People’s Bank Reports 40% Increase in Earnings

MEDFORD, Ore.--(BUSINESS WIRE)-- People’s Bank of Commerce (OTCBB: PBCO) today reported earnings of $709,000 for the first six months of 2015, compared to $507,000 for the same period last year. The bank reported earnings of $0.35 per share for the first six months of 2015, compared to $0.26 per share the prior year. Net interest income was up 18% year-to-date over the prior year. “Over the last year, both loans and deposits are up 10%," said Ken Trautman, President and CEO of People's Bank. “Our loan pipeline remains strong and our mortgage production continues to outpace last year, both of which are contributing to the strong earnings growth reported above," said Trautman.

Earnings for the second quarter of 2015 were $375,000, up 23% over the second quarter 2014. The bank reported earnings of $0.18 per share for the three months ending June 30, 2015, compared to $0.15 per share in 2014. Net interest income was up 15% in the second quarter over the same period last year. Mortgage income in the second quarter totaled $312,000, up 45% over the same period last year. “Our mortgage division has benefited greatly by today’s low loan rates and the desire of many home owners and purchasers to lock in these historically low rates before rates increase,” commented Trautman.

Non-interest income for the first six months of 2015 was up 13% when compared to the same period last year. For the same period, non-interest expense was up 9%, including one time ORE expenses associated with the development of a master plan for multi-family land acquired by the bank. “An important indication that the bank’s efficiency is improving is to compare total income sources to total expenses. For the first six months of 2015, when compared to the same period last year, income increased by 14.5% while expenses increased at 9.4%,” noted Trautman.

The bank’s loan quality remains high with non-current loans to total loans at June 30, 2015, of 0.10%, compared to 0.02% last year. Non-performing assets to total assets at the end of June 2015 were 1.52%, compared to 0.55% one year ago. The primary increase in non-performing assets consists of one multi-family parcel of land added to other real estate owned. At the end of the second quarter 2015 and 2014, reserves totaled 1.26% and 1.23%, respectively, of portfolio loans. The loan loss provision for the first six months of 2015 totaled $8, 000, compared to ($74, 000) for the first six months of last year.

People's Bank reported total assets, at the end of June 2015, of $223 million, up 10% in the last 12 months. The bank has total shareholders’ equity of $23.2 million and a book value of $11.26 per share. Tier one leverage capital remains strong at 10.36%. The bank’s stock trades on the over-the-counter market under the symbol PBCO.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150721006705/en/

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

Source: People’s Bank of Commerce

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