Key Highlights

  • Net income available to common shareholders was $12.1 million, or $0.85 per diluted share, versus $0.78 a year earlier.
  • Net interest Margin widened to 3.35%, from 3.28% in the third quarter of 2025.
  • Total deposits rose $153.9 million, or 5.3%, in the quarter to $3.08 billion.
  • Loans held-for-investment declined 3.0% from June 30, 2026 to $2.84 billion.
  • The quarterly Dividend was declared at $0.22 per common share.

Record quarterly Earnings arrive with a higher per-share profit

PCB Bancorp (NASDAQ:PCB), the Los Angeles based Holding Company of PCB Bank, reported third quarter 2026 results on October 29, 2026 and described them as record earnings. Net Income available to common shareholders was $12.1 million, or $0.85 per diluted common share, compared with $10.4 million, or $0.73, in the previous quarter and $11.3 million, or $0.78, in the year-ago quarter.

For the nine months ended September 30, 2026, diluted EPS was $2.32, up 19.6% from $1.94. Return on average Assets was 1.38%, against 1.35% a year ago, while return on average shareholders' Equity was 12.03% versus 11.92%.

Funding costs help lift net interest margin to 3.35%

Net interest income was $28.8 million, up 6.8% from $27.0 million a year earlier and 4.8% from the prior quarter. Net interest margin was 3.35%, compared with 3.33% in the second quarter and 3.28% a year ago.

The company said the year-over-year improvement came mainly from a lower average cost of interest-bearing deposits, which fell to 3.77% from 4.09%, partly offset by a lower average Yield on earning assets.

Noninterest income was $3.6 million, and noninterest expense rose 8.0% to $16.1 million, and the efficiency ratio was 49.56%, compared with 48.92% a year ago.

Deliberate Loan reductions leave the Balance Sheet heavy with liquidity

Loans held-for-investment were $2.84 billion at September 30, 2026, down $87.2 million, or 3.0%, from June 30, 2026, but up 3.4% from a year earlier. President and CEO Henry Kim said the bank selectively reduced certain large commercial lending relationships that no longer met its risk and return objectives.

Term loan paydowns and payoffs of $175.2 million outpaced new term loan funding of $125.6 million, and commercial and industrial loans fell 9.2% from the previous quarter.

Total deposits climbed to $3.08 billion, up 5.6% from a year earlier, and total assets reached $3.54 billion. Available borrowing capacity was $1.87 billion, or 53.0% of total assets.

Credit costs reverse, though nonperforming assets climb

The bank recorded a Reversal of provision for Credit losses of $705 thousand, compared with a provision of $926 thousand in the previous quarter. The company tied the reversal on loans primarily to the decrease in loans held-for-investment, partly offset by higher nonaccrual loans. The allowance for credit losses on loans was 1.20% of loans held-for-investment, up from 1.18% at June 30, 2026.

Non-performing assets were $12.3 million, or 0.35% of total assets, compared with $8.7 million, or 0.25%, at June 30, 2026, and $8.2 million, or 0.24%, a year earlier.

Dividend, buyback and Capital position frame the next stretch

The board declared a quarterly Cash Dividend of $0.22 per common share, payable on or about November 20, 2026 to shareholders of record on November 13, 2026. Book Value per common share was $28.61, and tangible common equity per share was $23.69.

The company repurchased 69,087 shares in the quarter at a weighted-average price of $29.29. On September 28, 2026 the board approved a new program for up to 700,000 shares through September 22, 2027.

Management said it believes it is positioned to deploy excess Liquidity in the rest of 2026 and into 2027.