PBCO Financial Corporation Reports Q3 2026 Results

Quarterly deposit growth included $15.0 million in brokered funding, while borrowed funds fell to $29.771 million from $51.429 million.

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10/21/2026 - 06:52 PM EDT

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 $2.6 million and earnings per share of $0.51 for the third quarter of 2026, compared to net income of $2.2 million and $0.43 per share for the second quarter of 2026.

Highlights

Return on average assets increased to 1.34% during the third quarter
Net interest margin increased to 4.38% in the third quarter

“I am pleased to share the strong operating results of the Company for the third quarter of 2026. It evidences the momentum we have as we continue towards completing our merger with Northrim BanCorp, Inc., which was announced in July,” reported Julia Beattie, President and CEO of the Company.

Portfolio loans increased $9.0 million during the third quarter, a 1.6% increase from the second quarter. Credit quality of the loan portfolio remains strong. Deposit balances increased $18.2 million from second quarter of 2026, a 3.0% increase, including $15.0 million in brokered funding purchased during the third quarter. The Bank continues to actively focus on growing core deposits, which is reflected in the positive trend in non-interest bearing demand deposits during the third quarter.

During the third quarter, non-interest income increased by $83 thousand, with the increase primarily attributed to recognition of prior year lost revenue and repayment of legal expenses on a non-performing loan at payoff. Non-interest expenses totaled $6.7 million in the third quarter, an increase of $465 thousand from the second quarter of 2026. During the quarter, the Company incurred $648 thousand in non-recurring professional expenses related to the pending merger. The Bank had previously recognized $170 thousand in one-time expense during the second quarter when it wrote-off the remaining unamortized implementation and current year fees on a non-performing vendor contract.

The Bank’s leverage ratio was 15.81% as of September 30, 2026, compared to 15.40% as of June 30, 2026. The Company’s tangible common equity was $96.7 million as of September 30, 2026, compared to $96.5 million as of June 30, 2026. During the quarter, the company paid a cash dividend of $0.14 per share, reducing retained earnings by $710 thousand.

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)	9/30/2026			6/30/2026			3/31/2026			12/31/2025			9/30/2025
BALANCE SHEET
ASSETS
Cash and due from banks	$	7,806		$	7,714		$	5,319		$	5,959		$	6,194
Federal funds sold		-			-			-			-			-
Interest bearing deposits		13,715			14,801			22,451			31,747			53,846
Investment securities		89,980			95,897			106,500			114,079			119,970
Loans held for sale		-			-			-			-			-
Loans held for investment, net of unearned income		579,163			570,142			568,024			567,673			560,615
Total Loans, net of deferred fees and costs		579,163			570,142			568,024			567,673			560,615
Allowance for loan losses		(6,160	)		(6,445	)		(6,551	)		(6,418	)		(6,304	)
Premises and equipment, net		27,414			27,519			27,643			27,847			28,480
Bank owned life insurance		18,593			18,420			18,269			17,846			17,695
Other Assets		42,235			48,593			37,547			29,896			29,821
Total assets	$	772,746		$	776,641		$	779,202		$	788,629		$	810,317

LIABILITIES
Deposits
Demand - non-interest bearing	$	227,613		$	226,160		$	224,735		$	220,919		$	239,521
Demand - interest bearing		158,921			167,789			183,590			199,131			189,924
Money market and savings		218,419			207,112			226,985			223,944			236,949
Time deposits of less than $250,000		22,140			7,206			7,221			7,489			7,476
Time deposits of more than $250,000		1,236			1,870			2,824			2,484			3,072
Total deposits	$	628,329		$	610,137		$	645,355		$	653,967		$	676,942

Borrowed funds		29,771			51,429			27,792			27,894			28,274
Other liabilities		14,251			14,915			8,061			9,139			8,853
Total liabilities	$	672,351		$	676,481		$	681,208		$	691,000		$	714,069

STOCKHOLDERS' EQUITY
Common stock, surplus & retained earnings	$	109,216		$	107,308		$	105,087		$	104,634		$	104,022
Accumulated other comprehensive income, net of tax		(8,821	)		(7,148	)		(7,093	)		(7,005	)		(7,774	)
Total stockholders' equity	$	100,395		$	100,160		$	97,994		$	97,629		$	96,248

Total liabilities & stockholders' equity	$	772,746		$	776,641		$	779,202		$	788,629		$	810,317


Consolidated Statements of Income
(Dollars in 000's)	3rd Quarter 2026		2nd Quarter 2026		1st Quarter 2026		4th Quarter 2025		3rd Quarter 2025
INCOME STATEMENT
INTEREST INCOME
Loans	$	9,628	$	9,044	$	9,129	$	9,007	$	8,749
Investments		378		403		437		462		477
Federal funds sold and due from banks		151		151		204		586		536
Total interest income		10,157		9,598		9,770		10,055		9,762

INTEREST EXPENSE
Deposits		2,121		2,094		2,208		2,438		2,591
Borrowed funds		385		369		261		262		262
Total interest expense		2,506		2,463		2,469		2,700		2,853

NET INTEREST INCOME		7,651		7,135		7,301		7,355		6,909
Provision for loan losses		101		510		130		250		345
Net interest income after provision for loan losses		7,550		6,625		7,171		7,105		6,564

NONINTEREST INCOME
Service charges		127		123		114		111		114
Steelhead finance income		1,866		1,844		1,413		1,277		1,236
BOLI Income		140		151		149		149		146
Other non-interest income		551		483		523		496		482
Total noninterest income		2,684		2,601		2,199		2,033		1,978

NONINTEREST EXPENSE
Salaries and employee benefits		3,827		3,754		3,725		3,735		3,578
Occupancy & equipment expense		835		805		832		844		868
Advertising expense		163		133		121		119		125
Professional expenses		854		223		214		188		194
Data processing expense		385		614		397		432		433
Loss on sale of investments		-		-		-		-		-
Other operating expenses		625		695		490		442		595
Total noninterest expense		6,689		6,224		5,779		5,760		5,793

Income before taxes		3,545		3,002		3,591		3,378		2,749
Provision for income taxes		928		781		919		879		691

NET INCOME	$	2,617	$	2,221	$	2,672	$	2,499	$	2,058

Shares outstanding end of quarter		5,072,054		5,072,054		5,073,816		5,124,357		5,245,413
Average diluted shares outstanding		5,133,967		5,133,967		5,169,497		5,227,865		5,292,256
Earnings per share	$	0.52	$	0.44	$	0.52	$	0.48	$	0.39
Diluted earnings per share	$	0.51	$	0.43	$	0.52	$	0.48	$	0.39


(Dollars in 000's)	9/30/2026			6/30/2026			3/31/2026			12/31/2025			9/30/2025
Performance Ratios
Return on average assets		1.34	%		1.15	%		1.37	%		1.23	%		1.01	%
Return on average equity		10.35	%		8.93	%		10.81	%		10.26	%		8.68	%
Net interest margin		4.38	%		4.20	%		4.21	%		3.98	%		3.74	%
Yield on loans		6.61	%		6.39	%		6.55	%		6.35	%		6.23	%
Cost of deposits		1.35	%		1.35	%		1.41	%		1.42	%		1.51	%
Efficiency ratio excluding non-recurring expenses		58.45	%		63.93	%		60.83	%		61.35	%		65.19	%
Full-time equivalent employees		141			138			129			126			133

Capital
Community Bank Leverage Ratio		15.81	%		15.40	%		15.04	%		14.78	%		14.29	%
Book value per share	$	19.79		$	19.75		$	19.31		$	19.05		$	18.35
Tangible book value per share	$	19.08		$	19.03		$	18.59		$	18.34		$	17.65
Dividends per Share	$	0.14		$	-		$	0.25		$	-		$	-

Asset Quality
Allowance for loan losses (ALLL)	$	6,160		$	6,445		$	6,551		$	6,418		$	6,304
Nonperforming loans (NPLs)	$	5,648		$	5,416		$	7,236		$	4,147		$	4,095
Nonperforming assets (NPAs)	$	5,648		$	5,416		$	7,236		$	4,147		$	4,095
Classified assets⁽²⁾	$	23,380		$	23,496		$	10,768		$	11,528		$	13,031
ALLL as a percentage of loans		1.06	%		1.13	%		1.15	%		1.13	%		1.12	%
Net charge offs (recoveries) to average loans		0.07	%		0.11	%		0.00	%		0.02	%		0.00	%
Nonperforming assets as a percentage of total assets		0.73	%		0.70	%		0.93	%		0.53	%		0.51	%
Classified Asset Ratio⁽³⁾		21.94	%		22.04	%		10.30	%		11.08	%		12.71	%
Past due as a percentage of total loans		0.98	%		1.06	%		1.27	%		0.73	%		0.87	%

End of period balances
Total securities and short term deposits	$	103,695		$	110,698		$	128,951		$	145,826		$	173,816
Total loans	$	579,163		$	570,142		$	568,024		$	567,673		$	560,615
Total earning assets	$	682,858		$	680,840		$	696,975		$	713,499		$	734,431
Intangible assets	$	3,640		$	3,650		$	3,660		$	3,670		$	3,681
Total assets	$	772,746		$	776,641		$	779,202		$	788,629		$	810,317
Total noninterest bearing deposits	$	227,613		$	226,160		$	224,735		$	220,919		$	239,521
Total deposits	$	628,329		$	610,137		$	645,355		$	653,967		$	676,942

Average balances
Total securities and short term deposits	$	114,026		$	121,532		$	137,263		$	176,173		$	181,528
Total loans	$	572,025		$	568,134		$	559,328		$	556,727		$	551,101
Total earning assets	$	686,051		$	689,666		$	696,591		$	732,900		$	732,629
Total assets	$	783,484		$	773,597		$	778,997		$	815,906		$	815,262
Total noninterest bearing deposits	$	228,809		$	223,996		$	217,778		$	233,390		$	237,705
Total deposits	$	626,921		$	623,810		$	642,883		$	680,475		$	682,347
Equity	$	101,101		$	99,488		$	98,889		$	97,401		$	94,874

⁽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.