PACIFIC FINANCIAL CORPORATION Executive Management
Denise Portmann - President & CEO, joined Bank 2001
- 25+ years of community banking experience, 5 years public accounting experience
- B.S. Degree in Accounting at Central Washington University
- Board member Community Bankers of Washington, Oregon Bankers Association, and FRB SF Community Depository Institutions Advisory Council
- Washington State representative for the ICBA Federal Delegate Board
Carla Tucker, CPA - EVP & CFO, joined Bank 2019
- 35+ years of banking experience, 15+ years with Skagit Bank as their EVP & CFO
- B.S. Degree in Accounting at Northeast Missouri State University, Kirksville, MO (Summa Cum Laude)
- Honors grad of Pacific Coast Banking School in Seattle, WA
- Member and former board member of Soroptimist International of Burlington, WA
Dan Kuenzi - EVP & CCO, joined Bank 2017
- 30+ years in commercial banking industry
- Deep experience in credit quality admin & sales production management
- Masters of Science in Agricultural Economics
Terri McKinnis- EVP & COO, joined Bank 2023
- 40+ years of banking experience
- Formerly with Commerce Bank of Oregon, a division of Zions Bancorporation, N.A.
- University of Washington Foster School of Business, and honors graduate of Pacific Coast Banking School (PCBS)
Walker Evans - EVP & CLO, joined Bank 2004
- 35+ years of commercial banking experience including line management, underwriting and office start -up
- B.A. Degree in Business Administration, with concentrations in finance and marketing at University of Washington
- Musician playing professionally in the greater Vancouver, Canada and Seattle areas.
2
Agenda - April 24, 2024
- Welcome and introductions
- Call the meeting to order
- Nomination and election of directors
- Ratification of the selection of auditors
- CEO update
- Question and answer session
- Adjournment
3
Shareholder Proposals
- Election of Class C Directors: Denise J. Portmann Douglas Biddle Benjamin Ertischek
- Ratification of Public Accounting Firm: Clifton Larson Allen LLP
4
CEO Update
5
Forward-Looking Statement
This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this presentation that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific.
Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company's management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company's operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. We undertake no obligation to update or revise any forward-looking statement. Readers of this presentation are cautioned not to put undue reliance on forward-looking statements.
6
PFLC Overview
- Pacific Financial Corporation (OTCQX: PFLC) is the holding company for Bank of the Pacific
- Primary markets are located in the Pacific Northwest; one of the top regional economies in the U.S
- Offers traditional community banking services to small- to-medium sized businesses and professionals in western Washington and Oregon
- Sustained track record of delivering solid returns to shareholders
- Low cost of funds at 0.83%(Q4 2023), stable funding base with approximately 90%(Q4 2023) core deposits evidencing strength of franchise
- Strong balance sheet with loans-to-deposit ratio at 67%
- Diversified loan portfolio with top-tier credit quality
- Well-capitalizedand exceeds all regulatory capital ratios
- Risk management processes have resulted in strong capital and liquidity positions, which will allow us to continue to serve our current and prospective customers
7
Pacific Northwest
Northwest Washington
Loans - $202M @ 5.73%
Deposits - $222M @ 0.70%
NIB DDA - 48%
Coastal Washington & Oregon
Loans - $269M @ 5.82%
Deposits - $743M @ 0.79%
NIB DDA - 39%
Portland Metro & Salem
Loans - $214M @ 5.88%
Deposits - $44M @ 0.62%
NIB DDA - 54%
Gross Loans are net of LHFS | 8 |
December 31, 2023 |
2023 Highlights
Total Assets | $1.15B |
2023 Net Income | $14.6M |
Gross Loans | $685.3M |
Total Deposits | $1.01B |
Total Shareholders' Equity | $114.7M |
Annual Cash Dividend Yield* | 5.96% |
ROAA | 1.22% |
ROAE | 13.48% |
Net Interest Margin | 4.39% |
*Market data as of April 15, 2024
- Record net income of $14.6 million for 2023; representing diluted earnings per share of $1.40
- 110 bps net interest margin expansion compared to the preceding year
- 7% or $45 million gross loan growth compared to the preceding year
- ROAA of 1.22% and ROAE of 13.48%
- Quarterly cash dividend of $0.14 per share in Q4 2023 (total $0.53) for dividend yield of approx. 5.96%*
- Liquidity remains strong with $236 million in cash, bank balances, and unencumbered AFS securities and $327 million of secured lines of credit, representing 56% of deposits
- Continued strong credit quality with non- performing assets to total assets ratio of 0.06% and allowance for credit losses to total loans of 1.25%
9
Earnings & Profitability
Net Income
3.00%
2.50%
Return on Equity & Assets
13.70% | 13.48% |
10.85% |
16.00%
14.00%
12.00%
$16.0
$14.0
$12.0
$10.0
$8.0
$6.0
i o n s
$13.8
4Q
3Q
2Q
$11.4
4Q
3Q
$12.7
4Q
3Q
2Q
$10.9
4Q
3Q
$14.6
4Q
3Q
2Q
2.00%
1.50%
1.00%
0.50%
0.00%
10.33% | 10.24% |
1.50% | |
1.07% | 1.22% |
1.00% | |
0.82% |
2019 | 2020 | 2021 | 2022 | 2023 |
Diluted Earnings Per Share
10.00% ROAA 8.00% ROAE 6.00%
4.00%
2.00%
0.00%
$4.0
$2.0
$-
I n M i l l
1Q
2Q
1Q
1Q
2Q
1Q
1Q
$1.29
4Q $0.32
$1.07
$1.22
4Q $0.20
$1.04
$1.40
4Q $0.28
3Q $0.35
2019 | 2020 | 2021 | 2022 | 2023 |
3Q $0.35
2Q $0.34
1Q $0.28
4Q $0.37
3Q $0.37
2Q $0.23
1Q $0.10
3Q $0.25
2Q $0.36
1Q $0.41
4Q $0.45
3Q $0.28
2Q $0.15
1Q $0.16
2Q $0.38
1Q $0.39
2019 | 2020 | 2021 | 2022 | 2023 |
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Pacific Financial Corporation published this content on 15 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2024 22:21:00 UTC.
