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Pacific Valley Bancorp Reports Record Growth in Q4 2025

Pacific Valley Bancorp (OTC Pink: PVBK), the parent company of Pacific Valley Bank, has revealed its financial results for the fourth quarter of 2025, showing remarkable growth in total assets, loans, and deposits. Despite facing a decrease in net income, the company's strategic investments in personnel to support growth initiatives are projected to yield long-term benefits.

Strong Financial Performance

For the quarter ending December 31, 2025, the total assets of Pacific Valley Bancorp reached $710 million, signifying an increase of 8.3% compared to the previous year. Total loans rose by 10.3%, reaching $536 million, and total deposits saw a growth of 7.0%, amounting to $620 million. This strong performance underscores a solid trajectory for the bank.

The net income for the quarter was reported at $774,000, which is a decline of 18.5%, translating to a loss of $176,000 from the prior quarter. This drop in net income can largely be attributed to a provision for credit losses amounting to $281,000 and increased consulting expenses. However, the rise in loan interest income has helped mitigate these challenges somewhat.

Yearly Overview

When looking at the annual figures, net income for the entire year was $3.6 million, down 18.8% from $4.4 million in 2024. The decrease was primarily driven by escalated personnel expenses linked to an expanded loan and deposit production team, alongside the aforementioned credit loss provision.

On a more positive note, the net interest margin—a key indicator of profitability—improved to 3.86% for the quarter, up from 3.53% in the previous quarter. This enhancement was driven by increased interest from loans, along with lower money market interest expenses and greater loan prepayment penalties.

Growth Drivers

The bank's gross loans saw a significant increase of $49.8 million, representing a 10.3% rise year-over-year, attributed to growth in commercial and agricultural real estate loans. Non-performing loans to gross loans stood at a stable 0.04%, highlighting the financial health of the bank's loan portfolio, a small increase from 0.03% in 2024.

Moreover, the bank's leverage ratio remained robust, recorded at 12.74% for the quarter, comfortably above the required well-capitalized minimum of 9%. This ratio showcases the bank’s solid capital position and liquidity profile, essential for navigating any economic uncertainties.

CEO Anker Fanoe expressed satisfaction with the growth trajectory of loans, which increased by $17 million in the fourth quarter alone. A seasonal increase in agricultural deposits, which soared by $106 million at year-end, significantly contributed to the surge in total deposits.

Future Prospects

Significantly, the recent acquisition of a 16.3% stake in Pacific Valley Bancorp by Taylor Fresh Foods, a prominent player in the packaged vegetable sector, is expected to bolster the bank's growth. The investment has been met with enthusiastic feedback and is forecast to enhance the bank's outreach and capabilities beyond Monterey County.

Pacific Valley Bancorp's continued focus on expanding its loan production and enhancing its service offerings positions it for sustained growth and a more resilient future. As financial markets navigate a period of change, the bank's proactive strategies are keenly aimed at addressing both current and emerging challenges.

With its solid fundamentals and supportive customer relations, Pacific Valley Bancorp stands poised to capitalize on future opportunities, securing its place as a community banking leader in California.

Conclusion

As Pacific Valley Bancorp enters 2026, its commitment to enhancing loan and deposit production and maintaining a robust financial posture will be pivotal in achieving its long-term growth objectives. Investors and stakeholders remain optimistic as the bank navigates the intricacies of the financial landscape, ensuring stability and growth ahead.