Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 3. EARNINGS PER SHARE

Basic earnings per share (EPS) excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that subsequently shared in the earnings of the entity. Net income available to common stockholders is based on the net income attributable to Bank of Commerce Holdings adjusted for dividend payments and accretion associated with preferred stock.

During late first and early second quarter of 2010, through a successful Offering, the Company issued 8.3 million shares of their common stock. In accordance to the Offering, average common shares outstanding increased for the six months ended June 30, 2011 compared to the same period in 2010.

The following table displays the computation of earnings per share for the three months and six months ended June 30, 2011 and 2010.

(Dollars in thousands, except per share data)

	Three months ended				Six months ended
	June 30,		June 30,		June 30,		June 30,
Earnings Per Share	2011		2010		2011		2010
Basic EPS Calculation:
Net income attributable to Bank of Commerce Holdings	$	1,486	$	1,505	$	3,150	$	3,040
Less: dividend on preferred stock		212		213		425		426
Less: accretion on preferred stock		23		23		45		45
Numerator: earnings available to common shareholders	$	1,251	$	1,269	$	2,680	$	2,569
Denominator (average common shares outstanding)		16,991,495		16,837,209		16,991,495		12,876,357
Basic earnings per share	$	0.07	$	0.08	$	0.16	$	0.20
Diluted EPS Calculation:
Net income	$	1,486	$	1,505	$	3,150	$	3,040
Less: dividend on preferred stock		212		213		425		426
Less: accretion on preferred stock		23		23		45		45
Numerator: earnings available to common shareholders	$	1,251	$	1,269	$	2,680	$	2,569
Denominator:
Average common shares outstanding		16,991,495		16,837,209		16,991,495		12,876,357
Plus incremental shares from assumed conversions
Stock options		—		—		—		—
Warrants		—		—		—		—
		16,991,495		16,837,209		16,991,495		12,876,357
Diluted earnings per share	$	0.07	$	0.08	$	0.16	$	0.20
Anti-dilutive options not included in EPS calculation		256,580		282,080		256,580		282,080
Anti-dilutive warrants not included in EPS calculation		435,410		405,405		435,410		405,405