PCB Bancorp Files 2023 Annual Report on Form 10-K

TL;DR

<b>PCB Bancorp has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

PCB BANCORP (PCB) filed a Annual Report (10-K) with the SEC on March 12, 2024. PCB Bancorp filed its 2023 Form 10-K on March 12, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is commercial banking. PCB Bancorp was formerly known as Pacific City Financial Corp. The company is headquartered in Los Angeles, California.

Why It Matters

For investors and stakeholders tracking PCB BANCORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of PCB Bancorp's financial health, operational strategies, and risk factors for investors and stakeholders. Understanding the details within this report is crucial for assessing the company's performance in the commercial banking sector and its future outlook.

Risk Assessment

Risk Level: medium — PCB BANCORP shows moderate risk based on this filing. The company operates in the highly regulated commercial banking industry, which carries inherent risks related to economic downturns, interest rate fluctuations, and compliance requirements.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess PCB Bancorp's performance and potential risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-12 — Filing Date (Date the report was filed)
• 6022 — SIC Code (Standard Industrial Classification for Commercial Banks)

Key Players & Entities

• PCB BANCORP (company) — Filer name
• 20231231 (date) — Fiscal year end
• 20240312 (date) — Filing date
• PACIFIC CITY FINANCIAL CORP (company) — Former company name
• LOS ANGELES (location) — Business address city
• CA (location) — Business address state
• 213-210-2000 (phone) — Business phone number

FAQ

Risk Factors

• Regulatory Environment [high — regulatory]: The company is subject to extensive regulation by federal and state banking authorities, which can impact operations and profitability.
• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the company's net interest income and the market value of its securities portfolio.
• Competition [medium — market]: The banking industry is highly competitive, with potential impacts on market share and pricing.

Industry Context

PCB Bancorp operates within the commercial banking sector, a highly regulated industry characterized by interest rate sensitivity and competitive pressures.

Regulatory Implications

As a financial institution, PCB Bancorp is subject to oversight from various regulatory bodies, including federal and state banking agencies, which enforce compliance with numerous laws and regulations.

What Investors Should Do

1. Analyze the company's balance sheet and income statement for the fiscal year 2023.
2. Evaluate the identified risk factors and management's mitigation strategies.
3. Compare key financial metrics to industry benchmarks and prior year performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-12: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for PCB Bancorp as a standalone entity under its current name, following its former identity as Pacific City Financial Corp.

Key Financial Figures

• $55.4 million — Bank's lending limit was approximately $55.4 million per borrower for unsecured loans. In ad
• $92.3 million — al of 25%) for a total of approximately $92.3 million to one borrower as of December 31, 2023
• $45.9 m — y one borrower and related entities was $45.9 million, which were performing at that da

Filing Documents

• pcb-20231231.htm (10-K) — 4730KB
• pcb10kex32202312.htm (EX-3.2) — 114KB
• pcb10kex231202312.htm (EX-23.1) — 2KB
• pcb10kex311202312.htm (EX-31.1) — 10KB
• pcb10kex312202312.htm (EX-31.2) — 10KB
• pcb10kex321202312.htm (EX-32.1) — 6KB
• pcb10kex322202312.htm (EX-32.2) — 6KB
• pcb10kex97202312.htm (EX-97) — 52KB
• 0001423869-24-000006.txt (&nbsp;) — 21793KB
• pcb-20231231.xsd (EX-101.SCH) — 88KB
• pcb-20231231_cal.xml (EX-101.CAL) — 196KB
• pcb-20231231_def.xml (EX-101.DEF) — 606KB
• pcb-20231231_lab.xml (EX-101.LAB) — 1090KB
• pcb-20231231_pre.xml (EX-101.PRE) — 906KB
• pcb-20231231_htm.xml (XML) — 4654KB

Forward-Looking Statements

Forward-Looking Statements 3 Part I

Risk Factors

Item 1A. Risk Factors 21

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 33

Cybersecurity

Item 1C. Cybersecurity 34

Properties

Item 2. Properties 35

Legal Proceedings

Item 3. Legal Proceedings 35

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36

Reserved

Item 6. Reserved 37

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 37

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 65

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 67 Index to Consolidated Financial Statements 67 Report of Independent Registered Public Accounting Firm 68 Consolidated Balance Sheets as of December 31, 202 3 and 202 2 71 Consolidated Statements of Income for the Years Ended December 31, 202 3 , 202 2 and 202 1 72 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 202 3 , 202 2 and 202 1 73 Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 202 3 , 202 2 and 20 21 74 Consolidated Statements of Cash Flows for the Years Ended December 31, 202 3 , 202 2 and 202 1 75

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 77

Change in and Disagreements with Accountants on Accounting and Financial Disclosures

Item 9. Change in and Disagreements with Accountants on Accounting and Financial Disclosures 121

Controls and Procedures

Item 9A. Controls and Procedures 121

Other Information

Item 9B. Other Information 122

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 122 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 123

Executive Compensation

Item 11. Executive Compensation 123

Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters 123

Certain Relationships and Related Transactions, and Directors Independence

Item 13. Certain Relationships and Related Transactions, and Directors Independence 123

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 123 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 124

Form 10-K Summary

Item 16. Form 10-K Summary 124

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements which reflect current views of PCB Bancorp (collectively, with its consolidated subsidiary, the "Company," "we," "us" or "our") with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "projection," "goal," "target," "outlook," "aim," "would," and "annualized" or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our business and industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including those factors identified in "Risk Factors" or "Management's Discussion and Analysis of Financial Condition and Results of Operations" or the following: business and economic conditions, particularly those affecting the financial services industry and our primary market areas and arising from recent inflationary pressures and governmental and so

Business

Item 1. Business General PCB Bancorp is a California corporation incorporated in 2007 as a registered bank holding company subject to the Bank Holding Company Act of 1956, as amended ("BHCA"), to serve as the holding company for PCB Bank (the "Bank"), which was founded in 2003. The Company has no material operations other than those of the Bank. The Bank is a California state-chartered commercial bank. The Bank's deposit accounts are insured by the Federal Deposit Insurance Corporation ("FDIC") up to the maximum amount currently allowable under federal law. The Bank is a single operating segment that operates 11 full-service branches in Los Angeles and Orange Counties, California, three full-service branches on the East Coast (Bayside, New York; and Englewood Cliffs and Palisade Park, New Jersey), two full-service branches in Texas (Carrollton and Dallas), and seven loan production offices ("LPOs") located in Los Angeles and Orange Counties, California; Annandale, Virginia; Atlanta, Georgia; Aurora, Colorado; Bellevue, Washington; and Carrollton, Texas. The Bank offers a broad range of loans, deposits, and other products and services predominantly to small and middle market businesses and individuals. The principal executive office of the Company is located at 3701 Wilshire Boulevard, Suite 900, Los Angeles, California 90010, and its telephone number is (213) 210-2000. The reports, proxy statements and other information that the Company files with the SEC, as well as news releases, are available free of charge through the Company's website at www.mypcbbank.com. This information can be found under the "Investor Relations" link on the website. Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed and furnished pursuant to Section 13(a) of the Exchange Act are available as soon as reasonably practicable after they have been filed or furnished to the SEC. Reference to the Company's website a

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View this 10-K filing on SEC EDGAR