Pacific Valley Bancorp Achieves Record Levels of Loans, Deposits and Total Assets in the Fourth Quarter of 2025 | PVBK Stock News

, /PRNewswire/ -- Pacific Valley Bancorp (OTC Pink: PVBK), the sole owner of Pacific Valley Bank, announced its unaudited financial results for the fourth quarter of 2025. Total assets increased 8.3% over prior year to $710 million, total loans increased 10.3% to $536 million, and total deposits increased 7.0% to $620 million. Net income is lower than prior year due to investments the Company has made in personnel to drive loan and deposit growth. This expansion strategy positions the Bank for stronger, more sustainable performance in the coming years.FINANCIAL HIGHLIGHTS:Net income for the quarter ended December 31, 2025, was $774 thousand, a decrease of 18.5% or $176 thousand from the quarter ended September 30, 2025. The decrease was primarily the result of a $281 thousand credit loss provision and higher consulting expenses, partially offset by higher loan interest income. Basic earnings per share for the quarter was $0.14, compared to $0.19 per share for the prior quarter. Fourth quarter earnings per share was affected by lower income and higher outstanding shares.Net income for the year ended December 31, 2025 was $3.6 million, a decrease of 18.8% or $830 thousand from the year ended December 31, 2024. The decrease was the result of higher personnel expense and the previously mentioned credit loss provision, partially offset by higher loan interest income. Personnel expense was elevated due to a dramatic increase in loan and deposit production personnel.Net interest margin for the quarter ended December 31, 2025 was 3.86%, compared with 3.53% for the quarter ended September 30, 2025. The increase was the result of higher loan interest income, increased loan prepayment penalties, and lower money market interest expense. Net interest margin for the year ended December 31, 2025 was 3.60%, compared with 3.37% for the year ended December 31, 2024. The increase was due to higher loan interest income.Gross loans outstanding grew by 10.3% or $49.8 million from December 31, 2024 to December 31, 2025, primarily as a result of increased C&I, agricultural real estate, and CRE loans.Non-performing loans to gross loans for the year ended December 31, 2025, was 0.04% compared to 0.03% for the year ended December 31, 2024.The Community Bank Leverage Ratio for the Company's subsidiary, Pacific Valley Bank, has been consistently strong. As of December 31, 2025 the ratio was 12.74%, compared to 13.03% on September 30, 2025, and 13.33% on December 31, 2024. The well capitalized regulatory requirement for this ratio is 9.00%."We are pleased to see our investments in loan production continue to pay off, as loans increased $17 million in the fourth quarter of 2025 while deposits increased by $105 million. Deposits dramatically increased due to a $106 million seasonal, agricultural deposit that came in at the end of December and is running off in January. The cost of deposits for the fourth quarter decreased to 1.96% compared to 2.14% in the third quarter, due to the recent interest rate cuts by the Federal Reserve," said Anker Fanoe, CEO."As discussed in our press release dated January 8, 2026, Taylor Fresh Foods, Inc. (Taylor Fresh Foods) a family-owned, Salinas headquartered, global leader in the packaged vegetable industry, has acquired a 16.3% ownership position in Pacific Valley Bancorp. Taylor Fresh Foods did not seek a control position, as their ownership consists of 9.9% of voting common shares and 6.4% of nonvoting preferred shares. We have received an overwhelmingly positive reaction to this news. I am very excited about the support from Taylor Fresh Foods and the opportunity it gives us to grow beyond Monterey County," stated CEO Fanoe."Our liquidity position remains strong, as our primary liquidity ratio (cash, deposits held in other banks, and securities as a percentage of total assets) was 23.0% on December 31, 2025, compared to 24.7% for the same month a year ago. As of December 31, 2025, on-balance sheet liquidity totaled $163 million and contingent liquidity, which includes borrowing capacity with the Federal Home Loan Bank, the Federal Reserve Bank, correspondent banks and brokered deposits, was $380 million. Our combined on-balance sheet liquidity and contingent liquidity amount to 121% of our uninsured deposits," said Steve Leen, Executive Vice President and CFO.As of December 31, 2025, total assets were $710.2 million. Since December 31, 2024, total assets have increased $54.5 million or 8.3%, primarily as a result of an increase in loans. Since September 30, 2025, total assets have increased by $113.9 million or 19.1%, primarily due to an increase in overnight funds resulting from a large, seasonal, agricultural deposit.The investment securities portfolio totaled $23.2 million as of December 31, 2025, $24.9 million as of September 30, 2025, and $24.9 million as of December 31, 2024; the unrealized losses in the portfolio were $0.1 million, $0.2 million, and $0.8 million for the comparable periods, respectively. The securities portfolio made up 3.3% of total assets and the unrealized loss was 0.6% of the investment portfolio as of December 31, 2025.Total gross loans outstanding were $535.8 million as of December 31, 2025. Gross loans grew by 10.3% or $49.8 million from December 31, 2024 to December 31, 2025. The Company's loan portfolio increased by $17.4 million or 3.4% during the quarter ended December 31, 2025.Increased C&I, agricultural real estate, and CRE loans were the predominant growth components compared to prior year quarter, and increased agriculture and C&I loans were the primary components of the increase over prior quarter.As of December 31, 2025, total deposits were $620.3 million. Total deposits have increased by $40.8 million or 7.0% compared to the prior year quarter. The increase resulted from higher money market and checking accounts partially offset by lower certificate of deposit accounts.Shareholders' equity was $70.1 million on December 31, 2025, representing growth of $13.7 million or 24.3% over a year ago, primarily attributable to the Taylor Fresh Foods capital raise and increased retained earnings from net income. For the Company's subsidiary, Pacific Valley Bank, equity increased to $76.8 million on December 31, 2025 compared to $76.2 million on September 30, 2025. The Bank is classified as well capitalized with a Community Bank Leverage Ratio of 12.74%, significantly above the regulatory minimum of 9.00%Net Interest Income was $5.6 million for the quarter ended December 31, 2025, compared to $4.4 million for the quarter ended December 31, 2024. Net interest income was affected by increased interest income of $1.1 million and decreased interest expense of $0.2 million. Net interest margin for the fourth quarter of 2025 was 3.86% compared with 3.30% for the same period in 2024. The increase was the result of higher loan interest income, increased loan prepayment penalties, and lower certificate of deposit interest expense.Net interest income was $20.1 million for the year ended December 31, 2025, compared to $17.4 million for the year ended December 31, 2024. Net interest income was impacted by increased interest income of $2.6 million and decreased interest expense of $0.1 million. Net interest margin for the year ended 2025 was 3.60% compared with 3.37% for the same period in 2024. The increase was the result of higher loan interest income, partially offset by decreased overnight funds interest income.A provision for credit losses of $281 thousand was recorded in the year ended December 31, 2025 while no provision was recorded in the year ended December 31, 2024. The credit loss provision resulted from replenishment of the reserve due to a $150 thousand charge-off of a C&I workout loan and growth in the loan portfolio. The allowance for credit losses was 1.47% of gross loans as of December 31, 2025. Credit quality remains very strong; non-performing loans to gross loans as of December 31, 2025 was 0.04% compared to 0.03% as of December 31, 2024.For the quarter ended December 31, 2025, non-interest income was $365 thousand compared with $337 thousand for the quarter ended December 31, 2024, and $383 thousand for the quarter ended September 30, 2025.Year to date non-interest expense was $16.4 million compared with $12.6 million for the year ended December 31, 2024, an increase of $3.8 million, or 30.1%. The increase was primarily caused by higher personnel expenses of $2.8 million. Non-interest expense was $4.6 million for the fourth quarter of 2025, an increase of $1.4 million, or 43.2%, compared to the quarter ended December 31, 2024, also primarily related to higher personnel expense from the increase in loan and deposit production staff.Return on average assets was 0.62% for the year ended December 31, 2025, versus 0.83% for the comparable period of the prior year due to higher personnel expense, partially offset by higher loan interest income. Return on average assets was 0.51% for the three months ended December 31, 2025, versus 0.78% for the comparable period of the prior year due to higher personnel expense and a credit loss provision in December, partially offset by higher loan interest income and lower certificate of deposit expense.Pacific Valley BancorpSelected Financial Data - Unaudited$ In thousands, Except per Share DataAssetsDecember 31, 2025September 30, 2025December 31, 2024Cash and Due From Banks$140,242$42,471$136,959Investment Securities23,24024,86724,905Gross Loans Outstanding535,818518,442485,992Allowance for Credit Losses(7,877)(7,703)(7,619)Other Assets18,73618,16115,410Total Assets$710,159$596,238$655,647Liabilities and CapitalDecember 31, 2025September 30, 2025December 31, 2024Non-Interest Bearing Deposits$274,970$160,545$260,062Interest Bearing Deposits345,358354,615319,458Borrowings16,93416,92116,881Other Liabilities2,8064,2192,867Equity70,09159,93856,379Total Liabilities and Capital$710,159$596,238$655,647Key Ratios:December 31, 2025September 30, 2025December 31, 2024Net Loan to Deposits85.11 %99.14 %82.55 %Allowance for credit losses to gross loans1.47 %1.49 %1.57 %Non-performing loans to gross loans0.04 %0.05 %0.03 %Equity to Year-to-Date Average Assets12.08 %10.51 %10.54 %Book Value per Share$12.94$12.11$11.43Income Statement, Three Months EndedDecember 31, 2025September 30, 2025December 31, 2024Interest Income $8,428$7,936$7,373Interest Expense2,7942,9392,970Net Interest Income 5,6344,9974,403Provision for Credit Losses28100Non-Interest Income365383337Non-Interest Expense4,6114,0283,221Income Tax333402450Net Income$774$950$1,069Key Ratios, Three Months Ended:December 31, 2025September 30, 2025December 31, 2024Earnings per basic share$0.14$0.19$0.22Net Interest Margin, annualized3.86 %3.53 %3.30 %Quarter Efficiency Ratio76.86 %74.87 %67.95 %Return on Average Assets, annualized0.51 %0.65 %0.78 %Return on Average Equity, annualized4.68 %6.32 %7.53 %Pacific Valley BancorpSelected Financial Data - Unaudited$ In thousands, Except per Share DataIncome Statement, Year EndedDecember 31, 2025December 31, 2024Interest Income $31,380$28,782Interest Expense11,26011,355Net Interest Income 20,12017,427Provision for Credit Losses2810Non-Interest Income1,7111,478Non-Interest Expense16,43912,632Income Tax1,5181,850Net Income$3,593$4,423Key Ratios, Year EndedDecember 31, 2025December 31, 2024Earnings per basic share$0.66$0.90Net Interest Margin, annualized3.60 %3.37 %Efficiency Ratio75.30 %66.82 %Return on Average Assets0.62 %0.83 %Return on Average Equity5.93 %8.05 %ABOUT PACIFIC VALLEY BANCORP:Pacific Valley Bancorp completed its formation and reorganization as a bank holding company for Pacific Valley Bank on January 4, 2022. The Company is a registered bank holding company with the Federal Reserve Bank, but it has not registered its securities under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and it therefore does not file periodic reports with the Securities and Exchange Commission.Pacific Valley Bank is a full service business bank that commenced operations in September 2004 to provide exceptional service to customers in Monterey County. Pacific Valley Bank operates business at four locations; administrative headquarters and branch offices in Salinas, King City, Monterey and Santa Cruz, California. The Bank offers a broad range of banking products and services, including credit and deposit services to small and medium sized businesses, agriculture related businesses, non-profit organizations, professional service providers and individuals.For more information, visit www.pacificvalleybank.com.This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. Accordingly, readers should not place undue reliance on these forward- looking statements. These risks and uncertainties include, but are not limited to, economic conditions in all areas in which the Company conducts business, including the competitive environment for attracting loans and deposits; supply and demand for real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend; changes in the financial performance and/or condition of our borrowers, depositors, key vendors or counterparties; changes in our levels of delinquent loans, nonperforming assets, allowance for loan losses and charge-offs; the effect of changes in laws and regulations, including accounting practices; changes in estimates of future reserve requirements and minimum capital requirements based upon periodic review thereof under relevant regulatory and accounting requirements; fluctuations in the interest rate and market environment; cyber-security threats, including the loss of system functionality, theft, loss of customer data or money; technological changes and the expanding use of technology in banking; the costs and effects of legal, compliance and regulatory actions; acts of war or terrorism, or natural disasters; and other factors beyond the Company's control. These forward-looking statements, which reflect management's views, are as of the date of this release. Pacific Valley Bancorp has no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.ContactAnker Fanoe, Chief Executive Officer (831) 771-4384SOURCE Pacific Valley Bancorp