TNCC Tennessee Commerce Bancorp (TN) (MM)

Tennessee Commerce Bancorp, Inc. (NASDAQ: TNCC) today announced that it expects to report record results for the third quarter ending September 30, 2008, including record net income, assets, loans and deposits. �We expect Tennessee Commerce to report record results for the third quarter due to continued loan growth, improved margins and solid credit quality,� stated Mike Sapp, President of Tennessee Commerce Bancorp. �We expect our growth rates for assets, loans and deposits to exceed 29% compared with the third quarter of 2007, significantly outperforming our bank peer group. We are proud of the fact that all of our growth has been generated from our strong markets and our strategic focus on business customers, without any assistance from mergers or acquisitions. �Loan demand remained strong in the third quarter with net loans topping $985 million, up from $729�million in the third quarter of last year. Our loan quality also benefited from our focus on the business sector. We do not have any exposure to subprime loans and our loan portfolio is diversified over a wide range of industries. As a result, we expect our third quarter loan loss provision to be below $2�million. This amount is up from the $1.3 million reported in the third quarter of last year but less than the $2.3�million reported in the linked second quarter of this year,� noted Mr. Sapp. Tennessee Commerce expects to report third quarter net income of $0.38 to $0.40 per diluted share. This compares with $0.36 per diluted share reported in the third quarter of 2007. Total assets are expected to exceed $1.1 billion and deposits are expected to top $988 million at September 30, 2008. �Third quarter earnings were tempered somewhat by lower loan sales than we had budgeted,� noted Mr.�Sapp. �The turmoil in the banking industry resulted in lower sales to correspondent banks than anticipated. This resulted in a lower gain on sale of loans than in the third quarter of last year. We expect loan sales to improve as the banking market stabilizes. �We remain on track to report record results for 2008. We have a strong business model that is focused on growth segments within the economy. As a result, we expect to outperform the market during these tough economic times,� concluded Mr. Sapp. Tennessee Commerce expects to report its third quarter results the week of October 27, 2008. About Tennessee Commerce Bancorp, Inc. Tennessee Commerce Bancorp, Inc. is the parent company of Tennessee Commerce Bank. The Bank provides a wide range of banking services and is primarily focused on business accounts. Its corporate and banking offices are located in Franklin, Tennessee, and it has loan production offices in Birmingham, Alabama and Minneapolis. Tennessee Commerce Bancorp's stock is traded on the NASDAQ Global Market under the symbol TNCC. Information contained in this press release, other than historical information, is forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Tennessee Commerce Bancorp's operating results, performance or financial condition are competition, changes in interest rates, the demand for its products and services, the ability to expand, and numerous other factors as set forth in the Corporation's filings with the Securities and Exchange Commission. Additional information concerning Tennessee Commerce can be accessed at www.tncommercebank.com.