Le Lézard
Classified in: Business, Covid-19 virus
Subject: EARNINGS

People's Bank Reports 2021 Earnings


People's Bank of Commerce (OTC PINK: PBCO) announced today its financial results for the 4th quarter and year-ended 2021.

Highlights

People's Bank reported quarterly net income of $3.0 million, or $0.59 per diluted share, for the 4th quarter of 2021 compared to net income of $1.7 million, or $0.45 per diluted share, in the same quarter of 2020. The bank recognized year-to-date net income of $11.5 million versus $6.1 million for the twelve months of 2020, an 87.1% increase from the prior year. Earnings per share for the trailing 12 months were $2.44 per share, up from $1.72 per share for the same period of 2020, a 41.9% increase. Fourth quarter income continued to be positively impacted by PPP fee income due to pro-ration of the remaining unamortized origination processing fees at payoff with $637 thousand in PPP fee income recognized during the quarter. Steelhead Finance also demonstrated solid revenue of $2.0 million during the quarter, versus $1.2 million in 4th quarter 2020. During the quarter, the bank made a provision for loan losses of $139 thousand. As anticipated with the bank's recent acquisition of Willamette Community Bank (WMCB) in the 1st quarter 2021, the bank was able to achieve higher earnings per share than in previous periods.

During the quarter, deposits increased $13.6 million, or an annualized 7.2% growth rate. On an annual basis, deposits grew by $308 million, a 67.7% increase from December 31, 2020. Deposit growth during the year was attributed to several factors, including the bank's acquisition of WMCB in the first quarter, the bank's participation in the PPP loan program, and organic growth in all deposit markets. "We continue to see deposit growth, although at a slower pace than previous quarter. Our focus on building and sustaining relationships forged during the PPP push has allowed us to not only grow but retain core deposits," commented Joan Reukauf, Chief Operating Officer.

The Bank continued to deploy excess liquidity to the investment portfolio as an alternative to deposits at the Federal Reserve Bank. Through the end of the quarter, the bank increased its investment portfolio by $37.7 million, an 18.5% increase from the prior quarter.

Core portfolio loan growth, excluding PPP, totaled $14.3 million during the 4th quarter of 2021, representing an annualized growth rate of 13.1%. For the year 2021, the bank grew portfolio loans, excluding PPP, by $183.7 million, an overall annual growth rate of 68.8% when the impact of the WMCB merger is included. "During 2021, the bank achieved double-digit loan growth, in spite of the continued economic volatility from the COVID-19 pandemic and focus on the Willamette merger," commented Julia Beattie, President.

The bank's active role in the Paycheck Protection Program (PPP) beginning in April 2020 resulted in 1,204 PPP loans in Round I, totaling $121.2 million, with all but 1 of the loans from Round I having been forgiven by December 31, 2021 (includes loans funded by WMCB prior to the bank merger with People's Bank). Similarly, the bank funded 629 loans in Round II of the Paycheck Protection Program, representing $48.6 million in loan volume. By December 31, 2021, only $6.6 million in Round II loans had yet to be forgiven.

PPP Loan Activity To Date
                 
 

As of

 

As of

 

As of

 

As of

(dollars in thousands)  

12/31/2021*

 

9/30/2021*

 

6/30/2021*

 

3/31/2021*

 

#

 

$$$

 

#

 

$$$

 

#

 

$$$

 

#

 

$$$

PPP Loans Funded                
Round One (2020 - Phase I & II)  

1,204

 

$121,199

 

1,204

 

$121,199

 

1,204

 

$121,199

 

1,204

 

$121,199

Round Two (2021)  

629

 

$ 48,588

 

629

 

$ 48,588

 

629

 

$ 48,588

 

534

 

$45,993

                 
PPP Loans Forgiven                
Round One (2020 - Phase I & II)  

1203

 

$121,069

 

1196

 

$120,871

 

1139

 

$112,136

 

437

 

$65,540

Round Two (2021)  

607

 

$ 42,168

 

465

 

$ 25,377

 

73

 

$3,190

 

-

 

$0

                 
Net PPP Loans Outstanding                
Round One (2020 - Phase I & II)  

1

 

$130

 

8

 

$328

 

65

 

$9,063

 

767

 

$55,659

Round Two (2021)  

22

 

$6,420

 

164

 

$23,211

 

557

 

$45,398

 

534

 

$45,993

Total Actual Balances outstanding  

23

 

$6,550

 

172

 

$23,539

 

622

 

$54,461

 

1,301

 

$101,652

* Includes PPP activity of Willamette Community Bank

During the quarter, the bank experienced a decrease in classified assets. This was the result of a reduction of Other Real Estate Owned. Total loans past due or on non-accrual were flat from the prior quarter at 0.15%. During the 4th quarter, the Allowance for Loan and Lease Losses (ALLL) was updated based on new loan growth achieved during the quarter and updated economic expectations, which were factored into the bank's analysis. As of December 31, 2021, the ALLL was 0.92% of portfolio loans excluding PPP and the unallocated reserve stood at $0.6 million or 14.6% of the allowance.

As of December 31, 2021, the bank's Tier 1 Leverage Ratio was 8.99% versus 9.36% as of the same date in 2020, with total shareholder equity of $79.1 million. During the quarter, the bank was able to augment capital through earnings while assets also increased with our growth in deposits.

Fourth quarter 2021 non-interest income totaled $2.9 million, a decrease of $351 thousand from the 4th quarter of 2020. During the quarter, Steelhead Finance factoring revenue increased $745 thousand, a 60.1% increase over the same quarter of 2020. Conversely, mortgage income decreased $1.1 million, or a 71.1% from the 4th quarter of 2020. "The 4th quarter was the strongest on record for Steelhead Finance, we are extremely pleased with the division's results during 2021," commented Ken Trautman, CEO. "Residential Mortgage lending was soft in the 4th quarter, but we have increased our focus in the Willamette region to continue diversifying our revenue streams bank-wide," added Trautman. During the year, the bank also updated its bargain purchase gain from the WMCB merger of $2.3 million to reflect the anticipated tax consequences, resulting in a reduction to other non-interest income of $317 thousand in both the third and fourth quarter of 2021.

Non-interest expense totaled $5.4 million in the 4th quarter, down $434 thousand from the 3rd quarter of 2021. During the 4th quarter, the bank reversed $425 thousand in one-time expense accruals from our recent merger, primarily the result of lower-than-expected deconversion costs from Willamette's former data processing vendor. Included in 2021 non-interest expense is the final quarterly accrual of $250,000 for the bank's $1 million donation to fire relief to assist with intermediate and long-term housing needs as our Southern Oregon community rebuilds. This is a non-recurring item for 2021. For the twelve months ending December 31, 2021, excluding one-time merger adjustments, earnings per share would have been $2.57, versus $1.72 for the same period ended December 31, 2020.

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, commercial bank headquartered in Medford, Oregon with branches in Albany, Medford, Ashland, Central Point, Grants Pass, Klamath Falls, Lebanon, and Salem.

"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.

(Dollars in 000's)  

12/31/2021

 

9/30/2021

 

6/30/2021

 

12/31/2020

BALANCE SHEET        
ASSETS        
Cash and due from banks  

$

5,194

 

 

$

4,561

 

 

$

4,752

 

 

$

2,819

 

Federal funds sold  

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Interest bearing deposits  

 

77,643

 

 

 

100,429

 

 

 

148,554

 

 

 

91,103

 

Investment securities  

 

241,564

 

 

 

203,913

 

 

 

104,155

 

 

 

25,894

 

Loans held for sale  

 

1,408

 

 

 

2,802

 

 

 

901

 

 

 

3,407

 

Loans held for investment, net of unearned income  

 

457,224

 

 

 

459,883

 

 

 

474,909

 

 

 

346,198

 

Total Loans, net of deferred fees and costs  

 

458,632

 

 

 

462,685

 

 

 

475,810

 

 

 

349,605

 

Allowance for loan losses  

 

(4,376

)

 

 

(4,302

)

 

 

(4,076

)

 

 

(4,453

)

Premises and equipment, net  

 

27,304

 

 

 

27,567

 

 

 

26,878

 

 

 

21,624

 

Bank owned life insurance  

 

13,759

 

 

 

13,689

 

 

 

13,585

 

 

 

7,476

 

Other Assets  

 

39,877

 

 

 

37,070

 

 

 

36,316

 

 

 

29,263

 

Total assets  

$

859,597

 

 

$

845,612

 

 

$

805,973

 

 

$

523,331

 

         
LIABILITIES        
Deposits        
Demand - non-interest bearing  

$

350,424

 

 

$

358,013

 

 

$

317,837

 

 

$

231,095

 

Demand - interest bearing  

 

113,154

 

 

 

100,341

 

 

 

112,945

 

 

 

54,806

 

Money market and savings  

 

276,264

 

 

 

266,004

 

 

 

250,326

 

 

 

147,481

 

Time deposits of less than $250,000  

 

21,140

 

 

 

22,670

 

 

 

20,613

 

 

 

19,149

 

Time deposits of more than $250,000  

 

3,247

 

 

 

3,645

 

 

 

11,259

 

 

 

3,216

 

Total deposits  

$

764,229

 

 

$

750,673

 

 

$

712,979

 

 

$

455,747

 

         
Borrowed funds  

 

7,437

 

 

 

7,529

 

 

 

6,817

 

 

 

6,924

 

Other liabilities  

 

8,866

 

 

 

9,887

 

 

 

11,107

 

 

 

7,824

 

Total liabilities  

$

780,532

 

 

$

768,089

 

 

$

730,904

 

 

$

470,495

 

         
STOCKHOLDERS' EQUITY        
Common stock  

$

61,340

 

 

$

60,879

 

 

$

57,104

 

 

$

40,379

 

Retained earnings  

 

19,465

 

 

 

16,489

 

 

 

17,620

 

 

 

11,775

 

Accumulated other comprehensive income,        
net of tax  

 

(1,740

)

 

 

155

 

 

 

345

 

 

 

682

 

Total stockholders' equity  

$

79,065

 

 

$

77,523

 

 

$

75,069

 

 

$

52,836

 

         
Total liabilities & stockholders' equity  

$

859,597

 

 

$

845,612

 

 

$

805,973

 

 

$

523,331

 

(Dollars in 000's)

4th Quarter 2021

 

3rd Quarter 2021

 

2nd Quarter 2021

 

4th Quarter 2020

INCOME STATEMENT
INTEREST INCOME
Loans

$

5,974

 

$

6,632

 

$

6,673

 

$

4,308

Investments

 

724

 

 

544

 

 

218

 

 

155

Federal funds sold and due from banks

 

44

 

 

58

 

 

50

 

 

30

Total interest income

 

6,742

 

 

7,234

 

 

6,941

 

 

4,493

 
INTEREST EXPENSE
Deposits

 

197

 

 

218

 

 

264

 

 

176

Borrowed funds

 

15

 

 

15

 

 

15

 

 

26

Total interest expense

 

212

 

 

233

 

 

279

 

 

202

 
NET INTEREST INCOME

 

6,530

 

 

7,001

 

 

6,662

 

 

4,291

Provision for loan losses

 

139

 

 

347

 

 

(249

)

 

182

Net interest income after provision for
loan losses

 

6,391

 

 

6,654

 

 

6,911

 

 

4,109

 
NONINTEREST INCOME
Service charges

 

117

 

 

106

 

 

108

 

 

57

Mortgage lending income

 

472

 

 

615

 

 

697

 

 

1,634

Steelhead finance income

 

1,984

 

 

1,785

 

 

1,587

 

 

1,239

Bargain purchase gain

 

(316

)

 

(316

)

 

-

 

 

-

BOLI Income

 

72

 

 

73

 

 

66

 

 

37

Other non-interest income

 

585

 

 

474

 

 

480

 

 

298

Total noninterest income

 

2,914

 

 

2,737

 

 

2,938

 

 

3,265

 
NONINTEREST EXPENSE
Salaries and employee benefits

 

3,416

 

 

3,354

 

 

3,389

 

 

3,186

Occupancy & equipment expense

 

924

 

 

893

 

 

800

 

 

590

Advertising expense

 

295

 

 

396

 

 

392

 

 

277

Professional expenses

 

213

 

 

561

 

 

353

 

 

406

Data processing expense

 

(197

)

 

324

 

 

333

 

 

242

Other operating expenses

 

699

 

 

256

 

 

682

 

 

356

Total noninterest expense

 

5,350

 

 

5,784

 

 

5,948

 

 

5,057

 
Income before taxes

 

3,955

 

 

3,608

 

 

3,901

 

 

2,317

Provision for income taxes

 

978

 

 

958

 

 

948

 

 

619

 
NET INCOME

$

2,977

 

$

2,650

 

$

2,953

 

$

1,698

 
Shares Outstanding End of Quarter

 

5,057,211

 

 

5,042,704

 

 

5,043,127

 

 

3,736,510

Average shares outstanding*

 

5,047,540

 

 

4,962,936

 

 

5,043,127

 

 

3,738,101

Earnings per share

$

0.59

 

$

0.53

 

$

0.59

 

$

0.45

*Adjusted for stock dividend 9/22/21
(Dollars in 000's) 12/31/2021 9/30/2021 6/30/2021 12/31/2020
Financial Highlights
Total loans

$

458,632

 

$

462,685

 

$

475,810

 

$

349,605

 

Total deposits

$

764,229

 

$

750,673

 

$

712,979

 

$

455,747

 

Total assets

$

859,597

 

$

845,612

 

$

805,973

 

$

523,331

 

Net income

$

2,977

 

$

2,650

 

$

2,953

 

$

1,698

 

Steelhead Finance contribution, pre-tax

$

1,116

 

$

1,089

 

$

970

 

$

531

 

Mortgage contribution, pre-tax

$

(8

)

$

212

 

$

308

 

$

751

 

 
Performance Ratios
Return on average assets

 

1.40

%

 

1.27

%

 

1.46

%

 

1.31

%

Return on average equity

 

15.32

%

 

13.79

%

 

16.05

%

 

13.10

%

Net interest margin

 

3.46

%

 

3.70

%

 

3.68

%

 

3.75

%

Yield on loans

 

5.15

%

 

5.53

%

 

5.39

%

 

4.66

%

Cost of deposits

 

0.10

%

 

0.12

%

 

0.15

%

 

0.16

%

Efficiency ratio

 

56.65

%

 

59.39

%

 

61.96

%

 

66.93

%

Full-time equivalent employees

 

140

 

 

140

 

 

138

 

 

106

 

 
Capital
Leverage ratio

 

8.99

%

 

8.73

%

 

8.83

%

 

9.36

%

Common equity tier 1 ratio N/A(1) N/A(1) N/A(1) N/A(1)
Tier 1 risk based ratio N/A(1) N/A(1) N/A(1) N/A(1)
Total risk based ratio N/A(1) N/A(1) N/A(1) N/A(1)
Book value per share

$

15.63

 

$

15.37

 

$

14.89

 

$

14.14

 

Tangible book value per share

$

14.87

 

$

14.61

 

$

14.11

 

$

13.21

 

 
Asset Quality
Allowance for loan losses (ALLL)

$

4,376

 

$

4,302

 

$

5,782

 

$

4,453

 

Nonperforming loans (NPLs)

$

703

 

$

665

 

$

876

 

$

191

 

Nonperforming assets (NPAs)

$

1,245

 

$

1,443

 

$

1,845

 

$

1,220

 

Classified assets(2)

$

2,949

 

$

3,275

 

$

3,138

 

$

2,550

 

ALLL as a percentage of net loans

 

0.96

%

 

0.94

%

 

1.23

%

 

1.29

%

ALLL as a percentage of NPLs

 

622

%

 

647

%

 

660

%

 

2327

%

Net charge offs (recoveries) to average loans

 

-0.15

%

 

0.03

%

 

0.00

%

 

0.00

%

Net NPLs as a percentage of total loans

 

0.15

%

 

0.15

%

 

0.19

%

 

0.06

%

Nonperforming assets as a percentage of total assets

 

0.14

%

 

0.17

%

 

0.23

%

 

0.23

%

Classified Asset Ratio(3)

 

3.53

%

 

4.00

%

 

3.96

%

 

4.45

%

Past due as a percentage of total loans

 

0.15

%

 

0.18

%

 

0.18

%

 

0.05

%

 
End of period balances
Total securities and short term deposits

$

319,207

 

$

304,342

 

$

252,709

 

$

116,997

 

Total loans, net of allowance

$

454,256

 

$

458,383

 

$

471,734

 

$

345,152

 

Total earning assets

$

777,839

 

$

767,027

 

$

728,520

 

$

466,602

 

Total assets

$

3,854

 

$

3,872

 

$

3,901

 

$

3,485

 

Total noninterest bearing deposits

$

859,597

 

$

845,612

 

$

805,973

 

$

523,331

 

Total deposits

$

350,424

 

$

358,013

 

$

317,837

 

$

231,095

 

 

764,229

 

 

750,673

 

 

712,979

 

 

455,747

 

Average balances
Total securities and short term deposits
Total loans, net of allowance

$

301,297

 

$

278,310

 

$

228,874

 

$

98,223

 

Total earning assets

$

449,826

 

$

465,410

 

$

489,813

 

$

361,982

 

Total assets

$

751,123

 

$

743,719

 

$

718,687

 

$

460,205

 

Total noninterest bearing deposits

$

848,239

 

$

834,485

 

$

809,623

 

$

517,187

 

Total deposits

$

356,832

 

$

336,375

 

$

320,986

 

$

227,689

 

 

752,255

 

 

739,372

 

 

717,147

 

 

448,225

 

(1) Effective March 31, 2020, People's Bank of Commerce opted into the Community Bank Leverage Ratio and is no longer calculating risk based capital ratios.
(2) Classified assets is defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned.
(3) Classified asset ratio is defined as the sum of all loan related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned, divided by bank Tier 1 capital, plus the allowance for loan losses.  

 


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News published on 19 january 2022 at 18:40 and distributed by: