July 17, 2024 - PBOC Financial Corporation Reports Q2 2024 Earnings

Medford, Oregon - July 17, 2024 - PBCO Financial Corporation (OTCPK: "PBCO"), the holding company (Company) of People's Bank of Commerce (Bank), today reported net income of $1.8 million and earnings per diluted share of $0.33 for the quarter ended June 30, 2024, compared to income of $1.7 million and $0.31 per diluted share for the quarter ended March 31, 2024.

Highlights

"I am pleased with the Bank's performance year-to-date with continued improvement in our net interest margin, and growth in both loans and deposits," reported Julia Beattie, President & CEO. "The operating environment remains challenging, but we have been focused on expense management to improve profitability and risk management to protect our balance sheet. Our team of bankers continue to focus on serving clients and taking advantage of growth opportunities in the markets we serve," added Beattie.

Total deposits grew 2.1% during second quarter and 3.0% since December 31, 2023. The increase in deposits during the second quarter was almost entirely in non-interest bearing accounts. "The bank remains focused on retaining core deposit relationships while looking for opportunities to grow new relationships, recognizing that deposit funding costs continue to rise due to competitive pressure," noted Beattie.

The investment portfolio decreased 2.9% to $144.3 million during the second quarter of 2024 from $148.6 million at the end of the first quarter of 2024. The decrease is the result of monthly principal reductions on the MBS portfolio and matured investments. The bank re-deployed these matured balances into higher yielding loans during the quarter. The average life of the portfolio was 4.0 years at the end of the second quarter, consistent with the prior quarter-end. Securities income was $0.58 million during the quarter, with a yield of 1.61%, versus $0.62 million, and a yield of 1.64% for the first quarter of 2024.

Non-interest income was $2.0 million in the second quarter, flat from the first quarter of 2024. Factoring revenue was down slightly by $21 thousand from the prior quarter.

Non-interest expenses totaled $5.7 million in the second quarter, up $313 thousand from the previous quarter. The increase in non-interest expense during the quarter is partially attributed to expenses incurred on other real estate owned (OREO). During the quarter, the bank sold the last remaining parcel of OREO, having written the property down by $66 thousand during the quarter and booking a loss-on-sale of $5 thousand. The balance of the increase was distributed across remaining expense categories.

As of June 30th, the Tier 1 Capital Ratio for PBCO Financial Corporation was 11.62% with total shareholder equity of $81.0 million, versus a Tier 1 Capital Ratio of 11.38% and total shareholder equity of $78.6 million as of March 31, 2024. The increase in the capital ratio is attributed to net income generated in the quarter, while assets remained flat from the prior quarter. The Tier 1 Capital Ratio for the Bank was 13.44% at quarter-end, up from 13.18% as of March 31, 2024. Tangible Capital was $77.3 million, or 9.80% as of June 30, 2024, versus first quarter of 2024 at $74.9 million, or 9.49%. Ms. Beattie commented, "Our strong capital position allows us to pursue growth, protect shareholder value and continue to serve our communities."

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.

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 phrases such as People's Bank or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. 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 in forward-looking statements.