Peoples Bank of Commerce posts higher Q3 profit and EPS on deposit growth

what happened

Peoples Bank of Commerce, a U.S. commercial bank, reported that its third-quarter net income and earnings per share rose from the previous quarter. Its net interest margin climbed to 4.38%. Portfolio loans grew 1.6% from the prior quarter, and the company said credit quality stayed strong.

Deposit balances rose 3%, driven by higher non-interest-bearing demand deposits and brokered funding. Non-interest income increased mainly because the bank recognized revenue lost in the prior year and recovered legal expenses. Non-interest expenses rose on merger-related professional fees.

According to the company's press release, EPS was $0.51, net income $2.62 million, net interest income $7.65 million and pretax profit $3.55 million. The company did not provide guidance for future quarters or the full year. Source: Reuters, which said the story was produced using automation and LSEG and company data, then checked and edited by a Reuters journalist.

why it matters

For markets this is a small regional bank report, but it shows how deposit growth and a wider margin can lift earnings at institutions of this size. The lack of guidance leaves investors with fewer benchmarks for judging the outlook.

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