PCB Bancorp. (PCB) Stock Forecast & Price Target

PCB Bancorp has demonstrated a robust financial expansion, with projected estimates increasing by 8-9% due to effective balance sheet growth and improved margins, outperforming initial expectations in lowering deposit costs. The company has maintained stringent cost control, with expenses rising just 3.5%, even amid increased professional fees related to the ECIP restatement. Furthermore, the anticipated growth in net interest income (NII) of 3-4% over prior models, alongside projections of 18% growth in 2025 and 10% in 2026, reinforces a positive outlook for the bank's future performance metrics.

PCB Bancorp's recent financial performance exhibited several troubling indicators, contributing to a negative outlook on the stock. The company reported a 6% decline in end-of-period loan balances, driven by significant reductions in commercial and industrial loans, alongside disappointing guidance on core net interest income (NIE) which fell short of expectations at $14.9 million. Furthermore, despite trading at a relatively high tangible book value multiple compared to peers, the bank's return on tangible common equity (ROTCE) remains 150 basis points lower than its small- to mid-cap competitors, highlighting persistent profitability challenges.