PCB Bancorp(PCB) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2025, was $7,735,000, an increase of 64.9% compared to$ 4,685,000 for the same period in 2024[12] - Total revenue, net of interest expense, increased to $26,863,000 for the three months ended March 31, 2025, up from$ 23,944,000 in 2024, reflecting a growth of 12.4%[113] - Basic earnings per share for the three months ended March 31, 2025, was $0.53, up from$ 0.33 in 2024, representing a 60.6% increase[99] - The Company reported net income available to common shareholders of $7.695 million for the three months ended March 31, 2025, compared to$ 4.685 million in 2024, a 64.3% increase[99] - The return on average assets improved to 1.00% for the three months ended March 31, 2025, compared to 0.67% for the same period in 2024[113] Interest Income and Expenses - Total interest income rose to $46,892,000 in Q1 2025, up 7.4% from$ 43,555,000 in Q1 2024[12] - Net interest income after provision for credit losses increased to $22,685,000, compared to$ 19,909,000 in the prior year, reflecting a growth of 13.9%[12] - Interest paid for the three months ended March 31, 2025, was $25,659,000, compared to$ 23,866,000 for the same period in 2024, reflecting an increase of approximately 7.5%[17] - The net interest margin improved to 3.28% for the three months ended March 31, 2025, compared to 3.10% in 2024[113] Credit Losses and Provisions - The provision for credit losses increased to $1,598,000 in Q1 2025, compared to$ 1,090,000 in Q1 2024, indicating a rise of 46.5%[12] - The provision for credit losses on loans for the three months ended March 31, 2025, was $1,591 thousand, up from$ 922 thousand for the same period in 2024, representing a year-over-year increase of 72.6%[51] - The total provision for credit losses, including off-balance sheet credit exposures, was $1,598 thousand for the three months ended March 31, 2025, compared to$ 1,090 thousand in 2024, marking a 46.6% increase[51] Noninterest Income and Expenses - Noninterest income decreased to $2,580,000 in Q1 2025 from$ 2,945,000 in Q1 2024, a decline of 12.4%[12] - Total noninterest expense decreased to $14,474,000, down 11.4% from$ 16,352,000 in the same quarter last year[12] Deposits and Cash - The net change in deposits for the quarter was $98,608,000, compared to$ 51,228,000 in the same quarter last year, showing a significant increase of 92.5%[16] - Cash and cash equivalents at the end of the period were $214,348,000, compared to$ 239,791,000 at the end of Q1 2024, reflecting a decrease of 10.6%[16] Securities and Fair Value - The total fair value of securities available-for-sale as of March 31, 2025, was $148,190,000, an increase from$ 146,349,000 as of December 31, 2024[37] - The total securities available-for-sale as of March 31, 2025, had an amortized cost of $158,364 thousand and a fair value of$ 148,190 thousand, reflecting a gross unrealized loss of $10,707 thousand[40] - The company's securities available-for-sale with unrealized losses totaled$ 108,550 thousand as of December 31, 2024, with $10,707 thousand in unrealized losses across 182 securities[45] Loans and Credit Quality - The total loans held-for-investment amounted to$ 2,727,610 thousand as of March 31, 2025, an increase from $2,629,387 thousand as of December 31, 2024, reflecting a growth of approximately 3.73%[50] - The company continues to receive timely principal and interest payments on its investment-grade rated municipal and corporate bonds, indicating strong credit quality[46] - Total nonaccrual loans as of March 31, 2025, amounted to$ 6,248,000, an increase from $4,693,000 on December 31, 2024, representing a 33.1% increase[64] Capital and Shareholder Returns - PCB Bancorp's common tier 1 capital ratio was 12.52%, significantly above the minimum requirement of 4.5%[107] - Total capital to risk-weighted assets for PCB Bancorp was 16.25% as of March 31, 2025, exceeding the minimum requirement of 8.0%[107] - Cash dividends declared on common stock increased to$ 0.20 per share in Q1 2025, up from $0.18 per share in Q1 2024[15] Stock and Compensation - The total share-based compensation expense for the three months ended March 31, 2025, was$ 230,000, compared to $136,000 for the same period in 2024, reflecting a 68.4% increase[94] - The Company repurchased and retired 14,947 shares of common stock at a weighted-average price of$ 14.88 per share during the year ended December 31, 2024[90] - For the three months ended March 31, 2025, the Company repurchased 50,676 shares at a weighted-average price of $18.80 per share, with authorization to purchase an additional 527,101 shares[91] Economic and Market Conditions - The Federal Open Market Committee (FOMC) maintained the upper range of the Fed Funds Target Rate at 4.50% as of March 19, 2025, and plans to reduce the monthly redemption cap on Treasury securities from$ 25 billion to $5 billion starting in April[210] - The Company's deposit portfolio is sensitive to changes in short-term interest rates, although a significant portion consists of non-maturity deposits not directly tied to these rates[211]