People’s Bank of Commerce (OTCBB:PBCO) reported fourth quarter earnings for 2013 were $301,000 or $0.17 per share, compared to $199,000 or $0.16 per share for the same quarter in 2012. “Fourth quarter earnings gained one cent per share even though the Bank sold over 500,000 new shares of common stock during the 3 rd and 4 th quarters of 2013,” said Ken Trautman, President and CEO. Net interest income for the fourth quarter of 2013 was up 17 percent, when compared to the same quarter in the prior year, due to strong loan growth. Earnings for the year ended December 31, 2013, were $886,000 or $0.59 per share, compared to earnings of $875,000 or $0.71 per share during 2012. Net interest income for the year of $6.4 million was up 15 percent from $5.5 million in 2012. At December 31, 2013, the Bank reported a 25 percent increase in total assets to $181.1 million, a 26 percent increase in deposits to $158.3 million, and a 12 percent increase in portfolio loans to $125.7 million, when compared to the prior year. Non-interest expenses were up 13 percent in 2013 primarily the result of increased overhead expenses associated with People’s Bank opening two new branches in the last fourteen months; the new headquarters branch on Barnett Road in Medford and a new branch in Grants Pass, Oregon. “Both of these new branches will play an important part in People’s Bank fulfilling its mission of increasing its presence in the Southern Oregon markets it serves,” commented Trautman. Non-interest income for the current year was down 11% from the last year, the direct result of mortgage lending income dropping 34 percent from the prior year’s level. “Following the rest of the industry, People’s Bank’s volume of home loans dropped significantly during 2013 as interest rates on 30 year home loans increased to 4.50 percent in the fourth quarter of 2013, up from 3.35 percent in the fourth quarter of 2012. The good news is that the local residential real estate market continues to show improvement even though inventory levels remain historically low and the increase in interest rates has slowed the refinance market,” Trautman said.