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GlobeNewswire·

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

PFLC
  • Pacific Financial Corporation reported net income of $3.1 million ($0.31 per diluted share) for the fourth quarter of 2025, down from $3.5 million in the prior quarter & up from $2.2 million in the same quarter of 2024.
  • Full-year 2025 net income increased 22% to $11.6 million ($1.16 per share) compared to $9.5 million in 2024.
  • The Board declared a quarterly cash dividend of $0.15 per share, an increase from $0.14, payable on February 28, 2026 to shareholders of record on February 13, 2026.
  • Total assets grew 1% to $1.28 billion, while portfolio loans increased 10% year-over-year to $775.9 million.
  • Total deposits rose 11% year-over-year to $1.12 billion, driven by growth in money-market balances & non-interest-bearing accounts.
  • Net interest income increased slightly to $12.3 million for the quarter & $47.8 million for the full year 2025.
  • Net interest margin decreased to 4.11% for the quarter due to lower yields on interest-earning assets following Federal Reserve rate cuts.
  • A provision for credit losses of $120,000 was recorded in the fourth quarter, contrasting with a recapture in the prior quarter.
  • Non-performing assets declined to $124,000 (0.01% of assets), with special mention assets increasing to $16.2 million primarily due to one downgraded commercial real estate loan.
  • Shareholder equity increased to $126.4 million, supported by net income & a reduction in unrealized losses on available-for-sale securities.
  • Tangible book value per share reached $11.27, representing a 13% increase from the prior year.
  • Regulatory capital ratios exceeded well-capitalized thresholds, with a total risk-based capital ratio of 17.3% & a leverage ratio of 10.8%.
  • Liquidity metrics remained strong with a short-term funding coverage ratio of 193% against uninsured deposits.
  • Non-interest income totaled $1.7 million for the quarter, impacted by the closure of the mortgage banking division in late 2024.
  • Non-interest expenses rose to $10.0 million for the quarter due to higher incentive accruals & payroll costs.
  • Investment securities increased to $322.6 million, with collateralized mortgage obligations comprising 54% of the portfolio.
  • The company continues to serve small-to-medium businesses across western Washington & Oregon with 15 branches & loan production offices.