Mon, Jun 9, 10:02 AM (14 days ago)
**PCB Bancorp (PCB) Q1 2025 Financial Performance** **Financial Health & Performance Metrics:** - **Revenue & Profit Margins:** PCB reported net income of $7.7 million for Q1 2025, a 64.2% increase from $4.7 million in Q1 2024. Net interest income rose to $24.3 million, with a net interest margin of 3.28%, up from 3.10% in Q1 2024. Noninterest income decreased by 12.4% to $2.6 million. - **Cash Flow:** Net cash provided by operating activities was $2.3 million, while investing activities used $97.2 million, primarily due to loan investments. Financing activities provided $110.4 million, mainly from deposit increases. - **Earnings Changes:** Earnings per share (EPS) increased to $0.53 from $0.33. The provision for credit losses rose to $1.6 million from $1.1 million. - **Quarterly Performance:** Total assets increased by 5.1% to $3.22 billion, with loans held-for-investment rising by 3.7% to $2.73 billion. Deposits grew by 3.8% to $2.71 billion. **Trends & Uncertainties:** - **Loan Portfolio:** The loan portfolio showed growth, with an increase in the allowance for credit losses (ACL) due to higher loans held-for-investment and net charge-offs. The ACL ratio to loans held-for-investment was 1.17%. - **Deposit Growth:** Deposits increased across various categories, with a notable rise in retail time deposits. - **Capital & Liquidity:** PCB maintained strong capital ratios, with a common tier 1 capital ratio of 12.52%. Liquidity is supported by cash equivalents and available borrowing capacity. - **Regulatory & Market Risks:** PCB faces interest rate risk, credit risk, and market risks. The bank is subject to regulatory capital requirements and monitors its liquidity position closely. **Future Operations Impact:** - **Strategic Initiatives:** PCB continues to focus on loan growth, deposit gathering, and maintaining strong capital and liquidity positions. - **Risk Management:** The bank is proactive in managing interest rate risk, credit risk, and market risks through various hedging strategies and monitoring tools. - **Regulatory Compliance:** PCB adheres to regulatory capital requirements and monitors its liquidity position to ensure it can meet short-term and long-term cash obligations. **Ticker:** PCB **Note:** Amounts are in thousands, except per share data.