PCB Bancorp (PCB): BCG Matrix [Dec-2025 Updated]

You're looking at PCB Bancorp's late-2025 financials, and the picture is one of sharp contrasts: while record $0.78 Earnings Per Share and 16.4% asset growth signal clear 'Stars,' the bank still relies on a massive $1.815 billion Commercial Real Estate base acting as a 'Cash Cow.' Still, you need to see where the 15.2% drop in noninterest income lands, and what the strategic moves into Bellevue and Atlanta-our 'Question Marks'-mean for future risk, especially with uninsured deposits hitting 41.4%. Dive in to see the full four-quadrant map of where PCB Bancorp is winning and where management needs to focus next.

Background of PCB Bancorp (PCB)

You're looking at PCB Bancorp (PCB), the holding company for PCB Bank, which operates primarily out of California. Honestly, this is a niche player; its main focus is serving the Korean-American community with financial products like commercial and residential loans. That focus is key to understanding its market position.

Let's look at the numbers coming out of 2025. For the third quarter ending September 30, 2025, PCB Bancorp reported revenue of $30.39 million. This contributed to a trailing twelve-month (TTM) revenue of $107.74 million, which is actually up 13.61% year-over-year. To give you a sense of scale, the annual revenue for the full year 2024 was $96.31 million.

The profitability picture shows some solid momentum, despite some accounting noise earlier in the year. For instance, net income available to common shareholders hit $9.0 million in the second quarter of 2025. This followed a Q1 2025 net income of $7.7 million, which represented a 64.2% jump from the prior year's first quarter. You should know, though, that the Q1 2025 results were subject to a restatement due to how they handled a preferred stock purchase option, which resulted in a $35.8 million reduction in total assets and equity.

On the balance sheet side, as of March 31, 2025, Total Assets stood at $3.18 billion, marking a 3.9% increase from the end of 2024. Deposits were healthy, reaching $2.71 billion by that same date. The bank is also expanding its footprint; they opened a full-service branch in Suwanee, Georgia, during the second quarter of 2025 as part of their long-term strategy. Plus, the Board declared a quarterly cash dividend of $0.20 per common share in both April and July of 2025.

The trailing Earnings Per Share (EPS) as of late 2025 was $2.39. The market is expecting earnings to grow next year, with a forecast increase from $2.04 to $2.31 per share. Still, the bank's own forecast for annual revenue growth in 2025-2027 is only 8.95%, which analysts note is significantly lower than the regional industry average forecast of 510.2%.

PCB Bancorp (PCB) - BCG Matrix: Stars

Stars in the Boston Consulting Group Matrix represent business units or products operating in a high-growth market where PCB Bancorp currently holds a high market share. These are the leaders, but honestly, they still demand significant investment to maintain that leading position and fuel further expansion. If PCB Bancorp can sustain this success as the market growth inevitably slows, these units are positioned to transition into Cash Cows.

The performance metrics for PCB Bancorp in the third quarter of 2025 definitely point to several areas fitting this Star profile, showing strong internal momentum outpacing the broader industry in key areas. For instance, the strategic focus on the Small Business Administration (SBA) loan market is paying off handsomely. SBA loan sales generated a $1.6 million gain in Q3 2025, which is a massive jump, up 113% year-over-year. That kind of growth in a specific revenue stream suggests a dominant position in a segment that is still expanding.

This growth isn't just isolated; it's reflected across the balance sheet. Total assets grew 16.4% year-over-year to reach $3.36 billion, significantly outpacing the industry average growth rates reported by analysts. This scale and growth trajectory are hallmarks of a Star; you're investing heavily in assets to capture market share.

Here's a quick look at some of the key performance indicators from that strong Q3 2025 period:

• Record quarterly net income available to common shareholders: $11.3 million.
• Return on Average Assets (ROAA): 1.35%.
• Operating efficiency improved, with the efficiency ratio at 48.9%.
• Allowance for Credit Losses (ACL) on loans to loans held-for-investment ratio remained steady at 1.20%.

The market is recognizing this strong operational performance. Earnings Per Share (EPS) hit a record $0.78 in Q3 2025, which materially beat the Wall Street consensus estimate of $0.603. That's a significant beat, showing better-than-expected profitability from these high-growth activities.

To map out the expected trajectory, we look at forward-looking analyst sentiment. Analyst revenue forecasts project a 13% annual growth rate for the next two years. While some external forecasts suggest slightly lower revenue growth rates compared to the market, the internal momentum, especially in areas like SBA gains, suggests PCB Bancorp is successfully executing its strategy to solidify its high market share in growing segments.

Consider this snapshot comparing the record quarter performance to the growth outlook:

The key tenet here is investment. PCB Bancorp needs to keep pouring resources into these high-share, high-growth areas-like the SBA secondary market operations that yielded that large premium-to ensure they don't lose ground to competitors. If the market growth rate decelerates over the next few years, these units, fueled by current investment, should start generating excess cash flow, making the transition to Cash Cow status a real possibility. You want to see management continue to fund these Stars aggressively right now.

PCB Bancorp (PCB) - BCG Matrix: Cash Cows

Cash Cows are the business units that PCB Bancorp relies on for stable cash generation in mature markets. These segments possess high market share and require minimal new investment to maintain their position, allowing them to fund other areas of the business.

The core Commercial Real Estate (CRE) portfolio is identified as the largest segment, totaling over $1.815 billion in Q1 2025. This concentration in a core lending area suggests a high market share within PCB Bancorp's operational footprint, typical of a Cash Cow.

Net Interest Income (NII) provides the stable, recurring revenue stream characteristic of this quadrant. For the third quarter of 2025, NII reached $26.98 million, marking a 3.8% quarter-over-quarter increase. This consistent income stream is the primary engine for supporting corporate functions and shareholder returns.

The strong deposit base acts as the primary, low-cost funding source, which is crucial for maintaining high profit margins in a Cash Cow. Total deposits at the end of Q3 2025 stood at $2.91 billion, representing a 3.2% increase from the prior quarter. This large, relatively stable funding base keeps the cost of funds manageable.

Shareholder return is reliably supported by the dividend policy. PCB Bancorp declared a consistent quarterly cash dividend of $0.20 per common share in Q3 2025. Companies are advised to passively milk these gains, and the maintained dividend reflects this strategy.

You can see the key financial metrics that underscore the stability of this segment in the table below:

The focus for Cash Cows is maintaining productivity, often through infrastructure investments that boost efficiency. PCB Bancorp saw its efficiency ratio improve to 48.92% in Q3 2025 from 50.63% in Q2 2025, showing that support investments are helping to increase cash flow generation.

The performance in Q3 2025 was strong, with net income available to common shareholders reaching $11.3 million, or $0.78 per diluted common share. This strong profitability, driven by the core business, is what makes these units the most desired in the portfolio.

• Core lending focus on Commercial Real Estate.
• NII growth signals stable core profitability.
• Deposits provide low-cost funding stability.
• Dividend payout is reliable at $0.20 per share.
• Strong credit quality supports asset performance.

If onboarding takes 14+ days, churn risk rises, but here, the established client relationships underpinning the CRE and deposit base suggest low near-term risk to market share. Finance: draft 13-week cash view by Friday.

PCB Bancorp (PCB) - BCG Matrix: Dogs

Units categorized as Dogs within PCB Bancorp (PCB) are those operating in markets characterized by low growth and where the company maintains a relatively low market share. These areas typically consume management attention without providing significant cash flow or growth prospects, making them candidates for minimization or divestiture.

Evidence pointing toward these low-return segments is visible in the noninterest income streams for the first quarter of 2025. Specifically, Noninterest income, excluding the volatile gain on loan sales, saw a 15.2% quarter-over-quarter decline in Q1 2025. This contraction suggests that the underlying activities in these areas are not keeping pace with the rest of the business or the broader economic environment.

Drilling down into the components of this noninterest income stream reveals specific areas exhibiting this low-return profile. The data from the first quarter of 2025 clearly illustrates the pressure on these specific fee-based revenues compared to the preceding quarter:

The decline in loan servicing income is particularly telling. Loan servicing income specifically fell 15.8% QoQ in Q1 2025, demonstrating a low-growth, low-return area where the value generated is diminishing sequentially. This type of revenue stream, when declining, fits the profile of a Dog, tying up capital or resources for minimal net benefit.

Furthermore, the overall growth trajectory for PCB Bancorp, while positive in core areas like Net Interest Income, suggests relative underperformance when compared to the broader market, which aligns with a low market share position in certain segments. For instance, the forecast for the full year 2025 indicates:

• Forecast Annual Revenue Growth for PCB Bancorp: 10.3% per annum.
• Forecast Annual Revenue Growth for the US Market: 10.5% per annum.

This slight underperformance against the market benchmark suggests that even the overall business may be struggling to capture market share in high-growth areas, pushing some of its existing, less dynamic operations into the Dog quadrant. Expensive turn-around plans are generally ill-advised for Dogs because the low-growth market context limits the potential upside for the required investment.

On the credit side, a counter-indicator of immediate risk, but also of low credit expansion opportunities, is present in the third quarter results. A reversal for credit losses of $(381) thousand in Q3 2025 suggests a low-risk, but also low-growth, credit environment. While a reversal is positive for the income statement, it implies that the loan portfolio growth, which drives future credit risk and potential return, is not aggressive enough to warrant an increased provision, reinforcing the low-growth characterization for certain business lines.

• Q3 2025 Reversal for Credit Losses: $(381) thousand.
• ACL on loans to loans held-for-investment ratio at September 30, 2025: 1.20%.

You should treat these Dog segments as cash traps where capital is better redeployed into Stars or Question Marks showing higher potential. Finance: draft a divestiture analysis for the lowest-performing noninterest income stream by end of Q1 2026.

PCB Bancorp (PCB) - BCG Matrix: Question Marks

You're looking at the parts of PCB Bancorp (PCB) that are in high-growth markets but haven't yet secured a solid market share. These are the Question Marks; they demand cash to fuel their growth potential, but right now, they aren't giving much back in returns. Honestly, these units are currently costing the company money, but they hold the possibility of becoming Stars if we can quickly invest enough to capture that market growth.

The geographic expansion into new territories like Bellevue, Washington, and Atlanta, Georgia, fits this profile perfectly. These are markets with high projected growth, but PCB Bancorp's market penetration and share are still unproven as of Q1 2025. This requires heavy investment in marketing and infrastructure to gain traction quickly, or these efforts risk becoming Dogs.

Within the loan portfolio, the Commercial and Industrial (C&I) segment represents a key area needing focus. While the overall loan book is growing, C&I loans, reported at $494.7 million in Q1 2025, are a smaller segment relative to the total Loans Held-for-Investment of $2.73 billion at March 31, 2025. This segment has high growth potential, but its current market share within the broader C&I lending space is what defines it as a Question Mark.

A significant, high-focus risk area that demands management attention and capital allocation is the funding structure. The rise in uninsured deposits to 41.4% in Q1 2025, up from 39.6% in Q4 2024, elevates funding risk sensitivity in the current banking climate. This is a classic Question Mark characteristic: high growth in a volatile area that consumes management focus.

Furthermore, credit quality in a specific area requires close monitoring. Residential mortgage nonaccruals increased to $3.15 million in Q1 2025. While total Nonperforming Loans (NPLs) to total loans remained low at 0.23% (NPLs at $6.25 million), this specific increase signals where immediate attention is needed to prevent this segment from becoming a drag.

Here's a snapshot of the key financial metrics defining the environment for these Question Marks as of Q1 2025:

The strategy here is clear: you must decide whether to invest heavily to rapidly grow the market share of these new ventures-like the geographic expansions or the C&I segment-or divest if the potential isn't there. The current cash burn associated with managing higher-risk items, like the uninsured deposit mix, must be justified by rapid market share gains in the growth areas.

Consider the immediate focus areas that need resource allocation:

• Aggressively fund marketing and operational setup for Bellevue and Atlanta.
• Develop a clear plan to migrate uninsured deposits to core/insured status.
• Allocate capital to manage the specific residential mortgage nonaccruals.
• Determine the investment level required for C&I loans to move from a Question Mark to a Star.

The alternative to heavy investment is divestiture, which stops the cash drain but forfeits the high-growth market potential. If the C&I loan growth stalls or the new markets don't gain traction, these units will quickly shift into the Dog quadrant, so timing the investment decision is defintely critical.