People’s Bank of Commerce Shows Strong Growth Leading to 49% Increase in Earnings

MEDFORD, Ore.--()--People’s Bank of Commerce (OTCBB: PBCO) today reported earnings of $874,000 for the first nine months of 2014, up 49% compared to $585,000 for the same period last year. This resulted in earnings of $0.46 per share for the first nine months of 2014, compared to $0.41 per share reported the prior year. Net interest income was up by 16% year-to-date, the result of strong loan growth during 2014. Portfolio loan and deposit growth in the past 12 months continues in excess of 14% and 25%, respectively.

Earnings for the third quarter of 2014 were $367,000 compared to $223,000 for the same period in 2013, an increase of 64%. The Bank reported earnings of $0.19 per share for the three months ending September 30, 2014, compared to $0.13 per share in 2013. Mortgage lending income in the third quarter was up by 11%, compared to the same period in the prior year. “While we continue to experience fewer refinance transactions this year, we’ve seen a substantial increase in home purchase loans throughout all of 2014,” said Steve Erb, the Bank’s Chief Banking Officer.

“The Bank’s loan quality remains excellent with non-current loans to total loans at 0.03%, as of September 30, 2014, down from 0.25% last year,” said Ken Trautman, President and CEO of People's Bank. Non-performing assets to total assets compares loans past due 90 days and more, loans on non-accrual and other real estate owned to total assets. This ratio was 0.78% as of September 30, 2014, compared to 0.94% at the end of September 2013. Reserves totaled 1.23% of portfolio loans at the end of the third quarter 2014, compared to 1.64% one year ago.

People's Bank reported total assets of $209.5 million at the end of September 2014, up 23% from the prior year. The Bank has total shareholders’ equity of $22.0 million, up 10% in the past year, and a book value of $11.37 per share. Tier one capital to assets remains strong at 10.4%. The Bank’s stock trades on the over-the-counter market under the symbol PBCO.

             

2014

2013

Quarter ended September 30:

Net interest income $ 1,951,000 $ 1,623,000
Provision for Loan Losses 0 66,000
Noninterest income 523,000 606,000
Noninterest expense 1,979,000 1,827,000
Net income 367,000 223,000
EPS 0.19 0.13 **
 

Year to Date

Net interest income

$ 5,415,000 $ 4,674,000
Provision for Loan Losses (74,000 ) 154,000
Noninterest income 1,606,000 1,705,000
Noninterest expense 5,879,000 5,365,000
Net income 874,000 585,000
EPS 0.46 0.41 **
 

At September 30:

Total Portfolio Loans $ 140,030,000 $ 122,331,000
Total Reserve for Loan Losses 1,725,000 2,010,000
Total Deposits 185,681,000 147,924,000
Total Assets 209,547,000 170,463,000
Total Shareholders' Equity 22,020,000 20,064,000
No. of shares outstanding 1,936,729 1,856,478 **
Book Value, per share 11.37 10.81 **
 
** Retroactively adjusted for 2014 stock dividend

Contacts

People’s Bank of Commerce
Ken Trautman, 541-774-7654
President and CEO

Contacts

People’s Bank of Commerce
Ken Trautman, 541-774-7654
President and CEO