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MEDFORD, Ore.--([ BUSINESS WIRE ])--Peopleas Bank of Commerce (OTCBB:PBCO) reported today that its earnings for the first quarter of 2012 were $227,000, compared to $97,000 during the first quarter of 2011. The bank reported earnings of $0.20 per share for the three months ending March 31, 2012, compared to $0.08 per share in 2011. People's Bank had a 16 percent increase in net interest income in the first quarter of 2012 when compared to the same period last year. Non-interest income was up 53 percent from the prior year during the first quarter of 2012 primarily due to a large increase in mortgage loan income, reflective of strong home lending activity.

"The first quarter in 2012 has exceeded our expectations and we look forward to the opportunities before us in the upcoming months"

The bank increased average portfolio loans by $1.8 million and average deposits by $4.3 million during the first quarter when compared to the prior quarter. People's Bank reported total assets of $128.3 million at the end of March 2012, up 17 percent from last year. Total loans of $99.6 million were up 17 percent, and total deposits of $112.6 million were up 18 percent when compared to the same period in 2011.

aConsistent loan and deposit growth over the previous year and an active mortgage lending market has produced strong earnings for the bank,a said Ken Trautman, President and CEO of Peopleas Bank. aWe are pleased with the results of the first quarter, which showed net profit up 135 percent. Additionally, the bankas loan-to-deposit ratio of 86 percent, as of March 2012, shows continued support to our community, as every dollar on deposit provides $0.86 cents to local businesses and individuals for their borrowing needs.a

Peopleas Bankas quarterly average net interest margin remains strong at 4.80 percent, down slightly from 4.97 percent during the same period in 2011. Compared to $58,000 in 2011, the provision for loan loss expense of $72,000 in the first quarter of 2012 provided a reserve-to-total loan ratio of 1.66 percent. The increase in loan loss expense was primarily the result of strong growth in total loans. Past due and nonaccrual loans to total loans was 0.50 percent as of March 2012. aWe are pleased with the continuing trend of significantly low non-current loans which signifies not only the diligent efforts of staff working with borrowers but the slight improvement in the local economy,a said Trautman.

aThe first quarter in 2012 has exceeded our expectations and we look forward to the opportunities before us in the upcoming months,a said Jeri Reno, Chief Operating Officer of Peopleas Bank. aThe bank's fourth branch is slated to open in South Medford in December 2012, and will house a full-service branch, including a commercial lending center, as well as administrative offices. We are excited to extend our exceptional bankers, products and services to this area of Jackson County, which has a strong and growing business community.a

At March 31, 2012, the bank had total shareholdersa equity of more than $13.9 million and a book value of $11.62 per share. The stock trades on the over-the-counter market under the symbol PBCO.

aSafe Harbora 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 Peopleas Bank or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe Peopleas Bankas 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.