PCB Bancorp Reports 64.2% Increase in Net Income for Q1 2025

PCB Bancorp reported a significant increase in its financial performance for the first quarter of 2025, with net income available to common shareholders rising to $7.7 million, a 64.2% increase from $4.7 million in the same period last year. This growth was driven by a 15.6% increase in net interest income, which reached $24.3 million, compared to $21.0 million in the prior year. The company's total interest income also rose to $46.9 million, up from $43.6 million, while interest expense remained relatively stable at $22.6 million. The net interest margin improved to 3.28%, up from 3.10% a year earlier.

In terms of operational metrics, PCB Bancorp's total assets increased by 5.1% to $3.22 billion, up from $3.06 billion at the end of 2024. Loans held-for-investment also saw a notable increase, rising to $2.73 billion, a 3.7% increase from $2.63 billion. Total deposits grew by 3.8% to $2.71 billion, reflecting a strong demand for the bank's services. The allowance for credit losses on loans increased to $31.9 million, representing 1.17% of loans held-for-investment, slightly up from 1.16% at the end of the previous year.

Strategically, PCB Bancorp has made significant moves, including the recognition of a $35.8 million option derivative related to its Series C Preferred Stock, which was issued as part of the Emergency Capital Investment Program (ECIP) with the U.S. Treasury. The company also repurchased 50,676 shares of common stock during the quarter, reflecting its commitment to returning value to shareholders. The bank continues to operate nine branches in California and has expanded its footprint with additional branches in New York and Texas.

Looking ahead, PCB Bancorp's management expressed optimism about future growth, citing a strong pipeline of loans and a favorable interest rate environment. However, they acknowledged potential risks, including economic conditions and regulatory changes that could impact performance. The company is also focused on addressing a material weakness in its internal controls related to the evaluation of derivative contracts, which management is actively working to remediate. Overall, PCB Bancorp's financial outlook remains positive, supported by its solid performance metrics and strategic initiatives.