PBCO Financial Corporation Announces Securities Portfolio Repositioning

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12/08/2023 - 06:26 PM EST

MEDFORD, Ore.--(BUSINESS WIRE)-- PBCO Financial Corporation (OTCPK: “PBCO”), the holding company (Company) for People’s Bank of Commerce (Bank), announced today that the Bank completed a repositioning strategy for our investment securities portfolio. The Bank sold approximately $49.4 million in market value of investment securities classified as available-for-sale with an average yield of 1.42% for an estimated after-tax loss of approximately $5.1 million. This sale will cause the Company to report a net loss for the fourth quarter of 2023. The Company will use the net proceeds to rebalance the composition of the Bank’s balance sheet. The Company anticipates this repositioning will enhance net interest income and will be neutral to tangible book value per share.

Julia Beattie, President & Chief Executive Officer of PBCO Financial Corporation commented, “This is a prudent step to improve our balance sheet position and enhance our earnings going forward, while preserving our liquidity and capital strength.”

The Bank had strong capital ratios as of September 30, 2023, and subsequent to this transaction will continue to exceed the well-capitalized regulatory capital guidelines.