PBCO PBCO Financial Corporation (PK)

People’s Bank of Commerce (OTCBB:PBCO) reported earnings for the year ended December 31, 2014, were $1,196,000 or $0.63 per share, compared to earnings of $1,012,000 or $0.65 per share during 2013. “Earnings in 2013 were buoyed by a onetime, Other Real Estate Owned (ORE), accounting methodology change that increased earnings by $126,000 or 0.08 cents per share. Prior to the adjustment, shareholders earned 0.57 per share during 2013. It is important to recall that the average number of outstanding shares increased by 23% in 2014 versus 2013. This increase was the result of a successful capital offering to accommodate growth,” said Ken Trautman, President and CEO.

Fourth quarter earnings for 2014 were $323,000 or $0.17 per share, compared to $427,000 or $0.22 per share for the same quarter in 2013. “Without the onetime ORE accounting change, fourth quarter 2013 earnings were $301,000 or 0.16 cents per share,” said Ken Trautman. Net interest income for the fourth quarter of 2014 was up 16 percent, when compared to the same quarter in the prior year, due to strong loan growth. Mortgage income in the fourth quarter of 2014 was up 43% over the prior year’s quarter.

Net interest income for 2014 of $7.4 million was up 16 percent from $6.4 million in 2013. At December 31, 2014, the Bank reported an 18 percent increase in total assets to $214.7 million, a 20 percent increase in deposits to $190.6 million, and a 17 percent increase in portfolio loans to $147.4 million, when compared to the prior year.

Non-interest expenses were up 9 percent in 2014, (down from the 14% increase in 2013) primarily the result of staff increases needed to facilitate the asset growth achieved over the last few years. Non-interest income for the current year was down 8% from the last year, the direct result of the onetime accounting change in 2013.

The provision for loan loss expense of $25,000 in 2014, compared to $57,000 in 2013, resulted in reserves to total portfolio loans of 1.24 percent, compared to 1.56 percent in 2013.

The bank had no non-current loans (past due 90 days or more or non-accruing) at December 31, 2014 and December 31, 2013. Non-performing assets to total loans, a ratio that adds other real estate owned to non-performing loans, was 2.29 percent at December 31, 2014, compared to 1.34 percent at year-end 2013.

“With good loan quality and double digit growth in loans and deposits, bank profitability continues to show increases year over year. With banking service disruptions due to mergers still prevalent in southern Oregon, People’s Bank has positioned itself to provide high quality banking services to individuals and businesses in the region looking for the local alternative. Capital is strong at 10.4 percent, which allows the Bank the opportunity of continued growth,” commented Trautman.

People’s Bank of Commerce is locally headquartered at its Barnett Road branch in Medford, Oregon. It has other branch locations in Medford, Ashland, Grants Pass, and Central Point, Oregon.

People’s Bank has total shareholders’ equity of $22.5 million and a book value of $11.47 per share. The stock trades in the over-the-counter market under the symbol "PBCO."

 

At December 31:

    2014 2013 Total Loans, excl. loans held for sale $ 147,416,000 $ 125,674,000 Reserve for Loan Losses 1,834,000 1,961,000 Total Deposits 190,568,000 158,267,000 Total Shareholder’s Equity 22,518,000 21,061,000 Total Assets 214,678,000 181,349,000 Shares outstanding 1,962,869 1,936,572 *  

Year ended December 31:

  Net interest income $ 7,398,000 $ 6,377,000 Provision (credit) for loan losses 25,000 57,000 Mortgage revenue 854,000 910,000 Net income (loss) 1,196,000 1,012,000 Earnings (loss) per share 0.63 0.65 * Average shares outstanding 1,907,596 1,549,387 *    

Quarter ended December 31:

  Net interest income $ 1,982,000 $ 1,702,000 Provision (credit) for loan losses 99,000 (97,000) Mortgage revenue 282,000 198,000 Net income 323,000 427,000 Earnings per share 0.17 0.22 * Average shares outstanding 1,945,442 1,918,422 *    

Quarter ended September 30:

  Net interest income $ 1,951,000 $ 1,623,000 Provision (credit) for loan losses 0 66,000 Mortgage revenue 225,000 203,000 Net income 367,000 223,000 Earnings per share 0.19 0.13 * Average shares outstanding 1,936,729 1,674,971 *   * Retroactively adjusted for 2014 stock dividend  

People’s Bank of CommerceKen Trautman, 541-774-7654President and CEO