PCB Bancorp (the "Company") (NASDAQ:PCB), the holding company of PCB Bank (the "Bank"), today reported net income available to common shareholders of $9.1 million, or $0.64 per diluted common share, for the fourth quarter of 2025, compared with $11.3 million, or $0.78 per diluted common share, for the previous quarter and $6.7 million, or $0.46 per diluted common share, for the year-ago quarter. For 2025, net income available to common shareholders was $37.2 million, or $2.58 per diluted common share, compared with $25.0 million, or $1.74 per diluted common share, for the previous year.

Q4 2025 and Full Year Highlights

Net income available to common shareholders totaled $9.1 million, or $0.64 per diluted common share, for the current quarter and $37.2 million, or $2.58 per diluted common share, for the current year;

Provision (reversal) for credit losses was $1.0 million for the current quarter compared with $(381) thousand for the previous quarter and $2.0 million for the year-ago quarter. For the current year, provision for credit losses was $4.0 million compared with $3.4 million for the previous year;

Allowance for Credit Losses ("ACL") on loans to loans held-for-investment ratio was 1.18% at December 31, 2025 compared with 1.20% at September 30, 2025, and 1.16% at December 31, 2024;

Net interest income was $26.6 million for the current quarter compared with $27.0 million for the previous quarter and $23.2 million for the year-ago quarter. Net interest margin was 3.28% for the current quarter compared with 3.28% for the previous quarter and 3.18% for the year-ago quarter. For the current year, net interest income and net interest margin were $103.9 million and 3.29%, respectively, compared with $88.6 million and 3.17%, respectively, for the previous year;

Gain on sale of loans was $648 thousand for the current quarter compared with $1.6 million for the previous quarter and $1.2 million for the year-ago quarter. For the current year, gain on sale of loans was $4.6 million compared with $3.8 million for the previous year;

Total assets were $3.28 billion at December 31, 2025, a decrease of $81.7 million, or 2.4%, from $3.36 billion at September 30, 2025, but an increase of $217.8 million, or 7.1%, from $3.06 billion at December 31, 2024;

Loans held-for-investment were $2.82 billion at December 31, 2025, an increase of $67.9 million, or 2.5%, from $2.75 billion at September 30, 2025, and an increase of $191.0 million, or 7.3%, from $2.63 billion at December 31, 2024; and

Total deposits were $2.80 billion at December 31, 2025, a decrease of $118.1 million, or 4.1%, from $2.91 billion at September 30, 2025, but an increase of $179.6 million, or 6.9%, from $2.62 billion at December 31, 2024.

Henry Kim, President and CEO, commented, "We are pleased to report fourth quarter net income of $9.1 million or $0.64 per diluted share and for the full year 2025, net income of $37.2 million or $2.58 per diluted share.

Our total loan growth for the quarter was $70 million or 10% on an annualized basis as we continue to experience strong loan demand. Deposit decreased $118 million for the quarter due to a reduction of $100 million in brokered deposits and $18 million in retail deposits. Retail deposit balance decreased primarily because we intentionally did not compete with marketplace deposit rates that remain elevated despite recent FOMC rate cuts.

However, despite the elevated deposit rates in our marketplace and recent interest rate cuts that decreased the yield on our variable loan portfolio, we effectively maintained our net interest margin at 3.28% during the fourth quarter. Additionally, expenses were well-controlled, and the credit quality remained solid."

Mr. Kim continued, "Heading into 2026, even with the backdrop of ongoing geopolitical tensions and domestic conflicts, our loan pipeline remains strong."

Financial Highlights (Unaudited)

($ in thousands, except per share data)	Three Months Ended													Year Ended
($ in thousands, except per share data)	12/31/2025			9/30/2025			% Change		12/31/2024			% Change		12/31/2025			12/31/2024			% Change
Net income	$	9,235		$	11,412		(19.1	)%	$	7,030		31.4	%	$	37,453		$	25,810		45.1	%
Net income available to common shareholders	$	9,148		$	11,326		(19.2	)%	$	6,684		36.9	%	$	37,153		$	24,976		48.8	%
Diluted earnings per common share ("EPS")	$	0.64		$	0.78		(17.9	)%	$	0.46		39.1	%	$	2.58		$	1.74		48.3	%

Net interest income	$	26,627		$	26,978		(1.3	)%	$	23,164		14.9	%	$	103,878		$	88,617		17.2	%
Provision (reversal) for credit losses		1,024			(381	)	NA			2,002		(48.9	)%		4,028			3,401		18.4	%
Noninterest income		2,545			3,414		(25.5	)%		3,043		(16.4	)%		11,836			11,093		6.7	%
Noninterest expense		15,026			14,869		1.1	%		13,894		8.1	%		59,198			60,023		(1.4	)%

Return on average assets ("ROAA") ⁽¹⁾		1.11	%		1.35	%				0.94	%				1.15	%		0.90	%
Return on average shareholders' equity ("ROAE") ⁽¹⁾		9.45	%		11.92	%				7.69	%				9.93	%		7.26	%
Return on average tangible common equity ("ROATCE") ^(1),(2)		11.40	%		14.46	%				9.02	%				12.07	%		8.72	%
Net interest margin ⁽¹⁾		3.28	%		3.28	%				3.18	%				3.29	%		3.17	%
Efficiency ratio ⁽³⁾		51.51	%		48.92	%				53.02	%				51.16	%		60.20	%

($ in thousands, except per share data)	12/31/2025			9/30/2025			% Change		12/31/2024			% Change
Total assets	$	3,281,771		$	3,363,506		(2.4	)%	$	3,063,971		7.1	%
Net loans held-for-investment		2,787,019			2,719,554		2.5	%		2,598,759		7.2	%
Total deposits		2,795,412			2,913,502		(4.1	)%		2,615,791		6.9	%
Book value per common share ⁽⁴⁾	$	27.41		$	26.93				$	25.30
TCE per common share⁽²⁾	$	22.55		$	22.09				$	20.49
Tier 1 leverage ratio (consolidated)		11.89	%		11.57	%				12.45	%
Total shareholders' equity to total assets		11.88	%		11.43	%				11.87	%
TCE to total assets ^{(2), (5)}		9.78	%		9.38	%				9.62	%

(1)		Ratios for the three months ended periods are presented on an annualized basis.
(2)		Non-GAAP. See "Non-GAAP Financial Measures" for a reconciliation of this measure to its most comparable GAAP measure.
(3)		Calculated by dividing noninterest expense by the sum of net interest income and noninterest income.
(4)		Calculated by dividing total shareholders' equity by the number of outstanding common shares.
(5)		The Company had no intangible asset component for the presented periods.

Result of Operations (Unaudited)

Net Interest Income and Net Interest Margin

The following table presents the components of net interest income for the periods indicated:

	Three Months Ended													Year Ended
($ in thousands)	12/31/2025			9/30/2025			% Change		12/31/2024			% Change		12/31/2025			12/31/2024			% Change
Interest income/expense on
Loans	$	45,648		$	46,193		(1.2	)%	$	42,309		7.9	%	$	180,345		$	164,301		9.8	%
Investment securities		1,516			1,474		2.8	%		1,388		9.2	%		5,860			5,328		10.0	%
Other interest-earning assets		2,701			3,804		(29.0	)%		2,622		3.0	%		11,331			11,188		1.3	%
Total interest-earning assets		49,865			51,471		(3.1	)%		46,319		7.7	%		197,536			180,817		9.2	%
Interest-bearing deposits		23,197			23,995		(3.3	)%		22,927		1.2	%		92,261			90,487		2.0	%
Borrowings		41			498		(91.8	)%		228		(82.0	)%		1,397			1,713		(18.4	)%
Total interest-bearing liabilities		23,238			24,493		(5.1	)%		23,155		0.4	%		93,658			92,200		1.6	%
Net interest income	$	26,627		$	26,978		(1.3	)%	$	23,164		14.9	%	$	103,878		$	88,617		17.2	%
Average balance of
Loans	$	2,810,897		$	2,784,148		1.0	%	$	2,538,310		10.7	%	$	2,757,090		$	2,445,080		12.8	%
Investment securities		156,819			152,084		3.1	%		147,943		6.0	%		151,653			144,455		5.0	%
Other interest-earning assets		250,215			327,637		(23.6	)%		207,234		20.7	%		247,358			203,279		21.7	%
Total interest-earning assets	$	3,217,931		$	3,263,869		(1.4	)%	$	2,893,487		11.2	%	$	3,156,101		$	2,792,814		13.0	%
Interest-bearing deposits	$	2,311,423		$	2,326,170		(0.6	)%	$	1,986,901		16.3	%	$	2,241,953		$	1,892,944		18.4	%
Borrowings		4,011			43,109		(90.7	)%		17,946		(77.6	)%		30,619			31,033		(1.3	)%
Total interest-bearing liabilities	$	2,315,434		$	2,369,279		(2.3	)%	$	2,004,847		15.5	%	$	2,272,572		$	1,923,977		18.1	%
Total funding ⁽¹⁾	$	2,853,402		$	2,910,522		(2.0	)%	$	2,548,818		12.0	%	$	2,804,998		$	2,463,240		13.9	%
Annualized average yield/cost of
Loans		6.44	%		6.58	%				6.63	%				6.54	%		6.72	%
Investment securities		3.84	%		3.85	%				3.73	%				3.86	%		3.69	%
Other interest-earning assets		4.28	%		4.61	%				5.03	%				4.58	%		5.50	%
Total interest-earning assets		6.15	%		6.26	%				6.37	%				6.26	%		6.47	%
Interest-bearing deposits		3.98	%		4.09	%				4.59	%				4.12	%		4.78	%
Borrowings		4.06	%		4.58	%				5.05	%				4.56	%		5.52	%
Total interest-bearing liabilities		3.98	%		4.10	%				4.59	%				4.12	%		4.79	%
Net interest margin		3.28	%		3.28	%				3.18	%				3.29	%		3.17	%
Cost of total funding ⁽¹⁾		3.23	%		3.34	%				3.61	%

PCB Bancorp Reports Earnings for Q4 2025 and Full Year 2025