##### Table of Contents



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 March 31, 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 [X]            No [  ]

835,100

---

(Outstanding shares of the issuers common stock as of March 31, 2003)


Transitional Small Business Disclosure Format

Yes [X]            No [  ]





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TABLE OF CONTENTS



|                                                            |                                                |  |  |  |  |  |  | 
|----------------------------------------------------------- | ---------------------------------------------- |  |  |  |  |  |  | 
|                                                            | CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)              
|CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (UNAUDITED)
|CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)          
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS             
|Financial Condition                                        
|PART II. OTHER INFORMATION                                 
|Item 1. Legal Proceedings                                  
|Item 2. Changes in Securities                              
|Item 3. Default Upon Senior Securities                     
|Item 4. Submission of Matters to a Vote of Security Holders
|Item 5. Other Information                                  
|Item 6. Exhibits and Reports on Form 8-K                   
|SIGNATURES                                                 
|SECTION 906 CERTIFICATION OF THE CFO & CEO                 



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##### Table of Contents



PCB BANCORP, INC.

INDEX

Number
    
    
    
    PagePART 1.
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsConsolidated Balance SheetsMarch 31, 2003 (Unaudited) and December 31, 2002
    
    
    2Consolidated Statements of IncomeThree Months ended March 31, 2003 and 2002 (Unaudited)
    
    
    3Three Months ended March 31, 2003 and 2002 (Unaudited)
    
    
    3Consolidated Statement of Shareholders EquityThree Months ended March 31, 2003 (Unaudited)Twelve Months ended December 31, 2002Consolidated Statements of Cash Flows
    
    
    5Three Months Ended March 31, 2003 and 2002 (Unaudited)
    
    
    6Notes to Consolidated Financial Statements (Unaudited)
    
    
    8Item 2.
    
    Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    12PART II.
    
    OTHER INFORMATIONItem 1.
    
    Legal Proceedings
    
    
    14Item 2.
    
    Changes in Securities
    
    
    14Item 3.
    
    Default Upon Senior Securities
    
    
    14Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    14






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##### Table of Contents



PCB BANCORP, INC.

FINANCIAL STATEMENTS

WITH

ACCOUNTANTS REVIEW REPORT

For the Quarters Ended March 31, 2003 and 2002





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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 March 31, 2003 and the
related consolidated statement of changes in shareholders equity, the
consolidated statements of income, and the consolidated statements of cash
flows for the three months ended March 31, 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, TENNESSEE
| | -----------------------------------------------------------

April 28, 2003





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##### Table of Contents



PCB BANCORP, INC.
AND WHOLLY-OWNED SUBSIDIARY




CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


March 31,
    
    December 31,2003
    
    2002(unaudited)ASSETSCash and Due from Banks
    
    $
    8,005,979
    
    
    
    7,836,372Federal Funds Sold
    
    
    4,359,000
    
    
    
    209,000Securities Held-to-Maturity
    
    
    1,000,000
    
    
    
    1,000,000Securities Available-for-Sale
    
    
    22,992,598
    
    
    
    27,728,986Loans Held for Sale
    
    
    1,224,379
    
    
    
    2,431,423Loans Receivable, Net of Allowance for Loan
Losses and Deferred Loan Origination Fees
    
    
    120,782,454
    
    
    
    108,818,305Interest Receivable
    
    
    758,867
    
    
    
    681,609Premises and Equipment, Net of Accumulated Depreciation
    
    
    3,221,415
    
    
    
    2,863,775Restricted Investments
    
    
    1,111,500
    
    
    
    484,400Deferred Tax Asset
    
    
    119,753
    
    
    
    39,905Other Assets
    
    
    250,155
    
    
    
    205,323Total Assets
    
    $
    163,826,100
    
    
    
    152,299,098LIABILITIES AND SHAREHOLDERS EQUITYLIABILITIES:Deposits:Demand Deposits
    
    $
    15,947,615
    
    
    
    16,810,677Savings and NOW Deposits
    
    
    97,698,444
    
    
    
    92,583,818Other Time Deposits
    
    
    22,526,175
    
    
    
    21,507,028Federal Funds Purchased
    
    
    1,500,000
    
    
    
    875,000Interest Payable
    
    
    112,575
    
    
    
    110,587Dividend Payable
    
    
    83,510
    
    
    
    82,910Line of Credit
    
    
    8,800,000
    
    
    
    6,000,000Securities Sold Under Agreement to Repurchase
    
    
    2,000,000
    
    
    
    Accounts Payable and Other Liabilities
    
    
    2,247,626
    
    
    
    1,807,153Total Liabilities
    
    
    150,915,945
    
    
    
    139,777,173SHAREHOLDERS EQUITY:Common Stock  $1 par value; 3,000,000 shares authorized;
835,100 and 829,100 shares issued and outstanding
at 3/31/03, and 12/31/02, respectively
    
    
    835,100
    
    
    
    829,100Additional Paid-in Capital
    
    
    7,546,300
    
    
    
    7,492,300Retained Earnings
    
    
    4,041,490
    
    
    
    3,625,075Accumulated Other Comprehensive Income
    
    
    487,265
    
    
    
    575,450Total Shareholders Equity
    
    
    12,910,155
    
    
    
    12,521,925Total Liabilities and Shareholders Equity
    
    $
    163,826,100
    
    
    
    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 EndedMarch 31,
    
    March 31,2003
    
    2002INTEREST INCOME:Interest on Loans
    
    $
    1,805,655
    
    
    
    1,615,332Interest on Investments
    
    
    327,275
    
    
    
    326,081Interest on Federal Funds Sold
    
    
    6,625
    
    
    
    36,540Total Interest Income
    
    
    2,139,555
    
    
    
    1,977,953INTEREST EXPENSE:Interest on Interest Bearing Checking Accounts
    
    
    24,893
    
    
    
    22,233Interest on Money Market Accounts
    
    
    313,068
    
    
    
    308,431Interest on Passbook Accounts
    
    
    146,419
    
    
    
    165,063Interest on Certificates of Deposit
    
    
    140,625
    
    
    
    253,164Interest on Other Borrowed Funds
    
    
    74,716
    
    
    
    73,650Total Interest Expense
    
    
    699,721
    
    
    
    822,541Net Interest Income
    
    
    1,439,834
    
    
    
    1,155,412Provision for Loan Losses
    
    
    117,793
    
    
    
    46,300Net Interest Income after Provision for Loan Losses
    
    
    1,322,041
    
    
    
    1,109,112NON-INTEREST INCOME:Service Charges
    
    
    108,332
    
    
    
    92,337Loan Origination Fees
    
    
    207,000
    
    
    
    169,891Net Realized Gains on Sales and Calls of Securities
    
    
    79,574
    
    
    
    Miscellaneous Income
    
    
    35,473
    
    
    
    118Total Non-Interest Income
    
    
    430,379
    
    
    
    262,346NON-INTEREST EXPENSES:Salaries
    
    
    509,905
    
    
    
    416,620Payroll Taxes
    
    
    45,597
    
    
    
    36,229Employee Benefits
    
    
    44,214
    
    
    
    40,640Occupancy Expense
    
    
    38,430
    
    
    
    22,989Rental Expense
    
    
    20,584
    
    
    
    8,100Furniture and Equipment Expense
    
    
    3,872
    
    
    
    4,590


(Continued)

3



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##### Table of Contents



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

The Three Months EndedMarch 31,
    
    March 31,2003
    
    2002NON-INTEREST EXPENSES (Continued):Computer Equipment Expense
    
    
    18,560
    
    
    
    19,551Stationery, Supplies and Printing
    
    
    33,251
    
    
    
    20,978Postage, Express and Freight
    
    
    22,806
    
    
    
    22,570Telephone Expense
    
    
    24,365
    
    
    
    16,932Vehicle Expense
    
    
    6,615
    
    
    
    5,648Outside Services
    
    
    58,193
    
    
    
    53,014Teller Over and Short
    
    
    46
    
    
    
    279Advertising and Promotion
    
    
    24,144
    
    
    
    23,148Loan Collection Expense
    
    
    8,201
    
    
    
    34,594Bank Security and Protection
    
    
    2,486
    
    
    
    976FDIC Assessment
    
    
    5,277
    
    
    
    4,761Insurance
    
    
    15,102
    
    
    
    12,925Dues and Subscriptions
    
    
    5,523
    
    
    
    5,066Franchise Tax Expense
    
    
    8,071
    
    
    
    7,250Refunds and Reimbursements
    
    
    2,015
    
    
    
    2,103Travel and Meetings
    
    
    466
    
    
    
    1,085Contributions
    
    
    1,645
    
    
    
    2,525Depreciation
    
    
    58,919
    
    
    
    71,822Directors Fees
    
    
    14,850
    
    
    
    14,200Miscellaneous Expenses
    
    
    17,839
    
    
    
    15,685Net Realized Loss on Sale of
Other Real Estate Owned
    
    
    
    
    
    
    2,363Net Unrealized Impairment Loss on
Other Real Estate Owned
    
    
    20,000
    
    
    
    Total Non-Interest Expenses
    
    
    1,010,976
    
    
    
    866,643Income Before Taxes
    
    
    741,444
    
    
    
    504,815INCOME TAX PROVISION:Income Tax Expense
    
    
    241,519
    
    
    
    124,688Net Income
    
    $
    499,925
    
    
    
    380,127Net Income per Share  Basic
    
    $
    .60
    
    
    
    .46Net Income per Share  Assuming Dilution
    
    $
    .57
    
    
    
    .43


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 SHAREHOLDERS EQUITY (UNAUDITED)


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 Income
Net 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:Net Income
    
    
    
    
    
    
    
    
    
    
    499,925
    
    
    
    
    
    
    
    499,925Other Comprehensive Income
Net of Tax:Change in Unrealized
Gain (Loss) on Securities
Available-For-Sale, Net
of Deferred Income Tax
of $(58,789)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (88,185
    )
    
    
    (88,185
    )Total Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    411,740Stock Options Exercised
    
    
    6,000
    
    
    
    54,000
    
    
    
    
    
    
    
    
    
    
    
    60,000Cash Dividends
    
    
    
    
    
    
    
    
    
    
    (83,510
    )
    
    
    
    
    
    
    (83,510
    )Balances, March 31, 2003
    
    $
    835,100
    
    
    
    7,546,300
    
    
    
    4,041,490
    
    
    
    487,265
    
    
    
    12,910,155


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 Three Months EndedMarch 31, 2003
    
    March 31, 2002CASH FLOWS FROM OPERATING ACTIVITIES:Net Income
    
    $
    499,925
    
    
    
    380,127Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:Depreciation Expense
    
    
    58,919
    
    
    
    71,822Unrealized Impairment Loss on Other
Real Estate Owned
    
    
    20,000
    
    
    
    Provision for Loan Losses
    
    
    117,793
    
    
    
    46,300Discount Accretion Net of Premium Amortization
    
    
    (3,526
    )
    
    
    (19,401
    )Origination of Mortgage Loans Held for Sale
    
    
    (8,297,300
    )
    
    
    (6,470,683
    )Proceeds from Mortgage Loans Sold
    
    
    9,504,344
    
    
    
    6,403,506Net Realized (Gains) Losses on Sales and Calls of Securities
    
    
    (79,574
    )
    
    
    Deferred Income Tax
    
    
    (21,059
    )
    
    
    (33,985
    )(Increase) Decrease in Assets:Interest Receivable
    
    
    (77,258
    )
    
    
    (101,749
    )Other Assets
    
    
    (44,832
    )
    
    
    61,473Increase (Decrease) in Liabilities:Interest Payable
    
    
    1,988
    
    
    
    (39,672
    )Accounts Payable and Other Liabilities
    
    
    440,473
    
    
    
    (949,963
    )Net Cash Provided by (Used for) Operating Activities
    
    
    2,119,893
    
    
    
    (652,225
    )CASH FLOWS FROM INVESTING ACTIVITIES:Net (Increase) Decrease in Federal Funds Sold
    
    
    (4,150,000
    )
    
    
    (2,443,000
    )Purchases of Available-for-Sale Securities
    
    
    (2,093,089
    )
    
    
    (3,509,600
    )Proceeds from Sale, Maturities and Calls of
Available-For-Sale Securities
    
    
    5,843,000
    
    
    
    Principal Payments Received on Mortgage Backed Securities
    
    
    901,223
    
    
    
    631,051Purchases of Restricted Investments
    
    
    (627,100
    )
    
    
    (3,700
    )Purchases of Premises and Equipment
    
    
    (415,179
    )
    
    
    (48,850
    )Loan Participations Bought
    
    
    (3,572,847
    )
    
    
    (1,089,995
    )Loan Participations Sold
    
    
    
    
    
    
    4,350,000Proceeds from Sale of Foreclosed Property
    
    
    
    
    
    
    125,000Net Increase in Loans
    
    
    (8,509,095
    )
    
    
    (7,096,361
    )Net Cash Used for Investing Activities
    
    
    (12,623,087
    )
    
    
    (9,085,455
    )


(Continued)

6



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##### Table of Contents



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

The Three Months EndedMarch 31, 2003
    
    March 31, 2002CASH FLOWS FROM FINANCING ACTIVITIES:Dividends Paid
    
    
    (82,910
    )
    
    
    (66,200
    )Stock Options Exercised
    
    
    60,000
    
    
    
    Net Increase in Federal Funds Purchased
    
    
    625,000
    
    
    
    Net Increase in Deposits
    
    
    5,270,711
    
    
    
    9,802,732Proceeds from Line of Credit
    
    
    2,800,000
    
    
    
    Securities Sold Under Agreement to Repurchase
    
    
    2,000,000
    
    
    
    Net Cash Provided by Financing Activities
    
    
    10,672,801
    
    
    
    9,736,532Increase (Decrease) in Cash and Cash Equivalents
    
    
    169,607
    
    
    
    (1,148
    )Cash and Cash Equivalents, Beginning of Year
    
    
    7,836,372
    
    
    
    6,040,810Cash and Cash Equivalents, End of Period
    
    $
    8,005,979
    
    
    
    6,039,662SUPPLEMENTAL DISCLOSURES:Cash Paid During the Period for Interest
    
    $
    697,733
    
    
    
    859,689Cash Paid During the Period for Income Taxes
    
    $
    121,101
    
    
    
    183,031


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 generally accepted accounting principles 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 three month period ended March 31, 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 March 31, 2002 financial statements have been
reclassified to conform to the March 31, 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:

March 31, 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
    
    $
    3,742,310
    
    
    
    60,180
    
    
    
    10,797
    
    
    
    3,791,693
    
    
    
    8,731,687
    
    
    
    158,518
    
    
    
    1,400
    
    
    
    8,888,805State and Municipal
Governments
    
    
    13,077,235
    
    
    
    523,257
    
    
    
    17,142
    
    
    
    13,583,350
    
    
    
    11,775,675
    
    
    
    510,017
    
    
    
    1,886
    
    
    
    12,283,806Corporate Securities
    
    
    516,879
    
    
    
    25,921
    
    
    
    
    
    
    
    542,800
    
    
    
    518,372
    
    
    
    25,678
    
    
    
    
    
    
    
    544,050Mortgage-Backed
Securities
    
    
    4,844,066
    
    
    
    230,689
    
    
    
    
    
    
    
    5,074,755
    
    
    
    5,744,170
    
    
    
    268,155
    
    
    
    
    
    
    
    6,012,325Total Available-for-Sale
    
    
    22,180,490
    
    
    
    840,047
    
    
    
    27,939
    
    
    
    22,992,598
    
    
    
    26,769,904
    
    
    
    962,368
    
    
    
    3,286
    
    
    
    27,728,986Held-to-MaturityState and Municipal
Governments
    
    
    1,000,000
    
    
    
    1,250
    
    
    
    
    
    
    
    1,001,250
    
    
    
    1,000,000
    
    
    
    2,314
    
    
    
    
    
    
    
    1,002,314Total Held-to-Maturity
    
    
    1,000,000
    
    
    
    1,250
    
    
    
    
    
    
    
    1,001,250
    
    
    
    1,000,000
    
    
    
    2,314
    
    
    
    
    
    
    
    1,002,314Total Investment
Securities
    
    $
    23,180,490
    
    
    
    841,297
    
    
    
    27,939
    
    
    
    23,993,848
    
    
    
    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 March 31, 2003 and December 31, 2002 was
$301,003 and $250,994 respectively. During the three months ended March 31,
2003 and the year ended December 31, 2002 the bank received $5,843,000 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 $5,763,426 and $6,115,564 resulting in a realized
gain of $79,574 and $22,783 on sales and calls of securities, respectively.

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

NOTE 4.   LOANS RECEIVABLE:

Loans are summarized as follows:

March 31, 2003
    
    December 31,(unaudited)
    
    2002Commercial
    
    $
    28,848,333
    
    
    
    27,903,470Residential Real Estate
    
    
    22,594,794
    
    
    
    20,388,409Non Residential Real Estate
    
    
    57,121,050
    
    
    
    46,824,648Installment
    
    
    13,284,474
    
    
    
    14,660,968Consumer
    
    
    486,806
    
    
    
    515,787Other
    
    
    174,479
    
    
    
    198,703122,509,936
    
    
    
    110,491,985Allowance for Loan Losses
    
    
    (1,432,740
    )
    
    
    (1,424,928
    )Net Deferred Loan Origination Fees
    
    
    (294,742
    )
    
    
    (248,752
    )$
    120,782,454
    
    
    
    108,818,305


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

March 31, 2003
    
    December 31,(unaudited)
    
    2002Balance at Beginning of Period
    
    $
    1,424,928
    
    
    
    1,116,566Provision for Loan Losses
    
    
    117,793
    
    
    
    511,634Loans Charged Off
    
    
    (135,758
    )
    
    
    (218,596
    )Recoveries on Loans
    
    
    25,777
    
    
    
    15,324Balance at End of Period
    
    $
    1,432,740
    
    
    
    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 March 31, 2003 and December 31, 2002
was $457,864 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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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 ENDEDMarch 31, 2003
    
    March 31, 2002(unaudited)
    
    (unaudited)Weighted-Average
    
    Weighted-AverageIncome
    
    Shares
    
    Per-Share
    
    Income
    
    Shares
    
    Per-Share(Numerator)
    
    (Denominator)
    
    Amount
    
    (Numerator)
    
    (Denominator)
    
    AmountNet Income
    
    $
    499,925
    
    
    
    
    
    
    
    
    
    
    
    380,127
    
    
    
    
    
    
    
    Basic EPSIncome Available to
Common Stockholders
    
    
    499,925
    
    
    
    830,333
    
    
    
    .60
    
    
    
    380,127
    
    
    
    827,500
    
    
    
    .46Effect of Dilutive OptionsStock Options
(using the Treasury Stock
Method)
    
    
    
    
    
    
    50,403
    
    
    
    
    
    
    
    
    
    
    
    53,888
    
    
    
    Diluted EPSIncome Available to
Common Stockholders plus
Assumed Exercise of Options
    
    $
    499,925
    
    
    
    880,736
    
    
    
    .57
    
    
    
    380,127
    
    
    
    881,388
    
    
    
    .43


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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
first quarter of 2003. Total assets have grown $11.5 million or
7.57% since December 31, 2002.

Loans have increased $12.0 million or 11.00% since December 31,
2002, while investment securities have decreased $4.7 million or
17.08% since December 31, 2002.

Nonperforming Assets and Risk Elements.The bank had $997,000 in
nonperforming assets at March 31, 2003. Diversification within the
loan portfolio is an important means of reducing inherent lending
risks. At March 31, 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 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 $8 million as
of March 31, 2003. In addition, loans and investment securities
repricing or maturing in one year or less exceeded $68 million at
March 31, 2003. The Bank has approximately $8.0 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 $933,000 at March 31, 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 $17.4 million with $11.1 million having been
drawn as of March 31, 2003. The Bank also has a $2.0 million
repurchase agreement with Compass Bank in order to temporarily
assist in funding loans. 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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Total equity capital of the Company at March 31, 2003 is $12.9
million or 7.88% of total assets. The Banks capital position is
adequate to meet the minimum capital requirements as of March 31,
2003 for all regulatory agencies. The Banks capital ratios as of
March 31, 2003 are as follows:

Tier 1 capital
    
    
    7.89
    %Tier 2 capital
    
    
    .94
    %Total risk-based
    
    
    10.60
    %


Results of Operations

The company had net income of $499,925 during the first quarter of
2003 compared to the net income of $380,127 during the first quarter
of 2002, an increase of $120,000 or 31.57% over the same period in
2002. Net interest income increased $284,000 or 24.58%. Total
non-interest income also increased $168,000 or 64.05%.

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 interest rates in the past year.
Our Cost/Yield Spread for loans remains strong at 4.38%. The
increase in non-interest income for the period ending March 31, 2003
is largely because of the $79,600 gains on the sales and calls of
securities.

The provision for loan losses was $117,800 for the first three
months of 2003 up from $46,300 for the first three months in 2002.
The allowance for loan losses of $1,433,000 at March 31, 2003
(approximately 1.17% 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 ProceedingsNoneItem 2.
    
    Changes in SecuritiesNoneItem 3.
    
    Default Upon Senior SecuritiesNoneItem 4.
    
    Submission of Matters to a Vote of Security HoldersNoneItem 5.
    
    Other InformationNoneItem 6.
    
    Exhibits and Reports on Form 8-K


(a)
    
    ExhibitsExhibit 99.1  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-KNone


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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)5/12/2003
    
    Phillip R. Carriger(Date)
    
    Phillip R. Carriger, Chairman and Chief Executive Officer(Principle Executive Officer)5/12/2003
    
    Michael Christian(Date)
    
    Michael Christian, President


15