Bank of Commerce Holdings (NASDAQ: BOCH) recently announced financial results for the quarter and six months ending on June 30, 2021. The company is an asset holding company and the parent company of Merchants Bank of Commerce (the bank).
The company’s net income for 2Q2021 was $4.1 million or $0.25 per share- diluted, compared to a net income of $3.8 million or $0.23 per share- diluted in a similar period last year. Net income for the six months ending June 30, 2021, was $9.1 million or $0.54 per share- diluted, compared to a net income of $4.8 million or $0.28 per share- diluted for the first six months of 2020.
The merger agreement with Columbia Banking Systems Inc.
On June 23, 2021, the company entered into a merger agreement with Columbia Banking Systems Inc (NASDAQ: COLB), Whereby Columbia Banking would be the surviving entity. The merger is expected to be finalized in the last quarter of 2021.
The bank also continued to experience remarkable growth in deposits of $83 million during the current quarter and $71 million during the previous quarter. The second quarter of 2021 also saw the company receive $67.3 million in repayments of PPP loans. However, the company’s net interest margin dropped to 3.16% for the second quarter compared to 3.46% in the previous quarter.
According to Randall S. Eslick, President and CEO of Bank of Commerce Holdings, the second quarter was an exciting time for the company. He attributes this to the announcement of the merger with Columbia Banking Systems Inc in June, which he said the company believes will, upon completion, improve financial returns to shareholders and provide their customers with a more comprehensive range of loan and deposit products.
Forgiving PPP loans
He added that during 2020, the company funded 606 loans totaling $163.5 million under the first Small Business Administration Paycheck Protection Program (PPP). In addition, the company continues to process loan forgiveness applications and had 47 loans totaling $12.3 million remaining to be forgiven by June 30, 2021, compared to 228 loans totaling $79 million by March 31, 2021.