PBCO PBCO Financial Corporation (PK)

People’s Bank of Commerce (OTCBB:PBCO) today reported earnings of $424,000 for the first six months of 2012 showing strong improvement over the $160,000 for the same period last year. The Bank reported earnings of $0.36 per share for the first six months of 2012, compared to $0.14 per share for the prior year. Net interest income was up 16% year-to-date over the prior year. “This multi-quarter trend reflects continued strong loan and deposit growth, allowing us to record our twelfth consecutive quarter of profitability," said Ken Trautman, President and CEO of People's Bank.

Earnings for the second quarter of 2012 were $196,000, up 210% over the second quarter 2011. The Bank reported earnings of $0.16 per share for the three months ending June 30, 2012, compared to $0.05 per share in 2011.

Non-interest income was up 61% during the first two quarters of 2012, compared to last year, primarily due to a 159% increase in mortgage lending income, reflective of record low mortgage rates and increased demand for the lower priced real estate. "The residential real estate market continues to be hampered by a significant number of sales coming from distressed transactions, holding prices down. Those homeowners with equity save a tremendous amount of money by refinancing into today’s rates," said Trautman. "It appears that investors are seeing real value at the lower price ranges while mid and upper-priced homes are still adjusting.” Non-interest expenses for the six month period ending June 30, 2012 were up 11% over the prior year.

The Bank increased its loans outstanding 22% during the past 12 months and deposits increased 20% during the same period. “Commercial loans are up because the Bank has been able to provide funding at extremely favorable rates to qualified borrowers," commented Russ Milburn, Chief Financial Officer. "We are seeing positive signs in the local business community as most businesses have improved efficiencies, doing more with less and exhibiting strong expense controls. We are proud to continue to serve the Bank's mission of providing needed financing to local businesses.”

The Bank’s loan quality remains high with non-current loans to total loans at June 30, 2012 of 0.01%, down from 0.61% last year. Non-performing assets to total assets at the end of June 2012 were 1.94%, compared to 2.39% one year ago. At the end of the second quarter 2012, reserves totaled 1.59% of portfolio loans, compared to 1.65% one year ago. The loan loss provision for the first six months of 2012 totaled $127,000, compared to $96,000 for the first six months of last year, consistent with the strong loan growth.

People's Bank reported total assets, at the end of June 2012, of $131.7 million, up 18% from the prior year. The Bank has total shareholders’ equity of $14.1 million and a book value of $11.81 per share. Tier one leverage capital remains strong at 10.56%. The Bank stock trades on the over-the-counter market under the symbol PBCO.

2012

 

2011

Quarter ended June 30:

Net interest income 1,356,000 1,174,000 Provision for Loan Losses 56,000 38,000 Noninterest income 519,000 306,000 Noninterest expense 1,536,000 1,393,000 Net income 196,000 63,000 EPS $0.16 $0.05 *  

Year to Date

Net Interest income 2,648,000 2,288,000 Provision for Loan Losses 127,000 96,000 Noninterest income 1,093,000 681,000 Noninterest expense 2,992,000 2,695,000 Net income 424,000 160,000 EPS $0.36 $0.14 *  

At June 30:

Total Portfolio Loans 101,734,000 83,622,000 Total Reserve for Loan Losses 1,621,000 1,380,000 Total Deposits 115,740,000 96,481,000 Total Assets 131,690,000 111,275,000 Total Shareholders' Equity 14,102,000 13,190,000 No. of shares outstanding 1,194,253 1,179,262 * Book Value, per share $11.81 $11.18 *   * Retroactively adjusted for 2012 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.