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  4. Pacific Financial Corp Earns $2.4 Million, or $0.24 per Diluted Share for First Quarter 2025; Board of Directors Approves 5% Stock Buyback Plan; Declares Quarterly Cash Dividend of $0.14 per Share

Pacific Financial Corp Earns $2.4 Million, or $0.24 per Diluted Share for First Quarter 2025; Board of Directors Approves 5% Stock Buyback Plan; Declares Quarterly Cash Dividend of $0.14 per Share

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Pacific Financial (PFLC) reported Q1 2025 net income of $2.4 million, or $0.24 per diluted share, up from $2.2 million in Q4 2024 but down from $2.7 million in Q1 2024. The Board approved a 5% stock buyback plan worth $5.3 million and declared a quarterly dividend of $0.14 per share.

Key highlights include:

  • Net interest margin increased to 4.12% from 3.99% in Q4 2024
  • Total deposits grew 6% to $1.07 billion
  • Core deposits increased by $61.2 million (7%)
  • Non-interest bearing deposits represent 36% of total deposits
  • Gross portfolio loans reached $707.0 million

Asset quality remained strong with non-performing assets at 0.10% of total assets. The company maintains strong capital ratios with a leverage ratio of 10.9% and total risk-based capital ratio of 17.4%.

Pacific Financial (PFLC) ha riportato un utile netto nel primo trimestre 2025 di 2,4 milioni di dollari, pari a 0,24 dollari per azione diluita, in aumento rispetto ai 2,2 milioni del quarto trimestre 2024 ma in calo rispetto ai 2,7 milioni del primo trimestre 2024. Il Consiglio ha approvato un piano di riacquisto azionario del 5% del valore di 5,3 milioni di dollari e ha dichiarato un dividendo trimestrale di 0,14 dollari per azione.

Punti salienti principali:

  • Il margine di interesse netto è salito al 4,12% dal 3,99% del quarto trimestre 2024
  • I depositi totali sono cresciuti del 6%, raggiungendo 1,07 miliardi di dollari
  • I depositi core sono aumentati di 61,2 milioni di dollari (7%)
  • I depositi senza interessi rappresentano il 36% del totale depositi
  • I prestiti lordi in portafoglio hanno raggiunto i 707,0 milioni di dollari

La qualità degli asset è rimasta solida con attività non performanti allo 0,10% del totale degli asset. L’azienda mantiene forti rapporti patrimoniali con un indice di leva finanziaria del 10,9% e un indice patrimoniale totale basato sul rischio del 17,4%.

Pacific Financial (PFLC) reportó un ingreso neto en el primer trimestre de 2025 de 2,4 millones de dólares, o 0,24 dólares por acción diluida, un aumento respecto a los 2,2 millones del cuarto trimestre de 2024 pero una disminución respecto a los 2,7 millones del primer trimestre de 2024. La Junta aprobó un plan de recompra de acciones del 5% por un valor de 5,3 millones de dólares y declaró un dividendo trimestral de 0,14 dólares por acción.

Puntos clave:

  • El margen de interés neto aumentó a 4,12% desde 3,99% en el cuarto trimestre de 2024
  • Los depósitos totales crecieron un 6%, alcanzando 1,07 mil millones de dólares
  • Los depósitos centrales aumentaron en 61,2 millones de dólares (7%)
  • Los depósitos sin intereses representan el 36% del total de depósitos
  • Los préstamos brutos en cartera alcanzaron 707,0 millones de dólares

La calidad de los activos se mantuvo sólida con activos no productivos en 0,10% del total de activos. La compañía mantiene ratios de capital sólidos con una ratio de apalancamiento del 10,9% y una ratio total de capital basada en riesgo del 17,4%.

Pacific Financial (PFLC)는 2025년 1분기 순이익이 240만 달러, 희석 주당 0.24달러를 기록했으며, 이는 2024년 4분기 220만 달러에서 증가했으나 2024년 1분기 270만 달러보다는 감소한 수치입니다. 이사회는 530만 달러 규모의 5% 주식 자사주 매입 계획을 승인하고 주당 0.14달러의 분기 배당금을 선언했습니다.

주요 내용은 다음과 같습니다:

  • 순이자마진이 2024년 4분기 3.99%에서 4.12%로 상승
  • 총 예금이 6% 증가하여 10억 7천만 달러 도달
  • 핵심 예금이 6,120만 달러(7%) 증가
  • 비이자 예금이 전체 예금의 36% 차지
  • 총 대출 포트폴리오가 7억 7백만 달러에 도달

자산 품질은 총 자산의 0.10%에 불과한 부실 자산 비율로 견고하게 유지되었습니다. 회사는 10.9%의 레버리지 비율과 17.4%의 총 위험 기반 자본 비율로 강력한 자본 비율을 유지하고 있습니다.

Pacific Financial (PFLC) a annoncé un bénéfice net au premier trimestre 2025 de 2,4 millions de dollars, soit 0,24 dollar par action diluée, en hausse par rapport à 2,2 millions au quatrième trimestre 2024, mais en baisse par rapport à 2,7 millions au premier trimestre 2024. Le conseil d'administration a approuvé un plan de rachat d'actions de 5% d'une valeur de 5,3 millions de dollars et déclaré un dividende trimestriel de 0,14 dollar par action.

Points clés :

  • La marge nette d'intérêt a augmenté à 4,12 % contre 3,99 % au quatrième trimestre 2024
  • Les dépôts totaux ont augmenté de 6 % pour atteindre 1,07 milliard de dollars
  • Les dépôts de base ont augmenté de 61,2 millions de dollars (7 %)
  • Les dépôts sans intérêt représentent 36 % des dépôts totaux
  • Les prêts bruts en portefeuille ont atteint 707,0 millions de dollars

La qualité des actifs est restée solide avec des actifs non performants représentant 0,10 % du total des actifs. La société maintient des ratios de capital solides avec un ratio d'effet de levier de 10,9 % et un ratio total de capital fondé sur le risque de 17,4 %.

Pacific Financial (PFLC) meldete für das erste Quartal 2025 einen Nettogewinn von 2,4 Millionen US-Dollar bzw. 0,24 US-Dollar je verwässerter Aktie, was eine Steigerung gegenüber 2,2 Millionen im vierten Quartal 2024, aber einen Rückgang gegenüber 2,7 Millionen im ersten Quartal 2024 darstellt. Der Vorstand genehmigte einen Aktienrückkaufplan von 5% im Wert von 5,3 Millionen US-Dollar und erklärte eine Quartalsdividende von 0,14 US-Dollar je Aktie.

Wichtige Highlights:

  • Die Nettomarge stieg von 3,99 % im vierten Quartal 2024 auf 4,12 %
  • Die Gesamteinlagen wuchsen um 6 % auf 1,07 Milliarden US-Dollar
  • Kern-Einlagen stiegen um 61,2 Millionen US-Dollar (7 %)
  • Nicht verzinsliche Einlagen machen 36 % der Gesamteinlagen aus
  • Das Bruttokreditportfolio erreichte 707,0 Millionen US-Dollar

Die Vermögensqualität blieb mit notleidenden Krediten von 0,10 % der Gesamtvermögenswerte stabil. Das Unternehmen hält starke Kapitalquoten mit einer Verschuldungsquote von 10,9 % und einer risikobasierten Gesamtkapitalquote von 17,4 %.

Positive
  • Net income increased 10% quarter-over-quarter to $2.4 million
  • Net interest margin improved to 4.12% from 3.99% in previous quarter
  • Strong deposit growth of 6% to $1.07 billion
  • Board approved 5% stock buyback plan worth $5.3 million
  • Strong capital position with 17.4% total risk-based capital ratio
Negative
  • Net income decreased 10% year-over-year from $2.7 million in Q1 2024
  • Net interest margin declined from 4.38% in Q1 2024
  • $75,000 in net charge-offs during Q1 2025
  • Tangible common equity ratio declined to 8.6% from 9.0% year-over-year

ABERDEEN, Wash., April 25, 2025 (GLOBE NEWSWIRE) -- Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or the (“Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.4 million, or $0.24 per diluted share for the first quarter of 2025, compared to $2.2 million, or $0.21 per diluted share for the fourth quarter of 2024, and $2.7 million, or $0.26 per diluted share for the first quarter of 2024. Current quarter net income includes a provision for credit losses of $83,000, compared to the recapture of $103,000 from the allowance for credit losses for the fourth quarter of 2024, and a provision for credit losses of $33,000 for the first quarter of 2024. Except for year-end December 31, 2024 financials, all results are unaudited.

The Board of Directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on April 23, 2025. The dividend will be payable on May 23, 2025 to shareholders of record on May 9, 2025. Additionally, the Board of Directors has authorized an additional $5.3 million toward future stock repurchases, or approximately 5.0% of total shares outstanding.

“We are pleased with our first quarter results; operating earnings were solid and benefitted from strong core deposit growth, margin expansion and a lower cost of deposits as well as the closure of the residential mortgage division in late 2024. During the quarter, we saw good progress with our deposit growth initiative with core deposit growth of $61.2 million or 7%. We continue to benefit from our strong core deposit base, with non-interest bearing accounts representing 36% of total deposits. The expansion in our net interest margin was fueled by higher rates on loan production and on investment purchases, as well as a declining cost of funds. Cost of funds declined 7 basis points to 1.10%, despite continued rate pressure. Demand for lending continues to be tempered by the current level of interest rates and economic uncertainty.” said Denise Portmann, President and Chief Executive Officer.

“Our business model and strategies continue to be built on a culture of relationship banking with a strong foundation of sound credit quality lending standards. At quarter-end, our asset quality metrics remained strong, allowance for credit loss levels were solid and capital levels also remained strong. We believe the combination of our strong balance sheet, and prudent risk management will allow us to achieve sustainable growth and continue delivering results that benefit our stakeholders for the long term," said Portmann.

First Quarter 2025 Financial Highlights:

  • Return on average assets (“ROAA”) improved to 0.81%, compared to 0.74% for the fourth quarter 2024, and decreased from 0.95% for the first quarter 2024.
  • Return on average equity (“ROAE”) was 8.48%, compared to 7.27% from the preceding quarter, and 9.32% from the first quarter a year earlier.
  • Net interest income was $11.3 million, compared to $10.9 million for the fourth quarter of 2024, and $11.4 million for the first quarter of 2024.
  • Net interest margin (“NIM”) increased to 4.12%, compared to 3.99% from the preceding quarter, and 4.38% for the first quarter a year ago.
  • Provision for credit losses was $83,000 for the first quarter ended March 31, 2025, compared to a recapture of $103,000 for the preceding quarter and a provision of $33,000 in the first quarter a year ago.
  • Gross portfolio loan balances increased to $707.0 million at March 31, 2025, compared to $704.9 million at December 31, 2024, and increased 2%, or $12.8 million from $694.2 million one year earlier.
  • Total deposits increased $59.9 million, or 6%, to $1.07 billion at March 31, 2025 compared to the previous quarter and increased $78.9 million, or 8%, from one year earlier. Non-interest bearing deposits represent 36% of total deposits at March 31, 2025, and support a lower cost core deposits portfolio. Core deposits were 88% of total deposits at March 31, 2025.
  • Non-performing assets to total assets ratio remained low at 0.10%, or $1.2 million for the current quarter end and were 0.09% and $1.1 million three months earlier. Substandard loans decreased $41,000 to $2.7 million at March 31, 2025 and special mention assets declined $680,000 to $10.1 million at March 31, 2025.
  • Shareholder equity increased $3.1 million during the quarter largely due to net income and lower accumulated other comprehensive loss marks on the investment portfolio, offset by stock repurchases and dividend payments. Tangible book value per share was $10.33 at March 31, 2025, an increase from $9.80 at March 31, 2024.
  • Pacific Financial and Bank of the Pacific continue to exceed regulatory well-capitalized requirements. At March 31, 2025, Pacific Financial’s estimated leverage ratio was 10.9% and its estimated total risk-based capital ratio was 17.4%.

Balance Sheet Review

Total assets increased to $1.22 billion at March 31, 2025, compared to $1.15 billion at December 31, 2024, and $1.13 billion one year earlier.

Cash and cash equivalents increased $63.7 million to $143.8 million at March 31, 2025 from $80.2 million at December 31, 2024 and $91.3 million one year earlier. The increase largely relates to deposit growth during the first quarter.

Liquidity metrics continue to be strong and are managed to ensure adequate funding resources are available to meet customer demand. At March 31, 2025, the Company’s on and off-balance sheet sources totaled $549.7 million. This represents a coverage ratio of short-term funds available to uninsured and uncollateralized deposits of 212%. Included in available sources are collateralized credit lines the Company has established with the Federal Home Loan Bank of Des Moines (FHLB) and the Federal Reserve Bank of San Francisco, as well as unsecured borrowing lines from various correspondent banks. There were no balance outstanding on any of these facilities at quarter-end. Uninsured or uncollateralized deposits were 24% of total deposits at March 31, 2025.

Investment securities increased $0.9 million to $305.4 million, compared to $304.5 million at December 31, 2024 and increased $16.9 million compared to the like period a year ago. The largest investment category was collateralized mortgage obligations which accounted for 51% of the investment portfolio at March 31, 2025, compared to 48% at December 31, 2024 and 45% one year earlier. The yield on the investment portfolio increased 15 basis points during the current quarter to 3.60% from 3.45% for both the prior quarter and the first quarter a year ago. During the quarter, the bank implemented a $9.0 million restructure with a loss of $165,000; improving yields by over 200 basis points on those investment funds. The adjusted duration of the portfolio was 4.31 years at March 31, 2025 compared to 4.35 years at March 31, 2024.

Gross loans balances increased $2.1 million, to $707.0 million at March 31, 2025, compared to $704.9 million at December 31, 2024. During the first quarter of 2025, growth in new owner-occupied commercial real estate and multi-family loans more than offset the decline in commercial & agriculture, construction & development and residential 1-4 family loans. Year-over-year loan growth was 2%, or $12.8 million, with the largest increases in multi-family loans and owner-occupied commercial real estate increasing $17.9 million and $9.2 million, respectively. Loans classified as commercial real estate for regulatory concentration purposes totaled $263.4 million at March 31, 2025, or 189% of total risk-based capital.

The Company continues to manage concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. In addition, the loan portfolio continues to be well-diversified and is collateralized with assets predominantly within the Company’s Western Washington and Oregon markets.

Credit quality: Nonperforming assets remain minimal at $1.2 million, or 0.10% of total assets at March 31, 2025, compared to $1.1 million, or 0.09% at December 31, 2024. Accruing loans past due more than 30 days represent only 0.04% of total loans. Total loans designated as special mention decreased to $10.1 million at March 31, 2025 compared to $10.8 million at December 31, 2024. The Company has zero other real estate owned as of March 31, 2025.

Allowance for credit losses (“ACL”) remained at $8.9 million, or 1.26% of gross loans at March 31, 2025. A provision for credit losses of $83,000 was recorded in the current quarter resulting from $75,000 in net charge-offs and loan growth. This compares to a recapture for credit losses of $103,000 in the fourth quarter of 2024 and a provision for credit losses of $33,000 for the first quarter one year earlier.  

Total deposits increased to $1.07 billion at March 31, 2025 from $1.01 billion the prior quarter and $995.8 million one year earlier. The company’s strong core deposit base continues to positively impact the Bank’s net interest margin and operating results. Non-interest bearing deposits continued to remain the largest category of deposits and represented 36% of deposits at March 31, 2025. Additionally, interest-bearing demand and money market deposits represented 23% and 18% of total deposits, respectively, at March 31, 2025, and CDs as a percentage of deposits declined during the quarter, after increasing since fourth quarter 2022. CD balances were 12% of total deposits for the current quarter compared to 13% at the prior quarter.

Shareholders’ equity was $116.9 million at March 31, 2025, compared to $113.9 million at December 31, 2024, and $114.7 million at March 31, 2024. The increase in shareholders’ equity during the current quarter was primarily due to net income and a decrease in unrealized losses on available-for-sale securities with dividend payments and stock repurchases partially offsetting those increases. Net unrealized losses (after-tax) included in shareholders’ equity on available-for-sale securities were $14.2 million at March 31, 2025 compared to $17.5 million at December 31, 2024 and $16.6 million at March 31, 2024. During the quarter, the Company completed its repurchase of shares under the stock repurchase plan announced in October 2024.

Book value per common share was $11.67 at March 31, 2025, compared to $11.26 at December 31, 2024, and $11.10 at March 31, 2024. The Company’s tangible common equity ratio declined to 8.6% at March 31, 2025 relative to 8.8% the prior quarter and 9.0% at March 31, 2024. Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the Company’s leverage ratio at 10.9% and total risk-based capital ratio at 17.4% as of March 31, 2025. These regulatory capital ratios are estimates, pending completion and filing of regulatory reports.

Income Statement Review

Net interest income increased $439,000 to $11.3 million for the first quarter of 2025, compared to $10.9 million for the fourth quarter of 2024, and decreased $111,000 compared to $11.4 million for the first quarter a year ago. The change in the current quarter compared to the preceding quarter reflects the impact of higher loan and investment yields, lower deposit and borrowing costs as well as growth in total interest earning assets resulting from core deposit growth during the quarter. The decrease in net interest income compared to the year ago quarter primarily reflects a rise in funding costs and a decrease in yields on interest-bearing cash as the FOMC decreased the federal funds rate 100 basis points in 2024.

The Bank’s net interest margin improved to 4.12% for the quarter ended March 31, 2025 from 3.99% the prior quarter and declined from 4.38% one year earlier. The increase from the prior quarter resulted from both a 7 basis points decrease in costs of funds combined with a 13 basis point increase in loan yields and a 15 basis point increase in investment yields which was partially offset by a 34 basis point decrease in yields on interest-earning cash balances. Loan yields improved as longer term fixed and variable rate loans (originated in a lower rate environment) were renewed at higher rates. In addition, average loan yields on new originations were at higher yields than the current loan portfolio yield. Investment yields improved partially due to $32.3 million of investment purchases at higher yields over the last 6 months including a $9.0 million restructure that replaced lower yielding investments with higher yielding investments. The Bank continues to actively monitor and manage its costs of funds and even in a competitive environment was able to decrease rates on specific deposit categories during the first quarter. In addition, the high percentage of non-interest bearing deposits at 36% continues to help reduce volatility in deposit costs.

Noninterest income decreased to $1.2 million for the current quarter, compared to $1.8 million for the linked quarter and $1.4 million a year earlier. The decrease compared to the linked quarter was primarily due to a loss on the sale of investment securities of $165,000 during the current quarter and a reduction in gain on sale of loans compared to the prior quarter as a result of closing the mortgage division during late 2024. In addition, a death benefit from a bank-owned life insurance policy realized in the fourth quarter of 2024 also contributed to the variance.   Fee and service charge income decreased in the first quarter of 2025 to $1.1 million compared to $1.3 million in the previous quarter and $1.1 million in the first quarter of 2024.

Noninterest expenses decreased to $9.4 million for the first quarter of 2025 compared to $10.1 million for the prior quarter and $9.5 million for the first quarter of 2024. The decrease from the prior quarter was primarily related to reductions in mortgage lending salary and employee benefit costs and other mortgage lending costs resulting from the closure of the mortgage division in late 2024. The prior quarter included $773,000 in costs associated with severance and retention payments, lease termination costs and software contract termination expenses related to closing the mortgage division and $602,000 in other mortgage division costs.

The company’s efficiency ratio decreased to 75.86% for the first quarter of 2025, compared to 79.80% in the preceding quarter and increased from 74.21% in the same quarter a year ago.

Income tax expense: Federal and Oregon state income tax expenses totaled $544,000 for the current quarter, and $492,000 for the preceding quarter, resulting in effective tax rates of 18.6% and 18.5%, respectively. These income tax expenses reflect the benefits of tax exempt income on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank-owned life insurance.


FINANCIAL HIGHLIGHTS (unaudited)Quarter Ended Change From
 
(In 000s, except per share data)             
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024 Mar 31, 2024
  2025 2024 2024  $% $%
Earnings Ratios & Data             
Net Income$2,377 $2,162 $2,650  $215 10%$(273)-10%
Return on average assets 0.81%  0.74%  0.95%   0.07%   -0.14% 
Return on average equity 8.48%  7.27%  9.32%   1.21%   -0.84% 
Efficiency ratio (1) 75.86%  79.80%  74.21%   -3.94%  1.65% 
Net-interest margin %(2) 4.12%  3.99%  4.38%   0.13%   -0.26% 
              
Share Ratios & Data             
Basic earnings per share$0.24 $0.21 $0.26  $0.03 14%$(0.02)-8%
Diluted earning per share$0.24 $0.21 $0.26  $0.03 14%$(0.02)-8%
Book value per share(3)$11.67 $11.26 $11.10  $0.41 4%$0.57 5%
Tangible book value per share(4)$10.33 $9.93 $9.80  $0.40 4%$0.53 5%
Common shares outstanding 10,020  10,110  10,336   (90)-1% (316)-3%
PFLC stock price$10.90 $12.45 $10.15  $(1.55)-12%$0.75 7%
Dividends paid per share$0.14 $0.14 $0.14  $- 0%$- 0%
              
Balance Sheet Data             
Assets$1,218,969 $1,153,563 $1,134,586  $65,406 6%$84,383 7%
Portfolio Loans$707,034 $704,865 $694,229  $2,169 0%$12,805 2%
Deposits$1,074,646 $1,014,731 $995,756  $59,915 6%$78,890 8%
Investments$305,377 $304,502 $288,439  $875 0%$16,938 6%
Shareholders equity$116,949 $113,856 $114,725  $3,093 3%$2,224 2%
              
Liquidity Ratios             
Short-term funding to uninsured             
and uncollateralized deposits 212%  217%  251%   -5%  -39% 
Uninsured and uncollateralized             
deposits to total deposits 24%  25%  22%   -1%  2% 
Portfolio loans to deposits ratio 66%  69%  69%   -3%  -3% 
              
Asset Quality Ratios             
Non-performing assets to assets 0.10%  0.09%  0.13%   0.01%   -0.03% 
Non-accrual loans to portfolio loans 0.17%  0.16%  0.22%   0.01%   -0.05% 
Loan losses to avg portfolio loans 0.04%  -0.04% 0.02%   0.08%   0.02% 
ACL to portfolio loans 1.26%  1.26%  1.24%   0.00%   0.02% 
              
Capital Ratios (PFC)             
Total risk-based capital ratio 17.4%  17.5%  17.6%   -0.1%  -0.2% 
Tier 1 risk-based capital ratio 16.3%  16.3%  16.5%   0.0%   -0.2% 
Common equity tier 1 ratio 14.7%  14.7%  14.8%   0.0%   -0.1% 
Leverage ratio 10.9%  11.3%  11.6%   -0.4%  -0.7% 
Tangible common equity ratio 8.6%  8.8%  9.0%   -0.2%  -0.4% 
              
(1) Non-interest expense divided by net interest income plus noninterest income.
(2) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
(3) Book value per share is calculated as the total common shareholders' equity divided by the period ending number of common stock shares outstanding.
(4) Tangible book value per share is calculated as the total common shareholders' equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding.
              
              
INCOME STATEMENT (unaudited)Quarter Ended Change From
 
($ in 000s)             
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024 Mar 31, 2024
  2025 2024 2024  $% $%
Interest Income             
Loan interest & fee income$10,304 $10,340 $10,224  $(36)0%$80 1%
Interest earning cash income 1,208  942  935   266 28% 273 29%
Investment income 2,678  2,590  2,475   88 3% 203 8%
Interest Income 14,190  13,872  13,634   318 2% 556 4%
              
Interest Expense             
Deposits interest expense 2,694  2,796  1,991   (102)-4% 703 35%
Other borrowings interest expense 206  225  242   (19)-8% (36)-15%
Interest Expense 2,900  3,021  2,233   (121)-4% 667 30%
Net Interest Income 11,290  10,851  11,401   439 4% (111)-1%
Provision(recapture) for credit losses 83  (103) 33   186 -181% 50 152%
Net Interest Income after provision 11,207  10,954  11,368   253 2% (161)-1%
              
Non-Interest Income             
Fees and service charges 1,117  1,267  1,101   (150)-12% 16 1%
Gain on sale of investments, net (165) -  -   (165)-100% (165)-100%
Gain on sale of loans, net (2) 267  152   (269)-101% (154)-101%
Income on bank-owned insurance 191  250  180   (59)-24% 11 6%
Other non-interest income 12  (9) 11   21 -233% 1 9%
Non-Interest Income 1,153  1,775  1,444   (622)-35% (291)-20%
              
Non-Interest Expense             
Salaries and employee benefits 5,969  6,288  5,994   (319)-5% (25)0%
Occupancy 592  768  641   (176)-23% (49)-8%
Furniture, Fixtures & Equipment 302  289  284   13 4% 18 6%
Marketing & donations 153  149  154   4 3% (1)-1%
Professional services 299  267  336   32 12% (37)-11%
Data Processing & IT 1,218  1,380  1,191   (162)-12% 27 2%
Other 906  934  933   (28)-3% (27)-3%
Non-Interest Expense 9,439  10,075  9,533   (636)-6% (94)-1%
Income before income taxes 2,921  2,654  3,279   267 10% (358)-11%
Provision for income taxes 544  492  629   52 11% (85)-14%
Net Income$2,377 $2,162 $2,650  $215 10% (273)-10%
              
Effective tax rate 18.6%  18.5%  19.2%   0.1%   -0.6% 


BALANCE SHEET (unaudited)Period Ended
 Change from
 % of Total
($ in 000s)  
                  
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024 Mar 31, 2024 Mar 31,Dec 31,Mar 31,
  2025 2024 2024   $% $% 202520242024
Assets                 
Cash on hand and in banks$18,975 $18,136 $15,597  $839 5%$3,378 22% 2%2%1%
Interest earning deposits 124,854  62,015  75,705   62,839 101% 49,149 65% 10%5%7%
Investment securities 305,377  304,502  288,439   875 0% 16,938 6% 25%26%25%
Loans held-for-sale -  -  -   - -100% - -100% 0%0%0%
Portfolio Loans, net of deferred fees 706,439  704,248  693,461   2,191 0% 12,978 2% 58%61%61%
Allowance for credit losses (8,890) (8,851) (8,580)  (39)0% (310)4% -1%-1%-1%
Net loans 697,549  695,397  684,881   2,152 0% 12,668 2% 57%60%60%
Premises & equipment 16,702  16,952  15,283   (250)-1% 1,419 9% 1%1%1%
Goodwill & Other Intangibles 13,435  13,435  13,435   - 0% - 0% 1%1%1%
Bank-owned life Insurance 28,204  28,333  27,678   (129)0% 526 2% 2%2%2%
Other assets 13,873  14,793  13,568   (920)-6% 305 2% 2%3%3%
Total Assets$1,218,969 $1,153,563 $1,134,586  $65,406 6%$84,383 7% 100%100%100%
                  
Liabilities & Shareholders' Equity                 
Deposits$1,074,646 $1,014,731 $995,756  $59,915 6%$78,890 8% 88%88%88%
Borrowings 13,403  13,403  13,403   - 0% - 0% 1%1%1%
Other liabilities 13,971  11,573  10,702   2,398 21% 3,269 31% 1%1%1%
Shareholders' equity 116,949  113,856  114,725   3,093 3% 2,224 2% 10%10%10%
Liabilities & Shareholders' Equity$1,218,969 $1,153,563 $1,134,586  $65,406 6%$84,383 7% 100%100%100%
                  
                  
INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited)Period Ended
 Change from
 % of Total
  
($ in 000s)                 
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024Mar 31, 2024 Mar 31,Dec 31,Mar 31,
  2025 2024 2024  $% $% 202520242024
Investment Securities                 
Collateralized mortgage obligations$156,105 $147,262 $129,213  $8,843 6%$26,892 21% 51%48%45%
Mortgage backed securities 40,396  46,112  37,753   (5,716)-12% 2,643 7% 13%15%13%
U.S. Government and agency securities68,392  67,716  77,826   676 1% (9,434)-12% 22%22%27%
Municipal securities 40,484  43,412  43,647   (2,928)-7% (3,163)-7% 14%15%15%
Investment Securities$305,377 $304,502 $288,439  $875 0%$16,938 6% 100%100%100%
                  
Held to maturity securities$40,718 $41,442 $49,132  $(724)-2%$(8,414)-17% 13%14%17%
Available for sale securities$264,659 $263,060 $239,307  $1,599 1%$25,352 11% 87%86%83%
                  
Government & Agency securities$264,866 $261,063 $244,762  $3,803 1%$20,104 8% 87%86%85%
AAA, AA, A rated securities$39,822 $42,773 $43,008  $(2,951)-7%$(3,186)-7% 13%14%15%
Non-rated securities$689 $666 $669  $23 3%$20 3% 0%0%0%
                  
AFS Unrealized Gain (Loss)$(18,284)$(22,437)$(21,464) $4,153 -19%$3,180 -15% -6%-7%-7%
                  
                  
LIQUIDITY (unaudited)Period Ended
 Change from
 % of Deposits
($ in 000s)  
                  
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024Mar 31, 2024 Mar 31,Dec 31,Mar 31,
  2025 2024 2024  $% $% 202520242024
Short-term Funding                 
Cash and cash equivalents$129,616 $67,951 $80,052  $61,665 91%$49,564 62% 12%7%8%
Unencumbered AFS Securities 104,237  158,472  139,144   (54,235)-34% (34,907)-25% 10%16%14%
Secured lines of Credit (FHLB, FRB) 315,876  324,187  337,553   (8,311)-3% (21,677)-6% 29%32%34%
Short-term Funding$549,729 $550,610 $556,749  $(881)0%$(7,020)-1% 51%54%56%
                  
                  
PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited)Period Ended
 Change from
 % of Total
  
($ in 000s)                 
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024Mar 31, 2024 Mar 31,Dec 31,Mar 31,
  2025 2024 2024  $% $% 202520242024
Portfolio Loans                 
Commercial & agriculture$70,209 $75,240 $71,320  $(5,031)-7%$(1,111)-2% 10%11%10%
Real estate:                 
Construction and development 34,669  42,725  51,978   (8,056)-19% (17,309)-33% 5%6%7%
Residential 1-4 family 101,810  103,489  99,808   (1,679)-2% 2,002 2% 14%15%14%
Multi-family 72,313  68,978  54,430   3,335 5% 17,883 33% 10%10%8%
CRE -- owner occupied 176,850  165,120  167,631   11,730 7% 9,219 5% 25%23%24%
CRE -- non owner occupied 160,022  159,582  157,322   440 0% 2,700 2% 23%23%23%
Farmland 27,411  26,864  26,752   547 2% 659 2% 4%4%4%
Consumer 63,750  62,867  64,988   883 1% (1,238)-2% 9%8%10%
Portfolio Loans 707,034  704,865  694,229   2,169 0% 12,805 2% 100%100%100%
Less: ACL (8,890) (8,851) (8,580)           
Less: deferred fees (595) (617) (768)           
Net loans$697,549 $695,397 $684,881            
                  
Regulatory Commercial Real Estate$263,424 $267,857 $261,155  $(4,433)-2%$2,269 1% 37%38%38%
Total Risk Based Capital(1)$139,133 $139,458 $139,255  $(325)0%$(122)0%    
CRE to Risk Based Capital(1) 189%  192%  188%    -3%  1%    
                  
                  
CRE--MULTI-FAMILY & NON OWNER OCCUPIED COMPOSITION (unaudited)Period Ended
 Change from
 % of Total
  
($ in 000s)                 
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024Mar 31, 2024 Mar 31,Dec 31,Mar 31,
  2025 2024 2024  $% $% 202520242024
Collateral Composition(2)                 
Multifamily$76,421 $73,575 $61,085  $2,846 4%$15,336 25% 31%30%27%
Retail 36,616  36,813  36,192   (197)-1% 424 1% 15%15%16%
Hospitality 31,772  31,369  32,468   403 1% (696)-2% 13%13%14%
Office 23,975  23,921  23,730   54 0% 245 1% 10%10%10%
Mixed Use 22,706  22,662  22,204   44 0% 502 2% 9%9%10%
Mini Storage 22,654  25,028  23,438   (2,374)-9% (784)-3% 9%10%10%
Industrial 15,230  14,723  13,348   507 3% 1,882 14% 6%6%6%
Warehouse 8,146  7,531  7,483   615 8% 663 9% 3%3%3%
Special Purpose 6,874  6,921  7,058   (47)-1% (184)-3% 3%3%3%
Other 2,648  3,155  3,259   (507)-16% (611)-19% 1%1%1%
Total$247,042 $245,698 $230,265  $1,344 1%$16,777 7% 100%100%100%
                  
(1) Bank of the Pacific
(2) Includes loans in process of construction
                  
                  
CREDIT QUALITY (unaudited)Period Ended
 Change from
    
     
($ in 000s)                 
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024 Mar 31, 2024    
  2025 2024 2024  $% $%    
Risk Rating Distribution                 
Pass$694,240 $691,350 $684,779  $2,890 0%$9,461 1%    
Special Mention 10,131  10,811  4,771   (680)-6% 5,360 112%    
Substandard 2,663  2,704  4,679   (41)-2% (2,016)-43%    
Portfolio Loans$707,034 $704,865 $694,229  $2,169 0%$12,805 2%    
                  
Nonperforming Assets                 
Nonaccruing loans 1,225  1,094  1,526  $131 12% (301)-20%    
Other real estate owned -  -  -   - 0% - 0%    
Nonperforming Assets$1,225 $1,094 $1,526  $131 12% (301)-20%    
                  
Credit Metrics                 
Classified loans1 to portfolio loans 0.38%  0.38%  0.67%   0.00%   -0.29%     
ACL to classified loans1 333.83%  327.33%  183.37%   6.50%   150.46%     
Loans past due 30+ days to portfolio loans2 0.04%  0.14%  0.10%   -0.10%   -0.06%     
Nonperforming assets to total assets 0.10%  0.09%  0.13%   0.01%   -0.03%     
Nonaccruing loans to portfolio loans 0.17%  0.16%  0.22%   0.01%   -0.05%     
                  
(1) Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower's financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected.
(2) Excludes non-accrual loans
 
                  
DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited)Period Ended
 Change from
 % of Total
  
($ in 000s)                 
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024 Mar 31, 2024 Mar 31,Dec 31,Mar 31,
  2025 2024 2024  $% $% 202520242024
Deposits                 
Interest-bearing demand$243,363 $194,526 $177,735  $48,837 25%$65,628 37% 23%19%18%
Money market 197,184  193,324  169,095   3,860 2% 28,089 17% 18%19%17%
Savings 117,130  115,520  129,796   1,610 1% (12,666)-10% 11%11%13%
Time deposits (CDs) 134,226  135,485  114,644   (1,259)-1% 19,582 17% 12%13%12%
Total interest-bearing deposits 691,903  638,855  591,270   53,048 8% 100,633 17% 64%62%60%
Non-interest bearing demand 382,743  375,876  404,486   6,867 2% (21,743)-5% 36%38%40%
Total deposits$1,074,646 $1,014,731 $995,756  $59,915 6%$78,890 8% 100%100%100%
                  
Insured Deposits$630,940 $629,600 $645,784  $1,340 0%$(385,920)-60% 59%62%65%
Collateralized Deposits 183,842  131,327  127,733   52,515 40% 56,109 44% 17%13%13%
Uninsured Deposits 259,864  253,804  222,239   6,060 2% 408,701 184% 24%25%22%
Total Deposits$1,074,646 $1,014,731 $995,756  $59,915 6%$78,890 8% 100%100%100%
                  
Consumer Deposits$472,839 $466,826 $470,442  $6,013 1%$2,397 1% 44%46%47%
Business Deposits 407,974  406,308  387,917   1,666 0% 20,057 5% 38%40%39%
Public Deposits 193,833  141,597  137,397   52,236 37% 56,436 41% 18%14%14%
Total Deposits$1,074,646 $1,014,731 $995,756  $59,915 6%$78,890 8% 100%100%100%


NET INTEREST MARGIN (unaudited)Quarter Ended Change From
 
($ in 000s)             
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024 Mar 31, 2024
  2025 2024 2024  $% $%
              
Average Interest Bearing Balances            
Portfolio loans$701,071 $703,811 $688,918  $(2,740)0%$12,153 2%
Loans held for sale$- $1,033 $595  $(1,033)-100%$(595)-100%
Investment securities$305,074 $302,501 $292,375  $2,573 1%$12,699 4%
Interest earning cash$110,007 $78,296 $68,873  $31,711 41%$41,134 60%
Total interest-earning assets$1,116,152 $1,085,641 $1,050,761  $30,511 3%$65,391 6%
Non-interest bearing deposits$378,470 $388,227 $395,004  $(9,757)-3%$(16,534)-4%
Interest-bearing deposits$675,122 $628,475 $590,410  $46,647 7%$84,712 14%
Total Deposits$1,053,592 $1,016,702 $985,414  $36,890 4%$68,178 7%
Borrowings$13,403 $13,403 $13,403  $- 0%$- 0%
Total interest-bearing liabilities$688,525 $641,878 $603,813  $46,647 7%$84,712 14%
              
Yield / Cost $(1)             
Portfolio loans$10,316 $10,336 $10,233  $(20)0%$83 1%
Loans held for sale$- $16 $5  $(16)-100%$(5)-100%
Investment securities$2,710 $2,622 $2,507  $88 3%$203 8%
Interest-bearing cash$1,208 $942 $935  $266 28%$273 29%
Total interest-earning assets$14,234 $13,916 $13,680  $318 2%$554 4%
Interest-bearing deposits$2,694 $2,796 $1,991  $(102)-4%$703 35%
Borrowings$206 $225 $242  $(19)-8%$(36)-15%
Total interest-bearing liabilities$2,900 $3,021 $2,233  $(121)-4%$667 30%
Net interest income$11,334 $10,895 $11,447  $439 4%$(113)-1%
              
Yield / Cost %(1)             
Yield on portfolio loans 5.97% 5.84% 5.97%  0.13%  0.00% 
Yield on investment securities 3.60% 3.45% 3.45%  0.15%  0.15% 
Yield on interest-bearing cash 4.45% 4.79% 5.45%  -0.34%  -1.00% 
Cost of interest-bearing deposits 1.62% 1.77% 1.36%  -0.15%  0.26% 
Cost of borrowings 6.23% 6.68% 7.26%  -0.45%  -1.03% 
Cost of deposits and borrowings 1.10% 1.17% 0.90%  -0.07%  0.20% 
              
Yield on interest-earning assets 5.17% 5.10% 5.24%  0.07%  -0.07% 
Cost of interest-bearing liabilities 1.71% 1.87% 1.49%  -0.16%  0.22% 
Net interest spread 3.46% 3.23% 3.75%  0.23%  -0.29% 
Net interest margin 4.12% 3.99% 4.38%  0.13%  -0.26% 
              
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.   
              
              
ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited)Quarter Ended Change From
 
($ in 000s)             
  Mar 31, Dec 31, Mar 31,  Dec 31, 2024 Mar 31, 2024
  2025 2024 2024  $% $%
Allowance for Credit Losses             
Beginning of period balance$8,851 $8,897 $8,530  $(46)-1%$321 4%
Impact of CECL Adoption (ASC 326) -  -  -   - -100% - -100%
Charge-offs (75) (32) (35)  (43)134% (40)114%
Recoveries -  105  2   (105)-100% (2)-100%
Net (charge-off) recovery (75) 73  (33)  (148)-203% (42)127%
Provision (recapture) 114  (119) 83   233 -196% 31 37%
End of period balance$8,890 $8,851 $8,580  $39 0%$310 4%
              
Net charge-off (recovery) to             
average portfolio loans 0.04% -0.04% 0.02%  0.08%  0.02% 
ACL to portfolio loans 1.26% 1.26% 1.24%  0.00%  0.02% 
              
Allowance for unfunded loans             
Beginning of period balance$540 $524 $698  $16 3%$(158)-23%
Impact of CECL Adoption (ASC 326) -  -  -   - -100% - -100%
Provision (recapture) (31) 16  (50)  (47)-294% 19 -38%
End of period balance$509 $540 $648  $(31)-6%$(139)-21%


ABOUT PACIFIC FINANCIAL CORPORATION

Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At March 31, 2025, the Company had total assets of $1.22 billion and operated fifteen branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in the communities of Clatsop and Clackamas counties in Oregon. The Company also operated loan production offices in the communities of Burlington, Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.

Cautions Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company’s operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. Any forward-looking statements in this communication are based on information at the time the statement is made. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

Contacts:
  Denise Portmann, President & CEO
  Carla Tucker, EVP & CFO
  360.533.8873


FAQ

What is the significance of PFLC's 5% stock buyback plan announced in Q1 2025?

PFLC's Board authorized $5.3 million for stock repurchases, representing 5% of total shares outstanding, demonstrating confidence in the company's financial position and commitment to returning value to shareholders.

How did PFLC's Q1 2025 earnings compare to previous quarters?

PFLC earned $2.4 million ($0.24/share) in Q1 2025, up from $2.2 million ($0.21/share) in Q4 2024, but down from $2.7 million ($0.26/share) in Q1 2024.

What was PFLC's deposit growth in Q1 2025?

Total deposits increased by $59.9 million (6%) to $1.07 billion, with core deposits representing 88% of total deposits and non-interest bearing deposits at 36%.

How strong is PFLC's asset quality as of Q1 2025?

Asset quality remains strong with non-performing assets at just 0.10% of total assets ($1.2 million) and an allowance for credit losses at 1.26% of gross loans.
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Pacific Fnl Corp

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PFLC Latest News

Jan 31, 2025
Pacific Financial Corp Earns $2.2 Million, or $0.21 per Diluted Share for Fourth Quarter 2024; Reports Fiscal 2024 Earnings of $9.5 Million, or $0.92 per Diluted Share; Declares Quarterly Cash Dividend of $0.14 per Share
Oct 25, 2024
Pacific Financial Corp Earns $2.6 Million, or $0.25 per Diluted Share for Third Quarter 2024; Tangible Book Value Per Share Up 6.6% During Quarter; Board of Directors Declares Quarterly Cash Dividend of $0.14 per Share
Oct 24, 2024
Synergy by Association Announces Election of Terri McKinnis to Board of Directors
Aug 19, 2024
Bank of the Pacific Launches New Location in Lake Oswego, Oregon
Jul 26, 2024
Pacific Financial Corp Earns $2.1 Million, or $0.21 per Diluted Share, for Second Quarter 2024; Net Interest Margin Remains Strong During the Second Quarter at 4.15%; Board of Directors Declares Quarterly Cash Dividend of $0.14 per Share

PFLC Stock Data

111.21M
10.39M
0.37%
Banks - Regional
Financial Services
Link
United States
Aberdeen