PCB Bancorp Reports Fourth Quarter Growth Despite Declining Net Income and Rising Credit Loss Provisions

PCB Bancorp Reports Fourth Quarter Results Amid Growing Loan Portfolio

PCB Bancorp, the holding company for PCB Bank, announces its financial results for the fourth quarter of 2024, showcasing a net income of $6.7 million, or $0.46 per diluted share. This marks a decrease from $7.5 million, or $0.52 per share, reported in the previous quarter but reflects an increase from $5.9 million, or $0.41 per share, in the same quarter of the prior year. The bank's total income for the year available to common shareholders stands at $25.0 million, which translates to $1.74 per diluted share. This is a decline compared to $30.7 million, or $2.12 per share, in 2023. Despite the dip in quarterly net income, PCB Bancorp's overall growth trajectory is evident in its escalating assets and robust loan portfolio.

A significant factor influencing these results is the considerable rise in the provision for credit losses, which surged to $2.0 million for the fourth quarter. This stands in stark contrast to just $50,000 in the previous quarter and $1.7 million for the same period last year. The total provision for the year amounts to $3.4 million, a considerable shift from a reversal of $132,000 in 2023. This uptick underscores PCB Bancorp's proactive approach to managing credit risk, especially in a dynamic economic environment that may present challenges for borrowers. The increase in provisions indicates the company’s vigilance and commitment to maintaining its financial health amid potential uncertainties.

As of December 31, 2024, PCB Bancorp reports total assets of $3.06 billion, marking a 6.0% increase from the previous quarter and a notable 9.8% rise year-over-year. The bank’s loans held-for-investment also rise to $2.63 billion, reflecting a 6.6% quarterly increase and an impressive 13.2% growth compared to the same time last year. Total deposits have similarly increased to $2.62 billion, demonstrating a 6.3% quarterly and 11.2% annual growth. The bank's net interest income for the quarter reaches $23.2 million, supported by a net interest margin of 3.18%. This sustained growth in loans and deposits highlights PCB Bancorp's solid positioning within the banking sector, showcasing its ability to attract and retain customers.

In a separate note, Henry Kim, President and CEO of PCB Bancorp, expresses condolences over the devastation caused by recent wildfires in Southern California. His remarks reflect the bank's commitment to its community and the importance of supporting those affected by natural disasters. PCB Bancorp continues to navigate its financial challenges while reinforcing its community ties and commitment to service.