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IN ACCORDANCE WITH RULE 202 OF REGULATION S-T, THIS FORM 10-QSB IS BEING
FILED IN PAPER PURSUANT TO A CONTINUING HARDSHIP EXEMPTION

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2003

Commission File No. 33-4984

PCB BANCORP, INC.

(Exact Name of Registrant as Specified in its Charter)


Tennessee
    
    62-1641671(State or other jurisdiction of incorporation)
    
    (I.R.S. Employer Identification Number)300 Sunset Dr : Johnson City, Tennessee
    
    37604(Address of Principal Executive Office)
    
    (Zip Code)


(423) 915-2232




(Issuers Telephone Number Including Area Code)


Securities Registered Pursuant to Section 12(b) or 12(g) of the Act:

None




Indicate by the check mark whether the Issuer: (1) has filed all reports required by Section 13 or 15 (d)of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   þ     No

842,600

(Outstanding shares of the issuers common stock as of September 30, 2003)


Transitional Small Business Disclosure Format

Yes        No  þ





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PCB BANCORP, INC.

FINANCIAL STATEMENTS

WITH

ACCOUNTANTS REVIEW REPORT

For the Quarters Ended September 30, 2003 and 2002





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|                                                           |  |  |  |  |  |  |  | 
|---------------------------------------------------------- |  |  |  |  |  |  |  | 
|ACCOUNTANTS REVIEW REPORT                                
|CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION            
|CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)             
|CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)             
|CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
|CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)         
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS            
|EX-31.1 SECTION 302 CERTIFICATION OF CEO                  
|EX-31.2 SECTION 302 CERTIFICATION OF CFO                  
|EX-32.1 SECTION 906 CERTIFICATION OF CEO & CFO            



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##### Table of Contents



PCB BANCORP, INC.
September 30, 2003 and 2002

INDEX

PageNumberAccountants Review Report
    
    
    1Consolidated Statements of Financial Condition
    
    
    2Consolidated Statements of Income
    
    
    3Consolidated Statements of Changes in Shareholders Equity
    
    
    5Consolidated Statements of Cash Flows
    
    
    6Notes to the Consolidated Financial Statements
    
    
    8






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##### Table of Contents






ACCOUNTANTS REVIEW REPORT

To the Board of Directors
PCB Bancorp, Inc.
Johnson City, TN 37602

We have reviewed the accompanying consolidated statement of financial condition
of PCB Bancorp, Inc. and wholly-owned subsidiary as of September 30, 2003 and
the related consolidated statement of changes in shareholders equity for the
nine months ended September 30, 2003 and the consolidated statements of income
for the three and nine months ended September 30, 2003 and 2002 and the
consolidated statements of cash flows for the nine months ended September 30,
2003 and 2002 in accordance with Statements on Standards for Accounting and
Review Services issued by the American Institute of Certified Public
Accountants. All information in these consolidated financial statements is the
representation of the management of PCB Bancorp, Inc.

A review consists principally of inquiries of Company personnel and analytical
procedures applied to financial data. It is substantially less in scope than
an audit in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the consolidated
financial statements taken as a whole. Accordingly, we do not express such an
opinion.

Based on our reviews, we are not aware of any material modifications that
should be made to the accompanying consolidated financial statements for them
to be in conformity with accounting principles generally accepted in the United
States of America.

The consolidated financial statements for the year ended December 31, 2002 were
audited by us and we expressed an unqualified opinion on them in our report
dated February 21, 2003, but we have not performed any auditing procedures
since that date.

BLACKBURN, CHILDERS & STEAGALL, PLC
JOHNSON CITY, TENNESSEEOctober 20, 2003






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PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

September 30,
    
    December 31,2003
    
    2002(unaudited)ASSETSCash and Due from Banks
    
    $
    7,227,541
    
    
    
    7,836,372Federal Funds Sold
    
    
    13,706,000
    
    
    
    209,000Securities Held-to-Maturity
    
    
    625,796
    
    
    
    1,000,000Securities Available-for-Sale
    
    
    21,693,229
    
    
    
    27,728,986Loans Held for Sale
    
    
    1,020,851
    
    
    
    2,431,423Loans Receivable, Net of Allowance for Loan
Losses and Deferred Loan Origination Fees
    
    
    121,832,113
    
    
    
    108,818,305Interest Receivable
    
    
    699,992
    
    
    
    681,609Premises and Equipment, Net of Accumulated Depreciation
    
    
    3,332,642
    
    
    
    2,863,775Restricted Investments
    
    
    1,122,200
    
    
    
    484,400Deferred Tax Asset
    
    
    310,395
    
    
    
    39,905Other Assets
    
    
    429,403
    
    
    
    205,323Total Assets
    
    $
    172,000,162
    
    
    
    152,299,098LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIES:Deposits:Demand Deposits
    
    $
    16,501,701
    
    
    
    16,810,677Savings and NOW Deposits
    
    
    105,960,926
    
    
    
    92,583,818Other Time Deposits
    
    
    27,002,214
    
    
    
    21,507,028Federal Funds Purchased
    
    
    
    
    
    
    875,000Interest Payable
    
    
    109,564
    
    
    
    110,587Dividend Payable
    
    
    84,260
    
    
    
    82,910Line of Credit
    
    
    7,189,372
    
    
    
    6,000,000Deferred Revenue
    
    
    31,632
    
    
    
    Accounts Payable and Other Liabilities
    
    
    1,332,235
    
    
    
    1,807,153Total Liabilities
    
    
    158,211,904
    
    
    
    139,777,173SHAREHOLDERS EQUITY:Common Stock  $1 par value; 3,000,000 shares authorized;
842,600 and 829,100 shares issued and outstanding
at 9/30/03, and 12/31/02, respectively
    
    
    842,600
    
    
    
    829,100Additional Paid-in Capital
    
    
    7,613,800
    
    
    
    7,492,300Retained Earnings
    
    
    4,985,208
    
    
    
    3,625,075Accumulated Other Comprehensive Income
    
    
    346,650
    
    
    
    575,450Total Shareholders Equity
    
    
    13,788,258
    
    
    
    12,521,925Total Liabilities and Shareholders Equity
    
    $
    172,000,162
    
    
    
    152,299,098


See Accompanying Notes and Accountants Review Report.

2



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##### Table of Contents






PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

The Three Months Ended
    
    The Nine Months EndedSeptember 30,
    
    September 30,
    
    September 30,
    
    September 30,2003
    
    2002
    
    2003
    
    2002INTEREST INCOME:Interest on Loans
    
    $
    1,924,154
    
    
    
    1,795,227
    
    
    
    5,643,328
    
    
    
    5,093,379Interest on Investments
    
    
    241,718
    
    
    
    339,139
    
    
    
    804,778
    
    
    
    1,008,098Interest on Federal Funds Sold
    
    
    26,346
    
    
    
    12,468
    
    
    
    48,422
    
    
    
    69,709Total Interest Income
    
    
    2,192,218
    
    
    
    2,146,834
    
    
    
    6,496,528
    
    
    
    6,171,186INTEREST EXPENSE:Interest on Interest Bearing Checking Accounts
    
    
    17,580
    
    
    
    23,993
    
    
    
    63,581
    
    
    
    67,511Interest on Money Market Accounts
    
    
    302,884
    
    
    
    359,143
    
    
    
    926,205
    
    
    
    989,645Interest on Passbook Accounts
    
    
    117,020
    
    
    
    192,090
    
    
    
    392,003
    
    
    
    536,897Interest on Certificates of Deposit
    
    
    161,640
    
    
    
    152,569
    
    
    
    457,383
    
    
    
    595,356Interest on Other Borrowed Funds
    
    
    80,051
    
    
    
    73,576
    
    
    
    234,910
    
    
    
    219,555Total Interest Expense
    
    
    679,175
    
    
    
    801,371
    
    
    
    2,074,082
    
    
    
    2,408,964Net Interest Income
    
    
    1,513,043
    
    
    
    1,345,463
    
    
    
    4,422,446
    
    
    
    3,762,222Provision for Loan Losses
    
    
    161,358
    
    
    
    173,385
    
    
    
    486,151
    
    
    
    206,634Net Interest Income after Provision for Loan Losses
    
    
    1,351,685
    
    
    
    1,172,078
    
    
    
    3,936,295
    
    
    
    3,555,588NON-INTEREST INCOME:Service Charges
    
    
    96,093
    
    
    
    99,115
    
    
    
    310,287
    
    
    
    301,019Loan Origination Fees
    
    
    420,853
    
    
    
    166,758
    
    
    
    889,057
    
    
    
    544,365Net Realized Gain on Sales and Calls of Securities
    
    
    39,033
    
    
    
    
    
    
    
    238,282
    
    
    
    10,046Miscellaneous Income
    
    
    (433
    )
    
    
    153
    
    
    
    34,158
    
    
    
    1,110Total Non-Interest Income
    
    
    555,546
    
    
    
    266,026
    
    
    
    1,471,784
    
    
    
    856,540


(Continued)

3



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##### Table of Contents






PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

The Three Months Ended
    
    The Nine Months EndedSeptember 30,
    
    September 30,
    
    September 30,
    
    September 30,2003
    
    2002
    
    2003
    
    2002NON-INTEREST EXPENSE:Personnel
    
    
    642,353
    
    
    
    510,343
    
    
    
    1,849,729
    
    
    
    1,496,532Occupancy Expense
    
    
    100,318
    
    
    
    84,767
    
    
    
    300,461
    
    
    
    218,324Equipment Expense
    
    
    122,385
    
    
    
    109,264
    
    
    
    317,664
    
    
    
    318,908Professional Fees
    
    
    57,046
    
    
    
    35,375
    
    
    
    148,706
    
    
    
    122,883Marketing Expense
    
    
    18,713
    
    
    
    18,693
    
    
    
    64,296
    
    
    
    57,964Other Operating Expense
    
    
    168,957
    
    
    
    188,173
    
    
    
    458,693
    
    
    
    514,952Total Non-Interest Expenses
    
    
    1,109,772
    
    
    
    946,615
    
    
    
    3,139,549
    
    
    
    2,729,563Income Before Taxes
    
    
    797,459
    
    
    
    491,489
    
    
    
    2,268,530
    
    
    
    1,682,565INCOME TAX PROVISION:Income Tax Expense
    
    
    168,933
    
    
    
    147,198
    
    
    
    657,117
    
    
    
    444,670Net Income
    
    $
    628,526
    
    
    
    344,291
    
    
    
    1,611,413
    
    
    
    1,237,895Net Income per Share-Basic
    
    $
    .75
    
    
    
    .42
    
    
    
    1.93
    
    
    
    1.50Net Income per Share-Assuming Dilution
    
    $
    .71
    
    
    
    .39
    
    
    
    1.84
    
    
    
    1.40


See Accompanying Notes and Accountants Review
Report.

4



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##### Table of Contents






PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY

AccumulatedAdditional
    
    
    
    
    
    OtherCommon
    
    Paid-in
    
    Retained
    
    ComprehensiveStock
    
    Capital
    
    Earnings
    
    Income
    
    TotalBalances, January 1, 2002
    
    $
    827,500
    
    
    
    7,474,500
    
    
    
    2,344,632
    
    
    
    121,835
    
    
    
    10,768,467COMPREHENSIVE INCOME:Net Income
    
    
    
    
    
    
    
    
    
    
    1,562,049
    
    
    
    
    
    
    
    1,562,049Other Comprehensive IncomeNet
of Tax:Change In Unrealized
Gain (Loss) on Securities
Available-For-Sale, Net
of Deferred Income Tax
of $302,410
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    453,615
    
    
    
    453,615Total Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,015,664Stock Option Exercised
    
    
    1,600
    
    
    
    17,800
    
    
    
    
    
    
    
    
    
    
    
    19,400Cash Dividends
    
    
    
    
    
    
    
    
    
    
    (281,606
    )
    
    
    
    
    
    
    (281,606
    )Balances, December 31, 2002
    
    $
    829,100
    
    
    
    7,492,300
    
    
    
    3,625,075
    
    
    
    575,450
    
    
    
    12,521,925COMPREHENSIVE INCOME (UNAUDITED):Net Income
    
    
    
    
    
    
    
    
    
    
    1,611,413
    
    
    
    
    
    
    
    1,611,413Other Comprehensive IncomeNet
of Tax:Change in Unrealized
Gain (Loss) on Securities
Available-For-Sale, Net
of Deferred Income Tax
of $(152,533)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (228,800
    )
    
    
    (228,800
    )Total Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,382,613Stock Options Exercised
    
    
    13,500
    
    
    
    121,500
    
    
    
    
    
    
    
    
    
    
    
    135,000Cash Dividends
    
    
    
    
    
    
    
    
    
    
    (251,280
    )
    
    
    
    
    
    
    (251,280
    )Balances, September 30, 2003
    
    $
    842,600
    
    
    
    7,613,800
    
    
    
    4,985,208
    
    
    
    346,650
    
    
    
    13,788,258


See Accompanying Notes and Accountants Review Report.

5



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##### Table of Contents






PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

The Nine Months EndedSeptember 30, 2003
    
    September 30, 2002CASH FLOWS FROM OPERATING ACTIVITIES:Net Income
    
    $
    1,611,413
    
    
    
    1,237,895Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:Depreciation Expense
    
    
    212,397
    
    
    
    218,669Realized (Gain) Loss on Sale of Other Real Estate Owned
    
    
    
    
    
    
    26,480Unrealized Impairment Loss on Other Real Estate Owned
    
    
    20,000
    
    
    
    38,728Provision for Loan Losses
    
    
    486,151
    
    
    
    206,634Discount Accretion Net of Premium Amortization
    
    
    3,588
    
    
    
    (27,104
    )Origination of Mortgage Loans Held for Sale
    
    
    (35,709,375
    )
    
    
    (19,216,957
    )Proceeds from Mortgage Loans Sold
    
    
    37,119,947
    
    
    
    18,632,755Net Realized (Gains) Losses on Sales and Calls of Securities
    
    
    (238,282
    )
    
    
    (10,046
    )Net Realized (Gain) Loss on Sale of Fixed Assets
    
    
    479
    
    
    
    Deferred Income Tax
    
    
    (117,958
    )
    
    
    (189,456
    )(Increase) Decrease in Assets:Interest Receivable
    
    
    (18,383
    )
    
    
    (100,837
    )Other Assets
    
    
    (224,080
    )
    
    
    587,924Increase (Decrease) in Liabilities:Interest Payable
    
    
    (1,023
    )
    
    
    (68,740
    )Deferred Revenue
    
    
    31,632
    
    
    
    Accounts Payable and Other Liabilities
    
    
    (474,918
    )
    
    
    (1,070,099
    )Net Cash Provided by (Used for) Operating Activities
    
    
    2,701,588
    
    
    
    265,846CASH FLOWS FROM INVESTING ACTIVITIES:Net (Increase) Decrease in Federal Funds Sold
    
    
    (13,497,000
    )
    
    
    1,879,000Purchases of Available-for-Sale Securities
    
    
    (8,537,196
    )
    
    
    (11,197,791
    )Purchases of Held to Maturity Securities
    
    
    (652,647
    )
    
    
    Proceeds from Sales, Maturities and Calls
of Available-For-Sale Securities
    
    
    12,958,827
    
    
    
    5,039,464Principal Payments Received on Mortgage Backed Securities
    
    
    2,474,339
    
    
    
    1,619,430Purchases of Restricted Investments
    
    
    (637,800
    )
    
    
    (61,800
    )Purchases of Premises and Equipment
    
    
    (691,693
    )
    
    
    (110,635
    )Proceeds from Sale of Fixed Assets
    
    
    9,950
    
    
    
    Loan Participations Bought
    
    
    (5,623,646
    )
    
    
    (2,719,212
    )Loan Participations Sold
    
    
    350,000
    
    
    
    8,460,000Proceeds from Sale of Foreclosed Property
    
    
    
    
    
    
    727,000Net Increase in Loans
    
    
    (8,226,313
    )
    
    
    (21,235,399
    )Net Cash Used for Investing Activities
    
    
    (22,073,179
    )
    
    
    (17,599,943
    )


(Continued)

6



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PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

The Nine Months EndedSeptember 30, 2003
    
    September 30, 2002CASH FLOWS FROM FINANCING ACTIVITIES:Dividends Paid
    
    
    (249,930
    )
    
    
    (198,648
    )Stock Option Exercised
    
    
    135,000
    
    
    
    9,400Net Increase in Deposits
    
    
    18,563,318
    
    
    
    17,476,701Net Decrease in Federal Funds Purchased
    
    
    (875,000
    )
    
    
    Proceeds from Line of Credit
    
    
    1,200,000
    
    
    
    Payments on Line of Credit
    
    
    (10,628
    )
    
    
    Net Cash Provided by Financing Activities
    
    
    18,762,760
    
    
    
    17,287,453Increase (Decrease) in Cash and Cash Equivalents
    
    
    (608,831
    )
    
    
    (46,644
    )Cash and Cash Equivalents, Beginning of Year
    
    
    7,836,372
    
    
    
    6,040,810Cash and Cash Equivalents, End of Period
    
    $
    7,227,541
    
    
    
    5,994,166SUPPLEMENTAL DISCLOSURES:Cash Paid during the Period for Interest
    
    $
    2,075,105
    
    
    
    2,477,704Cash Paid during the Period for Income Taxes
    
    $
    674,875
    
    
    
    532,849


See Accompanying Notes and Accountants Review Report.

7



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##### Table of Contents






PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES:

The accompanying consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United States
of America for interim financial information and with the instruction to Form
10-QSB. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the nine month period ended September 30, 2003
are not necessarily indicative of the results that may be expected for the year
ended December 31, 2003. The significant accounting policies disclosed in the
December 31, 2002 audited financial statements have been consistently followed.
For further information, refer to the consolidated financial statements and
footnotes thereto included in the Companys Annual Report on Form 10-KSB for
the year ended December 31, 2002.

NOTE 2. FINANCIAL STATEMENT PRESENTATION

Certain amounts in the September 30, 2002 financial statements have been
reclassified to conform to the September 30, 2003 presentation.

8



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##### Table of Contents



PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3. INVESTMENTS:

The amortized costs of securities and their approximate fair values are as
follows:

September 30, 2003 (unaudited)
    
    December 31, 2002Gross
    
    Gross
    
    
    
    
    
    
    
    
    
    Gross
    
    GrossAmortized
    
    Unrealized
    
    Unrealized
    
    
    
    
    
    Amortized
    
    Unrealized
    
    UnrealizedCost
    
    Gains
    
    Losses
    
    Fair Value
    
    Cost
    
    Gains
    
    Losses
    
    Fair ValueAvailable-for-SaleU.S. Government
Federal Agencies
    
    $
    6,697,056
    
    
    
    51,434
    
    
    
    103,281
    
    
    
    6,645,209
    
    
    
    8,731,687
    
    
    
    158,518
    
    
    
    1,400
    
    
    
    8,888,805State and Municipal
Governments
    
    
    12,703,280
    
    
    
    616,918
    
    
    
    36,018
    
    
    
    13,284,180
    
    
    
    11,775,675
    
    
    
    510,017
    
    
    
    1,886
    
    
    
    12,283,806Corporate Securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    518,372
    
    
    
    25,678
    
    
    
    
    
    
    
    544,050Mortgage-Backed
Securities
    
    
    1,709,489
    
    
    
    58,840
    
    
    
    4,489
    
    
    
    1,763,840
    
    
    
    5,744,170
    
    
    
    268,155
    
    
    
    
    
    
    
    6,012,325Total Available-for-Sale
    
    
    21,109,825
    
    
    
    727,192
    
    
    
    143,788
    
    
    
    21,693,229
    
    
    
    26,769,904
    
    
    
    962,368
    
    
    
    3,286
    
    
    
    27,728,986Held-to-MaturityState and Municipal
Governments
    
    
    625,796
    
    
    
    
    
    
    
    4,404
    
    
    
    621,392
    
    
    
    1,000,000
    
    
    
    2,314
    
    
    
    
    
    
    
    1,002,314Total Held-to-Maturity
    
    
    625,796
    
    
    
    
    
    
    
    4,404
    
    
    
    621,392
    
    
    
    1,000,000
    
    
    
    2,314
    
    
    
    
    
    
    
    1,002,314Total Investment
Securities
    
    $
    21,735,621
    
    
    
    727,192
    
    
    
    148,192
    
    
    
    22,314,621
    
    
    
    27,769,904
    
    
    
    964,682
    
    
    
    3,286
    
    
    
    28,731,300


The amortized cost and market value of debt securities at December 31, 2002, by
contractual maturity, are shown below. Expected maturities will differ from
contractual maturities because borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties.

Held-to-Maturity
    
    Available-for-SaleAmortized
    
    Fair
    
    Amortized
    
    FairCost
    
    Value
    
    Cost
    
    ValueAmounts maturing in:One year or less
    
    $
    
    
    
    
    
    
    
    
    1,455,547
    
    
    
    1,469,913After one year through five years
    
    
    
    
    
    
    
    
    
    
    5,973,561
    
    
    
    6,156,485After five years through ten years
    
    
    
    
    
    
    
    
    
    
    7,304,082
    
    
    
    7,610,171After ten years
    
    
    1,000,000
    
    
    
    1,002,314
    
    
    
    6,292,544
    
    
    
    6,480,092Mortgage-Backed Securities
    
    
    
    
    
    
    
    
    
    
    5,744,170
    
    
    
    6,012,325$
    1,000,000
    
    
    
    1,002,314
    
    
    
    26,769,904
    
    
    
    27,728,986


Accrued interest on investments at September 30, 2003 and December 31, 2002 was
$279,501 and $250,994 respectively. During the nine months ended September 30,
2003 and the year ended December 31, 2002 the bank received $12,958,827 and
$6,138,347 proceeds from sales and calls of securities with a carrying value
based on historical cost and adjusted for amortization of premiums and
accretion of discounts of $12,720,545 and $6,115,564 resulting in a realized
gain of $238,282 and $22,783 on sales and calls of securities, respectively.

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##### Table of Contents



PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4. LOANS RECEIVABLE:

Loans are summarized as follows:

September 30, 2003
    
    December 31,(unaudited)
    
    2002Commercial
    
    $
    27,814,949
    
    
    
    27,903,470Residential Real Estate
    
    
    24,088,533
    
    
    
    20,388,409Non Residential Real Estate
    
    
    58,704,117
    
    
    
    46,824,648Installment
    
    
    12,259,356
    
    
    
    14,660,968Consumer
    
    
    546,912
    
    
    
    515,787Other
    
    
    229,605
    
    
    
    198,703123,643,472
    
    
    
    110,491,985Allowance for Loan Losses
    
    
    (1,546,952
    )
    
    
    (1,424,928
    )Net Deferred Loan Origination Fees
    
    
    (264,407
    )
    
    
    (248,752
    )$
    121,832,113
    
    
    
    108,818,305


An analysis of the change in the allowance for loan losses follows:

September 30, 2003
    
    December 31,(unaudited)
    
    2002Balance at Beginning of Period
    
    $
    1,424,928
    
    
    
    1,116,566Provision for Loan Losses
    
    
    486,151
    
    
    
    511,634Loans Charged Off
    
    
    (366,059
    )
    
    
    (218,596
    )Recoveries on Loans
    
    
    1,932
    
    
    
    15,324Balance at End of Period
    
    $
    1,546,952
    
    
    
    1,424,928


A summary of loans by estimated maturity as of December 31, 2002 is as follows:

Maturity within one year
    $
    56,121,068One to five years
    
    52,353,312Over five years
    
    2,017,605$
    110,491,985


Accrued interest receivable on loans at September 30, 2003 and December 31,
2002 was $420,491 and $430,615, respectively.

At December 31, 2002, the total recorded investment in loans on nonaccrual
amounted to $928,129 and the total recorded investment in loans past due ninety
days or more and still accruing interest amounted to approximately $94,190. At
December 31, 2002, the total recorded investment in impaired loans amounted to
$0. The amount of the recorded investment in impaired loans for which there is
no related allowance for credit loss is classified as substandard and is $0.
The amount of any cash receipts is applied to principal on impaired loans.
Interest income in the amount of $0 was recognized for cash receipts during
2002. The entire amount of the impaired loan was written off as a bad debt
during 2002.

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##### Table of Contents



PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4. LOANS RECEIVABLE (CONTINUED):

The Bank has no commitments to loan additional funds to borrowers whose loans
have been modified.

The Bank services loans for others of $12,503,772 at December 31, 2002 under
loan participation agreements. The Bank receives no fees for servicing these
loans and no fees have been received in connection with the origination of the
loan participation agreements.

In the ordinary course of business, the Bank has and expects to continue to
have transactions, including borrowings, with certain of its officers,
executive directors, significant stockholders and their affiliates. In the
opinion of management, such transactions were on substantially the same terms,
including interest rates and collateral, as those prevailing at the time of
comparable transactions with other persons and did not involve more than a
normal risk of collectibility or present any other unfavorable features to the
Bank. Loans to such borrowers at December 31, 2002 were $0. During 2002,
there were additional loans to such related parties in the amount of $0 and
repayments amounted to $237,345.

NOTE 5. EARNINGS PER SHARE:

FOR THE PERIOD ENDEDSeptember 30, 2003
    
    September 30, 2002(unaudited)
    
    (unaudited)Weighted-Average
    
    
    
    
    
    
    
    
    
    Weighted-AverageIncome
    
    Shares
    
    Per-Share
    
    Income
    
    Shares
    
    Per-Share(Numerator)
    
    (Denominator)
    
    Amount
    
    (Numerator)
    
    (Denominator)
    
    AmountNet Income
    
    $
    1,611,413
    
    
    
    
    
    
    
    
    
    
    
    1,237,895
    
    
    
    
    
    
    
    Basic EPSIncome Available to
Common Stockholders
    
    
    1,611,413
    
    
    
    834,994
    
    
    
    1.93
    
    
    
    1,237,895
    
    
    
    827,902
    
    
    
    1.50Effect of Dilutive OptionsStock Options(using the Treasury Stock
Method)
    
    
    
    
    
    
    42,348
    
    
    
    
    
    
    
    
    
    
    
    53,855
    
    
    
    Diluted EPSIncome
Available to Common Stockholders plus
Assumed Exercise of Options
    
    $
    1,611,413
    
    
    
    877,342
    
    
    
    1.84
    
    
    
    1,237,895
    
    
    
    881,757
    
    
    
    1.40


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##### Table of Contents



Financial Condition

Peoples Community Bank (the Bank) represents virtually all of the
assets of PCB Bancorp, Inc. (the Company). The Companys
consolidated results of operations are dependent primarily on net
interest income, which is the difference between the interest income
earned on interest-earning assets, such as loans and investments,
and the interest expense incurred on interest-bearing liabilities,
such as deposits and other borrowings. The Bank, which was opened
December 15, 1995, has continued to experience growth during the
third quarter of 2003. Total assets have grown $19.7 million or
12.94% since December 31, 2002.

Loans have increased $13.0 million or 11.96% since December 31,
2002, while investment securities have decreased $6.4 million or
22.31% since December 31, 2002.

Nonperforming Assets and Risk Elements.The bank had $757,000 in
nonperforming assets at September 30, 2003. Diversification within
the loan portfolio is an important means of reducing inherent
lending risks. At September 30, 2003, the Bank had no
concentrations of ten percent or more of total loans in any single
industry or in any geographical area outside the immediate market
area of the Bank. At the present time, the Bank has no impaired
loans. The Bank also currently has $82,000 exposure in other real
estate owned.

The Bank discontinues the accrual of interest on loans which become
ninety days past due (principal and/or interest), unless the loans
are adequately secured and in the process of collection. Other real
estate owned is carried up to the fair value, determined by an
appraisal. A loan is classified as a restructured loan when the
interest rate is materially reduced or the term is extended beyond
the original maturity date because of the inability of the borrower
to service the debt under the original terms.

Liquidity and Capital Resources

Liquidity is adequate with cash and due from banks of $7.2 million
as of September 30, 2003. In addition, loans and investment
securities repricing or maturing in one year or less exceeded $66
million at September 30, 2003. The Bank has approximately $9.6
million in unfunded loan commitments. It is not known how much of
this will be funded within the next six months. Other commitments,
primarily standby letters of credit, are approximately $730,000 at
September 30, 2003. The Bank has outside funding sources including
fed fund lines of credit, cash management accounts, and security
repurchase agreements with the Federal Home Loan Bank, Compass Bank,
and Columbus Bank and Trust of Georgia. The amount of funding
available through these agreements totaled $15.9 million with $9.6
million having been drawn as of September 30, 2003. With the
exception of unfunded loan commitments, there are no known trends or
any known commitments or uncertainties that will result in the
Banks liquidity increasing or decreasing in a material way. In
addition, the Company is not aware of any recommendations by any
regulatory authorities that would have a material effect on the
Companys liquidity, capital resources, or results of operations.

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##### Table of Contents



Total equity capital of the Company at September 30, 2003 is $13.8
million or 8.02% of total assets. The Banks capital position is
adequate to meet the minimum capital requirements as of September
30, 2003 for all regulatory agencies. The Banks capital ratios as
of September 30, 2003 are as follows:

Tier 1 capital
    
    
    7.71
    %Tier 2 capital
    
    
    0.91
    %Total risk-based
    
    
    11.47
    %


Results of Operations

The company had net income of $628,526 during the third quarter of
2003 compared to the net income of $344,291 during the third quarter
of 2002, an increase of $284,000 or 82.56% over the same period in
2002 brought about by one-time year to date adjustments to accrue
deferred income taxes to actual in 2003. Net interest income
increased $168,000 or 12.46%. Total non-interest income also
increased $290,000 or 108.83%, largely because of our influx of loan
origination fees from our mortgage department and securities gains
during the third quarter in 2003.

Interest income increased slightly from 2002 to 2003 primarily
because of our growth in loans, while interest expense decreased
because of the general decrease in the interest rates over the past
year. Our Cost/Yield Spread for loans remains strong at 4.26%. The
large increase in non-interest income for the period ending
September 30, 2003 is largely because of the $238,000 gains on the
sales and calls of securities year to date as well as the increase
in loan origination fees generated during the third quarter of 2003.

The provision for loan losses was $486,000 for the first nine months
of 2003 up from $280,000 for the first nine months in 2002. The
allowance for loan losses of $1,547,000 at September 30, 2003
(approximately 1.25% of total loans) is considered to be adequate to
cover losses inherent in the loan portfolio. Management evaluates
the adequacy of the allowance for loan losses monthly and makes
provisions for the loan losses based on this evaluation.

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##### Table of Contents



PART II. OTHER INFORMATION



| |  | Item 1. Legal Proceedings
| |  | -------------------------



| |  |  | None
| |  |  | ----



| |  | Item 2. Changes in Securities
| |  | -----------------------------



| |  |  | None
| |  |  | ----



| |  | Item 3. Default Upon Senior Securities
| |  | --------------------------------------



| |  |  | None
| |  |  | ----



| |  | Item 4. Submission of Matters to a Vote of Security Holders
| |  | -----------------------------------------------------------



| |  |  | None
| |  |  | ----



| |  | Item 5. Other Information
| |  | -------------------------



| |  |  | None
| |  |  | ----



| |  | Item 6. Exhibits and Reports on Form 8-K
| |  | ----------------------------------------



| | (a) |  | Exhibits
| | --- |  | --------



| |  |  | Exhibit 31.1  Certifications pursuant to 18 U.S.C. Section
1350, as adopted pursuant to section 302 of the Sarbanes-Oxley
Act of 2002.
| |  |  | ---------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Exhibit 31.2  Certifications pursuant to 18 U.S.C. Section
1350, as adopted pursuant to section 302 of the Sarbanes-Oxley
Act of 2002.
| |  |  | ---------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Exhibit 32.1  Certifications pursuant to 18 U.S.C. Section
1350, as adopted pursuant to section 906 of the Sarbanes-Oxley
Act of 2002.
| |  |  | ---------------------------------------------------------------------------------------------------------------------------------------



| | (b) |  | Reports on Form 8-K
| | --- |  | -------------------



| |  |  | None
| |  |  | ----

14



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##### Table of Contents



SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.

PCB BANCORP, INC.(Registrant)11/13/03
    
    Phillip R. Carriger(Date)
    
    Phillip R. Carriger, Chairman and Chief Executive Officer
(Principle Executive Officer)11/13/03
    
    Michael Christian(Date)
    
    Michael Christian, President


15