SALINAS, Calif. – October 29, 2026 -- Pacific Valley Bancorp (OTC Markets: PVBK) reported third-quarter 2026 net income of $1.4 million, or $0.24 per share, up 45.2% from the year-earlier quarter, as higher interest income outweighed rising interest and non-interest expense. EPS compares with $0.19 a year earlier.
Loan growth driven by non-owner occupied CRE and multifamily
Gross loans reached $589 million at September 30, up 13.5%, or $70 million, from a year earlier. Non-owner occupied commercial real estate and multifamily loans accounted for most of the increase. Loans rose $41 million, or 7.6%, from June 30. CEO Anker Fanoe said 82% of the loan book is secured by collateral.
Total assets rose 11.9% year over year to $667 million, up $15 million, or 2.3%, from the second quarter. Deposits grew 11.6%, or $60 million, to $575 million, led by money market accounts and certificates of deposit. Quarterly deposit growth was $15 million, or 2.7%.
Net interest margin widens to 3.84% from 3.53% a year ago
Net interest income reached $6.2 million, against $5.0 million in the third quarter of 2025. Interest income rose $1.5 million while interest expense rose only $247 thousand. Net interest margin was 3.84%, compared with 3.82% in the second quarter. Nine-month net income totaled $3.9 million, up 39.8%, or $1.1 million, with nine-month net interest margin at 3.80% versus 3.51%.
Quarterly net income slips 1.6% sequentially on provision and costs
Net income fell $23 thousand, or 1.6%, from the second quarter on higher deposit interest expense, a credit loss provision and higher operating costs. Return on average assets was 0.83%, compared with 0.89% in the second quarter.
Third-quarter non-interest expense was $4.5 million, up $0.5 million, or 11.3%, year over year, on personnel and premises costs. Year-to-date non-interest expense was $13.1 million versus $11.8 million, up 10.7%. Non-interest income was $376 thousand versus $383 thousand a year earlier.
Fanoe said the growth strategy is delivering economies of scale and should improve operational efficiency.
Credit quality holds as the bank books a $149 thousand provision
Non-performing loans were 0.04% of gross loans, versus 0.05% a year earlier. The bank recorded a $149 thousand provision for credit losses in the nine months, tied to loan growth; none was recorded a year earlier. The allowance for credit losses stood at 1.38% of gross loans.
The investment portfolio totaled $22 million, or 3.4% of assets. Unrealized losses were $0.6 million, or 2.6% of the portfolio, compared with $0.3 million at June 30 and $0.2 million a year earlier.
Capital and liquidity ratios decline from year-ago levels
Pacific Valley Bank's Community Bank Leverage Ratio was 12.14%, down from 12.60% at June 30 and 13.03% a year earlier, against the 8.00% well-capitalized threshold. Bank-level equity rose to $81 million from $79 million in June. Holding company shareholders' equity reached $73 million, up $13 million, or 21.4%, from a year ago, driven by the Taylor Fresh Foods capital raise and retained earnings.
The primary liquidity ratio fell to 10.07% from 11.29% a year earlier. On-balance sheet liquidity was $67 million and contingent liquidity was $361 million. CFO Steve Leen said the two combined equal 122% of uninsured deposits.