Note 13 - Junior Subordinated Debentures

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Capital Requirements on Trust Assets [Text Block]

NOTE

1

3

. JUNIOR SUBORDINATED DEBENTURES

The Company has

one

wholly-owned trust formed in

2005

to issue trust preferred securities and related common securities. The following table presents information about the Trust as of

December 31, 2018

and

2017.

Trust Name	Issue Date	Issued Amount		Rate	Effective Rate	Maturity Date	Redemption Date
Bank of Commerce Holdings Trust II	July 29, 2005	$	10,310	Floating (2)	(1)	September 15, 2035	(3)

(

1

)

Effective rate as of

December 31, 2018

and

2017

of

4.37%

and

3.17%,

respectively.

(

2

)

Contractual interest rate of junior subordinated debentures based on

three

month LIBOR plus

1.58%

adjusted quarterly.

(

3

)

Redeemable at the Company’s option on any

March 15,

June 15,

September 15,

or

December 15.

The

$10.3

million of junior subordinated debentures issued to Trust II as of

December 31, 2018

and

2017,

are reflected in the

Consolidated Balance Sheets

. The common stock issued by Trust II in the amount of

$310

thousand is recorded in

Other Assets

in the

Consolidated Balance Sheets

, at

December 31, 2018

and

2017.

All of the debentures issued to Trust II, less the common stock of Trust II, qualified as Tier

1

capital as of

December 31, 2018

and

2017,

under guidance issued by the Federal Reserve Board.