MEDFORD, Ore., April 23, 2025--(BUSINESS WIRE)--PBCO Financial Corporation (OTCPK: "PBCO"), the holding company (the "Company") of People’s Bank of Commerce (the "Bank"), today reported net income of $1.9 million and earnings per share of $0.37 for the first quarter of 2025, compared to net income of $1.7 million and $0.31 per share for the first quarter of 2024.
Highlights
7.6% increase in total deposits compared to the first quarter of 2024
Net interest margin increased to 3.63% compared to 3.31% in first quarter of 2024
Net income increased by 16.09% versus the first quarter of 2024
Tangible book value per share of $16.39, an increase of 16.7% versus the first quarter of 2024
Paid cash dividends of $0.229 per share in the quarter
"I am pleased to report the Company’s first quarter operating results of 2025. "The strong financial performance is evidenced by the improved net interest margin, net income growth, and tangible book value per share growth compared to the first quarter of 2024," reported Julia Beattie, President and CEO.
The Bank’s loan portfolio increased to $551.0 million, or an increase of 0.8% over the prior year, while the yield on the loan portfolio increased to 6.13% during the first quarter of 2025 compared to 5.83% in the first quarter of 2024. "The loan portfolio remained relatively flat compared to prior year, primarily due to loan prepayments that occurred over the last two quarters," noted Beattie.
Total deposits grew 1.5% during the first quarter of 2025 and 7.6% since the first quarter of 2024. "The Bank remains focused on growing deposits to support our loan growth," reported Beattie. "The market trends over the past three years have demonstrated the importance of having a strong core deposit base, which is a key strength of People’s Bank throughout its history," added Beattie.
The investment portfolio decreased 11.2% to $131.9 million during the first quarter of 2025 from $148.6 million at the end of the first quarter of 2024. Due to lower market rates on investments over the year and reductions in the investment portfolio as investments were called or matured, the AOCI decreased to $10.1 million at the end of the first quarter of 2025 compared to $14.5 million at the end of the first quarter of 2024.
Credit quality remains strong, although there was an increase in non-performing loans during the quarter due to the downgrade of a relationship with $2.1 million in outstanding loans. The Bank has adequate collateral coverage and does not anticipate any losses as a result of this downgrade. The allowance for credit losses as a percentage of loans remained flat at 1.03% from the prior quarter. During the quarter, the provision expense was $51 thousand.
Non-interest income was $1.9 million in the first quarter, down $58 thousand from the first quarter of 2024. Revenue from Steelhead, the Bank’s factoring division, was down $55 thousand over the same period, while other non-interest income was flat with the first quarter of 2024.
Non-interest expenses totaled $5.8 million in the first quarter, up $409 thousand from the first quarter of 2024, with the increase largely attributed to increased personnel expense of $162 thousand and other non-interest expenses of $210 thousand.
The Bank’s leverage ratio was 13.80% as of March 31, 2025, compared to 13.92% as of December 31, 2024. The Company’s tangible common equity was $86.8 million as of March 31, 2025, compared to $83.9 million as of December 31, 2024. During the quarter, the Company paid a cash dividend of $0.229, which was the first cash dividend paid to shareholders since 2009.
About PBCO Financial Corporation
PBCO Financial Corporation’s stock trades on the over-the-counter market under the symbol PBCO. Additional information about the Company is available in the investor section of the Company’s website at: www.peoplesbank.bank.
Founded in 1998, People’s Bank of Commerce is a full-service, commercial bank headquartered in Medford, Oregon with branches in Albany, Ashland, Central Point, Eugene, Grants Pass, Jacksonville, Klamath Falls, Lebanon, Medford, and Salem.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by the use of words or phrases such as "believes," "expects," "anticipates," "foresees," "forecasts," "estimates," "plans," "projects," or other words or phrases of similar import indicating that the statement addresses some future result, occurrence, plan, or objective. Similarly, statements herein that describe People’s Bank’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements.
Consolidated Balance Sheets
(Dollars in 000's)
3/31/2025
12/31/2024
9/30/2024
6/30/2024
3/31/2024
BALANCE SHEET
ASSETS
Cash and due from banks
$
4,909
$
7,247
$
5,563
$
4,679
$
5,592
Federal funds sold
-
-
-
-
-
Interest bearing deposits
53,592
42,588
21,015
16,125
13,303
Investment securities
131,915
132,606
139,564
144,321
148,601
Loans held for sale
-
-
-
-
-
Loans held for investment, net of unearned income
551,388
546,599
552,307
552,014
547,229
Total Loans, net of deferred fees and costs
551,388
546,599
552,307
552,014
547,229
Allowance for loan losses
(5,684
)
(5,627
)
(6,190
)
(6,066
)
(6,029
)
Premises and equipment, net
28,878
29,125
28,626
27,752
29,727
Bank owned life insurance
17,373
17,222
17,082
16,911
16,777
Other Assets
29,809
28,817
29,162
32,301
33,550
Total assets
$
812,180
$
798,577
$
787,129
$
788,037
$
788,750
LIABILITIES
Deposits
Demand - non-interest bearing
$
241,290
$
252,441
$
275,838
$
269,634
$
256,558
Demand - interest bearing
222,690
200,029
170,685
167,421
165,547
Money market and savings
208,683
208,455
201,703
195,359
187,329
Time deposits of less than $250,000
8,449
9,334
10,392
10,282
16,697
Time deposits of more than $250,000
2,741
3,535
4,631
5,991
9,420
Total deposits
$
683,853
$
673,794
$
663,249
$
648,687
$
635,551
Borrowed funds
28,487
28,593
28,980
50,426
67,517
Other liabilities
9,301
8,570
8,140
7,929
7,067
Total liabilities
$
721,641
$
710,957
$
700,369
$
707,042
$
710,135
STOCKHOLDERS' EQUITY
Common stock, surplus & retained earnings
$
100,643
$
99,907
$
96,769
$
94,837
$
93,076
Accumulated other comprehensive income, net of tax
(10,104
)
(12,287
)
(10,009
)
(13,842
)
(14,461
)
Total stockholders' equity
$
90,539
$
87,620
$
86,760
$
80,995
$
78,615
Total liabilities & stockholders' equity
$
812,180
$
798,577
$
787,129
$
788,037
$
788,750
Consolidated Statements of Income
(Dollars in 000's)
1st Quarter 2025
4th Quarter 2024
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
INCOME STATEMENT
INTEREST INCOME
Loans
$
8,351
$
8,575
$
8,397
$
8,271
$
7,907
Investments
517
524
557
584
621
Federal funds sold and due from banks
431
447
292
181
133
Total interest income
9,299
9,546
9,246
9,036
8,661
INTEREST EXPENSE
Deposits
2,486
2,566
2,582
2,276
2,121
Borrowed funds
257
262
342
575
676
Total interest expense
2,743
2,828
2,924
2,851
2,797
NET INTEREST INCOME
6,556
6,718
6,322
6,185
5,864
Provision for loan losses
51
(506
)
149
52
175
Net interest income after provision for loan losses
6,505
7,224
6,173
6,133
5,689
NONINTEREST INCOME
Service charges
112
119
113
118
124
Steelhead finance income
1,147
1,181
1,185
1,181
1,202
BOLI Income
144
139
137
134
134
Other non-interest income
502
456
572
517
503
Total noninterest income
1,905
1,895
2,007
1,950
1,963
NONINTEREST EXPENSE
Salaries and employee benefits
3,536
3,013
3,220
3,374
3,374
Occupancy & equipment expense
865
894
800
906
881
Advertising expense
102
119
92
118
86
Professional expenses
198
220
175
260
234
Data processing expense
389
375
336
338
316
Loss on sale of investments
-
-
-
-
-
Other operating expenses
703
877
1,003
701
493
Total noninterest expense
5,793
5,498
5,626
5,697
5,384
Income before taxes
2,617
3,621
2,554
2,386
2,268
Provision for income taxes
669
904
622
625
590
NET INCOME
$
1,948
$
2,717
$
1,932
$
1,761
$
1,678
Shares outstanding end of quarter
5,298,464
5,298,464
5,298,464
5,307,057
5,328,535
Average diluted shares outstanding
5,338,325
5,311,751
5,300,957
5,321,376
5,328,035
Earnings per share
$
0.37
$
0.51
$
0.36
$
0.33
$
0.31
Diluted earnings per share
$
0.36
$
0.51
$
0.36
$
0.33
$
0.31
(Dollars in 000's)
3/31/2025
12/31/2024
9/30/2024
6/30/2024
3/31/2024
Performance Ratios
Return on average assets
0.96
%
1.34
%
0.97
%
0.90
%
0.85
%
Return on average equity
8.75
%
12.46
%
9.26
%
8.90
%
8.60
%
Net interest margin
3.63
%
3.67
%
3.51
%
3.49
%
3.31
%
Yield on loans
6.13
%
6.06
%
6.17
%
6.05
%
5.83
%
Cost of deposits
1.50
%
1.49
%
1.54
%
1.41
%
1.33
%
Efficiency ratio excluding non-recurring expenses
68.47
%
63.83
%
67.55
%
70.03
%
68.79
%
Full-time equivalent employees
130
135
134
132
132
Capital
Community Bank Leverage Ratio
13.80
%
13.92
%
13.71
%
13.44
%
13.18
%
Book value per share
$
17.09
$
16.54
$
16.37
$
15.26
$
14.75
Tangible book value per share
$
16.39
$
15.84
$
15.67
$
14.56
$
14.05
Asset Quality
Allowance for loan losses (ALLL)
$
5,684
$
5,627
$
6,190
$
6,066
$
6,029
Nonperforming loans (NPLs)
$
4,576
$
944
$
2,225
$
1,127
$
412
Nonperforming assets (NPAs)
$
4,576
$
944
$
2,225
$
1,127
$
618
Classified assets(2)
$
10,624
$
8,119
$
9,493
$
8,775
$
6,442
ALLL as a percentage of loans
1.03
%
1.03
%
1.12
%
1.10
%
1.10
%
Net charge offs (recoveries) to average loans
0.00
%
0.01
%
0.00
%
0.00
%
0.00
%
Nonperforming assets as a percentage of total assets
0.56
%
0.12
%
0.28
%
0.14
%
0.08
%
Classified Asset Ratio(3)
11.04
%
8.71
%
10.21
%
10.08
%
7.61
%
Past due as a percentage of total loans
0.88
%
0.49
%
0.46
%
0.46
%
0.55
%
End of period balances
Total securities and short term deposits
$
185,507
$
175,194
$
160,579
$
160,446
$
161,904
Total loans
$
551,388
$
546,599
$
552,307
$
552,014
$
547,229
Total earning assets
$
736,895
$
721,793
$
712,886
$
712,460
$
709,133
Intangible assets
$
3,697
$
3,711
$
3,717
$
3,729
$
3,741
Total assets
$
812,180
$
798,577
$
787,129
$
788,037
$
788,750
Total noninterest bearing deposits
$
241,290
$
252,441
$
275,838
$
269,634
$
256,558
Total deposits
$
683,853
$
673,794
$
663,249
$
648,687
$
635,551
Average balances
Total securities and short term deposits
$
179,784
$
178,899
$
170,092
$
159,413
$
165,584
Total loans
$
546,820
$
547,779
$
544,610
$
547,139
$
536,255
Total earning assets
$
726,604
$
726,678
$
714,702
$
706,552
$
701,839
Total assets
$
807,647
$
808,874
$
796,086
$
785,232
$
787,127
Total noninterest bearing deposits
$
239,660
$
253,070
$
266,179
$
254,771
$
255,204
Total deposits
$
680,707
$
683,359
$
670,056
$
647,351
$
642,420
(1) Effective March 31, 2020, People's Bank of Commerce opted into the Community Bank Leverage Ratio and is no longer calculating risk based capital ratios.
(2) Classified assets are defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned.
(3) Classified asset ratio is defined as the sum of all loan related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned, divided by bank Tier 1 capital, plus the allowance for loan losses.
