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PBCO Financial Corporation Reports Q1 2026 Results

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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.

 

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

Source: PBCO Financial Corporation

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