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 (www.peoplesbankofcommerce.com / 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:
2013
2012
Net interest income
$
1,572,000
$
1,356,000
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 EPS
0.20
0.16
*
Year to
Date
Net Interest income
$
3,051,000
$
2,648,000
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 EPS
0.28
0.35
*
At June
30:
Total Portfolio Loans
$
117,987,000
$
101,734,000
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
11.69
11.25
* * 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.
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