REDDING, Calif., — /PRNewswire-FirstCall/ — Bank of Commerce Holdings , a $616.0 million asset financial holding company, and parent company of Redding Bank of Commerce(TM), Roseville Bank of Commerce(TM), Sutter Bank of Commerce(TM) and Bank of Commerce Mortgage(TM) today announced third quarter 2007 operating results.
“The strength of our core banking business continued to serve us very well through the third quarter 2007. Top line revenues increased to $32.5 million in 2007 compared with $29.1 million in 2006, an 11.5% increase over the prior year. Overall, our performance remains above average and consistent with our goal of achieving upper quartile performance compared with our peers. While our operating results declined 10% on a year-over-year basis, a nonrecurring event accounted for almost half of this variance.
“Our loan and deposit trends were solid and our team continued to earn more of our customers business. We maintained our conservative risk management practices and our strong balance sheet and capital ratios. We are not immune to the evolving slowdown in the housing sector, yet we had another solid quarter despite turbulent credit markets. Looking ahead, we are taking appropriate steps to ensure we focus intently on actively managing our exposures and controlling costs.
“We continue to invest in our business for the long term and to introduce new products and services in our marketplace. We are preparing to launch in November a brand new eye-catching brand look. (Hint: the most trusted name in business just got more personal.)
“You will see the bank’s colorful, contemporary redesign in everything from our fresh logo mark, branch signage and account statements to our newly re-launched website.
“Our new Buenaventura office located in an upscale shopping district on the Westside of Redding is scheduled to open mid-December 2007,” said Patrick J. Moty, President and CEO of the Company.
Bank of Commerce Holdings’ net income for the third quarter 2007 decreased 20.4 percent to $1,331,000 or $0.15 per diluted share compared to $1,672,000 or $0.19 per diluted share during the third quarter 2006. Annualized return on average assets and return on average equity for the third quarter of 2007 were 0.93% and 12.03% respectively, compared with 1.17% and 15.11% for the third quarter of 2006.
On September 18, 2007, the Company announced a $0.08 quarterly cash dividend payable to shareholders of record as of September 28, 2007 and was paid on October 12, 2007.
At September 30, 2007, Bank of Commerce Holdings’ total assets were $616.0 million, an increase of 5.58% or $32.5 million from December 31, 2006. Net loans increased to $461.2 million, an increase of $52.2 million from December 31, 2006.
The Company’s loan portfolio is sound and performing well. The Company’s allowance for loan losses was 1.09% of total loans at September 30, 2007 and 1.18% at December 31, 2006, while its ratio of non-performing assets to total assets was 0.17% at September 30, 2007, compared to 0.00% at December 31, 2006. Provisions for loan losses for the quarter ended September 2007 were $115,000 compared to $72,000 for the same period in 2006. The Company’s OREO remained at $0 through the third quarter of 2007 and 2006.
Total deposits increased to $472.2 million, an increase of $32.8 million or 7.5% from December 31, 2006. The Company has benefited from several new deposit products including Forever Free checking, Sports Series Checking, High Performance Savings and High Performance Checking packages.
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 4.18% in the third quarter of 2007 compared to 4.92% 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(TM), Roseville Bank of Commerce(TM), Sutter Bank of Commerce(TM) and Bank of Commerce Mortgage(TM). The Company is a federally insured California banking corporation and opened on October 22, 1982.
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