Financial Performance - PB Bankshares, Inc. reported unaudited net income of $370,000 for Q2 2024, a decrease from $588,000 in Q2 2023, and $687,000 for the first six months of 2024 compared to $997,000 for the same period in 2023[2] - For the three months ended June 30, 2024, net income was $687,000, a decrease of 30.9% compared to $997,000 for the same period in 2023[18] - Basic earnings per common share for the quarter were $0.29, down from $0.40 for the same period in 2023[18] Income and Revenue - Total interest and dividend income increased by 22.6% to $11.5 million for the first half of 2024, up from $9.4 million in the same period of 2023[3] - Net interest income for the quarter was $2,786,000, reflecting a decrease from $3,222,000 in the previous quarter[18] - Noninterest income for the first half of 2024 was $377,000, a slight decrease from $397,000 in the same period of 2023, primarily due to lower loan-related fee income[7] - Noninterest income for the quarter was $190,000, showing a slight increase from $187,000 in the previous quarter[18] Assets and Loans - Total assets increased by $9.3 million or 2.1% to $449.0 million at June 30, 2024, primarily due to a 68.7% increase in cash and cash equivalents to $54.7 million[10] - Gross loans increased by $18.5 million or 5.7% to $345.1 million at June 30, 2024, driven by growth in the commercial real estate portfolio[10] - Total assets as of June 30, 2024, were $449,045,000, slightly down from $450,434,000 as of March 31, 2024[20] Credit Quality - The allowance for credit losses was 1.30% of loans outstanding at June 30, 2024, down from 1.38% at December 31, 2023, with total non-performing loans decreasing to $1.3 million[7] - The provision for credit losses was $17,000, compared to a reversal of $84,000 in the previous quarter, indicating a shift in credit quality[18] - The allowance to total loans outstanding at the end of the period was 1.30%, slightly down from 1.32% in the previous quarter[20] Stockholders' Equity - Stockholders' equity decreased by $389,000 to $46.6 million at June 30, 2024, impacted by stock buybacks and partially offset by year-to-date net income[13] - Total stockholders' equity as of June 30, 2024, was $46,600,000, a minor decrease from $46,769,000 as of March 31, 2024[20] Ratios and Coverage - The commercial real estate portfolio has an average Loan-to-Value ratio of 59.8% and a Debt Service Coverage ratio of 1.47 times as of June 30, 2024[10] - The return on average assets (annualized) improved to 0.33% from 0.29% in the previous quarter[20] - The net interest margin (annualized) increased to 2.54% from 2.44% in the previous quarter[20] Deposits - Uninsured and uncollateralized deposits totaled approximately $37.9 million or 10.9% of total deposits as of June 30, 2024[11] Share Repurchase - The Company repurchased 115,827 shares of its common stock at an average price of $13.06 per share during the first half of 2024[3]

Financial Performance - Net income for the three months ended March 31, 2024, was $317,000, a decrease of $92,000 compared to $409,000 for the same period in 2023[113] - Net income decreased by $92,000, or 22.5%, to $317,000 for the three months ended March 31, 2024, compared to $409,000 for the same period in 2023[133] - Total interest and dividend income increased by $1.3 million, or 28.5%, to $5.6 million for the three months ended March 31, 2024, driven by a 54 basis points increase in the average yield on interest-earning assets[134] - Net interest income decreased by $413,000, or 13.6%, to $2.6 million for the three months ended March 31, 2024, primarily due to increased interest expenses[143] - Noninterest income increased by $49,000, or 35.5%, to $187,000 for the three months ended March 31, 2024, compared to $138,000 for the same period in 2023[148] - Net interest income for the three months ended March 31, 2024, was $2,632,000, down from $3,045,000 in the same period of 2023[155] - The net interest margin decreased to 2.44% in Q1 2024 from 3.26% in Q1 2023[155] Asset and Loan Growth - Total assets increased by $10.7 million, or 2.4%, to $450.4 million at March 31, 2024, from $439.7 million at December 31, 2023[121] - Net loans receivable increased by $11.9 million, or 3.7%, to $333.3 million at March 31, 2024, from $321.4 million at December 31, 2023[122] - Gross loans increased by $11.8 million, or 3.6%, to $338.4 million at March 31, 2024, from $326.6 million at December 31, 2023[121] - Commercial real estate loans increased by $10.3 million, or 5.6%, to $195.1 million at March 31, 2024, from $184.9 million at December 31, 2023[123] - Consumer and other loans increased by $879,000, or 15.1%, to $6.7 million at March 31, 2024, from $5.8 million at December 31, 2023[123] - Total commitments to originate loans were $32.6 million, with unused lines of credit totaling $12.9 million[174] Deposits and Liquidity - Deposits rose by $15.4 million, or 4.6%, to $348.4 million at March 31, 2024, from $333.0 million at December 31, 2023[111] - Total deposits increased by $15.4 million, or 4.6%, to $348.4 million at March 31, 2024, with a notable increase in certificates of deposit[130] - Cash and cash equivalents increased by $34.3 million to $66.8 million at March 31, 2024, from $32.4 million at December 31, 2023[121] - Cash and cash equivalents totaled $66.8 million at March 31, 2024[171] - The company maintained a strong liquidity position, monitoring it daily to meet current funding commitments[172] - The liquidity ratio averaged 18.0% for the three months ended March 31, 2024, compared to 12.0% for the same period in 2023[169] Interest and Expenses - Interest income on loans increased by $753,000, or 19.8%, to $4.6 million for the three months ended March 31, 2024, reflecting a 48 basis points increase in the average yield on loans to 5.53%[135] - Interest expense increased by $1.7 million, or 125.2%, to $3.0 million for the three months ended March 31, 2024, due to rising interest rates[138] - Noninterest expenses rose by $33,000, or 1.3%, to $2,498,000 for the three months ended March 31, 2024, from $2,465,000 in the same period of 2023[150] - Advertising and marketing expenses increased by $26,000, primarily due to a search engine optimization campaign and media advertising[150] Credit Losses and Allowance - The allowance for credit losses is based on evaluations of historical loan losses and current conditions, with future adjustments possible if economic conditions differ from assumptions[120] - The allowance for credit losses on loans was $4.5 million, or 1.32%, of loans outstanding at March 31, 2024[146] - The allowance to total loans outstanding was 1.32% at March 31, 2024, slightly decreasing from 1.38% at December 31, 2023[165] - The provision for credit losses decreased by $267,000, or 145.9%, to ($84,000) for the three months ended March 31, 2024[165] - Non-performing loans decreased to $1.3 million, or 0.39% of total loans, from $1.4 million, or 0.44% of total loans, at the end of the previous quarter[162] Equity and Taxation - Stockholders' equity decreased by $220,000, or 0.5%, to $46.8 million at March 31, 2024, due to stock repurchases[132] - Income tax expense decreased by $38,000, or 30.2%, to $88,000 for the three months ended March 31, 2024, from $126,000 in the same period of 2023[151] - The effective tax rates were 21.7% for Q1 2024 and 23.6% for Q1 2023[151] Other Financial Metrics - The average yield on average interest-earning assets increased to 5.20% for the three months ended March 31, 2024, up from 4.66% for the same period in 2023[134] - The average balance of interest-bearing liabilities increased by $59.0 million to $370.5 million for the three months ended March 31, 2024[140] - Total assets increased to $443,907,000 as of March 31, 2024, compared to $388,818,000 as of March 31, 2023[155] - Certificates of deposit due within one year totaled $141.6 million, representing 87.5% of total certificates of deposit[172] - The company had the ability to borrow approximately $202.1 million from the Federal Home Loan Bank of Pittsburgh, with $50.8 million already advanced[166]

Financial Performance - PB Bankshares, Inc. reported unaudited net income of $317,000 for Q1 2024, down from $409,000 in Q1 2023, with diluted earnings per share at $0.13 compared to $0.16 in the prior year[1]. - Noninterest income increased to $187,000 in Q1 2024 from $138,000 in Q1 2023, despite unrealized losses on equity investments[7]. - Stockholders' equity decreased by $220,000 to $46.8 million at March 31, 2024, due to stock buybacks and net income[14]. Income and Expenses - Total interest and dividend income increased by 28.5% to $5.6 million in Q1 2024 from $4.4 million in Q1 2023[4]. - Net interest income decreased to $2.6 million in Q1 2024 from $3.0 million in Q1 2023, primarily due to rising interest expenses[5]. - Return on average assets (annualized) decreased to 0.29% in Q1 2024 from 0.38% in Q4 2023, a drop of 23.68%[22]. - Return on average equity (annualized) also fell to 2.71% from 3.14%, representing a decrease of 13.68%[22]. - Net interest margin (annualized) declined to 2.44% from 2.74%, a reduction of 10.95%[22]. Asset and Loan Growth - Total assets increased by $10.7 million, or 2.4%, to $450.4 million at March 31, 2024, driven by strong cash and loan growth[9]. - Cash and cash equivalents surged by 105.9% to $66.8 million at March 31, 2024, from $32.4 million at December 31, 2023[9]. - Gross loans rose by $11.8 million, or 3.6%, to $338.4 million at March 31, 2024, primarily due to growth in the commercial real estate portfolio[9]. - Loans receivable net of allowance for credit losses reached $333,288 million, up from $321,382 million, reflecting a growth of 3.66%[21]. Credit Quality - The allowance for credit losses was $4.5 million, or 1.32% of loans outstanding, as of March 31, 2024, compared to $4.1 million, or 1.30%, in Q1 2023[6]. - Total non-performing loans to total loans was 0.39% as of March 31, 2024, down from 0.44% in December 2023, indicating an improvement of 11.36%[22]. Capital and Shareholder Value - The company repurchased 50,000 shares of its common stock at an average price of $13.35 per share during Q1 2024[4]. - Total stockholders' equity slightly decreased to $46,769 million from $46,989 million, a decline of 0.47%[21]. - Tangible book value per common share increased to $17.78 from $17.53, reflecting a growth of 1.43%[23]. - Tier 1 capital ratio decreased to 9.25% from 9.78%, a decline of 5.43%[23].

Financial Performance - Net income for the year ended December 31, 2023, was $1.9 million, a decrease of $195,000 compared to $2.1 million for the year ended December 31, 2022[229]. - Net income decreased $195,000 to $1.9 million for the year ended December 31, 2023, due to a $1.4 million increase in noninterest expense[269]. - Net income for 2023 was $1,919 million, a decrease from $2,114 million in 2022, representing a decline of 9.2%[313]. - Noninterest income decreased by $632,000, or 44.6%, to $785,000 for 2023, primarily due to losses from the disposal of premises and equipment[286]. - Total noninterest expenses increased by $1.4 million, or 16.2%, to $9.8 million in 2023, driven by higher salaries and employee benefits[288]. - Income tax expense rose by $14,000, or 2.6%, to $545,000 for 2023, with an effective tax rate of 22.1% compared to 20.1% in 2022[289]. Asset and Deposit Growth - Total assets increased by $53.2 million, or 13.8%, to $439.7 million at December 31, 2023, from $386.5 million at December 31, 2022[253]. - Deposits rose by $43.5 million, or 15.0%, from $289.5 million at December 31, 2022, to $333.0 million at December 31, 2023[225]. - Core deposits increased by $11.1 million, or 6.3%, to $187.5 million at December 31, 2023, from $176.4 million at December 31, 2022[234]. - Cash and cash equivalents increased by $15.2 million, or 88.5%, to $32.4 million at December 31, 2023 from $17.2 million at December 31, 2022[256]. - Total deposits increased to $332,966 million in 2023, up from $289,495 million in 2022, reflecting an increase of 15.0%[310]. Loan Portfolio and Credit Quality - The commercial real estate and commercial and industrial loan portfolios grew from $166.4 million, or 54.5% of total loans, at December 31, 2022, to $201.4 million, or 61.7% of total loans, at December 31, 2023[230]. - Gross loans increased by $53.2 million, or 15.3%, during 2023[225]. - Net loans receivable increased $20.5 million, or 6.8%, to $321.4 million at December 31, 2023, primarily due to a $36.3 million increase in commercial real estate loans, which rose 24.4%[257]. - The allowance for credit losses rose to $4,511,000 in 2023, up from $3,992,000 in 2022, indicating a 13% increase[397]. - Total non-accrual loans increased to $1,421,000 in 2023, compared to $1,049,000 in 2022, reflecting a rise of 35.5%[399]. - The total provision for credit losses decreased to $632,000 in 2023 from $1,200,000 in 2022, a reduction of 47.4%[398]. Interest Income and Expense - Total interest income increased $6.0 million, or 43.5%, to $19.8 million for the year ended December 31, 2023, resulting from a 123 basis points increase in the average yield on interest-earning assets[270]. - Interest income on loans increased $4.2 million, or 32.9%, to $17.0 million for 2023, driven by a 92 basis points increase in the average yield on loans[271]. - Interest expense increased $4.7 million, or 161.1%, to $7.7 million for the year ended December 31, 2023, due to increases in interest expense on deposits and borrowings[276]. - The net interest margin improved to 3.07% in 2023 from 2.97% in 2022, while the net interest rate spread decreased to 2.71%[292]. - Net interest income increased by $1.3 million, or 11.5%, to $12.1 million for the year ended December 31, 2023, compared to $10.9 million for 2022[279]. Borrowings and Liquidity - Total borrowings from the Federal Home Loan Bank of Pittsburgh increased $7.5 million, or 15.7%, to $55.1 million at December 31, 2023[267]. - The liquidity ratio averaged 13.7% for the year ended December 31, 2023, significantly above the target of 5.0%[298]. - The company maintained the ability to borrow approximately $178.5 million from the Federal Home Loan Bank of Pittsburgh as of December 31, 2023[297]. - Maximum borrowing capacity increased from $155,601,000 in 2022 to $178,468,000 in 2023, secured by qualifying loans[420]. Stockholder Equity and Share Repurchase - Stockholders' equity increased $1.0 million, or 2.2%, to $47.0 million at December 31, 2023, attributed to net income of $1.9 million for 2023[268]. - The company repurchased 165,109 shares of common stock for $2,145,000 in 2023, compared to 40,289 shares for $530,000 in 2022[321]. Accounting and Regulatory Compliance - The Company accounts for income taxes in accordance with FASB ASC Topic 740, resulting in current and deferred income tax expense[366]. - The Company adopted ASC 326 on January 1, 2023, establishing a reserve for unfunded loan commitments of $177,000, which reduced retained earnings by $140,000[383]. - The adjustment recorded at the adoption of ASC 326 established a reserve for credit losses based on historical experience and reasonable forecasts[383].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40612 (Exact name of registrant as specified in its charter) Maryland 86-3947794 (State or other jurisdic ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (Exact name of registrant as specified in its charter) Maryland 86-3947794 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 185 E Lincoln Highway Coatesville, PA 19320 (Address of Principal Executive Offices) (610) 384-8282 (Registrant's telephone number) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 F ...

Table of Contents Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from to Commission File Number: 001-40612 (Exact name of registrant as specified in its charter) Maryland 86-3947794 (State or other jurisdiction ...

Part I [Business](index=7&type=section&id=Item%201.%20Business) PB Bankshares, Inc. is a community-oriented bank holding company focused on shifting its loan portfolio towards commercial real estate and industrial loans, with consolidated assets of **$386.3 million** as of December 31, 2022 - PB Bankshares, Inc. is the holding company for Presence Bank, formed in March 2021 following the bank's mutual to stock conversion on July 14, 2021[17](index=17&type=chunk) - The bank's strategy, under leadership hired in 2019, is to transition from a traditional thrift to a commercial lender, focusing on commercial real estate and commercial & industrial loans[21](index=21&type=chunk) - The primary lending market includes Chester, Lancaster, Dauphin, Lebanon, and Cumberland Counties in Pennsylvania, with four banking offices and two loan production offices[20](index=20&type=chunk) Consolidated Financial Position (as of Dec 31, 2022) | Metric | Value (in millions) | | :--- | :--- | | Total Consolidated Assets | $386.3 | | Total Deposits | $289.5 | | Total Stockholders' Equity | $46.0 | [Lending Activities](index=11&type=section&id=Lending%20Activities) The bank strategically shifted its lending focus to commercial real estate, industrial, and construction loans, growing total gross loans to **$305.4 million** in 2022 - The bank's legal lending limit to a single borrower is approximately **$6.3 million** as of December 31, 2022, with the largest credit relationship at that time being **$5.0 million**[74](index=74&type=chunk) - The bank purchases commercial loan participations, with an outstanding balance of **$12.6 million** (**4.1%** of the loan portfolio) at year-end 2022, all of which were performing[73](index=73&type=chunk) Loan Portfolio Composition (December 31) | Loan Type | 2022 Amount (in thousands) | 2022 Percent | 2021 Amount (in thousands) | 2021 Percent | | :--- | :--- | :--- | :--- | :--- | | One- to four-family residential | $110,387 | 36.14% | $106,024 | 41.91% | | Commercial Real Estate | $148,567 | 48.64% | $118,266 | 46.75% | | Construction | $20,406 | 6.68% | $13,751 | 5.44% | | Commercial and industrial | $17,874 | 5.85% | $11,880 | 4.70% | | Consumer and other | $8,203 | 2.69% | $3,038 | 1.20% | | **Total Gross Loans** | **$305,437** | **100.00%** | **$252,959** | **100.00%** | [Delinquencies, Non-Performing Assets and Classified Assets](index=22&type=section&id=Delinquencies%2C%20Non-Performing%20Assets%20and%20Classified%20Assets) Asset quality improved in 2022, with total non-performing assets decreasing to **$1.0 million** (0.27% of total assets) from **$1.7 million** in 2021 - The decrease in non-performing loans was mainly due to a **$394,000** reduction in non-performing construction loans and a **$329,000** reduction in non-performing one- to four-family residential loans[87](index=87&type=chunk) Non-Performing Assets (December 31) | Metric | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Total non-accrual loans | $1,049 | $1,653 | | Foreclosed assets | $0 | $0 | | **Total non-performing assets** | **$1,049** | **$1,653** | | Total non-performing assets to total assets | 0.27% | 0.52% | | Total non-performing loans to total loans | 0.34% | 0.65% | Classified and Special Mention Loans (December 31) | Classification | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Substandard loans | $2,661 | $2,618 | | Doubtful loans | $0 | $0 | | Loss loans | $0 | $0 | | **Total classified loans** | **$2,661** | **$2,618** | | Special mention loans | $607 | $625 | [Allowance for Loan Losses](index=26&type=section&id=Allowance%20for%20Loan%20Losses) The allowance for loan losses increased to **$4.0 million** (1.31% of total loans) in 2022, driven by a **$1.2 million** provision due to loan growth and economic factors - The provision for loan losses increased by **$913,000** (**318.1%**) in 2022, mainly due to qualitative factor adjustments for rising interest rates and growth in commercial loan segments[97](index=97&type=chunk) - The allowance allocation reflects the portfolio shift, with **49.5%** of the allowance attributed to commercial real estate loans in 2022, up from **45.4%** in 2021[99](index=99&type=chunk) Activity in Allowance for Loan Losses (Year Ended Dec 31) | Metric | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Beginning Allowance | $3,145 | $2,854 | | Provision for loan losses | $1,200 | $287 | | Net (charge-offs) recoveries | ($353) | $4 | | **Ending Allowance** | **$3,992** | **$3,145** | [Regulation and Supervision](index=37&type=section&id=Regulation%20and%20Supervision) The company and Presence Bank are extensively regulated, with Presence Bank considered "well capitalized" at **10.00% CBLR** as of December 31, 2022, and the company benefiting from "emerging growth company" status - Presence Bank is regulated by the Pennsylvania Department of Banking and the FDIC, while the holding company, PB Bankshares, is regulated by the Federal Reserve Board[125](index=125&type=chunk)[128](index=128&type=chunk) - The Bank has elected to use the Community Bank Leverage Ratio (CBLR) framework for capital adequacy[148](index=148&type=chunk) - At December 31, 2022, Presence Bank's CBLR was **10.00%**, exceeding the **9.0%** requirement, and was therefore considered "well capitalized" for regulatory purposes[155](index=155&type=chunk) - The Company qualifies as an "emerging growth company" under the JOBS Act, allowing for scaled disclosure and an extended transition period for new accounting standards[185](index=185&type=chunk)[186](index=186&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) This section is not required for smaller reporting companies, therefore no information is provided - Not required for smaller reporting companies[203](index=203&type=chunk) [Properties](index=57&type=section&id=Item%202.%20Properties) As of December 31, 2022, the company's properties, including three owned branches and three leased offices, had a total net book value of **$1.1 million** Office Properties (as of Dec 31, 2022) | Location | Type | Ownership | Net Book Value | | :--- | :--- | :--- | :--- | | Coatesville | Main Office | Leased | $ — | | New Holland | Branch | Owned | $517,000 | | Oxford | Branch | Owned | $138,000 | | Christiana | Branch | Owned | $487,000 | | Harrisburg | LPO | Leased | $ — | | Elizabethtown | LPO | Leased | $ — | [Legal Proceedings](index=57&type=section&id=Item%203.%20Legal%20Proceedings) Management believes no pending legal proceedings will have a material adverse effect on the company's financial condition or operations as of December 31, 2022 - As of December 31, 2022, the company does not believe any pending legal proceedings will have a material adverse effect on its business or financial condition[208](index=208&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=57&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq, with a stock repurchase program authorized in August 2022 for up to **277,725 shares** - The company's common stock is listed on The Nasdaq Capital Market under the symbol "**PBBK**" since July 14, 2021[210](index=210&type=chunk) - On August 5, 2022, the Company announced a stock repurchase program authorizing the repurchase of up to **277,725 shares**, or approximately **10%** of its then outstanding shares[217](index=217&type=chunk) Share Repurchases (Q4 2022) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Oct 2022 | 0 | N/A | | Nov 2022 | 2,500 | $12.65 | | Dec 2022 | 0 | N/A | | **Total** | **2,500** | **$12.65** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights significant financial growth in 2022, with total assets growing to **$386.6 million** and net income rising to **$2.1 million** [Comparison of Balance Sheets](index=69&type=section&id=Comparison%20of%20Balance%20Sheets%20at%20December%2031%2C%202022%20and%20December%2031%2C%202021) Total assets increased by **$71.6 million** (**22.7%**) to **$386.5 million** at year-end 2022, primarily fueled by a **$51.7 million** increase in net loans receivable - Total assets increased by **$71.6 million**, or **22.7%**, to **$386.5 million** at December 31, 2022[246](index=246&type=chunk) - Net loans receivable increased by **$51.7 million** (**20.7%**), driven by growth in commercial real estate (**+$30.3 million**), construction (**+$6.7 million**), and commercial and industrial loans (**+$6.0 million**)[248](index=248&type=chunk) - Total deposits increased by **$38.4 million** (**15.3%**), and FHLB borrowings increased by **$31.0 million** (**185.6%**) to fund asset growth[252](index=252&type=chunk)[255](index=255&type=chunk) [Comparison of Operating Results](index=71&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Years%20Ended%20December%2031%2C%202022%20and%20December%2031%2C%202021) Net income for 2022 was **$2.1 million**, a **$1.3 million** increase from 2021, driven by a **$3.0 million** rise in net interest income - Net interest margin increased **28 basis points** to **2.97%** for 2022 from **2.69%** for 2021[266](index=266&type=chunk) - Noninterest income was significantly boosted by an **$821,000** gain on the sale and leaseback of the company's corporate headquarters[273](index=273&type=chunk) - Noninterest expense increased primarily due to a new **$330,000** Pennsylvania shares tax, higher salaries and benefits (**+$291,000**), and increased professional fees (**+$257,000**)[275](index=275&type=chunk) Key Operating Results (Year Ended Dec 31) | Metric | 2022 (in thousands) | 2021 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $10,864 | $7,862 | +38.2% | | Provision for Loan Losses | $1,200 | $287 | +318.1% | | Noninterest Income | $1,417 | $795 | +78.2% | | Noninterest Expense | $8,436 | $7,415 | +13.8% | | **Net Income** | **$2,114** | **$785** | **+169.3%** | [Liquidity and Capital Resources](index=79&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$155.6 million** in FHLB borrowing capacity and Presence Bank considered "well capitalized" as of December 31, 2022 - Primary sources of liquidity are deposits, loan and security payments, and FHLB borrowings[284](index=284&type=chunk) - At December 31, 2022, the company had approximately **$155.6 million** in borrowing capacity from the FHLB of Pittsburgh, with **$47.6 million** outstanding[284](index=284&type=chunk) - Presence Bank was considered "**well capitalized**" under regulatory guidelines as of December 31, 2022[289](index=289&type=chunk) - Outstanding commitments to originate loans totaled **$41.2 million** at year-end 2022[290](index=290&type=chunk) [Financial Statements and Supplementary Data](index=83&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements for PB Bankshares, Inc. for 2022 and 2021, including balance sheets, income statements, and detailed notes [Consolidated Financial Statements](index=83&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of **$386.5 million** and net income of **$2.1 million** for 2022, a significant increase from 2021 Consolidated Balance Sheet Highlights (Dec 31, 2022) | Account | Value (in thousands) | | :--- | :--- | | Total Assets | $386,547 | | Net Loans Receivable | $300,855 | | Total Deposits | $289,495 | | Total Borrowings | $47,638 | | Total Stockholders' Equity | $45,987 | Consolidated Income Statement Highlights (Year Ended Dec 31, 2022) | Account | Value (in thousands) | | :--- | :--- | | Net Interest Income | $10,864 | | Provision for Loan Losses | $1,200 | | Noninterest Income | $1,417 | | Noninterest Expense | $8,436 | | **Net Income** | **$2,114** | [Notes to Consolidated Financial Statements](index=90&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, loan portfolio composition, employee benefits, and the upcoming adoption of the CECL model in 2023 - The company adopted lease accounting standard ASU 2016-02 on January 1, 2022, resulting in the recognition of right-of-use assets and lease liabilities of **$247,000**[379](index=379&type=chunk) - The company will adopt the CECL credit loss standard (ASU 2016-13) on January 1, 2023, with the initial adjustment not expected to be significant to the overall allowance for credit losses[373](index=373&type=chunk) - The company's defined benefit pension plan was terminated as of April 1, 2021, with all assets dispersed during that year[423](index=423&type=chunk) - In 2022, the company established the 2022 Equity Incentive Plan, authorizing **388,815 shares** for future grants of stock options and restricted stock awards[432](index=432&type=chunk) [Controls and Procedures](index=147&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with no material changes - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[483](index=483&type=chunk) - Based on an assessment using the COSO framework, management determined that internal control over financial reporting was effective as of December 31, 2022[487](index=487&type=chunk) - The annual report does not include an attestation report from the independent registered public accounting firm on internal controls because the company is an emerging growth company[490](index=490&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=149&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the upcoming Proxy Statement for the 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the upcoming Proxy Statement for the 2023 Annual Meeting of Stockholders[492](index=492&type=chunk) [Executive Compensation](index=149&type=section&id=Item%2011.%20Executive%20Compensation) Details on executive compensation are incorporated by reference from the upcoming Proxy Statement for the 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the upcoming Proxy Statement for the 2023 Annual Meeting of Stockholders[493](index=493&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=150&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details securities authorized under equity compensation plans, with **266,072** issuable upon option exercise as of December 31, 2022 - Information on security ownership of beneficial owners and management is incorporated by reference from the upcoming Proxy Statement[496](index=496&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2022) | Plan Category | Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Securities Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 266,072 | $12.28 | 11,653 (options) + 2,975 (restricted stock) | [Certain Relationships and Related Transactions, and Director Independence](index=150&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the upcoming Proxy Statement for the 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the upcoming Proxy Statement for the 2023 Annual Meeting of Stockholders[497](index=497&type=chunk) [Principal Accountant Fees and Services](index=152&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the upcoming Proxy Statement for the 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the upcoming Proxy Statement for the 2023 Annual Meeting of Stockholders[499](index=499&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=152&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including corporate governance documents and certifications - Lists all financial statements and exhibits filed with the report[500](index=500&type=chunk) - Exhibits include Articles of Incorporation, Bylaws, Employment Agreements, the 2022 Equity Incentive Plan, and required CEO/CFO certifications[503](index=503&type=chunk)[506](index=506&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40612 (Exact name of registrant as specified in its charter) Maryland 86-3947794 (State or other jurisdic ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40612 (Exact name of registrant as specified in its charter) Maryland 86-3947794 (State or other jurisdiction ...