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PBCO FINL CORP
Symbol	PBCO
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PBCO Financial Corporation Reports Q1 2026 Results

2026-04-22 15:44 ET - News Release

Company Website: https://peoplesbank.q4ir.com/corporate-information/corporate-profile/default.aspx
MEDFORD, Ore. -- (Business Wire)

PBCO Financial Corporation (OTCID: “PBCO”), the holding company (the “Company”) of People’s Bank of Commerce (the “Bank”), today reported net income of $2.7 million and earnings per share of $0.52 for the first quarter of 2026, compared to net income of $2.5 million and $0.48 per share for the fourth quarter of 2025.

Highlights

Return on average assets increased to 1.37% versus 1.23% in the prior quarter
Net interest margin increased to 4.21% versus 3.98% in the prior quarter
Tangible book value per share of $18.59, an increase of 1.4% in the first quarter

“I’m excited to share the first quarter results for the company, which reflect further expansion of our net interest margin, improved non-interest income, and continued management of our non-interest expense, all of which contributed to our increase in profitability for the first quarter,” reported Julia Beattie, President and CEO.

"We had a large loan prepayment of $10.0 million, which impacted the overall growth in our loan portfolio. The Bank was able to offset the prepayment with new loans booked, but the 0.1% increase in our loans was less than anticipated,” noted Beattie. As a result of the large prepayment, the Bank recognized income of $204 thousand of deferred fees plus a prepayment penalty during the quarter.

“Our deposits declined in the quarter by $8.6 million, a 1.3% decrease, which reflects the outflow of remaining balances from a large customer that began transitioning out of the Bank in the fourth quarter of 2025,” noted Beattie. “The Bank is focused on growing deposits for the balance of the year to support loan growth,” added Beattie.

During the first quarter, non-interest income increased by $166 thousand, with the increase primarily attributed to an increase in factoring revenue from our Steelhead Finance division of $136 thousand for the quarter. Non-interest expenses totaled $5.8 million in the first quarter, an increase of $19 thousand from the fourth quarter of 2025.

The Bank’s leverage ratio was 15.04% as of March 31, 2026, compared to 14.78% as of December 31, 2025. The Company’s tangible common equity was $94.3 million as of March 31, 2026, compared to $94.0 million as of December 31, 2025. During the first quarter, the Company completed stock repurchases for 50,841 shares at a weighted average price of $18.30 per share.

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)	3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025
BALANCE SHEET
ASSETS
Cash and due from banks		$	5,319		$	5,959		$	6,194		$	6,917		$	4,909
Federal funds sold			-			-			-			-			-
Interest bearing deposits			22,451			31,747			53,846			51,060			53,592
Investment securities			106,500			114,079			119,970			127,850			131,915
Loans held for sale			-			-			-			-			-
Loans held for investment, net of unearned income			568,024			567,673			560,615			553,948			551,388
	Total Loans, net of deferred fees and costs		568,024			567,673			560,615			553,948			551,388
Allowance for loan losses			(6,551	)		(6,418	)		(6,304	)		(5,971	)		(5,684	)
Premises and equipment, net			27,643			27,847			28,480			28,797			28,878
Bank owned life insurance			18,269			17,846			17,695			17,516			17,373
Other Assets			37,547			29,896			29,821			30,905			29,809
	Total assets	$	779,202		$	788,629		$	810,317		$	811,022		$	812,180

LIABILITIES
Deposits
	Demand - non-interest bearing	$	224,735		$	220,919		$	239,521		$	242,281		$	241,290
	Demand - interest bearing		183,590			199,131			189,924			205,034			222,690
	Money market and savings		226,985			223,944			236,949			222,265			208,683
	Time deposits of less than $250,000		7,221			7,489			7,476			7,716			8,449
	Time deposits of more than $250,000		2,824			2,484			3,072			2,757			2,741
	Total deposits	$	645,355		$	653,967		$	676,942		$	680,053		$	683,853

Borrowed funds			27,792			27,894			28,274			28,381			28,487
Other liabilities			8,061			9,139			8,853			9,248			9,301
	Total liabilities	$	681,208		$	691,000		$	714,069		$	717,682		$	721,641

STOCKHOLDERS' EQUITY
Common stock, surplus & retained earnings		$	105,087		$	104,634		$	104,022		$	102,138		$	100,643
Accumulated other comprehensive income, net of tax			(7,093	)		(7,005	)		(7,774	)		(8,798	)		(10,104	)
	Total stockholders' equity	$	97,994		$	97,629		$	96,248		$	93,340		$	90,539

	Total liabilities & stockholders' equity	$	779,202		$	788,629		$	810,317		$	811,022		$	812,180

Consolidated Statements of Income
	(Dollars in 000's)	1st Quarter 2026			4th Quarter 2025			3rd Quarter 2025			2nd Quarter 2025			1st Quarter 2025
INCOME STATEMENT
INTEREST INCOME
Loans		$	9,129		$	9,007		$	8,749		$	8,595		$	8,351
Investments			437			462			477			496			517
Federal funds sold and due from banks			204			586			536			563			431
	Total interest income		9,770			10,055			9,762			9,654			9,299

INTEREST EXPENSE
Deposits			2,208			2,438			2,591			2,483			2,486
Borrowed funds			261			262			262			259			257
	Total interest expense		2,469			2,700			2,853			2,742			2,743

NET INTEREST INCOME			7,301			7,355			6,909			6,912			6,556
Provision for loan losses			130			250			345			278			51
Net interest income after provision for loan losses			7,171			7,105			6,564			6,634			6,505

NONINTEREST INCOME
Service charges			114			111			114			114			112
Steelhead finance income			1,413			1,277			1,236			1,224			1,147
BOLI Income			149			149			146			143			144
Other non-interest income			523			496			482			570			502
	Total noninterest income		2,199			2,033			1,978			2,051			1,905

NONINTEREST EXPENSE
Salaries and employee benefits			3,725			3,735			3,578			3,543			3,536
Occupancy & equipment expense			832			844			868			854			865
Advertising expense			121			119			125			102			102
Professional expenses			214			188			194			218			198
Data processing expense			397			432			433			412			389
Loss on sale of investments			-			-			-			-			-
Other operating expenses			490			442			595			790			703
	Total noninterest expense		5,779			5,760			5,793			5,919			5,793

Income before taxes			3,591			3,378			2,749			2,766			2,617
Provision for income taxes			919			879			691			708			669

NET INCOME		$	2,672		$	2,499		$	2,058		$	2,058		$	1,948

	Shares outstanding end of quarter		5,073,816			5,124,357			5,245,413			5,258,407			5,298,464
	Average diluted shares outstanding		5,169,497			5,227,865			5,292,256			5,319,429			5,337,992
	Earnings per share	$	0.52		$	0.48		$	0.39		$	0.39		$	0.37
	Diluted earnings per share	$	0.52		$	0.48		$	0.39		$	0.39		$	0.36


	(Dollars in 000's)	3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025
Performance Ratios
	Return on average assets		1.36	%		1.23	%		1.01	%		1.01	%		0.96	%
	Return on average equity		10.81	%		10.26	%		8.68	%		8.94	%		8.75	%
	Net interest margin		4.21	%		3.98	%		3.74	%		3.76	%		3.63	%
	Yield on loans		6.55	%		6.35	%		6.23	%		6.23	%		6.13	%
	Cost of deposits		1.41	%		1.42	%		1.51	%		1.46	%		1.50	%
	Efficiency ratio excluding non-recurring expenses		60.83	%		61.35	%		65.19	%		66.04	%		68.47	%
	Full-time equivalent employees		129			126			133			137			130

Capital
	Community Bank Leverage Ratio		15.04	%		14.78	%		14.29	%		14.03	%		13.80	%
	Book value per share	$	19.31		$	19.05		$	18.35		$	17.75		$	17.09
	Tangible book value per share	$	18.59		$	18.34		$	17.65		$	17.05		$	16.39
	Dividends per Share	$	0.25		$	-		$	-		$	-		$	0.23

Asset Quality
	Allowance for loan losses (ALLL)	$	6,551		$	6,418		$	6,304		$	5,971		$	5,684
	Nonperforming loans (NPLs)	$	7,236		$	4,147		$	4,095		$	3,372		$	4,576
	Nonperforming assets (NPAs)	$	7,236		$	4,147		$	4,095		$	3,372		$	4,576
	Classified assets⁽²⁾	$	10,768		$	11,528		$	13,031		$	9,288		$	10,624
	ALLL as a percentage of loans		1.15	%		1.13	%		1.12	%		1.08	%		1.03	%
	Net charge offs (recoveries) to average loans		0.00	%		0.02	%		0.00	%		0.00	%		0.00	%
	Nonperforming assets as a percentage of total assets		0.93	%		0.53	%		0.51	%		0.42	%		0.56	%
	Classified Asset Ratio⁽³⁾		10.30	%		11.08	%		12.71	%		9.35	%		11.04	%
	Past due as a percentage of total loans		1.27	%		0.73	%		0.87	%		0.96	%		0.88	%

End of period balances
	Total securities and short term deposits	$	128,951		$	145,826		$	173,816		$	178,910		$	185,507
	Total loans	$	568,024		$	567,673		$	560,615		$	553,948		$	551,388
	Total earning assets	$	696,975		$	713,499		$	734,431		$	732,858		$	736,895
	Intangible assets	$	3,660		$	3,670		$	3,681		$	3,690		$	3,701
	Total assets	$	779,202		$	788,629		$	810,317		$	811,022		$	812,180
	Total noninterest bearing deposits	$	224,735		$	220,919		$	239,521		$	242,281		$	241,290
	Total deposits	$	645,355		$	653,967		$	676,942		$	680,053		$	683,853

Average balances
	Total securities and short term deposits	$	137,263		$	176,173		$	181,528		$	181,971		$	179,784
	Total loans	$	559,328		$	556,727		$	551,101		$	547,907		$	546,820
	Total earning assets	$	696,591		$	732,900		$	732,629		$	729,878		$	726,604
	Total assets	$	778,997		$	815,906		$	815,262		$	812,029		$	807,647
	Total noninterest bearing deposits	$	217,778		$	233,390		$	237,705		$	240,960		$	239,660
	Total deposits	$	642,883		$	680,475		$	682,347		$	681,775		$	680,707
⁽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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260422785308/en/

Contacts:

Julia Beattie, President & CEO
(541) 608-8920, julia.beattie@peoplesbank.bank

Source: PBCO Financial Corporation