PCB Bancorp Reports $10.7 Million Net Income in Q1 2026, Up 37.3%

PCB Bancorp reported a net income of $10.7 million for the first quarter of 2026, reflecting a 37.3% increase from $7.7 million in the same period last year. This growth was driven by a rise in net interest income, which reached $26.8 million, up from $24.3 million a year earlier. The net interest margin improved to 3.36% from 3.28%, attributed to a decrease in the average cost of interest-bearing liabilities. Total interest income increased to $48.8 million, while interest expense decreased to $22.0 million, contributing to the overall profitability.

The company's total assets grew to $3.40 billion, a 3.5% increase from $3.28 billion at the end of 2025. Loans held-for-investment also saw a rise, reaching $2.87 billion, up 1.9% from the previous quarter. Total deposits increased by 3.3% to $2.89 billion, with noninterest-bearing demand deposits rising to $570.4 million. The growth in deposits was primarily driven by new accounts and renewals, particularly in time deposits.

In terms of operational metrics, PCB Bancorp's allowance for credit losses (ACL) on loans was $33.9 million, representing 1.18% of loans held-for-investment. The provision for credit losses was significantly lower at $467,000 compared to $1.6 million in the prior year, indicating improved credit quality. Nonaccrual loans increased slightly to $8.2 million, while nonperforming assets rose to $9.3 million, reflecting a 17.3% increase from the previous quarter.

Strategically, PCB Bancorp continues to focus on expanding its market presence, operating nine branches in California and additional locations in New York, New Jersey, Texas, and Georgia. The company has also been active in managing its capital structure, with shareholders' equity increasing to $396.7 million. The company declared a quarterly cash dividend of $0.22 per common share, reflecting its commitment to returning value to shareholders.

Looking ahead, PCB Bancorp anticipates continued growth in its loan portfolio and deposit base, supported by its strategic initiatives and market conditions. However, management remains cautious about potential economic uncertainties, including inflationary pressures and geopolitical risks, which could impact future performance. The company is committed to maintaining its capital adequacy and liquidity to navigate these challenges effectively.