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People’s Bank of China (OTC:People’s Bank of China) today announced its 4-year financial resultsth 2021 quarter and year-end.
Emphasize
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Fourth-quarter net income of $3 million, or $0.59 per diluted share
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Year-to-date net income of $11.5 million, or $2.44 per diluted share
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Quarterly non-PPP loans up 13.1%, year-to-date loans up 68.8%
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Fourth-quarter tax-equivalent net interest margin of 3.46% excluding factoring income
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Steelhead factoring revenue up 60.1% over Q4 2020
The PBOC reported quarterly net income of $3 million, or $0.59 per diluted share, in the fourth quarter of 2021, compared with net income of $1.7 million, or $0.45 per diluted share, in the same quarter of 2020. Net income for the 12 months of 2020 was $11.5 million, compared to $6.1 million for the 12 months of 2020, an increase of 87.1% from the prior year. Earnings per share for the trailing 12 months were $2.44 per share, up from $1.72 per share in the same period in 2020, an increase of 41.9%. Fourth quarter revenue continued to be positively impacted by PPP fee income, as $637,000 of PPP fee income was recognized during the quarter, with the remaining unamortized original processing charges prorated. Steelhead Finance also reported revenue of $2 million in the quarter, compared with $1.2 million in the fourth quarter.th 2020 quarter. During the quarter, banks set aside $139,000 for loan losses.As expected from the bank’s recent 1-year acquisition of Willamette Community Bank (WMCB)stone By the 2021 quarter, the bank was able to deliver higher EPS than ever.
During the quarter, deposits increased by $13.6 million, an annualized growth rate of 7.2%. On an annualized basis, deposits grew by $308 million, a 67.7% increase from December 31, 2020. Deposit growth during the year was attributable to a number of factors, including the bank’s acquisition of WMCB in the first quarter, the bank’s participation in the PPP lending program, and organic growth across all deposit markets. “We continued to see deposit growth, albeit at a slower pace than the previous quarter. Our focus on building and maintaining the relationships we built during the PPP push allowed us to not only grow but also retain core deposits,” commented Chief Operating Officer Joan Reukauf.
Banks continue to deploy excess liquidity into portfolios to replace deposits with the Federal Reserve Bank. At the end of the quarter, the bank’s portfolio increased by $37.7 million, an increase of 18.5% from the previous quarter.
Fourth-quarter core portfolio loan growth (excluding PPP) totaled $14.3 millionth In the fourth quarter of 2021, the annualized growth rate was 13.1%. In 2021, the bank’s portfolio lending (excluding PPP) increased by $183.7 million, an overall annual growth rate of 68.8% when the impact of the WMCB merger is included. “During 2021, the bank achieved double-digit loan growth despite continued economic volatility due to the COVID-19 pandemic and focus on the Willamette merger,” commented President Julia Beattie.
The bank took an active role in the Paycheck Protection Program (PPP) beginning in April 2020, resulting in the first round of 1,204 PPP loans totaling $121.2 million, as of December 31, 2021, excluding the first round of loans, All loans have been forgiven (including loans financed by WMCB prior to the merger of the bank with the People’s Bank of China). Likewise, the bank funded 629 loans in the second round of the Paycheck Protection Program, equivalent to a loan amount of $48.6 million. By December 31, 2021, only $6.6 million of the second round of loans had not been forgiven.
| PPP loan activity to date | |||||||||||||||||
|
as |
as |
as |
as |
||||||||||||||
| (Unit: thousand US dollars) |
December 31, 2021 * |
September 30, 2021 * |
June 30, 2021 * |
March 31, 2021 * |
|||||||||||||
|
# |
$$$ |
# |
$$$ |
# |
$$$ |
# |
$$$ |
||||||||||
| PPP loan funding | |||||||||||||||||
| Round 1 (2020 – Phases 1 and 2) |
1,204 |
$121,199 |
1,204 |
$121,199 |
1,204 |
$121,199 |
1,204 |
$121,199 |
|||||||||
| Second round (2021) |
629 |
$48,588 |
629 |
$48,588 |
629 |
$48,588 |
534 |
$45,993 |
|||||||||
| PPP loans are forgiven | |||||||||||||||||
| Round 1 (2020 – Phases 1 and 2) |
1203 |
$121,069 |
1196 |
$120,871 |
1139 |
$112,136 |
437 |
$65,540 |
|||||||||
| Second round (2021) |
607 |
$42,168 |
465 |
$25,377 |
73 |
$3,190 |
– |
$0 |
|||||||||
| Net PPP Loan Outstanding | |||||||||||||||||
| Round 1 (2020 – Phases 1 and 2) |
1 |
$130 |
8 |
$328 |
65 |
$9,063 |
767 |
$55,659 |
|||||||||
| Second round (2021) |
twenty two |
$6,420 |
164 |
$23,211 |
557 |
$45,398 |
534 |
$45,993 |
|||||||||
| Total outstanding actual balance |
twenty three |
$6,550 |
172 |
$23,539 |
622 |
$54,461 |
1,301 |
$101,652 |
|||||||||
*Includes Willamette Community Bank’s PPP activities
During the quarter, the bank’s classified assets decreased. This is the result of reducing other owned real estate. Total overdue or non-accrual loans were unchanged from the previous quarter at 0.15%. In; 4th Quarterly, the provision for loan and lease losses (ALLL) is updated based on new loan growth achieved during the quarter and updated economic expectations, which are incorporated into the bank’s analysis. As of December 31, 2021, ALLL was 0.92% of portfolio loans excluding PPP, with unallocated reserves of $0.6 million or 14.6% of reserves.
The bank’s Tier 1 leverage ratio was 8.99% as of December 31, 2021, compared to 9.36% as of the same period in 2020, and total shareholders’ equity was $79.1 million. During the quarter, the bank was able to increase capital through earnings, and assets grew along with our deposits.
Fourth quarter 2021 non-interest income totaled $2.9 million, a decrease of $351,000 from the fourth quarterth Fourth quarter of 2020. During the quarter, Steelhead Finance factoring revenue increased by $745,000, a 60.1% increase over the same period in 2020. Conversely, mortgage income decreased by $1.1 million, down 71.1% from the fourth quarter.th 2020 quarter. “4th The quarter was the strongest ever for Steelhead Finance and we are very pleased with the division’s performance in 2021,” commented CEO Ken Trautman. “Residential Mortgage in 4th Trautman added, “This quarter, we increased our focus on the Willamette region to continue to diversify our revenue streams across the bank.” During the year, the bank also updated its merger from WMCB A gain of $2.3 million in cheap purchases to reflect expected tax consequences resulted in a decrease of $317,000 in other noninterest income in the third and fourth quarters of 2021.
4-year non-interest expense totaled $5.4 millionth quarter, down $434,000 from the third quarterrd 2021 quarter. In; 4th During the quarter, the bank reversed a one-time charge accrual of $425,000 from our most recent merger, primarily due to lower-than-expected switching costs at Willamette’s former data processing vendor. The 2021 non-interest expense includes a final quarter accrued $250,000 for a $1 million bank contribution to firefighting to help meet mid- to long-term housing needs as our southern Oregon community rebuilds. This is a non-recurring item for 2021. Earnings per share for the twelve months ended December 31, 2021, excluding one-time consolidation adjustments, were $2.57, compared to $1.72 for the same period ended December 31, 2020.
About the People’s Bank of China
People’s Bank of China shares are traded on the over-the-counter market under the symbol PBCO. For more information about the bank, please visit the investor section of the bank’s website: www.peoplesbank.bank.
Founded in 1998, People’s Commercial Bank is the only locally owned and managed community bank in southern Oregon. People’s Bank of Commerce is a full-service commercial bank headquartered in Medford, Oregon with offices in Albany, Medford, Ashland, Central Point, Grants Pass, Klamath Falls, Lebanon and Cyprus Lom has branches.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements that are intended to qualify for the safe harbor conditions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can often be identified by phrases such as “believes” by the People’s Bank of China or its management. Anticipate, “anticipate,” “foresee,” “predict,” “estimate,” or other words or phrases of similar meaning. Likewise, statements herein that describe PBC’s business strategies, prospects, objectives, plans, intentions or objectives 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 the forward-looking statements.
| (USD 000) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
December 31, 2020 |
|||||||||||||
| balance sheet | |||||||||||||||||
| assets | |||||||||||||||||
| Cash and Bank Receivables |
$ |
5,194 |
|
$ |
4,561 |
|
$ |
4,752 |
|
$ |
2,819 |
|
|||||
| federal funds for sale |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|||||
| Interest-bearing deposits |
|
77,643 |
|
|
100,429 |
|
|
148,554 |
|
|
91,103 |
|
|||||
| investment securities |
|
241,564 |
|
|
203,913 |
|
|
104,155 |
|
|
25,894 |
|
|||||
| hold-for-sale loan |
|
1,408 |
|
|
2,802 |
|
|
901 |
|
|
3,407 |
|
|||||
| Loans held for investment, net of unearned income |
|
457,224 |
|
|
459,883 |
|
|
474,909 |
|
|
346,198 |
|
|||||
| Total loan amount, net of deferred fees and costs |
|
458,632 |
|
|
462,685 |
|
|
475,810 |
|
|
349,605 |
|
|||||
| loan loss provision |
|
(4,376 |
) |
|
(4,302 |
) |
|
(4,076 |
) |
|
(4,453 |
) |
|||||
| Premises and equipment, net |
|
27,304 |
|
|
27,567 |
|
|
26,878 |
|
|
21,624 |
|
|||||
| Bank Owned Life Insurance |
|
13,759 |
|
|
13,689 |
|
|
13,585 |
|
|
7,476 |
|
|||||
| other assets |
|
39,877 |
|
|
37,070 |
|
|
36,316 |
|
|
29,263 |
|
|||||
| Total assets |
$ |
859,597 |
|
$ |
845,612 |
|
$ |
805,973 |
|
$ |
523,331 |
|
|||||
| responsibility | |||||||||||||||||
| deposit | |||||||||||||||||
| Demand – no interest |
$ |
350,424 |
|
$ |
358,013 |
|
$ |
317,837 |
|
$ |
231,095 |
|
|||||
| Demand – Interest |
|
113,154 |
|
|
100,341 |
|
|
112,945 |
|
|
54,806 |
|
|||||
| Money Market and Savings |
|
276,264 |
|
|
266,004 |
|
|
250,326 |
|
|
147,481 |
|
|||||
| Fixed deposits of less than $250,000 |
|
21,140 |
|
|
22,670 |
|
|
20,613 |
|
||||||||
The full story is available on Benzinga.com
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