Pacific Financial Corp Reports Fourth Quarter 2025 Earnings of $3.1 Million, or $0.31 per Diluted Share; Declares Quarterly Cash Dividend of $0.15 per Share
ABERDEEN, Wash., Jan. 30, 2026 (GLOBE NEWSWIRE) — Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or (the “Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $3.1 million, or $0.31 per diluted share for the fourth quarter of 2025, compared to $3.5 million, or $0.35 per diluted share for the third quarter of 2025, and $2.2 million, or $0.21 per diluted share for the fourth quarter of 2024. The current quarter’s net income relative to the prior quarter reflects an increase in net interest income and non-interest income offset by a provision for credit losses versus a recapture for credit losses in the prior quarter and higher non-interest expenses.
For the year ended December 31, 2025, net income increased 22% to $11.6 million, or $1.16 per diluted share, compared to $9.5 million, or $0.92 per diluted share in 2024. Except for year-end December 31, 2024 financials, all results are unaudited.
The Board of Directors of Pacific Financial declared a quarterly cash dividend of $0.15 per share on January 28, 2026. The dividend will be payable on February 28, 2026 to shareholders of record on February 13, 2026. This is an increase from $0.14 per share in the prior quarter.
“Loan and deposit growth continue to reflect positive trends as our banking teams develop new relationships and expand existing ones. This growth has contributed to increasing net interest income throughout the fourth quarter and fiscal 2025,” said Denise Portmann, President and Chief Executive Officer. “Looking ahead to 2026, we remain encouraged by the resilience of our local economy, the caliber of our management teams, the soundness of our strategic direction and the strength of the Company’s financial position.”
“Our strong net interest margin, deposit base and credit quality metrics remain core operating principals for the Company which allows us to deliver a solid return on average equity, which was 9.77% in 2025, and payments of dividends to shareholders, which totaled $0.56 per share in 2025,” said Portmann.
Fourth Quarter 2025 Financial Highlights:
- Return on average assets (“ROAA”) was 0.98% in the fourth quarter 2025, compared to 1.12% for the third quarter 2025, and 0.74% for the fourth quarter 2024.
- Return on average equity (“ROAE”) was 9.84%, compared to 11.50% the preceding quarter, and 7.27% the fourth quarter a year earlier.
- Net interest income increased slightly to $12.3 million in the fourth quarter, compared to the prior quarter, and increased $1.5 million from $10.9 million in the fourth quarter of 2024.
- Net interest margin (“NIM”) decreased to 4.11%, compared to 4.25% the preceding quarter, and increased from 3.99% for the fourth quarter a year ago.
- A provision for credit losses of $120,000 was recognized in the fourth quarter ended December 31, 2025, compared to a recapture of $49,000 in the preceding quarter and a recapture of $103,000 in the fourth quarter a year ago.
- Gross portfolio loan balances increased slightly to $775.9 million at December 31, 2025, compared to $772.2 million at September 30, 2025, and increased 10%, or $71.0 million, from $704.9 million one year earlier.
- Total deposits increased $8.9 million to $1.12 billion at December 31, 2025, compared to the previous quarter and increased $108.2 million, or 11%, from one year earlier.
- Non-performing assets to total assets ratio declined to 0.01%, or $124,000 for the current quarter ended December 31, 2025. Substandard loans increased $794,000 to $2.0 million and special mention assets increased $6.6 million to $16.2 million at December 31, 2025 compared to the previous quarter.
- Shareholder equity increased $3.1 million during the quarter largely due to net income and lower accumulated other comprehensive loss marks on the available-for-sale investment portfolio, partially offset by dividend payments. Tangible book value per share was $11.27 at December 31, 2025, an increase of $1.34 from $9.93 at December 31, 2024, representing growth in tangible book value per share of 13%. Total dividends paid to shareholders over the past year totaled $0.56 per share.
- Pacific Financial and Bank of the Pacific continue to exceed regulatory well-capitalized requirements. At December 31, 2025, Pacific Financial’s estimated leverage ratio was 10.8% and its estimated total risk-based capital ratio was 17.3%.
Balance Sheet Review
Total assets increased to $1.28 billion at December 31, 2025 from $1.26 billion one quarter earlier, and $1.15 billion at December 31, 2024.
Cash and interest earning deposits decreased $9.5 million to $114.8 million at December 31, 2025, from $124.3 million at September 30, 2025, and increased $34.7 million from $80.2 million one year earlier. The decrease in cash and interest earning deposits in the current quarter largely relates to funding higher yielding loan originations and investment purchases.
During the fourth quarter of 2025 liquidity metrics continued to be strong. At December 31, 2025, the Company’s short-term funding sources totaled $617.2 million. This represents a coverage ratio of short-term funds available to uninsured and uncollateralized deposits of 193%. Included in available sources are collateralized credit lines the Company has established with the Federal Home Loan Bank of Des Moines (FHLB) and the Federal Reserve Bank of San Francisco. Additionally, the Bank has $60.0 million of unsecured borrowing lines from various correspondent banks. There was no balance outstanding on any of these facilities at quarter-end. Uninsured or uncollateralized deposits were 29% of total deposits at December 31, 2025.
Investment securities increased $18.8 million to $322.6 million at December 31, 2025, compared to $303.8 million at September 30, 2025, and increased $18.1 million compared to a year ago. The increase in investment securities was funded from deposit growth and a reallocation of interest earning cash deposits. The largest investment category was collateralized mortgage obligations, which accounted for 54% of the investment portfolio at December 31, 2025 compared to 52% at September 30, 2025 and 48% at December 31, 2024. The yield on the investment portfolio decreased 11 basis points during the current quarter to 3.50% from 3.61% the prior quarter and increased 5 basis points from 3.45% the fourth quarter a year ago. The current quarter decline was related to the decrease in yield as floating rate securities repriced downwards as prime and SOFR index rates declined during the quarter. Partially offsetting that decline in yield was purchases of $23.1 million with an average yield of 4.80%. The adjusted duration of the portfolio was 4.2 years at December 31, 2025.
Gross loans balances increased $3.6 million, to $775.9 million at December 31, 2025, compared to $772.2 million at September 30, 2025. Year-over-year gross loan growth was 10%, or $71.0 million as the Company originated $217.8 million in loans in 2025. Loan originations for the year included $30 million in SBA commercial loan purchases during the third quarter. The largest categories of growth were in commercial and agriculture, multi-family, and commercial real estate, both owner-occupied and non-owner occupied. The loan pipeline continues to be supported by sustained business development activity of the Company’s commercial lending teams.
The Company manages concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. In addition, the loan portfolio continues to be well-diversified and is collateralized with assets predominantly within the Company’s Western Washington and Oregon markets. Loans classified as commercial real estate for regulatory concentration purposes totaled $291.3 million at December 31, 2025, or 201% of total risk-based capital.
Credit quality: Nonperforming assets remain minimal at $124,000, or 0.01% of total assets at December 31, 2025. While the total of loans designated as special mention increased $6.6 million to $16.2 million during the quarter, the ratio to total loans remained relatively low at 2.09%. The increase was primarily due to a single owner-occupied CRE loan with a balance of $5.9 million that was downgraded in November 2025. The Company has zero other real estate owned as of December 31, 2025.
Allowance for credit losses (“ACL”): ACL-loans increased $235,000 to $9.3 million, or 1.20% of total portfolio loans at December 31, 2025, compared to 1.17% at September 30, 2025. The ratio of ACL to non-government guaranteed loans was 1.26% at December 31, 2025. During the quarter, gross recoveries of $182,000 was recorded to the ACL.
A provision for credit losses of $120,000 was recorded in the current quarter largely reflecting new originations and economic variables compared to a benefit for credit losses of $49,000 in the prior quarter.
Total deposits increased $8.9 million to $1.12 billion at December 31, 2025, compared to the previous quarter and increased $108.2 million from $1.01 billion one year earlier. A majority of the increase for the current quarter was due to increased money-market balances and time deposits, which were partially offset by decreases in interest-bearing demand balances. Year-over-year growth was primarily a result of increased money-market balances and non-interest-bearing accounts.
Core deposits represented 87% of total deposits at quarter end, including non-interest-bearing deposits of 36% of deposits, and interest-bearing demand, money market, and savings deposits representing 18%, 23%, and 10% of total deposits, respectively. CDs as a percentage of deposits increased slightly to 13% of total deposits compared to the prior quarter. The high percentage of non-interest-bearing deposits supports a lower cost core deposits portfolio.
Shareholders’ equity was $126.4 million at December 31, 2025, compared to $123.3 million at September 30, 2025, and $113.9 million at December 31, 2024. The increase in shareholders’ equity during the current quarter was primarily due to $3.1 million in net income and a $1.3 million decrease in unrealized losses (after-tax) on available-for-sale securities partially offset by $1.4 million in dividends to shareholders. Net unrealized losses (after-tax) included in shareholders’ equity on available-for-sale securities were $9.7 million at December 31, 2025, compared to $11.0 million at September 30, 2025, and $17.3 million at December 31, 2024.
Book value per common share was $12.61 at December 31, 2025, compared to $12.31 at September 30, 2025, and $11.26 at December 31, 2024. Tangible book value per common share was $11.27 at December 31, 2025, compared to $10.97 at September 30, 2025, and $9.93 at December 31, 2024. The Company’s tangible common equity ratio was 9.0% at December 31, 2025, compared to 8.8% the prior quarter and one year earlier.
Regulatory capital ratios of both the Company and the Bank continue to exceed well-capitalized regulatory thresholds, with the Company’s leverage ratio at 10.8% and total risk-based capital ratio at 17.3% as of December 31, 2025. These regulatory capital ratios are estimates, pending completion and filing of regulatory reports.
Income Statement Review
Net interest income remained relatively unchanged, increasing slightly by $22,000, to $12.3 million for the fourth quarter of 2025, and increased $1.5 million compared to $10.9 million for the fourth quarter a year ago. The marginal change in the current quarter compared to the preceding quarter reflects increased interest income from larger average loan and investment security balances, partially offset by decreased yields on interest earning assets and increased deposit interest expense.
The Company’s net interest margin decreased 14 basis points to 4.11% for the quarter ended December 31, 2025, from 4.25% the prior quarter and increased from 3.99% in the fourth quarter a year ago. During the current quarter, the FOMC decreased the federal funds rate twice; totaling 50 basis points. During the quarter, yields on interest-earning assets indexed to the federal funds rate, SOFR or prime rate were impacted by the 50 basis point decrease. The impact was partially offset by repricing of lower-yielding loans and investment purchases during the quarter.
Yields on portfolio loans decreased 5 basis points during the fourth quarter to 5.96% from 6.01% the preceding quarter, while yields on investment securities decreased 11 basis points to 3.50% from 3.61% over the same time period and yields on interest-earning deposits decreased 45 basis points. The Company continues to actively monitor and manage its cost of funds. For the current quarter, the Company’s total cost of funds increased slightly to 1.08% compared to 1.05% for the preceding quarter, primarily as a result of higher balances of money-market accounts and time-deposit during the quarter, and decreased from 1.17% for the fourth quarter of 2024. The high percentage of non-interest-bearing deposits at 36% continues to help reduce volatility in deposit costs.
For the twelve months ended December 31, 2025, net interest income increased $3.6 million to $47.8 million compared to $44.2 million for the like period a year ago. The increase year-over-year was primarily the result of growth in total interest-earning assets including increased balances in loans and investments. For the twelve months ended December 31, 2025, the net interest margin remained at 4.18%. Over the past year, the FOMC has decreased the federal funds target rate 75 basis points while an additional 100 basis points decrease was implemented in the second half of 2024.
Noninterest income increased to $1.7 million for the current quarter and decreased slightly compared to $1.8 million for the fourth quarter a year earlier. The decrease compared to one year earlier was primarily due to the loss of revenue associated with the mortgage banking division which was closed in late 2024. Fee and service charge income increased to $1.5 million in the current quarter compared to $1.3 million the previous quarter and $1.3 million in the fourth quarter of 2024. For the year ended December 31, 2025, non-interest income was $5.8 million compared to $6.9 million for the same period a year ago, with the decrease primarily due to the loss of gross revenue associated with the mortgage banking division which closed in late 2024.
Noninterest expenses increased to $10.0 million for the fourth quarter of 2025 compared to $9.4 million for the prior quarter and decreased from $10.1 million for the fourth quarter of 2024. The increase in the current quarter compared to the prior quarter was primarily related to increases in incentive and payroll accruals, and state taxes. The decrease from the fourth quarter of 2024 was primarily due to decreased expenses associated with the mortgage banking division which was closed in late 2024.
For the twelve months ended December 31, 2025, total non-interest expenses were $38.5 million, compared to $39.2 million for the twelve months ended December 31, 2024. The Company’s efficiency ratio was to 71.21% for the fourth quarter of 2025, compared to 68.47% in the preceding quarter and 79.80% in the same quarter a year ago.
Income tax expense: Federal and Oregon state income tax expenses totaled $792,000 for the current quarter, and $904,000 for the preceding quarter, resulting in effective tax rates of 20.3% and 20.6%, respectively. These income tax expenses reflect the benefits of tax-exempt income on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank-owned life insurance.
| FINANCIAL HIGHLIGHTS (unaudited) (In 000s, except per share data) | Quarter Ended | Change From | Twelve Months Ended | Change | ||||||||||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Dec 31, | ||||||||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Earnings Ratios & Data | ||||||||||||||||||||||||||||||||
| Net Income | $ | 3,119 | $ | 3,478 | $ | 2,162 | $ | (359 | ) | -10 | % | $ | 957 | 44 | % | $ | 11,645 | $ | 9,532 | $ | 2,113 | 22 | % | |||||||||
| Return on average assets | 0.98 | % | 1.12 | % | 0.74 | % | -0.14 | % | 0.24 | % | 0.95 | % | 0.84 | % | 0.11 | % | ||||||||||||||||
| Return on average equity | 9.84 | % | 11.50 | % | 7.27 | % | -1.66 | % | 2.57 | % | 9.77 | % | 8.20 | % | 1.57 | % | ||||||||||||||||
| Efficiency ratio(1) | 71.21 | % | 68.47 | % | 79.80 | % | 2.74 | % | -8.59 | % | 71.90 | % | 76.69 | % | -4.79 | % | ||||||||||||||||
| Net-interest margin %(2) | 4.11 | % | 4.25 | % | 3.99 | % | -0.14 | % | 0.12 | % | 4.18 | % | 4.18 | % | 0.00 | % | ||||||||||||||||
| Share Ratios & Data | ||||||||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.31 | $ | 0.35 | $ | 0.21 | $ | (0.04 | ) | -11 | % | $ | 0.10 | 48 | % | $ | 1.16 | $ | 0.93 | $ | 0.23 | |||||||||||
| Diluted earning per share | $ | 0.31 | $ | 0.35 | $ | 0.21 | $ | (0.04 | ) | -11 | % | $ | 0.10 | 48 | % | $ | 1.16 | $ | 0.92 | $ | 0.24 | |||||||||||
| Book value per share(3) | $ | 12.61 | $ | 12.31 | $ | 11.26 | $ | 0.30 | 2 | % | $ | 1.35 | 12 | % | ||||||||||||||||||
| Tangible book value per share(4) | $ | 11.27 | $ | 10.97 | $ | 9.93 | $ | 0.30 | 3 | % | $ | 1.34 | 13 | % | ||||||||||||||||||
| Common shares outstanding | 10,020 | 10,020 | 10,110 | – | 0 | % | (90 | ) | -1 | % | ||||||||||||||||||||||
| PFLC stock price | $ | 12.75 | $ | 11.59 | $ | 12.45 | $ | 1.16 | 10 | % | $ | 0.30 | 2 | % | ||||||||||||||||||
| Dividends paid per share | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | – | 0 | % | $ | – | 0 | % | $ | 0.56 | $ | 0.56 | $ | – | 0 | % | ||||||||||
| Balance Sheet Data | ||||||||||||||||||||||||||||||||
| Assets | $ | 1,275,116 | $ | 1,263,138 | $ | 1,153,563 | $ | 11,978 | 1 | % | $ | 121,553 | 11 | % | ||||||||||||||||||
| Portfolio Loans | $ | 775,852 | $ | 772,220 | $ | 704,865 | $ | 3,632 | 0 | % | $ | 70,987 | 10 | % | ||||||||||||||||||
| Deposits | $ | 1,122,935 | $ | 1,114,040 | $ | 1,014,731 | $ | 8,895 | 1 | % | $ | 108,204 | 11 | % | ||||||||||||||||||
| Investments | $ | 322,555 | $ | 303,804 | $ | 304,502 | $ | 18,751 | 6 | % | $ | 18,053 | 6 | % | ||||||||||||||||||
| Shareholders equity | $ | 126,390 | $ | 123,329 | $ | 113,856 | $ | 3,061 | 2 | % | $ | 12,534 | 11 | % | ||||||||||||||||||
| Liquidity Ratios | ||||||||||||||||||||||||||||||||
| Short-term funding to uninsured | ||||||||||||||||||||||||||||||||
| and uncollateralized deposits | 193 | % | 187 | % | 217 | % | 6 | % | -24 | % | ||||||||||||||||||||||
| Uninsured and uncollateralized | ||||||||||||||||||||||||||||||||
| deposits to total deposits | 29 | % | 28 | % | 25 | % | 1 | % | 4 | % | ||||||||||||||||||||||
| Portfolio loans to deposits ratio | 69 | % | 69 | % | 69 | % | 0 | % | 0 | % | ||||||||||||||||||||||
| Asset Quality Ratios | ||||||||||||||||||||||||||||||||
| Non-performing assets to assets | 0.01 | % | 0.03 | % | 0.09 | % | -0.02 | % | -0.08 | % | ||||||||||||||||||||||
| Non-accrual loans to portfolio loans | 0.02 | % | 0.05 | % | 0.16 | % | -0.03 | % | -0.14 | % | ||||||||||||||||||||||
| Loan losses to avg portfolio loans | -0.07 | % | 0.03 | % | -0.04 | % | -0.10 | % | -0.03 | % | 0.01 | % | 0.00 | % | 0.01 | % | ||||||||||||||||
| ACL-loans to portfolio loans | 1.20 | % | 1.17 | % | 1.26 | % | 0.03 | % | -0.06 | % | ||||||||||||||||||||||
| Capital Ratios (PFC) | ||||||||||||||||||||||||||||||||
| Total risk-based capital ratio | 17.3 | % | 17.1 | % | 17.5 | % | 0.2 | % | -0.2 | % | ||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 16.1 | % | 15.9 | % | 16.3 | % | 0.2 | % | -0.2 | % | ||||||||||||||||||||||
| Common equity tier 1 ratio | 14.6 | % | 14.4 | % | 14.7 | % | 0.2 | % | -0.1 | % | ||||||||||||||||||||||
| Leverage ratio | 10.8 | % | 10.9 | % | 11.3 | % | -0.1 | % | -0.5 | % | ||||||||||||||||||||||
| Tangible common equity ratio | 9.0 | % | 8.8 | % | 8.8 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||||||
| (1) Non-interest expense divided by net interest income plus noninterest income. | ||||||||||||||||||||||||||||||||
| (2) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%. | ||||||||||||||||||||||||||||||||
| (3) Book value per share is calculated as the total common shareholders’ equity divided by the period ending number of common stock shares outstanding. | ||||||||||||||||||||||||||||||||
| (4) Tangible book value per share is calculated as the total common shareholders’ equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding. | ||||||||||||||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||
| INCOME STATEMENT (unaudited) ($ in 000s) | Quarter Ended | Change From | Twelve Months Ended | Change | ||||||||||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Dec 31, | ||||||||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||||||||||||
| Loan interest & fee income | $ | 11,561 | $ | 11,469 | $ | 10,340 | $ | 92 | 1 | % | $ | 1,221 | 12 | % | $ | 44,174 | $ | 41,192 | $ | 2,982 | 7 | % | ||||||||||
| Interest earning cash income | 1,029 | 957 | 942 | 72 | 8 | % | 87 | 9 | % | 4,318 | 3,833 | 485 | 13 | % | ||||||||||||||||||
| Investment income | 2,778 | 2,760 | 2,590 | 18 | 1 | % | 188 | 7 | % | 10,944 | 9,978 | 966 | 10 | % | ||||||||||||||||||
| Interest Income | 15,368 | 15,186 | 13,872 | 182 | 1 | % | 1,496 | 11 | % | 59,436 | 55,003 | 4,433 | 8 | % | ||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||||||||||||
| Deposits interest expense | 2,865 | 2,695 | 2,796 | 170 | 6 | % | 69 | 2 | % | 10,825 | 9,829 | 996 | 10 | % | ||||||||||||||||||
| Other borrowings interest expense | 198 | 208 | 225 | (10 | ) | -5 | % | (27 | ) | -12 | % | 818 | 951 | (133 | ) | -14 | % | |||||||||||||||
| Interest Expense | 3,063 | 2,903 | 3,021 | 160 | 6 | % | 42 | 1 | % | 11,643 | 10,780 | 863 | 8 | % | ||||||||||||||||||
| Net Interest Income | 12,305 | 12,283 | 10,851 | 22 | 0 | % | 1,454 | 13 | % | 47,793 | 44,223 | 3,570 | 8 | % | ||||||||||||||||||
| Provision (recapture) for credit losses | 120 | (49 | ) | (103 | ) | 169 | -345 | % | 223 | -217 | % | 542 | 168 | 374 | 223 | % | ||||||||||||||||
| Net Interest Income after provision | 12,185 | 12,332 | 10,954 | (147 | ) | -1 | % | 1,231 | 11 | % | 47,251 | 44,055 | 3,196 | 7 | % | |||||||||||||||||
| Non-Interest Income | ||||||||||||||||||||||||||||||||
| Fees and service charges | 1,492 | 1,255 | 1,267 | 237 | 19 | % | 225 | 18 | % | 5,157 | 4,791 | 366 | 8 | % | ||||||||||||||||||
| Gain on sale of investments, net | – | – | – | – | 0 | % | – | 0 | % | (165 | ) | 121 | (286 | ) | -236 | % | ||||||||||||||||
| Gain on sale of loans, net | – | – | 267 | – | 0 | % | (267 | ) | -100 | % | (2 | ) | 1,132 | (1,134 | ) | -100 | % | |||||||||||||||
| Income on bank-owned insurance | 198 | 195 | 250 | 3 | 2 | % | (52 | ) | -21 | % | 775 | 800 | (25 | ) | -3 | % | ||||||||||||||||
| Other non-interest income | 5 | 9 | (9 | ) | (4 | ) | -44 | % | 14 | -156 | % | 30 | 25 | 5 | 20 | % | ||||||||||||||||
| Non-Interest Income | 1,695 | 1,459 | 1,775 | 236 | 16 | % | (80 | ) | -5 | % | 5,795 | 6,869 | (1,074 | ) | -16 | % | ||||||||||||||||
| Non-Interest Expense | ||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 6,336 | 5,851 | 6,288 | 485 | 8 | % | 48 | 1 | % | 24,260 | 24,944 | (684 | ) | -3 | % | |||||||||||||||||
| Occupancy | 600 | 566 | 768 | 34 | 6 | % | (168 | ) | -22 | % | 2,375 | 2,574 | (199 | ) | -8 | % | ||||||||||||||||
| Furniture, Fixtures & Equipment | 320 | 318 | 289 | 2 | 1 | % | 31 | 11 | % | 1,244 | 1,127 | 117 | 10 | % | ||||||||||||||||||
| Marketing & donations | 177 | 135 | 149 | 42 | 31 | % | 28 | 19 | % | 623 | 680 | (57 | ) | -8 | % | |||||||||||||||||
| Professional services | 247 | 278 | 267 | (31 | ) | -11 | % | (20 | ) | -7 | % | 1,077 | 1,163 | (86 | ) | -7 | % | |||||||||||||||
| Data Processing & IT | 1,221 | 1,245 | 1,380 | (24 | ) | -2 | % | (159 | ) | -12 | % | 4,933 | 4,921 | 12 | 0 | % | ||||||||||||||||
| Other | 1,068 | 1,016 | 934 | 52 | 5 | % | 134 | 14 | % | 4,016 | 3,775 | 241 | 6 | % | ||||||||||||||||||
| Non-Interest Expense | 9,969 | 9,409 | 10,075 | 560 | 6 | % | (106 | ) | -1 | % | 38,528 | 39,184 | (656 | ) | -2 | % | ||||||||||||||||
| Income before income taxes | 3,911 | 4,382 | 2,654 | (471 | ) | -11 | % | 1,257 | 47 | % | 14,518 | 11,740 | 2,778 | 24 | % | |||||||||||||||||
| Provision for income taxes | 792 | 904 | 492 | (112 | ) | -12 | % | 300 | 61 | % | 2,873 | 2,208 | 665 | 30 | % | |||||||||||||||||
| Net Income | $ | 3,119 | $ | 3,478 | $ | 2,162 | $ | (359 | ) | -10 | % | 957 | 44 | % | $ | 11,645 | $ | 9,532 | $ | 2,113 | 22 | % | ||||||||||
| Effective tax rate | 20.3 | % | 20.6 | % | 18.5 | % | -0.3 | % | 1.8 | % | 19.8 | % | 18.8 | % | 1.0 | % | ||||||||||||||||
| BALANCE SHEET (unaudited) | Period Ended | Change from | % of Total | ||||||||||||||||||||||||
| ($ in 000s) | |||||||||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Sep 30, | Dec 31, | ||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2025 | 2024 | ||||||||||||||||||
| Assets | |||||||||||||||||||||||||||
| Cash on hand and in banks | $ | 14,769 | $ | 17,650 | $ | 18,136 | $ | (2,881 | ) | -16 | % | $ | (3,367 | ) | -19 | % | 1 | % | 1 | % | 2 | % | |||||
| Interest earning deposits | 100,037 | 106,637 | 62,015 | (6,600 | ) | -6 | % | 38,022 | 61 | % | 8 | % | 9 | % | 6 | % | |||||||||||
| Investment securities | 322,555 | 303,804 | 304,502 | 18,751 | 6 | % | 18,053 | 6 | % | 25 | % | 24 | % | 26 | % | ||||||||||||
| Portfolio Loans, net of deferred fees | 775,266 | 771,526 | 704,248 | 3,740 | 0 | % | 71,018 | 10 | % | 61 | % | 61 | % | 61 | % | ||||||||||||
| Allowance for credit losses | (9,292 | ) | (9,057 | ) | (8,851 | ) | (235 | ) | 3 | % | (441 | ) | 5 | % | -1 | % | -1 | % | -1 | % | |||||||
| Net loans | 765,974 | 762,469 | 695,397 | 3,505 | 0 | % | 70,577 | 10 | % | 60 | % | 60 | % | 60 | % | ||||||||||||
| Premises & equipment | 16,133 | 16,412 | 16,952 | (279 | ) | -2 | % | (819 | ) | -5 | % | 1 | % | 1 | % | 1 | % | ||||||||||
| Goodwill & Other Intangibles | 13,435 | 13,435 | 13,435 | – | 0 | % | – | 0 | % | 1 | % | 1 | % | 1 | % | ||||||||||||
| Bank-owned life Insurance | 28,824 | 28,626 | 28,333 | 198 | 1 | % | 491 | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||
| Other assets | 13,389 | 14,105 | 14,793 | (716 | ) | -5 | % | (1,404 | ) | -9 | % | 2 | % | 2 | % | 2 | % | ||||||||||
| Total Assets | $ | 1,275,116 | $ | 1,263,138 | $ | 1,153,563 | $ | 11,978 | 1 | % | $ | 121,553 | 11 | % | 100 | % | 100 | % | 100 | % | |||||||
| Liabilities & Shareholders’ Equity | |||||||||||||||||||||||||||
| Deposits | $ | 1,122,935 | $ | 1,114,040 | $ | 1,014,731 | $ | 8,895 | 1 | % | $ | 108,204 | 11 | % | 88 | % | 88 | % | 88 | % | |||||||
| Borrowings | 13,403 | 13,403 | 13,403 | – | 0 | % | – | 0 | % | 1 | % | 1 | % | 1 | % | ||||||||||||
| Other liabilities | 12,388 | 12,366 | 11,573 | 22 | 0 | % | 815 | 7 | % | 1 | % | 1 | % | 1 | % | ||||||||||||
| Common Stock & Retained Earnings | 136,105 | 134,357 | 131,160 | 1,748 | 1 | % | 4,945 | 4 | % | 11 | % | 11 | % | 11 | % | ||||||||||||
| Accumulated Other Comprehensive Loss | (9,715 | ) | (11,028 | ) | (17,304 | ) | 1,313 | -12 | % | 7,589 | -44 | % | -1 | % | -1 | % | -1 | % | |||||||||
| Shareholders’ equity | 126,390 | 123,329 | 113,856 | 3,061 | 2 | % | 12,534 | 11 | % | 10 | % | 10 | % | 10 | % | ||||||||||||
| Liabilities & Shareholders’ Equity | $ | 1,275,116 | $ | 1,263,138 | $ | 1,153,563 | $ | 11,978 | 1 | % | $ | 121,553 | 11 | % | 100 | % | 100 | % | 100 | % | |||||||
| INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited) ($ in 000s) | Period Ended | Change from | % of Total | ||||||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Sep 30, | Dec 31, | ||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2025 | 2024 | ||||||||||||||||||
| Investment Securities | |||||||||||||||||||||||||||
| Collateralized mortgage obligations | $ | 173,544 | $ | 156,667 | $ | 147,262 | $ | 16,877 | 11 | % | $ | 26,282 | 18 | % | 54 | % | 52 | % | 48 | % | |||||||
| Mortgage backed securities | 46,751 | 44,927 | 46,112 | 1,824 | 4 | % | 639 | 1 | % | 14 | % | 15 | % | 15 | % | ||||||||||||
| U.S. Government and agency securities | 58,830 | 58,770 | 67,716 | 60 | 0 | % | (8,886 | ) | -13 | % | 18 | % | 19 | % | 22 | % | |||||||||||
| Municipal securities | 43,430 | 43,440 | 43,412 | (10 | ) | 0 | % | 18 | 0 | % | 14 | % | 14 | % | 15 | % | |||||||||||
| Investment Securities | $ | 322,555 | $ | 303,804 | $ | 304,502 | $ | 18,751 | 6 | % | $ | 18,053 | 6 | % | 100 | % | 100 | % | 100 | % | |||||||
| Held to maturity securities | $ | 28,382 | $ | 29,028 | $ | 41,442 | $ | (646 | ) | -2 | % | $ | (13,060 | ) | -32 | % | 9 | % | 10 | % | 14 | % | |||||
| Available for sale securities | $ | 294,173 | $ | 274,776 | $ | 263,060 | $ | 19,397 | 7 | % | $ | 31,113 | 12 | % | 91 | % | 90 | % | 86 | % | |||||||
| Government & Agency securities | $ | 279,101 | $ | 260,339 | $ | 261,063 | $ | 18,762 | 7 | % | $ | 18,038 | 7 | % | 87 | % | 86 | % | 86 | % | |||||||
| AAA, AA, A rated securities | $ | 42,768 | $ | 42,780 | $ | 42,773 | $ | (12 | ) | 0 | % | $ | (5 | ) | 0 | % | 13 | % | 14 | % | 14 | % | |||||
| Non-rated securities | $ | 686 | $ | 685 | $ | 666 | $ | 1 | 0 | % | $ | 20 | 3 | % | 0 | % | 0 | % | 0 | % | |||||||
| AFS Unrealized Gain (Loss) | $ | (12,613 | ) | $ | (14,404 | ) | $ | (22,437 | ) | $ | 1,791 | -12 | % | $ | 9,824 | -44 | % | -4 | % | -5 | % | -7 | % | ||||
| LIQUIDITY (unaudited) | Period Ended | Change from | % of Deposits | |||||||||||||||||||||
| ($ in 000s) | ||||||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2025 | 2024 | |||||||||||||||
| Short-term Funding | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 106,558 | $ | 112,645 | $ | 67,951 | $ | (6,087 | ) | -5 | % | $ | 38,607 | 57 | % | 9 | % | 10 | % | 7 | % | |||
| Unencumbered AFS Securities | 142,377 | 122,817 | 158,472 | 19,560 | 16 | % | (16,095 | ) | -10 | % | 13 | % | 11 | % | 16 | % | ||||||||
| Secured lines of Credit (FHLB, FRB) | 368,249 | 345,066 | 324,187 | 23,183 | 7 | % | 44,062 | 14 | % | 33 | % | 31 | % | 32 | % | |||||||||
| Short-term Funding | $ | 617,184 | $ | 580,528 | $ | 550,610 | $ | 36,656 | 6 | % | $ | 66,574 | 12 | % | 55 | % | 52 | % | 55 | % | ||||
| PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited) ($ in 000s) | Period Ended | Change from | % of Total | ||||||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Sep 30, | Dec 31, | ||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2025 | 2024 | ||||||||||||||||||
| Portfolio Loans | |||||||||||||||||||||||||||
| Commercial & agriculture | $ | 106,694 | $ | 99,469 | $ | 75,240 | $ | 7,225 | 7 | % | $ | 31,454 | 42 | % | 14 | % | 14 | % | 10 | % | |||||||
| Real estate: | |||||||||||||||||||||||||||
| Construction and development | 35,716 | 34,574 | 42,725 | 1,142 | 3 | % | (7,009 | ) | -16 | % | 5 | % | 4 | % | 6 | % | |||||||||||
| Residential 1-4 family | 103,341 | 102,588 | 103,489 | 753 | 1 | % | (148 | ) | 0 | % | 13 | % | 13 | % | 15 | % | |||||||||||
| Multi-family | 81,327 | 82,342 | 68,978 | (1,015 | ) | -1 | % | 12,349 | 18 | % | 10 | % | 11 | % | 10 | % | |||||||||||
| CRE — owner occupied | 188,387 | 188,814 | 165,120 | (427 | ) | 0 | % | 23,267 | 14 | % | 24 | % | 24 | % | 23 | % | |||||||||||
| CRE — non owner occupied | 177,167 | 177,384 | 159,582 | (217 | ) | 0 | % | 17,585 | 11 | % | 23 | % | 23 | % | 23 | % | |||||||||||
| Farmland | 28,537 | 29,692 | 26,864 | (1,155 | ) | -4 | % | 1,673 | 6 | % | 4 | % | 4 | % | 4 | % | |||||||||||
| Consumer | 54,683 | 57,357 | 62,867 | (2,674 | ) | -5 | % | (8,184 | ) | -13 | % | 7 | % | 7 | % | 9 | % | ||||||||||
| Portfolio Loans | 775,852 | 772,220 | 704,865 | $ | 3,632 | 0 | % | $ | 70,987 | 10 | % | 100 | % | 100 | % | 100 | % | ||||||||||
| Less: ACL | (9,292 | ) | (9,057 | ) | (8,851 | ) | |||||||||||||||||||||
| Less: deferred fees | (586 | ) | (694 | ) | (617 | ) | |||||||||||||||||||||
| Net loans | $ | 765,974 | $ | 762,469 | $ | 695,397 | |||||||||||||||||||||
| Regulatory Commercial Real Estate | $ | 291,305 | $ | 291,421 | $ | 267,857 | $ | (116 | ) | 0 | % | $ | 23,448 | 9 | % | 38 | % | 38 | % | 38 | % | ||||||
| Total Risk Based Capital(1) | $ | 144,884 | $ | 142,676 | $ | 139,458 | $ | 2,208 | 2 | % | $ | 5,426 | 4 | % | |||||||||||||
| CRE to Risk Based Capital(1) | 201 | % | 204 | % | 192 | % | -3 | % | 9 | % | |||||||||||||||||
| CRE–MULTI-FAMILY & NON OWNER OCCUPIED COMPOSITION (unaudited) ($ in 000s) | Period Ended | Change from | % of Total | |||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2025 | 2024 | |||||||||||||||
| Collateral Composition(2) | ||||||||||||||||||||||||
| Multifamily | $ | 83,239 | $ | 83,463 | $ | 73,575 | $ | (224 | ) | 0 | % | $ | 9,664 | 13 | % | 31 | % | 31 | % | 30 | % | |||
| Hospitality | 32,165 | 31,961 | 31,369 | 204 | 1 | % | 796 | 3 | % | 12 | % | 12 | % | 13 | % | |||||||||
| Retail | 31,572 | 31,901 | 36,813 | (329 | ) | -1 | % | (5,241 | ) | -14 | % | 12 | % | 12 | % | 15 | % | |||||||
| Mixed Use | 29,366 | 28,906 | 22,662 | 460 | 2 | % | 6,704 | 30 | % | 11 | % | 11 | % | 9 | % | |||||||||
| Mini Storage | 23,847 | 22,828 | 25,028 | 1,019 | 4 | % | (1,181 | ) | -5 | % | 9 | % | 9 | % | 10 | % | ||||||||
| Office | 21,212 | 21,405 | 23,921 | (193 | ) | -1 | % | (2,709 | ) | -11 | % | 8 | % | 8 | % | 10 | % | |||||||
| Industrial | 17,313 | 17,251 | 14,723 | 62 | 0 | % | 2,590 | 18 | % | 6 | % | 6 | % | 6 | % | |||||||||
| Special Purpose | 17,312 | 17,234 | 6,921 | 78 | 0 | % | 10,391 | 150 | % | 6 | % | 6 | % | 3 | % | |||||||||
| Warehouse | 10,063 | 10,230 | 7,531 | (167 | ) | -2 | % | 2,532 | 34 | % | 4 | % | 4 | % | 3 | % | ||||||||
| Other | 2,146 | 2,591 | 3,155 | (445 | ) | -17 | % | (1,009 | ) | -32 | % | 1 | % | 1 | % | 1 | % | |||||||
| Total | $ | 268,235 | $ | 267,770 | $ | 245,698 | $ | 465 | 0 | % | $ | 22,537 | 9 | % | 100 | % | 100 | % | 100 | % | ||||
| (1) Bank of the Pacific | ||||||||||||||||||||||||
| (2) Includes loans in process of construction | ||||||||||||||||||||||||
| CREDIT QUALITY (unaudited) ($ in 000s) | Period Ended | Change from | ||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | ||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | ||||||||||||||
| Risk Rating Distribution | ||||||||||||||||||||
| Pass | $ | 757,625 | $ | 761,416 | $ | 691,350 | $ | (3,791 | ) | 0 | % | $ | 66,275 | 10 | % | |||||
| Special Mention | 16,205 | 9,576 | 10,811 | 6,629 | 69 | % | 5,394 | 50 | % | |||||||||||
| Substandard | 2,022 | 1,228 | 2,704 | 794 | 65 | % | (682 | ) | -25 | % | ||||||||||
| Portfolio Loans | $ | 775,852 | $ | 772,220 | $ | 704,865 | $ | 3,632 | 0 | % | $ | 70,987 | 10 | % | ||||||
| Nonperforming Assets | ||||||||||||||||||||
| Nonaccruing loans | 124 | 365 | 1,094 | $ | (241 | ) | -66 | % | (970 | ) | -89 | % | ||||||||
| Other real estate owned | – | – | – | – | 0 | % | – | 0 | % | |||||||||||
| Nonperforming Assets | $ | 124 | $ | 365 | $ | 1,094 | $ | (241 | ) | -66 | % | (970 | ) | -89 | % | |||||
| Credit Metrics | ||||||||||||||||||||
| Classified loans1to portfolio loans | 0.26 | % | 0.16 | % | 0.38 | % | 0.10 | % | -0.12 | % | ||||||||||
| ACL to classified loans1 | 459.55 | % | 737.54 | % | 327.33 | % | -277.99 | % | 132.22 | % | ||||||||||
| Loans past due 30+ days to portfolio loans2 | 0.16 | % | 0.04 | % | 0.14 | % | 0.12 | % | 0.02 | % | ||||||||||
| Nonperforming assets to total assets | 0.01 | % | 0.03 | % | 0.09 | % | -0.02 | % | -0.08 | % | ||||||||||
| Nonaccruing loans to portfolio loans | 0.02 | % | 0.05 | % | 0.16 | % | -0.03 | % | -0.14 | % | ||||||||||
| (1) Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower’s financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected. (2) Excludes non-accrual loans. | ||||||||||||||||||||
| DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited) ($ in 000s) | Period Ended | Change from | % of Total | |||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2025 | 2024 | |||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Interest-bearing demand | $ | 198,049 | $ | 196,236 | $ | 194,526 | $ | 1,813 | 1 | % | $ | 3,523 | 2 | % | 18 | % | 18 | % | 19 | % | ||||
| Money market | 255,825 | 244,546 | 193,324 | 11,279 | 5 | % | 62,501 | 32 | % | 23 | % | 22 | % | 19 | % | |||||||||
| Savings | 112,658 | 112,056 | 115,520 | 602 | 1 | % | (2,862 | ) | -2 | % | 10 | % | 10 | % | 11 | % | ||||||||
| Time deposits (CDs) | 150,492 | 139,238 | 135,485 | 11,254 | 8 | % | 15,007 | 11 | % | 13 | % | 12 | % | 13 | % | |||||||||
| Total interest-bearing deposits | 717,024 | 692,076 | 638,855 | 24,948 | 4 | % | 78,169 | 12 | % | 64 | % | 62 | % | 62 | % | |||||||||
| Non-interest bearing demand | 405,911 | 421,964 | 375,876 | (16,053 | ) | -4 | % | 30,035 | 8 | % | 36 | % | 38 | % | 38 | % | ||||||||
| Total deposits | $ | 1,122,935 | $ | 1,114,040 | $ | 1,014,731 | $ | 8,895 | 1 | % | $ | 108,204 | 11 | % | 100 | % | 100 | % | 100 | % | ||||
| Insured Deposits | $ | 628,621 | $ | 627,746 | $ | 629,600 | $ | 875 | 0 | % | $ | (979 | ) | 0 | % | 56 | % | 56 | % | 62 | % | |||
| Collateralized Deposits | 174,023 | 175,802 | 131,327 | (1,779 | ) | -1 | % | 42,696 | 33 | % | 15 | % | 16 | % | 13 | % | ||||||||
| Uninsured Deposits | 320,291 | 310,492 | 253,804 | 9,799 | 3 | % | 66,487 | 26 | % | 29 | % | 28 | % | 25 | % | |||||||||
| Total Deposits | $ | 1,122,935 | $ | 1,114,040 | $ | 1,014,731 | $ | 8,895 | 1 | % | $ | 108,204 | 11 | % | 100 | % | 100 | % | 100 | % | ||||
| Consumer Deposits | $ | 518,554 | $ | 487,753 | $ | 466,826 | $ | 30,801 | 6 | % | $ | 51,728 | 11 | % | 47 | % | 44 | % | 46 | % | ||||
| Business Deposits | 419,780 | 439,480 | 406,308 | (19,700 | ) | -4 | % | 13,472 | 3 | % | 37 | % | 39 | % | 40 | % | ||||||||
| Public Deposits | 184,601 | 186,807 | 141,597 | (2,206 | ) | -1 | % | 43,004 | 30 | % | 16 | % | 17 | % | 14 | % | ||||||||
| Total Deposits | $ | 1,122,935 | $ | 1,114,040 | $ | 1,014,731 | $ | 8,895 | 1 | % | $ | 108,204 | 11 | % | 100 | % | 100 | % | 100 | % | ||||
| NET INTEREST MARGIN (unaudited) ($ in 000s) | Quarter Ended | Change From | Twelve Months Ended | Change | ||||||||||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Dec 31, | ||||||||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| Average Interest Bearing Balances | ||||||||||||||||||||||||||||||||
| Portfolio loans | $ | 770,436 | $ | 758,282 | $ | 703,811 | $ | 12,154 | 2 | % | $ | 66,625 | 9 | % | $ | 738,560 | $ | 697,527 | $ | 41,033 | 6 | % | ||||||||||
| Loans held for sale | $ | – | $ | – | $ | 1,033 | $ | – | 0 | % | $ | (1,033 | ) | -100 | % | $ | – | $ | 1,125 | $ | (1,125 | ) | -100 | % | ||||||||
| Investment securities | $ | 318,025 | $ | 306,286 | $ | 302,501 | $ | 11,739 | 4 | % | $ | 15,524 | 5 | % | $ | 309,566 | $ | 291,133 | $ | 18,433 | 6 | % | ||||||||||
| Interest earning cash | $ | 102,834 | $ | 85,895 | $ | 78,296 | $ | 16,939 | 20 | % | $ | 24,538 | 31 | % | $ | 99,918 | $ | 72,893 | $ | 27,025 | 37 | % | ||||||||||
| Total interest-earning assets | $ | 1,191,295 | $ | 1,150,463 | $ | 1,085,641 | $ | 40,832 | 4 | % | $ | 105,654 | 10 | % | $ | 1,148,044 | $ | 1,062,678 | $ | 85,366 | 8 | % | ||||||||||
| Non-interest bearing deposits | $ | 420,140 | $ | 418,092 | $ | 388,227 | $ | 2,048 | 0 | % | $ | 31,913 | 8 | % | $ | 401,698 | $ | 388,561 | $ | 13,137 | 3 | % | ||||||||||
| Interest-bearing deposits | $ | 695,293 | $ | 662,796 | $ | 628,475 | $ | 32,497 | 5 | % | $ | 66,818 | 11 | % | $ | 677,732 | $ | 607,678 | $ | 70,054 | 12 | % | ||||||||||
| Total Deposits | $ | 1,115,433 | $ | 1,080,888 | $ | 1,016,702 | $ | 34,545 | 3 | % | $ | 98,731 | 10 | % | $ | 1,079,430 | $ | 996,239 | $ | 83,191 | 8 | % | ||||||||||
| Borrowings | $ | 13,457 | $ | 13,403 | $ | 13,403 | $ | 54 | 0 | % | $ | 54 | 0 | % | $ | 13,417 | $ | 13,403 | $ | 14 | 0 | % | ||||||||||
| Total interest-bearing liabilities | $ | 708,750 | $ | 676,199 | $ | 641,878 | $ | 32,551 | 5 | % | $ | 66,872 | 10 | % | $ | 691,149 | $ | 621,081 | $ | 70,068 | 11 | % | ||||||||||
| Yield / Cost $(1) | ||||||||||||||||||||||||||||||||
| Portfolio loans | $ | 11,577 | $ | 11,485 | $ | 10,336 | $ | 92 | 1 | % | $ | 1,241 | 12 | % | $ | 44,231 | $ | 41,169 | $ | 3,062 | 7 | % | ||||||||||
| Loans held for sale | $ | – | $ | – | $ | 16 | $ | – | 0 | % | $ | (16 | ) | -100 | % | $ | – | $ | 71 | $ | (71 | ) | -100 | % | ||||||||
| Investment securities | $ | 2,805 | $ | 2,787 | $ | 2,622 | $ | 18 | 1 | % | $ | 183 | 7 | % | $ | 11,057 | $ | 10,107 | $ | 950 | 9 | % | ||||||||||
| Interest-bearing cash | $ | 1,029 | $ | 957 | $ | 942 | $ | 72 | 8 | % | $ | 87 | 9 | % | $ | 4,318 | $ | 3,833 | $ | 485 | 13 | % | ||||||||||
| Total interest-earning assets | $ | 15,411 | $ | 15,229 | $ | 13,916 | $ | 182 | 1 | % | $ | 1,495 | 11 | % | $ | 59,606 | $ | 55,180 | $ | 4,426 | 8 | % | ||||||||||
| Interest-bearing deposits | $ | 2,865 | $ | 2,695 | $ | 2,796 | $ | 170 | 6 | % | $ | 69 | 2 | % | $ | 10,825 | $ | 9,829 | $ | 996 | 10 | % | ||||||||||
| Borrowings | $ | 198 | $ | 208 | $ | 225 | $ | (10 | ) | -5 | % | $ | (27 | ) | -12 | % | $ | 818 | $ | 951 | $ | (133 | ) | -14 | % | |||||||
| Total interest-bearing liabilities | $ | 3,063 | $ | 2,903 | $ | 3,021 | $ | 160 | 6 | % | $ | 42 | 1 | % | $ | 11,643 | $ | 10,780 | $ | 863 | 8 | % | ||||||||||
| Net interest income | $ | 12,348 | $ | 12,326 | $ | 10,895 | $ | 22 | 0 | % | $ | 1,453 | 13 | % | $ | 47,963 | $ | 44,400 | $ | 3,563 | 8 | % | ||||||||||
| Yield / Cost %(1) | ||||||||||||||||||||||||||||||||
| Yield on portfolio loans | 5.96 | % | 6.01 | % | 5.84 | % | -0.05 | % | 0.12 | % | 5.99 | % | 5.90 | % | 0.09 | % | ||||||||||||||||
| Yield on investment securities | 3.50 | % | 3.61 | % | 3.45 | % | -0.11 | % | 0.05 | % | 3.57 | % | 3.47 | % | 0.10 | % | ||||||||||||||||
| Yield on interest-bearing cash | 3.97 | % | 4.42 | % | 4.79 | % | -0.45 | % | -0.82 | % | 4.32 | % | 5.26 | % | -0.94 | % | ||||||||||||||||
| Cost of interest-bearing deposits | 1.63 | % | 1.61 | % | 1.77 | % | 0.02 | % | -0.14 | % | 1.60 | % | 1.62 | % | -0.02 | % | ||||||||||||||||
| Cost of borrowings | 5.84 | % | 6.16 | % | 6.68 | % | -0.32 | % | -0.84 | % | 6.10 | % | 7.10 | % | -1.00 | % | ||||||||||||||||
| Cost of deposits and borrowings | 1.08 | % | 1.05 | % | 1.17 | % | 0.03 | % | -0.09 | % | 1.07 | % | 1.07 | % | 0.00 | % | ||||||||||||||||
| Yield on interest-earning assets | 5.13 | % | 5.25 | % | 5.10 | % | -0.12 | % | 0.03 | % | 5.19 | % | 5.19 | % | 0.00 | % | ||||||||||||||||
| Cost of interest-bearing liabilities | 1.71 | % | 1.70 | % | 1.87 | % | 0.01 | % | -0.16 | % | 1.68 | % | 1.74 | % | -0.06 | % | ||||||||||||||||
| Net interest spread | 3.42 | % | 3.55 | % | 3.23 | % | -0.13 | % | 0.19 | % | 3.51 | % | 3.45 | % | 0.06 | % | ||||||||||||||||
| Net interest margin | 4.11 | % | 4.25 | % | 3.99 | % | -0.14 | % | 0.12 | % | 4.18 | % | 4.18 | % | 0.00 | % | ||||||||||||||||
| (1) Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%. | ||||||||||||||||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited) ($ in 000s) | Quarter Ended | Change From | Twelve Months Ended | Change | ||||||||||||||||||||||||||||
| Dec 31, | Sep 30, | Dec 31, | Sep 30, 2025 | Dec 31, 2024 | Dec 31, | Dec 31, | ||||||||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | 2025 | 2024 | $ | % | ||||||||||||||||||||||
| ACL-Loans | ||||||||||||||||||||||||||||||||
| Beginning of period balance | $ | 9,057 | $ | 9,222 | $ | 8,897 | $ | (165 | ) | -2 | % | $ | 160 | 2 | % | $ | 8,851 | $ | 8,530 | $ | 321 | 4 | % | |||||||||
| Charge-offs | (50 | ) | (59 | ) | (32 | ) | 9 | -15 | % | (18 | ) | 56 | % | (261 | ) | (129 | ) | (132 | ) | 102 | % | |||||||||||
| Recoveries | 182 | 5 | 105 | 177 | 3540 | % | 77 | 73 | % | 188 | 124 | 64 | 52 | % | ||||||||||||||||||
| Net (charge-off) recovery | 132 | (54 | ) | 73 | 186 | -344 | % | 59 | 81 | % | (73 | ) | (5 | ) | (68 | ) | 1360 | % | ||||||||||||||
| Provision (recapture) | 103 | (111 | ) | (119 | ) | 214 | -193 | % | 222 | -187 | % | 514 | 326 | 188 | 58 | % | ||||||||||||||||
| End of period balance | $ | 9,292 | $ | 9,057 | $ | 8,851 | $ | 235 | 3 | % | $ | 441 | 5 | % | $ | 9,292 | $ | 8,851 | $ | 441 | 5 | % | ||||||||||
| Net charge-off (recovery) to | ||||||||||||||||||||||||||||||||
| average portfolio loans | -0.07 | % | 0.03 | % | -0.04 | % | -0.10 | % | -0.03 | % | 0.01 | % | 0.00 | % | 0.01 | % | ||||||||||||||||
| ACL-loans to portfolio loans | 1.20 | % | 1.17 | % | 1.26 | % | 0.03 | % | -0.06 | % | 1.20 | % | 1.26 | % | -0.06 | % | ||||||||||||||||
| ACL-Unfunded Loans Commitments | ||||||||||||||||||||||||||||||||
| Beginning of period balance | $ | 551 | $ | 489 | $ | 524 | $ | 62 | 13 | % | $ | 27 | 5 | % | $ | 540 | $ | 698 | $ | (158 | ) | -23 | % | |||||||||
| Provision (recapture) | 17 | 62 | 16 | (45 | ) | -73 | % | 1 | 6 | % | 28 | (158 | ) | 186 | -118 | % | ||||||||||||||||
| End of period balance | $ | 568 | $ | 551 | $ | 540 | $ | 17 | 3 | % | $ | 28 | 5 | % | $ | 568 | $ | 540 | $ | 28 | 5 | % | ||||||||||
ABOUT PACIFIC FINANCIAL CORPORATION
Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At December 31, 2025, the Company had total assets of $1.28 billion and operated fifteen branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in the communities of Clatsop and Clackamas counties in Oregon. The Company also operated loan production offices in the communities of Burlington, Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.
Cautions Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company’s operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. Any forward-looking statements in this communication are based on information at the time the statement is made. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.
CONTACTS:
DENISE PORTMANN, PRESIDENT & CEO
CARLA TUCKER, EVP & CFO
360.533.8873
