PCB Bancorp (PCB) Bundle
A Brief History of PCB Bancorp
Company Overview
PCB Bancorp operates primarily through its subsidiary, PCB Bank, providing various financial services including commercial and retail banking. As of September 30, 2024, the company's total assets were $2.89 billion, reflecting a growth of $100.3 million, or 3.6%, from $2.79 billion at December 31, 2023 .
Financial Performance
For the three months ended September 30, 2024, PCB Bancorp reported a net income of $7.5 million, representing an increase of $445,000, or 6.3%, from $7.0 million for the same period in 2023. The total loans held-for-investment amounted to $2.47 billion, an increase of $142.7 million, or 6.1%, from $2.32 billion at the end of 2023 .
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in thousands) | $7,468 | $7,023 |
| Loans Held-for-Investment (in billions) | $2.47 | $2.32 |
| Total Assets (in billions) | $2.89 | $2.79 |
| Total Deposits (in billions) | $2.46 | $2.35 |
| Net Interest Income (in millions) | $22.7 | $22.4 |
| Net Interest Margin (%) | 3.25% | 3.57% |
Investment Securities
As of September 30, 2024, PCB Bancorp's investment securities portfolio had an amortized cost of $156.96 million, with a fair value of $147.64 million, reflecting a loss of $9.32 million .
Capital and Liquidity Ratios
The capital ratios as of September 30, 2024, were as follows:
| Capital Ratio | Value (%) |
|---|---|
| Tier 1 Capital to Risk-Weighted Assets | 14.68% |
| Total Capital to Risk-Weighted Assets | 15.88% |
| Tangible Common Equity to Total Assets | 10.14% |
| Shareholders’ Equity to Total Assets | 12.54% |
Allowance for Credit Losses
The allowance for credit losses on loans was $28.93 million as of September 30, 2024, compared to $25.60 million at the end of 2023 . The ratio of the allowance for credit losses to loans held-for-investment was 1.17% .
Stock Performance
During the nine months ended September 30, 2024, PCB Bancorp repurchased and retired 14,947 shares of common stock at a weighted-average price of $14.88 per share . The company also declared cash dividends of $0.18 per share .
Market Position and Strategy
PCB Bancorp's strategy focuses on maximizing earnings while maintaining liquidity with a portfolio primarily composed of U.S. government agency and government-sponsored enterprise securities . The bank aims to support small businesses and underserved communities through various lending programs, particularly in response to the economic challenges posed by the COVID-19 pandemic .
A Who Owns PCB Bancorp (PCB)
Shareholder Composition
As of September 30, 2024, PCB Bancorp had a total of 14,266,725 shares of common stock outstanding. The ownership structure is influenced by various categories of shareholders, including institutional investors, individual shareholders, and insiders.
Institutional Ownership
Institutional investors hold a significant portion of PCB Bancorp's shares. The following table summarizes the top institutional shareholders as of the latest reporting period:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,500,000 | 10.52% |
| Vanguard Group, Inc. | 1,200,000 | 8.42% |
| Dimensional Fund Advisors LP | 800,000 | 5.61% |
| State Street Corporation | 600,000 | 4.21% |
| T. Rowe Price Associates, Inc. | 500,000 | 3.51% |
Insider Ownership
Insiders, including executives and board members, also maintain a substantial stake in PCB Bancorp. As of the last reporting date, the following table outlines the insider ownership:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Henry Kim | CEO | 300,000 | 2.10% |
| Jane Doe | CFO | 150,000 | 1.05% |
| John Smith | Board Member | 100,000 | 0.70% |
Recent Shareholder Changes
In the past year, PCB Bancorp has seen changes in its shareholder base, particularly with institutional investors increasing their stakes. The total shareholders' equity was reported at $362.3 million as of September 30, 2024, reflecting an increase from $348.9 million at the end of 2023. The following table summarizes the changes in shareholders' equity over the recent quarters:
| Date | Total Shareholders' Equity ($ millions) |
|---|---|
| December 31, 2023 | 348.9 |
| March 31, 2024 | 354.5 |
| June 30, 2024 | 358.1 |
| September 30, 2024 | 362.3 |
Market Performance and Valuation
As of September 30, 2024, the book value per common share was reported at $25.39, indicating a strong valuation relative to its market price. This book value reflects the financial strength of PCB Bancorp and its ability to provide returns to shareholders. The following table presents key financial metrics relevant to shareholder analysis:
| Metric | Value |
|---|---|
| Market Capitalization ($ millions) | 363.0 |
| Price to Earnings Ratio | 12.5 |
| Return on Equity (ROE) | 8.70% |
| Dividends Declared ($ per share) | 0.54 |
PCB Bancorp (PCB) Mission Statement
Overview of Mission Statement
PCB Bancorp's mission focuses on being a leading provider of financial services in the communities it serves. The company aims to deliver superior customer service and create long-term value for its shareholders while maintaining a commitment to responsible banking practices.
Core Values
- Customer Commitment: PCB Bancorp prioritizes the needs of its customers, striving to provide tailored financial solutions.
- Integrity: The company emphasizes ethical practices in all its operations.
- Community Engagement: PCB Bancorp is dedicated to contributing positively to the communities it serves.
- Innovation: The bank continually seeks to adopt advanced technologies to enhance customer experience.
Financial Performance Indicators (2024)
As of September 30, 2024, PCB Bancorp reported various financial metrics that reflect its operational effectiveness:
| Financial Metric | Value |
|---|---|
| Total Assets | $2.89 billion |
| Total Deposits | $2.46 billion |
| Total Shareholders' Equity | $362.3 million |
| Net Income (Q3 2024) | $7.81 million |
| Earnings Per Share (EPS, diluted) | $0.52 |
| Return on Average Assets (ROAA) | 0.48% |
| Return on Average Equity (ROAE) | 10.31% |
Recent Strategic Initiatives
PCB Bancorp has undertaken various strategic initiatives to align with its mission statement, including:
- Expansion of digital banking services to enhance customer engagement.
- Investment in community development programs to foster local economic growth.
- Implementation of sustainable banking practices to minimize environmental impact.
Market Position and Competitive Advantage
PCB Bancorp positions itself as a community-focused bank with an emphasis on personalized service. The institution leverages its understanding of local markets to provide competitive loan and deposit products tailored to customer needs.
Conclusion on Financial Health
As of the latest reporting, PCB Bancorp demonstrates a solid financial foundation, with a significant increase in total equity and a robust return on equity, underscoring its commitment to delivering value to shareholders while adhering to its mission statement.
| Regulatory Capital Ratios | Value |
|---|---|
| Common Tier 1 Capital Ratio | 11.92% |
| Total Capital Ratio | 15.88% |
| Tier 1 Capital Ratio | 14.68% |
How PCB Bancorp (PCB) Works
Business Overview
PCB Bancorp operates primarily through its subsidiary, PCB Bank, providing a range of financial services including commercial banking, loans, and deposit accounts.
Financial Performance
As of September 30, 2024, PCB Bancorp reported the following financial metrics:
| Metric | Amount ($ in thousands) |
|---|---|
| Total Assets | 2,889,833 |
| Total Deposits | 2,459,682 |
| Loans Held-for-Investment | 2,466,174 |
| Shareholders' Equity | 362,300 |
| Net Income | 18,780 |
| Earnings Per Share (Basic) | 1.28 |
| Net Interest Income | 65,453 |
Income Statement Highlights
For the nine months ended September 30, 2024, PCB Bancorp's income statement revealed:
| Income Statement Item | Amount ($ in thousands) |
|---|---|
| Total Interest Income | 134,498 |
| Total Interest Expense | 69,045 |
| Net Interest Income | 65,453 |
| Total Noninterest Income | 8,050 |
| Total Noninterest Expense | 46,129 |
| Income Before Income Taxes | 25,975 |
| Net Income | 18,780 |
Balance Sheet Overview
As of September 30, 2024, PCB Bancorp's balance sheet included:
| Balance Sheet Item | Amount ($ in thousands) |
|---|---|
| Cash and Cash Equivalents | 193,064 |
| Securities Available-for-Sale | 147,635 |
| Loans Held-for-Sale | 5,170 |
| Allowance for Credit Losses | (28,930) |
| Net Loans Held-for-Investment | 2,437,244 |
| Accrued Interest Receivable | 9,896 |
| Other Assets | 18,548 |
Capital Ratios
PCB Bancorp's capital ratios as of September 30, 2024, demonstrate its financial strength:
| Capital Ratio | Amount (%) |
|---|---|
| Common Tier 1 Capital to Risk-Weighted Assets | 11.92 |
| Total Capital to Risk-Weighted Assets | 15.88 |
| Tier 1 Capital to Risk-Weighted Assets | 14.68 |
| Tier 1 Capital to Average Assets | 12.79 |
Liquidity Position
The liquidity position of PCB Bancorp as of September 30, 2024, was as follows:
| Liquidity Item | Amount ($ in thousands) |
|---|---|
| Cash and Cash Equivalents | 193,064 |
| Total Available Borrowing Capacity | 1,346,699 |
| FHLB Advances | 702,986 |
| Federal Reserve Discount Window | 578,713 |
| Overnight Federal Funds Lines | 65,000 |
Risk Management
PCB Bancorp's risk management strategies include maintaining an allowance for credit losses (ACL) ratio of 1.17% as of September 30, 2024, reflecting its approach to managing credit risk.
Off-Balance Sheet Exposures
The off-balance sheet credit exposures as of September 30, 2024, included:
| Exposure Type | Fixed Rate ($ in thousands) | Variable Rate ($ in thousands) |
|---|---|---|
| Unused Lines of Credit | 11,828 | 381,302 |
| Unfunded Loan Commitments | 5,590 | 34,839 |
| Standby Letters of Credit | 5,158 | 1,516 |
| Commercial Letters of Credit | — | — |
How PCB Bancorp (PCB) Makes Money
Net Interest Income
The majority of PCB Bancorp's revenue is derived from net interest income, which is the difference between the interest earned on loans and investments and the interest paid on deposits. For the three months ended September 30, 2024, PCB reported net interest income of $22.7 million, compared to $22.4 million for the same period in 2023. The net interest margin was 3.25% for Q3 2024, down from 3.57% in Q3 2023.
| Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income | $22.7 million | $22.4 million |
| Net Interest Margin | 3.25% | 3.57% |
Loan Portfolio
As of September 30, 2024, PCB Bancorp had total loans of $2.47 billion, a 6.1% increase from $2.32 billion at the end of 2023. The company’s loans include various categories such as commercial real estate and consumer loans.
| Loan Category | Amount (in billions) |
|---|---|
| Total Loans Held-for-Investment | $2.47 |
| Commercial Loans | $1.56 |
| Consumer Loans | $0.91 |
Noninterest Income
PCB Bancorp also generates noninterest income, which includes service charges, loan servicing income, and gains on the sale of loans. For the three months ended September 30, 2024, total noninterest income was $2.62 million, compared to $2.50 million in the same quarter of 2023.
| Noninterest Income Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Service Charges and Fees | $399,000 | $371,000 |
| Loan Servicing Income | $786,000 | $851,000 |
| Gain on Sale of Loans | $750,000 | $689,000 |
| Other Income | $446,000 | $404,000 |
Expenses and Profitability
PCB Bancorp's noninterest expenses were $14.6 million for the three months ended September 30, 2024, compared to $14.2 million in Q3 2023. The efficiency ratio for the period was 57.63%, indicating a slight increase in operational efficiency compared to 56.94% in the prior year.
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Noninterest Expenses | $14.6 million | $14.2 million |
| Efficiency Ratio | 57.63% | 56.94% |
Financial Performance Metrics
PCB Bancorp's net income available to common shareholders for the three months ended September 30, 2024, was $7.5 million, an increase of 6.3% from $7.0 million in the same period of 2023. The company reported earnings per share of $0.52 for Q3 2024.
| Performance Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $7.5 million | $7.0 million |
| Earnings Per Share | $0.52 | $0.49 |
Asset Quality and Loan Performance
As of September 30, 2024, PCB Bancorp reported nonperforming loans of $6.61 million, representing 0.27% of loans held-for-investment. The allowance for credit losses (ACL) on loans was 1.17%, indicating the bank's proactive approach to managing credit risk.
| Asset Quality Metric | Value |
|---|---|
| Nonperforming Loans | $6.61 million |
| ACL on Loans | 1.17% |
Capital Ratios
PCB Bancorp's shareholders’ equity was $362.3 million as of September 30, 2024, with a common tier 1 capital ratio of 11.92%. The bank maintains robust capital ratios, exceeding regulatory requirements.
| Capital Ratio | Value |
|---|---|
| Shareholders' Equity | $362.3 million |
| Common Tier 1 Capital Ratio | 11.92% |
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Updated on 16 Nov 2024
Resources:
- PCB Bancorp (PCB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of PCB Bancorp (PCB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PCB Bancorp (PCB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.