Document text
0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Josephine County brothers die in single-car crash ... Since You Asked: Pedestrians can be cited for carelessness ... Wolf once believed to be dead shows up near Crater Lake ... Josephine County brothers die in single-car crash ... Since You Asked: Pedestrians can be cited for carelessness ... Wolf once believed to be dead shows up near Crater Lake ... COMMUNITY BANKING Broader lending targets pay off for People's Bank of Commerce Comment By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Jul. 21, 2015 at 4:38 PM By Greg Stiles Mail Tribune Posted Jul. 21, 2015 at 4:38 PM » Social News People's Bank of Commerce reported earnings reminiscent of the real estate boom era during the second quarter, with a twist. In the post-Great Recession days, the Medford-based financial institution has broadened its horizons and the components of its loan portfolio, spread across the local business spectrum. "Going back to 2005-2006, we made a ton of money on construction loans," said Chief Financial Officer Russ Millburn. "That was high risk, and fortunately, we got the high rewards. For some of the other banks around here, it was high risk and not much reward." For the quarter ending June 30, People’s Bank of Commerce reported earnings of $375,000, or 18 cents per share, a 23-percent jump over the $303,000, or 15 cents per share, during the second quarter of 2014. Of the $72 million in loans the bank had out in December of 2006, $43 million in commercial accounts, $22 million in real estate and $3.5 million in consumer loans, Millburn said. "We call it concentrations of credit, we just don't have those big concentrations like we used to." Today, $5 million out of the bank's $150 million loans, about 3 percent, are for construction and land development, another $4 million is wrapped up agriculture loans, such as farm land, wine grape production and cattle, he said. People's Bank has honed in on small business lending, from retail and manufacturing to office and medical space. "There is a lot of competition in multifamily space and medical space," Millburn said. "Retail and office space are providing the biggest demand. We're trying not to drop too many eggs in one basket. What we're really wanting is small businesses with typical business needs and operating lines." For the first half of 2015, People's Bank reported earnings of $709,000, 35 cents per share, versus $507,000, or 26 cents per share, during the first six months of 2014. The bank's net interest income grew 15 percent in the second quarter, while mortgage income totaled $312,000, up 45 percent. “Our mortgage division has benefited greatly by today’s low loan rates and the desire of many home owners and purchasers to lock in these historically low rates before rates increase,” CEO and President Ken Trautman said. “Our loan pipeline remains strong and our mortgage production continues to outpace last year." Reach reporter Greg Stiles at 541-776-4463 or [email protected] . Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at https://www.facebook.com/greg.stiles.31 , and read his blog at www.mailtribune.com/EconomicEdge . By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Jul. 21, 2015 at 4:38 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501