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People’s Bank of Commerce (OTCBB:PBCO) today reported earnings of $362,000 for the first six months of 2013 compared to $424,000 for the same period last year. The Bank reported earnings of $0.28 per share for the first six months of 2013, compared to $0.35 per share for the prior year. Net interest income was up 15% year-to-date over the prior year. “The Bank has experienced strong loan and deposit growth for the past 10 quarters and the continued growth in net interest income has followed,” said Ken Trautman, President and CEO of People's Bank.
Earnings for the second quarter of 2013 were $259,000, up 32% over the second quarter 2012. The Bank reported earnings of $0.20 per share for the three months ending June 30, 2013, compared to $0.16 per share in 2012. Non-interest income in the second quarter was up 16% over the same period last year primarily the result of increases in mortgage lending income and loan fees.
“Favorable interest rates in 2012 allowed for significant residential refinance activity that year. During the first quarter of 2013 activity slowed, but refinance as well as purchase activity rebounded in the second quarter,” continued Trautman. Non-interest expenses for the six month period ending June 30, 2013 were up 18% over the prior year. The increase was driven by the Bank moving into its new headquarters building in the fourth quarter of 2012 and increasing staff to accommodate deposit and loan growth.
The Bank increased its loans outstanding 16% during the past 12 months and deposits increased 24% during the same period. “Commercial loans outstanding have continued to increase as the Bank has been able to provide funding at extremely favorable rates to qualified borrowers,” commented Russ Milburn, Chief Financial Officer. “The southern Oregon economy is improving as we see the unemployment rate go down and local commercial building projects continue. As this improvement continues, the Bank is positioned to provide needed financing to local businesses.”