PCB BANCORPPCB

PCB BANCORP Segments Disclosure

10-KFiled Mar 16, 20262 min read
Segment Information
The Company operates as a single operating segment, the banking segment or the Bank, providing financial services within the U.S. The Bank provides a full range of deposit products, and commercial and residential loans, primarily to individuals, small businesses and commercial clients. All operations are domestic.
The CODM, the Chief Executive Officer, evaluates the performance and allocates resources to the Bank as a whole. The CODM relies on the Executive Management Team, which includes the Chief Financial Officer, Chief Risk Officer, Chief Banking Officer, Chief Credit Officer and others, to provide detailed financial and operational reports. These reports help the CODM assess the performance of the Bank and determine the appropriate allocation of resources. Although the Bank management team provides valuable insights into various functional areas, all significant decisions related to performance evaluation and resource allocation are ultimately made by the CODM in the context of the Bank as a single operating segment.
The CODM evaluates the performance of the Bank based on both financial and non-financial measures. The CODM reviews revenue to evaluate product pricing and net income, including significant expenses, to assess performance and profitability. In conjunction with these measures, the CODM utilizes profitability ratios, EPS, net interest margin, loan and deposit growth, credit quality, capital adequacy, and liquidity as these measures provide additional insight of the Bank's business activities. The CODM also considers non-financial factors such as the Bank’s reputation, regulatory compliance and human resources.
The following table presents financial measures the CODM reviews to allocate recourses to the Bank as of the dates or for the periods indicated:
As of or For the Year Ended December 31,
($ in thousands)202520242023
Revenue
Interest income$197,536 $180,817 $151,177 
Interest expense93,658 92,200 62,673 
Net interest income103,878 88,617 88,504 
Gain on sale of loans4,617 3,752 3,570 
Other income7,219 7,341 7,113 
Total revenue, net of interest expense115,714 99,710 99,187 
Expenses
Provision (reversal) for credit losses4,028 3,401 (132)
Salaries and employee benefits36,551 35,661 34,572 
Premises expense7,029 6,865 5,740 
Depreciation expense2,213 2,252 2,184 
Other expense13,405 15,245 13,561 
Total expense63,226 63,424 55,925 
Income before income taxes52,488 36,286 43,262 
Income taxes15,035 10,476 12,557 
Net income$37,453 $25,810 $30,705 
Earnings per share, diluted$2.58 $1.74 $2.12 
Return on average assets1.15 %0.90 %1.20 %
Return on average shareholders' equity9.93 %7.26 %9.02 %
Net interest margin3.29 %3.17 %3.57 %
Loans held-for-investment growth percentage7.3 %13.2 %13.6 %
Total deposits growth percentage6.9 %11.2 %14.9 %
Tier 1 leverage ratio (consolidated)11.89 %12.45 %13.43 %
ACL on loans to loans held-for-investment1.18 %1.16 %1.19 %

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 13, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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