People's Bank Reports Solid 3rd Quarter Earnings
October 15 2010 - 8:34PM
People's Bank of Commerce (OTCBB:PBCO) today reported strong
earnings for the third quarter of 2010 of $162,000, a 172% increase
over the $59,000 reported in the previous quarter. These earnings
are also significantly above the $48,000 reported in the same
quarter of 2009. The Bank reported earnings of $0.18 per share
for the three months ended September 30, 2010 compared to $0.05 per
share in 2009.
Through the first nine months of 2010, People's Bank had a
profit of $253,000, compared to a net loss of $434,000 for the same
period in 2009. On a per share basis, a profit of $0.28 per
share in 2010 is compared to a loss of $0.48 in 2009. Year to date,
2010 results benefited by a 73% increase in net interest income
primarily the result of a reduced need to fund the loan loss
reserve. During 2010, the Bank made additions to its loan
loss reserve totaling $290,000, compared to $1,110,000 the same
period in 2009. It increased its reserve ratio from 1.62% of
portfolio loans in 2009 to 1.86% of portfolio loans this
year.
"The large increase in third quarter earnings demonstrates the
bank's commitment to providing needed loans to local businesses and
home owners," explained Ken Trautman, People's Bank President and
CEO. Year to date the bank increased total loans by 8% while total
assets increased to $104 million. This 1% increase in total assets
over the prior year reflects the change in the deposit mix; High
cost certificates of deposits were reduced by 14.5% while checking,
savings and money market balances increased by 12%. The quarter
ending September 30, 2010 is the fifth consecutive quarter of
positive earnings for the Bank with each successive quarter showing
sizable improvement over the previous quarter.
Trautman explained, "The Bank has made a conscious effort to
control expenses. We reduced salary expense by 7% and interest
expense by 15% which offset a 30% (year-to-date) reduction in
mortgage lending income. The first six months of 2009 had
especially strong mortgage income when compared with the first six
months of 2010."
Net interest income after loan loss provision was up 16% in the
third quarter of 2010, with the net interest margin at 4.69%
compared to 4.41% in the third quarter of 2009. "Improving
loan quality has resulted in a reduced need for loan loss
provisions, which is a key component in our improved
profitability," Trautman noted. Non-interest income was up 9%
for the third quarter of 2010 compared to the same period in 2009,
primarily a reflection of the outstanding performance of our
residential lending department, which showed a 20% increase in home
lending activity during the quarter.
The Bank has total shareholders' equity of over $11.2 million
and a book value of $12.24 per share. People's Bank has a Tier One
Capital ratio of 10.46% which exceeds the Federal Regulators'
definition of a well capitalized bank. The stock trades in the OTC
Bulletin Board market under the symbol PBCO.
|
|
|
2010 |
|
|
2009 |
|
|
|
|
|
|
|
|
|
|
Quarter ended September 30: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
162,000 |
|
$ |
48,000 |
|
|
EPS |
|
0.18 |
|
|
0.05 |
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
59,000 |
|
$ |
(513,000) |
|
|
EPS |
|
0.07 |
|
|
(0.58) |
|
|
|
|
|
|
|
|
|
|
Nine months end September 30: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
253,000 |
|
$ |
(434,000) |
|
|
EPS |
|
0.28 |
|
|
(0.48) |
|
|
|
|
|
|
|
|
|
|
At September 30: |
|
|
|
|
|
|
|
Total Portfolio Loans |
$ |
80,731,000 |
|
$ |
74,886,000 |
|
|
Total Reserve for Loan Losses |
|
1,499,000 |
|
|
1,215,000 |
|
|
Total Deposits |
|
91,800.000 |
|
|
91,374,000 |
|
|
Total Assets |
|
104,177,000 |
|
|
103,402,000 |
|
|
Total Shareholders' Equity |
|
11,227,000 |
|
|
10,844,000 |
|
|
No. of shares outstanding |
|
917,317 |
|
|
910,176 |
|
|
Book Value, per share |
|
12.24 |
|
|
11.91 |
|
|
|
|
|
|
|
|
|
|
At June 30: |
|
|
|
|
|
|
|
Total Portfolio Loans |
$ |
81,463,000 |
|
$ |
73,021,000 |
|
|
Total Reserve for Loan Losses |
|
1,487,000 |
|
|
1,209,000 |
|
|
Total Deposits |
|
91,858,000 |
|
|
84,966,000 |
|
|
Total Assets |
|
104,063,000 |
|
|
96,909,000 |
|
|
Total Shareholders' Equity |
|
11,004,000 |
|
|
10,736,000 |
|
|
No. of shares outstanding |
|
917,317 |
|
|
910,176 |
|
|
Book Value, per share |
|
12.00 |
|
|
11.80 |
|
CONTACT: People's Bank of Commerce
Ken Trautman, President and CEO
(541) 774-7654
PBCO Financial (PK) (USOTC:PBCO)
Historical Stock Chart
From Jul 2024 to Jul 2024
PBCO Financial (PK) (USOTC:PBCO)
Historical Stock Chart
From Jul 2023 to Jul 2024