Note 1 - The Business of The Company

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE

1.

THE BUSINESS OF THE COMPANY

Bank of Commerce Holdings (“Holding Company,” “we,” or “us”) is a bank holding company with its principal offices in Redding, California. The Holding Company’s principal business is to serve as a holding company for Redding Bank of Commerce (the “Bank” and together with the Holding Company, the “Company”) which operates under

two

separate names (Redding Bank of Commerce and Sacramento Bank of Commerce, a division of Redding Bank of Commerce). The Company has an unconsolidated subsidiary in Bank of Commerce Holdings Trust II. The Bank is principally supervised and regulated by the California Department of Business Oversight (“CDBO”) and the Federal Deposit Insurance Corporation (“FDIC”). Substantially all of the Company’s activities are carried out through the Bank. The Bank was incorporated as a California banking corporation on

November

25,

1981.

We operate

nine

full service offices and consider northern California to be our major market. We also operate a full service “cyber office” as identified in our summary of deposits reporting filed with the FDIC. The services offered by the Bank include those traditionally offered by commercial banks of similar size and character in California. Our principal deposit products include the following types of accounts; checking, interest-bearing checking, savings, certificates of deposit, money market deposits. We also offer sweep arrangements, commercial loans, construction loans, term loans, consumer loans, safe deposit boxes, collection services and electronic banking services. The primary focus of the Bank is to provide banking services to the communities in our major market area, including Small Business Administration loans and payroll processing. The Bank does not offer trust services or international banking services. Our customers are mostly retail customers and small to medium sized businesses.

On

March

11,

2016,

we completed the purchase of

five

Bank of America branches in northern California. The acquired branches are located in Colusa, Willows, Orland, Corning, and Yreka. The Bank also acquired

three

offsite ATM locations in Williams, Orland and Corning. The Bank paid cash consideration of

$6.7

million and acquired

$155.2

million in assets, primarily cash and premises. The Bank assumed

$149.2

million in liabilities, primarily deposits. See Note

26

Acquisition

in these

Notes to Consolidated Financial Statements

.