PCB Bancorp (PCB) investor relations material

Executive summary

• Net income available to common shareholders was $10.6 million ($0.74 per diluted share) for Q1 2026, up 15.5% from the prior quarter and 37.3% year-over-year, driven by higher net interest income and lower provision for credit losses.

• Return on average assets (ROAA) was 1.30%, return on average equity (ROAE) was 10.95%, and return on average tangible common equity (ROATCE) was 13.17%.

• Net interest margin improved to 3.36% from 3.28% in the prior quarter, reflecting lower funding costs and asset growth.

• Efficiency ratio improved to 49.08% from 51.51% in 4Q25 and 53.88% a year ago.

• Strong loan and deposit growth, expanding net interest margin, and solid credit quality contributed to earnings growth.

Financial highlights

• Net interest income increased to $26.8 million, up 0.7% sequentially and 10.4% year-over-year, as average interest-earning assets grew 7.7%.

• Provision for credit losses dropped to $467 thousand, down 54.4% from the prior quarter and 70.8% year-over-year.

• Noninterest income rose 32.6% sequentially and 30.8% year-over-year, with gain on sale of loans up 117.4% sequentially and 58.9% year-over-year.

• Noninterest expense declined 1.4% sequentially but increased 2.3% year-over-year, mainly due to higher salaries and marketing costs.

• Book value per share was $27.88 and tangible common equity per share was $23.02 at quarter-end.

Outlook and guidance

• Management expects continued asset and deposit growth, with a focus on credit quality and operational efficiency amid economic uncertainty.

• Additional qualitative adjustments to credit reserves were made due to global geopolitical risks and inflationary pressures.

• Management continues to monitor economic and market risks, including interest rates, inflation, and real estate market developments.