People’s Bank Reports 35% Increase in Earnings

MEDFORD, Ore.--()--People’s Bank of Commerce (OTCBB:PBCO) today reported earnings of $1,181,000 for the first nine months of 2015, up 35% compared to $874,000 for the same period last year. This resulted in earnings of $0.57 per share for the first nine months of 2015, compared to $0.44 per share reported the prior year. Net interest income was up by 14% year-to-date, the result of continued loan growth during 2015. Portfolio loan and deposit growth in the past 12 months continues in excess of 11% and 12%, respectively. “In addition to improving economic conditions, consolidation and merger activities of larger banks have led to more commercial loan opportunities for People’s Bank,” said John Boyd, Chief Credit Officer.

Earnings for the third quarter of 2015 were $472,000, compared to $367,000 for the same period in 2014, an increase of 29%. The Bank reported earnings of $0.22 per share for the three months ending September 30, 2015, compared to $0.17 per share in 2014. Mortgage lending income in the third quarter was up by 8% compared to the same period in the prior year.

“The Bank’s loan quality remains excellent with no non-current loans, as of September 30, 2015 and 2014,” 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 1.45% as of September 30, 2015, compared to 0.78% at the end of September 2014. Other Real Estate Owned increased in 2015 as the bank took back development land in Central Point, Oregon. “This multifamily parcel is in escrow and should go off the books early next year,” commented Russ Milburn, Chief Financial Officer. Reserves totaled 1.25% of total loans at the end of the third quarter 2015, compared to 1.21% one year ago.

People's Bank reported total assets of $233 million at the end of September 2015, up 11% from the prior year. The Bank has total shareholders’ equity of $23.7 million, up 8% in the past year, and a book value of $10.96 per share. “Total shareholder return has exceeded many indices as a result of two stock dividends and price appreciation this calendar year,” commented Trautman. Tier one capital to assets remains strong at 10.1%. The Bank’s stock trades on the over-the-counter market under the symbol PBCO.




Quarter ended September 30:

Net interest income $ 2,103,000 $


Provision for Loan Losses 69,000 0
Noninterest income 796,000 523,000
Noninterest expense 2,217,000 1,979,000
Net income 472,000 367,000
EPS 0.22 0.17



Year to Date

Net Interest income $ 6,180,000 $ 5,415,000
Provision for Loan Losses 77,000


Noninterest income 2,018,000 1,606,000
Noninterest expense 6,484,000 5,879,000
Net income 1,181,000 874,000
EPS 0.57 0.44



At September 30:

Total Portfolio Loans $ 155,154,000 $ 140,030,000
Total Reserve for Loan Losses 1,957,000 1,725,000
Total Deposits 207,489,000 185,681,000
Total Assets 232,928,000 209,547,000
Total Shareholders' Equity 23,736,000 22,020,000
No. of shares outstanding 2,166,004 2,135,244


Book Value, per share 10.96 10.31



* Retroactively adjusted for 2015 stock dividends


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


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