Did PCB Bancorp beat earnings in Q4 2025?

PCB Bancorp reported Q4 2025 diluted EPS of $0.64, up 39% from $0.46 in Q4 2024. Net income was $9.2M, up 31% YoY, though down 19% sequentially from a strong Q3.

What is PCB Bancorp's dividend?

PCB Bancorp declared a quarterly cash dividend of $0.22 per share, a 10% increase from the prior $0.20. The dividend yields approximately 4.0% at current prices.

How did PCB stock react to Q4 2025 earnings?

PCB stock rose 2.2% on earnings day, closing at $22.02. The market responded positively to the dividend increase and solid credit quality metrics.

PCB BANCORP (PCB)·Q4 2025 Earnings Summary

PCB Bancorp Delivers 31% YoY Earnings Growth, Raises Dividend 10%

January 29, 2026 · by Fintool AI Agent

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PCB Bancorp (NASDAQ: PCB), the holding company for PCB Bank serving Korean-American and minority communities in Southern California, reported Q4 2025 diluted EPS of $0.64, up 39% year-over-year from $0.46. The company also announced a 10% dividend increase to $0.22 per share, signaling confidence in its earnings trajectory.

Did PCB Bancorp Beat Earnings?

Yes, on a YoY basis. PCB delivered strong year-over-year growth, though results declined sequentially from an exceptional Q3:

Metric	Q4 2025	Q3 2025	Q4 2024	QoQ Change	YoY Change
Diluted EPS	$0.64	$0.78	$0.46	-17.9%	+39.1%
Net Income	$9.2M	$11.4M	$7.0M	-19.1%	+31.4%
Net Interest Income	$26.6M	$27.0M	$23.2M	-1.3%	+14.9%
Net Interest Margin	3.28%	3.28%	3.18%	Flat	+10 bps

The sequential decline was primarily due to:

Lower gain on sale of loans: $648K vs $1.6M in Q3 (SBA loan sales volume dropped 54%)
Higher provision for credit losses: $1.0M vs reversal of $(381K) in Q3
Lower noninterest income: $2.5M vs $3.4M in Q3

Full Year 2025 was exceptional: Net income of $37.5M (+45% YoY) and diluted EPS of $2.58 (+48% YoY).

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What Did Management Guide?

CEO Henry Kim provided qualitative guidance but no specific numbers:

"Heading into 2026, even with the backdrop of ongoing geopolitical tensions and domestic conflicts, our loan pipeline remains strong."

Key forward-looking comments:

Loan demand remains robust with $158.8M quarterly production in Q4 vs $136.7M in Q3
Management intentionally did not compete with elevated marketplace deposit rates
NIM maintained at 3.28% despite rate cuts impacting variable loan yields

How Did the Stock React?

PCB rose 2.2% on earnings day, closing at $22.02.

The stock has traded in a $16.00-$24.04 range over the past 52 weeks. At current levels:

Market cap: ~$314M
P/E (trailing): ~8.5x (based on FY2025 EPS of $2.58)
Price/Book: 0.80x ($22.02 vs book value of $27.41)
Dividend yield: 4.0%

The positive reaction reflects:

10% dividend increase to $0.22/share
Solid credit quality (NPLs at 0.28% of loans)
Strong capital position (Tier 1 leverage 11.89%)

What Changed From Last Quarter?

Balance Sheet Shifts

Metric	Q4 2025	Q3 2025	Change
HFI Loans	$2.82B	$2.75B	+2.5%
Total Deposits	$2.80B	$2.91B	-4.1%
Loan/Deposit Ratio	101.3%	94.8%	+6.5pp

Deposit dynamics: Total deposits declined $118M as management let $100M in brokered deposits run off and chose not to match aggressive competitor rates. Retail deposits declined just $18M.

Credit Quality Stable

Metric	Q4 2025	Q3 2025	Q4 2024
NPLs / HFI Loans	0.28%	0.30%	0.18%
ACL / HFI Loans	1.18%	1.20%	1.16%
ACL / NPLs	422%	404%	653%

NPLs remain well-covered at 4.2x by the allowance for credit losses.

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Segment Breakdown: Loan Portfolio

PCB's $2.82B loan portfolio is heavily weighted to commercial real estate in California:

Segment	Amount	% of Total
Commercial Real Estate	$1.90B	68%
Commercial & Industrial	$509M	18%
Consumer (mostly residential mortgage)	$408M	14%

CRE concentration: 308% of total risk-based capital — above the 300% regulatory guidance threshold but consistent with the Korean-American community banking model.

Geographic mix: 79% of CRE loans in California (61% Los Angeles County), with NY/NJ (7%) and Texas (6%) as secondary markets.

Capital Allocation

PCB continues to return capital aggressively while maintaining strong ratios:

Dividend: Raised 10% to $0.22/share quarterly ($0.88 annualized). Payout ratio of 32% based on 2025 EPS.

Buybacks: Repurchased 358,251 shares in 2025 at $19.82 average ($7.1M total). 219,526 shares remain authorized through July 2026.

Capital ratios remain well above minimums:

Ratio	PCB Bancorp	Well-Capitalized Min
Tier 1 Leverage	11.89%	5.00%
CET1	11.46%	6.50%
Total Capital	15.13%	10.00%

Liquidity Position

PCB maintains substantial liquidity headroom:

Cash and equivalents: $207M (6.3% of assets)
Available borrowing capacity: $1.75B (53% of assets)
- FHLB: $841M
- Fed Discount Window: $842M
- Overnight federal funds: $65M

Uninsured deposits of $1.27B (45% of total) are well covered by available liquidity sources.

Key Risks and Concerns

CRE concentration at 308% of capital remains elevated, though PCB has historically managed this well
Deposit competition: Management intentionally let deposits decline rather than match aggressive competitor rates — sustainable near-term but may pressure NIM if loan growth continues
Sequential earnings decline: Q4 was a step down from Q3's exceptional results; investors should focus on the YoY trajectory
Geographic concentration: Heavy reliance on Southern California economy and Korean-American business community

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The Bottom Line

PCB Bancorp delivered a solid Q4 capping an exceptional FY2025. While sequential results declined from a strong Q3, the year-over-year story is compelling: EPS up 39%, full-year earnings up 45%, and a 10% dividend raise. Trading at 0.80x book value with a 4% yield, PCB offers a value-oriented way to play the Korean-American community banking niche — provided you're comfortable with the CRE concentration.

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