Bank of Commerce Reports Profit in the Fourth Quarter

CHARLOTTE, N.C., Jan. 12 /PRNewswire-FirstCall/ -- Bank of Commerce (OTC Bulletin Board: BONC) posted a net income of $124,000 available to common shareholders for the quarter ending December 31, 2009, compared to net income of $74,000 for the same period in 2008.  Total assets have grown from $145.5 million at December 31, 2008 to $173.4 million as of December 31, 2009 with gross loans increasing to $122.4 million and deposits increasing to $118.7 million.

"The general expectation is that the economic recovery will continue to be slow and challenging; therefore, we see the potential in our market for additional business failures and as a result, loan defaults.  Given this possibility, we have continued to build our loan loss reserves accordingly," said Wes Sturges, President & CEO. "I am pleased that even while building this reserve we were able to achieve profitability in the fourth quarter."

The Bank's net loss for the year ended December 31, 2009 was $3,863,000, compared to net income of $275,000 for last year. During the year, $4,921,000 was added to the allowance for loan losses primarily as a result of loan charge-offs of $4,608,000.

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." The FDIC has extended its coverage from $100,000 to $250,000 until December 31, 2013.  Additionally, the Bank participates in the Transactional Account Guarantee Program that fully guarantees all balances in non-interest bearing transaction accounts until June 30, 2010.  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 Fourth Quarter Report










Balance Sheets





In Thousands






December 31,

December 31,




2009

2008



Assets

(unaudited)

(audited)



Cash

$4,061 

$555 



Federal funds sold

859 

3,805 



Investment securities

41,403 

29,438 



Loans, gross

122,365 

108,379 



Allowance for loan losses

(1,836)

(1,523)



Other assets

6,511 

4,796 



    Total assets

$173,363 

$145,450 








Liabilities and Shareholders' Equity





Deposits

$118,738 

$83,820 



Borrowed funds

39,074 

43,557 



Other liabilities

571 

2,241 



Shareholders' equity

14,980 

15,832 



    Total liabilities and





     shareholders' equity

$173,363 

$145,450 








Statements of Operations (Unaudited)





In Thousands






For the Quarter Ending

For the Year Ending


December 31,

December 31,

December 31,

December 31,


2009

2008

2009

2008

Total interest income

$2,004 

$1,792 

$7,729 

$6,545 

Total interest expense

740 

735 

3,143 

2,611 

Net interest income

1,264 

1,057 

4,586 

3,934 

Provision for loan losses

270 

114 

4,921 

528 

Net interest income (loss) after





provision for loan losses

994 

943 

(335)

3,406 

Total other income

113 

100 

565 

345 

Total other expense

934 

969 

3,905 

3,476 

   Income (loss) before taxes

173 

74 

(3,675)

275 

Provision for income taxes

   Net income (loss)

173 

74 

(3,675)

275 

Preferred stock dividend

49 

188 

   Net income (loss) applicable to





    common shareholders

$124 

$74 

$(3,863)

$275 








SOURCE Bank of Commerce



RELATED LINKS
http://www.BankofCommerceNC.com

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