Patrick J. Moty,
President & CEO
of Bank of Commerce Holdings (Nasdaq: BOCH), a
financial services holding company, and parent company of Redding Bank of Commerce™,
of Commerce™, and Bank of Commerce Mortgage™ today announced 2009 operating results.
"We decided early on that our best strategy for 2009 was to create an unquestionably strong balance sheet and stay focused on what we do best –
and the results are in. We are very proud of the financial performance of our Company through the current downward economic cycle. Operationally and financially our Company's performance has exceeded our projections,"
- Diluted EPS of $0.58, up 132% year-over-year
- Net income of $6.0 million, up $3.8 million or 174% year-over-year
- Average earning assets up $120.2 million or 19.6% year-over-year
- Average portfolio loans up $70.6 million or 13.6% year-over-year
- Average deposits up $93.6 million or 21.2% year-over-year
- Provision for loan losses of $9.5 million
- Total risk based capital of 12.96%
- Cash dividends of $2.3 million paid in 2009
Patrick J. Moty
, President & CEO.
While the current economic environment remains extremely challenging, our company provided solid value to our shareholders in 2009. Our Company earned
per diluted share reflecting a year-over-year increase exceeding 132%. We declared cash dividends totaling
per share in 2009, representing a yield of 4.55%.
Management maintained a diligent and aggressive stance in regards to asset quality. The Company provided
in loan loss provisions reflecting our continuing proactive and rigid stance in identifying and recognizing impaired credits. While portions of our loan portfolio remain to some extent stressed, our capital position is strong and supportive of continuing organic and strategic growth opportunities.
Our balance sheet grew by
or 5.11% on a year-over-year basis; the majority of our asset growth was centered in the loan portfolio. Total loans outstanding at
or 18.9% compared to 12/31/08, illustrating our willingness and commitment to serving our customers and our community.
We funded our asset growth through deposit growth. Total deposits increased
or 15.3% over 2008. Deposit generation also assisted in reducing the level of wholesale borrowings by
Net Interest Income
The Company's earnings performance is highly dependent on net interest income. Net interest income increased 35.8% or
on a year-over-year basis. Total interest income increased
or 9.7% while total interest expense decreased
or 24.5%. The aforementioned loan growth coupled with reduced funding costs associated with repricing time deposits and wholesale borrowings were the primary drivers in our year-over-year improvement in net interest income.
The Company recognized
in gains on sale of securities in 2009. This represents an increase of 288% or
over 2008. Approximately
in available-for-sale securities were sold for liquidity purposes to fund loan growth and reduce the level of wholesale borrowings.
Management does not consider securities gains as a source of recurring income.