Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 3. EARNINGS PER SHARE

Basic 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 EPS 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.

The following is a computation of basic and diluted EPS for the three and six months ended June 30, 2012, and 2011:

(Dollars in thousands, except per share data)
	For the three months ended June 30,				For the six months ended June 30,
Earnings Per Share	2012		2011		2012		2011
NUMERATORS:
Net income attributable to Bank of Commerce Holdings	$	2,252	$	1,486	$	4,312	$	3,150
Less:
Preferred stock dividends		248		212		434		425
Accretion on preferred stock		0		23		0		45
Net earnings available to common shareholders	$	2,004	$	1,251	$	3,878	$	2,680
DENOMINATORS:
Weighted average number of common shares outstanding – basic		16,302		16,991		16,533		16,991
Effect of potentially dilutive common shares (1)		0		0		0		0
Weighted average number of common shares outstanding – diluted		16,302		16,991		16,533		16,991
EARNINGS PER COMMON SHARE:
Basic	$	0.12	$	0.07	$	0.23	$	0.16
Diluted	$	0.12	$	0.07	$	0.23	$	0.16
Anti-dilutive options not included in earnings per share calculation		410,455		256,580		410,455		256,580
Anti-dilutive warrants not included in earnings per share calculation		0		435,410		0		435,410

(1) Represents the effects of the assumed exercise of warrants, assumed exercise of stock options, vesting of non-participating restricted shares, and vesting of restricted stock units, based on the treasury stock method.

During October 2011, the Company repurchased and retired all of the common stock warrants issued to the holders of Series A, preferred stock pursuant to the Troubled Asset Relief Program (TARP) Capital Purchase Program (CPP), for $125 thousand. The transaction resulted in a net benefit of $324 thousand which is reported in retained earnings to common shareholders for the year ended December 31, 2011.

On February 7, 2012, the Company announced that its Board of Directors had authorized the purchase of up to 1,019,490 or 6% of its outstanding shares over a twelve-month period. The stock repurchase plan authorizes the Company to conduct open market purchases or privately negotiated transactions from time to time when, at management’s discretion, it is determined that market conditions and other factors warrant such purchases. Purchased shares will be retired accordingly. There are no guarantees as to the exact number of shares to be purchased, and the stock repurchase plan may be modified, suspended, or terminated without prior notice. Pursuant to the stock repurchase plan, the Company repurchased 240,387 and 726,370 common shares during the three and six months ended June 30, 2012, respectively.

The following table presents the number of common shares purchased and average price paid per common share pursuant to the stock repurchase plan, segregated by period for the six months ended June 30, 2012:

Period	Number of common shares purchased		Average price paid per common share
1/1/2012 – 1/31/2012		0	$	0
2/1/2012 – 2/29/2012		375,983	$	3.99
3/1/2012 – 3/31/2012		110,000	$	4.21
4/1/2012 – 4/30/2012		196,955	$	4.35
5/1/2012 – 5/31/2012		37,787	$	4.06
6/1/2012 – 6/30/2012		5,645	$	3.92
Total common shares purchased		726,370	$	4.12