Bank of Commerce Records Third Consecutive Quarter of Profitability

13 Jul, 2010, 09:00 ET from Bank of Commerce

CHARLOTTE, N.C., July 13 /PRNewswire-FirstCall/ -- Bank of Commerce (OTC Bulletin Board: BONC) posted net income available to common shareholders of $20,000 for the quarter ending June 30, 2010, compared to net loss available to common shareholders of $2,661,000 for the same period last year.  Total assets have grown from $173.4 million at December 31, 2009 to $176.4 million as of June 30, 2010.

The Bank's net income available to common shareholders for the six months ended June 30, 2010 was $250,000, compared to a net loss available to common shareholders of $2,661,000 for the same period last year.

"We are pleased to report that despite the continued slow economy, we achieved another profitable quarter and further positioned the bank for the economic challenges going forward," said Wes Sturges, President & CEO.  "This spring, in response to the projected changing rate environment, we restructured our investment portfolio and, in doing so, recognized gains on several of these sold investments. Also, our loan loss reserve model, when factoring in the potential impact of minimal economic growth and high unemployment rate, indicated the need to increase our reserve for any resulting potential credit problems. We absorbed this expense during second quarter as well."

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

2010 Second Quarter Report

Balance Sheets

In Thousands

June 30,

December 31,

2010

2009

Assets

(unaudited)

*

Cash

$                 3,838

$              4,061

Federal funds sold

9,044

859

Investment securities

37,213

41,403

Loans, gross

118,183

122,365

Allowance for loan losses

(2,217)

(1,836)

Other assets

10,336

6,511

         Total assets

$             176,397

$          173,363

Liabilities and

Shareholders' Equity

Deposits

$             121,836

$          118,738

Borrowed funds

37,695

39,074

Other liabilities

1,031

571

Shareholders' equity

15,835

14,980

         Total liabilities and

         shareholders' equity

$             176,397

$          173,363

* Derived from audited financial statements

Statements of Operations (Unaudited)

In Thousands

For the Quarter Ending

For Six Months Ending

June 30,

June 30,

June 30,

June 30,

2010

2009

2010

2009

Total interest income

$                 1,970

$              1,921

$            3,961

$            3,701

Total interest expense

697

839

1,392

1,626

Net interest income

1,273

1,082

2,569

2,075

Provision for loan losses

488

2,799

528

2,972

Net interest income (loss) after

     provision for loan losses

785

(1,717)

2,041

(897)

Total other income

292

161

357

272

Total other expense

1,009

1,056

2,052

1,945

   Income (loss) before taxes

68

(2,612)

346

(2,570)

Provision for income taxes

-

-

-

-

   Net income (loss)

68

(2,612)

346

(2,570)

Preferred stock dividend

48

49

96

91

   Net income (loss) available to

    common shareholders

$                     20

$             (2,661)

$              250

$           (2,661)

SOURCE Bank of Commerce



RELATED LINKS

http://www.BankofCommerceNC.com