Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
The Company’s common stock (symbol: PCB) is listed on the NASDAQ Global Select Market. The approximate number of holders of record of the Company’s common stock as of December 31, 2020 was 271. Certain shares are held in “nominee” or “street” name and accordingly, the number of beneficial owners of such shares is not known or included in the foregoing number.
Dividend Policy
The Company’s shareholders are entitled to receive dividends only if, when and as declared by the Board of Directors and out of funds legally available therefore. It has been the Company’s policy to pay quarterly dividends to holders of its common stock and the Company currently intends to continue paying quarterly dividends. However, the Board of Directors may change or eliminate the payment of future dividends at its discretion, without notice to the shareholders.
Any future determination to pay dividends to the shareholders will depend on the Company’s results of operations, financial condition, capital requirements, banking regulations, payment of dividends on preferred stock, contractual restrictions and any other factors that the Board of Directors may deem relevant. The Company’s profitability and regulatory capital ratios, in addition to other financial conditions, will be key factors in determining the payment of dividends. For additional information, see “Forward-Looking Statements” immediately preceding Part I, and Notes 11 and 17 to the Consolidated Financial Statements included in this Annual Report on Form 10-K.
Dividend Restrictions
As a bank holding company, the Company’s ability to pay dividends is affected by the policies and enforcement powers of the Federal Reserve. In addition, the Company is dependent upon the payment of dividends by the Bank as the principal source of funds for the Company to pay dividends in the future, if any, and to make other payments. The Bank is also subject to various legal, regulatory and other restrictions on its ability to pay dividends and make other distributions and payments to its holding company, PCB Bancorp. For additional information, see “Supervision and Regulation - The Bank - Dividend Payments” included in Item 1 of this Annual Report on Form 10-K.
Issuer Purchase of Equity Securities
The following table presents share repurchase activities during the three months ended December 31, 2020:
($ in thousands, except per share data) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program
From October 1, 2020 to October 31, 2020 — $ — — $ —
From November 1, 2020 to November 30, 2020 — — — —
From December 1, 2020 to December 31, 2020 — — — —
Total — $ — —
On March 28, 2019, the Company’s Board of Directors approved the repurchase of up to $6.5 million of the Company’s common stock through March 27, 2020. During the year ended December 31, 2019, the Company completed the repurchase program, and repurchased and retired 396,715 shares of common stock at a weighted-average price of $16.33 per share.
On January 23, 2020, the Company announced that on November 22, 2019, its Board of Directors approved a $6.5 million stock repurchase program to commence upon the opening of the Company’s trading window for the first quarter of 2020 and continue through November 20, 2021. The Company completed the repurchase program in March 2020. The Company repurchased and retired 428,474 shares of common stock at a weighted-average price of $15.14 per share.
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Item 6. Selected Financial Data
The following table presents certain selected financial data as of the dates or for the periods indicated:
As of or For the Year Ended December 31,
($ in thousands, except per share data) 2020 2019 2018 2017 2016
Selected balance sheet data:
Cash and cash equivalents $ 194,098 $ 146,228 $ 162,273 $ 73,658 $ 69,951
Securities available-for-sale 120,527 97,566 146,991 129,689 82,838
Securities held-to-maturity — 20,154 21,760 21,070 17,584
Loans held-for-sale 1,979 1,975 5,781 5,297 2,150
Loans held-for-investment 1,583,578 1,450,831 1,338,682 1,189,999 1,031,112
Allowance for loan losses (26,510) (14,380) (13,167) (12,224) (11,320)
Total assets 1,922,853 1,746,328 1,697,028 1,441,999 1,226,642
Total deposits 1,594,851 1,479,307 1,443,753 1,251,290 1,091,812
Shareholders’ equity 233,788 226,834 210,296 142,184 127,007
Selected income statement data:
Interest income $ 79,761 $ 92,945 $ 83,699 $ 65,267 $ 52,595
Interest expense 13,572 23,911 17,951 10,097 7,014
Net interest income 66,189 69,034 65,748 55,170 45,581
Provision for loan losses 13,219 4,237 1,231 1,827 2,283
Noninterest income 11,740 11,869 10,454 13,894 13,619
Noninterest expense 41,699 42,315 40,226 35,895 32,514
Income before income taxes 23,011 34,351 34,745 31,342 24,403
Income tax expense 6,836 10,243 10,444 14,939 10,401
Net income 16,175 24,108 24,301 16,403 14,002
Per share data:
Earnings per common share, basic $ 1.05 $ 1.52 $ 1.69 $ 1.22 $ 1.12
Earnings per common share, diluted 1.04 1.49 1.65 1.21 1.11
Book value per common share (1)
15.19 14.44 13.16 10.60 9.48
Cash dividends declared per common share 0.40 0.25 0.12 0.12 0.11
Outstanding share data:
Number of common shares outstanding 15,385,878 15,707,016 15,977,754 13,417,899 13,391,222
Weighted-average common shares outstanding, basic 15,384,231 15,873,383 14,397,075 13,408,030 12,532,807
Weighted-average common shares outstanding, diluted 15,448,892 16,172,282 14,691,370 13,540,293 12,607,990
Selected performance ratios:
Return on average assets 0.84 % 1.40 % 1.53 % 1.22 % 1.25 %
Return on average shareholders’ equity 7.08 % 10.88 % 14.26 % 12.00 % 12.47 %
Dividend payout ratio (2)
38.10 % 16.45 % 7.10 % 9.84 % 9.82 %
Efficiency ratio (3)
53.51 % 52.30 % 52.79 % 51.97 % 54.92 %
Yield on average interest-earning assets 4.25 % 5.53 % 5.38 % 4.99 % 4.82 %
Cost of average interest-bearing liabilities 1.15 % 2.09 % 1.65 % 1.14 % 0.96 %
Net interest spread 3.10 % 3.44 % 3.73 % 3.85 % 3.86 %
Net interest margin (4)
3.53 % 4.11 % 4.23 % 4.22 % 4.18 %
Total loans to total deposits ratio (5)
99.42 % 98.21 % 93.12 % 95.53 % 94.64 %
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As of or For the Year Ended December 31,
($ in thousands, except per share data) 2020 2019 2018 2017 2016
Asset quality:
Loans 30 to 89 days past due and still accruing
$ 338 $ 1,818 $ 377 $ 1,341 $ 2,094
Loans past due 90 days or more and still accruing
— 287 — — —
Nonaccrual loans
3,163 2,537 1,061 3,234 1,848
Nonperforming loans
3,163 2,824 1,061 3,234 1,848
Nonperforming assets (6)
4,564 2,824 1,061 3,333 2,354
Net charge-offs
1,089 3,024 288 923 308
Loans 30 to 89 days past due and still accruing to loans held-for-investment
0.02 % 0.13 % 0.03 % 0.11 % 0.20 %
Nonaccrual loans to loans held-for-investment
0.20 % 0.17 % 0.08 % 0.27 % 0.18 %
Nonaccrual loans to allowance for loan losses 11.93 % 17.64 % 8.06 % 26.46 % 16.33 %
Nonperforming loans to loans held-for-investment
0.20 % 0.19 % 0.08 % 0.27 % 0.18 %
Nonperforming loans to allowance for loan losses
11.93 % 19.64 % 8.06 % 26.46 % 16.33 %
Nonperforming assets to total assets
0.24 % 0.16 % 0.06 % 0.23 % 0.19 %
Allowance for loan losses to loans held-for-investment
1.67 % 0.99 % 0.98 % 1.03 % 1.10 %
Allowance for loan losses to nonaccrual loans
838.13 % 566.81 % 1,241.00 % 377.98 % 612.55 %
Allowance for loan losses to nonperforming loans
838.13 % 509.21 % 1,241.00 % 377.98 % 612.55 %
Net charge-offs to average loans held-for-investment
0.07 % 0.22 % 0.02 % 0.08 % 0.03 %
Capital ratios:
Shareholders’ equity to total assets
12.16 % 12.99 % 12.39 % 9.86 % 10.35 %
Average equity to average assets
11.94 % 12.88 % 10.72 % 10.20 % 10.01 %
PCB Bancorp
Common tier 1 capital (to risk-weighted assets)
15.97 % 15.87 % 16.28 % 12.15 % 12.47 %
Total capital (to risk-weighted assets)
17.22 % 16.90 % 17.31 % 13.20 % 13.59 %
Tier 1 capital (to risk-weighted assets)
15.97 % 15.87 % 16.28 % 12.15 % 12.47 %
Tier 1 capital (to average assets)
11.94 % 13.23 % 12.60 % 10.01 % 10.48 %
Pacific City Bank
Common tier 1 capital (to risk-weighted assets)
15.70 % 15.68 % 16.19 % 12.06 % 12.35 %
Total capital (to risk-weighted assets)
16.95 % 16.71 % 17.21 % 13.12 % 13.48 %
Tier 1 capital (to risk-weighted assets)
15.70 % 15.68 % 16.19 % 12.06 % 12.35 %
Tier 1 capital (to average assets)
11.74 % 13.06 % 12.53 % 9.94 % 10.38 %
(1) Shareholders’ equity divided by common shares outstanding.
(2) Dividends declared per common share divided by basic earnings per common share.
(3) Noninterest expenses divided by the sum of net interest income and noninterest income.
(4) Net interest income divided by average total interest-earning assets.
(5) Total loans include both loans held-for-sale and loans held-for-investment, net of unearned loan costs (fees).
(6) Nonperforming assets include nonperforming loans (nonaccrual loans plus loans past due 90 days or more and still accruing) and other real estate owned.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.