Bank of Commerce (the Bank) is engaged in commercial banking in the Charlotte region of North Carolina, principally Mecklenburg County. The Bank�s primary sources of revenue are derived from loans and investment securities. As of December 31, 2010, the Bank�s loan portfolio include real estate loans, which comprise of single family to multi-family residential loans, home equity lines of credit, other construction loans, loans for land development and other land, as well as commercial real estate owner occupied and non-owner occupied loans. Loans are primarily made in the Charlotte region of North Carolina. As of December 31, 2010, the Bank�s investments consisted of investment securities available for sale and its investment securities held to maturity. The Bank has also borrowed funds, which consist of federal funds purchased, Federal Home Loan Bank (FHLB) borrowings maturing one-to-five years and securities sold under agreements to repurchase.