Bank of Commerce Reports Year-to-Date and Fourth Quarter Results

Jan 11, 2011, 09:00 ET from Bank of Commerce

CHARLOTTE, N.C., Jan. 11, 2011 /PRNewswire/ -- Bank of Commerce (OTC Bulletin Board: BONC) posted a net loss available to common shareholders of $999,000 for the year ending December 31, 2010, compared to a net loss available to common shareholders of $3,863,000 for last year.  Total assets were $171.0 million at December 31, 2010 down from $173.4 million at December 31, 2009.  

"In the fourth quarter, we completed our annual appraisal of impaired loans and foreclosed properties. With some property values declining by more than 50% since the original appraisal, we experienced some significant write downs.  While we are encouraged that property values appear to be stabilizing, we will continue to monitor these values and liquidate the problem assets as quickly as feasible," said Wes Sturges, President and CEO.  "We continue to maintain our status as a well capitalized bank.  For 2011, we expect to have a compressed interest rate margin but are projecting modest growth."

The Bank's net loss available to common shareholders for the quarter ended December 31, 2010 was $1,271,000, compared to a net income available to common shareholders of $124,000 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

2010 Fourth Quarter Report

Balance Sheets

In Thousands

December 31,

December 31,

2010

2009

Assets

(unaudited)

(audited)

Cash

$                 9,355

$              4,061

Federal funds sold

1,788

859

Investment securities

39,778

41,403

Loans, gross

113,239

122,365

Allowance for loan losses

(2,081)

(1,836)

Foreclosed properties

2,971

359

Other assets

5,972

6,152

         Total assets

$             171,022

$          173,363

Liabilities and

Shareholders' Equity

Deposits

$             123,665

$          118,738

Borrowed funds

32,868

39,074

Other liabilities

590

571

Shareholders' equity

13,899

14,980

         Total liabilities and

         shareholders' equity

$             171,022

$          173,363

Statements of Operations

In Thousands

For the Quarter Ending

For Year Ending

December 31,

December 31,

December 31,

December 31,

2010

2009

2010

2009

(unaudited)

(unaudited)

(unaudited)

(audited)

Total interest income

$                 1,812

$              2,004

$            7,672

$            7,729

Total interest expense

626

740

2,681

3,143

Net interest income

1,186

1,264

4,991

4,586

Provision for loan losses

85

270

1,136

4,921

Net interest income (loss) after

     provision for loan losses

1,101

994

3,855

(335)

Securities gains

315

48

968

312

Other non-interest income

69

65

277

253

Total non-interest income

384

113

1,245

565

Loss on foreclosed properties

1,598

-

1,814

-

Other non-interest expense

1,110

934

4,093

3,905

Total non-interest expense

2,708

934

5,907

3,905

   Income (loss) before taxes

(1,223)

173

(807)

(3,675)

Provision for income taxes

-

-

-

-

   Net income (loss)

(1,223)

173

(807)

(3,675)

Preferred stock dividend

48

49

192

188

   Net income (loss) available to

    common shareholders

$                (1,271)

$                 124

$             (999)

$           (3,863)

SOURCE Bank of Commerce



RELATED LINKS

http://www.BankofCommerceNC.com