Peoples Bank News

Quarterly Newsletter Vol 12 No 4


Quarterly Newsletter Vol 12 No 3

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Quarterly Newsletter: Volume 12 No 2

Quarterly Newsletter: Volume 12 No 1

Quarterly Newsletter | Vol 11. No. 4


Quarterly Newsletter | Vol 11. No. 3


Letter to Peoples Bank Stockholders

“Do not go where the path may lead, go instead where there is no path and leave a trail.” – Muriel Strode

We are fortunate to live and work in West Texas. We have beautiful sunrises and sunsets, great days of weather (when the wind is not blowing) and some of the friendliest people you would ever want to call your neighbor. On top of that, we have a great heritage from people who forged a way of life in these lands. Some of those people were Cowboys on historic cattle drives, who endured many dangerous and changing conditions to see their task to completion. In fact, if you rode for a cattle company, it was said you were “Riding for the Brand”. It was an expression that a “ranch's trademark represented pride, duty, and stewardship while inspiring loyalty, dedication, and cowboy camaraderie.” It was a way of life. It was the Cowboy way.

In a sense, we are “Riding for our Brand”, the Peoples Bank brand. We are extremely proud of what our Company has accomplished since August 1999. We also feel a sense of duty to our core constituents (employees, shareholders communities) and we are fiercely loyal to those same groups as we steward them to financial success in their lives. And, if you have been around us for any length of time, you know we have a great deal of fun and camaraderie in our Peoples Bank family! Ours is a unique culture that we have intentionally built over the years. It’s a culture that works well for us in West Texas as you’ll see in our Company’s 2016 financial performance below.

We are coming off another excellent year of financial performance for our Company. We enjoyed an outstanding year of operations that led to another strong increase in net income, loans, deposits and capital. Asset and deposit growth continue to be strong due to good economic conditions and a favorable year for our crop producers. All of our locations saw good growth in volumes and numbers of accounts. In fact, the 82nd street branch was recognized nationally by one of our vendors for “excellence in business customer growth”. Finally, we managed our capital in a way that not only supports growth, but also provides for a good return on investment. 2016 is highlighted by a Return on Assets (ROA) of 1.07%, a Return on Equity (ROE) of 10.88% and a high for total assets of $462 million in November 2016.



% increase

Net Income

$4.46 million



$346.1 million



$434.8 million



$392.7 million



$36.1 million



Net income increased in 2016 due to strong loan demand, fee income from mortgages, checking account growth and an increase in interest rates by the Federal Reserve. For our depositors, that also meant a slight increase in deposit rates, a welcome sign after 8 long years. Peoples Bank remains a top performer in most every important banking metrics for asset and shareholder returns, earnings margins and asset quality. Total deposits continue to grow as we added an additional 1,000 checking accounts to our customer base and our branch transactions increased year-over-year.   In fact, our branches in Lubbock are so busy we’ve decided to build another one in South Lubbock by the fall of 2017. Finally, we paid our first dividend to our shareholders in April 2016. Although only a small dividend, it was a huge success with our shareholders as it recognized years of support for the bank since its inception. Peoples Bank remains a “Well Capitalized” financial institution for regulatory purpose and has a strong working relationship with its banking regulators.

2017 brings many changes, countless opportunities and challenges for our Company. First, we have a new administration in Washington, D.C. along with a new Congressman representing our District. Hopefully, through them, we’ll see tangible regulatory relief for community banks like Peoples Bank. Second, we are encouraged by the record crop production in 2016 and the increase in prices/demand for producer’s goods. But there are still challenges for our cotton producers, including weather conditions, the need for better legislation and improved foreign trade. Third, as mentioned earlier in this letter, we are excited about the growth opportunities in Lubbock through our new branch at 112th and Quaker. Led by Senior Vice President Stephen Leist, we are expecting this branch to help grow our market presence in Lubbock while also providing some daily relief to our two other Lubbock locations. If you have been in our drive through on a Friday afternoon, I’m sure you’ll appreciate the new branch location. Finally, we remain challenged by the regulatory environment where compliance and capital costs are ever increasing. In fact, some regulatory relief may be contingent on banks holding more capital. For this reason, we have elected not to pay a dividend in 2017 as we will retain those monies for future growth and increasing regulatory requirements.

Like the Cowboys who rode for the Brand, we get a satisfaction out of doing our job every day. We enjoy seeing our customers succeed in their financial endeavors and toward their financial goals. We value the relationships formed with our fellow employees who are a second family to us. We are proud of the communities we serve, live in and develop every day. Most of all, we recognize that none of our accomplishments would be possible if it weren’t for your continued support, business, capital and belief in us. It is reassuring to know that we have a shareholder base that believes in the same core values and philosophies that we carry out every day.  It is because of this strong support and all the people that are affiliated with our Company that I can say our future is very bright and our Brand is strong!

Best Regards,


Larry C. Allen
Chairman of the Board & Chief Executive Officer

Quarterly Newsletter |  Vol. 11, No. 1

Quarterly Newsletter |  Vol. 10, No. 4

Quarterly Newsletter |  Vol. 10, No. 3