PCB Bancorp (PCB) 2Q26 earnings: $0.73 diluted EPS, NIM widens to 3.33%, deposits reach $2.92 billion
A 5.8% year-over-year gain in net interest income and diluted earnings of $0.73 per share moved PCB Bancorp (PCB) into focus after the Los Angeles-based bank reported second-quarter 2026 results on July 23. Net income…
A 5.8% year-over-year gain in net interest income and diluted earnings of $0.73 per share moved PCB Bancorp (PCB) into focus after the Los Angeles-based bank reported second-quarter 2026 results on July 23. Net income came to $10.4 million. Total deposits reached $2.92 billion as the held-for-investment loan portfolio closed the quarter at $2.93 billion.
Margin and returns
Net interest income of $27.494 million for 2Q26 rose $1.504 million from a year earlier and $684 thousand from 1Q26. Net interest margin widened to 3.33%. Interest income totaled $50.040 million; interest expense fell $772 thousand year-over-year to $22.546 million as deposit funding costs began to ease.
Return on average assets was 1.24%. Return on average equity was 10.55%. Return on average tangible common equity came in at 12.65%. Pretax income of $14.658 million improved 15.7% from the year-ago quarter.
The provision for credit losses nearly doubled sequentially to $926 thousand from $467 thousand in 1Q26. A year ago the provision was $1.787 million. The efficiency ratio finished the quarter at 49.23%.
Loans and deposit composition
PCB Bancorp, founded in 2003 and headquartered in Los Angeles, operates 15 full-service branches with loan originators across six states. The bank originated $167.4 million in loans during 2Q26, pushing the held-for-investment portfolio to $2.93 billion at an average yield of 6.38%. Total loans to deposits stood at 100.42%. Since 2021, the loan book has grown at a 13.0% compound annual rate while deposits expanded at a 10.6% CAGR over the same period.
Noninterest-bearing deposits totaled $569.4 million, or 19.5% of total deposits. Core deposits were $1.86 billion, representing 63.5% of the base. Cost of total deposits was 3.05%; cost of average interest-bearing deposits was 3.76%.
Asset quality and capital
Nonperforming assets were $8.7 million, or 0.30% of HFI loans. Past-due and still-accruing loans were $394 thousand. The allowance for credit losses stood at $34.7 million, equal to 1.18% of the portfolio.
PCB declared a quarterly cash dividend of $0.22 per share, with the stock quoted at $29.94 as of July 21 and a resulting dividend yield of 2.94%. The bank repurchased 141,434 shares at a weighted-average price of $25.47 during the quarter. Book value per share reached $28.40; tangible common equity per share was $23.49. Available borrowing capacity stood at $1.83 billion, or 52.6% of total assets.