Credit risk in lending portfolio
The bank lends to businesses and individuals, so borrower defaults and collateral shortfalls can hurt results.
- Scope
- CRE, C&I, consumer, and SBA lending
- Materiality
- high
PCB Bancorp
PCB Bancorp is a California-based bank holding company whose main operating subsidiary is PCB Bank, a state-chartered commercial bank. Through its branch network and lending teams, the bank provides deposits, commercial loans, consumer loans, and treasury management services to small and middle-market customers in the United States.
1 291,9 %
+4,5 %
| % | |
|---|---|
| Lending | 55% Commercial real estate, commercial and industrial, consumer, and SBA-related loans. |
| Deposit Banking | 20% Core deposit accounts including demand, savings, money market, and time deposits. |
| Treasury and Cash Management | 15% Business cash management, ACH, wire, remote deposit, positive pay, and sweep services. |
| Transaction and Digital Banking | 10% Online banking, mobile banking, bill pay, debit cards, ATMs, and account access tools. |
PCB Bancorp serves small and middle-market businesses, along with individual customers, primarily through PCB Bank’s...
- Small and middle-market businessesprimary
Primary relationship customers that use loans, deposits, and treasury services for operating needs.
- Commercial real estate borrowersprimary
Businesses and investors seeking CRE financing secured by property cash flows and collateral.
- SBA loan borrowerssecondary
Small businesses using SBA-originated loans for expansion, acquisition, or working capital.
- Retail deposit customerssecondary
Individuals and small businesses placing funds in checking, savings, money market, and time deposits.
- Treasury management clientssecondary
Commercial customers buying payment, liquidity, and receivables tools to manage cash flow.
PCB Bancorp is headquartered in Los Angeles, California, and operates a branch network concentrated in Southern...
- •Headquartered in Los Angeles, California
- •Nine branches in Los Angeles and Orange Counties
- •Three branches on the East Coast in New York and New Jersey
- •Two branches in Texas and one branch in Georgia
- •Loan originators in Washington focused primarily on SBA lending
- •Geographic diversification supports deposit gathering and loan growth
PCB Bancorp’s strategy is centered on relationship banking: originating loans within its primary markets, cross-selling...
01
Grow relationship-based lending in core marketsmedium-term
Loan growth depends on local underwriting and repeat customer relationships.
02
Increase core deposits and funding stabilityshort-term
Core deposits are the primary low-cost funding source for the loan book.
03
Cross-sell treasury and cash management servicesmedium-term
Non-lending services deepen customer relationships and improve retention.
04
Preserve liquidity and funding flexibilityshort-term
Bank funding can be cyclical, so access to wholesale and contingent liquidity matters.
PCB Bancorp is exposed to credit risk from commercial real estate, C&I, and consumer lending, where borrower...
Commercial real estate concentration risk
CRE values and cash flows can be cyclical and sensitive to local market conditions.
- Scope
- Property-secured commercial loans
- Materiality
- high
Deposit and funding competition
Customers may move funds to larger banks or higher-yield alternatives during stress.
- Scope
- Core deposits, time deposits, wholesale funding
- Materiality
- high
Internal control weakness
A material weakness can impair financial reporting and require remediation effort.
- Scope
- Internal control over financial reporting
- Materiality
- high
Regulatory and compliance risk
Banks face consumer protection, capital, liquidity, and safety-and-soundness oversight.
- Scope
- CFPB, prudential banking regulators, FDIC
- Materiality
- high
Allowance for credit losses
Affects provision expense, net income, and balance sheet reserves
Accrued interest receivable
Affects interest income and loan-related asset balances
Fair value measurement
Affects other comprehensive income and reported equity
Internal control over financial reporting
Affects reliability of reported financial statements
: 29.4.2026