PB Bankshares' Net Income Soars 62% Amidst Asset Growth

TL;DR

**PB Bankshares is showing strong growth, but keep an eye on those rising credit loss provisions.**

AI Summary

PB Bankshares, Inc. reported a significant increase in net income for the three and six months ended June 30, 2025. Net income for the three months rose by 72.97% to $640,000 from $370,000 in the prior year, while the six-month net income increased by 61.92% to $1.113 million from $687,000. Total assets grew to $464.127 million as of June 30, 2025, up from $451.317 million at December 31, 2024. This growth was primarily driven by an increase in loans receivable, net, which rose to $353.324 million from $344.813 million, and a substantial increase in cash and cash equivalents to $55.906 million from $37.777 million. Deposits also increased to $363.421 million from $354.190 million. The company experienced a 17.48% increase in net interest income for the three months, reaching $3.273 million, and a 17.07% increase for the six months, totaling $6.343 million. Noninterest expenses also saw an increase, with salaries and employee benefits rising to $1.553 million for the quarter, up from $1.326 million. The provision for credit losses increased to $40,000 for the quarter, compared to $17,000 in the prior year.

Why It Matters

PB Bankshares' strong earnings growth and asset expansion signal robust operational performance, which is positive for investors looking for stable regional bank investments. The increase in loans receivable and deposits indicates healthy customer engagement and market penetration, suggesting competitive strength against other banking institutions in Chester, Cumberland, Dauphin, Lancaster, and Lebanon Counties in Pennsylvania. For employees, the rise in salaries and employee benefits suggests continued investment in human capital. The overall financial health could lead to enhanced services for customers and contribute to local economic stability, though rising credit loss provisions warrant monitoring.

Risk Assessment

Risk Level: medium — The risk level is medium due to the increase in the provision for credit losses, which rose from $17,000 for the three months ended June 30, 2024, to $40,000 for the same period in 2025, and from a credit benefit of ($67,000) to a provision of $101,000 for the six months. Additionally, while overall unrealized losses on debt securities available-for-sale decreased from ($811,000) at December 31, 2024, to ($461,000) at June 30, 2025, a significant portion of these losses, $397,000, have been in a continuous unrealized loss position for 12 months or more, indicating potential interest rate sensitivity.

Analyst Insight

Investors should consider PB Bankshares' strong net income growth and increasing loan portfolio as positive indicators. However, they should closely monitor future filings for trends in the provision for credit losses and the impact of interest rate movements on the debt securities portfolio, as these could affect future profitability and asset quality.

Financial Highlights

revenue

$3,273,000

total Assets

$464,127,000

total Debt

$43,882,000

net Income

$640,000

cash Position

$55,906,000

revenue Growth

+17.48%

Revenue Breakdown

Key Numbers

• $640,000 — Net Income (Q2 2025) (Increased 72.97% from $370,000 in Q2 2024)
• $1.113 million — Net Income (YTD Q2 2025) (Increased 61.92% from $687,000 in YTD Q2 2024)
• $464.127 million — Total Assets (June 30, 2025) (Increased from $451.317 million at December 31, 2024)
• $353.324 million — Loans Receivable, Net (June 30, 2025) (Increased from $344.813 million at December 31, 2024)
• $55.906 million — Cash and Cash Equivalents (June 30, 2025) (Increased from $37.777 million at December 31, 2024)
• $363.421 million — Deposits (June 30, 2025) (Increased from $354.190 million at December 31, 2024)
• $3.273 million — Net Interest Income (Q2 2025) (Increased 17.48% from $2.786 million in Q2 2024)
• $6.343 million — Net Interest Income (YTD Q2 2025) (Increased 17.07% from $5.418 million in YTD Q2 2024)
• $40,000 — Provision for Credit Losses (Q2 2025) (Increased from $17,000 in Q2 2024)
• $101,000 — Provision for Credit Losses (YTD Q2 2025) (Increased from a benefit of ($67,000) in YTD Q2 2024)

Key Players & Entities

• PB Bankshares, Inc. (company) — holding company of Presence Bank
• Presence Bank (company) — state-chartered savings bank subsidiary
• Federal Reserve System (regulator) — regulates PB Bankshares, Inc.
• Federal Deposit Insurance Corporation (regulator) — regulates Presence Bank
• Pennsylvania Department of Banking and Securities (regulator) — regulates Presence Bank
• CSB Investments, Inc. (company) — wholly-owned subsidiary of Presence Bank
• Nasdaq Capital Market (market) — where PB Bankshares' shares trade
• FASB (regulator) — Financial Accounting Standards Board
• ASU 2023-09 (document) — Income Taxes (Topic 740): Improvements to Income Tax Disclosures
• ASU 2024-03 (document) — Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [medium — financial]: The provision for credit losses increased to $40,000 for Q2 2025 from $17,000 in Q2 2024, and from a benefit of ($67,000) in YTD Q2 2024 to $101,000 in YTD Q2 2025. This suggests a potential increase in perceived credit risk within the loan portfolio, which grew to $353.324 million.
• Interest Rate Sensitivity [medium — market]: Net interest income increased by 17.48% to $3.273 million for Q2 2025. While positive, the bank's profitability is sensitive to changes in interest rates, which can affect both interest income from loans and securities, and interest expense on deposits and borrowings.
• Increasing Operating Expenses [medium — operational]: Noninterest expenses are rising, with salaries and employee benefits increasing to $1.553 million for the quarter, up from $1.326 million in Q2 2024. This trend could pressure margins if revenue growth does not keep pace.
• Regulatory Compliance and Capital Requirements [high — regulatory]: As a bank, PB Bankshares is subject to extensive regulation. Changes in capital requirements, lending standards, or other regulatory mandates could impact operations and profitability.
• Economic Downturn Impact [high — market]: A general economic slowdown could lead to increased loan defaults, reduced demand for banking services, and lower asset valuations, negatively impacting the bank's financial condition.

Industry Context

The banking industry is characterized by intense competition, stringent regulatory oversight, and sensitivity to macroeconomic conditions. Key trends include digital transformation, evolving customer expectations for seamless service, and the ongoing management of interest rate risk. Community banks like PB Bankshares often focus on personalized service and local market expertise to differentiate themselves.

Regulatory Implications

PB Bankshares operates under the purview of federal and state banking regulations, including capital adequacy requirements (e.g., Basel III), liquidity rules, and consumer protection laws. Compliance with these evolving regulations is critical and can necessitate significant investments in technology and personnel.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze the drivers of net interest income growth.
3. Evaluate the efficiency ratio and expense management.
4. Assess the impact of interest rate changes on net interest margin.

Key Dates

• 2025-06-30: End of Q2 2025 — Reporting period for significant net income growth and asset expansion.
• 2025-06-30: Balance Sheet Date — Total assets reached $464.127 million, with loans at $353.324 million and cash at $55.906 million.
• 2024-06-30: End of Q2 2024 — Prior year comparison period showing $370,000 net income and $2.786 million net interest income.
• 2024-12-31: Year-End Balance Sheet Date — Previous reporting period with total assets of $451.317 million.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (A core measure of a bank's profitability from its lending and borrowing activities. PB Bankshares saw a strong increase of 17.48% in Q2 2025.)

Provision for Credit Losses

An expense set aside by a financial institution to cover potential losses from loans that may default. (An increase in this provision, as seen in Q2 2025 ($40,000 vs $17,000), can indicate management's concern about loan portfolio quality.)

Cash and Cash Equivalents

Includes physical currency, coin, and cash in bank accounts, as well as short-term, highly liquid investments that are readily convertible to known amounts of cash. (A significant increase to $55.906 million from $37.777 million indicates improved liquidity for PB Bankshares.)

Loans Receivable, Net

The total amount of money lent by the bank, net of any allowance for potential loan losses. (This is typically a bank's largest asset. PB Bankshares' net loans grew to $353.324 million.)

Deposits

Funds held by a bank on behalf of its customers, representing a primary source of funding for lending activities. (An increase in deposits to $363.421 million shows continued customer confidence and funding growth for PB Bankshares.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, PB Bankshares has demonstrated robust growth. Net income for the quarter surged by 72.97% to $640,000, and net interest income saw a significant 17.48% increase to $3.273 million. Total assets have grown to $464.127 million, driven by increases in loans and a substantial rise in cash and cash equivalents. However, noninterest expenses, particularly salaries, have also increased, and the provision for credit losses has risen, indicating potential areas for management focus.

Key Financial Figures

• $0.01 — h registered Common Shares, par value $0.01 per share PBBK The NASDAQ Stock Mar

Filing Documents

• pbbk-20250630x10q.htm (10-Q) — 4982KB
• pbbk-20250630xex31d1.htm (EX-31.1) — 9KB
• pbbk-20250630xex31d2.htm (EX-31.2) — 11KB
• pbbk-20250630xex32d1.htm (EX-32.1) — 5KB
• pbbk-20250630xex32d2.htm (EX-32.2) — 7KB
• pbbk-20250630x10q004.jpg (GRAPHIC) — 9KB
• 0001558370-25-011520.txt ( ) — 19220KB
• pbbk-20250630.xsd (EX-101.SCH) — 54KB
• pbbk-20250630_cal.xml (EX-101.CAL) — 86KB
• pbbk-20250630_def.xml (EX-101.DEF) — 311KB
• pbbk-20250630_lab.xml (EX-101.LAB) — 595KB
• pbbk-20250630_pre.xml (EX-101.PRE) — 474KB
• pbbk-20250630x10q_htm.xml (XML) — 5502KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024 3 Condensed Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024 (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024 (Unaudited) 5 Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2025 and 2024 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 51 Item 4.

Controls and Procedures

Controls and Procedures 51 Part II Other Information Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 51 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 3. Defaults Upon Senior Securities 52 Item 4. Mine Safety Disclosures 52 Item 5. Other Information 52 Item 6. Exhibits 52 Exhibit Index

Signatures

Signatures 2 Table of Contents

—FINANCIAL INFORMATION

PART I —FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PB BANKSHARES, INC. Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) June 30, 2025 December 31, (Unaudited) 2024 Assets Cash and due from banks $ 42,992 $ 35,449 Federal funds sold 12,914 2,328 Cash and cash equivalents 55,906 37,777 Debt securities available-for-sale, at fair value 35,600 50,296 Equity securities, at fair value 836 808 Restricted stocks, at cost 2,228 2,125 Loans receivable, net of allowance for credit losses of $ 4,498 at June 30, 2025 and $ 4,356 at December 31, 2024 353,324 344,813 Premises and equipment, net 2,052 2,079 Deferred income taxes, net 1,593 1,568 Accrued interest receivable 1,476 1,269 Bank owned life insurance 8,560 8,448 Other assets 2,552 2,134 Total Assets $ 464,127 $ 451,317 Liabilities and Stockholders' Equity Liabilities Deposits $ 363,421 $ 354,190 Borrowings 43,882 42,460 Accrued expenses and other liabilities 6,479 6,009 Total Liabilities 413,782 402,659 Commitments and contingencies - see notes 7 and 8 Stockholders' Equity Preferred Stock, $ 0.01 par value, 10,000,000 shares authorized; - 0 - issued and outstanding at June 30, 2025 and December 31, 2024 — — Common Stock, $ 0.01 par value, 40,000,000 shares authorized; 2,552,315 (including 67,251 unvested restricted shares) and 2,552,115 (including 67,846 unvested restricted shares) issued and outstanding at June 30, 2025 and December 31, 2024, respectively 24 24 Additional paid-in capital 23,208 22,927 Retained earnings 29,443 28,330 Unearned ESOP shares, 177,744 shares at June 30, 2025 and December 31, 2024 ( 2,318 ) ( 2,318 ) Accumulated other comprehensive loss ( 12 ) ( 305 ) Total Stockholders' Equity 50,345 48,658 Total Liabilities and Stockholders' Equity $ 464,127 $ 451,317 The accompanying notes are an integral part of these condensed co

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