PCB Bancorp (PCB): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for the engine behind PCB Bancorp's recent success-like that record $11.3 million net income in Q3 2025-and honestly, it all comes down to a laser-focused marketing mix. As someone who's mapped bank strategies for two decades, I can tell you their four P's aren't generic; they are a direct reflection of their commitment to the Korean-American business community. Their ability to expand their Net Interest Margin to 3.33% in Q2 2025 while growing deposits to $2.91 billion by September shows their niche approach is working. So, let's break down exactly how PCB Bancorp is positioning its Product, Place, Promotion, and Price in late 2025 to keep that momentum going.

PCB Bancorp (PCB) - Marketing Mix: Product

You're looking at what PCB Bancorp actually sells to its clients. For a bank holding company like PCB Bancorp, the product is fundamentally financial services, built around its loan and deposit offerings. The core product strategy centers on relationship banking, serving small to medium-sized businesses and professionals, with a strong historical focus on the Korean-American community in Southern California, though they are expanding, evidenced by the opening of a full-service branch in Suwanee, Georgia, in the second quarter of 2025.

Commercial Real Estate (CRE) loans remain a primary asset class for PCB Bancorp. As of September 30, 2025, the total Loans Held-for-Investment (HFI) stood at $2.75 billion. Within that portfolio, CRE loans saw a slight reduction, decreasing by $8.9 million, which represents a 0.5% decline during the third quarter of 2025. This indicates a measured approach to managing that asset class amidst the current economic environment.

Supporting small-to-midsize businesses is the focus of the Commercial & Industrial (C&I) loans segment. This category experienced a more notable sequential reduction in the third quarter of 2025, falling by $27.4 million, or 5.6%. Overall, the total HFI loan portfolio decreased by 1.5% in the quarter, with consumer loans also contributing a smaller decrease of $6.5 million (1.6%).

SBA (Small Business Administration) lending is a significant area of focus, often generating noninterest income through loan sales. In the third quarter of 2025, PCB Bancorp realized a gain on the sale of SBA loans totaling $1.62 million, marking a 10.4% increase quarter-over-quarter. The volume of balances sold in the secondary market was $29.0 million for the quarter, and year-to-date SBA gains were up 53% year-over-year, showing sustained momentum in this national lending program.

The deposit side of the product offering is crucial for funding these loans. Total deposits for PCB Bancorp reached $2.91 billion as of September 30, 2025, which was an increase of $90.6 million (3.2%) from the end of the prior quarter. This growth represents an 18.5% increase compared to the same time last year, when total deposits were $2.46 billion.

Here's a look at the key components of the loan portfolio as of the end of Q3 2025:

PCB Bancorp offers a full suite of deposit products designed to capture core funding. These include the foundational noninterest-bearing demand accounts, as well as interest-bearing options that reflect competitive market conditions. The mix of these products is important for managing funding costs.

• Noninterest-bearing demand deposits were $551,312 (in thousands) as of September 30, 2025.
• Savings, NOW, and money market accounts totaled $669,374 (in thousands) at September 30, 2025.
• The product suite also includes time deposits and certificates of deposit.

Beyond core lending and deposits, PCB Bancorp provides specialized services to enhance client relationships, particularly for its business clientele. These services aim to streamline treasury and payment operations for small and medium-sized enterprises.

• Trade finance capabilities support international business needs.
• Remote deposit capture and courier deposit services streamline cash management.
• Positive pay, zero balance accounts, and sweep accounts manage payment security and liquidity.

Finance: draft the Q4 2025 product utilization report by February 15th.

PCB Bancorp (PCB) - Marketing Mix: Place

Place, or distribution, for PCB Bancorp (PCB) centers on making its specialized commercial banking services accessible where its target demographic, primarily the Korean-American business community, is concentrated, supplemented by digital channels for broader reach.

The core of PCB Bancorp's physical distribution strategy remains a concentrated branch network primarily in Southern California. This focus allows for deep cultural understanding and language capabilities to effectively serve this niche market, which is a key strategic advantage. As of December 31, 2024, the bank operated 11 full-service branches within Los Angeles and Orange Counties, California, which are high-density centers for this community.

PCB Bancorp has pursued a strategic expansion beyond its Southern California base, establishing a strategic presence in key markets like New York, New Jersey, and Texas. This outward push targets growing business centers with significant Korean-American populations and corporate activity. As of December 31, 2024, the East Coast presence included three full-service branches located in Bayside, New York; Englewood Cliffs, New Jersey; and Palisades Park, New Jersey. The Texas presence included two full-service branches in Carrollton and Dallas.

Regarding the total branch count, PCB Bancorp reported a specific structure at the end of 2024, which was then augmented by expansion plans. As of December 31, 2024, the total full-service branch count was 16 (11 in CA + 3 on East Coast + 2 in TX). Furthermore, the bank announced the opening of its first full-service branch in Georgia in the second quarter of 2025, which would bring the total to 17 full-service branches, assuming no concurrent consolidations took effect after the year-end report. The bank also maintained Loan Production Offices (LPOs) in Bellevue, Washington, and Atlanta, Georgia, as of December 31, 2024, which support lending activities outside the full-service branch footprint.

The distribution strategy is supported by a commitment to remote access through digital banking platforms for remote access and convenience. PCB Bancorp offers online banking, mobile banking, and 24/7 telephone banking services. Specialized digital services supporting business clients include remote deposit capture and Cash Management services.

The entire physical footprint is designed around a focus on high-density Korean-American business centers. This targeted approach is evident in the concentration of branches in areas like Los Angeles and Orange County, California, and the expansion into East Coast markets like New Jersey, which also show high concentrations of the target demographic and affiliated Korean conglomerates.

Here's the quick math on the known full-service branch distribution as of the latest reported data plus the confirmed 2025 opening:

PCB Bancorp also utilizes Loan Production Offices (LPOs) to extend its reach without the full overhead of a branch. These LPOs were noted in:

• Bellevue, Washington
• Atlanta, Georgia

The bank's status as the third largest Korean American Bank underscores the effectiveness of this geographically focused distribution strategy relative to its peers.

PCB Bancorp (PCB) - Marketing Mix: Promotion

PCB Bancorp (PCB) focuses its promotional activities on reinforcing its position as a community-focused, relationship-driven financial institution, particularly within the Southern California Korean-American and other minority communities.

Community-centric marketing through cultural and business organizations.

• PCB Bancorp is the bank holding company for Pacific City Bank, which offers services predominantly to Korean-American and other minority communities in Southern California.
• The Bank received an "Outstanding" rating from the FDIC for its community reinvestment initiatives in 2022.
• Community Investment strategy includes providing monetary donations, volunteering time, and offering paid time off for staff to participate in community service focused on financial education, serving lower-income communities, job training, and nutrition assistance.

Bilingual (Korean/English) staff and marketing materials are defintely key.

While specific spending on bilingual materials is not itemized, the core customer base dictates this operational necessity for effective communication and service delivery.

Relationship-based selling model, emphasizing personal service.

The emphasis on relationship banking is a core tenet, supported by the operational structure and executive compensation figures.

Digital outreach and advertising targeting small business owners.

Direct advertising spend showed fluctuation in early 2025 compared to prior periods.

• Marketing and Business Promotion expenses saw a decrease in the first quarter of 2025 compared with the year-ago quarter, primarily due to a decrease in advertising.
• The decrease in Marketing and Business Promotion for Q1 2025 compared with the previous quarter was primarily due to year-end promotions during the previous quarter.
• For the broader financial services industry in 2025, digital ad spending is expected to maintain around 11-12% of the digital ad market, potentially reaching $37 billion, with a focus on financial literacy content to build consumer trust.

Sponsorship of local events to build brand trust and visibility.

The Community Investment program, which includes providing funding and corporate partnerships, serves to build brand trust and visibility within the local footprint.

The company reported net income available to common shareholders of $11.3 million for the third quarter of 2025.

PCB Bancorp (PCB) - Marketing Mix: Price

The pricing element for PCB Bancorp centers on managing the interest rate spread to drive profitability while remaining competitive for both lending and deposit gathering within its Southern California community focus. This involves setting loan yields based on borrower risk and structuring deposit costs to secure core funding.

Competitive loan pricing is reflected in the weighted-average contractual rates across the loan portfolio as of March 31, 2025. You can see how the pricing is structured across different loan types:

Deposit rates are managed to attract core deposits, which reached 59.3% of total deposits in Q1 2025 and 59.6% in Q2 2025. The cost structure shows movement in funding expenses; the cost of total funding fell to 3.35% q/q in Q2 2025, following a decline in the cost of interest-bearing liabilities in that quarter.

Fee income generation is a key component, particularly from the Small Business Administration (SBA) loan program. In Q2 2025, the gain on sale of SBA loans reached $1.465M, representing a 65% increase quarter-over-quarter and a 92% year-over-year increase, based on $26.9M in sold balances. The Q3 2025 record earnings were also explicitly attributed to increases in the gain on sale of SBA loans. However, this income can be variable; for instance, the SBA gain-on-sale component of noninterest income decreased 23.6% q/q in Q1 2025.

Interest rate spread management directly impacts the Net Interest Margin (NIM). PCB Bancorp's NIM has shown expansion, moving from 3.28% in Q1 2025 to 3.33% in Q2 2025. This Q2 2025 NIM represented an increase of 17 basis points year-over-year from 3.16%. The pricing strategy is clearly aimed at growth while maintaining this margin strength, as evidenced by the actual achieved NIMs exceeding the estimated 3.5%+ target in the second quarter of 2025.

The balance sheet reflects this pricing strategy's success in driving asset growth:

• Loans Held-for-Investment (HFI) grew to $2.73B in Q1 2025 and further to $2.80B in Q2 2025.
• Total Deposits increased to $2.82B by the end of Q2 2025 and reached $2.91B by September 30, 2025.
• Uninsured deposits stood at 41.4% of total deposits at the end of Q1 2025 and 41.3% at the end of Q2 2025.

Finance: draft 13-week cash view by Friday.