What drove PCB's positive earnings surprise in Q4?

PCB Bancorp's positive earnings surprise in Q4 2024 can be attributed to several key factors:

1. **Strong Loan Growth and Strategic Expansion**: PCB Bancorp has experienced significant growth in loans held-for-investment, reflecting strategic expansion and strong demand for its lending services. This growth in loans is a positive indicator of increased business activity and the company's ability to generate income from its core operations.
2. **Improved Efficiency Ratio**: The company has implemented cost-saving measures, which have led to an improved efficiency ratio. This suggests that PCB Bancorp is becoming more efficient in managing its operations, leading to better profitability.
3. **Increase in Net Interest Income**: Despite a modest increase, the rise in net interest income indicates that the company is generating more income from its interest-bearing assets. This is a positive development as net interest income is a key driver of bank profitability.
4. **Strategic Focus on Credit Risk Management**: Despite the challenges posed by economic uncertainties, PCB Bancorp has focused on managing credit risk effectively. This strategic approach has likely helped the company maintain a stable asset quality, which is crucial for preserving the value of its loan portfolio and overall financial stability.

In summary, PCB Bancorp's positive earnings surprise in Q4 2024 can be attributed to strong loan growth, improved operational efficiency, increased net interest income, and effective credit risk management. These factors combined have contributed to the company's robust financial performance and earnings outperformance compared to market expectations.