Executive Summary

Q4 2024 EPS was $0.46, down 11.5% QoQ but up 12.2% YoY; NIM compressed 7 bps QoQ to 3.18% as Fed cuts flowed through variable-rate loans and cash, while net interest income rose 2.0% QoQ to $23.2M .
Solid balance-sheet growth: loans HFI +6.6% QoQ/+13.2% YoY to $2.63B and deposits +6.3% QoQ/+11.2% YoY to $2.62B; efficiency ratio improved to 53.0% (from 57.6% in Q3) on cost actions and branch optimization .
Credit metrics improved: NPLs fell 29% QoQ to $4.7M; NPAs declined to 0.15% of assets; ACL/loans at 1.16%; provision rose to $2.0M, primarily from loan growth, not deterioration .
Capital return: dividend was raised post-quarter to $0.20/sh (from $0.18), signaling confidence in earnings durability and capital levels .
Regulatory watch: assets reached $3.06B; if assets exceed $3.0B at 6/30/2025, PCB will become subject to consolidated capital requirements starting March 2026—an operational milestone but not a near-term capital constraint given current bank-level ratios .

What Went Well and What Went Wrong

What Went Well
- Balance sheet and earnings durability: Loans HFI +$163M QoQ (+6.6%) and deposits +$156M (+6.3%) supported net interest income +2.0% QoQ; efficiency ratio improved to 53% on cost initiatives .
- Noninterest income momentum from SBA: Gain on sale of loans rose to $1.16M; SBA sold balance $24.5M with higher premiums, lifting noninterest income 16% QoQ .
- Asset quality: NPLs down 29% QoQ; NPAs/Assets fell to 0.15%; OREO cleared; ACL/loans steady at 1.16% .
- Management tone: “Strong fourth quarter results” with focus on efficient growth and network optimization; confidence in expanding profitability in 2025 and beyond .
What Went Wrong
- Margin pressure: NIM fell 7 bps QoQ to 3.18% (3.25% in Q3) as rate cuts reduced loan and FRB cash yields; deposit costs eased slightly but remain elevated YoY .
- Provision stepped up to $2.0M (vs. $50K in Q3) driven by loan growth (not credit stress), modestly weighing on EPS QoQ .
- Mix headwinds: Noninterest-bearing deposits fell to 20.9% of total (from 22.0% in Q3 and 25.3% a year ago), sustaining higher funding costs despite sequential moderation .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Diluted EPS ($)	0.41	0.43	0.52	0.46
Net Interest Income ($M)	21.924	21.735	22.719	23.164
Net Interest Margin (%)	3.40	3.16	3.25	3.18
Provision for Credit Losses ($M)	1.698	0.259	0.050	2.002
Noninterest Income ($M)	2.503	2.485	2.620	3.043
Noninterest Expense ($M)	14.469	15.175	14.602	13.894
ROAA (%)	0.89	0.89	1.08	0.94
Efficiency Ratio (%)	59.23	62.65	57.63	53.02

Segment/Portfolio Composition (Loans)

($000s)	12/31/2023	9/30/2024	12/31/2024
Commercial Property	855,270	874,824	940,931
Business Property	558,772	579,461	595,547
Multifamily	132,500	185,485	194,220
Construction	24,843	21,150	21,854
Commercial & Industrial	342,002	407,024	472,763
Residential Mortgage	389,420	383,377	392,456
Other Consumer	20,645	14,853	11,616
Loans HFI	2,323,452	2,466,174	2,629,387

Key KPIs and Balance Sheet

Metric	Q4 2023	Q3 2024	Q4 2024
Total Assets ($M)	2,789.5	2,889.8	3,064.0
Deposits ($M)	2,351.6	2,459.7	2,615.8
NPLs ($M)	3.916	6.614	4.693
NPLs / Loans HFI (%)	0.17	0.27	0.18
NPAs / Assets (%)	0.23	0.24	0.15
ACL / Loans HFI (%)	1.19	1.17	1.16
NIM (%)	3.40	3.25	3.18
Noninterest-bearing Deposits / Total (%)	25.3	22.0	20.9

Deposit Mix (% of Total)

Category	12/31/2023	9/30/2024	12/31/2024
Noninterest-bearing DDA	25.3%	22.0%	20.9%
Retail MM	16.8%	19.1%	17.1%
Time ≤$250k	19.4%	20.0%	18.9%
Time >$250k	21.9%	23.6%	23.1%
State/Brokered Time	15.5%	14.4%	19.2%

Notes: Company highlights that Q4 SBA loan sales were $24.5M with $1.161M gain; loan growth stemmed from $189.9M term fundings and $57.6M net line draws .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly cash dividend per common share	Q1 2025 (declared 1/29/25)	$0.18 paid in Q4 2024	$0.20 (payable ~2/21/25)	Raised
Regulatory reporting status	If assets >$3.0B at 6/30/2025	N/A	Would become subject to consolidated capital requirements starting March 2026; monitoring threshold	Informational

No explicit quantitative revenue/expense/tax guidance was provided. Management emphasized efficient growth, branch expansion, and profitability improvement as directional goals .

Earnings Call Themes & Trends

Transcript not available in our dataset; themes synthesized from quarterly press releases.

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Net interest margin trajectory	NIM 3.16%; funding costs near peak; signs of bottoming	NIM 3.18% (down 7 bps QoQ) as Fed cuts flowed through assets	Stabilizing with modest compression
Loan growth	Loans HFI +2.1% QoQ in Q2; SBA activity steady	Loans HFI +6.6% QoQ; strong term funding and line usage	Accelerating growth
Deposit mix and costs	Core deposits stable; elevated time deposit mix	DDA ratio slipped to 20.9%; time deposits higher; funding cost down slightly QoQ	Mix still headwind
Credit quality	NPAs 0.26% (Q2) → 0.24% (Q3); ACL 1.17%	NPLs down 29% QoQ; NPAs 0.15%; ACL 1.16%	Improving
Operating efficiency	Efficiency 62.65% (Q2) → 57.63% (Q3)	53.02% on cost measures and branch optimization	Improving
Regulatory/assets scale	Noted possibility upon reaching $3B later	Assets $3.06B; threshold implications outlined	Now above threshold
SBA secondary market	Gain on sale $0.76M (Q2), $0.75M (Q3)	$1.16M gain; $24.5M sold; higher premiums	Improving premiums

Management Commentary

“Our strong fourth quarter results reflect strong loan growth combined with another solid credit metrics. Additionally, we successfully maintained an efficiency ratio of 53% for the quarter that was primarily driven by our bank-wide cost saving measures and ongoing branch network optimizations.” — Henry Kim, President & CEO .
“As we look ahead in 2025 and beyond, we believe we are well positioned to generate further growth in balance sheet, continue to operate efficiently while expanding our branch network, and expand profitability to create ongoing value for our shareholders.” — Henry Kim .
“We are saddened by the… wildfires in Southern California… our assessment… does not indicate any significant losses to any of our customers at this time.” — Henry Kim .

Q&A Highlights

The Q4 2024 earnings call transcript was not available in our document set; no Q&A could be reviewed. We therefore relied on detailed press release disclosures and the 8‑K exhibit for management’s messaging .

Estimates Context

S&P Global consensus estimates (EPS, revenue) for Q4 2024 were not available due to data request limits at the time of retrieval. As a result, we cannot provide a beat/miss analysis versus Wall Street consensus at this time. Values would be retrieved from S&P Global if/when accessible.

Key Takeaways for Investors

Margin picture: NIM modestly compressed to 3.18% as rate cuts reduced asset yields faster than funding costs; watch deposit remix toward DDA and further rate path for NIM stabilization .
Growth engine: Robust QoQ loan and deposit growth (+6–7%) drove higher NII and efficiency improvement; sustainment of above-trend loan growth is a positive earnings lever into 2025 .
Credit resilience: Lower NPLs and NPAs alongside steady ACL coverage suggest benign credit trends; the Q4 provision increase reflects portfolio growth rather than deterioration .
Capital return: Dividend raised to $0.20/sh for Q1 2025 signals confidence and provides an incremental return catalyst .
Scale milestone: Assets at $3.06B introduce a potential shift to consolidated capital reporting if >$3B at 6/30/25; current bank-level capital ratios are well above “well-capitalized” thresholds, reducing regulatory risk .
Efficiency momentum: Cost actions and network optimization reduced the efficiency ratio to 53%; continued discipline can offset NIM headwinds .
SBA tailwind: Higher SBA sale premiums and volumes boosted noninterest income; continued secondary-market strength would support fee revenues .

PCB BANCORP (PCB)·Q4 2024 Earnings Summary