PCB Bancorp(PCB) - 2025 Q4 - Annual Results

Financial Performance - Net income available to common shareholders for Q4 2025 was $9.1 million, or $0.64 per diluted share, compared to $11.3 million, or $0.78 per diluted share in Q3 2025, and $6.7 million, or $0.46 per diluted share in Q4 2024[1][3][6] - For the full year 2025, net income available to common shareholders was $37.2 million, or $2.58 per diluted share, an increase of 48.8% from $25.0 million, or $1.74 per diluted share in 2024[1][6] - Net income for Q4 2025 was $9,235,000, a decline of 19.1% from Q3 2025 but an increase of 31.4% from Q4 2024[42] - Earnings per common share for Q4 2025 was $0.64, down from $0.79 in Q3 2025 but up from $0.47 in Q4 2024[42] - Return on average equity (ROAE) for Q4 2025 was 9.45%, compared to 7.69% in Q4 2024, indicating improved profitability[51] Loan and Deposit Activity - Total loan growth for Q4 2025 was $70 million, representing a 10% annualized growth rate, driven by strong loan demand[4] - Total deposits decreased by $118 million, or 4.1%, to $2.80 billion in Q4 2025, primarily due to a reduction in brokered deposits[6] - Loans held-for-investment increased by $67.9 million, or 2.5%, to $2.82 billion at December 31, 2025, and increased by $191.0 million, or 7.3%, from $2.63 billion at December 31, 2024[6] - Total deposits amounted to $2.80 billion as of December 31, 2025, a decrease of 4.0% from $2.91 billion at September 30, 2025, but an increase of 6.9% from $2.62 billion at December 31, 2024[30] - The total loan to total deposit ratio increased to 101.33% on 12/31/2025 from 94.81% on 9/30/2025, indicating a higher reliance on loans relative to deposits[40] Interest Income and Margin - Net interest income for Q4 2025 was $26,627,000, a decrease of 1.3% from Q3 2025, but an increase of 14.9% from Q4 2024[10] - Total interest income for Q4 2025 was $49,865,000, a decrease of 3.1% from Q3 2025 but an increase of 7.7% from Q4 2024[42] - Net interest margin was maintained at 3.28% for Q4 2025, consistent with Q3 2025, and improved from 3.18% in Q4 2024[5][6] - The average yield on loans was 6.44% for Q4 2025, down from 6.58% in Q3 2025 and 6.63% in Q4 2024[10] Credit Losses and Provisions - Provision for credit losses was $1.0 million for Q4 2025, compared to a reversal of $(381) thousand in Q3 2025 and $2.0 million in Q4 2024[6] - Total provision for credit losses was $1,024,000 in Q4 2025, down 48.9% from $2,002,000 in Q4 2024[14] - Provision for credit losses on loans for Q4 2025 was $791,000, a significant increase from a reversal of $428,000 in Q3 2025, and a decrease of 61.3% from $2,044,000 in Q4 2024[14] Noninterest Income and Expenses - Noninterest income for the full year 2025 was $11.8 million, a 6.7% increase from $11.1 million in 2024[6] - Total noninterest income for the three months ended December 31, 2025, was $2,545 thousand, a decrease of 25.5% from $3,414 thousand in the previous quarter and a decrease of 16.4% from $3,043 thousand in the same period last year[15] - Total noninterest expense for the three months ended December 31, 2025, was $15,026 thousand, an increase of 1.1% from $14,869 thousand in the previous quarter and an increase of 8.1% from $13,894 thousand in the same period last year[16] Asset Management - Total assets decreased by $81.7 million, or 2.4%, to $3.28 billion at December 31, 2025, but increased by $217.8 million, or 7.1%, from $3.06 billion at December 31, 2024[6] - The company experienced a decrease in cash and cash equivalents, contributing to the decline in total assets for the current quarter[22] - Total investment securities rose to $160.0 million, reflecting a 6.5% increase from $150.3 million at September 30, 2025[28] Shareholder Equity - Shareholders' equity increased to $390.0 million at December 31, 2025, a rise of 1.4% from $384.5 million at September 30, 2025[33] - The book value per common share increased to $27.41 on 12/31/2025 from $26.93 on 9/30/2025, reflecting a growth of 1.8%[40] - Total shareholders' equity as of December 31, 2025, was $390,026 thousand, an increase from $363,814 thousand in the previous year[52] Risk Factors - The company has identified various risks and uncertainties that could impact future performance, including economic conditions, regulatory changes, and operational risks[38]