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. |