Pacific Valley Bancorp Shows Continued Growth in Loans and Deposits and Improved Profitability in the First Quarter of 2026

Rhea-AI Summary

Pacific Valley Bancorp (OTC Pink: PVBK) reported unaudited Q1 2026 results on April 27, 2026: total assets $627.8M, gross loans $529.4M (+7.7% YoY), deposits $536.6M (+12.0% YoY) and net income $1.16M (EPS $0.20).

Net interest income rose to $5.7M; net interest margin 3.75%. Allowance for credit losses was 1.49% of loans; non-performing loans 0.04%. Community Bank Leverage Ratio was 12.51%, above the 9.00% well-capitalized threshold.

AI-generated analysis. Not financial advice.

Positive

• Total assets rose to $627.8M (+11.3% YoY)
• Gross loans increased 7.7% YoY to $529.4M
• Total deposits grew 12.0% YoY to $536.6M
• Net income improved to $1.16M (EPS $0.20)
• Strong capital: Community Bank Leverage Ratio 12.51%

Negative

• Non-interest expense rose 15.1% YoY to $4.4M
• Net interest margin fell sequentially from 3.86% to 3.75%
• Total assets decreased 11.6% sequentially from Dec 31, 2025 to $627.8M

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SALINAS, Calif., April 27, 2026 /PRNewswire/ -- Pacific Valley Bancorp (OTC Pink: PVBK), the sole owner of Pacific Valley Bank, announced its unaudited financial results for the first quarter of 2026. Total assets increased 11.3% over the quarter ending March 31, 2025, to $627.8 million, total loans increased 7.7% to $529.4 million, and total deposits increased 12.0% to $536.6 million. Net income exceeded the quarter ending March 31, 2025, as higher interest income and lower interest expense offset higher non-interest expense.

FINANCIAL HIGHLIGHTS:

• Net income for the quarter ending March 31, 2026, was $1.2 million, an increase of 49.7% or $385 thousand from the quarter ending December 31, 2025. The increase was primarily the result of higher overnight funds interest income, lower deposit interest expense, no loan loss provision, and lower consulting expenses, partially offset by lower loan interest income. Basic earnings per share for the quarter were $0.2, compared to $0.13 per share for the prior quarter in 2025.
• Net interest margin for the quarter ending March 31, 2026, was 3.75%, compared with 3.86% for the quarter ending December 31, 2025, and 3.43% for the quarter ending March 31, 2025. The prior quarter benefited from loan prepayment penalties. The increase over the prior year quarter was due to higher loan interest income, flat deposit interest expense and lower borrowing expenses.
• Gross loans grew by 7.7% or $37.8 million from March 31, 2025 to March 31, 2026, primarily due to increased C&I, agricultural real estate, and CRE loans.
• Non-performing loans to gross loans for the quarter ending March 31, 2026, was 0.04% compared to 0.03% for the quarter ending March 31, 2025.
• The Community Bank Leverage Ratio for the Company's subsidiary, Pacific Valley Bank, has been consistently strong. As of March 31, 2026, the ratio was 12.51%, compared to 12.74% on December 31, 2025, and 13.27% on March 31, 2025. The well capitalized regulatory requirement for this ratio is 9.00%.

"We are pleased to see an improvement in net income to $1.2 million in the first quarter of 2026 as we maintain growth in loans and deposits over the prior year quarter. Loans increased $38 million and deposits increased by $58 million from March 31, 2025. The cost of deposits for the first quarter of 2026 decreased to 1.82% compared to 1.96% in the fourth quarter of 2025, due to the continuing impact of Federal Reserve rate cuts," said Anker Fanoe, CEO.

"We are committed to an organic growth strategy for loans and deposits and have made a major investment in personnel to make that happen. There will be ebbs and flows in profitability as the growth materializes, but our goal is to increase long term, sustainable performance. As we grow, our momentum will increase and our efficiency will improve. I am pleased to announce we have completed the relocation of our Salinas branch office on 422 Main Street to a new, expanded location at 1097 South Main Street with a much-improved customer experience," 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 14.0% on March 31, 2026, compared to 11.2% for the same month a year ago. As of March 31, 2026, on-balance sheet liquidity totaled $88 million and contingent liquidity, which includes borrowing capacity with the Federal Home Loan Bank, the Federal Reserve Bank, correspondent banks and brokered deposits, was $367 million. Our combined on-balance sheet liquidity and contingent liquidity amount to 142% of our uninsured deposits," said Steve Leen, Executive Vice President and CFO.

As of March 31, 2026, total assets were $627.8 million. Since March 31, 2025, total assets have increased $63.9 million or 11.3%, primarily because of an increase in loans and overnight funds. Since December 31, 2025, total assets have decreased by $82.4 million or 11.6%, primarily due to a decrease in overnight funds resulting from a large, seasonal, agricultural deposit.

The investment securities portfolio totaled $22.6 million as of March 31, 2026, $23.2 million as of December 31, 2025, and $24.4 million as of March 31, 2025; the unrealized losses in the portfolio were $0.2 million, $0.1 million, and $0.6 million for the comparable periods, respectively. The securities portfolio made up 3.6% of total assets and the unrealized loss was 1.0% of the investment portfolio as of March 31, 2026.

Total gross loans were $529.4 million as of March 31, 2026. Gross loans grew by 7.7% or $37.8 million from March 31, 2025 to March 31, 2026. Increased C&I, agricultural real estate, and CRE loans were the main components of the increase over the quarter ending March 31, 2025. The Company's loan portfolio decreased by $6.4 million or 1.2% during the quarter ending March 31, 2026 compared to the quarter ending December 31, 2025. Decreased agricultural loans were the main factor for the decline in loans from the quarter ending December 31, 2025.

As of March 31, 2026, total deposits were $536.6 million. Total deposits have increased by $57.5 million or 12.0% compared to the prior year quarter. The increase resulted from higher money market and checking accounts partially offset by lower interest checking accounts.

Shareholders' equity was $71.2 million on March 31, 2026, representing growth of $13.7 million or 23.7% 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 $78.1 million on March 31, 2026, compared to $76.8 million on December 31, 2025. The Bank is classified as well capitalized with a Community Bank Leverage Ratio of 12.51%, significantly above the regulatory minimum of 9.00%.

Net Interest Income was $5.7 million for the quarter ending March 31, 2026, compared to $4.6 million for the quarter ending March 31, 2025. The increase resulted from higher interest income of $1.0 million and decreased interest expense of $72 thousand. Net interest margin for the first quarter of 2026 was 3.75% compared with 3.43% for the same period in 2025. The increase was the result of higher loan interest income, higher income from overnight funds and lower borrowing expenses.

No provision for credit losses was recorded in the quarters ending March 31, 2026 or March 31, 2025. The lack of provision for those periods reflects the quality of the Company's loan portfolio. The allowance for credit losses was 1.49% of gross loans as of March 31, 2026, compared to 1.55% as of December 31, 2025. Credit quality remains very strong; non-performing loans to gross loans as of March 31, 2026, was 0.04% compared to 0.03% as of March 31, 2025.

For the quarter ending March 31, 2026, non-interest income was $356 thousand compared to $567 thousand for the quarter ending March 31, 2025, and $365 thousand for the quarter ending December 31, 2025. Non-interest income in the first quarter of 2025 was elevated due to income from a lease termination agreement.

Non-interest expense was $4.4 million for the first quarter of 2026, an increase of $577 thousand, or 15.1%, compared to the quarter ending March 31, 2025, primarily related to higher personnel and premises expense. Non-interest expense showed a decrease of $215 thousand, or 4.7%, compared to the quarter ending December 31, 2025, primarily related to lower consulting and marketing expenses.

Return on average assets was 0.74% for the three months ending March 31, 2026, versus 0.67% for the comparable period of the prior year due to higher net interest income, partially offset by higher personnel expenses.

Pacific Valley Bancorp Selected Financial Data - Unaudited $ In thousands, Except per Share Data
Assets	March 31, 2026		December 31, 2025		March 31, 2025
Cash and Due From Banks	$65,150		$140,242		$38,873
Investment Securities	22,605		23,240		24,431
Gross Loans Outstanding	529,448		535,818		491,654
Allowance for Credit Losses	(7,900)		(7,877)		(7,640)
Other Assets	18,481		18,736		16,606
Total Assets	$627,784		$710,159		$563,924
Liabilities and Capital	March 31, 2026		December 31, 2025		March 31, 2025
Non-Interest Bearing Deposits	$163,017		$274,970		$149,549
Interest Bearing Deposits	373,549		345,358		329,500
Borrowings	16,947		16,934		23,894
Other Liabilities	3,064		2,806		3,431
Equity	71,207		70,091		57,550
Total Liabilities and Capital	$627,784		$710,159		$563,924
Key Ratios:	March 31, 2026		December 31, 2025		March 31, 2025
Net Loan to Deposits	97.20 %		85.11 %		101.04 %
Allowance for credit losses to gross loans	1.49 %		1.47 %		1.55 %
Non-performing loans to gross loans	0.04 %		0.04 %		0.03 %
Equity to Year-to-Date Average Assets	11.31 %		12.08 %		10.27 %
Book Value per Share	$12.21		$12.01		$11.60
Income Statement, Three Months Ended	March 31, 2026		December 31, 2025		March 31, 2025
Interest Income	$8,337		$8,428		$7,324
Interest Expense	2,661		2,794		2,733
Net Interest Income	5,676		5,634		4,591
Provision for Credit Losses	0		281		0
Non-Interest Income	356		365		567
Non-Interest Expense	4,396		4,611		3,819
Income Tax	477		333		394
Net Income	$1,159		$774		$945
Key Ratios, Three Months Ended:	March 31, 2026		December 31, 2025		March 31, 2025
Earnings per basic share	$0.20		$0.13		$0.19
Net Interest Margin, annualized	3.75 %		3.86 %		3.43 %
Quarter Efficiency Ratio	72.88 %		76.86 %		74.04 %
Return on Average Assets, annualized	0.74 %		0.51 %		0.67 %
Return on Average Equity, annualized	6.21 %		4.68 %		6.62 %

Pacific Valley Bancorp Selected Financial Data - Unaudited
$ In thousands, Except per Share Data
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

What were Pacific Valley Bancorp (PVBK) Q1 2026 net income and EPS?

Net income for Q1 2026 was $1.16 million and basic EPS was $0.20. According to the company, higher overnight funds income and lower deposit interest expense drove the quarterly profit increase versus prior periods.

How did PVBK loans and deposits change in Q1 2026 compared to Q1 2025?

Gross loans grew 7.7% to $529.4M and deposits rose 12.0% to $536.6M. According to the company, C&I, agricultural real estate and CRE loans fueled loan growth year-over-year.

What is Pacific Valley Bancorp's capital and liquidity position as of March 31, 2026?

The bank reported a Community Bank Leverage Ratio of 12.51% and on-balance sheet liquidity of $88M. According to the company, combined on-balance sheet and contingent liquidity equal 142% of uninsured deposits.

Did PVBK record any provision for credit losses in Q1 2026?

No provision for credit losses was recorded for Q1 2026; the allowance was 1.49% of gross loans. According to the company, this reflects the current credit quality and low non-performing loans of 0.04%.

What drove PVBK's change in net interest margin and net interest income in Q1 2026?

Net interest income rose to $5.68M while NIM was 3.75%. According to the company, higher loan interest income and income from overnight funds increased net interest income despite sequential NIM softness linked to prior quarter prepayment penalties.