MEDFORD, Ore., January 23, 2025--(BUSINESS WIRE)--PBCO Financial Corporation (OTCPK: "PBCO"), the holding company (Company) of People’s Bank of Commerce (Bank), today reported net income of $2.7 million and earnings per share of $0.51 for the fourth quarter of 2024, compared to net income of $1.9 million and $0.36 per share for the third quarter of 2024. For the year ended 2024, earnings per share were $1.52 compared to $0.19 in 2023.
Highlights
Net interest margin of 3.67% which increased by 16 basis points compared to prior quarter and 48 basis points over the same quarter prior year
Return on average assets increased to 1.34% compared to 0.97% in the prior quarter
7.0% increase in total deposits compared to prior year
Tangible book value per share increased to $15.84, compared to $13.86 at the prior year-end
"2024 was a pivotal year for the Bank after taking action on two key strategic business decisions at the end of 2023. We sold a portion of the investment securities portfolio to reposition our balance sheet and improve the net interest margin and we dissolved our mortgage department which contributed to improved operating efficiency," reported Julia Beattie, President & CEO. "I am pleased that we were able to achieve our goals of improved profitability and positive deposit growth during my first full year as CEO, and I look forward to building on this progress moving forward," added Beattie.
During 2024, the Bank’s loan portfolio increased 5.8% year-over-year, while the yield on the loan portfolio increased to 6.06% during the fourth quarter of 2024 compared to 5.68% in the fourth quarter of 2023. "Loan growth was relatively flat during the 2nd half of 2024, primarily due to prepayments that occurred in December 2024, but the loan pipeline remained strong at year-end," added Beattie.
Total deposits grew 1.6% during the fourth quarter and 7.0% for the year ended 2024.
The investment portfolio decreased 5.0% to $132.6 million during the fourth quarter of 2024 from $139.6 million at the end of the third quarter. Due to higher market rates on investments during the quarter, the Company’s AOCI book loss increased to $12.3 million at the end of the fourth quarter compared to $10.0 million at the end of the third quarter.
Non-interest income was $1.9 million in the fourth quarter, down $112 thousand from the third quarter of 2024. Revenue from Steelhead, the Bank’s factoring division, was relatively unchanged compared to prior quarter, while other non-interest income was down $116 thousand due to a non-recurring recovery of expenses in the third quarter from a non-performing loan. For the year, non-interest income was down $1.2 million versus 2023.
Non-interest expenses totaled $5.5 million in the fourth quarter, down $128 thousand from the previous quarter, with the decrease largely attributed to a reduction in personnel expense. Occupancy and equipment expenses increased in the quarter due to the opening of the permanent Eugene branch location and expense incurred to terminate the remaining lease contract on the temporary location. For the year, non-interest expenses were 7.5% less than in 2023 after excluding the 2023 loss on partial liquidation of the investment portfolio.
The Bank’s leverage ratio was 13.92% as of December 31, 2024, compared to 13.71% as of September 30, 2024. The Company’s tangible common equity was $83.9 million as of December 31, 2024, compared to $83.0 million as of September 30, 2024.
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 phrases such as People’s Bank or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. 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 in forward-looking statements.
Consolidated Balance Sheets
(Dollars in 000's)
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
BALANCE SHEET
ASSETS
Cash and due from banks
$
7,247
$
5,563
$
4,679
$
5,592
$
6,926
Federal funds sold
-
-
-
-
-
Interest bearing deposits
42,588
21,015
16,125
13,303
13,127
Investment securities
132,606
139,564
144,321
148,601
154,228
Loans held for sale
-
-
-
-
-
Loans held for investment, net of unearned income
546,599
552,307
552,014
547,229
516,697
Total Loans, net of deferred fees and costs
546,599
552,307
552,014
547,229
516,697
Allowance for loan losses
(5,627
)
(6,190
)
(6,066
)
(6,029
)
(5,863
)
Premises and equipment, net
29,125
28,626
27,752
29,727
30,001
Bank owned life insurance
17,222
17,082
16,911
16,777
16,637
Other Assets
28,817
29,162
32,301
33,550
31,524
Total assets
$
798,577
$
787,129
$
788,037
$
788,750
$
763,277
LIABILITIES
Deposits
Demand - non-interest bearing
$
252,441
$
275,838
$
269,634
$
256,558
$
272,945
Demand - interest bearing
200,029
170,685
167,421
165,547
142,043
Money market and savings
208,455
201,703
195,359
187,329
186,875
Time deposits of less than $250,000
9,334
10,392
10,282
16,697
16,771
Time deposits of more than $250,000
3,535
4,631
5,991
9,420
11,147
Total deposits
$
673,794
$
663,249
$
648,687
$
635,551
$
629,781
Borrowed funds
28,593
28,980
50,426
67,517
49,756
Other liabilities
8,570
8,140
7,929
7,067
6,151
Total liabilities
$
710,957
$
700,369
$
707,042
$
710,135
$
685,688
STOCKHOLDERS' EQUITY
Common stock, surplus & retained earnings
$
99,907
$
96,769
$
94,837
$
93,076
$
91,399
Accumulated other comprehensive income, net of tax
(12,287
)
(10,009
)
(13,842
)
(14,461
)
(13,810
)
Total stockholders' equity
$
87,620
$
86,760
$
80,995
$
78,615
$
77,589
Total liabilities & stockholders' equity
$
798,577
$
787,129
$
788,037
$
788,750
$
763,277
Consolidated Statements of Income
(Dollars in 000's)
4th Quarter 2024
3rd Quarter 2024
2nd Quarter 2024
1st Quarter 2024
4th Quarter 2023
INCOME STATEMENT
INTEREST INCOME
Loans
$
8,575
$
8,397
$
8,271
$
7,907
$
7,399
Investments
524
557
584
621
766
Federal funds sold and due from banks
447
292
181
133
195
Total interest income
9,546
9,246
9,036
8,661
8,360
INTEREST EXPENSE
Deposits
2,566
2,582
2,276
2,121
1,885
Borrowed funds
262
342
575
676
794
Total interest expense
2,828
2,924
2,851
2,797
2,679
NET INTEREST INCOME
6,718
6,322
6,185
5,864
5,681
Provision for loan losses
(506
)
149
52
175
286
Net interest income after provision for
loan losses
7,224
6,173
6,133
5,689
5,395
NONINTEREST INCOME
Service charges
119
113
118
124
115
Mortgage lending income
-
-
-
-
183
Steelhead finance income
1,181
1,185
1,181
1,202
1,192
BOLI Income
139
137
134
134
155
Other non-interest income
456
572
517
503
633
Total noninterest income
1,895
2,007
1,950
1,963
2,278
NONINTEREST EXPENSE
Salaries and employee benefits
3,013
3,220
3,374
3,374
3,804
Occupancy & equipment expense
894
800
906
881
899
Advertising expense
119
92
118
86
115
Professional expenses
220
175
260
234
206
Data processing expense
375
336
338
316
355
Loss on sale of investments
-
-
-
-
6,814
Other operating expenses
877
1,003
701
493
724
Total noninterest expense
5,498
5,626
5,697
5,384
12,917
Income before taxes
3,621
2,554
2,386
2,268
(5,244
)
Provision for income taxes
904
622
625
590
(1,338
)
NET INCOME
$
2,717
$
1,932
$
1,761
$
1,678
$
(3,906
)
Shares outstanding end of quarter
5,298,464
5,298,464
5,307,057
5,328,535
5,327,035
Average diluted shares outstanding
5,311,751
5,300,957
5,321,376
5,328,035
5,326,035
Earnings per share
$
0.51
$
0.36
$
0.33
$
0.31
$
(0.73
)
Diluted earnings per share
$
0.51
$
0.36
$
0.33
$
0.31
$
(0.73
)
(Dollars in 000's)
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Performance Ratios
Return on average assets
1.34
%
0.97
%
0.90
%
0.85
%
-1.97
%
Return on average equity
12.46
%
9.26
%
8.90
%
8.60
%
-22.02
%
Net interest margin
3.67
%
3.51
%
3.49
%
3.31
%
3.19
%
Yield on loans
6.06
%
6.17
%
6.05
%
5.83
%
5.68
%
Cost of deposits
1.49
%
1.54
%
1.41
%
1.33
%
1.16
%
Efficiency ratio excluding non-recurring expenses
63.83
%
67.55
%
70.03
%
68.79
%
72.40
%
Full-time equivalent employees
135
134
132
132
132
Capital
Community Bank Leverage Ratio
13.92
%
13.71
%
13.44
%
13.18
%
13.39
%
Book value per share
$
16.54
$
16.37
$
15.26
$
14.75
$
14.57
Tangible book value per share
$
15.84
$
15.67
$
14.56
$
14.05
$
13.86
Asset Quality
Allowance for loan losses (ALLL)
$
5,627
$
6,190
$
6,066
$
6,029
$
5,863
Nonperforming loans (NPLs)
$
944
$
2,225
$
1,127
$
412
$
733
Nonperforming assets (NPAs)
$
944
$
2,225
$
1,127
$
618
$
939
Classified assets(2)
$
8,119
$
9,493
$
8,775
$
6,442
$
6,549
ALLL as a percentage of loans
1.03
%
1.12
%
1.10
%
1.10
%
1.13
%
Net charge offs (recoveries) to average loans
0.01
%
0.00
%
0.00
%
0.00
%
0.01
%
Nonperforming assets as a percentage of total assets
0.12
%
0.28
%
0.14
%
0.08
%
0.12
%
Classified Asset Ratio(3)
8.71
%
10.21
%
10.08
%
7.61
%
7.85
%
Past due as a percentage of total loans
0.49
%
0.46
%
0.46
%
0.55
%
0.14
%
End of period balances
Total securities and short term deposits
$
175,194
$
160,579
$
160,446
$
161,904
$
167,355
Total loans
$
546,599
$
552,307
$
552,014
$
547,229
$
516,697
Total earning assets
$
721,793
$
712,886
$
712,460
$
709,133
$
684,052
Intangible assets
$
3,711
$
3,717
$
3,729
$
3,741
$
3,753
Total assets
$
798,577
$
787,129
$
788,037
$
788,750
$
763,277
Total noninterest bearing deposits
$
252,441
$
275,838
$
269,634
$
256,558
$
272,945
Total deposits
$
673,794
$
663,249
$
648,687
$
635,551
$
629,781
Average balances
Total securities and short term deposits
$
178,899
$
170,092
$
159,413
$
165,584
$
201,788
Total loans
$
553,846
$
544,610
$
547,139
$
536,255
$
504,002
Total earning assets
$
732,745
$
714,702
$
706,552
$
701,839
$
705,790
Total assets
$
808,874
$
796,086
$
785,232
$
787,127
$
794,196
Total noninterest bearing deposits
$
253,070
$
266,179
$
254,771
$
255,204
$
273,413
Total deposits
$
683,359
$
670,056
$
647,351
$
642,420
$
643,015
(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.
