PCB Bancorp(PCB) - 2024 Q4 - Annual Results

Financial Performance - Net income available to common shareholders for Q4 2024 was $6.7 million, or $0.46 per diluted common share, a decrease of 10.5% from the previous quarter and an increase of 13.1% year-over-year[1]. - For the full year 2024, net income available to common shareholders was $25.0 million, or $1.74 per diluted common share, down 18.7% from $30.7 million in 2023[1]. - Total noninterest income for Q4 2024 was $3,043,000, an increase of 16.1% from Q3 2024 and 21.6% from Q4 2023[15]. - Gain on sale of loans reached $1,161,000 in Q4 2024, up 54.8% from Q3 2024 and 44.6% from Q4 2023[15]. - The company reported a net income of $7,030 thousand, reflecting a 10.0% decrease from the previous quarter but a 19.0% increase year-over-year[44]. - Return on average assets was reported at 0.94%, with a year-over-year increase from 0.89%[44]. - Return on average tangible common equity (TCE) for the year ended December 31, 2024, was 8.72%, compared to 11.31% for the previous year[53]. Credit Losses - Provision for credit losses increased to $2.0 million in Q4 2024 from $50 thousand in Q3 2024, and $1.7 million in Q4 2023[3]. - The provision for credit losses saw a significant increase to $2,002 thousand, a 3,904.0% rise compared to the previous quarter[44]. - The allowance for credit losses (ACL) on loans increased by 5.9% to $30.63 million as of December 31, 2024, compared to $28.93 million on September 30, 2024[28]. - Non-performing loans (NPLs) decreased by 29.0% to $4.69 million as of December 31, 2024, from $6.61 million on September 30, 2024[27]. Assets and Liabilities - Total assets reached $3.06 billion at December 31, 2024, reflecting a 6.0% increase from $2.89 billion at September 30, 2024, and a 9.8% increase from $2.79 billion at December 31, 2023[4]. - Total liabilities increased to $2,616,813 thousand, up from $2,509,331 thousand[46]. - Total funding increased to $2,548,818,000, a 4.3% increase from the previous quarter and a 13.3% increase year-over-year[7]. - Total assets grew to $2,877,886 as of December 31, 2024, compared to $2,549,759 at the end of 2023[49]. Loans and Deposits - Loans held-for-investment grew to $2.63 billion, up 6.6% from $2.47 billion at September 30, 2024, and up 13.2% from $2.32 billion at December 31, 2023[4]. - Total deposits increased to $2.62 billion, a rise of 6.3% from $2.46 billion at September 30, 2024, and an 11.2% increase from $2.35 billion at December 31, 2023[4]. - Retail time deposits increased by $94.7 million due to new accounts in the current quarter[31]. - Noninterest-bearing demand deposits decreased to 20.9% of total deposits as of December 31, 2024, down from 25.3% a year earlier[30]. Interest Income and Expenses - Net interest income for Q4 2024 was $23.2 million, a 2.0% increase from the previous quarter and a 5.7% increase year-over-year[4]. - Total interest income reached $46,319 thousand, reflecting a 4.9% increase from the prior quarter and a 13.1% increase year-over-year[44]. - The average yield on loans decreased to 6.63% for the current quarter, down from 6.82% in the previous quarter, primarily due to a decrease in market rates[9]. - The net interest margin for the current quarter was 3.18%, down from 3.25% in the previous quarter[7]. Operational Efficiency - The efficiency ratio improved to 53.02% in Q4 2024, down from 57.63% in Q3 2024 and 59.23% in Q4 2023[4]. - Total noninterest expense decreased to $13,894,000 in Q4 2024, down 4.8% from Q3 2024 and 4.0% from Q4 2023[16]. - Salaries and employee benefits for Q4 2024 were $8,417,000, a decrease of 4.4% from Q3 2024[16]. - Marketing and business promotion expenses decreased by 19.0% year-over-year to $1,886,000[16]. Shareholder Information - Shareholders' equity rose to $363.8 million, reflecting a 4.3% increase from $348.9 million at December 31, 2023[33]. - The company repurchased 14,947 shares of common stock in 2024 at a weighted-average price of $14.88, totaling $222 thousand[34]. - The company began paying quarterly dividends on Series C Preferred Stock at an annualized rate of 2% in Q2 2024, totaling $346 thousand for the current quarter[37]. - The company is authorized to purchase an additional 577,777 shares under its current stock repurchase program, which expires on August 2, 2025[34].