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 CorporationPBCO 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 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.
