Bank of Commerce Grows Deposits and Loans, Posts Second Quarter Loss
CHARLOTTE, N.C., July 28 /PRNewswire-FirstCall/ -- Bank of Commerce (OTC Bulletin Board: BONC) posted a net loss of $2,612,000 for the quarter ending June 30, 2009, compared to net income of $94,000 for the same period last year. Total assets have grown from $145.5 million at December 31, 2008 to $167.9 million as of June 30, 2009 with gross loans increasing to $120.0 million and deposits increasing to $96.5 million.
The Bank's net loss for the six months ended June 30, 2009 was $2,570,000, compared to net income of $186,000 for the same period last year. During the second quarter $2,799,000 was added to the allowance for loan losses primarily a result of loan charge-offs of $2,156,000.
"During the first part of 2009, a correspondent bank with which we had several loan participations failed and was seized by the FDIC. While we had hoped the FDIC would put the bank's troubled loans back on track quickly, this has not proven to be the case and it appears that final resolution will be slow in coming. As a result we wrote these loans down. Additionally, we have identified other loans impaired by the weak economy and have written them down accordingly," said Wes Sturges, President & CEO. "Our Bank continues to exceed the FDIC's well capitalized standards even after recognizing these losses. Going forward we will work diligently to collect these loans, while continuing to make new loans to serve our customers."
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 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
2009 Second Quarter Report
Balance Sheets
In Thousands
June 30, December 31,
2009 2008
---- ----
Assets (unaudited) (audited)
Cash $1,071 $555
Federal funds sold - 3,805
Investment securities 44,019 29,438
Loans, gross 120,044 108,379
Allowance for loan losses (2,339) (1,523)
Other assets 5,143 4,796
----- -----
Total assets $167,938 $145,450
-------- --------
Liabilities and
Shareholders' Equity
Deposits $96,535 $83,820
Borrowed funds 53,624 43,557
Other liabilities 1,627 2,241
Shareholders' equity 16,152 15,832
------ ------
Total liabilities and
shareholders' equity $167,938 $145,450
-------- --------
Statements of Operations (Unaudited)
In Thousands
For the Quarter Ending For Six Months Ending
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Total interest income $1,921 $1,537 $3,701 $3,067
Total interest expense 839 586 1,626 1,203
--- --- ----- -----
Net interest income 1,082 951 2,075 1,864
Provision for loan losses 2,799 152 2,972 224
----- --- ----- ---
Net interest income
(loss) after provision
for loan losses (1,717) 799 (897) 1,640
Total other income 161 114 272 188
Total other expense 1,056 819 1,945 1,642
----- --- ----- -----
Income (loss)
before taxes (2,612) 94 (2,570) 186
Provision for income
taxes - - - -
----- --- ----- -----
Net income (loss) (2,612) 94 (2,570) 186
Preferred stock dividend 49 - 91 -
----- --- ----- -----
Net income (loss)
applicable to
common shareholders $(2,661) $94 $(2,661) $186
------- --- ------- ----
SOURCE Bank of Commerce
RELATED LINKS
http://www.BankofCommerceNC.com
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