MEDFORD, Ore.–(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 $2.5 million and earnings per share of $0.48 for the fourth quarter of 2025, compared to net income of $2.1 million and $0.39 per share for the third quarter of 2025. For the year ended 2025, earnings per share were $1.63 compared to $1.52 in 2024.
Highlights
- Loans grew by $7.1 million or 1.3% in the fourth quarter and $21.7 million or 3.9% for the year ended 2025
- Return on average assets increased to 1.22% versus 1.01% in the prior quarter
- Tangible book value per share of $18.34, an increase of 3.9% in the fourth quarter
- Completed stock repurchases for 35,063 shares at a weighted average price of $17.40 per share during the quarter
- Completed the termination of our Employee Stock Ownership Plan, whereby the Company repurchased 95,554 shares at $16.94 per share in fourth quarter
“I’m pleased with our 2025 results, which displayed improved efficiency, expanded net interest margin and stronger profitability with higher Return on Average Assets and Earnings per Share. We benefited from moderate loan growth, which contributed to our higher interest income and lower funding costs during the year. Together, these factors delivered solid growth in net income for 2025,” reported Julia Beattie, President and CEO.
The Bank’s loan portfolio increased to $567.7 million, or an increase of 1.3% over the prior quarter, and increased $21.1 million, or 3.9%, for the year ended 2025. “While loan growth was stable during the year, there were some early headwinds from unplanned prepayments that slowed our growth rate during the year,” noted Beattie.
Deposits were down $23.0 million from third quarter to fourth quarter, a 3.4% decrease. For the year, deposits ended at $654.0 million, a 2.9% annual decrease. “The notable decrease in deposits during the fourth quarter was due to a few large clients who completed transactions that took deposits out of the Bank, which led to the net decrease in deposits for the year,” added Beattie.
The investment portfolio shrank 4.9% to $114.1 million during the fourth quarter from $120.0 million at the end of the third quarter. 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 $7.0 million at the end of the fourth quarter compared to $7.8 million at the end of the third quarter of 2025.
During the fourth quarter, non-interest income increased by $55 thousand, with the increase primarily attributed to an increase in factoring revenue of $41 thousand for the quarter. For the year, non-interest income increased $153 thousand, also the result of a $135 thousand increase in factoring revenue in 2025 versus 2024.
Non-interest expenses totaled $5.8 million in the fourth quarter, down $33 thousand from the third quarter of 2025. During the quarter, personnel expenses were up $157 thousand due to year-end employee benefit accruals. However, this was offset by a reversal of the reserve on unfunded loan commitments, with a reversal of $206 thousand in expense during the fourth quarter as construction loan commitments were funded. For the year, non-interest expense was up $1.1 million, a 4.8% increase versus 2024. During 2025, personnel expense increased $1.4 million, while all other non-interest expenses decreased $350 thousand, with $251 thousand resulting from a credit to the reserve for unfunded loan commitments in 2025.
The Bank’s leverage ratio was 14.78% as of December 31, 2025, compared to 14.29% as of September 30, 2025. The Company’s tangible common equity was $94.0 million as of December 31, 2025, compared to $92.6 million as of September 30, 2025.
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) | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | ||||||||||||||
| BALANCE SHEET | |||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks |
$ |
5,959 |
|
$ |
6,194 |
|
$ |
6,917 |
|
$ |
4,909 |
|
$ |
7,247 |
|
||||
| Federal funds sold |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
||||
| Interest bearing deposits |
|
31,747 |
|
|
53,846 |
|
|
51,060 |
|
|
53,592 |
|
|
42,588 |
|
||||
| Investment securities |
|
114,079 |
|
|
119,970 |
|
|
127,850 |
|
|
131,915 |
|
|
132,606 |
|
||||
| Loans held for sale |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
||||
| Loans held for investment, net of unearned income |
|
567,673 |
|
|
560,615 |
|
|
553,948 |
|
|
551,388 |
|
|
546,599 |
|
||||
| Total Loans, net of deferred fees and costs |
|
567,673 |
|
|
560,615 |
|
|
553,948 |
|
|
551,388 |
|
|
546,599 |
|
||||
| Allowance for loan losses |
|
(6,418 |
) |
|
(6,304 |
) |
|
(5,971 |
) |
|
(5,684 |
) |
|
(5,627 |
) |
||||
| Premises and equipment, net |
|
27,847 |
|
|
28,480 |
|
|
28,797 |
|
|
28,878 |
|
|
29,125 |
|
||||
| Bank owned life insurance |
|
17,846 |
|
|
17,695 |
|
|
17,516 |
|
|
17,373 |
|
|
17,222 |
|
||||
| Other Assets |
|
29,896 |
|
|
29,821 |
|
|
30,905 |
|
|
29,809 |
|
|
28,817 |
|
||||
| Total assets |
$ |
788,629 |
|
$ |
810,317 |
|
$ |
811,022 |
|
$ |
812,180 |
|
$ |
798,577 |
|
||||
| LIABILITIES | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Demand – non-interest bearing |
$ |
220,919 |
|
$ |
239,521 |
|
$ |
242,281 |
|
$ |
241,290 |
|
$ |
252,441 |
|
||||
| Demand – interest bearing |
|
199,131 |
|
|
189,924 |
|
|
205,034 |
|
|
222,690 |
|
|
200,029 |
|
||||
| Money market and savings |
|
223,944 |
|
|
236,949 |
|
|
222,265 |
|
|
208,683 |
|
|
208,455 |
|
||||
| Time deposits of less than $250,000 |
|
7,489 |
|
|
7,476 |
|
|
7,716 |
|
|
8,449 |
|
|
9,334 |
|
||||
| Time deposits of more than $250,000 |
|
2,484 |
|
|
3,072 |
|
|
2,757 |
|
|
2,741 |
|
|
3,535 |
|
||||
| Total deposits |
$ |
653,967 |
|
$ |
676,942 |
|
$ |
680,053 |
|
$ |
683,853 |
|
$ |
673,794 |
|
||||
| Borrowed funds |
|
27,894 |
|
|
28,274 |
|
|
28,381 |
|
|
28,487 |
|
|
28,593 |
|
||||
| Other liabilities |
|
9,139 |
|
|
8,853 |
|
|
9,248 |
|
|
9,301 |
|
|
8,570 |
|
||||
| Total liabilities |
$ |
691,000 |
|
$ |
714,069 |
|
$ |
717,682 |
|
$ |
721,641 |
|
$ |
710,957 |
|
||||
| STOCKHOLDERS’ EQUITY | |||||||||||||||||||
| Common stock, surplus & retained earnings |
$ |
104,634 |
|
$ |
104,022 |
|
$ |
102,138 |
|
$ |
100,643 |
|
$ |
99,907 |
|
||||
| Accumulated other comprehensive income, net of tax |
|
(7,005 |
) |
|
(7,774 |
) |
|
(8,798 |
) |
|
(10,104 |
) |
|
(12,287 |
) |
||||
| Total stockholders’ equity |
$ |
97,629 |
|
$ |
96,248 |
|
$ |
93,340 |
|
$ |
90,539 |
|
$ |
87,620 |
|
||||
| Total liabilities & stockholders’ equity |
$ |
788,629 |
|
$ |
810,317 |
|
$ |
811,022 |
|
$ |
812,180 |
|
$ |
798,577 |
|
||||
| Consolidated Statements of Income | |||||||||||||||||||
| (Dollars in 000’s) | 4th Quarter 2025 |
3rd Quarter 2025 |
2nd Quarter 2025 |
1st Quarter 2025 |
4th Quarter 2024 |
||||||||||||||
| INCOME STATEMENT | |||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||
| Loans |
$ |
9,007 |
|
$ |
8,749 |
|
$ |
8,595 |
|
$ |
8,351 |
|
$ |
8,575 |
|
||||
| Investments |
|
462 |
|
|
477 |
|
|
496 |
|
|
517 |
|
|
524 |
|
||||
| Federal funds sold and due from banks |
|
586 |
|
|
536 |
|
|
563 |
|
|
431 |
|
|
447 |
|
||||
| Total interest income |
|
10,055 |
|
|
9,762 |
|
|
9,654 |
|
|
9,299 |
|
|
9,546 |
|
||||
| INTEREST EXPENSE | |||||||||||||||||||
| Deposits |
|
2,438 |
|
|
2,591 |
|
|
2,483 |
|
|
2,486 |
|
|
2,566 |
|
||||
| Borrowed funds |
|
262 |
|
|
262 |
|
|
259 |
|
|
257 |
|
|
262 |
|
||||
| Total interest expense |
|
2,700 |
|
|
2,853 |
|
|
2,742 |
|
|
2,743 |
|
|
2,828 |
|
||||
| NET INTEREST INCOME |
|
7,355 |
|
|
6,909 |
|
|
6,912 |
|
|
6,556 |
|
|
6,718 |
|
||||
| Provision for loan losses |
|
250 |
|
|
345 |
|
|
278 |
|
|
51 |
|
|
(506 |
) |
||||
| Net interest income after provision for loan losses |
|
7,105 |
|
|
6,564 |
|
|
6,634 |
|
|
6,505 |
|
|
7,224 |
|
||||
| NONINTEREST INCOME | |||||||||||||||||||
| Service charges |
|
111 |
|
|
114 |
|
|
114 |
|
|
112 |
|
|
119 |
|
||||
| Steelhead finance income |
|
1,277 |
|
|
1,236 |
|
|
1,224 |
|
|
1,147 |
|
|
1,181 |
|
||||
| BOLI Income |
|
149 |
|
|
146 |
|
|
143 |
|
|
144 |
|
|
139 |
|
||||
| Other non-interest income |
|
496 |
|
|
482 |
|
|
570 |
|
|
502 |
|
|
456 |
|
||||
| Total noninterest income |
|
2,033 |
|
|
1,978 |
|
|
2,051 |
|
|
1,905 |
|
|
1,895 |
|
||||
| NONINTEREST EXPENSE | |||||||||||||||||||
| Salaries and employee benefits |
|
3,735 |
|
|
3,578 |
|
|
3,543 |
|
|
3,536 |
|
|
3,013 |
|
||||
| Occupancy & equipment expense |
|
844 |
|
|
868 |
|
|
854 |
|
|
865 |
|
|
894 |
|
||||
| Advertising expense |
|
119 |
|
|
125 |
|
|
102 |
|
|
102 |
|
|
119 |
|
||||
| Professional expenses |
|
188 |
|
|
194 |
|
|
218 |
|
|
198 |
|
|
220 |
|
||||
| Data processing expense |
|
432 |
|
|
433 |
|
|
412 |
|
|
389 |
|
|
375 |
|
||||
| Loss on sale of investments |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
||||
| Other operating expenses |
|
442 |
|
|
595 |
|
|
790 |
|
|
703 |
|
|
877 |
|
||||
| Total noninterest expense |
|
5,760 |
|
|
5,793 |
|
|
5,919 |
|
|
5,793 |
|
|
5,498 |
|
||||
| Income before taxes |
|
3,378 |
|
|
2,749 |
|
|
2,766 |
|
|
2,617 |
|
|
3,621 |
|
||||
| Provision for income taxes |
|
879 |
|
|
691 |
|
|
708 |
|
|
669 |
|
|
904 |
|
||||
| NET INCOME |
$ |
2,499 |
|
$ |
2,058 |
|
$ |
2,058 |
|
$ |
1,948 |
|
$ |
2,717 |
|
||||
| Shares outstanding end of quarter |
|
5,124,357 |
|
|
5,245,413 |
|
|
5,258,407 |
|
|
5,298,464 |
|
|
5,298,464 |
|
||||
| Average diluted shares outstanding |
|
5,227,865 |
|
|
5,292,256 |
|
|
5,319,429 |
|
|
5,337,992 |
|
|
5,311,751 |
|
||||
| Earnings per share |
$ |
0.48 |
|
$ |
0.39 |
|
$ |
0.39 |
|
$ |
0.37 |
|
$ |
0.51 |
|
||||
| Diluted earnings per share |
$ |
0.48 |
|
$ |
0.39 |
|
$ |
0.39 |
|
$ |
0.36 |
|
$ |
0.51 |
|
||||
| (Dollars in 000’s) |
12/31/2025 |
9/30/2025 |
6/30/2025 |
3/31/2025 |
12/31/2024 |
||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Return on average assets |
|
1.22 |
% |
|
1.01 |
% |
|
1.01 |
% |
|
0.96 |
% |
|
1.34 |
% |
||||
| Return on average equity |
|
10.26 |
% |
|
8.68 |
% |
|
8.94 |
% |
|
8.75 |
% |
|
12.46 |
% |
||||
| Net interest margin |
|
3.98 |
% |
|
3.74 |
% |
|
3.76 |
% |
|
3.63 |
% |
|
3.67 |
% |
||||
| Yield on loans |
|
6.35 |
% |
|
6.23 |
% |
|
6.23 |
% |
|
6.13 |
% |
|
6.06 |
% |
||||
| Cost of deposits |
|
1.42 |
% |
|
1.51 |
% |
|
1.46 |
% |
|
1.50 |
% |
|
1.49 |
% |
||||
| Efficiency ratio excluding non-recurring expenses |
|
61.35 |
% |
|
65.19 |
% |
|
66.04 |
% |
|
68.47 |
% |
|
63.83 |
% |
||||
| Full-time equivalent employees |
|
126 |
|
|
133 |
|
|
137 |
|
|
130 |
|
|
135 |
|
||||
| Capital | |||||||||||||||||||
| Community Bank Leverage Ratio |
|
14.78 |
% |
|
14.29 |
% |
|
14.03 |
% |
|
13.80 |
% |
|
13.92 |
% |
||||
| Book value per share |
$ |
19.05 |
|
$ |
18.35 |
|
$ |
17.75 |
|
$ |
17.09 |
|
$ |
16.54 |
|
||||
| Tangible book value per share |
$ |
18.34 |
|
$ |
17.65 |
|
$ |
17.05 |
|
$ |
16.39 |
|
$ |
15.84 |
|
||||
| Dividends per Share |
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
0.23 |
|
$ |
– |
|
||||
| Asset Quality | |||||||||||||||||||
| Allowance for loan losses (ALLL) |
$ |
6,418 |
|
$ |
6,304 |
|
$ |
5,971 |
|
$ |
5,684 |
|
$ |
5,627 |
|
||||
| Nonperforming loans (NPLs) |
$ |
4,147 |
|
$ |
4,095 |
|
$ |
3,372 |
|
$ |
4,576 |
|
$ |
944 |
|
||||
| Nonperforming assets (NPAs) |
$ |
4,147 |
|
$ |
4,095 |
|
$ |
3,372 |
|
$ |
4,576 |
|
$ |
944 |
|
||||
| Classified assets(2) |
$ |
11,528 |
|
$ |
13,031 |
|
$ |
9,288 |
|
$ |
10,624 |
|
$ |
8,119 |
|
||||
| ALLL as a percentage of loans |
|
1.13 |
% |
|
1.12 |
% |
|
1.08 |
% |
|
1.03 |
% |
|
1.03 |
% |
||||
| Net charge offs (recoveries) to average loans |
|
0.02 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
0.01 |
% |
||||
| Nonperforming assets as a percentage of total assets |
|
0.53 |
% |
|
0.51 |
% |
|
0.42 |
% |
|
0.56 |
% |
|
0.12 |
% |
||||
| Classified Asset Ratio(3) |
|
11.08 |
% |
|
12.71 |
% |
|
9.35 |
% |
|
11.04 |
% |
|
8.71 |
% |
||||
| Past due as a percentage of total loans |
|
0.73 |
% |
|
0.87 |
% |
|
0.96 |
% |
|
0.88 |
% |
|
0.49 |
% |
||||
| End of period balances | |||||||||||||||||||
| Total securities and short term deposits |
$ |
145,826 |
|
$ |
173,816 |
|
$ |
178,910 |
|
$ |
185,507 |
|
$ |
175,194 |
|
||||
| Total loans |
$ |
567,673 |
|
$ |
560,615 |
|
$ |
553,948 |
|
$ |
551,388 |
|
$ |
546,599 |
|
||||
| Total earning assets |
$ |
713,499 |
|
$ |
734,431 |
|
$ |
732,858 |
|
$ |
736,895 |
|
$ |
721,793 |
|
||||
| Intangible assets |
$ |
3,670 |
|
$ |
3,681 |
|
$ |
3,690 |
|
$ |
3,701 |
|
$ |
3,711 |
|
||||
| Total assets |
$ |
788,629 |
|
$ |
810,317 |
|
$ |
811,022 |
|
$ |
812,180 |
|
$ |
798,577 |
|
||||
| Total noninterest bearing deposits |
$ |
220,919 |
|
$ |
239,521 |
|
$ |
242,281 |
|
$ |
241,290 |
|
$ |
252,441 |
|
||||
| Total deposits |
$ |
653,967 |
|
$ |
676,942 |
|
$ |
680,053 |
|
$ |
683,853 |
|
$ |
673,794 |
|
||||
| Average balances | |||||||||||||||||||
| Total securities and short term deposits |
$ |
176,173 |
|
$ |
181,528 |
|
$ |
181,971 |
|
$ |
179,784 |
|
$ |
178,899 |
|
||||
| Total loans |
$ |
556,727 |
|
$ |
551,101 |
|
$ |
547,907 |
|
$ |
546,820 |
|
$ |
547,779 |
|
||||
| Total earning assets |
$ |
732,900 |
|
$ |
732,629 |
|
$ |
729,878 |
|
$ |
726,604 |
|
$ |
726,678 |
|
||||
| Total assets |
$ |
815,906 |
|
$ |
815,262 |
|
$ |
812,029 |
|
$ |
807,647 |
|
$ |
808,874 |
|
||||
| Total noninterest bearing deposits |
$ |
233,390 |
|
$ |
237,705 |
|
$ |
240,960 |
|
$ |
239,660 |
|
$ |
253,070 |
|
||||
| Total deposits |
$ |
680,475 |
|
$ |
682,347 |
|
$ |
681,775 |
|
$ |
680,707 |
|
$ |
683,359 |
|
||||
| (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. | |||||||||||||||||||
Contacts
Julia Beattie, President & CEO
(541) 608-8920, [email protected]
