MEDFORD, Ore.--(BUSINESS WIRE)--People’s Bank of Commerce (OTCBB: PBCO) announced today its financial results for the fourth quarter and 2016 operations. The bank reported net income of $520,000 or $0.22 per diluted share for the fourth quarter of 2016, compared to net income of $224,000 or $0.10 per diluted share in the same quarter of 2015. Net income for all of 2016 totaled $1,880,000 or $0.83 per diluted share compared to $1,405,000 or $0.65 per diluted share for 2015.
Highlights for the quarter and year included:
- Net loans increased $6.6 million or 3% during the fourth quarter 2016 and $38.6 million or 24% for the entire year.
- Deposits increased $1.3 million over the past 3 months and $13.7 million or 6% for the entire year.
- The bank’s total assets increased $1.3 million during the fourth quarter and $15.8 million or 6% for the entire year.
- Net interest income for 2016 totaled $9.7 million compared to $8.3 million in 2015, a 17% increase.
- Non-Interest income totaled $2.0 million in 2016 versus $1.9 million in 2015, a 3% increase.
- Non-interest expense totaled $8.6 million in 2016 compared to $8.2 million in 2015, a 4% increase.
- The bank’s year-to-date efficiency ratio was 73.25% in 2016 and 80.48% in 2015.
- ROAE was 7.46% in 2016, 6.08% in 2015.
- ROAA was 0.71% in 2016, 0.62% in 2015.
- Diluted EPS was $0.83 in 2016, $0.65 in 2015.
- One loan for $70 thousand was on non-accrual at the end of 2016. Total loans past due or on non-accrual as a percent of total loans were 0.04% in 2016 and 0.39% at the end of 2015.
Balance Sheet
“Strong loan growth experienced early in 2016 continued throughout the year and resulted in 24% growth at year-end 2016 when compared to year-end 2015. As stated in previous reports, this is the result of continuing improvement in our local economy and the benefit of being the only locally owned commercial bank in our markets,” noted Ken Trautman, bank President and CEO. “Strong loan growth provides the interest income that fuels bottom line net income, with net interest income accounting for 83% of revenue. All sources of income for the year ended 2016 totaled $11.7 million, up 14.3% over 2015. Total non-interest expense for 2016 of $8.6 million was 3% over 2015’s total of $8.2 million, driving the continued improvement in our efficiency ratio to 73.25% at year-end 2016 compared to 80.48% at year-end 2015.”
Provision for Credit Losses
Continued strong loan growth prompted a provision expense of $366 thousand in 2016 compared to $77 thousand in 2015. At year-end 2016 the allowance for loan and lease losses totaled 1.18% of loans held for investment compared to 1.22% at the end of 2015. No loans were charged off in 2016.
Capital
At December 31, 2016, shareholder equity totaled $26.1 million, compared to $24.0 million at December 31, 2015. The bank’s leverage ratio was 9.8% at year-end 2016, compared to 9.6% at December 31, 2015. As a result of strong loan growth, the bank’s estimated total risk-based capital ratio was 13.23% as of the end of 2016, compared to 14.15% for 2015. Book value per share increased to $11.44 at December 31, 2016, compared to $10.56 one year earlier.
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. People’s Bank of Commerce is a full service bank headquartered in Medford, Oregon with branches in Medford, Ashland, Central Point and Grants Pass.
"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) | 12/31/2016 | 9/30/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | |||||||||||||||
Interest Income | ||||||||||||||||||||
Loans | 2,479 | 2,388 | 2,054 | 9,324 | 8,032 | |||||||||||||||
Investments | 199 | 193 | 191 | 811 | 641 | |||||||||||||||
Federal funds sold and due from banks | 8 | 18 | 14 | 67 | 57 | |||||||||||||||
Total Interest Income | 2,686 | 2,599 | 2,259 | 10,202 | 8,730 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 102 | 110 | 127 | 479 | 418 | |||||||||||||||
Other | - | - | - | - | - | |||||||||||||||
Total Interest Expense | 102 | 110 | 127 | 479 | 418 | |||||||||||||||
Net Interest Income | 2,584 | 2,489 | 2,132 | 9,723 | 8,312 | |||||||||||||||
Provision for Credit Losses | 36 | 103 | - | 366 | 77 | |||||||||||||||
Net Interest Income after provision for credit losses |
2,548 | 2,386 | 2,132 | 9,357 | 8,235 | |||||||||||||||
Non-Interest Income | ||||||||||||||||||||
Service charges on deposit accounts | 68 | 74 | 64 | 275 | 272 | |||||||||||||||
Mortgage lending income | 247 | 217 | 134 | 770 | 966 | |||||||||||||||
Gain (loss) on other real estate | - | - | (120 | ) | ||||||||||||||||
Other non-interest income | 169 | 299 | 153 | 908 | 782 | |||||||||||||||
Total non-interest income | 484 | 590 | 351 | 1,953 | 1,900 | |||||||||||||||
Non-Interest Expense | ||||||||||||||||||||
Salary and benefits | 1,285 | 1,196 | 1,236 | 4,900 | 4,946 | |||||||||||||||
Premises and fixed assets | 344 | 334 | 313 | 1,317 | 1,122 | |||||||||||||||
Other | 613 | 569 | 655 | 2,336 | 2,151 | |||||||||||||||
Total non-interest expense | 2,242 | 2,099 | 2,204 | 8,553 | 8,219 | |||||||||||||||
Net income before taxes | 790 | 877 | 279 | 2,757 | 1,916 | |||||||||||||||
Income taxes | 270 | 263 | 55 | 877 | 511 | |||||||||||||||
Net income | 520 | 614 | 224 | 1,880 | 1,405 | |||||||||||||||
Basic Earnings per share * | 0.23 | 0.27 | 0.10 | 0.84 | 0.65 | |||||||||||||||
Diluted Earnings per share * | 0.22 | 0.27 | 0.10 | 0.83 | 0.65 | |||||||||||||||
Average common shares outstanding * | 2,279,022 | 2,279,022 | 2,274,467 | 2,240,716 | 2,160,232 | |||||||||||||||
Performance Measures | ||||||||||||||||||||
Return on average assets | 0.78 | % | 0.92 | % | 0.37 | % | 0.71 | % | 0.62 | % | ||||||||||
Return on average equity | 8.01 | % | 9.59 | % | 3.75 | % | 7.46 | % | 6.08 | % | ||||||||||
Net interest margin | 4.17 | % | 4.00 | % | 3.76 | % | 3.97 | % | 4.05 | % | ||||||||||
Efficiency ratio | 73.08 | % | 68.17 | % | 88.76 | % | 73.25 | % | 80.48 | % | ||||||||||
* adjusted for 5% stock dividend May 2016 |
People's Bank of Commerce | ||||||||||||||||||||
Balance Sheet (unaudited) | ||||||||||||||||||||
(dollars in thousands) | 12/31/2016 | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | 13,091 | 11,897 | 8,800 | 11,645 | 11,498 | |||||||||||||||
Federal funds sold |
- |
- |
- |
- | - | |||||||||||||||
Interest-bearing deposits | 1,585 | 4,510 | 11,896 | 25,365 | 13,950 | |||||||||||||||
Investment securities | 33,181 | 37,242 | 37,423 | 41,020 | 44,927 | |||||||||||||||
Loans held for sale | 294 | 615 | 473 | 716 | 2,393 | |||||||||||||||
Loans held for investment, net of unearned income |
199,337 | 192,653 | 183,018 | 174,728 | 160,341 | |||||||||||||||
Allowance for loan and lease losses | (2,342 | ) | (2,303 | ) | (2,198 | ) | (2,058 | ) | (1,964 | ) | ||||||||||
Loans, Net | 196,995 | 190,350 | 180,820 | 172,670 | 158,377 | |||||||||||||||
Premises and equipment, net | 6,970 | 6,946 | 7,034 | 5,854 | 5,128 | |||||||||||||||
Other assets | 13,783 |
|
13,000 | 13,622 | 13,813 | 13,786 | ||||||||||||||
Total assets | 265,899 | 264,560 | 260,068 | 271,083 | 250,059 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand noninterest-bearing | 97,208 | 97,223 | 89,761 | 87,079 | 86,745 | |||||||||||||||
Demand interest-bearing | 24,643 | 21,637 | 22,127 | 18,421 | 18,498 | |||||||||||||||
Money market and savings | 98,838 | 98,613 | 99,784 | 115,295 | 94,619 | |||||||||||||||
Time deposits of less than $100,000 | 8,428 | 8,550 | 10,729 | 12,369 | 12,515 | |||||||||||||||
Time deposits of more than $100,000 | 9,020 | 10,810 | 10,634 | 11,715 | 12,093 | |||||||||||||||
Total Deposits | 238,137 | 236,833 | 233,035 | 244,879 | 224,470 | |||||||||||||||
Other liabilities | 1,683 | 2,042 | 1,879 | 1,676 | 1,562 | |||||||||||||||
Total liabilities | 239,820 | 238,875 | 234,914 | 246,555 | 226,032 | |||||||||||||||
Shareholders' Equity | ||||||||||||||||||||
Common Stock, surplus, retained earnings | 26,050 | 25,359 | 24,745 | 24,258 | 23,956 | |||||||||||||||
Accumulated other comprehensive income (loss) |
29 | 326 | 409 | 270 | 71 | |||||||||||||||
Total shareholders' equity | 26,079 | 25,685 | 25,154 | 24,528 | 24,027 | |||||||||||||||
Total Liabilities and Equity | 265,899 | 264,560 | 260,068 | 271,083 | 250,059 |