Valley Commerce Bancorp reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. The company reported unaudited consolidated net income of $620,000 or $0.20 per diluted share for the quarter ended September 30, 2009, compared to $478,000 or $0.18 per diluted share for the same period of 2008. Third quarter 2009 net income increased by $142,000 over third quarter 2008 net income due to a $365,000 increase in net interest income and $165,000 in gains on sale of securities. These increases were partially offset by a $200,000 increase in the provision for loan losses. There were no gains or losses recorded from the sale of investment securities during the comparable 2008 period. Net interest income for the three months ended September 30, 2009 was $3.4 million compared to $3.0 million for the same periods of the previous year. The improvement for the 2009 periods was primarily attributable to an increase in average loans. For the third quarter, the bank reported income before income taxes of $923,000 and net income available to common shareholders of $524,000 compared to income before income taxes of $680,000 and net income available to common shareholders of $478,000 for the same period a year ago. For the nine months ended September 30, 2009 the company's consolidated net income totaled $1,449,000 or $0.48 per diluted share compared to $1,432,000 or $0.54 per diluted share in the comparable 2008 period. The company's annualized return on average assets for the nine-month periods ended September 30, 2009 and 2008 was 0.63% and 0.65%, respectively. The annualized return on average common equity was 5.34% for the 2009 period compared to 6.55% for the 2008 period. For the nine-month period, the decrease in diluted earnings per share resulted primarily from dividends paid or accrued on preferred stock issued to the United States Treasury under the Capital Purchase Program as increases in both net interest income of $560,000 and non-interest income of $480,000 were offset by increases in both the provision for loan losses of $800,000 and non-interest expense of $375,000. Net interest income for the nine months ended September 30, 2009 was $9.6 million compared to net interest income of $9.1 million for the same periods of the previous year. For the nine months, the bank reported income before income taxes of $1,890,000 and net income available to common shareholders of $1,241,000 compared to income before income taxes of $2,026,000 and net income available to common shareholders of $1,432,000 for the same period a year ago.

Valley Commerce Bancorp announced consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net income available to shareholders of $462,000 or $0.18 per diluted share for the quarter ended June 30, 2009, compared to $536,000 or $0.21 per diluted share for the same period of 2008. Significant factors affecting second quarter 2009 net income included an increase in the provision for loan losses to $1.0 million compared to $400,000 for the same quarter of 2008. The $600,000 increase in the provision for loan losses was offset by $317,000 in officer life insurance benefits and a decrease in the provision for income taxes of $263,000. Interest Income for the period was $4,182,000 as compared to $4,454,000 for the same period prior year. Income before taxes was $504,000 as compared to $771,000 for the same period prior year. Net interest income was $3.2 million compared to $3.1 million for the same period previous year. For the six months ended June 30, 2009 the company's consolidated net income available to shareholders was $717,000 or $0.28 per diluted share compared to $953,000 or $0.36 per diluted share in the comparable 2008 period. For both the three-month and six-month periods, the decrease in diluted earnings per share resulted mostly from dividends on preferred stock issued to the United States Treasury. The Company's annualized return on average assets for the six-month periods ended June 30, 2009 and 2008 was 0.57% and 0.67%, respectively. The annualized return on average common equity was 4.67% for the 2009 period compared to 6.56% for the 2008 period. Net interest income was $6.3 million compared to $1.1 million for the same period previous year. The improvement for the six-month period was attributable to an increase in the balance of average loans and reductions in the rates paid on interest bearing liabilities partially offset by reductions in rates earned on loans. Interest Income for the period was $8,405,000 as compared to $8,903,000 for the same period prior year. Income before taxes was $967,000 as compared to $1,345,000 for the same period prior year. The book value per common share was $11.87 at June 30, 2009, compared to $11.13 at June 30, 2008. The increase in book value was primarily attributable to the retention of earnings during the 12-month period ended June 30, 2009.

Valley Commerce Bancorp announced that its shareholders at annual meeting held May 19, 2009 approved the election of David B. Day, Walter A. Dwelle, Thomas A. Gaebe, Donald A. Gilles, Philip R. Hammond, Jr., Russell F. Hurley, Fred P. LoBue, Jr., Kenneth H. Macklin, and Barry R. Smith as board of directors of the company.