Exhibit 99.1

For immediate release:

Bank of Commerce Holdings™ announces Second Quarter 2011 Earnings

REDDING, California, July 29, 2011/ PR Newswire— Patrick J. Moty, President & CEO of Bank of Commerce Holdings (NASDAQ: BOCH), a $868.5 million bank holding company, and parent company of Redding Bank of Commerce™, Roseville Bank of Commerce™

(a division of Redding Bank of Commerce), and Bank of Commerce Mortgage™ today reported net income available to common shareholders of $1.25 million and diluted earnings per share (“EPS”) of $0.07 for the second quarter 2011.

Key Financial Items for the Second Quarter 2011:

	•		Net Income available to common shareholders of $1.25 million reflects a modest decrease over the $1.27 million for the quarter ended June 30, 2010, and a 12.5% decrease over the $1.43 million recorded for the first quarter 2011.
	•		Diluted EPS of $0.07 compares to $0.08 reported for both the same period a year ago and prior quarter ended March 31, 2011.
	•		Loan loss provisions for the second quarter were $2.6 million while net charge-offs were $2.8 million.
	•		Non-performing assets represented 2.49% of total assets in the current period versus 2.53% for the quarter ended March 31, 2011.
	•		Non-maturing core deposits increased $22.9 million or 7.4% from a year ago June 30, 2010.
	•		Mortgage Loans Held for Sale increased $7.1 million or 37.5% to $26.1 million from the first quarter 2011.

“We remain relatively pleased with our Company’s consistently solid financial performance, especially in light of lingering asset quality issues. Our second quarter performance is indicative of our ongoing efforts to aggressively manage the level of sub-performing and non-performing assets while positioning the balance sheet and our Company for continued growth and profitability,” said Patrick J. Moty, President and CEO.

Table 1 below shows summary financial information for the quarters ended June 30, 2011 and 2010, and March 31, 2011.

Table 1

		SUMMARY FINANCIAL INFORMATION
		Quarter ended				Quarter ended								Quarter ended
(Shares and dollars in thousands)		June 30, 2011				June 30, 2010				Change				March 31, 2011				Change
Selective quarterly performance ratios
Return on average assets, annualized			0.65	%			0.70	%			-0.05	%			0.72	%			-0.07	%
Return on average equity, annualized			5.53	%			6.02	%			-0.49	%			6.35	%			-0.82	%
Efficiency ratio for quarter to date			64.68	%			65.25	%			-0.57	%			63.10	%			1.58	%
Share and Per Share figures — Actual
Common shares outstanding at period end			16,991				16,991				—				16,991				—
Weighted average diluted shares			16,991				16,837				154				16,991				—
Income per diluted share		$	0.07			$	0.08			$	(0.01	)		$	0.08			$	(0.01	)
Book value per common share		$	5.23			$	4.93			$	0.30			$	5.11			$	0.12
Tangible book value per common share		$	5.67			$	5.44			$	0.23			$	5.64			$	0.03
Cash dividends declared		$	0.03			$	0.06			$	(0.03	)		$	0.03			$	—
Capital Ratios

		June 30, 2011				June 30, 2010				Change				March 31, 2011				Change
Bank of Commerce Holdings
Tier 1 risk based capital ratio			15.75	%			15.03	%			0.72	%			15.10	%			0.65	%
Total risk based capital ratio			17.00	%			16.28	%			0.72	%			16.36	%			0.64	%
Leverage ratio			12.87	%			13.26	%			-0.39	%			12.56	%			0.31	%
Redding Bank of Commerce
Tier 1 risk based capital ratio			15.76	%			14.21	%			1.55	%			14.79	%			0.97	%
Total risk based capital ratio			17.02	%			15.47	%			1.55	%			16.05	%			0.97	%
Leverage ratio			12.16	%			12.30	%			-0.14	%			11.80	%			0.36	%

As indicated in Table 1 above, the Company continues to remain well capitalized. At June 30, 2011, the Company’s Tier 1 and Total risk based capital ratios measured 15.75% and 17.00% respectively, while the leverage ratio was 12.87% Return on average assets (ROA) and return on average equity (ROE) for the three months ended June 30, 2011, was 0.65% and 5.53%, respectively compared with 0.70% and 6.02% for the three months ended June 30, 2010. The modest decrease in return on assets was driven by lower yields in the loan portfolio associated with the pay off of higher yielding loans, downward rate adjustments on variable rate loans, and the transfer of existing loans to nonaccrual status. Decreased yield in the available-for-sale investment portfolio had a negative impact on ROA as well. The decline in the investment portfolio yields was primarily driven by sales of securities with relatively higher yields. The investment sales activity was tied to the objective of reducing Company’s interest rate risk exposure through shortening the duration of the investment portfolio and paying down short-term Federal Home Loan Bank (FHLB) borrowings. The decrease in ROE for the three months ended June 30, 2011, compared with the same period a year ago, was primarily driven by the lower ROA and the deleveraging of the balance sheet. Specifically, the disproportional increase in average common equity relative to changes in earning assets and interest bearing liabilities combined to decrease ROE.

Balance Sheet Overview

Overall, the net portfolio loan balance did not materially change for the period ended June 30, 2011. The Company’s net loan portfolio was $582.4 million at June 30, 2011, compared with $600.8 million at June 30, 2010, a decrease of $18.4 million, or 3%. Management’s ongoing efforts to manage problem credits are reflected in the activity of its allowance for loan losses (ALL). As such, the Company provided $2.6 million in provisions for loan losses for the three months ended June 30, 2011 compared with $1.6 million for the same period a year ago. The Company’s ALL as a percentage of total portfolio loans were 2.24% and 2.08% as of June 30, 2011, and June 30, 2010, respectively, and 2.26% as of March 31, 2011.

Table 2

		PERIOD END LOANS
		June 30,				% of				June 30,				% of				Change								March 31,				% of
(Dollars in thousands)		2011				Total				2010				Total				Amount				%				2011				Total
Commercial		$	140,610				24	%		$	135,777				22	%		$	4,833				4	%		$	135,928				23	%
Real estate loans
Construction			26,357				4	%			43,266				7	%			(16,909	)			-39	%			31,121				5	%
Commercial (investor)			218,535				37	%			215,681				35	%			2,854				1	%			224,630				37	%
Commercial (owner occupied)			68,327				11	%			71,529				12	%			(3,202	)			-4	%			66,535				11	%
ITIN loan pool			67,675				11	%			73,953				12	%			(6,278	)			-8	%			69,265				11	%
Other mortgage			22,116				4	%			19,864				3	%			2,252				11	%			21,120				4	%
Equity lines			46,850				8	%			47,750				8	%			(900	)			-2	%			47,948				8	%
Consumer			5,271				1	%			5,752				1	%			(481	)			-8	%			6,303				1	%
Other loans			91				—	%			220				—	%			(129	)			-59	%			130				0	%
Gross loans			595,832				100	%			613,792				100	%			(17,960	)			-3	%			602,980				100	%
Less:
Deferred loan fees, net			51								193								(142	)			-74	%			104
Allowance for loan losses			13,363								12,767								596				5	%			13,610
Net portfolio loans		$	582,418							$	600,832							$	(18,414	)			-3	%		$	589,266
Yield on loans			5.74	%							6.00	%											-0.16	%			5.86	%

As of June 30, 2011, the Company had total consolidated assets of $868.5 million, total net portfolio loans of $582.4 million, an ALL of $13.4 million, total deposits of $625.4 million, and stockholders’ equity of $108.2 million.

Table 3

		PERIOD END CASH EQUIVALENTS AND INVESTMENT SECURITIES
		June 30,				% of				June 30,				% of				Change								March 31,				% of
(Dollars in thousands)		2011				Total				2010				Total				Amount				%				2011				Total
Cash equivalents:
Cash and due from banks		$	19,091				9	%		$	36,815				14	%		$	(17,724	)			-48	%		$	31,321				12	%
Interest bearing due from banks			29,225				14	%			39,492				16	%			(10,267	)			-26	%			36,975				15	%
			48,316				23	%			76,307				30	%			(27,991	)			-37	%			68,296				27	%
Investment Securities:
U.S. Treasury and agency			21,982				10	%			34,818				14	%			(12,836	)			-37	%			29,295				12	%
Obligations of state and political subdivisions			57,881				27	%			58,335				23	%			(454	)			-1	%			62,136				24	%
Mortgage backed securities			39,309				19	%			77,733				31	%			(38,424	)			-49	%			66,087				26	%
Corporate securities			23,432				11	%			—				—	%			23,432				100	%			22,834				9	%
Other asset backed securities			19,580				10	%			5,115				2	%			14,465				283	%			5,365				2	%
			162,184				77	%			176,001				70	%			(13,817	)			-8	%			185,717				73	%
Total cash equivalents and investment securities		$	210,500				100	%		$	252,308				100	%		$	(41,808	)			-17	%		$	254,013				100	%
Yield on cash equivalents and investment securities			3.20	%							3.77	%															3.13	%

The Company continued to maintain a strong liquidity position during the reporting period. As of June 30, 2011 the Company maintained cash positions at the Federal Reserve Bank (FRB) and correspondent banks in the amount of $19.1 million. The Company also held certificates of deposits with other financial institutions in the amount of $29.2 million, which the Company considers highly liquid.

The investment portfolio continues to remain relatively low-risk and as a source of primary and secondary liquidity. The portfolio is utilized as a source of liquidity in repositioning the balance sheet for the eventual increase in interest rates. Investment securities totaled $162.2 million at June 30, 2011, compared with $185.7 million at March 31, 2011. The $23.5 million or 12.67% decrease is reflective of net sales activity relating to municipal bonds, residential mortgage backed securities, and asset backed securities. The net cash proceeds were utilized to payoff maturing FHLB borrowings; the sales of longer maturity bonds also served to shorten the duration of the investment portfolio. As a direct result of the investment portfolio liquidation, for the three months ended June 30, 2011, the Company recorded approximately $655 thousand in realized gains on sales of securities.

At June 30, 2011, the Company’s net unrealized gain on available-for-sale securities was $809 thousand, compared with $1.5 million net unrealized loss at March 31, 2011. The favorable change in net unrealized losses was primarily due to increases in the fair values of the Company’s municipal bond portfolio.

Table 4

		QUARTERLY AVERAGE DEPOSITS BY CATEGORY
		Q2				%of				Q2				% of				Change								Q1				% of
(Dollars in thousands)		2011				Total				2010				Total				Amount				%				2011				Total
Demand deposits		$	91,608				14	%		$	92,744				15	%		$	(1,136	)			-1	%		$	98,502				15	%
Interest bearing demand			147,802				23	%			134,011				21	%			13,791				10	%			149,152				23	%
Total checking deposits			239,410				37	%			226,755				36	%			12,655				6	%			247,654				38	%
Savings			93,111				15	%			73,370				12	%			19,741				27	%			88,291				14	%
Total non-time deposits			332,521				52	%			300,125				48	%			32,396				11	%			335,945				52	%
Time deposits			306,668				48	%			328,110				52	%			(21,442	)			-7	%			307,525				48	%
Total deposits		$	639,189				100	%		$	628,235				100	%		$	10,954				2	%		$	643,470				100	%
Weighted average rate on total deposits			1.25	%							1.49	%															1.31	%

Second quarter 2011 average total deposits of $639.2 million increased 2% or $11.0 million from the second quarter in 2010, and decreased by 0.66% or $4.3 million compared to the first quarter of 2011.

Operating Results for the Second Quarter 2011

Through proactive and aggressive management of problem credits, and the maintenance of a relatively healthy net interest margin, the Company has remained profitable during the economic downturn. Accordingly, the Company continues to be well positioned to take advantage of growth opportunities in the coming years. Net income attributable to Bank of Commerce Holdings was $1.5 million for the three months ended June 30, 2011, compared with $1.7 million for the three months ended March 31, 2011, and $1.5 million for the three

months ended June 30, 2010. Net income available to common stockholders was $1.3 million for the three months ended June 30, 2011, compared with $1.4 million for the three months ended March 31, 2011, and $1.3 million for the three months ended June 30, 2010. During the second quarter, diluted earnings per share decreased $0.01 per share when compared to the first quarter of 2011, and the second quarter of 2010.

The Company continued to pay cash dividends of $0.03 per share during the second quarter. The dollar amount per share decreased from $0.06 per quarter during 2010 to $0.03 per quarter in 2011. The Company decreased the dividend rate to preserve capital, while ensuring that dividend payout ratios remain consistent to periods prior to the 2010 common stock offering.

Table 5

		SUMMARY INCOME STATEMENT
		Q2				Q2				Change								Q1				Change
(Dollars in thousands)		2011				2010				Amount				%				2011				Amount				%
Net interest income		$	8,517			$	8,181			$	336				4	%		$	8,665			$	(148	)			-2	%
Provision for loan and lease losses			2,580				1,600				980				61	%			2,400				180				8	%
Noninterest income			3,625				3,327				298				9	%			3,452				173				5	%
Noninterest expense			7,854				7,509				345				5	%			7,646				208				3	%
Income (loss) before income taxes			1,708				2,399				(691	)			-29	%			2,071				(363	)			-18	%
Provision (benefit) for income taxes			216				750				(534	)			-71	%			431				(215	)			-50	%
Net income (loss)			1,492				1,649				(157	)			-10	%			1,640				(148	)			-9	%
Less: Net income (loss) attributable to noncontrolling interest			6				144				(138	)			-96	%			(24	)			30				125	%
Net income attributable to Bank of Commerce Holdings			1,486				1,505				(19	)			-1	%			1,664				(178	)			-11	%
Less: preferred dividend and accretion on preferred stock			235				236				(1	)			—				235				—				—
Income available to common shareholders		$	1,251			$	1,269			$	(18	)			-1	%		$	1,429				(178	)			-12	%
Basic earnings per share		$	0.07			$	0.08			$	(0.01	)			-13	%		$	0.08			$	(0.01	)			-13	%
Diluted earnings per share		$	0.07			$	0.08			$	(0.01	)			-13	%		$	0.08			$	(0.01	)			-13	%
Cash dividends declared per share		$	0.03			$	0.06			$	(0.03	)			50	%		$	0.03				—				—

Table 6

		NET INTEREST SPREAD AND MARGIN
		Q2				Q2				Change				Q1				Change
(Dollars in thousands)		2011				2010				Amount				2011				Amount
Yield on average interest earning assets			4.83	%			5.29	%			-0.46	%			4.91	%			-0.08	%
Rate on average interest bearing liabilities			1.20	%			1.53	%			-0.33	%			1.24	%			-0.04	%
Net interest spread			3.63	%			3.76	%			-0.13	%			3.67	%			-0.04	%
Net interest margin on a tax equivalent basis			3.97	%			4.12	%			-0.15	%			4.02	%			-0.05	%
Average earning assets		$	881,887			$	812,337			$	69,550			$	887,010			$	(5,123	)
Average interest bearing liabilities		$	711,513			$	667,786			$	43,727			$	718,840			$	(7,327	)

Net interest income for the three months ended June 30, 2011 was $8.5 million, an increase of $336 thousand or 4.1% compared to the same period in 2010, and a decrease of $148 thousand or 2% compared with three months ended March 31, 2011. Net interest income during the three months ended June 30, 2011 was negatively impacted by decreased interest income realized from the available-for-sale investment portfolio, partially offset by lower volume of FHLB borrowings and lower funding costs relating to the Company’s time deposits.

The net interest margin (net interest income as a percentage of average interest-earning assets) on a fully tax-equivalent basis was 3.97% for the three months ended June 30, 2011, a decrease of 15 basis points as compared to the same period in 2010, and a decrease of 5 basis points quarter over quarter. The year over year decrease in the net interest margin is primarily due to a decreasing yield in the loan portfolio as a result of payoffs, repricing coupons on variable rate loans, transfers of loans to nonaccrual status, and decreasing yields in the available-for-sale investment portfolio. The net decline in the net interest margin was partially offset by a 34 basis point decrease in interest expense to earning assets from repricing interest bearing deposits and junior subordinated debentures.

Table 7

		NONINTEREST INCOME
		Q2				Q2				Change								Q1				Change
(Dollars in thousands)		2011				2010				Amount				%				2011				Amount				%
Service charges on deposit accounts		$	52			$	62			$	(10	)			-16	%		$	50			$	2				4	%
Payroll and benefit processing fees			102				100				2				2	%			129				(27	)			-21	%
Earnings on cash surrender value — bank owned life insurance			119				107				12				11	%			111				8				7	%
Net gain on sale of securities available-for-sale			655				133				522				392	%			258				397				154	%
Merchant credit card service income, net			33				64				(31	)			-48	%			270				(237	)			-88	%
Mortgage banking revenue, net			2,550				2,776				(226	)			-8	%			2,533				17				1	%
Other income			114				85				29				34	%			101				13				13	%
Total noninterest income		$	3,625			$	3,327			$	298				9	%		$	3,452			$	173				5	%

For the three months ended June 30, 2011, we recorded service charges on deposit accounts of $52 thousand, compared with $62 thousand for the same period a year ago, and $50 thousand for the first quarter 2011. The decrease in year over year service charges was primarily attributable to the discontinuance of the Overdraft Privilege product and decreased charges of analysis fees.

For the three months ended June 30, 2011, we recorded earnings on cash surrender value Bank owned life insurance of $119 thousand, compared with $107 thousand for the same period a year ago, and $111 thousand for the first quarter 2011. The increased expense was primarily attributable to the purchase of an additional policy.

For the three months ended June 30, 2011, we recorded securities gains of $655 thousand, compared with $133 thousand for the same period a year ago, and $258 thousand for the first quarter 2011. The increased gains resulted from increased sales activity pursuant to the liquidation and repositioning of our available-for-sale investment portfolio.

For the three months ended June 30, 2011, we recorded merchant credit card income of $33 thousand, compared with $64 thousand for the same period a year ago, and $270 thousand for the first quarter 2011. During the first quarter of 2011, approximately 50% of the merchant credit card portfolio was sold to an independent third party, resulting in additional revenues of $225 thousand. Accordingly, merchant credit card income for the three months ended June 30, 2011 is down 48% compared to the same period a year ago.

For the three months ended June 30, 2011, we recorded mortgage banking revenue of $2.6 million, compared with $2.8 million for the same period a year ago, and $2.5 million for the first quarter 2011. The decrease in mortgage banking revenue was driven by decreased origination and refinancing activity.

Table 8

		NONINTEREST EXPENSE
		Q2				Q2				Change									Q1			Change
(Dollars in thousands)		2011				2010				Amount				%				2011				Amount				%
Salaries and related benefits		$	4,068			$	3,365			$	703				21	%		$	4,253			$	(185	)			-4	%
Occupancy and equipment expense			800				924				(124	)			-13	%			728				72				10	%
Write down of other real estate owned			370				1,064				(694	)			-65	%			187				183				98	%
FDIC insurance premium			363				254				109				43	%			372				(9	)			-2	%
Data processing fees			91				64				27				42	%			99				(8	)			-8	%
Professional service fees			595				543				52				10	%			574				21				4	%
Deferred compensation expense			131				122				9				7	%			127				4				3	%
Stationery and supplies			88				96				(8	)			-8	%			51				37				73	%
Postage			44				45				(1	)			-2	%			46				(2	)			-4	%
Directors expense			67				68				(1	)			-1	%			74				(7	)			-9	%
Other expenses			1,237				964				273				28	%			1,135				102				9	%
Total noninterest expense		$	7,854			$	7,509			$	345				5	%		$	7,646			$	208				3	%

Noninterest expense includes salaries and benefits, occupancy and equipment, write down of other real estate owned (OREO), FDIC insurance assessments, director fees, and other expenses. Other expenses include overhead items such as utilities, telephone, insurance and licensing fees, and business travel. Noninterest expense for the three months ended June 30, 2011 was $7.9 million compared to $7.5 million during the same period in 2010, and $7.6 million for the first quarter 2011.

Salaries and related benefits for the three months ended June 30, 2011 increased by $703 thousand or 20.89%, compared to the same period a year ago, and decreased by $185 thousand compared to the first quarter of 2011. During the last six months of fiscal year 2010, Mortgage Services transitioned existing independent contractors to FTE’s, and increased staff due to growth in general operations, resulting in an increase in salaries and related benefits. The 2011 second quarter decrease in expense compared to first quarter 2011 was primarily due to lower bonuses paid out from the mortgage subsidiary, corresponding to the lower origination and refinancing volume.

Occupancy and equipment expense for the three months ended June 30, 2011 decreased by $124 thousand or 13.42%, compared to the same period a year ago, and increased by $72 thousand compared to the first quarter of 2011. The year over year decrease was driven by decreased rent expense, and decreased equipment repairs, both pertaining to the mortgage subsidiary.

Write down of the Company’s OREO decreased by $694 thousand or 65.23%, compared to the same period a year ago, and increased $183 thousand or 98% when compared to the first quarter of 2011. The OREO charges during the periods presented were primarily associated with a commercial real estate property where management identified impairment and appropriately reduced the property’s carrying value.

FDIC insurance premium expense for the three months ended June 30, 2011 increased by $109 thousand or 42.91%, compared to the same period a year ago. The increase is primarily due to the FDIC’s revisions in deposit insurance assessments methodology for determining premiums, and prepayment true up adjustments.

Data processing expense for the three months ended June 30, 2011 increased by $27 thousand or 42.19%, compared to the same period a year ago. The increase is primarily attributable to new software additions and their associated licensing.

Professional service fees encompass audit, legal and consulting fees. The Company continues to experience increased expense in this area due to ongoing credit quality issues within the loan portfolio, and increased regulatory and financial reporting burdens.

Other expenses for the three months ended June 30, 2011 increased by $273 thousand or 28.32%, compared to the same period in the prior year, attributable primarily to increased losses on sale of OREO, and increased regulatory compliance expense.

Table 9

		ALLOWANCE ACTIVITY
		Q2				Q1				Q4				Q3				Q2
(Dollars in thousands)		2011				2011				2010				2010				2010
Beginning balance		$	13,610			$	12,841			$	15,452			$	12,767			$	12,197
Provision for loan loss charged to expense			2,580				2,400				4,550				4,450				1,600
Loans charged off			(3,166	)			(1,966	)			(7,324	)			(1,883	)			(1,194	)
Loan loss recoveries			339				335				163				118				164
Ending balance		$	13,363			$	13,610			$	12,841			$	15,452			$	12,767
Gross portfolio loans outstanding at period end		$	595,832			$	602,980			$	600,796			$	611,151			$	613,792
Ratio of allowance for loan losses to total loans			2.24	%			2.26	%			2.14	%			2.53	%			2.08	%
Nonaccrual loans at period end:
Commercial		$	901			$	2,848			$	2,302			$	4,952			$	3,404
Construction			1,999				224				342				2,512				2,415
Commercial real estate			3,282				3,706				7,066				9,617				9,601
Residential real estate			12,741				11,705				10,704				7,997				6,910
Home equity			—				96				97				194				499
Total nonaccrual loans		$	18,923			$	18,579			$	20,511			$	25,272			$	22,829
Accruing troubled debt restructured loans
Commercial		$	—			$	—			$	—			$	—			$	484
Construction			108				2,328				2,804				2,327				2,320
Commercial real estate			17,304				3,619				3,621				2,929				1,164
Residential real estate			6,569				5,782				6,243				6,906				5,120
Home equity			429				396				—				—				—
Total accruing restructured loans		$	24,410			$	12,125			$	12,668			$	12,162			$	9,088
All other accruing impaired loans			539				1,182				737				740				—
Total impaired loans		$	43,872			$	31,886			$	33,916			$	38,174			$	31,917
Allowance for loan losses to nonaccrual loans at period end			70.62	%			73.25	%			62.61	%			61.14	%			55.92	%
Nonaccrual loans to total loans			3.18	%			3.08	%			3.41	%			4.14	%			3.72	%
Allowance for loan losses to impaired loans			30.46	%			42.68	%			37.86	%			40.48	%			40.00	%

As of June 30, 2011, impaired loans totaled $43.9 million, of which $19.0 million were in nonaccrual status. Of the total impaired loans, $13.3 million or one hundred and forty seven were ITIN loans with an approximate average balance of $90 thousand. The remaining nonaccrual loans consist of two commercial loans, three construction loans, four commercial real estate loans, and seven non-ITIN residential mortgages.

TDRs are considered impaired loans, but are not necessarily placed on nonaccrual status at inception of TDR status. Rather, if the borrower is current to original loan terms at the time of the restructuring, and continues to pay as agreed to modified terms, the loan is reported as current. As of June 30, 2011, there were $7.6 million of impaired ITINs which were classified as TDRs with $4.2 million on non-accrual.

As of June 30, 2011 the Company had $32.4 million in TDRs compared to $21.9 million as of March 31, 2011. The increase in TDRs is due to the restructuring of debts with a large commercial real estate borrower. As of June 30, 2011, the Company had one hundred and

nine restructured loans that qualified as TDRs; fifty seven loans were performing according to their restructured terms. TDRs represented 5.43% of gross portfolio loans, compared with 3.63% of gross portfolio loans on March 31, 2011.

Table 10

		TROUBLED DEBT RESTRUCTURINGS
		June 30,				March 31,				December 31,				September 30,				June 30,
(Dollars in thousands)		2011				2011				2010				2010				2010
Nonaccrual		$	7,959			$	9,752			$	11,977			$	12,587			$	10,851
Accruing			24,410				12,125				12,668				12,162				9,088
Total troubled debt restructurings		$	32,369			$	21,877			$	24,645			$	24,749			$	19,939
Percentage of total gross portfolio loans			5.43	%			3.63	%			4.10	%			4.05	%			3.25	%

Table 11

		NONPERFORMING ASSETS
		June 30,				March 31,				December 31,				September 30,				June 30,
(Dollars in thousands)		2011				2011				2010				2010				2010
Commercial		$	901			$	2,849			$	2,302			$	4,952			$	3,404
Real estate construction
Commercial real estate construction			1,973				99				100				2,251				2,151
Residential real estate construction			26				125				242				261				264
Total real estate construction			1,999				224				342				2,512				2,415
Real estate mortgage
1-4 family, closed end 1st lien			3,002				1,634				1,166				1,204				1,674
1-4 family revolving			—				96				97				194				195
ITIN 1-4 family loan pool			9,739				10,071				9,538				6,751				5,237
Home equity loan pool			—				—				—				42				304
Total real estate mortgage			12,741				11,801				10,801				8,191				7,410
Commercial real estate			3,282				3,706				7,066				9,617				9,600
Total nonaccrual loans			18,923				18,580				20,511				25,272				22,829
90 days past due not on nonaccrual			953				743				—				682				592
Total nonperforming loans			19,876				19,323				20,511				25,954				23,421
Other real estate owned			1,793				3,868				2,288				2,020				2,039
Total nonperforming assets		$	21,669			$	23,191			$	22,799			$	27,974			$	25,460
Nonperforming loans to total loans			3.34	%			3.20	%			3.41	%			4.25	%			3.82	%
Nonperforming assets to total assets			2.49	%			2.53	%			2.43	%			3.03	%			2.74	%

Table 12

		OTHER REAL ESTATE OWNED ACTIVITY
		Q2				Q1				Q4				Q3				Q2
(Dollars in thousands)		2011				2011				2010				2010				2010
Beginning balance		$	3,868			$	2,288			$	2,020			$	2,039			$	3,395
Additions to OREO			407				2,099				3,680				215				—
Dispositions of OREO			(2,112	)			(332	)			(3,215	)			(105	)			(292	)
OREO valuation adjustment			(370	)			(187	)			(197	)			(129	)			(1,064	)
Ending balance		$	1,793			$	3,868			$	2,288			$	2,020			$	2,039

At June 30, 2011 the recorded investment in OREO was $1.8 million. During the second quarter of 2011, the Company transferred six foreclosed properties aggregating $407 thousand to OREO; associated charges to the allowance for loan losses for these foreclosed assets amounted to $7 thousand. During the second quarter 2011, the Company sold ten properties aggregating $2.1 million for a net loss of $202 thousand, and recorded $370 thousand in additional write downs of existing OREO in other noninterest expense. The June 30, 2011 OREO balance consists of nine properties, of which eight are secured with 1-4 family residential real estate in the amount of $618 thousand. The remaining property consists of vacant commercial land in the amount of $1.2 million.

Table 13

		INCOME STATEMENT
		Q2				Q2												Q1				Full Year				Full Year
(Dollars in thousands, except for per share data)		2011				2010				$				%				2011				2010				2009
Interest income:
Interest and fees on loans		$	8,958			$	9,510			$	(552	)			-6	%		$	9,033			$	38,034			$	35,860
Interest on tax-exempt securities			478				381				97				25	%			532				1,692				1,164
Interest on U.S. government securities			633				507				126				25	%			678				2,083				3,450
Interest on federal funds sold and securities purchased under agreement to resell			—				—				—				—				—				2				32
Interest on other securities			577				343				234				68	%			650				1,614				823
Total interest income			10,646				10,741				(95	)			-1	%			10,893				43,425				41,329
Interest expense:
Interest on demand deposits			204				226				(22	)			-10	%			226				968				1,015
Interest on savings deposits			229				221				8				4	%			246				921				963
Interest on certificates of deposit			1,272				1,554				(282	)			-18	%			1,313				6,151				7,628
Securities sold under agreements to repurchase			13				15				(2	)			-13	%			14				52				51
Interest on FHLB and other borrowings			148				138				10				7	%			164				1,630				1,833
Interest on other borrowings			263				406				(143	)			-35	%			107				680				845
Total interest expense			2,129				2,560				(431	)			-17	%			2,070				10,402				12,335
Net interest income			8,517				8,181				336				4	%			8,576				33,023				28,994
Provision for loan and lease losses			2,580				1,600				980				61	%			2,400				12,850				9,475
Net interest income after provision for loan losses			5,937				6,581				(644	)			-10	%			6,176				20,173				19,519
Noninterest income:
Service charges on deposit accounts			52				62				(10	)			-16	%			50				260				390
Payroll and benefit processing fees			102				100				2				2	%			129				448				452
Earnings on cash surrender value — Bank owned life insurance			119				107				12				11	%			111				438				418
Net gain on sale of securities available-for-sale			655				133				522				392	%			258				1,981				2,438
Gain on settlement of put reserve			—				—				—				—				—				1,750				—
Merchant credit card service income, net			33				64				(31	)			-48	%			270				235				—
Mortgage banking revenue, net			2,550				2,776				(226	)			-8	%			2,492				14,328				5,327
Other income			114				85				29				34	%			111				351				1,038
Total noninterest income			3,625				3,327				298				9	%			3,421				19,791				10,063
Noninterest expense:
Salaries and related benefits			4,068				3,365				703				21	%			4,253				15,903				10,882
Occupancy and equipment expense			800				924				(124	)			-13	%			708				3,660				3,405
Write down of other real estate owned			370				1,064				(694	)			-65	%			187				1,571				161
FDIC insurance premium			363				254				109				43	%			372				1,016				1,274
Data processing fees			91				64				27				42	%			99				270				282
Professional service fees			595				543				52				10	%			550				1,726				820
Deferred compensation expense			131				122				9				7	%			127				493				478
Stationery and supplies			88				96				(8	)			-8	%			43				258				185
Postage			44				45				(1	)			-2	%			42				198				147
Directors’ expense			67				68				(1	)			-1	%			74				266				299
Other expenses			1,237				964				273				28	%			1,071				4,970				2,691
Total noninterest expense			7,854				7,509				345				5	%			7,526				30,331				20,624
Income before provision for income taxes			1,708				2,399				(691	)			-29	%			2,071				9,633				8,958
Provision for income taxes			216				750				(534	)			-71	%			431				3,159				2,690
Net Income			1,492				1,649				(157	)			-10	%			1,640				6,474				6,268
Less: Net income (loss) attributable to noncontrolling interest			6				144				(138	)			-96	%			(24	)			254				263
Net income attributable to Bank of Commerce Holdings		$	1,486			$	1,505			$	(19	)			-1	%		$	1,664			$	6,220			$	6,005
Less: Preferred dividend and accretion on preferred stock			235				236				(1	)			—				235				940				942
Income available to common stockholders		$	1,251			$	1,269			$	(18	)			-1	%		$	1,429			$	5,280			$	5,063
Basic earnings per share		$	0.07			$	0.08			$	(0.01	)						$	0.08			$	0.35			$	0.58
Weighted average shares — basic			16,991				16,837				154								16,991				14,951				8,711
Diluted earnings per share		$	0.07			$	0.08			$	(0.01	)						$	0.08			$	0.35			$	0.58
Weighted average shares — diluted			16,991				16,837												16,991				14,951				8,711
Cash dividends declared						$	0.06											$	0.03			$	0.18			$	0.24

Table 14

		BALANCE SHEET
		June 30,				June 30,												March 31,
(Dollars in thousands)		2011				2010				$				%				2011
ASSETS
Cash and due from banks		$	19,091			$	36,815			$	(17,724	)			-48	%		$	31,321
Interest bearing deposits in other banks			29,225				39,492				(10,267	)			-26	%			36,975
Cash and cash equivalents			48,316				76,307				(27,991	)			-37	%			68,296
Investment securities			162,184				176,001				(13,817	)			-8	%			185,717
Total portfolio loans			595,781				613,599				(17,818	)			-3	%			602,876
Allowance for loan losses			13,363				12,767				596				5	%			13,610
Loans, net			582,418				600,832				(18,414	)			-3	%			589,266
Mortgage loans held for sale			26,067				26,875				(808	)			-3	%			18,963
Total interest earning assets			832,348				892,782				(60,434	)			-7	%			875,852
Bank premises and equipment, net			9,691				9,988				(297	)			-3	%			9,736
OREO, net			3,695				2,039				1,656				81	%			3,695
Goodwill			1,793				3,695				(1,902	)			-51	%			3,868
Other assets			34,358				34,008				350				1	%			35,984
TOTAL ASSETS		$	868,522			$	929,745			$	(61,223	)			-7	%		$	915,525
LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand — noninterest bearing		$	87,643			$	66,040			$	21,603				33	%		$	87,842
Demand — interest bearing			149,917				165,871				(15,954	)			-10	%			146,202
Savings accounts			93,698				76,438				17,260				23	%			91,912
Certificates of deposit			294,173				334,676				(40,503	)			-12	%			302,133
Total deposits			625,431				643,025				(17,594	)			-3	%			628,089
Securities sold under agreements to repurchase			15,353				13,444				1,909				14	%			14,607
Federal Home Loan Bank borrowings			91,000				145,000				(54,000	)			-37	%			141,000
Mortgage warehouse line of credit			4,236				—				4,236				100	%			—
Junior subordinated debentures			15,465				15,465				—				—				15,465
Other liabilities			8,843				10,118				(1,275	)			-13	%			10,281
Total Liabilities		$	760,328			$	827,052				(66,724	)			-8	%		$	809,442
Total Equity — Bank of Commerce Holdings			105,633				100,479				5,154				5	%			103,528
Noncontrolling interest in subsidiary			2,561				2,214				347				16	%			2,555
Total Stockholders’ Equity			108,194				102,693				5,501				5	%			106,083
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	868,522			$	929,745			$	(61,223	)			-7	%		$	915,525