People’s Bank of Commerce (OTCBB: PBCO) today reported earnings
of $676,000 for the first nine months of 2012, up 114% over the
$315,000 for the same period last year. This resulted in earnings
of $0.57 per share for the first nine months of 2012, compared to
$0.27 per share reported the prior year. Net interest income was up
by 16% year-to-date, the result of strong loan growth during 2012.
The Bank is also excited to report the opening of its Barnett Road
branch in mid-November 2012.
“The first nine months of 2012 produced the best net profit
we’ve had in the past five years and marks the Bank’s 13th
consecutive quarter of profitability since the recession hit,” said
Ken Trautman, president and CEO of People’s Bank.
“Strong loan and deposit growth continues in excess of 14%, as
local businesses refinance with People’s Bank to take advantage of
the extremely low long-term rates. The bank’s excellent profit, due
in large part to its tremendous development in commercial lending,
showcases its commitment to lend local deposits to local
businesses,” added Trautman.
Earnings for the third quarter of 2012 were $252,000, compared
to $155,000 for the same period in 2011, an increase of 62%. The
Bank reported earnings of $0.21 per share for the three months
ending September 30, 2012, compared to $0.13 per share in 2011.
Mortgage lending income for the current three month period was
$413,000, up 185% over the same period last year. Non-interest
income was also 36% higher during the third quarter of 2012,
compared to the third quarter of 2011. Non-interest expenses showed
an increase of 19% over the same period last year, due primarily to
salaries of added personnel to support the Bank’s strong
growth.
For the first three quarters, non-interest income was up 50%,
compared to 2011, primarily due to the increase in mortgage lending
activity, reflective of the improved local residential real estate
market. Non-interest expense for the nine month period ending
September 30, 2012 was up 14% over the prior year.
“It is very satisfying to report significant mortgage lending
income, which reflects an energized local residential real estate
market,” said Trautman. “This is in stark contrast to last year’s
report of ‘reduced mortgage lending income, reflective of a slow
residential real estate market.’”
The Bank’s loan quality continues to excel with non-current
loans to total loans at 0.09% as of September 30, 2012, down from
0.27% last year. Non-performing assets to total assets compares
loans past due 90 days and more, loans on non-accrual and other
real estate owned to total assets. This ratio was 1.39% as of
September 30, 2012, compared to 2.44% at the end of September 2011.
Reserves totaled 1.62% of total loans at the end of the third
quarter 2012, compared to 1.61% one year ago. The loan loss
provision totaled $242,000 for the first nine months of 2012,
compared to $258,000 for the first nine months of 2011.
People's Bank reported total assets of $137 million at the end
of September 2012, up 16% from the prior year. The Bank has total
shareholders’ equity of $14.4 million and a book value of $12.04
per share. Tier one capital to average assets remains strong at
10.3%, considerably above regulatory guidelines for a
well-capitalized bank. The Bank’s stock trades on the
over-the-counter market under the symbol PBCO.
2012
2011
Quarter ended
September 30:
Net interest income $ 1,437,000 $ 1,245,000 Provision for Loan
Losses 114,000 163,000 Noninterest income 699,000 514,000
Noninterest expense 1,646,000 1,380,000 Net income 252,000 155,000
EPS 0.21 0.13 **
Year to
Date
Net Interest income $ 4,085,000 $ 3,534,000 Provision for Loan
Losses 242,000 258,000 Noninterest income 1,792,000 1,194,000
Noninterest expense 4,637,000 4,075,000 Net income 676,000 315,000
EPS 0.57 0.27 **
At September
30:
Total Portfolio Loans $ 105,104,000 $ 92,081,000 Total Reserve for
Loan Losses 1,750,000 1,525,000 Total Deposits 120,767,000
100,141,000 Total Assets 137,060,000 118,199,000 Total
Shareholders' Equity 14,384,000 13,352,000 No. of shares
outstanding 1,194,253 1,179,262 ** Book Value, per share 12.04
11.32 ** 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.
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