EX-99.1 2 f32151exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

(BANK OF COMMERCE HOLDINGS LOGO)   Bank of Commerce Holdings    
  (NASDAQ: BOCH)    
       
    Company Press Release    
Company Profile
  Founded 1982
 
  Five offices – three markets
 
  Redding Bank of Commerce™
 
  Roseville Bank of Commerce™
 
  Sutter Bank of Commerce™
 
  Bank of Commerce Mortgage™
Investor Highlights
  5% stock dividend – 1986
 
  Annual cash dividends – since 1988
 
  Two for one stock split – 1985
 
  Three for one stock split – 1998
 
  10% stock dividend – 2000
 
  Three for one stock split – 2004
 
  Quarterly dividends – since 2005
 
  ACQB Index – America’s Community Bank Index
Business Overview
Bank of Commerce Holdings (the “Holding Company”) is a financial holding company (“FHC”) registered under the Bank Holding Company Act of 1956, as amended, and was incorporated in California on January 21, 1982. The Company owns Redding Bank of Commerce, Roseville Bank of Commerce, Sutter Bank of Commerce and Bank of Commerce Mortgage.
Contact Information
Michael C. Mayer, President & CEO
Telephone (530) 722-3950
Sam Jimenez, Director Risk Management
Telephone (530) 722-3952

www.reddingbankofcommerce.com
For immediate release:
Bank of Commerce Holdings, Announces
Second Quarter 2007 Operating Results –
REDDING, California, July 25, 2007/ PR Newswire— Bank of Commerce Holdings (NASDAQ: BOCH), a $605.6 million asset financial holding company, and parent company of Redding Bank of Commerce™, Roseville Bank of Commerce™, Sutter Bank of Commerce™ and Bank of Commerce Mortgage™ today announced second quarter 2007 operating results.
Bank of Commerce Holdings’ net income for the second quarter 2007 was $1,600,000 or $0.18 per diluted share compared to $1,689,000 or $0.19 per diluted share during the second quarter 2006, a decrease of 5.3%. Annualized return on average assets and return on average equity for the second quarter of 2007 were 1.07% and 13.69% respectively, compared with 1.25% and 15.94% for the second quarter of 2006.
On June 19, 2007, the Company announced a $0.08 quarterly cash dividend payable to shareholders of record as of June 30, 2007 and paid on July 13, 2007.
At June 30, 2007, Bank of Commerce Holdings’ total assets were $605.6 million, an increase of 3.79% or $22.1 million from December 31, 2006. Net loans increased to $437.8 million, an increase of $28.8 million from December 31, 2006.
The Company’s loan portfolio is sound and performing well. The Company’s allowance for loan losses was 1.12% of total loans at June 30, 2007 and 1.18% at December 31, 2006, while its ratio of non-performing assets to total assets was 0.00% at June 30, 2007, compared to 0.00% at December 31, 2006.

 


 

Market Data
Exchange: NASDAQ
Symbol: BOCH
Shares outstanding at 6/30/07: 8,908,880
Market Cap: $96,394,082
Recent Price : $10.82
52 week range: $10.00 - $12.50
Price/ Book (%): 198.78
SNL™ Peer Price/Book (%): 174.33
Price/Earnings (x): 13.89
SNL™ Peer Price/Earnings (x): 15.51
Price/LTM EPS (x): 14.82
Dividend Yield (%): 3.16
SNL ™ Peer Dividend Yield(%): 1.85
YTD Volume traded: 112,597
Insider Ownership: 30.29%
Provisions for loan losses for the quarter ended June 2007 were $0 compared to $143,000 for the same period in 2006. The Company’s OREO remained at $0 through the second quarter of 2007 and 2006.
Total deposits increased to $441.2 million, an increase of $1.8 million or 0.42% from December 31, 2006. The Company has launched several new deposit products including Forever Free Checking, Get Out and Play Checking, High Performance Savings and High Performance Checking packages during the period.
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 4.03% in the second quarter of 2007 compared to 4.47% for the same period in 2006.
Bank of Commerce Holdings, with administrative offices in Redding, California is a financial service holding company that owns Redding Bank of Commerce™, Roseville Bank of Commerce™, Sutter Bank of Commerce™ and Bank of Commerce Mortgage™. The Company is a federally insured California banking corporation and opened on October 22, 1982.
BOCH is a NASDAQ Global Market listed stock. Please contact your local investment advisor for purchases and sales. Investment firms making a market in BOCH stock are:
         
 
  Howe Barnes Hoefer & Arnett/ John Cavender   Morgan Stanley/ Rick Hill
 
  555 Market Street   310 Hemsted Drive, Suite 100
 
  San Francisco, CA   Redding, CA
 
  (800) 346-5544   (800) 733-6126
 
       
 
  Wachovia Securities/ Ken Myers, Rick Hansen   Raymond James Financial/ Geoff Ball
 
  10466 Brunswick Road   1805 Hilltop Drive, Suite 106
 
  Grass Valley, CA   Redding, CA
 
  (888) 383-3112   (800) 926-5040

 


 

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, 2006 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)
                         
Amounts in thousands, except per share data   June 30, 2007     Dec. 31,2006     June 30, 2006  
ASSETS
                       
 
                       
Cash and due from banks
  $ 18,206     $ 14,661     $ 12,668  
Federal funds sold and securities purchased under agreements to resell
    14,115       24,605       14,155  
 
                 
Cash and cash equivalents
    32,321       39,266       26,823  
Securities available-for-sale (including pledged collateral of $93,790 at June 30, 2007; $71,686 at December 31, 2006 and $83,080 at June 30, 2006)
    94,029       95,601       97,366  
Securities held-to-maturity, at cost (estimated fair value of $10,369 at June 30, 2007, $10,892 at December 31, 2006 and $10,889 at June 30, 2006)
    10,637       10,810       11,141  
Loans, net of the allowance for loan losses of $4,943 at June 30, 2007, $4,904 at December 31, 2006 and $4,502 at June 30, 2006
    437,821       408,990       401,185  
Bank premises and equipment, net
    10,329       8,595       6,690  
Other assets
    20,440       20,180       20,942  
 
                 
 
                       
TOTAL ASSETS
  $ 605,577     $ 583,442     $ 564,147  
 
                 
 
                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
                       
 
                       
Demand — noninterest bearing
  $ 69,842     $ 84,779     $ 74,505  
Demand — interest bearing
    114,530       119,437       101,492  
Savings
    45,082       22,749       23,112  
Certificates of deposits
    211,794       212,442       189,577  
 
                 
Total deposits
    441,248       439,407       388,686  
 
                       
Securities sold under agreements to repurchase
    46,655       37,117       32,507  
Federal Home Loan Bank borrowings
    50,000       40,000       80,000  
Other liabilities
    7,114       7,537       6,536  
Guaranteed Preferred Beneficial Interests in Company’s Junior Subordinated Debt payable to unconsolidated subsidiary grantor trust
    15,465       15,465       15,465  
 
                 
Total Liabilities
    560,482       539,526       523,194  
 
                       
Commitments and contingencies
                       
Stockholders’ Equity:
                       
Preferred stock, no par value, 2,000,000 authorized no shares issued and outstanding in 2007 and 2006
                 
Common stock , no par value, 50,000,000 shares authorized; 8,908,880 shares issued and outstanding at June 30, 2007, 8,847,042 at December 31, 2006 and 8,729,672 at June 30, 2006
    11,966       11,517       11,441  
Retained earnings
    34,997       33,336       31,479  
Accumulated other comprehensive (loss), net of tax
    (1,868 )     (937 )     (1,967 )
 
                 
Total Stockholders’ equity
    45,095       43,916       40,953  
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 605,577     $ 583,442     $ 564,147  
 
                 

 


 

BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
Three and six months ended June 30, 2007 and 2006
                                 
    Three Months Ended     Six Months Ended  
Amounts in thousands, except for per share data   June 30, 2007     June 30, 2006     June 30, 2007     June 30, 2006  
Interest income:
                               
Interest and fees on loans
  $ 8,965     $ 8,149     $ 17,429     $ 15,380  
Interest on tax exempt securities
    334       140       612       263  
Interest on U.S. government securities
    816       864       1,648       1,726  
Interest on federal funds sold and securities purchased under agreements to resell
    190       145       390       275  
Interest on other securities
    9       44       45       88  
 
                       
Total interest income
    10,314       9,342       20,124       17,732  
 
                       
Interest expense:
                               
Interest on demand deposits
    587       286       1,144       519  
Interest on savings deposits
    355       75       526       140  
Interest on time deposits
    2,627       1,872       5,232       3,421  
Securities sold under agreements to repurchase
    381       267       723       466  
Interest on FHLB and other borrowing expense
    632       902       1,171       1,574  
Interest on junior subordinated debt payable to unconsolidated subsidiary grantor trust
    271       266       540       524  
 
                       
Total interest expense
    4,853       3,668       9,336       6,644  
 
                       
Net interest income
    5,461       5,674       10,788       11,088  
Provision for loan and lease losses
    0       143       6       154  
 
                       
Net interest income after provision for loan losses
    5,461       5,531       10,782       10,934  
 
                       
Noninterest income:
                               
Service charges on deposit accounts
    76       86       145       174  
Payroll and benefit processing fees
    89       89       197       198  
Earnings on cash surrender value —
Bank owned life insurance
    99       98       194       151  
Net gain (loss) on sale of securities available-for-sale
    0       0       46       0  
Net gain on sale of loans
    0       0       0       0  
Merchant credit card service income, net
    96       93       188       170  
Mortgage brokerage fee income
    29       35       35       52  
Other income
    229       111       311       214  
 
                       
Total non-interest income
    618       512       1,116       959  
 
                       
Noninterest expense:
                               
Salaries and related benefits
    1,959       1,996       4,056       3,874  
Occupancy and equipment expense
    543       448       1,001       883  
FDIC insurance premium
    13       12       26       24  
Data processing fees
    90       58       145       116  
Professional service fees
    252       150       447       354  
Payroll and Benefit fees
    25       25       56       54  
Deferred compensation expense
    101       90       198       178  
Stationery and Supplies
    46       49       107       109  
Postage
    34       34       67       65  
Directors’ expense
    76       65       121       125  
Other expenses
    562       383       965       766  
 
                       
Total non-interest expense
    3,701       3,310       7,189       6,548  
 
                       
Income before income taxes
    2,378       2,733       4,709       5,345  
Provision for income taxes
    778       1,044       1,622       2,064  
 
                       
Net Income
  $ 1,600     $ 1,689     $ 3,087     $ 3,281  
 
                       
Basic earnings per share
  $ 0.18     $ 0.19     $ 0.35     $ 0.38  
Weighted average shares — basic
    8,908       8,723       8,887       8,702  
Diluted earnings per share
  $ 0.18     $ 0.19     $ 0.34     $ 0.37  
Weighted average shares – diluted
    9,063       8,912       8,985       8,896  

 


 

BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Quarterly Financial Condition Data
(Unaudited)
For the Quarter Ended
                                                         
    June 30,     March 31,     Dec. 31,     Sept 30,     June 30,     March 31,     Dec. 31,  
    2007     2007     2006     2006     2006     2006     2005  
Cash and due from banks
  $ 18,206     $ 12,597     $ 14,661     $ 17,535     $ 12,668     $ 11,819     $ 17,436  
Federal funds sold and securities purchased under agreements to resell
    14,115       21,195       24,605       28,010       14,155       9,835       9,120  
 
                                         
Total Cash & Equivalents
    32,321       33,792       39,266       45,545       26,823       21,654       26,556  
Securities available-for-sale
    94,029       92,769       95,601       97,614       97,366       93,645       94,014  
Securities held to maturity, at cost
    10,637       10,673       10,810       10,841       11,141       7,620       6,933  
Loans, net of allowance for loan losses
    437,821       411,357       408,990       403,657       401,185       374,983       363,305  
Bank premises and equipment, net
    10,329       9,992       8,595       7,350       6,690       6,261       5,631  
Other assets
    20,440       19,513       20,180       20,211       20,942       18,733       15,205  
 
                                         
TOTAL ASSETS
  $ 605,577     $ 578,096     $ 583,442     $ 585,218     $ 564,147     $ 522,896     $ 511,644  
 
                                         
 
                                                       
Liabilities:
                                                       
Demand — noninterest bearing
  $ 69,842     $ 70,035     $ 84,779     $ 81,125     $ 74,505     $ 74,519     $ 86,219  
Demand — interest bearing
    114,530       112,550       119,437       111,439       101,492       102,003       109,101  
Savings
    45,082       41,537       22,749       22,610       23,111       28,477       27,540  
Certificates of deposit
    211,794       211,422       212,442       214,019       189,577       173,106       149,256  
 
                                         
Total deposits
    441,248       435,544       439,407       429,193       388,685       378,105       372,116  
 
                                                       
Securities sold under agreements to repurchase
    46,655       35,053       37,117       35,260       32,507       25,117       22,886  
Federal Home Loan Bank borrowings
    50,000       40,000       40,000       55,000       80,000       55,000       55,000  
Other liabilities
    7,114       6,646       7,537       6,352       6,536       8,864       7,194  
Junior subordinated debt payable to subsidiary grantor trust
    15,465       15,465       15,465       15,465       15,465       15,465       15,310  
 
                                         
Total liabilities
    560,482       532,708       539,526       541,270       523,193       482,551       472,506  
 
                                         
Stockholders’ equity:
                                                       
Common stock
    11,966       11,940       11,517       12,416       11,442       11,198       11,009  
Retained earnings
    34,997       34,110       33,336       32,526       31,479       30,535       29,419  
Accumulated other comprehensive income (loss), net
    (1,868 )     (662 )     (937 )     (994 )     (1,967 )     (1,388 )     (1,290 )
 
                                         
Total stockholders’ equity
    45,095       45,388       43,916       43,948       40,954       40,345       39,138  
 
                                         
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 605,577     $ 578,096     $ 583,442     $ 585,218     $ 564,147     $ 522,896     $ 511,644  
 
                                         
 
                                                       
Interest Income:
                                                       
Net interest income
    5,461     $ 5,327     $ 5,418     $ 5,530     $ 5,674     $ 5,413     $ 5,395  
Provision for loan losses
    0       6       0       72       143       11       6  
 
                                         
Net interest income after provision for loan losses
    5,461       5,321       5,418       5,458       5,531       5,402       5,389  
 
                                         
Noninterest Income:
                                                       
Service charges
    76       69       91       81       86       88       91  
Merchant credit card service income, net
    89       92       100       89       93       77       78  
Net (loss) on sale of securities available-for-sale
    0       46       0       (171 )     0       0       0  
Mortgage brokerage fee income
    29       6       (13 )     32       35       17       7  
Other income
    424       285       363       397       298       266       343  
 
                                         
Total noninterest income
    618       498       541       428       512       448       519  
Noninterest Expense:
                                                       
Salaries and related benefits
    1,959       2,097       2,150       1,996       1,996       1,878       1,796  
Net Occupancy and equipment expense
    543       458       496       467       448       435       399  
Professional service fees
    252       195       181       149       150       204       72  
Other expenses
    947       738       659       687       716       721       579  
 
                                         
Total noninterest expense
    3,701       3,488       3,486       3,299       3,310       3,238       2,846  
 
                                                       
Income before income taxes
    2,378       2,331       2,473       2,587       2,733       2,612       3,062  
Provision for income taxes
    778       844       858       915       1,044       1,020       1,191  
 
                                         
Net Income
  $ 1,600     $ 1,487     $ 1,615     $ 1,672     $ 1,689     $ 1,592     $ 1,871  
 
                                         

 


 

Average Balances, Interest Income/Expense and Yields/Rates Paid
(Unaudited, Dollars in thousands)
                                                   
    Six Months Ended       Six Months Ended  
    June 30, 2007       June 30, 2006  
    Average             Yield/       Average             Yield/  
    Balance     Interest     Rate       Balance     Interest     Rate  
Earning Assets
                                                 
Portfolio Loans
  $ 416,141     $ 17,429       8.38 %     $ 381,070     $ 15,380       8.07 %
Tax-exempt Securities
    30,548       612       4.01 %       14,911       263       3.53 %
US Government Securities
    72,937       1,648       4.52 %       84,890       1,726       4.07 %
Federal Funds Sold
    13,473       390       5.79 %       11,463       275       4.80 %
Other Securities
    2,000       45       4.50 %       4,053       88       4.34 %
 
                                     
Average Earning Assets
  $ 535,099     $ 20,124       7.52 %     $ 496,387     $ 17,732       7.14 %
 
                                             
 
                                                 
Cash & Due From Banks
  $ 13,473                       $ 14,078                  
Bank Premises
    9,742                         6,249                  
Allowance for Loan and Lease Losses
    ( 4,890 )                       ( 4,372 )                
Other Assets
    21,040                         14,537                  
 
                                             
Average Total Assets
  $ 574,464                       $ 526,879                  
 
                                             
 
                                                 
Interest Bearing Liabilities
                                                 
Demand Interest Bearing
  $ 110,668     $ 1,144       2.07 %     $ 104,439     $ 519       0.99 %
Savings Deposits
    35,957       526       2.93 %       26,736       140       1.05 %
Certificates of Deposit
    213,721       5,232       4.90 %       172,074       3,421       3.98 %
Repurchase Agreements
    37,064       723       3.90 %       25,972       466       3.59 %
FHLB Borrowings
    43,260       1,171       5.41 %       63,370       1,574       4.93 %
Trust Preferred Borrowings
    15,000       540       7.20 %       15,000       524       7.16 %
 
                                     
Average Interest Bearing Liabilities
    455,670     $ 9,336       4.53 %       407,591     $ 6,644       3.26 %
 
                                           
Non interest Demand
    72,321                         77,213                  
Other Liabilities
    1,370                         5,903                  
Shareholder Equity
    45,103                         36,172                  
 
                                             
Average Liabilities and Stockholders’ Equity
  $ 574,464                       $ 526,879                  
 
                                             
Net Interest Income and Net Interest Margin
          $ 10,788       4.03 %             $ 11,088       4.47 %
 
                                             
Interest income on loans includes fee income of approximately $135,554 and $272,900 for the period ended June 30, 2007 and 2006, respectively. The Company’s average total assets increased to $574.5 million at June 30, 2007 compared to $496.4 million for the same period in 2006, a $47.6 million increase or 9.0%.
The Company’s practice is to place an asset on nonaccrual status when one of the following events occurs: (i) Any installment of principal or interest is 90 days or more past due, (ii) management determines the ultimate collection of principal or interest to be unlikely or (iii) the terms of the loan have been renegotiated due to a serious weakening of the borrower’s financial condition. Interest income on loans does not reflect accruals on loans in a nonaccrual status. Accruals are resumed on loans only when they are brought fully current with respect to interest and principal and when the loan is estimated to be fully collectible.