REPORT OF INDEPENDENT AUDITORS AND
FINANCIAL STATEMENTS
PEOPLE'S BANK OF COMMERCE
(AN OREGON BANKING CORPORATION)
December 31, 2021 and 2020
Table of Contents
PAGE | ||
Report of Independent Auditors | 1-2 | |
Financial Statements | ||
Balance sheets | 3 | |
Statements of income | 4 | |
Statements of comprehensive income | 5 | |
Statements of changes in stockholders' equity | 6 | |
Statements of cash flows | 7-8 | |
Notes to financial statements | 9-45 | |
Note: | These financial statements have not been reviewed or confirmed for accuracy or relevance by |
the Federal Deposit Insurance Corporation.
Report of Independent Auditors
To the Board of Directors and Stockholders
People's Bank of Commerce
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of People's Bank of Commerce, which comprise the balance sheets as of December 31, 2021 and 2020, and the related statements of income, comprehensive income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of People's Bank of Commerce as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of People's Bank of Commerce and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about People's Bank of Commerce's ability to continue as a going concern within one year after the date that the financial statements are issued.
1
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of People's Bank of Commerce's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about People's Bank of Commerce's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Portland, Oregon
March 11, 2022
2
People's Bank of Commerce
Balance Sheets
December 31, | |||||
2021 | 2020 | ||||
ASSETS | |||||
Cash and cash equivalents | $ | 81,345,358 | $ | 92,182,758 | |
Time deposits with other institutions | 1,492,000 | 1,740,000 | |||
Investment securities | |||||
available-for-sale, at fair value | 241,637,890 | 25,893,747 | |||
Federal Home Loan Bank (FHLB) stock | 1,010,100 | 564,300 | |||
Loans held-for-sale | 1,407,525 | 3,407,443 | |||
Factored accounts receivable, net of allowance | 27,199,768 | 17,762,644 | |||
Loans, net of allowance for loan losses, and | |||||
unearned income | 452,848,631 | 341,744,684 | |||
Premises, equipment, and leasehold improvements, | |||||
net of accumulated depreciation and amortization | 23,048,156 | 17,796,522 | |||
Right-of-use asset, net | 4,256,256 | 3,826,981 | |||
Other real estate owned | 542,310 | 1,028,151 | |||
Bank-owned life insurance (BOLI) | 13,759,082 | 7,475,619 | |||
Goodwill | 3,335,384 | 3,335,384 | |||
Investment in real estate joint venture | 2,311,732 | 2,360,850 | |||
Accrued interest receivable and other assets | 5,403,089 | 4,211,549 | |||
Total assets | $ | 859,597,281 | $ | 523,330,632 | |
LIABILITIES | |||||
Noninterest-bearing demand deposits | $ | 350,423,974 | $ | 231,095,318 | |
Interest-bearing demand and money market accounts | 322,951,065 | 165,556,742 | |||
Savings deposits | 66,466,635 | 36,730,181 | |||
Time deposits | 24,387,655 | 22,365,573 | |||
Total deposits | 764,229,329 | 455,747,814 | |||
FHLB Advances | 3,000,000 | 3,000,000 | |||
Accrued interest payable and other liabilities | 8,865,508 | 7,822,875 | |||
Lease liability | 4,436,997 | 3,924,444 | |||
Total liabilities | 780,531,833 | 470,495,133 | |||
COMMITMENTS AND CONTINGENCIES (Notes 9, 11, and 12) | |||||
STOCKHOLDERS' EQUITY | |||||
Common stock, $5 par value, 10,000,000 shares authorized; | |||||
5,057,211 and 3,558,581 shares issued and outstanding | |||||
at December 31, 2021 and 2020, respectively | 25,297,545 | 17,804,396 | |||
Surplus | 36,042,613 | 22,574,481 | |||
Retained earnings | 19,465,705 | 11,774,851 | |||
Accumulated other comprehensive income (loss) | (1,740,415) | 681,771 | |||
Total stockholders' equity | 79,065,448 | 52,835,499 | |||
Total liabilities and stockholders' equity | $ | 859,597,281 | $ | 523,330,632 | |
3
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
People's Bank of Commerce published this content on 22 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2022 03:09:02 UTC.