Yahoo Finance PCB Bancorp (PCB) Reports Decline in Q4 Earnings and Annual Net Income for 2023
Net Income: Q4 net income fell to $5.9 million, a 32.1% decrease from the year-ago quarter.
Earnings Per Share: Diluted EPS for Q4 stood at $0.41, down from $0.58 in the same quarter last year.
Net Interest Income: Declined by 9.6% year-over-year to $21.9 million in Q4.
Loan Growth: Loans held-for-investment rose to $2.32 billion, marking a 13.6% increase from the previous year.
Deposits: Total deposits increased by 14.9% year-over-year to $2.35 billion.
Asset Quality: The allowance for credit losses to loans ratio was 1.19% at the end of 2023.
On January 25, 2024, PCB Bancorp (NASDAQ:PCB) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023. PCB Bancorp, a bank holding company that provides a wide range of banking services, including loans and deposit products primarily to individuals, professionals, and small-to-medium sized businesses, faced several economic headwinds that impacted its earnings.
Financial Performance Overview
For Q4 2023, PCB Bancorp reported a net income of $5.9 million, or $0.41 per diluted common share, compared with $8.7 million, or $0.58 per diluted common share, for the same quarter in the previous year. The annual net income for 2023 was $30.7 million, or $2.12 per diluted common share, a decrease from $35.0 million and $2.31 per diluted common share in 2022.
The company's net interest income for Q4 was $21.9 million, a decrease from $24.3 million in the year-ago quarter. The net interest margin also compressed to 3.40% in the current quarter from 4.15% in the same period last year. This compression is attributed to the higher interest rate environment and its effect on funding costs.
Despite the challenges, PCB Bancorp achieved loan growth, with loans held-for-investment increasing by 13.6% to $2.32 billion at the end of 2023. Total deposits also saw a significant rise, increasing by 14.9% to $2.35 billion.
Asset Quality and Capital Strength
PCB Bancorp maintained strong credit metrics, with an allowance for credit losses (ACL) to loans ratio of 1.19%. The company's President and CEO, Henry Kim, commented on the results:
"We are pleased with our fourth quarter and full-year performance. Our results reflect our solid business strategy of strong relationship banking, which continues to provide strong loan funding opportunities and stable operating performance that has positioned us well to overcome the continued economic uncertainties."
Kim also highlighted the company's strong loan growth and higher yields on interest-earning assets, as well as PCB's solid positioning to deliver robust results in the future.
Capital and Liquidity
PCB Bancorp's total assets increased by 15.3% to $2.79 billion. The company's capital ratios remained robust, with a Tier 1 leverage ratio of 13.43% and a total shareholders' equity to total assets ratio of 12.51%. Additionally, PCB Bancorp continued its stock repurchase program, retiring 60,074 shares of common stock during the quarter.
As PCB Bancorp navigates the economic landscape of 2024, the company's focus on a strong balance sheet and sound asset quality, coupled with robust capital levels, positions it to operate effectively across economic cycles and changing market conditions.
For a detailed analysis of PCB Bancorp's financial results, including income statements, balance sheets, and cash flow statements, investors and stakeholders are encouraged to review the full 8-K filing.
Value investors seeking comprehensive coverage of PCB Bancorp's earnings and financial position can find more information on GuruFocus.com.
Explore the complete 8-K earnings release (here) from PCB Bancorp for further details.
This article first appeared on GuruFocus.
