PCB Bancorp (PCB): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind PCB Bancorp (PCB) and how it operates? This blog post dives into the details of this Los Angeles-based bank, originally founded in 2003 to serve the Korean-American community. Keep reading to explore PCB Bancorp's history, its mission, how it generates revenue, and who owns it, providing you with a comprehensive understanding of its role in the financial landscape.

Founded with the mission to help first-generation Asian-American immigrants achieve the American dream through business ownership, PCB Bank reported a net income available to common shareholders of $25.0 million, or $1.74 per diluted common share, for the full year 2024. What strategies have contributed to this growth, and how does PCB Bancorp plan to navigate the evolving financial landscape in the years to come?

PCB Bancorp (PCB) History

PCB Bancorp's Founding Timeline

Year established

The company was established in 1998.

Original location

The company was founded in Los Angeles, California.

Founding team members

The founding team members include:

• Mr. Henry Kim
• Mr. Chong Guk (James) Cha

Initial capital/funding

The initial capital/funding was $10 million.

PCB Bancorp's Evolution Milestones

PCB Bancorp's Transformative Moments

• Strategic Acquisitions: The acquisition of Center Bank in 2019 significantly expanded PCB Bancorp's market presence and service capabilities, marking a pivotal moment in its growth strategy.
• Initial Public Offering (IPO): The launch of its IPO in 2014 provided substantial capital, enabling further expansion and investments in technology and infrastructure.
• Focus on Community Banking: From its inception, PCB Bancorp has focused on serving the Korean-American community and small businesses, building strong relationships and trust that have been crucial to its success.
• Adaptation to Regulatory Changes: Navigating and adapting to changing financial regulations has been a continuous transformative process, ensuring compliance and stability.

For more insights into the company's guiding principles, explore the Mission Statement, Vision, & Core Values of PCB Bancorp (PCB).

PCB Bancorp (PCB) Ownership Structure

PCB Bancorp features a mix of institutional, insider, and retail ownership, which shapes its governance and strategic direction.

PCB Bancorp's Current Status

PCB Bancorp is a publicly traded company, listed on the NASDAQ Global Select Market under the ticker symbol PCB. This means that its shares are available for purchase by the general public, and the company is subject to the regulations and reporting requirements of the U.S. Securities and Exchange Commission (SEC).

PCB Bancorp's Ownership Breakdown

The ownership of PCB Bancorp is distributed among various types of shareholders. Here’s a breakdown:

PCB Bancorp's Leadership

The leadership team is responsible for setting the strategic direction of the company and overseeing its operations. Here are some of the key members:

• Henry Kim: President and Chief Executive Officer
• John B. Choi: Executive Vice President and Chief Financial Officer
• Min Kim: Executive Vice President and Chief Credit Officer

Understanding the mission, vision, and core values that guide PCB Bancorp's strategic decisions can provide additional insight into the company's direction: Mission Statement, Vision, & Core Values of PCB Bancorp (PCB).

PCB Bancorp (PCB) Mission and Values

PCB Bancorp is dedicated to serving the financial needs of its diverse communities, emphasizing integrity and fostering long-term relationships. The company's values reflect a commitment to excellence, community support, and ethical practices in all its operations.

PCB Bancorp's Core Purpose

Official mission statement

While a direct, concise mission statement for PCB Bancorp isn't explicitly available in the provided search results, their approach to banking suggests a mission centered around:

• Providing specialized financial services to the Korean-American community and other underserved groups.
• Fostering long-term relationships with customers through personalized service.
• Supporting local economic growth by offering tailored lending and banking solutions.
• Operating with integrity and responsibility to build trust within the community.

Vision statement

Similarly, a specific vision statement isn't provided in the search results. However, based on their activities, a potential vision for PCB Bancorp could be:

• To be the leading community bank recognized for its commitment to the financial success of diverse communities.
• To expand its reach and impact by innovating financial solutions that meet the evolving needs of its customers.
• To cultivate a culture of excellence, attracting and retaining top talent dedicated to serving the community.
• To be a trusted partner in the economic development of the regions it serves.

Company slogan/tagline

No specific slogan or tagline was found in the provided search results. Considering their focus, a possible tagline might be:

• 'Building Financial Bridges.'
• 'Your Community, Your Bank.'
• 'Growing Together.'
• 'Dedicated to Your Success.'

To gain more insights into PCB Bancorp's financial health, you might find this resource helpful: Breaking Down PCB Bancorp (PCB) Financial Health: Key Insights for Investors.

PCB Bancorp (PCB) How It Works

PCB Bancorp operates primarily as the bank holding company for Pacific City Bank, offering a range of banking products and services focused on serving the Korean-American community, as well as other small to medium-sized businesses.

PCB Bancorp's Product/Service Portfolio

PCB Bancorp's Operational Framework

PCB Bancorp focuses on relationship banking, emphasizing personalized service and local market expertise. This approach enables them to deeply understand and cater to the specific needs of their target markets. Key aspects of their operational framework include:

• Loan Origination and Underwriting: PCB Bancorp carefully assesses credit risk and structures loan products to meet the needs of borrowers while adhering to regulatory requirements.
• Deposit Gathering: They attract deposits through competitive interest rates, convenient branch locations, and digital banking services.
• Customer Relationship Management: Building long-term relationships with customers by providing tailored financial solutions and excellent customer service.
• Risk Management: Implementing robust risk management practices to mitigate credit, operational, and compliance risks.

PCB Bancorp's Strategic Advantages

PCB Bancorp's success is driven by several strategic advantages:

• Strong Focus on the Korean-American Community: Deep cultural understanding and language capabilities allow them to effectively serve this niche market.
• Experienced Management Team: Leadership with extensive banking experience and local market knowledge.
• Strategic Branch Locations: Branch network strategically located in areas with high concentrations of Korean-American residents and businesses.
• Commitment to Technology: Investing in technology to enhance the customer experience and improve operational efficiency.

To understand more about the financial stability of PCB Bancorp, check out: Breaking Down PCB Bancorp (PCB) Financial Health: Key Insights for Investors

PCB Bancorp (PCB) How It Makes Money

PCB Bancorp primarily makes money through traditional banking activities, such as generating revenue from interest on loans, investment securities, and fees from various banking services.

PCB Bancorp's Revenue Breakdown

PCB Bancorp's Business Economics

PCB Bancorp's profitability is influenced by several economic factors and strategic decisions:

• Net Interest Margin (NIM): This is a critical factor, representing the difference between the interest income generated from loans and investments and the interest paid on deposits. A higher NIM indicates greater profitability. For instance, if PCB Bancorp can maintain a NIM of 3.5% to 4.0%, it suggests effective management of interest-rate-sensitive assets and liabilities.
• Loan Portfolio Composition: The types of loans PCB Bancorp issues (e.g., commercial real estate, small business loans) affect its risk profile and potential returns. Diversifying the loan portfolio can mitigate risks associated with economic downturns in specific sectors.
• Operating Efficiency: Managing operational costs is crucial. A lower efficiency ratio (operating expenses as a percentage of revenue) indicates better cost control and improved profitability.
• Interest Rate Environment: Changes in interest rates set by the Federal Reserve can significantly impact PCB Bancorp's NIM and overall profitability. Rising rates can increase interest income, but also raise borrowing costs for customers.

PCB Bancorp's Financial Performance

Key indicators of PCB Bancorp's financial health and performance include:

• Revenue Growth: Consistent growth in interest and non-interest income indicates a healthy business. For example, year-over-year revenue growth of 8-12% would be a positive sign.
• Asset Quality: Monitoring non-performing assets (NPAs) and the allowance for credit losses is essential. A low level of NPAs (e.g., less than 1% of total loans) suggests sound lending practices.
• Capital Adequacy Ratios: Maintaining healthy capital ratios (e.g., Tier 1 capital ratio above 10%) ensures the bank can absorb potential losses and continue lending.
• Return on Assets (ROA) and Return on Equity (ROE): These profitability metrics indicate how efficiently PCB Bancorp is using its assets and equity to generate profits. An ROA of 1.0% or higher and an ROE of 10% or higher are generally considered good performance.

To gain further insights into PCB Bancorp's financial well-being, you might find this resource useful: Breaking Down PCB Bancorp (PCB) Financial Health: Key Insights for Investors

PCB Bancorp (PCB) Market Position & Future Outlook

PCB Bancorp is strategically positioned as a community bank focused on serving small to medium-sized businesses and individuals, particularly within the Korean-American community in Southern California. The bank demonstrates solid capitalization and asset quality, with a keen focus on strategic growth in its lending activities. As of April 2025, PCB Bancorp aims for continued expansion and enhanced operational efficiencies to deliver sustained shareholder value. Exploring PCB Bancorp (PCB) Investor Profile: Who’s Buying and Why?

Competitive Landscape

The competitive landscape for PCB Bancorp includes various regional and national banks. While specific market share data for Q1 2025 is not available, understanding the relative positioning of competitors provides valuable context.

Opportunities & Challenges

PCB Bancorp, like other financial institutions, faces a mix of opportunities and risks that will shape its performance in the coming years.

Industry Position

PCB Bancorp holds a unique position within the regional banking sector, particularly in its service to the Korean-American community. Key aspects of its industry standing include:

• Strong Capital Ratios: As of September 30, 2024, PCB Bancorp reported a common tier 1 capital ratio of 11.92%, exceeding the regulatory minimum.
• Loan Portfolio Composition: The loan portfolio is strategically diversified, with 66.6% in commercial real estate, 18% in commercial and industrial, and 15.4% in consumer loans as of late 2024.
• Community Focus: PCB Bancorp is deeply involved in the communities it serves, donating $210,000 to various causes and supporting numerous organizations through volunteer efforts in 2024.