PBCO PBCO Financial Corporation (PK)

People’s Bank of Commerce (OTCBB: PBCO) reported today that its earnings for the first quarter of 2013 were $103,000, compared to $227,000 during the first quarter of 2012. The Bank reported earnings of $0.08 per share for the three months ending March 31, 2013, compared to $0.19 per share in 2012. People's Bank had a 14 percent increase in net interest income in the first quarter of 2013, when compared to the same period last year. Non-interest income was down 13 percent from the prior year during the first quarter of 2013, primarily due to a reduction in mortgage loan income.

People’s Bank increased loans by 20 percent and deposits by 23 percent when compared to the prior year, resulting in total loans of $116.5 million and total deposits of $139.1 million. The Bank reported total assets of $156.1 million at the end of March 2013, up 22 percent from a year ago. "Though income is down for the first quarter of 2013, when compared to last year, we are pleased to report fifteen consecutive quarters of profitable operations," said Ken Trautman, President and Chief Executive Officer. "The Bank's increase in non-interest expense is primarily the result of expenses associated with our new branch and corporate headquarters on Barnett Road in East Medford."

People's Bank’s quarterly average net interest margin remains higher than Oregon peer banks at 4.65 percent; down from 4.80 percent during the same period in 2012. Compared to $72,000 in 2012, the provision for loan loss expense of $88,000 in the first quarter of 2013 provided a reserve-to-total loan ratio of 1.62 percent. The increase in loan loss expense was primarily the result of strong growth in total loans. Past due and nonaccrual loans to total loans was 0.04 percent as of March 2013, compared to 0.50 percent one year ago. “We continue to be pleased with the trend of low non-current loans, which signifies the improvement in the local economy,” said Trautman.

It has long been People’s Bank’s philosophy to focus on quality growth by developing strong customer relationships, improving systems and processes, and keeping a close eye on expenses. The significant changes within the community banking landscape over the past few years makes further expansion a viable opportunity for People’s Bank. The Bank has a robust cash position, outstanding loan growth and is continually improving its credit quality. Combined with the strength of a well-trained, customer-centric staff, reliable information systems, and efficient operations, People’s Bank is well-positioned for a variety of rewarding opportunities.

At March 31, 2013, the bank had total shareholders’ equity of more than $15.1 million and a book value of $11.54 per share. The stock trades on the over-the-counter market under the symbol PBCO.

     

2013

   

2012

Quarter Ended March 31:

Net interest income 1,479,000 1,292,000 Provision for Loan Losses 88,000 72,000 Noninterest income 499,000 574,000 Noninterest expense 1,760,000 1,456,000 Net Income 103,000 227,000 EPS $ 0.08 $ 0.19 *    

At March 31:

Total Portfolio Loans 116,466,000 97,209,000 Total Reserve for Loan Losses 1,924,000 1,652,000 Total Deposits 139,076,000 112,625,000 Total Assets 156,055,000 128,347,000 Total Shareholders' Equity 15,116,000 13,873,000 Shares outstanding 1,309,307 1,253,966 * Book Value, per share $ 11.54 $ 11.06 *   *Retroactively adjusted to reflect March 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.