REDDING, Calif., April 30 /PRNewswire-FirstCall/ --
Patrick J. Moty, President & CEO of Bank of Commerce Holdings (NASDAQ:BOCH), a $765 million financial services holding company, and parent company of Redding Bank of Commerce(TM), Roseville Bank of Commerce(TM), and Bank of Commerce Mortgage(TM) today announced first quarter 2009 operating results.
"The mark of an exceptional company is consistently good performance relative to that of its competitors and peers, regardless of economic conditions and competitive threats. We believe that Redding Bank of Commerce meets the mark. There has been a considerable slowdown in the economy and no one can say with assurance where it is headed. What we do know is that the best companies capitalize on their strength to grow aggressively in downturns and we are very proud of our financial results," said Patrick J. Moty, President and CEO.
1st Quarter 2009 Highlights
-- Net Income of $1,270,000 up 3.4% over Q1 2008
-- Average earning assets up $134.7 million or 23.0%
-- Average loans up $20.3 million or 4.02%
-- Core deposits up $22.2 million or 8.7%
-- Provision for loan loss of $1.4 million
-- Total risk based capital of 12.69%
-- Diluted EPS of $0.12
-- 2009 1st quarter common stock cash dividends declared of $522,700
Our balance sheet has changed substantially over the first quarter from a year ago.
Total assets are up $114.1 million or 17.5%, loans have increased by $18.8 million and total deposits have increased by $63.6 million.
The capital ratios of Redding Bank of Commerce continue to be above the well-capitalized guidelines established by bank regulatory agencies. Total risk-based capital to risk-weighted assets was 12.69% at March 31, 2009.
Average loans, the largest component of average earning assets, increased $20.3 million or 4.02% on average compared with same period a year ago. Average securities including federal funds sold increased $114.4 million over the same period a year ago. The yield on earning assets decreased to 5.37% for the three-month period ended March 31, 2009 compared to 6.80% for the same period in the prior year. The decrease is primarily due to multiple interest rate drops during the period.
Average interest-bearing deposits for the three-months ended March 31, 2009 increased $69.7 million or 17.5% compared with the same period in the prior year. Average non-interest bearing deposits have increased by $7.8 million or 11.7% over the prior year three-month period.
The overall cost of interest-bearing liabilities for the first three-months of 2009 was 2.13% compared with 3.58% for the first three-months of 2008. The decreased cost was primarily a result of the drop in interest rates during the period coupled with refinancing of FHLB borrowings at lower interest rates.
The net effect of the changes discussed above resulted in an increase of $980,000 or 18.1% in net interest income for the three-month period ended March 31, 2009 from the same period in 2008. The net interest margin decreased 15 basis points to 3.55% from 3.70% over the same period a year ago.
The Company continues to be aggressive in identifying non-performing assets. Non-performing assets were 2.94% of total assets as of March 31, 2009 compared to 2.98% at December 31, 2008.
On April 20, 2009 the Bank sold non-performing loans of $14.3 million with recoveries of $227,000. Following the loan sale, non performing assets to total assets were 1.08% compared to 2.94% of total assets at 03/31/09.
The allowance for loan and lease losses totaled $7.7 million at March 31, 2009 compared to $5.8 million at March 31, 2008.
The Company's allowance for loan losses was 1.45% of total loans at March 31, 2009 and 1.14% at March 31, 2008. Provisions for loan losses for the quarter ended March 31, 2009 were $1,425,000 compared to $600,000 for the same quarter in 2008.
During the first quarter 2009, $116.8 million in total loans were processed.
Bank of Commerce Holdings, with administrative offices in Redding, California is a financial service holding company that owns Redding Bank of Commerce(TM), Roseville Bank of Commerce(TM), and Bank of Commerce Mortgage(TM).
The Company is a federally insured California banking corporation and opened on October 22, 1982.
BOCH is a NASDAQ National Market listed stock. Please contact your local
investment advisor for purchases and sales. Investment firms making a
market in BOCH stock are:
Howe Barnes Hoefer & Arnett Investment Inc. /
John T. Cavender
555 Market Street
San Francisco, CA (800) 346-5544
Hill, Thompson, Magid & Co. Inc /
R.J. Dragani
15 Exchange Place, Suite 800
Jersey City, New Jersey 07030 (201) 369-2908
Keefe, Bruyette & Woods, Inc. /
Dave Bonaccorso
101 California Street, 37th Floor
San Francisco, CA 94105 (415) 591-5063
Sandler & O'Neil /
Bryan Sullivan
919 Third Avenue, 6th Floor
New York, NY 10022 (888) 383-3112
Raymond James Financial /
Geoff Ball
1805 Hilltop Drive, Suite 106
Redding, CA (800) 926-5040
This quarterly press release includes forward-looking information, which is subject to the "safe harbor" created by the Securities Act of 1933, and Securities Act of 1934. These forward-looking statements (which involve the Company's plans, beliefs and goals, refer to estimates or use similar terms) involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors:
-- Competitive pressure in the banking industry and changes in the
regulatory environment.
-- Changes in the interest rate environment and volatility of rate
sensitive assets and liabilities.
-- The health of the economy declines nationally or regionally which
could reduce the demand for loans or reduce the value of real estate
collateral securing most of the Company's loans.
-- Credit quality deteriorates which could cause an increase in the
provision for loan losses.
-- Losses in the Company's merchant credit card processing business.
-- Asset/Liability matching risks and liquidity risks.
-- Changes in the securities markets.
For additional information concerning risks and uncertainties related to the Company and its operations please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and under the heading:
"Risk factors that may affect results" and subsequent reports on Form 10-Q and current reports on Form 8-K. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
http://www.bankofcommerceholdings.com/
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, Dec. 31, March 31,
2009 2008 2008
Dollars in thousands --------- ------------ ---------
ASSETS
Cash and due from banks $38,965 $33,716 $12,737
Federal funds sold and securities
purchased under agreements to
resell 56,655 51,475 25,995
------ ------ ------
Cash and cash equivalents 95,620 85,191 38,732
Securities available-for-sale
(including pledged collateral of
$66,210 at March 31, 2009, $68,735
at December 31, 2008 and $57,274
at March 31, 2008) 105,538 131,687 62,090
Securities held-to-maturity, at
cost (estimated fair value of
$10,646 at March 31, 2008) - - 10,421
Loans, net of the allowance for
loan losses of $7,701 at March 31,
2009, $8,429 at December 31, 2008
and $5,815 at March 31, 2008 525,182 518,946 506,374
Bank premises and equipment, net 10,553 10,672 11,370
Other assets 28,443 27,718 22,248
------ ------ ------
TOTAL ASSETS $765,336 $774,214 $651,235
======== ======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Demand - noninterest bearing $66,351 $79,988 $71,722
Demand - interest bearing 138,231 143,871 140,624
Savings accounts 72,873 67,136 42,946
Certificates of deposit 270,490 264,287 229,006
------- ------- -------
Total deposits 547,945 555,282 484,298
Securities sold under agreements to
repurchase 10,813 13,853 12,455
Federal Home Loan Bank borrowings 120,000 120,000 85,000
Other liabilities 7,716 7,036 7,633
Junior subordinated debt payable to
unconsolidated subsidiary grantor
trust 15,465 15,465 15,465
------ ------ ------
Total Liabilities 701,939 711,636 604,851
Commitments and contingencies
Stockholders' Equity:
Preferred stock (liquidation
preference of $1,000 per share;
issued 2008) 2,000,000 authorized;
17,000 shares issued and
outstanding in 2009, and December
31, 2008, no shares issued and
outstanding at March 31, 2008 16,573 16,551 -
Common stock , no par value,
50,000,000 shares authorized;
8,711,495 shares issued and
outstanding at March 31, 2009,
8,711,495 at December 31, 2008 and
8,707,745 at March 31, 2008 9,679 9,650 9,550
Common Stock Warrant 449 449 -
Retained earnings 36,541 36,009 37,135
Accumulated other comprehensive
income (loss), net of tax 155 (81) (301)
--- ---- -----
Total stockholders' equity 63,397 62,578 46,384
------ ------ ------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $765,336 $774,214 $651,235
======== ======== ========
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
Dollars in thousands, March 31, December 31, March 31,
except for per share data 2009 2008 2008
--------- ------------ ---------
Interest income:
Interest and fees on loans $8,049 $8,028 $9,131
Interest on tax-exempt
securities 296 313 274
Interest on U.S.
government securities 1,192 873 481
Interest on federal funds
sold and securities purchased
under agreements to resell 25 39 58
Interest on other
securities 117 81 22
--- -- --
Total interest income 9,679 9,334 9,966
----- ----- -----
Interest expense:
Interest on demand
deposits 307 411 750
Interest on savings
deposits 281 383 290
Interest on certificates
of deposit 1,881 1,975 2,376
Securities sold under
repurchase agreements 14 22 84
Interest on FHLB and other
borrowings 581 638 731
Interest on junior
subordinated debt payable
to unconsolidated
subsidiary grantor trust 215 263 315
--- --- ---
Total interest expense 3,279 3,692 4,546
----- ----- -----
Net interest income 6,400 5,642 5,420
Provision for loan and
lease losses 1,425 3,620 600
----- ----- ---
Net interest income after
provision for loan and
lease losses 4,975 2,022 4,820
----- ----- -----
Noninterest income:
Service charges on deposit
accounts 92 108 62
Payroll and benefit
processing fees 134 118 129
Earnings on cash surrender
value - Bank owned life insurance 86 86 83
Net gain on sale of
securities
available-for-sale 404 33 242
Net loss on sale of
derivative swap
transaction - - (225)
Merchant credit card
service income, net 74 85 83
Mortgage brokerage fee
income - 4 10
Other income 75 156 181
-- --- ---
Total noninterest income 865 590 565
--- --- ---
Noninterest expense:
Salaries and related
benefits 2,127 2,001 1,949
Occupancy and equipment
expense 572 1,339 644
FDIC insurance premium 273 99 58
Data processing fees 111 52 78
Professional service fees 159 270 118
Payroll processing fees 34 30 33
Deferred compensation
expense 119 120 111
Stationery and supplies 53 70 62
Postage 81 30 34
Directors' expense 37 71 48
Other expenses 394 425 430
--- --- ---
Total noninterest expense 3,960 4,507 3,565
----- ----- -----
Income (Loss) before
provision for income
taxes 1,880 (1,895) 1,820
Provision (Benefit) for
income taxes 610 (1,237) 591
--- ------- ---
Net income (loss) $1,270 $(658) $1,229
====== ====== ======
Less preferred dividend
and accretion on
preferred stock ($237) ($0) ($0)
Income available to common
shareholders $1,033 ($658) $1,229
Basic earnings (loss) per
share $0.12 ($0.07) $0.14
Weighted average shares -
basic 8,711 8,755 8,719
Diluted earnings (loss)
per share $0.12 ($0.07) $0.14
Weighted average shares -
diluted 8,711 8,802 8,748
Cash dividends per share $0.06 $0.08 $0.08
Average Balances, Interest Income/Expense and Yields/Rates Paid
(Unaudited, Dollars in thousands)
Three Months Ended Three Months Ended
March 31, 2009 March 31, 2008
-------------- --------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
Earning Assets
Portfolio Loans (1) $524,367 $8,049 6.14% $504,091 $9,131 7.25%
Tax-exempt Securities (2) 29,304 296 4.04% 27,901 274 3.93%
US Government
Securities 11,316 127 4.49% 15,272 142 3.72%
Mortgage backed
Securities 80,263 1,065 5.31% 29,055 339 4.67%
Federal Funds Sold 38,222 25 0.26% 8,014 58 2.89%
Other Securities 37,557 117 1.25% 2,000 22 4.40%
------ --- ----- ----- -- -----
Average Earning Assets $721,029 $9,679 5.37% $586,333 $9,966 6.80%
------ ------
Cash & Due From Banks $17,614 $12,708
Bank Premises 10,623 11,303
Allowance for Loan
Losses ( 8,402) ( 8,441)
Other Assets 27,814 20,116
------ ------
Average Total Assets $768,678 $622,019
======== ========
Interest Bearing
Liabilities
Demand Interest Bearing $137,608 $307 0.89% $141,709 $750 2.12%
Savings Deposits 65,803 281 1.71% 41,195 290 2.82%
Certificates of Deposit 265,296 1,881 2.84% 216,051 2,376 4.40%
Repurchase Agreements 11,940 14 0.47% 13,052 84 2.57%
FHLB Borrowings 120,000 581 1.94% 80,569 731 3.63%
Trust Preferred
Borrowings 15,000 215 5.73% 15,000 315 8.40%
------ --- ----- ------ --- -----
615,647 $3,279 2.13% 507,576 $4,546 3.58%
------ ------
Noninterest bearing
demand 74,637 66,825
Other Liabilities 5,219 995
Stockholders' Equity 73,175 46,623
------ ------
Average Liabilities and
Stockholders' Equity $768,678 $622,019
======== ========
Net Interest Income and Net
Interest Margin $6,400 3.55% $5,420 3.70%
====== ======
(1) Average non-performing loans of $19.8 million are included
(2) The yield on tax-exempt securities has not been adjusted to a
tax-equivalent yield basis.
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Quarterly Financial Condition Data
(Unaudited)
For the Quarter Ended
March Dec. Sept. June March
31, 31, 30, 30, 31,
2009 2008 2008 2008 2008
Dollars in thousands,
except for per share
data
Interest income:
Interest and fees on loans $8,049 $8,028 $8,252 $8,171 $9,131
Interest on tax-exempt
securities 296 313 308 302 274
Interest on U.S. government
securities 1,192 873 582 533 481
Interest on federal funds
sold and securities
purchased under agreements
to resell 25 39 116 90 58
Interest on other
securities 117 81 13 23 22
--- -- -- -- --
Total interest income 9,679 9,334 9,271 9,119 9,966
Interest expense:
Interest on demand deposits 307 411 514 498 750
Interest on savings
deposits 281 383 543 360 290
Interest on certificates of
deposit 1,881 1,975 1,963 2,238 2,376
Securities sold under
repurchase agreements 14 22 32 35 84
Interest on FHLB and other
borrowings 581 638 662 781 731
Interest on junior
subordinated debt payable
to unconsolidated
subsidiary grantor trust 215 263 317 161 315
--- --- --- --- ---
Total interest expense 3,279 3,692 4,031 4,073 4,546
Net interest income 6,400 5,642 5,240 5,046 5,420
Provision for loan and
lease losses 1,425 3,620 1,300 1,000 600
Net interest income after
provision for loan and
lease losses 4,975 2,022 3,940 4,046 4,820
Noninterest income:
Service charges on deposit
accounts 92 108 91 50 62
Payroll and benefit
processing fees 134 118 107 99 129
Earnings on cash surrender
value - bank owned life
insurance 86 86 86 85 83
Net gain on sale of
securities
available-for-sale 404 33 159 194 242
Net loss on sale of
derivative swap
transaction - - - - (225)
Merchant credit card
service income, net 74 85 99 97 83
Mortgage brokerage fee
income - 4 2 5 10
Other income 75 156 207 187 181
-- --- --- --- ---
Total noninterest income 865 590 751 717 565
Noninterest expense:
Salaries and related
benefits 2,127 2,001 1,909 1,892 1,949
Occupancy and equipment
expense 572 1,339 613 640 644
FDIC insurance premium 273 99 113 113 58
Data processing fees 111 52 81 65 78
Professional service fees 159 270 146 133 118
Payroll processing fees 34 30 26 27 33
Deferred compensation
expense 119 120 118 113 111
Stationery and supplies 53 70 50 80 62
Postage 81 30 32 38 34
Directors' expense 37 71 81 94 48
Other expenses 394 425 443 418 430
--- --- --- --- ---
Total noninterest expense 3,960 4,507 3,612 3,613 3,565
Income (loss) before
provision for income taxes 1,880 (1,895) 1,079 1,150 1,820
Provision (benefit) for
income taxes 610 (1,237) 362 244 591
Net income (loss) $1,270 $(658) $717 $906 $1,229
====== ====== ==== ==== ======
Less preferred dividend and
accretion on preferred
stock ($237) ($0) ($0) ($0) ($0)
Income available to common
shareholders $1,033 ($658) $717 $906 $1,229
Basic earnings (loss) per
share $0.12 ($0.07) $0.08 $0.10 $0.14
Weighted average shares -
basic 8,711 8,755 8,711 8,748 8,719
Diluted earnings (loss) per
share $0.12 ($0.07) $0.08 $0.10 $0.14
Weighted average shares -
diluted 8,711 8,802 8,713 8,751 8,748
Cash dividends per share $0.06 $0.08 $0.08 $0.08 $0.08
DATASOURCE: Bank of Commerce Holdings
CONTACT: Patrick J. Moty, President & CEO, +1-530-722-3953, or Linda J.
Miles, Chief Financial Officer, +1-530-722-3955, both of Bank of Commerce
Holdings
Web Site: http://www.bankofcommerceholdings.com/