Pacific Valley Bancorp Achieves Record Levels of Loans, Deposits and Total Assets in the Fourth Quarter of 2025

Core Insights - Pacific Valley Bancorp reported an 8.3% increase in total assets to $710 million for Q4 2025, driven by a 10.3% rise in total loans to $536 million and a 7.0% increase in total deposits to $620 million [1][6][10] - The net income for Q4 2025 was $774 thousand, reflecting an 18.5% decrease from the previous quarter, primarily due to increased personnel expenses and a credit loss provision [7][16] - The company has received positive feedback following Taylor Fresh Foods' acquisition of a 16.3% stake in Pacific Valley Bancorp, which is expected to support growth beyond Monterey County [4] Financial Performance - Total assets increased by $54.5 million or 8.3% year-over-year, and by $113.9 million or 19.1% quarter-over-quarter, mainly due to seasonal agricultural deposits [6] - Total gross loans outstanding grew by 10.3% or $49.8 million from the previous year, with significant contributions from commercial and industrial (C&I), agricultural real estate, and commercial real estate (CRE) loans [9] - Total deposits rose by $40.8 million or 7.0% compared to the prior year, attributed to higher money market and checking accounts [10] Income and Expenses - Net interest income for Q4 2025 was $5.6 million, up from $4.4 million in Q4 2024, with a net interest margin of 3.86% compared to 3.30% in the same period last year [11][12] - Non-interest expense increased by 30.1% year-over-year to $16.4 million, primarily due to higher personnel expenses [15] - A provision for credit losses of $281 thousand was recorded in 2025, marking a shift from no provision in 2024, reflecting growth in the loan portfolio [13] Liquidity and Capital - The primary liquidity ratio was 23.0% as of December 31, 2025, down from 24.7% a year earlier, with total on-balance sheet liquidity of $163 million [5] - Shareholders' equity increased by 24.3% to $70.1 million, largely due to the capital raise from Taylor Fresh Foods and retained earnings [11] - The Community Bank Leverage Ratio stood at 12.74%, well above the regulatory minimum of 9.00% [7][11]