2014

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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