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HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 55.7GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.2%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.75%
Trailing Yield
$3.75
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
35%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PCB BANCORP (PCB) receives a "Hold" rating with a composite score of 52.8/100, ranked #341 out of 4446 stocks. Key factor scores: Quality 56/100, Value 78/100, Momentum 52/100. This is quantitative analysis only — not investment advice.
PCB BANCORP (PCB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PCB BANCORP Do?
PCB Bancorp operates as the bank holding company for Pacific City Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and other consumer loans comprising automobile secured loans and personal loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of 11 full-service branches in Los Angeles and Orange counties, California; and one full-service branch in each of Englewood Cliffs, New Jersey, and Bayside, New York. It also operates 10 loan production offices in Irvine, Artesia, and Los Angeles, California; Annandale, Virginia; Atlanta, Georgia; Chicago, Illinois; Bellevue, Washington; Aurora, Colorado; Carrollton, Texas; and New York, New York. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, California. PCB BANCORP (PCB) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Henry Kim and employs approximately 250 people. With a market capitalization of $325M, PCB is one of the notable companies in the Financials sector.
PCB BANCORP (PCB) Stock Rating — Hold (April 2026)
As of April 2026, PCB BANCORP receives a Hold rating with a composite score of 52.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PCB ranks #341 out of 4,446 stocks in our coverage universe. Within the Financials sector, PCB BANCORP ranks #120 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PCB Stock Price and 52-Week Range
PCB BANCORP (PCB) currently trades at $24.40. The 52-week high for PCB is $24.20, which means the stock is currently trading 0.8% from its annual peak. The 52-week low is $16.00, putting the stock 52.5% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is PCB Overvalued or Undervalued? — Valuation Analysis
PCB BANCORP (PCB) carries a value factor score of 78/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 9.21x, compared to the Financials sector average of 14.88x — a discount of 38%. The price-to-book ratio stands at 0.85x, versus the sector average of 1.22x. The price-to-sales ratio is 114.72x, compared to 0.90x for the average Financials stock. On an enterprise value basis, PCB trades at 6.63x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, PCB BANCORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
PCB BANCORP Profitability — ROE, Margins, and Quality Score
PCB BANCORP (PCB) earns a quality factor score of 56/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.2%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.1% versus the sector average of 1.2%.
On a margin basis, PCB BANCORP reports gross margins of 0.0%. The operating margin is 1731.7% (sector: 21.8%). Net profit margin stands at 1246.3%, versus 17.7% for the average Financials stock. Revenue growth is running at 21.5% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PCB Debt, Balance Sheet, and Financial Health
PCB BANCORP has a debt-to-equity ratio of 741.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $0. Cash and equivalents stand at $24M.
PCB has a beta of 0.73, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PCB BANCORP is 83/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PCB BANCORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, PCB BANCORP reported revenue of $3M and earnings per share (EPS) of $2.59. Net income for the quarter was $36M. Gross margin was 0.0%. Operating income came in at $50M.
In FY 2025, PCB BANCORP reported revenue of $3M and earnings per share (EPS) of $2.59. Net income for the quarter was $37M. Revenue grew 4.5% year-over-year compared to FY 2024. Operating income came in at $52M.
In Q3 2025, PCB BANCORP reported revenue of $735,000 and earnings per share (EPS) of $0.79. Net income for the quarter was $11M. Revenue grew -4.5% year-over-year compared to Q3 2024. Operating income came in at $16M.
In Q2 2025, PCB BANCORP reported revenue of $722,000 and earnings per share (EPS) of $0.63. Net income for the quarter was $9M. Revenue grew 19.3% year-over-year compared to Q2 2024. Operating income came in at $13M.
Over the past 8 quarters, PCB BANCORP has demonstrated a growth trajectory, with revenue expanding from $605,000 to $3M. Investors analyzing PCB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PCB Dividend Yield and Income Analysis
PCB BANCORP (PCB) currently pays a dividend yield of 3.8%. At this yield, a $10,000 investment in PCB stock would generate approximately $$375.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning PCB offers above-average income for its sector. With a net margin of 1246.3%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
PCB Momentum and Technical Analysis Profile
PCB BANCORP (PCB) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 6/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PCB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing PCB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PCB vs S&P 500 (SPY) comparison to assess how PCB BANCORP stacks up against the broader market across all factor dimensions.
PCB Next Earnings Date
No upcoming earnings date has been announced for PCB BANCORP (PCB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PCB? — Investment Thesis Summary
PCB BANCORP presents a balanced picture with arguments on both sides. The value score of 78/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 83/100) reduces downside risk.
In summary, PCB BANCORP (PCB) earns a Hold rating with a composite score of 52.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PCB stock.
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Institutional Research Dossier
PCB BANCORP (PCB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
PCB Bancorp (PCB) receives a Hold rating, driven by a mixed financial profile. While the company exhibits strong profitability metrics and trades at a discount to its sector on valuation multiples, concerns arise from its relatively low investment score and negative free cash flow. The bank's focus on serving small to medium-sized businesses in specific geographic regions presents both opportunities and challenges, requiring careful consideration of its growth prospects and risk management.
The key takeaway is that PCB Bancorp presents a complex investment case. Its attractive valuation and high profitability are counterbalanced by its limited investment in future growth and negative free cash flow. Investors should closely monitor the bank's ability to sustain its profitability while improving its capital allocation strategy and cash flow generation.
Business Strategy & Overview
PCB Bancorp operates as a community bank primarily serving the Korean-American community and small to medium-sized businesses in Southern California, with expanding presence in New Jersey and New York. The bank's strategy revolves around providing personalized banking services and tailored loan products to its target customer base. This includes a range of deposit accounts, real estate loans (commercial, residential, SBA), commercial and industrial loans, and consumer loans. The bank also offers digital banking services, including online and mobile banking, to enhance customer convenience.
A key element of PCB Bancorp's strategy is its focus on relationship banking. By building strong relationships with its customers, the bank aims to attract and retain deposits, as well as generate loan growth. The bank's expansion into new geographic markets, such as New Jersey and New York, is intended to diversify its revenue streams and tap into new customer bases. The expansion strategy includes loan production offices in various states, indicating a focus on originating loans in these markets.
The bank's reliance on real estate loans, particularly commercial real estate, exposes it to risks associated with fluctuations in the real estate market. The bank's participation in the SBA loan programs provides a government guarantee on a portion of its loan portfolio, which mitigates some of the credit risk. However, the bank's ability to effectively manage its credit risk and maintain asset quality is crucial to its long-term success.
PCB Bancorp's industry context involves navigating a highly competitive banking landscape, particularly in Southern California. The bank competes with larger national and regional banks, as well as other community banks and credit unions. To differentiate itself, PCB Bancorp emphasizes its personalized service, cultural understanding of its target market, and efficient loan processing. The bank's success depends on its ability to maintain a strong competitive position and adapt to changing customer preferences and technological advancements.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
21.5%
Sector: 9.4%
+129% VS SCTR
Economic Moat Analysis
PCB Bancorp's economic moat is likely Narrow. While the bank benefits from serving a specific niche market (Korean-American community and small to medium-sized businesses), its competitive advantages are not insurmountable. The bank's focus on relationship banking and personalized service creates some customer loyalty, but these advantages can be replicated by other banks.
The bank's geographic concentration in Southern California and its focus on real estate lending expose it to regional economic risks and industry-specific competition. While the bank's expansion into new markets diversifies its revenue streams, it also increases its operational complexity and requires significant investment. The bank's participation in SBA loan programs provides a degree of protection against credit losses, but it does not create a sustainable competitive advantage.
The bank's intangible assets, such as its brand reputation and customer relationships, are valuable but not unique. Other banks also strive to build strong customer relationships and establish a positive brand image. The bank's cost advantages, if any, are likely limited, as it operates in a highly competitive market with relatively standardized banking products and services.
The bank does not appear to benefit from network effects or efficient scale. Network effects are typically associated with businesses that become more valuable as more users join the network, which is not directly applicable to PCB Bancorp's business model. Efficient scale refers to a situation where a company can achieve lower costs per unit as it grows larger, but this advantage is not readily apparent in the community banking sector.
Overall, PCB Bancorp's narrow moat is based on its niche market focus, relationship banking approach, and geographic presence. However, these advantages are not strong enough to create a wide moat that would protect the bank from competition and ensure long-term profitability. The bank's ability to maintain its narrow moat depends on its continued focus on customer service, efficient operations, and effective risk management.
Financial Health & Profitability
PCB Bancorp's financial health presents a mixed picture. The company exhibits strong profitability metrics, with a net margin of 1,246.3% and an operating margin of 1,731.7%, significantly exceeding the sector averages of 17.8% and 22.0%, respectively. The company's ROE of 9.2% is also slightly above the sector average of 8.5%. However, the company's revenue of $2.90M appears unusually low relative to its net income of $37.45M, suggesting potential non-operating income or accounting anomalies that warrant further investigation.
The company's revenue growth of 21.5% is significantly higher than the sector average of 9.3%, indicating strong business momentum. However, the company's free cash flow is negative at $-10.79M, which raises concerns about its ability to fund its operations and growth initiatives. The company's current ratio of 1.13 indicates adequate liquidity to meet its short-term obligations.
The company's balance sheet is relatively clean, with total debt of $0.00. However, the company's debt-to-equity ratio of 741.00 is extremely high, which is likely a data error given the zero debt figure. This discrepancy needs to be clarified to accurately assess the company's financial leverage.
Analyzing the quarterly financial history reveals consistent profitability, with net income ranging from $4.68M to $11.41M per quarter. The operating margin has consistently remained above 900%, indicating strong operational efficiency. However, the revenue figures remain relatively low and require further scrutiny to understand the underlying drivers of the company's profitability.
Overall, PCB Bancorp's financial health is characterized by strong profitability and revenue growth, but concerns arise from its negative free cash flow and potential data inconsistencies in its debt-to-equity ratio. Investors should carefully examine the company's cash flow generation and balance sheet leverage to assess its long-term financial sustainability.
Valuation Assessment
PCB Bancorp's valuation appears attractive based on several metrics. The company's P/E ratio of 8.4x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the company's EV/EBITDA ratio of 1.5x is substantially lower than the sector average of 3.5x, further indicating undervaluation.
However, the company's negative free cash flow complicates the valuation assessment. A traditional discounted cash flow analysis would be challenging due to the negative free cash flow. Alternative valuation methods, such as relative valuation based on earnings or book value, may be more appropriate.
The company's strong profitability and revenue growth support a higher valuation. However, the negative free cash flow and potential data inconsistencies in its financial statements warrant caution. Investors should carefully consider the company's growth prospects, risk profile, and financial health before making an investment decision.
Compared to its historical valuation, PCB Bancorp's current P/E ratio is relatively low, suggesting that the stock may be trading at a discount to its historical average. However, it is important to consider the company's historical performance and future growth prospects when assessing its valuation. If the company can sustain its profitability and improve its cash flow generation, its valuation could potentially increase.
Overall, PCB Bancorp's valuation appears attractive based on its P/E and EV/EBITDA ratios. However, the negative free cash flow and potential data inconsistencies warrant caution. Investors should conduct thorough due diligence and consider the company's growth prospects, risk profile, and financial health before making an investment decision. The Hold rating reflects the uncertainty surrounding the company's valuation and financial sustainability.
Risk & Uncertainty
PCB Bancorp faces several specific risks and uncertainties. One of the primary risks is its geographic concentration in Southern California. Economic downturns or adverse events in this region could significantly impact the bank's loan portfolio and profitability. The bank's expansion into new markets, while intended to diversify its revenue streams, also increases its operational complexity and requires significant investment.
Another risk is the bank's reliance on real estate loans, particularly commercial real estate. Fluctuations in the real estate market could lead to increased loan defaults and reduced profitability. The bank's ability to effectively manage its credit risk and maintain asset quality is crucial to its long-term success. Changes in interest rates could also impact the bank's net interest margin and profitability.
Competition from larger national and regional banks, as well as other community banks and credit unions, poses a significant challenge. The bank's ability to differentiate itself and maintain a strong competitive position is essential. Technological advancements and changing customer preferences could also disrupt the banking industry and require the bank to adapt its business model.
Regulatory changes and compliance costs could also impact the bank's profitability. Increased regulatory scrutiny and stricter capital requirements could increase the bank's operating expenses and limit its ability to grow. The bank's ability to comply with all applicable laws and regulations is crucial to its long-term success.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPCB Bancorp's strong profitability metrics, including high net and operating margins, indicate efficient operations and a competitive advantage.
BULL VIEWThe bank's low P/E and EV/EBITDA ratios suggest that the stock is undervalued and offers potential upside for investors.
BULL VIEWPCB Bancorp's revenue growth significantly outpaces the sector average, demonstrating strong business momentum and market share gains.
The Bear Case
BEAR VIEWPCB Bancorp's negative free cash flow raises concerns about its ability to fund its operations and growth initiatives without external financing.
BEAR VIEWThe bank's geographic concentration in Southern California exposes it to regional economic risks and limits its diversification.
BEAR VIEWThe unusually low revenue relative to net income suggests potential non-operating income or accounting anomalies that warrant further investigation and could indicate unsustainable profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PCB and 4,400+ other equities.
PCB BANCORP exhibits a 3170% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
1731.7%
Sector: 21.8%
Net Margin
Bottom-line profitability
1246.3%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+51%
Income Projection audit
A $10,000 investment would generate approximately $375 annually in dividends at the current trailing rate.
