Business
PBCO Financial Corporation Reports Q1 2023 Earnings
PBCO Financial Corporation Reports Q1 2023 Earnings.
About this update from Pbco Financial Corporation
[{"type":"text","content":"\nPBCO Financial Corporation (OTC PINK: PBCO), the holding company (Company) of People’s Bank of Commerce (Bank), announced today its financial results for the first quarter of 2023.\n\n\nHighlights\n\n\n\nNet income of $1.7 million in the quarter, or $0.31 per diluted share\n\n\n\nLoan growth of $13.0 million in the quarter, an increase of 2.74% compared to Q4 2022\n\n\n\nNet interest margin of 3.49%, a decrease of 0.25% compared to Q4 2022\n\n\n\nCost of deposits was 44 basis points, an increase of 28 basis points when compared to Q4 2022\n\n\n\nOpened a full-service branch in Eugene, Oregon\n\n\n\nThe Company reported net income of $1.7 million, or $0.31 per diluted share, for the first quarter of 2023 compared to net income of $2.4 million, or $0.45 per diluted share, in the same quarter of 2022. The reduction in earnings for the first quarter is primarily due to the rising cost of deposits as depositors sought higher yields and reduced mortgage lending and Steelhead revenue due to inflationary pressures.\n\n\n“Despite higher funding costs and increased competition for deposits as liquidity left the banking system, the bank is well positioned with a strong core deposit base and capital to support future growth and economic challenges,” commented Ken Trautman, Chief Executive Officer. “The bank recently opened a new branch in Eugene as part of its strategic growth initiative,” added Trautman. “The banking industry is resilient, and in spite of recent challenges, remains strong overall versus the last economic downturn.”\n\n\nDeposits decreased $19.1 million during the quarter, a 2.8% decline from the fourth quarter of 2022. Over the last twelve months, deposits decreased $124.4 million, a decline of 15.6%. “The deposit outflow over the last year was expected considering the large deposit inflow as a result of government stimulus during the COVID-19 Pandemic,” commented Joan Reukauf, Chief Operating Officer. “Competition for deposits increased as the government began its quantitative tightening initiative in 2022, in combination with steep Fed Funds rate increases to combat persistent inflation, which incented depositors to seek higher yields on their liquid balances.”\n\n\nLoans increased $13.0 million in the quarter, or 2.7% growth compared to the fourth quart...