CORRECTING AND REPLACING: People’s Bank of Commerce Reports 30% Increase in Quarterly Net Income

Please replace the release dated October 20, 2016, due to the following changes:

• Headline should read: “People’s Bank of Commerce Reports 30% Increase in Quarterly Net Income” (instead of 20%)
• Under Highlights for the quarter, third bullet point should read: “...increasing $10.4 million during the same period in 2015” (instead of $9.80)
• Under Highlights for the quarter, fourth bullet point should read: “...an increase of 18%” (instead of 16%)
• Under Highlights for the quarter, ninth bullet point should read: “ROE and ROA for the third quarter of 2016 were 9.59%...” (instead of 9.60%)
• Under Balance Sheet header, Ken Trautman's quote has been replaced.

The corrected release reads:

PEOPLE’S BANK OF COMMERCE REPORTS 30% INCREASE IN QUARTERLY NET INCOME

People’s Bank of Commerce (OTCBB: PBCO) announced today its financial results for the third quarter and year-to-date 2016 operations. The bank reported net income of $614,000 or $0.27 per diluted share for the third quarter of 2016, compared to net income of $472,000 or $0.21 per diluted share in the same quarter of 2015. Net income through September 30, 2016 totaled $1,360,000 or $0.61 per share compared to $1,181,000 or $0.56 per share for the same period in 2015.

Highlights for the quarter included:

• Net loans increased $9.5 million during the third quarter of 2016 compared to $5.2 million during the third quarter of 2015.
• Deposits increased $3.8 million over the past 3 months compared to increasing $9.8 million during the third quarter of 2015.
• The bank’s total assets increased $4.5 million during the third quarter of 2016 compared to increasing $10.4 million during the same period in 2015.
• Net interest income for the third quarter of 2016 totaled $2.5 million compared to $2.1 million in the third quarter of 2015, an increase of 18%.
• Non-Interest income was $590 thousand in the third quarter of 2016 compared to $605 thousand the third quarter of 2015.
• Non-interest expense was $2.1 million in the third quarter of 2016 or 0.79% of average quarterly assets compared to $2.0 million in the third quarter of 2015 or 0.89% of average quarterly assets.
• One loan for $70 thousand was on non-accrual at the end of the third quarter 2016. No loans were past due 90 days or more or on nonaccrual at the end of the third quarter in 2015.
• The bank’s year-to-date efficiency ratio was 73.31% at the end of the third quarter of 2016 compared to 79.09% for the same period in 2015.
• ROE and ROA for the third quarter of 2016 were 9.59% and 0.92%, respectively, and 8.13% and 0.84%, respectively, for the third quarter of 2015.

Balance Sheet

“Total loans for the first nine months of 2016 when compared to the prior year are up a strong 24%, which is both a factor of the continued improvement in our local economy and the migration of customers to the only remaining community bank in Southern Oregon,” noted Ken Trautman, bank President and CEO. “This has allowed the bank’s net interest income to increase and when coupled with expense control, provides for the continued improvement in our efficiency ratio. Deposits and assets increased 14% in the last twelve months, providing the liquidity needed for continued loan growth.”

Provision for Credit Losses

Continued strong loan growth has prompted a provision expense of $103 thousand in the third quarter of 2016 following a provision of $134 thousand in the second quarter of 2016 compared to a provision of $69 thousand in the third quarter of 2015 and no provision in the second quarter of 2015. At the end of the third quarter of 2016 the Allowance for Loan and Lease Losses to Loans Held for Investment totaled 1.20% compared to 1.26% at the end of the third quarter 2015.

Capital

At September 30, 2016, shareholder equity totaled $25.7 million, compared to $23.7 million at September 30, 2015. The bank’s leverage ratio was 9.6% as of September 30, 2016, compared to 10.1% at September 30, 2015. As a result of strong loan growth, the bank’s estimated total risk-based capital ratio was 13.29% as of the end of the quarter, compared to 15.05% for the same quarter in 2015. “These capital ratios continue to be above levels required for the bank to be considered “well-capitalized” according to regulatory standards,” commented Russ Milburn, Chief Financial Officer. Book value per share increased to $11.27 at September 30, 2016, compared to $10.44 one year earlier.

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.peoplesbankofcommerce.com.

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 and Grants Pass. For more information, contact Brande Cowden, Marketing Officer, 541-774-7653.

"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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20161020006683/en/