By Press Release https://www.peoplesbank.bank/about/press-release---april-20-2022
PBCO Financial Corporation (OTC PINK: PBCO), the holding company of People’s Bank of Commerce, announced today its nancial results for the 1st quarter 2022. As a result of the PBCO Financial Corporation reorganization and merger effective February 28, 2022, the current period nancial discussion and summary balance sheet and income statement in this release re ect PBCO Financial Corporation on a consolidated basis, while the comparative prior periods are People’s Bank of Commerce results only. As the results of operations presented are substantially from the performance of People’s Bank of Commerce, management believes there is not a material difference related to disclosing the current and comparative results as presented. Highlights • First quarter net income of $2.4 million, or $0.47 per diluted share • Steelhead gross factoring revenue of $2.0 million, an increase of 53% over Q1 2021 • Holding company reorganization completed • Issued $25.0 million in aggregate principal amount of xed-to- oating rate subordinated notes • $22.5 million capital investment in People’s Bank of Commerce, increasing the Tier 1 Capital Ratio to 11.25% The Company reported quarterly net income of $2.4 million, or $0.47 per
PBCO Financial Corporation Reports Q1 2022 Earnings
diluted share, for the 1st quarter of 2022 compared to net income of $2.9 million, or $0.69 per diluted share, in the same quarter of 2021. Earnings per share for the trailing 12 months were $2.18 per share, up from $2.07 per share for the prior twelve-month period. “Although earnings were impacted by the absence of income from PPP, the bank performed according to expectations during 1st quarter. Steelhead Finance continued to demonstrate strong performance with $2.0 million in revenue during Q1 2022, versus $1.3 million in Q1 2021,” said Lindsey Trautman, Chief Financial Of cer. During the quarter, the bank made a provision for loan losses of $266 thousand. “The rst quarter of 2022 represents the rst time in two years that earnings are not materially impacted by PPP loans or merger related adjustments and more closely represent core bank earnings,” commented Ms. Trautman. Deposits increased $33.9 million, a 4.4% increase from the prior quarter ending December 31, 2021. On an annual basis, deposits grew by $78.8 million, an annualized 17.7% growth rate. “Since the merger with Willamette Community Bank March 2021, People’s Bank continued to grow deposits with a strong focus on maintaining relationships with existing clients while increasing market share in our recently
acquired markets,” commented Joan Reukauf, Chief Operating Of cer. “Core portfolio loan growth, excluding PPP, was down $1.0 million during the 1st quarter of 2022, compared to Q4 2021, due to several early payoffs, including a previously classi ed loan and a loan prepaid due to a business sale,” commented Julia Beattie, President. “We continue to see strong competition for loans in our northern market, with rate being the driving factor,” added Beattie. PPP loans outstanding at quarter end were $2.6 million, with only four loans remaining. During the quarter, the bank experienced a decrease in classi ed assets, the result of a reduction in both Other Real Estate Owned and in classi ed loans. Total loans past due or on non-accrual increased, as a percentage of total loans, from the prior quarter to 0.21% versus 0.15% as of Q4 2021. During 1st quarter, the Allowance for Loan and Lease Losses (ALLL) was updated based on changes in loans and updated economic expectations, which were factored into the bank’s analysis. As of March 31, 2022, the ALLL was 1.03% of portfolio loans excluding PPP and the unallocated reserve stood at $620 thousand or 13.5% of the allowance. First quarter 2022 non-interest income totaled $3.3 million, a decrease of $2.2
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Southern Oregon Business Journal May 2022 | 39 fi
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COMMUNITY BANKING
