Exhibit 99.1
pcbbancorpa.jpg
PCB Bancorp Reports Earnings of $8.7 million for Q4 2022 and $35.0 million for 2022
Los Angeles, California - January 26, 2023 - PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of PCB Bank (the “Bank”), today reported net income of $8.7 million, or $0.58 per diluted common share, for the fourth quarter of 2022, compared with $7.0 million, or $0.46 per diluted common share, for the previous quarter and $10.7 million, or $0.70 per diluted common share, for the year-ago quarter. For 2022, net income was $35.0 million, or $2.31 per diluted common share, compared with $40.1 million, or $2.62 per diluted common share, for the previous year.
Q4 2022 and Full Year Highlights
•Net income totaled $8.7 million, or $0.58 per diluted common share, for the current quarter and $35.0 million, or $2.31 per diluted common share, for the current year;
◦The Company recorded a provision (reversal) for loan losses of $1.1 million for the current quarter compared with $3.8 million for the previous quarter and $(1.5) million for the year-ago quarter. For the current year, provision (reversal) for loan losses was $3.6 million compared with $(4.6) million for the previous year.
◦Allowance for loan losses (“Allowance”) to loans held-for-investment(1) ratio was 1.22% at December 31, 2022 compared with 1.21% at September 30, 2022 and 1.29% at December 31, 2021. Adjusted Allowance to loans held-for-investment ratio(2) was 1.22% at December 31, 2022 compared with 1.21% at September 30, 2022 and 1.34% at December 31, 2021.
◦Net interest income was $24.3 million for the current quarter compared with $24.0 million for the previous quarter and $20.1 million for the year-ago quarter. Net interest margin was 4.15% for the current quarter compared with 4.25% for the previous quarter and 3.87% for the year-ago quarter. For the current year, net interest income and net interest margin were $89.6 million and 4.08%, respectively, compared with $77.1 million and 3.83%, respectively, for the previous year.
◦Gain on sale of loans was $759 thousand for the current quarter compared with $1.4 million for the previous quarter and $3.4 million for the year-ago quarter. For the current year, gain on sale of loans was $8.0 million compared with $12.9 million for the previous year.
•Total assets were $2.42 billion at December 31, 2022, an increase of $93.0 million, or 4.0%, from $2.33 billion at September 30, 2022 and an increase of $270.3 million, or 12.6%, from $2.15 billion at December 31, 2021.
•Loans held-for-investment were $2.05 billion at December 31, 2022, an increase of $86.8 million, or 4.4%, from $1.96 billion at September 30, 2022 and an increase of $313.9 million, or 18.1%, from $1.73 billion at December 31, 2021;
•Total deposits were $2.05 billion at December 31, 2022, an increase of $67.9 million, or 3.4%, from $1.98 billion at September 30, 2022 and an increase of $178.8 million, or 9.6%, from $1.87 billion at December 31, 2021;
•The Company opened 1 new full-service branch in Carrollton, Texas; and
•As of December 31, 2022, the Company repurchased and retired 362,557 shares of common stock for an aggregate cost of $6.7 million under the repurchase program announced on July 28, 2022. On January 26, 2023, the Company announced the amendment to the repurchase program, which extended the program expiration from February 1, 2023 to February 1, 2024.
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(1)     Loans held-for-investment are presented net of deferred fees and costs in this press release.
(2)     Adjusted Allowance to loans held-for-investment ratio is a non-GAAP measure, which excludes U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans from loans held-for-investment. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.


1



“We are pleased to announce another solid financial performance for the fourth quarter of 2022 to close out the year,” stated Henry Kim, President and Chief Executive Officer. “For the fourth quarter, we achieve a well-balance loan held-for-investment portfolio growth of $86.8 million, or 17.6% annualized, that contributed to further diversification, sound deposit balance growth of $67.9 million, or 13.6% annualized, in spite of the ongoing challenges in the deposit market due to competition and rising market interest rate environment, and a record net interest income of $24.3 million.”
“During the 2022 fourth quarter, we successfully executed several key strategic plans of expanding our branch network in Texas by opening a full service branch in Carrollton to complement our Dallas branch that opened in September 2022, maintaining our exceptional credit quality by being proactive with our borrowers, and actively continuing our stock repurchase program.”
“As we look ahead of 2023 and beyond, our strong balance sheet combined with our exceptionally robust capital position will provide us with the capacity to maneuver through potential uncertain economic environment ahead. We remain entirely committed to helping for the success of our customers and increase the shareholder value through disciplined growth.”
Financial Highlights (Unaudited)
($ in thousands, except per share data)
Three Months Ended
Year Ended
12/31/20229/30/2022
% Change
12/31/2021
% Change
12/31/202212/31/2021% Change
Net income$8,702 $6,953 25.2 %$10,676 (18.5)%$34,987 $40,103 (12.8)%
Diluted earnings per common share$0.58 $0.46 26.1 %$0.70 (17.1)%$2.31 $2.62 (11.8)%
Net interest income$24,265 $24,023 1.0 %$20,095 20.8 %$89,632 $77,137 16.2 %
Provision (reversal) for loan losses1,149 3,753 (69.4)%(1,462)NM3,602 (4,596)NM
Noninterest income2,389 3,176 (24.8)%4,838 (50.6)%14,499 18,434 (21.3)%
Noninterest expense13,115 13,695 (4.2)%11,168 17.4 %51,126 43,208 18.3 %
Return on average assets (1)
1.44 %1.19 %2.01 %1.54 %1.96 %
Return on average shareholders’ equity (1)
10.31 %8.16 %16.84 %11.42 %16.52 %
Return on average tangible common equity (“TCE”) (2)
12.99 %10.25 %16.84 %13.23 %16.52 %
Net interest margin (1)
4.15 %4.25 %3.87 %4.08 %3.83 %
Efficiency ratio (3)
49.20 %50.35 %44.79 %49.10 %45.21 %
($ in thousands, except per share data)12/31/20229/30/2022% Change12/31/2021% Change
Total assets
$2,420,036 $2,327,051 4.0 %$2,149,735 12.6 %
Net loans held-for-investment
2,021,121 1,935,476 4.4 %1,709,824 18.2 %
Total deposits
2,045,983 1,978,098 3.4 %1,867,134 9.6 %
Book value per common share (4)
$22.94 $22.40 $17.24 
TCE per common share (2)
$18.21 $17.75 $17.24 
Tier 1 leverage ratio (consolidated)
14.33 %14.74 %12.11 %
Total shareholders’ equity to total assets13.86 %14.30 %11.92 %
TCE to total assets (2), (5)
11.00 %11.33 %11.92 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
(3)Calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
(4)Calculated by dividing total shareholders’ equity by the number of outstanding common shares.
(5)The Company did not have any intangible asset component for the presented periods.



2

Result of Operations (Unaudited)
Net Interest Income and Net Interest Margin
The following table presents the components of net interest income for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20229/30/2022
% Change
12/31/2021% Change12/31/202212/31/2021% Change
Interest income/expense on
Loans
$28,786 $24,835 15.9 %$20,363 41.4 %$95,054 $79,155 20.1 %
Investment securities
957 806 18.7 %441 117.0 %2,907 1,613 80.2 %
Other interest-earning assets
1,833 1,194 53.5 %191 859.7 %3,790 704 438.4 %
Total interest-earning assets
31,576 26,835 17.7 %20,995 50.4 %101,751 81,472 24.9 %
Interest-bearing deposits
7,295 2,798 160.7 %847 761.3 %11,984 4,043 196.4 %
Borrowings
16 14 14.3 %53 (69.8)%135 292 (53.8)%
Total interest-bearing liabilities
7,311 2,812 160.0 %900 712.3 %12,119 4,335 179.6 %
Net interest income
$24,265 $24,023 1.0 %$20,095 20.8 %$89,632 $77,137 16.2 %
Average balance of
Loans
$2,004,220 $1,905,366 5.2 %$1,758,421 14.0 %$1,872,557 $1,702,073 10.0 %
Investment securities
134,066 137,363 (2.4)%128,650 4.2 %132,538 130,437 1.6 %
Other interest-earning assets
182,018 200,367 (9.2)%175,468 3.7 %194,205 179,353 8.3 %
Total interest-earning assets
$2,320,304 $2,243,096 3.4 %$2,062,539 12.5 %$2,199,300 $2,011,863 9.3 %
Interest-bearing deposits
$1,269,739 $1,137,739 11.6 %$1,008,027 26.0 %$1,111,449 $1,022,099 8.7 %
Borrowings
1,739 2,033 (14.5)%13,315 (86.9)%6,290 31,302 (79.9)%
Total interest-bearing liabilities
$1,271,478 $1,139,772 11.6 %$1,021,342 24.5 %$1,117,739 $1,053,401 6.1 %
Total funding (1)
$2,043,110 $1,965,134 4.0 %$1,845,846 10.7 %$1,949,360 $1,790,617 8.9 %
Annualized average yield/cost of 
Loans
5.70 %5.17 %4.59 %5.08 %4.65 %
Investment securities
2.83 %2.33 %1.36 %2.19 %1.24 %
Other interest-earning assets
4.00 %2.36 %0.43 %1.95 %0.39 %
Total interest-earning assets5.40 %4.75 %4.04 %4.63 %4.05 %
Interest-bearing deposits
2.28 %0.98 %0.33 %1.08 %0.40 %
Borrowings
3.65 %2.73 %1.58 %2.15 %0.93 %
Total interest-bearing liabilities2.28 %0.98 %0.35 %1.08 %0.41 %
Net interest margin4.15 %4.25 %3.87 %4.08 %3.83 %
Cost of total funding (1)
1.42 %0.57 %0.19 %0.62 %0.24 %
Supplementary information
Net accretion of discount on loans$869 $867 0.2 %$815 6.6 %$3,551 $3,504 1.3 %
Net amortization of deferred loan fees$167 $243 (31.3)%$1,434 (88.4)%$2,181 $6,096 (64.2)%
(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.

3

Loans. The increases in average yield for the current quarter and year were primarily due to an increase in overall interest rates on loans from the rising interest rate environment, partially offset by a decrease in net amortization of deferred loan fees from the decreased amount of SBA PPP loan payoffs.
The following table presents a composition of total loans by interest rate type accompanied with the weighted-average contractual rates as of the dates indicated:
12/31/20229/30/202212/31/2021
% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate% to Total LoansWeighted-Average Contractual Rate
Fixed rate loans
23.2 %4.51 %24.0 %4.43 %28.4 %3.98 %
Hybrid rate loans
39.1 %4.40 %38.0 %4.23 %29.1 %4.16 %
Variable rate loans
37.7 %7.86 %38.0 %6.75 %42.5 %3.95 %
Investment Securities. The increases in average yield for the current quarter and year were primarily due to a decrease in net amortization of premiums on mortgage-backed securities and collateralized mortgage obligations and higher yield on newly purchased investment securities.
Other Interest-Earning Assets. The increases in average yield for the current quarter and year were primarily due to an increased interest rate on cash held at the Federal Reserve Bank (“FRB”) account. The increases in average balance for the current quarter and year compared with the same periods of 2021 were primarily due to an increase in average balance of deposits and the Emergency Capital Investment Program (“ECIP”) capital investment, partially offset by an increase in loans. The Company maintains most of its cash at the FRB account.
Interest-Bearing Deposits. The increases in average cost for the current quarter and year were primarily due to an increase in market rates.
Provision (reversal) for Loan Losses
Provision (reversal) for loan losses was $1.1 million for the current quarter compared with $3.8 million for the previous quarter and $(1.5) million for the year-ago quarter. For the current and previous years, provision (reversal) for loan losses was $3.6 million and $(4.6) million, respectively. The additional provision for loan losses for the current quarter was primarily due to an increase in gross loan balance. For the current year, the additional provision for loan losses was primarily due to an increase in gross loan balance and changes in qualitative adjustment factors related to current economic conditions.
The Company recorded net charge-offs (recoveries) of $(32) thousand for the current quarter compared with $1.1 million for the previous quarter and $(36) thousand for the year-ago quarter. For the current and previous years, the Company recorded net charge-offs (recoveries) of $1.0 million and $(467) thousand, respectively.
Adjusted Allowance to loans held-for-investment ratio(1) was 1.22%, 1.21% and 1.34% at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.
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(1)     Adjusted Allowance to loans held-for-investment ratio is a non-GAAP measure, which excludes SBA PPP loans from loans held-for-investment. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
4

Noninterest Income
The following table presents the components of noninterest income for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20229/30/2022
% Change
12/31/2021
% Change
12/31/202212/31/2021
% Change
Gain on sale of loans
$759 $1,415 (46.4)%$3,374 (77.5)%$7,990 $12,932 (38.2)%
Service charges and fees on deposits
352 341 3.2 %308 14.3 %1,326 1,195 11.0 %
Loan servicing income
734 780 (5.9)%688 6.7 %2,969 2,770 7.2 %
Bank-owned life insurance income181 178 1.7 %108 67.6 %706 108 553.7 %
Other income
363 462 (21.4)%360 0.8 %1,508 1,429 5.5 %
Total noninterest income
$2,389 $3,176 (24.8)%$4,838 (50.6)%$14,499 $18,434 (21.3)%
Gain on Sale of Loans. The following table presents information on gain on sale of loans for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20229/30/2022% Change12/31/2021% Change12/31/202212/31/2021% Change
Gain on sale of SBA loans
Sold loan balance
$17,448 $27,313 (36.1)%$36,765 (52.5)%$122,886 $126,839 (3.1)%
Premium received
1,102 2,036 (45.9)%3,683 (70.1)%9,944 14,043 (29.2)%
Gain recognized
759 1,407 (46.1)%3,363 (77.4)%7,982 12,775 (37.5)%
Gain on sale of residential property loans
Sold loan balance
$— $858 (100.0)%$559 (100.0)%$858 $10,382 (91.7)%
Gain recognized
— 8 (100.0)%9 (100.0)%8 151 (94.7)%
The Company also sold certain commercial property loans of $3.4 million and $8.6 million during the year-ago quarter and previous year, respectively.
Loan Servicing Income. The following table presents information on loan servicing income for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20229/30/2022
% Change
12/31/2021
% Change
12/31/202212/31/2021
% Change
Loan servicing income
Servicing income received
$1,284 $1,302 (1.4)%$1,202 6.8 %$5,103 $4,779 6.8 %
Servicing assets amortization
(550)(522)5.4 %(514)7.0 %(2,134)(2,009)6.2 %
Loan servicing income$734 $780 (5.9)%$688 6.7 %$2,969 $2,770 7.2 %
Underlying loans at end of period
$531,095 $538,904 (1.4)%$519,706 2.2 %$531,095 $519,706 2.2 %
The Company services SBA loans and certain residential property loans that are sold to the secondary market.

5

Noninterest Expense
The following table presents the components of noninterest expense for the periods indicated:
Three Months Ended
Year Ended
($ in thousands)12/31/20229/30/2022% Change12/31/2021% Change12/31/202212/31/2021% Change
Salaries and employee benefits
$7,879 $8,457 (6.8)%$7,061 11.6 %$33,056 $27,974 18.2 %
Occupancy and equipment
1,897 1,650 15.0 %1,417 33.9 %6,481 5,575 16.3 %
Professional fees
607 587 3.4 %585 3.8 %2,239 2,159 3.7 %
Marketing and business promotion
724 909 (20.4)%586 23.5 %2,150 1,656 29.8 %
Data processing
434 427 1.6 %408 6.4 %1,706 1,572 8.5 %
Director fees and expenses
176 179 (1.7)%161 9.3 %706 594 18.9 %
Regulatory assessments
159 150 6.0 %138 15.2 %597 537 11.2 %
Other expense1,239 1,336 (7.3)%812 52.6 %4,191 3,141 33.4 %
Total noninterest expense
$13,115 $13,695 (4.2)%$11,168 17.4 %$51,126 $43,208 18.3 %
Salaries and Employee Benefits. The decrease for the current quarter compared with the previous quarter was primarily due to decreases in bonus and vacation accruals, and incentives tied to the sales of Loan Production Offices (“LPO”) originated SBA loans, partially offset by a decrease in loan origination cost, which offsets the recognition of salaries. The increases for the current quarter and year compared with the same periods of 2021 were primarily due to increases in salaries and other employee benefit expense from the increased number of employees and a decrease in loan origination cost, partially offset by a decrease the incentives tied to sales of LPO originated SBA loans.
Total loan origination cost included in salaries and employee benefits were $345 thousand, $488 thousand and $435 thousand for the current, previous and year-ago quarters, respectively, and $1.7 million and $2.2 million for the current and previous years, respectively. The Company recognized a higher loan origination cost for the previous year primarily due to the SBA PPP loan production in the first quarter of 2021. The number of full-time equivalent employees was 272, 274 and 248 as of December 31, 2022, September 30, 2022 and December 31, 2021, respectively.
Occupancy and Equipment. The increases for the current quarter and year were primarily due to new branch openings. The Company opened 3 new full-service branches in Dallas and Carrollton, Texas and Palisades Park, New Jersey during the current year.
Professional Fees. The increases for the current quarter and year were primarily due to the additional legal expenses associated with the on-going legal matters related to the 2021 Network and Data Incident, partially offset by a decrease in internal audit fees.
Marketing and Business Promotion. The increases for the current year was primarily due to increases in marketing activities and advertisement for the Bank's name change to PCB Bank and new branch openings.
Director Fees and Expenses. The increases for the current quarter and year compared with the same periods of 2021 were primarily due to a new director appointed during the fourth quarter of 2021.
Other Expense. The increases for the current quarter and year compared with the same periods of 2021 were primarily due to an increase in office expense for the new branches. The decrease for the current quarter compared with the previous quarter was primarily due to a legal settlement of $150 thousand for the previous quarter.
6

Balance Sheet (Unaudited)
Total assets were $2.42 billion at December 31, 2022, an increase of $93.0 million, or 4.0%, from $2.33 billion at September 30, 2022 and an increase of $270.3 million, or 12.6%, from $2.15 billion at December 31, 2021. The increase for the current quarter was primarily due to increases in cash and cash equivalents, securities available-for-sale, loans held-for-sale and loans held-for-investment. The increase for the current year was primarily due to increases in loans held-for-investment and securities available-for-sale, partially offset by decreases in cash and cash equivalents and loans held-for-sale.
Loans
The following table presents a composition of total loans (includes both loans held-for-sale and loans held-for-investment) as of the dates indicated:
($ in thousands)12/31/20229/30/2022% Change12/31/2021% Change
Real estate loans
Commercial property
$1,288,392 $1,271,781 1.3 %$1,105,843 16.5 %
Residential property
333,726 297,506 12.2 %209,485 59.3 %
SBA property
134,892 136,088 (0.9)%129,661 4.0 %
Construction
17,054 14,592 16.9 %8,252 106.7 %
Commercial and industrial loans
Commercial term
77,700 80,225 (3.1)%73,438 5.8 %
Commercial lines of credit
154,142 117,960 30.7 %100,936 52.7 %
SBA commercial term
16,211 16,542 (2.0)%17,640 (8.1)%
SBA PPP
1,197 1,309 (8.6)%65,329 (98.2)%
Other consumer loans
22,749 23,234 (2.1)%21,621 5.2 %
Loans held-for-investment
2,046,063 1,959,237 4.4 %1,732,205 18.1 %
Loans held-for-sale
22,811 18,982 20.2 %37,026 (38.4)%
Total loans
$2,068,874 $1,978,219 4.6 %$1,769,231 16.9 %
The increase in loans held-for-investment for the current quarter was primarily due to new funding of $181.1 million and advances on lines of credit of $51.1 million, partially offset by pay-downs and pay-offs of $141.4 million. The increase for the current year was primarily due to new funding of $631.9 million and advances of lines of credit of $162.4 million, partially offset by pay-downs and pay-offs of $474.8 million. SBA PPP loans of $112 thousand and $64.1 million were paid off through regular payments or forgiveness from SBA during the current quarter and year, respectively.
The increase in loans held-for-sale for the current quarter was primarily due to new funding of $17.3 million and transfer of $4.0 million from loans held-for-investment, partially offset by sales of $17.4 million. The decrease for the current year was primarily due to sales of $123.7 million, partially offset by new funding of $105.6 million and transfer of $4.5 million from loans held-for-investment.
The following table presents a composition of commitments to extend credit as of the dates indicated:
($ in thousands)12/31/20229/30/2022% Change12/31/2021% Change
Real estate loans
Commercial property
$16,172 $18,400 (12.1)%$20,194 (19.9)%
SBA property
3,730 3,730 — %3,068 21.6 %
Construction
18,211 11,093 64.2 %5,180 251.6 %
Commercial and industrial loans
Commercial term
139 2,027 (93.1)%1,097 (87.3)%
Commercial lines of credit
254,295 254,738 (0.2)%169,000 50.5 %
SBA commercial term
234 572 (59.1)%149 57.0 %
Other consumer loans
692 847 (18.3)%595 16.3 %
Total commitments to extend credit
$293,473 $291,407 0.7 %$199,283 47.3 %

7

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)12/31/20229/30/2022% Change12/31/2021% Change
Nonaccrual loans
Real estate loans
Commercial property
$2,400 $2,444 (1.8)%$— — %
Residential property
372 372 — %— — %
SBA property
585 552 6.0 %746 (21.6)%
Commercial and industrial loans
Commercial term
— 3 (100.0)%— — %
Commercial lines of credit
— 4,000 (100.0)%— — %
SBA commercial term
— — — %213 (100.0)%
Other consumer loans
3 25 (88.0)%35 (91.4)%
Total nonaccrual loans held-for-investment
3,360 7,396 (54.6)%994 238.0 %
Loans past due 90 days or more and still accruing
— — — %— — %
Non-performing loans (“NPLs”) held-for-investment3,360 7,396 (54.6)%994 238.0 %
NPLs held-for-sale4,000 — — %— — %
Total NPLs7,360 7,396 (0.5)%994 640.4 %
Other real estate owned (“OREO”)
— — — %— — %
Non-performing assets (“NPAs”)
$7,360 $7,396 (0.5)%$994 640.4 %
Loans past due and still accruing
Past due 30 to 59 days
$47 $215 (78.1)%$549 (91.4)%
Past due 60 to 89 days
87 195 (55.4)%5 1,640.0 %
Past due 90 days or more
— — — %— — %
Total loans past due and still accruing
$134 $410 (67.3)%554 (75.8)%
Troubled debt restructurings (“TDRs”)
Accruing TDRs
$534 $542 (1.5)%$576 (7.3)%
Nonaccrual TDRs
— 7 (100.0)%17 (100.0)%
Total TDRs
$534 $549 (2.7)%$593 (9.9)%
Special mention loans$6,857 $5,986 14.6 %$18,092 (62.1)%
Classified assets
Classified loans held-for-investment$6,211 $10,293 (39.7)%$5,168 20.2 %
Classified loans held-for-sale4,000 — — %— — %
OREO
— — — %— — %
Classified assets
$10,211 $10,293 (0.8)%$5,168 97.6 %
NPLs held-for-investment to loans held-for-investment0.16 %0.38 %0.06 %
NPAs to total assets
0.30 %0.32 %0.05 %
Classified assets to total assets
0.42 %0.44 %0.24 %
During the current quarter, nonaccrual commercial lines of credit of $4.0 million were transferred to loan held-for-sale. The decrease in special mention loans for the current year was primarily due to improvements of 2 loans with an aggregated carrying value of $11.3 million at December 31, 2021.
Investment Securities
Total investment securities were $141.9 million at December 31, 2022, an increase of $12.5 million, or 9.6%, from $129.4 million at September 30, 2022 and an increase of $18.7 million, or 15.2%, from $123.2 million at December 31, 2021. The increase for the current quarter was primarily due to purchases of $16.3 million and a fair value increase of $711 thousand, partially offset by principal pay-downs and calls of $4.5 million and net premium amortization of $60 thousand. The increase for the current year was primarily due to purchases of $57.4 million, partially offset by principal pay-downs and calls of $23.2 million, a fair value decrease of $15.1 million and net premium amortization of $367 thousand.

8

Deposits
The following table presents the Company’s deposit mix as of the dates indicated:
12/31/20229/30/202212/31/2021
($ in thousands)Amount% to TotalAmount% to TotalAmount% to Total
Noninterest-bearing demand deposits
$734,989 35.9 %$809,842 40.9 %$830,383 44.5 %
Interest-bearing deposits
Savings
8,579 0.4 %13,028 0.7 %16,299 0.9 %
NOW
11,405 0.6 %17,550 0.9 %20,185 1.1 %
Retail money market accounts
494,749 24.2 %522,412 26.4 %386,041 20.5 %
Brokered money market accounts
8 — %10,010 0.5 %1 0.1 %
Retail time deposits of
$250,000 or less
295,354 14.4 %236,864 12.0 %256,956 13.8 %
More than $250,000
353,876 17.3 %239,271 12.1 %172,269 9.2 %
State and brokered time deposits
147,023 7.2 %129,121 6.5 %185,000 9.9 %
Total interest-bearing deposits
1,310,994 64.1 %1,168,256 59.1 %1,036,751 55.5 %
Total deposits
$2,045,983 100.0 %$1,978,098 100.0 %$1,867,134 100.0 %
The decrease in noninterest-bearing demand deposits was primarily due to strong deposit market competition and the migration of noninterest-bearing demand deposits to money market accounts and time deposits attributable to the rising market rates. To remain competitive in this rising interest rate environment, the Bank started to offer higher rates on deposit products to retain and attract new customers.
The increase in retail time deposits for the current quarter was primarily due to new accounts of $384.5 million, renewals of the matured accounts of $122.6 million and balance increases of $7.6 million, partially offset by matured and closed accounts of $341.6 million. The increase for the current year was primarily due to new accounts of $636.7 million, renewals of the matured accounts of $602.9 million and balance increases of $23.4 million, partially offset by matured and closed accounts of $1.04 billion.
Liquidity
The following table presents a summary of the Company’s liquidity position as of December 31, 2022:
($ in thousands)12/31/2022
Cash and cash equivalents
$147,031 
Cash and cash equivalents to total assets
6.1 %
Available borrowing capacity
FHLB advances
$581,745 
Federal Reserve Discount Window
23,902 
Overnight federal funds lines
65,000 
Total
$670,647 
Total available borrowing capacity to total assets
27.7 %

9

Shareholders’ Equity
Shareholders’ equity was $335.4 million at December 31, 2022, an increase of $2.7 million, or 0.8%, from $332.7 million at September 30, 2022 and an increase of $79.2 million, or 30.9%, from $256.3 million at December 31, 2021. The increase for the current quarter was primarily due to net income, partially offset by cash dividends declared on common stock of $2.2 million and repurchase of common stock of $4.5 million. The increase for the current year was primarily due to net income and issuance of preferred stock of $69.1 million (as discussed below), partially offset by cash dividends declared on common stock of $8.9 million, repurchase of common stock of $6.7 million and an increase in accumulated other comprehensive loss of $10.7 million.
Stock Repurchase
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. The Company repurchased and retired 680,269 shares of common stock totaling $10.9 million at a weighted-average price of $15.99 per share under this program.
On July 28, 2022, the Company’s Board of Directors approved a repurchase program authorizing for the repurchase of up to 5% of the Company’s outstanding common stock as of the date of the board meeting, which represented 747,938 shares, through February 1, 2023. On January 26, 2023, the Company announced the amendment to the repurchase program, which extended the program expiration from February 1, 2023 to February 1, 2024. The Company repurchased and retired 362,557 shares of common stock at a weighted-average price of $18.57 per share, totaling $6.7 million under this repurchase program as of December 31, 2022.
Issuance of Preferred Stock Under the Emergency Capital Investment Program
On May 24, 2022, the Company issued 69,141 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series C, liquidation preference of $1,000 per share (“Series C Preferred Stock”) for the capital investment of $69.1 million from the U.S. Treasury under the Emergency Capital Investment Program (“ECIP”). ECIP investment is treated as tier 1 capital for regulatory capital purposes.
The Series C Preferred Stock bears no dividend for the first 24 months following the investment date. Thereafter, the dividend rate will be adjusted based on the lending growth criteria listed in the terms of the ECIP investment with an annual dividend rate up to 2%. After the tenth anniversary of the investment date, the dividend rate will be fixed based on average annual amount of lending in years 2 through 10.
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 the dates indicated:
12/31/20229/30/202212/31/2021Well Capitalized Requirements
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)
13.29 %13.69 %14.79 %N/A
Total capital (to risk-weighted assets)
17.83 %18.34 %16.04 %N/A
Tier 1 capital (to risk-weighted assets)
16.62 %17.14 %14.79 %N/A
Tier 1 capital (to average assets)
14.33 %14.74 %12.11 %N/A
PCB Bank
Common tier 1 capital (to risk-weighted assets)
16.30 %16.82 %14.48 %6.5 %
Total capital (to risk-weighted assets)
17.52 %18.02 %15.73 %10.0 %
Tier 1 capital (to risk-weighted assets)
16.30 %16.82 %14.48 %8.0 %
Tier 1 capital (to average assets)
14.05 %14.47 %11.85 %5.0 %
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 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 general economic uncertainty in the United States and abroad, the impact of inflation, changes in interest rates (including actions taken by the Federal Reserve to address inflation), deposit flows, and real estate values, and their corresponding impact on our customers, and the network and data incident discovered on August 30, 2021. 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.
Contact:
Timothy Chang
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)
12/31/20229/30/2022% Change12/31/2021% Change
Assets
Cash and due from banks
$23,202 $22,252 4.3 %$15,222 52.4 %
Interest-bearing deposits in other financial institutions123,829 131,786 (6.0)%188,063 (34.2)%
Total cash and cash equivalents
147,031 154,038 (4.5)%203,285 (27.7)%
Securities available-for-sale, at fair value
141,863 129,401 9.6 %123,198 15.2 %
Loans held-for-sale
22,811 18,982 20.2 %37,026 (38.4)%
Loans held-for-investment2,046,063 1,959,237 4.4 %1,732,205 18.1 %
Allowance for loan losses
(24,942)(23,761)5.0 %(22,381)11.4 %
Net loans held-for-investment
2,021,121 1,935,476 4.4 %1,709,824 18.2 %
Premises and equipment, net
6,916 4,671 48.1 %3,098 123.2 %
Federal Home Loan Bank and other bank stock
10,183 10,183 — %8,577 18.7 %
Bank-owned life insurance30,064 29,883 0.6 %29,358 2.4 %
Deferred tax assets, net
3,115 12,135 (74.3)%10,824 (71.2)%
Servicing assets
7,347 7,627 (3.7)%7,269 1.1 %
Operating lease assets
6,358 6,897 (7.8)%6,786 (6.3)%
Accrued interest receivable
7,472 6,070 23.1 %5,368 39.2 %
Other assets
15,755 11,688 34.8 %5,122 207.6 %
Total assets
$2,420,036 $2,327,051 4.0 %$2,149,735 12.6 %
Liabilities
Deposits
Noninterest-bearing demand
$734,989 $809,842 (9.2)%$830,383 (11.5)%
Savings, NOW and money market accounts
514,741 563,000 (8.6)%422,526 21.8 %
Time deposits of $250,000 or less
382,377 305,985 25.0 %341,956 11.8 %
Time deposits of more than $250,000
413,876 299,271 38.3 %272,269 52.0 %
Total deposits
2,045,983 1,978,098 3.4 %1,867,134 9.6 %
Federal Home Loan Bank advances
20,000 — — %10,000 100.0 %
Operating lease liabilities
6,809 7,402 (8.0)%7,444 (8.5)%
Accrued interest payable and other liabilities
11,802 8,832 33.6 %8,871 33.0 %
Total liabilities
2,084,594 1,994,332 4.5 %1,893,449 10.1 %
Commitments and contingent liabilities
Shareholders’ equity
Preferred stock69,141 69,141 — %— — %
Common stock149,631 153,890 (2.8)%154,992 (3.5)%
Retained earnings
127,181 120,699 5.4 %101,140 25.7 %
Accumulated other comprehensive income (loss), net(10,511)(11,011)(4.5)%154 NM
Total shareholders’ equity
335,442 332,719 0.8 %256,286 30.9 %
Total liabilities and shareholders’ equity
$2,420,036 $2,327,051 4.0 %$2,149,735 12.6 %
Outstanding common shares
14,625,474 14,853,140 14,865,825 
Book value per common share (1)
$22.94 $22.40 $17.24 
TCE per common share (2)
$18.21 $17.75 $17.24 
Total loan to total deposit ratio
101.12 %100.01 %94.76 %
Noninterest-bearing deposits to total deposits
35.92 %40.94 %44.47 %
(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.
(2)Non-GAAP. See “Non-GAAP Measures” for 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
Year Ended
12/31/20229/30/2022% Change12/31/2021% Change12/31/202212/31/2021% Change
Interest and dividend income
Loans, including fees$28,786 $24,835 15.9 %$20,363 41.4 %$95,054 $79,155 20.1 %
Investment securities957 806 18.7 %441 117.0 %2,907 1,613 80.2 %
Other interest-earning assets1,833 1,194 53.5 %191 859.7 %3,790 704 438.4 %
Total interest income31,576 26,835 17.7 %20,995 50.4 %101,751 81,472 24.9 %
Interest expense
Deposits7,295 2,798 160.7 %847 761.3 %11,984 4,043 196.4 %
Other borrowings16 14 14.3 %53 (69.8)%135 292 (53.8)%
Total interest expense
7,311 2,812 160.0 %900 712.3 %12,119 4,335 179.6 %
Net interest income
24,265 24,023 1.0 %20,095 20.8 %89,632 77,137 16.2 %
Provision (reversal) for loan losses1,149 3,753 (69.4)%(1,462)NM3,602 (4,596)NM
Net interest income after provision (reversal) for loan losses23,116 20,270 14.0 %21,557 7.2 %86,030 81,733 5.3 %
Noninterest income
Gain on sale of loans
759 1,415 (46.4)%3,374 (77.5)%7,990 12,932 (38.2)%
Service charges and fees on deposits
352 341 3.2 %308 14.3 %1,326 1,195 11.0 %
Loan servicing income
734 780 (5.9)%688 6.7 %2,969 2,770 7.2 %
Bank-owned life insurance income181 178 1.7 %108 67.6 %706 108 553.7 %
Other income
363 462 (21.4)%360 0.8 %1,508 1,429 5.5 %
Total noninterest income
2,389 3,176 (24.8)%4,838 (50.6)%14,499 18,434 (21.3)%
Noninterest expense
Salaries and employee benefits
7,879 8,457 (6.8)%7,061 11.6 %33,056 27,974 18.2 %
Occupancy and equipment
1,897 1,650 15.0 %1,417 33.9 %6,481 5,575 16.3 %
Professional fees
607 587 3.4 %585 3.8 %2,239 2,159 3.7 %
Marketing and business promotion
724 909 (20.4)%586 23.5 %2,150 1,656 29.8 %
Data processing
434 427 1.6 %408 6.4 %1,706 1,572 8.5 %
Director fees and expenses
176 179 (1.7)%161 9.3 %706 594 18.9 %
Regulatory assessments
159 150 6.0 %138 15.2 %597 537 11.2 %
Other expense1,239 1,336 (7.3)%812 52.6 %4,191 3,141 33.4 %
Total noninterest expense
13,115 13,695 (4.2)%11,168 17.4 %51,126 43,208 18.3 %
Income before income taxes
12,390 9,751 27.1 %15,227 (18.6)%49,403 56,959 (13.3)%
Income tax expense
3,688 2,798 31.8 %4,551 (19.0)%14,416 16,856 (14.5)%
Net income
$8,702 $6,953 25.2 %$10,676 (18.5)%$34,987 $40,103 (12.8)%
Earnings per common share
Basic
$0.59 $0.47 $0.72 $2.35 $2.66 
Diluted
$0.58 $0.46 $0.70 $2.31 $2.62 
Average common shares
Basic
14,700,010 14,877,879 14,799,973 14,833,191 15,017,637 
Diluted
14,904,106 15,088,089 15,093,351 15,076,348 15,253,820 
Dividend paid per common share
$0.15 $0.15 $0.12 $0.60 $0.44 
Return on average assets (1)
1.44 %1.19 %2.01 %1.54 %1.96 %
Return on average shareholders’ equity (1)
10.31 %8.16 %16.84 %11.42 %16.52 %
Return on average TCE (1), (2)
12.99 %10.25 %16.84 %13.23 %16.52 %
Efficiency ratio (3)
49.20 %50.35 %44.79 %49.10 %45.21 %
(1)Ratios are presented on an annualized basis.
(2)Non-GAAP. See “Non-GAAP Measures” for reconciliation of this measure to its most comparable GAAP measure.
(3)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
12/31/20229/30/202212/31/2021
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)
$2,004,220 $28,786 5.70 %$1,905,366 $24,835 5.17 %$1,758,421 $20,363 4.59 %
Mortgage-backed securities
90,346 585 2.57 %93,546 518 2.20 %88,501 263 1.18 %
Collateralized mortgage obligation
25,570 221 3.43 %24,090 151 2.49 %20,233 53 1.04 %
SBA loan pool securities
9,545 71 2.95 %10,435 56 2.13 %9,199 41 1.77 %
Municipal bonds (2)
4,050 33 3.23 %4,491 34 3.00 %5,698 37 2.58 %
Corporate bonds4,555 47 4.09 %4,801 47 3.88 %5,019 47 3.72 %
Other interest-earning assets
182,018 1,833 4.00 %200,367 1,194 2.36 %175,468 191 0.43 %
Total interest-earning assets
2,320,304 31,576 5.40 %2,243,096 26,835 4.75 %2,062,539 20,995 4.04 %
Noninterest-earning assets
Cash and due from banks21,139 20,609 20,618 
Allowance for loan losses
(23,800)(21,117)(23,835)
Other assets
78,069 76,851 52,512 
Total noninterest-earning assets
75,408 76,343 49,295 
Total assets
$2,395,712 $2,319,439 $2,111,834 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$540,312 2,852 2.09 %$577,975 1,375 0.94 %$406,343 301 0.29 %
Savings
10,692 3 0.11 %14,990 2 0.05 %14,161 2 0.06 %
Time deposits
718,735 4,440 2.45 %544,774 1,421 1.03 %587,523 544 0.37 %
Total interest-bearing deposits
1,269,739 7,295 2.28 %1,137,739 2,798 0.98 %1,008,027 847 0.33 %
Other borrowings1,739 16 3.65 %2,033 14 2.73 %13,315 53 1.58 %
Total interest-bearing liabilities
1,271,478 7,311 2.28 %1,139,772 2,812 0.98 %1,021,342 900 0.35 %
Noninterest-bearing liabilities
Noninterest-bearing demand
771,632 825,362 824,504 
Other liabilities
17,770 16,057 14,511 
Total noninterest-bearing liabilities
789,402 841,419 839,015 
Total liabilities
2,060,880 1,981,191 1,860,357 
Total shareholders’ equity
334,832 338,248 251,477 
Total liabilities and shareholders’ equity
$2,395,712 $2,319,439 $2,111,834 
Net interest income
$24,265 $24,023 $20,095 
Net interest spread (3)
3.12 %3.77 %3.69 %
Net interest margin (4)
4.15 %4.25 %3.87 %
Total deposits
$2,041,371 $7,295 1.42 %$1,963,101 $2,798 0.57 %$1,832,531 $847 0.18 %
Total funding (5)
$2,043,110 $7,311 1.42 %$1,965,134 $2,812 0.57 %$1,845,846 $900 0.19 %
(1)Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan fees and costs.
(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)
Year Ended
12/31/202212/31/2021
Average BalanceInterest Income/ ExpenseAvg. Yield/RateAverage BalanceInterest Income/ ExpenseAvg. Yield/Rate
Assets
Interest-earning assets
Total loans (1)
$1,872,557 $95,054 5.08 %$1,702,073 $79,155 4.65 %
Mortgage-backed securities
89,066 1,826 2.05 %89,693 989 1.10 %
Collateralized mortgage obligation
23,479 545 2.32 %22,633 221 0.98 %
SBA loan pool securities
10,309 208 2.02 %10,515 189 1.80 %
Municipal bonds (2)
4,874 140 2.87 %5,755 146 2.54 %
Corporate bonds4,810 188 3.91 %1,841 68 3.69 %
Other interest-earning assets
194,205 3,790 1.95 %179,353 704 0.39 %
Total interest-earning assets
2,199,300 101,751 4.63 %2,011,863 81,472 4.05 %
Noninterest-earning assets
Cash and due from banks20,735 19,676 
Allowance for loan losses
(22,125)(25,270)
Other assets
73,951 41,187 
Total noninterest-earning assets
72,561 35,593 
Total assets
$2,271,861 $2,047,456 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities
Deposits
NOW and money market accounts
$504,275 4,970 0.99 %$400,446 1,242 0.31 %
Savings
14,068 9 0.06 %12,302 6 0.05 %
Time deposits
593,106 7,005 1.18 %609,351 2,795 0.46 %
Total interest-bearing deposits
1,111,449 11,984 1.08 %1,022,099 4,043 0.40 %
Other borrowings6,290 135 2.15 %31,302 292 0.93 %
Total interest-bearing liabilities
1,117,739 12,119 1.08 %1,053,401 4,335 0.41 %
Noninterest-bearing liabilities
Noninterest-bearing demand
831,621 737,216 
Other liabilities
16,061 14,073 
Total noninterest-bearing liabilities
847,682 751,289 
Total liabilities
1,965,421 1,804,690 
Total shareholders’ equity
306,440 242,766 
Total liabilities and shareholders’ equity
$2,271,861 $2,047,456 
Net interest income
$89,632 $77,137 
Net interest spread (3)
3.55 %3.64 %
Net interest margin (4)
4.08 %3.83 %
Total deposits
$1,943,070 $11,984 0.62 %$1,759,315 $4,043 0.23 %
Total funding (5)
$1,949,360 $12,119 0.62 %$1,790,617 $4,335 0.24 %
(1)Total loans include both loans held-for-sale and loans held-for-investment, net of deferred loan fees and costs.
(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.


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PCB Bancorp and Subsidiary
Non-GAAP Measures
($ in thousands)

Adjusted allowance for loan losses to loans held-for-investment ratio
Adjusted Allowance to loans held-for-investment ratio is calculated by removing SBA PPP loans from loans held-for-investment from the Allowance to loans held-for-investment ratio calculation. The SBA launched the PPP to provide a direct incentive for small businesses to keep their workers on the payroll in response to the COVID-19 pandemic. The SBA guarantees 100% of the PPP loans made to eligible borrowers, and the loans are eligible to be forgiven if certain conditions are met, at which point the SBA will make payments to the Bank for the forgiven amounts. The SBA guarantee on PPP loans cannot be separated from the loan and therefore is not a separate unit of account. The Company considered the SBA guarantee in the Allowance evaluation and determined that it is not required to reserve an Allowance on SBA PPP loans. Management believes this non-GAAP measure enhances comparability to prior periods and provide supplemental information regarding the Company’s credit trends. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP measure with financial measure defined by GAAP.
($ in thousands)12/31/20229/30/202212/31/2021
Loans held-for-investment(a)$2,046,063 $1,959,237 $1,732,205 
Less: SBA PPP loans(b)1,197 1,309 65,329 
Loans held-for-investment, excluding SBA PPP loans(c)=(a)-(b)$2,044,866 $1,957,928 $1,666,876 
Allowance(d)$24,942 $23,761 $22,381 
Allowance to loans held-for-investment ratio(d)/(a)1.22 %1.21 %1.29 %
Adjusted Allowance to loans held-for-investment ratio(d)/(c)1.22 %1.21 %1.34 %
Return on average tangible common equity, tangible common equity per common share and tangible common equity to total assets ratios
The Company's TCE is calculated by subtracting preferred stock from stockholders’ equity. The Company does not have any intangible assets for the presented periods. Return on average TCE, TCE per common share, and TCE to total assets constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. The following tables provide reconciliations of the non-GAAP measures with financial measures defined by GAAP.
($ in thousands)
Three Months Ended
Year Ended
12/31/20229/30/202212/31/202112/31/202212/31/2021
Average total shareholders' equity(a)$334,832 $338,248 $251,477 $306,440 $242,766 
Less: average preferred stock(b)69,141 69,141 — 42,053 — 
Average TCE(c)=(a)-(b)$265,691 $269,107 $251,477 $264,387 $242,766 
Net income(d)$8,702 $6,953 $10,676 $34,987 $40,103 
Return on average shareholder's equity (1)
(d)/(a)10.31 %8.16 %16.84 %11.42 %16.52 %
Return on average TCE (1)
(d)/(c)12.99 %10.25 %16.84 %13.23 %16.52 %
(1) Annualized.
($ in thousands, except per share data)12/31/20229/30/202212/31/2021
Total shareholders' equity(a)$335,442 $332,719 $256,286 
Less: preferred stock(b)69,141 69,141 — 
TCE(c)=(a)-(b)$266,301 $263,578 $256,286 
Outstanding common shares
(d)14,625,474 14,853,140 14,865,825 
Book value per common share(a)/(d)$22.94 $22.40 $17.24 
TCE per common share(c)/(d)$18.21 $17.75 $17.24 
Total assets(e)$2,420,036 $2,327,051 $2,149,735 
Total shareholders' equity to total assets(a)/(e)13.86 %14.30 %11.92 %
TCE to total assets(c)/(e)11.00 %11.33 %11.92 %
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