PCB BANCORP
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
PCB$30.04-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001423869-25-000043
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001423869-25-000050
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 165 previous paragraphs and 163 current paragraphs.
106 unchanged; 54 reworded; 3 added; 4 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 28 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
•Gain on sale of loans was $1.6 million for the three months ended September 30, 2025 compared with $750 thousand for the three months ended September 30, 2024;
Current report
Reversal for credit losses for the three months ended September 30, 2025 was primarily due to decreases in loans held-for-investment. Provision for credit losses for the nine months ended September 30, 2025 was primarily due to increases in loans held-for-investment and quantitatively measured loss reserve requirement from the worsened year-over-year change in real GDP forecast and the increased unemployment rate forecast. See further discussion in “Loans Held-For-Investment and Allowance for Credit Losses.”
Current report
The decrease for the three months ended September 30, 2025 was primarily due to decreases in loans held-for-investment.
Removed paragraphs (4)
Previous report
•Gain on sale of loans was $1.5 million for the three months ended June 30, 2025 compared with $763 thousand for the three months ended June 30, 2024;
Previous report
The provision for credit losses for the three and six months ended June 30, 2025 was primarily due to increases in loans held-for-investment, substandard and nonaccrual loans, net charge-offs, reserves on individually evaluated loans, and quantitatively measured loss reserves, partially offset by a decrease in the qualitative adjustment factors on commercial property loans. See further discussion in “Loans Held-For-Investment and Allowance for Credit Losses.”
Previous report
The increase in overall ACL for the three and six months ended June 30, 2025 was primarily due to increases in loans held-for-investment and quantitatively measured loss reserve, as well as net charge-offs and increased reserves on individually evaluated loans, partially offset by a decrease in qualitative adjustment factors in commercial property loans.
Previous report
The decrease in the qualitative adjustment factors was primarily due to the credit quality improvements in commercial property loans, partially offset by increased problem loans in business property, and commercial and industrial loans.
Reworded paragraphs (54)
Previous wording
The following is management’s discussion and analysis of the major factors that influenced the Company’s results of operations and financial condition as of and for the three and six months ended June 30, 2025. This analysis should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and with the unaudited consolidated financial statements and notes (unaudited) thereto set forth in this Quarterly Report on Form 10-Q.
Current wording
The following is management’s discussion and analysis of the major factors that influenced the Company’s results of operations and financial condition as of and for the three and nine months ended September 30, 2025. This analysis should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and with the unaudited consolidated financial statements and notes (unaudited) thereto set forth in this Quarterly Report on Form 10-Q.
Previous wording
Within the various economic scenarios considered as of June 30, 2025, the quantitative estimate of the ACL would increase by approximately $22.4 million under sole consideration of a more adverse downside scenario. The quoted sensitivity calculation reflects the sensitivity of the modeled ACL estimate to macroeconomic forecast data, but is absent of qualitative overlays and other qualitative adjustments that are part of the quarterly reserving process and does not necessarily reflect the nature and extent of future changes in the ACL for reasons including increases or decreases in qualitative adjustments, changes in the risk profile and size of the portfolio, changes in the severity of the macroeconomic scenario and the range of scenarios under management consideration.
Current wording
Within the various economic scenarios considered as of September 30, 2025, the quantitative estimate of the ACL would increase by approximately $18.0 million under sole consideration of a more adverse downside scenario. The quoted sensitivity calculation reflects the sensitivity of the modeled ACL estimate to macroeconomic forecast data, but is absent of qualitative overlays and other qualitative adjustments that are part of the quarterly reserving process and does not necessarily reflect the nature and extent of future changes in the ACL for reasons including increases or decreases in qualitative adjustments, changes in the risk profile and size of the portfolio, changes in the severity of the macroeconomic scenario and the range of scenarios under management consideration.
Previous wording
•Net income available for common shareholders was $9.0 million for the three months ended June 30, 2025, an increase of $2.8 million, or 46.3%, from $6.1 million for the three months ended June 30, 2024;
Current wording
•Net income available for common shareholders was $11.3 million for the three months ended September 30, 2025, an increase of $3.9 million, or 51.7%, from $7.5 million for the three months ended September 30, 2024;
Previous wording
▪Recorded a provision for credit losses of $1.8 million for the three months ended June 30, 2025 compared with $259 thousand for the three months ended June 30, 2024;
Current wording
▪Recorded a provision (reversal) for credit losses of $(381) thousand for the three months ended September 30, 2025 compared with $50 thousand for the three months ended September 30, 2024;
Previous wording
•Net interest income was $26.0 million for the three months ended June 30, 2025 compared with $21.7 million for the three months ended June 30, 2024. Net interest margin was 3.33% for the three months ended June 30, 2025 compared with 3.16% for the three months ended June 30, 2024;
Current wording
•Net interest income was $27.0 million for the three months ended September 30, 2025 compared with $22.7 million for the three months ended September 30, 2024. Net interest margin was 3.28% for the three months ended September 30, 2025 compared with 3.25% for the three months ended September 30, 2024;
Previous wording
•Total assets were $3.31 billion at June 30, 2025, an increase of $241.6 million, or 7.9%, from $3.06 billion at December 31, 2024;
Current wording
•Total assets were $3.36 billion at September 30, 2025, an increase of $299.5 million, or 9.8%, from $3.06 billion at December 31, 2024;
Previous wording
•Loans held-for-investment were $2.80 billion at June 30, 2025, an increase of $165.9 million, or 6.3%, from $2.63 billion at December 31, 2024; and
Current wording
•Loans held-for-investment were $2.75 billion at September 30, 2025, an increase of $123.1 million, or 4.7%, from $2.63 billion at December 31, 2024; and
Previous wording
•Total deposits were $2.82 billion at June 30, 2025, an increase of $207.1 million, or 7.9%, from $2.62 billion at December 31, 2024.
Current wording
•Total deposits were $2.91 billion at September 30, 2025, an increase of $297.7 million, or 11.4%, from $2.62 billion at December 31, 2024.
Previous wording
(1) Average balance includes both loans held-for-sale and loans held-for-investment, as well as nonaccrual loans. Net amortization of deferred loan fees of $414 thousand and $339 thousand, respectively, and net accretion of discount on loans of $610 thousand and $791 thousand, respectively, are included in the interest income for the three months ended June 30, 2025 and 2024.
Current wording
(1) Average balance includes both loans held-for-sale and loans held-for-investment, as well as nonaccrual loans. Net amortization of deferred loan fees of $433 thousand and $246 thousand, respectively, and net accretion of discount on loans of $563 thousand and $773 thousand, respectively, are included in the interest income for the three months ended September 30, 2025 and 2024.
Previous wording
(1) Average balance includes both loans held-for-sale and loans held-for-investment, as well as nonaccrual loans. Net amortization of deferred loan fees of $680 thousand and $673 thousand, respectively, and net accretion of discount on loans of $1.5 million and $1.4 million, respectively, are included in the interest income for the six months ended June 30, 2025 and 2024.
Current wording
(1) Average balance includes both loans held-for-sale and loans held-for-investment, as well as nonaccrual loans. Net amortization of deferred loan fees of $1.1 million and $919 thousand, respectively, and net accretion of discount on loans of $1.5 million and $2.1 million, respectively, are included in the interest income for the nine months ended September 30, 2025 and 2024.
Previous wording
Net interest income increased primarily due to a 11.7% increase in average balance of interest-earning assets and a 66 basis point decrease in average cost, partially offset by a 16.4% increase in average balance of interest-bearing liabilities and a 15 basis point decrease in average yield.
Current wording
Net interest income increased primarily due to a 17.4% increase in average balance of interest-earning assets and a 75 basis point decrease in average cost, partially offset by a 24.1% increase in average balance of interest-bearing liabilities and a 32 basis point decrease in average yield.
Previous wording
Interest and fees on loans increased primarily due to a 15.2% increase in average balance, partially offset by a 21 basis point decrease in average yield. The decrease in average yield was primarily due to decreases in market rates and net accretion of discount on loans, partially offset by an increase in net amortization of deferred loan fees.
Current wording
Interest and fees on loans increased primarily due to a 13.4% increase in average balance, partially offset by a 24 basis point decrease in average yield. The decrease in average yield was primarily due to decreases in market rates and net accretion of discount on loans, partially offset by an increase in net amortization of deferred loan fees.
Previous wording
Interest on investment securities increased primarily due to a 6.5% increase in average balance and a 16 basis point increase in average yield. The increase in average yield was primarily due to a higher yield on newly purchased investment securities. For the three months ended June 30, 2025 and 2024, the average yield on total investment securities was 3.88% and 3.72%, respectively.
Current wording
Interest on investment securities increased primarily due to a 3.1% increase in average balance and a 12 basis point increase in average yield. The increase in average yield was primarily due to a higher yield on newly purchased investment securities. For the three months ended September 30, 2025 and 2024, the average yield on total investment securities was 3.85% and 3.73%, respectively.
Previous wording
Interest income on other interest-earning assets decreased primarily due to a 4.7% decrease in average balance and a 93 basis point decrease in average yield. The decrease in average yield was primarily due to a decrease in interest rate on cash held at the Federal Reserve Bank. For the six months ended June 30, 2025 and 2024, the average yield on total other interest-earning assets was 4.74% and 5.67%, respectively.
Current wording
Interest income on other interest-earning assets increased primarily due to an 86.5% increase in average balance, partially offset by a 105 basis point decrease in average yield. The decrease in average yield was primarily due to a decrease in interest rate on cash held at the Federal Reserve Bank. For the three months ended September 30, 2025 and 2024, the average yield on total other interest-earning assets was 4.61% and 5.66%, respectively.
Previous wording
Interest expense on deposits decreased primarily due to a 73 basis point decrease in average cost of interest-bearing deposits, partially offset by a 17.4% increase in average balance of interest-bearing deposits. The decrease in average cost was primarily due to a decrease in market rates. For the three months ended June 30, 2025 and 2024, average cost on total interest-bearing deposits was 4.13% and 4.86%, respectively, and average cost on total deposits were 3.32% and 3.78%, respectively.
Current wording
Interest expense on deposits decreased primarily due to a 76 basis point decrease in average cost of interest-bearing deposits, partially offset by a 22.9% increase in average balance of interest-bearing deposits. The decrease in average cost was primarily due to a decrease in market rates. For the three months ended September 30, 2025 and 2024, average cost on total interest-bearing deposits was 4.09% and 4.85%, respectively, and average cost on total deposits were 3.32% and 3.78%, respectively.
Previous wording
Interest expense on other borrowings increased primarily due to a 47.1% increase in average balance, partially offset by a 102 basis point decrease in average cost.
Current wording
Interest expense on other borrowings increased primarily due to a 172.0% increase in average balance, partially offset by a 99 basis point decrease in average cost.
Previous wording
Net interest income increased primarily due to a 13.1% increase in average balance of interest-earning assets and a 74 basis point decrease in average cost, partially offset by an 18.1% increase in average balance of interest-bearing liabilities and a 22 basis point decrease in average yield.
Current wording
Net interest income increased primarily due to a 13.6% increase in average balance of interest-earning assets and a 69 basis point decrease in average cost, partially offset by a 19.0% increase in average balance of interest-bearing liabilities and a 21 basis point decrease in average yield.
Previous wording
Interest and fees on loans increased primarily due to a 13.5% increase in average balance, partially offset by a 14 basis point decrease in average yield. The decrease in average yield was primarily due to decreases in market rates.
Current wording
Interest and fees on loans increased primarily due to a 13.5% increase in average balance, partially offset by a 17 basis point decrease in average yield. The decrease in average yield was primarily due to decreases in market rates.
Previous wording
Interest on investment securities increased primarily due to a 5.4% increase in average balance and a 25 basis point increase in average yield. The increase in average yield was primarily due to a higher yield on newly purchased investment securities. For the six months ended June 30, 2025 and 2024, the average yield on total investment securities was 3.89% and 3.64%, respectively.
Current wording
Interest on investment securities increased primarily due to a 4.6% increase in average balance and a 20 basis point increase in average yield. The increase in average yield was primarily due to a higher yield on newly purchased investment securities. For the nine months ended September 30, 2025 and 2024, the average yield on total investment securities was 3.87% and 3.67%, respectively.
Previous wording
Interest income on other interest-earning assets decreased primarily due to a 5.9% decrease in average balance and a 94 basis point decrease in average yield. The decrease in average yield was primarily due to a decrease in interest rate on cash held at the Federal Reserve Bank. For the three months ended June 30, 2025 and 2024, the average yield on total other interest-earning assets was 4.73% and 5.67%, respectively.
Current wording
Interest income on other interest-earning assets increased primarily due to a 22.0% increase in average balance, partially offset by a 99 basis point decrease in average yield. The decrease in average yield was primarily due to a decrease in interest rate on cash held at the Federal Reserve Bank. For the nine months ended September 30, 2025 and 2024, the average yield on total other interest-earning assets was 4.68% and 5.67%, respectively.
Previous wording
Interest expense on deposits increased primarily due to a 17.3% increase in average balance of interest-bearing deposits, partially offset by a 65 basis point decrease in average cost of interest-bearing deposits. The decrease in average cost was primarily due to a decrease in market rates. For the six months ended June 30, 2025 and 2024, average cost on total interest-bearing deposits was 4.20% and 4.85%, respectively, and average cost on total deposits were 3.38% and 3.75%, respectively.
Current wording
Interest expense on deposits increased primarily due to a 19.2% increase in average balance of interest-bearing deposits, partially offset by a 69 basis point decrease in average cost of interest-bearing deposits. The decrease in average cost was primarily due to a decrease in market rates. For the nine months ended September 30, 2025 and 2024, average cost on total interest-bearing deposits was 4.16% and 4.85%, respectively, and average cost on total deposits were 3.36% and 3.76%, respectively.
Previous wording
Interest expense on other borrowings decreased primarily due to a 16.6% decrease in average balance and a 102 basis point decrease in average cost.
Current wording
Interest expense on other borrowings decreased primarily due to a 102 basis point decrease in average cost, partially offset by an 11.7% increase in average balance.
Previous wording
Loan servicing income decreased primarily due to a decrease in servicing fee income and an increase in servicing asset amortization. Servicing asset amortization was $1.0 million and $893 thousand, respectively, for the six months ended June 30, 2025 and 2024.
Current wording
Loan servicing income decreased primarily due to a decrease in servicing fee income and an increase in servicing asset amortization. Servicing asset amortization was $528 thousand and $479 thousand, respectively, for the three months ended September 30, 2025 and 2024.
Previous wording
Gain on sale of loans increased primarily due to an increase in sale volume, partially offset by a decrease in level of premium on SBA loans in the secondary market. The Company sold SBA loans of $26.9 million with a gain of $1.5 million during the three months ended June 30, 2025. During the three months ended June 30, 2024, the Company sold SBA loans of $13.6 million with a gain of $763 thousand.
Current wording
Gain on sale of loans increased primarily due to an increase in sale volume, partially offset by a decrease in level of premium on SBA loans in the secondary market. The Company sold SBA loans of $29.0 million with a gain of $1.6 million during the three months ended September 30, 2025. During the three months ended September 30, 2024, the Company sold SBA loans of $13.5 million with a gain of $750 thousand and a residential mortgage loan of $676 thousand at par.
Previous wording
Other income primarily included wire transfer fees of $173 thousand and $165 thousand, respectively, and debit card interchange fees of $117 thousand and $18 thousand, respectively, for the three months ended June 30, 2025 and 2024.
Current wording
Other income primarily included wire transfer fees of $180 thousand and $156 thousand, respectively, and debit card interchange fees of $100 thousand and $154 thousand, respectively, for the three months ended September 30, 2025 and 2024.
Previous wording
Loan servicing income decreased primarily due to a decrease in servicing fee income, partially offset by a decrease in servicing asset amortization. Servicing asset amortization was $490 thousand and $519 thousand, respectively, for the three months ended June 30, 2025 and 2024.
Current wording
Loan servicing income decreased primarily due to a decrease in servicing fee income and an increase in servicing asset amortization. Servicing asset amortization was $1.6 million and $1.4 million, respectively, for the nine months ended September 30, 2025 and 2024.
Previous wording
Gain on sale of loans increased primarily due to an increase in sale volume, partially offset by a decrease in level of premium on SBA loans in the secondary market. The Company sold SBA loans of $43.6 million with a gain of $2.4 million during the six months ended June 30, 2025. During the six months ended June 30, 2024, the Company sold SBA loans of $33.0 million with a gain of $1.8 million.
Current wording
Gain on sale of loans increased primarily due to an increase in sale volume, partially offset by a decrease in level of premium on SBA loans in the secondary market. The Company sold SBA loans of $72.6 million with a gain of $4.0 million during the nine months ended September 30, 2025. During the nine months ended September 30, 2024, the Company sold SBA loans of $46.5 million with a gain of $2.6 million and a residential mortgage loan of $676 thousand at par.
Previous wording
Other income primarily included wire transfer fees of $326 thousand and $306 thousand, respectively, and debit card interchange fees of $203 thousand and $99 thousand, respectively, for the six months ended June 30, 2025 and 2024.
Current wording
Other income primarily included wire transfer fees of $506 thousand and $462 thousand, respectively, and debit card interchange fees of $303 thousand and $253 thousand, respectively, for the nine months ended September 30, 2025 and 2024.
Previous wording
Salaries and employee benefits decreased primarily due to decreases in salaries, bonus and vacation accruals, as well as an increase in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense. The number of full-time equivalent employees was 266 at June 30, 2025 compared to 265 at June 30, 2024.
Current wording
Salaries and employee benefits increased primarily due to increases in salaries, and bonus and vacation accruals, partially offset by a decrease in direct loan origination cost, which offsets and defers the recognition of salaries and benefits expense. The number of full-time equivalent employees was 270 at September 30, 2025 compared to 264 at September 30, 2024.
Previous wording
Other expenses included $132 thousand and $124 thousand in loan related expenses, $613 thousand and $543 thousand in office expense, and $179 thousand and $210 thousand in armed guard expense for the three months ended June 30, 2025 and 2024, respectively. During the three months ended June 30, 2025, the Company recognized an impairment of operating lease assets of $82 thousand for a sublease contract.
Current wording
Other expenses included $140 thousand and $97 thousand in loan related expenses, $467 thousand and $625 thousand in office expense, and $191 thousand and $221 thousand in armed guard expense for the three months ended September 30, 2025 and 2024, respectively. During the three months ended September 30, 2025, the Company recognized an impairment of operating lease assets of $10 thousand for a sublease contract.
Previous wording
Salaries and employee benefits decreased primarily due to decreases in salaries and vacation accrual, and an increase in direct loan origination cost, partially offset by an increase in bonus accrual. The number of full-time equivalent employees was 266 at June 30, 2025 compared to 265 at June 30, 2024.
Current wording
Salaries and employee benefits decreased primarily due to decreases in salaries and an increase in direct loan origination cost, partially offset by an increase in bonus accrual. The number of full-time equivalent employees was 270 at September 30, 2025 compared to 264 at September 30, 2024.
Previous wording
Professional fees decreased primarily due to professional fees incurred during the six months ended June 30, 2024 related to a core system conversion that was completed in April 2024.
Current wording
Professional fees decreased primarily due to professional fees incurred during the nine months ended September 30, 2024 related to a core system conversion that was completed in April 2024, partially offset by professional fees incurred during the three months ended June 30, 2025 related to evaluating the accounting for a preferred stock purchase option.
Previous wording
Other expenses included $224 thousand and $218 thousand in loan related expenses, $1.1 million and $1.1 million in office expense, and $362 thousand and $414 thousand in armed guard expense for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, the Company recognized impairments of operating lease assets of $228 thousand for sublease contracts and contingent liabilities for legal settlements of $183 thousand. During the six months ended June 30, 2024, the Company recognized termination charge for the legacy core system of $508 thousand and an expense of $815 thousand for a reimbursement for an SBA loan guarantee previously paid by the SBA on a loan originated in 2014 that subsequently defaulted and was ultimately determined to be ineligible for the SBA guaranty.
Current wording
Other expenses included $364 thousand and $315 thousand in loan related expenses, $1.6 million and $1.7 million in office expense, and $553 thousand and $635 thousand in armed guard expense for the nine months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025, the Company recognized impairments of operating lease assets of $238 thousand for sublease contracts and contingent liabilities for legal settlements of $183 thousand. During the nine months ended September 30, 2024, the Company recognized termination charge for the legacy core system of $508 thousand and an expense of $815 thousand for a reimbursement for an SBA loan guarantee previously paid by the SBA on a loan originated in 2014 that subsequently defaulted and was ultimately determined to be ineligible for the SBA guaranty.
Previous wording
Income tax expense was $3.6 million and $2.5 million, respectively, and the effective tax rate was 28.4% and 28.5%, respectively, for the three months ended June 30, 2025 and 2024. For the six months ended June 30, 2025 and 2024, income tax expense was $6.7 million and $4.3 million, respectively, and the effective tax rate was 28.4% and 28.3%, respectively.
Current wording
Income tax expense was $4.5 million and $2.9 million, respectively, and the effective tax rate was 28.2% and 26.9%, respectively, for the three months ended September 30, 2025 and 2024. For the nine months ended September 30, 2025 and 2024, income tax expense was $11.1 million and $7.2 million, respectively, and the effective tax rate was 28.3% and 27.7%, respectively.
Previous wording
The fair value of total investment securities available-for-sale were $154.6 million at June 30, 2025, an increase of $8.3 million, or 5.7%, from $146.3 million at December 31, 2024. The increase was primarily due to purchases of $14.9 million and an increase in fair value of securities available-for-sale of $4.0 million, partially offset by principal paydowns of $10.5 million and net premium amortization of $65 thousand.
Current wording
The fair value of total investment securities available-for-sale were $150.3 million at September 30, 2025, an increase of $3.9 million, or 2.7%, from $146.3 million at December 31, 2024. The increase was primarily due to purchases of $14.9 million and an increase in fair value of securities available-for-sale of $5.6 million, partially offset by principal paydowns of $16.4 million and net premium amortization of $108 thousand.
Previous wording
As of June 30, 2025 and December 31, 2024, 95.5% and 95.3%, respectively, of the Company's securities available-for-sale at amortized cost basis were issued by U.S. government agency and U.S. GSEs. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell these securities before their anticipated recovery, the Company determined that these securities with unrealized losses did not warrant an ACL as of June 30, 2025 and December 31, 2024.
Current wording
As of September 30, 2025 and December 31, 2024, 95.3% and 95.3%, respectively, of the Company's securities available-for-sale at amortized cost basis were issued by U.S. government agency and U.S. GSEs. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell these securities before their anticipated recovery, the Company determined that these securities with unrealized losses did not warrant an ACL as of September 30, 2025 and December 31, 2024.
Previous wording
Loans held-for-sale were $8.1 million at June 30, 2025, an increase of $1.8 million, or 29.3%, from $6.3 million at December 31, 2024. The increase was primarily due to new funding of $45.6 million, partially offset by sales of $43.6 million and pay-offs and pay-downs of $166 thousand.
Current wording
Loans held-for-sale were $9.6 million at September 30, 2025, an increase of $3.3 million, or 53.1%, from $6.3 million at December 31, 2024. The increase was primarily due to new funding of $76.2 million, partially offset by sales of $72.6 million and pay-offs and pay-downs of $248 thousand.
Previous wording
Loans held-for-investment were $2.80 billion at June 30, 2025, an increase of $165.9 million, or 6.3%, from $2.63 billion at December 31, 2024. The increase was primarily due to new funding of term loans of $346.0 million and net increase of lines of credit of $16.8 million, partially offset by pay-downs and pay-offs of term loans of $196.4 million and charge-offs of $473 thousand.
Current wording
Loans held-for-investment were $2.75 billion at September 30, 2025, an increase of $123.1 million, or 4.7%, from $2.63 billion at December 31, 2024. The increase was primarily due to new funding of term loans of $443.1 million and net increase of lines of credit of $19.3 million, partially offset by pay-downs and pay-offs of term loans of $299.8 million and charge-offs of $927 thousand.
Previous wording
The increase in the quantitatively measured loss reserve requirement was primarily due to the worsened year-over-year change in real GDP forecast and the increased unemployment rate forecast. The Company utilizes these forecasts published by the Federal Open Market Committee (“FOMC”). The 2025 year-end year-over-year change in forecasted real GDP decreased to 1.4% in the June 2025 FOMC meeting from 1.7% March 2025 and 2.1% in December 2024. The forecasted year-end national unemployment rate increased to 4.5% in June 2025 FOMC meeting from 4.4% in March 2025 and 4.3% in December 2024. Overall changes in macroeconomic projections resulted the increases of probability of default and loss given default rates across majority of the loan segments leading to higher overall expected loss measurements.
Current wording
The increase for the nine months ended September 30, 2025 was primarily due to increases in loans held-for-investment and quantitatively measured loss reserve requirement from the worsened year-over-year change in real GDP forecast and the increased unemployment rate forecast. The increase in the quantitatively measured loss reserve requirement was primarily due to the worsened year-over-year change in real GDP forecast and the increased unemployment rate forecast. The Company utilizes these forecasts published by the Federal Open Market Committee (“FOMC”). The 2025 year-end year-over-year change in forecasted real GDP decreased to 1.6% in the September 2025 FOMC meeting from 2.1% in December 2024. The forecasted year-end national unemployment rate increased to 4.5% in September 2025 FOMC meeting from 4.3% in December 2024. Overall changes in macroeconomic projections resulted in the increases of probability of default and loss given default rates across majority of the loan segments leading to higher overall expected loss measurements.
Previous wording
Loans individually evaluated for impairment totaled $56.6 million and $52.0 million, respectively, and related reserve totaled $191 thousand and $59 thousand, respectively, at June 30, 2025 and December 31, 2024.
Current wording
Loans individually evaluated for impairment totaled $51.5 million and $52.0 million, respectively, and related reserve totaled $426 thousand and $59 thousand, respectively, at September 30, 2025 and December 31, 2024.
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Marketing and business promotion expense increased primarily due to an increase in advertisements.