PBCO Financial Corporation Reports Strong Fourth Quarter and Full-Year 2025 Results
PBCO Financial Corporation the holding company for People’s Bank of Commerce, today announced solid financial results for the fourth quarter and full year ended 2025. The company reported net income of $2.5 million for the fourth quarter, representing earnings per share of $0.48. This compares favorably to net income of $2.1 million and earnings per share of $0.39 reported for the third quarter of 2025. For the full year 2025, the company achieved earnings per share of $1.63, up from $1.52 in 2024, reflecting continued growth in profitability.
Quarterly and Annual Performance Highlights
During the fourth quarter, PBCO Financial Corporation achieved steady loan growth, with loans increasing by $7.1 million, or 1.3%, over the prior quarter. On a full-year basis, loans grew by $21.7 million, or 3.9%, for 2025. This expansion contributed positively to the Bank’s interest income and overall financial performance. The Bank’s loan portfolio reached $567.7 million by the end of the year, reflecting a 1.3% increase over the previous quarter and a 3.9% increase for the year. While overall loan growth was consistent, the Bank experienced some early headwinds from unplanned prepayments, which slightly tempered the growth rate throughout the year.
Return on average assets (ROAA) improved significantly to 1.22% for the fourth quarter, up from 1.01% in the prior quarter, highlighting increased efficiency and profitability. Tangible book value per share also rose to $18.34, representing a 3.9% increase during the quarter.
In terms of shareholder returns, PBCO continued its stock repurchase program, completing the repurchase of 35,063 shares at a weighted average price of $17.40 per share during the fourth quarter. Additionally, the company completed the termination of its Employee Stock Ownership Plan (ESOP), repurchasing 95,554 shares at $16.94 per share during the same period.
Deposits, Investments, and Non-Interest Income
The Bank’s deposits decreased by $23.0 million, or 3.4%, from the third to the fourth quarter of 2025, ending the year at $654.0 million, representing a 2.9% decline from 2024. Management noted that the quarterly decrease was primarily attributable to several large clients completing transactions that removed deposits from the Bank.
The investment portfolio decreased by 4.9% during the fourth quarter, falling from $120.0 million at the end of the third quarter to $114.1 million at year-end. This reduction was primarily driven by lower market rates on investments, coupled with the maturity or call of certain securities. As a result, accumulated other comprehensive income (AOCI) decreased to $7.0 million from $7.8 million in the previous quarter.
Non-interest income increased slightly during the fourth quarter by $55,000, primarily driven by a $41,000 increase in factoring revenue. For the full year, non-interest income rose by $153,000, largely reflecting a $135,000 increase in factoring revenue compared to 2024.
Expense Management and Efficiency
Non-interest expenses for the fourth quarter totaled $5.8 million, down $33,000 from the prior quarter. Personnel expenses increased by $157,000 due to year-end employee benefit accruals, but this was partially offset by a $206,000 reversal of the reserve for unfunded loan commitments, related to funded construction loan commitments. For the full year, non-interest expenses increased by $1.1 million, or 4.8% compared to 2024. Personnel expenses contributed $1.4 million of this increase, while other non-interest expenses declined by $350,000, including a $251,000 credit to the reserve for unfunded loan commitments.
Capital and Leverage Metrics
PBCO Financial Corporation maintained strong capitalization levels. The Bank’s leverage ratio stood at 14.78% as of December 31, 2025, compared to 14.29% at the end of the third quarter. Tangible common equity rose to $94.0 million from $92.6 million during the same period, reflecting both retained earnings and ongoing capital management initiatives.
Management Commentary
Julia Beattie, President and CEO of PBCO Financial Corporation, expressed satisfaction with the company’s performance, stating:
“I’m pleased with our 2025 results, which displayed improved efficiency, expanded net interest margin, and stronger profitability with higher Return on Average Assets and Earnings per Share. We benefited from moderate loan growth, which contributed to our higher interest income and lower funding costs during the year. Together, these factors delivered solid growth in net income for 2025.”
Beattie further noted that while loan growth was steady, certain unplanned prepayments presented early challenges, and that the decrease in deposits during the fourth quarter reflected the completion of transactions by several large clients.
About PBCO Financial Corporation
PBCO Financial Corporation trades on the over-the-counter market under the symbol PBCO. The Company is the parent of People’s Bank of Commerce, a full-service commercial bank headquartered in Medford, Oregon, with additional branches in Albany, Ashland, Central Point, Eugene, Grants Pass, Jacksonville, Klamath Falls, Lebanon, Medford, and Salem. Founded in 1998, the Bank provides comprehensive banking services to individuals and businesses throughout Oregon. More information about the company is available in the investor section of its website at www.peoplesbank.bank.
