MEDFORD, Ore.--(EON: Enhanced Online News)--People’s Bank of Commerce (OTCBB: PBCO) announced today its financial results for the first quarter of 2017. The bank reported net income of $528,000 or $0.23 per diluted share for the first quarter of 2017, compared to net income of $298,000 or $0.13 per diluted share in the same quarter of 2016. Earnings in the fourth quarter of 2016 totaled $520,000 or $0.23 per diluted share. Earnings per share for the trailing 12 months increased to $0.93 per share at the end of the first quarter 2017 from $0.63 per share one year ago, a 48% increase.
“Many larger homes in the area have experienced long overdue price appreciation, allowing owners to refinance.”
Highlights for the first quarter of 2017 compared to the first quarter of 2016:
- Net loans increased 14%.
- Deposits declined 1%.
- The bank’s total assets increased less than 1%.
- Net interest income increased by 14%.
- Non-Interest income increased 57%.
- Non-interest expense increased 12%.
“Beginning in the second quarter of 2016, in order to increase the bank’s net interest margin and efficiency, the bank decreased high cost deposits, such as brokered CDs, and decreased its investment in securities and overnight funds. At the same time, the bank continued to grow its loan portfolio, resulting in modest asset growth. The net interest margin for the first quarter of 2017 was 4.33% compared to 3.81% for the same quarter of 2016. Efficiency improved to 72.27% for the 12 months ending 3/31/17 from 80.34% for the preceding 12 months,” said Ken Trautman, President and CEO.
Provision for Credit Losses
Loan quality continues to increase and loans outstanding were fairly flat during the first quarter providing for a credit (decrease) to the allowance for loan losses of $36,000, compared to an addition of $93 thousand in the same quarter last year. The addition in 2016 was due to a 9% increase in loans outstanding during the quarter. “The bank anticipates continued additions to the allowance for loan and lease losses during 2017 due to anticipated loan growth,” commented Mr. Trautman.
Mortgage banking income was 102% greater in the first quarter of 2017 compared to the first quarter of 2016. “This dramatic increase in revenue resulted from larger loan sizes and our commitment to rebuild our mortgage banking team that occurred during the beginning of 2016,” commented Steve Erb, Chief Banking Officer. Mr. Erb continued, “Many larger homes in the area have experienced long overdue price appreciation, allowing owners to refinance.”
At March 31, 2017, shareholder equity totaled $26.6 million, compared to $24.5 million at March 31, 2016. The bank’s leverage ratio was 9.8% at the end of the first quarter 2017, compared to 8.9% one year ago. Book value per share was $11.67 on March 31, 2017, compared to $11.33 on March 31, 2016, when adjusted for the 5% stock dividend received in May of 2016.
About People’s Bank of Commerce
People’s Bank of Commerce’s stock trades on the over-the-counter market under the symbol PBCO. Additional information about the Bank is available in the investor section of the bank’s website at: www.peoplesbankofcommerce.com.
Founded in 1998, People’s Bank of Commerce is the only locally owned and managed community bank in Southern Oregon. People’s Bank of Commerce is a full-service bank headquartered in Medford, Oregon with branches in Medford, Ashland, Central Point and Grants Pass.
"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.
|People's Bank of Commerce|
|Income Statement (unaudited)|
|(dollars in thousands)||Three Months Ended||Twelve Months Ended|
|Federal funds sold and due from banks||12||8||19||60||61|
|Total Interest Income||2,672||2,686||2,393||10,481||9,022|
|Total Interest Expense||93||102||137||435||462|
|Net Interest Income||2,579||2,584||2,256||10,046||8,560|
|Provision for Credit Losses||(36||)||36||93||237||162|
Net Interest Income after provision for credit losses
|Service charges on deposit accounts||78||68||63||290||271|
|Mortgage lending income||240||247||118||892||807|
|Gain (loss) on other real estate||-||-||-||-||(111||)|
|Other non-interest income||201||169||149||960||743|
|Total non-interest income||519||484||330||2,142||1,710|
|Salary and benefits||1,407||1,285||1,228||5,079||4,892|
|Premises and fixed assets||335||344||313||1,339||1,179|
|Total non-interest expense||2,330||2,242||2,075||8,808||8,251|
|Net income before taxes||804||790||418||3,143||1,857|
|Basic Earnings per share *||0.23||0.23||0.13||0.93||0.63|
|Diluted Earnings per share *||0.23||0.22||0.13||0.93||0.63|
|Average common shares outstanding *||2,279,022||2,279,022||2,274,467||2,269,003||2,160,232|
|Return on average assets||0.80||%||0.78||%||0.37||%||0.79||%||0.58||%|
|Return on average equity||7.97||%||8.01||%||0.47||%||8.20||%||5.80||%|
|Net interest margin||4.33||%||4.17||%||3.81||%||3.95||%||4.10||%|
|* adjusted for 5% stock dividend May 2016|
|People's Bank of Commerce|
|Balance Sheet (unaudited)|
|(dollars in thousands)||3/31/2017||12/31/2016||9/30/2016||6/30/2016||3/31/2016|
|Cash and due from banks||10,181||13,091||11,897||8,800||11,645|
|Federal funds sold||-||-||-||-||-|
|Loans held for sale||1,603||294||615||473||716|
Loans held for investment, net of unearned income
|Allowance for loan and lease losses||(2,300||)||(2,342||)||(2,303||)||(2,198||)||(2,058||)|
|Premises and equipment, net||7,088||6,970||6,946||7,034||5,854|
|Money market and savings||97,137||98,838||98,613||99,784||115,295|
|Time deposits of less than $100,000||8,501||8,428||8,550||10,729||12,369|
|Time deposits of more than $100,000||8,224||9,020||10,810||10,634||11,715|
|Common Stock, surplus, retained earnings||26,578||26,050||25,359||24,745||24,258|
Accumulated other comprehensive income (loss)
|Total shareholders' equity||26,601||26,079||25,685||25,154||24,528|
|Total Liabilities and Equity||271,478||265,899||264,560||260,068||271,083|