LOS ANGELES–(BUSINESS WIRE)–On May 24, 2022, PCB Bancorp (NASDAQ: PCB), a California corporation (the “Company”), the holding company of Pacific City Bank (the “Bank”), received a $69.1 equity investment million dollars from the United States Department of the Treasury (the “Treasury”) under the Emergency Capital Investment Program (“ECIP”). The Company has issued 69,141 perpetual non-cumulative first preference shares, Series C, with liquidation preference of $1,000 per share (“Series C Preferred Shares”) for investment under the CPIS. Series C Preferred Shares are treated as Tier 1 capital for regulatory capital treatment.
Series C Preferred Shares do not pay dividends for the first 24 months from the date of investment. Thereafter, the annual dividend rate will be adjusted, not to exceed 2%, based on our qualified loan credit extension as defined in the terms of the ECIP transaction documents. After the tenth anniversary of the investment, the dividend rate will be set based on the average annual amount of eligible loans from years 2 to 10 compared to the basic eligible loans. Dividends will be payable quarterly in arrears on March 15, June 15, September 15 and December 15.
The Series C Preferred Shares are redeemable at the Company’s option on or after the fifth anniversary of issue (or earlier in the event of loss of regulatory capital treatment), subject to regulatory approval. appropriate federal banking regulations and in accordance with federal bank agency regulatory capital regulations.
Established by the Consolidated Appropriations Act of 2021, ECIP was created to encourage low- and moderate-income community financial institutions and minority depository institutions to provide loans, grants and forbearance to small businesses, minority-owned businesses and consumers, especially low-income consumers. -income and underserved communities, including counties with persistent poverty, which may be disproportionately impacted by the economic effect of the COVID-19 pandemic by providing direct and indirect capital investments in community financial institutions low and moderate income.
About PCB Bancorp
PCB Bancorp is the bank holding company of Pacific City Bank, a chartered bank in the State of California, providing a full range of commercial banking services to small and medium-sized businesses, individuals and professionals, primarily in Southern California, and primarily in Korean-American and other minority communities.