SOURCE: People's Bank of Commerce

April 23, 2010 09:30 ET

People's Bank Reports Strong Growth and Modest Income

MEDFORD, OR--(Marketwire - April 23, 2010) -  People's Bank of Commerce (OTCBB: PBCO) reported today that its earnings for the first quarter of 2010 were $32,000 compared to $52,000 during the first quarter of 2009. The bank reported earnings of $0.03 per share for the three months ending March 31, 2010 compared to $0.06 per share in 2009. People's Bank had a 12% increase in net interest income in the first quarter of 2010, compared to the same period last year. Non-interest income was down 27%, during the first quarter of 2010 compared to last year, primarily due to a 55% reduction in mortgage lending income, reflective of the continued sluggishness in local home sales.

The bank has increased its portfolio loans $7.7 million or 11% during the past 12 months and increased deposits $24 million or 34% during the same period. In the first quarter of 2010, portfolio loans increased $3.1 million or 4.1% over 2009, and deposits increased $7.2 million or 8.1% during the same period. People's Bank reported total assets, at the end of March 2010, of $108,765,000, up 26% from the prior year.

"These increases in loans and deposits demonstrate People's Bank's commitment to providing needed loans to local businesses," said Ken Trautman, President and CEO of People's Bank. "People's Bank is dedicated to supporting the local economy by continuing to exclusively serve the businesses and individuals in our market. Our strong capital ratios have allowed us to increase lending during a period when other financial institutions have been withdrawing from the market. Additionally, we are proud of the bank's positive earnings for the past three consecutive quarters, reflective of the bank's continued strength and healthy position in the Rogue Valley."

During the past 12 months, the bank has reduced non-current loans to 1.11% of total loans, down from 4.96% during the same period last year. Further, non-performing assets to total assets also showed significant improvement over last year; 1.71% compared to 3.83%. At the end of the first quarter 2010, reserves totaled 1.63% of total loans, compared to 1.23% of total loans one year ago. Mr. Trautman commented, "Due to the challenging economy, we've increased our reserves accordingly."

At March 31, 2010, the bank had total shareholders' equity of more than $10.9 million and a book value of $11.89 per share. The stock trades on the over-the-counter market under the symbol PBCO.

People's Bank of Commerce
Q1 2010 Earnings Release
April 21, 2010

    2010   2009
Quarter ended March 31:        
Net interest income   985,000   883,000
Provision for Loan Losses   85,200   45,000
Noninterest income   338,000   465,000
Noninterest expense   1,220,000   1,249,000
Net income   32,000   52,000
EPS   $0.03   $0.06
At March 31:        
Total Portfolio Loans   79,537,000   71,844,000
Total Reserve for Loan Losses   1,309,000   882,000
Total Deposits   96,702,000   72,166,000
Total Assets   108,765,000   86,540,000
Total Shareholders' Equity   10,909,000   11,278,000
No. of shares outstanding   917,317   910,176
Book Value, per share   $11.89   $12.39

Contact Information

  • Contact:
    Ken Trautman
    President and CEO
    (541) 774-7654