Note 11 - Junior Subordinated Debentures

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Capital Requirements on Trust Assets [Text Block]

NOTE

11

. 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, 2019

and

2018.

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

(

1

)

Contractual interest rate of junior subordinated debentures based on

three

month LIBOR plus

1.58%

adjusted quarterly.

(

2

)

Effective rate as of

December 31, 2019

and

2018

of

3.47%

and

4.37%,

respectively.

(

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, 2019

and

2018,

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, 2019

and

2018.

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

1

capital as of

December 31, 2019

and

2018,

under guidance issued by the Federal Reserve Board.