REDDING, Calif., July 25 /PRNewswire-FirstCall/ -- Bank of Commerce Holdings (NASDAQ:BOCH), a $605.6 million asset financial holding company, and parent company of Redding Bank of Commerce(TM), Roseville Bank of Commerce(TM), Sutter Bank of Commerce(TM) and Bank of Commerce Mortgage(TM) today announced second quarter 2007 operating results.
Bank of Commerce Holdings' net income for the second quarter 2007 was $1,600,000 or $0.18 per diluted share compared to $1,689,000 or $0.19 per diluted share during the second quarter 2006, a decrease of 5.3%. Annualized return on average assets and return on average equity for the second quarter of 2007 were 1.07% and 13.69% respectively, compared with 1.25% and 15.94% for the second quarter of 2006.
On June 19, 2007, the Company announced a $0.08 quarterly cash dividend payable to shareholders of record as of June 30, 2007 and paid on July 13, 2007.
At June 30, 2007, Bank of Commerce Holdings' total assets were $605.6 million, an increase of 3.79% or $22.1 million from December 31, 2006. Net loans increased to $437.8 million, an increase of $28.8 million from December 31, 2006.
The Company's loan portfolio is sound and performing well. The Company's allowance for loan losses was 1.12% of total loans at June 30, 2007 and 1.18% at December 31, 2006, while its ratio of non-performing assets to total assets was 0.00% at June 30, 2007, compared to 0.00% at December 31, 2006.
Provisions for loan losses for the quarter ended June 2007 were $0 compared to $143,000 for the same period in 2006. The Company's OREO remained at $0 through the second quarter of 2007 and 2006.
Total deposits increased to $441.2 million, an increase of $1.8 million or 0.42% from December 31, 2006. The Company has launched several new deposit products including Forever Free Checking, Get Out and Play Checking, High Performance Savings and High Performance Checking packages during the period.
The capital ratios of Redding Bank of Commerce continue to be above the well-capitalized guidelines established by bank regulatory agencies.
The most significant impact on net interest income between periods is derived from the interaction of changes in the volume of and rate earned or paid on interest-earning assets and interest-bearing liabilities. The volume of interest-earning assets in loans and securities, compared to the volume of interest-bearing liabilities represented by deposits and borrowings, combined with the spread, produces the changes in net interest income between periods. The Company's net interest margin was 4.03% in the second quarter of 2007 compared to 4.47% for the same period in 2006.
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), Sutter 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 Global 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/ John Cavender
555 Market Street
San Francisco, CA
(800) 346-5544 Morgan Stanley/ Rick Hill
310 Hemsted Drive, Suite 100
Redding, CA
(800) 733-6126 Wachovia Securities/ Ken Myers, Rick Hansen
10466 Brunswick Road
Grass Valley, CA
(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 the regulatory
environment. -- Changes in the interest rate environment and volatility 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, 2006 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.
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited) Amounts in thousands, except per share data ASSETS June 30, 2007 Dec. 31, 2006 June 30, 2006 Cash and due from banks $ 18,206 $ 14,661 $ 12,668
Federal funds sold
and securities purchased
under agreements to resell 14,115 24,605 14,155
Cash and cash equivalents 32,321 39,266 26,823
Securities available-for-sale
(including pledged collateral
of $93,790 at June 30, 2007;
$71,686 at December 31, 2006
and $83,080 at June 30, 2006) 94,029 95,601 97,366
Securities held-to-maturity,
at cost (estimated fair value
of $10,369 at June 30, 2007,
$10,892 at December 31,
2006 and $10,889 at
June 30, 2006) 10,637 10,810 11,141
Loans, net of the allowance
for loan losses of $4,943 at
June 30, 2007, $4,904 at
December 31, 2006 and
$4,502 at June 30, 2006 437,821 408,990 401,185
Bank premises
and equipment, net 10,329 8,595 6,690
Other assets 20,440 20,180 20,942
TOTAL ASSETS $605,577 $583,442 $564,147 LIABILITIES AND STOCKHOLDERS' EQUITY Demand - noninterest bearing $69,842 $84,779 $74,505
Demand - interest bearing 114,530 119,437 101,492
Savings 45,082 22,749 23,112
Certificates of deposits 211,794 212,442 189,577
Total deposits 441,248 439,407 388,686
Securities sold under
agreements to repurchase 46,655 37,117 32,507
Federal Home Loan Bank
borrowings 50,000 40,000 80,000
Other liabilities 7,114 7,537 6,536
Guaranteed Preferred
Beneficial Interests
in Company's Junior
Subordinated Debt
payable to
unconsolidated
subsidiary grantor trust 15,465 15,465 15,465
Total Liabilities 560,482 539,526 523,194
Commitments and contingencies
Stockholders' Equity:
Preferred stock, no par value,
2,000,000 authorized
no shares issued and
outstanding in 2007 and 2006 -- -- --
Common stock, no par value,
50,000,000 shares authorized;
8,908,880 shares issued
and outstanding
at June 30, 2007,
8,847,042 at December
31, 2006 and 8,729,672
at June 30, 2006 11,966 11,517 11,441
Retained earnings 34,997 33,336 31,479
Accumulated other
comprehensive (loss),
net of tax (1,868) (937) (1,967)
Total Stockholders' equity 45,095 43,916 40,953
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $605,577 $583,442 $564,147 BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited) Three and six months ended June 30, 2007 and 2006 Three Months Ended Six Months Ended
Amounts in thousands, except June 30, June 30, June 30, June 30,
for per share data 2007 2006 2007 2006 Interest income: Interest and fees on loans $8,965 $8,149 $17,429 $15,380
Interest on tax exempt
securities 334 140 612 263
Interest on U.S. government
securities 816 864 1,648 1,726
Interest on federal funds
sold and securities
purchased under
agreements to resell 190 145 390 275
Interest on other
securities 9 44 45 88
Total interest
income 10,314 9,342 20,124 17,732 Interest expense: Interest on demand deposits 587 286 1,144 519
Interest on savings
deposits 355 75 526 140
Interest on time deposits 2,627 1,872 5,232 3,421
Securities sold under 381 267 723 466
agreements to repurchase
Interest on FHLB and other 632 902 1,171 1,574
borrowing expense
Interest on junior
subordinated debt payable to 271 266 540 524
unconsolidated subsidiary
grantor trust
Total interest 4,853 3,668 9,336 6,644
expense
Net interest income 5,461 5,674 10,788 11,088
Provision for loan
and lease losses 0 143 6 154
Net interest income 5,461 5,531 10,782 10,934
after provision
for loan losses Noninterest income: Service charges on deposit
accounts 76 86 145 174
Payroll and benefit
processing fees 89 89 197 198
Earnings on cash surrender
value - Bank owned life
insurance 99 98 194 151
Net gain (loss) on sale of
securities available-for-sale 0 0 46 0
Net gain on sale of loans 0 0 0 0
Merchant credit card 96 93 188 170
service income, net
Mortgage brokerage fee 29 35 35 52
income
Other income 229 111 311 214
Total non-interest income 618 512 1,116 959 Noninterest expense: Salaries and related
benefits 1,959 1,996 4,056 3,874
Occupancy and equipment
expense 543 448 1,001 883
FDIC insurance premium 13 12 26 24
Data processing fees 90 58 145 116
Professional service fees 252 150 447 354
Payroll and Benefit fees 25 25 56 54
Deferred compensation
expense 101 90 198 178
Stationery and Supplies 46 49 107 109
Postage 34 34 67 65
Directors' expense 76 65 121 125
Other expenses 562 383 965 766
Total non-interest 3,701 3,310 7,189 6,548
expense
Income before income taxes 2,378 2,733 4,709 5,345
Provision for income taxes 778 1,044 1,622 2,064
Net Income $1,600 $1,689 $3,087 $3,281
Basic earnings per share $0.18 $0.19 $0.35 $0.38
Weighted average shares -
basic 8,908 8,723 8,887 8,702
Diluted earnings per share $0.18 $0.19 $0.34 $0.37
Weighted average shares -
diluted 9,063 8,912 8,985 8,896 BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Quarterly Financial Condition Data
(Unaudited)
For the Quarter Ended June 30, Mar 31, Dec 31, Sep 30, June 30, Mar 31, Dec 31,
2007 2007 2006 2006 2006 2006 2005 Cash and
due from
banks $18,206 $12,597 $14,661 $17,535 $12,668 $11,819 $17,436
Federal
funds
sold and
securities
purchased
under
agreements
to resell 14,115 21,195 24,605 28,010 14,155 9,835 9,120
Total
Cash &
Equivalents 32,321 33,792 39,266 45,545 26,823 21,654 26,556
Securities
available-
for-sale 94,029 92,769 95,601 97,614 97,366 93,645 94,014
Securities
held to
maturity,
at cost 10,637 10,673 10,810 10,841 11,141 7,620 6,933
Loans, net
of allowance
for loan
losses 437,821 411,357 408,990 403,657 401,185 374,983 363,305
Bank
premises
and
equipment,
net 10,329 9,992 8,595 7,350 6,690 6,261 5,631
Other
assets 20,440 19,513 20,180 20,211 20,942 18,733 15,205
TOTAL
ASSETS $605,577 $578,096 $583,442 $585,218 $564,147 $522,896 $511,644 Liabilities: Demand -
noninterest
bearing $69,842 $70,035 $84,779 $81,125 $74,505 $74,519 $86,219
Demand -
interest
bearing 114,530 112,550 119,437 111,439 101,492 102,003 109,101
Savings 45,082 41,537 22,749 22,610 23,111 28,477 27,540
Certificates
of deposit 211,794 211,422 212,442 214,019 189,577 173,106 149,256
Total
deposits 441,248 435,544 439,407 429,193 388,685 378,105 372,116
Securities
sold under
agreements
to
repurchase 46,655 35,053 37,117 35,260 32,507 25,117 22,886
Federal Home
Loan Bank
borrowings 50,000 40,000 40,000 55,000 80,000 55,000 55,000
Other
liabilities 7,114 6,646 7,537 6,352 6,536 8,864 7,194
Junior
subordinated
debt payable
to subsidiary
grantor
trust 15,465 15,465 15,465 15,465 15,465 15,465 15,310
Total
liabil-
ities 560,482 532,708 539,526 541,270 523,193 482,551 472,506 Stockholders'
equity: Common stock 11,966 11,940 11,517 12,416 11,442 11,198 11,009
Retained
earnings 34,997 34,110 33,336 32,526 31,479 30,535 29,419
Accumulated
other
comprehensive
income
(loss), net (1,868) (662) (937) (994) (1,967) (1,388) (1,290)
Total
stock-
holders'
equity 45,095 45,388 43,916 43,948 40,954 40,345 39,138
TOTAL
LIABIL-
ITIES AND
STOCK-
HOLDERS'
EQUITY $605,577 $578,096 $583,442 $585,218 $564,147 $522,896 $511,644 Interest
Income: Net interest
income 5,461 $5,327 $5,418 $5,530 $5,674 $5,413 $5,395
Provision
for loan
losses 0 6 0 72 143 11 6
Net interest
income after
provision
for loan
losses 5,461 5,321 5,418 5,458 5,531 5,402 5,389 Noninterest
Income: Service
charges 76 69 91 81 86 88 91
Merchant credit
card service
income, net 89 92 100 89 93 77 78
Net (loss) on
sale of
securities
available-
for-sale 0 46 0 (171) 0 0 0
Mortgage
brokerage
fee income 29 6 (13) 32 35 17 7
Other income 424 285 363 397 298 266 343
Total
noninterest
income 618 498 541 428 512 448 519 Noninterest
Expense: Salaries and
related
benefits 1,959 2,097 2,150 1,996 1,996 1,878 1,796
Net Occupancy
and
equipment
expense 543 458 496 467 448 435 399
Professional
service fees 252 195 181 149 150 204 72
Other expenses 947 738 659 687 716 721 579
Total
non-
interest
expense 3,701 3,488 3,486 3,299 3,310 3,238 2,846
Income
before
income
taxes 2,378 2,331 2,473 2,587 2,733 2,612 3,062
Provision
for income
taxes 778 844 858 915 1,044 1,020 1,191
Net Income $1 600 $1,487 $1,615 $1,672 $1,689 $1,592 $1,871 Average Balances, Interest Income/Expense and Yields/Rates Paid
(Unaudited, Dollars in thousands) Six Months Ended Six Months Ended
June 30, 2007 June 30, 2006 Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate Earning Assets Portfolio Loans $416,141 $17,429 8.38% $381,070 $15,380 8.07%
Tax-exempt
Securities 30,548 612 4.01% 14,911 263 3.53%
US Government
Securities 72,937 1,648 4.52% 84,890 1,726 4.07%
Federal Funds
Sold 13,473 390 5.79% 11,463 275 4.80%
Other Securities 2,000 45 4.50% 4,053 88 4.34%
Average Earning
Assets $535,099 $20,124 7.52% $496,387 $17,732 7.14% Cash & Due From
Banks $13,473 $14,078
Bank Premises 9,742 6,249
Allowance for
Loan
and Lease
Losses (4,890) (4,372)
Other Assets 21,040 14,537
Average Total
Assets $574,464 $526,879 Interest Bearing
Liabilities Demand Interest
Bearing $110,668 $1,144 2.07% $104,439 $519 0.99%
Savings Deposits 35,957 526 2.93% 26,736 140 1.05%
Certificates of
Deposit 213,721 5,232 4.90% 172,074 3,421 3.98%
Repurchase
Agreements 37,064 723 3.90% 25,972 466 3.59%
FHLB Borrowings 43,260 1,171 5.41% 63,370 1,574 4.93%
Trust Preferred
Borrowings 15,000 540 7.20% 15,000 524 7.16%
Average Interest
Bearing
Liabilities 455,670 $9,336 4.53% 407,591 $6,644 3.26%
Non interest
Demand 72,321 77,213
Other
Liabilities 1,370 5,903
Shareholder
Equity 45,103 36,172
Average
Liabilities
and
Stockholders'
Equity $574,464 $526,879
Net Interest
Income and
Net Interest
Margin $10,788 4.03% $11,088 4.47% Interest income on loans includes fee income of approximately $135,554 and $272,900 for the period ended June 30, 2007 and 2006, respectively. The Company's average total assets increased to $574.5 million at June 30, 2007 compared to $496.4 million for the same period in 2006, a $47.6 million increase or 9.0%.
The Company's practice is to place an asset on nonaccrual status when one of the following events occurs: (i) Any installment of principal or interest is 90 days or more past due, (ii) management determines the ultimate collection of principal or interest to be unlikely or (iii) the terms of the loan have been renegotiated due to a serious weakening of the borrower's financial condition. Interest income on loans does not reflect accruals on loans in a nonaccrual status. Accruals are resumed on loans only when they are brought fully current with respect to interest and principal and when the loan is estimated to be fully collectible. DATASOURCE: Bank of Commerce Holdings CONTACT: Michael C. Mayer, President & CEO, +1-530-722-3950, or Sam Jimenez, Director Risk Management, +1-530-722-3952, , both of Bank of Commerce Holdings Web site: http://www.reddingbankofcommerce.com/
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