REDDING, Calif., Oct. 30 /PRNewswire-FirstCall/ — Patrick J. Moty, President
& CEO of Bank of Commerce Holdings (Nasdaq: BOCH), a $814 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 the Company’s third consecutive quarter of strong earnings.
“Our third consecutive quarter of strong earnings illustrates our Company’s
ability to profitably grow, even through the current downward economic cycle
and despite elevated provisioning for credit losses,” said Patrick J. Moty,
President and CEO. “We have significantly built capital and continue to
strengthen our balance sheet. Operationally and financially the company’s
performance is exceeding our projections.”
3rd Quarter 2009 Highlights
– Net Income of $1,713,000 up 139% over third quarter 2008
– Diluted EPS of $0.17 compared to $0.08 over third quarter 2008 up 113%
– Average earning assets up $132.2 million or 21.6% over the prior year
– Average loans up $70.5 million or 13.6% over the prior year
– Average core deposits up $97.2 million or 20.1% over the prior year
– Strong provision for loan loss of $1.8 million for the quarter
– Total risk based capital of 12.83% at September 30, 2009
Nine months 2009 Highlights
– Net income of $4,599,000 up 61% over prior year
– Top line revenues up $7.5 million or 24.7%
– Diluted EPS of $0.45 compared to $0.33 prior year up 36% over the
prior
year
– Strong provision for loan losses of $6.3 million
– Year to date non-performing assets/total assets decreased to 2.04%
compared to 2.98% at December 31, 2008.
Balance Sheet
During 2009 and 2008, the focus of the Company has been on strengthening the
balance sheet, by providing appropriate reserves, strong capital, and
significant liquidity. Our strength and security continue to compare favorably
with our industry peers.
Our balance sheet increased by $40.0 million or 5.2% over year end 2008, and
$163 million or 25.1% over the same period a year ago. During the second
quarter the Company completed a business combination with Simonich Corporation
d.b.a. BWC Mortgage services resulting in a 51% controlling interest in the
acquired company. Mortgage loans held for sale represent warehouse lines
outstanding at our subsidiary Bank of Commerce Mortgage(TM). Total assets
acquired as a result of the business combination were $15.6 million.
Additionally, the Company recorded $2.9 million in goodwill.
The loan portfolio, the single largest asset class of the Company grew by
$72.0 million over year-end 2008 and $88.0 million over the same period a year
ago.
The Company’s primary funding source, deposits, reflected increases of $44.6
million from year-end 2008 and $96.8 million year-over-year. The deposit
growth was centered in time deposits; time deposits increased by $48.7 million
or 18% since year-end 2008 and $97.8 million or 46% year-over-year. Management
primarily attributes deposit growth to the current economic environment and
our customers’ concern with alternative investments such as stocks and bonds.
Therefore, it is possible that with an economic recovery, our customers could
migrate back into these other asset classes.