Bank of Commerce 8K Other Events | BOCH 26 Oct 07

Exhibit 99.1

Bank of Commerce Holdings

(NASDAQ: BOCH)

Company Press Release

Company Profile

•		Founded 1982

•		Five offices — three markets

•		Redding Bank of Commerce™

•		Roseville Bank of Commerce™

•		Sutter Bank of Commerce™

•		Bank of Commerce Mortgage™

Investor Highlights

•		5% stock dividend — 1986

•		Annual cash dividends — since 1988

•		Two for one stock split — 1985

•		Three for one stock split — 1998

•		10% stock dividend — 2000

•		Three for one stock split — 2004

•		Quarterly dividends — since 2005

•		ACQB Index — America’s Community Bank Index

Business Overview

Bank of Commerce Holdings (the “Holding Company”) is a financial holding company (“FHC”) registered under the Bank Holding Company Act of 1956, as amended, and was incorporated in California on January 21, 1982. The Company ownsRedding Bank of Commerce™, Roseville Bank of Commerce™, Sutter Bank of Commerce™andBank of Commerce Mortgage™.

Contact Information
Patrick J. Moty, President & CEO
Telephone (530) 722-3950
Linda J. Miles
Telephone (530) 722-3955
www.reddingbankofcommerce.com

For immediate release:

Bank of Commerce Holdings™, Announces third quarter 2007 Operating Results —

REDDING, California, October 26, 2007/ PR Newswire—Bank of Commerce Holdings (NASDAQ: BOCH), a $616.0 million asset financial holding company, and parent company of Redding Bank of Commerce™, Roseville Bank of Commerce™, Sutter Bank of Commerce™ and Bank of Commerce Mortgage™ today announced third quarter 2007 operating results.

“The strength of our core banking business continued to serve us very well through the third quarter 2007. Top line revenues increased to $32.5 million in 2007 compared with $29.1 million in 2006, an 11.5% increase over the prior year. Overall, our performance remains above average and consistent with our goal of achieving upper quartile performance compared with our peers. While our operating results declined 10% on a year-over-year basis, a nonrecurring event accounted for almost half of this variance.”

“Our loan and deposit trends were solid and our team continued to earn more of our customers business. We maintained our conservative risk management practices and our strong balance sheet and capital ratios. We are not immune to the evolving slowdown in the housing sector, yet we had another solid quarter despite turbulent credit markets. Looking ahead, we are taking appropriate steps to ensure we focus intently on actively managing our exposures and controlling costs.”

“We continue to invest in our business for the long term and to introduce new products and services in our marketplace. We are preparing to launch in November a brand new eye-catching brand look. (Hint: the most trusted name in business just got more personal.)

Market Data

Exchange: NASDAQ
Symbol:BOCH
Shares outstanding at 9/30/07: 8,784,359
Market Cap: $92,235,770
Recent Price : $10.50
52 week range: $9.45 — $12.50
Price/ Book (%): 207.51
SNL™ Peer Price/Book (%): 158.64
Price/Earnings (x): 14.58
SNL™ Peer Price/Earnings (x): 14.01
Price/LTM EPS (x): 14.58
Dividend Yield (%): 3.05
SNL ™ Peer Dividend Yield (%): 1.48
YTD Volume traded: 614,633
Insider Ownership: 32.10%

You will see the bank’s colorful, contemporary redesign in everything from our fresh logo mark, branch signage and account statements to our newly re-launched website.

Our new Buenaventura office located in an upscale shopping district on the Westside of Redding is scheduled to open mid-December 2007.”saidPatrick J. Moty, President and CEO of the Company.

Bank of Commerce Holdings’ net income for the third quarter 2007 decreased 20.4 percent to $1,331,000 or $0.15 per diluted share compared to $1,672,000 or $0.19 per diluted share during the third quarter 2006. Annualized return on average assets and return on average equity for the third quarter of 2007 were 0.93% and 12.03% respectively, compared with 1.17% and 15.11% for the third quarter of 2006.

On September 18, 2007, the Company announced a $0.08 quarterly cash dividend payable to shareholders of record as of September 28, 2007 and was paid on October 12, 2007.

At September 30, 2007, Bank of Commerce Holdings’ total assets were $616.0 million, an increase of 5.58% or $32.5 million from December 31, 2006. Net loans increased to $461.2 million, an increase of $52.2 million from December 31, 2006.

The Company’s loan portfolio is sound and performing well. The Company’s allowance for loan losses was 1.09% of total loans at September 30, 2007 and 1.18% at December 31, 2006, while its ratio of non-performing assets to total assets was 0.17% at September 30, 2007, compared to 0.00% at December 31, 2006. Provisions for loan losses for the quarter ended September 2007 were $115,000 compared to $72,000 for the same period in 2006. The Company’s OREO remained at $0 through the third quarter of 2007 and 2006.

Total deposits increased to $472.2 million, an increase of $32.8 million or 7.5% from December 31, 2006. The Company has benefited from several new deposit products including Forever Free checking, Sports Series Checking, High Performance Savings and High Performance Checking packages.

The capital ratios of Redding Bank of Commerce continue to be above the well-capitalized guidelines established by bank regulatory agencies.

The most significant impact on net interest income between periods is derived from the interaction of changes in the volume of and rate earned or paid on interest-earning assets and interest-bearing liabilities. The volume of interest-earning assets in loans and securities, compared to the volume of interest-bearing liabilities represented by deposits and borrowings, combined with the spread, produces the changes in net interest income between periods. The Company’s net interest margin was 4.18% in the third quarter of 2007 compared to 4.92% for the same period in 2006.

Bank of Commerce Holdings, with administrative offices in Redding, California is a financial service holding company that owns Redding Bank of Commerce™, Roseville Bank of Commerce™, Sutter Bank of Commerce™ and Bank of Commerce Mortgage™. The Company is a federally insured California banking corporation and opened on October 22, 1982.

BOCH is a NASDAQ Global Market listed stock. Please contact your local investment advisor for purchases and sales. Investment firms making a market in BOCH stock are:


		Howe Barnes Hoefer & Arnett/ John Cavender		Morgan Stanley/ Rick Hill
		555 Market Street		310 Hemsted Drive, Suite 100
		San Francisco, CA		Redding, CA
		(800) 346-5544		(800) 733-6126

		Wachovia Securities/ Ken Myers, Rick Hansen		Raymond James Financial/
		Geoff Ball
		10466 Brunswick Road		1805 Hilltop Drive, Suite 106
		Grass Valley, CA		Redding, CA
		(888) 383-3112		(800) 926-5040

This quarterly press release includes forward-looking information, which is subject to the “safe harbor” created by the Securities Act of 1933, and Securities Act of 1934. These forward-looking statements (which involve the Company’s plans, beliefs and goals, refer to estimates or use similar terms) involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors:

•		Competitive pressure in the banking industry and changes in the regulatory environment.

•		Changes in the interest rate environment and volatility of rate sensitive assets and liabilities.

•		The health of the economy declines nationally or regionally which could reduce the demand for loans or reduce the value of real estate collateral securing most of the Company’s loans.

•		Credit quality deteriorates which could cause an increase in the provision for loan losses.

•		Losses in the Company’s merchant credit card processing business.

•		Asset/Liability matching risks and liquidity risks.

•		Changes in the securities markets.

For additional information concerning risks and uncertainties related to the Company and its operations please refer to the Company’s Annual Report onForm 10-K for the year ended December 31, 2006 and under the heading “Risk factors that may affect results” and subsequent reports on Form 10-Q and current reports onForm 8-K. 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.

BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)


	September 30,			December 31,			September 30,
Amounts in thousands, except per share data	2007			2006			2006
ASSETS

Cash and due from banks	$	12,366		$	14,661		$	17,535
Federal funds sold and securities purchased under agreements to resell		7,980			24,605			28,010

Cash and cash equivalents		20,346			39,266			45,545
Securities available-for-sale (including pledged collateral of $85,574 at September 30, 2007; $71,686 at December 31, 2006 and $74,022 at September 30, 2006)		93,423			95,601			97,614
Securities held-to-maturity, at cost (estimated fair value of $10,538 at September 30, 2007, $10,892 at December 31, 2006 and $10,788 at September 30, 2006)		10,592			10,810			10,841
Loans, net of the allowance for loan losses of $5,061 at September 30, 2007, $4,904 at December 31, 2006 and $4,753 at September 30, 2006		461,171			408,990			403,657
Bank premises and equipment, net		10,464			8,595			7,350
Other assets		19,979			20,180			20,211


TOTAL ASSETS	$	615,975		$	583,442		$	585,218


LIABILITIES AND STOCKHOLDERS’ EQUITY

Demand — noninterest bearing	$	70,809		$	84,779		$	81,125
Demand — interest bearing		136,219			119,437			111,439
Savings		44,406			22,749			22,610
Certificates of deposits		220,803			212,442			214,019

Total deposits		472,237			439,407			429,193

Securities sold under agreements to repurchase		26,755			37,117			35,260
Federal Home Loan Bank borrowings		50,000			40,000			55,000
Other liabilities		6,734			7,537			6,352
Guaranteed Preferred Beneficial Interests in Company’s Junior Subordinated Debt payable to unconsolidated subsidiary grantor trust		15,465			15,465			15,465

Total Liabilities		571,191			539,526			541,270

Commitments and contingencies
Stockholders’ Equity:
Preferred stock, no par value, 2,000,000 authorized no shares issued and outstanding in 2007 and 2006		—			—			—
Common stock , no par value, 50,000,000 shares authorized; 8,784,359 shares issued and outstanding at September 30, 2007, 8,847,042 at December 31, 2006 and 8,926,842 at September 30, 2006		10,252			11,517			12,416
Retained earnings		35,617			33,336			32,526
Accumulated other comprehensive (loss), net of tax		(1,085	)		(937	)		(994	)

Total Stockholders’ equity		44,784			43,916			43,948


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	615,975		$	583,442		$	585,218

BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)


Three and nine months ended September 30, 2007 and 2006	Three Months Ended					Nine Months Ended
Amounts in thousands, except for per share data	Sept. 30, 2007		Sept. 30, 2006			Sept. 30, 2007		Sept. 30, 2006

Interest income:
Interest and fees on loans	$	9,350	$	8,501		$	26,779	$	23,881
Interest on tax exempt securities		324		231			936		494
Interest on U.S. government securities		798		849			2,446		2,575
Interest on federal funds sold and securities purchased under agreements to resell		190		383			580		658
Interest on other securities		22		25			67		113

Total interest income		10,684		9,989			30,808		27,721

Interest expense:
Interest on demand deposits		791		449			1,935		968
Interest on savings deposits		359		69			885		209
Interest on time deposits		2,702		2,423			7,934		5,844
Securities sold under agreements to repurchase		289		328			1,012		794
Interest on FHLB and other borrowing expense		628		918			1,799		2,492
Interest on junior subordinated debt payable to unconsolidated subsidiary grantor trust		274		272			814		796

Total interest expense		5,043		4,459			14,379		11,103

Net interest income		5,641		5,530			16,429		16,618
Provision for loan and lease losses		115		72			121		226

Net interest income after provision for loan losses		5,526		5,458			16,308		16,392

Noninterest income:
Service charges on deposit accounts		70		81			215		255
Payroll and benefit processing fees		90		89			287		287
Earnings on cash surrender value — Bank owned life insurance		100		80			294		231
Net gain (loss) on sale of securities available-for-sale		0		(171	)		46		(171	)
Net gain on sale of loans		0		90			0		90
Merchant credit card service income, net		109		110			297		280
Mortgage brokerage fee income		21		32			56		84
Other income		136		117			447		331

Total non-interest income		526		428			1,642		1,387

Noninterest expense:
Salaries and related benefits		2,402		1,996			6,458		5,870
Occupancy and equipment expense		635		467			1,636		1,350
FDIC insurance premium		13		12			39		36
Data processing fees		82		53			227		169
Professional service fees		216		149			663		503
Payroll and Benefit fees		25		24			81		78
Deferred compensation expense		105		94			303		272
Stationery and Supplies		34		71			141		180
Postage		39		26			106		91
Directors’ expense		86		45			207		170
Other expenses		391		362			1,356		1,128

Total non-interest expense		4,028		3,299			11,217		9,847

Income before income taxes		2,024		2,587			6,733		7,932

Provision for income taxes		693		915			2,315		2,979

Net Income	$	1,331	$	1,672		$	4,418	$	4,953

Basic earnings per share	$	0.15	$	0.19		$	0.50	$	0.57
Weighted average shares — basic		8,904		8,764			8,893		8,723
Diluted earnings per share	$	0.15	$	0.19		$	0.49	$	0.55
Weighted average shares — diluted		8,929		8,937			8,983		8,945

BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Quarterly Financial Condition Data
(Unaudited)
For the Quarter Ended


	Sept 30,			June 30,			March 31,			Dec. 31,			Sept 30,			June 30,			March 31,
	2007			2007			2007			2006			2006			2006			2006

Cash and due from banks	$	12,366		$	18,206		$	12,597		$	14,661		$	17,535		$	12,668		$	11,819

Federal funds sold and securities purchased under agreements to resell		7,980			14,115			21,195			24,605			28,010			14,155			9,835

Total Cash & Equivalents		20,346			32,321			33,792			39,266			45,545			26,823			21,654
Securities available-for-sale		93,423			94,029			92,769			95,601			97,614			97,366			93,645
Securities held to maturity, at cost		10,592			10,637			10,673			10,810			10,841			11,141			7,620
Loans, net of allowance for loan losses		461,171			437,821			411,357			408,990			403,657			401,185			374,983
Bank premises and equipment, net		10,464			10,329			9,992			8,595			7,350			6,690			6,261
Other assets		19,979			20,440			19,513			20,180			20,211			20,942			18,733

TOTAL ASSETS	$	615,975		$	605,577		$	578,096		$	583,442		$	585,218		$	564,147		$	522,896


Liabilities:
Demand — noninterest bearing	$	70,809		$	69,842		$	70,035		$	84,779		$	81,125		$	74,505		$	74,519
Demand — interest bearing		136,219			114,530			112,550			119,437			111,439			101,492			102,003
Savings		44,406			45,082			41,537			22,749			22,610			23,111			28,477
Certificates of deposit		220,803			211,794			211,422			212,442			214,019			189,577			173,106

Total deposits		472,237			441,248			435,544			439,407			429,193			388,685			378,105

Securities sold under agreements to repurchase		26,755			46,655			35,053			37,117			35,260			32,507			25,117
Federal Home Loan Bank borrowings		50,000			50,000			40,000			40,000			55,000			80,000			55,000
Other liabilities		6,734			7,114			6,646			7,537			6,352			6,536			8,864
Junior subordinated debt payable to subsidiary grantor trust		15,465			15,465			15,465			15,465			15,465			15,465			15,465

Total liabilities		571,191			560,482			532,708			539,526			541,270			523,193			482,551

Stockholders’ equity:
Common stock		10,252			11,966			11,940			11,517			12,416			11,442			11,198
Retained earnings		35,617			34,997			34,110			33,336			32,526			31,479			30,535
Accumulated other comprehensive income (loss), net		(1,085	)		(1,868	)		(662	)		(937	)		(994	)		(1,967	)		(1,388	)

Total stockholders’ equity		44,784			45,095			45,388			43,916			43,948			40,954			40,345

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	615,975		$	605,577		$	578,096		$	583,442		$	585,218		$	564,147		$	522,896


Interest Income:
Net interest income		5,641			5,461		$	5,327		$	5,418		$	5,530		$	5,674		$	5,413
Provision for loan losses		115			0			6			0			72			143			11

Net interest income after provision for loan losses		5,526			5,461			5,321			5,418			5,458			5,531			5,402

Noninterest Income:
Service charges		70			76			69			91			81			86			88
Merchant credit card service income, net		109			89			92			100			89			93			77
Net (loss) on sale of securities available-for-sale		0			0			46			0			(171	)		0			0
Mortgage brokerage fee income		21			29			6			(13	)		32			35			17
Other income		326			424			285			363			397			298			266

Total noninterest income		526			618			498			541			428			512			448
Noninterest Expense:
Salaries and related benefits		2,402			1,959			2,097			2,150			1,996			1,996			1,878
Net Occupancy and equipment expense		635			543			458			496			467			448			435
Professional service fees		216			252			195			181			149			150			204
Other expenses		775			947			738			659			687			716			721

Total noninterest expense		4,028			3,701			3,488			3,486			3,299			3,310			3,238

Income before income taxes		2,024			2,378			2,331			2,473			2,587			2,733			2,612
Provision for income taxes		693			778			844			858			915			1,044			1,020

Net Income	$	1,331		$	1600		$	1,487		$	1,615		$	1,672		$	1,689		$	1,592

Average Balances, Interest Income/Expense and Yields/Rates Paid
(Unaudited, Dollars in thousands)


	Nine Months Ended								Nine Months Ended
	September 30, 2007								September 30, 2006
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate

Earning Assets
Portfolio Loans	$	424,593		$	26,779		8.41	%	$	388,886		$	23,881		8.19	%
Tax-exempt Securities		31,774			936		3.93	%		18,059			494		3.65	%
US Government Securities		73,810			2,446		4.42	%		83,440			2,575		4.11	%
Federal Funds Sold		14,809			580		5.22	%		17,335			658		5.06	%
Other Securities		2,000			67		4.47	%		3,437			113		4.38	%

Average Earning Assets	$	546,986		$	30,808		7.51	%	$	511,157		$	27,721		7.23	%


Cash & Due From Banks	$	14,084							$	14,161
Bank Premises		9,938								6,500
Allowance for Loan and Lease Losses		(4,916	)							(4,459	)
Other Assets		16,996								14,969

Average Total Assets	$	583,088							$	542,328


Interest Bearing Liabilities
Demand Interest Bearing	$	115,937		$	1,935		2.23	%	$	106,002		$	968		1.22	%
Savings Deposits		38,553			885		3.06	%		25,095			209		1.11	%
Certificates of Deposit		215,219			7,934		4.92	%		182,478			5,844		4.27	%
Repurchase Agreements		35,427			1,012		3.81	%		28,010			794		3.78	%
FHLB Borrowings		44,396			1,799		5.40	%		64,597			2,492		5.14	%
Trust Preferred Borrowings		15,000			814		7.24	%		15,000			796		7.08	%

Average Interest Bearing Liabilities		464,532		$	14,379		4.13	%		421,182		$	11,103		3.51	%

Non interest Demand		71,880								78,388
Other Liabilities		1,419								4,547
Shareholder Equity		45,257								38,211

Average Liabilities and Stockholders’’ Equity	$	583,088							$	542,328


Net Interest Income and Net Interest Margin				$	16,429		4.00	%				$	16,618		4.33	%

Net interest income for the quarter ended September 30, 2007 was $5.6 million compared with $5.5 million for the same period in 2006, an increase of 1.8%. Net interest income for the nine-months ended September 30, 2007 was $16.4 million compared with $16.6 million for the same nine-month period in 2006, a decrease of 1.2%.

Average earning assets for the nine-months ended September 30, 2007 increased $35.8 million or 7.0% compared with the same period in the prior year. Average loans, the largest component of earning assets, increased $35.7 million or 9.2% on average compared with the prior year period. Overall, the yield on earning assets increased to 7.51% for the nine-month period compared to 7.23% for the same period in the prior year. The increase is primarily due to new loan production priced at higher rates and the repositioning of the security portfolio; lower coupon bonds were sold and replaced with higher yielding securities.

Bank of Commerce (BOCH) 8-KOther Events