People’s Bank of Commerce cranked out a 30 percent gain in third-quarter profit, reflecting a stronger local economy.
The Medford-based bank reported net income of $614,000, or 27 cents per share, sompared to $472,000 a year ago. Loans grew 24 percent year-over-year, and deposits and assets were up 17 percent.
"A lot of that is growth in local business accounts," said Ken Trautman, president and CEO. "We see it as a factor that the community is doing better economically. A good percentage of our customers are just doing better."
Loans increased $9.5 million during the third quarter compared to $5.2 million a year ago. Deposits rose $3.8 million during the quarter, though not as rapidly as they did in the same period a year ago, when they jumped $9.8 million.
With the expansion at Northgate Marketplace, Trautman expects to see an impact on local businesses.
"The employees they are hiring will be buying products from local companies, and that works its way through the economy," he said.
Although just 8 percent of the bank's loans are in residential real estate, Trautman said market indicators are solid.
"We don't see anything disrupting residential real estate, no bubbles out there," he said. "Real estate prices have increased, but not like they did in 2004 to 2006."
Through nine months, People's Bank had net income of $1.4 million, or 61 cents per share, compared to $1.2 million, or 56 cents per share, for the same period in 2015.