SOURCE: People's Bank of Commerce

February 15, 2011 09:30 ET

People's Bank Continues Positive Earnings

MEDFORD, OR--(Marketwire - February 15, 2011) - People's Bank of Commerce (OTCBB: PBCO) reported quarterly earnings of $110,000, or $0.11 per share, for the fourth quarter of 2010 compared to $48,000, or $0.05 per share, for the same quarter in 2009. At December 31, 2010, the Bank reported a 6 percent increase in portfolio loans to $80.9 million, a 4 percent increase in total assets to $105.7 million, and a 3 percent increase in deposits to $91.8 million, when compared to the prior year.

Earnings for the year ended December 31, 2010, were $363,000, or $0.39 per share, compared to a loss of $386,000, or $0.42 per share, during 2009. 

Net interest margin for the fourth quarter of 2010 continued to improve to 4.69 percent compared to 4.40 percent during the same period in 2009. Net interest income for the fourth quarter of 2010 was up 9 percent when compared to the same quarter in the prior year due to lower deposit interest expense. The result was that net interest income of $3.9 million, after the loan loss provision, for the entire year 2010 was up 52 percent from the $2.6 million in 2009. 

The provision for loan loss expense of $251,000 in 2010 compared to an expense of $1,139,000 in 2009 resulted in reserves to total loans of 1.76 percent compared to 1.56 percent in 2009. "This significant reduction in provision expense reflects the improved loan quality that resulted from early recognition of troubled assets and responsive collection practices on problem loans," commented Ken Trautman, Bank President and CEO. The Bank experienced net loan charge offs of $43,000 in 2010 compared to $754,000 in 2009. Non-performing loans (past due 90 days or more or non-accruing) at December 31, 2010 were 1.53 percent of total loans compared to 0.96 percent in 2009.

"The Bank recently completed a successful capital offering, raising over $1.5 million in additional capital to support loan growth," commented Trautman. "We continue to be encouraged by the positive trend in profits and are very pleased with the quality commercial loan growth and noninterest expense control during 2010. Additionally, we are proud of our solid capital position, which allows us the unique opportunity to continue to lend money to local businesses and residents."

People's Bank of Commerce is locally headquartered at its main branch in Medford, Oregon and has branches in Ashland and Central Point, Oregon.

People's Bank has total shareholders' equity of $12.4 million and a book value of $11.85 per share. The stock trades in the over-the-counter market under the symbol "PBCO."

At December 31:                
      2010       2009  
Total Loans, excl. loans held for sale   $ 80,901,000     $ 76,392,000  
Reserve for Loan Losses     1,430,000       1,222,000  
Total Deposits     91,847,000       89,474,000  
Total Shareholder's Equity     12,427,000       10,874,000  
Total Assets     105,745,000       101,486,000  
Shares outstanding     1,048,852       917,317  
                 
Year ended December 31:                
                 
Net interest income   $ 4,159,000     $ 3,705,000  
Provision (credit) for loan losses     251,000       1,139,000  
Mortgage revenue     752,000       1,059,000  
Net income (loss)     363,000       (386,000 )
Earnings (loss) per share     0.39       (0.42 )
Average shares outstanding     930,584       910,774  
                 
                 
Quarter ended December 31:                
                 
Net interest income   $ 1,066,000     $ 976,000  
Provision (credit) for loan losses     (39,400 )     28,000  
Mortgage revenue     140,000       181,000  
Net income     110,000       48,000  
Earnings per share     0.11       0.05  
Average shares outstanding     970,385       912,540  
                 
                 
                 
Quarter ended September 30:                
                 
Net interest income   $ 1,075,000     $ 944,000  
Provision (credit) for loan losses     66,000       71,000  
Mortgage revenue     296,000       246,000  
Net income     162,000       48,000  
Earnings per share     0.18       0.05  
Average shares outstanding     917,317       910,176  

Contact Information

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