People's Bank Declares 5% Stock Dividend.

MEDFORD, Ore. -- The board of directors of People's Bank of Commerce (OTCBB:PBCO) announced that it had declared a five percent stock dividend - for the sixth year in a row. The five percent stock dividend will be paid on or about April 16, 2007 to shareholders of record March 15, 2007.

Mike Sickels, chairman and chief executive officer, commented "as we approach our 9th anniversary, it is our privilege to once again recognize and reward the loyalty and support of our shareholders. The success of the bank is due to the tremendous support of the many shareholders and customers who live and work here in the Rogue Valley. This is the sixth consecutive year that the bank has paid a five percent stock dividend." Sickels noted that in addition to this annual stock dividend, the bank also pays a quarterly cash dividend that was initiated last year. "Combined with the quarterly cash dividends, this 5 percent stock dividend results in a very attractive return to many shareholder investors," said Sickels.

The locally-owned community bank, which celebrates its ninth anniversary on March 2nd, recently announced record earnings of $1,213,000 in 2006.

"After a record performance in 2006, early indications suggest that earnings will be challenged in the current year. Earnings in 2007 will be challenged by the full-year costs of operating the bank's first new full-service branch building, opened in Ashland in December, the softening of the local real estate market and declining interest margins," noted Sickels.