MEDFORD, Ore.--(BUSINESS WIRE)--People’s Bank of Commerce (OTCBB: PBCO) announced today it’s financial results for the second quarter and year-to-date 2016 operations. The bank reported net income of $448,000 or $0.20 per diluted share for the second quarter of 2016, compared to net income of $375,000 or $0.18 per diluted share in the same quarter of 2015. Net income through June 30, 2016 totaled $746,000 or $0.34 per share compared to $709,000 or $0.34 per share for the same period in 2015.
Highlights for the quarter included:
- Net loans increased $8.2 million during the second quarter of 2016 compared to $0.6 million during the second quarter of 2015.
- Deposits declined $11.8 million over the past 3 months compared to increasing $20.4 million during the second quarter of 2015. These deposits were a combination of temporary funds and deposits that the bank declined to pay premium rates to keep.
- The bank’s total assets declined $11.0 million during the second quarter of 2016 compared to increasing $21.0 million during the same period in 2015. The decline in assets is a direct result of the deposit withdrawals mentioned above.
- Net interest income for the second quarter of 2016 totaled $2.4 million compared to $2.1 million in the second quarter of 2015, an increase of 14%.
- Non-Interest income was $549 thousand in the second quarter of 2016 compared to $534 thousand the second quarter of 2015.
- Non-interest expense was $2.1 million in the second quarter of 2016 or 0.80% of average quarterly assets compared to $2.1 million in the second quarter of 2015 or 0.91% of average quarterly assets.
- No loans were past due 90 days or on nonaccrual at the end of the second quarter in 2016 or 2015.
- The bank’s efficiency ratio was 72.65% for the second quarter of 2016 compared to 79.02% for the second quarter of 2015.
- ROE and ROA for the second quarter of 2016 were 7.26% and 0.67%, respectively, and 6.69% and 0.67%, respectively, for the second quarter of 2015.
“As noted above, deposits and total assets have decreased in the current quarter, a reversal of several previous quarters,” Ken Trautman, President and CEO of People’s Bank explained. “The bank has made a strategic decision to increase net interest income and improve efficiency by increasing its loans while letting higher cost deposits decline.”
Provision for Credit Losses
Continued strong loan growth has prompted a provision expense of $134 thousand in the second quarter of 2016 compared to no provision in the second quarter of 2015. At the end of the second quarter of 2016 the Allowance for Loan and Lease Losses to Loans Held for Investment totaled 1.20% compared to 1.26% at the end of the second quarter 2015.
At June 30, 2016, shareholder equity totaled $25.2 million, compared to $23.2 million at June 30, 2015. The bank’s leverage ratio was 9.5% as of June 30, 2016, compared to 10.4% at June 30, 2015. As a result of strong loan growth, the bank’s estimated total risk-based capital ratio was 13.48% as of June 30, 2016, compared to 15.23% for June 30, 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 per share increased to $11.04 at June 30, 2016, compared to $10.72 at June 30, 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)||6/30/2016||3/31/2016||6/30/2015||6/30/2016||6/30/2015|
|Federal funds sold and due from banks||23||19||15||69||69|
|Total Interest Income||2,524||2,393||2,163||9,384||8,384|
|Total Interest Expense||130||137||94||498||374|
|Net Interest Income||2,394||2,256||2,069||8,886||8,010|
|Provision for Credit Losses||134||93||-||296||107|
Net Interest Income after provision for credit losses
|Service charges on deposit accounts||70||63||70||270||259|
|Mortgage lending income||189||118||312||684||1,095|
|Gain (loss) on other real estate||-||-||-||(111)||(9)|
|Other non-interest income||290||149||152||993||632|
|Total non-interest income||549||330||534||1,836||1,977|
|Salary and benefits||1,189||1,228||1,245||4,836||4,803|
|Premises and fixed assets||328||313||263||1,244||1,034|
|Total non-interest expense||2,138||2,075||2,056||8,444||7,881|
|Net income before taxes||671||418||547||1,982||1,999|
Basic Earnings per share*
Diluted Earnings per share*
Average common shares outstanding*
|Return on average assets||0.67%||0.47%||0.67%||0.59%||0.65%|
|Return on average equity||7.26%||4.88%||6.69%||5.96%||6.29%|
|Net interest margin||3.90%||3.81%||4.22%||3.87%||4.25%|
|* adjusted for 5% stock dividends in March 2016, August 2015 & May 2016|
|People's Bank of Commerce|
|Balance Sheet (unaudited)|
|(dollars in thousands)||6/30/2016||3/31/2016||12/31/2015||9/30/2015||6/30/2015|
|Cash and due from banks||8,800||11,645||11,498||12,113||13,620|
|Federal funds sold||-||-||-||-||-|
|Loans held for sale||473||716||2,393||1,458||2,905|
Loans held for investment, net of unearned income
|Allowance for loan and lease losses||(2,198)||(2,058)||(1,964)||(1,957)||(1,887)|
|Premises and equipment, net||7,034||5,854||5,128||4,520||4,064|
|Money market and savings||99,784||115,295||94,619||87,060||82,134|
|Time deposits of less than $100,000||10,729||12,369||12,515||12,142||7,564|
|Time deposits of more than $100,000||10,634||11,715||12,093||10,262||9,322|
|Common Stock, surplus, retained earnings||24,745||24,258||23,956||23,515||23,046|
Accumulated other comprehensive income (loss)
|Total shareholders' equity||25,154||24,528||24,027||23,736||23,222|
|Total Liabilities and Equity||260,068||271,083||250,059||232,928||222,506|