Bank of Commerce Holdings - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - FORM 8-K - Bank of Commerce Holdings	boch20180118_8k.htm

Exhibit 99.1

For Immediate Release:

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

SACRAMENTO, California, January 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
Net income, average assets and	December 31,						September 30,			December 31,
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

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

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

Attached files

Stock widget

Investing forum

Bank of Commerce Holdings Reports