MEDFORD, Ore.--(BUSINESS WIRE)--People’s Bank of Commerce (OTCBB: PBCO) announced today its financial results for the first quarter of 2016 and the last 12 months of operations. The bank reported net income of $298,000 or $0.14 per diluted share for the first quarter of 2016, compared to net income of $335,000 or $0.17 per diluted share in the same quarter of 2015.
The People’s Bank of Commerce Board of Directors declared a five percent (5%) common stock dividend to shareholders of record May 5, 2016 payable on or about June 6, 2016. No fractional shares will be issued and cash will be paid in lieu of fractional shares.
Highlights for the quarter included:
- Net Loans increased $14.3 million during the first quarter of 2016 compared to $1.9 million during the first quarter of 2015.
- Deposit growth over the past 3 months was $20.4 million compared to $10.7 million during the first quarter of 2015.
- The bank had total assets of $271.1 million at the end of the first quarter of 2016 compared to $225.7 million at the end of the first quarter 2015, a 20% increase.
- Net interest income for the first quarter of 2016 totaled $2.3 million compared to $2.0 million in the first quarter of 2015, an increase of 12%.
- Non-Interest income was $330 thousand in the first quarter of 2016 compared to $530 thousand the first quarter of 2015, down 38%. The majority of the decrease was in home mortgage origination fees.
- Non-interest expense was $2.1 million in the first quarter of 2016 or 0.81% of average quarterly assets compared to 2.1 million in the first quarter of 2015 or 0.95% of average quarterly assets.
- Loans past due 90 days or nonaccrual to total loans at the end of the first quarter 2016 were 0.29% compared to zero at the end of the first quarter 2015.
- The efficiency ratio was 80.24% for the first quarter of 2016 compared to 80.85% for the first quarter of 2015.
- ROE and ROA for the first quarter 2016 were 4.88% and 0.47%, respectively, and 5.95% and 0.61%, respectively, for the first quarter of 2015.
Non-Interest Income
“As noted above, non-interest income was $200,000 lower in the first quarter of 2016 when compared to the first quarter of 2015, the primary result of staff turnover in the residential mortgage division and slower loan closings due to the impacts of recent regulatory changes,” commented Steve Erb, Chief Banking Officer.
Non-Interest Expense
“Non-Interest expenses have stabilized even as the bank grows into it expanded footprint,” commented Ken Trautman, President and CEO. “The bank continues to experience strong growth in both loans and deposits in all of its branches,” commented Trautman.
Provision for Credit Losses
Strong loan growth in the first quarter has prompted a provision expense of $93 thousand in the first quarter of 2016 compared to $8 thousand in the first quarter of 2015. At the end of the first quarter the Allowance for Loan and Lease Loss Reserve to loans held for investment totaled 1.18% compared to 1.27% at the end of the first quarter 2015.
Capital Adequacy
At March 31, 2016, shareholder equity totaled $24.5 million, compared to $22.9 million at March 31, 2015. The bank’s leverage ratio was 8.95% as of March 31, 2016, compared to 10.0% at March 31, 2015. As a result of strong asset growth, the bank’s estimated total risk-based capital ratio was 13.55% as of March 31, 2016, compared to 14.94% for March 31, 2015. “These capital ratios continue to be above levels required for the bank to be considered “well-capitalized” according to regulatory standards,” commented Russ Milburn, Chief Financial Officer. Book value of the bank increased to $11.33 at March 31, 2016, compared to $11.10 at March 31, 2015.
About People’s Bank of Commerce
People’s Bank of Commerce’s stock trades on the over-the-counter market under the symbol PBCO. Additional information about the Bank is available in the investor section of the bank’s website at: www.peoplesbankofcommerce.com.
Founded in 1998, People’s Bank of Commerce is the only locally owned and managed community bank in Southern Oregon. We are proud to have built our business by developing relationships, meeting the needs of our customers through personal service and responding to their changing needs, while maintaining our commitment to quality products and service. People’s Bank of Commerce is a full service bank headquartered in Medford, Oregon with branches in Medford, Ashland, Central Point and Grants Pass. For more information, contact Brande Cowden, Marketing Officer, 541-774-7653.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as People’s Bank or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe People’s Bank’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
| People's Bank of Commerce | ||||||||||||||
| Income Statement (unaudited) | ||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||
| (dollars in thousands) | 3/31/2016 | 12/31/2015 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||
| Interest Income | ||||||||||||||
| Loans | 2,159 | 2,054 | 1,953 | 8,237 | 7,589 | |||||||||
| Investments | 215 | 191 | 133 | 723 | 445 | |||||||||
| Federal funds sold and due from banks | 19 | 14 | 15 | 62 | 71 | |||||||||
| Total Interest Income | 2,393 | 2,259 | 2,101 | 9,022 | 8,105 | |||||||||
| Interest Expense | ||||||||||||||
| Deposits | 137 | 127 | 93 | 462 | 369 | |||||||||
| Other | - | - | - | - | - | |||||||||
| Total Interest Expense | 137 | 127 | 93 | 462 | 369 | |||||||||
| Net Interest Income | 2,256 | 2,132 | 2,008 | 8,560 | 7,736 | |||||||||
| Provision for Credit Losses | 93 | - | 8 | 162 | 98 | |||||||||
| Net Interest Income after provision | 2,163 | 2,132 | 2,000 | 8,398 | 7,638 | |||||||||
| for credit losses | ||||||||||||||
| Non-Interest Income | ||||||||||||||
| Service charges on deposit accounts | 63 | 65 | 65 | 270 | 252 | |||||||||
| Mortgage lending income | 118 | 134 | 277 | 807 | 999 | |||||||||
| Gain (loss) on other real estate | - | (111) | - | (120) | - | |||||||||
| Other non-interest income | 149 | 153 | 188 | 743 | 669 | |||||||||
| Total non-interest income | 330 | 241 | 530 | 1,700 | 1,920 | |||||||||
| Non-Interest Expense | ||||||||||||||
| Salary and benefits | 1,228 | 1,236 | 1,281 | 4,893 | 4,659 | |||||||||
| Premises and fixed assets | 313 | 313 | 256 | 1,179 | 1,023 | |||||||||
| Other | 534 | 545 | 515 | 2,170 | 1,925 | |||||||||
| Total non-interest expense | 2,075 | 2,094 | 2,052 | 8,242 | 7,607 | |||||||||
| Net income before taxes | 418 | 279 | 478 | 1,856 | 1,951 | |||||||||
| Income taxes | 120 | 55 | 143 | 488 | 587 | |||||||||
| Net income | 298 | 224 | 335 | 1,368 | 1,364 | |||||||||
| Basic Earnings per share * | 0.14 | 0.10 | 0.17 | 0.63 | 0.64 | |||||||||
| Diluted Earnings per share * | 0.14 | 0.10 | 0.17 | 0.63 | 0.62 | |||||||||
| Average common shares outstanding * | 2,165,873 | 2,166,159 | 1,996,844 | 2,166,098 | 2,144,704 | |||||||||
| Performance Measures | ||||||||||||||
| Return on average assets | 0.47% | 0.37% | 0.61% | 0.59% | 0.64% | |||||||||
| Return on average equity | 4.88% | 3.75% | 5.95% | 5.86% | 6.01% | |||||||||
| Net interest margin | 3.81% | 3.76% | 4.11% | 3.95% | 4.29% | |||||||||
| Efficiency ratio | 80.24% | 88.24% | 80.85% | 80.33% | 78.78% | |||||||||
| * adjusted for 5% stock dividends in March and August 2015 | ||||||||||||||
| People's Bank of Commerce | ||||||||||||
| Balance Sheet (unaudited) | ||||||||||||
| (dollars in thousands) | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | |||||||
| Assets | ||||||||||||
| Cash and due from banks | 11,645 | 11,498 | 12,113 | 13,620 | 15,201 | |||||||
| Federal funds sold | - | - | - | - | - | |||||||
| Interest-bearing deposits | 25,365 | 13,950 | 12,445 | 6,965 | 13,300 | |||||||
| Investment securities | 41,020 | 44,927 | 35,520 | 33,228 | 30,669 | |||||||
| Loans held for sale | 716 | 2,393 | 1,458 | 2,905 | 1,535 | |||||||
| Loans held for investment, | 174,728 | 160,341 | 155,154 | 149,922 | 149,331 | |||||||
| net of unearned income | ||||||||||||
| Allowance for loan and lease losses | (2,058) | (1,964) | (1,957) | (1,887) | (1,895) | |||||||
| Loans, Net | 172,670 | 158,377 | 153,197 | 148,035 | 147,436 | |||||||
| Premises and equipment, net | 5,854 | 5,128 | 4,520 | 4,064 | 4,013 | |||||||
| Other assets | 13,813 | 13,786 | 13,675 | 13,689 | 13,555 | |||||||
| Total assets | 271,083 | 250,059 | 232,928 | 222,506 | 225,709 | |||||||
| Liabilities | ||||||||||||
| Deposits | ||||||||||||
| Demand noninterest-bearing | 87,079 | 86,745 | 82,237 | 86,039 | 76,158 | |||||||
| Demand interest-bearing | 18,421 | 18,498 | 15,789 | 12,627 | 16,300 | |||||||
| Money market and savings | 115,295 | 94,619 | 87,060 | 82,134 | 91,340 | |||||||
| Time deposits of less than $100,000 | 12,369 | 12,515 | 12,142 | 7,564 | 8,021 | |||||||
| Time deposits of more than $100,000 | 11,715 | 12,093 | 10,262 | 9,322 | 9,443 | |||||||
| Total Deposits | 244,879 | 224,470 | 207,490 | 197,686 | 201,262 | |||||||
| Other liabilities | 1,676 | 1,562 | 1,703 | 1,597 | 1,547 | |||||||
| Total liabilities | 246,555 | 226,032 | 209,192 | 199,284 | 202,809 | |||||||
| Shareholders' Equity | ||||||||||||
| Common Stock, surplus, retained earnings | 24,258 | 23,956 | 23,515 | 23,046 | 22,672 | |||||||
| Accumulated other comprehensive | 270 | 71 | 221 | 176 | 228 | |||||||
| income (loss) | ||||||||||||
| Total shareholders' equity | 24,528 | 24,027 | 23,736 | 23,222 | 22,900 | |||||||
| Total Liabilities and Equity | 271,083 | 250,059 | 232,928 | 222,506 | 225,709 | |||||||