PBCO Financial Corporation Reports Fourth Quarter & Annual 2025 Results | PBCO Stock News

MEDFORD, Ore.--(BUSINESS WIRE)--PBCO Financial Corporation (OTCPK: “PBCO”), the holding company (the “Company”) of People’s Bank of Commerce (the “Bank”), today reported net income of $2.5 million and earnings per share of $0.48 for the fourth quarter of 2025, compared to net income of $2.1 million and $0.39 per share for the third quarter of 2025. For the year ended 2025, earnings per share were $1.63 compared to $1.52 in 2024.HighlightsLoans grew by $7.1 million or 1.3% in the fourth quarter and $21.7 million or 3.9% for the year ended 2025Return on average assets increased to 1.22% versus 1.01% in the prior quarterTangible book value per share of $18.34, an increase of 3.9% in the fourth quarterCompleted stock repurchases for 35,063 shares at a weighted average price of $17.40 per share during the quarterCompleted the termination of our Employee Stock Ownership Plan, whereby the Company repurchased 95,554 shares at $16.94 per share in fourth quarter“I’m pleased with our 2025 results, which displayed improved efficiency, expanded net interest margin and stronger profitability with higher Return on Average Assets and Earnings per Share. We benefited from moderate loan growth, which contributed to our higher interest income and lower funding costs during the year. Together, these factors delivered solid growth in net income for 2025,” reported Julia Beattie, President and CEO.The Bank’s loan portfolio increased to $567.7 million, or an increase of 1.3% over the prior quarter, and increased $21.1 million, or 3.9%, for the year ended 2025. "While loan growth was stable during the year, there were some early headwinds from unplanned prepayments that slowed our growth rate during the year,” noted Beattie.Deposits were down $23.0 million from third quarter to fourth quarter, a 3.4% decrease. For the year, deposits ended at $654.0 million, a 2.9% annual decrease. “The notable decrease in deposits during the fourth quarter was due to a few large clients who completed transactions that took deposits out of the Bank, which led to the net decrease in deposits for the year,” added Beattie.The investment portfolio shrank 4.9% to $114.1 million during the fourth quarter from $120.0 million at the end of the third quarter. Due to lower market rates on investments over the year and reductions in the investment portfolio as investments were called or matured, the AOCI decreased to $7.0 million at the end of the fourth quarter compared to $7.8 million at the end of the third quarter of 2025.During the fourth quarter, non-interest income increased by $55 thousand, with the increase primarily attributed to an increase in factoring revenue of $41 thousand for the quarter. For the year, non-interest income increased $153 thousand, also the result of a $135 thousand increase in factoring revenue in 2025 versus 2024.Non-interest expenses totaled $5.8 million in the fourth quarter, down $33 thousand from the third quarter of 2025. During the quarter, personnel expenses were up $157 thousand due to year-end employee benefit accruals. However, this was offset by a reversal of the reserve on unfunded loan commitments, with a reversal of $206 thousand in expense during the fourth quarter as construction loan commitments were funded. For the year, non-interest expense was up $1.1 million, a 4.8% increase versus 2024. During 2025, personnel expense increased $1.4 million, while all other non-interest expenses decreased $350 thousand, with $251 thousand resulting from a credit to the reserve for unfunded loan commitments in 2025.The Bank’s leverage ratio was 14.78% as of December 31, 2025, compared to 14.29% as of September 30, 2025. The Company’s tangible common equity was $94.0 million as of December 31, 2025, compared to $92.6 million as of September 30, 2025.About PBCO Financial CorporationPBCO Financial Corporation’s stock trades on the over-the-counter market under the symbol PBCO. Additional information about the Company is available in the investor section of the Company’s website at: www.peoplesbank.bank.Founded in 1998, People’s Bank of Commerce is a full-service, commercial bank headquartered in Medford, Oregon with branches in Albany, Ashland, Central Point, Eugene, Grants Pass, Jacksonville, Klamath Falls, Lebanon, Medford, and Salem."Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by the use of words or phrases such as "believes," "expects," "anticipates," "foresees," "forecasts," "estimates," “plans,” “projects,” or other words or phrases of similar import indicating that the statement addresses some future result, occurrence, plan, or objective. Similarly, statements herein that describe People’s Bank’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Consolidated Balance Sheets(Dollars in 000's)12/31/20259/30/20256/30/20253/31/202512/31/2024BALANCE SHEETASSETSCash and due from banks$5,959$6,194$6,917$4,909$7,247Federal funds sold-----Interest bearing deposits31,74753,84651,06053,59242,588Investment securities114,079119,970127,850131,915132,606Loans held for sale-----Loans held for investment, net of unearned income567,673560,615553,948551,388546,599Total Loans, net of deferred fees and costs567,673560,615553,948551,388546,599Allowance for loan losses(6,418)(6,304)(5,971)(5,684)(5,627)Premises and equipment, net27,84728,48028,79728,87829,125Bank owned life insurance17,84617,69517,51617,37317,222Other Assets29,89629,82130,90529,80928,817Total assets$788,629$810,317$811,022$812,180$798,577 LIABILITIESDepositsDemand - non-interest bearing$220,919$239,521$242,281$241,290$252,441Demand - interest bearing199,131189,924205,034222,690200,029Money market and savings223,944236,949222,265208,683208,455Time deposits of less than $250,0007,4897,4767,7168,4499,334Time deposits of more than $250,0002,4843,0722,7572,7413,535Total deposits$653,967$676,942$680,053$683,853$673,794 Borrowed funds27,89428,27428,38128,48728,593Other liabilities9,1398,8539,2489,3018,570Total liabilities$691,000$714,069$717,682$721,641$710,957 STOCKHOLDERS' EQUITYCommon stock, surplus & retained earnings$104,634$104,022$102,138$100,643$99,907Accumulated other comprehensive income, net of tax(7,005)(7,774)(8,798)(10,104)(12,287)Total stockholders' equity$97,629$96,248$93,340$90,539$87,620 Total liabilities & stockholders' equity$788,629$810,317$811,022$812,180$798,577 Consolidated Statements of Income(Dollars in 000's)4th Quarter20253rd Quarter20252nd Quarter20251st Quarter20254th Quarter2024INCOME STATEMENTINTEREST INCOMELoans$9,007$8,749$8,595$8,351$8,575Investments462477496517524Federal funds sold and due from banks586536563431447Total interest income10,0559,7629,6549,2999,546 INTEREST EXPENSEDeposits2,4382,5912,4832,4862,566Borrowed funds262262259257262Total interest expense2,7002,8532,7422,7432,828 NET INTEREST INCOME7,3556,9096,9126,5566,718Provision for loan losses25034527851(506)Net interest income after provision for loan losses7,1056,5646,6346,5057,224 NONINTEREST INCOMEService charges111114114112119Steelhead finance income1,2771,2361,2241,1471,181BOLI Income149146143144139Other non-interest income496482570502456Total noninterest income2,0331,9782,0511,9051,895 NONINTEREST EXPENSESalaries and employee benefits3,7353,5783,5433,5363,013Occupancy & equipment expense844868854865894Advertising expense119125102102119Professional expenses188194218198220Data processing expense432433412389375Loss on sale of investments-----Other operating expenses442595790703877Total noninterest expense5,7605,7935,9195,7935,498 Income before taxes3,3782,7492,7662,6173,621Provision for income taxes879691708669904 NET INCOME$2,499$2,058$2,058$1,948$2,717 Shares outstanding end of quarter5,124,3575,245,4135,258,4075,298,4645,298,464Average diluted shares outstanding5,227,8655,292,2565,319,4295,337,9925,311,751Earnings per share$0.48$0.39$0.39$0.37$0.51Diluted earnings per share$0.48$0.39$0.39$0.36$0.51 (Dollars in 000's)12/31/20259/30/20256/30/20253/31/202512/31/2024Performance RatiosReturn on average assets1.22%1.01%1.01%0.96%1.34%Return on average equity10.26%8.68%8.94%8.75%12.46%Net interest margin3.98%3.74%3.76%3.63%3.67%Yield on loans6.35%6.23%6.23%6.13%6.06%Cost of deposits1.42%1.51%1.46%1.50%1.49%Efficiency ratio excluding non-recurring expenses61.35%65.19%66.04%68.47%63.83%Full-time equivalent employees126133137130135 CapitalCommunity Bank Leverage Ratio14.78%14.29%14.03%13.80%13.92%Book value per share$19.05$18.35$17.75$17.09$16.54Tangible book value per share$18.34$17.65$17.05$16.39$15.84Dividends per Share$-$-$-$0.23$- Asset QualityAllowance for loan losses (ALLL)$6,418$6,304$5,971$5,684$5,627Nonperforming loans (NPLs)$4,147$4,095$3,372$4,576$944Nonperforming assets (NPAs)$4,147$4,095$3,372$4,576$944Classified assets(2)$11,528$13,031$9,288$10,624$8,119ALLL as a percentage of loans1.13%1.12%1.08%1.03%1.03%Net charge offs (recoveries) to average loans0.02%0.00%0.00%0.00%0.01%Nonperforming assets as a percentage of total assets0.53%0.51%0.42%0.56%0.12%Classified Asset Ratio(3)11.08%12.71%9.35%11.04%8.71%Past due as a percentage of total loans0.73%0.87%0.96%0.88%0.49% End of period balancesTotal securities and short term deposits$145,826$173,816$178,910$185,507$175,194Total loans$567,673$560,615$553,948$551,388$546,599Total earning assets$713,499$734,431$732,858$736,895$721,793Intangible assets$3,670$3,681$3,690$3,701$3,711Total assets$788,629$810,317$811,022$812,180$798,577Total noninterest bearing deposits$220,919$239,521$242,281$241,290$252,441Total deposits$653,967$676,942$680,053$683,853$673,794 Average balancesTotal securities and short term deposits$176,173$181,528$181,971$179,784$178,899Total loans$556,727$551,101$547,907$546,820$547,779Total earning assets$732,900$732,629$729,878$726,604$726,678Total assets$815,906$815,262$812,029$807,647$808,874Total noninterest bearing deposits$233,390$237,705$240,960$239,660$253,070Total deposits$680,475$682,347$681,775$680,707$683,359(1) Effective March 31, 2020, People's Bank of Commerce opted into the Community Bank Leverage Ratio and is no longer calculating risk based capital ratios.(2) Classified assets are defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned.(3) Classified asset ratio is defined as the sum of all loan related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned, divided by bank Tier 1 capital, plus the allowance for loan losses.View source version on businesswire.com: https://www.businesswire.com/news/home/20260122070996/en/Julia Beattie, President & CEO(541) 608-8920, julia.beattie@peoplesbank.bankSource: PBCO Financial Corporation