Pacific Valley Bancorp Reports Strong Growth in Financial Performance for Q1 2026

Pacific Valley Bancorp, the sole owner of Pacific Valley Bank, has recently unveiled its unaudited financial results for the first quarter of 2026, reflecting significant growth in loans, deposits, and overall profitability. The bank's total assets surged to $627.8 million, representing an 11.3% increase compared to the same period last year, while total loans increased by 7.7% to reach $529.4 million. Additionally, total deposits witnessed a substantial 12.0% rise, reaching $536.6 million.

The company's net income for this quarter stood at $1.2 million, marking a notable 49.7% increase, or an additional $385 thousand compared to the previous quarter ending December 31, 2025. This impressive performance can be attributed to a rise in overnight funds interest income, coupled with reduced interest expenses and the absence of any provision for loan losses. Basic earnings per share have improved to $0.20, up from $0.13 in the previous quarter.

As for the net interest margin, it was recorded at 3.75% for Q1 2026, slightly down from 3.86% in the prior quarter but better than the 3.43% reported a year ago. The year-over-year increase in this margin is a result of higher loan interest income, stable deposit interest expenses, and lower borrowing costs. The bank's gross loan portfolio expanded by $37.8 million, primarily driven by increases in commercial, agricultural real estate, and commercial real estate loans.

Interestingly, the bank maintains a low non-performing loans ratio at just 0.04% of gross loans, highlighting the quality of its loan portfolio. Furthermore, the Community Bank Leverage Ratio remains strong at 12.51%, well above the regulatory requirement of 9.00%, ensuring the institution's capital protection.

CEO Anker Fanoe commented on the results: "We are pleased to see our net income rise to $1.2 million, alongside significant growth in loans and deposits compared to last year. Our deposit costs have decreased, thanks to the ongoing impact of Federal Reserve rate cuts."

In terms of expansion, Fanoe announced the recent relocation of their Salinas branch office to a larger location at 1097 South Main Street, aimed at enhancing customer service.

Looking at liquidity, the bank's primary liquidity ratio, which consists of cash, deposits held in other banks, and securities as a percentage of total assets, stands at an impressive 14.0%, compared to 11.2% a year prior. As of March 31, 2026, the bank's total on-balance sheet liquidity reached $88 million, alongside contingent liquidity totaling $367 million, ensuring strong cash flow management.

Comparatively, total deposits increased by $57.5 million or 12.0% year-on-year, driven mainly by higher money market and checking accounts, despite a decrease in interest checking accounts.

The shareholders' equity recorded a solid growth of 23.7%, reaching $71.2 million as of March 31, 2026, influenced mainly by a capital raise from Taylor Fresh Foods and retained earnings from net income.

In terms of profitability metrics, net interest income rose to $5.7 million for Q1 2026, a substantial increase from $4.6 million in the same quarter of the previous year. Furthermore, the company did not record any provisions for credit losses over the past two years, emphasizing the strength of its lending practices.

As the Pacific Valley Bancorp moves forward, Fanoe reiterated their commitment to maintaining organic growth strategies for loans and deposits, while continuing to enhance operational efficiencies to drive sustainable long-term performance. With a strong financial foundation and strategic direction, Pacific Valley Bancorp remains well-positioned to meet the needs of its customers and stakeholders in the lending landscape.