People's Bank Reports Second Quarter Earnings Up 32%

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People's Bank Reports Second Quarter Earnings Up 32%

MEDFORD, Ore.--(BUSINESS WIRE)-- People's Bank of Commerce (OTCBB:PBCO) today reported earnings of $362,000 for the first six months of 2013 compared to $424,000 for the same period last year. The Bank reported earnings of $0.28 per share for the first six months of 2013, compared to $0.35 per share for the prior year. Net interest income was up 15% year-to-date over the prior year. "The Bank has experienced strong loan and deposit growth for the past 10 quarters and the continued growth in net interest income has followed," said Ken Trautman, President and CEO of People's Bank.

Earnings for the second quarter of 2013 were $259,000, up 32% over the second quarter 2012. The Bank reported earnings of $0.20 per share for the three months ending June 30, 2013, compared to $0.16 per share in 2012. Non-interest income in the second quarter was up 16% over the same period last year primarily the result of increases in mortgage lending income and loan fees.

"Favorable interest rates in 2012 allowed for significant residential refinance activity that year. During the first quarter of 2013 activity slowed, but refinance as well as purchase activity rebounded in the second quarter," continued Trautman. Non-interest expenses for the six month period ending June 30, 2013 were up 18% over the prior year. The increase was driven by the Bank moving into its new headquarters building in the fourth quarter of 2012 and increasing staff to accommodate deposit and loan growth.

The Bank increased its loans outstanding 16% during the past 12 months and deposits increased 24% during the same period. "Commercial loans outstanding have continued to increase as the Bank has been able to provide funding at extremely favorable rates to qualified borrowers," commented Russ Milburn, Chief Financial Officer. "The southern Oregon economy is improving as we see the unemployment rate go down and local commercial building projects continue. As this improvement continues, the Bank is positioned to provide needed financing to local businesses."

The Bank's loan quality remains high with non-current loans to total loans at June 30, 2013 of 0.04%, compared to 0.01% last year. Non-performing assets to total assets at the end of June 2013 were 0.64%, compared to 1.94% one year ago. At the end of the second quarter 2013 and 2012, reserves totaled 1.61% and 1.59%, respectively, of portfolio loans. The loan loss provision for the first six months of 2013 totaled $88,000, compared to $127,000 for the first six months of last year, reflective of improving loan quality.

People's Bank reported total assets, at the end of June 2013, of $161 million. With asset growth of 22% in the last 12 months, coupled with strong growth the prior two years, continued expansion will require additional capital. Peoples Bank is offering up to 500,000 new shares of common stock at $10.00 per share to support anticipated future growth. Those interested in participating in this stock offering are encouraged to review offering documents on the Bank's website ( / Investor Relations / Financial Documents / 2013 Capital Offering) or contact the Bank directly. The Bank has total shareholders' equity of $15.4 million and a book value of $11.69 per share. Tier one leverage capital remains strong at 9.5%. The Bank stock trades on the over-the-counter market under the symbol PBCO.


Quarter ended June 30:





Net interest income





Provision for Loan Losses 0 56,000
Noninterest income 600,000 519,000
Noninterest expense 1,779,000 1,536,000
Net income 259,000 196,000




Year to Date

Net Interest income





Provision for Loan Losses 88,000 127,000
Noninterest income 1,099,000 1,093,000
Noninterest expense 3,538,000 2,992,000
Net income 362,000 424,000




At June 30:

Total Portfolio Loans





Total Reserve for Loan Losses 1,904,000 1,621,000
Total Deposits 143,512,000 115,740,000
Total Assets 160,973,000 131,690,000
Total Shareholders' Equity 15,408,000 14,102,000
No. of shares outstanding 1,318,250 1,253,966 *
Book Value, per share



* Retroactively adjusted for 2013 stock dividend

"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.

This release does not constitute an offer to sell securities or a solicitation for an offer to buy securities. The offering will be made solely by subscriptions and conducted exclusively under the terms contained in the Offering Circular. The securities being offered are not bank deposits and are not insured by the Federal Deposit Insurance Corporation.

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

KEYWORDS:   United States  North America  Oregon


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