PCB Bancorp (PCB) Q3 2025 earnings summary

Executive summary

• Net income available to common shareholders rose 51.7% year-over-year to a record $11.3 million ($0.78 per share) for Q3 2025, driven by higher net interest income and gains on loan sales.

• Total assets increased to $3.36 billion, up 9.8% since December 2024 and 16.4% year-over-year; deposits grew 11.4% since December and 18.5% year-over-year.

• Net interest margin improved to 3.28% from 3.25% year-over-year, reflecting growth in interest-earning assets and lower funding costs.

Financial highlights

• Net interest income for Q3 2025 was $27.0 million, up 18.7% year-over-year and 3.8% sequentially; net interest margin was 3.28%.

• Provision for credit losses was a reversal of $381 thousand for Q3 2025, compared to a $50 thousand provision in Q3 2024 and a $1.8 million provision in Q2.

• Noninterest income rose 30.3% year-over-year to $3.4 million, mainly from a 115.6% increase in gain on sale of loans.

• Noninterest expense increased 1.8% year-over-year to $14.9 million, with higher salaries and regulatory assessments; expense was stable sequentially.

• Efficiency ratio improved to 48.9% from 57.6% year-over-year and 50.6% in Q2.

Outlook and guidance

• Management expects continued loan and deposit growth, with a focus on maintaining strong asset quality and capital ratios, and remains cautiously optimistic for Q4 2025 and 2026 despite macroeconomic uncertainties.

• Economic forecasts used in credit loss modeling anticipate modest GDP growth and a slight increase in unemployment.