Pacific Financial Corp Earns $2.9 Million, or $0.28 per Diluted Share, for Fourth Quarter 2023, and Record Earnings of $14.6 Million, or $1.40 per Diluted Share, for the full year ended December 31, 2023; Declares Quarterly Cash Dividend of $0.14 per Share

Rhea-AI Summary

Pacific Financial Corporation (PFLC) reported a net income of $2.9 million for the fourth quarter of 2023, with a slight decline from the previous quarter. The full year net income was $14.6 million, showing significant growth compared to the previous year. The board declared a quarterly cash dividend of $0.14 per share. The company's president highlighted strong earnings and loan growth, with a solid credit quality.

ABERDEEN, Wash., Jan. 26, 2024 (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 $2.9 million, or $0.28 per diluted share for the fourth quarter of 2023, compared to $3.6 million, or $0.35 per diluted share for the third quarter of 2023, and $4.7 million, or $0.45 per diluted share for the fourth quarter of 2022. For the year ended December 31, 2023, net income was $14.6 million, or $1.40 per diluted share, compared to $10.9 million, or $1.04 per diluted share, for the full year of 2022. All results are unaudited. 

The board of directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on January 24, 2024. The dividend will be payable on February 23, 2024 to shareholders of record on February 9, 2024.

“We’re pleased to report another solid quarter, fueling record earnings for the full year of 2023,” said Denise Portmann, President and Chief Executive Officer. “Fourth quarter earnings benefitted from higher yields on interest earning assets as well as strong loan growth, and our full year results were highlighted by pre-provision earnings growth, driven by strong net interest income growth and a wider net interest margin. Current quarter net interest margin was at 4.34%, only a slight decline of 3 basis points from the prior quarter. Credit quality remains solid, with continued low levels of adversely classified and nonperforming loans.”

“Loan growth was strong, increasing 7% year-over-year and 2% over the linked quarter, and we continue to be optimistic about loan demand in our markets,” said Portmann. “We recently announced a new commercial banking center in Lake Oswego, Oregon, supported by a new team of seven seasoned commercial bankers who have established ties to the Portland market and its community. We look forward to the opportunities this new market presents and to establishing new customer relationships within the greater Portland region. This expansion into these new markets aligns with our long-term goals and strategic plans.”

Fourth Quarter 2023 Financial Highlights:

• Return on average assets (“ROAA”) was 1.02%, compared to 1.21% for the third quarter 2023, and 1.41% for the fourth quarter 2022.
• Return on average equity (“ROAE”) was 10.88%, compared to 13.16% from the preceding quarter, and 18.70% from the fourth quarter a year earlier.
• Net interest income was $11.7 million, compared to $12.3 million for the third quarter of 2023, and $12.9 million for the fourth quarter 2022.
• Net interest margin (“NIM”) contracted 3 basis points to 4.34%, compared to 4.37% from the preceding quarter, and expanded 22 basis points from 4.12% for the fourth quarter a year ago.
• Provision for credit losses was $111,000 compared to $244,000 for the preceding quarter and no provision in the fourth quarter a year ago.
• Gross loans balances increased $13.4 million, or 2%, to $685.3 million at December 31, 2023, compared to $672.0 from the preceding quarter end and increased 7%, or $44.6 million, compared to $640.7 million at December 31, 2022.  
• Total deposits declined $42.0 million to $1.01 billion, compared to $1.05 billion from the third quarter 2023, with core deposits representing 90% of total deposits at December 31, 2023. Non-interest bearing deposits represented 41% of total deposits at December 31, 2023.
• Asset quality remains solid with nonperforming assets to total assets at 0.06%, compared to nonperforming assets to total assets at 0.10% for the preceding quarter, and 0.07% at December 31, 2022.
• At December 31, 2023, Pacific Financial continued to exceed regulatory well-capitalized requirements with a leverage ratio of 11.3% and a total risk-based capital ratio of 17.7%.
  

Income Statement Review

Net interest income declined 5% to $11.7 million for the current quarter, compared to $12.3 million for the third quarter of 2023, and declined 10% from $12.9 million for the fourth quarter of 2022.   For the current quarter, interest and fees on loans continued to increase as a result of both balance and yield increases. These increases were partially offset by deposit interest expense increases as well as the decrease in interest income on interest bearing bank balances. For the year ended December 31, 2023, net interest income increased 20%, or $8.3 million, to $49.2 million compared to $40.9 million for the year 2022.

Net interest margin (NIM) contracted 3 basis points to 4.34% for the fourth quarter of 2023, compared to 4.37% for the third quarter of 2023, primarily due to a higher cost of funds. The NIM expanded 22 basis points in the current quarter compared to 4.12% for the fourth quarter of 2022. Higher market interest rates during most of the year combined with growth of investments and loan balances positively impacted NIM for the current quarter and for the year ended December 31, 2023. For the year ended December 31, 2023, the NIM expanded 110 basis points to 4.39% from 3.29% for the year ended December 31, 2022.

The increase in average yields on interest-earning assets during the current quarter and for the year 2023 reflects the benefit of variable rate interest-earning assets repricing higher, as well as new loans being originated at higher interest rates. For the current quarter, loan yields increased 9 basis points to 5.80% compared to the preceding quarter of 5.71%, and increased 62 basis points from 5.18% from the fourth quarter 2022. In addition, the yield on interest-bearing bank deposits was 5.42% for the current quarter, compared to 5.35% for the preceding quarter, and 3.72% for the fourth quarter 2022. The Bank’s total cost of funds increased to 0.83% for the current quarter, compared to 0.72% for the preceding quarter, and 0.14% for the fourth quarter 2022. Our deposit offering rates have remained relatively unchanged since end of May 2023.

Noninterest income decreased to $1.5 million for the current quarter, compared to $1.6 million for the linked quarter and for the fourth quarter a year earlier. On a year-over-year basis, the company’s focused initiative on fee revenue growth in 2023, in which deposit service charges and other related fees were increased consistent with product pricing in our market, has positively impacted service charges on deposits. These service charges increased $354,000 or 22% from a year ago. Higher mortgage interest rates and housing prices during most of 2023 continued to negatively impact loan origination volumes for our mortgage banking division and, as a result, gain-on-sale of loans remained at the low end of historic levels. For the year ended December 31, 2023, noninterest income declined 15% to $6.2 million compared to $7.2 million for the year ended December 31, 2022, primarily due to lower gain on sale of loans.

Noninterest expense increased 4% to $9.5 million for the fourth quarter of 2023, compared to $9.1 million for the third quarter of 2023, and increased 10% from $8.6 million for the fourth quarter of 2022. Current quarter increases compared to the linked quarter and quarter a year ago were primarily a result of increases in salary and employee benefit costs from salary, recruitment and other hiring costs for the new commercial banking team as well as increased occupancy costs from the relocation of the Vancouver Commercial Banking Center and the Olympia branch. In addition, compared to the quarter a year ago, marketing, professional services and state and local taxes were up for the current quarter.

Noninterest expense for the year ended December 31, 2023 increased 5% to $36.9 million compared to $35.0 million for 2022, primarily due to increased salary and employee benefits, occupancy, FDIC insurance premiums, state and local taxes and data processing costs.   Salary expenses increased by 2% for the full year of 2023 compared to the full year of 2022. Salary expenses comprise a large portion of non-interest expenses and continue to be impacted by competitive recruiting and wage pressures. In addition, similar to the quarter, year-over-year salary expenses were also impacted by recruiting and ongoing costs related to the new commercial banking team and an overall increase in the number of employees. Employee staffing numbers, excluding mortgage banking employees, remained relatively stable during most of the year, however staffing numbers increased 9 FTE in the later part of the year. State and local taxes increased $325,000 year-over-year primarily as a result of accrual of not yet settled tax audit assessment which was fully funded at year end.

Federal and Oregon state income tax expense was $608,000 for the current quarter, and $859,000 for the preceding quarter, resulting in effective tax rates of 17.1% and 19.1%, respectively. These income tax expenses reflect the benefits of tax exempt income and tax credits. Income tax expense for the year ended December 31, 2023, was $3.4 million, and $2.3 million for the year ended December 31, 2022, with an effective tax rate of 18.8% and 17.5%, respectively.

Balance Sheet Review

Total Assets declined by 3% to $1.15 billion at December 31, 2023, compared to $1.18 billion at September 30, 2023 and decreased 12% from $1.31 billion at December 31, 2022.

Liquidity metrics continued to remain strong with:

• Cash and cash equivalents of $95.8 million, or 41% of uninsured and uncollateralized deposits, at December 31, 2023 compared to $148 million at September 30, 2023.
• Coverage of short-term funds available to uninsured and uncollateralized deposits was 243% at December 31, 2023 compared to 254% at September 30, 2023.
• Uninsured or uncollateralized deposits were 23% of total deposits at December 31, 2023 and 22% at September 30, 2023.
  

Investment Securities increased 2% to $293.6 million at December 31, 2023, compared to $289.2 million at September 30, 2023, and increased 3% from $286.3 million at December 31, 2022. During the year, new purchases totaled $43.5 million at an average yield of 4.93%. In part due to purchases at higher yields, the average portfolio yield increased to 3.48% from 3.36% for the linked quarter and from 2.81% for the like-quarter a year ago. For the twelve months ended December 31, 2023, yields increased 109 basis points to 3.31% compared to the twelve months ended December 31, 2022. The average adjusted duration of the investment securities portfolio was 4.42 years at December 31, 2023.  

Gross loans balances increased $13.4 million, or 2%, to $685.3 million at December 31, 2023, compared to $672.0 million at September 30, 2023. Year-over-year loan growth was 7%, or $44.6 million, with loan growth occurring in most categories of loans except consumer and C&I. The largest increases were in construction and development, residential 1-4 family and owner-occupied commercial real estate, and increased $11.4 million, $13.6 million and $10.1 million, respectively. C&I balances were impacted by elevated payoffs during the year and in addition, balances continue to be impacted by low utilization on commercial lines-of credit that began during the pandemic. That utilization rate continues to remain low compared to historic levels.

The Company manages new loan origination volume using concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. The loan pipeline continues to be supported by sustained business development activity by its commercial lending teams. In addition, the loan portfolio continues to be well-diversified and is originated predominantly within the Company’s Western Washington and Oregon markets.

Credit Quality metrics remain sound with nonperforming assets declining to $664,000, or 0.06% of total assets, at December 31, 2023, compared to nonperforming assets at $1.2 million, or 0.10% of total assets, at September 30, 2023, and $899,000 million, or 0.07% of total assets, at December 31, 2022.   Balances related to non-impaired loans, graded watch or other loans especially mentioned, increased $2 million to $15.1 million at December 31, 2023, compared to $13.1 million at September 30, 2023, and $26.4 million at December 31, 2022.

Adoption of New Accounting Standard In June 2016, Financial Accounting Standards Board issued Accounting Standard Update No. 2016-13, Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The allowance for credit losses under ASU 2016-13 utilizes a Current Expected Credit Losses (“CECL”) methodology which estimates the expected loan losses over the contractual life of the loans. GAAP prior to ASU 2016-13 required an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. ASU 2016-13 became effective for the Company on January 1, 2023. The day 1 adoption of ASU 2016-13 and related amendments resulted in a decrease of $157,000 to the Bank’s allowance for credit losses-loans and an increase of $609,000 to the Bank’s allowance for credit losses-unfunded loan commitments for a cumulative-effect adjustment of $452,000 to decrease the beginning balance of retained earnings.

Allowance for Credit Losses (“ACL”) for loans was $8.5 million, or 1.24% of gross loans at December 31, 2023, compared to $8.3 million, or 1.24% of gross loans, at September 30, 2023, and $8.2 million, or 1.29%, at December 31, 2022.

Net recoveries for the current quarter totaled $21,000, compared to $125,000 of net charge-offs for the preceding quarter and $13,000 for the fourth quarter a year earlier. For the year ended December 31, 2023, net charge-offs were $183,000, compared to $61,000 for the year ended December 31, 2022. The total provision for credit losses, which includes a provision for credit losses on loans as well as a provision for credit losses for unfunded loan commitments, was $111,000 in the fourth quarter of 2023, compared to $244,000 in the third quarter of 2023. There was no provision for loan losses booked in the fourth quarter a year ago. There was a $520,000 provision for credit losses on loans and unfunded loan commitments in the year ended December 31, 2023, compared to no provision in year ended December 31, 2022.   The provision booked in the current quarter was primarily as a result of a 2% or $13.4 million loan growth during the quarter.

Total Deposits were $1.01 billion at December 31, 2023, compared to $1.05 billion at September 30, 2023 and $1.18 billion at December 31, 2022. “Deposit balances continued to be impacted by interest rate sensitive customers transferring a portion of their excess deposits funds into higher yielding investments as well as increased business and customer spending and the general market tightening of liquidity,” stated Carla Tucker, Executive Vice-President and Chief Financial Officer.

As some customers continued to seek higher yield, certificate of deposit balances increased $8.1 million from the linked quarter and $52.1 million from the fourth quarter a year ago and represent 10%, 9%, and 4%, of total deposits, at December 31, 2023, September 30, 2023, and December 31, 2022, respectively. At 41%, non-interest bearing demand deposits continues to represent a high percentage of total deposits.

Shareholder’s Equity increased 8% to $114.7 million at December 31, 2023, compared to $106.6 million at September 30, 2023 and increased 11% from $103.2 million at December 31, 2022. Book value per common share was $11.04 at December 31, 2023, compared to $10.22 at September 30, 2023, and $9.91 at December 31, 2022. The increase in shareholder’s equity during the current quarter was due to net income during the quarter plus the decrease in unrealized loss on available-for-sale securities which was partially offset by dividends to shareholders and $399,000 in stock repurchases under the Company’s stock repurchase program. The decrease in the unrealized gain/(loss) on available-for-sale investment securities had a positive impact on the Tangible Common Equity Ratio (TCE) increasing the Company’s tangible common equity ratio to 8.92% at December 31, 2023, compared to 7.97% at September 30, 2023 and from 6.94% at December 31, 2022. The gross unrealized loss on available-for-sale securities was $20.8 million at December 31, 2023, compared to $29.8 million at September 30, 2023, and $24.9 million at December 31, 2022.   The decline in longer-term market interest rates during the quarter contributed to this change.  

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 11.3% and total risk-based capital ratio at 17.7% as of December 31, 2023.  

Financial Performance Overview
(Unaudited)
	For the Three Months Ended
	Dec 31, 2023			Sep 30, 2023			Change			Dec 31, 2022			Change
Performance Ratios
Return on average assets, annualized	1.02	%		1.21	%		(0.19	)		1.41	%		(0.39	)
Return on average equity, annualized	10.88	%		13.16	%		(2.28	)		18.70	%		(7.82	)
Efficiency ratio (1)	72.22	%		65.78	%		6.44			59.67	%		12.55
(1) Non-interest expense divided by net interest income plus noninterest income.
	For the Twelve Months Ended,
	Dec 31, 2023			Dec 31, 2022			Change
Performance Ratios
Return on average assets, annualized	1.22	%		0.82	%		0.40
Return on average equity, annualized	13.48	%		10.24	%		3.24
Efficiency ratio (1)	66.56	%		72.60	%		(6.04	)
(1) Non-interest expense divided by net interest income plus noninterest income.

Balance Sheet Overview
(Unaudited)
			Dec 31, 2023			Sep 30, 2023			$ Change			% Change			Dec 31, 2022			$ Change			% Change
Assets:			(Dollars in thousands, except per share data)
	Cash on hand and in banks	$	16,716		$	12,052		$	4,664			39	%	$	18,673		$	(1,957	)		-10	%
	Interest bearing deposits		91,355			146,886			(55,531	)		-38	%		299,813			(208,458	)		-70	%
	Investment securities		293,579			289,152			4,427			2	%		286,297			7,282			3	%
	Loans held-for-sale		1,103			637			466			73	%		-			1,103			100	%
	Loans, net of deferred fees		684,554			671,134			13,420			2	%		639,958			44,596			7	%
	Allowance for loan losses		(8,530	)		(8,347	)		(183	)		2	%		(8,236	)		(294	)		4	%
	Net loans		676,024			662,787			13,237			2	%		631,722			44,302			7	%
	Federal Home Loan Bank and Pacific Coast Bankers' Bank stock, at cost		1,783			2,567			(784	)		-31	%		2,583			(800	)		-31	%
	Other assets		68,339			67,894			445			1	%		67,115			1,224			2	%
	Total assets	$	1,148,899		$	1,181,975		$	(33,076	)		-3	%	$	1,306,203		$	(157,304	)		-12	%
Liabilities and Shareholders' Equity:
	Total deposits	$	1,009,292		$	1,051,256		$	(41,964	)		-4	%	$	1,180,362		$	(171,070	)		-14	%
	Borrowings		13,403			13,403			-			0	%		13,403			-			0	%
	Accrued interest payable and other liabilities		11,513			10,715			798			7	%		9,276			2,237			24	%
	Shareholders' equity		114,691			106,601			8,090			8	%		103,162			11,529			11	%
	Total liabilities and shareholders' equity	$	1,148,899		$	1,181,975		$	(33,076	)		-3	%	$	1,306,203		$	(157,304	)		-12	%
Common Shares Outstanding			10,388,724			10,427,224			(38,500	)		0	%		10,414,276			(25,552	)		0	%
Book value per common share (1)		$	11.04		$	10.22		$	0.82			8	%	$	9.91		$	1.13			11	%
Tangible book value per common share (2)		$	9.75		$	8.93		$	0.82			9	%	$	8.62		$	1.13			13	%
(1) Book value per common share is calculated as the total common shareholders' equity divided by the period ending number of common stock shares outstanding.
(2) Tangible book value per common 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 Overview
(Unaudited)
			For the Three Months Ended,
			Dec 31, 2023			Sep 30, 2023			$ Change			% Change			Dec 31, 2022			$ Change			% Change
			(Dollars in thousands, except per share data)
Interest and dividend income		$	13,813		$	14,242		$	(429	)		-3	%	$	13,352		$	461			3	%
Interest expense			2,161			1,962			199			10	%		417			1,744			418	%
	Net interest income		11,652			12,280			(628	)		-5	%		12,935			(1,283	)		-10	%
Provision for credit losses			111			244			(133	)		-55	%		-			111			100	%
Noninterest income			1,528			1,610			(82	)		-5	%		1,559			(31	)		-2	%
Noninterest expense			9,519			9,142			377			4	%		8,648			871			10	%
Income before income taxes			3,550			4,504			(954	)		-21	%		5,846			(2,296	)		-39	%
Income tax expense			608			859			(251	)		-29	%		1,129			(521	)		-46	%
	Net Income	$	2,942		$	3,645		$	(703	)		-19	%	$	4,717		$	(1,775	)		-38	%
Average common shares outstanding - basic			10,411,812			10,427,224			(15,412	)		0	%		10,407,967			3,845			0	%
Average common shares outstanding - diluted			10,420,337			10,433,686			(13,349	)		0	%		10,426,346			(6,009	)		0	%
Income per common share
	Basic	$	0.28		$	0.35		$	(0.07	)		-20	%	$	0.45		$	(0.17	)		-38	%
	Diluted	$	0.28		$	0.35		$	(0.07	)		-20	%	$	0.45		$	(0.17	)		-38	%
Effective tax rate			17.1	%		19.1	%		-2.0	%					19.3	%		-2.2	%
			For the Twelve Months Ended,
			Dec 31, 2023			Dec 31, 2022			$ Change			% Change
			(Dollars in thousands, except per share data)
Interest and dividend income		$	55,480		$	42,152		$	13,328			32	%
Interest expense			6,280			1,206			5,074			421	%
	Net interest income		49,200			40,946			8,254			20	%
Provision for credit losses			520			-			520			100	%
Noninterest income			6,172			7,227			(1,055	)		-15	%
Noninterest expense			36,856			34,974			1,882			5	%
Income before income taxes			17,996			13,199			4,797			36	%
Income tax expense			3,391			2,311			1,080			47	%
	Net Income	$	14,605		$	10,888		$	3,717			34	%
Average common shares outstanding - basic			10,420,431			10,396,268			24,163			0	%
Average common shares outstanding - diluted			10,429,187			10,423,301			5,886			0	%
Income per common share
	Basic	$	1.40		$	1.05		$	0.35			33	%
	Diluted	$	1.40		$	1.04		$	0.36			35	%
Effective tax rate			18.8	%		17.5	%		1.3	%

Noninterest Income
(Unaudited)
			For the Three Months Ended,
			Dec 31, 2023			Sep 30, 2023			$ Change			% Change			Dec 31, 2022			$ Change			% Change
			(Dollars in thousands)
Service charges on deposits		$	478		$	514		$	(36	)		-7	%	$	404		$	74			18	%
Gain on sale of loans, net			95			170			(75	)		-44	%		97			(2	)		-2	%
Earnings on bank owned life insurance			176			174			2			1	%		161			15			9	%
Other noninterest income
	Fee income		764			734			30			4	%		903			(139	)		-15	%
	Other		15			18			(3	)		-17	%		(6	)		21			-350	%
Total noninterest income		$	1,528		$	1,610		$	(82	)		-5	%	$	1,559		$	(31	)		-2	%
			For the Twelve Months Ended,
			Dec 31, 2023			Dec 31, 2022			$ Change			% Change
			(Dollars in thousands)
Service charges on deposits		$	1,975		$	1,621		$	354			22	%
Gain on sale of loans, net			635			1,406			(771	)		-55	%
Gain(loss) on sale of securities available for sale, net			(154	)		-			(154	)		-100	%
Earnings on bank owned life insurance			685			682			3			0	%
Other noninterest income
	Fee income		2,963			3,518			(555	)		-16	%
	Other		68			-			68			100	%
Total noninterest income		$	6,172		$	7,227		$	(1,055	)		-15	%

Noninterest Expense
(Unaudited)
			For the Three Months Ended,
			Dec 31, 2023			Sep 30, 2023			$ Change			% Change			Dec 31, 2022			$ Change			% Change
			(Dollars in thousands)
Salaries and employee benefits		$	5,787		$	5,560		$	227			4	%	$	5,432		$	355			7	%
Occupancy			679			501			178			36	%		509			170			33	%
Equipment			301			252			49			19	%		296			5			2	%
Data processing			971			925			46			5	%		881			90			10	%
Professional services			238			193			45			23	%		158			80			51	%
State and local taxes			187			446			(259	)		-58	%		197			(10	)		-5	%
FDIC and State assessments			144			140			4			3	%		107			37			35	%
Other noninterest expense:
	Director fees		82			84			(2	)		-2	%		68			14			21	%
	Communication		73			67			6			9	%		61			12			20	%
	Advertising		114			103			11			11	%		(31	)		145			-468	%
	Professional liability insurance		79			70			9			13	%		68			11			16	%
	Amortization		43			43			-			0	%		48			(5	)		-10	%
	Other		821			758			63			8	%		854			(33	)		-4	%
Total noninterest expense		$	9,519		$	9,142		$	377			4	%	$	8,648		$	871			10	%
			For the Twelve Months Ended,
			Dec 31, 2023			Dec 31, 2022			$ Change			% Change
			(Dollars in thousands)
Salaries and employee benefits		$	22,793		$	22,401		$	392			2	%
Occupancy			2,215			2,023			192			9	%
Equipment			1,109			1,184			(75	)		-6	%
Data processing			3,770			3,506			264			8	%
Professional services			875			709			166			23	%
State and local taxes			1,018			693			325			47	%
FDIC and State assessments			592			402			190			47	%
Other noninterest expense:
	Director fees		312			279			33			12	%
	Communication		261			256			5			2	%
	Advertising		328			207			121			58	%
	Professional liability insurance		285			257			28			11	%
	Amortization		174			185			(11	)		-6	%
	Other		3,124			2,872			252			9	%
Total noninterest expense		$	36,856		$	34,974		$	1,882			5	%

Investment Securities
(Unaudited)
				Dec 31, 2023			% of Total			Sep 30, 2023			% of Total			$ Change			% Change			Dec 31, 2022			% of Total			$ Change			% Change
				(Dollars in thousands)
Investment securities:
	Collateralized mortgage obligations		$	126,949			43	%	$	126,376			44	%	$	573			0	%	$	103,330			36	%	$	23,619			23	%
	Mortgage backed securities			38,103			13	%		38,322			13	%		(219	)		-1	%		32,802			11	%		5,301			16	%
	U.S. Government and agency securities			83,748			29	%		82,292			28	%		1,456			2	%		83,889			29	%		(141	)		0	%
	Municipal securities			44,779			15	%		42,162			15	%		2,617			6	%		64,277			22	%		(19,498	)		-30	%
	Corporate debt securities			-			0	%		-			0	%		-			0	%		1,999			1	%		(1,999	)		-100	%
		Total	$	293,579			100	%	$	289,152			100	%	$	4,427			2	%	$	286,297			100	%	$	7,282			3	%
	Held to maturity securities		$	55,454			19	%	$	56,469			20	%	$	(1,015	)		-2	%	$	59,513			21	%	$	(4,059	)		-7	%
	Available for sale securities		$	238,125			81	%	$	232,683			80	%	$	5,442			2	%	$	226,784			79	%	$	11,341			5	%
	Government & Agency securities		$	248,768			85	%	$	246,956			85	%	$	1,812			1	%	$	219,982			77	%	$	28,786			13	%
	AAA, AA, A rated securities		$	43,687			15	%	$	41,025			14	%	$	2,662			6	%	$	65,024			23	%	$	(21,337	)		-33	%
	Non-rated securities		$	1,124			1	%	$	1,171			1	%	$	(47	)		-4	%	$	1,291			0	%	$	(167	)		-13	%
	AFS Unrealized Gain (Loss)		$	(20,808	)		-7	%	$	(29,783	)		-10	%	$	8,975			3	%	$	(24,927	)		-9	%	$	4,119			2	%

As shown below, the Bank has established credit lines with borrowing capacity from the Federal Home Loan Bank of Des Moines (FHLB) and from the Federal Reserve Bank of San Francisco, both of which are subject to collateral requirements. In addition, the Bank has $60.0 million in unsecured borrowing capacity from various correspondent banks. There was no balance outstanding on any of these facilities at quarter-end.

Liquidity
(Unaudited)
			Dec 31, 2023		% of Deposits			Sep 30, 2023			% of Deposits			$ Change			% Change			Dec 31, 2022		% of Deposits			$ Change			% Change
			(Dollars in thousands)
Cash and cash equivalents		$	95,781		9	%	$	147,970			14	%	$	(52,189	)		-35	%	$	302,178		26	%	$	(206,397	)		-68	%
Unencumbered AFS Securities			140,049		14	%		123,842			12	%		16,207			13	%		133,892		11	%		6,157			5	%
Secured lines of Credit (FHLB, FRB)			327,264		32	%		318,557			30	%		8,707			3	%		253,387		21	%		73,877			29	%
	Total short-term funds available	$	563,094		56	%	$	590,369			56	%	$	(27,275	)		-5	%	$	689,457		58	%	$	(126,363	)		-18	%
								Dec 31, 2023			Sep 30, 2023			Dec 31, 2022
Short-term funds available to uninsured/uncollateralized deposits								243	%		254	%		222	%
Uninsured/uncollateralized deposits to total deposits								23	%		22	%		26	%
Gross loans to deposits ratio								67	%		63	%		54	%

Loans by Category
(Unaudited)
			Dec 31, 2023			% of Gross Loans			Sep 30, 2023			% of Gross Loans			$ Change			% Change			Dec 31, 2022			% of Gross Loans			$ Change			% Change
Commercial:			(Dollars in thousands)
	Commercial and agricultural	$	75,322			11	%	$	72,901			11	%	$	2,421			3	%	$	75,705			12	%	$	(383	)		-1	%
	PPP		122			0	%		331			0	%		(209	)		-63	%		515			0	%		(393	)		-76	%
Real estate:
Construction and development			48,720			7	%		42,584			6	%		6,136			14	%		37,287			6	%		11,433			31	%
Residential 1-4 family			96,301			14	%		90,449			14	%		5,852			6	%		82,653			13	%		13,648			17	%
Multi-family			51,025			7	%		49,092			7	%		1,933			4	%		41,122			6	%		9,903			24	%
Commercial real estate -- owner occupied			164,443			24	%		164,057			25	%		386			0	%		154,380			24	%		10,063			7	%
Commercial real estate -- non owner occupied			155,280			23	%		154,993			23	%		287			0	%		153,707			24	%		1,573			1	%
Farmland			27,273			4	%		27,641			4	%		(368	)		-1	%		26,935			4	%		338			1	%
Consumer			66,863			10	%		69,921			10	%		(3,058	)		-4	%		68,412			11	%		(1,549	)		-2	%
	Gross Loans		685,349			100	%		671,969			100	%		13,380			2	%		640,716			100	%		44,633			7	%
	Less: allowance for loan losses		(8,530	)					(8,347	)					(183	)					(8,236	)					(294	)
	Less: deferred fees		(795	)					(835	)					40						(758	)					(37	)
	Net loans	$	676,024					$	662,787					$	13,237					$	631,722					$	44,302

Loan Concentration
(Unaudited)
			Dec 31, 2023			% of Risk Based Capital			Sep 30, 2023			% of Risk Based Capital			Change			Dec 31, 2022			% of Risk Based Capital			Change
Commercial:			(Dollars in thousands)
	Commercial and agricultural	$	75,322			54	%	$	72,901			53	%		1	%	$	75,705			58	%		-4	%
	PPP		122			0	%		331			0	%		0	%		515			0	%		0	%
Real estate:
Construction and development			48,720			35	%		42,584			31	%		4	%		37,287			29	%		6	%
Residential 1-4 family			96,301			70	%		90,449			66	%		4	%		82,653			64	%		6	%
Multi-family			51,025			37	%		49,092			36	%		1	%		41,122			32	%		5	%
Commercial real estate -- owner occupied			164,443			119	%		164,057			119	%		0	%		154,380			119	%		0	%
Commercial real estate -- non owner occupied			155,280			112	%		154,993			113	%		-1	%		153,707			119	%		-7	%
Farmland			27,273			20	%		27,641			20	%		0	%		26,935			21	%		-1	%
Consumer			66,863			48	%		69,921			51	%		-3	%		68,412			53	%		-5	%
	Gross Loans	$	685,349					$	671,969								$	640,716
Regulatory Commercial Real Estate		$	252,493			182	%	$	244,277			178	%		4	%	$	229,592			177	%		5	%
Total Risk Based Capital*		$	138,449					$	137,473								$	129,551
*Bank of the Pacific

The following table presents the Commercial real estate – non owner occupied loan balances, including loans in the process of construction and development, by collateral type:  

Non-Owner Occupied Commercial Real Estate Composition*
(Unaudited)
		Dec 31, 2023			% of Total
Multifamily	$	59,557			27	%
Hospitality		31,657			14	%
Retail		29,470			13	%
Mixed Use		26,329			12	%
Office		23,626			11	%
Mini Storage		21,625			10	%
Industrial		11,410			5	%
Special Purpose		7,102			3	%
Warehouse		6,169			3	%
Other		3,326			1	%
Total	$	220,271
*Includes loans in the process of construction and development

Deposits by Category
(Unaudited)
		Dec 31, 2023		% of Total			Sep 30, 2023		% of Total			$ Change			% Change			Dec 31 2022		% of Total			$ Change			% Change
		(Dollars in thousands)
Interest-bearing demand	$	183,436		18	%	$	208,091		20	%	$	(24,655	)		-12	%	$	253,272		20	%	$	(69,836	)		-28	%
Money market		179,344		17	%		179,367		17	%		(23	)		0	%		195,814		17	%		(16,470	)		-8	%
Savings		136,408		14	%		138,981		13	%		(2,573	)		-2	%		174,887		16	%		(38,479	)		-22	%
Time deposits (CDs)		100,832		10	%		92,720		9	%		8,112			9	%		48,754		4	%		52,078			107	%
Total interest-bearing deposits		600,020		59	%		619,159		59	%		(19,139	)		-3	%		672,727		57	%		(72,707	)		-11	%
Non-interest bearing demand		409,272		41	%		432,097		41	%		(22,825	)		-5	%		507,635		43	%		(98,363	)		-19	%
Total deposits	$	1,009,292		100	%	$	1,051,256		100	%	$	(41,964	)		-4	%	$	1,180,362		100	%	$	(171,070	)		-14	%
Insured Deposits	$	647,330		64	%	$	666,308		63	%	$	(18,978	)		-3	%	$	709,468		60	%	$	(62,138	)		-9	%
Collaterialized Deposits		129,895		13	%		152,960		15	%		(23,065	)		-15	%		160,354		14	%		(30,459	)		-19	%
Uninsured Deposits		232,067		23	%		231,988		22	%		79			0	%		310,540		26	%		(78,473	)		-25	%
Total Deposits	$	1,009,292		100	%	$	1,051,256		100	%	$	(41,964	)		-4	%	$	1,180,362		100	%	$	(171,070	)		-14	%
Consumer Deposits	$	470,425		46	%	$	466,877		44	%	$	3,548			1	%	$	519,948		44	%	$	(49,523	)		-10	%
Business Deposits		398,977		40	%		429,443		41	%		(30,466	)		-7	%		490,341		42	%		(91,364	)		-19	%
Public Deposits		139,890		14	%		154,936		15	%		(15,046	)		-10	%		170,073		14	%		(30,183	)		-18	%
Total Deposits	$	1,009,292		100	%	$	1,051,256		100	%	$	(41,964	)		-4	%	$	1,180,362		100	%	$	(171,070	)		-14	%

The following table summarizes the capital measures of the Company and the Bank respectively, at the dates listed below.

Capital Measures
(unaudited)
	Dec 31, 2023			Sep 30, 2023			Change		Dec 31, 2022			Change			Well Capitalized Under Prompt Correction Action Regulations
Pacific Financial Corporation
Total risk-based capital ratio	17.7	%		17.6	%		0.1		17.1	%		0.6			N/A
Tier 1 risk-based capital ratio	16.5	%		16.5	%		-		16.0	%		0.5			N/A
Common equity tier 1 ratio	14.9	%		14.8	%		0.1		14.3	%		0.6			N/A
Leverage ratio	11.3	%		10.7	%		0.6		9.4	%		1.9			N/A
Tangible common equity ratio	8.9	%		8.0	%		0.9		6.9	%		2.0			N/A
Bank of the Pacific
Total risk-based capital ratio	17.6	%		17.6	%		-		17.0	%		0.6			10.5	%
Tier 1 risk-based capital ratio	16.4	%		16.4	%		-		15.9	%		0.5			8.5	%
Common equity tier 1 ratio	16.4	%		16.4	%		-		15.9	%		0.5			7.0	%
Leverage ratio	11.2	%		10.6	%		0.6		9.1	%		2.1			7.5	%

The following tables set forth information regarding average balances of interest-earning assets and interest-bearing liabilities and the resultant yields or cost, and the net interest margin on a tax equivalent basis. Loans held for sale and non-accrual loans are included in total loans.

Net Interest Margin
(Unaudited)
(Annualized, tax-equivalent basis)
		For the Three Months Ended,
		Dec 31, 2023			Sep 30, 2023			$ Change			% Change			Dec 31, 2022			$ Change			% Change
Average Balances		(Dollars in thousands)
Gross loans	$	675,622		$	665,300		$	10,322			2	%	$	629,976		$	45,646			7	%
Loans held for sale	$	709		$	497		$	212			43	%	$	898		$	(189	)		-21	%
Investment securities	$	289,245		$	284,041		$	5,204			2	%	$	270,416		$	18,829			7	%
Federal funds sold & interest bearing deposits in banks	$	105,177		$	172,119		$	(66,942	)		-39	%	$	352,628		$	(247,451	)		-70	%
Total interest-earning assets	$	1,070,753		$	1,121,957		$	(51,204	)		-5	%	$	1,253,918		$	(183,165	)		-15	%
Non-interest bearing demand deposits	$	419,994		$	441,782		$	(21,788	)		-5	%	$	521,133		$	(101,139	)		-19	%
Interest bearing deposits	$	593,464		$	619,183		$	(25,719	)		-4	%	$	684,377		$	(90,913	)		-13	%
Total Deposits	$	1,013,458		$	1,060,965		$	(47,507	)		-4	%	$	1,205,510		$	(192,052	)		-16	%
Borrowings	$	13,403		$	13,403		$	-			0	%	$	13,403		$	-			0	%
Total interest-bearing liabilities	$	606,867		$	632,586		$	(25,719	)		-4	%	$	697,780		$	(90,913	)		-13	%
Total Equity	$	107,251		$	109,872		$	(2,621	)		-2	%	$	100,076		$	7,175			7	%
		For the Three Months Ended,
		Dec 31, 2023			Sep 30, 2023			Change			Dec 31, 2022			Change
Yield on average gross loans (1)		5.80%			5.71%			0.09			5.18	%		0.62
Yield on average investment securities (1)		3.48%			3.36%			0.12			2.81	%		0.67
Yield on Fed funds sold & interest bearing deposits in banks		5.42%			5.35%			0.07			3.72	%		1.70
Cost of average interest bearing deposits		1.28%			1.10%			0.18			0.14	%		1.14
Cost of average borrowings		7.31%			7.28%			0.03			5.42	%		1.89
Cost of average total deposits and borrowings		0.83%			0.72%			0.11			0.14	%		0.69
Yield on average interest-earning assets		5.14%			5.06%			0.08			4.25	%		0.89
Cost of average interest-bearing liabilities		1.41%			1.23%			0.18			0.24	%		1.17
Net interest spread		3.73%			3.83%			(0.10	)		4.01	%		(0.28	)
Net interest margin (1)		4.34%			4.37%			(0.03	)		4.12	%		0.22
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
		For the Twelve Months Ended,
		Dec 31, 2023			Dec 31, 2022			$ Change			% Change
Average Balances		(Dollars in thousands)
Gross loans	$	659,165		$	617,220		$	41,945			7	%
Loans held for sale	$	628		$	2,135		$	(1,507	)		-71	%
Investment securities	$	286,473		$	261,843		$	24,630			9	%
Federal funds sold & interest bearing deposits in banks	$	180,781		$	376,166		$	(195,385	)		-52	%
Interest-earning assets	$	1,127,047		$	1,257,364		$	(130,317	)		-10	%
Non-interest bearing demand deposits	$	448,234		$	508,102		$	(59,868	)		-12	%
Interest bearing deposits	$	620,026		$	693,719		$	(73,693	)		-11	%
Total Deposits	$	1,068,260		$	1,201,821		$	(133,561	)		-11	%
Borrowings	$	13,401		$	13,591		$	(190	)		-1	%
Interest-bearing liabilities	$	633,427		$	707,310		$	(73,883	)		-10	%
Total Equity	$	108,355		$	106,352		$	2,003			2	%
		For the Twelve Months Ended,
		Dec 31, 2023			Dec 31, 2022			Change
Net Interest Margin
Yield on average gross loans (1)		5.63%			4.87%			0.76
Yield on average investment securities (1)		3.31%			2.22%			1.09
Yield on Fed funds sold & interest bearing deposits in banks		5.04%			1.74%			3.30
Cost of average interest bearing deposits		0.86%			0.11%			0.75
Cost of average borrowings		6.93%			3.41%			3.52
Cost of average total deposits and borrowings		0.58%			0.10%			0.48
Yield on average interest-earning assets		4.94%			3.38%			1.56
Cost of average interest-bearing liabilities		0.99%			0.17%			0.82
Net interest spread		3.95%			3.21%			0.74
Net interest margin (1)		4.39%			3.29%			1.10
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.

Adversely Classified Loans and Securities
(Unaudited)
		Dec 31, 2023			Sep 30, 2023			$ Change			% Change			Dec 31, 2022			$ Change			% Change
		(Dollars in thousands)
Rated substandard or worse, but not impaired, beginning of three month period	$	5,072		$	5,186		$	(114	)		-2	%	$	2,814		$	2,258			80	%
Addition of previously classified pass graded loans		383			107			276			258	%		272			111			41	%
Upgrades to pass or other loans especially mentioned status		-			-			-			0	%		(85	)		85			-100	%
Moved to nonaccrual		-			-			-			0	%		-			-			0	%
Principal payments, net		(430	)		(221	)		(209	)		95	%		(117	)		(313	)		268	%
Rated substandard or worse, but not impaired, end of three month period	$	5,025		$	5,072		$	(47	)		-1	%	$	2,884		$	2,141			74	%
Impaired		664			1,219			(555	)		-46	%		2,452			(1,788	)		-73	%
Total adversely classified loans¹	$	5,689		$	6,291		$	(602	)		-10	%	$	5,336		$	353			7	%
Other loans especially mentioned or watch, but not impaired	$	15,120		$	13,148		$	1,972			15	%	$	26,408		$	(11,288	)		-43	%
Gross loans (excluding deferred loan fees)	$	685,349		$	671,969		$	13,380			2	%	$	640,716		$	44,633			7	%
Adversely classified loans to gross loans		0.83	%		0.94	%								0.83	%
Allowance for loan losses	$	8,530		$	8,347		$	183			2	%	$	8,236		$	294			4	%
Allowance for loan losses as a percentage of adversely classified loans		149.94	%		132.68	%								154.35	%
Allowance for loan losses to total impaired loans		1284.64	%		684.74	%								335.89	%
Adversely classified loans to total assets		0.50	%		0.53	%								0.41	%
Delinquent loans to gross loans, not in nonaccrual status 2		0.08	%		0.25	%								0.08	%
¹Adversely classified loans 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. Note that any loans internally rated worse than substandard are included in the impaired loan totals.
2 Delinquent loans are defined as loans past due 30-90 days and still accruing

Nonperforming Assets
(Unaudited)
		Dec 31, 2023			Sep 30, 2023			$ Change			% Change			Dec 31, 2022			$ Change			% Change
		(Dollars in thousands)
Total nonaccrual loans, beginning of three month period	$	1,219		$	959		$	260			27	%	$	899		$	320			36	%
Transfer to performing loans		(478	)		-			(478	)		-100	%		-			(478	)		-100	%
Addition of nonaccrual loans		-			288			(288	)		-100	%		-			-			0	%
Moved to other assets owned		-			-			-			0	%		-			-			0	%
Principal payments, net		(77	)		(28	)		(49	)		175	%		(30	)		(47	)		157	%
Charge-offs, net		-			-			-			0	%		-			-			0	%
Total nonaccrual loans, end of three month period	$	664		$	1,219		$	(555	)		-46	%	$	869		$	(205	)		-24	%
Other real estate owned and foreclosed assets		-			-			-			0	%		30			(30	)		-100	%
Total nonperforming assets	$	664		$	1,219		$	(555	)		-46	%	$	899		$	(235	)		-26	%
Accruing loans past due 90 days or more	$	-		$	-		$	-			0	%	$	-		$	-			0	%
Percentage of nonperforming assets to total assets		0.06	%		0.10	%								0.07	%
Nonperforming loans to total loans		0.10	%		0.18	%								0.14	%

Allowance for Credit Losses
(Unaudited)
		For the Three Months Ended,
		Dec 31, 2023			Sep 30, 2023			$ Change			% Change			Dec 31, 2022			$ Change			% Change
Loans:		(Dollars in thousands)
Gross loans outstanding at end of period	$	685,349		$	671,969		$	13,380			2	%	$	640,716		$	44,633			7	%
Average loans outstanding, gross	$	675,622		$	665,300		$	10,322			2	%	$	629,976		$	45,646			7	%
Allowance for credit losses, beginning of period	$	8,347		$	8,223		$	124			2	%	$	8,249		$	98			1	%
Impact of CECL Adoption (ASC 326)		-			-			-			0	%		-			-			0	%
Commercial		-			-			-			0	%		-			-			0	%
Commercial Real Estate		-			-			-			0	%		-			-			0	%
Residential Real Estate		-			-			-			0	%		-			-			0	%
Consumer		(20	)		(126	)		106			-84	%		(14	)		(6	)		43	%
Total charge-offs		(20	)		(126	)		106			-84	%		(14	)		(6	)		43	%
Commercial		40			-			40			100	%		-			40			100	%
Commercial Real Estate		-			-			-			0	%		-			-			0	%
Residential Real Estate		-			-			-			0	%		-			-			0	%
Consumer		1			1			-			0	%		1			-			0	%
Total recoveries		41			1			40			4000	%		1			40			4000	%
Net recoveries/(charge-offs)		21			(125	)		146			-117	%		(13	)		34			-262	%
Provision (benefit) to income		162			249			(87	)		-35	%		-			162			100	%
Allowance for credit losses, end of period	$	8,530		$	8,347		$	183			2	%	$	8,236		$	294			4	%
Ratio of net loans charged-off to average
gross loans outstanding, annualized		-0.01	%		0.07	%		-0.08	%					0.01	%		-0.02	%
Ratio of allowance for credit losses to
gross loans outstanding		1.24	%		1.24	%		0.00	%					1.29	%		-0.05	%
Unfunded Loan Commitments:
Allowance for credit losses, beginning of period	$	749		$	754		$	(5	)		-1	%	$	203		$	546			269	%
Provision (benefit) to income		(51	)		(5	)		(46	)		920	%		-			(51	)		-100
Allowance for credit losses, end of period	$	698		$	749		$	(51	)		-7	%	$	203		$	495			244	%
		For the Twelve Months Ended,
		Dec 31, 2023			Dec 31, 2022			$ Change			% Change
		(Dollars in thousands)
Gross loans outstanding at end of period	$	685,349		$	640,716		$	44,633			7	%
Average loans outstanding, gross	$	659,165		$	617,220		$	41,945			7	%
Allowance for credit losses, beginning of period	$	8,236		$	8,297		$	(61	)		-1	%
Impact of CECL Adoption (ASC 326)		(157	)		-
Commercial		(84	)		-			(84	)		-100	%
Commercial Real Estate		-			-			-			0	%
Residential Real Estate		-			-			-			0	%
Consumer		(195	)		(90	)		(105	)		117	%
Total charge-offs		(279	)		(90	)		(189	)		210	%
Commercial		67			-			67			100	%
Commercial Real Estate		-			-			-			0	%
Residential Real Estate		-			-			-			0	%
Consumer		29			29			-			0	%
Total recoveries		96			29			67			231	%
Net recoveries (charge-offs)		(183	)		(61	)		(122	)		200	%
Provision (benefit) to income		634			-			634			100	%
Allowance for credit losses, end of period	$	8,530		$	8,236		$	294			4	%
Ratio of net loans charged-off to average
gross loans outstanding, annualized		0.03	%		0.01	%		0.02	%
Ratio of allowance for credit losses to
gross loans outstanding		1.24	%		1.29	%		-0.05	%
Unfunded Loan Commitments:
Allowance for credit losses, beginning of period	$	203		$	203		$	-			0	%
Impact of CECL Adoption (ASC 326)		609			-			609			100	%
Provision (benefit) to income		(114	)		-			(114	)		-100	%
Allowance for credit losses, end of period	$	698		$	203		$	495			244	%

 

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 December 31, 2023, the Company had total assets of $1.15 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 two branches in Clatsop County, Oregon. The Company also operated loan production offices in the communities of Burlington, Washington, Salem, Oregon and Lake Oswego, 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, including the COVID-19 pandemic and government responses thereto, 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.

FAQ

What was Pacific Financial Corporation's (PFLC) net income for the fourth quarter of 2023?

Pacific Financial Corporation (PFLC) reported a net income of $2.9 million for the fourth quarter of 2023.

What was the full year net income for Pacific Financial Corporation (PFLC) in 2023?

The full year net income for Pacific Financial Corporation (PFLC) in 2023 was $14.6 million.

What was the quarterly cash dividend declared by Pacific Financial Corporation (PFLC)?

The board of directors of Pacific Financial Corporation (PFLC) declared a quarterly cash dividend of $0.14 per share on January 24, 2024.

What did the president of Pacific Financial Corporation (PFLC) highlight in the press release?

The president highlighted strong earnings and loan growth, with a solid credit quality.