#United States #financial results #Q3 2025 #Salinas #Pacific Valley Bancorp

Pacific Valley Bancorp Reports Third Quarter Financial Results for 2025

On October 23, 2025, Pacific Valley Bancorp (OTC Pink: PVBK) made headlines by announcing its unaudited financial results for the third quarter of 2025. The figures revealed a nuanced narrative, showcasing a net income of $950,000, which reflects a decline of 16.5% or $188,000 compared to the same quarter of the previous year. The primary reason behind this decrease was attributed to rising personnel expenses.

However, not all news was grim, as the quarterly net income indicated an increase of 2.9% or $27,000 from the preceding quarter, signaling a potential rebound. This uptick was largely fueled by a boost in income from Federal Funds and a reduction in borrowing costs, albeit somewhat counterbalanced by elevated premises expenses resulting from the bank's ongoing expansion efforts.

Key Financial Highlights

The recent report presented a few critical metrics to comprehend the bank's performance:

• - Net Interest Margin: For the quarter, the net interest margin was recorded at 3.53%, a slight drop from 3.61% in the previous quarter, largely due to increased money market interest expenses. Yet, it marked an improvement compared to 3.39% in the same period last year.
• - Gross Loans: Outstanding gross loans surged by 10.2% ($48 million) year-over-year, underscoring the bank's commitment to agricultural real estate, commercial real estate (CRE), and construction and industrial (CI) lending.
• - Non-Performing Loans: The bank successfully kept non-performing loans stable at 0.05% of gross loans, a significant reduction from 0.24% year-over-year, reflecting strong credit quality.

A notable aspect of the financial results points to an increase in total deposits by $42.2 million or 8.9% from the previous year, driven primarily by a rise in money market accounts.

CEO Insights

CEO Anker Fanoe expressed optimism regarding the bank's position, noting, "Loans increased by $19 million in the third quarter, marking our most substantial quarterly growth since late 2023. Additionally, deposits rose by $25 million." He attributed this expansion to the bank's robust infrastructure investments like establishing a loan production office in downtown Salinas and an upcoming branch in Santa Cruz, set to open in November.

Fanoe remarked on the changing market dynamics post-acquisitions of competitor banks, stating, "These changes in the market present numerous growth opportunities for us. We are bolstering our loan and deposit production staff while enhancing our marketing strategies to capitalize on these developments."

Current Economic Position

Examining the liquidity and capital position as of September 30, 2025, the bank displayed a strong liquidity ratio of 11.3%. In terms of total assets, Pacific Valley Bancorp was valued at $596.2 million, reflecting an increase of 8.2% year-over-year, primarily due to a rise in loans.

The bank’s investment securities portfolio stood at $24.9 million, showcasing minor unrealized losses compared to previous periods. Additionally, the bank’s equity increased to $59.9 million, a growth powered by retained earnings stemming from net income.

In summary, the third quarter financial results for Pacific Valley Bancorp highlight both opportunities and challenges. While net income has faced a downturn, the bank continues to show promise with loan growth and a strong capital position, positioning itself strategically for future success amid a shifting competitive landscape.