exv99w1

Exhibit 99.1


		Bank of Commerce Holdings (NASDAQ: BOCH)

		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 -1988

•		Two for one stock split — 1985

•		Three for one stock split — 1998

•		10% stock dividend — 2000

•		Three for one stock split — 2004

•		Quarterly cash 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 owns Redding Bank of Commerce™, Roseville Bank of Commerce™, Sutter Bank of Commerce™ and Bank of Commerce Mortgage™.

Contact Information
Michael C. Mayer, President & CEO
Telephone (530) 224-7361
Linda J. Miles, Chief Financial Officer
Telephone (530) 224-7318
www.reddingbankofcommerce.com

Market Data

Exchange: NASDAQ
Exchange: NASDAQ
Symbol: BOCH
Shares outstanding at 9/29/06: 8,926,842
Market Cap: $100,873,315
Recent Price : $11.30
52 week range: $9.14 — $11.90
Price/ Book (%): 240.43
SNL™ Peer Price/Book (%): 220.30
Price/Earnings (x): 15.07
SNL™ Peer Price/Earnings (x): 16.25
Price/LTM EPS (x): 15.07
Dividend Yield (%): 2.48
SNL ™ Peer Dividend Yield(%): 1.56
YTD Volume traded: 498,855
Insider Ownership: 30.29%

Company Press Release

For immediate release:

Bank of Commerce Holdings™, Announces 12% increase in third quarter 2006 Operating Results —

REDDING, California, October 27, 2006/ PR Newswire— Bank of Commerce Holdings (NASDAQ: BOCH), a $585.2 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 a 12% increase in third quarter 2006 operating results.

“We are very proud to report a 12 percent increase in operating results over the same period in 2005. The reasons for our increase in earnings are attributed to the volume of loan activities over the year coupled with increasing interest rates. Our performance is well above average meeting our goal of achieving upper quartile performance, compared to our peers” said Michael C. Mayer, President and CEO of the Company.

Bank of Commerce Holdings’ net income for the third quarter 2006 increased 7.2 percent to $1,672,000 or $0.19 per diluted share compared to $1,560,000 or $0.18 per diluted share during the third quarter 2005. Annualized return on average assets and return on average equity for the third quarter of 2006 were 1.17% and 15.11% respectively, compared with 1.31% and 17.75% for the third quarter of 2005.

On September 25, 2006, the Company announced a $0.07 quarterly cash dividend payable to shareholders of record as of September 29, 2006 and paid on October 13, 2006. Additionally the Company announced a stock buyback program to repurchase up to $2.0 million in shares.

At September 30, 2006, Bank of Commerce Holdings’ total assets were $585.2 million, an increase of 14.4% or $73.6 million from December 31, 2005. Net loans increased to $403.6 million, an increase of $40.4 million from December 31, 2005.

The Company’s loan portfolio is sound and performing well. The Company’s allowance for loan losses was 1.16% of total loans at September 30, 2006 and 1.17% at December 31, 2005, while its ratio of non-performing assets to total assets was 0.00% at September 30, 2006, compared to 0.08% at December 31, 2005. Provisions for loan losses for the quarter ended September 2006 were $72,000 compared to $88,000 for the same period in 2005. The Company’s OREO remained at $0 through the third quarter of 2006 and 2005.

Total deposits increased to $429.2 million, an increase of $57.1 million or 15.3% from December 31, 2005. The Sutter Bank of Commerce division opened for business on April 10, 2006, located at 950 Tharp Road, Yuba City, California. Construction is underway on the Company’s Technology and Support Center (TASC) with an anticipated completion date of 1/1/2007.

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 increased by $1.8 million totaling 4.33% in the third quarter of 2006 compared to 4.58% for the same period in 2005.

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/ Dave Bonaccorso		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 on Form 10-K for the year ended December 31, 2005 and under the heading “Risk factors that may affect results” and subsequent reports on Form 10-Q and current reports on Form 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	2006			2005			2005
ASSETS

Cash and due from banks	$	17,535		$	17,436		$	14,759
Federal funds sold and securities purchased under agreements to resell		28,010			9,120			8,550

Cash and cash equivalents		45,545			26,556			23,309
Securities available-for-sale (including pledged collateral of $74,022 at September 30, 2006; $50,102 at December 31, 2005 and $52,988 at September 30, 2005)		97,614			94,014			98,107
Securities held-to-maturity, at cost (estimated fair value of $10,788 at September 30, 2006, $6,881 at December 31, 2005 and $5,834 at September 30, 2005)		10,841			6,933			5,813
Loans, net of the allowance for loan losses of $4,753 at September 30, 2006, $4,316 at December 31, 2005 and $4,251 at September 30, 2005		403,657			363,305			342,004
Bank premises and equipment, net		7,350			5,631			5,547
Other assets		20,211			15,205			13,228


TOTAL ASSETS	$	585,218		$	511,644		$	488,008


LIABILITIES AND STOCKHOLDERS’ EQUITY

Demand — noninterest bearing	$	81,125		$	86,219		$	80,516
Demand — interest bearing		111,439			109,101			116,137
Savings		22,610			27,540			26,078
Certificates of deposits		214,019			149,256			150,260

Total deposits		429,193			372,116			372,991

Securities sold under agreements to repurchase		35,260			22,886			20,461
Federal Home Loan Bank borrowings		55,000			55,000			35,000
Other liabilities		6,352			7,194			5,809
Guaranteed Preferred Beneficial Interests in Company’s Junior Subordinated Debt payable to unconsolidated subsidiary grantor trust		15,465			15,310			15,310

Total Liabilities		541,270			472,506			449,571

Commitments and contingencies
Stockholders’ Equity:

Preferred stock, no par value, 2,000,000 authorized no shares issued and outstanding in 2006 and 2005		—			—			—
Common stock, no par value, 50,000,000 shares Authorized; 8,926,842 shares issued and outstanding at September 30, 2006, 8,657,896 at December 31, 2005 and 8,654,896 at September 30, 2005		12,416			11,009			10,998
Retained earnings		32,526			29,419			28,240
Accumulated other comprehensive (loss), net of tax		(994	)		(1,290	)		(801	)

Total Stockholders’ equity		43,948			39,138			38,437


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	585,218		$	511,644		$	488,008

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


	Three Months Ended					Nine Months Ended
Amounts in thousands, except for per share data	Sept. 30, 2006			Sept. 30, 2005		Sept. 30, 2006			Sept. 30, 2005

Interest income:
Interest and fees on loans	$	8,501		$	6,146	$	23,881		$	17,393
Interest on tax exempt securities		231			99		494			230
Interest on U.S. government securities		849			718		2,575			2,026
Interest on federal funds sold and securities purchased under agreements to resell		383			220		658			385
Interest on other securities		25			16		113			16

Total interest income		9,989			7,199		27,721			20,050

Interest expense:
Interest on demand deposits		449			276		968			688
Interest on savings deposits		69			56		209			127
Interest on time deposits		2,423			1,190		5,844			3,051
Securities sold under agreements to repurchase		328			146		794			264
Interest on FHLB and other borrowing expense		918			235		2,492			746
Interest on junior subordinated debt payable to unconsolidated subsidiary grantor trust		272			171		796			332

Total interest expense		4,459			2,074		11,103			5,208

Net interest income		5,530			5,125		16,618			14,842
Provision for loan and lease losses		72			88		226			442

Net interest income after provision for loan losses		5,458			5,037		16,392			14,400

Noninterest income:
Service charges on deposit accounts		81			98		255			303
Payroll and benefit processing fees		89			81		287			264
Earnings on cash surrender value - Bank owned life insurance		80			52		231			156
Net (loss) gain on sale of securities available-for-sale		(171	)		0		(171	)		(2	)
Net gain on sale of loans		90			23		90			91
Merchant credit card service income, net		110			91		280			268
Mortgage brokerage fee income		32			85		84			242
Other income		117			85		331			283

Total non-interest income		428			515		1,387			1,605

Noninterest expense:
Salaries and related benefits		1,996			1,750		5,870			5,088
Occupancy and equipment expense		467			437		1,350			1,173
FDIC insurance premium		12			11		36			36
Data processing fees		53			71		169			209
Professional service fees		149			199		503			577
Payroll and Benefit fees		24			24		78			86
Deferred compensation expense		94			85		272			234
Stationery and Supplies		71			40		180			159
Postage		26			45		91			84
Directors’ expense		45			30		170			188
Other expenses		362			403		1,128			1,068

Total non-interest expense		3,299			3,095		9,847			8,902

Income before income taxes		2,587			2,457		7,932			7,103
Provision for income taxes		915			897		2,979			2,696

Net Income	$	1,672		$	1,560	$	4,953		$	4,407

Basic earnings per share	$	0.19		$	0.18	$	0.57		$	0.51
Weighted average shares — basic		8,764			8,619		8,723			8,582
Diluted earnings per share	$	0.19		$	0.18	$	0.55		$	0.50
Weighted average shares — diluted		8,937			8,874		8,945			8,911

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,
	2006			2006			2006			2005			2005			2005			2005


Cash and due from banks	$	17,535		$	12,668		$	11,819		$	17,436		$	14,759		$	19,300		$	14,167

Federal funds sold and securities purchased under agreements to resell		28,010			14,155			9,835			9,120			8,550			11,895			19,760

Total Cash & Equivalents		45,545			26,823			21,654			26,556			23,309			31,195			33,927
Securities available-for-sale		97,614			97,366			93,645			94,014			98,107			72,709			77,276
Securities held to maturity, at cost		10,841			11,141			7,620			6,933			5,813			5,889			423
Loans, net of allowance for loan losses		403,657			401,185			374,983			363,305			342,004			340,230			320,453
Bank premises and equipment, net		7,350			6,690			6,261			5,631			5,547			5,581			5,436
Other assets		20,211			20,942			18,733			15,205			13,228			12,611			13,207

TOTAL ASSETS	$	585,218		$	564,147		$	522,896		$	511,644		$	488,008		$	468,215		$	450,722


Liabilities:
Demand — noninterest bearing	$	81,125		$	74,505		$	74,519		$	86,219		$	80,516		$	77,960		$	75,393
Demand — interest bearing		111,439			101,492			102,003			109,101			116,137			115,772			111,723
Savings		22,610			23,111			28,477			27,540			26,078			26,898			24,367
Certificates of deposit		214,019			189,577			173,106			149,256			150,260			148,507			144,051

Total deposits		429,193			388,685			378,105			372,116			372,991			369,137			355,534

Securities sold under agreements to repurchase		35,260			32,507			25,117			22,886			20,461			21,537			13,517
Federal Home Loan Bank borrowings		55,000			80,000			55,000			55,000			35,000			30,000			35,000
Other liabilities		6,352			6,536			8,864			7,194			5,809			5,119			5,705
Junior subordinated debt payable to subsidiary grantor trust		15,465			15,465			15,465			15,310			15,310			5,000			5,000

Total liabilities		541,270			523,193			482,551			472,506			449,571			430,793			414,756

Stockholders’ equity:
Common stock		12,416			11,442			11,198			11,009			10,998			10,894			10,756
Retained earnings		32,526			31,479			30,535			29,419			28,240			27,097			26,067
Accumulated other comprehensive income (loss), net		(994	)		(1,967	)		(1,388	)		(1,290	)		(801	)		(569	)		(857	)

Total stockholders’ equity		43,948			40,954			40,345			39,138			38,437			37,422			35,966

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	585,218		$	564,147		$	522,896		$	511,644		$	488,008		$	468,215		$	450,722


Interest Income:
Net interest income	$	5,530		$	5,674		$	5,413		$	5,395		$	5,125		$	4,861		$	4,856
Provision for loan losses		72			143			11			6			88			177			177

Net interest income after provision for loan losses		5,458			5,531			5,402			5,389			5,037			4,684			4,679

Noninterest Income:
Service charges		81			86			88			91			98			102			103
Merchant credit card service income, net		89			93			77			78			81			78			99
Net (loss) on sale of securities available-for-sale		(171	)		0			0			0			0			0			(2	)
Mortgage brokerage fee income		32			35			17			7			85			71			86
Other income		397			298			266			343			251			297			256

Total noninterest income		428			512			448			519			515			548			542
Noninterest Expense:
Salaries and related benefits		1,996			1,996			1,878			1,796			1,750			1,645			1,693
Net Occupancy and equipment expense		467			448			435			399			437			349			387
Professional service fees		149			150			204			72			199			173			205
Other expenses		687			716			721			579			709			720			635

Total noninterest expense		3,299			3,310			3,238			2,846			3,095			2,887			2,920

Income before income taxes		2,587			2,733			2,612			3,062			2,457			2,345			2,301
Provision for income taxes		915			1,044			1,020			1,191			897			874			925

Net Income	$	1,672		$	1,689		$	1,592		$	1,871		$	1,560		$	1,471		$	1,376

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


Key Financial Information
(Unaudited)	Sept 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
	2006			2006			2006			2005			2005			2005			2005


Net earnings per share- basic	$	0.19		$	0.19		$	0.18		$	0.23		$	0.18		$	0.17		$	0.16
Net earnings per share- diluted	$	0.19		$	0.19		$	0.18		$	0.21		$	0.17		$	0.16		$	0.16
Dividends per share	$	0.07		$	0.07		$	0.07		$	0.08		$	0.06		$	0.06		$	0.06
Net Interest Margin		4.33	%		4.47	%		4.47	%		4.59	%		4.56	%		4.66	%		4.66	%

Average Total Equity	$	38,211		$	41,629		$	41,951		$	49,812		$	45,151		$	41,101		$	39,628
Return on Average Equity		15.11	%		16.23	%		15.18	%		18.80	%		17.75	%		16.30	%		15.89	%
Average Assets	$	542,328		$	540,924		$	512,679		$	494,671		$	477,709		$	457,036		$	445,037
Return on Average Assets		1.17	%		1.25	%		1.24	%		1.51	%		1.31	%		1.29	%		1.24	%
Efficiency Ratio		54.69	%		53.51	%		56.69	%		48.12	%		54.88	%		53.37	%		54.09	%

Total Assets	$	585,218		$	564,147		$	522,741		$	511,644		$	488,008		$	468,215		$	450,722
Loans, net of allowances	$	403,657		$	401,185		$	374,983		$	363,305		$	342,004		$	340,230		$	320,453
Deposits	$	429,193		$	388,685		$	378,105		$	372,116		$	372,991		$	369,137		$	355,534
Stockholders’ Equity	$	43,948		$	40,954		$	40,345		$	39,138		$	38,437		$	37,422		$	35,966
Total shares outstanding		8,927			8,730			8,718			8,658			8,655			8,618			8,572
Book Value per share	$	4.93		$	4.70		$	4.63		$	4.52		$	4.45		$	4.34		$	4.20

Loan to deposit ratio		94.05	%		103.22	%		99.18	%		97.63	%		91.69	%		92.17	%		91.27	%
Non-performing assets to total assets		0.00	%		0.00	%		0.02	%		0.08	%		0.31	%		0.73	%		0.46	%
Non-performing loans to total loans		0.00	%		0.00	%		0.03	%		0.11	%		0.44	%		1.00	%		0.63	%
Allowance for loans losses to total loans		1.16	%		1.11	%		1.13	%		1.17	%		1.23	%		1.20	%		1.25	%

Leverage capital		9.99	%		9.62	%		10.05	%		10.19	%		10.05	%		9.25	%		9.29	%
Tier 1 risk based capital		11.64	%		11.36	%		12.00	%		12.05	%		12.36	%		11.15	%		10.95	%
Total risk based capital		12.73	%		12.41	%		13.09	%		13.09	%		13.43	%		12.23	%		12.06	%