The end of the mortgage refinancing boom put a dent in earnings, but People's Bank of Commerce still scored its 15th-straight profitable quarter.
The Medford-based bank reported net earnings of $103,000, or 8 cents per share, during the first three months of the year, down $227,000, or 19 cents per share, from a year earlier.
People's Bank increased loans by 20 percent and deposits by 23 percent year-over-year, resulting in total loans of $116.5 million and deposits of $139.1 million. During 2012, the bank's deposits grew a little more than 15 percent, expanded an additional 10.5 percent during the first quarter, and continued on that trend into April. The company's assets grew 22 percent to $156.1 million at the end of March.
Noninterest income declined 13 percent during the quarter, primarily because of a reduction in mortgage loan income. On the other hand, People's Bank registered a 14 percent increase in net interest income compared with a year earlier. The institution's problem loans dwindled as well, with past-due and nonaccrual loans — where no interest is coming in — accounting for 0.04 percent of the portfolio in March, compared with 0.50 percent a year earlier.
The Bank's increase in noninterest expense was attributed to expenses associated with its new branch and corporate headquarters on Barnett Road, said Ken Trautman, president and chief executive officer. "We continue to be pleased with the trend of low noncurrent loans, which signifies the improvement in the local economy," he said.