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Pacific Financial Corp Earns $2.7 Million, or $0.27 per Diluted Share for Second Quarter 2025; Loan Growth Supports Net Interest Margin Expansion; Declares Quarterly Cash Dividend of $0.14 per Share
Globenewswire· 2025-07-25 12:30
Core Viewpoint Pacific Financial Corporation reported a strong financial performance for the second quarter of 2025, with increased net income, improved loan growth, and solid asset quality, reflecting effective strategic execution and operational management. Financial Performance - Net income for Q2 2025 was $2.7 million, or $0.27 per diluted share, up from $2.4 million in Q1 2025 and $2.1 million in Q2 2024, indicating a 12% quarter-over-quarter increase and a 26% year-over-year increase [1][27] - Net interest income rose to $11.9 million, compared to $11.3 million in Q1 2025 and $10.8 million in Q2 2024, reflecting higher loan yields and lower costs of funds [9][18] - Return on average assets (ROAA) improved to 0.89% from 0.81% in Q1 2025 and 0.76% in Q2 2024 [9][27] - Return on average equity (ROAE) increased to 9.14% from 8.48% in the previous quarter and 7.47% a year earlier [9][27] Loan and Deposit Growth - Loan balances grew by 6% to $746.5 million in Q2 2025, with significant increases in commercial and agricultural loans [10][12] - Total deposits decreased slightly by $3.8 million to $1.07 billion compared to the previous quarter but increased by $85.2 million, or 9%, year-over-year [9][15] - Non-interest-bearing deposits accounted for 40% of total deposits, supporting a lower cost of funds [3][15] Asset Quality - Non-performing assets remained low at 0.04% of total assets, or approximately $468,000, down from 0.10% in the previous quarter [4][13] - The allowance for credit losses increased to $9.2 million, or 1.24% of gross loans, reflecting the growth in the loan portfolio [14][27] Capital and Liquidity - Shareholders' equity increased to $118.9 million, up from $116.9 million in Q1 2025 and $114.9 million in Q2 2024 [16][27] - The estimated leverage ratio was 10.9% and the total risk-based capital ratio was 16.9%, both exceeding regulatory well-capitalized requirements [17][27] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.14 per share, payable on August 22, 2025 [2]