Bank of Commerce Holdings announced earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported total interest income of $9,846,000, net interest income of $8,754,000, net interest income after provision for loan and lease losses of $4,204,000, net income from continuing operations of $1,384,000 or $0.08 per diluted share, net income attributable to company of $1,384,000 and income available to common shareholders of $1,188,000 compared to total interest income of $10,126,000, net interest income of $8,486,000, net interest income after provision for loan and lease losses of $6,686,000, net income from continuing operations of $1,834,000 or $0.11 per diluted share, net income attributable to company of $2,062,000 and income available to common shareholders of $1,923,000 a year ago period. The increase in net interest income during the three months ended December 31, 2012 compared to the same period a year ago was primarily driven by increased volume in the investment securities portfolio, decreased cost of funds resulting from the re-pricing of deposits, and lower average balances in time deposits. Return on average assets (ROA) and return on average equity (ROE) for the three months ended December 31, 2012, was 0.57% and 4.97%, respectively, compared with 0.90% and 7.48%, respectively, for the three months ended December 31, 2011. The decrease in ROA and ROE for the three months ended December 31, 2012, compared with the same period a year ago, was primarily driven by increased provisions for loan and lease losses, partially offset by gains on sales of investment securities. Book value per common share as at December 31, 2012 was $5.66.

For the full year, the company reported total interest income of $40,337,000, net interest income of $35,108,000, net interest income after provision for loan and lease losses of $25,708,000, net income from continuing operations of $7,560,000 or $0.418 per diluted share, net income attributable to company of $7,416,000 and income available to common shareholders of $6,536,000 compared to total interest income of $41,631,000, net interest income of $34,155,000, net interest income after provision for loan and lease losses of $25,164,000, net income from continuing operations of $6,684,000 or $0.34 per diluted share, net income attributable to company of $7,255,000 and income available to common shareholders of $6,312,000 a year ago period.

Net charge offs were $4.0 million for the three months ended December 31, 2012, compared with net charge offs of $3.8 million for the three months ended September 30, 2012. The fourth quarter charge offs were centered in commercial real estate, 1-4 family residential, and home equity loans.