PBCO Financial Corporation Reports Second Quarter 2025 Results

Jul 30 2025 01:42 BST

MEDFORD, Ore.--(BUSINESS WIRE)--Jul. 29, 2025-- PBCO Financial Corporation (OTCPK: “PBCO”), the holding company (the “Company”) of People’s Bank of Commerce (the “Bank”), today reported net income of $2.1 million and earnings per share of $0.39 for the second quarter of 2025, compared to net income of $1.9 million and $0.36 per share for the first quarter of 2025.

Highlights

Net interest margin increased by 13 basis points to 3.76% compared to 3.63% in the first quarter of 2025
Net income increased by 5.7% versus the first quarter of 2025
Return on average assets increased to 1.01% versus 0.96% in the first quarter of 2025
Stock repurchases completed on 39,057 shares at a weighted average price of $14.42 per share

“I am pleased to report the Company’s second quarter 2025 operating results, which demonstrated continued improvement in net interest margin, net income growth, and tangible book value per share growth compared to the first quarter of 2025,” reported Julia Beattie, President and CEO.

The Company’s net interest margin increased to 3.76% during the second quarter from 3.63% in the first quarter of 2025, primarily driven by the improved yield on new and renewed loans during the quarter. The yield on the loan portfolio increased to 6.23% during the second quarter of 2025 compared to 6.13% in the first quarter of 2025, an increase of 10 basis points. The Bank also continued to focus on managing the cost of deposits, which decreased to 1.46% in the second quarter from 1.50% in the first quarter of 2025.

The Bank’s loan portfolio increased to $553.9 million, or an increase of 0.5% over the prior quarter. “The loan portfolio has trended positively in 2025, although at a slower pace than expected at the start of the year due to a large loan prepayment in late first quarter,” noted Beattie.

The investment portfolio decreased 3.1% to $127.9 million during the second quarter of 2025 from $132.3 million at the end of the first quarter of 2025. 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 $8.8 million at the end of the second quarter of 2025 compared to $10.1 million at the end of the first quarter of 2025.

Credit quality remains strong, with a decrease in non-performing loans during the quarter as a result of payoffs. The allowance for credit losses as a percentage of loans increased to 1.08% from the prior. During the quarter, the provision for credit losses was $278 thousand.

“The Company experienced solid improvement in its return on average assets during the second quarter, increasing by 5 basis points to 1.01% from 0.96% in the first quarter of 2025,” commented Beattie. “The improvement in return on average assets was directly attributed to the increase in net interest income of $356 thousand over first quarter of 2025, as well as a $146 thousand increase in non-interest income during the quarter, both of which outpaced the growth in non-interest expense,” added Beattie. During the second quarter of 2025, revenue from Steelhead, the Bank’s factoring division, was up $77 thousand, while other non-interest income was up $68 thousand as a result of gains on sale of SBA loans. Non-interest expenses totaled $5.9 million in the second quarter, up $126 thousand from the first quarter of 2025. The increase was not materially impacted by any one expense category.

The Bank’s leverage ratio was 14.03% as of June 30, 2025, compared to 13.80% as of March 31, 2025. The Company’s tangible common equity was $89.7 million as of June 30, 2025, compared to $86.8 million as of March 31, 2025. During the quarter, the Company executed on its stock repurchase plan and successfully repurchased 39,057 shares at a weighted average price of $14.42 per share.

About PBCO Financial Corporation

PBCO 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)	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
BALANCE SHEET
ASSETS
Cash and due from banks	$	6,917		$	4,909		$	7,247		$	5,563		$	4,679
Federal funds sold		-			-			-			-			-
Interest bearing deposits		51,060			53,592			42,588			21,015			16,125
Investment securities		127,850			131,915			132,606			139,564			144,321
Loans held for sale		-			-			-			-			-
Loans held for investment, net of unearned income		553,948			551,388			546,599			552,307			552,014
Total Loans, net of deferred fees and costs		553,948			551,388			546,599			552,307			552,014
Allowance for loan losses		(5,971	)		(5,684	)		(5,627	)		(6,190	)		(6,066	)
Premises and equipment, net		28,797			28,878			29,125			28,626			27,752
Bank owned life insurance		17,516			17,373			17,222			17,082			16,911
Other Assets		30,905			29,809			28,817			29,162			32,301
Total assets	$	811,022		$	812,180		$	798,577		$	787,129		$	788,037

LIABILITIES
Deposits
Demand - non-interest bearing	$	242,281		$	241,290		$	252,441		$	275,838		$	269,634
Demand - interest bearing		205,034			222,690			200,029			170,685			167,421
Money market and savings		222,265			208,683			208,455			201,703			195,359
Time deposits of less than $250,000		7,716			8,449			9,334			10,392			10,282
Time deposits of more than $250,000		2,757			2,741			3,535			4,631			5,991
Total deposits	$	680,053		$	683,853		$	673,794		$	663,249		$	648,687

Borrowed funds		28,381			28,487			28,593			28,980			50,426
Other liabilities		9,248			9,301			8,570			8,140			7,929
Total liabilities	$	717,682		$	721,641		$	710,957		$	700,369		$	707,042

STOCKHOLDERS' EQUITY
Common stock, surplus & retained earnings	$	102,138		$	100,643		$	99,907		$	96,769		$	94,837
Accumulated other comprehensive income, net of tax		(8,798	)		(10,104	)		(12,287	)		(10,009	)		(13,842	)
Total stockholders' equity	$	93,340		$	90,539		$	87,620		$	86,760		$	80,995

Total liabilities & stockholders' equity	$	811,022		$	812,180		$	798,577		$	787,129		$	788,037

Consolidated Statements of Income
(Dollars in 000's)	2nd Quarter 2025		1st Quarter 2025		4th Quarter 2024			3rd Quarter 2024		2nd Quarter 2024
INCOME STATEMENT
INTEREST INCOME
Loans	$	8,595	$	8,351	$	8,575		$	8,397	$	8,271
Investments		496		517		524			557		584
Federal funds sold and due from banks		563		431		447			292		181
Total interest income		9,654		9,299		9,546			9,246		9,036

INTEREST EXPENSE
Deposits		2,483		2,486		2,566			2,582		2,276
Borrowed funds		259		257		262			342		575
Total interest expense		2,742		2,743		2,828			2,924		2,851

NET INTEREST INCOME		6,912		6,556		6,718			6,322		6,185
Provision for loan losses		278		51		(506	)		149		52
Net interest income after provision for loan losses		6,634		6,505		7,224			6,173		6,133

NONINTEREST INCOME
Service charges		114		112		119			113		118
Steelhead finance income		1,224		1,147		1,181			1,185		1,181
BOLI Income		143		144		139			137		134
Other non-interest income		570		502		456			572		517
Total noninterest income		2,051		1,905		1,895			2,007		1,950

NONINTEREST EXPENSE
Salaries and employee benefits		3,543		3,536		3,013			3,220		3,374
Occupancy & equipment expense		854		865		894			800		906
Advertising expense		102		102		119			92		118
Professional expenses		218		198		220			175		260
Data processing expense		412		389		375			336		338
Loss on sale of investments		-		-		-			-		-
Other operating expenses		790		703		877			1,003		701
Total noninterest expense		5,919		5,793		5,498			5,626		5,697

Income before taxes		2,766		2,617		3,621			2,554		2,386
Provision for income taxes		708		669		904			622		625

NET INCOME	$	2,058	$	1,948	$	2,717		$	1,932	$	1,761

Shares outstanding end of quarter		5,258,407		5,298,464		5,298,464			5,298,464		5,307,057
Average diluted shares outstanding		5,319,429		5,338,325		5,311,751			5,300,957		5,321,376
Earnings per share	$	0.39	$	0.37	$	0.51		$	0.36	$	0.33
Diluted earnings per share	$	0.39	$	0.36	$	0.51		$	0.36	$	0.33

(Dollars in 000's)	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024

Performance Ratios
Return on average assets		1.01	%		0.96	%		1.34	%		0.97	%		0.90	%
Return on average equity		8.94	%		8.75	%		12.46	%		9.26	%		8.90	%
Net interest margin		3.76	%		3.63	%		3.67	%		3.51	%		3.49	%
Yield on loans		6.23	%		6.13	%		6.06	%		6.17	%		6.05	%
Cost of deposits		1.46	%		1.50	%		1.49	%		1.54	%		1.41	%
Efficiency ratio excluding non-recurring expenses		66.04	%		68.47	%		63.83	%		67.55	%		70.03	%
Full-time equivalent employees		137			130			135			134			132

Capital
Community Bank Leverage Ratio		14.03	%		13.80	%		13.92	%		13.71	%		13.44	%
Book value per share	$	17.75		$	17.09		$	16.54		$	16.37		$	15.26
Tangible book value per share	$	17.05		$	16.39		$	15.84		$	15.67		$	14.56

Asset Quality
Allowance for loan losses (ALLL)	$	5,971		$	5,684		$	5,627		$	6,190		$	6,066
Nonperforming loans (NPLs)	$	3,372		$	4,576		$	944		$	2,225		$	1,127
Nonperforming assets (NPAs)	$	3,372		$	4,576		$	944		$	2,225		$	1,127
Classified assets⁽²⁾	$	9,288		$	10,624		$	8,119		$	9,493		$	8,775
ALLL as a percentage of loans		1.08	%		1.03	%		1.03	%		1.12	%		1.10	%
Net charge offs (recoveries) to average loans		0.00	%		0.00	%		0.01	%		0.00	%		0.00	%
Nonperforming assets as a percentage of total assets		0.42	%		0.56	%		0.12	%		0.28	%		0.14	%
Classified Asset Ratio⁽³⁾		9.35	%		11.04	%		8.71	%		10.21	%		10.08	%
Past due as a percentage of total loans		0.96	%		0.88	%		0.49	%		0.46	%		0.46	%

End of period balances
Total securities and short term deposits	$	178,910		$	185,507		$	175,194		$	160,579		$	160,446
Total loans	$	553,948		$	551,388		$	546,599		$	552,307		$	552,014
Total earning assets	$	732,858		$	736,895		$	721,793		$	712,886		$	712,460
Intangible assets	$	3,690		$	3,701		$	3,711		$	3,717		$	3,729
Total assets	$	811,022		$	812,180		$	798,577		$	787,129		$	788,037
Total noninterest bearing deposits	$	242,281		$	241,290		$	252,441		$	275,838		$	269,634
Total deposits	$	680,053		$	683,853		$	673,794		$	663,249		$	648,687

Average balances
Total securities and short term deposits	$	181,971		$	179,784		$	178,899		$	170,092		$	159,413
Total loans	$	547,907		$	546,820		$	547,779		$	544,610		$	547,139
Total earning assets	$	729,878		$	726,604		$	726,678		$	714,702		$	706,552
Total assets	$	812,029		$	807,647		$	808,874		$	796,086		$	785,232
Total noninterest bearing deposits	$	240,960		$	239,660		$	253,070		$	266,179		$	254,771
Total deposits	$	681,775		$	680,707		$	683,359		$	670,056		$	647,351

⁽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/20250729974577/en/

Julia Beattie, President & CEO
(541) 608-8920, julia.beattie@peoplesbank.bank

Source: PBCO Financial Corporation