REDDING, Calif., April 15 /PRNewswire-FirstCall/ -- Bank of Commerce
Holdings (Nasdaq: BOCH), a $450.7 million asset financial holding company, and
parent company of Redding Bank of Commerce(TM), Roseville Bank of Commerce(TM)
and Bank of Commerce Mortgage(TM) today announced a 24% increase in first
quarter 2005 operating results.
"We are very proud to report a 24 percent increase in operating results
over the same quarter in 2004. The reasons for our increase in earnings are
attributed to the volume of loan activities over the year coupled with
increasing interest rates. The growth was funded by increases in core deposits
with a modest increase in our cost of funds. Our performance is well above
average with our goal of achieving upper quartile performance, compared to our
peers," said Michael C. Mayer, President and CEO of the Company.
Bank of Commerce Holdings' net income for the first quarter 2005 increased
23.7 percent to $1,376,000 or $0.16 per diluted share compared to $1,112,000
or $0.13 per diluted share during the first quarter 2004. Annualized return on
average equity was 15.89%; annualized return on average assets was 1.24%,
compared with 14.45% and 1.15% for the same period in 2004.
On January 6, 2005, the Company announced a 46.7% increase in stock price
during 2004. Stock price closed at December 31, 2004, at $12.35 compared with
$8.42 at December 31, 2003. On March 17, 2005, the Company announced a $0.06
quarterly cash dividend payable to shareholders of record as of March 31, 2005
and paid on April 8, 2005.
At March 31, 2005, Bank of Commerce Holdings' total assets were $450.7
million, an increase of 2.78% or $12.2 million from December 31, 2004. Net
loans increased to $320.5 million, an increase of $1.6 million from December
31, 2004. Total deposits increased to $355.5 million, an increase of $2.6
million from December 31, 2004. Deposit growth strategies focused on
increasing core deposit relationships while reducing dependency on more
expensive certificates of deposit.
The Company's loan portfolio is sound and performing well. Non-performing
assets decreased by $327,000 or 15.9% during the first quarter of 2005. The
Company's allowance for loan losses was 1.25% of total loans at March 31, 2005
and 1.20% at December 31, 2004, while its ratio of non-performing assets to
total assets was 0.46% at March 31, 2005, compared to 0.54% at December 31,
2004. Provisions for loan losses for the quarter ended March 2005 were
$177,000 compared to $192,000 for the same period in 2004. The Company's OREO
remained at $0 through the first quarter of 2005 and 2004.
The capital ratios of Redding Bank of Commerce continue to be above the
well-capitalized guidelines established by bank regulatory agencies.
The most significant impact on net interest income between periods is
derived from the interaction of changes in the volume of and rate earned or
paid on interest-earning assets and interest-bearing liabilities. The volume
of interest-earning assets in loans and securities, compared to the volume of
interest-bearing liabilities represented by deposits and borrowings, combined
with the spread, produces the changes in net interest income between periods.
The Company's net interest margin was 4.66% in the first quarter of 2005
compared to 4.42% for the same period in 2004.
Bank of Commerce Holdings, with administrative offices in Redding,
California is a financial service holding company that owns Redding Bank of
Commerce(TM), Roseville Bank of Commerce(TM), a division of Redding Bank of
Commerce and Bank of Commerce Mortgage(TM). The Company is a federally insured
California banking corporation and opened on October 22, 1982.
Investment firms making a market in BOCH stock are: Hoefer & Arnett, 555
Market Street, San Francisco, CA (800)346-5544; Sandler & O'Neil, 919 Third
Avenue, 6th Floor, New York, NY 10022 (800)635-6851 and Hill, Thompson, Magid
& Co. Inc, 15 Exchange Place, Suite 800, Jersey City, NJ 07030 (201)369-2908.
This quarterly press release includes forward-looking information, which
is subject to the "safe harbor" created by the Securities Act of 1933, and
Securities Act of 1934. These forward-looking statements (which involve the
Company's plans, beliefs and goals, refer to estimates or use similar terms)
involve certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. Such risks and
uncertainties include, but are not limited to, the following factors:
-- Competitive pressure in the banking industry and changes in the
regulatory environment.
-- Changes in the interest rate environment and volatility of rate
sensitive assets and liabilities.
-- The health of the economy declines nationally or regionally which could
reduce the demand for loans or reduce the value of real estate
collateral securing most of the Company's loans.
-- Credit quality deteriorates which could cause an increase in the
provision for loan losses.
-- Losses in the Company's merchant credit card processing business.
-- Asset/Liability matching risks and liquidity risks.
-- Changes in the securities markets.
For additional information concerning risks and uncertainties related to
the Company and its operations please refer to the Company's Annual Report on
Form 10-K for the year ended December 31, 2004 and under the heading "Risk
factors that may affect results" and subsequent reports on Form 10-Q and
current reports on Form 8-K.. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. The Company undertakes no obligation to revise or publicly release the
results of any revision to these forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
Dollars in thousands
ASSETS March 31, Dec. 31, March 31,
2005 2004 2004
Cash and due from banks $14,167 $13,121 $23,036
Federal funds sold and securities
purchased under agreements to resell 19,760 6,120 10,125
Cash and cash equivalents 33,927 19,241 33,161
Securities available-for-sale
(including pledged collateral of $38,884
at March 31, 2005, $33,345 at December 31,
2004 and $17,262 at March 31, 2004) 77,276 82,443 55,634
Securities held-to-maturity, at cost
(estimated fair value of $457 at March 31,
2005, $487 at Dec. 31, 2004 and $829 at
March 31, 2004) 423 449 769
Loans, net of the allowance for loan losses
of $4,044 at March 31, 2005, $3,866 at
Dec. 31, 2004 and $3,870 at March 31, 2004 320,453 318,801 288,651
Bank premises and equipment, net 5,436 5,484 5,693
Other assets 13,207 12,127 10,777
TOTAL ASSETS $450,722 $438,545 $394,685
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand - noninterest bearing $75,393 $82,263 $63,502
Demand - interest bearing 111,723 108,645 91,876
Savings accounts 24,367 23,471 21,707
Certificates of deposit 144,051 138,500 139,067
Total deposits 355,534 352,879 316,152
Securities sold under agreements to
repurchase 13,517 2,004 10,239
Federal Home Loan Bank borrowings 35,000 35,000 25,000
Other liabilities 5,705 8,379 6,012
Junior subordinated debt payable to
unconsolidated subsidiary grantor
trust 5,000 5,000 5,000
Total Liabilities 414,756 403,262 362,403
Commitments and contingencies
Stockholders' Equity:
Preferred stock, no par value, 2,000,000
authorized no shares issued and outstanding
in 2005 and 2004 -- -- --
Common stock, no par value, 10,000,000
shares authorized; 8,571,781 shares issued
and outstanding at March 31,2005, 8,502,831
at Dec. 31, 2004 and 8,173,674 at
March 31, 2004 10,756 10,537 9,734
Retained earnings 26,067 25,079 22,348
Accumulated other comprehensive income
(loss), net of tax (857) (333) 200
Total stockholders' equity 35,966 35,283 32,282
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $450,722 $438,545 $394,685
BANK OF COMMERCE HOLDINGS AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three months ended
March 31, 2005 and 2004
Dollars in thousands, except Three Months Ended
for per share data March 31, 2005 March 31, 2004
Interest income:
Interest and fees on loans $5,407 $4,347
Interest on tax exempt securities 54 56
Interest on U.S. government securities 651 477
Interest on federal funds sold and
securities purchased under agreements to
resell 79 17
Interest on other securities 0 7
Total interest income 6,191 4,904
Interest expense:
Interest on demand deposits 139 102
Interest on savings deposits 24 29
Interest on time deposits 830 723
Securities sold under agreements to
repurchase 19 2
Interest on FHLB and other borrowings 246 67
Interest on junior subordinated debt
payable to unconsolidated subsidiary
grantor trust 77 56
Total interest expense 1,335 979
Net interest income 4,856 3,925
Provision for loan and lease losses 177 192
Net interest income after provision for
loan and lease losses 4,679 3,733
Noninterest income:
Service charges on deposit accounts 103 99
Payroll and benefit processing fees 99 97
Earnings on cash surrender value -
Bank owned life insurance 51 54
Net (loss) gain on sale of securities
available-for-sale (2) 0
Net gain on sale of loans 19 35
Merchant credit card service income, net 99 97
Mortgage brokerage fee income 86 16
Other income 87 97
Total noninterest income 542 495
Noninterest expense:
Salaries and related benefits 1,693 1,393
Occupancy and equipment expense 387 369
FDIC insurance premium 12 13
Data processing fees 41 44
Professional service fees 205 146
Deferred compensation expense 73 67
Stationery and supplies 59 54
Postage 28 21
Directors' expense 74 89
Other expenses 348 268
Total noninterest expense 2,920 2,464
Income before income taxes 2,301 1,764
Provision for income taxes 925 652
Net income $1,376 $1,112
Basic earnings per share $0.16 $0.14
Weighted average shares - basic 8,533 8,133
Diluted earnings per share $0.16 $0.13
Weighted average shares - diluted 8,780 8,529
Bank of Commerce Holdings
Quarterly Financial Condition Data
(Dollars in Thousands, except share and per share amounts)
(Unaudited)
For the Quarter Ended
March 31, Dec 31, Sept. 30, June 30, March 31,
2005 2004 2004 2004 2004
Cash and due from banks $14,167 $13,121 $13,816 $14,461 $23,036
Federal funds sold and
securities purchased
under agreements to resell 19,760 6,120 12,155 15,155 10,125
Total Cash & Equivalents 33,927 19,241 25,971 29,616 33,161
Securities available-for-
sale 77,276 82,443 78,475 74,257 55,634
Securities held to maturity,
at cost 423 449 490 566 769
Loans, net of allowance for
loan losses 320,453 318,801 306,531 287,886 288,651
Bank premises and
equipment, net 5,436 5,484 5,589 5,700 5,693
Other assets 13,207 12,127 11,496 11,847 10,777
TOTAL ASSETS $450,722 $438,545 $428,552 $409,872 $394,685
Liabilities:
Demand - noninterest
bearing $75,393 $82,263 $79,409 $73,067 $63,502
Demand - interest bearing 111,723 108,645 108,348 102,051 91,876
Savings 24,367 23,471 25,112 24,354 21,707
Certificates of deposit 144,051 138,500 139,104 132,640 139,067
Total deposits 355,534 352,879 351,973 332,112 316,152
Securities sold under
agreements to repurchase 13,517 2,004 1,489 1,496 10,239
Federal Home Loan Bank
borrowings 35,000 35,000 30,000 35,000 25,000
Other liabilities 5,705 8,379 4,266 3,964 6,012
Junior subordinated debt
payable to subsidiary
grantor trust 5,000 5,000 5,000 5,000 5,000
Total liabilities 414,756 403,262 392,728 377,572 362,403
Stockholders' equity:
Common stock 10,756 10,537 10,714 9,745 9,734
Retained earnings 26,067 25,079 25,416 23,604 22,348
Accumulated other
comprehensive income
(loss), net (857) (333) (306) (1,049) 200
Total stockholders'
equity 35,966 35,283 35,824 32,300 32,282
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $450,722 $438,545 $428,552 $409,872 $394,685
Interest Income:
Net interest income $4,856 $4,606 $4,269 $4,087 $3,925
Provision for loan losses 177 173 131 97 192
Net interest income after
provision for loan losses 4,679 4,433 4,138 3,990 3,733
Noninterest Income:
Service charges 103 118 133 126 99
Merchant credit card
service income, net 99 104 81 94 97
Net gain on sale of
securities available-
for-sale (2) 0 0 0 0
Mortgage brokerage fee
income 86 74 64 32 16
Other income 256 338 295 242 283
Total noninterest income 542 634 573 494 495
Noninterest Expense:
Salaries and related
benefits 1,693 1,678 1,500 1,368 1,393
Net Occupancy and
equipment expense 387 407 395 363 369
Professional service fees 205 184 177 296 146
Other expenses 635 567 569 613 556
Total noninterest expense 2,920 2,836 2,641 2,640 2,464
Income before income taxes 2,301 2,231 2,070 1,844 1,764
Provision for income taxes 925 793 803 683 652
Net Income $1,376 $1,438 $1,267 $1,161 $1,112
For the Quarter Ended
Key Financial Information
(Unaudited)
March 31, Dec 31, Sept. 30, June 30, March 31,
2005 2004 2004 2004 2004
Net earnings per
share - basic $0.16 $0.17 $0.15 $0.14 $0.14
Net earnings per
share - diluted $0.16 $0.17 $0.14 $0.13 $0.13
Dividends per share $0.06 $0.23 $0.00 $0.00 $0.00
Net Interest Margin 4.66% 4.56% 4.41% 4.43% 4.42%
Average Total Equity $39,628 $38,261 $37,089 $36,922 $35,787
Return on Average Equity 15.89% 15.03% 13.15% 12.58% 14.45%
Average Assets $445,037 $432,171 401,980 399,383 388,383
Return on Average Assets 1.24% 1.33% 1.21% 1.16% 1.15%
Efficiency Ratio 55.93% 55.97% 56.06% 58.88% 58.28%
Total Assets $450,722 $438,545 $428,552 $409,872 $394,685
Loans, net of
allowances $320,453 $318,801 $306,531 $287,886 $288,651
Deposits $355,534 $352,879 $351,973 $332,112 $316,152
Stockholders' Equity $35,966 $35,283 $35,824 $32,300 $32,282
Total shares outstanding 8,572 8,503 8,503 8,193 8,133
Book Value per share $4.20 $4.15 $4.22 $3.94 $3.97
Loan to deposit ratio 91.27% 90.35% 87.09% 86.69% 92.53%
Non-performing assets
to total assets 0.46% 0.54% 0.79% 0.83% 1.06%
Non-performing loans to
total loans 0.63% 0.74% 1.10% 1.17% 1.43%
Allowance for loans
losses to total loans 1.25% 1.20% 1.20% 1.24% 1.32%
Leverage capital 9.29% 9.27% 9.79% 9.71% 9.44%
Tier 1 risk based capital 10.95% 11.34% 11.91% 11.91% 11.18%
Total risk based capital 12.06% 12.42% 13.02% 13.03% 12.43%
SOURCE Bank of Commerce Holdings
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Related links:
http://reddingbankofcommerce.com
CONTACT:
Michael C. Mayer, President & CEO,
+1-530-224-7361, or Linda J. Miles, Chief Financial Officer,
+1-530-224-7318, both of Bank of Commerce Holdings
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