By People's Bank of Commerce (OTCBB: PBCO) reported quarterly earnings of $213,000 or $0.19 per share for the fourth quarter of 2011, compared to $110,000 or $0.11 per share for the same quarter in 2010. At December 31, 2011, the Bank reported a 16 percent increase in portfolio loans to $93.8 million, a 20 percent increase in total assets to $126.7 million, and a 20 percent increase in deposits to $110.5 million, when compared to the prior year.
Earnings for the year ended December 31, 2011, were $528,000 or $0.47 per share, compared to earnings of $363,000 or $0.39 per share during 2010. Net interest income for the year of $4.8 million was up 16 percent from $4.2 million in 2010.
Net interest margin for the fourth quarter of 2011 improved to 4.83 percent, compared to 4.69 percent during the same period in 2010. Net interest income for the fourth quarter of 2011 was up 23 percent, when compared to the same quarter in the prior year, due to increased loan totals and lower deposit interest expense. Mortgage income in the fourth quarter of 2011 was up 119 percent over the prior year, the result of record low home loan interest rates and increased business development efforts.
The provision for loan loss expense of $411,000 in 2011, compared to $251,000 in
2010, resulted in reserves to total portfolio loans of 1.69 percent, compared to 1.77 percent in 2010. "Provision expenses did increase this year as the Bank grew its loan totals and carefully reviewed its entire loan portfolio and increased reserves where appropriate," commented Ken Trautman, President and CEO of People's Bank.
Non-current loans (past due 90 days or more or non-accruing) at December 31, 2011, were 0.15 percent of total loans, compared to 1.53 percent in 2010. Non-performing assets to total loans, a ratio that adds other real estate owned to non-performing loans, was 2.81 percent at December 31, 2011, compared to 4.51 percent in 2010.
"The Bank completed a successful capital offering in 2011, raising over $1.5 million in additional capital to support loan growth," commented Trautman. "This additional capital supported a 16 percent increase in portfolio loans or approximately $13 million in new loans to the local community. Additionally, we are pleased to report a $0.08 increase in earnings per share for the year, when compared to the prior year, even though the stock offering increased outstanding shares by over 75,000. Capital continues to be strong at 10.65 percent, which allows us the opportunity to not only lend money to local businesses and residents, but to expand our branch network to better serve the Southern Oregon community."
People's Bank of Commerce is locally headquartered at its main branch in Medford, Oregon and has branches in Ashland and Central Point, Oregon.
People's Bank has total shareholders' equity of $13.6 million and a book value of $11.97 per share. The stock trades in the over-the-counter market under the symbol "PBCO."
At December 31: | |||||
| 2011 | 2010 | ||||
Total Loans, excl. loans held for sale | $ | 93,774,000 | $ | 80,901,000 | |
| Reserve for Loan Losses | 1,583,000 | 1,430,000 | |||
| Total Deposits | 110,547,000 | 91,847,000 | |||
| Total Shareholder's Equity | 13,614,000 | 12,427,000 | |||
| Total Assets | 126,692,000 | 105,745,000 | |||
Shares outstanding(1) | 1,137,546 | 1,062,352 | |||
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Year ended December 31: | |||||
| Net interest income | $ | 4,841,000 | $ | 4,159,000 | |
| Provision (credit) for loan losses | 411,000 | 251,000 | |||
| Mortgage revenue | 678,000 | 752,000 | |||
| Net income (loss) | 528,000 | 363,000 | |||
| Earnings (loss) per share | 0.47 | 0.39 | |||
Average shares outstanding(1) | 1,118,372 | 931,696 | |||
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Quarter ended December 31: | |||||
| Net interest income | $ | 1,308,000 | $ | 1,066,000 | |
| Provision (credit) for loan losses | 152,000 | (39,000 | ) | ||
| Mortgage revenue | 306,000 | 140,000 | |||
| Net income | 213,000 | 110,000 | |||
| Earnings per share | 0.19 | 0.11 | |||
Average shares outstanding(1) | 1,128,546 | 974,833 | |||
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Quarter ended September 30: | |||||
| Net interest income | $ | 1,245,000 | $ | 1,075,000 | |
| Provision (credit) for loan losses | 163,000 | 66,000 | |||
| Mortgage revenue | 145,000 | 296,000 | |||
| Net income | 155,000 | 162,000 | |||
| Earnings per share | 0.14 | 0.18 | |||
| Average shares outstanding | 1,124,046 | 917,317 | |||
(1) non material adjustment of 13,500 shares outstanding related to incentive compensation. Originally reported at 12/31/10 1,048,852; Year end average 12/31/10 930,584; Quarter end average 12/31/10 970,385. | |||||
People?s Bank of Commerce
Ken Trautman, President and CEO,
541-774-7654
