Exhibit 99.1
Bank of Commerce Holdings
For immediate release:
Bank of Commerce Holdings™ announces Third Quarter 2008 Operating Results
REDDING, California, October 24, 2008/ PR Newswire—Patrick J. Moty,President & CEOof Bank of Commerce Holdings (NASDAQ:BOCH), a $650 million financial services holding company, and parent company of Redding Bank of Commerce™, Roseville Bank of Commerce™, Sutter Bank of Commerce™ and Bank of Commerce Mortgage™ today announced third quarter 2008 operating results. Bank of Commerce Holdings’ net income was $717,000 for the third quarter 2008 compared with $1,331,000 for the third quarter of 2007 down $614,000 or 46%.
Diluted earnings per common share was $0.08 for the third quarter 2008 compared to $0.15 for the third quarter of 2007.
Year-to-date net income was $2,853,000 compared to $4,418,000 in the prior year, down $1,565,000 or 35.4%. Year-to-date diluted earnings per common share were $0.33 compared to $0.49 in the prior year, a decrease of 33%. Year-to-date return on average assets and return on average common equity were 0.58% and 8.11%, respectively, compared with 1.01% and 13.02%, respectively, for the same period in 2007. The Company’s results for the third quarter of 2008 declined due to higher provisioning for loan losses and compression in the margin.
The allowance for loan and lease losses, including unfunded commitments, totaled $6.1 million at September 30, 2008 compared to $8.2 million at December 31, 2007 and $5.1 million at September 30, 2007. The Company’s allowance for loan losses was 1.20% of total loans at September 30, 2008 and 1.09% at September 30, 2007.
Provisions for loan losses for the quarter ended September 2008 were $1,300,000 compared to $115,000 for the same quarter in 2007. Provision for loan and lease losses of $2,900,000 were provided for the nine-months ended September 30, 2008 compared with $121,000 for the same nine-month period of 2007.
The Company continues to be aggressive in identifying non-performing assets. Since the beginning of the fourth quarter 2007, the Company has provided $6.1 million in provisions for loan and lease losses. Elevated provisions are associated with a reclassification of loans, following completion of a total portfolio review, and management’s aggressive stance in recognizing impaired loans.
On September 17, 2008, the Company announced a $0.08 quarterly cash dividend payable to shareholders of record as of September 30, 2008 and paid on October 10, 2008.
“2008 has been a year of many successes and a seemingly endless number of challenges for the financial services industry. Yet as I told a group of our Shareholders recently, I am very confident that we are taking the right steps to ensure our Company’s future prosperity. Strong signs of progress are evident across our Company. We have taken aggressive actions during the first three quarters on provisioning for loan losses and charging down impairments, strengthening the balance sheet, and keeping an attentive eye on expenses” saidPatrick J. Moty,President and CEO of the Company.“During October we celebrate our 26th year of successful operations. Our year-over-year asset growth is strong and the bank remainswell capitalizedper guidelines established by the bank regulatory agencies.”
Total revenues decreased to $30.4 million compared to $32.4 million during the same period in 2007, a decrease of 6.4%. The decrease in total revenues is centered in total interest income and is directly related to the significant drops in interest rates for the first nine months of the year.
3
Noninterest income growth of 23.8% was driven by sales of available-for-sale investments providing a gain of $595,000 for the period, partially offset by a loss of $225,000 to unwind a SWAP transaction.
Year-to-date total noninterest expense declined by 3.8% or $428,000.
The most significant factors impacting the financial sector originated in the U.S. residential real estate markets. A number of larger institutions have announced significant losses. These losses stemmed from securities collateralized with sub-prime mortgages and other troubled assets. It is important to note thatRedding Bank of Commerce does not originate or hold sub-prime loans, nor do we hold collateralized debt obligations or asset backed securities backed by sub-prime loans in our securities portfolio. However, as a lending institution, we are not immune to the residential real estate slowdown.
The Company booked $4.9 million in OREO in the third quarter of 2008, compared to $0 in 2007. This consists of one real estate development loan in the Sacramento market.
Management remains aggressive in identifying problem loans and conducting impairment reviews when applicable. Impairment reviews have resulted in $4.8 million in write-downs during the first nine months of 2008. Material future additions to the allowance for loan losses may be necessary if material adverse economic conditions persist and the performance of the loan portfolio of the Company deteriorates. Future additions to the Company’s allowance for loan and lease losses may also be required to reflect market changes and other factors affecting the Company’s real estate and real estate related portfolios. Moreover, the FDIC and the DFI, as an integral part of their examination process, review the Company’s allowance for loan and lease losses and the carrying value of its assets. The Bank was recently examined by the FDIC in this regard during the second quarter of 2008. No adjustments were made to management’s estimates for the allowance for loan and lease losses during the examination.
Non-performing loans were 2.23% of total loans as of September 30, 2008 compared to 2.55% at December 31, 2007 and 0% one year ago.
Average loans, the largest component of average earning assets, increased $94.7 million or 22.3% on average compared with the prior year period. Average securities including federal funds sold decreased $29.0 million or 23.7% over the prior period. Investments were sold to fund loan growth. The yield on earning assets decreased to 6.17% for the nine-month period ended September 30, 2008 compared to 7.51% for the same period in the prior year.
The decrease is primarily due to multiple interest rate drops during the period.
Average interest-bearing deposits for the nine-months ended September 30, 2008 increased $45.2 million or 12.2% compared with the prior year period. Average non-interest bearing deposits have decreased by $3.0 million or 4.1% over the prior year nine-month period. Average borrowings have increased by $15.6 million or 17.5% when compared with the prior year period; the increase is directly related to the substantial loan growth and increase in FHLB borrowings to support such growth.
The overall cost of interest-bearing liabilities for the first nine-months 2008 was 3.21% compared with 4.13% for the first nine-months of 2007. The decreased cost was primarily a result of the drop in interest rates during the period coupled with refinancing of FHLB borrowings at lower interest rates. The net effect of the changes discussed above resulted in a decrease of $723,000 or 4.4% in net interest income for the nine-month period ended September 30, 2008 from the same period in 2007. The net interest margin decreased 58 basis points to 3.42% from 4.00% over the same period a year ago.
At September 30, 2008, Bank of Commerce Holdings’ total assets were $650.6 million, an increase of 5.62% or $34.6 million from September 30, 2007.
The capital ratios of Redding Bank of Commerce continue to be above thewell-capitalizedguidelines established by bank regulatory agencies. Total risk-based capital to assets was 11.07% at September 30, 2008.
4
Bank of Commerce Holdings, with administrative offices in Redding, California is a financial service holding company that owns Redding Bank of Commerce™, Roseville Bank of Commerce™, Sutter Bank of Commerce™ and Bank of Commerce Mortgage™.
The Company is a federally insured California banking corporation and opened on October 22, 1982.
BOCH is a NASDAQ National Market listed stock. Please contact your local investment advisor for purchases and sales. Investment firms making a market in BOCH stock are:
Howe Barnes Hoefer & Arnett Investment Inc. /
John T. Cavender
555 Market Street
San Francisco, CA (800) 346-5544
John T. Cavender
555 Market Street
San Francisco, CA (800) 346-5544
Hill, Thompson, Magid & Co. Inc /
R.J. Dragani
15 Exchange Place, Suite 800
Jersey City, New Jersey 07030 (201) 369-2908
R.J. Dragani
15 Exchange Place, Suite 800
Jersey City, New Jersey 07030 (201) 369-2908
Keefe, Bruyette & Woods, Inc. /
Dave Bonaccorso
101 California Street, 37th Floor
San Francisco, CA 94105 (415) 591-5063
Dave Bonaccorso
101 California Street, 37th Floor
San Francisco, CA 94105 (415) 591-5063
Sandler & O’Neil /Bryan Sullivan
919 Third Avenue, 6th Floor
New York, NY 10022 (888) 383-3112
919 Third Avenue, 6th Floor
New York, NY 10022 (888) 383-3112
Raymond James Financial/ Geoff Ball
1805 Hilltop Drive, Suite 106
Redding, CA (800) 926-5040
1805 Hilltop Drive, Suite 106
Redding, CA (800) 926-5040
This quarterly press release includes forward-looking information, which is subject to the “safe harbor” created by the Securities Act of 1933, and Securities Act of 1934. These forward-looking statements (which involve the Company’s plans, beliefs and goals, refer to estimates or use similar terms) involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors:
| • | Competitive pressure in the banking industry and changes in the regulatory environment. | |
| • | Changes in the interest rate environment and volatility of rate sensitive assets and liabilities. | |
| • | The health of the economy declines nationally or regionally which could reduce the demand for loans or reduce the value of real estate collateral securing most of the Company’s loans. | |
| • | Credit quality deteriorates which could cause an increase in the provision for loan losses. | |
| • | Losses in the Company’s merchant credit card processing business. | |
| • | Asset/Liability matching risks and liquidity risks. | |
| • | Changes in the securities markets. |
For additional information concerning risks and uncertainties related to the Company and its operations please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2007 and under the heading:
”Risk factors that may affect results” and subsequent reports on Form 10-Q and current reports on Form 8-K. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
5
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
Condensed Consolidated Balance Sheets
(Unaudited)
| Dollars in thousands | September 30, | December 31, | September 30, | |||||||||
| ASSETS | 2008 | 2007 | 2007 | |||||||||
| Cash and due from banks | $ | 12,617 | $ | 13,839 | $ | 12,366 | ||||||
| Federal funds sold and securities purchased under | 20,135 | 8,395 | 7,980 | |||||||||
| agreements to resell | ||||||||||||
| Cash and cash equivalents | 32,752 | 22,234 | 20,346 | |||||||||
| Securities available-for-sale (including pledged collateral of $58,939 at September 30, 2008, $61,329 at December 31, 2007 and $85,574 at September 30, 2007) | 74,863 | 67,906 | 93,423 | |||||||||
| Securities held-to-maturity, at cost (estimated fair value of $10,632 at December 31, 2007 and $10,538 at September 30, 2007) | 0 | 10,559 | 10,592 | |||||||||
| Loans, net of the allowance for loan losses of $6,128 at September 30, 2008, $8,233 at December 31, 2007 and $5,061 at September 30, 2007 | 503,348 | 486,283 | 461,171 | |||||||||
| Bank premises and equipment, net | 10,893 | 10,964 | 10,464 | |||||||||
| Other assets | 28,688 | 20,381 | 19,979 | |||||||||
| TOTAL ASSETS | $ | 650,544 | $ | 618,327 | $ | 615,975 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Demand — noninterest bearing | $ | 80,168 | $ | 75,718 | $ | 70,809 | ||||||
| Demand — interest bearing | 138,319 | 142,821 | 136,219 | |||||||||
| Savings accounts | 69,469 | 41,376 | 44,406 | |||||||||
| Certificates of deposit | 215,095 | 213,716 | 220,803 | |||||||||
| Total deposits | 503,051 | 473,631 | 472,237 | |||||||||
| Securities sold under agreements to repurchase | 13,580 | 15,513 | 26,755 | |||||||||
| Federal Home Loan Bank borrowings | 65,000 | 60,000 | 50,000 | |||||||||
| Other liabilities | 7,863 | 7,554 | 6,734 | |||||||||
| Junior subordinated debt payable to unconsolidated | 15,465 | 15,465 | 15,465 | |||||||||
| subsidiary grantor trust | ||||||||||||
| Total Liabilities | 604,959 | 572,163 | 571,191 | |||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders’ Equity: | ||||||||||||
| Preferred stock, no par value, 2,000,000 authorized | ||||||||||||
| no shares issued and outstanding in 2008 and 2007 | — | — | — | |||||||||
| Common stock , no par value, 50,000,000 shares authorized; 8,711,495 at September 30, 2008, 8,757,445 at December 31, 2007 and 8,784,359 at September 30, 2007 | 9,619 | 9,996 | 10,252 | |||||||||
| Retained earnings | 37,364 | 36,605 | 35,617 | |||||||||
| Accumulated other comprehensive loss, net of tax | (1,398 | ) | (437 | ) | (1,085 | ) | ||||||
| Total stockholders’ equity | 45,585 | 46,164 | 44,784 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 650,544 | $ | 618,327 | $ | 615,975 | ||||||
6
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| Amounts in thousands, except for per share data | Sept. 30, 2008 | Sept. 30, 2007 | Sept. 30, 2008 | Sept. 30, 2007 | ||||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 8,252 | $ | 9,350 | $ | 25,554 | $ | 26,779 | ||||||||
| Interest on tax exempt securities | 308 | 324 | 884 | 936 | ||||||||||||
| Interest on U.S. government securities | 582 | 798 | 1,596 | 2,446 | ||||||||||||
| Interest on federal funds sold and securities purchased under agreements to resell | 116 | 190 | 264 | 580 | ||||||||||||
| Interest on other securities | 13 | 22 | 58 | 67 | ||||||||||||
| Total interest income | 9,271 | 10,684 | 28,356 | 30,808 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Interest on demand deposits | 514 | 791 | 1,762 | 1,935 | ||||||||||||
| Interest on savings deposits | 543 | 359 | 1,193 | 885 | ||||||||||||
| Interest on time deposits | 1,963 | 2,702 | 6,577 | 7,934 | ||||||||||||
| Securities sold under agreements to repurchase | 32 | 289 | 151 | 1,012 | ||||||||||||
| Interest on FHLB and other borrowing expense | 662 | 628 | 2,174 | 1,799 | ||||||||||||
| Interest on junior subordinated debt payable to unconsolidated subsidiary grantor trust | 317 | 274 | 793 | 814 | ||||||||||||
| Total interest expense | 4,031 | 5,043 | 12,650 | 14,379 | ||||||||||||
| Net interest income | 5,240 | 5,641 | 15,706 | 16,429 | ||||||||||||
| Provision for loan and lease losses | 1,300 | 115 | 2,900 | 121 | ||||||||||||
| Net interest income after provision for loan losses | 3,940 | 5,526 | 12,806 | 16,308 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Service charges on deposit accounts | 91 | 70 | 203 | 215 | ||||||||||||
| Payroll and benefit processing fees | 107 | 90 | 335 | 287 | ||||||||||||
| Earnings on cash surrender value — bank owned life insurance | 86 | 100 | 254 | 294 | ||||||||||||
| Net gain on sale of securities available-for-sale | 159 | 0 | 595 | 46 | ||||||||||||
| Net loss on sale of derivative swap transaction | 0 | 0 | (225 | ) | 0 | |||||||||||
| Merchant credit card service income, net | 99 | 109 | 279 | 297 | ||||||||||||
| Mortgage brokerage fee income | 2 | 21 | 17 | 56 | ||||||||||||
| Other income | 207 | 136 | 575 | 447 | ||||||||||||
| Total non-interest income | 751 | 526 | 2,033 | 1,642 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and related benefits | 1,909 | 2,402 | 5,750 | 6,458 | ||||||||||||
| Occupancy and equipment expense | 613 | 635 | 1,897 | 1,636 | ||||||||||||
| FDIC insurance premium | 113 | 13 | 284 | 39 | ||||||||||||
| Data processing fees | 81 | 82 | 224 | 227 | ||||||||||||
| Professional service fees | 146 | 216 | 397 | 663 | ||||||||||||
| Payroll and benefit fees | 26 | 25 | 86 | 81 | ||||||||||||
| Deferred compensation expense | 118 | 105 | 342 | 303 | ||||||||||||
| Stationery and supplies | 50 | 34 | 192 | 141 | ||||||||||||
| Postage | 32 | 39 | 104 | 106 | ||||||||||||
| Directors’ expense | 81 | 86 | 223 | 207 | ||||||||||||
| Other expenses | 443 | 391 | 1,290 | 1,356 | ||||||||||||
| Total non-interest expense | 3,612 | 4,028 | 10,789 | 11,217 | ||||||||||||
| Income before provision for income taxes | 1,079 | 2,024 | 4,050 | 6,733 | ||||||||||||
| Provision for income taxes | 362 | 693 | 1,197 | 2,315 | ||||||||||||
| Net Income | $ | 717 | $ | 1,331 | $ | 2,853 | $ | 4,418 | ||||||||
| Basic earnings per share | $ | 0.08 | $ | 0.15 | $ | 0.33 | $ | 0.50 | ||||||||
| Weighted average shares — basic | 8,711 | 8,904 | 8,713 | 8,893 | ||||||||||||
| Diluted earnings per share | $ | 0.08 | $ | 0.15 | $ | 0.33 | $ | 0.49 | ||||||||
| Weighted average shares — diluted | 8,713 | 8,929 | 8,729 | 8,983 | ||||||||||||
7
Average Balances, Interest Income/Expense and Yields/Rates Paid
(Unaudited, Dollars in thousands)
(Unaudited, Dollars in thousands)
| Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, 2008 | September 30, 2007 | |||||||||||||||||||||||
| Yield/ | Average | Yield/ | ||||||||||||||||||||||
| Average Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
| Earning Assets | ||||||||||||||||||||||||
| Portfolio Loans | $ | 519,255 | $ | 25,554 | 6.56 | % | $ | 424,593 | $ | 26,779 | 8.41 | % | ||||||||||||
| Tax-exempt Securities | 29,754 | 884 | 3.96 | % | 31,774 | 936 | 3.93 | % | ||||||||||||||||
| US Government Securities | 45,390 | 1,596 | 4.69 | % | 73,810 | 2,446 | 4.42 | % | ||||||||||||||||
| Federal Funds Sold | 16,498 | 264 | 2.13 | % | 14,809 | 580 | 5.22 | % | ||||||||||||||||
| Other Securities | 1,730 | 58 | 4.47 | % | 2,000 | 67 | 4.47 | % | ||||||||||||||||
| Average Earning Assets | $ | 612,627 | $ | 28,356 | 6.17 | % | $ | 546,986 | $ | 30,808 | 7.51 | % | ||||||||||||
| Cash & Due From Banks | $ | 13,287 | $ | 14,084 | ||||||||||||||||||||
| Bank Premises | 11,191 | 9,938 | ||||||||||||||||||||||
| Allowance for Loan and Lease Losses | ( 6,630 | ) | ( 4,916 | ) | ||||||||||||||||||||
| Other Assets | 20,938 | 16,996 | ||||||||||||||||||||||
| Average Total Assets | $ | 651,413 | $ | 583,088 | ||||||||||||||||||||
| Interest Bearing Liabilities | ||||||||||||||||||||||||
| Demand Interest Bearing | $ | 138,034 | $ | 1,762 | 1.70 | % | $ | 115,937 | $ | 1,935 | 2.23 | % | ||||||||||||
| Savings Deposits | 53,244 | 1,193 | 2.99 | % | 38,553 | 885 | 3.06 | % | ||||||||||||||||
| Certificates of Deposit | 223,630 | 6,577 | 3.92 | % | 215,219 | 7,934 | 4.92 | % | ||||||||||||||||
| Repurchase Agreements | 13,814 | 151 | 1.46 | % | 35,427 | 1,012 | 3.81 | % | ||||||||||||||||
| FHLB Borrowings | 81,587 | 2,174 | 3.55 | % | 44,396 | 1,799 | 5.40 | % | ||||||||||||||||
| Trust Preferred Borrowings | 15,000 | 793 | 7.05 | % | 15,000 | 814 | 7.24 | % | ||||||||||||||||
| Average Interest Bearing Liabilities | $ | 525,309 | $ | 12,650 | 3.21 | % | 464,532 | $ | 14,379 | 4.13 | % | |||||||||||||
| Non interest Demand | 68,920 | 71,880 | ||||||||||||||||||||||
| Other Liabilities | 890 | 1,419 | ||||||||||||||||||||||
| Shareholder Equity | 46,912 | 45,257 | ||||||||||||||||||||||
| Average Liabilities and Stockholders’ Equity | $ | 642,031 | $ | 583,088 | ||||||||||||||||||||
| Net Interest Income and Net Interest Margin | $ | 15,706 | 3.42 | % | $ | 16,429 | 4.00 | % | ||||||||||||||||
Interest income on loans includes fee income of approximately $69,000 and $188,000 for the period ended September 30, 2008 and 2007, respectively.
8
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Quarterly Financial Condition Data
(Unaudited)
For the Quarter Ended
Quarterly Financial Condition Data
(Unaudited)
For the Quarter Ended
| Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | ||||||||||||||||||||||
Cash and due from banks | $ | 12,617 | $ | 16,660 | $ | 12,737 | $ | 13,839 | $ | 12,366 | $ | 18,206 | $ | 12,597 | ||||||||||||||
| Federal funds sold and securities purchased under agreements to resell | 20,135 | 11,585 | 25,995 | 8,395 | 7,980 | 14,115 | 21,195 | |||||||||||||||||||||
| Total Cash & Equivalents | 32,752 | 28,245 | 38,732 | 22,234 | 20,346 | 32,321 | 33,792 | |||||||||||||||||||||
| Securities available-for-sale | 74,863 | 66,728 | 62,090 | 67,906 | 93,423 | 94,029 | 93,769 | |||||||||||||||||||||
| Securities held to maturity, at cost | 0 | 10,385 | 10,421 | 10,559 | 10,592 | 10,637 | 10,673 | |||||||||||||||||||||
| Loans, net of allowance for loan losses | 503,348 | 507,651 | 506,374 | 486,283 | 461,171 | 437,821 | 411,357 | |||||||||||||||||||||
| Bank premises and equipment, net | 10,893 | 11,068 | 11,370 | 10,964 | 10,464 | 10,329 | 9,992 | |||||||||||||||||||||
| Other assets | 28,688 | 22,531 | 22,248 | 20,381 | 19,979 | 20,440 | 18,513 | |||||||||||||||||||||
| TOTAL ASSETS | $ | 650,544 | $ | 646,608 | $ | 651,235 | $ | 618,327 | $ | 615,975 | $ | 605,577 | $ | 578,096 | ||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||
| Demand — noninterest bearing | 80,168 | 68,625 | $ | 71,722 | $ | 75,718 | $ | 70,809 | $ | 69,842 | $ | 70,035 | ||||||||||||||||
| Demand — interest bearing | 138,319 | 128,994 | 140,624 | 142,821 | 136,219 | 114,530 | 112,550 | |||||||||||||||||||||
| Savings | 69,469 | 52,453 | 42,946 | 41,376 | 44,406 | 45,082 | 41,537 | |||||||||||||||||||||
| Certificates of deposit | 215,095 | 218,303 | 229,006 | 213,716 | 220,803 | 211,794 | 211,422 | |||||||||||||||||||||
| Total deposits | 503,051 | 468,375 | 484,298 | 473,631 | 472,237 | 441,248 | 435,544 | |||||||||||||||||||||
| Securities sold under agreements to repurchase | 13,580 | 14,343 | 12,455 | 15,513 | 26,755 | 46,655 | 35,053 | |||||||||||||||||||||
| Federal Home Loan Bank borrowings | 65,000 | 95,000 | 85,000 | 60,000 | 50,000 | 50,000 | 40,000 | |||||||||||||||||||||
| Other liabilities | 7,863 | 7,396 | 7,633 | 7,554 | 6,734 | 7,114 | 6,646 | |||||||||||||||||||||
| Junior subordinated debt payable to subsidiary | 15,465 | 15,465 | 15,465 | 15,465 | 15,465 | 15,465 | 15,465 | |||||||||||||||||||||
| grantor trust | ||||||||||||||||||||||||||||
| Total liabilities | 604,959 | 600,579 | 604,851 | 572,163 | 571,191 | 560,482 | 532,708 | |||||||||||||||||||||
| Stockholders’ equity: | ||||||||||||||||||||||||||||
| Common stock | 9,619 | 9,590 | 9,550 | 9,996 | 10,252 | 11,966 | 11,940 | |||||||||||||||||||||
| Retained earnings | 37,364 | 37,344 | 37,135 | 36,605 | 35,617 | 34,997 | 34,110 | |||||||||||||||||||||
| Accumulated other comprehensive (loss), net | (1,398 | ) | (905 | ) | (301 | ) | (437 | ) | (1,085 | ) | (1,868 | ) | (662 | ) | ||||||||||||||
| Total stockholders’ equity | 45,585 | 46,029 | 46,384 | 46,164 | 44,784 | 45,095 | 45,388 | |||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 650,544 | $ | 646,608 | $ | 651,235 | $ | 618,327 | $ | 615,975 | $ | 605,577 | $ | 578,096 | ||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||
| Net interest income | 5,240 | 5,046 | 5,420 | 5,585 | 5,641 | 5,461 | $ | 5,327 | ||||||||||||||||||||
| Provision for loan losses | 1,300 | 1,000 | 600 | 3,170 | 115 | 0 | 6 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 3,940 | 4,046 | 4,820 | 2,415 | 5,526 | 5,461 | 5,321 | |||||||||||||||||||||
| Noninterest Income: | ||||||||||||||||||||||||||||
| Service charges | 91 | 50 | 62 | 63 | 70 | 76 | 69 | |||||||||||||||||||||
| Merchant credit card service income, net | 99 | 97 | 83 | 91 | 109 | 89 | 92 | |||||||||||||||||||||
| Net gain on sale of securities available-for-sale | 159 | 194 | 242 | 0 | 0 | 0 | 46 | |||||||||||||||||||||
| Net (loss) on sale of derivatives | 0 | 0 | (225 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
| Mortgage brokerage fee income | 2 | 5 | 10 | (6 | ) | 21 | 29 | 6 | ||||||||||||||||||||
| Other income | 400 | 371 | 393 | 2,745 | 326 | 424 | 285 | |||||||||||||||||||||
| Total noninterest income | 751 | 717 | 565 | 2,893 | 526 | 618 | 498 | |||||||||||||||||||||
| Noninterest Expense: | ||||||||||||||||||||||||||||
| Salaries and related benefits | 1,909 | 1,892 | 1,949 | 2,208 | 2,402 | 1,959 | 2,097 | |||||||||||||||||||||
| Net Occupancy and equipment expense | 613 | 640 | 644 | 737 | 635 | 543 | 458 | |||||||||||||||||||||
| Professional service fees | 146 | 133 | 118 | 365 | 216 | 252 | 195 | |||||||||||||||||||||
| Other expenses | 944 | 948 | 854 | 1,218 | 775 | 947 | 738 | |||||||||||||||||||||
| Total noninterest expense | 3,612 | 3,613 | 3,565 | 4,528 | 4,028 | 3,701 | 3,488 | |||||||||||||||||||||
| Income before income taxes | 1,079 | 1,150 | 1,820 | 780 | 2,024 | 2,378 | 2,331 | |||||||||||||||||||||
| Provision for income taxes | 362 | 244 | 591 | (910 | ) | 693 | 778 | 844 | ||||||||||||||||||||
| Net Income | $ | 717 | $ | 906 | $ | 1,229 | $ | 1,690 | $ | 1,331 | $ | 1600 | $ | 1,487 | ||||||||||||||
9