Business
People’s Bank Reports Second Quarter Earnings
People’s Bank Reports Second Quarter Earnings.
About this update from Pbco Financial Corporation
[{"type":"text","content":"\nPeople’s Bank of Commerce (OTC PINK: PBCO) announced today its financial results for the second quarter of 2021.\n\nHighlights\n\n\nSecond quarter net income of $2,953,000, or $0.61 per diluted share\n\n\nYear-to-date net income of $5,846,000 or $1.33 per diluted share\n\n\nLTM EPS increased 82.5% from 2nd quarter 2020\n\n\nQuarterly non-PPP loan growth of $10.6 million, an annualized growth rate of 10.4%\n\n\nSecond Quarter tax equivalent net interest margin of 3.68%, excluding factoring revenue\n\n\nSteelhead factoring revenue increased 96.4% over Q2 2020\n\n\nPeople’s Bank reported quarterly net income of $2,953,000, or $0.61 per diluted share, for the 2nd quarter of 2021 compared to net income of $1,385,000, or $0.39 per diluted share, in the same quarter of 2020, a 56.4% increase. The bank recognized year-to-date net income of $5,846,000 versus $2,496,000 for the first half of 2020, a 57.3% increase from the prior year. Earnings per share for the trailing 12 months were $2.37 per share, up from $1.31 per share for the same period of 2020, an 82.5% increase. Second quarter income continued to be positively impacted by PPP fee income due to pro-ration of the remaining unamortized origination processing fees at payoff. During the quarter, the bank had a credit to the provision for loan losses, in spite of achieved portfolio loan growth, as economic indicators utilized in the ALLL methodology continued to improve. Coupled with the bank’s recent acquisition of Willamette Community Bank (WMCB) in 1st quarter, the bank was able to achieve higher earnings per share than in previous periods.\n\nDuring the quarter, deposits declined $6.4 million, or an annualized 3.5%, as the bank utilized CDAR’s to assist with managing balance sheet growth, resulting in approximately $21.6 million that was taken off balance sheet. In addition, the bank evaluated and reduced deposit rates in the recently acquired WMCB division, as a means to assist with managing the bank’s overall net interest margin. This resulted in additional deposit attrition of approximately $14.0 million during the quarter. On an annual basis, deposits grew by $318.5 million, an 80.8% increase from June 30, 2020, due in large part to the bank’s acquisition of WMCB in first quarter, but also partly due to the bank’s participation in th...