exv99w1

Exhibit 99.1

For immediate release:
Bank of Commerce Holdings™ announces Second Quarter 2008 Operating Results

REDDING, California, July 28, 2008/ PR Newswire— Patrick J. Moty, President & CEO of Bank of Commerce Holdings (NASDAQ:BOCH), a $647 million financial services 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 second quarter 2008 operating results. Bank of Commerce Holdings’ net income was $906,000 for the second quarter 2008 compared with $1,600,000 for the second quarter of 2007 down $694,000 or 43%.

Diluted earnings per common share was $0.10 for the second quarter 2008 compared to $0.18 for the second quarter of 2007.

Year-to-date net income was $2,136,000 compared to $3,087,000 in the prior year, down $951,000 or 30.8%. Year-to-date diluted earnings per common share were $0.24 compared to $0.34 in the prior year, a decrease of 29%. Year-to-date return on average assets and return on average common equity were 0.66% and 9.05%, respectively, compared with 1.07% and 13.69%, respectively, for the same period in 2007. The Company’s results for the second quarter of 2008 declined due to higher provisioning for loan losses and compression in the margin.

On June 18, 2008, the Company announced a $0.08 quarterly cash dividend payable to shareholders of record as of June 30, 2008 and paid on July 11, 2008.

“Our year-over-year asset growth was strong and the company remains well capitalized per guidelines established by the bank regulatory agencies. Despite the slow down in the real estate market, resulting in elevated provisions for loan losses and charge-offs, we are really excited about our opportunities to continue to gain market share,” said Patrick J. Moty, President and CEO of the Company. “Credit quality, expense control and the bottom line remain top focus.”

Total revenues decreased to $20.3 million compared to $21.2 million during the same period in 2007, a decrease of 4.1%. The decrease in total revenues is centered in total interest income and is directly related to the significant drop in interest rates for the first six months of the year.

Noninterest income growth of 14.8% was driven by sales of available-for-sale investments providing a gain of $436,000 for the period, partially offset by a loss of $225,000 to unwind a SWAP transaction.

Total noninterest expense for the second quarter of 2008 was $7.2 million compared to $7.2 million, flat year-over-year.

The most significant factors impacting the financial sector originated in the U.S. residential real estate markets. A number of larger institutions have announced significant losses. These losses stemmed from securities collateralized with sub-prime mortgages and other troubled assets. It is important to note that Redding Bank of Commerce does not originate or hold sub-prime loans, nor do we hold collateralized debt obligations or asset backed securities backed by sub-prime loans in our securities portfolio. However, as a lending institution, we are not immune to the residential real estate slowdown.

The Company’s allowance for loan losses was 0.98% of total loans at June 30, 2008 and 1.12% at June 30, 2007. Provisions for loan losses for the quarter ended June 2008 were $1,000,000 compared to $6,000 for the same quarter in 2007.

Provision for loan and lease losses of $1,600,000 were provided for the six-months ended June 30, 2008 compared with $6,000 for the same six-month period of 2007. The Company’s ratio of non-performing assets to total assets was 2.88% at June 30, 2008, compared to 2.01% at December 31, 2007 and 0.00% at June 30, 2007. Provisions have increased due to weakening economic conditions, and management’s aggressive stance in recognizing impaired loans.

Impairment reviews during the second quarter have resulted in write-downs of $1.8 million. During the first week in July, one non-performing loan in the amount of $3.4 million was resolved.

The Company’s OREO remained at $0 through the first half of 2008 and 2007.

Average loans, the largest component of average earning assets, increased $100.8 million or 24.2% on average compared with the prior year six-month period. Average securities including federal funds sold decreased $24.8 million or 20.6% over the prior year six-month period. Investments were sold to fund loan growth. The yield on earning assets decreased to 6.23% for the six-month period ended June 30, 2008 compared to 7.50% for the same period in the prior year.

The decrease is primarily due to multiple interest rate drops during the period. Average interest-bearing deposits for the six-months ended June 30, 2008 increased $26.3 million or 6.6% compared with the prior year period. Average non-interest bearing deposits have decreased by $5.7 million or 7.9% over the prior year six-month period. Average borrowings have increased by $48.6 million or 112.4% when compared with the prior year period; the increase is directly related to the substantial loan growth and increase in FHLB borrowings to support such growth.

The overall cost of interest-bearing liabilities for the first six-months 2008 was 3.25% compared with 4.10% for the first six-months of 2007. The decreased cost was primarily a result of the drop in interest rates during the period coupled with refinancing of FHLB borrowings at lower interest rates. The net effect of the changes discussed above resulted in a decrease of $322,000 or 3.0% in net interest income for the six-month period ended June 30, 2008 from the same period in 2007. The net interest margin decreased 60 basis points to 3.42% from 4.02% over the same period a year ago.

At June 30, 2008, Bank of Commerce Holdings’ total assets were $646.6 million, an increase of 6.78% or $41.0 million from June 30, 2007.

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

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 National 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 Investment Inc. /
John T. Cavender
555 Market Street
San Francisco, CA (800) 346-5544

Raymond James Financial/ Geoff Ball
1805 Hilltop Drive, Suite 106
Redding, CA (800) 926-5040

Morgan Stanley/Rick Hill
310 Hemsted Drive, Suite 100
Redding, CA (800) 733-6126

Wachovia Securities/ Ken Myers, Rick Hansen
10466 Brunswick Road
Grass Valley, CA (888) 383-3112

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, 2007 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)


Dollars in thousands	June 30, 2008			Dec. 31,2007			June 30, 2007
ASSETS

Cash and due from banks	$	16,660		$	13,839		$	18,206
Federal funds sold and securities purchased under agreements to resell		11,585			8,395			14,115

Cash and cash equivalents		28,245			22,234			32,321
Securities available-for-sale (including pledged collateral of $68,165 at June 30, 2008, $61,329 at December 31, 2007 and $93,790 at June 30, 2007)		66,728			67,906			94,029
Securities held-to-maturity, at cost (estimated fair value of $10,385 at June 30, 2008, $10,632 at December 31, 2007 and $10,369 at June 30, 2007)		10,385			10,559			10,637
Loans, net of the allowance for loan losses of $5,017 at June 30, 2008, $8,233 at December 31, 2007 and $4,943 at June 30, 2007		507,651			486,283			437,821
Bank premises and equipment, net		11,068			10,964			10,329
Other assets		22,531			20,381			20,440


TOTAL ASSETS	$	646,608		$	618,327		$	605,577


LIABILITIES AND STOCKHOLDERS’ EQUITY

Demand - noninterest bearing	$	68,625		$	75,718		$	69,842
Demand - interest bearing		128,994			142,821			114,530
Savings accounts		52,453			41,376			45,082
Certificates of deposit		218,303			213,716			211,794

Total deposits		468,375			473,631			441,248

Securities sold under agreements to repurchase		14,343			15,513			46,655
Federal Home Loan Bank borrowings		95,000			60,000			50,000
Other liabilities		7,396			7,554			7,114
Junior subordinated debt payable to unconsolidated subsidiary grantor trust		15,465			15,465			15,465

Total Liabilities		600,579			572,163			560,482
Commitments and contingencies
Stockholders’ 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; 8,711,495 shares issued and outstanding at June 30, 2008, 8,757,445 at December 31, 2007 and 8,908,880 at June 30, 2007		9,590			9,996			11,966
Retained earnings		37,344			36,605			34,997
Accumulated other comprehensive loss, net of tax		(905	)		(437	)		(1,868	)

Total stockholders’ equity		46,029			46,164			45,095


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	646,608		$	618,327		$	605,577

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


	Three Months Ended				Six Months Ended
Amounts in thousands, except for per share data	June 30, 2008		June 30, 2007		June 30, 2008			June 30, 2007
Interest income:
Interest and fees on loans	$	8,171	$	8,965	$	17,302		$	17,429
Interest on tax exempt securities		302		334		576			612
Interest on U.S. government securities		533		816		1,014			1,648
Interest on federal funds sold and securities purchased under agreements to resell		90		190		148			390
Interest on other securities		23		9		45			45

Total interest income		9,119		10,314		19,085			20,124

Interest expense:
Interest on demand deposits		498		587		1,248			1,144
Interest on savings deposits		360		355		650			526
Interest on time deposits		2,238		2,627		4,614			5,232
Securities sold under agreements to repurchase		35		381		119			723
Interest on FHLB and other borrowing expense		781		632		1,512			1,171
Interest on junior subordinated debt payable to unconsolidated subsidiary grantor trust		161		271		476			540

Total interest expense		4,073		4,853		8,619			9,336

Net interest income		5,046		5,461		10,466			10,788
Provision for loan and lease losses		1,000		0		1,600			6

Net interest income after provision for loan losses		4,046		5,461		8,866			10,782

Noninterest income:
Service charges on deposit accounts		50		76		112			145
Payroll and benefit processing fees		99		89		228			197
Earnings on cash surrender value - Bank owned life insurance		85		99		168			194
Net gain on sale of securities available-for-sale		194		0		436			46
Net loss on sale of derivative swap transaction		0		0		(225	)		0
Merchant credit card service income, net		97		96		180			188
Mortgage brokerage fee income		5		29		15			35
Other income		187		229		368			311

Total non-interest income		717		618		1,282			1,116

Noninterest expense:
Salaries and related benefits		1,892		1,959		3,841			4,056
Occupancy and equipment expense		640		543		1,284			1,001
FDIC insurance premium		113		13		171			26
Data processing fees		65		90		143			145
Professional service fees		133		252		251			447
Payroll and Benefit fees		27		25		60			56
Deferred compensation expense		113		101		224			198
Stationery and Supplies		80		46		142			107
Postage		38		34		72			67
Directors’ expense		94		76		142			121
Other expenses		418		562		847			965

Total non-interest expense		3,613		3,701		7,177			7,189

Income before income taxes		1,150		2,378		2,971			4,709
Provision for income taxes		244		778		835			1,622

Net Income	$	906	$	1,600	$	2,136		$	3,087

Basic earnings per share	$	0.10	$	0.18	$	0.25		$	0.35
Weighted average shares - basic		8,748		8,908		8,714			8,887
Diluted earnings per share	$	0.10	$	0.18	$	0.24		$	0.34
Weighted average shares - diluted		8,751		9,063		8,732			8,985

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


				Six Months Ended					Six Months Ended
				June 30, 2008					June 30, 2007
	Average					Yield/			Average					Yield/
	Balance			Interest		Rate			Balance			Interest		Rate
Earning Assets
Portfolio Loans	$	516,938		$	17,302		6.69	%	$	416,141		$	17,429		8.38	%
Tax-exempt Securities		30,402			576		3.79	%		30,548			612		4.01	%
US Government Securities		45,561			1,014		4.45	%		72,937			1,648		4.52	%
Federal Funds Sold		17,561			148		1.69	%		14,823			390		5.26	%
Other Securities		2,000			45		4.50	%		2,000			45		4.50	%

Average Earning Assets	$	612,462		$	19,085		6.23	%	$	536,449		$	20,124		7.50	%


Cash & Due From Banks	$	13,252							$	13,473
Bank Premises		11,264								9,742
Allowance for Loan and Lease Losses		( 5,946	)							( 4,890	)
Other Assets		17,745								19,690

Average Total Assets	$	648,777							$	574,464


Interest Bearing Liabilities
Demand Interest Bearing	$	132,543		$	1,248		1.88	%	$	110,668		$	1,144		2.07	%
Savings Deposits		48,987			650		2.65	%		35,957			526		2.93	%
Certificates of Deposit		229,245			4,614		4.03	%		213,721			5,232		4.90	%
Repurchase Agreements		12,925			119		1.84	%		37,064			723		3.90	%
FHLB Borrowings		91,869			1,512		3.29	%		43,260			1,171		5.41	%
Trust Preferred Borrowings		15,000			476		6.35	%		15,000			540		7.20	%

Average Interest Bearing Liabilities		530,569		$	8,619		3.25	%		455,670		$	9,336		4.10	%

Non interest Demand		66,606								72,321
Other Liabilities		4,391								1,370
Shareholder Equity		47,211								45,103

Average Liabilities and Stockholders Equity	$	648,777							$	574,464


Net Interest Income and Net Interest Margin				$	10,466		3.42	%				$	10,788		4.02	%

Interest income on loans includes fee income of approximately $10,610 and $135,554 for the period ended June 30, 2008 and 2007, respectively.

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


	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
	2008			2008			2007			2007			2007			2007			2006

Cash and due from banks	$	16,660		$	12,737		$	13,839		$	12,366		$	18,206		$	12,597		$	14,661
Federal funds sold and securities purchased under agreements to resell		11,585			25,995			8,395			7,980			14,115			21,195			24,605

Total Cash & Equivalents		28,245			38,732			22,234			20,346			32,321			33,792			39,266
Securities available-for-sale		66,728			62,090			67,906			93,423			94,029			93,769			95,601
Securities held to maturity, at cost		10,385			10,421			10,559			10,592			10,637			10,673			10,810
Loans, net of allowance for loan losses		507,651			506,374			486,283			461,171			437,821			411,357			408,990
Bank premises and equipment, net		11,068			11,370			10,964			10,464			10,329			9,992			8,595
Other assets		22,531			22,248			20,381			19,979			20,440			18,513			20,180

TOTAL ASSETS	$	646,608		$	651,235		$	618,327		$	615,975		$	605,577		$	578,096		$	583,442


Liabilities:
Demand - noninterest bearing		68,625		$	71,722		$	75,718		$	70,809		$	69,842		$	70,035		$	84,779
Demand - interest bearing		128,994			140,624			142,821			136,219			114,530			112,550			119,437
Savings		52,453			42,946			41,376			44,406			45,082			41,537			22,749
Certificates of deposit		218,303			229,006			213,716			220,803			211,794			211,422			212,442

Total deposits		468,375			484,298			473,631			472,237			441,248			435,544			439,407

Securities sold under agreements to repurchase		14,343			12,455			15,513			26,755			46,655			35,053			37,117
Federal Home Loan Bank borrowings		95,000			85,000			60,000			50,000			50,000			40,000			40,000
Other liabilities		7,396			7,633			7,554			6,734			7,114			6,646			7,537
Junior subordinated debt payable to subsidiary grantor trust		15,465			15,465			15,465			15,465			15,465			15,465			15,465

Total liabilities		600,579			604,851			572,163			571,191			560,482			532,708			539,526

Stockholders’ equity:
Common stock		9,590			9,550			9,996			10,252			11,966			11,940			11,517
Retained earnings		37,344			37,135			36,605			35,617			34,997			34,110			33,336
Accumulated other comprehensive (loss), net		(905	)		(301	)		(437	)		(1,085	)		(1,868	)		(662	)		(937	)

Total stockholders’ equity		46,029			46,384			46,164			44,784			45,095			45,388			43,916

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	646,608		$	651,235		$	618,327		$	615,975		$	605,577		$	578,096		$	583,442


Interest Income:
Net interest income		5,046			5,420			5,585			5,641			5,461		$	5,327		$	5,418
Provision for loan losses		1,000			600			3,170			115			0			6			0

Net interest income after provision for loan losses		4,046			4,820			2,415			5,526			5,461			5,321			5,418

Noninterest Income:
Service charges		50			62			63			70			76			69			91
Merchant credit card service income, net		97			83			91			109			89			92			100
Net gain on sale of securities available-for-sale		194			242			0			0			0			46			0
Net (loss) on sale of derivatives		0			(225	)		0			0			0			0			0
Mortgage brokerage fee income		5			10			(6	)		21			29			6			(13	)
Other income		371			393			2,745			326			424			285			363

Total noninterest income		717			565			2,893			526			618			498			541
Noninterest Expense:
Salaries and related benefits		1,892			1,949			2,208			2,402			1,959			2,097			2,150
Net Occupancy and equipment expense		640			644			737			635			543			458			496
Professional service fees		133			118			365			216			252			195			181
Other expenses		948			854			1,218			775			947			738			659

Total noninterest expense		3,613			3,565			4,528			4,028			3,701			3,488			3,486

Income before income taxes		1,150			1,820			780			2,024			2,378			2,331			2,473
Provision for income taxes		244			591			(910	)		693			778			844			858

Net Income	$	906		$	1,229		$	1,690		$	1,331		$	1600		$	1,487		$	1,615