People's Bank Celebrates Success in PPP Lending
June 5, 2020
Release By: Ken Trautman, President & CEO
Medford, Oregon - People’s Bank of Commerce (OTCBB: PBCO) reports significant support of its communities in providing Paycheck Protection Program (PPP) Loans during the COVID-19 crisis. To date, the community bank has provided over 900 PPP loans totaling $91 million to small businesses. The SBA processing fee from these loans will generate $3.6 million in revenue. The bank remains committed to supporting its communities by processing applications that can be submitted for SBA authorization by the current PPP program deadline of 6/30/20.
As a result of the bank’s support of PPP, during the comparison period from March 31st to May 31st, deposits have grown by $73.3 million, reaching $384.1 million and the bank’s total assets have grown by $147.8 million to $521.9 million. The bank has utilized the Federal Reserve’s Paycheck Protection Program Liquidity Facility (PPPLF) to fund the PPP loans, as a result, Tier 1 Capital went from 11.64% to 9.93%. We anticipate the balance sheet will begin to normalize in the 3rd quarter as PPP recipients utilize the loan funds to support operations and the forgiveness phase of the program goes into effect. The bank is preparing for this next phase of the PPP program as it plans for processing of borrower requests for loan forgiveness.