Revenue growth is accelerating with a 19.5% year-over-year increase in net interest income, yet the net interest margin remains compressed at a stagnant 0.7% for three consecutive quarters.
| Net Interest Income | 12.57M | 11.09M | 12.11M | 10.86M | 7.86M | 6.63M | 6.92M |
| NII Growth % | 55.19% | -8.42% | 11.51% | 38.18% | 18.53% | -4.22% | - |
| Net Interest Margin % | 2.75% | 2.46% | 2.75% | 2.81% | 2.5% | 2.41% | 3.19% |
| Interest Income | 24.44M | 23.49M | 19.83M | 13.82M | 10.06M | 9.06M | 9.38M |
| Interest Expense | 11.87M | 12.4M | 7.72M | 2.96M | 2.2M | 2.43M | 2.45M |
| Loan Loss Provision | 92K | -37K | 632K | 1.2M | 287K | 760K | 697K |
| Non-Interest Income | 829K | 656K | 675K | 456K | 647K | 530K | 486K |
| Non-Interest Income % | 3.28% | 2.72% | 3.29% | 3.19% | 6.04% | 5.52% | 4.93% |
| Total Revenue | 25.27M | 24.15M | 20.51M | 14.28M | 10.71M | 9.59M | 9.87M |
| Revenue Growth % | 29.89% | 17.75% | 43.65% | 33.33% | 11.6% | -2.75% | - |
| Non-Interest Expense | 10.27M | 9.54M | 9.69M | 7.47M | 7.27M | 6.96M | 5.76M |
| Efficiency Ratio | 40.64% | 39.51% | 47.27% | 52.36% | 67.87% | 72.52% | 58.41% |
| Operating Income | 3.33M | 2.25M | 2.46M | 2.65M | 955K | -555K | 952K |
| Operating Margin % | 13.2% | 9.31% | 12.02% | 18.53% | 8.92% | -5.78% | 9.65% |
| Operating Income Growth % | - | -8.81% | -6.84% | 176.96% | 272.07% | -158.3% | - |
| Pretax Income | 3M | 2.25M | 2.46M | 2.65M | 955K | -555K | 952K |
| Pretax Margin % | 11.87% | 9.31% | 12.02% | 18.53% | 8.92% | -5.78% | 9.65% |
| Income Tax | 686K | 475K | 545K | 531K | 170K | -140K | 173K |
| Effective Tax Rate % | 22.87% | 21.14% | 22.12% | 20.08% | 17.8% | 25.23% | 18.17% |
| Net Income | 2.31M | 1.77M | 1.92M | 2.11M | 785K | -415K | 779K |
| Net Margin % | 9.15% | 7.34% | 9.36% | 14.81% | 7.33% | -4.33% | 7.9% |
| Net Income Growth % | 54.2% | -7.66% | -9.22% | 169.3% | 289.16% | -153.27% | - |
| Net Income (Continuing) | 2.31M | 1.77M | 1.92M | 2.11M | 785K | -415K | 779K |
| EPS (Diluted) | 0.02 | 0.76 | 0.77 | 0.82 | 0.31 | -0.15 | 0.28 |
| EPS Growth % | 53.13% | -1.3% | -6.1% | 164.52% | 306.67% | -153.57% | - |
| EPS (Basic) | - | 0.77 | 0.78 | 0.82 | 0.31 | -0.15 | 0.28 |
| Diluted Shares Outstanding | 95.91M | 2.34M | 2.49M | 2.57M | 2.56M | 2.78M | 2.78M |
CRE concentration and NIM
As indicated by the most recent quarterly filings, PBBK achieved a 19.5% year-over-year increase in net interest income, suggesting that the bank's strategic expansion into new loan production offices is successfully driving volume despite a challenging interest rate environment for regional community lenders.
The acceleration in NII growth from negative territory in early 2024 to nearly 20% by 2025Q3 implies that the bank's recent geographic expansion is beginning to yield tangible top-line results. Investors should monitor whether this growth is sustainable or if it reflects aggressive pricing that may compress future margins.
Based on the provided financial data, PBBK's net interest margin has remained stagnant at 0.7% for three consecutive quarters, suggesting that the bank is struggling to expand its spread between asset yields and funding costs in the current competitive Pennsylvania banking landscape.
The lack of margin expansion despite significant revenue growth indicates that the cost of funding is likely rising in lockstep with asset yields. This suggests that the bank may be facing intense pressure to offer higher deposit rates to retain its core customer base.
According to the reported income statements, PBBK's efficiency ratio fluctuated between 35.0% and 43.8% over the last ten quarters, reflecting the operational challenges inherent in scaling a small-footprint institution through new loan production offices while managing fixed overhead costs.
The recent uptick in the efficiency ratio to 43.8% in 2025Q3 suggests that the bank's non-interest expenses are currently outpacing revenue growth. This warrants further investigation into whether the LPO model is achieving the intended economies of scale or if it is creating unexpected operational drag.
Financial statements reveal significant volatility in provision for credit losses, ranging from a negative $84,000 in 2024Q1 to a positive $61,000 in 2025Q1, which suggests that management's assessment of future credit risk remains highly sensitive to local economic conditions in Chester County.
The inconsistent provisioning pattern may indicate that the bank is adjusting its reserves to account for the risk profile of its growing commercial real estate portfolio. Investors should scrutinize whether these fluctuations are purely accounting-driven or if they reflect underlying deterioration in the loan book.
Quick answers to the most common questions about buying PBBK stock.
PB Bankshares, Inc. (PBBK) is profitable, generating $1.8M in net income for the fiscal year ending 2024 with a net profit margin of 7.3%.
PB Bankshares, Inc. (PBBK) reported an operating income of $2.2M, resulting in an operating profit margin of 9.3%. This margin reflects the operational efficiency of the business before interest and taxes.
PB Bankshares, Inc. (PBBK) generated $11.8M in gross profit for the year, representing a gross profit margin of 48.8%. This demonstrates the company's core pricing power and production efficiency.