Investment Securities

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

The following table presents the amortized cost and fair value of the securities available-for-sale as of the dates indicated:


($ in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
March 31, 2026
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	148,476	$	583	$	(7,687)	$	141,372
Residential collateralized mortgage obligations	18,815		44		(858)		18,001
SBA loan pool securities	4,023		1		(169)		3,855
Municipal bonds	2,466		1		(15)		2,452
Corporate bonds	5,000		—		(203)		4,797
Total securities available-for-sale	$	178,780	$	629	$	(8,932)	$	170,477
December 31, 2025
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	135,728	$	1,063	$	(6,969)	$	129,822
Residential collateralized mortgage obligations	19,499		65		(802)		18,762
SBA loan pool securities	4,363		1		(171)		4,193
Municipal bonds	2,463		22		(1)		2,484
Corporate bonds	5,000		—		(252)		4,748
Total securities available-for-sale	$	167,053	$	1,151	$	(8,195)	$	160,009

As of March 31, 2026 and December 31, 2025, pledged securities were $139.7 million and $75.7 million, respectively. These securities were pledged as collateral securing deposits from the California State Treasurer.

The Company elected to exclude accrued interest receivable from the amortized cost of its securities available-for-sale. Accrued interest receivable on securities available-for-sale totaled $606 thousand and $599 thousand at March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026 and December 31, 2025, there were no holdings of securities available-for-sale of any one issuer, other than U.S. government agencies and U.S. government sponsored enterprise securities, in an amount greater than 10% of shareholders’ equity.

The following table presents the amortized cost and fair value of the securities available-for-sale by contractual maturity as of the date indicated. Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	March 31, 2026
($ in thousands)	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years	83		83
Five to ten years	6,505		6,293
Greater than ten years	878		873
Residential mortgage-backed securities, residential collateralized mortgage obligations and SBA loan pool securities	171,314		163,228
Total	$	178,780	$	170,477

The Company had no proceeds from sales and calls of securities available-for-sale for the three months ended March 31, 2026 or 2025.

The following table presents the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position for which an allowance for credit losses (“ACL”) was not recorded as of the dates indicated:


	Length of Time that Individual Securities Have Been In a Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months or Longer					Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities
March 31, 2026
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	40,471	$	(466)	20	$	59,571	$	(7,221)	104	$	100,042	$	(7,687)	124
Residential collateralized mortgage obligations	631		(1)		1	14,071		(857)		36	14,702		(858)		37
SBA loan pool securities	—		—		—	3,815		(169)		15	3,815		(169)		15
Municipal bonds	1,621		(15)		5	—		—		—	1,621		(15)		5
Corporate bonds	—		—		—	4,797		(203)		1	4,797		(203)		1
Total securities available-for-sale	$	42,723	$	(482)	26	$	82,254	$	(8,450)	156	$	124,977	$	(8,932)	182
December 31, 2025
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	6,795	$	(15)	3	$	61,977	$	(6,954)	111	$	68,772	$	(6,969)	114
Residential collateralized mortgage obligations	3,114		(7)		3	12,181		(795)		34	15,295		(802)		37
SBA loan pool securities	—		—		—	4,152		(171)		15	4,152		(171)		15
Municipal bonds	83		(1)		1	—		—		—	83		(1)		1
Corporate bonds	—		—		—	4,748		(252)		1	4,748		(252)		1
Total securities available-for-sale	$	9,992	$	(23)	7	$	83,058	$	(8,172)	161	$	93,050	$	(8,195)	168

As of March 31, 2026 and December 31, 2025, 95.8% and 95.5%, 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 March 31, 2026 and December 31, 2025.

Municipal and corporate bonds had an investment grade rating upon purchase. The issuers of these securities have not established any cause for default on these securities and various rating agencies have reaffirmed their long-term investment grade status as of March 31, 2026 and December 31, 2025. These securities have fluctuated in value since their purchase dates as market interest rates fluctuated. Additionally, the Company continues to receive contractual principal and interest payments in a timely manner. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell before the recovery of its amortized cost basis. The Company therefore determined that the investment securities with unrealized losses did not warrant an ACL as of March 31, 2026 and December 31, 2025.

As of March 31, 2026 and December 31, 2025, the Company recorded no ACL on securities available-for-sale.

PCB BANCORP 10-Q