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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
  
 California
    
    94-2823865(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)1901 Churn Creek Road Redding, California96002(Address of principal executive offices)
    
    (Zip code)
   
 þ o
  Large accelerated filer
o
    
    Accelerated filer o
    
    Non-accelerated filer  
þ
(Do not check if a smaller reporting company)

    Smaller Reporting Company
o
 o þ




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##### Table of Contents



BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
 Index to Form 10-Q
 Page:PART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Consolidated Balance Sheets
March 31, 2008, December 31, 2007 and March 31, 2007
    
    
    4Condensed Consolidated Statements of Income
Three months ended March 31, 2008 and 2007
    
    
    5Condensed Consolidated Statements of Cash Flows
Three months ended March 31, 2008 and 2007
    
    
    6Notes to Condensed Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis
of Financial Condition and Results of Operations
    
    
    15Forward Looking Statements and Risk Factors
    
    
    15Company Overview
    
    
    15Risk Factors
    
    
    18Economic Conditions and Geographic Concentrations
    
    
    18Changes in Interest rates could reduce the Companys Net Interest Income and Earnings
    
    
    18Lending Risks Associated with Commercial Real Estate and Construction Activities
    
    
    19Adequacy of the Allowance for Loan and Lease Losses
    
    
    19Potential Volatility of Deposits
    
    
    19Dividends
    
    
    19Changes in Accounting Policies or Accounting Standards, and Changes in How Accounting
Standards are interpreted or applied, Could Materially affect how the
Company Reports its Financial Results and Condition
    
    
    20Government Regulation and Legislation
    
    
    20Certain Ownership Restrictions under California and Federal Law
    
    
    20Negative Publicity could Damage our Reputation
    
    
    21Environmental Risks
    
    
    21Shares Eligible for Future Sale
    
    
    21Technology and Computer Systems
    
    
    22Company Stock Price may be volatile due to other factors
    
    
    22Executive Overview
    
    
    23Sources of Income
    
    
    23Profitability Ratios
    
    
    24Financial Highlights  Results of Operations
    
    
    24Net Interest Income and Net Interest Margin
    
    
    24Liquidity
    
    
    25Capital Management
    
    
    25Short and Long term borrowings
    
    
    26Allowance for loan and lease losses
    
    
    26Factors that may affect future results
    
    
    27Critical accounting policies
    
    
    28Average balances, Interest Income/Expense and yields/rates paid
    
    
    30Analysis of changes in net interest income and interest expense
    
    
    31Noninterest Income
    
    
    32Noninterest Expense
    
    
    32Income taxes
    
    
    33Asset quality
    
    
    34Allowance for loan and lease losses (ALLL)
    
    
    35
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Page:Securities portfolio
    
    
    37Item 3. Quantitative and Qualitative Disclosure about Market Risk
    
    
    38Item 4. Controls and Procedures
    
    
    40PART II. OTHER INFORMATIONItem 1. Legal proceedings
    
    
    42Item 1a. Risk Factors
    
    
    42Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    42Item 3. Defaults Upon Senior Securities
    
    
    42Item 4. Submission of Matters to a Vote of Security Holders
    
    
    42Item 5. Other Information
    
    
    42Item 6. Exhibits
    
    
    42SIGNATURES
    
    
    42EXHIBITSEXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32
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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
 
 Condensed Consolidated Balance Sheets
(Unaudited)
 The following condensed balance sheet as of December 31, 2007, which has been derived from audited
financial statements audited by Moss Adams, LLP, independent public accountants, as indicated in
their report not included herein, and the unaudited condensed financial statements have been
prepared pursuant to the rules and regulations of the Securities and Exchange Commission.
 Dollars in thousands
    
    March 31, 2008
    
    
    Dec. 31,2007
    
    
    March 31,2007ASSETSCash and due from banks
    
    $
    12,737
    
    
    $
    13,839
    
    
    $
    12,597Federal funds sold and securities purchased under agreements to
resell
    
    
    25,995
    
    
    
    8,395
    
    
    
    21,195Cash and cash equivalents
    
    
    38,732
    
    
    
    22,234
    
    
    
    33,792Securities available-for-sale (including pledged collateral of
$57,274 at March 31, 2008, $61,329 at December 31, 2007 and $68,261
at March 31, 2007)
    
    
    62,090
    
    
    
    67,906
    
    
    
    93,769Securities held-to-maturity, at cost (estimated fair value of $10,646
at March 31, 2008, $10,632 at December 31, 2007
and $10,693 at March 31, 2007)
    
    
    10,421
    
    
    
    10,559
    
    
    
    10,673Loans, net of the allowance for loan losses of $5,815 at March 31,
2008, $8,233 at December 31, 2007 and $4,933 at March
31, 2007
    
    
    506,374
    
    
    
    486,283
    
    
    
    411,357Bank premises and equipment, net
    
    
    11,370
    
    
    
    10,964
    
    
    
    9,992Other assets
    
    
    22,248
    
    
    
    20,381
    
    
    
    18,513TOTAL ASSETS
    
    $
    651,235
    
    
    $
    618,327
    
    
    $
    578,096LIABILITIES AND STOCKHOLDERS EQUITYDemand  noninterest bearing
    
    $
    71,722
    
    
    $
    75,718
    
    
    $
    70,035Demand  interest bearing
    
    
    140,624
    
    
    
    142,821
    
    
    
    112,550Savings accounts
    
    
    42,946
    
    
    
    41,376
    
    
    
    41,537Certificates of deposit
    
    
    229,006
    
    
    
    213,716
    
    
    
    211,422Total deposits
    
    
    484,298
    
    
    
    473,631
    
    
    
    435,544Securities sold under agreements to repurchase
    
    
    12,455
    
    
    
    15,513
    
    
    
    35,053Federal Home Loan Bank borrowings
    
    
    85,000
    
    
    
    60,000
    
    
    
    40,000Other liabilities
    
    
    7,633
    
    
    
    7,554
    
    
    
    6,646Junior subordinated debt payable to unconsolidated
subsidiary grantor trust
    
    
    15,465
    
    
    
    15,465
    
    
    
    15,465Total Liabilities
    
    
    604,851
    
    
    
    572,163
    
    
    
    532,708Commitments and contingenciesStockholders Equity:Preferred stock, no par value, 2,000,000 authorized
no shares issued and outstanding in 2008 and 2007
    
    
    
    
    
    
    
    
    
    
    Common stock , no par value, 50,000,000 shares
authorized; 8,707,745 shares issued and outstanding
at March 31, 2008, 8,757,445 at December 31, 2007
and 8,907,680 at March 31, 2007
    
    
    9,550
    
    
    
    9,996
    
    
    
    11,940Retained earnings
    
    
    37,135
    
    
    
    36,605
    
    
    
    34,110Accumulated other comprehensive loss, net of tax
    
    
    (301
    )
    
    
    (437
    )
    
    
    (662
    )Total stockholders equity
    
    
    46,384
    
    
    
    46,164
    
    
    
    45,388TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    651,235
    
    
    $
    618,327
    
    
    $
    578,096
 See accompanying notes to condensed consolidated financial statements.
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
 
 Condensed Consolidated Statements of Income (Unaudited)  Three months ended March 31, 2008 and 2007
 Three Months EndedDollars in thousands, except for per share data
    
    March 31, 2008
    
    
    March 31, 2007Interest income:Interest and fees on loans
    
    $
    9,131
    
    
    $
    8,464Interest on tax-exempt securities
    
    
    274
    
    
    
    278Interest on U.S. government securities
    
    
    481
    
    
    
    832Interest on federal funds sold and
securities purchased under agreements to resell
    
    
    58
    
    
    
    200Interest on other securities
    
    
    22
    
    
    
    36Total interest income
    
    
    9,966
    
    
    
    9,810Interest expense:Interest on demand deposits
    
    
    750
    
    
    
    557Interest on savings deposits
    
    
    290
    
    
    
    171Interest on certificates of deposit
    
    
    2,376
    
    
    
    2,605Securities sold under repurchase agreements
    
    
    84
    
    
    
    342Interest on FHLB and other borrowings
    
    
    731
    
    
    
    539Interest on junior subordinated debt payable to unconsolidated
subsidiary grantor trust
    
    
    315
    
    
    
    269Total interest expense
    
    
    4,546
    
    
    
    4,483Net interest income
    
    
    5,420
    
    
    
    5,327Provision for loan and lease losses
    
    
    600
    
    
    
    6Net interest income after provision for loan and lease losses
    
    
    4,820
    
    
    
    5,321Noninterest income:Service charges on deposit accounts
    
    
    62
    
    
    
    69Payroll and benefit processing fees
    
    
    129
    
    
    
    108Earnings on cash surrender value -
Bank owned life insurance
    
    
    83
    
    
    
    95Net gain on sale of securities available-for-sale
    
    
    242
    
    
    
    46Net loss on sale of derivative swap transaction
    
    
    (225
    )
    
    
    0Merchant credit card service income, net
    
    
    83
    
    
    
    92Mortgage brokerage fee income
    
    
    10
    
    
    
    6Other income
    
    
    181
    
    
    
    82Total noninterest income
    
    
    565
    
    
    
    498Noninterest expense:Salaries and related benefits
    
    
    1,949
    
    
    
    2,097Occupancy and equipment expense
    
    
    644
    
    
    
    458FDIC insurance premium
    
    
    58
    
    
    
    13Data processing fees
    
    
    78
    
    
    
    55Professional service fees
    
    
    118
    
    
    
    195Payroll processing fees
    
    
    33
    
    
    
    31Deferred compensation expense
    
    
    111
    
    
    
    97Stationery and supplies
    
    
    62
    
    
    
    61Postage
    
    
    34
    
    
    
    33Directors expense
    
    
    48
    
    
    
    45Other expenses
    
    
    430
    
    
    
    403Total noninterest expense
    
    
    3,565
    
    
    
    3,488Income before provision for income taxes
    
    
    1,820
    
    
    
    2,331Provision for income taxes
    
    
    591
    
    
    
    844Net income
    
    $
    1,229
    
    
    $
    1,487Basic earnings per share
    
    $
    0.14
    
    
    $
    0.17Weighted average shares  basic
    
    
    8,719
    
    
    
    8,864Diluted earnings per share
    
    $
    0.14
    
    
    $
    0.17Weighted average shares  diluted
    
    
    8,748
    
    
    
    8,976Cash dividends per share
    
    $
    0.08
    
    
    $
    0.08
 See accompanying notes to condensed consolidated financial statements.
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
 
 Condensed Consolidated Statements of Cash Flows (Unaudited)  Three months ended March 31, 2008 and 2007
 Dollars in thousands
    
    March 31, 2008
    
    
    March 31, 2007Cash flows from operating activities:Net income
    
    $
    1,229
    
    
    $
    1,487Adjustments to reconcile net income to net
cash provided by operating activities:Provision for loan and lease losses
    
    
    600
    
    
    
    6Provision for depreciation and amortization
    
    
    302
    
    
    
    207Compensation expense associated with stock options
    
    
    28
    
    
    
    36Tax benefits from the exercise of stock options
    
    
    0
    
    
    
    (118
    )(Gain) Loss on sale of securities available-for-sale
    
    
    (242
    )
    
    
    (46
    )Amortization
of investment premiums and accretion of discounts, net
    
    
    7
    
    
    
    8Loss on sale of derivative swap transaction
    
    
    225
    
    
    
    0Gain on sale of fixed assets
    
    
    (6
    )
    
    
    (2
    )Deferred income taxes
    
    
    (698
    )
    
    
    349(Increase) in cash surrender value of bank owned life policies
    
    
    (83
    )
    
    
    (95
    )Effect of changes in:Other assets
    
    
    (1,308
    )
    
    
    567Deferred compensation
    
    
    111
    
    
    
    97Deferred loan fees
    
    
    (53
    )
    
    
    (31
    )Other liabilities
    
    
    92
    
    
    
    (791
    )Net cash from operating activities
    
    
    204
    
    
    
    1,674Cash flows from investing activities:Proceeds from maturities of available-for-sale securities
    
    
    765
    
    
    
    1,627Proceeds from sales of available-for-sale securities
    
    
    16,682
    
    
    
    20,372Proceeds from maturities of held-to-maturity securities
    
    
    138
    
    
    
    136Purchases of available-for-sale securities
    
    
    (11,383
    )
    
    
    (19,102
    )Loan origination, net of principal repayments
    
    
    (20,638
    )
    
    
    (2,342
    )Purchases of Bank premises and equipment, net
    
    
    (829
    )
    
    
    (1,608
    )Proceeds on sale of fixed assets
    
    
    127
    
    
    
    7Net cash from investing activities
    
    
    (15,140
    )
    
    
    (910
    )Cash flows from financing activities:Net (decrease) in demand and savings accounts
    
    
    (4,623
    )
    
    
    (2,843
    )Net increase (decrease) in certificates of deposit
    
    
    15,290
    
    
    
    (1,020
    )Net (decrease) in securities sold under agreement to repurchase
    
    
    (3,058
    )
    
    
    (2,064
    )Proceeds from Federal Home Loan Bank advances
    
    
    80,000
    
    
    
    0Repayments of Federal Home Loan Bank advances
    
    
    (55,000
    )
    
    
    (0
    )Cash dividends paid on common stock
    
    
    (700
    )
    
    
    (713
    )Proceeds from stock options exercised
    
    
    29
    
    
    
    284Common Stock repurchase
    
    
    (504
    )
    
    
    0Tax benefits from the exercise of stock options
    
    
    0
    
    
    
    118Net cash from financing activities
    
    
    31,434
    
    
    
    (6,238
    )Net increase (decrease) in cash and cash equivalents
    
    
    16,498
    
    
    
    (5,474
    )Cash and cash equivalents, beginning of period
    
    
    22,234
    
    
    
    39,266Cash and cash equivalents, end of period
    
    $
    38,732
    
    
    $
    33,792Supplemental disclosures:Cash paid during the period for:Income taxes
    
    $
    250
    
    
    $
    350Interest
    
    
    4,445
    
    
    
    4,639
 See accompanying notes to condensed consolidated financial statements.
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
 
 Notes to Condensed Consolidated Financial Statements (Unaudited)
 1. Consolidation and Basis of Presentation
     2. Recent Accounting pronouncements
 On September 15, 2006, the FASB issued FAS 157, Fair Value Measurements ,
 On February 15, 2007 the FASB issued FAS 159, The Fair Value Option for Financial Assets and
Financial Liabilities, Including an amendment of FASB Statement 115.
 In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging
Activities  an Amendment of FASB Statement No. 133. Accounting for Derivative Instruments and Hedging Activities,
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES  Notes to Condensed Consolidated Financial Statements (Continued) (Unaudited)
 3. Earnings per Share
  Three Months Ended(Dollars in thousands, except per share data)
    
    March 31, 2008
    
    
    March 31, 2007Basic EPS calculation:Numerator (net income)
    
    $
    1,229
    
    
    $
    1,487Denominator (average common
shares outstanding)
    
    
    8,719
    
    
    
    8,864Basic EPS
    
    $
    0.14
    
    
    $
    0.17Diluted EPS calculation:Numerator (net income)
    
    $
    1,229
    
    
    $
    1,487Denominator:Average common shares outstanding
    
    
    8,719
    
    
    
    8,864Dilutive effect of stock options
    
    
    29
    
    
    
    112Adjusted weighted average common shares outstanding
    
    
    8,748
    
    
    
    8,976Diluted EPS
    
    $
    0.14
    
    
    $
    0.17Anti- dilutive shares excluded
    
    
    145
    
    
    
    108
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements (Continued)
(Unaudited)
 4. Stock Option Plans
     5. Comprehensive Income
  Three Months Ended(Dollars in thousands)
    
    March 31, 2008
    
    
    March 31, 2007Net income as reported
    
    $
    1,229
    
    
    $
    1,487Other comprehensive income,
net of tax:Unrealized holding gain on
securities available
for sale, net of tax
    
    
    349
    
    
    
    164Reclassification adjustment for
gain on available for sale
securities, net of tax
    
    
    (142
    )
    
    
    (27
    )Unrealized gains arising during
the period on
derivative transactions, net
    
    
    28
    
    
    
    157Total other comprehensive (loss) income
    
    
    235
    
    
    
    294Total comprehensive income
    
    $
    1,464
    
    
    $
    1,781
 6. Junior Subordinated Debt Payable to Unconsolidated Subsidiary Grantor Trust
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements (Continued)
(Unaudited)
    7. Commitments and Contingent Liabilities
 Lease Commitments The Company leases certain facilities at which it conducts its
operations. Future minimum lease commitments under all non-cancelable operating leases as of
March 31, 2008 are below:
 (Dollars in thousands)2008
    
    $
    4532009
    
    $
    5582010
    
    $
    5242011
    
    $
    4542012
    
    $
    279Thereafter
    
    $
    761Total
    
    $
    3,029Minimum rental due in the future
Under noncancellable subleases
    
    $
    4
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements (Continued)
(Unaudited)
 Legal Proceedings The Company is involved in various pending and threatened legal actions
arising in the ordinary course of business. The Company maintains reserves for losses from
legal actions, which are both probable and estimable. In the opinion of management, the
disposition of claims, currently pending will not have a material adverse affect on the
Companys financial position or results of operations.FHLB Advances Borrowings are advances from the Federal Home Loan Bank of San Francisco
(FHLB) totaling $85,000,000 as March 31, 2008, $60,000,000 at December 31, 2007 and
$40,000,000 as of March 31, 2007. The FHLB advances bear fixed and floating rates of interest
ranging from 2.82% to 5.23%. Interest is payable either monthly or quarterly.
 The following table illustrates borrowings outstanding at the end of the period:
 Amount
    
    
    Interest Rate

    
    Maturity$
    15,000,000
    
    
    
    3.20
    %
    
    
    01/26/2009$
    15,000,000
    
    
    
    2.82
    %
    
    
    01/22/2010$
    15,000,000
    
    
    
    2.89
    %
    
    
    01/22/2009$
    35,000,000
    
    
    
    3.97
    %
    
    
    11/23/2009$
    5,000,000
    
    
    
    5.23
    %
    
    
    04/28/2008$
    85,000,000
 These borrowings are secured by an investment in FHLB stock and certain real estate mortgage
loans which have been specifically pledged to the FHLB pursuant to their collateral
requirements. Based upon the level of FHLB advances, the Bank was required to hold a minimum
investment of $4,267,400 in FHLB stock and pledge collateral of $74,533,568 in real estate
mortgage loans as of March 31, 2008. At March 31, 2008, the Bank had available borrowing
lines at the FHLB of $25,201,255 and additional federal fund borrowing lines at two
correspondent banks totaling $25,000,000.Off-Balance Sheet Financial Instruments- In the ordinary course of business, the Company
enters various types of transactions, which involve financial instruments with
off-balance sheet risk. These instruments include commitments to extend credit and
standby letter of credits, which are not reflected in the accompanying consolidated
balance sheets. These transactions may involve, to varying degrees, credit and interest
rate risk more than the amount, if any recognized in the consolidated balance sheets.
Commitments to extend credit are agreements to lend to customers.These commitments have specified interest rates and generally have fixed expiration
dates but may be terminated by the Company if certain conditions of the contract are
violated. Although currently subject to draw down, many of the commitments do not
necessarily represent future cash requirements. Collateral held relating to these
commitments varies, but generally includes real estate, securities and cash. Standby letters
of credit are conditional commitments issued by the Bank to guarantee the performance of a
customer to a third party. Credit risk arises in these transactions from the possibility that
a customer may not be able to repay the Bank upon default of performance. Collateral held
for standby letters of credit is based on an individual evaluation of each customers
creditworthiness, but may include cash and securities. Commitments to extend credit and
standby letters of credit bear similar credit risk characteristics as outstanding loans.
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements (Continued)
(Unaudited)
 8. Accounting for Income Tax Uncertainties (FIN 48)
 In June 2006, the FASB issued Interpretation 48, Accounting for Uncertainty in Income
Taxes (FIN 48), an interpretation of FASB Statement No. 109, Accounting for Income
Taxes. FIN 48 clarifies the accounting and reporting for income taxes where interpretation
of the law is uncertain. FIN 48 prescribes a comprehensive model for the financial statement
recognition, measurement, presentation and disclosure of income tax uncertainties with
respect to positions taken or expected to be taken in income tax returns. FIN 48 is
effective for fiscal years beginning after December 15, 2006. The Company adopted this
Statement on January 1, 2007.  As a result of the implementation of Interpretation 48, it
was not necessary for the Company to recognize any increase in the liability for
unrecognized tax benefits.The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction
and California state jurisdiction
      
The Company recognizes interest and penalties accrued related to unrecognized tax benefits
in income tax expense.
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements (Continued)
(Unaudited)
 9. Fair Value Measurement
   Fair Value Measurementsat March 31, 2008, UsingQuoted Prices in
    
    Significant Other
    
    SignificantActive Markets for
    
    Observable
    
    Unobservable(Dollars in thousands)
    
    Fair Value
    
    Identical Assets
    
    Inputs
    
    InputsDescription
    
    March 31, 2008
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Available-for-sale securities
    
    $
    62,090
    
    
    $
    62,090To Total assets measured at fair value
    
    $
    62,090
    
    
    $
    62,090
    
    
    $
    
    
    
    $
    Derivative Liabilities
    
    $
    200
    
    
    
    
    
    
    
    200Total liabilities measured at fair value
    
    $
    200
    
    
    $
    
    
    
    $
    200
    
    
    $
    
  Securities available-for-sale
 Derivatives 
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BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements (Continued)
(Unaudited)
 Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis
  (Dollars in thousands)March 31, 2008
    
    Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Impaired Loans
    
    $
    15,958
    
    
    $
    
    
    
    $
    
    
    
    $
    15,958Total assets at fair value
    
    $
    15,958
    
    
    $
    
    
    
    $
    
    
    
    $
    15,958Total liabilities at fair value
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
 Impaired loans  Accounting by Creditors for Impairment of a Loan, (
  The fair value measurements recorded during the period
  14




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##### Table of Contents



ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
 
 Forward Looking Statements and Risk Factors
 An investment in the Company has risk. The discussion below and elsewhere in this Report and in
other documents the Company files with the SEC incorporates various risk factors that could cause
the Companys financial results and condition to vary significantly from period to period.
Information in the accompanying financial statements contains certain forward-looking statements,
which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. We caution the investor that such statements are subject to risks and uncertainties
that could cause actual results to differ materially from those stated. These risks and
uncertainties include the Companys ability to maintain or expand its market share and net interest
margins, or to implement its marketing and growth strategies. Further, actual results may be
affected by the Companys ability to compete on price and other factors with other financial
institutions; customer acceptance of new products and services; and general trends in the banking
and the regulatory environment, as they relate to the Companys cost of funds and return on assets.
The reader is advised that this list of risks is not exhaustive and should not be construed as any
prediction by the Company as to which risks would cause actual results to differ materially from
those indicated by the forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements.
 For additional information concerning risks and uncertainties related to the Company and its
operations please refer to the Companys Annual Report on Form 10-K for the year ended December 31,
2007 under the heading Risk factors that may affect results. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to revise or publicly release the results of any revision to these
forward-looking statements to reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
 The following sections discuss significant changes and trends in the financial condition, capital
resources and liquidity of the Company from December 31, 2007 to March 31, 2008. Also discussed are
significant trends and changes in the Companys results of operations for the three months ended
March 31, 2008, compared to the same period in 2007. The consolidated financial statements and
related notes appearing elsewhere in this report are condensed and unaudited. The following
discussion and analysis is intended to provide greater detail of the Companys financial condition
and results.
 
 Company Overview
  Bank of Choice bank of choice
  15




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 www.bankofcommerceholdings.com www.reddingbankofcommerce.com www.rosevillebankofcommerce.com www.sutterbankofcommerce.com www.bankofcommercemortgage.com www.sec.gov
       16




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
       17




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Risk Factors
 
 Economic Conditions and Geographic Concentration
   
 Changes in Interest Rates could reduce the Companys Net Interest Income and Earnings
     18




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Lending Risks Associated with Commercial Real Estate and Construction Activities
  
 Adequacy of Allowance for Loan and Lease Losses (ALLL)
   
 Potential Volatility of Deposits
   
 Dividends
 
 19




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Changes in Accounting Policies or Accounting Standards, and Changes in How Accounting Standards are
interpreted or applied, Could Materially Affect How the Company Reports its Financial Results and
Condition
 Critical
Accounting Policies).
  
 Government Regulation and Legislation
     
 Certain Ownership Restrictions under California and Federal Law
  20




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
   
 Negative Publicity could Damage our Reputation
  
 Environmental Risks
  
 Shares Eligible for Future Sale
  21




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 
 Technology and Computer Systems
  
 Company Stock Price may be volatile due to Other Factors
  
    
    General business and economic conditions;
    
    Recommendations by securities analysts;
    
    New technologies introduced or services offered by our competitors;
    
    News reports relating to trends, concerns and other issues in the financial services
industry;
    
    Natural disasters; and
    
    Geopolitical conditions, such as acts or threats of terrorism or military conflicts.
 
 22




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Executive Overview
 high-quality
     
 Sources of Income
   23




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Profitability Ratios March 31, 2008
    
    March 31, 2007Profitability RatiosNet Interest Income to Average Assets
    
    
    3.49
    %
    
    
    3.77
    %Net Income to Average Equity
    
    
    10.54
    %
    
    
    13.37
    %Efficiency Ratio1
    
    
    59.57
    %
    
    
    59.88
    %Capital RatiosLeverage Ratio
    
    
    9.15
    %
    
    
    9.75
    %Risk Based Capital
    
    $
    63,081,047
    
    
    $
    56,050,000Tier 1 Capital
    
    
    9.90
    %
    
    
    11.23
    %Total Capital
    
    
    10.98
    %
    
    
    12.29
    %Per Common Share DataDividend Payout Ratio
    
    
    56.92
    %
    
    
    47.94
    %Book Value
    
    $
    5.33
    
    
    $
    5.10Market Price
    
    $
    8.00
    
    
    $
    11.75High
    
    $
    8.59
    
    
    $
    12.29Low
    
    $
    6.00
    
    
    $
    10.98
 
 Financial Highlights  Results of Operations
  
 Net Interest Income and Net Interest Margin
    
 1
    
    The efficiency ratio is noninterest expense divided by
total revenue (net interest income and noninterest income) 24




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Liquidity
     
 Capital Management
     25




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 Well
    
    MinimumActual
    
    Capitalized
    
    CapitalAs of March 31, 2008
    
    Capital
    
    Ratio
    
    Requirement
    
    RequirementThe Company Leverage
    
    $
    56,050,000
    
    
    
    8.94
    %
    
    
    n/a
    
    
    
    4.0
    %Tier 1 Risk-Based
    
    
    56,050,000
    
    
    
    9.75
    %
    
    
    n/a
    
    
    
    4.0
    %Total Risk-Based
    
    
    62,247,791
    
    
    
    10.83
    %
    
    
    n/a
    
    
    
    8.0
    %Bank of
Commerce Redding
Leverage
    
    $
    56,883,257
    
    
    
    9.15
    %
    
    
    5.0
    %
    
    
    4.0
    %Tier 1 Risk-Based
    
    
    56,883,257
    
    
    
    9.90
    %
    
    
    6.0
    %
    
    
    4.0
    %Total Risk-Based
    
    
    63,081,047
    
    
    
    10.98
    %
    
    
    10.00
    %
    
    
    8.0
    %
 
 Short and Long Term Borrowings
   
 Allowance for Loan and Lease Losses
  most significant
   26




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Factors that may affect future results
       27




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Critical Accounting Policies
   Preparation of financial statements
  Use of estimates
  Accounting Principles Generally Accepted in the United States of America
   Allowance for Loan and Lease Losses (ALLL)
 most significant Accounting for
Contingencies Accounting by Creditors for Impairment of a Loan
   28




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
   Revenue recognition
  Stock-based Compensation
  Income Taxes
  29




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
  
 Table 1.

    Average Balances, Interest Income/Expense and Yields/Rates Paid
 (Unaudited, Dollars in thousands)
 Three Months Ended
    
    
    Three Months EndedMarch 31, 2008
    
    
    March 31, 2007Average
    
    
    
    
    
    
    Yield/
    
    
    Average
    
    
    
    
    
    
    Yield/Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    RateEarning AssetsPortfolio Loans2
    
    $
    504,091
    
    
    $
    9,131
    
    
    
    7.25
    %
    
    $
    407,758
    
    
    $
    8,464
    
    
    
    8.30
    %Tax-exempt Securities3
    
    
    27,901
    
    
    
    274
    
    
    
    3.93
    %
    
    
    29,712
    
    
    
    278
    
    
    
    3.74
    %US Government Securities
    
    
    15,272
    
    
    
    142
    
    
    
    3.72
    %
    
    
    33,722
    
    
    
    356
    
    
    
    4.22
    %Mortgage backed Securities
    
    
    29,055
    
    
    
    339
    
    
    
    4.67
    %
    
    
    41,919
    
    
    
    476
    
    
    
    4.54
    %Federal Funds Sold
    
    
    8,014
    
    
    
    58
    
    
    
    2.89
    %
    
    
    15,540
    
    
    
    200
    
    
    
    5.15
    %Other Securities
    
    
    2,000
    
    
    
    22
    
    
    
    4.40
    %
    
    
    2,302
    
    
    
    36
    
    
    
    6.26
    %Average Earning Assets
    
    $
    586,333
    
    
    $
    9,966
    
    
    
    6.80
    %
    
    $
    530,953
    
    
    $
    9,810
    
    
    
    7.39
    %Cash & Due From Banks
    
    $
    12,708
    
    
    
    
    
    
    
    
    
    
    $
    12,939Bank Premises
    
    
    11,303
    
    
    
    
    
    
    
    
    
    
    
    9,288Allowance for Loan Losses
    
    
    ( 8,441
    )
    
    
    
    
    
    
    
    
    
    
    ( 4,892
    )Other Assets
    
    
    20,116
    
    
    
    
    
    
    
    
    
    
    
    17,226Average Total Assets
    
    $
    622,019
    
    
    
    
    
    
    
    
    
    
    $
    565,514Interest Bearing LiabilitiesDemand Interest Bearing
    
    $
    141,709
    
    
    $
    750
    
    
    
    2.12
    %
    
    $
    112,910
    
    
    $
    557
    
    
    
    1.97
    %Savings Deposits
    
    
    41,195
    
    
    
    290
    
    
    
    2.82
    %
    
    
    28,864
    
    
    
    171
    
    
    
    2.37
    %Certificates of Deposit
    
    
    216,051
    
    
    
    2,376
    
    
    
    4.40
    %
    
    
    214,094
    
    
    
    2,605
    
    
    
    4.87
    %Repurchase Agreements
    
    
    13,052
    
    
    
    84
    
    
    
    2.57
    %
    
    
    34,860
    
    
    
    342
    
    
    
    3.92
    %FHLB Borrowings
    
    
    80,569
    
    
    
    731
    
    
    
    3.63
    %
    
    
    40,000
    
    
    
    539
    
    
    
    5.39
    %Trust Preferred Borrowings
    
    
    15,000
    
    
    
    315
    
    
    
    8.40
    %
    
    
    15,000
    
    
    
    269
    
    
    
    7.17
    %507,576
    
    
    $
    4,546
    
    
    
    3.58
    %
    
    
    445,728
    
    
    $
    4,483
    
    
    
    4.02
    %Noninterest bearing demand
    
    
    66,825
    
    
    
    
    
    
    
    
    
    
    
    73,977Other Liabilities
    
    
    995
    
    
    
    
    
    
    
    
    
    
    
    1,333Stockholders Equity
    
    
    46,623
    
    
    
    
    
    
    
    
    
    
    
    44,476Average
Liabilities and Stockholders Equity
    
    $
    622,019
    
    
    
    
    
    
    
    
    
    
    $
    565,514Net Interest Income and Net Interest Margin
    
    
    
    
    
    $
    5,420
    
    
    
    3.70
    %
    
    
    
    
    
    $
    5,327
    
    
    
    4.01
    %
 
 2
    
    Average non-performing loans of $14.9 million are
included3
    
    The yield on tax-exempt securities has not been
adjusted to a tax-equivalent yield basis. 30




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
  
 Table 2.

    Analysis of Changes in Net Interest Income and Interest Expense
 March 31, 2008
    
    
    over
    
    
    March 31, 2007(Dollars in thousands)
    
    Volume
    
    
    Rate
    
    
    TotalIncrease (Decrease) In
Interest IncomePortfolio Loans
    
    $
    1,745
    
    
    $
    (1,078
    )
    
    $
    667Tax-exempt Securities
    
    
    (18
    )
    
    
    14
    
    
    
    (4
    )US Government Securities
    
    
    (172
    )
    
    
    (42
    )
    
    
    (214
    )Mortgage back Securities
    
    
    (150
    )
    
    
    13
    
    
    
    (137
    )Federal Funds Sold
    
    
    (54
    )
    
    
    (88
    )
    
    
    (142
    )Other Securities
    
    
    (3
    )
    
    
    (11
    )
    
    
    (14
    )Total Increase
(Decrease)
    
    $
    1,348
    
    
    $
    (1,192
    )
    
    $
    156Increase (Decrease) In
Interest ExpenseInterest Bearing Demand
    
    $
    152
    
    
    $
    41
    
    
    $
    193Savings Deposits
    
    
    87
    
    
    
    32
    
    
    
    119Certificates of Deposit
    
    
    22
    
    
    
    (251
    )
    
    
    (229
    )Repurchase Agreements
    
    
    (140
    )
    
    
    (118
    )
    
    
    (258
    )FHLB Borrowings
    
    
    368
    
    
    
    (176
    )
    
    
    192Trust Preferred Borrowings
    
    
    0
    
    
    
    46
    
    
    
    46Total Increase
(Decrease)
    
    $
    489
    
    
    $
    (426
    )
    
    $
    63Net Increase
    
    $
    859
    
    
    $
    (766
    )
    
    $
    93
    31




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 
 Noninterest Income
  Three Months Ended(Dollars in thousands)
    
    March 31, 2008
    
    
    March 31, 2007Noninterest incomeService charges on deposit accounts
    
    $
    62
    
    
    $
    69Payroll and benefit processing fees
    
    
    129
    
    
    
    108Earnings on cash surrender value -
Bank owned life insurance
    
    
    83
    
    
    
    95Net gain on sale of securities available-for-sale
    
    
    242
    
    
    
    46Net loss on sale of derivative swap
    
    
    (225
    )
    
    
    0Merchant credit card service income, net
    
    
    83
    
    
    
    92Mortgage brokerage fee income
    
    
    10
    
    
    
    6Other income
    
    
    181
    
    
    
    82Total noninterest income
    
    $
    565
    
    
    $
    498
  
 Noninterest Expense
 Three Months Ended(Dollars in thousands)
    
    March 31, 2008
    
    
    March 31, 2007Noninterest expenseSalaries and related benefits
    
    $
    1,949
    
    
    $
    2,097Occupancy and equipment expense
    
    
    644
    
    
    
    458FDIC insurance premium
    
    
    58
    
    
    
    13Data processing fees
    
    
    78
    
    
    
    55Professional service fees
    
    
    118
    
    
    
    195Payroll processing fees
    
    
    33
    
    
    
    31Deferred compensation expense
    
    
    111
    
    
    
    97Stationery and supplies
    
    
    62
    
    
    
    61Postage
    
    
    34
    
    
    
    33Directors expense
    
    
    48
    
    
    
    45Other expenses
    
    
    430
    
    
    
    403Total noninterest expense
    
    $
    3,565
    
    
    $
    3,488
  32




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 
 Income Taxes
    Three Months Ended(Dollars in thousands)
    
    March 31, 2008
    
    March 31, 2007Income TaxesTax provision
    
    $
    591
    
    
    $
    844Effective tax rate
    
    
    32.5
    %
    
    
    36.2
    %
  Accounting for Uncertainty in Income Taxes
   33




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
  March 31, 2008Deferred Tax AssetsState Franchise taxes
    
    
    186,193Deferred compensation
    
    
    1,962,157Loan loss reserves
    
    
    3,585,204Net unrealized losses on securities available-for-sale
    
    
    124,016Other
    
    
    398,793Total Deferred Tax Assets
    
    
    6,256,363Deferred Tax LiabilitiesDepreciation
    
    
    (180,882
    )Deferred loan origination costs
    
    
    (452,281
    )Deferred state taxes
    
    
    (413,227
    )Other
    
    
    (0
    )Total Deferred Tax Liabilities
    
    
    (1,046,390
    )Total Net Deferred Tax Asset
    
    $
    5,209,973
 
 Asset Quality
   (Dollars in thousands)
    
    March 31, 2008
    
    
    December 31, 2007Portfolio LoansCommercial and financial loans
    
    $
    170,570
    
    
    $
    173,704Real estate-construction loans
    
    
    103,217
    
    
    
    106,977Real estate-commercial
    
    
    180,013
    
    
    
    175,013Real estate- mortgage
    
    
    21,867
    
    
    
    10,787Real estate- other
    
    
    34,925
    
    
    
    26.818Installment
    
    
    196
    
    
    
    226Other loans
    
    
    1,581
    
    
    
    1,223Less:Net deferred loan fees
    
    
    (180
    )
    
    
    (232
    )Allowance for loan losses
    
    
    (5,815
    )
    
    
    (8,233
    )Total net loans
    
    $
    506,374
    
    
    $
    486,283
  34




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
   (Dollars in thousands)
    
    March 31, 2008
    
    
    December 31, 2007Non performing assetsNonaccrual loans
    
    $
    15,958
    
    
    $
    12,40990 days past due and still accruing
interest
    
    
    0
    
    
    
    0Total nonaccrual loans
    
    
    15,958
    
    
    
    12,409Other Real Estate Owned
    
    
    0
    
    
    
    0Total non performing assets
    
    $
    15,958
    
    
    $
    12,409
 
 Allowance for Loan and Lease Losses (ALLL)
     35




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
   (Dollars in thousands)
    
    March 31, 2008
    
    
    March 31, 2007Allowance for Loan and Lease LossesBeginning balance for Loan and Lease Losses
    
    $
    8,233
    
    
    $
    4,904Provision for Loan and Lease Losses
    
    
    600
    
    
    
    6Charge offs:Commercial
    
    
    (0
    )
    
    
    (0
    )Real Estate
    
    
    (3,020
    )
    
    
    (0
    )Other
    
    
    (0
    )
    
    
    (0
    )Total Charge offs
    
    
    (3,020
    )
    
    
    (0
    )Recoveries:Commercial
    
    
    0
    
    
    
    19Real Estate
    
    
    0
    
    
    
    0Other
    
    
    2
    
    
    
    4Total Recoveries
    
    
    2
    
    
    
    23Ending Balance
    
    $
    5,815
    
    
    $
    4,933ALLL to total loans
    
    
    1.14
    %
    
    
    1.18
    %Net Charge offs to average loans
    
    
    0.60
    %
    
    
    0.00
    %
     36




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 
 Securities Portfolio
       as of March 31, 2008Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    Estimated(Dollars in thousands)
    
    Costs
    
    
    Gains
    
    
    Losses
    
    
    Fair ValueU.S. government & agencies
    
    $
    11,015
    
    
    $
    123
    
    
    $
    (0
    )
    
    $
    11,138Obligations
of state and political subdivisions
    
    
    18,505
    
    
    
    36
    
    
    
    (511
    )
    
    
    18,030Mortgage backed securities
    
    
    30,899
    
    
    
    219
    
    
    
    (171
    )
    
    
    30,947Corporate Bonds
    
    
    2,000
    
    
    
    0
    
    
    
    (25
    )
    
    
    1,975Total
    
    $
    62,419
    
    
    $
    378
    
    
    $
    (707
    )
    
    $
    62,090
 as of December 31, 2008Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    Estimated(Dollars in thousands)
    
    Costs
    
    
    Gains
    
    
    Losses
    
    
    Fair ValueU.S. government & agencies
    
    $
    15,989
    
    
    $
    26
    
    
    $
    (104
    )
    
    $
    15,911Obligations
of state and political subdivisions
    
    
    19,017
    
    
    
    28
    
    
    
    (263
    )
    
    
    18,782Mortgage backed securities
    
    
    31,638
    
    
    
    10
    
    
    
    (354
    )
    
    
    31,294Corporate Bonds
    
    
    2,000
    
    
    
    0
    
    
    
    (81
    )
    
    
    1,919Total
    
    $
    68,644
    
    
    $
    64
    
    
    $
    (802
    )
    
    $
    67,906
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
   
    
    Assets and liabilities may mature or reprice at different times (for example, if assets
reprice faster than liabilities and interest rates fall, earnings will initially decline);
    
    Assets and liabilities may reprice at the same time but by different amounts (for
example, the level of interest rates in the market is falling and the Company may reduce
rates paid on checking and savings deposit accounts by an amount that is less than the
general decline in market rates);
    
    Short-term and long-term market interest rates may change by different amounts (for
example, the shape of the yield curve may affect new loan yields and funding costs
differently); or
    
    The remaining maturities of various assets and liabilities may shorten or lengthen as
interest rates change (for example, if long-term mortgage rates decline sharply,
mortgage-backed securities held in the securities available-for-sale may prepay
significantly earlier than anticipated, which could reduce portfolio income.)
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ITEM 4. CONTROLS AND PROCEDURES
  internal control over financial reporting
 
    
    Pertain the maintenance of records that in reasonable detail accurately and fairly
reflect the transactions and dispositions of the assets of the issuer;
    
    Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with GAAP, and that receipts and
expenditures of the Company are being made only in accordance with authorizations of
management and the Directors of the Company;
    
    Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Companys assets that could have a material effect
on the financial statements.
 key controls key control
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PART II. Other Information
 
 Item 1. Legal proceedings
  
 Item 1a. Risk Factors
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults upon Senior Securities
  
 Item 4. Submission of Matters to a vote of Security Holders
  
 Item 5. Other Information
  
 Item 6A. Exhibits
 (31.1)
    
    Certification of Chief Executive Officer pursuant to Sarbanes-Oxley Act of 2002(31.2)
    
    Certification of Chief Financial Officer pursuant to Sarbanes-Oxley Act of 2002(32)
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to
Sarbanes-Oxley Act of 2002
 Item 6B. Reports on Form 8-K
 st  st
 
 SIGNATURES
  BANK OF COMMERCE HOLDINGS
   
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