PCB Bancorp(US:PCB)2025-11-07 21:06Financial 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]