PCB Bancorp(PCB) - 2025 Q3 - Quarterly Results

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].