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Bank of Commerce Holdings Reports Operating Results (10-Q)

August 13, 2010 | About:
10qk

10qk

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Bank of Commerce Holdings (BOCH) filed Quarterly Report for the period ended 2010-06-30.

Bank Of Commerce Holdings has a market cap of $72.5 million; its shares were traded at around $4.26 with a P/E ratio of 8.1 and P/S ratio of 1.5. The dividend yield of Bank Of Commerce Holdings stocks is 5.7%.

Highlight of Business Operations:

Focus on Asset Quality and Strong Underwriting. We consider asset quality to be of primary importance and have taken measures to ensure that, despite the turbulent economy and growth in our loan portfolio, we consistently maintain strong asset quality. As part of our efforts, we utilize a third party loan review service to evaluate our loan portfolio on a quarterly basis and recommend action on certain loans if deemed appropriate. As of June 30, 2010, we had $25.5 million in nonperforming assets, including other real estate owned of $2.0 million, which as a percentage of total assets was 2.74%. We also seek to maintain a prudent allowance for loan losses, which at June 30, 2010 was $12.8 million, representing 2.08% of our loan portfolio.

In April 2009, we completed a loan swap transaction, whereby we exchanged, without recourse, $14.0 million in certain nonperforming assets measured at fair value and cash of approximately $67.0 million for a pool of performing ITIN loans with an estimated fair value of $80.7 million. These loans are residential mortgage loans made to United States residents without a social security number and are geographically dispersed throughout the United States. This is our first ITIN loan transaction, and as such, is serviced through a third party. Worsening economic conditions in the United States may cause us to suffer higher default rates on our ITIN loans and reduce the value of the assets that we hold as collateral. In addition, if we are forced to foreclose and service these ITIN properties ourselves, we may realize additional monitoring, servicing and appraisal costs due to the geographic dispersement of the portfolio which would adversely affect our noninterest expense.

On November 14, 2008, in exchange for an aggregate purchase price of $17.0 million, we issued and sold to the Treasury pursuant to the Trouble Asset Relief Program (TARP) Capital Purchase Program the following: (i) 17,000 shares of our newly designated Fixed Rate Cumulative Perpetual Preferred Stock, Series A, no par value per share and liquidation preference $1,000 per share (Series A Preferred Stock) and (ii) a warrant to purchase up to 405,405 shares of our common stock, no par value per share, at an exercise price of $6.29 per share, subject to certain anti-dilution and other adjustments. The warrant may be exercised for up to ten years after issuance.

Read the The complete Report

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