MEDFORD, Ore.--(BUSINESS WIRE)--

People’s Bank of Commerce (OTCBB: PBCO) and Capital Associates, Inc., doing business as Steelhead Finance (Steelhead), jointly announced today the acquisition of Steelhead by People’s Bank in a cash and stock transaction.

People’s Bank is a locally owned and managed bank based in Medford, Oregon with total assets of $282 million, deposits of $253 million, loans of $202 million and five locations in Medford, Ashland, Central Point and Grants Pass.

Steelhead is a financial factoring company headquartered in Medford, Oregon, specializing in providing financial services to the trucking industry. Steelhead is a privately held company and has been in business for 36 years serving customers throughout the United States.

“We are very pleased to join forces with Steelhead and to have them become part of the People’s Bank family,” comments Ken Trautman, president and CEO of People’s Bank. “We’ve known the company and the owners of Steelhead for many years and are excited about the future growth potential,” Trautman adds.

As the only community commercial bank with headquarters south of Eugene, Steelhead will provide income diversification to the Bank’s primary revenue stream of interest from commercial and consumer lending activities.

“Income diversification is a strategic board initiative for People’s Bank,” says Trautman. “With the addition of Steelhead’s revenue, the Bank will be able to make considerable progress towards this goal.”

Roger Hull, CEO of Steelhead, will retire at the completion of the merger. “My life’s work has been building a robust and successful financial services company,” comments Hull. “While it is hard to step away, I am extremely pleased to partner with People’s Bank. They have a similar corporate culture and Steelhead’s executive leadership team has been very supportive of the transition.” Steelhead will continue to run the day-to-day operations of the company.

Steelhead’s president, Bill Stewart, will remain in the same capacity and report directly to Trautman. All employees of Steelhead are being retained after the transaction. The company will operate as a wholly owned subsidiary of People’s Bank.

“We have as good a team as you’ll find in our industry,” says Stewart. “I’m very excited to join forces with another talented team at People’s Bank. This partnership will not only provide new growth opportunities for the company but will benefit all of our clients.”

The definitive agreement was unanimously approved by the board of directors of People’s Bank and Steelhead.

A portion of the purchase price was financed through the issuance of approximately 207,500 shares of People’s Bank of Commerce common stock.

About People’s Bank of Commerce

People’s Bank of Commerce’s stock trades on the over-the-counter market under the symbol PBCO. Additional information about the Bank is available in the investor section of the bank’s website at: www.peoplesbankofcommerce.com.

Founded in 1998, People’s Bank of Commerce is the only locally owned and managed community bank in Southern Oregon. People’s Bank is a full-service bank headquartered in Medford, Oregon with branches in Medford, Ashland, Central Point and Grants Pass.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as People’s Bank or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe People’s Bank’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

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