PBCO Financial Corporation Reports First Quarter 2025 Results

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 $1.9 million and earnings per share of $0.37 for the first quarter of 2025, compared to net income of $1.7 million and $0.31 per share for the first quarter of 2024.

Highlights

• 7.6% increase in total deposits compared to the first quarter of 2024
• Net interest margin increased to 3.63% compared to 3.31% in first quarter of 2024
• Net income increased by 16.09% versus the first quarter of 2024
• Tangible book value per share of $16.39, an increase of 16.7% versus the first quarter of 2024
• Paid cash dividends of $0.229 per share in the quarter

“I am pleased to report the Company’s first quarter operating results of 2025. “The strong financial performance is evidenced by the improved net interest margin, net income growth, and tangible book value per share growth compared to the first quarter of 2024,” reported Julia Beattie, President and CEO.

The Bank’s loan portfolio increased to $551.0 million, or an increase of 0.8% over the prior year, while the yield on the loan portfolio increased to 6.13% during the first quarter of 2025 compared to 5.83% in the first quarter of 2024. “The loan portfolio remained relatively flat compared to prior year, primarily due to loan prepayments that occurred over the last two quarters,” noted Beattie.

Total deposits grew 1.5% during the first quarter of 2025 and 7.6% since the first quarter of 2024. “The Bank remains focused on growing deposits to support our loan growth,” reported Beattie. “The market trends over the past three years have demonstrated the importance of having a strong core deposit base, which is a key strength of People’s Bank throughout its history,” added Beattie.

The investment portfolio decreased 11.2% to $131.9 million during the first quarter of 2025 from $148.6 million at the end of the first quarter of 2024. 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 $10.1 million at the end of the first quarter of 2025 compared to $14.5 million at the end of the first quarter of 2024.

Credit quality remains strong, although there was an increase in non-performing loans during the quarter due to the downgrade of a relationship with $2.1 million in outstanding loans. The Bank has adequate collateral coverage and does not anticipate any losses as a result of this downgrade. The allowance for credit losses as a percentage of loans remained flat at 1.03% from the prior quarter. During the quarter, the provision expense was $51 thousand.

Non-interest income was $1.9 million in the first quarter, down $58 thousand from the first quarter of 2024. Revenue from Steelhead, the Bank’s factoring division, was down $55 thousand over the same period, while other non-interest income was flat with the first quarter of 2024.

Non-interest expenses totaled $5.8 million in the first quarter, up $409 thousand from the first quarter of 2024, with the increase largely attributed to increased personnel expense of $162 thousand and other non-interest expenses of $210 thousand.

The Bank’s leverage ratio was 13.80% as of March 31, 2025, compared to 13.92% as of December 31, 2024. The Company’s tangible common equity was $86.8 million as of March 31, 2025, compared to $83.9 million as of December 31, 2024. During the quarter, the Company paid a cash dividend of $0.229, which was the first cash dividend paid to shareholders since 2009.

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)	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
BALANCE SHEET
ASSETS
Cash and due from banks		$	4,909		$	7,247		$	5,563		$	4,679		$	5,592
Federal funds sold			-			-			-			-			-
Interest bearing deposits			53,592			42,588			21,015			16,125			13,303
Investment securities			131,915			132,606			139,564			144,321			148,601
Loans held for sale			-			-			-			-			-
Loans held for investment, net of unearned income			551,388			546,599			552,307			552,014			547,229
	Total Loans, net of deferred fees and costs		551,388			546,599			552,307			552,014			547,229
Allowance for loan losses			(5,684	)		(5,627	)		(6,190	)		(6,066	)		(6,029	)
Premises and equipment, net			28,878			29,125			28,626			27,752			29,727
Bank owned life insurance			17,373			17,222			17,082			16,911			16,777
Other Assets			29,809			28,817			29,162			32,301			33,550
	Total assets	$	812,180		$	798,577		$	787,129		$	788,037		$	788,750
LIABILITIES
Deposits
	Demand - non-interest bearing	$	241,290		$	252,441		$	275,838		$	269,634		$	256,558
	Demand - interest bearing		222,690			200,029			170,685			167,421			165,547
	Money market and savings		208,683			208,455			201,703			195,359			187,329
	Time deposits of less than $250,000		8,449			9,334			10,392			10,282			16,697
	Time deposits of more than $250,000		2,741			3,535			4,631			5,991			9,420
	Total deposits	$	683,853		$	673,794		$	663,249		$	648,687		$	635,551
Borrowed funds			28,487			28,593			28,980			50,426			67,517
Other liabilities			9,301			8,570			8,140			7,929			7,067
	Total liabilities	$	721,641		$	710,957		$	700,369		$	707,042		$	710,135
STOCKHOLDERS' EQUITY
Common stock, surplus & retained earnings		$	100,643		$	99,907		$	96,769		$	94,837		$	93,076
Accumulated other comprehensive income, net of tax			(10,104	)		(12,287	)		(10,009	)		(13,842	)		(14,461	)
	Total stockholders' equity	$	90,539		$	87,620		$	86,760		$	80,995		$	78,615
	Total liabilities & stockholders' equity	$	812,180		$	798,577		$	787,129		$	788,037		$	788,750

Consolidated Statements of Income
	(Dollars in 000's)	1st Quarter 2025			4th Quarter 2024			3rd Quarter 2024			2nd Quarter 2024			1st Quarter 2024
INCOME STATEMENT
INTEREST INCOME
Loans		$	8,351		$	8,575		$	8,397		$	8,271		$	7,907
Investments			517			524			557			584			621
Federal funds sold and due from banks			431			447			292			181			133
	Total interest income		9,299			9,546			9,246			9,036			8,661
INTEREST EXPENSE
Deposits			2,486			2,566			2,582			2,276			2,121
Borrowed funds			257			262			342			575			676
	Total interest expense		2,743			2,828			2,924			2,851			2,797
NET INTEREST INCOME			6,556			6,718			6,322			6,185			5,864
Provision for loan losses			51			(506	)		149			52			175
Net interest income after provision for loan losses			6,505			7,224			6,173			6,133			5,689
NONINTEREST INCOME
Service charges			112			119			113			118			124
Steelhead finance income			1,147			1,181			1,185			1,181			1,202
BOLI Income			144			139			137			134			134
Other non-interest income			502			456			572			517			503
	Total noninterest income		1,905			1,895			2,007			1,950			1,963
NONINTEREST EXPENSE
Salaries and employee benefits			3,536			3,013			3,220			3,374			3,374
Occupancy & equipment expense			865			894			800			906			881
Advertising expense			102			119			92			118			86
Professional expenses			198			220			175			260			234
Data processing expense			389			375			336			338			316
Loss on sale of investments			-			-			-			-			-
Other operating expenses			703			877			1,003			701			493
	Total noninterest expense		5,793			5,498			5,626			5,697			5,384
Income before taxes			2,617			3,621			2,554			2,386			2,268
Provision for income taxes			669			904			622			625			590
NET INCOME		$	1,948		$	2,717		$	1,932		$	1,761		$	1,678
	Shares outstanding end of quarter		5,298,464			5,298,464			5,298,464			5,307,057			5,328,535
	Average diluted shares outstanding		5,338,325			5,311,751			5,300,957			5,321,376			5,328,035
	Earnings per share	$	0.37		$	0.51		$	0.36		$	0.33		$	0.31
	Diluted earnings per share	$	0.36		$	0.51		$	0.36		$	0.33		$	0.31

	(Dollars in 000's)	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Performance Ratios
	Return on average assets		0.96	%		1.34	%		0.97	%		0.90	%		0.85	%
	Return on average equity		8.75	%		12.46	%		9.26	%		8.90	%		8.60	%
	Net interest margin		3.63	%		3.67	%		3.51	%		3.49	%		3.31	%
	Yield on loans		6.13	%		6.06	%		6.17	%		6.05	%		5.83	%
	Cost of deposits		1.50	%		1.49	%		1.54	%		1.41	%		1.33	%
	Efficiency ratio excluding non-recurring expenses		68.47	%		63.83	%		67.55	%		70.03	%		68.79	%
	Full-time equivalent employees		130			135			134			132			132
Capital
	Community Bank Leverage Ratio		13.80	%		13.92	%		13.71	%		13.44	%		13.18	%
	Book value per share	$	17.09		$	16.54		$	16.37		$	15.26		$	14.75
	Tangible book value per share	$	16.39		$	15.84		$	15.67		$	14.56		$	14.05
Asset Quality
	Allowance for loan losses (ALLL)	$	5,684		$	5,627		$	6,190		$	6,066		$	6,029
	Nonperforming loans (NPLs)	$	4,576		$	944		$	2,225		$	1,127		$	412
	Nonperforming assets (NPAs)	$	4,576		$	944		$	2,225		$	1,127		$	618
	Classified assets(2)	$	10,624		$	8,119		$	9,493		$	8,775		$	6,442
	ALLL as a percentage of loans		1.03	%		1.03	%		1.12	%		1.10	%		1.10	%
	Net charge offs (recoveries) to average loans		0.00	%		0.01	%		0.00	%		0.00	%		0.00	%
	Nonperforming assets as a percentage of total assets		0.56	%		0.12	%		0.28	%		0.14	%		0.08	%
	Classified Asset Ratio(3)		11.04	%		8.71	%		10.21	%		10.08	%		7.61	%
	Past due as a percentage of total loans		0.88	%		0.49	%		0.46	%		0.46	%		0.55	%
End of period balances
	Total securities and short term deposits	$	185,507		$	175,194		$	160,579		$	160,446		$	161,904
	Total loans	$	551,388		$	546,599		$	552,307		$	552,014		$	547,229
	Total earning assets	$	736,895		$	721,793		$	712,886		$	712,460		$	709,133
	Intangible assets	$	3,697		$	3,711		$	3,717		$	3,729		$	3,741
	Total assets	$	812,180		$	798,577		$	787,129		$	788,037		$	788,750
	Total noninterest bearing deposits	$	241,290		$	252,441		$	275,838		$	269,634		$	256,558
	Total deposits	$	683,853		$	673,794		$	663,249		$	648,687		$	635,551
Average balances
	Total securities and short term deposits	$	179,784		$	178,899		$	170,092		$	159,413		$	165,584
	Total loans	$	546,820		$	547,779		$	544,610		$	547,139		$	536,255
	Total earning assets	$	726,604		$	726,678		$	714,702		$	706,552		$	701,839
	Total assets	$	807,647		$	808,874		$	796,086		$	785,232		$	787,127
	Total noninterest bearing deposits	$	239,660		$	253,070		$	266,179		$	254,771		$	255,204
	Total deposits	$	680,707		$	683,359		$	670,056		$	647,351		$	642,420
(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/20250423606515/en/

Julia Beattie, President & CEO

(541) 608-8920, julia.beattie@peoplesbank.bank

Source: PBCO Financial Corporation