Pacific Valley Bancorp Achieves Record Levels of Loans, Deposits and Total Assets in the Fourth Quarter of 2025

Rhea-AI Summary

Pacific Valley Bancorp (PVBK) reported unaudited Q4 2025 results: total assets $710.2M (+8.3% YoY), gross loans $535.8M (+10.3% YoY) and total deposits $620.3M (+7.0% YoY). Net income was $774K for Q4 and $3.59M for 2025, down vs. prior periods due to higher personnel expense and a $281K credit loss provision.

Key metrics: net interest margin 3.86% (Q4), allowance for credit losses 1.47% of gross loans, Community Bank Leverage Ratio 12.74%, and a new 16.3% ownership position by Taylor Fresh Foods.

Positive

• Loans +10.3% YoY to $535.8M
• Assets +8.3% YoY to $710.2M
• Net interest income increased to $20.12M for 2025

Negative

• Net income -18.8% YoY to $3.59M for 2025
• Non-interest expense +30.1% YoY to $16.44M driven by personnel
• Earnings per share declined to $0.66 for 2025

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SALINAS, Calif., Jan. 28, 2026 /PRNewswire/ -- Pacific Valley Bancorp (OTC Pink: PVBK), the sole owner of Pacific Valley Bank, announced its unaudited financial results for the fourth quarter of 2025. Total assets increased 8.3% over prior year to $710 million, total loans increased 10.3% to $536 million, and total deposits increased 7.0% to $620 million. Net income is lower than prior year due to investments the Company has made in personnel to drive loan and deposit growth. This expansion strategy positions the Bank for stronger, more sustainable performance in the coming years.

FINANCIAL HIGHLIGHTS:

• Net income for the quarter ended December 31, 2025, was $774 thousand, a decrease of 18.5% or $176 thousand from the quarter ended September 30, 2025. The decrease was primarily the result of a $281 thousand credit loss provision and higher consulting expenses, partially offset by higher loan interest income. Basic earnings per share for the quarter was $0.14, compared to $0.19 per share for the prior quarter. Fourth quarter earnings per share was affected by lower income and higher outstanding shares.
• Net income for the year ended December 31, 2025 was $3.6 million, a decrease of 18.8% or $830 thousand from the year ended December 31, 2024. The decrease was the result of higher personnel expense and the previously mentioned credit loss provision, partially offset by higher loan interest income. Personnel expense was elevated due to a dramatic increase in loan and deposit production personnel.
• Net interest margin for the quarter ended December 31, 2025 was 3.86%, compared with 3.53% for the quarter ended September 30, 2025. The increase was the result of higher loan interest income, increased loan prepayment penalties, and lower money market interest expense. Net interest margin for the year ended December 31, 2025 was 3.60%, compared with 3.37% for the year ended December 31, 2024. The increase was due to higher loan interest income.
• Gross loans outstanding grew by 10.3% or $49.8 million from December 31, 2024 to December 31, 2025, primarily as a result of increased C&I, agricultural real estate, and CRE loans.
• Non-performing loans to gross loans for the year ended December 31, 2025, was 0.04% compared to 0.03% for the year ended December 31, 2024.
• The Community Bank Leverage Ratio for the Company's subsidiary, Pacific Valley Bank, has been consistently strong. As of December 31, 2025 the ratio was 12.74%, compared to 13.03% on September 30, 2025, and 13.33% on December 31, 2024. The well capitalized regulatory requirement for this ratio is 9.00%.

"We are pleased to see our investments in loan production continue to pay off, as loans increased $17 million in the fourth quarter of 2025 while deposits increased by $105 million. Deposits dramatically increased due to a $106 million seasonal, agricultural deposit that came in at the end of December and is running off in January. The cost of deposits for the fourth quarter decreased to 1.96% compared to 2.14% in the third quarter, due to the recent interest rate cuts by the Federal Reserve," said Anker Fanoe, CEO.

"As discussed in our press release dated January 8, 2026, Taylor Fresh Foods, Inc. (Taylor Fresh Foods) a family-owned, Salinas headquartered, global leader in the packaged vegetable industry, has acquired a 16.3% ownership position in Pacific Valley Bancorp. Taylor Fresh Foods did not seek a control position, as their ownership consists of 9.9% of voting common shares and 6.4% of nonvoting preferred shares. We have received an overwhelmingly positive reaction to this news. I am very excited about the support from Taylor Fresh Foods and the opportunity it gives us to grow beyond Monterey County," stated CEO Fanoe.

"Our liquidity position remains strong, as our primary liquidity ratio (cash, deposits held in other banks, and securities as a percentage of total assets) was 23.0% on December 31, 2025, compared to 24.7% for the same month a year ago. As of December 31, 2025, on-balance sheet liquidity totaled $163 million and contingent liquidity, which includes borrowing capacity with the Federal Home Loan Bank, the Federal Reserve Bank, correspondent banks and brokered deposits, was $380 million. Our combined on-balance sheet liquidity and contingent liquidity amount to 121% of our uninsured deposits," said Steve Leen, Executive Vice President and CFO.

As of December 31, 2025, total assets were $710.2 million. Since December 31, 2024, total assets have increased $54.5 million or 8.3%, primarily as a result of an increase in loans. Since September 30, 2025, total assets have increased by $113.9 million or 19.1%, primarily due to an increase in overnight funds resulting from a large, seasonal, agricultural deposit.

The investment securities portfolio totaled $23.2 million as of December 31, 2025, $24.9 million as of September 30, 2025, and $24.9 million as of December 31, 2024; the unrealized losses in the portfolio were $0.1 million, $0.2 million, and $0.8 million for the comparable periods, respectively. The securities portfolio made up 3.3% of total assets and the unrealized loss was 0.6% of the investment portfolio as of December 31, 2025.

Total gross loans outstanding were $535.8 million as of December 31, 2025. Gross loans grew by 10.3% or $49.8 million from December 31, 2024 to December 31, 2025. The Company's loan portfolio increased by $17.4 million or 3.4% during the quarter ended December 31, 2025.

Increased C&I, agricultural real estate, and CRE loans were the predominant growth components compared to prior year quarter, and increased agriculture and C&I loans were the primary components of the increase over prior quarter.

As of December 31, 2025, total deposits were $620.3 million. Total deposits have increased by $40.8 million or 7.0% compared to the prior year quarter. The increase resulted from higher money market and checking accounts partially offset by lower certificate of deposit accounts.

Shareholders' equity was $70.1 million on December 31, 2025, representing growth of $13.7 million or 24.3% over a year ago, primarily attributable to the Taylor Fresh Foods capital raise and increased retained earnings from net income. For the Company's subsidiary, Pacific Valley Bank, equity increased to $76.8 million on December 31, 2025 compared to $76.2 million on September 30, 2025. The Bank is classified as well capitalized with a Community Bank Leverage Ratio of 12.74%, significantly above the regulatory minimum of 9.00%

Net Interest Income was $5.6 million for the quarter ended December 31, 2025, compared to $4.4 million for the quarter ended December 31, 2024. Net interest income was affected by increased interest income of $1.1 million and decreased interest expense of $0.2 million. Net interest margin for the fourth quarter of 2025 was 3.86% compared with 3.30% for the same period in 2024. The increase was the result of higher loan interest income, increased loan prepayment penalties, and lower certificate of deposit interest expense.

Net interest income was $20.1 million for the year ended December 31, 2025, compared to $17.4 million for the year ended December 31, 2024. Net interest income was impacted by increased interest income of $2.6 million and decreased interest expense of $0.1 million. Net interest margin for the year ended 2025 was 3.60% compared with 3.37% for the same period in 2024. The increase was the result of higher loan interest income, partially offset by decreased overnight funds interest income.

A provision for credit losses of $281 thousand was recorded in the year ended December 31, 2025 while no provision was recorded in the year ended December 31, 2024. The credit loss provision resulted from replenishment of the reserve due to a $150 thousand charge-off of a C&I workout loan and growth in the loan portfolio. The allowance for credit losses was 1.47% of gross loans as of December 31, 2025. Credit quality remains very strong; non-performing loans to gross loans as of December 31, 2025 was 0.04% compared to 0.03% as of December 31, 2024.

For the quarter ended December 31, 2025, non-interest income was $365 thousand compared with $337 thousand for the quarter ended December 31, 2024, and $383 thousand for the quarter ended September 30, 2025.

Year to date non-interest expense was $16.4 million compared with $12.6 million for the year ended December 31, 2024, an increase of $3.8 million, or 30.1%. The increase was primarily caused by higher personnel expenses of $2.8 million. Non-interest expense was $4.6 million for the fourth quarter of 2025, an increase of $1.4 million, or 43.2%, compared to the quarter ended December 31, 2024, also primarily related to higher personnel expense from the increase in loan and deposit production staff.

Return on average assets was 0.62% for the year ended December 31, 2025, versus 0.83% for the comparable period of the prior year due to higher personnel expense, partially offset by higher loan interest income. Return on average assets was 0.51% for the three months ended December 31, 2025, versus 0.78% for the comparable period of the prior year due to higher personnel expense and a credit loss provision in December, partially offset by higher loan interest income and lower certificate of deposit expense.

Pacific Valley Bancorp
Selected Financial Data - Unaudited
$ In thousands, Except per Share Data
Assets		December 31, 2025		September 30, 2025		December 31, 2024
Cash and Due From Banks		$140,242		$42,471		$136,959
Investment Securities		23,240		24,867		24,905
Gross Loans Outstanding		535,818		518,442		485,992
Allowance for Credit Losses		(7,877)		(7,703)		(7,619)
Other Assets		18,736		18,161		15,410
Total Assets		$710,159		$596,238		$655,647
Liabilities and Capital		December 31, 2025		September 30, 2025		December 31, 2024
Non-Interest Bearing Deposits		$274,970		$160,545		$260,062
Interest Bearing Deposits		345,358		354,615		319,458
Borrowings		16,934		16,921		16,881
Other Liabilities		2,806		4,219		2,867
Equity		70,091		59,938		56,379
Total Liabilities and Capital		$710,159		$596,238		$655,647
Key Ratios:		December 31, 2025		September 30, 2025		December 31, 2024
Net Loan to Deposits		85.11 %		99.14 %		82.55 %
Allowance for credit losses to gross loans		1.47 %		1.49 %		1.57 %
Non-performing loans to gross loans		0.04 %		0.05 %		0.03 %
Equity to Year-to-Date Average Assets		12.08 %		10.51 %		10.54 %
Book Value per Share		$12.94		$12.11		$11.43
Income Statement, Three Months Ended		December 31, 2025		September 30, 2025		December 31, 2024
Interest Income		$8,428		$7,936		$7,373
Interest Expense		2,794		2,939		2,970
Net Interest Income		5,634		4,997		4,403
Provision for Credit Losses		281		0		0
Non-Interest Income		365		383		337
Non-Interest Expense		4,611		4,028		3,221
Income Tax		333		402		450
Net Income		$774		$950		$1,069
Key Ratios, Three Months Ended:		December 31, 2025		September 30, 2025		December 31, 2024
Earnings per basic share		$0.14		$0.19		$0.22
Net Interest Margin, annualized		3.86 %		3.53 %		3.30 %
Quarter Efficiency Ratio		76.86 %		74.87 %		67.95 %
Return on Average Assets, annualized		0.51 %		0.65 %		0.78 %
Return on Average Equity, annualized		4.68 %		6.32 %		7.53 %

 

Pacific Valley Bancorp
Selected Financial Data - Unaudited
$ In thousands, Except per Share Data
Income Statement, Year Ended		December 31, 2025				December 31, 2024
Interest Income		$31,380				$28,782
Interest Expense		11,260				11,355
Net Interest Income		20,120				17,427
Provision for Credit Losses		281				0
Non-Interest Income		1,711				1,478
Non-Interest Expense		16,439				12,632
Income Tax		1,518				1,850
Net Income		$3,593				$4,423
Key Ratios, Year Ended		December 31, 2025				December 31, 2024
Earnings per basic share		$0.66				$0.90
Net Interest Margin, annualized		3.60 %				3.37 %
Efficiency Ratio		75.30 %				66.82 %
Return on Average Assets		0.62 %				0.83 %
Return on Average Equity		5.93 %				8.05 %

 

ABOUT PACIFIC VALLEY BANCORP:
Pacific Valley Bancorp completed its formation and reorganization as a bank holding company for Pacific Valley Bank on January 4, 2022. The Company is a registered bank holding company with the Federal Reserve Bank, but it has not registered its securities under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and it therefore does not file periodic reports with the Securities and Exchange Commission.

Pacific Valley Bank is a full service business bank that commenced operations in September 2004 to provide exceptional service to customers in Monterey County. Pacific Valley Bank operates business at four locations; administrative headquarters and branch offices in Salinas, King City, Monterey and Santa Cruz, California. The Bank offers a broad range of banking products and services, including credit and deposit services to small and medium sized businesses, agriculture related businesses, non-profit organizations, professional service providers and individuals.

For more information, visit www.pacificvalleybank.com.

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. Accordingly, readers should not place undue reliance on these forward- looking statements. These risks and uncertainties include, but are not limited to, economic conditions in all areas in which the Company conducts business, including the competitive environment for attracting loans and deposits; supply and demand for real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend; changes in the financial performance and/or condition of our borrowers, depositors, key vendors or counterparties; changes in our levels of delinquent loans, nonperforming assets, allowance for loan losses and charge-offs; the effect of changes in laws and regulations, including accounting practices; changes in estimates of future reserve requirements and minimum capital requirements based upon periodic review thereof under relevant regulatory and accounting requirements; fluctuations in the interest rate and market environment; cyber-security threats, including the loss of system functionality, theft, loss of customer data or money; technological changes and the expanding use of technology in banking; the costs and effects of legal, compliance and regulatory actions; acts of war or terrorism, or natural disasters; and other factors beyond the Company's control. These forward-looking statements, which reflect management's views, are as of the date of this release. Pacific Valley Bancorp has no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Contact
Anker Fanoe, Chief Executive Officer (831) 771-4384

 

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SOURCE Pacific Valley Bancorp

FAQ

How much did Pacific Valley Bancorp (PVBK) loans grow in Q4 2025?

Loans grew by 3.4% in Q4 2025, adding $17.4 million to the portfolio. According to the company, gross loans were $535.8M as of December 31, 2025, a 10.3% increase year-over-year driven by C&I, agricultural real estate, and CRE loans.

What caused Pacific Valley Bancorp's (PVBK) net income decline in 2025?

Net income fell mainly from higher personnel costs and a credit loss provision. According to the company, a $281K provision and elevated hiring for loan and deposit production reduced 2025 net income to $3.59M versus prior year.

What is the significance of Taylor Fresh Foods' stake in Pacific Valley Bancorp (PVBK)?

Taylor Fresh Foods acquired a 16.3% ownership position, providing strategic capital and local support. According to the company, the stake includes 9.9% voting common shares and 6.4% nonvoting preferred shares and has been received positively.

How strong is Pacific Valley Bancorp's (PVBK) liquidity and capital position after Q4 2025?

Liquidity and capital remained robust, with on-balance sheet liquidity of $163M and contingent liquidity of $380M. According to the company, total assets were $710.2M and the Community Bank Leverage Ratio was 12.74%, above the 9.00% requirement.

How did Pacific Valley Bancorp's (PVBK) net interest margin perform in Q4 2025?

Net interest margin improved to 3.86% in Q4 2025, reflecting higher loan interest income. According to the company, NIM rose from 3.53% in Q3 2025 due to loan interest income, prepayment penalties, and lower money market expense.