Bank of Commerce Sees Strong Loan Growth, Continued Profitability in First Quarter

Apr 21, 2009, 09:00 ET from Bank of Commerce

CHARLOTTE, N.C., April 21 /PRNewswire-FirstCall/ -- Bank of Commerce (BONC.OB) announces net income for the three months ended March 31, 2009 was $42,000, compared to net income of $92,000 for the same period last year. The decline in net income was due to a decrease of 4% in Fed funds rate over 2008 and a higher loan loss provision expense in the first quarter 2009.

"The good news is loans are increasing," says Wes Sturges, President and CEO. "In January, we received $3.0 million from the US Treasury's Capital Purchase Program (CPP) which allows us to increase our business lending efforts. We have seen a year over year increase in loans of $41.5 million or 58%."

The Bank's total assets have grown to $168.9 million as of March 31, 2009. Gross loans have increased to $113.2 million and deposits to $109.4 million as of March 31, 2009.

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

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 First Quarter Report
    In Thousands                          March 31,             December 31,
                                            2009                   2008

    Assets                               (unaudited)             (audited)
    Cash                                    $3,734                   $555
    Federal fund                            11,744                  3,805
    Investment securities                   37,039                 29,438
    Loans, gross                           113,239                108,379
    Allowance for loan losses              (1,696)                (1,523)
    Other assets                             4,865                  4,796
              Total assets                $168,925               $145,450

    Liabilities and
    Shareholders' Equity
    Deposits                              $109,437                $83,820
    Borrowed funds                          39,867                 43,557
    Other liabilities                          630                  2,241
    Shareholders' equity                    18,991                 15,832
              Total liabilities and
              shareholders' equity        $168,925               $145,450

    Statements of Operations (Unaudited)

    In Thousands              For the Quarter Ending  For the Quarter Ending
                                         March 31,              March 31,
                                          2009                   2008

    Total interest income                 $1,780                 $1,530
    Total interest expense                   787                    617
    Net interest income                      993                    913
    Provision for loan losses                173                     72
    Net interest income after
        provision for loan  losses           820                    841
    Total other income                       111                     74
    Total other expense                      889                    823
        Income before taxes                   42                     92
    Provision for income taxes                 -                      -
        Net income                            42                     92
    Preferred stock
     dividend - CPP                           42                      -
        Net income applicable
         common shareholders                  $-                    $92

SOURCE Bank of Commerce