PBCO Financial Corporation (OTCID: “PBCO”), the holding company (the “Company”) of People’s Bank of Commerce (the “Bank”), today reported net income of $2.2 million and earnings per share of $0.43 for the second quarter of 2026, compared to net income of $2.7 million and $0.52 per share for the first quarter of 2026.
Highlights
- Return on average assets of 1.14% for the second quarter
- Cost of deposits decreased to 1.35% during second quarter versus 1.41% in the first quarter
- Tangible book value per share of $19.03, an increase of 2.4% in the second quarter
- On July 22, 2026 Company entered into a definitive agreement to merge with and into Northrim BanCorp, Inc.
Julia Beattie, President and CEO of the Company, commented, “We are pleased with our operating results for the second quarter, which included strong profitability, incremental loan growth and maintaining our low-cost core deposit base. Further, our Steelhead Finance division saw a significant increase in revenue during the quarter. Separately, we are pleased to announce the signing of a definitive agreement to merge with Northrim BanCorp, Inc. which marks a new chapter in the history of our Company. Additional information can be found on the website for PBCO or Northrim, under Investor Relations. Our shareholders and customers can expect to receive more information in the mail in the coming months.”
Portfolio loans increased $2.1 million during the second quarter, a 0.4% increase from the first quarter and the credit quality of the loan portfolio remains strong. Deposit balances decreased $35.2 million from first quarter of 2026. The Bank continues to actively focus on growing core deposits, which is reflected in the increase in non-interest bearing in the first half of 2026.
During the second quarter, non-interest income increased by $402 thousand, with the increase primarily attributed to a 30.5% increase in factoring revenue from our Steelhead Finance division of $432 thousand for the quarter, while other non-interest income was down $40 thousand, due to non-recurring income recognized in the first quarter. Non-interest expenses totaled $6.2 million in the second quarter, an increase of $445 thousand from the first quarter of 2026. During the second quarter, the Bank wrote-off the remaining unamortized implementation and current year fees on a non-performing vendor contract, resulting in $170 thousand in one-time expense.
The Bank’s leverage ratio was 15.40% as of June 30, 2026, compared to 15.04% as of March 31, 2026. The Company’s tangible common equity was $96.5 million as of June 30, 2026, compared to $94.3 million as of March 31, 2026. No stock repurchases were completed during the second quarter.
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: .
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)6/30/20263/31/202612/31/20259/30/20256/30/2025 | BALANCE SHEET | ASSETS | Cash and due from banks $ 7,714 $ 5,319 $ 5,959 $ 6,194 $ 6,917 | Federal funds sold
- - - - - | Interest bearing deposits
14,801 22,451 31,747 53,846 51,060 | Investment securities
95,897 106,500 114,079 119,970 127,850 | Loans held for sale
- - - - - | Loans held for investment, net of unearned income
570,142 568,024 567,673 560,615 553,948 | Total Loans, net of deferred fees and costs
570,142 568,024 567,673 560,615 553,948 | Allowance for loan losses
(6,445 ) (6,551 ) (6,418 ) (6,304 ) (5,971 ) | Premises and equipment, net
27,519 27,643 27,847 28,480 28,797 | Bank owned life insurance
18,420 18,269 17,846 17,695 17,516 | Other Assets
48,593 37,547 29,896 29,821 30,905 | Total assets $ 776,641 $ 779,202 $ 788,629 $ 810,317 $ 811,022 | LIABILITIES | Deposits | Demand - non-interest bearing $ 226,160 $ 224,735 $ 220,919 $ 239,521 $ 242,281 | Demand - interest bearing
167,789 183,590 199,131 189,924 205,034 | Money market and savings
207,112 226,985 223,944 236,949 222,265 | Time deposits of less than $250,000
7,206 7,221 7,489 7,476 7,716 | Time deposits of more than $250,000
1,870 2,824 2,484 3,072 2,757 | Total deposits $ 610,137 $ 645,355 $ 653,967 $ 676,942 $ 680,053 | Borrowed funds
51,429 27,792 27,894 28,274 28,381 | Other liabilities
14,915 8,061 9,139 8,853 9,248 | Total liabilities $ 676,481 $ 681,208 $ 691,000 $ 714,069 $ 717,682 | STOCKHOLDERS' EQUITY | Common stock, surplus & retained earnings $ 107,308 $ 105,087 $ 104,634 $ 104,022 $ 102,138 | Accumulated other comprehensive income, net of tax
(7,148 ) (7,093 ) (7,005 ) (7,774 ) (8,798 ) | Total stockholders' equity $ 100,160 $ 97,994 $ 97,629 $ 96,248 $ 93,340 | Total liabilities & stockholders' equity $ 776,641 $ 779,202 $ 788,629 $ 810,317 $ 811,022 | Consolidated Statements of Income | (Dollars in 000's)2nd Quarter 20261st Quarter 20264th Quarter 20253rd Quarter 20252nd Quarter 2025 | INCOME STATEMENT | INTEREST INCOME | Loans $ 9,044 $ 9,129 $ 9,007 $ 8,749 $ 8,595 | Investments
403 437 462 477 496 | Federal funds sold and due from banks
151 204 586 536 563 | Total interest income
9,598 9,770 10,055 9,762 9,654 | INTEREST EXPENSE | Deposits
2,094 2,208 2,438 2,591 2,483 | Borrowed funds
369 261 262 262 259 | Total interest expense
2,463 2,469 2,700 2,853 2,742 | NET INTEREST INCOME
7,135 7,301 7,355 6,909 6,912 | Provision for loan losses
510 130 250 345 278 | Net interest income after provision for loan losses
6,625 7,171 7,105 6,564 6,634 | NONINTEREST INCOME | Service charges
123 114 111 114 114 | Steelhead finance income
1,844 1,413 1,277 1,236 1,224 | BOLI Income
151 149 149 146 143 | Other non-interest income
483 523 496 482 570 | Total noninterest income
2,601 2,199 2,033 1,978 2,051 | NONINTEREST EXPENSE | Salaries and employee benefits
3,754 3,725 3,735 3,578 3,543 | Occupancy & equipment expense
805 832 844 868 854 | Advertising expense
133 121 119 125 102 | Professional expenses
223 214 188 194 218 | Data processing expense
614 397 432 433 412 | Loss on sale of investments
- - - - - | Other operating expenses
695 490 442 595 790 | Total noninterest expense
6,224 5,779 5,760 5,793 5,919 | Income before taxes
3,002 3,591 3,378 2,749 2,766 | Provision for income taxes
781 919 879 691 708 | NET INCOME $ 2,221 $ 2,672 $ 2,499 $ 2,058 $ 2,058 | Shares outstanding end of quarter
5,072,054 5,073,816 5,124,357 5,245,413 5,258,407 | Average diluted shares outstanding
5,133,967 5,169,497 5,227,865 5,292,256 5,319,429 | Earnings per share $ 0.44 $ 0.52 $ 0.48 $ 0.39 $ 0.39 | Diluted earnings per share $ 0.43 $ 0.52 $ 0.48 $ 0.39 $ 0.39 | (Dollars in 000's)6/30/20263/31/202612/31/20259/30/20256/30/2025 | Performance Ratios | Return on average assets
1.14% 1.37% 1.23% 1.01% 1.01% | Return on average equity
8.93% 10.81% 10.26% 8.68% 8.94% | Net interest margin
4.20% 4.21% 3.98% 3.74% 3.76% | Yield on loans
6.39% 6.55% 6.35% 6.23% 6.23% | Cost of deposits
1.35% 1.41% 1.42% 1.51% 1.46% | Efficiency ratio excluding non-recurring expenses
63.93% 60.83% 61.35% 65.19% 66.04% | Full-time equivalent employees
138 129 126 133 137 | Capital | Community Bank Leverage Ratio
15.40% 15.04% 14.78% 14.29% 14.03% | Book value per share $ 19.75 $ 19.31 $ 19.05 $ 18.35 $ 17.75 | Tangible book value per share $ 19.03 $ 18.59 $ 18.34 $ 17.65 $ 17.05 | Dividends per Share $ - $ 0.25 $ - $ - $ - | Asset Quality | Allowance for loan losses (ALLL) $ 6,445 $ 6,551 $ 6,418 $ 6,304 $ 5,971 | Nonperforming loans (NPLs) $ 5,416 $ 7,236 $ 4,147 $ 4,095 $ 3,372 | Nonperforming assets (NPAs) $ 5,416 $ 7,236 $ 4,147 $ 4,095 $ 3,372 | Classified assets(2) $ 23,496 $ 10,768 $ 11,528 $ 13,031 $ 9,288 | ALLL as a percentage of loans
1.13% 1.15% 1.13% 1.12% 1.08% | Net charge offs (recoveries) to average loans
0.11% 0.00% 0.02% 0.00% 0.00% | Nonperforming assets as a percentage of total assets
0.70% 0.93% 0.53% 0.51% 0.42% | Classified Asset Ratio(3)
22.04% 10.30% 11.08% 12.71% 9.35% | Past due as a percentage of total loans
1.06% 1.27% 0.73% 0.87% 0.96% | End of period balances | Total securities and short term deposits $ 110,698 $ 128,951 $ 145,826 $ 173,816 $ 178,910 | Total loans $ 570,142 $ 568,024 $ 567,673 $ 560,615 $ 553,948 | Total earning assets $ 680,840 $ 696,975 $ 713,499 $ 734,431 $ 732,858 | Intangible assets $ 3,650 $ 3,660 $ 3,670 $ 3,681 $ 3,690 | Total assets $ 776,641 $ 779,202 $ 788,629 $ 810,317 $ 811,022 | Total noninterest bearing deposits $ 226,160 $ 224,735 $ 220,919 $ 239,521 $ 242,281 | Total deposits $ 610,137 $ 645,355 $ 653,967 $ 676,942 $ 680,053 | Average balances | Total securities and short term deposits $ 121,532 $ 137,263 $ 176,173 $ 181,528 $ 181,971 | Total loans $ 568,134 $ 559,328 $ 556,727 $ 551,101 $ 547,907 | Total earning assets $ 689,666 $ 696,591 $ 732,900 $ 732,629 $ 729,878 | Total assets $ 773,597 $ 778,997 $ 815,906 $ 815,262 $ 812,029 | Total noninterest bearing deposits $ 223,996 $ 217,778 $ 233,390 $ 237,705 $ 240,960 | Total deposits $ 623,810 $ 642,883 $ 680,475 $ 682,347 $ 681,775 | (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. |
View source version on businesswire.com: