People’s Bank of Commerce Reports Earnings
People’s Bank of Commerce (PBCO) reported significant financial results for 2020, achieving a net income of $6.13 million, a 51% increase from 2019's net income of $4.07 million. Earnings per diluted share rose to $1.76 from $1.32, marking a 33% gain. The bank's mortgage division saw a remarkable 290% revenue growth to $4.75 million. Total loans increased by 24% year-over-year, while deposits surged by 49%. However, non-interest expenses rose 12% to $16.7 million.
- Net income increased 51% to $6.13 million in 2020.
- Earnings per diluted share rose 33% to $1.76.
- Mortgage division revenue grew 290% to $4.75 million.
- Total loans increased by 24% year-over-year.
- Deposits surged 49%, totaling $149 million for the year.
- Non-interest income rose 56% to $10.4 million.
- Non-interest expenses increased by 12% to $16.7 million.
- Fourth-quarter total loans decreased by $9.7 million.
People’s Bank of Commerce (OTCBB: PBCO) announced today its financial results for the fourth quarter and full year 2020 operations. The bank reported net income of
When comparing the full year 2020 net income to 2019, several significant items impact the comparison. The bank’s mortgage division increased its gross revenue to
Highlights for the quarter and year included:
-
Total loans decreased
$9.7 million during the fourth quarter 2020 but increased$67.9 million or24% for the entire year. The 4th quarter decrease was the result of PPP loan paydowns from the SBA loan forgiveness program, while the loan growth over the full year was due to PPP loan origination. -
Deposits increased
$23.9 million over the past 3 months and increased$149 million for the entire year, a49% increase. -
Total bank assets increased
$153.2 million or41% for the year. -
Net interest income for 2020 totaled
$15.7 million dollars compared to$14.0 million in 2019, a12% increase. -
Non-Interest income totaled
$10.4 million in 2020 versus$6.6 million in 2019, a56% increase, due to changes in mortgage, Steelhead factoring and the PPP loan program, discussed above. -
Non-interest expenses totaled
$16.7 million in 2020 compared to$14.9 million in 2019, a12% increase. -
The bank’s year-to-date efficiency ratio was
70.7% in 2020 and72.0% in 2019 when PPP income is excluded. Including PPP, year-to-date efficiency was63.9% . -
ROAE was
12.67% in 2020 and10.76% in 2019. For the fourth quarter of 2020, the ROAE was13.10% compared to13.56% for the same period in 2019. -
ROAA was
1.32% in 2020 and1.13% in 2019. For the fourth quarter of 2020, the ROAA was1.31% compared to1.46% for the same period in 2019. -
There were no loans on non-accrual or past due more than 90 days at the end of 2020, compared to
0.24% at the end of 2019. -
Net Income was affected by one-time merger expenses of
$274 thousand in 2020.
CEO’s Commentary
“2020 was perhaps the strangest year in banking that I have seen in 40 years, almost exclusively caused by the Pandemic. Our change in strategic direction, started five years ago, to develop more non-interest income as a percentage of total income, paid off significantly this year,” noted Ken Trautman, bank CEO. “Gross income from our mortgage division and Steelhead Finance totaled
In addition to managing the effects of the Pandemic, the bank also announced the acquisition of Willamette Community Bank, headquartered in Albany, Oregon on November 5, 2020. The bank released the Proxy Statement and Definitive Merger Agreement for shareholders of record of December 17, 2020 to vote their shares at a February 11, 2021 special shareholder meeting. Information about the proposed merger can be found in the Investor Relations section of the bank’s website.
Provision for Credit Losses
The bank had a provision expense of
Capital
At December 31, 2020, tangible shareholder’s equity totaled
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.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as People’s Bank or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe People’s Bank’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
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| (dollars in thousands) | 12/31/2020 | 9/30/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | ||||
| Interest Income | |||||||||
| Loans |
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