People's Bank reports profit for 2nd quarter

People's Bank of Commerce swung to a second-quarter profit, earning $59,000 after absorbing a $513,000 loss in 2009.

The Medford-based community bank notched earnings of 7 cents per share compared with a 56-cent-per-share loss in the same period a year earlier.

For the first six months of 2010, the bank earned $91,000 compared with the loss of $461,000 for the period last year. It marked People's fourth straight quarter of positive results.

People's Bank said its non-interest income was down 31 percent during the first two quarters of 2010, primarily due to a 52 percent reduction in mortgage lending.

The bank increased loans by $8.4 million, or 12 percent, during the past year and deposits increased $6.9 million, or 8 percent.

"The increased regulatory environment that we face has pleasantly provided the bank new opportunities," President and Chief Executive Officer Ken Trautman said in a statement. "As our competition works to improve their capital and non-performing asset levels, we have been actively looking for and making good loans to local businesses."

People's loan quality has improved over this time last year as well, with non-current loans to total loans comprising 3.8 percent of the overall portfolio compared with 4.8 percent last year. Loan loss provisions were $224,000 compared with $1,039,000 a year earlier.

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