Note 25 - Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 25. DISCONTINUED OPERATIONS

On August 31, 2012, with an effective date of June 30, 2012, the Holding Company sold its 51% ownership interest (capital stock) in the Mortgage Company, a residential mortgage banking company headquartered in San Ramon, California. The Holding Company purchased a controlling interest in the Mortgage Company in May 2009.At the time of the sale the Mortgage Company operated twenty-one offices in the states of California and Colorado, and was licensed to do business in California, Colorado, Oregon, Nevada and Texas.

Under the terms of the Stock Purchase Agreement, the purchaser acquired Bank of Commerce Holdings’ 51% interest at a price of $5.2 million. In exchange for Bank of Commerce Holdings’ 51% share of the Mortgage Company’s equity, Bank of Commerce Holdings received consideration of $321 thousand in cash ($521 thousand, net of $200 thousand earn out payment), and a promissory note in the amount of $4.7 million.

During April 2014, the Company executed a promissory note compromise settlement agreement (the “Agreement”) with the Mortgage Company. The Agreement settled and determined all the respective rights and obligations under the Note. See Note 9 Note Receivable in these Notes to Consolidated Financial Statements, for further details relating to the promissory note, closure of the Mortgage Company’s line of credit and settlement agreement.

The disposal of the Mortgage Company, which was accounted for as a segment of the Company, resulted in a $746 thousand loss for the year ended December 31, 2012. Accordingly, discontinued operations accounting was applied and the loss was recorded under the caption Discontinued Operations, within the line item “income from discontinued operations” in the Consolidated Statements of Operations incorporated in this document.

The following table presents detailed information on the accounting transactions that resulted in a loss on disposal of discontinued operations during 2012:

(Dollars in thousands)	Amount
Fair value of consideration received:
Fair value of the promissory note	$	3,941
Cash payment		521
Carrying amount of the noncontrolling interest		3,476
Total fair value of consideration received and carrying amount of noncontrolling interest		7,938
Less: The carrying amount of the former subsidiary’s assets and liabilities		8,684
Total loss on disposal of discontinued operations	$	(746)

The following table presents summarized financial information for discontinued operations for the year ended December 31, 2012. The amounts represented are net of intercompany transactions.

(Dollars in thousands)	2012
Interest and fees on loans	$	969
Interest on other borrowings		1,032
Net interest income		(63)
Mortgage banking revenue, net		10,614
Noninterest income		10,614
Salaries and related benefits		6,807
Premise and equipment expense		672
Professional service fees		695
Other expenses		1,096
Noninterest expense		9,270
Income from operations		1,281
Loss on disposal of mortgage subsidiary		(746)
Income from discontinued operations		535
Income tax expense associated with income from discontinued operations		331
Net income from discontinued operations		204
Less: Net income from discontinued operations attributable to noncontrolling interest		348
Net (loss) income from discontinued operations attributable to controlling interest	$	(144)