The record earnings and deposit growth are positive, but the 3.0% QoQ loan shrinkage and 40.5% surge in NPAs warrant close monitoring. Watch the Q4 2026 filing for loan growth trajectory, credit quality trends (especially commercial real estate nonaccruals which rose 134.5% QoQ), and whether the new buyback program signals management's view that the stock is undervalued.
Price Chart
Executive Summary
PCB Bancorp reported record Q3 2026 net income available to common shareholders of $12.1M ($0.85 diluted EPS), up 16.3% from Q2 2026 and 7.0% YoY, driven by net interest income growth of 4.8% QoQ and a provision reversal of $705K. However, loans held-for-investment declined 3.0% QoQ as the company selectively reduced large commercial relationships, and non-performing assets rose 40.5% QoQ to $12.3M (0.35% of total assets), signaling credit quality deterioration. The board also declared a $0.22 quarterly dividend and authorized a new 700,000-share repurchase program.
Key Financial Metrics
Key Facts
- Record Q3 2026 net income available to common shareholders of $12.1M, or $0.85 per diluted share, vs $10.4M ($0.73) in Q2 2026 and $11.3M ($0.78) in Q3 2025
- Net interest income rose 4.8% QoQ to $28.8M; net interest margin expanded 2 bps to 3.35%
- Provision for credit losses was a reversal of $705K vs a provision of $926K in Q2 2026
- Loans held-for-investment declined 3.0% QoQ to $2.84B due to selective reduction of large commercial relationships
- Non-performing assets (NPAs) increased 40.5% QoQ to $12.3M, or 0.35% of total assets (vs 0.25% in Q2 2026)
- Total deposits grew 5.3% QoQ to $3.08B; core deposits reached $1.98B (64.5% of total deposits)
- Board declared a quarterly cash dividend of $0.22 per common share, payable November 20, 2026
- New stock repurchase program authorized up to 700,000 shares through September 22, 2027
- Cash and cash equivalents nearly doubled to $413.2M (11.7% of total assets) from $207.1M at year-end 2025
Financial Impact
Record quarterly earnings of $12.1M net income to common shareholders, with diluted EPS of $0.85 exceeding the consensus estimate of $0.73 by 16.4%. Revenue of $32.4M (net interest income $28.8M + noninterest income $3.6M) was above the $31.9M consensus. The provision reversal of $705K boosted earnings but is partly offset by a 40.5% QoQ increase in NPAs.
Risk Factors
- Non-performing assets rose 40.5% QoQ to $12.3M, with commercial real estate nonaccruals more than doubling to $6.2M
- Loans held-for-investment declined 3.0% QoQ as the company reduced large commercial relationships, potentially constraining future net interest income growth
- Accumulated other comprehensive loss nearly doubled to $12.0M from $6.1M in Q2 2026, reflecting higher unrealized losses on securities
- Estimated uninsured deposits rose to 49.6% of total deposits from 46.7% in Q2 2026
- Noninterest expense grew 6.2% QoQ, outpacing net interest income growth of 4.8%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001423869-26-000033 |
| Document: pcbinvestordeck3q26.htm | 0001423869-26-000033 |
| Document: pcb-20261028.htm | 0001423869-26-000033 |
| Document: pcbpr20261028dividend.htm | 0001423869-26-000033 |
| Document: 0001423869-26-000033-index-headers.html | 0001423869-26-000033 |
| Document: 0001423869-26-000033-index.html | 0001423869-26-000033 |
| Document: 0001423869-26-000033.txt | 0001423869-26-000033 |
| 8-K Data (Synthetic) | 0001423869-26-000033 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $29.20 | awaiting T+60 | awaiting T+60 | $29.25 (+0.17%) |
Apr 23, 2026 27w ago | 8-K | $23.74 $29.94 | ▲ +26.12% | ▲ +21.04% | $29.25 (+23.21%) |
US Market Status
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