PCB Bancorp. (PCB) Stock Forecast & Price Target

PCB Bancorp has demonstrated robust financial performance by successfully growing its balance sheet and expanding its margins, leading to estimates being revised upward by 8-9%. The company's disciplined cost management resulted in a modest 3.5% increase in expenses, even amidst higher professional fees, which reflects its operational efficiency. Overall, these factors contribute to a projected increase in net interest income (NII) by 3-4%, with anticipated growth rates of 18% for 2025 and 10% for 2026, indicating a favorable outlook for the company.

PCB Bancorp's stock outlook is negatively influenced by a decline in end-of-period loan balances by 6% quarter-over-quarter, primarily driven by a substantial drop in commercial and industrial loans, which fell by 22%. The company's core net interest expense (NIE) also registered at $14.9 million, falling short of its guidance, indicating a lack of operational efficiency and financial control. Furthermore, the return on tangible common equity (ROTCE) remains significantly lower than that of small to mid-sized banks, highlighting persistent profitability challenges amid flat funding costs and declining loan production metrics.