PCB Bancorp. (PCB) Stock Forecast & Price Target

PCB Bancorp has demonstrated strong growth potential, with estimates revised upward by 8-9% due to effective balance sheet expansion and improved margins resulting from successful reductions in deposit costs. The company’s expenses have remained well-controlled, increasing only 3.5%, despite facing additional professional fees associated with the ECIP restatement. Furthermore, projections for net interest income (NII) have been increased by 3-4%, forecasting significant growth rates of 18% in 2025 and 10% in 2026, indicating a positive financial outlook for the bank holding company.

PCB Bancorp's recent financial performance indicates several concerning trends, including a core net interest expense (NIE) that fell short of guidance at $14.9 million, alongside a 6% decline in end-of-period loan balances driven by significant reductions in commercial and industrial loans. Additionally, the lower than expected loan loss provision reversal of $0.4 million, in conjunction with improved credit metrics, highlights the challenges faced in maintaining loan growth and profitability, as reflected in their return on tangible common equity (ROTCE) being 150 basis points lower than small and mid-sized banks. Compounding these issues, the company's shares trade at a valuation of 1.0 times tangible book value (TBV), slightly above peers, which suggests skepticism regarding future growth potential in light of the reported weakness in financial control and ongoing pressure on net interest margin (NIM).