Press Release

PCB Bancorp Reports Earnings of $3.4 Million for Q2 2020

Company Release - 7/23/2020 4:05 PM ET

LOS ANGELES--(BUSINESS WIRE)-- PCB Bancorp (the “Company”) (NASDAQ: PCB), the holding company of Pacific City Bank (the “Bank”), today reported net income of $3.4 million, or $0.22 per diluted common share for the second quarter of 2020, compared with $3.6 million, or $0.23 per diluted common share, for the previous quarter and $6.6 million, or $0.40 per diluted common share, for the year-ago quarter.

Q2 2020 Financial Highlights

  • Net income totaled $3.4 million or $0.22 per diluted common share;
    • The Company recorded a provision for loan losses of $3.9 million primarily due to an increase in the economic uncertainty due to the COVID-19 pandemic.
    • Allowance for loan losses to total loans held-for-investment ratio was 1.30% at June 30, 2020 compared with 1.15% at March 31, 2020 and 0.96% at June 30, 2019. Excluding SBA Paycheck Protection Program (“PPP”) loans, allowance for loan losses to total loans held-for-investment ratio was 1.43% at June 30, 2020.
    • Net interest margin was 3.22% for the second quarter of 2020 compared with 3.85% for the previous quarter and 4.17% for the year-ago quarter.
  • Total assets were $2.02 billion at June 30, 2020, an increase of $220.8 million, or 12.3%, from $1.80 billion at March 31, 2020, an increase of $274.4 million, or 15.7%, from $1.75 billion at December 31, 2019, and an increase of $294.3 million, or 17.0%, from $1.73 billion at June 30, 2019;
  • Loans held-for-investment, net of deferred costs (fees), were $1.55 billion at June 30, 2020, an increase of $102.6 million, or 7.1%, from $1.45 billion at March 31, 2020, an increase of $102.8 million, or 7.1%, from $1.45 billion at December 31, 2019, and an increase of $158.0 million, or 11.3%, from $1.40 billion at June 30, 2019;
    • PPP loans totaled $133.7 million at June 30, 2020.
    • Loans with modifications related to COVID-19 totaled $484.0 million at June 30, 2020.
  • Total deposits were $1.65 billion at June 30, 2020, an increase of $169.5 million, or 11.5%, from $1.48 billion at March 31, 2020, an increase of $167.6 million, or 11.3%, from $1.48 billion at December 31, 2019, and an increase of $200.4 million, or 13.9%, from $1.45 billion at June 30, 2019; and
  • The Company declared and paid a cash dividend of $0.10 per common share for the second quarter of 2020 compared with $0.10 per common share for the first quarter of 2020 and $0.06 per common share for the second quarter of 2019.

“We earned $3.4 million of net income in the second quarter despite building $3.9 million in loan loss provision related to the economic impact of COVID-19 pandemic,” commented Henry Kim, President and Chief Executive Officer. “During the quarter, we have maintained robust capital ratios and plenty of liquidity by the increase in our deposit balance by $169.5 million, or 11.5%, primarily due to the funding of PPP loans.”

“We continue to maintain procedures to promote the safety of our employees and customers. We remain steadfast in our commitment to assist the communities we serve by helping them through the difficult financial challenges from the ongoing COVID-19 crisis by keeping the dialogue open and extending 1,551 PPP loans totaling $133.7 million to our customers.”

Financial Highlights (Unaudited)

($ in thousands, except per share data)

 

ThreeMonthsEnded

 

Six Months Ended

 

6/30/2020

 

3/31/2020

 

%
Change

 

6/30/2019

 

%
Change

 

6/30/2020

 

6/30/2019

 

%
Change

Net income

 

$

3,367

 

 

$

3,572

 

 

(5.7

)%

 

$

6,601

 

 

(49.0

)%

 

$

6,939

 

 

$

13,165

 

 

(47.3

)%

Diluted earnings per common share

 

$

0.22

 

 

$

0.23

 

 

(4.3

)%

 

$

0.40

 

 

(45.0

)%

 

$

0.45

 

 

$

0.81

 

 

(44.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

15,363

 

 

$

16,566

 

 

(7.3

)%

 

$

17,692

 

 

(13.2

)%

 

$

31,929

 

 

$

34,845

 

 

(8.4

)%

Provision for loan losses

 

3,855

 

 

2,896

 

 

33.1

%

 

394

 

 

878.4

%

 

6,751

 

 

309

 

 

2084.8

%

Noninterest income

 

2,918

 

 

2,026

 

 

44.0

%

 

3,054

 

 

(4.5

)%

 

4,944

 

 

5,463

 

 

(9.5

)%

Noninterest expense

 

9,696

 

 

10,567

 

 

(8.2

)%

 

10,984

 

 

(11.7

)%

 

20,263

 

 

21,273

 

 

(4.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (1)

 

0.69

%

 

0.81

%

 

 

 

1.52

%