8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  October 26, 2022

PB Bankshares, Inc.

(Exact Name of Registrant as Specified in Charter)

Maryland	001-40612	86-3947794
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

185 East Lincoln Highway, Coatesville,  Pennsylvania	19320
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code:(610) 384-8282

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	PBBK	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On October 26, 2022, PB Bankshares, Inc. (the “Company”) issued a press release reporting its financial results at and for the three and nine months ended September 30, 2022.

A copy of the press release is attached as Exhibit 99.1 to this report and is being furnished to the Securities and Exchange Commission and shall not be deemed filed for any purpose.

Item 9.01 Financial Statements and Exhibits

(a)	Financial statements of businesses acquired. None.
(b)	Pro forma financial information. None.
(c)	Shell company transactions: None.
(d)	Exhibits.
	99.1	Press release dated October 26, 2022
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

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

	PB BANKSHARES, INC.
DATE: October 26, 2022	By:	/s/ Lindsay Bixler
		Lindsay Bixler
		Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:Lindsay S. Bixler Executive Vice President and Chief Financial Officer

(610) 215-2327

PB BANKSHARES, INC. ANNOUNCES 2022 THIRD QUARTER AND YEAR TO DATE FINANCIAL RESULTS

Coatesville, Pennsylvania, October 26, 2022 — PB Bankshares, Inc. (the “Company”) (NASDAQ: PBBK), the holding company for Presence Bank (the “Bank”), reported unaudited net income of $414,000 for the third quarter ended September 30, 2022 and $1,006,000 for the nine months ended September 30, 2022 compared to $210,000 and $540,000, respectively, for the same periods in 2021. Earnings per share (EPS) were $0.16 for the third quarter 2022 and $0.39 for the first nine months of 2022 compared to $0.08 and $0.21, respectively, for the same periods in 2021.

Income Statement

Net interest income was $3.0 million for the three months ended September 30, 2022 and $7.7 million for the nine months ended September 30, 2022 compared to $2.1 million and $5.7 million, respectively, for the same periods in 2021. The period over period increases of 41.7% for the three and 34.8% for the nine months ended September 30, 2022 were primarily due to the increase in interest income on loans and securities driven by the increase in average loans and securities as well as cash and federal funds sold interest income as a result of rising interest rates, partially offset by an increase in borrowings interest expense.  

The Company recorded a provision for loan losses of $346,000 for the three months ended September 30, 2022 and $639,000 for the nine months ended September 30, 2022 compared to $83,000 and $221,000, respectively, for the same periods in 2021.  The increase in the provision for loan losses for both the three and nine months ended September 30, 2022 compared to the same periods in 2021 was primarily due to loan growth during the current periods. Management is focused on strengthening our balance sheet by funding the allowance by levels supported by our allowance methodology due to the uncertainty of the impact of the rapid increase in interest rates. The allowance for loan losses was $3.8 million, or 1.24%, of loans outstanding at September 30, 2022 and $3.1 million, or 1.24%, of loans outstanding at December 31, 2021. Total non-performing assets decreased 18.8% to $1.3 million at September 30, 2022 from $1.7 million at December 31, 2021.  The non-performing assets to total assets ratio improved by 16 basis points to 0.36% from 0.52% as of September 30, 2022 and December 31, 2021, respectively.  

Noninterest income was $141,000 for the three months ended September 30, 2022 and $410,000 for the nine months ended September 30, 2022 compared to $186,000 and $537,000, respectively, for the same periods in 2021. The primary reason for the decrease in noninterest income for both the three and nine months ended September 30, 2022 was due to an unrealized loss on equity investments due to the decrease in market value of the associated asset (Community Reinvestment Act equity investment) of $33,000 for the third quarter 2022 and $100,000 for the nine months

Exhibit 99.1

ended September 30, 2022, compared to $8,000 of income and $6,000 of loss for the same periods in 2021.  

Noninterest expense was $2.3 million for the three months ended September 30, 2022 and $6.2 million for the nine months ended September 30, 2022 compared to $2.0 million and $5.4 million, respectively, for the same periods in 2021. The increase period over period for both the three and nine months ended September 30, 2022 was primarily due to an increase in salaries and employee benefits (Employee Stock Ownership Plan expense was $137,000 for 2022 year to date compared to $77,000 in 2021 for the same period due to adoption of the Plan during the third quarter of 2021), professional fees (public company expense was $140,000 for 2022 year to date compared to $47,000 in 2021 for the same period given the Company was not yet a public company until the third quarter of 2021) and Pennsylvania shares tax was $247,000 year to date 2022 versus zero in 2021 for the same period due to the mutual to stock conversion.

Paycheck Protection Program

The Bank originated approximately $6.0 million of Paycheck Protection Program (“PPP”) loans in the first and second quarters of 2021.  As of January 31, 2022, all PPP loans originated by the Bank were fully forgiven. There was no PPP income recognized in the three months ended September 30, 2022 and $28,000 of loan income (interest and fees, net) for PPP loans was recognized during the nine months ended September 30, 2022 compared to $133,000 and $192,000, respectively, for the same periods in 2021.

Balance Sheet

Total assets increased $61.8 million or 19.6% to $376.7 million at September 30, 2022 from $314.9 million at December 31, 2021. The increase in assets was primarily due to increases in net loans receivable and debt securities available-for-sale. Gross loans increased $53.1 million or 21.0% to $306.1 million at September 30, 2022 from $253.0 million at December 31, 2021, primarily as a result of the increases in the commercial and construction real estate portfolios as the Bank continues its focus on commercial lending. Debt securities available-for-sale increased as a result of additional treasury securities purchased during the first nine months of 2022. Deposits increased by $38.5 million to $289.6 million at September 30, 2022 from $251.1 million at December 31, 2021 principally as a result of organic deposit gathering strategies. Stockholders’ equity decreased $1.2 million to $44.6 million at September 30, 2022 from $45.8 million at December 31, 2021 as a result of accumulated other comprehensive loss on the debt securities available-for-sale portfolio resulting from the increase in market interest rates and stock buybacks of 37,789 shares for $498,000 in the third quarter of 2022, partially offset by current period net income. The remaining weighted average life of our debt securities available for sale portfolio is 2.07 years at September 30, 2022.  

Exhibit 99.1

Forward-Looking Statements

Certain statements contained herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statements may be identified by words such as “may,” “will,” “would,” “intend,” “believe,” “expect,” “plan,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms.

These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors.  Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for loan losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; the effects of the COVID-19 pandemic; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.

The Company and the Bank caution prospective investors not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company disclaims any obligation to publicly release any revision made to any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

About PB Bankshares, Inc. and Presence Bank

PB Bankshares, Inc. is the holding company for Presence Bank. Presence Bank was founded in 1919 and currently operates four banking offices and two loan production offices in Chester, Lancaster and Dauphin Counties, Pennsylvania.

Exhibit 99.1

PB Bankshares, Inc.

Financial Highlights (Unaudited)

(Dollars in thousands, except per share data)

Earnings Summary (for the three months ended)
	September 30,		June 30,		March 31,		December 31,		September 30,
	2022		2022		2022		2021		2021
Interest and dividend income	$	3,683	$	3,151	$	2,784	$	2,695	$	2,647
Interest expense		695		658		584		533		538
Net interest income		2,988		2,493		2,200		2,162		2,109
Provision for loan losses		346		203		90		66		83
Noninterest income		141		147		122		253		186
Noninterest expense		2,271		2,009		1,932		2,048		1,955
Income before income taxes		512		428		300		301		257
Income taxes		98		81		55		56		47
Net income		414		347		245		245		210
Earnings per common share - basic and diluted	$	0.16	$	0.14	$	0.10	$	0.10	$	0.08

Earnings Summary (for the nine months ended)
	September 30,		September 30,
	2022		2021
Interest and dividend income	$	9,618	$	7,365
Interest expense		1,936		1,665
Net interest income		7,682		5,700
Provision for loan losses		639		221
Noninterest income		410		537
Noninterest expense		6,213		5,362
Income before income taxes		1,240		654
Income taxes		234		114
Net income		1,006		540
Earnings per common share - basic and diluted	$	0.39	$	0.21

Exhibit 99.1

Balance Sheet Highlights (as of)
	September 30,		June 30,		March 31,		December 31,		September 30,
	2022		2022		2022		2021		2021
Total assets	$	376,739	$	396,067	$	368,360	$	314,929	$	312,486
Cash and cash equivalents		22,738		45,437		54,797		26,864		46,002
Debt securities available-for-sale, at fair value		37,239		43,049		24,067		25,649		27,082
Loans receivable, net of allowance for loan losses		301,381		291,680		274,637		249,196		225,948
Deposits		289,628		309,013		286,112		251,130		248,547
Total stockholders’ equity		44,618		45,161		45,224		45,834		45,535
Accumulated other comprehensive (loss)		(2,006)		(1,547)		(1,137)		(282)		(186)

Performance Ratios (as of and for the three months ended)
	September 30,			June 30,			March 31,			December 31,			September 30,
	2022			2022			2022			2021			2021
Return on average assets (annualized)		0.36	%		0.33	%		0.29	%		0.26	%		0.24	%
Return on average equity (annualized)		2.95	%		2.61	%		2.17	%		2.61	%		2.91	%
Net interest margin (annualized)		2.85	%		2.68	%		2.66	%		2.69	%		2.65	%
Allowance to non-accrual loans		281.98	%		211.89	%		205.46	%		190.26	%		181.53	%
Allowance to total loans outstanding at the end of the period		1.24	%		1.16	%		1.16	%		1.24	%		1.34	%
Net (charge-offs) recoveries to average loans outstanding during the period		—	%		—	%		—	%		—	%		—	%
Total non-performing loans to total loans		0.44	%		0.55	%		0.61	%		0.65	%		0.74	%
Total non-accrual loans to total loans		0.44	%		0.55	%		0.57	%		0.65	%		0.74	%
Total non-performing assets to total assets		0.36	%		0.41	%		0.46	%		0.52	%		0.54	%
Tier 1 capital (to average assets)		9.73	%		9.74	%		10.69	%		11.65	%		11.17	%
Book value per common share	$	16.29		$	16.26		$	16.28		$	16.50		$	16.40
Tangible book value per common share*	$	16.29		$	16.26		$	16.28		$	16.50		$	16.40
Tangible book value per common share (excluding accumulated other comprehensive loss)*	$	17.02		$	16.82		$	16.69		$	16.60		$	16.46

Exhibit 99.1

*Non-GAAP Financial Measure Reconciliation

The following table reconciles, as of the dates set forth below, stockholders’ equity (on a GAAP basis) to tangible book value and tangible book value excluding accumulated other comprehensive loss and calculates our tangible book value per common share. Book value is equal to tangible book value due to the Company having no intangible assets.

	September 30,		June 30,		March 31,		December 31,		September 30,
	2022		2022		2022		2021		2021
Tangible common equity is equal to total stockholders' equity	$	44,618	$	45,161	$	45,224	$	45,834	$	45,535
Adjustment for accumulated other comprehensive (loss)	$	(2,006)	$	(1,547)	$	(1,137)	$	(282)	$	(186)
Tangible equity excluding accumulated other comprehensive loss	$	46,624	$	46,708	$	46,361	$	46,116	$	45,721
Common shares outstanding		2,739,461		2,777,250		2,777,250		2,777,250		2,777,250
Tangible book value per common share	$	16.29	$	16.26	$	16.28	$	16.50	$	16.40
Tangible book value per common share excluding accumulated other comprehensive loss	$	17.02	$	16.82	$	16.69	$	16.60	$	16.46

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Document and Entity Information	Jul. 27, 2022
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Oct. 26, 2022
Entity Registrant Name	PB Bankshares, Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-40612
Entity Tax Identification Number	86-3947794
Entity Address, Address Line One	185 East Lincoln Highway
Entity Address, City or Town	Coatesville
Entity Address State Or Province	PA
Entity Address, Postal Zip Code	19320
City Area Code	610
Local Phone Number	384-8282
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	PBBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001849670
Amendment Flag	false