Pacific Financial Corp Earns $3.6 Million, or $0.35 per Diluted Share, for Third Quarter of 2023, and $11.7 Million, or $1.12 per Diluted Share, for the First Nine Months of 2023; Declares Quarterly Cash Dividend of $0.14 per Share

Rhea-AI Summary

Pacific Financial Corporation reports net income of $3.6 million for Q3 2023, declares increased cash dividend of $0.14 per share and authorizes $2.5 million stock repurchase

Positive

• Pacific Financial Corporation reported net income of $3.6 million for the third quarter of 2023, a decrease from the previous quarter. However, net income for the first nine months of 2023 was $11.7 million, an increase compared to the same period in 2022. The company declared a quarterly cash dividend of $0.14 per share, an increase of $0.01 per share. They also authorized the repurchase of up to $2.5 million of shares, affirming their optimism for the future and commitment to shareholder value.

Negative

• None.

ABERDEEN, Wash., Oct. 27, 2023 (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 $3.6 million, or $0.35 per diluted share for the third quarter of 2023, compared to $3.9 million, or $0.37 per diluted share for the second quarter of 2023, and $2.9 million, or $0.28 per diluted share for the third quarter of 2022. For the first nine months of 2023, net income was $11.7 million, or $1.12 per diluted share, compared to $6.2 million, or $0.59 per diluted share, for the first nine months of 2022. All results are unaudited.       

The board of directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on October 18, 2023, an increase of $0.01 per share from the previous quarter. The dividend will be payable on November 24, 2023 to shareholders of record on November 10, 2023.

The Board of Directors of Pacific Financial authorized the repurchase of up to $2.5 million, or approximately 2% of shares outstanding. Beginning November 1, 2023, stock repurchases may be made from time to time on the open market or through privately negotiated transactions. The timing of purchases and the exact number of shares purchased will be subject to market conditions and may be suspended at any time. “We believe our stock is an attractive investment and repurchasing shares affirms our optimism for the future and offers an excellent way to build long-term value for our shareholders,” said Denise Portmann, President and Chief Executive Officer.

“We are pleased with our third quarter operating results, posting solid profits for the quarter and record earnings for the first nine months of 2023,” said Portmann. “Earnings for the current quarter and year-to-date were fueled by higher loan growth and a strong net interest margin (“NIM”). We are encouraged by the steady loan demand as loan balances grew 2%, or $13.3 million during the quarter and 8%, or $50.4 million from a year earlier. We remain optimistic about the opportunities in our markets as loan pipelines and overall business activity looks solid.”

“Although the higher interest rate environment continued to impact funding costs, our NIM remained strong expanding 4 basis points from the linked quarter, 95 basis points from the like period a year ago and improved 139 basis points to 4.40% for the nine months ended September 30, 2023 compared to the like-period in 2022,” said Portmann. “In addition, on a linked quarter basis, solid loan pricing discipline combined with higher longer-term market interest rates contributed to an increase in loan yields.”

“Our prudent risk management protocols guide the growth of our loan portfolio and our credit metrics remained solid with only a slight elevation in net charge-offs,” said Portmann. “While we experienced some deposit decline during the current quarter, our balance sheet remains strong with diversified loan portfolio and deposit mix as well as strong liquidity metrics and capital ratios that exceed regulatory well-capitalized requirements.”

Third Quarter 2023 Financial Highlights:

• Return on average assets (“ROAA”) was 1.21%, compared to 1.30% for the second quarter 2023, and 0.86% for the third quarter 2022.
• Return on average equity (“ROAE”) was 13.16%, compared to 14.30% from the preceding quarter, and 11.13% from the third quarter a year earlier.
• Net interest income was $12.3 million, up 1% compared to $12.2 million for the second quarter of 2023, and increased 13% from $10.9 million for the third quarter 2022.
• Net interest margin (“NIM”) expanded four basis points to 4.37%, compared to 4.33% from the preceding quarter, and improved by 95 basis points from 3.42% for the third quarter a year ago.
• Provision for credit losses was $249,000 compared to $71,000 for the preceding quarter and no provision in the like-quarter a year ago.
• Gross loans balances increased $13.3 million, or 2%, to $672.0 million at September 30, 2023, compared to $658.7 from the preceding quarter end and increased 8%, or $50.4 million, compared to $621.5 million at September 30, 2022.  
• Total deposits declined $26.2 million to $1.05 billion, compared to $1.08 billion from the second quarter 2023, with core deposits representing 91% of total deposits at September 30, 2023. Non-interest bearing deposits represented 41% of total deposits at September 30, 2023.
• Asset quality remains solid with nonperforming assets to total assets at 0.10%, compared to nonperforming assets to total assets at 0.08% for the preceding quarter, and 0.07% at September 30, 2022.
• At September 30, 2023, Pacific Financial continued to exceed regulatory well-capitalized requirements with a leverage ratio of 10.7% and a total risk-based capital ratio of 17.6%.
  

Liquidity

Liquidity metrics were robust with:

• Cash and cash equivalents of $148 million, or 64% of uninsured and uncollateralized deposits, at September 30, 2023 compared to $200 million at June 30, 2023.
• Coverage of short-term funds available to uninsured and uncollateralized deposits was 254% at September 30, 2023 compared to 261% at June 30, 2023.
• Uninsured or uncollateralized deposits were 22% of total deposits at September 30, 2023 and June 30, 2023.
  

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)
				Sep 30, 2023		% of Deposits			Jun 30, 2023			% of Deposits			$ Change			% Change			Sep 30, 2022		% of Deposits			$ Change			% Change
				(Dollars in thousands)
Cash and cash equivalents			$	147,970		14	%	$	199,707			19	%	$	(51,737	)		-26	%	$	415,349		33	%	$	(267,379	)		-64	%
Unencumbered AFS Securities				123,842		12	%		104,898			10	%		18,944			18	%		116,879		9	%		6,963			6	%
Secured lines of Credit (FHLB, FRB)				318,557		30	%		316,214			29	%		2,343			1	%		245,012		20	%		73,545			30	%
	Total short-term funds available		$	590,369		56	%	$	620,819			58	%	$	(30,450	)		-5	%	$	777,240		62	%	$	(186,871	)		-24	%
									Sep 30, 2023			Jun 30, 2023			Sep 30, 2022
Short-term funds available to uninsured/uncollateralized deposits									254	%		261	%		217	%
Uninsured/uncollateralized deposits to total deposits									22	%		22	%		29	%
Gross loans to deposits ratio									63	%		60	%		49	%

Income Statement Review

Net interest income increased 1% to $12.3 million during the current quarter compared to $12.2 million for the second quarter of 2023, and grew 13% from $10.9 million for the third quarter 2022. For the current quarter compared to the linked quarter, interest and fees on loans continued to increase as a result of both balances and yield increases. This increase was partially offset by deposit interest expense increases as well as the decrease in interest income on interest bearing bank balances. Interest income on these interest bearing bank balances decreased as a result of declining balances during the quarter. Year-over-year for the nine months ended September 30, 2023 and 2022, net interest income increased 34%, or $9.5 million, to $37.5 million.

Higher market interest rates combined with growth of investments and loan balances positively impacted net interest margin for the current quarter and for the nine months ended September 30, 2023. The current quarter net interest margin improved by 4 basis points to 4.37% for the third quarter of 2023, compared to 4.33% for the second quarter of 2023, and expanded 95 basis points from 3.42% compared to the third quarter 2022. For the first nine months of 2023, the NIM expanded 139 basis points to 4.40% from 3.01% for the first nine months of 2022.

The increase in average yields on interest-earning assets during the current quarter and first nine months of 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 16 basis points to 5.71% compared to the preceding quarter of 5.55%, and increased 91 basis points from 4.80% from the third quarter 2022. In addition, the yield on interest-bearing bank deposits increased and was 5.35% for the quarter, compared to 5.09% for the preceding quarter, and 2.31% for the third quarter 2022. Cost of funds continued to increase during the quarter primarily due to the full quarter impact of deposit rate changes in money market accounts made in the second quarter 2023, as well as a slight change in deposit mix with higher costing term deposits representing a higher percentage of total deposits. The Bank’s total cost of funds increased to 0.72% for the current quarter, compared to 0.58% for the preceding quarter, and 0.10% for the third quarter 2022.

Noninterest income has remained relatively unchanged at $1.6 million to $1.7 million for the current quarter, linked quarter and like-quarter a year ago. Higher mortgage interest rates and housing prices continue to impact loan origination volumes for our mortgage banking division and as a result gain-on-sale of loans remains lower compared to historical levels. 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 $279,000 or 23% from a year ago. For the first nine months of 2023, noninterest income declined to $4.6 million compared to $5.7 million for the nine months ended September 30, 2022, primarily due to lower gain on sale of loans.

Noninterest expense was $9.1 million for the third quarter of 2023, compared to $8.9 million and $9.0 million for the second quarter of 2023, and for the third quarter 2022, respectively. Although relatively flat for the quarters noted, within total noninterest expenses, state and local taxes were higher for the current quarter as a result of both higher revenue as well as the accrual of not yet settled tax assessments. These tax assessments were fully funded at quarter end. Partially offsetting higher state and local taxes were lower salaries and employee benefits expenses related to lower mortgage banking commissions consistent with lower loan originations in that department as noted above, as well as decreased health-care costs. Noninterest expense for the first nine months of 2023 increased 4% to $27.3 million compared to $26.3 million for the first nine months of 2022, primarily due to increased FDIC insurance premiums, state and local taxes and data processing costs. Salary expenses comprise a large portion of non-interest expenses and continue to be impacted by competitive recruiting and wage pressures. Employee staffing numbers, excluding mortgage banking employees, have remained relatively stable during the last 12 months.  

Federal and Oregon state income tax expense was $859,000 for the current quarter, and $994,000 for the preceding quarter, resulting in effective tax rates of 19.1% and 20.3%, respectively. These income tax expenses reflect the benefits of tax exempt income and tax credits. Income tax expense for the nine months ended September 30, 2023 was $2.8 million, and $1.2 million for the nine months ended September 30, of 2022, with an effective tax rate of 19.3% and 16.1%, respectively.

Balance Sheet Review

Total Assets declined by 2% to $1.18 billion at September 30, 2023, compared to $1.21 billion at June 30, 2023 and decreased 14% from $1.38 billion at September 30, 2022.

Investment Securities increased 5% to $289.2 million at September 30, 2023, compared to $276.4 million at June 30, 2023, and increased 11% from $261.2 million at September 30, 2022. New purchases in the current quarter were $22.7 million at an average yield of 5.19%. In part due to purchases at higher yields, the average portfolio yield increased to 3.36% from 3.21% for the linked quarter and 2.33% for the like-quarter a year ago. The average adjusted duration of the investment securities portfolio was 4.5 years at September 30, 2023.  

Gross loans balances increased $13.3 million, or 2%, to $672.0 million at September 30, 2023, compared to $658.7 million at June 30, 2023. Year-over-year loan growth was 8%, or $50.4 million.

Year-over-year the Bank experienced growth in most loan categories, with the exception in C&I loans. C&I balances have been impacted by continued low utilization on commercial lines-of credit that began during the pandemic and that utilization rate continues to remain low compared to historic levels. The largest growth categories year-over-year were construction, residential 1-4 family, multi-family and owner-occupied commercial real estate.

The Bank maintains a portfolio of loans to finance luxury and classic cars and as part of our risk management program the Bank manages the concentration levels of that portfolio. Loans to finance luxury and classic cars decreased 2% to $61.7 million at September 30, 2023 compared to $62.8 million at June 30, 2023, and increased 7% or $4.1 million compared to $57.6 million a year ago.  

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 our commercial lending teams. In addition, the loan portfolio continues to be well-diversified and is originated predominantly within our Western Washington and Oregon markets.

Credit Quality metrics remain sound with nonperforming assets at $1.2 million, or 0.10% of total assets at September 30, 2023, compared to nonperforming assets of $959,000, or 0.08% of total assets at June 30, 2023, and $989,000 of nonperforming assets, or 0.07% of total assets, at September 30, 2022. Balances related to non-impaired loans, graded watch or other loans especially mentioned, increased $51,000 to $13.1 million at September 30, 2023, compared to $13.1 million at June 30, 2023, and $31.5 million at September 30, 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”) was $8.3 million, or 1.24% of gross loans at September 30, 2023, compared to $8.2 million, or 1.25% of gross loans, at June 30, 2023, and $8.2 million, or 1.33%, at September 30, 2022. Net charge-offs for the current quarter totaled $125,000, compared to $79,000 for the preceding quarter. A partial loan charge-off of $89,000 on one loan represented 71% of the net charge-offs for the current quarter. For the first nine months of 2023, net charge-offs were $204,000, compared to $48,000 for the first nine months of 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 $249,000 in the third quarter of 2023, compared to $71,000 in the second quarter of 2023. There was no provision booked in the third quarter a year ago. There was a $472,000 provision for credit losses in the first nine months of 2023, compared to no provision in the first nine months of 2022. The provisions were primarily as a result of the growth in loan balances during the quarter and the year.

Total Deposits were $1.05 billion at September 30, 2023, compared to $1.08 billion at June 30, 2023 and $1.25 billion at September 30, 2022. During the second quarter 2023, deposit balances were impacted by industry-wide pressure on deposits and competitive pricing pressures as well as interest rate sensitive customers transferring a portion of their excess deposits funds into higher yielding investments and increased customer spending. Deposits continued to decline during the third quarter although at a slower rate than during the first half of 2023. The demand for certificates of deposits (“CD’s”) increased as some customers continued to seek higher yield. Certificate of deposit balances increased $17.3 million from the linked quarter and $40.2 million from the third quarter a year ago and represent 9%, 7%, and 4%, of total deposits, at September 30, 2023, June 30, 2023, and September 30, 2022, respectively. At 41%, Non-interest bearing demand deposits continues to represent a high percentage of total deposits.

Shareholder’s Equity declined 2% to $106.6 million at September 30, 2023 compared to $108.9 million at June 30, 2023 and increased 8% from $98.3 million at September 30, 2022. Book value per common share was $10.22 at September 30, 2023, compared to $10.44 at June 30, 2023, and $9.45 at September 30, 2022. During the quarter as a result of higher market interest rates, the unrealized loss on available-for-sale investment securities increased and impacted shareholder’s equity by $4.6 million. The unrealized loss on available for sale securities was $29.8 million and $23.9 million as of September 30, 2023, and June 30, 2023, respectively.   Tangible Common Equity Ratio (TCE) remained unchanged at 8.0% for September 30, 2023, compared to June 30, 2023.   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 10.7% and total risk-based capital ratio at 17.6% as of September 30, 2023.  

Financial Performance Overview
(Unaudited)
		For the Three Months Ended
		Sep 30, 2023			Jun 30, 2023			Change			Sep 30, 2022			Change
Performance Ratios
Return on average assets, annualized		1.21	%		1.30	%		(0.09	)		0.86	%		0.35
Return on average equity, annualized		13.16	%		14.30	%		(1.14	)		11.13	%		2.03
Efficiency ratio (1)		65.78	%		64.26	%		1.52			71.20	%		(5.42	)
(1) Non-interest expense divided by net interest income plus noninterest income.
		For the Nine Months Ended,
		Sep 30, 2023			Sep 30, 2022			Change
Performance Ratios
Return on average assets, annualized		1.28	%		1.31	%		(0.03	)
Return on average equity, annualized		14.34	%		14.95	%		(0.61	)
Efficiency ratio (1)		64.64	%		64.08	%		0.56
(1) Non-interest expense divided by net interest income plus noninterest income.

Balance Sheet Overview
(Unaudited)
		Sep 30, 2023			Jun 30, 2023			$ Change			% Change			Sep 30, 2022			$ Change			% Change
Assets:		(Dollars in thousands, except per share data)
Cash on hand and in banks	$	12,052		$	14,880		$	(2,828	)		-19	%	$	29,361		$	(17,309	)		-59	%
Interest bearing deposits		146,886			197,952			(51,066	)		-26	%		401,873			(254,987	)		-63	%
Investment securities		289,152			276,366			12,786			5	%		261,165			27,987			11	%
Loans held-for-sale		637			590			47			8	%		700			(63	)		-9	%
Loans, net of deferred fees		671,134			657,950			13,184			2	%		620,850			50,284			8	%
Allowance for loan losses		(8,347	)		(8,223	)		(124	)		2	%		(8,249	)		(98	)		1	%
Net loans		662,787			649,727			13,060			2	%		612,601			50,186			8	%
Federal Home Loan Bank and Pacific Coast    Bankers' Bank stock, at cost		2,567			2,567			-			0	%		2,583			(16	)		-1	%
Other assets		67,894			66,473			1,421			2	%		66,990			904			1	%
Total assets	$	1,181,975		$	1,208,555		$	(26,580	)		-2	%	$	1,375,273		$	(193,298	)		-14	%
Liabilities and Shareholders' Equity:
Total deposits	$	1,051,256		$	1,077,493		$	(26,237	)		-2	%	$	1,254,323		$	(203,067	)		-16	%
Borrowings		13,403			13,403			-			0	%		13,403			-			0	%
Accrued interest payable and other liabilities		10,715			8,794			1,921			22	%		9,267			1,448			16	%
Shareholders' equity		106,601			108,865			(2,264	)		-2	%		98,280			8,321			8	%
Total liabilities and shareholders' equity	$	1,181,975		$	1,208,555		$	(26,580	)		-2	%	$	1,375,273		$	(193,298	)		-14	%
Common Shares Outstanding		10,427,224			10,427,224			-			0	%		10,395,110			32,114			0	%
Book value per common share (1)	$	10.22		$	10.44		$	(0.22	)		-2	%	$	9.45		$	0.77			8	%
Tangible book value per common share (2)	$	8.93		$	9.15		$	(0.22	)		-2	%	$	8.16		$	0.77			9	%
(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,
			Sep 30, 2023			Jun 30, 2023			$ Change			% Change			Sep 30, 2022			$ Change			% Change
			(Dollars in thousands, except per share data)
Interest and dividend income		$	14,242		$	13,735		$	507			4	%	$	11,177		$	3,065			27	%
Interest expense			1,962			1,564			398			25	%		298			1,664			558	%
	Net interest income		12,280			12,171			109			1	%		10,879			1,401			13	%
Loan loss provision			249			71			178			251	%		-			249			100	%
Noninterest income			1,610			1,747			(137	)		-8	%		1,692			(82	)		-5	%
Noninterest expense			9,137			8,944			193			2	%		8,950			187			2	%
Income before income taxes			4,504			4,903			(399	)		-8	%		3,621			883			24	%
Income tax expense			859			994			(135	)		-14	%		705			154			22	%
	Net Income	$	3,645		$	3,909		$	(264	)		-7	%	$	2,916		$	729			25	%
Average common shares outstanding - basic			10,427,224			10,424,391			2,833			0	%		10,393,705			33,519			0	%
Average common shares outstanding - diluted			10,433,686			10,430,494			3,192			0	%		10,423,404			10,282			0	%
Income per common share
	Basic	$	0.35		$	0.37		$	(0.02	)		-5	%	$	0.28		$	0.07			25	%
	Diluted	$	0.35		$	0.37		$	(0.02	)		-5	%	$	0.28		$	0.07			25	%
Effective tax rate			19.1	%		20.3	%		-1.2	%					19.5	%		-0.4	%
			For the Nine Months Ended,
			Sep 30, 2023			Sep 30, 2022			$ Change			% Change
			(Dollars in thousands, except per share data)
Interest and dividend income		$	41,667		$	28,800		$	12,867			45	%
Interest expense			4,119			789			3,330			422	%
	Net interest income		37,548			28,011			9,537			34	%
Loan loss provision			472			-			472			100	%
Noninterest income			4,644			5,668			(1,024	)		-18	%
Noninterest expense			27,273			26,326			947			4	%
Income before income taxes			14,447			7,353			7,094			96	%
Income tax expense			2,784			1,182			1,602			136	%
	Net Income	$	11,663		$	6,171		$	5,492			89	%
Average common shares outstanding - basic			10,423,335			10,392,325			31,010			0	%
Average common shares outstanding - diluted			10,432,155			10,423,504			8,651			0	%
Income per common share
	Basic	$	1.12		$	0.59		$	0.53			90	%
	Diluted	$	1.12		$	0.59		$	0.53			90	%
Effective tax rate			19.3	%		16.1	%		3.2	%

Noninterest Income
(Unaudited)
			For the Three Months Ended,
			Sep 30, 2023			Jun 30, 2023		$ Change			% Change			Sep 30, 2022		$ Change			% Change
			(Dollars in thousands)
Service charges on deposits		$	514		$	509	$	5			1	%	$	415	$	99			24	%
Gain on sale of loans, net			170			260		(90	)		-35	%		265		(95	)		-36	%
Earnings on bank owned life insurance			174			172		2			1	%		167		7			4	%
Other noninterest income
	Fee income		734			759		(25	)		-3	%		841		(107	)		-13	%
	Other		18			47		(29	)		-62	%		4		14			350	%
Total noninterest income		$	1,610		$	1,747	$	(137	)		-8	%	$	1,692	$	(82	)		-5	%
			For the Nine Months Ended,
			Sep 30, 2023			Sep 30, 2022		$ Change			% Change
			(Dollars in thousands)
Service charges on deposits		$	1,496		$	1,217	$	279			23	%
Gain on sale of loans, net			540			1,309		(769	)		-59	%
Gain on sale of securities available for sale, net			(154	)		-		(154	)		-100	%
Earnings on bank owned life insurance			509			521		(12	)		-2	%
Other noninterest income
	Fee income		2,199			2,616		(417	)		-16	%
	Other		54			5		49			980	%
Total noninterest income		$	4,644		$	5,668	$	(1,024	)		-18	%

Noninterest Expense
(Unaudited)
			For the Three Months Ended,
			Sep 30, 2023		Jun 30, 2023		$ Change			% Change			Sep 30, 2022		$ Change			% Change
			(Dollars in thousands)
Salaries and employee benefits		$	5,560	$	5,661	$	(101	)		-2	%	$	5,792	$	(232	)		-4	%
Occupancy			501		504		(3	)		-1	%		489		12			2	%
Equipment			252		269		(17	)		-6	%		289		(37	)		-13	%
Data processing			925		922		3			0	%		881		44			5	%
Professional services			193		204		(11	)		-5	%		154		39			25	%
State and local taxes			446		207		239			115	%		176		270			153	%
FDIC and State assessments			140		154		(14	)		-9	%		93		47			51	%
Other noninterest expense:
	Director fees		84		76		8			11	%		62		22			35	%
	Communication		67		62		5			8	%		60		7			12	%
	Advertising		103		52		51			98	%		95		8			8	%
	Professional liability insurance		70		69		1			1	%		67		3			4	%
	Amortization		43		43		-			0	%		45		(2	)		-4	%
	Other		753		721		32			4	%		747		6			1	%
Total noninterest expense		$	9,137	$	8,944	$	193			2	%	$	8,950	$	187			2	%
			For the Nine Months Ended,
			Sep 30, 2023		Sep 30, 2022		$ Change			% Change
			(Dollars in thousands)
Salaries and employee benefits		$	17,006	$	16,969	$	37			0	%
Occupancy			1,536		1,515		21			1	%
Equipment			808		887		(79	)		-9	%
Data processing			2,799		2,625		174			7	%
Professional services			638		551		87			16	%
State and local taxes			831		495		336			68	%
FDIC and State assessments			448		294		154			52	%
Other noninterest expense:
	Director fees		230		211		19			9	%
	Communication		188		195		(7	)		-4	%
	Advertising		214		238		(24	)		-10	%
	Professional liability insurance		206		189		17			9	%
	Amortization		131		138		(7	)		-5	%
	Other		2,238		2,019		219			11	%
Total noninterest expense		$	27,273	$	26,326	$	947			4	%

Investment Securities
(Unaudited)
			Sep 30, 2023			% of Total			Jun 30, 2023			% of Total			$ Change			% Change			Sep 30, 2022			% of Total			$ Change			% Change
			(Dollars in thousands)
Investment securities:
Collateralized mortgage obligations		$	126,376			44	%	$	117,448			43	%	$	8,928			8	%	$	78,741			30	%	$	47,635			60	%
Mortgage backed securities			38,322			13	%		31,346			11	%		6,976			22	%		33,415			13	%		4,907			15	%
U.S. Government and agency securities			82,292			28	%		83,319			30	%		(1,027	)		-1	%		84,028			32	%		(1,736	)		-2	%
Municipal securities			42,162			15	%		44,253			16	%		(2,091	)		-5	%		62,986			24	%		(20,824	)		-33	%
Corporate debt securities			-			0	%		-			0	%		-			0	%		1,995			1	%		(1,995	)		-100	%
	Total	$	289,152			100	%	$	276,366			100	%	$	12,786			5	%	$	261,165			100	%	$	27,987			11	%
Held to maturity securities		$	56,469			20	%	$	57,464			21	%	$	(995	)		-2	%	$	60,722			23	%	$	(4,253	)		-7	%
Available for sale securities		$	232,683			80	%	$	218,902			79	%	$	13,781			6	%	$	200,443			77	%	$	32,240			16	%
Government & Agency securities		$	246,956			85	%	$	232,076			84	%	$	14,880			6	%	$	196,136			75	%	$	50,820			26	%
AAA, AA, A rated securities		$	41,025			14	%	$	43,086			16	%	$	(2,061	)		-5	%	$	63,679			24	%	$	(22,654	)		-36	%
Non-rated securities		$	1,171			1	%	$	1,204			0	%	$	(33	)		-3	%	$	1,350			1	%	$	(179	)		-13	%
AFS Unrealized Gain (Loss)		$	(29,783	)		-10	%	$	(23,900	)		-9	%	$	(5,883	)		-1	%	$	(26,090	)		-10	%	$	(3,693	)		0	%

Loans by Category
(Unaudited)
			Sep 30, 2023			% of Gross Loans			Jun 30, 2023			% of Gross Loans			$ Change			% Change			Sep 30, 2022			% of Gross Loans			$ Change			% Change
Commercial:			(Dollars in thousands)
	Commercial and agricultural	$	72,901			11	%	$	70,422			11	%	$	2,479			4	%	$	73,788			12	%	$	(887	)		-1	%
	PPP		331			0	%		370			0	%		(39	)		-11	%		553			0	%		(222	)		-40	%
Real estate:
Construction and development			42,584			6	%		37,781			6	%		4,803			13	%		35,500			6	%		7,084			20	%
Residential 1-4 family			90,449			14	%		87,002			13	%		3,447			4	%		79,497			13	%		10,952			14	%
Multi-family			49,092			7	%		44,854			7	%		4,238			9	%		41,473			7	%		7,619			18	%
Commercial real estate -- owner occupied			164,057			25	%		166,594			24	%		(2,537	)		-2	%		150,598			24	%		13,459			9	%
Commercial real estate -- non owner occupied			154,993			23	%		155,002			24	%		(9	)		0	%		149,627			24	%		5,366			4	%
Farmland			27,641			4	%		25,936			4	%		1,705			7	%		25,140			4	%		2,501			10	%
Consumer			69,921			10	%		70,738			11	%		(817	)		-1	%		65,365			10	%		4,556			7	%
	Gross Loans		671,969			100	%		658,699			100	%		13,270			2	%		621,541			100	%		50,428			8	%
	Less: allowance for loan losses		(8,347	)					(8,223	)					(124	)					(8,249	)					(98	)
	Less: deferred fees		(835	)					(749	)					(86	)					(691	)					(144	)
	Net loans	$	662,787					$	649,727					$	13,060					$	612,601					$	50,186
Loan Concentration
(Unaudited)
			Sep 30, 2023			% of Risk Based Capital			Jun 30, 2023			% of Risk Based Capital			Change			Sep 30, 2022			% of Risk Based Capital			Change
Commercial:			(Dollars in thousands)
	Commercial and agricultural	$	72,901			53	%	$	70,422			52	%		1	%	$	73,788			58	%		-5	%
	PPP		331			0	%		370			0	%		0	%		553			0	%		0	%
Real estate:
Construction and development			42,584			31	%		37,781			28	%		3	%		35,500			28	%		3	%
Residential 1-4 family			90,449			66	%		87,002			64	%		2	%		79,497			63	%		3	%
Multi-family			49,092			36	%		44,854			33	%		3	%		41,473			33	%		3	%
Commercial real estate -- owner occupied			164,057			119	%		166,594			123	%		-4	%		150,598			119	%		0	%
Commercial real estate -- non owner occupied			154,993			113	%		155,002			115	%		-2	%		149,627			118	%		-5	%
Farmland			27,641			20	%		25,936			19	%		1	%		25,140			20	%		0	%
Consumer			69,921			51	%		70,738			52	%		-1	%		65,365			52	%		-1	%
	Gross Loans	$	671,969					$	658,699								$	621,541
Regulatory Commercial Real Estate		$	244,277			178	%	$	235,318			174	%		4	%	$	224,100			177	%		1	%
Total Risk Based Capital*		$	137,473					$	135,106								$	126,526
*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)
		Sep 30, 2023		% of Total
Multifamily	$	54,677		26	%
Hospitality		32,190		15	%
Retail		28,657		13	%
Office		27,075		13	%
Mixed Use		22,457		11	%
Mini Storage		20,977		10	%
Industrial		10,898		5	%
Special Purpose		7,146		3	%
Warehouse		6,204		3	%
Other		3,380		1	%
Total	$	213,661
*Includes loans in the process of construction and development

Deposits by Category
(Unaudited)
		Sep 30, 2023		% of Total			Jun 30, 2023		% of Total			$ Change			% Change			Sep 30,| 2022		% of Total			$ Change			% Change
		(Dollars in thousands)
Interest-bearing demand	$	208,091		20	%	$	226,696		22	%	$	(18,605	)		-8	%	$	268,874		20	%	$	(60,783	)		-23	%
Money market		179,367		17	%		177,210		16	%		2,157			1	%		208,486		17	%		(29,119	)		-14	%
Savings		138,981		13	%		151,406		14	%		(12,425	)		-8	%		184,229		16	%		(45,248	)		-25	%
Time deposits (CDs)		92,720		9	%		75,403		7	%		17,317			23	%		52,550		4	%		40,170			76	%
Total interest-bearing deposits		619,159		59	%		630,715		59	%		(11,556	)		-2	%		714,139		57	%		(94,980	)		-13	%
Non-interest bearing demand		432,097		41	%		446,778		41	%		(14,681	)		-3	%		540,184		43	%		(108,087	)		-20	%
Total deposits	$	1,051,256		100	%	$	1,077,493		100	%	$	(26,237	)		-2	%	$	1,254,323		100	%	$	(203,067	)		-16	%
Insured Deposits	$	666,308		63	%	$	678,027		63	%	$	(11,719	)		-2	%	$	744,406		59	%	$	(78,098	)		-10	%
Collaterialized Deposits		152,960		15	%		161,482		15	%		(8,522	)		-5	%		151,293		12	%		1,667			1	%
Uninsured Deposits		231,988		22	%		237,984		22	%		(5,996	)		-3	%		358,624		29	%		(126,636	)		-35	%
Total Deposits	$	1,051,256		100	%	$	1,077,493		100	%	$	(26,237	)		-2	%	$	1,254,323		100	%	$	(203,067	)		-16	%
Consumer Deposits	$	466,877		44	%	$	479,665		45	%	$	(12,788	)		-3	%	$	549,581		44	%	$	(82,704	)		-15	%
Business Deposits		429,443		41	%		427,025		40	%		2,418			1	%		544,349		43	%		(114,906	)		-21	%
Public Deposits		154,936		15	%		170,803		15	%		(15,867	)		-9	%		160,393		13	%		(5,457	)		-3	%
Total Deposits	$	1,051,256		100	%	$	1,077,493		100	%	$	(26,237	)		-2	%	$	1,254,323		100	%	$	(203,067	)		-16	%

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

Capital Measures
(unaudited)
	Sep 30, 2023			Jun 30, 2023			Change			Sep 30, 2022			Change		Well Capitalized Under Prompt Correction Action Regulations
Pacific Financial Corporation
Total risk-based capital ratio	17.6	%		17.8	%		(0.2	)		17.4	%		0.2		N/A
Tier 1 risk-based capital ratio	16.5	%		16.6	%		(0.1	)		16.2	%		0.3		N/A
Common equity tier 1 ratio	14.8	%		14.9	%		(0.1	)		14.4	%		0.4		N/A
Leverage ratio	10.7	%		10.8	%		(0.1	)		8.7	%		2.0		N/A
Tangible common equity ratio	8.0	%		8.0	%		-			6.2	%		1.8		N/A
Bank of the Pacific
Total risk-based capital ratio	17.6	%		17.7	%		(0.1	)		17.3	%		0.3		10.5%
Tier 1 risk-based capital ratio	16.4	%		16.5	%		(0.1	)		16.2	%		0.2		8.5%
Common equity tier 1 ratio	16.4	%		16.5	%		(0.1	)		16.2	%		0.2		7.0%
Leverage ratio	10.6	%		10.5	%		0.1			8.8	%		1.8		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,
		Sep 30, 2023			Jun 30, 2023			$ Change			% Change			Sep 30, 2022		$ Change			% Change
Average Balances		(Dollars in thousands)
Gross loans	$	665,300		$	651,472		$	13,828			2	%	$	610,146	$	55,154			9	%
Loans held for sale	$	497		$	722		$	(225	)		-31	%	$	1,448	$	(951	)		-66	%
Investment securities	$	284,041		$	284,902		$	(861	)		0	%	$	274,773	$	9,268			3	%
Federal funds sold & interest bearing deposits in banks	$	172,119		$	196,409		$	(24,290	)		-12	%	$	387,437	$	(215,318	)		-56	%
Total interest-earning assets	$	1,121,957		$	1,133,505		$	(11,548	)		-1	%	$	1,273,804	$	(151,847	)		-12	%
Non-interest bearing demand deposits	$	441,782		$	448,788		$	(7,006	)		-2	%	$	521,119	$	(79,337	)		-15	%
Interest bearing deposits	$	619,183		$	624,051		$	(4,868	)		-1	%	$	702,476	$	(83,293	)		-12	%
Total Deposits	$	1,060,965		$	1,072,839		$	(11,874	)		-1	%	$	1,223,595	$	(162,630	)		-13	%
Borrowings	$	13,403		$	13,403		$	-			0	%	$	13,451	$	(48	)		0	%
Total interest-bearing liabilities	$	632,586		$	637,454		$	(4,868	)		-1	%	$	715,927	$	(83,341	)		-12	%
Total Equity	$	109,872		$	109,662		$	210			0	%	$	103,945	$	5,927			6	%
		For the Three Months Ended,
		Sep 30, 2023			Jun 30, 2023			Change			Sep 30, 2022			Change
Yield on average gross loans (1)		5.71	%		5.55	%		0.16			4.80	%		0.91
Yield on average investment securities (1)		3.36	%		3.21	%		0.15			2.33	%		1.03
Yield on Fed funds sold & interest bearing deposits in banks		5.35	%		5.09	%		0.26			2.31	%		3.04
Cost of average interest bearing deposits		1.10	%		0.86	%		0.24			0.09	%		1.01
Cost of average borrowings		7.28	%		6.67	%		0.61			3.86	%		3.42
Cost of average total deposits and borrowings		0.72	%		0.58	%		0.14			0.10	%		0.62
Yield on average interest-earning assets		5.06	%		4.88	%		0.18			3.51	%		1.55
Cost of average interest-bearing liabilities		1.23	%		0.98	%		0.25			0.16	%		1.07
Net interest spread		3.83	%		3.90	%		(0.07	)		3.35	%		0.48
Net interest margin (1)		4.37	%		4.33	%		0.04			3.42	%		0.95
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
		For the Nine Months Ended,
		Sep 30, 2023			Sep 30, 2022			$ Change			% Change
Average Balances		(Dollars in thousands)
Gross loans	$	653,619		$	612,922		$	40,697			7	%
Loans held for sale	$	601		$	2,551		$	(1,950	)		-76	%
Investment securities	$	285,538		$	258,953		$	26,585			10	%
Federal funds sold & interest bearing deposits in banks	$	206,259		$	382,835		$	(176,576	)		-46	%
Interest-earning assets	$	1,146,017		$	1,257,261		$	(111,244	)		-9	%
Non-interest bearing demand deposits	$	457,750		$	503,710		$	(45,960	)		-9	%
Interest bearing deposits	$	628,978		$	696,866		$	(67,888	)		-10	%
Total Deposits	$	1,086,728		$	1,200,576		$	(113,848	)		-9	%
Borrowings	$	13,401		$	13,656		$	(255	)		-2	%
Interest-bearing liabilities	$	642,379		$	710,522		$	(68,143	)		-10	%
Total Equity	$	108,727		$	108,467		$	260			0	%
		For the Nine Months Ended,
		Sep 30, 2023			Sep 30, 2022			Change
Net Interest Margin
Yield on average gross loans (1)		5.57	%		4.77	%		0.80
Yield on average investment securities (1)		3.26	%		2.02	%		1.24
Yield on Fed funds sold & interest bearing deposits in banks		4.97	%		1.13	%		3.84
Cost of average interest bearing deposits		0.73	%		0.10	%		0.63
Cost of average borrowings		6.80	%		2.75	%		4.05
Cost of average total deposits and borrowings		0.50	%		0.09	%		0.41
Yield on average interest-earning assets		4.88	%		3.09	%		1.79
Cost of average interest-bearing liabilities		0.86	%		0.15	%		0.71
Net interest spread		4.02	%		2.94	%		1.08
Net interest margin (1)		4.40	%		3.01	%		1.39
(1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.

Adversely Classified Loans and Securities
(Unaudited)
		Sep 30, 2023			Jun 30, 2023			$ Change			% Change			Sep 30, 2022			$ Change			% Change
		(Dollars in thousands)
Rated substandard or worse, but not impaired, beginning of three month period	$	5,186		$	4,755		$	431			9	%	$	7,100		$	(1,914	)		-27	%
Addition of previously classified pass graded loans		107			981			(874	)		-89	%		365			(258	)		-71	%
Upgrades to pass or other loans especially mentioned status		-			-			-			0	%		(4,536	)		4,536			-100	%
Moved to nonaccrual		-			-			-			0	%		-			-			0	%
Principal payments, net		(221	)		(550	)		329			-60	%		(115	)		(106	)		92	%
Rated substandard or worse, but not impaired, end of three month period	$	5,072		$	5,186		$	(114	)		-2	%	$	2,814		$	2,258			80	%
Impaired		1,219			959			260			27	%		2,499			(1,280	)		-51	%
Total adversely classified loans¹	$	6,291		$	6,145		$	146			2	%	$	5,313		$	978			18	%
Other loans especially mentioned or watch, but not impaired	$	13,148		$	13,097		$	51			0	%	$	31,452		$	(18,304	)		-58	%
Gross loans (excluding deferred loan fees)	$	671,969		$	658,699		$	13,270			2	%	$	621,541		$	50,428			8	%
Adversely classified loans to gross loans		0.94	%		0.93	%								0.85	%
Allowance for loan losses	$	8,347		$	8,223		$	124			2	%	$	8,249		$	98			1	%
Allowance for loan losses as a percentage of adversely classified loans		132.68	%		133.82	%								155.26	%
Allowance for loan losses to total impaired loans		684.74	%		857.46	%								330.09	%
Adversely classified loans to total assets		0.53	%		0.51	%								0.39	%
Delinquent loans to gross loans, not in nonaccrual status 2		0.25	%		0.01	%								0.01	%
1 Adversely 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)
		Sep 30, 2023			Jun 30, 2023			$ Change			% Change			Sep 30, 2022			$ Change			% Change
		(Dollars in thousands)
Total nonaccrual loans, beginning of three month period	$	959		$	961		$	(2	)		0	%	$	1,240		$	(281	)		-23	%
Transfer to performing loans		-			-			-			0	%		(334	)		334			-100	%
Addition of nonaccrual loans		288			93			195			210	%		-			288			100	%
Moved to other assets owned		-			-			-			0	%		-			-			0	%
Principal payments, net		(28	)		(95	)		67			-71	%		(7	)		(21	)		300	%
Charge-offs, net		-			-			-			0	%		-			-			0	%
Total nonaccrual loans, end of three month period	$	1,219		$	959		$	260			27	%	$	899		$	320			36	%
Other real estate owned and foreclosed assets		-			-			-			0	%		90			(90	)		-100	%
Total nonperforming assets	$	1,219		$	959		$	260			27	%	$	989		$	230			23	%
Accruing loans past due 90 days or more	$	-		$	-		$	-			0	%	$	-		$	-			0	%
Percentage of nonperforming assets to total assets		0.10	%		0.08	%								0.07	%
Nonperforming loans to total loans		0.18	%		0.15	%								0.14	%

Allowance for Credit Losses
(Unaudited)
		For the Three Months Ended,
		Sep 30, 2023			Jun 30, 2023			$ Change			% Change			Sep 30, 2022			$ Change			% Change
		(Dollars in thousands)
Gross loans outstanding at end of period	$	671,969		$	658,699		$	13,270			2	%	$	621,541		$	50,428			8	%
Average loans outstanding, gross	$	665,300		$	651,472		$	13,828			2	%	$	610,146		$	55,154			9	%
Allowance for credit losses, beginning of period	$	8,223		$	8,231		$	(8	)		0	%	$	8,282		$	(59	)		-1	%
Impact of CECL Adoption (ASC 326)		-			-			-			0	%		-			-			0	%
Commercial		-			(84	)		84			-100	%		-			-			0	%
Commercial Real Estate		-			-			-			0	%		-			-			0	%
Residential Real Estate		-			-			-			0	%		-			-			0	%
Consumer		(126	)		(10	)		(116	)		1160	%		(34	)		(92	)		271	%
Total charge-offs		(126	)		(94	)		(32	)		34	%		(34	)		(92	)		271	%
Commercial		-			-			-			0	%		-			-			0	%
Commercial Real Estate		-			-			-			0	%		-			-			0	%
Residential Real Estate		-			-			-			0	%		-			-			0	%
Consumer		1			15			(14	)		-93	%		1			-			0	%
Total recoveries		1			15			(14	)		-93	%		1			-			0	%
Net recoveries/(charge-offs)		(125	)		(79	)		(46	)		58	%		(33	)		(92	)		279	%
Provision (benefit) to income		249			71			178			251	%		-			249			100	%
Allowance for credit losses, end of period	$	8,347		$	8,223		$	124			2	%	$	8,249		$	98			1	%
Ratio of net loans charged-off to average
gross loans outstanding, annualized		0.07	%		0.05	%		0.02	%					0.02	%		0.05	%
Ratio of allowance for credit losses to
gross loans outstanding		1.24	%		1.25	%		-0.01	%					1.33	%		-0.09	%
		For the Nine Months Ended,
		Sep 30, 2023			Sep 30, 2022			$ Change			% Change
		(Dollars in thousands)
Gross loans outstanding at end of period	$	671,969		$	621,541		$	50,428			8	%
Average loans outstanding, gross	$	653,619		$	612,922		$	40,697			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		(175	)		(76	)		(99	)		130	%
Total charge-offs		(259	)		(76	)		(183	)		241	%
Commercial		27			-			27			100	%
Commercial Real Estate		-			-			-			0	%
Residential Real Estate		-			-			-			0	%
Consumer		28			28			-			0	%
Total recoveries		55			28			27			96	%
Net recoveries (charge-offs)		(204	)		(48	)		(156	)		325	%
Provision (benefit) to income		472			-			472			100	%
Allowance for credit losses, end of period	$	8,347		$	8,249		$	98			1	%
Ratio of net loans charged-off to average
gross loans outstanding, annualized		0.04	%		0.01	%		0.03	%
Ratio of allowance for credit losses to
gross loans outstanding		1.24	%		1.33	%		-0.09	%

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 September 30, 2023, the Company had total assets of $1.18 billion and operated fourteen branches in the communities of Grays Harbor, Pacific, 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 Olympia and 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, 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 is the net income of Pacific Financial Corporation for the third quarter of 2023?

Pacific Financial Corporation reported a net income of $3.6 million for the third quarter of 2023.

How does the net income for the first nine months of 2023 compare to the same period in 2022?

The net income for the first nine months of 2023 was $11.7 million, an increase compared to the same period in 2022.

What is the quarterly cash dividend declared by Pacific Financial Corporation?

Pacific Financial Corporation declared a quarterly cash dividend of $0.14 per share, an increase of $0.01 per share.

How much stock will Pacific Financial Corporation repurchase?

Pacific Financial Corporation authorized the repurchase of up to $2.5 million of shares.