

1,371

 

 

1.2

%

 

1,400

 

 

(0.9

)%

 

2,759

 

 

2,780

 

 

(0.8

)%

Professional fees

 

658

 

 

494

 

 

33.2

%

 

509

 

 

29.3

%

 

1,152

 

 

1,306

 

 

(11.8

)%

Marketing and business promotion

 

516

 

 

138

 

 

273.9

%

 

548

 

 

(5.8

)%

 

654

 

 

727

 

 

(10.0

)%

Data processing

 

396

 

 

377

 

 

5.0

%

 

366

 

 

8.2

%

 

773

 

 

724

 

 

6.8

%

Director fees and expenses

 

151

 

 

138

 

 

9.4

%

 

107

 

 

41.1

%

 

289

 

 

328

 

 

(11.9

)%

Regulatory assessments

 

179

 

 

208

 

 

(13.9

)%

 

242

 

 

(26.0

)%

 

387

 

 

461

 

 

(16.1

)%

Other expenses

 

726

 

 

761

 

 

(4.6

)%

 

763

 

 

(4.8

)%

 

1,487

 

 

1,625

 

 

(8.5

)%

Total noninterest expense

 

$

11,139

 

 

$

9,669

 

 

15.2

%

 

$

9,696

 

 

14.9

%

 

$

20,808

 

 

$

20,263

 

 

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits. The increase for the current quarter compared with the previous quarter was primarily due to a decrease in direct loan origination costs, which offsets the recognition of salaries and benefits expense, and an increase in other employee benefits, partially offset by a decrease in vacation accrual. The increases for the current quarter and year-to-date period compared with the same periods of 2020 were primarily due to a decrease in direct loan origination costs and an increase in bonus accrual, partially offset by decreases in vacation accrual and other employee benefits. Direct loan origination costs related to SBA PPP loan production totaled $62 thousand, $750 thousand, and $1.1 million for the current, previous, and year-ago quarters, respectively, and $812 thousand and $1.1 million for the current and previous year-to-date periods, respectively.

Professional Fees. The increases for the current quarter compared with the previous and year-ago quarter were primarily due to increases in expenses related to internal audit. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to decreases in expenses related to the Bank’s Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”) compliance enhancements. The consent order related to the BSA/AML compliance was terminated on September 30, 2020.

Marketing and business promotion. The increase for the current quarter compared with the previous quarter was primarily due to an increase in advertisement during the current quarter.

Director fees and expense. The increase for the current quarter compared with the year-ago quarter was primarily due to the Board of Directors’ decision to temporarily decrease fees during the year-ago quarter. The decrease for the current year-to-date period compared with the previous year-to-date period was primarily due to a severance payment for a former director in the first quarter of 2020.

Regulatory Assessments. The decreases for the current quarter and year-to-date period were primarily due to a decrease in assessment rate and the exclusion of SBA PPP loans from the assessment base, partially offset by an increase in balance sheet growth.

Balance Sheet (Unaudited)

Total assets were $2.06 billion at June 30, 2021, an increase of $9.3 million, or 0.5%, from $2.05 billion at March 31, 2021 and an increase of $39.2 million, or 1.9%, from $2.02 billion at June 30, 2020. The increases for the current quarter and year-to-date period were primarily due to increases in loans held-for-investment and investment securities, partially offset by a decrease in cash and cash equivalents.

The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment, net of deferred costs (fees)) as of the dates indicated:

($ in thousands)

 

6/30/2021

 

3/31/2021

 

% Change

 

12/31/2020

 

% Change

 

6/30/2020

 

% Change

Real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

$

997,918

 

 

$

922,536

 

 

8.2

%

 

$

880,736

 

 

13.3

%

 

$

813,409

 

 

22.7

%

Residential property

 

196,983

 

 

190,990

 

 

3.1

%

 

198,431

 

 

(0.7

)%

 

223,923

 

 

(12.0

)%

SBA property

 

124,251

 

 

125,989

 

 

(1.4

)%

 

126,570

 

 

(1.8

)%

 

122,675

 

 

1.3

%

Construction

 

13,475

 

 

13,151

 

 

2.5

%

 

15,199

 

 

(11.3

)%

 

20,432

 

 

(34.0

)%

Commercial and industrial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial term

 

74,503

 

 

80,361

 

 

(7.3

)%

 

87,250

 

 

(14.6

)%

 

98,936

 

 

(24.7

)%

Commercial lines of credit

 

90,286

 

 

91,970

 

 

(1.8

)%

 

96,087

 

 

(6.0

)%

 

96,339

 

 

(6.3

)%

SBA commercial term

 

19,614

 

 

21,078

 

 

(6.9

)%

 

21,878

 

 

(10.3

)%

 

22,650

 

 

(13.4

)%

SBA PPP

 

181,019

 

 

218,709

 

 

(17.2

)%

 

135,654

 

 

33.4

%

 

133,675

 

 

35.4

%

Other consumer loans

 

21,607

 

 

21,132

 

 

2.2

%

 

21,773

 

 

(0.8

)%

 

21,550

 

 

0.3

%

Loans held-for-investment

 

1,719,656

 

 

1,685,916

 

 

2.0

%

 

1,583,578

 

 

8.6

%

 

1,553,589

 

 

10.7

%

Loans held-for-sale

 

11,255

 

 

3,569

 

 

215.4

%

 

1,979

 

 

468.7

%

 

4,102

 

 

174.4

%

Total loans

 

$

1,730,911

 

 

$

1,689,485

 

 

2.5

%

 

$

1,585,557

 

 

9.2

%

 

$

1,557,691

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The increase in loans held-for-investment for the current quarter was primarily due to new funding of $171.1 million and advances on lines of credit of $28.6 million, partially offset by pay-downs and pay-offs of $164.1 million. The increase in loans held-for-investment for the current year-to-date period was primarily due to new funding of $361.5 million and advances on lines of credit of $56.4 million, partially offset by pay-downs and pay-offs of $279.9 million. SBA PPP loan and commercial property loan production contributed significantly to the Company’s loan growth for the current year-to-date period.

The increase in loans held-for-sale for the current quarter was primarily due to new funding of $43.2 million, partially offset by sales of $37.4 million. The increase in loans held-for-sale for the current year-to-date period was primarily due to new funding of $63.6 million, partially offset by sales of $56.3 million.

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

($ in thousands)

 

6/30/2021

 

3/31/2021

 

% Change

 

12/31/2020

 

% Change

 

6/30/2020

 

% Change

Real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

$

15,277

 

 

$

20,003

 

 

(23.6

)%

 

$

21,016

 

 

(27.3

)%

 

$

16,962

 

 

(9.9

)%

SBA property

 

6,191

 

 

3,677

 

 

68.4

%

 

540

 

 

1,046.5

%

 

220

 

 

2,714.1

%

Construction

 

6,233

 

 

13,588

 

 

(54.1

)%

 

13,986

 

 

(55.4

)%

 

16,451

 

 

(62.1

)%

Commercial and industrial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial term

 

2,950

 

 

1,000

 

 

195.0

%

 

1,000

 

 

195.0

%

 

1,000

 

 

195.0

%

Commercial lines of credit

 

164,648

 

 

168,381

 

 

(2.2

)%

 

156,870

 

 

5.0

%

 

159,753

 

 

3.1

%

SBA commercial term

 

 

 

 

 

%

 

 

 

%

 

 

 

%

Other consumer loans

 

118

 

 

96

 

 

22.9

%

 

84

 

 

40.5

%

 

45

 

 

162.2

%

Total commitments to extend credit

 

$

195,417

 

 

$

206,745

 

 

(5.5

)%

 

$

193,496

 

 

1.0

%

 

$

194,431

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality

The following table presents a summary of non-performing loans, non-performing assets and classified assets as of the dates indicated:

($ in thousands)

 

6/30/2021

 

3/31/2021

 

% Change

 

12/31/2020

 

% Change

 

6/30/2020

 

% Change

Nonaccrual loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

$

 

 

$

 

 

%

 

$

524

 

 

(100.0

)%

 

$

 

 

%

Residential property

 

 

 

 

 

%

 

189

 

 

(100.0

)%

 

 

 

%

SBA property

 

781

 

 

841

 

 

(7.1

)%

 

885

 

 

(11.8

)%

 

1,351

 

 

(42.2

)%

Commercial and industrial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial lines of credit

 

 

 

 

 

%

 

904

 

 

(100.0

)%

 

1,968

 

 

(100.0

)%

SBA commercial term

 

600

 

 

568

 

 

5.6

%

 

595

 

 

0.8

%

 

381

 

 

57.5

%

Other consumer loans

 

65

 

 

52

 

 

25.0

%

 

66

 

 

(1.5

)%

 

70

 

 

(7.1

)%

Total nonaccrual loans held-for-investment

 

1,446

 

 

1,461

 

 

(1.0

)%

 

3,163

 

 

(54.3

)%

 

3,770

 

 

(61.6

)%

Loans past due 90 days or more and still accruing

 

 

 

 

 

%

 

 

 

%

 

696

 

 

(100.0

)%

Non-performing loans (“NPLs”)

 

1,446

 

 

1,461

 

 

(1.0

)%

 

3,163

 

 

(54.3

)%

 

4,466

 

 

(67.6

)%

Other real estate owned (“OREO”)

 

 

 

2,336

 

 

(100.0

)%

 

1,401

 

 

(100.0

)%

 

376

 

 

(100.0

)%

Non-performing assets (“NPAs”)

 

$

1,446

 

 

$

3,797

 

 

(61.9

)%

 

$

4,564

 

 

(68.3

)%

 

$

4,842

 

 

(70.1

)%

Loans past due and still accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due 30 to 59 days

 

$

227

 

 

$

56

 

 

305.4

%

 

$

302

 

 

(24.8

)%

 

$

311

 

 

(27.0

)%

Past due 60 to 89 days

 

 

 

52

 

 

(100.0

)%

 

36

 

 

(100.0

)%

 

113

 

 

(100.0

)%

Past due 90 days or more

 

 

 

 

 

%

 

 

 

%

 

696

 

 

(100.0

)%

Total loans past due and still accruing

 

$

227

 

 

$

108

 

 

110.2

%

 

338

 

 

(32.8

)%

 

$

1,120

 

 

(79.7

)%

Troubled debt restructurings (“TDRs”)

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing TDRs

 

$

605

 

 

$

620

 

 

(2.4

)%

 

$

634

 

 

(4.6

)%

 

$

669

 

 

(9.6

)%

Nonaccrual TDRs

 

30

 

 

33

 

 

(9.1

)%

 

5

 

 

500.0

%

 

40

 

 

(25.0

)%

Total TDRs

 

$

635

 

 

$

653

 

 

(2.8

)%

 

$

639

 

 

(0.6

)%

 

$

709

 

 

(10.4

)%

Special mention loans

 

$

18,238

 

 

$

17,997

 

 

1.3

%

 

$

16,461

 

 

10.8

%

 

$

71

 

 

25,587.3

%

Classified assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans

 

$

9,666

 

 

$

7,090

 

 

36.3

%

 

$

10,130

 

 

(4.6

)%

 

$

5,809

 

 

66.4

%

OREO

 

 

 

2,336

 

 

(100.0

)%

 

1,401

 

 

(100.0

)%

 

376

 

 

(100.0

)%

Classified assets

 

$

9,666

 

 

$

9,426

 

 

2.5

%

 

$

11,531

 

 

(16.2

)%

 

$

6,185

 

 

56.3

%

NPLs to loans held-for-investment

 

0.08

%

 

0.09

%

 

 

 

0.20

%

 

 

 

0.29

%

 

 

NPAs to total assets

 

0.07

%

 

0.19

%

 

 

 

0.24

%

 

 

 

0.24

%

 

 

Classified assets to total assets

 

0.47

%

 

0.46

%

 

 

 

0.60

%

 

 

 

0.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans that are granted modifications related to the COVID-19 pandemic in excess of 6 months, on a cumulative basis, are classified as special mention or classified.

Special mention loans included $14.7 million, $16.4 million and $14.9 million of loans under modified terms related to the COVID-19 pandemic at June 30, 2021, March 31, 2021 and December 31, 2020, respectively. The special mention loans under modified terms related to the COVID-19 pandemic included commercial property loans of $11.8 million and commercial term loans of $2.9 million at June 30, 2021.

Classified loans included $1.2 million, $1.2 million and $1.9 million of loans under modified terms related to the COVID-19 pandemic at June 30, 2021, March 31, 2021 and December 31, 2020, respectively.

Loan Modifications Related to the COVID-19 Pandemic

The Company provided modifications, including interest only payments or payment deferrals, to customers that were adversely affected by the COVID-19 pandemic. The loan modifications met all criteria under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Therefore, the modified loans were not considered TDRs. Total loans under modified terms related to the COVID-19 pandemic were $16.2 million at June 30, 2021, a decrease of $19.9 million, or 55.1%, from $36.1 million at December 31, 2020 and a decrease of $467.8 million, or 96.7%, from $484.0 million at June 30, 2020.

The following table presents a summary of loans under modified terms related to the COVID-19 pandemic by portfolio segment as of June 30, 2021:

 

 

Modification Type

 

 

 

Weighted-Average Contractual Rate

 

Accrued Interest Receivable

($ in thousands)

 

Payment Deferment

 

Interest Only Payment

 

Total

 

 

Real estate loans

 

 

 

 

 

 

 

 

 

 

Commercial property

 

$

 

 

$

11,831

 

 

$

11,831

 

 

3.59

%

 

$

74

 

Residential property

 

328

 

 

 

 

328

 

 

4.75

%

 

8

 

Commercial and industrial loans

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 

 

4,042

 

 

4,042

 

 

3.77

%

 

84

 

Total

 

$

328

 

 

$

15,873

 

 

$

16,201

 

 

3.65

%

 

$

166

 

 

 

 

 

 

 

 

 

 

 

 

Investment Securities

Total investment securities were $135.5 million at June 30, 2021, an increase of $8.4 million, or 6.6%, from $127.1 million at March 31, 2021 and an increase of $7.4 million, or 5.8%, from $128.0 million at June 30, 2020. The increase in investment securities for the current quarter was primarily due to purchases of $19.3 million, partially offset by principal pay-downs and calls of $11.1 million and net premium amortization of $280 thousand. The increase in investment securities for the current year-to-date period was primarily due to purchases of $39.5 million, partially offset by principal pay-downs and calls of $22.8 million and net premium amortization of $590 thousand.

Deposits

The following table presents the Company’s deposit mix as of the dates indicated:

 

 

6/30/2021

 

3/31/2021

 

12/31/2020

 

6/30/2020

($ in thousands)

 

Amount

 

% to Total

 

Amount

 

% to Total

 

Amount

 

% to Total

 

Amount

 

% to Total

Noninterest-bearing demand deposits

 

$

795,741

 

 

44.3

%

 

$

715,719

 

 

40.8

%

 

$

538,009

 

 

33.7

%

 

$

551,415

 

 

33.5

%

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

 

11,671

 

 

0.6

%

 

11,271

 

 

0.6

%

 

10,481

 

 

0.7

%

 

8,258

 

 

0.5

%

NOW

 

21,725

 

 

1.2

%

 

19,380

 

 

1.1

%

 

21,604

 

 

1.4

%

 

21,173

 

 

1.3

%

Retail money market accounts

 

358,575

 

 

19.9

%

 

381,704

 

 

21.7

%

 

351,739

 

 

22.0

%

 

339,444

 

 

20.6

%

Brokered money market accounts

 

4

 

 

0.1

%

 

4

 

 

0.1

%

 

25,002

 

 

1.6

%

 

10

 

 

0.1

%

Retail time deposits of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$250,000 or less

 

271,531

 

 

15.1

%

 

276,232

 

 

15.8

%

 

299,431

 

 

18.7

%

 

347,382

 

 

21.0

%

More than $250,000

 

173,401

 

 

9.6

%

 

166,845

 

 

9.5

%

 

168,683

 

 

10.6

%

 

170,180

 

 

10.3

%

Time deposits from internet rate service providers

 

 

 

%

 

17,616

 

 

1.0

%

 

24,902

 

 

1.6

%

 

37,068

 

 

2.3

%

State and brokered time deposits

 

165,000

 

 

9.2

%

 

165,000

 

 

9.4

%

 

155,000

 

 

9.7

%

 

172,000

 

 

10.4

%

Total interest-bearing deposits

 

1,001,907

 

 

55.7

%

 

1,038,052

 

 

59.2

%

 

1,056,842

 

 

66.3

%

 

1,095,515

 

 

66.5

%

Total deposits

 

$

1,797,648

 

 

100.0

%

 

$

1,753,771

 

 

100.0

%

 

$

1,594,851

 

 

100.0

%

 

$

1,646,930

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The increase in noninterest-bearing demand deposits for the current year-to-date period was primarily due to the overall liquid deposit market. During the current year-to-date period, a total of $93.9 million of SBA PPP loans were funded through the Bank’s noninterest-bearing demand deposits and deposit customers also received $93.6 million of SBA Economic Injury Disaster Loans and SBA Revitalization Funds.

The increase in retail time deposits for the current quarter was primarily due to new accounts of $27.6 million, renewals of the matured accounts of $96.6 million, and balance increases of $4.0 million, partially offset by matured and closed accounts of $126.3 million. The decrease in retail time deposits for the current year-to-date period was primarily due to matured and closed accounts of $321.9 million, partially offset by new accounts of $59.3 million, renewals of the matured accounts of $232.7 million, and balance increases of $6.7 million.

Liquidity

The following table presents a summary of the Company’s liquidity position as of June 30, 2021:

($ in thousands)

 

6/30/2021

Cash and cash equivalents

 

$

174,621

 

Cash and cash equivalents to total assets

 

8.5

%

 

 

 

Available borrowing capacity

 

 

FHLB advances

 

$

502,653

 

Federal Reserve Discount Window

 

34,224

 

Overnight federal funds lines

 

65,000

 

Total

 

$

601,877

 

Total available borrowing capacity to total assets

 

29.2

%

 

 

 

Shareholders’ Equity

Shareholders’ equity was $238.9 million at June 30, 2021, a decrease of $1.3 million, or 0.6%, from $240.3 million at March 31, 2021 and an increase of $11.7 million, or 5.2%, from $227.2 million at June 30, 2020. The decrease for the current quarter was primarily due to repurchases of common stock of $10.3 million and cash dividends declared on common stock of $1.5 million, partially offset by net income and an increase in accumulated other comprehensive income. The increase for the current year-to-date period was primarily due to net income, partially offset by repurchases of common stock of $10.3 million, cash dividends declared on common stock of $3.1 million and a decrease in accumulated other comprehensive income.

On April 8, 2021, the Company’s Board of Directors approved a repurchase program authorizing the repurchase of up to 5% of the Company’s outstanding common stock as of the date of the board meeting, which represented 775,000 shares, through September 7, 2021. As of June 30, 2021, the Company repurchased and retired 646,334 shares of common stock totaling $10.3 million at a weighted-average price of $15.99 per share.

Capital Ratios

Based on changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets in August 2018, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion. The following table presents capital ratios for the Company and the Bank as of dates indicated:

 

 

6/30/2021

 

3/31/2021

 

12/31/2020

 

6/30/2020

 

Well Capitalized Requirements

PCB Bancorp

 

 

 

 

 

 

 

 

 

 

Common tier 1 capital (to risk-weighted assets)

 

15.17

%

 

15.92

%

 

15.97

%

 

15.83

%

 

N/A

 

Total capital (to risk-weighted assets)

 

16.43

%

 

17.17

%

 

17.22

%

 

17.09

%

 

N/A

 

Tier 1 capital (to risk-weighted assets)

 

15.17

%

 

15.92

%

 

15.97

%

 

15.83

%

 

N/A

 

Tier 1 capital (to average assets)

 

11.76

%

 

12.03

%

 

11.94

%

 

11.49

%

 

N/A

 

Pacific City Bank

 

 

 

 

 

 

 

 

 

 

Common tier 1 capital (to risk-weighted assets)

 

14.88

%

 

15.62

%

 

15.70

%

 

15.58

%

 

6.5

%

Total capital (to risk-weighted assets)

 

16.13

%

 

16.88

%

 

16.95

%

 

16.83

%

 

10.0

%

Tier 1 capital (to risk-weighted assets)

 

14.88

%

 

15.62

%

 

15.70

%

 

15.58

%

 

8.0

%

Tier 1 capital (to average assets)

 

11.53

%

 

11.81

%

 

11.74

%

 

11.30

%

 

5.0

%

 

 

 

 

 

 

 

 

 

 

 

About PCB Bancorp

PCB Bancorp, formerly known as Pacific City Financial Corporation, is the bank holding company for Pacific City 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 phases of similar meaning. We caution that the 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 our borrowers’ actual payment performance as loan deferrals related to the COVID-19 pandemic expire, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to the COVID-19 pandemic, including the potential adverse impact of loan modifications and payment deferrals implemented consistent with recent regulatory guidance, and the general economic uncertainty caused by the COVID-19 pandemic, and government and societal responses thereto. These and other important factors are detailed in various securities law filings made periodically by the Company, copies of which are available from the Company without charge. 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 we do not undertake any 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.

PCB Bancorp and Subsidiary

Consolidated Balance Sheets (Unaudited)

($ in thousands, except share and per share data)

 

 

 

6/30/2021

 

3/31/2021

 

% Change

 

12/31/2020

 

% Change

 

6/30/2020

 

% Change

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

18,417

 

 

$

16,764

 

 

9.9

%

 

$

19,605

 

 

(6.1

)%

 

$

18,255

 

 

0.9

%

Interest-bearing deposits in other financial institutions

 

156,204

 

 

195,016

 

 

(19.9

)%

 

174,493

 

 

(10.5

)%

 

289,348

 

 

(46.0

)%

Total cash and cash equivalents

 

174,621

 

 

211,780

 

 

(17.5

)%

 

194,098

 

 

(10.0

)%

 

307,603

 

 

(43.2

)%

Securities available-for-sale, at fair value

 

135,479

 

 

127,114

 

 

6.6

%

 

120,527

 

 

12.4

%

 

128,049

 

 

5.8

%

Loans held-for-sale

 

11,255

 

 

3,569

 

 

215.4

%

 

1,979

 

 

468.7

%

 

4,102

 

 

174.4

%

Loans held-for-investment, net of deferred loan costs (fees)

 

1,719,656

 

 

1,685,916

 

 

2.0

%

 

1,583,578

 

 

8.6

%

 

1,553,589

 

 

10.7

%

Allowance for loan losses

 

(24,889

)

 

(25,514

)

 

(2.4

)%

 

(26,510

)

 

(6.1

)%

 

(20,248

)

 

22.9

%

Net loans held-for-investment

 

1,694,767

 

 

1,660,402

 

 

2.1

%

 

1,557,068

 

 

8.8

%

 

1,533,341

 

 

10.5

%

Premises and equipment, net

 

3,576

 

 

3,774

 

 

(5.2

)%

 

4,048

 

 

(11.7

)%

 

4,542

 

 

(21.3

)%

Federal Home Loan Bank and other bank stock

 

8,577

 

 

8,447

 

 

1.5

%

 

8,447

 

 

1.5

%

 

8,447

 

 

1.5

%

Other real estate owned, net

 

 

 

2,336

 

 

(100.0

)%

 

1,401

 

 

(100.0

)%

 

376

 

 

(100.0

)%

Deferred tax assets, net

 

7,892

 

 

8,170

 

 

(3.4

)%

 

8,120

 

 

(2.8

)%

 

6,347

 

 

24.3

%

Servicing assets

 

6,482

 

 

6,253

 

 

3.7

%

 

6,400

 

 

1.3

%

 

6,399

 

 

1.3

%

Operating lease assets

 

6,595

 

 

7,145

 

 

(7.7

)%

 

7,616

 

 

(13.4

)%

 

7,843

 

 

(15.9

)%

Accrued interest receivable

 

6,741

 

 

7,523

 

 

(10.4

)%

 

9,334

 

 

(27.8

)%

 

9,498

 

 

(29.0

)%

Other assets

 

4,018

 

 

4,159

 

 

(3.4

)%

 

3,815

 

 

5.3

%

 

4,230

 

 

(5.0

)%

Total assets

 

$

2,060,003

 

 

$

2,050,672

 

 

0.5

%

 

$

1,922,853

 

 

7.1

%

 

$

2,020,777

 

 

1.9

%

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

795,741

 

 

$

715,719

 

 

11.2

%

 

$

538,009

 

 

47.9

%

 

$

551,415

 

 

44.3

%

Savings, NOW and money market accounts

 

391,975

 

 

412,359

 

 

(4.9

)%

 

408,826

 

 

(4.1

)%

 

368,885

 

 

6.3

%

Time deposits of $250,000 or less

 

336,531

 

 

358,848

 

 

(6.2

)%

 

379,333

 

 

(11.3

)%

 

466,450

 

 

(27.9

)%

Time deposits of more than $250,000

 

273,401

 

 

266,845

 

 

2.5

%

 

268,683

 

 

1.8

%

 

260,180

 

 

5.1

%

Total deposits

 

1,797,648

 

 

1,753,771

 

 

2.5

%

 

1,594,851

 

 

12.7

%

 

1,646,930

 

 

9.2

%

Federal Home Loan Bank advances

 

10,000

 

 

40,000

 

 

(75.0

)%

 

80,000

 

 

(87.5

)%

 

130,000

 

 

(92.3

)%

Operating lease liabilities

 

7,338

 

 

7,935

 

 

(7.5

)%

 

8,455

 

 

(13.2

)%

 

8,758

 

 

(16.2

)%

Accrued interest payable and other liabilities

 

6,076

 

 

8,703

 

 

(30.2

)%

 

5,759

 

 

5.5

%

 

7,856

 

 

(22.7

)%

Total liabilities

 

1,821,062

 

 

1,810,409

 

 

0.6

%

 

1,689,065

 

 

7.8

%

 

1,793,544

 

 

1.5

%

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, no par value

 

154,796

 

 

164,698

 

 

(6.0

)%

 

164,140

 

 

(5.7

)%

 

163,759

 

 

(5.5

)%

Retained earnings

 

83,002

 

 

74,707

 

 

11.1

%

 

67,692

 

 

22.6

%

 

61,531

 

 

34.9

%

Accumulated other comprehensive income, net

 

1,143

 

 

858

 

 

33.2

%

 

1,956

 

 

(41.6

)%

 

1,942

 

 

(41.1

)%

Total shareholders’ equity

 

238,941

 

 

240,263

 

 

(0.6

)%

 

233,788

 

 

2.2

%

 

227,233

 

 

5.2

%

Total liabilities and shareholders’ equity

 

$

2,060,003

 

 

$

2,050,672

 

 

0.5

%

 

$

1,922,853

 

 

7.1

%

 

$

2,020,777

 

 

1.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding common shares

 

14,854,315

 

 

15,468,242

 

 

 

 

15,385,878

 

 

 

 

15,377,935

 

 

 

Book value per common share (1)

 

$

16.09

 

 

$

15.53

 

 

 

 

$

15.19

 

 

 

 

$

14.78

 

 

 

Total loan to total deposit ratio

 

96.29

%

 

96.33

%

 

 

 

99.42

%

 

 

 

94.58

%

 

 

Noninterest-bearing deposits to total deposits

 

44.27

%

 

40.81

%

 

 

 

33.73

%

 

 

 

33.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

The ratios are calculated by dividing total shareholders equity by the number of outstanding common shares. The Company did not have any intangible equity components for the presented periods.

PCB Bancorp and Subsidiary

Consolidated Statements of Income (Unaudited)

($ in thousands, except share and per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

6/30/2021

 

3/31/2021

 

% Change

 

6/30/2020

 

% Change

 

6/30/2021

 

6/30/2020

 

% Change

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

19,511

 

 

$

18,744

 

 

4.1

%

 

$

18,273

 

 

6.8

%

 

$

38,255

 

 

$

38,679

 

 

(1.1

)%

Investment securities

 

375

 

 

360

 

 

4.2

%

 

539

 

 

(30.4

)%

 

735

 

 

1,183

 

 

(37.9

)%

Other interest-earning assets

 

165

 

 

154

 

 

7.1

%

 

161

 

 

2.5

%

 

319

 

 

771

 

 

(58.6

)%

Total interest income

 

20,051

 

 

19,258

 

 

4.1

%

 

18,973

 

 

5.7

%

 

39,309

 

 

40,633

 

 

(3.3

)%

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

1,000

 

 

1,311

 

 

(23.7

)%

 

3,409

 

 

(70.7

)%

 

2,311

 

 

8,401

 

 

(72.5

)%

Other borrowings

 

55

 

 

128

 

 

(57.0

)%

 

201

 

 

(72.6

)%

 

183

 

 

303

 

 

(39.6

)%

Total interest expense

 

1,055

 

 

1,439

 

 

(26.7

)%

 

3,610

 

 

(70.8

)%

 

2,494

 

 

8,704

 

 

(71.3

)%

Net interest income

 

18,996

 

 

17,819

 

 

6.6

%

 

15,363

 

 

23.6

%

 

36,815

 

 

31,929

 

 

15.3

%

Provision (reversal) for loan losses

 

(934

)

 

(1,147

)

 

(18.6

)%

 

3,855

 

 

(124.2

)%

 

(2,081

)

 

6,751

 

 

(130.8

)%

Net interest income after provision (reversal) for loan losses

 

19,930

 

 

18,966

 

 

5.1

%

 

11,508

 

 

73.2

%

 

38,896

 

 

25,178

 

 

54.5

%

Noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of loans

 

3,967

 

 

1,322

 

 

200.1

%

 

1,498

 

 

164.8

%

 

5,289

 

 

2,223

 

 

137.9

%

Service charges and fees on deposits

 

302

 

 

293

 

 

3.1

%

 

275

 

 

9.8

%

 

595

 

 

665

 

 

(10.5

)%

Loan servicing income

 

545

 

 

882

 

 

(38.2

)%

 

902

 

 

(39.6

)%

 

1,427

 

 

1,456

 

 

(2.0

)%

Other income

 

337

 

 

360

 

 

(6.4

)%

 

243

 

 

38.7

%

 

697

 

 

600

 

 

16.2

%

Total noninterest income

 

5,151

 

 

2,857

 

 

80.3

%

 

2,918

 

 

76.5

%

 

8,008

 

 

4,944

 

 

62.0

%

Noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

7,125

 

 

6,182

 

 

15.3

%

 

5,761

 

 

23.7

%

 

13,307

 

 

12,312

 

 

8.1

%

Occupancy and equipment

 

1,388

 

 

1,371

 

 

1.2

%

 

1,400

 

 

(0.9

)%

 

2,759

 

 

2,780

 

 

(0.8

)%

Professional fees

 

658

 

 

494

 

 

33.2

%

 

509

 

 

29.3

%

 

1,152

 

 

1,306

 

 

(11.8

)%

Marketing and business promotion

 

516

 

 

138

 

 

273.9

%

 

548

 

 

(5.8

)%

 

654

 

 

727

 

 

(10.0

)%

Data processing

 

396

 

 

377

 

 

5.0

%

 

366

 

 

8.2

%

 

773

 

 

724

 

 

6.8

%

Director fees and expenses

 

151

 

 

138

 

 

9.4

%

 

107

 

 

41.1

%

 

289

 

 

328

 

 

(11.9

)%

Regulatory assessments

 

179

 

 

208

 

 

(13.9

)%

 

242

 

 

(26.0

)%

 

387

 

 

461

 

 

(16.1

)%

Other expenses

 

726

 

 

761

 

 

(4.6

)%

 

763

 

 

(4.8

)%

 

1,487

 

 

1,625

 

 

(8.5

)%

Total noninterest expense

 

11,139

 

 

9,669

 

 

15.2

%

 

9,696

 

 

14.9

%

 

20,808

 

 

20,263

 

 

2.7

%

Income before income taxes

 

13,942

 

 

12,154

 

 

14.7

%

 

4,730

 

 

194.8

%

 

26,096

 

 

9,859

 

 

164.7

%

Income tax expense

 

4,098

 

 

3,594

 

 

14.0

%

 

1,363

 

 

200.7

%

 

7,692

 

 

2,920

 

 

163.4

%

Net income

 

$

9,844

 

 

$

8,560

 

 

15.0

%

 

$

3,367

 

 

192.4

%

 

$

18,404

 

 

$

6,939

 

 

165.2

%

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.65

 

 

$

0.55

 

 

 

 

$

0.22

 

 

 

 

$

1.20

 

 

$

0.45

 

 

 

Diluted

 

$

0.64

 

 

$

0.55

 

 

 

 

$

0.22

 

 

 

 

$

1.19

 

 

$

0.45

 

 

 

Average common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

15,115,561

 

 

15,384,343

 

 

 

 

15,337,405

 

 

 

 

15,249,210

 

 

15,421,552

 

 

 

Diluted

 

15,309,873

 

 

15,533,608

 

 

 

 

15,373,655

 

 

 

 

15,425,308

 

 

15,522,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend paid per common share

 

$

0.10

 

 

$

0.10

 

 

 

 

$

0.10

 

 

 

 

$

0.20

 

 

$

0.20

 

 

 

Return on average assets (1)

 

1.96

%

 

1.75

%

 

 

 

0.69

%

 

 

 

1.85

%

 

0.75

%

 

 

Return on average shareholders’ equity (1), (2)

 

16.49

%

 

14.66

%

 

 

 

5.98

%

 

 

 

15.59

%

 

6.17

%

 

 

Efficiency ratio (3)

 

46.13

%

 

46.76

%

 

 

 

53.04

%

 

 

 

46.42

%

 

54.95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

PCB Bancorp and Subsidiary

Average Balance, Average Yield, and Average Rate (Unaudited)

($ in thousands)

 

 

 

Three Months Ended

 

 

6/30/2021

 

3/31/2021

 

6/30/2020

 

 

Average Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate

 

Average Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate

 

Average Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans (1)

 

$

1,691,704

 

 

 

$

19,511

 

 

4.63

%

 

$

1,641,634

 

 

 

$

18,744

 

 

4.63

%

 

$

1,554,011

 

 

 

$

18,273

 

 

4.73

%

Mortgage-backed securities

 

92,732

 

 

 

233

 

 

1.01

%

 

81,486

 

 

 

215

 

 

1.07

%

 

63,692

 

 

 

317

 

 

2.00

%

Collateralized mortgage obligation

 

22,929

 

 

 

54

 

 

0.94

%

 

24,888

 

 

 

57

 

 

0.93

%

 

37,745

 

 

 

122

 

 

1.30

%

SBA loan pool securities

 

10,828

 

 

 

51

 

 

1.89

%

 

11,673

 

 

 

52

 

 

1.81

%

 

13,189

 

 

 

62

 

 

1.89

%

Municipal bonds (2)

 

5,760

 

 

 

37

 

 

2.58

%

 

5,804

 

 

 

36

 

 

2.52

%

 

5,710

 

 

 

38

 

 

2.68

%

Other interest-earning assets

 

164,710

 

 

 

165

 

 

0.40

%

 

189,153

 

 

 

154

 

 

0.33

%

 

245,447

 

 

 

161

 

 

0.26

%

Total interest-earning assets

 

1,988,663

 

 

 

20,051

 

 

4.04

%

 

1,954,638

 

 

 

19,258

 

 

4.00

%

 

1,919,794

 

 

 

18,973

 

 

3.97

%

Noninterest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

19,080

 

 

 

 

 

 

 

19,072

 

 

 

 

 

 

 

16,031

 

 

 

 

 

 

Allowance for loan losses

 

(25,559

)

 

 

 

 

 

 

(26,870

)

 

 

 

 

 

 

(17,320

)

 

 

 

 

 

Other assets

 

36,605

 

 

 

 

 

 

 

40,377

 

 

 

 

 

 

 

37,959

 

 

 

 

 

 

Total noninterest-earning assets

 

30,126

 

 

 

 

 

 

 

32,579

 

 

 

 

 

 

 

36,670

 

 

 

 

 

 

Total assets

 

$

2,018,789

 

 

 

 

 

 

 

$

1,987,217

 

 

 

 

 

 

 

$

1,956,464

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

$

400,314

 

 

 

317

 

 

0.32

%

 

$

407,623

 

 

 

333

 

 

0.33

%

 

$

371,992

 

 

 

548

 

 

0.59

%

Savings

 

11,588

 

 

 

1

 

 

0.03

%

 

10,609

 

 

 

1

 

 

0.04

%

 

6,966

 

 

 

3

 

 

0.17

%

Time deposits

 

615,035

 

 

 

682

 

 

0.44

%

 

635,613

 

 

 

977

 

 

0.62

%

 

730,349

 

 

 

2,858

 

 

1.57

%

Total interest-bearing deposits

 

1,026,937

 

 

 

1,000

 

 

0.39

%

 

1,053,845

 

 

 

1,311

 

 

0.50

%

 

1,109,307

 

 

 

3,409

 

 

1.24

%

Federal Home Loan Bank advances

 

19,012

 

 

 

55

 

 

1.16

%

 

75,556

 

 

 

128

 

 

0.69

%

 

130,330

 

 

 

201

 

 

0.62

%

Total interest-bearing liabilities

 

1,045,949

 

 

 

1,055

 

 

0.40

%

 

1,129,401

 

 

 

1,439

 

 

0.52

%

 

1,239,637

 

 

 

3,610

 

 

1.17

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

720,105

 

 

 

 

 

 

 

607,076

 

 

 

 

 

 

 

474,175

 

 

 

 

 

 

Other liabilities

 

13,287

 

 

 

 

 

 

 

13,950

 

 

 

 

 

 

 

16,198

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

733,392

 

 

 

 

 

 

 

621,026

 

 

 

 

 

 

 

490,373

 

 

 

 

 

 

Total liabilities

 

1,779,341

 

 

 

 

 

 

 

1,750,427

 

 

 

 

 

 

 

1,730,010

 

 

 

 

 

 

Total shareholders’ equity

 

239,448

 

 

 

 

 

 

 

236,790

 

 

 

 

 

 

 

226,454

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,018,789

 

 

 

 

 

 

 

$

1,987,217

 

 

 

 

 

 

 

$

1,956,464

 

 

 

 

 

 

Net interest income

 

 

 

$

18,996

 

 

 

 

 

 

$

17,819

 

 

 

 

 

 

$

15,363

 

 

 

Net interest spread (3)

 

 

 

 

 

3.64

%

 

 

 

 

 

3.48

%

 

 

 

 

 

2.80

%

Net interest margin (4)

 

 

 

 

 

3.83

%

 

 

 

 

 

3.70

%

 

 

 

 

 

3.22

%

Total deposits

 

$

1,747,042

 

 

 

$

1,000

 

 

0.23

%

 

$

1,660,921

 

 

 

$

1,311

 

 

0.32

%

 

$

1,583,482

 

 

 

$

3,409

 

 

0.87

%

Total funding (5)

 

$

1,766,054

 

 

 

$

1,055

 

 

0.24

%

 

$

1,736,477

 

 

 

$

1,439

 

 

0.34

%

 

$

1,713,812

 

 

 

$

3,610

 

 

0.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan costs (fees).

(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.

PCB Bancorp and Subsidiary

Average Balance, Average Yield, and Average Rate (Unaudited)

($ in thousands)

 

 

 

Six Months Ended

 

 

6/30/2021

 

6/30/2020

 

 

Average Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate

 

Average Balance

 

Interest Income/ Expense

 

Avg. Yield/Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Total loans (1)

 

$

1,666,808

 

 

 

$

38,255

 

 

4.63

%

 

$

1,504,369

 

 

 

$

38,679

 

 

5.17

%

Mortgage-backed securities

 

87,140

 

 

 

448

 

 

1.04

%

 

60,597

 

 

 

646

 

 

2.14

%

Collateralized mortgage obligation

 

23,903

 

 

 

111

 

 

0.94

%

 

39,577

 

 

 

320

 

 

1.63

%

SBA loan pool securities

 

11,248

 

 

 

103

 

 

1.85

%

 

13,531

 

 

 

141

 

 

2.10

%

Municipal bonds (2)

 

5,782

 

 

 

73

 

 

2.55

%

 

5,714

 

 

 

76

 

 

2.67

%

Other interest-earning assets

 

176,864

 

 

 

319

 

 

0.36

%

 

202,120

 

 

 

771

 

 

0.77

%

Total interest-earning assets

 

1,971,745

 

 

 

39,309

 

 

4.02

%

 

1,825,908

 

 

 

40,633

 

 

4.48

%

Noninterest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

19,076

 

 

 

 

 

 

 

17,441

 

 

 

 

 

 

Allowance for loan losses

 

(26,211

)

 

 

 

 

 

 

(15,860

)

 

 

 

 

 

Other assets

 

38,481

 

 

 

 

 

 

 

36,136

 

 

 

 

 

 

Total noninterest-earning assets

 

31,346

 

 

 

 

 

 

 

37,717

 

 

 

 

 

 

Total assets

 

$

2,003,091

 

 

 

 

 

 

 

$

1,863,625

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

NOW and money market accounts

 

$

403,948

 

 

 

650

 

 

0.32

%

 

$

368,298

 

 

 

1,667

 

 

0.91

%

Savings

 

11,101

 

 

 

2

 

 

0.04

%

 

6,790

 

 

 

6

 

 

0.18

%

Time deposits

 

625,267

 

 

 

1,659

 

 

0.54

%

 

744,415

 

 

 

6,728

 

 

1.82

%

Total interest-bearing deposits

 

1,040,316

 

 

 

2,311

 

 

0.45

%

 

1,119,503

 

 

 

8,401

 

 

1.51

%

Federal Home Loan Bank advances

 

47,128

 

 

 

183

 

 

0.78

%

 

77,723

 

 

 

303

 

 

0.78

%

Total interest-bearing liabilities

 

1,087,444

 

 

 

2,494

 

 

0.46

%

 

1,197,226

 

 

 

8,704

 

 

1.46

%

Noninterest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

663,902

 

 

 

 

 

 

 

421,847

 

 

 

 

 

 

Other liabilities

 

13,618

 

 

 

 

 

 

 

18,281

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

677,520

 

 

 

 

 

 

 

440,128

 

 

 

 

 

 

Total liabilities

 

1,764,964

 

 

 

 

 

 

 

1,637,354

 

 

 

 

 

 

Total shareholders’ equity

 

238,127

 

 

 

 

 

 

 

226,271

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,003,091

 

 

 

 

 

 

 

$

1,863,625

 

 

 

 

 

 

Net interest income

 

 

 

$

36,815

 

 

 

 

 

 

$

31,929

 

 

 

Net interest spread (3)

 

 

 

 

 

3.56

%

 

 

 

 

 

3.02

%

Net interest margin (4)

 

 

 

 

 

3.77

%

 

 

 

 

 

3.52

%

Total deposits

 

$

1,704,218

 

 

 

$

2,311

 

 

0.27

%

 

$

1,541,350

 

 

 

$

8,401

 

 

1.10

%

Total funding (5)

 

$

1,751,346

 

 

 

$

2,494

 

 

0.29

%

 

$

1,619,073

 

 

 

$

8,704

 

 

1.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Total loans include both loans held for sale and loans held for investment, net of deferred loan costs (fees).

(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.

 

Contacts

Timothy Chang

Executive Vice President & Chief Financial Officer

213-210-2000

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