| Schedule of Accounting Standards Update and Change in Accounting Principle |
The following table presents the impact of the Restatement on the Consolidated Balance Sheets (Unaudited), Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) and Notes to Consolidated Financial Statements (Unaudited) as of the date of for the period indicated: | | | | | | | | | | | | | | | | | | | | | | | As of or For the Three Months Ended March 31, 2025 | | ($ in thousands) | | Previously Reported | | Restatement Adjustment | | Restated | | Consolidated Balance Sheets (Unaudited) | | | | | | | | Option derivative | | $ | 35,778 | | | $ | (35,778) | | | $ | — | | | Total assets | | 3,219,536 | | | (35,778) | | | 3,183,758 | | | Common stock | | 178,934 | | | (35,778) | | | 143,156 | | | Total shareholders’ equity | | 406,642 | | | (35,778) | | | 370,864 | | | Total liabilities and shareholders’ equity | | 3,219,536 | | | (35,778) | | | 3,183,758 | | | | | | | | | | Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) | | | | | | | | Recognition of option derivative | | $ | 35,778 | | | $ | (35,778) | | | $ | — | | | Common stock at March 31, 2025 | | 178,934 | | | (35,778) | | | 143,156 | | | Total shareholders’ equity at March 31, 2025 | | 406,642 | | | (35,778) | | | 370,864 | | | | | | | | | | Note 2 - Fair Value | | | | | | | | Assets and Liabilities Measured at Fair Value on a Recurring Basis | | | | | | | | Option derivative at Level 3 | | $ | 35,778 | | | $ | (35,778) | | | $ | — | | | Total assets measured at fair value on a recurring basis at Level 3 | | 35,778 | | | (35,778) | | | — | | | Total assets measured at fair value on a recurring basis | | 183,968 | | | (35,778) | | | 148,190 | | | | | | | | | | Note 14 - Regulatory Matters | | | | | | | | PCB Bancorp | | | | | | | | Capital buffer | | 8.02 | % | | (1.27) | % | | 6.75 | % | Common tier 1 capital (to risk-weighted assets) | | 12.52 | % | | (1.27) | % | | 11.25 | % | Total capital (to risk-weighted assets) | | 16.25 | % | | (1.27) | % | | 14.98 | % | Tier 1 capital (to risk-weighted assets) | | 15.04 | % | | (1.27) | % | | 13.77 | % | Tier 1 capital (to average assets) | | 13.16 | % | | (1.02) | % | | 12.14 | % | | | | | | | | | Note 16 - Segment Information | | | | | | | | Return on average assets | | 1.00 | % | | 0.01 | % | | 1.01 | % | | Return on average shareholders’ equity | | 7.90 | % | | 0.63 | % | | 8.53 | % | | Tier 1 leverage ratio (consolidated) | | 13.16 | % | | (1.02) | % | | 12.14 | % | | | | | | | |
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