Core Viewpoint - PCB Bancorp reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and showing an increase from $0.46 per share a year ago, indicating a positive earnings surprise of +5.79% [1] Financial Performance - The company achieved revenues of $29.17 million for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 0.94%, but an increase from $26.21 million year-over-year [2] - Over the last four quarters, PCB Bancorp has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance - PCB Bancorp shares have declined approximately 0.5% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $30.4 million, and for the current fiscal year, it is $2.67 on revenues of $125.8 million [7] - The trend of estimate revisions for PCB Bancorp was unfavorable prior to the earnings release, which may change following the recent report [6] Industry Context - The Banks - Southwest industry, to which PCB Bancorp belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Exhibit 99.1 PCB Bancorp Reports Earnings for Q4 2025 and Full Year 2025 Los Angeles, California - January 29, 2026 - PCB Bancorp (the "Company") (NASDAQ: PCB), the holding company of PCB Bank (the "Bank"), today reported net income available to common shareholders of $9.1 million, or $0.64 per diluted common share, for the fourth quarter of 2025, compared with $11.3 million, or $0.78 per diluted common share, for the previous quarter and $6.7 million, or $0.46 per diluted common share, for the year-ago qua ...

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is often preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below their intrinsic value, making them attractive for investors seeking upside potential [3][10] - Companies such as Hamilton Insurance Group, Macy's Inc., Cognizant Technology Solutions, PCB Bancorp, and PRA Group have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Hamilton Insurance Group**: Operates in specialty insurance and reinsurance, benefiting from strong execution and a clear growth roadmap, with gross premiums written rising significantly [12][13] - **Macy's Inc.**: Undergoing a transformation with its Bold New Chapter program, focusing on digital initiatives and omnichannel retailing, currently holds a Value Score of A and Zacks Rank 2 [14][15] - **Cognizant Technology Solutions**: A leading professional services company with strong growth in Health Sciences and Financial Services, bolstered by acquisitions and AI initiatives [16][17] - **PCB Bancorp**: Offers a range of banking products and services, strategically positioned for sustained growth, currently holds a Value Score of A and Zacks Rank 2 [18][19] - **PRA Group**: Focuses on the purchase and management of non-performing loans, benefiting from strategic acquisitions and a positive purchasing environment, currently holds a Value Score of A and Zacks Rank 2 [20][21]

Financial Performance - For the three months ended September 30, 2025, total interest income increased to $51,471,000, up 11.4% from $45,998,000 in the same period of 2024[11] - Net income for the three months ended September 30, 2025, was $11,412,000, representing a 46.5% increase compared to $7,814,000 for the same period in 2024[11] - Noninterest income for the three months ended September 30, 2025, totaled $3,414,000, an increase of 30.2% from $2,620,000 in the same period of 2024[11] - Earnings per common share (basic) for the three months ended September 30, 2025, was $0.79, compared to $0.52 for the same period in 2024, reflecting a 51.9% increase[11] - Total comprehensive income for the three months ended September 30, 2025, was $12,531,000, compared to $11,518,000 for the same period in 2024[13] - Net income for the nine months ended September 30, 2025, was $28,218,000, an increase of 50.4% compared to $18,780,000 for the same period in 2024[19] - Total revenue for the nine months ended September 30, 2025, was $86,542,000, compared to $73,503,000 for the same period in 2024, reflecting a year-over-year increase of 17.7%[112] Credit Losses and Provisions - The provision for credit losses showed a reversal of $(381,000) for the three months ended September 30, 2025, compared to a provision of $50,000 in the same period of 2024[11] - The provision for credit losses increased to $3,004,000 for the nine months ended September 30, 2025, compared to $1,399,000 in 2024, representing a significant increase of 114.4%[19] - The provision for credit losses for the three months ended September 30, 2025, was a reversal of $428 thousand, contrasting with a provision of $193 thousand for the same period in 2024[51] - The total provision for credit losses for the nine months ended September 30, 2025, was $3,004 thousand, significantly higher than $1,399 thousand for the same period in 2024[51] Assets and Liabilities - Total shareholders' equity increased to $384,501,000 as of September 30, 2025, up from $362,300,000 at the end of September 2024, reflecting a growth of 6.6%[17] - The company reported a net cash increase of $170,706,000 in cash and cash equivalents by the end of September 2025, compared to a decrease of $49,278,000 in the same period of 2024[19] - The company’s net loans held-for-investment were valued at $2,709,523,000 as of September 30, 2025, slightly down from $2,593,839,000 at the end of 2024[40] - The company’s total deposits increased from $2,615,791,000 at the end of 2024 to $2,913,502,000 by September 30, 2025[40] - The total number of common shares outstanding increased to 14,277,164 as of September 30, 2025, from 14,266,725 at the end of September 2024, reflecting a slight increase of 0.1%[17] Loans and Credit Quality - The company experienced a net change in loans held-for-investment of $(122,040,000) for the nine months ended September 30, 2025, compared to $(141,948,000) in 2024, indicating a smaller decline of 14.2%[19] - The balance of commercial property loans as of September 30, 2025, was $10,628,000, while residential mortgage loans stood at $12,238,000[52] - The company classifies loans into risk categories, with "Pass" loans being those that do not meet lower risk ratings and "Substandard" loans indicating potential weaknesses[54][56] - The total amount of multifamily loans reached $172,098, showing a significant increase from $1,000 in the previous year[59] - The total amount of loans classified as substandard was $6,930,000[63] Interest Rate Risk Management - The Company aims to minimize the impact of changing interest rates on net interest income and the economic values of assets and liabilities[219] - As of September 30, 2025, net interest income sensitivity results indicate an asset sensitive profile, with expected increases in net interest income when interest rates rise[227] - The projected changes in net interest income sensitivity show a potential increase of 7.0% with a +200 basis point change in rates by September 30, 2025[226] - The Economic Value of Equity (EVE) sensitivity reflects a slight liability sensitive profile, indicating potential risks due to deposit behaviors and loan prepayment assumptions[228] Stock and Dividends - Cash dividends declared on common stock were $8,613,000 for the nine months ended September 30, 2025, compared to $7,704,000 for the same period in 2024, representing an increase of 11.8%[19] - The Company declared a quarterly cash dividend of $0.20 per common share on October 22, 2025, to be paid on or about November 14, 2025[113] - The Company repurchased and retired 255,767 shares of common stock at a weighted-average price of $19.41 per share during the nine months ended September 30, 2025[93] Tax and Compensation - The Company recognized tax benefits of $60,000 for Q3 2025, compared to $26,000 for Q3 2024, reflecting a significant increase in tax efficiency[95] - Total share-based compensation expense for Q3 2025 was $227,000, a 100% increase from $113,000 in Q3 2024[95] - The number of outstanding restricted stock awards at the end of Q3 2025 was 116,900 shares, with a weighted-average grant date fair value of $20.47[97]

Core Insights - PCB Bancorp reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and up from $0.52 per share a year ago, representing an earnings surprise of +27.87% [1] - The company posted revenues of $30.39 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.19%, but up from $25.34 million year-over-year [2] - PCB Bancorp has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $30.7 million, while for the current fiscal year, the estimate is $2.37 on revenues of $117.25 million [7] - The estimate revisions trend for PCB Bancorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Southwest industry, to which PCB Bancorp belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income available to common shareholders for Q3 2025 was $11.3 million, or $0.78 per diluted common share, representing a 26.1% increase from the previous quarter and a 51.7% increase year-over-year[4]. - Net income for the three months ended September 30, 2025, was $11,412,000, a 25.8% increase from $9,071,000 in the previous quarter and a 46.0% increase from $7,814,000 year-over-year[40]. - Net income for Q3 2025 was $11,412 thousand, up 25.7% from $9,071 thousand in Q2 2025[49]. - Net interest income for Q3 2025 was $26,978,000, an increase of 3.8% from Q2 2025 and 18.7% from Q3 2024[7]. - Net interest income after provision for credit losses increased to $27,359,000, representing a 13.0% increase from $24,203,000 in the previous quarter and a 20.7% increase from $22,669,000 year-over-year[40]. - Earnings per common share (diluted) for the three months ended September 30, 2025, was $0.78, compared to $0.62 in the previous quarter and $0.52 in the same quarter last year[40]. Asset and Deposit Growth - Total assets increased to $3.36 billion, a rise of $57.9 million, or 1.8%, from the previous quarter and an increase of $473.7 million, or 16.4%, year-over-year[4]. - Total deposits reached $2.91 billion, an increase of $90.6 million, or 3.2%, from the previous quarter and an increase of $453.8 million, or 18.5%, year-over-year[4]. - Total deposits increased to $2,867,413 with interest expense of $23,995, reflecting a cost of 3.32%[42]. - Total deposits reached $2.91 billion as of September 30, 2025, an increase of 6.0% from $2.82 billion at June 30, 2025[27]. - Retail time deposits increased by $140.6 million, or 6.0%, from $2.33 billion at June 30, 2025, driven by new accounts and renewals[28]. Loan Performance - Loans held-for-investment were $2.75 billion, a decrease of $42.8 million, or 1.5%, from the previous quarter, but an increase of $286.3 million, or 11.6%, year-over-year[4]. - Total loans for the three months ended September 30, 2025, amounted to $2,784,148, generating interest income of $46,193 with an average yield of 6.58%[42]. - Loans held-for-sale increased by 18.5% to $9,634 thousand compared to $8,133 thousand in the previous quarter[38]. - The average yield on loans for Q3 2025 was 6.58%, compared to 6.56% in Q2 2025 and 6.82% in Q3 2024[8]. Credit Quality - The provision for credit losses was a reversal of $(381) thousand for the current quarter, compared to $1.8 million for the previous quarter[4]. - Non-performing loans (NPLs) decreased by 8.7% to $8.2 million as of September 30, 2025, compared to $8.9 million on June 30, 2025[23]. - The allowance for credit losses (ACL) on loans decreased by 1.8% to $32.96 million at the end of the period, down from $33.55 million at June 30, 2025[24]. - The allowance for credit losses (ACL) on loans to loans held-for-investment ratio remained stable at 1.20%[4]. Noninterest Income and Expenses - Total noninterest income for the three months ended September 30, 2025, was $3,414,000, a 3.5% increase from $3,297,000 in the previous quarter and a 30.3% increase from $2,620,000 in the same quarter last year[13]. - Total noninterest expense for the three months ended September 30, 2025, was $14,869,000, a slight increase of 0.3% from $14,829,000 in the previous quarter and a 1.8% increase from $14,602,000 in the same quarter last year[14]. - Salaries and employee benefits increased to $9,293,000 for the three months ended September 30, 2025, a 5.1% increase from $8,844,000 in the previous quarter and a 5.6% increase from $8,801,000 in the same quarter last year[14]. Capital and Shareholder Returns - Shareholders' equity rose to $384.5 million, reflecting a 2.1% increase from $376.5 million at June 30, 2025, and a 5.7% increase from $363.8 million at December 31, 2024[30]. - The company declared a dividend of $0.20 per common share for the three months ended September 30, 2025, consistent with the previous quarter and an increase from $0.18 year-over-year[40]. - The company repurchased 255,767 shares of common stock at a weighted-average price of $19.41, totaling $5.0 million during the current year-to-date period[31]. - The company has an authorized repurchase of 322,010 additional shares under its current stock repurchase program, expiring on July 31, 2026[31]. Operational Efficiency - The efficiency ratio improved to 48.92% for the three months ended September 30, 2025, down from 50.63% in the previous quarter and 57.63% year-over-year[40]. - Return on average assets (ROAA) improved to 1.35% from 1.13% in the previous quarter and 1.08% year-over-year[5]. - Return on average equity (ROAE) improved to 11.92% for the three months ended September 30, 2025, up from 9.76% in the previous quarter and 8.70% year-over-year[40].

Part I - Financial Information [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for PCB Bancorp as of June 30, 2025, and for the three and six-month periods then ended [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $3.31 billion from $3.06 billion at year-end 2024, primarily driven by a $162.0 million increase in net loans Consolidated Balance Sheet Highlights (Unaudited) | ($ in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,305,589** | **$3,063,971** | | Net loans held-for-investment | $2,761,755 | $2,598,759 | | Total cash and cash equivalents | $263,567 | $198,792 | | **Total Liabilities** | **$2,929,089** | **$2,700,157** | | Total deposits | $2,822,915 | $2,615,791 | | Federal Home Loan Bank advances | $45,000 | $0 | | **Total Shareholders' Equity** | **$376,500** | **$363,814** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) For the second quarter of 2025, net income available to common shareholders was $9.0 million, a 46.3% increase from $6.1 million in the same period of 2024 Key Income Statement Data (Unaudited) | ($ in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $25,990 | $21,735 | $50,273 | $42,734 | | Provision for credit losses | $1,787 | $259 | $3,385 | $1,349 | | Noninterest income | $3,297 | $2,485 | $5,877 | $5,430 | | Noninterest expense | $14,829 | $15,175 | $29,303 | $31,527 | | **Net income** | **$9,071** | **$6,281** | **$16,806** | **$10,966** | | **Net income available to common shareholders** | **$8,984** | **$6,139** | **$16,679** | **$10,824** | | **Earnings per common share, diluted** | **$0.62** | **$0.43** | **$1.15** | **$0.75** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for the second quarter of 2025 was $9.6 million, compared to $6.2 million in the prior year's quarter Comprehensive Income (Unaudited) | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $9,071 | $6,281 | $16,806 | $10,966 | | Other comprehensive income (loss), net of tax | $516 | $(72) | $2,791 | $(1,227) | | **Total comprehensive income** | **$9,587** | **$6,209** | **$19,597** | **$9,739** | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity increased from $363.8 million at the beginning of 2025 to $376.5 million at June 30, 2025 - For the six months ended June 30, 2025, the company repurchased **149,304 shares** of common stock for **$2.7 million**[17](index=17&type=chunk) - Cash dividends declared on common stock totaled **$5.7 million** (**$0.40 per share**) for the first six months of 2025, an increase from **$5.1 million** (**$0.36 per share**) in the same period of 2024[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash and cash equivalents increased by $64.8 million Cash Flow Summary (Unaudited) | ($ in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,244 | $22,876 | | Net cash used in investing activities | $(172,174) | $(133,884) | | Net cash provided by financing activities | $229,705 | $46,296 | | **Net increase (decrease) in cash** | **$64,775** | **$(64,712)** | [Notes to Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes provide detailed information supporting the financial statements, including loan portfolio composition, allowance for credit losses, fair value measurements, and regulatory capital ratios - The Allowance for Credit Losses (ACL) on loans increased to **$33.6 million** at June 30, 2025, from **$30.6 million** at year-end 2024[54](index=54&type=chunk) - Nonaccrual loans increased significantly to **$8.9 million** at June 30, 2025, from **$4.7 million** at December 31, 2024[65](index=65&type=chunk) - The company has an option agreement to repurchase its Series C Preferred Stock issued under the ECIP program, potentially at a discount, but must meet certain lending thresholds[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - Both PCB Bancorp and PCB Bank met all capital adequacy requirements as of June 30, 2025, with capital conservation buffers of **6.64%** and **6.47%**, respectively, well above the **2.50%** requirement[106](index=106&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial performance and condition, highlighting a 46.3% increase in Q2 2025 net income year-over-year, driven by a 19.6% rise in net interest income Q2 2025 Financial Highlights | Metric | Q2 2025 | Change from Q2 2024 | | :--- | :--- | :--- | | Net Income (common) | $9.0 million | +46.3% | | Net Interest Income | $26.0 million | +19.6% | | Net Interest Margin | 3.33% | +17 bps | | Provision for Credit Losses | $1.8 million | +$1.5 million | | Gain on Sale of Loans | $1.5 million | +92.0% | Balance Sheet Highlights (vs. Dec 31, 2024) | Metric | June 30, 2025 | Change from Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3.31 billion | +7.9% | | Loans Held-for-Investment | $2.80 billion | +6.3% | | Total Deposits | $2.82 billion | +7.9% | | ACL to Loans Ratio | 1.20% | +4 bps | [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Q2 2025 net interest income rose 19.6% year-over-year to $26.0 million, benefiting from a 13.1% increase in average earning assets - The increase in net interest income for Q2 2025 was primarily driven by a **$6.3 million** positive volume impact on loans, offsetting a **$1.9 million** negative rate impact[143](index=143&type=chunk) - The provision for credit losses increased significantly in Q2 2025 primarily due to growth in loans held-for-investment, an increase in substandard and nonaccrual loans, and a worsened economic forecast[156](index=156&type=chunk)[180](index=180&type=chunk) - Gain on sale of loans increased to **$1.5 million** in Q2 2025 from **$763 thousand** in Q2 2024, due to a higher volume of SBA loans sold (**$26.9 million** vs. **$13.6 million**)[158](index=158&type=chunk) - Noninterest expense decreased in Q2 2025, with professional fees and data processing costs declining due to the completion of a core system conversion in April 2024[163](index=163&type=chunk)[164](index=164&type=chunk) [Financial Condition](index=58&type=section&id=Financial%20Condition) As of June 30, 2025, the company's financial condition strengthened, with total assets reaching $3.31 billion Loan Portfolio Composition | ($ in thousands) | June 30, 2025 | % of Total | Dec 31, 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Total commercial real estate | $1,886,460 | 67.6% | $1,752,552 | 66.7% | | Commercial and industrial | $492,857 | 17.6% | $472,763 | 18.0% | | Total consumer | $415,992 | 14.8% | $404,072 | 15.3% | | **Total Loans Held-for-Investment** | **$2,795,309** | **100.0%** | **$2,629,387** | **100.0%** | Deposit Composition | ($ in thousands) | June 30, 2025 | % of Total | Dec 31, 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Noninterest-bearing demand | $575,905 | 20.4% | $547,853 | 20.9% | | Savings, NOW & money market | $551,493 | 19.5% | $466,887 | 17.9% | | Time deposits | $1,695,517 | 60.1% | $1,601,051 | 61.2% | | **Total Deposits** | **$2,822,915** | **100.0%** | **$2,615,791** | **100.0%** | - Nonperforming assets increased to **$8.9 million** (**0.27%** of total assets) at June 30, 2025, from **$4.7 million** (**0.15%** of total assets) at December 31, 2024, a **90.3%** increase[184](index=184&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position, with cash and cash equivalents increasing to $263.6 million and total available borrowing capacity rising to $1.59 billion Available Liquidity Sources | ($ in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $263,567 | $198,792 | | FHLB advances capacity | $750,671 | $722,439 | | Federal Reserve Discount Window | $774,881 | $586,525 | | Overnight federal funds lines | $65,000 | $50,000 | | **Total Available Liquidity** | **$1,854,119** | **$1,557,756** | - The company repurchased **149,304 shares** of common stock for **$2.7 million** during the first six months of 2025[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company actively manages interest rate risk through its Asset Liability Committee (ALCO) using Net Interest Income (NII) at Risk and Economic Value of Equity (EVE) models Interest Rate Sensitivity Analysis (June 30, 2025) | Simulated Rate Change (bps) | Net Interest Income Sensitivity | Economic Value of Equity Sensitivity | | :--- | :--- | :--- | | +200 | +7.9% | -3.6% | | +100 | +4.0% | -1.3% | | -100 | -5.9% | -1.3% | | -200 | -12.3% | -5.4% | - The company's net interest income sensitivity analysis shows an **asset sensitive** profile, primarily due to a large proportion of variable-rate loans linked to the Prime Rate[223](index=223&type=chunk) [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were ineffective as of June 30, 2025, due to a material weakness in internal control over financial reporting - A material weakness was identified in the company's internal control over financial reporting related to the evaluation of unusual or infrequent derivative contracts for proper accounting treatment[226](index=226&type=chunk) - Due to this material weakness, management concluded that disclosure controls and procedures were ineffective as of June 30, 2025[226](index=226&type=chunk) - Management is implementing a remediation plan which includes enhanced review by the disclosure committee and engaging third-party assistance for complex accounting matters[227](index=227&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal claims arising in the normal course of business, with $190 thousand accrued for loss contingencies as of June 30, 2025 - The company has accrued **$190 thousand** for legal claim loss contingencies as of June 30, 2025[229](index=229&type=chunk) [Item 1A. Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) This section highlights material changes to risk factors, focusing on a new material weakness in internal controls and the risk of not meeting ECIP repurchase conditions - A new risk factor has been identified concerning the material weakness in internal control over financial reporting, which could cause investors to lose confidence in the company's financial information[231](index=231&type=chunk)[232](index=232&type=chunk) - The company may not satisfy the lending and other requirements necessary to exercise its option to repurchase the Series C Preferred Stock issued under the ECIP, potentially at a substantial discount[233](index=233&type=chunk)[234](index=234&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities in Q2 2025, but the company repurchased 98,628 shares of common stock during the quarter Share Repurchase Activity (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 98,228 | $17.94 | | May 2025 | 0 | $0.00 | | June 2025 | 400 | $18.98 | | **Total Q2 2025** | **98,628** | **$17.95** | [Item 3. Defaults Upon Senior Securities](index=73&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None - There were no defaults upon senior securities during the reporting period[238](index=238&type=chunk) [Item 4. Mine Safety Disclosures](index=73&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - This item is not applicable to the company[239](index=239&type=chunk) [Item 5. Other Information](index=73&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, no officer or director of the company adopted or terminated a Rule 10b5-1 trading plan or any other non-Rule 10b5-1 trading arrangement - No new Rule 10b5-1 trading plans were adopted or terminated by officers or directors in Q2 2025[240](index=240&type=chunk) [Item 6. Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, various agreements, and certifications by the CEO and CFO

Company Overview - PCB Bancorp (PCB) is headquartered in Los Angeles and has experienced a price change of 2.62% this year [3] - The company currently pays a dividend of $0.20 per share, resulting in a dividend yield of 3.85%, which is significantly higher than the Banks - Southwest industry's yield of 1.33% and the S&P 500's yield of 1.49% [3] Dividend Performance - PCB Bancorp's annualized dividend of $0.80 has increased by 11.1% from the previous year [4] - Over the past 5 years, PCB has raised its dividend 3 times, achieving an average annual increase of 17.02% [4] - The current payout ratio for PCB is 38%, indicating that the company distributes 38% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for PCB's earnings in 2025 is $2.37 per share, reflecting a year-over-year earnings growth rate of 36.21% [5] - The company's strong earnings growth prospects are expected to support future dividend growth, which will depend on earnings growth and the payout ratio [4][5] Investment Considerations - PCB is positioned as a compelling investment opportunity due to its strong dividend profile and solid earnings growth potential [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6]

Core Viewpoint - PCB Bancorp reported strong growth and profitability in Q2 2025, with earnings per share of $0.62, exceeding analyst estimates, despite some emerging credit quality concerns in consumer lending [1][2]. Financial Performance - Earnings per share (EPS) for Q2 2025 was $0.62, beating the estimate of $0.56 and showing a year-over-year increase of 44.2% from $0.43 in Q2 2024 [2]. - Net interest income was reported at $26.0 million, below the consensus estimate of $28.63 million, but up 19.6% from $21.7 million in Q2 2024 [2]. - Net income available to common shareholders reached $9.0 million, a 46.3% increase from $6.1 million in the same quarter last year [2]. - The efficiency ratio improved to 50.6%, down from 62.7% a year earlier, indicating better cost management [2]. Lending and Deposit Growth - Loans held-for-investment increased to $2.80 billion, a 14.1% rise year-over-year, with commercial real estate loans comprising 66.7% of total loans [5]. - Commercial real estate loans grew by 15.6% year-over-year, while commercial and industrial loans rose by 18.1% [5]. - Total deposits reached $2.82 billion, reflecting a 17.3% increase from the previous year, although the proportion of noninterest-bearing deposits decreased to 20.4% [7]. Fee Income and Efficiency - The bank achieved notable fee income from SBA loan sales, totaling $26.9 million, nearly double the previous year's amount, with gains of $1.5 million, a 92% increase year-over-year [6]. - The net interest margin improved compared to the previous year, contributing to overall earnings growth [6]. Credit Quality Concerns - The allowance for credit losses rose to 1.20% of loans, with non-performing loans increasing to $8.9 million, or 0.32% of loans held-for-investment [8]. - There was a significant increase in nonaccrual residential mortgages, up 402.4% year-over-year, and classified assets nearly doubled compared to the previous quarter [8]. Management Outlook - Management expressed optimism about continued organic growth, emphasizing loan and deposit momentum, a solid liquidity position, and strong capital ratios [9]. - No numeric forward guidance was provided for the remainder of fiscal 2025, but external risks such as inflation and trade uncertainty were acknowledged [9].

Financial Performance - PCB Bancorp reported revenue of $29.29 million for the quarter ended June 2025, marking a year-over-year increase of 20.9% [1] - The earnings per share (EPS) for the same period was $0.62, compared to $0.43 a year ago, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $29.15 million by 0.47% [1] - The EPS also surpassed the consensus estimate of $0.60 by 3.33% [1] Key Metrics - Total interest-earning assets averaged $3.13 billion, slightly below the estimated $3.14 billion [4] - The efficiency ratio was reported at 50.6%, better than the average estimate of 52.9% [4] - Non-Performing Loans stood at $8.93 million, higher than the average estimate of $6.47 million [4] - The net interest margin was consistent at 3.3%, matching the average estimate [4] - Total Noninterest Income was $3.3 million, slightly above the average estimate of $3.2 million [4] - Net Interest Income was reported at $25.99 million, marginally exceeding the estimate of $25.95 million [4] Stock Performance - Shares of PCB Bancorp have returned +5.1% over the past month, compared to the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]