MEDFORD, Ore. -- (Business Wire)

People’s Bank of Commerce (OTCBB:PBCO) reported today that its earnings for the first quarter of 2014 were $168,000, compared to $103,000 during the first quarter of 2013. The Bank reported earnings of $0.09 per share for the three months ending March 31, 2014, compared to $0.08 per share in 2013. People’s Bank had a 13 percent increase in net interest income in the first quarter of 2014 when compared to the same period last year. Non-interest income was down 12 percent from the prior year during the first quarter of 2014, primarily due to a reduction in mortgage loan income.

People’s Bank increased portfolio loans by 7 percent and deposits by 22 percent when compared to the prior year, resulting in total portfolio loans of $124.2 million and total deposits of $169.7 million. The Bank reported total assets of $192.0 million at the end of March 2014, up 23 percent from a year ago. “The Bank reported its 19^th consecutive quarter of profitable operations,” said Ken Trautman, President and Chief Executive Officer. “The Bank opened its newest branch in Grants Pass in September of 2013, while its other branches continue to grow as local businesses and individuals look to Southern Oregon’s only locally owned commercial bank for financial solutions.”

People’s Bank’s quarterly average net interest margin remains higher than Oregon peer banks at 4.33 percent, down from 4.65 percent during the same period in 2013. Compared to $88,000 in 2013, the provision for loan loss expense of ($65,000) in the first quarter of 2014 provided a reserve-to-total portfolio loan ratio of 1.58 percent. “The negative loan loss provision in the first quarter of 2014 was primarily the result of a short-term reduction in total loans and continued improvement in loan quality. Past due and nonaccrual loans to total loans was 0.00 percent as of March 2014, compared to 0.04 percent one year ago. We continue to be pleased with the trend of low non-current loans, which signifies the continuing improvement in the loan portfolio and in the local economy,” said Trautman.

“Although short- and long-term interest rates remain very low by historical standards, the Bank has positioned itself to benefit from rising rates,” said Trautman. “The strong Tier One Leverage Capital ratio of 10.93 percent as of March 31, 2014, is the result of a successful capital campaign that ended October 31, 2013. This new capital supported asset growth of 25 percent in 2013 and 23 percent in the year ending March 31, 2014.”

At March 31, 2014, the bank had total shareholders’ equity of more than $21.1 million and a book value of $11.46 per share. The stock trades on the over-the-counter market under the symbol PBCO.

“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.

Contacts:

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

Source: People’s Bank of Commerce