Bank of Commerce Announces Third Quarter Results

CHARLOTTE, N.C., Oct. 18, 2011 /PRNewswire/ -- During the third quarter of 2011 Bank of Commerce (BONC.OB) continued to write-down and liquidate problem assets.  "Based on updated appraisals and other market information, we believe we have properly accounted for the dramatic depreciation that has occurred over the past few years in the value of our real estate loan portfolio.  Although this has negatively impacted our earnings both for the quarter and the year to date period, we remain a well capitalized bank," said Wes Sturges, President and CEO.

As a result of falling real estate values, liquidations and write-downs on problem assets, the Bank posted a net loss attributable to common shareholders of $737,000 for the quarter ending September 30, 2011, compared to net income of $22,000 for the same period last year.  Total assets have declined from $171.0 million at December 31, 2010 to $153.0 million as of September 30, 2011.

The Bank's net loss attributable to common shareholders for the nine months ended September 30, 2011 was $967,000, compared to net income of $272,000 for the same period last year.  

Bank of Commerce serves the needs of independently owned businesses in the Charlotte, N.C. area. From a midtown Charlotte office at 100 Queens Road, we offer guidance to clients from experienced loan officers, in addition to start-up financing and other banking products, services and information. Online banking, courier service and extended deposit hours are additional hallmarks of the Bank of Commerce. The Bank's common stock is quoted in the over-the-counter market through the OTC Bulletin Board under the symbol "BONC.OB." For additional information, contact Bank of Commerce Headquarters, 100 Queens Road, Charlotte, N.C. (telephone 704-971-7000) or visit www.BankofCommerceNC.com.

This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Bank of Commerce.  These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Bank and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate" and "believe," variations of these words and other similar expressions.  Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. The Bank does not undertake an obligation to update any forward-looking statements.

Bank of Commerce




2011 Third Quarter Report




Balance Sheets




In Thousands

September 30,


December 31,


2011


2010

Assets

(unaudited)


*

Cash

$        6,596


$        9,355

Federal funds sold

1,875


1,788

Investment securities

35,555


39,778

Loans, gross

103,013


113,239

Allowance for loan losses

(1,812)


(2,081)

Foreclosed properties

2,130


2,971

Other assets

5,600


5,972

         Total assets

$      152,957


$      171,022





Liabilities and Shareholders' Equity




Deposits

$      110,863


$      123,665

Borrowed funds

27,840


32,868

Other liabilities

855


590

Shareholders' equity

13,399


13,899

         Total liabilities and shareholders' equity

$      152,957


$      171,022





* Derived from audited financial statements










Statements of Operations







In Thousands

For the Quarter Ending

For Year to Date Ending


September 30,


September 30,

September 30,


September 30,


2011


2010

2011


2010


(unaudited)


(unaudited)

(unaudited)


(unaudited)

Total interest income

$        1,617


$        1,899

$        5,110


$        5,860

Total interest expense

480


663

1,612


2,055

Net interest income

1,137


1,236

3,498


3,805

Provision for loan losses

520


523

1,096


1,051

Net interest income after







     provision for loan losses

617


713

2,402


2,754

Securities gains

207


435

336


653

Other non-interest income

69


69

210


208

Total non-interest income

276


504

546


861

Loss on foreclosed properties

711


216

796


216

Other non-interest expense

934


931

3,038


2,983

Total non-interest expense

1,645


1,147

3,834


3,199

   Income (loss) before taxes

(752)


70

(886)


416

Provision for income taxes

-


-

-


-

   Net income (loss)

(752)


70

(886)


416

Preferred stock dividend

(15)

**

48

81


144

   Net income (loss) attributable to







    common shareholders

$        (737)


$           22

$        (967)


$          272








** The FDIC did not grant the Bank permission to pay the scheduled dividend on preferred stock issued to the Treasury under the Capital Purchase Program. Therefore any dividends previously accrued were reversed, reflecting the "non-cumulative" nature of the preferred stock.










SOURCE Bank of Commerce



RELATED LINKS
http://www.BankofCommerceNC.com

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