People's Bank reports ninth profitable quarter in a row

People's Bank of Commerce has strung together nine-straight profitable quarters since mid-2009.

The Medford-based bank's earnings decreased 4 percent in third-quarter to $155,000, compared to $162,000 for the same period in 2010. But through the first nine months of year, People's Bank of Commerce earnings improved 25 percent to $315,000, over the $253,000 earned during the same period in 2010.

The bank's per-share earnings for the three-month period ending Sept. 30 were 14 cents compared to 18 cents per share in 2010, while its per-share earnings through Sept. 30 both years was 28 cents.

While People's Bank's loan-loss provisions climbed to $163,000 from $66,000 a year earlier in the third quarter, money set aside for loan losses has declined 11 percent to $258,000.

According to recently released data compiled by the Portland District Office of the Small Business Administration, from Oct. 1, 2010, through Sept. 30, 2011, People's Bank of Commerce produced the fifth-most small-business loan approvals granted by the agency in Oregon. People's Bank produced 62 SBA-approved loans, trailing only US Bank, Wells Fargo, West Coast Bank and Key Bank.

Through September, the People's Bank total loan portfolio increased 14 percent, spurred by 22 percent growth in commercial loans and a 24 percent rise in consumer loans. People's Bank noncurrent loans to total loans fell to 0.27 percent, down from 3.03 percent a year ago.

People's Bank total assets increased 13 percent year over year to $118.2 million.

The bank said noninterest income was down 2 percent during the first three quarters of 2011, compared with last year, primarily because of a 39 percent reduction in mortgage-lending income, as residential real-estate lending remained slow.

Reach reporter Greg Stiles at 541-776-4463 or email business@mailtribune.com.

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