People’s Bank Reports Earnings

Medford, Oregon – People’s Bank of Commerce (OTCBB: PBCO) announced today its financial results for the third quarter and year-to-date 2019. The bank reported net income of $947,000 or $0.30 per basic and diluted share for the third quarter of 2019, compared to net income of $948,000 or $0.31 per share in the same quarter of 2018.

Earnings for the first nine months of 2019 totaled $2,719,000 or $0.89 per share compared to $2,516,000 or $0.85 per share during the first three quarters of 2018. Earnings per share for the trailing 12 months ending September 30, 2019 were $1.19 per share compared to $0.94 per diluted share during the same period one year earlier.

Balance Sheet

September 30, 2019 vs. September 30, 2018:
• Total Loans increased 13%
• Total Deposits increased 7%
• Total Assets increased 8%
• Total Equity increased 14%

Income Statement year-to date

September 30, 2019 vs. September 30, 2018:
• Net-interest Income increased 16%
• Pre-tax income increased 11%
• Non-interest Income decreased 4%
• Non-interest Expense increased 9%

President’s Comments

“Total loans continue to show good growth over the past 9 months” stated Ken Trautman, bank President and CEO. “The bank’s factoring division, Steelhead Finance, has seen a softening in income in 2019 which follows the
trucking industry’s reduced activity. The bank retooled its residential mortgage department in 2019, which is now starting to pay dividends, with an increase in income for the first nine months of 2019 over 2018 of 64%, commented Trautman. “2019 has been a year of change for the bank, which included a core processing conversion as well as staff reductions in our branch system allowed by improved technology and processing centralization,” added Trautman.

Provision for Credit Losses

The bank’s YTD provision for loan and lease losses was $211 thousand compared a provision of $293 thousand during the same period last year. Credit quality remains strong with no loans past due over 90 days or on nonaccrual at the end of September 2019 and September 2018. At the end of the third quarter 2019, the loan loss reserve was 1.117% of loans held for investment compared to 1.124% at the end of the third quarter 2018.

Non-Interest Income

For the quarter ending September 30, 2019, non-interest income was $1.70 million compared to $1.74 million in the same quarter one year earlier. For the first three quarters of 2019, non-interest income was lower than the previous year with $4.9 million compared to $5.1 million year-to-date in 2018. Steelhead Finance, the bank’s factoring division, generated $3.2 million in non-interest income during the three quarters of 2019.

Non-Interest Expense

For the quarter ending September 30, 2019, non-interest expense was $3.9 million compared to $3.6 million in the same quarter of 2018. Year-to-date non-interest expense totaled $11.4 million through September 30, 2019, compared to $10.5 million in the same period the prior year.

Capital

As of September 30, 2019, shareholder’s equity totaled $38.8 million, compared to $34.0 million at September 30, 2018. The bank’s Tier 1 capital ratio was 9.73% at the end of the third quarter 2019, compared to 9.28% one year ago. Tangible Book value per share was $11.23 on September 30, 2019, compared to $10.10 on September 30, 2018, when adjusted for the 5% stock dividend received in May of 2019.

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.peoplesbank.bank
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, Grants Pass and Klamath Falls.