Sign in

You're signed outSign in or to get full access.

PB

PB Bankshares, Inc. (PBBK)·Q1 2025 Earnings Summary

Executive Summary

  • Net income rose 49.2% year over year to $0.473M, with diluted EPS at $0.20; sequentially, net income declined from $0.681M in Q4 2024 due to the absence of a one-time $487K branch sale gain in Q4 .
  • Net interest margin expanded 41 bps YoY to 2.85% on lower deposit costs and higher loan yields; NII increased 16.6% YoY to $3.07M, aided by a $149K prepayment penalty on a loan payoff .
  • Deposits grew $13.4M QoQ to $367.6M; uninsured/unsecured deposits were ~11.1% of total, with available contingent liquidity equal to 563.3% of uninsured/unsecured deposits—supporting confidence in funding and stability .
  • Accumulated other comprehensive loss improved to $(59)K (0.1% of equity), bolstering tangible book value to $19.40 per share (+$1.62 YoY) .
  • No formal guidance or earnings call transcript was provided; near-term stock reaction drivers are likely NIM expansion durability, deposit growth, and credit stability versus the one-time Q4 noninterest gains .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin improved to 2.85% (+41 bps YoY), reflecting reduced deposit costs and improved loan yields; management emphasized continued focus on NIM improvement in 2025: “Improving our net interest margin will continue to be our emphasis for 2025” — Janak M. Amin, CEO .
  • Core deposit growth remained healthy (+$13.4M QoQ to $367.6M), with uninsured/unsecured deposits modest at ~11.1% and liquidity sources totaling 563.3% of uninsured/unsecured deposits, signaling robust coverage .
  • AOCI improved materially to $(59)K (0.1% of equity), aided by short AFS duration (2.35 years), supporting tangible book value per share of $19.40 (+$1.62 YoY) .

What Went Wrong

  • Sequential net income declined to $0.473M from $0.681M in Q4 2024, driven by the absence of Q4’s $487K Oxford branch sale gain; noninterest income fell to $0.254M from $0.662M .
  • Provision for credit losses turned to a $61K expense in Q1 2025 vs. a $4K reversal in Q4 2024, reflecting changes in loan mix and growth; though ACL coverage remained stable at 1.26% .
  • Interest income on cash and fed funds declined $289K YoY on lower average balances, partially offset by higher rates; highlights sensitivity to balance sheet mix in higher-for-longer environments .

Financial Results

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Interest and dividend income ($USD Thousands)$5,614 $6,011 $5,935 $5,967
Interest expense ($USD Thousands)$2,982 $3,185 $3,085 $2,897
Net interest income ($USD Thousands)$2,632 $2,826 $2,850 $3,070
Provision for credit losses ($USD Thousands)$(84) $34 $(4) $61
Noninterest income ($USD Thousands)$187 $274 $662 $254
Noninterest expense ($USD Thousands)$2,498 $2,551 $2,661 $2,661
Income before income taxes ($USD Thousands)$405 $515 $855 $602
Income taxes ($USD Thousands)$88 $111 $174 $129
Net income ($USD Thousands)$317 $404 $681 $473
Diluted EPS ($USD)$0.13 $0.18 $0.29 $0.20

Segment/Revenue Mix

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Net interest income ($USD Thousands)$2,632 $2,826 $2,850 $3,070
Noninterest income ($USD Thousands)$187 $274 $662 $254

KPIs

KPIQ1 2024Q3 2024Q4 2024Q1 2025
Net interest margin (annualized) (%)2.44% 2.57% 2.59% 2.85%
ROAA (annualized) (%)0.29% 0.36% 0.61% 0.43%
ROAE (annualized) (%)2.71% 3.41% 5.62% 3.89%
Allowance to total loans (%)1.32% 1.27% 1.25% 1.26%
NPLs to total loans (%)0.39% 0.36% 0.32% 0.31%
NPAs to total assets (%)0.30% 0.28% 0.25% 0.23%
Book value per common share ($)$17.78 $18.69 $19.07 $19.40
Deposits ($USD Thousands)$348,389 $354,795 $354,190 $367,627
Uninsured/unsecured deposits (% of total)N/A11.0% 11.0% 11.1%

Balance Sheet Highlights

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Total assets ($USD Thousands)$450,434 $452,857 $451,317 $467,105
Cash and cash equivalents ($USD Thousands)$66,787 $54,519 $37,777 $62,750
AFS debt securities ($USD Thousands)$32,138 $36,381 $50,296 $38,514
Net loans ($USD Thousands)$333,288 $344,123 $344,813 $346,688
AOCI ($USD Thousands)$(1,250) $(313) $(305) $(59)

Key drivers and notes:

  • Loan interest income included a $149K prepayment penalty, boosting NII/NIM; interest expense on borrowings declined QoQ on lower rate/volume .
  • Interest income on cash declined YoY on lower average balances; noninterest income rose YoY primarily due to swap fees, deposit service charges, and gains on equity securities .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/EPS/NIM/OpEx/Tax rateFY/Q1 2025Not providedNot providedMaintained: No formal guidance

No explicit quantitative guidance was issued; management reiterated focus on NIM improvement via deposit cost control and loan yield enhancement .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript found on the investor site; commentary below reflects press releases across periods .

TopicPrevious Mentions (Q-2: Q4 2024)Previous Mentions (Q-1: Q3 2024)Current Period (Q1 2025)Trend
Net interest marginNIM 2.59%; emphasis on loan growth and deposit cost management NIM 2.57%; deposit costs elevated, investment in IT NIM 2.85%; focus on reducing deposit costs, improving loan yields Improving
Deposit growth & liquidityDeposits $354.2M; uninsured 11.0%; liquidity 544.9% of uninsured Deposits $354.8M; uninsured 11.0%; liquidity 534.4% of uninsured Deposits $367.6M; uninsured 11.1%; liquidity 563.3% of uninsured Continued growth, strong coverage
CRE portfolio & riskHospitality $25.5M; DSCR 1.90x; LTV 58.5%; diversified Hospitality $25.6M; DSCR 2.74x; office exposure $9.2M (medical), diversified CRE growth modest; ongoing segmentation and stress testing of non-owner occupied CRE Stable risk management
Noninterest income drivers$662K; includes $487K Oxford branch sale gain $274K; gains on equity securities, swap fees $254K; swap fees, deposit service charges and equity gains Normalizing post one-time gain
Capital & TBVBook value $19.07; AOCI $(305)K Book value $18.69; AOCI $(313)K Book value $19.40; AOCI $(59)K Strengthening

Management Commentary

  • Strategic focus: “Increasing cash management customers is helping control our deposit costs while providing high quality community banking service to our customers. Improving our net interest margin will continue to be our emphasis for 2025.” — Janak M. Amin, President & CEO .
  • Credit outlook: Delinquencies “remain benign,” ACL coverage “remained strong” at 1.26%; continued payments on 100% of non-performing loans in Q1 2025 .
  • Balance sheet positioning: Short AFS duration at 2.35 years; active CRE monitoring, segmentation, and stress testing; diversified collateral and funding sources .

Q&A Highlights

  • No earnings call transcript or Q&A available for Q1 2025 on the investor relations site .

Estimates Context

  • Wall Street consensus coverage appears limited; no published S&P Global consensus for EPS or revenue for Q1 2025 was found. As a result, a vs-estimates comparison is not available (EPS consensus: unavailable; revenue consensus: unavailable).*
    *Values retrieved from S&P Global.

Key Takeaways for Investors

  • NIM expansion and deposit growth are the quarter’s core positives; watch for sustainability absent one-time items like the Q1 prepayment penalty and Q4 branch sale gain .
  • Credit remains stable with benign delinquencies, unchanged ACL coverage, and ongoing payments on nonperformers; sequential provision uptick reflects mix/growth, not stress, and bears monitoring as CRE concentrations evolve .
  • Liquidity and funding are robust versus uninsured deposits, materially de-risking tail events and supporting loan growth capacity .
  • AOCI has largely normalized, lifting tangible book and potentially reducing equity volatility against rate moves, supported by short AFS duration .
  • Near-term trading: Focus on NIM trajectory, deposit cost trends, and recurring noninterest income; sequential earnings pressure from Q4’s nonrecurring gain may fade as core NII improves .
  • Medium-term thesis: Relationship-driven deposit growth, cash management penetration, and disciplined CRE risk management underpin incremental ROA/ROE improvement potential as rate paths stabilize .
  • Limited sell-side coverage and absence of guidance/calls may cap near-term narrative, but execution on NIM and credit stability can re-rate as investors gain confidence .

Additional Source Documents:

  • Q1 2025 earnings press release (8-K Exhibit 99.1): detailed results and commentary .
  • Q4 2024 press release (Feb 26, 2025): noninterest income one-time gain and year-end positioning .
  • Q3 2024 press release (Oct 23, 2024): deposit growth, CRE detail, and NIM baseline .
  • Investor relations press release links: Q1 2025 and Q4 2024 .