PCB Bancorp

1 serious warning sign in PCB Bancorp’s filings.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 16 Mar 2026, plus the 10-Q filed 6 Aug 2026 and 5 later 8-Ks.

• Its past accounts can't be relied on

  Serious

  It told the SEC its earlier accounts should no longer be relied on, usually because they contained errors.

  8-K Item 4.02 filed 24 Jul 2025: the company said its earlier financial statements should no longer be relied on.

  From an 8-K filed 24 July 2025: Previously issued accounts should no longer be relied on. Open the filing

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

• We may not qualify to repurchase our Series C Preferred Stock on favorable terms.

  Could happen

  In January of 2025, we entered into an ECIP Securities Purchase Option Agreement with Treasury that grants us or our qualifying designee may repurchase the Series C Preferred Stock, potentially at a substantial discount if we meet certain conditions (the “Repurchase Option”). To be eligible to exercise the Repurchase Option, we must, among other things, meet certain thresholds for “deep impact lending” or “qualified lending” (as defined in the ECIP’s guidelines), comply with the ECIP agreements and rules, continue to qualify as an MDI, and be “well-capitalized” under federal Prompt Corrective Action guidelines. The earliest possible date by which we could exercise the repurchase options (assuming we meet all required conditions) is June 30, 2026. There can be no assurance that we will ever satisfy the lending and other requirements necessary to exercise the Repurchase Option.

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• We may not qualify to repurchase our Series C Preferred Stock on favorable terms.

  Could happen

  On May 24, 2022, we sold shares of our Series C Preferred Stock to the U.S. Treasury for the purchase price of $69.1 million under the Emergency Capital Investment Program, or “ECIP.” Under the ECIP program, the Treasury invested in depository institutions that are Community Development Financial Institutions or minority depository institutions (“MDIs”) to encourage lending to small businesses, minority-owned businesses and consumers in low-income and underserved communities.

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