How did PCB's Q4 earnings surprise analysts?

PCB Bancorp's Q4 earnings did not meet analysts' expectations. The bank reported a net income of $4.7 million for the quarter, which was a significant decline from the $10.3 million reported in the same period the previous year. This fall was largely due to increased funding costs and a more challenging economic environment, which squeezed profit margins. The reported EPS was $0.33, below the estimated $0.45, and revenue fell short of forecasts, with net interest income totaling $21.0 million, compared to the estimated $25.30 million.

Furthermore, the bank's allowance for Credit Losses (ACL) to loans held-for-investment ratio remained stable at 1.18%. Challenges and Strategic Measures Despite the growth in assets and deposits, PCB Bancorp faced challenges including a higher interest rate environment leading to increased funding costs and comp...