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

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REDDING, Calif., July 21, 2017 (GLOBE NEWSWIRE) -- Randall S. Eslick, President and Chief Executive Officer of Bank of Commerce Holdings (NASDAQ:BOCH) (the "Company"), a $1.2 billion asset bank holding company and parent company of Redding Bank of Commerce (the "Bank"), today announced financial results for the quarter and the six months ended June 30, 2017. Net income for the quarter ended June 30, 2017 was $2.2 million or $0.15 per share – diluted, compared with net income of $1.6 million or $0.11 per share – diluted for the same period of 2016. Net income for the six months ended June 30, 2017 was $4.5 million or $0.31 per share – diluted compared with $596 thousand or $0.04 per share – diluted for the same period of 2016.

On May 10, 2017, the Company completed the sale of 2,738,096 shares of its common stock at a public offering price of $10.50 per share and received net proceeds of $26.8 million. Randall S. Eslick, President and CEO commented "The proceeds from our successful stock offering in May will support lending and investment activities, support or fund acquisitions of other institutions or branches as and if such transactions become available, or repay certain borrowings. In addition, as a result of the increase in our market capitalization, we are now listed on the Russell 2000 which should increase our corporate profile and generate more interest amongst institutional investors."

Financial highlights for the second quarter of 2017:

  • Net income of $2.2 million or $0.15 per share – diluted for the three months ended June 30, 2017 was an increase of $653 thousand (42%) from $1.6 million or $0.11 per share – diluted earned during the same period in the prior year.
  • Return on average assets improved to 0.76% for the second quarter of 2017 compared to 0.59% for the same period in the prior year.
  • Return on average equity improved to 7.85% for the second quarter of 2017 compared to 6.85% for the same period in the prior year.
  • Net interest income increased $958 thousand (10%) to $10.2 million for the second quarter of 2017 compared to $9.2 million for the same period in the prior year.
  • Average deposits for the three months ended June 30, 2017 totaled $1.0 billion, an increase of $3.3 million (1% annualized) compared to average deposits for the prior quarter.
  • Average loans for the three months ended June 30, 2017 totaled $821.3 million, an increase of $14.5 million (7% annualized) compared to average loans for the prior quarter.
  • Average earning assets for the three months ended June 30, 2017 totaled $1.1 billion, an increase of $22.6 million (8% annualized) compared to average earning assets for the prior quarter.
  • Nonperforming assets at June 30, 2017 totaled $10.7 million or 0.88% of total assets, a decrease of $140 thousand (5% annualized) since March 31, 2017.
  • Tangible book value per common share was $7.61 at June 30, 2017 compared to $6.97 at March 31, 2017.

Financial highlights for the six months ended June 30, 2017:

  • Net income of $4.5 million or $0.31 per share – diluted for the six months ended June 30, 2017 was an increase of $3.9 million (648%) from $596 thousand or $0.04 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 0.78% for the six months ended June 30, 2017 compared to 0.11% for the same period in the prior year.
  • Return on average equity improved to 8.66% for the six months ended June 30, 2017 compared to 1.31% for the same period in the prior year.
  • Net interest income increased $2.4 million (14%) to $19.9 million for the six months ended June 30, 2017 compared to $17.5 million for the same period in the prior year.
  • Average deposits for the six months ended June 30, 2017 totaled $1.0 billion, an increase of $136.2 million (16%) compared to average deposits for the same period in the prior year.
  • Average loans for the six months ended June 30, 2017 totaled $814.1 million, an increase of $82.4 million (11%) compared to average loans for the same period in the prior year.
  • Average earning assets totaled $1.1 billion for the six months ended June 30, 2017, an increase of $106.6 million (11%) compared to average earning assets for the same period in the prior year.
  • Nonperforming assets at June 30, 2017 totaled $10.7 million or 0.88% of total assets, a decrease of $1.5 million (24% annualized) compared to December 31, 2016.

Randall S. Eslick, President and CEO commented: "We are very pleased with the growth during the second quarter. All deposit growth was in core deposits and we continue to reduce our reliance on time deposits. Loan growth, combined with the improving deposit mix is reflected in the enhancement to our net interest margin and the 4.5% growth in net interest income."

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 Six Months Ended  
Net income, average assets and   June 30,     March 31,   June 30,  
average shareholders' equity   2017     2016     2017   2017   2016  
Net income   $ 2,209     $ 1,556     $ 2,252     $ 4,461   $ 596  
Average total assets   $ 1,170,447     $ 1,064,186     $ 1,148,305     $ 1,159,438   $ 1,049,192  
Average total earning assets   $ 1,097,644     $ 990,132     $ 1,075,039     $ 1,086,404   $ 979,976  
Average shareholders' equity   $ 112,855     $ 91,317     $ 94,820     $ 103,888   $ 91,312  
                                       
Selected performance ratios                                      
Return on average assets     0.76 %     0.59 %     0.80 %     0.78 %   0.11 %
Return on average equity     7.85 %     6.85 %     9.63 %     8.66 %   1.31 %
Efficiency ratio     69.13 %     79.43 %     71.49 %     70.32 %   93.45 %
                                       
Share and per share amounts                                      
Weighted average shares - basic     15,014       13,367       13,416       14,220     13,364  
Weighted average shares - diluted     15,113       13,425       13,521       14,321     13,408  
Earnings per share - basic   $ 0.15     $ 0.11     $ 0.17     $ 0.31   $ 0.04  
Earnings per share - diluted   $ 0.15     $ 0.11     $ 0.17     $ 0.31   $ 0.04  
                                       
    At June 30,     At March 31,      
Share and per share amounts   2017     2016     2017          
Common shares outstanding (1)     16,260       13,439       13,517                
Tangible book value per common share   $ 7.61     $ 6.71     $ 6.97                
                                       
Capital ratios                                    
Bank of Commerce Holdings (2)                                    
Common equity tier 1 capital ratio (3)     12.55 %     9.69 %     9.71 %              
Tier 1 capital ratio (3)     13.56 %     10.77 %     10.72 %              
Total capital ratio (3)     15.83 %     13.11 %     13.00 %              
Tier 1 leverage ratio (3)     11.38 %     9.34 %     9.09 %              
Tangible common equity ratio     10.23 %     8.44 %     8.27 %              
                                       
Redding Bank of Commerce                                      
Common equity tier 1 capital ratio (3)     12.66 %     12.80 %     12.59 %              
Tier 1 capital ratio (3)     12.66 %     12.80 %     12.59 %              
Total capital ratio (3)     13.91 %     14.05 %     13.84 %              
Tier 1 leverage ratio (3)     10.64 %     11.14 %     10.67 %              
(1) Includes unvested restricted shares issued in accordance with the Company's equity incentive plan.
(2) 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.
(3) 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.
 

BALANCE SHEET OVERVIEW

As of June 30, 2017, the Company had total consolidated assets of $1.2 billion, gross loans of $815.4 million, allowance for loan and lease losses ("ALLL") of $11.7 million, total deposits of $1.0 billion, and shareholders' equity of $126.0 million.

                                               
TABLE 2
LOAN BALANCES BY TYPE - UNAUDITED
(amounts in thousands)
  At June 30,             At March 31,
      % of       % of   Change       % of
  2017     Total   2016     Total   Amount   %   2017     Total
Commercial $ 152,204     19 %   $ 150,410     20 %   $ 1,794     1   %   $ 145,635     19 %
Real estate - construction and land development   22,275     3       31,169     4       (8,894 )   (29 ) %     25,241     3  
Real estate - commercial non-owner occupied   310,995     38       246,430     33       64,565     26   %     311,203     38  
Real estate - commercial owner occupied   184,868     23       169,763     23       15,105     9   %     179,752     23  
Real estate - residential - ITIN   43,229     5       47,188     6       (3,959 )   (8 ) %     44,211     5  
Real estate - residential - 1-4 family mortgage   18,904     2       16,806     2       2,098     12   %     19,710     2  
Real estate - residential - equity lines   32,133     4       38,027     5       (5,894 )   (15 ) %     33,019     4  
Consumer and other   50,780     6       54,347     7       (3,567 )   (7 ) %     51,423     6  
Gross loans   815,388     100 %     754,140     100 %     61,248     8   %     810,194     100 %
Deferred fees and costs   1,541             1,028             513             1,446        
Loans, net of deferred fees and costs   816,929             755,168             61,761             811,640        
Allowance for loan and lease losses   (11,688 )           (11,864 )           176             (11,641 )      
Net loans $ 805,241           $ 743,304           $ 61,937           $ 799,999        
                                               
Average yield on loans during the quarter   4.77 %           4.76 %           0.01             4.72 %      

The Company recorded gross loan balances of $815.4 million at June 30, 2017, compared with $754.1 million and $810.2 million at June 30, 2016 and March 31, 2017, respectively, an increase of $61.2 million and $5.2 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 $821.3 million for the quarter ended June 30, 2017, compared with $742.7 million and $806.8 million for the quarters ended June 30, 2016 and March 31, 2017, respectively, an increase of $78.6 million or 11% and $14.5 million or 7% annualized, respectively.

                                                 
TABLE 3
CASH, CASH EQUIVALENTS, AND INVESTMENT SECURITIES - UNAUDITED
(amounts in thousands)
    At June 30,               At March 31,
        % of       % of   Change       % of
    2017     Total   2016     Total   Amount   %   2017     Total
                                                 
Cash and due from banks   $ 23,420     7 %   $ 14,695     6 %   $ 8,725     59   %   $ 18,315     7 %
Interest-bearing deposits in other banks     73,434     22       51,345     19       22,089     43   %     42,744     16  
Total cash and cash equivalents     96,854     29       66,040     25       30,814     47   %     61,059     23  
                                                 
Investment securities:                                                
U.S. government and agencies     24,231     7       12,209     5       12,022     98   %     12,496     5  
Obligations of state and political subdivisions     58,400     17       59,015     23       (615 )   (1 ) %     55,663     20  
Residential mortgage backed securities and
collateralized mortgage obligations
    91,375     28       45,016     17       46,359     103   %     82,392     30  
Corporate securities     8,312     2       22,313     9       (14,001 )   (63 ) %     10,448     4  
Commercial mortgage backed securities     23,421     7       14,865     6       8,556     58   %     16,522     6  
Other asset backed securities     3,870     1       4,488     1       (618 )   (14 ) %     4,013     1  
Total investment securities - AFS     209,609     62       157,906     61       51,703     33   %     181,534     66  
                                                 
Obligations of state and political
subdivisions - HTM
    31,329     9       35,415     14       (4,086 )   (12 ) %     31,257     11  
Total investment securities - AFS
and HTM
    240,938     71       193,321     75       47,617     25   %     212,791     77  
Total cash, cash equivalents and
investment securities
  $ 337,792     100 %   $ 259,361     100 %   $ 78,431     30   %   $ 273,850     100 %
Average yield on interest-bearing due
from banks and investment securities
during the quarter
    2.27 %           2.37 %           (0.10 )           2.17 %      

As of June 30, 2017, we maintained noninterest-bearing cash positions of $23.4 million and interest-bearing deposits of $73.4 million at the Federal Reserve Bank and correspondent banks. Cash balances for the second quarter of 2017 included $26.8 million of net proceeds received from the sale of common stock. During the second quarter of 2017, we deployed liquidity provided by the sale of common stock and strong organic deposit growth primarily into available-for-sale securities and interest-bearing deposits at other banks.

Available-for-sale investment securities totaled $209.6 million at June 30, 2017, compared with $157.9 million and $181.5 million at June 30, 2016 and March 31, 2017, respectively. Our available-for-sale investment portfolio provides us with a secondary source of liquidity to fund higher yielding asset opportunities, such as loan originations. During the second quarter of 2017, we purchased 31 securities with a par value of $43.7 million and weighted average yield of 2.50% and sold eight securities with a par value of $12.6 million and weighted average yield of 1.94%. The sales activity on available-for-sale securities resulted in $35 thousand in net realized gains. During the same period, we received $5.5 million in proceeds from principal payments, calls and maturities within the available-for-sale investment securities portfolio. Average securities balances and weighted average tax equivalent yields for the quarters ended June 30, 2017 and 2016 were $217.6 million and 3.10% compared to $201.4 million and 3.39%, respectively.

At June 30, 2017, our net unrealized gains on available-for-sale investment securities were $682 thousand compared with net unrealized gains of $2.6 million and net unrealized losses of $891 thousand at June 30, 2016 and March 31, 2017, respectively. The decrease in net unrealized gains from June 30, 2016 and June 30, 2017 is primarily due to significant changes in market interest rates.

                                               
TABLE 4
DEPOSITS BY TYPE - UNAUDITED
(amounts in thousands)
  At June 30,               At March 31,
      % of       % of     Change       % of
  2017     Total   2016     Total   Amount   %   2017     Total
Demand - noninterest-bearing $ 303,560     29 %   $ 224,467     24 %   $ 79,093     35   %   $ 270,412     27 %
Demand - interest-bearing   426,798     41       385,609     41       41,189     11   %     407,784     41  
Total demand   730,358     70       610,076     65       120,282     20   %     678,196     68  
                                               
Savings   109,472     10       105,228     11       4,244     4   %     112,738     11  
Total non-maturing deposits   839,830     80       715,304     76       124,526     17   %     790,934     79  
                                               
Certificates of deposit   206,395     20       222,252     24       (15,857 )   (7 ) %     213,556     21  
Total deposits $ 1,046,225     100 %   $ 937,556     100 %   $ 108,669     12   %   $ 1,004,490     100 %
                                               
Average rate on interest-bearing
deposits during the quarter
  0.42 %           0.39 %           0.03             0.39 %      
Average rate on all
deposits during the quarter
  0.31 %           0.30 %           0.01             0.29 %      
                                                       

Total deposits at June 30, 2017, increased $108.7 million or 12% to $1.0 billion compared to June 30, 2016, and increased $41.7 million or 17% annualized compared to March 31, 2017. Total non-maturing deposits increased $124.5 million or 17% compared to the same date a year ago and increased $48.9 million or 25% annualized compared to March 31, 2017. Certificates of deposit decreased $15.9 million or 7% compared to the same date a year ago and decreased $7.2 million or 13% annualized compared to March 31, 2017.

                 
TABLE 5
WHOLESALE AND BROKERED DEPOSITS - UNAUDITED
(amounts in thousands)
  At June 30,   At March 31,
  2017   2016   2017
CDARS / ICS reciprocal brokered deposits $ 56,803   $ 54,783   $ 55,565
Online listing service wholesale time deposits   42,709     54,396     47,429
Total wholesale and brokered deposits $ 99,512   $ 109,179   $ 102,994
 

In accordance with regulatory Call Report instructions, the Bank will file (or has filed) quarterly Call Reports which list brokered deposits of $56.8 million, $54.8 million and $55.6 million at June 30, 2017, June 30, 2016 and March 31, 2017, respectively.

INCOME STATEMENT OVERVIEW

                                         
TABLE 6
SUMMARY INCOME STATEMENT - UNAUDITED
(amounts in thousands, except per share data)
  For The Three Months Ended
  June 30,   Change   March 31,   Change
  2017   2016   Amount   %   2017   Amount   %
Interest income $ 11,320   $ 10,257   $ 1,063     10   %   $ 10,817   $ 503     5   %
Interest expense   1,145     1,040     105     10   %     1,083     62     6   %
Net interest income   10,175     9,217     958     10   %     9,734     441     5   %
Provision for loan
and lease losses
  300         300     100   %     200     100     100   %
Noninterest income   983     437     546     125   %     1,542     (559 )   (36 ) %
Noninterest expense:                                        
Branch acquisition and balance sheet reconfiguration costs       168     (168 )   (100 ) %               %
Other noninterest expense   7,714     7,500     214     3   %     8,061     (347 )   (4 ) %
Income before provision
for income taxes
  3,144     1,986     1,158     58   %     3,015     129     4   %
Provision for income taxes   935     430     505     117   %     763     172     23   %
Net income $ 2,209   $ 1,556   $ 653     42   %   $ 2,252   $ (43 )   (2 ) %
                                         
Basic earnings per share $ 0.15   $ 0.11   $ 0.04     36   %   $ 0.17   $ (0.02 )   (12 ) %
Average basic shares   15,014     13,367     1,647     12   %     13,416     1,598     12   %
Diluted earnings per share $ 0.15   $ 0.11   $ 0.04     36   %   $ 0.17   $ (0.02 )   (12 ) %
Average diluted shares   15,113     13,425     1,688     13   %     13,521     1,592     12   %
Dividends declared per
common share
$ 0.03   $ 0.03   $       %   $ 0.03   $       %
                                                 

Second Quarter of 2017 Compared With Second Quarter of 2016

Net income for the second quarter of 2017 increased $653 thousand compared to the second quarter of 2016. In the current quarter, net interest income was $958 thousand higher and noninterest income was $546 thousand higher. These positive changes were offset by an increase in the provision for loan and lease losses of $300 thousand, noninterest expense that was $46 thousand higher and a provision for income taxes that was $505 thousand higher.

Net Interest Income

Net interest income increased $958 thousand compared to the same period a year ago.

Interest income for the three months ended June 30, 2017 increased $1.1 million or 10% to $11.3 million. Interest and fees on loans increased $962 thousand primarily due to increased average loan balances. Interest on securities increased $10 thousand and interest on interest-bearing deposits due from banks increased $91 thousand.

Interest expense for the second quarter of 2017 increased $105 thousand or 10% to $1.1 million. The increase was primarily caused by an increase in the average rate paid on interest-bearing deposits.

Provision for loan and lease loss

During the three months ended June 30, 2017, the Company recorded a provision for loan and lease losses of $300 thousand reflecting growth in the loan portfolio. There was no provision for loan and lease losses during the second quarter of 2016. Average loans for the quarter ended June 30, 2017 totaled $821.3 million, an increase of $78.6 million (11%) compared to the same quarter a year ago.

Noninterest Income

Noninterest income for the three months ended June 30, 2017 increased $546 thousand compared to the second quarter for 2016. Noninterest income for 2016 was negatively impacted by the $546 thousand other-than-temporary-impairment of a bond investment.

Noninterest Expense

Noninterest expense for the three months ended June 30, 2017 increased $46 thousand compared to the same period a year previous. The increase was primarily due to termination and write-off of a $137 thousand software development project and data processing fees that increased $76 thousand. In 2017, branch acquisition and balance sheet reconfiguration costs of $168 thousand recorded in the same period a year previous did not recur.

Income Tax Provision

During the three months ended June 30, 2017, the Company recorded a provision for income taxes of $935 thousand (29.7% effective tax rate) compared with a provision for income taxes of $430 thousand (21.7% effective tax rate) for the same period a year ago. The Company's effective tax rate has increased as muni income, tax credits and permanent deductions arising from investments in low income housing partnerships comprise a smaller percentage of pre-tax income.

Second Quarter of 2017 Compared With First Quarter of 2017

Net income for the second quarter of 2017 decreased $43 thousand compared to the first quarter of 2017. Net income for the three months ended March 31, 2017 included life insurance death benefit proceeds of $502 thousand that were not subject to income tax. In the current quarter, net interest income was $441 thousand higher and noninterest expenses were $347 thousand lower. These positive changes were offset by an increase in the provision for loan and lease losses of $100 thousand, noninterest income that was $559 thousand lower (a result of the life insurance death benefit proceeds) and a provision for income taxes that was $172 thousand higher.

Net Interest Income

Net interest income increased $441 thousand over the prior quarter.

Interest income for the three months ended June 30, 2017 increased $503 thousand or 5% to $11.3 million compared to the prior quarter. Interest and fees on loans increased $374 thousand due to increased average balances and increased yields. Interest on investment securities increased $87 thousand due to increased average balances and increased yields. Interest on interest-bearing deposits due from banks increased $42 thousand due to increased yields.

Interest expense for the three months ended June 30, 2017 increased $62 thousand or 6% to $1.1 million compared to the prior quarter. Interest paid on deposits increased from 29 basis points to 31 basis points.

Provision for loan and lease loss

During the three months ended June 30, 2017, the Company recorded a provision for loan and lease losses of $300 thousand compared with a provision for loan lease losses of $200 thousand for the prior quarter. Average loans for the quarter ended June 30, 2017 totaled $821.3 million, an increase of $14.5 million (7% annualized) compared to the prior quarter.

Noninterest Income

Noninterest income for the three months ended June 30, 2017 decreased $559 thousand compared to the prior quarter. During the current quarter, dividends on Federal Home Loan Bank of San Francisco stock decreased $49 thousand. During the prior quarter, we recognized income from life insurance death benefit proceeds of $502 thousand.

Noninterest Expense

Noninterest expense for the three months ended June 30, 2017 decreased $347 thousand compared to the prior quarter.

The decrease in noninterest expense was primarily driven by the following positive items:

  • Employee incentive payments decreased $190 thousand
  • Employee vacation accrual costs decreased $183 thousand
  • Other salaries and related benefits costs decreased $118 thousand
  • Payroll tax expenses decreased $221 thousand

These positive items were partially offset by the termination and write-off of a $137 thousand software development project and Nasdaq / transfer agent costs which increased $62 thousand.

Income Tax Provision

During the three months ended June 30, 2017, we recorded a provision for income taxes of $935 thousand (29.74% of pretax income) compared with a provision for income taxes of $763 thousand (25.31% of pretax income) for the prior quarter. Life insurance death benefits of $502 thousand recorded during the previous quarter are not subject to income tax, and if excluded from pretax income, the effective tax rate would have been 30.36%.

Earnings Per Share

Diluted earnings per share were $0.15 for the three months ended June 30, 2017 compared with diluted earnings per share of $0.11 for the same period a year ago and diluted earnings per share of $0.17 for the prior period. Net income and weighted average shares used to calculate earnings per share – diluted are summarized in table 6 above.

                                                       
TABLE 7a
NET INTEREST MARGIN - UNAUDITED
(amounts in thousands)
    For The Three Months Ended
    June 30, 2017   June 30, 2016   March 31, 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)   $ 821,321   $ 9,758   4.77 %   $ 742,684   $ 8,796   4.76 %   $ 806,793   $ 9,384   4.72 %
Taxable securities     143,705     872   2.43 %     124,183     808   2.62 %     137,582     789   2.33 %
Tax-exempt securities     73,927     534   2.90 %     77,168     588   3.06 %     73,524     530   2.92 %
Interest-bearing deposits
in other banks
    58,691     156   1.07 %     46,097     65   0.57 %     57,140     114   0.81 %
Average interest-
earning assets
    1,097,644     11,320   4.14 %     990,132     10,257   4.17 %     1,075,039     10,817   4.08 %
Cash and due from banks     17,364                 17,028                 16,873            
Premises and equipment, net     15,809                 15,632                 16,165            
Other assets     39,630                 41,394                 40,228            
Average total assets   $ 1,170,447               $ 1,064,186               $ 1,148,305            
                                                       
Interest-bearing liabilities:                                                      
Interest-bearing demand   $ 421,888     184   0.17 %   $ 382,811     130   0.14 %   $ 420,416     148   0.14 %
Savings deposits     109,857     47   0.17 %     103,990     41   0.16 %     113,647     47   0.17 %
Certificates of deposit     208,703     545   1.05 %     223,958     515   0.92 %     215,202     529   1.00 %
Net term debt     19,539     298   6.12 %     19,510     295   6.08 %     18,598     293   6.39 %
Junior subordinated
debentures
    10,310     71   2.76 %     10,310     59   2.30 %     10,310     66   2.60 %
Average interest-
bearing liabilities
    770,297     1,145   0.60 %     740,579     1,040   0.56 %     778,173     1,083   0.56 %
Noninterest-bearing demand     275,039                 220,377                 262,881            
Other liabilities     12,256                 11,913                 12,431            
Shareholders' equity     112,855                 91,317                 94,820            
Average liabilities and
shareholders' equity
  $ 1,170,447               $ 1,064,186               $ 1,148,305            
Net interest income and
net interest margin (4)
        $ 10,175   3.72 %         $ 9,217   3.74 %         $ 9,734   3.67 %
Tax equivalent net
  interest margin (3)
              3.82 %               3.87 %               3.78 %
(1) Interest income on loans is net of deferred fees and costs of approximately $131 thousand, $352 thousand, and $197 thousand for the three months ended June 30, 2017, and 2016 and March 31, 2017, respectively.
(2) Net loans includes average nonaccrual loans of $9.8 million, $11.4 million and $10.9 million for the three months ended June 30, 2017 and 2016 and March 31, 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 $275 thousand, $303 thousand and $273 thousand for the three months ended June 30, 2017 and 2016 and March 31, 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 Six Months Ended  
    June 30, 2017   June 30, 2016  
    Average         Yield /   Average         Yield /  
(Amounts in thousands)   Balance   Interest(1)   Rate (5)   Balance   Interest(1)   Rate (5)  
Interest-earning assets:                                      
Net loans (2)   $ 814,098   $ 19,142   4.74 %   $ 731,740   $ 17,247   4.74 %  
Taxable securities     140,660     1,661   2.38 %     122,050     1,592   2.62 %  
Tax-exempt securities     73,726     1,064   2.91 %     77,510     1,182   3.07 %  
Interest-bearing deposits
in other banks
    57,920     270   0.94 %     48,676     140   0.58 %  
Average interest-
earning assets
    1,086,404     22,137   4.11 %     979,976     20,161   4.14 %  
Cash and due from banks     17,120                 14,665              
Premises and equipment, net     15,986                 14,008              
Other assets     39,928                 40,543              
Average total assets   $ 1,159,438               $ 1,049,192              
                                       
Interest-bearing liabilities:                                      
Interest-bearing demand   $ 421,156     332   0.16 %   $ 353,291     252   0.14 %  
Savings deposits     111,742     94   0.17 %     100,008     86   0.17 %  
Certificates of deposit     211,934     1,074   1.02 %     222,897     1,112   1.00 %  
Net term debt     19,071     591   6.25 %     55,478     1,077   3.90 %  
Junior subordinated
debentures
    10,310     137   2.68 %     10,310     113   2.20 %  
Average interest-
bearing liabilities
    774,213     2,228   0.58 %     741,984     2,640   0.72 %  
Noninterest-bearing demand     268,994                 201,457              
Other liabilities     12,343                 14,439              
Shareholders' equity     103,888                 91,312              
Average liabilities and
shareholders' equity
  $ 1,159,438               $ 1,049,192              
Net interest income and
net interest margin (4)
        $ 19,909   3.70 %         $ 17,521   3.60 %  
Tax equivalent net
  interest margin (3)
              3.80 %               3.72 %  
(1) Interest income on loans is net of deferred fees and costs of approximately $328 thousand and $667 thousand for the six months ended June 30, 2017 and 2016, respectively.
(2) Net loans includes average nonaccrual loans of $10.3 million and $10.9 million for the six months ended June 30, 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 $548 thousand and $609 thousand for the six months ended June 30, 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.
 

The current quarter net interest margin increased five basis points to 3.72% as compared to the prior quarter due to increased yields on average interest-earning assets. Increases in the average balances of interest-earning assets were funded by increased average balances in low cost demand deposits and increased average equity as a result of the sale of common stock during the quarter.

The net interest margin was 3.72% for the current quarter compared to 3.74% for the same period a year ago. The decrease was due to decreased yield on the securities portfolio and increased cost of interest-bearing liabilities. The decrease was partially offset by increased yield on loans and interest-bearing deposits at other institutions. The increase in interest income compared to the same quarter in the prior year is due to increased volume in the loan and investment portfolios. The increase in interest expense resulted primarily from an increase in the average rate paid on interest-bearing deposits.

Average deposit balances for the current quarter increased $3.3 million and $84.4 million compared to the prior quarter and the same period a year ago, respectively. The increase in average deposit balances compared to the prior quarter and the same quarter in the prior year was due to organic growth in core deposits. Our overall cost of total deposits increased to 0.31% for the quarter ended June 30, 2017 from 0.30% for the same period a year ago and from 0.29% for the prior quarter.

                                       
TABLE 8  
ALLOWANCE FOR LOAN AND LEASE LOSSES ROLL FORWARD AND IMPAIRED LOAN TOTALS - UNAUDITED  
(amounts in thousands)  
  For The Three Months Ended  
  June 30,   March 31,   December 31,   September 30,   June 30,
  2017   2017   2016   2016   2016
Beginning balance ALLL $ 11,641       $ 11,544       $ 11,849       $ 11,864       $ 11,495    
Provision for loan and lease losses   300         200                            
Loans charged-off   (359 )       (447 )       (386 )       (357 )       (1,734 )  
Loan loss recoveries   106         344         81         342         2,103    
Ending balance ALLL $ 11,688       $ 11,641       $ 11,544       $ 11,849       $ 11,864    
                                       
  At June 30,   At March 31,   At December 31,   At September 30,   At June 30,
  2017   2017   2016   2016   2016
Nonaccrual loans:                                      
Commercial $ 2,410       $ 2,534       $ 2,749       $ 1,710       $ 2,149    
Real estate - commercial non-owner occupied   1,196         1,196         1,196         1,196         1,197    
Real estate - commercial owner occupied   639         654         784         800         816    
Real estate - residential - ITIN   3,346         3,331         3,576         3,392         3,664    
Real estate - residential - 1-4 family mortgage   653         1,337         1,914         1,798         1,824    
Real estate - residential - equity lines   872         906         917         942         995    
Consumer and other   38         39         250         252         266    
Total nonaccrual loans   9,154         9,997         11,386         10,090         10,911    
Accruing troubled debt restructured loans:                                      
Commercial   703         741         776         726         760    
Real estate - commercial non-owner occupied   806         808         808         811         816    
Real estate - residential - ITIN   4,712         4,761         5,033         5,280         5,336    
Real estate - residential - equity lines   445         450         454         543         548    
Total accruing troubled debt restructured loans   6,666         6,760         7,071         7,360         7,460    
                                       
All other accruing impaired loans                   337         483         550    
                                       
Total impaired loans $ 15,820       $ 16,757       $ 18,794       $ 17,933       $ 18,921    
                                       
Gross loans outstanding at period end $ 815,388       $ 810,194       $ 804,211       $ 779,019       $ 754,140    
                                       
Nonaccrual loans to gross loans   1.12   %     1.23   %     1.42   %     1.30   %     1.45   %
                                       
Allowance for loan and lease losses as a percent of:                          
Gross loans   1.43   %     1.44   %     1.44   %     1.52   %     1.57   %
Nonaccrual loans   127.68   %     116.44   %     101.39   %     117.43   %     108.73   %
Impaired loans   73.88   %     69.47   %     61.42   %     66.07   %     62.70   %
                                                 

We realized net loan loss charge-offs of $253 thousand in the current quarter compared with net loan loss charge-offs of $103 thousand in the prior quarter and net loan recoveries of $369 thousand for the same period a year ago. Charge-offs during the second quarter of 2017 of $359 thousand were primarily associated with purchased consumer loans and residential real estate loans.

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 $300 thousand provision for loan and lease losses during the quarter ended June 30, 2017 and a $200 thousand provision for loan and lease losses during the quarter ended March 31, 2017. There were no provisions for loan and lease losses during the years ended December 31, 2016 or 2015. Our ALLL as a percentage of gross loans was 1.43% as of June 30, 2017 compared to 1.57% as of June 30, 2016 and 1.44% as of March 31, 2017. Based on the Bank's ALLL methodology, which uses criteria such as risk weighting and historical loss rates, and given the ongoing improvements in asset quality, management believes the Company's ALLL is adequate at June 30, 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 June 30, 2017, the recorded investment in loans classified as impaired totaled $15.8 million, with a corresponding specific reserve of $1.1 million compared to impaired loans of $18.9 million with a corresponding specific reserve of $903 thousand at June 30, 2016 and impaired loans of $16.8 million, with a corresponding specific reserve of $1.3 million at March 31, 2017. The decrease in loans classified as impaired and the decrease in the corresponding specific reserve compared to the prior quarter is primarily due to one nonaccrual residential real estate loan that was transferred to OREO during the quarter.

                                         
TABLE 9
TROUBLED DEBT RESTRUCTURINGS - UNAUDITED
(amounts in thousands)
    At June 30,   At March 31,   At December 31,   At September 30,   At June 30,
    2017   2017   2016   2016   2016
Nonaccrual   $ 4,630     $ 4,570     $ 4,995     $ 3,795     $ 3,905  
Accruing     6,666       6,760       7,071       7,360       7,460  
Total troubled debt restructurings   $ 11,296     $ 11,330     $ 12,066     $ 11,155     $ 11,365  
                                         
Percentage of total gross loans     1.39 %     1.40 %     1.50 %     1.43 %     1.51 %
                                         

There was one new troubled debt restructuring to grant a rate and payment deferral modification for a loan that was placed on nonaccrual status during the three months ended June 30, 2017. As of June 30, 2017, we had 118 restructured loans that qualified as troubled debt restructurings, of which 111 were performing according to their restructured terms.

                                         
TABLE 10
NONPERFORMING ASSETS - UNAUDITED
(amounts in thousands)
    At June 30,   At March 31,   At December 31,   At September 30,   At June 30,
    2017   2017   2016   2016   2016
Total nonaccrual loans   $ 9,154     $ 9,997     $ 11,386     $ 10,090     $ 10,911  
90 days past due and still accruing                             10  
Total nonperforming loans     9,154       9,997       11,386       10,090       10,921  
                                         
Other real estate owned     1,517       814       759       793       765  
Total nonperforming assets   $ 10,671     $ 10,811     $ 12,145     $ 10,883     $ 11,686  
                                         
Nonperforming loans to gross loans     1.12 %     1.23 %     1.42 %     1.30 %     1.45 %
Nonperforming assets to total assets     0.88 %     0.95 %     1.06 %     0.98 %     1.09 %
                                         

The June 30, 2017 OREO balance consists of six properties, of which three are 1-4 family residential real estate properties in the amount of $876 thousand, two are nonfarm nonresidential properties in the amount of $530 thousand and one is an undeveloped commercial property in the amount of $112 thousand. The increase the OREO balance compared to the prior quarter is due to one residential real estate loan that was transferred to OREO during the quarter.

                               
TABLE 11
UNAUDITED CONSOLIDATED
BALANCE SHEET
(amounts in thousands, except per share data)
    At June 30,   At June 30,   Change   At March 31,
    2017     2016     $   %   2017  
Assets:                              
Cash and due from banks   $ 23,420     $ 14,695     $ 8,725     59   %   $ 18,315  
Interest-bearing deposits in other banks     73,434       51,345       22,089     43   %     42,744  
Total cash and cash equivalents     96,854       66,040       30,814     47   %     61,059  
                               
Securities available-for-sale, at fair value     209,609       157,906       51,703     33   %     181,534  
Securities held-to-maturity, at amortized cost     31,329       35,415       (4,086 )   (12 ) %     31,257  
                               
Loans, net of deferred fees and costs     816,929       755,168       61,761     8   %     811,640  
Allowance for loan and lease losses     (11,688 )     (11,864 )     176     (1 ) %     (11,641 )
Net loans     805,241       743,304       61,937     8   %     799,999  
                               
Premises and equipment, net     15,417       15,660       (243 )   (2 ) %     15,903  
Other real estate owned     1,517       765       752     98   %     814  
Life insurance     21,629       22,794       (1,165 )   (5 ) %     21,494  
Deferred taxes     8,723       8,026       697     9   %     9,363  
Goodwill and core deposit intangible, net     2,141       2,362       (221 )   (9 ) %     2,196  
Other assets     19,634       17,920       1,714     10   %     19,132  
Total assets   $ 1,212,094     $ 1,070,192     $ 141,902     13   %   $ 1,142,751  
                               
Liabilities and shareholders' equity:                              
Demand - noninterest-bearing   $ 303,560     $ 224,467     $ 79,093     35   %   $ 270,412  
Demand - interest-bearing     426,798       385,609       41,189     11   %     407,784  
Savings     109,472       105,228       4,244     4   %     112,738  
Certificates of deposit     206,395       222,252       (15,857 )   (7 ) %     213,556  
Total deposits     1,046,225       937,556       108,669     12   %     1,004,490  
                               
Term debt     18,300       19,577       (1,277 )   (7 ) %     18,667  
Unamortized debt issuance costs     (161 )     (201 )     40     (20 ) %     (173 )
Net term debt     18,139       19,376       (1,237 )   (6 ) %     18,494  
                               
Junior subordinated debentures     10,310       10,310           0   %     10,310  
Other liabilities     11,468       10,462       1,006     10   %     12,994  
Total liabilities     1,086,142       977,704       108,438     11   %     1,046,288  
                               
Shareholders' equity:                              
Common stock     51,651       24,421       27,230     112   %     24,800  
Retained earnings     73,789       66,356       7,433     11   %     72,066  
Accumulated other comprehensive income (loss), net of tax     512       1,711       (1,199 )   (70 ) %     (403 )
Total shareholders' equity     125,952       92,488       33,464     36   %     96,463  
                               
Total liabilities and shareholders' equity   $ 1,212,094     $ 1,070,192     $ 141,902     13   %   $ 1,142,751  
                               
Total interest-earning assets   $ 1,130,619     $ 997,211     $ 133,408     13   %   $ 1,068,066  
Shares outstanding     16,260       13,439                   13,517  
Tangible book value per share   $ 7.61     $ 6.71                 $ 6.97  


                                           
TABLE 12
UNAUDITED
INCOME STATEMENT
(amounts in thousands, except per share data)
    For The Three Months Ended   For The Six Months Ended
    June 30,   Change   March 31,   June 30,
    2017   2016     $   %   2017   2017   2016  
Interest income:                                          
Interest and fees on loans   $ 9,758   $ 8,796     $ 962     11   %   $ 9,384   $ 19,142   $ 17,247  
Interest on securities     872     808       64     8   %     789     1,661     1,592  
Interest on tax-exempt securities     534     588       (54 )   (9 ) %     530     1,064     1,182  
Interest on deposits in other banks     156     65       91     140   %     114     270     140  
Total interest income     11,320     10,257       1,063     10   %     10,817     22,137     20,161  
Interest expense:                                          
Interest on demand deposits     184     130       54     42   %     148     332     252  
Interest on savings deposits     47     41       6     15   %     47     94     86  
Interest on certificates of deposit     545     515       30     6   %     529     1,074     1,112  
Interest on term debt     298     295       3     1   %     293     591     1,077  
Interest on other borrowings     71     59       12     20   %     66     137     113  
Total interest expense     1,145     1,040       105     10   %     1,083     2,228     2,640  
Net interest income     10,175     9,217       958     10   %     9,734     19,909     17,521  
Provision for loan and lease losses     300           300     100   %     200     500      
Net interest income after provision
for loan and lease losses
    9,875     9,217       658     7   %     9,534     19,409     17,521  
Noninterest income:                                          
Service charges on deposit accounts     142     88       54     61   %     127     269     160  
ATM and point of sale     288     335       (47 )   (14 ) %     266     554     427  
Payroll and benefit processing fees     147     139       8     6   %     191     338     299  
Life insurance     135     153       (18 )   (12 ) %     646     781     309  
Gain on investment securities, net     35     28       7     25   %     66     101     122  
Impairment losses on investment securities         (546 )     546     100   %             (546 )
Federal Home Loan Bank of
San Francisco dividends
    54     99       (45 )   (45 ) %     103     157     189  
Other income     182     141       41     29   %     143     325     426  
Total noninterest income     983     437       546     125   %     1,542     2,525     1,386  


                                           
TABLE 12 - CONTINUED
UNAUDITED
INCOME STATEMENT
(amounts in thousands, except per share data)
    For The Three Months Ended   For The Six Months Ended
    June 30,   Change   March 31,   June 30,
    2017   2016   $   %   2017   2017   2016
Noninterest expense:                                          
Salaries and related benefits     4,147     4,086     61     1   %     4,858     9,005     8,315
Occupancy and equipment     1,054     987     67     7   %     1,048     2,102     1,776
Federal Deposit Insurance Corporation
insurance premium
    104     181     (77 )   (43 ) %     48     152     337
Data processing fees     450     374     76     20   %     407     857     678
Professional service fees     501     470     31     7   %     393     894     906
Telecommunications     223     199     24     12   %     211     434     346
Branch acquisition costs         168     (168 )   (100 ) %             580
Loss on cancellation of interest rate swap                   %             2,325
Other expenses     1,235     1,203     32     3   %     1,096     2,331     2,406
Total noninterest expense     7,714     7,668     46     1   %     8,061     15,775     17,669
Income before provision for income taxes     3,144     1,986     1,158     58   %     3,015     6,159     1,238
Deferred tax asset write-off                   %             363
Provision for income taxes     935     430     505     117   %     763     1,698     279
Net income   $ 2,209   $ 1,556   $ 653     42   %   $ 2,252   $ 4,461   $ 596
                                           
Basic earnings per share   $ 0.15   $ 0.11   $ 0.04     36   %   $ 0.17   $ 0.31   $ 0.04
Average basic shares     15,014     13,367     1,647     12   %     13,416     14,220     13,364
Diluted earnings per share   $ 0.15   $ 0.11   $ 0.04     36   %   $ 0.17   $ 0.31   $ 0.04
Average diluted shares     15,113     13,425     1,688     13   %     13,521     14,321     13,408


                               
TABLE 13
UNAUDITED CONDENSED CONSOLIDATED
YEAR TO DATE AVERAGE BALANCE SHEETS
(amounts in thousands)
  For the Six Months Ended   For the Twelve Months Ended
    June 30,   June 30,   December 31,   December 31,   December 31,
    2017   2016   2016   2015   2014
Earning assets:                            
Loans   $ 814,098   $ 731,740   $ 752,938   $ 699,227   $ 625,166
Taxable securities     140,660     122,050     120,884     120,897     147,916
Tax exempt securities     73,726     77,510     75,303     77,089     83,973
Interest-bearing deposits in other banks     57,920     48,676     58,668     30,323     56,465
Total earning assets     1,086,404     979,976     1,007,793     927,536     913,520
                               
Cash and due from banks     17,120     14,665     15,831     11,220     11,246
Premises and equipment, net     15,986     14,008     15,078     11,552     12,105
Other assets     39,928     40,543     41,048     42,423     36,936
Total assets   $ 1,159,438   $ 1,049,192   $ 1,079,750   $ 992,731   $ 973,807
                               
Liabilities and shareholders' equity:                              
Demand - noninterest-bearing   $ 268,994   $ 201,457   $ 226,368   $ 156,578   $ 139,792
Demand - interest-bearing     421,156     353,291     374,170     283,105     272,383
Savings     111,742     100,008     104,771     92,659     91,108
Certificates of deposit     211,934     222,897     221,074     238,626     259,445
Total deposits     1,013,826     877,653     926,383     770,968     762,728
                               
Term debt     19,071     55,478     37,286     88,874     77,534
Junior subordinated debentures     10,310     10,310     10,310     10,310     15,239
Other liabilities     12,343     14,439     13,217     16,588     15,934
Total liabilities     1,055,550     957,880     987,196     886,740     871,435
                               
Shareholders' equity     103,888     91,312     92,554     105,991     102,372
Liabilities & shareholders' equity   $ 1,159,438   $ 1,049,192   $ 1,079,750   $ 992,731   $ 973,807


                               
TABLE 14
UNAUDITED CONDENSED CONSOLIDATED
QUARTERLY AVERAGE BALANCE SHEETS
(amounts in thousands)
    For The Three Months Ended
    June 30,   March 31,   December 31,   September 30,   June 30,
    2017   2017   2016   2016   2016
Earning assets:                              
Loans   $ 821,321   $ 806,793   $ 778,458   $ 769,354   $ 742,684
Taxable securities     143,705     137,582     124,881     114,578     124,183
Tax exempt securities     73,927     73,524     72,288     73,952     77,168
Interest-bearing deposits in other banks     58,691     57,140     75,760     61,346     46,097
Total earning assets     1,097,644     1,075,039     1,051,387     1,019,230     990,132
                               
Cash and due from banks     17,364     16,873     16,953     17,018     17,028
Premises and equipment, net     15,809     16,165     16,331     15,941     15,632
Other assets     39,630     40,228     41,363     41,729     41,394
Total assets   $ 1,170,447   $ 1,148,305   $ 1,126,034   $ 1,093,918   $ 1,064,186
                               
Liabilities and shareholders' equity:                              
Demand - noninterest-bearing   $ 275,039   $ 262,881   $ 261,600   $ 240,418   $ 220,377
Demand - interest-bearing     421,888     420,416     398,749     390,895     382,811
Savings     109,857     113,647     111,755     107,210     103,990
Certificates of deposit     208,703     215,202     217,463     221,078     223,958
Total deposits     1,015,487     1,012,146     989,567     959,601     931,136
                               
Term debt     19,539     18,598     18,975     19,610     19,510
Junior subordinated debentures     10,310     10,310     10,310     10,310     10,310
Other liabilities     12,256     12,431     12,856     11,159     11,913
Total liabilities     1,057,592     1,053,485     1,031,708     1,000,680     972,869
                               
Shareholders' equity     112,855     94,820     94,326     93,238     91,317
Liabilities & shareholders' equity   $ 1,170,447   $ 1,148,305   $ 1,126,034   $ 1,093,918   $ 1,064,186


About Bank of Commerce Holdings

Bank of Commerce Holdings is a bank holding company headquartered in Redding, 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 (530) 722-3900

Samuel D. Jimenez, Executive Vice President and Chief Operating Officer
Telephone Direct (530) 722-3952

James A. Sundquist, Executive Vice President and Chief Financial Officer
Telephone Direct (530) 722-3908

Andrea Schneck, Vice President and Senior Administrative Officer
Telephone Direct (530) 722-3959

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