Bank of Commerce Holdings Announces Results for the Fourth Quarter of 2017

SACRAMENTO, Calif., Jan. 19, 2018 (GLOBE NEWSWIRE) -- Bank of Commerce Holdings (NASDAQ:BOCH) (the “Company”), a $1.3 billion asset bank holding company and parent company of Redding Bank of Commerce (the “Bank”), today announced financial results for the quarter and the year ended December 31, 2017. Net income for the quarter ended December 31, 2017 was $7 thousand or $0.00 per share – diluted, compared with net income of $2.3 million or $0.17 per share – diluted for the same period of 2016. Net income for the year ended December 31, 2017 was $7.3 million or $0.48 per share – diluted compared with $5.3 million or $0.39 per share – diluted for the year ended December 31, 2016.

Significant Item – Tax Cuts and Jobs Act of 2017

The 2017 results include the $2.5 million negative net impact of the Tax Cuts and Jobs Act of 2017(“Act”) for both the fourth quarter ($0.15 per share – diluted) and for the year ($0.16 per share – diluted). The Act reduced the federal corporate tax rate from 35% to 21% and required the Company to revalue its deferred tax assets and liabilities. Management believes that our financial results are more comparative excluding the impact of these deferred tax asset and liability revaluations.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. We believe that these non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this document are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported.

SELECTED NON-GAAP FINANCIAL INFORMATION - UNAUDITED
(amounts in thousands except per share data)
For The Three Months Ended For The Twelve Months Ended
Reconciliation of Net Income (GAAP) to Net Income Excluding December 31, September 30, December 31,
Deferred Tax Asset Write-down (non-GAAP): 2017 2016 2017 2017
2016
Net income (GAAP) $ 7 $ 2,297 $ 2,876 $ 7,344 $ 5,259
Deferred tax asset write-down (GAAP) 2,490 2,490 363
Net income excluding deferred tax asset write-down (non-GAAP) $ 2,497 $ 2,297 $ 2,876 $ 9,834 $ 5,622
Earnings per share - diluted (GAAP) $ $ 0.17 $ 0.18 $ 0.48 $ 0.39
Effect of deferred tax asset write-down 0.15 0.16 0.03
Earnings per share - diluted excluding net deferred tax asset write-down $ 0.15 $ 0.17 $ 0.18 $ 0.64 $ 0.42
Non-GAAP Ratios:
Return on average assets excluding net deferred tax asset write-down 0.79% 0.81% 0.93% 0.82% 0.52%
Return on average equity excluding net deferred tax asset write-down 7.69% 9.69% 9.01% 8.48% 6.07%
Effective tax rate excluding deferred tax asset write-down 34.46% 19.94% 33.16% 31.10% 22.10%
GAAP Information:
Return on average assets 0.00% 0.81% 0.93% 0.61% 0.49%
Return on average equity 0.02% 9.69% 9.01% 6.34% 5.68%
Effective tax rate 99.82% 19.94% 33.16% 48.54% 27.13%

Randall S. Eslick, President and CEO commented: “In 2017 we continued executing on our corporate vision and strategic plan to earn our independence. I am especially proud of the hard work and dedication of our employees as they delivered extraordinary growth in loans and deposits and enhanced returns to our shareholders. Our company is well positioned to meet the opportunities and challenges of the coming year and I look forward to our continued growth and success.”

Financial highlights for the year ended December 31, 2017:

  • Average deposits for the year ended December 31, 2017 totaled $1.0 billion, an increase of $115.1 million (12%) compared to average deposits for the prior year.
  • Average loans for the year ended December 31, 2017 totaled $818.1 million, an increase of $65.2 million (9%) compared to average loans for the prior year.
  • Average earning assets totaled $1.1 billion for the year ended December 31, 2017, an increase of $116.8 million (12%) compared to average earning assets for the prior year.
  • Net income of $7.3 million or $0.48 per share – diluted for the year ended December 31, 2017 was an increase of $2.1 million (40%) from $5.3 million or $0.39 per share – diluted earned during the same period in the prior year. Net income for 2016 was negatively impacted by $3.0 million of branch acquisition and balance sheet restructuring costs, a $546 thousand other-than-temporary-impairment of an investment security and the write-off of a $363 thousand deferred tax asset.
  • Return on average assets improved to 0.61% for the year ended December 31, 2017 compared to 0.49% for the prior year.
  • Return on average equity improved to 6.34% for the year ended December 31, 2017 compared to 5.68% for the prior year.
  • The Company’s efficiency ratio was 67.0% for the year ended December 31, 2017 compared to 81.9% for the prior year.
  • Net interest income increased $5.1 million (14%) to $41.4 million for the year ended December 31, 2017 compared to $36.2 million for the prior year.
  • Nonperforming assets at December 31, 2017 totaled $5.8 million or 0.46% of total assets, a decrease of $6.3 million (52%) compared to December 31, 2016.
  • Tangible book value per common share was $7.70 at December 31, 2017 compared to $6.83 at December 31, 2016.

Financial highlights for the fourth quarter of 2017:

  • Average deposits for the three months ended December 31, 2017 totaled $1.1 billion, an increase of $28.7 million (11% annualized) compared to average deposits for the prior quarter.
  • Average loans for the three months ended December 31, 2017 totaled $839.0 million, an increase of $33.9 million (17% annualized) compared to average loans for the prior quarter.
  • Average earning assets for the three months ended December 31, 2017 totaled $1.2 billion, an increase of $31.9 million (11% annualized) compared to average earning assets for the prior quarter.
  • Net income of $7 thousand or $0.00 per share – diluted for the three months ended December 31, 2017 was a decrease of $2.3 million (100%) from $2.3 million or $0.17 per share – diluted earned during the same period in the prior year.
  • Return on average assets declined to 0.00% for the fourth quarter of 2017 compared to 0.81% for the same period in the prior year.
  • Return on average equity declined to 0.02% for the fourth quarter of 2017 compared to 9.69% for the same period in the prior year.
  • The Company’s efficiency ratio was 64.9% for the fourth quarter of 2017 compared to 73.2% during the same period in 2016.
  • Net interest income increased $1.4 million (15%) to $10.9 million for the fourth quarter of 2017 compared to $9.4 million for the same period in the prior year.
  • Nonperforming assets at December 31, 2017 totaled $5.8 million or 0.46% of total assets, a decrease of $2.5 million since September 30, 2017.

Forward-Looking Statements

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 our 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
  • A decline in the health of the economy nationally or regionally which could reduce the demand for loans or reduce the value of real estate collateral securing most of our loans
  • Credit quality deterioration which could cause an increase in the provision for loan and lease losses
  • 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 fiscal year ended December 31, 2016 under the heading “Risk Factors” and to 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. The Company undertakes no obligation and specifically disclaims any obligation to revise or publicly release the results of any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date the statements were made.

TABLE 1
SELECTED FINANCIAL INFORMATION - UNAUDITED
(amounts in thousands except per share data)
For The Three Months Ended For The Twelve Months Ended
December 31, September 30, December 31,
Net income, average assets and average shareholders' equity 2017 2016 2017 2017 2016
Net income $ 7 $ 2,297 $ 2,876 $ 7,344 $ 5,259
Average total assets $ 1,251,960 $ 1,126,034 $ 1,220,900 $ 1,198,251 $ 1,079,750
Average total earning assets $ 1,178,037 $ 1,051,387 $ 1,146,132 $ 1,124,555 $ 1,007,793
Average shareholders' equity $ 128,862 $ 94,326 $ 126,574 $ 115,901 $ 92,554
Selected performance ratios
Return on average assets 0.00% 0.81% 0.93% 0.61% 0.49%
Return on average equity 0.02% 9.69% 9.01% 6.34% 5.68%
Efficiency ratio 64.94% 73.17% 63.10% 67.04% 81.83%
Share and per share amounts
Weighted average shares - basic (1) 16,195 13,370 16,191 15,207 13,367
Weighted average shares - diluted 16,306 13,476 16,288 15,310 13,425
Earnings per share - basic $ $ 0.17 $ 0.18 $ 0.48 $ 0.39
Earnings per share - diluted $ $ 0.17 $ 0.18 $ 0.48 $ 0.39
At December 31, At September 30,
Share and per share amounts 2017 2016 2017
Common shares outstanding (2) 16,272 13,440 16,265
Tangible book value per common share $ 7.82 $ 6.83 $ 7.77
Capital ratios
Bank of Commerce Holdings (3)
Common equity tier 1 capital ratio (4) 12.26% 9.43% 12.66%
Tier 1 capital ratio (4) 13.23% 10.42% 13.65%
Total capital ratio (4) 15.44% 12.68% 15.91%
Tier 1 leverage ratio (4) 10.86% 9.13% 11.12%
Tangible common equity ratio (5) 9.88% 8.07% 10.27%
Redding Bank of Commerce
Common equity tier 1 capital ratio (4) 12.58% 12.31% 12.87%
Tier 1 capital ratio (4) 12.58% 12.31% 12.87%
Total capital ratio (4) 13.81% 13.55% 14.12%
Tier 1 leverage ratio (4) 10.33% 10.80% 10.50%
(1) Excludes unvested restricted shares issued in accordance with the Company's equity incentive plan, as they are non participative in dividends or voting rights.
(2) Includes unvested restricted shares issued in accordance with the Company's equity incentive plan.
(3) Capital ratios for the Company include the benefit of $26.8 million net proceeds from the sale of 2,738,096 shares of common stock in the second quarter of 2017.
(4) The Company and the Bank continue to meet all capital adequacy requirements to which they are subject. The capital ratios for 2016 were impacted by increased average total assets, the addition of $1.8 million of core deposit intangible and $665 thousand of goodwill recorded in conjunction with the acquisition of five branches in March of 2016.
(5) Management believes the tangible common equity ratio is a useful measure of capital adequacy because it provides a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability of the Company to absorb potential losses. The tangible common equity ratio is calculated as total shareholders' equity less goodwill and core deposit intangible, net divided by total assets less goodwill and core deposit intangible, net.

BALANCE SHEET OVERVIEW

As of December 31, 2017, the Company had total consolidated assets of $1.3 billion, gross loans of $879.8 million, allowance for loan and lease losses (“ALLL”) of $11.9 million, total deposits of $1.1 billion, and shareholders’ equity of $127.3 million.

TABLE 2
LOAN BALANCES BY TYPE - UNAUDITED
(amounts in thousands)
At December 31, At September 30,
% of % of Change % of
2017 Total 2016 Total Amount % 2017 Total
Commercial$ 149,088 17% $ 153,844 19% $ (4,756) (3)% $ 147,212 18%
Real estate - construction and land development 15,902 2 36,792 5 (20,890) (57)% 14,700 2
Real estate - commercial non-owner occupied 377,668 43 292,615 36 85,053 29 % 333,766 40
Real estate - commercial owner occupied 185,340 21 167,335 21 18,005 11 % 183,424 22
Real estate - residential - ITIN 41,188 5 45,566 6 (4,378) (10)% 42,063 5
Real estate - residential - 1-4 family mortgage 30,377 3 20,425 3 9,952 49 % 21,119 3
Real estate - residential - equity lines 30,347 3 35,953 4 (5,606) (16)% 31,158 4
Consumer and other 49,925 6 51,681 6 (1,756) (3)% 51,432 6
Gross loans 879,835 100% 804,211 100% 75,624 9 % 824,874 100%
Deferred fees and costs 1,710 1,324 386 1,770
Loans, net of deferred fees and costs 881,545 805,535 76,010 826,644
Allowance for loan and lease losses (11,925) (11,544) (381) (11,692)
Net loans$ 869,620 $ 793,991 $ 75,629 $ 814,952
Average yield on loans during the quarter 4.77% 4.69% 0.08 4.87%

The Company recorded gross loan balances of $879.8 million at December 31, 2017, compared with $804.2 million and $824.9 million at December 31, 2016 and September 30, 2017, respectively, an increase of $75.6 million and $55.0 million, respectively. The increase in gross loans compared to the same period a year ago and the prior period was driven by organic loan originations and is the result of investments in our SBA division and in our expanded Sacramento commercial banking group.

Average loan balances were $839.0 million for the quarter ended December 31, 2017, compared with $778.5 for the quarter ended December 31, 2016 and $805.1 million for the quarter ended September 30, 2017, an increase of $60.5 million or 8% and an increase of $33.9 million or 17% annualized, respectively.

The average yield on loans during the quarter was 4.77% compared to 4.69% and 4.87% for the quarters ended December 31, 2016 and September 30, 2017, respectively. The prior quarter included $161 thousand of interest income from a nonaccrual loan that was repaid during the quarter and enhanced the average yield by eight basis points.

TABLE 3
CASH, CASH EQUIVALENTS, AND INVESTMENT SECURITIES - UNAUDITED
(amounts in thousands)
At December 31, At September 30,
% of % of Change % of
2017 Total 2016 Total Amount % 2017 Total
Cash and due from banks $ 17,979 5% $ 16,419 6% $ 1,560 10 % $ 19,929 6%
Interest-bearing deposits in other banks 48,991 15 51,988 19 (2,997) (6)% 65,702 19
Total cash and cash equivalents 66,970 20 68,407 25 (1,437) (2)% 85,631 25
Investment securities:
U.S. government and agencies 40,369 12 10,354 4 30,015 290 % 36,474 10
Obligations of state and political subdivisions 78,844 24 59,428 22 19,416 33 % 53,850 15
Residential mortgage backed securities and collateralized mortgage obligations 114,592 34 69,604 24 44,988 65 % 105,224 31
Corporate securities 4,992 1 16,116 6 (11,124) (69)% 6,968 2
Commercial mortgage backed securities 26,641 8 15,514 6 11,127 72 % 26,148 7
Other asset backed securities 2,516 1 4,158 2 (1,642) (39)% 3,830 1
Total investment securities - AFS 267,954 80 175,174 64 92,780 53 % 232,494 66
Obligations of state and political subdivisions - HTM 0 31,187 11 (31,187) (100)% 30,724 9
Total investment securities - AFS and HTM 267,954 80 206,361 75 61,593 30 % 263,218 75
Total cash, cash equivalents and investment securities $ 334,924 100% $ 274,768 100% $ 60,156 22 % $ 348,849 100%
Average yield on interest-bearing due from banks and investment securities during the quarter - (nominal) 2.30% 1.95% 0.35 2.19%

As of December 31, 2017, we maintained noninterest-bearing cash positions of $18.0 million and interest-bearing deposits of $49.0 million at the Federal Reserve Bank and correspondent banks. During the fourth quarter of 2017, we deployed liquidity provided by the sale of common stock and strong organic deposit growth into organic loan originations, and AFS securities.

During the fourth quarter, we reclassified the entire HTM securities portfolio to AFS. At the date of the reclassification the HTM securities portfolio was recorded at an amortized cost of $30.3 million. The reclassification of securities between categories was accounted for at fair value. At the date of the reclassification, the securities had a fair value of $31.4 million and unrealized holding gains of $1.2 million which were recorded in other comprehensive income.

Investment securities totaled $268.0 million at December 31, 2017, compared with $206.4 million and $263.2 million at December 31, 2016 and September 30, 2017, respectively. Our investment securities portfolio provides us with a secondary source of liquidity to fund higher yielding asset opportunities, such as loan originations. During the fourth quarter of 2017, we purchased 20 securities with a par value of $29.6 million and weighted average yield of 2.71% and sold 19 securities with a par value of $16.0 million and weighted average yield of 2.33%. The sales activity on available-for-sale securities resulted in $2 thousand in net realized losses. There were no purchases or sales of held-to-maturity securities during the fourth quarter of 2017. During the same period, we received $7.4 million in proceeds from principal payments, calls and maturities within the investment securities portfolio. Average securities balances and weighted average tax equivalent yields for the quarters ended December 31, 2017 and 2016 were $272.0 million and 2.94% compared to $197.2 million and 3.02%, respectively.

At December 31, 2017, our net unrealized losses on available-for-sale investment securities were $452 thousand compared with net unrealized losses of $1.3 million and net unrealized gains of $630 thousand at December 31, 2016 and September 30, 2017, respectively. The changes in the net unrealized gain or loss on the investment securities portfolio are primarily due to changes in market interest rates and the reclassification of all HTM securities to AFS during the fourth quarter of 2017.

TABLE 4
DEPOSITS BY TYPE - UNAUDITED
(amounts in thousands)
At December 31, At September 30,
% of % of Change % of
2017 Total 2016 Total Amount % 2017 Total
Demand - noninterest-bearing$ 305,650 28% $ 270,398 27% $ 35,252 13 % $ 316,814 30%
Demand - interest-bearing 496,990 45 405,569 40 91,421 23 % 433,466 41
Total demand 802,640 73 675,967 67 126,673 19 % 750,280 71
Savings 110,837 10 113,309 11 (2,472) (2)% 111,962 11
Total non-maturing deposits 913,477 83 789,276 78 124,201 16 % 862,242 82
Certificates of deposit 189,255 17 215,390 22 (26,135) (12)% 200,543 18
Total deposits$ 1,102,732 100% $ 1,004,666 100% $ 98,066 10 % $ 1,062,785 100%
Average rate on interest-bearing deposits during the quarter 0.42% 0.40% 0.02 0.43%
Average rate on all deposits during the quarter 0.30% 0.29% 0.01 0.31%

Total deposits at December 31, 2017, increased $98.1 million or 10% to $1.1 billion compared to December 31, 2016, and increased $39.9 million or 15% annualized compared to September 30, 2017. Total non-maturing deposits increased $124.2 million or 16% compared to the same date a year ago and increased $51.2 million or 24% annualized compared to September 30, 2017. Certificates of deposit decreased $26.1 million or 12% compared to the same date a year ago and decreased $11.2 million or 23% annualized compared to September 30, 2017.

TABLE 5
WHOLESALE AND BROKERED DEPOSITS - UNAUDITED
(amounts in thousands)
At December 31, At September 30,
2017 2016 2017
CDARS / ICS reciprocal brokered deposits$ 66,279 $ 65,212 $ 56,203
Online listing service wholesale time deposits 36,060 48,900 37,293
Total wholesale and brokered deposits$ 102,339 $ 114,112 $ 93,496

In accordance with regulatory Call Report instructions, the Bank will file (or has filed) quarterly Call Reports which list brokered deposits of $66.3 million, $65.2 million and $56.2 million at December 31, 2017, December 31, 2016 and September 30, 2017, respectively.

INCOME STATEMENT OVERVIEW

TABLE 6
SUMMARY INCOME STATEMENT - UNAUDITED
(amounts in thousands, except per share data)
For The Three Months Ended
December 31, Change September 30, Change
2017 2016 Amount % 2017 Amount %
Interest income $ 12,047 $ 10,518 $ 1,529 15 % $ 11,765 $ 282 2 %
Interest expense 1,178 1,084 94 9 % 1,181 (3) %
Net interest income 10,869 9,434 1,435 15 % 10,584 285 3 %
Provision for loan
and lease losses
450 450 100 % 450 100 %
Noninterest income 1,282 1,260 22 2 % 1,076 206 19 %
Noninterest expense 7,891 7,825 66 1 % 7,357 534 7 %
Income before provision
for income taxes
3,810 2,869 941 33 % 4,303 (493) (11)%
Provision for income taxes:
Net deferred tax asset write-down 2,490 2,490 100 % 2,490 100 %
Provision for income taxes from operations 1,313 572 741 130 % 1,427 (114) (8)%
Total provision for income taxes 3,803 572 3,231 565 % 1,427 2,376 167 %
Net income$ 7 $ 2,297 $ (2,290) (100)% $ 2,876 $ (2,869) (100)%
Basic earnings per share$ $ 0.17 $ (0.17) (100)% $ 0.18 $ (0.18) (100)%
Average basic shares 16,195 13,370 2,825 21 % 16,191 4 %
Diluted earnings per share$ $ 0.17 $ (0.17) (100)% $ 0.18 $ (0.18) (100)%
Average diluted shares 16,306 13,476 2,830 21 % 16,288 18 %
Dividends declared per common share$ 0.03 $ 0.03 $ % $ 0.03 $ %

Fourth Quarter of 2017 Compared With Fourth Quarter of 2016

Income before provision for income taxes for the fourth quarter of 2017 increased $941 thousand compared to the fourth quarter of 2016. In the current quarter, net interest income was $1.4 million higher and noninterest income was $22 thousand higher. These positive changes were offset by provision for loan and lease losses that was $450 thousand higher and noninterest expense that was $66 thousand higher.

Net Interest Income

Net interest income increased $1.4 million compared to the same period a year ago.

Interest income for the three months ended December 31, 2017 increased $1.5 million or 15% to $12.0 million. Interest and fees on loans increased $902 thousand due to a $60.5 million increase in average loan balances and an eight basis point increase in the average yield on the loan portfolio. Interest on securities increased $513 thousand due to a $74.8 million increase in average securities balances and a six basis point increase in the average yield on the securities portfolio. Interest on interest-bearing deposits due from banks increased $114 thousand primarily due to a 75 basis point increase in average yield resulting from increased fed funds rates.

Interest expense for the fourth quarter of 2017 increased $94 thousand or 9% to $1.2 million. The increase was primarily caused by a two basis point increase in the average rate paid on interest-bearing deposits and a $60.7 million increase in average interest-bearing demand deposits.

Provision for loan and lease loss

During the three months ended December 31, 2017 the company recorded a provision for loan and lease losses of $450 thousand reflecting growth in the loan portfolio. There was no provision for loan and lease losses during the fourth quarter of 2016.

Noninterest Income

Noninterest income for the three months ended December 31, 2017 increased $22 thousand compared to the fourth quarter for 2016. Net Gains on sale of OREO properties increased $336 thousand while FHLB dividends decreased $272 thousand (a special dividend was recorded during the prior year).

Noninterest Expense

Noninterest expense for the three months ended December 31, 2017 increased $66 thousand compared to the same period a year previous. The increase in noninterest expense was primarily due to the following negative items:

  • Compensation costs increased $286 thousand
  • Premises and equipment costs increased $51 thousand

These increases were partially offset by the following positive items:

  • Professional service fees decreased $202 thousand
  • Data processing fees decreased $78 thousand

The Company’s efficiency ratio was 64.9% for the fourth quarter of 2017 compared to 73.2% during the same period in 2016.

Income Tax Provision

For the three months ended December 31, 2017, our income tax provision of $3.8 million on pre-tax income of $3.8 million was an effective tax rate of 99.8%. The income tax provision was composed of a $2.5 million write-down of our deferred tax assets and a $1.3 million tax provision on pre-tax net operating income of $3.8 million (34.5%). The $2.5 million write-down occurred when we revalued our deferred tax assets and liabilities to account for the future impact of lower corporate tax rates resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017.

This compares with a provision for income taxes of $572 thousand (19.9% effective tax rate) for the three months ended December 31, 2016. This effective tax rate benefited from a decrease in the amortization of our investments in affordable housing partnerships.

Fourth Quarter of 2017 Compared With Third Quarter of 2017

Income before provision for income taxes for the fourth quarter of 2017 decreased $493 thousand compared to the third quarter of 2017. In the current quarter, net interest income was $285 thousand higher and noninterest income was $206 thousand higher. These positive changes were offset by a provision for loan and lease losses that was $450 thousand higher and noninterest expenses that were $534 thousand higher.

Net Interest Income

Net interest income increased $285 thousand over the prior quarter.

Interest income for the three months ended December 31, 2017 increased $282 thousand or 2% to $12.0 million. Interest and fees on loans increased $196 thousand due to a $33.9 million increase in average loan balances. Interest on investment securities increased $140 thousand due to a $15.3 million increase in average securities balances and a seven basis point increase in average yield on the securities portfolio. Interest on interest-bearing deposits due from banks decreased $54 thousand due to a $17.3 million decrease in average balances.

Interest expense for the three months ended December 31, 2017 decreased $3 thousand or less than 1% to $1.2 million. The average rate paid on interest-bearing deposits decreased 1 basis point to 42 basis points. Average interest-bearing demand deposit balances increased $24.3 million while average certificate of deposit balances decreased $9.2 million.

Provision for loan and lease loss

During the three months ended December 31, 2017 the company recorded a provision for loan and lease losses of $450 thousand reflecting growth in the loan portfolio. There was no provision for loan and lease losses during the prior quarter.

Noninterest Income

Noninterest income for the three months ended December 31, 2017 increased $206 thousand. During the current quarter gains on sale of OREO increased $265 thousand.

Noninterest Expense

Noninterest expense for the three months ended December 31, 2017 increased $534 thousand compared to the third quarter of 2017. The increase in noninterest expense included the following items:

  • Loan origination cost deferrals decreased $110 thousand
  • Employee incentive and other compensation-related costs increased $122 thousand
  • Postage and supplies increased $80 thousand due to costs associated with the annual deposit account disclosures
  • Recruiting costs increased $82 thousand

The Company’s efficiency ratio was 64.9% for the fourth quarter of 2017 compared to 63.1% during the prior quarter.

Income Tax Provision

For the three months ended December 31, 2017, our income tax provision of $3.8 million on pre-tax income of $3.8 million was an effective tax rate of 99.8%. The income tax provision was composed of a $2.5 million write-down of our deferred tax assets and a $1.3 million tax provision on pre-tax net operating income of $3.8 million (34.5%). The $2.5 million write-down occurred when we revalued our deferred tax assets and liabilities to account for the future impact of lower corporate tax rates resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017. This compares with a provision for income taxes of $1.4 million (33.2% effective tax rate) for the prior quarter.

Earnings Per Share

Diluted earnings per share were $0.00 for the three months ended December 31, 2017. Excluding the $2.5 million negative net impact of the net deferred tax asset revaluation, diluted earnings per share would have been $0.15 for the three months ended December 31, 2017. This compared with diluted earnings per share of $0.17 for the same period a year ago and diluted earnings per share of $0.18 for the prior period. Net income and weighted average shares used to calculate earnings per share – diluted are summarized in table 6 and the table of “Selected Non-GAAP Financial Information” presented earlier in this press release.

TABLE 7a
NET INTEREST MARGIN - UNAUDITED
(amounts in thousands)
For The Three Months Ended
December 31, 2017 December 31, 2016 September 30, 2017
Average Yield / Average Yield / Average Yield /
(Amounts in thousands) Balance Interest(1) Rate (5) Balance Interest(1) Rate (5) Balance Interest(1) Rate (5)
Interest-earning assets:
Net loans (2) $ 839,004 $ 10,083 4.77 % $ 778,458 $ 9,181 4.69 % $ 805,144 $ 9,887 4.87 %
Taxable securities 199,849 1,211 2.40 % 124,881 705 2.25 % 179,362 1,049 2.32 %
Tax-exempt securities 72,152 529 2.91 % 72,288 522 2.87 % 77,303 551 2.83 %
Interest-bearing deposits in other banks 67,032 224 1.33 % 75,760 110 0.58 % 84,323 278 1.31 %
Average interest-earning assets 1,178,037 12,047 4.06 % 1,051,387 10,518 3.98 % 1,146,132 11,765 4.07 %
Cash and due from banks 19,783 16,953 19,143
Premises and equipment, net 14,948 16,331 15,362
Other assets 39,192 41,363 40,263
Average total assets $ 1,251,960 $ 1,126,034 $ 1,220,900
Interest-bearing liabilities:
Interest-bearing demand $ 459,451 216 0.19 % $ 398,749 135 0.13 % $ 436,614 196 0.18 %
Savings deposits 111,725 54 0.19 % 111,755 45 0.16 % 110,305 52 0.19 %
Certificates of deposit 194,886 547 1.11 % 217,463 543 0.99 % 204,044 567 1.10 %
Net term debt 17,211 285 6.57 % 18,975 298 6.25 % 17,804 292 6.51 %
Junior subordinated debentures 10,310 76 2.92 % 10,310 63 2.43 % 10,310 74 2.85 %
Average interest-bearing liabilities 793,583 1,178 0.59 % 757,252 1,084 0.57 % 779,077 1,181 0.60 %
Noninterest-bearing demand 316,961 261,600 303,314
Other liabilities 12,554 12,856 11,935
Shareholders’ equity 128,862 94,326 126,574
Average liabilities and shareholders’ equity $ 1,251,960 $ 1,126,034 $ 1,220,900
Net interest income and net interest margin (4) $ 10,869 3.66 % $ 9,434 3.57 % $ 10,584 3.66 %
Tax equivalent net interest margin (3) 3.75 % 3.67 % 3.76 %
(1) Interest income on loans is net of deferred fees and costs of approximately $123 thousand, $139 thousand, and $95 thousand for the three months ended December 31, 2017, and 2016 and September 30, 2017, respectively.
(2) Net loans includes average nonaccrual loans of $6.5 million, $10.0 million and $8.6 million for the three months ended December 31, 2017 and 2016 and September 30, 2017, respectively.
(3) Tax-exempt income has been adjusted to tax equivalent basis at a 34% tax rate. The amount of such adjustments was an addition to recorded income of approximately $273 thousand, $269 thousand and $284 thousand for the three months ended December 31, 2017 and 2016 and September 30, 2017, respectively.
(4) Net interest margin is net interest income expressed as a percentage of average interest-earning assets.
(5) Yields and rates are calculated by dividing the income or expense by the average balance of the assets or liabilities, respectively, and annualizing the result.


TABLE 7b
NET INTEREST MARGIN - UNAUDITED
(amounts in thousands)
For The Twelve Months Ended
December 31, 2017 December 31, 2016
Average Yield / Average Yield /
(Amounts in thousands) Balance Interest(1) Rate (5) Balance Interest(1) Rate (5)
Interest-earning assets:
Net loans (2) $ 818,119 $ 39,112 4.78 % $ 752,938 $ 35,435 4.71 %
Taxable securities 165,333 3,921 2.37 % 120,884 2,986 2.47 %
Tax-exempt securities 74,231 2,144 2.89 % 75,303 2,256 3.00 %
Interest-bearing deposits in other banks 66,872 772 1.15 % 58,668 332 0.57 %
Average interest-earning assets 1,124,555 45,949 4.09 % 1,007,793 41,009 4.07 %
Cash and due from banks 18,301 15,831
Premises and equipment, net 15,567 15,078
Other assets 39,828 41,048
Average total assets $ 1,198,251 $ 1,079,750
Interest-bearing liabilities:
Interest-bearing demand $ 434,705 744 0.17 % $ 374,170 523 0.14 %
Savings deposits 111,376 200 0.18 % 104,771 174 0.17 %
Certificates of deposit 205,648 2,188 1.06 % 221,074 2,179 0.99 %
Net term debt 18,283 1,168 6.39 % 37,286 1,667 4.47 %
Junior subordinated debentures 10,310 287 2.78 % 10,310 235 2.28 %
Average interest-bearing liabilities 780,322 4,587 0.59 % 747,611 4,778 0.64 %
Noninterest-bearing demand 289,735 226,368
Other liabilities 12,293 13,217
Shareholders’ equity 115,901 92,554
Average liabilities and shareholders’ equity $ 1,198,251 $ 1,079,750
Net interest income and net interest margin (4) $ 41,362 3.68 % $ 36,231 3.60 %
Tax equivalent net interest margin (3) 3.78 % 3.71 %
(1) Interest income on loans is net of deferred fees and costs of approximately $546 thousand and $1.1 million for the year ended December 31, 2017 and 2016, respectively.
(2) Net loans includes average nonaccrual loans of $8.9 million and $10.6 million for the year ended December 31, 2017 and 2016, respectively.
(3) Tax-exempt income has been adjusted to tax equivalent basis at a 34% tax rate. The amount of such adjustments was an addition to recorded income of approximately $1.1 million and $1.2 million for the year ended December 31, 2017 and 2016, respectively.
(4) Net interest margin is net interest income expressed as a percentage of average interest-earning assets.
(5) Yields and rates are calculated by dividing the income or expense by the average balance of the assets or liabilities, respectively, and annualizing the result.


TABLE 8
ALLOWANCE FOR LOAN AND LEASE LOSSES ROLL FORWARD AND IMPAIRED LOAN TOTALS - UNAUDITED
(amounts in thousands)
For The Three Months Ended
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
Beginning balance ALLL$ 11,692 $ 11,688 $ 11,641 $ 11,544 $ 11,849
Provision for loan and lease losses 450 300 200
Loans charged-off (451) (245) (359) (447) (386)
Loan loss recoveries 234 249 106 344 81
Ending balance ALLL$ 11,925 $ 11,692 $ 11,688 $ 11,641 $ 11,544
At December 31, At September 30, At June 30, At March 31, At December 31,
2017 2017 2017 2017 2016
Nonaccrual loans:
Commercial $ 1,603 $ 2,309 $ 2,410 $ 2,534 $ 2,749
Real estate - commercial non-owner occupied 1,196 1,196 1,196
Real estate - commercial owner occupied 600 617 639 654 784
Real estate - residential - ITIN 2,909 3,201 3,346 3,331 3,576
Real estate - residential - 1-4 family mortgage 606 626 653 1,337 1,914
Real estate - residential - equity lines 45 815 872 906 917
Consumer and other 36 37 38 39 250
Total nonaccrual loans 5,799 7,605 9,154 9,997 11,386
Accruing troubled debt restructured loans:
Commercial 1,551 671 703 741 776
Real estate - commercial non-owner occupied 803 805 806 808 808
Real estate - residential - ITIN 4,614 4,655 4,712 4,761 5,033
Real estate - residential - equity lines 380 441 445 450 454
Total accruing troubled debt restructured loans 7,348 6,572 6,666 6,760 7,071
All other accruing impaired loans 337
Total impaired loans$ 13,147 $ 14,177 $ 15,820 $ 16,757 $ 18,794
Gross loans outstanding at period end$ 879,835 $ 824,874 $ 815,388 $ 810,194 $ 804,211
Impaired loans to gross loans 1.49 % 1.72 % 1.94 % 2.07 % 2.34 %
Nonaccrual loans to gross loans 0.66 % 0.92 % 1.12 % 1.23 % 1.42 %
Allowance for loan and lease losses as a percent of:
Gross loans 1.36 % 1.42 % 1.43 % 1.44 % 1.44 %
Nonaccrual loans 205.64 % 153.74 % 127.68 % 116.44 % 101.39 %
Impaired loans 90.71 % 82.47 % 73.88 % 69.47 % 61.42 %

We continue to monitor credit quality and adjust the ALLL to ensure that the ALLL is maintained at a level that is adequate to cover estimated credit losses in the loan and lease portfolio. A combination of net loan losses and loan portfolio growth supported management’s decision to record a provision of $450 thousand for the three months ended December 31, 2017. There were no provisions for loan and lease losses during the quarter ended September 30, 2017 or the quarter ended December 31, 2016. Our ALLL as a percentage of gross loans was 1.36% as of December 31, 2017 compared to 1.44% as of December 31, 2016 and 1.42% as of September 30, 2017. Based on the Bank’s ALLL methodology, which uses criteria such as risk factors and historical loss rates, and given the ongoing improvements in asset quality, management believes the Company’s ALLL is adequate at December 31, 2017. There is, however, no assurance that future loan and lease losses will not exceed the levels provided for in the ALLL and could possibly result in future charges to the provision for loan and lease losses.

At December 31, 2017, the recorded investment in loans classified as impaired totaled $13.1 million, with a corresponding specific reserve of $1.2 million compared to impaired loans of $18.8 million with a corresponding specific reserve of $1.5 million at December 31, 2016 and impaired loans of $14.2 million, with a corresponding specific reserve of $918 thousand at September 30, 2017. The decrease in loans classified as impaired compared to the prior quarter is primarily due to one residential real estate equity loan that was paid off during the quarter. The increase in the specific reserve on impaired loans compared to the prior quarter was primarily due to one commercial loan.

TABLE 9
TROUBLED DEBT RESTRUCTURINGS - UNAUDITED
(amounts in thousands)
At December 31, At September 30, At June 30, At March 31, At December 31,
2017 2017 2017 2017 2016
Nonaccrual $ 3,581 $ 4,403 $ 4,630 $ 4,570 $ 4,995
Accruing 7,348 6,572 6,666 6,760 7,071
Total troubled debt restructurings $ 10,929 $ 10,975 $ 11,296 $ 11,330 $ 12,066
Troubled debt restructurings as a percentage of total gross loans 1.24% 1.33% 1.39% 1.40% 1.50%

There were no new troubled debt restructurings during the three months ended December 31, 2017. As of December 31, 2017, we had 116 restructured loans that qualified as troubled debt restructurings, of which 110 were performing according to their restructured terms.

TABLE 10
NONPERFORMING ASSETS - UNAUDITED
(amounts in thousands)
At December 31, At September 30, At June 30, At March 31, At December 31,
2017 2017 2017 2017 2016
Total nonaccrual loans $ 5,799 $ 7,605 $ 9,154 $ 9,997 $ 11,386
90 days past due and still accruing
Total nonperforming loans 5,799 7,605 9,154 9,997 11,386
Other real estate owned 35 699 1,517 814 759
Total nonperforming assets $ 5,834 $ 8,304 $ 10,671 $ 10,811 $ 12,145
Nonperforming loans to gross loans 0.66% 0.92% 1.12% 1.23% 1.42%
Nonperforming assets to total assets 0.46% 0.67% 0.88% 0.95% 1.06%

The December 31, 2017 OREO balance consists of one 1-4 family residential real estate property in the amount of $35 thousand. The decrease in the OREO balance compared to the prior quarter is due to the disposition of one nonfarm nonresidential property, one undeveloped commercial property and one 1-4 family residential property. Net gains on sale of OREO in the current quarter were $346 thousand compared to net gains of $10 thousand and $81 thousand in the same quarter a year ago and in the prior quarter, respectively. Net gains on sale of OREO property in the current quarter were primarily due to one nonfarm nonresidential property that had a carrying value of $565 thousand and sold for $923 thousand resulting in a gain of $358 thousand.

TABLE 11
UNAUDITED CONSOLIDATED
BALANCE SHEET
(amounts in thousands, except per share data)
At December 31, At December 31, Change At September 30,
2017 2016 $ % 2017
Assets:
Cash and due from banks $ 17,979 $ 16,419 $ 1,560 10 % $ 19,929
Interest-bearing deposits in other banks 48,991 51,988 (2,997) (6)% 65,702
Total cash and cash equivalents 66,970 68,407 (1,437) (2)% 85,631
Securities available-for-sale, at fair value 267,954 175,174 92,780 53 % 232,494
Securities held-to-maturity, at amortized cost 31,187 (31,187) (100)% 30,724
Loans, net of deferred fees and costs 881,545 805,535 76,010 9 % 826,644
Allowance for loan and lease losses (11,925) (11,544) (381) 3 % (11,692)
Net loans 869,620 793,991 75,629 10 % 814,952
Premises and equipment, net 14,748 16,226 (1,478) (9)% 15,039
Other real estate owned 35 759 (724) (95)% 699
Life insurance 21,898 23,098 (1,200) (5)% 21,764
Deferred taxes 6,505 9,542 (3,037) (32)% 8,751
Goodwill and core deposit intangible, net 2,030 2,252 (222) (10)% 2,086
Other assets 19,661 20,356 (695) (3)% 19,741
Total assets $ 1,269,421 $ 1,140,992 $ 128,429 11 % $ 1,231,881
Liabilities and shareholders' equity:
Demand - noninterest-bearing $ 305,650 $ 270,398 $ 35,252 13 % $ 316,814
Demand - interest-bearing 496,990 405,569 91,421 23 % 433,466
Savings 110,837 113,309 (2,472) (2)% 111,962
Certificates of deposit 189,255 215,390 (26,135) (12)% 200,543
Total deposits 1,102,732 1,004,666 98,066 10 % 1,062,785
Term debt 17,096 18,917 (1,821) (10)% 17,700
Unamortized debt issuance costs (138) (184) 46 (25)% (150)
Net term debt 16,958 18,733 (1,775) (9)% 17,550
Junior subordinated debentures 10,310 10,310 % 10,310
Other liabilities 12,157 13,177 (1,020) (8)% 12,831
Total liabilities 1,142,157 1,046,886 95,271 9 % 1,103,476
Shareholders' equity:
Common stock 51,830 24,547 27,283 111 % 51,755
Retained earnings 75,700 70,218 5,482 8 % 76,179
Accumulated other comprehensive (loss) income, net of tax (266) (659) 393 (60)% 471
Total shareholders' equity 127,264 94,106 33,158 35 % 128,405
Total liabilities and shareholders' equity $ 1,269,421 $ 1,140,992 $ 128,429 11 % $ 1,231,881
Total interest-earning assets $ 1,198,942 $ 1,065,228 $ 133,714 13 % $ 1,154,934
Shares outstanding 16,272 13,440 16,265
Book value per share $ 7.82 $ 7.00 $ 7.89
Tangible book value per share (1) $ 7.70 $ 6.83 $ 7.77
(1) Tangible book value per share is computed by dividing total shareholders’ equity less goodwill and core deposit intangible, net by shares outstanding. Management believes that tangible book value per share is meaningful because it is a measure that the Company and investors commonly use to assess capital adequacy.


TABLE 12
UNAUDITED
INCOME STATEMENT
(amounts in thousands, except per share data)
For The Three Months Ended For The Twelve Months Ended
December 31, Change September 30, December 31,
2017 2016 $ % 2017 2017 2016
Interest income:
Interest and fees on loans $ 10,083 $ 9,181 $ 902 10 % $ 9,887 $ 39,112 $ 35,435
Interest on securities 1,211 705 506 72 % 1,049 3,921 2,986
Interest on tax-exempt securities 529 522 7 1 % 551 2,144 2,256
Interest on deposits in other banks 224 110 114 104 % 278 772 332
Total interest income 12,047 10,518 1,529 15 % 11,765 45,949 41,009
Interest expense:
Interest on demand deposits 216 135 81 60 % 196 744 523
Interest on savings deposits 54 45 9 20 % 52 200 174
Interest on certificates of deposit 547 543 4 1 % 567 2,188 2,179
Interest on term debt 285 298 (13) (4)% 292 1,168 1,667
Interest on other borrowings 76 63 13 21 % 74 287 235
Total interest expense 1,178 1,084 94 9 % 1,181 4,587 4,778
Net interest income 10,869 9,434 1,435 15 % 10,584 41,362 36,231
Provision for loan and lease losses 450 450 100 % 950
Net interest income after provision for loan and lease losses 10,419 9,434 985 10 % 10,584 40,412 36,231
Noninterest income:
Service charges on deposit accounts 141 120 21 18 % 132 542 413
ATM and point of sale 266 281 (15) (5)% 273 1,093 995
Payroll and benefit processing fees 173 161 12 7 % 147 658 593
Life insurance 135 152 (17) (11)% 134 1,050 613
(Loss) gain on investment securities, net (2) 52 (54) (104)% 38 137 244
Impairment losses on investment securities % (546)
Federal Home Loan Bank of San Francisco dividends 81 353 (272) (77)% 80 318 644
Gain on sale of OREO 346 10 336 3,360 % 81 368 (109)
Other income 142 131 11 8 % 191 658 639
Total noninterest income 1,282 1,260 22 2 % 1,076 4,824 3,486


TABLE 12 - CONTINUED
UNAUDITED
INCOME STATEMENT
(amounts in thousands, except per share data)
For The Three Months Ended For The Twelve Months Ended
December 31, Change September 30, December 31,
2017 2016 $ % 2017 2017 2016
Noninterest expense:
Salaries and related benefits 4,523 4,237 286 7 % 4,291 17,819 16,425
Occupancy and equipment 1,073 1,022 51 5 % 1,067 4,242 3,869
Federal Deposit Insurance Corporation insurance premium 88 102 (14) (14)% 78 318 615
Data processing fees 455 533 (78) (15)% 437 1,749 1,675
Professional service fees 279 481 (202) (42)% 276 1,398 1,690
Telecommunications 226 206 20 10 % 219 879 751
Branch acquisition costs % 580
Loss on cancellation of interest rate swap % 2,325
Other expenses 1,247 1,244 3 % 989 4,559 4,570
Total noninterest expense 7,891 7,825 66 1 % 7,357 30,964 32,500
Income before provision for income taxes 3,810 2,869 941 33 % 4,303 14,272 7,217
Provision for income taxes:
Net deferred tax asset write-down 2,490 2,490 100 % 2,490 363
Provision for income taxes from operations 1,313 572 741 130 % 1,427 4,438 1,595
Total provision for income taxes 3,803 572 3,231 565 % 1,427 6,928 1,958
Net income $ 7 $ 2,297 $ (2,290) (100)% $ 2,876 $ 7,344 $ 5,259
Basic earnings per share $ $ 0.17 $ (0.17) (100)% $ 0.18 $ 0.48 $ 0.39
Average basic shares 16,195 13,370 2,825 21 % 16,191 15,207 13,367
Diluted earnings per share $ $ 0.17 $ (0.17) (100)% $ 0.18 $ 0.48 $ 0.39
Average diluted shares 16,306 13,476 2,830 21 % 16,288 15,310 13,425


TABLE 13
UNAUDITED CONDENSED CONSOLIDATED
ANNUAL AVERAGE BALANCE SHEETS
(amounts in thousands)
For The Twelve Months Ended
December 31, December 31, December 31, December 31,
2017 2016 2015 2014
Earning assets:
Loans $ 818,119 $ 752,938 $ 699,227 $ 625,166
Taxable securities 165,333 120,884 120,897 147,916
Tax exempt securities 74,231 75,303 77,089 83,973
Interest-bearing deposits in other banks 66,872 58,668 30,323 56,465
Total earning assets 1,124,555 1,007,793 927,536 913,520
Cash and due from banks 18,301 15,831 11,220 11,246
Premises and equipment, net 15,567 15,078 11,552 12,105
Other assets 39,828 41,048 42,423 36,936
Total assets $ 1,198,251 $ 1,079,750 $ 992,731 $ 973,807
Liabilities and shareholders' equity:
Demand - noninterest-bearing $ 289,735 $ 226,368 $ 156,578 $ 139,792
Demand - interest-bearing 434,705 374,170 283,105 272,383
Savings 111,376 104,771 92,659 91,108
Certificates of deposit 205,648 221,074 238,626 259,445
Total deposits 1,041,464 926,383 770,968 762,728
Net term debt 18,283 37,286 88,874 77,534
Junior subordinated debentures 10,310 10,310 10,310 15,239
Other liabilities 12,293 13,217 16,588 15,934
Total liabilities 1,082,350 987,196 886,740 871,435
Shareholders' equity 115,901 92,554 105,991 102,372
Liabilities & shareholders' equity $ 1,198,251 $ 1,079,750 $ 992,731 $ 973,807


TABLE 14
UNAUDITED CONDENSED CONSOLIDATED
QUARTERLY AVERAGE BALANCE SHEETS
(amounts in thousands)
For The Three Months Ended
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
Earning assets:
Loans $ 839,004 $ 805,144 $ 821,321 $ 806,793 $ 778,458
Taxable securities 199,849 179,362 143,705 137,582 124,881
Tax exempt securities 72,152 77,303 73,927 73,524 72,288
Interest-bearing deposits in other banks 67,032 84,323 58,691 57,140 75,760
Total earning assets 1,178,037 1,146,132 1,097,644 1,075,039 1,051,387
Cash and due from banks 19,783 19,143 17,364 16,873 16,953
Premises and equipment, net 14,948 15,362 15,809 16,165 16,331
Other assets 39,192 40,263 39,630 40,228 41,363
Total assets $ 1,251,960 $ 1,220,900 $ 1,170,447 $ 1,148,305 $ 1,126,034
Liabilities and shareholders' equity:
Demand - noninterest-bearing $ 316,961 $ 303,314 $ 275,039 $ 262,881 $ 261,600
Demand - interest-bearing 459,451 436,614 421,888 420,416 398,749
Savings 111,725 110,305 109,857 113,647 111,755
Certificates of deposit 194,886 204,044 208,703 215,202 217,463
Total deposits 1,083,023 1,054,277 1,015,487 1,012,146 989,567
Term debt 17,211 17,804 19,539 18,598 18,975
Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310
Other liabilities 12,554 11,935 12,256 12,431 12,856
Total liabilities 1,123,098 1,094,326 1,057,592 1,053,485 1,031,708
Shareholders' equity 128,862 126,574 112,855 94,820 94,326
Liabilities & shareholders' equity $ 1,251,960 $ 1,220,900 $ 1,170,447 $ 1,148,305 $ 1,126,034

About Bank of Commerce Holdings

Bank of Commerce Holdings is a bank holding company headquartered in Sacramento, California and is the parent company for Redding Bank of Commerce which operates under two separate names (Redding Bank of Commerce and Sacramento Bank of Commerce, a division of Redding Bank of Commerce). The Bank is an FDIC-insured California banking corporation providing community banking and financial services through nine offices located in northern California. The Bank opened on October 22, 1982. The Company’s common stock is listed on the NASDAQ Global Market and trades under the symbol “BOCH”.

Contact Information:

Randall S. Eslick, President and Chief Executive Officer

Telephone Direct (916) 677-5800

James A. Sundquist, Executive Vice President and Chief Financial Officer

Telephone Direct (916) 677-5825

Samuel D. Jimenez, Executive Vice President and Chief Operating Officer

Telephone Direct (530) 722-3952

Andrea Schneck, Vice President and Senior Administrative Officer

Telephone Direct (530) 722-3959


Source:Bank of Commerce Holdings