People's Bank of Commerce capped a year of solid growth by reporting a fourth quarter profit of $301,000.
The Medford-based community bank earned 17 cents per share. It earned $199,000, or 16 cents per share, for the same quarter in 2012, as net interest income grew 17 percent.
For all of 2013, People's Bank earned $886,000, or 59 cents per share, compared with earnings of $875,000, or 71 cents per share, during 2012.
The bank reported a 25 percent increase in total assets to $181.1 million, a 26 percent increase in deposits to $158.3 million and a 12 percent increase in portfolio loans to $125.7 million.
On the heels of moving its headquarters to Barnett Road in late 2012, the bank added a new branch in Grants Pass in 2013.
Mortgage lending dropped 34 percent last year resulting in an 11 percent decline in non-interest income.
President and Chief Executive Officer Ken Trautman said his bank followed the rest of the industry in home loan declines as 30-year mortgage rates rose to 4.5 percent from 3.35 percent at the end of 2012.
"The good news is that the local residential real estate market continues to show improvement even though inventory levels remain historically low and the increase in interest rates has slowed the refinance market," Trautman said.